Document:

EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made on the 23rd day of July, 2008 by and between Cheryl Presuto
(the “Employee”) and TEAMSTAFF, INC., a New Jersey corporation (the “Company”) and is effective as
of the 1st day of October, 2007.

WITNESSETH:

     WHEREAS, the Company and its subsidiaries are engaged in the business of providing Business
Outsourcing Services; and

     WHEREAS, the Employee is currently employed by the Company and the Company desires to continue
the employment of the Employee and secure for the Company the experience, ability and services of
the Employee; and

     WHEREAS, the Employee desires to continue her employment with the Company, pursuant to the
terms and conditions herein set forth, superseding all prior oral and written employment
agreements, and term sheets and letters between the Company, its subsidiaries and/or predecessors
and Employee;

     NOW, THEREFORE, it is mutually agreed by and between the parties hereto as follows:

ARTICLE 1

DEFINITIONS

     1.1
Accrued Compensation. Accrued Compensation shall mean an amount which
shall include all amounts earned or accrued through the “Termination Date” (as defined below) but
not paid as of the Termination Date, including (i) Base Salary, (ii) reimbursement for business
expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense

 

 

reimbursement policy in effect at such time, (iii) vacation pay, and (iv) unpaid bonuses and
incentive compensation earned and awarded prior to the Termination Date.

     1.2
Cause. Cause shall mean: (i) willful disobedience by the Employee of a material and lawful
instruction of the Board of Directors of the Company; (ii) formal charge, indictment or conviction
of the Employee of any misdemeanor involving fraud or embezzlement or similar crime, or any felony;
(iii) conduct amounting to fraud, dishonesty, gross negligence, willful misconduct or recurring
insubordination; or (iv) excessive absences from work, other than for illness or Disability;
provided that the Company shall not have the right to terminate the employment of Employee pursuant
to the foregoing clauses (i), (iii), and (iv) above unless written notice specifying such breach
shall have been given to the Employee and, in the case of breach which is capable of being cured,
the Employee shall have failed to cure such breach within thirty (30) days after her receipt of
such notice.

     1.3
Change in Control. “Change in Control” shall mean any of the following events:

     a. (i) An acquisition (other than directly from the Company) of any voting securities of the
Company (the “Voting Securities”) by any “Person” (as the term person is used for purposes of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”))
immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3
promulgated under the 1934 Act) of twenty percent (20%) or more of the combined voting power of the
Company’s then outstanding Voting Securities (27% if such Person is Wynnnefield Capital Inc. and
its affiliates); provided, however, that in determining whether a Change in Control has occurred,
Voting Securities which are acquired in a “Non-Control Acquisition” (as defined below) shall not
constitute an acquisition which would cause a

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Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (1) an employee
benefit plan (or a trust forming a part thereof) maintained by (x) the Company or (y) any
corporation or other Person of which a majority of its voting power or its equity securities or
equity interest is owned directly or indirectly by the Company (a “Subsidiary”), or (2) the Company
or any Subsidiary.

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

     b. The individuals who, as of the date this Agreement is approved by the Board, are members of
the Board (the “Incumbent Board”), cease for any reason to constitute at least two-thirds of the
Board; provided, however, that if the election, or nomination for election by the Company’s
stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent
Board, such new director shall, for purposes of this Agreement, be considered and defined as a
member of the Incumbent Board; and provided, further, that no individual shall be considered a
member of the Incumbent Board if such individual initially assumed office as a

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result of either an actual “Election Contest” (as described in Rule 14a-11 promulgated under
the 1934 Act) or other solicitation of proxies or consents by or on behalf of a Person other than
the Board (a “Proxy Contest”); or

     c. Approval by stockholders of the Company of:

          (i) A merger, consolidation or reorganization involving the Company, unless: (1) the
stockholders of the Company, immediately before such merger, consolidation or reorganization, own,
directly or indirectly immediately following such merger, consolidation or reorganization, at least
sixty percent (60%) of the combined voting power of the outstanding voting securities of the
corporation resulting from such merger or consolidation or reorganization (the “Surviving
Corporation”) in substantially the same proportion as their ownership of the Voting Securities
immediately before such merger, consolidation or reorganization, (2) the individuals who were
members of the Incumbent Board immediately prior to the execution of the agreement providing for
such merger, consolidation or reorganization constitute at least two-thirds of the members of the
board of directors of the Surviving Corporation, and (3) no Person (other than the Company, any
Subsidiary, any employee benefit plan (or any trust forming a part thereof) maintained by the
Company, the Surviving Corporation or any Subsidiary) becomes Beneficial Owner of twenty percent
(20%) or more of the combined voting power of the Surviving Corporation’s then outstanding voting
securities as a result of such merger (27% if such Person is Wynnnefield Capital Inc. and its
affiliates) , consolidation or reorganization, a transaction described in clauses (1) through (3)
shall herein be referred to as a “Non-Control Transaction”; or

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          (ii) An agreement for the sale or other disposition of all or substantially all of the assets
of the Company, to any Person, other than a transfer to a Subsidiary, in one transaction or a
series of related transactions;

          (iii) The stockholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company.

     d. Notwithstanding anything contained in this Agreement to the contrary, if the Employee’s
employment is terminated prior to a Change in Control and the Employee reasonably demonstrates that
such termination (i) was at the request of a third party who has indicated an intention or taken
steps reasonably calculated to effect a Change in Control (a “Third Party”) or (ii) otherwise
occurred in connection with, or in anticipation of, a Change in Control, then for all purposes of
this Agreement, the date of a Change in Control with respect to the Employee shall mean the date
immediately prior to the date of such termination of the Employee’s employment.

     1.4
Continuation Benefits. Continuation Benefits shall be the continuation of the Benefits,
as defined in Section 5.1, for the period commencing on the Termination Date and terminating 12
months thereafter, or such other period as specifically stated by this agreement (the “Continuation
Period”) at the Company’s expense on behalf of the Employee and his dependents; provided, however,
that (i) in no event shall the Continuation Period exceed 18 months from the Termination Date; and
(ii) the level and availability of benefits provided during the Continuation Period shall at all
times be subject to the post-employment conversion or portability provisions of the benefit plans.
The Company’s obligation hereunder with respect to the foregoing benefits shall also be limited to
the extent that if the Employee obtains any such benefits pursuant to a subsequent

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employer’s benefit plans, the Company may reduce the coverage of any benefits it is required to
provide the Employee hereunder as long as the aggregate coverage and benefits of the combined
benefit plans is no less favorable to the Employee than the coverage and benefits required to be
provided hereunder. This definition of Continuation Benefits shall not be interpreted so as to
limit any benefits to which the Employee, her dependents or beneficiaries may be entitled under
any of the Company’s employee benefit plans, programs or practices following the Employee’s
termination of employment, including, without limitation, retiree medical and life insurance
benefits.

     1.5
Disability. Disability shall mean a physical or mental infirmity which impairs the
Employee’s ability to substantially perform her duties with the Company for a period of one hundred
eighty (180) consecutive days and the Employee has not returned to her full time employment prior
to the Termination Date as stated in the “Notice of Termination” (as defined below).

     1.6
Good Reason. “Good Reason” shall mean without the written consent of the Employee: (A) a
material breach of any provision of this Agreement by the Company; (B) failure by the Company to
pay when due any compensation to the Employee; (C) a reduction in the Employee’s Base Salary; (D)
failure by the Company to maintain the Employee in the positions referred to in Section 2.1 of this
Agreement; (E) assignment to the Employee of any duties materially and adversely inconsistent with
the Employee’s positions, authority, duties, responsibilities, powers, functions, reporting
relationship or title as contemplated by Section 2.1 of this Agreement or any other action by the
Company that results in a material diminution of such positions, authority, duties,
responsibilities, powers, functions, reporting relationship or title; (F) relocation of the
principal office of the Company or the Employee’s principal place of employment to a location
outside a 25 mile radius of the present location in Somerset, New Jersey, without the

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Employee’s written consent; or (G) a Change in Control, provided the event on which the Change of Control is
predicated occurs within 90 days of the service of the Notice of Termination by the Employee, it being
understood that Employee shall have the right to terminate her employment under this Section 1.6
(G) for any reason or no reason within such 90 day period; and provided further, however, that the
Employee agrees not to terminate her employment for Good Reason pursuant to clauses (A) through (F)
unless (a) the Employee has given the Company at least 30 days’ prior written notice of her intent
to terminate her employment for Good Reason, which notice shall specify the facts and circumstances
constituting Good Reason; and (b) the Company has not remedied such facts and circumstances
constituting Good Reason to the reasonable and good faith satisfaction of the Employee within a
30-day period after receipt of such notice.

     1.7 Notice of Termination. Notice of Termination shall mean a written notice from the
Company, or the Employee, of termination of the Employee’s employment which indicates the provision
in this Agreement relied upon, if any and which sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Employee’s employment under the
provision so indicated. A Notice of Termination served by the Company shall specify the effective
date of termination.

     1.8 Pro Rata Bonus. “Pro Rata Bonus” shall mean an amount equal to the maximum bonus Employee
had an opportunity to earn pursuant to section 4.2 multiplied by a fraction, the numerator of which
shall be the number of days from the commencement of the fiscal year to the Termination Date, and
the denominator of which shall be the number of days in the fiscal year in which Employee was
terminated.

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     1.9 Severance Payment. “Severance Payment” shall mean an amount equal to the sum of 12 months
of Employee’s Base Salary in effect on the Termination Date. The Severance Payment
shall be payable in equal installments on each of the Company’s regular pay dates for
executives during the twelve months commencing on the first regular executive pay date following
the Termination Date. The Severance Payment is conditioned on the Employee executing a termination
agreement and release in a form reasonably acceptable to the Employee and the Company.

     1.10 Termination Date. Termination Date shall mean (i) in the case of the Employee’s death,
her date of death; (ii) in the case of Good Reason, 30 days from the date the Notice of Termination
is given to the Company, provided the Company has not remedied such facts and circumstances
constituting Good Reason to the reasonable and good faith satisfaction of the Employee; (iii) in
the case of termination of employment on or after the Expiration Date, the last day of employment;
and (iv) in all other cases, the date specified in the Notice of Termination; provided, however, if
the Employee’s employment is terminated by the Company for any reason except Cause, the date
specified in the Notice of Termination shall be at least 30 days from the date the Notice of
Termination is given to the Employee, and provided further that in the case of Disability, the
Employee shall not have returned to the full-time performance of her duties during such period of
at least 30 days.

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ARTICLE II

EMPLOYMENT

     2.1 Subject to and upon the terms and conditions of this Agreement, the Company hereby agrees
to continue the employment of the Employee, and the Employee hereby accepts such employment, as
Chief Financial Officer of the Company. The Employee’s position includes acting as an officer
and/or director of any of the Company’s subsidiaries as determined by the Board of Directors.

ARTICLE III

DUTIES

     3.1 The Employee shall, during the term of her employment with the Company, and subject to the
direction and control of the Chief Executive Officer and the Company’s Board of Directors, perform
such duties and functions as she may be called upon to perform by the Chief Executive Officer and
the Company’s Board of Directors during the term of this Agreement, consistent with her position as
Chief Financial Officer.

     3.2 The Employee shall perform, in conjunction with the Company’s Executive Management, to the
best of her ability the following services and duties for the Company and its subsidiary
corporations (by way of example, and not by way of limitation):

          (i) Those duties attendant to the position with the Company for which she is hired;

          (ii) Establish and implement current and long range objectives, plans, and policies, subject
to the approval of the Chief Executive Officer and the Board of Directors;

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          (iii) Financial planning including the development of, liaison with, financing sources and
investment bankers;

          (iv) Managerial oversight of the Company’s accounting department;

          (v) Primary responsibility for the preparation and filing of all financial activity reports
with federal and state regulatory authorities;

          (vi) Acquiring appropriate insurance coverage to safeguard Company’s assets (excluding
workers’ compensation coverage and medical benefits);

          (vii) Evaluation and integration of acquisitions, joint ventures, and other
opportunities; and

          (viii) Promotion of the relationships of the Company and its subsidiaries with their
respective employees, customers, suppliers and others in the business community.

     3.3 The Employee agrees to devote full business time and her best efforts in the performance
of her duties for the Company and any subsidiary corporation of the Company.

     3.4 Employee shall undertake regular travel to the Company’s executive and operational
offices, and such other occasional travel within or outside the United States as is or may be
reasonably necessary in the interests of the Company. All such travel shall be at the sole cost
and expense of the Company and shall include reasonable lodging and food costs incurred by Employee
while traveling.

ARTICLE IV

COMPENSATION

     4.1 During the term of this Agreement, Employee shall be compensated initially at the rate of
$175,000 per annum, subject to such increases, if any, as determined by the Board of Directors, or

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if the Board so designates, the Management Resources and Compensation Committee, in its
discretion, at the commencement of each of the Company’s fiscal years during the term of this
Agreement (the “Base Salary”). The base salary shall be paid to the Employee in accordance with
the Company’s regular executive payroll periods.

     4.2 Employee may receive a bonus (the “Bonus”) in the sole discretion of the Management
Resources and Compensation Committee of the Board of Directors. Employee will have an opportunity
to earn a cash Bonus of up to 50% of Employee’s Base Salary for each fiscal year of employment.
The Bonus will be based on performance targets and other key objectives established by the
Management Resources and Compensation Committee at the commencement of each fiscal year.

     4.3 The Company shall deduct from Employee’s compensation all federal, state, and local taxes
which it may now or hereafter be required to deduct.

     4.4 Employee may receive such other additional compensation as may be determined from time to
time by the Board of Directors including bonuses and other long term compensation plans. Nothing
herein shall be deemed or construed to require the Board to award any bonus or additional
compensation.

ARTICLE V

BENEFITS

     5.1 During the term hereof, the Company shall provide Employee with the following benefits
(the “Benefits”): (i) group health care and insurance benefits as generally made available to the
Company’s senior management; and (ii) such other insurance benefits obtained by the Company and
made generally available to the Company’s senior management. The Company shall reimburse

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Employee, upon presentation of appropriate vouchers, for all reasonable business expenses incurred by
Employee on behalf of the Company upon presentation of suitable documentation.

     5.2 In the event the Company wishes to obtain Key Man life insurance on the life of Employee,
Employee agrees to cooperate with the Company in completing any applications necessary to obtain
such insurance and promptly submit to such physical examinations and furnish such information as
any proposed insurance carrier may request.

     5.3 For the term of this Agreement, Employee shall be entitled to paid vacation at the rate of
five (5) weeks per annum.

ARTICLE VI

NON-DISCLOSURE

     6.1 The Employee shall not, at any time during or after the termination of her employment
hereunder, except when acting on behalf of and with the authorization of the Company, make use of
or disclose to any person, corporation, or other entity, for any purpose whatsoever, any trade
secret or other confidential information concerning the Company’s business (including any temporary
or permanent employee placement or outsourcing business), finances, marketing, accounting ,
personnel and/or outsourcing business of the Company and its subsidiaries, including information
relating to any customer of the Company or pool of temporary or permanent employees, or any other
nonpublic business information of the Company and/or its subsidiaries learned as a consequence of
Employee’s employment with the Company (collectively referred to as the “Proprietary Information”).
For the purposes of this Agreement, trade secrets and confidential information shall mean
information disclosed to the Employee or known by him as a consequence of her employment by the
Company, whether or not pursuant to this Agreement, and not generally known in the industry.

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The Employee acknowledges that trade secrets and other items of confidential information, as they may
exist from time to time, are valuable and unique assets of the Company, and that disclosure of any
such information would cause substantial injury to the Company. Trade secrets and confidential
information shall cease to be trade secrets or confidential information, as applicable, at such
time as such information becomes public other than through disclosure, directly or indirectly, by
Employee in violation of this Agreement.

     6.2 If Employee is requested or required (by oral questions, interrogatories, requests for
information or document subpoenas, civil investigative demands, or similar process) to disclose any
Proprietary Information, Employee shall, unless prohibited by law, promptly notify the Company of
such request(s) so that the Company may seek an appropriate protective order.

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ARTICLE VII

RESTRICTIVE COVENANT

     7.1 In the event of the voluntary termination of employment with the Company prior to the
expiration of the term hereof, or Employee’s discharge in accordance with Article IX, or the
expiration of the term hereof without renewal, Employee agrees that she will not, for a period of
one (1) year following such termination, directly or indirectly, enter into or become associated
with or engage in any other business (whether as a partner, officer, director, shareholder,
employee, consultant, or otherwise), which is involved in the business of providing (i) temporary
and/or permanent staffing of travel health professionals and travel nurses, and (ii) or is
otherwise engaged in the same or similar business as the Company in direct competition with the
Company, or which the Company was in the process of developing, during the tenure of Employee’s
employment by the Company. Notwithstanding the foregoing, the ownership by Employee of less than
five percent of the shares of any publicly held corporation shall not violate the provisions of
this Article VII. In furtherance of the foregoing, Employee shall not during the aforesaid period
of non-competition, directly or indirectly, in connection with any temporary or permanent employee
placement or other business of the Company and its subsidiaries, including information relating to
any customer of the Company or pool of temporary employees, or any other nonpublic business
information , or any business similar to the business in which the Company was engaged, or in the
process of developing during Employee’s tenure with the Company, solicit any customer or employee
of the Company who was a customer or employee of the Company during the tenure of her employment.

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     7.2 If any court shall hold that the duration of non-competition or any other restriction
contained in this Article VII is unenforceable, it is our intention that same shall not thereby be
terminated but shall be deemed amended to delete therefrom such provision or portion adjudicated to
be invalid or unenforceable or, in the alternative, such judicially substituted term may be
substituted therefor.

ARTICLE VIII

TERM

     8.1 This Agreement shall be for a term (the “Initial Term”) commencing on October 1, 2007 (the
“Commencement Date”) and terminating on September 30, 2009 (the “Expiration Date”), unless sooner
terminated upon the death of the Employee, or as otherwise provided herein.

     8.2 Unless this Agreement is earlier terminated pursuant to the terms hereof, the Company
agrees to use its best efforts to notify Employee in writing whether it intends to negotiate a
renewal of this Agreement by notice four (4) months prior to the Expiration Date. In the event (i)
the Company shall have failed to notify the Employee of its intention to renew as provided by this
Section 8.2, or (ii) the Company fails to reach agreement with Employee as to the terms of a new
employment agreement prior to the Expiration Date after providing such notice, in addition to any
other payments due hereunder, upon termination of the Employee’s employment on or after the
Expiration Date for any reason except Cause, the Company shall pay Employee the Severance Payment.

ARTICLE IX

TERMINATION

     9.1 The Company may terminate this Agreement by giving a Notice of Termination to the Employee
in accordance with this Agreement:

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	 	(i)	 	for Cause;
	 
	 	(ii)	 	without Cause;
	 
	 	(iii)	 	for Disability.

     9.2 Employee may terminate this Agreement by giving a Notice of Termination to the Company in
accordance with this Agreement, at any time, with or without good reason.

     9.3 If the Employee’s employment with the Company shall be terminated, the Company shall pay
and/or provide to the Employee the following compensation and benefits in lieu of any other
compensation or benefits arising under this Agreement or otherwise:

	 	(i)	 	if the Employee was terminated by the Company for Cause, or the Employee terminates
without Good Reason, the Accrued Compensation;
	 
	 	(ii)	 	if the Employee was terminated by the Company for Disability,

	 	(a)	 	the Continuation Benefits;
	 
	 	(b)	 	the Accrued Compensation;
	 
	 	(c)	 	the Pro-Rata Bonus; and
	 
	 	(d)	 	the Severance Payment; or

	 	(iii)	 	if termination was due to the Employee’s death,

	 	(a)	 	the Accrued Compensation;
	 
	 	(b)	 	the Continuation Benefits;
	 
	 	(c)	 	and the Pro Rata Bonus; or

	 	(iv)	 	if the Employee was terminated by the Company without cause, or the Employee terminates
this Agreement for Good Reason,

	 	(a)	 	the Accrued Compensation;

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	 	(b)	 	the Severance Payment; and
	 
	 	(c)	 	the Continuation Benefits.

     9.4 The amounts payable under this Section 9, shall be paid as follows:

          (i) Accrued Compensation shall be paid within five (5) business days after the Employee’s
Termination Date (or earlier, if required by applicable law).

          (ii) If the Continuation Benefits are paid in cash, the payments shall be made on the first
day of each month during the Continuation Period (or earlier, if required by applicable law).

          (iii) The Base Salary through the Expiration Date shall be paid in accordance with the
Company’s regular pay periods (or earlier, if required by applicable law).

     9.5 Notwithstanding the foregoing, in the event Employee is a member of the Board of Directors
on the Termination Date, the payment of any and all compensation due hereunder, except Accrued
Compensation, and Employee’s right to exercise any Employee Stock Option after the Termination
Date, is expressly conditioned on Employee’s resignation from the Board of Directors within five
(5) business days of notice by the Company requesting such resignation.

     9.6 The Employee shall not be required to mitigate the amount of any payment provided for in
this Agreement by seeking other employment or otherwise and no such payment shall be offset or
reduced by the amount of any compensation or benefits provided to the Employee in any subsequent
employment except as provided in Sections 1.4.

ARTICLE X

TERMINATION OF PRIOR AGREEMENTS

     10.1 This Agreement sets forth the entire agreement between the parties and supersedes all
prior agreements, letters and understandings between the parties, whether oral or written prior to
the

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effective date of this Agreement except for the terms of employee stock option plans,
restricted stock grants and option certificates.

ARTICLE XI

RESTRICTED STOCK GRANTS

     11.1 The Company hereby grants to Employee 120,000 (30,000 post split) restricted shares of
the Company’s Common Stock, $.001 par value subject to the provisions of the Company’s 2006 Long
Term Incentive Plan (the “Plan”).

     11.2 One-third of such Shares shall vest upon the execution of this agreement. One-third on
shall vest on September 30, 2008 and the final one third on September 30, 2009 upon satisfaction of
the performance targets and other key objectives established by the Management Resources and
Compensation Committee at the commencement of each fiscal year pursuant to paragraph 4.2 above. If
Employee renders continuous service to the Company from the date hereof to a vesting date, on each
such vesting date the Company shall deliver to Employee such number of shares of Common Stock as
shall vest on such date.

     11.3 In the event of a Change of Control, as defined in Section 1.3, the conditions to the
vesting of any outstanding Restricted Stock Awards granted to the Employee under this Article XI
shall be deemed void and all such Shares shall be immediately and fully vested and delivered to the
Employee.

ARTICLE XII

EXTRAORDINARY TRANSACTIONS

     12.1 The Company’s Board of Directors has determined that it is appropriate to reinforce and
encourage the continued attention and dedication of members of the Company’s management,

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including the Employee, to their assigned duties without distraction in potentially disturbing
circumstances arising from the possibility of a change in control of the Company.

     In the event that within one hundred eighty days (180) days of a Change of Control as
described in Section 12.2, (i) Employee is terminated, or (ii) Employee’s status, title, position
or responsibilities are materially reduced and Employee terminates her Employment, the Company
shall pay and/or provide to the Employee, the following compensation and benefits:

	 	a.	 	The Company shall pay the Employee, in lieu of any other
payments due hereunder, (i) the Accrued Compensation; (ii) the Continuation
Benefits; and (iii) as severance, Base Salary for a period of twelve (12)
months payable in equal installments on each of the Company’s regular pay dates
for executives during the twelve months commencing on the first regular
executive pay date following the termination Date; and
	 
	 	b.	 	The conditions to the vesting of any outstanding incentive
awards (including restricted stock, stock options and granted performance shares or units) granted to the Employee under any of the Company’s plans, or
under any other incentive plan or arrangement, shall be deemed void and all
such incentive awards shall be immediately and fully vested and exercisable.
Further, the options shall be deemed amended to provide that in the event of
termination after an event enumerated in this Article XII, the options shall
remain exercisable for the duration of their term.

     12.4 Upon the effective date of an event constituting a Change of Control, the Company shall
pay Employee, in one lump sum within five (5) upon the first day of the month immediately

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following such event, an amount equal to Employee’s then current Base Salary. Employee shall
be entitled to such payment whether or not her employment with the Company continues after the
Change of Control.

     12.5 Notwithstanding the foregoing, if the payment under this Article XII, either alone or
together with other payments which the Employee has the right to receive from the Company, would
constitute an “excess parachute payment” as defined in Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), the aggregate of such credits or payments under this Agreement and
other agreements shall be reduced to the largest amount as will result in no portion of such
aggregate payments being subject to the excise tax imposed by Section 4999 of the Code. The
priority of the reduction of excess parachute payments shall be in the discretion of the Employee.
The Company shall give notice to the Employee as soon as practicable after its determination that
Change of Control payments and benefits are subject to the excise tax, but no later than ten (10)
days in advance of the due date of such Change of Control payments and benefits, specifying the
proposed date of payment and the Change of Control benefits and payments subject to the excise tax.
Employee shall exercise her option under this paragraph 12.4 by written notice to the Company
within five (5) days in advance of the due date of the Change of Control payments and benefits
specifying the priority of reduction of the excess parachute payments.

ARTICLE XIII

ARBITRATION AND INDEMNIFICATION

     13.1 Any dispute arising out of the interpretation, application, and/or performance of this
Agreement with the sole exception of any claim, breach, or violation arising under Articles VI or
VII hereof shall be settled through final and binding arbitration before a single arbitrator in the
State of

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New Jersey in accordance with the Rules of the American Arbitration Association. The
arbitrator shall be selected by the Association and shall be an attorney-at-law experienced in the
field of corporate law. Any judgment upon any arbitration award may be entered in any court,
federal or state, having competent jurisdiction of the parties.

     13.2 The Company hereby agrees to indemnify, defend, and hold harmless the Employee for any
and all claims arising from or related to her employment by the Company at any time asserted, at
any place asserted, to the fullest extent permitted by law, except for claims based on Employee’s
fraud, deceit or willfulness. The Company shall maintain such insurance as is necessary and
reasonable to protect the Employee from any and all claims arising from or in connection with her
employment by the Company during the term of Employee’s employment with the Company and for a
period of six (6) years after the date of termination of employment for any reason. The provisions
of this Section 13.2 are in addition to and not in lieu of any indemnification, defense or other
benefit to which Employee may be entitled by statute, regulation, common law or otherwise.

ARTICLE XIV

SEVERABILITY

     If any provision of this Agreement shall be held invalid and unenforceable, the remainder of
this Agreement shall remain in full force and effect. If any provision is held invalid or
unenforceable with respect to particular circumstances, it shall remain in full force and effect in
all other circumstances.

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ARTICLE XV

NOTICE

     For the purposes of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when (a) personally
delivered or (b) sent by (i) a nationally recognized overnight courier service or (ii) certified
mail, return receipt requested, postage prepaid and in each case addressed to the respective
addresses as set forth below or to any such other address as the party to receive the notice shall
advise by due notice given in accordance with this paragraph. All notices and communications shall
be deemed to have been received on (A) if delivered by personal service, the date of delivery
thereof; (B) if delivered by a nationally recognized overnight courier service, on the first
business day following deposit with such courier service; or (C) on the third business day after
the mailing thereof via certified mail. Notwithstanding the foregoing, any notice of change of
address shall be effective only upon receipt.

     The current addresses of the parties are as follows:

	 	 	 
	IF TO THE COMPANY:

	 	TeamStaff, Inc.
	 

	 	1 Executive Drive
	 

	 	Somerset, NJ 08873
	 
	 	 
	WITH A COPY TO:

	 	Victor J. DiGioia
	 

	 	Becker & Poliakoff, LLP
	 

	 	45 Broadway
	 

	 	New York, NY 10006
	 
	 	 
	IF TO THE EMPLOYEE:
	 	 

22

 

ARTICLE XVI

BENEFIT

     This Agreement shall inure to, and shall be binding upon, the parties hereto, the successors
and assigns of the Company, and the heirs and personal representatives of the Employee.

ARTICLE XVII

WAIVER

     The waiver by either party of any breach or violation of any provision of this Agreement shall
not operate or be construed as a waiver of any subsequent breach of construction and validity.

ARTICLE XVIII

GOVERNING LAW

     This Agreement has been negotiated and executed in the State of New Jersey which shall govern
its construction and validity.

ARTICLE XIX

JURISDICTION

     Any or all actions or proceedings which may be brought by the Company or Employee under this
Agreement shall be brought in courts having a situs within the State of New Jersey, and Employee
and the Company each hereby consent to the jurisdiction of any local, state, or federal court
located within the State of New Jersey.

23

 

ARTICLE XX

ENTIRE AGREEMENT

     This Agreement contains the entire agreement between the parties hereto. No change, addition,
or amendment shall be made hereto, except by written agreement signed by the parties hereto.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement and affixed their hands
and seals the day and year first above written.

	 	 	 	 	 	 	 
	 	 	TEAMSTAFF, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:  	/s/ T. Stephen Johnson 	 	 
	 

	 	 	 

T. Stephen Johnson
	 	 
	 

	 	 	Chairman of the Board	 	 
	 
	 	/s/ Cheryl Presuto 	 	 
	 	 	 	 	 
	 	 	Cheryl Presuto	 	 
	 	 	Employee	 	 

24EX-10.1

J. Aron & Company

85 Broad Street

New York, New York 10004

Execution Version

July 29, 2008

Coffeyville Resources, LLC

10 East Cambridge Circle, Suite #250

Kansas City, Kansas 66103

Attention: Tim Rens

Telecopier: (913) 981-0000

Re: Revised Settlement Deferral

Ladies and Gentlemen:

We refer to the letter from us to you dated June 26, 2007 (the “Initial Deferral Letter”),
providing for the deferral of certain amounts due under the Transactions (as defined therein).
Further reference is made to the letters dated July 9, 2007, July 11, 2007, July 26, 2007 and
August 23, 2007 (collectively, with the Initial Deferral Letter, the “2007 Deferral
Letters”) relating to the matters set forth in the Initial Deferral Letter.

Capitalized terms not otherwise defined herein shall have the meaning set forth in the 2007
Deferral Letters. Notwithstanding the foregoing sentence, terms used in clause (d) below and not
otherwise defined in the 2007 Deferral Letters shall have the meaning set forth in the Second
Amended and Restated Credit and Guaranty Agreement, dated as of December 28, 2006, among the
Company, certain affiliates of the Company, the lenders party thereto from time to time, GSCP and
Credit Suisse Securities (USA) LLC, as joint lead arrangers and joint bookrunners, Credit Suisse,
as administrative agent, collateral agent, funded L/C issuing bank and as revolving issuing bank,
Deutsche Bank Trust Company Americas, as syndication agent and ABN AMRO Bank N.V., as documentation
agent (as amended through the date hereof, the “2006 Credit Agreement”).

You have requested that we permit you to defer further certain of the Deferred Amounts owed under
the 2007 Deferral Letters (the “Deferred Amounts”), which amounts the parties acknowledge
and agree shall, as of the Effective Date (as defined below), after giving effect to payments
required on or prior to the Effective Date, not exceed $87,500,000 in the aggregate.

Aron is prepared to extend the deferral of such portion of the Deferred Amounts as provided herein
subject to the following terms and conditions:

(a) on or prior to August 31, 2008 (the “Effective Date”), Coffeyville
Resources, LLC (the “Company”) shall have repaid Deferred Amounts in an
amount equal to the sum of $36,180,925.47 plus all accrued and unpaid interest
through the Effective Date (such payment, the “Minimum Repayment”);

(b) each of the Guarantors shall have, on the date of this letter agreement,
reaffirmed its guaranty of one half of the Deferred Amounts by

 

 

			
	 	 	 
	Coffeyville Resources, LLC	 	 
	July 29, 2008
	 	- 2 -

executing and
delivering to us a reaffirmation of its respective Guaranty Agreement, dated as of
August 23, 2007, in the forms attached as Appendices A and B to this letter
agreement (each, a “Reaffirmation” and collectively, the
“Reaffirmations”);

(c) prior to the Effective Date, interest shall accrue and be payable on the
unpaid Deferred Amounts in accordance with the 2007 Letter Agreements. Thereafter,
interest shall accrue and be payable on the unpaid Deferred Amounts from (and
including) the Effective Date to (but excluding) the date of actual payment, at the
rate of LIBOR with a one-month interest period (as determined by Aron) plus 2.75%,
such interest to compound on the last Local Business Day of each month;

(d) the Company shall, no later than the third Local Business Day (as defined in
the Agreement) following the date that financial statements of the Company and its
Subsidiaries are delivered for each calendar quarter (or partial calendar quarter,
in the case of the quarter ending September 30, 2008) ending after the date hereof,
apply the greater of (i) 50% of the Cash Flow Sweep Amount (as defined below) for
the calendar quarter to which such financial statements relate (the “Applicable
Quarter”) plus OCI (as defined below) for such Applicable Quarter or
(ii) $5,000,000 to the prepayment of the Deferred Amounts and interest thereon. If
the Company fails to make at least the minimum payment required by this clause (d)
or fails to deliver financial statements in a timely manner in accordance with the
2006 Credit Agreement, without further action by the parties hereto, the interest
rate set forth in clause (c) of this letter agreement shall increase by 1.00%, with
such increase retroactively effective from the first day of the Applicable Quarter
(provided that, with respect to the calendar quarter ending September 30, 2008,
such increase shall be applicable from the Effective Date). Such increase shall
remain in effect until the first day of the calendar quarter following any
Applicable Quarter in which the Company (x) is in compliance with the requirements
of this clause (d) for an Applicable Quarter, and (y) has made an additional
payment to Aron in an aggregate amount equal to all unsatisfied payment shortfalls
under this clause (d) in prior calendar quarters. The parties acknowledge and
agree that such increase to the interest rate applicable to the Deferred Amounts
shall be the sole and exclusive remedy of Aron under this letter agreement for the
Company’s inability to comply with this clause (d) due to insufficient cash flow;

For purposes of this letter agreement, “Cash Flow Sweep Amount” shall
be determined pursuant to the following formula:

CFSA
= ((EBITDA - ACA - Taxes - Interest) - (Approved FFC))

Where:

CFSA = the Cash Flow Sweep Amount,

 

 

			
	 	 	 
	Coffeyville Resources, LLC	 	 
	July 29, 2008
	 	- 3 -

EBITDA =  Consolidated Adjusted EBITDA for such calendar quarter, as adjusted
for “first-in first-out inventory-related gains and losses” as disclosed in
the footnotes to the financial statements of the Company and its Subsidiaries,

ACA = Consolidated Capital Expenditures during such calendar quarter not to
exceed budgeted amounts set forth in the schedule separately delivered to and
acknowledged by Aron on or prior to the date hereof,

Taxes = current taxes of Holdings, the Company and its Subsidiaries paid in
cash during such calendar quarter,

Interest = Consolidated Cash Interest Expense for such calendar quarter, and

Approved FFC = the forecasted quarterly cash flow of the Company for the
applicable calendar quarter set forth in the schedule separately delivered to
and acknowledged by Aron on or prior to the date hereof.

For purposes of this letter agreement, “OCI” shall mean other
significant inflows and outflows of cash of the Company and its Subsidiaries
during such calendar quarter that do not affect EBITDA, solely to the extent
such cash is available pursuant to the terms of the 2006 Credit Agreement to
be applied to the prepayment of the Deferred Amounts, as certified by an
officer of the Company at the time of calculation.

(e) in the event that CVR Energy, Inc. (“CVR”) or any of its direct or
indirect Subsidiaries (other than any such Subsidiary party to the 2006 Credit
Agreement) incurs aggregate Indebtedness for borrowed money (including any
convertible debt offering on terms set forth in (or substantially similar to those
set forth in) the registration statement filed by CVR in June 2008 with the
Securities and Exchange Commission) in excess of $125,000,000 (the “CVR
Indebtedness”) after the date of this letter agreement and prior to the
Maturity Date (as defined below), the Company shall apply the Applicable Percentage
of such excess of such gross proceeds of such CVR Indebtedness (less any interest
and fees payable under any convertible debt to the extent required to be escrowed
in accordance with the terms and conditions of such convertible debt) to pay the
Deferred Amounts and interest thereon no later than the third
Local Business Day following such receipt, which payment shall be in addition to,
and shall not reduce, the Minimum Repayment.

“Applicable Percentage” means (i) in the case a convertible debt offering
completed within 90 days of the date of this letter agreement, one (1) minus a
fraction determined by dividing, without duplication,

 

 

			
	 	 	 
	Coffeyville Resources, LLC	 	 
	July 29, 2008
	 	- 4 -

(A) the underwriting
fees, discount and/or commissions and other reasonable costs and expenses
associated therewith by (B) the gross proceeds of such Indebtedness, expressed
as a percentage, and (ii) for all other debt, 80%.

(f) to the extent that after the date of this letter agreement the Company or any
of its Subsidiaries (i) receive net insurance proceeds relating to the flooding of
the plant (and other flood-related damages) in July 2007 and (ii) are not required
to apply such proceeds in prepayment of debt incurred under the 2006 Credit
Agreement or to further invest such proceeds in accordance with the 2006 Credit
Agreement or otherwise become entitled to use such proceeds for general corporate
purposes, the Company shall apply all such proceeds received by it to the Deferred
Amounts and interest thereon no later than three Local Business Day following such
receipt; and

(g) the unpaid Deferred Amounts, all accrued and unpaid interest thereon and all
other amounts payable hereunder shall, notwithstanding anything herein or in the
2007 Letter Agreements to the contrary, be due and payable in full on December 15,
2008 (the “Maturity Date”); provided that, if (x) the CVR
Indebtedness in an aggregate principal amount of at least $125,000,000 shall have
been incurred (including the closing thereof) and the Company shall have delivered
to Aron a certificate of its Chief Financial Officer to that effect and attaching
copies of the documentation for such CVR Indebtedness, in each case prior to the
Maturity Date, and (y) no default in the performance by the Company in the
performance of any obligation hereunder has occurred and is continuing at such
time, then the Maturity Date shall be automatically extended to July 31, 2009. In
addition, if the Company violates any provision of this letter agreement, the
Deferred Amounts, all accrued interest thereon and all other amounts owed hereunder
shall become immediately due and payable upon notice from Aron. The parties
acknowledge and agree that failure to make such payment pursuant to this clause (g)
shall constitute an Event of Default under Section 5(a)(i) of the Agreement;
provided that the phrase “if such failure is not remedied on or before the
third Local Business Day after notice of such failure is given to the party” at the
end of Section 5(a)(i) is hereby deleted in relation to this clause (g).

All payments made hereunder shall be applied, first, to pay accrued and unpaid interest, and,
second, to repay the Deferred Amounts.

The parties acknowledge and agree that, as of the date hereof, the payment obligation of the
Company set forth on page 2 of the letter dated August 23, 2007 from us to you with respect to the
occurrence of an IPO shall no longer apply.

The parties acknowledge and agree that, as of the date of this letter agreement, the Deferred
Amounts are equal to $123,680,925.47 in the aggregate, and that accrued

 

 

			
	 	 	 
	Coffeyville Resources, LLC	 	 
	July 29, 2008
	 	- 5 -

interest thereon, as of
July 17, 2008, equals $6,453,090.74, and that there are no defenses to payment of such amounts by
the Company.

The Agreement is hereby amended, for so long as the Guaranty Agreements (as amended and reaffirmed
by the applicable Reaffirmation) are in effect, as follows:

Section 4(f) of the Schedule to the Agreement is amended to delete the sentence added to such
Section pursuant to the letters dated July 11, 2007, July 26, 2007 and August 23, 2007 and to
add the following as clause (v) to such Section: “(v) The Guaranty Agreements, each dated as
of August 23, 2007 and as amended and reaffirmed by the Reaffirmations, each dated as of July
29, 2008, delivered pursuant to the Letter Agreement dated July 29, 2008 between Aron and
Counterparty.”

This letter agreement may be executed in any number of counterparts, each of which shall constitute
an original, but all of which, taken together, shall be deemed to constitute one and the same
agreement. Except as expressly modified and extended hereby, the 2007 Deferral Letters shall
remain in full force and effect and shall not be modified or novated hereby. Except as expressly
amended hereunder, the Agreement, the Transactions and the Confirmations shall remain in full force
and effect and shall not be modified or novated hereby.

THIS LETTER AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK (WITHOUT REFERENCE TO ANY CONFLICT OF LAW RULES).

	 	 	 	 	 
	J. ARON & COMPANY	 
	 
	 	 	 	 
	By:
	   	/s/ Colleen Foster 	 
	 
	 	Name:   	Colleen Foster 	 
	 
	 	Title:	Managing Director 	 

 

 

			
	 	 	 
	Coffeyville Resources, LLC	 	 
	July 29, 2008
	 	- 6 -

ACCEPTED AND AGREED TO THIS 29th DAY

OF JULY, 2008.

COFFEYVILLE RESOURCES, LLC

	 	 	 	 	 
	By:
	 	/s/ James T. Rens 	 
	 
	 	Name:   	James T. Rens 	 
	 
	 	Title:	CFO 	 

 

 

Appendix A

Reaffirmation of GSCP V Guaranty dated August 23, 2007

[attached separately]

 

 

	 	 	 	 	 

REAFFIRMATION OF GUARANTY

          As consideration for the agreements and covenants contained in that certain letter agreement
regarding Revised Settlement Deferral dated as of July 29, 2008 (the “Revised Settlement Deferral
Letter”), between J. Aron & Company (“Counterparty”) and Coffeyville Resources, LLC (the
“Company”), and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the undersigned (“Guarantor”), as guarantor under that certain Guaranty
Agreement, dated as of August 23, 2007 (the “Guaranty”), delivered to Counterparty in connection
with the letter dated August 23, 2007, from Counterparty to the Company and attached hereto as
Appendix A, hereby acknowledges, covenants and agrees as follows:

          1. Notwithstanding anything to the contrary in the Guaranty, references to the
Revised Letter Agreement therein shall be deemed to include such Revised Letter
Agreement as further amended and modified by the Revised Settlement Deferral
Letter.

          2. The Guarantor consents to the terms of the Revised Settlement Deferral Letter and confirms that
the Guaranty remains in full force and effect, without modification (except as expressly set forth
herein) or novation, notwithstanding any provision of the Guaranty to the contrary.

          3. The Guarantor reaffirms all of the obligations contained in the Guaranty, and specifically
agrees that the Obligations (as defined in the Guaranty) include the full repayment of 50% of the
Deferred Amounts (as defined in the Revised Settlement Deferral Letter) plus accrued and unpaid
interest (as provided in the Revised Settlement Deferral Letter), and all other obligations now or
hereafter owing to Counterparty pursuant to the terms and conditions of the Revised Letter
Agreement (as amended and modified by the Revised Settlement Deferral Letter) and acknowledges,
agrees, represents and warrants that no agreements exist with respect to the Guaranty or with
respect to the obligations of Guarantor thereunder except those specifically set fort therein and
in this Reaffirmation.

          4. Each of the representations and warranties of the Guarantor contained or
incorporated in the Guaranty is true and correct on and as of the date hereof.

          5. The Guaranty is hereby amended by adding the following paragraphs before the
first full paragraph on page 3 thereof:

(A) Subject to the obligation to make a pro rata request for payment under the Kelso
Guaranty, the obligations of the Guarantor hereunder are independent of the obligations of
the Company and the obligations of any other guarantor (including any other Guarantor) of
the obligations of the Company, and a separate action or actions may be brought and
prosecuted against the Guarantor whether or not any action is brought against the Company or
any of such other guarantors and whether or not Company is joined in any such action or
actions;

(B) Payment by the Guarantor of a portion, but not all, of the Obligations shall in no
way limit, affect, modify or abridge the Guarantor’s liability for any portion of the
Obligations which has not been paid.

 

(C) Until the Obligations shall have been indefeasibly paid in full, the Guarantor
hereby waives any claim, right or remedy, direct or indirect, that it now has or may
hereafter have against the Company or any other guarantor or any of its assets in connection
with this Guaranty or the performance by the Guarantor of its obligations hereunder, in each
case, whether such claim, right or remedy arises in equity, under contract, by statute, under
common law or otherwise and including (a) any right of subrogation, reimbursement or
indemnification that the Guarantor now has or may hereafter have against the Company with
respect to the Obligations, (b) any right to enforce, or to participate in, any claim, right
or remedy that Counterparty now has or may hereafter have against the Company, and (c) any
benefit of, and any right to participate in, any collateral or security now or hereafter held
by Counterparty. The Guarantor further agrees that, to the extent the waiver or agreement to withhold
the exercise of its rights of subrogation, reimbursement and indemnification as set forth herein is found by a
court of competent jurisdiction to be void or voidable for any reason, any rights of
subrogation, reimbursement or indemnification the Guarantor may have against the Company
or against any collateral or security shall be junior and subordinate to any rights
Counterparty may have against the Company, to all right, title and interest
Counterparty may have in any such collateral or security. If any amount shall be paid to
the Guarantor on account of any such subrogation, reimbursement or indemnification rights at
any time when all Obligations shall not have been finally and indefeasibly paid in full, such
amount shall be held in trust for Counterparty and shall forthwith be paid over to
Counterparty to be credited and applied against the Obligations, whether matured or
unmatured, in accordance with the terms hereof.

(D) The Guarantor agrees to pay on demand all costs and expenses of Counterparty, if
any (including, without limitation, reasonable counsel fees and expenses), in connection
with the enforcement (whether through negotiations, legal proceedings or otherwise) of this
Guaranty.

(E) The Guarantor agrees not to assert any claim for special, indirect, consequential or
punitive damages against Counterparty, any of its affiliates, or any of its directors,
officers, partners, employees, attorneys and agents, on any theory of
liability, arising out of or otherwise relating to this Guaranty or any of the transactions contemplated herein.

(F) Subject to the Guarantor’s receipt of consent from the Arrangers and the Requisite
Lenders under, and as such terms are defined in, the 2006 Credit Agreement (as defined in the
Revised Settlement Deferral Letter) or delivery by the Guarantor to Counterparty of an
opinion of counsel reasonably acceptable to Counterparty to the effect that no such
consent is required (in each case, at the sole cost and expense of the Guarantor),
Counterparty agrees that in lieu of making payments when due pursuant to this Guaranty,
the Guarantor shall have the option to purchase (or to purchase, on a
ratable basis with Kelso, if so elected by Kelso  pursuant to the terms of the Kelso
Guaranty) on such date all, but not less than all, of the Obligations at 100% of par value
plus all accrued interest thereon and other amounts owed with respect thereto, without
representation or warranty or recourse. The Guarantor agrees that any rights in the
Obligations which it acquires pursuant to this provision will be junior in right of payment
and priority to the rights of Counterparty under the ISDA Master Agreement between the
Company and Counterparty

2

 

dated as of June 24, 2005 and the Schedule to the ISDA
Master Agreement dated as of June 24, 2005 (each as amended by the Revised Settlement
Deferral Letter) and any pari passu obligations.

          6. The Guarantor hereby consents to the amendment of the Kelso Guaranty dated as of the date
hereof in form and substance substantially similar to this Reaffirmation.

     This
Reaffirmation of Guaranty and the interpretation hereof shall be governed by, and
construed in accordance with, the internal laws of the State of New York.

[SIGNATURES APPEAR ON NEXT PAGE]

3

 

          IN WITNESS WHEREOF, the Guarantor has caused this Reaffirmation of
Guaranty to be duly executed and delivered as of the date first written above.

	 	 	 	 	 
	 	GS Capital Partners V, L.P.

 	 
	 	By:  	GS Advisors V, L.L.C., its General Partner
 	 
	 	 	 
	 	By: 	/s/ Kenneth A. Pontarelli
 	 
	 	 	Authorized Officer 	 
	 	 	 
	 

 

August 23, 2007

J. Aron & Company

85 Broad Street

New York, New York 10004

Ladies and Gentlemen:

For value received, GS Capital Partners V, L.P., a limited partnership duly organized under the
laws of the State of Delaware (“GSCP V” or the “Guarantor”) hereby unconditionally guarantees the
prompt and complete payment, whether by acceleration or otherwise, of 50% of the Deferred Amounts
(as defined in the Revised Letter Agreement referred to below) plus accrued and unpaid interest (as
provided in such Revised Letter Agreement) (collectively, the “Obligations”) of Coffeyville
Resources, LLC, a limited liability company that is owned by affiliates of GSCP V, Kelso Investment
Associates VII, L.P. (“Kelso”), and certain members of the management of the Company (as defined
below) and is duly organized under the laws of the State of Delaware (the “Company”), to J. Aron &
Company (the “Counterparty”) under the ISDA Master Agreement between the Company and the
Counterparty dated as of June 24, 2005 and the Schedule to the ISDA Master Agreement dated as of
June 24, 2005 (each as amended by the letter agreements referred to in the Revised Letter
Agreement) under the Letter Agreement from the Counterparty to the Company, dated
August 23, 2007 (without giving effect to any further amendments thereto, the “Revised Letter Agreement”). Both
the Counterparty and the Guarantor agree and acknowledge that upon execution of this Guaranty, the
previous Guaranty of the Guarantor, dated as of July 26, 2007, will automatically terminate. GSCP V
shall receive on or prior to the date of this Guaranty a copy of the guarantee provided by Kelso
dated as of August 23, 2007 (as amended from time to time, the “Kelso Guaranty”). GSCP V authorizes
the Counterparty to provide a copy of this Guaranty to Kelso.

Counterparty agrees that at any time that a payment is requested under this Guaranty,
Counterparty shall make a pro rata request for payment under the Kelso Guaranty and the Guarantor
shall at no time be required to pay an amount in excess of its pro rata share of the aggregate
amount of payment required at such time. This Guaranty is one of payment and not of collection.

The Guarantor hereby waives notice of acceptance of this Guaranty and notice of any obligation or
liability to which it may apply, and waives presentment, demand for payment, protest, notice of
dishonor or non-payment of any such obligation or liability, suit or the taking of other action by
Counterparty against, and any other notice to, the Company, the Guarantor or others.

 

 

The Guarantor represents and warrants that it will have sufficient cash and available capital
commitments, amounts available for retention or recall by the Guarantor and/or other sources of
liquidity to make payment of the Obligations, (2) the Guarantor’s Guaranteed Obligations under and
as defined in the Guaranty made in connection with the 2007 Credit Agreement (as defined in the
Revised Letter Agreement), (3) the Guarantor’s Guaranteed Obligations under and as defined in the
Guaranty made in connection with the Unsecured Credit and Guaranty Agreement, dated as of August
23, 2007, among the Company, the guarantors party thereto, the lenders party thereto from time to
time, and GSCP, as sole lead arranger, sole bookrunner and administrative agent, and (4) the
Guarantor’s Guaranteed Obligations under and as defined in the Guaranty made in connection with the
Unsecured Credit and Guaranty Agreement, dated as of August 23,
2007, among Coffeyville Refining &
Marketing Holdings, Inc., as the borrower, the guarantors party thereto, the lenders party thereto
from time to time, and GSCP as sole lead arranger, sole bookrunner, and administrative agent, in
each case, when such obligations are due and payable.

Counterparty may at any time and from time to time without notice to or consent of the Guarantor
and without impairing or releasing the obligations of the Guarantor hereunder: (1) agree with the
Company to make any change in the terms of any obligation or liability of the Company to
Counterparty (provided that the Counterparty shall obtain the consent of the Guarantor, such
consent not to be unreasonably withheld, prior to making a change that would cause the Deferred
Amounts (as defined in the Letter Agreement), excluding interest thereon and the Accrued Interest,
to exceed $124,700,000), (2) take or fail to take any action of any kind in respect of any security
for any obligation or liability of the Company or any other guarantor to Counterparty, (3) exercise
or refrain from exercising any rights against the Company or others, (4) release, surrender,
compromise, settle, rescind, waive alter, subordinate or modify and other guaranties of the
Obligations or (5) compromise or subordinate any obligation or liability of the Company to
Counterparty including any security therefor. Any other suretyship defenses are hereby waived by
the Guarantor.

This Guaranty is irrevocable and shall remain in full force and effect and be binding upon
Guarantor, its successors and assigns, until all of the Obligations have been satisfied in full.
The Guarantor further agrees that this Guaranty shall continue to be effective or be reinstated, as
the case may be, if at any time payment or any part thereof, of any Obligations payable by it or
interest thereon, is rescinded or must otherwise be restored or returned by Counterparty upon the
bankruptcy, insolvency, dissolution or reorganization of the Company.

The Guarantor may not assign its rights nor delegate its obligations under this Guaranty, in whole
or in part, without prior written consent of the Counterparty, and any purported assignment or
delegation absent such consent is void, except for (1) one or more assignments and delegations of
all or a portion of its obligations hereunder to any of GS Capital Partners V Institutional, L.P.,
GS Capital Partners V Offshore, L.P., GS Capital Partners V GmbH & Co. KG., GS Capital Partners V
Fund, L.P., GS Capital Partners V Employee Fund, L.P., and GS Capital Partners V Offshore Fund,
L.P. such

-2-

 

that each such fund has assumed by contract its pro rata
portion of the Obligations and/or (2)
an assignment and delegation of all of the Guarantor’s rights and obligations hereunder in whatever
form the Guarantor determines may be appropriate to a partnership, corporation, trust or other
organization in whatever form that succeeds to all or substantially all of the Guarantor’s assets
and business and that assumes such obligations by contract, operation of law or otherwise. Upon
any such delegation and assumption of obligations; the Guarantor shall be relieved of and fully
discharged from all obligations hereunder, whether such obligations arose before or after such
delegation and assumption.

The Guarantor acknowledges that the
Kelso Guaranty may not be amended or waived nor
any/consent or departure be effective without its prior written consent. Guarantor agrees that any
such consent shall not be unreasonably withheld.

No amendment or waiver of any
provision of this Guaranty nor consent to any departure by the
Guarantor herefrom shall in any event be effective unless the same shall be in writing and
signed by the Guarantor and the Counterparty, and which amendment,
waiver, consent or departure shall be consented to by Kelso.

THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE
OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. THE GUARANTOR AGREES TO THE
EXCLUSIVE JURISDICTION OF COURTS LOCATED IN THE STATE OF NEW YORK, UNITED STATES OF AMERICA, OVER
ANY DISPUTES ARISING UNDER OR RELATING TO THIS GUARANTY.

	 	 	 	 	 
	Very truly yours,

GS Capital Partners V, L.P.

 	 	 
	BY: 	 GS Advisors V, L.L.C.
 	 	 
	 	its General Partner 	 	 
	 	 	 
	 
	 	 	 
	BY: 	/s/ Kaca Enquist
 	 	 
	 	Authorized Officer 	 	 
	 	 	 
	 

-3-

 

Appendix B

Reaffirmation of Kelso Guaranty dated August 23, 2007

[attached separately]

 

 

REAFFIRMATION OF GUARANTY

          As
consideration for the agreements and covenants contained in that certain letter agreement
regarding Revised Settlement Deferral dated as of July 29, 2008
(the “Revised Settlement Deferral
Letter”), between J. Aron & Company
(“Counterparty”) and Coffeyvile Resources, LLC (the
“Company”),
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the undersigned (“Guarantor”), as guarantor under that certain Guaranty Agreement,
dated as of August 23, 2007 (the “Guaranty”), delivered to Counterparty in connection with the
letter dated August 23, 2007, from Counterparty to the Company and attached hereto as Appendix A,
hereby acknowledges, covenants and agrees as follows:

          1. Notwithstanding anything to the contrary in the Guaranty, references to the Revised Letter Agreement therein shall be deemed to include such Revised Letter Agreement as
further amended and modified by the Revised Settlement Deferral Letter.

          2. The Guarantor consents to the terms of the Revised Settlement Deferral Letter and confirms that the Guaranty remains in full force and effect, without modification
(except as expressly set forth herein) or novation, notwithstanding any provision of the Guaranty
to the contrary.

          3. The Guarantor reaffirms all of the obligations contained in the Guaranty, and specifically agrees that the Obligations (as defined in the Guaranty) include the full
repayment of 50% of the Deferred Amounts (as defined in the Revised Settlement Deferral Letter)
plus accrued and unpaid interest (as provided in the Revised Settlement Deferral Letter), and all
other obligations now or hereafter owing to Counterparty pursuant to the terms and conditions of
the Revised Letter Agreement (as amended and modified by the Revised Settlement Deferral Letter)
and acknowledges, agrees, represents and warrants that no agreements exist with respect to the
Guaranty or with respect to the obligations of Guarantor thereunder except those specifically set
forth therein and in this Reaffirmation.

          4.
Each of the representations and warranties of the Guarantor contained or incorporated in the Guaranty is true and correct on and as of the date hereof.

          5. The Guaranty is hereby amended by adding the following paragraphs before the first full paragraph on page 3 thereof:

(A) Subject to the obligation to make a pro rata request for payment under the GSCP V
Guaranty, the obligations of the Guarantor hereunder are independent of the obligations of
the Company and the obligations of any other guarantor (including any other Guarantor) of
the obligations of the Company, and a separate action or actions may be brought and
prosecuted against the Guarantor whether or not any action is brought against the Company or
any of such other guarantors and whether or not Company is joined in any such action or
actions;

(B) Payment by the Guarantor of a portion, but not all, of the Obligations shall in no
way limit, affect, modify or abridge the Guarantor’s liability for any portion of the
Obligations which has not been paid.

 

 

(C) Until the Obligations shall have been indefeasibly paid in full, the Guarantor hereby waives any claim, right or remedy, direct or indirect, that it now has or may
hereafter have against the Company or any other guarantor or any of its assets in connection
with this Guaranty or the performance by the Guarantor of its obligations hereunder, in each
case, whether such claim, right or remedy arises in equity, under contract, by statute, under
common law or otherwise and including (a) any right of subrogation, reimbursement or
indemnification that the Guarantor now has or may hereafter have against the Company with
respect to the Obligations, (b) any right to enforce, or to participate in, any claim, right
or remedy that Counterparty now has or may hereafter have against the Company, and (c) any
benefit of, and any right to participate in, any collateral or security now or hereafter held
by Counterparty. The Guarantor further agrees that, to the extent the waiver or agreement to
withhold the exercise of its rights of subrogation, reimbursement and indemnification as set
forth herein is found by a court of competent jurisdiction to be void or voidable for any
reason, any rights of subrogation, reimbursement or indemnification the Guarantor may have
against the Company or against any collateral or security shall be junior and subordinate to
any rights Counterparty may have against the Company, to all right, title and interest
Counterparty may have in any such collateral or security. If any amount shall be paid to the
Guarantor on account of any such subrogation, reimbursement or indemnification rights at any
time when all Obligations shall not have been finally and indefeasibly paid in full, such
amount shall be held in trust for Counterparty and shall forthwith be paid over to
Counterparty to be credited and applied against the Obligations, whether matured or
unmatured, in accordance with the terms hereof.

(D) The Guarantor agrees to pay on demand all costs and expenses of Counterparty, if any (including, without limitation, reasonable counsel fees and expenses), in connection
with the enforcement (whether through negotiations, legal proceedings or otherwise) of this
Guaranty.

(E) The Guarantor agrees not to assert any claim for special, indirect, consequential or
punitive damages against Counterparty, any of its affiliates, or any of its directors,
officers, partners, employees, attorneys and agents, on any theory of liability, arising out
of or otherwise relating to this Guaranty or any of the transactions contemplated herein.

(F) Subject to the Guarantor’s receipt of consent from the Arrangers and the Requisite
Lenders under, and as such terms are defined in, the 2006 Credit Agreement (as defined in the
Revised Settlement Deferral Letter) or delivery by the Guarantor to Counterparty of an
opinion of counsel reasonably acceptable to Counterparty to the effect that no such consent
is required (in each case, at the sole cost and expense of the Guarantor), Counterparty agrees that in lieu of making payments when due pursuant to this Guaranty,
the Guarantor shall have the option to purchase (or to purchase, on a ratable basis with GSCP
V, if so elected by GSCP V pursuant to the terms of the GSCP V Guaranty) on such date all,
but not less than all, of the Obligations at 100% of par value plus all accrued interest
thereon and other amounts owed with respect thereto, without representation or warranty or
recourse. The Guarantor agrees that any rights in the Obligations which it acquires pursuant
to this provision will be junior in right of payment and priority to the rights of
Counterparty under the ISDA Master Agreement between the

2

 

Company
and Counterparty dated as of June 24, 2005 and the Schedule to the ISDA Master Agreement dated as of June 24, 2005 (each as amended by the Revised Settlement Deferral Letter) and any pari passu obligations.

          6. The Guarantor hereby consents to the amendment of the GSCP V Guaranty dated as of the date
hereof in form and substance substantially similar to this Reaffirmation.

     This
Reaffirmation of Guaranty and the interpretation hereof shall be governed by, and
construed in accordance with, the internal laws of the State of New York.

[SIGNATURES APPEAR ON NEXT PAGE]

3

 

          IN WITNESS WHEREOF, the Guarantor has caused this Reaffirmation of Guaranty to be duly executed and delivered as of the date first written above.

	 	 	 	 	 
	 	Kelso Investment Associates VII, L.P.

By: Kelso GP VII, L.P., its General Partner

By: Kelso GP VII, LLC, its General Partner

 	 
	 	By:  	/s/ James J. Connors, II
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

 

 

August 23, 2007

J. Aron & Company

85 Broad Street

New York, New York 10004

Ladies and Gentlemen:

For value received, Kelso Investment Associates VII, L.P., a limited partnership duly
organized under the laws of the State of Delaware (“Kelso” or the “Guarantor”) hereby
unconditionally guarantees the prompt and complete payment, whether by acceleration or
otherwise, of 50% of (i) the Deferred Amounts (as defined in the Revised Letter Agreement
referred to below) and (ii) accrued and unpaid interest thereon (as provided in such Revised
Letter Agreement) (collectively, the “Obligations”) by Coffeyville Resources, LLC, a limited
liability company that is owned by Kelso, GS Capital Partners V, L.P. (“GSCP V”) and certain
members of the management of the Company (as defined below) and is duly organized under the
laws of the State of Delaware (the “Company”), to J. Aron & Company (the “Counterparty”) under
the ISDA Master Agreement between the Company and the Counterparty
dated as of June 24, 2005
and the Schedule to the ISDA Master Agreement dated as of June 24, 2005 (each as amended by
the letter agreements referred to in the Revised Letter Agreement) that are due in accordance
with the Letter Agreement from the Counterparty to the Company, dated August 23, 2007 (the
“Revised Letter Agreement”) within 12 days following receipt by the Guarantor of a written
request from the Counterparty. Both the Counterparty and the Guarantor agree and acknowledge
that upon execution of this Guaranty, the previous Guaranty of the Guarantor, dated as of July
26, 2007, will automatically terminate. Kelso shall receive on or prior to the date of this
Guaranty a copy of the guarantee provided by GSCP V dated as of August 23, 2007 (as amended
from time to time, the “GSCP V Guaranty”). Kelso authorizes the Counterparty to provide a copy
of this Guaranty to GSCP V.

The Counterparty agrees that at any time that a payment is requested under this Guaranty, the
Counterparty shall make a pro rata request for payment under the GSCP V Guaranty and the
Guarantor shall at no time be required to pay an amount in excess of its pro rata share of
the aggregate amount of payment required at such time. This Guaranty is one of payment and
not of collection.

The Guarantor hereby waives notice of acceptance of this Guaranty and notice of any
obligation or liability to which it may apply, and waives presentment, demand for payment,
protest, notice of dishonor or non-payment of any such obligation or liability, suit or the
taking of other action by the Counterparty against, and any other notice to, the Company, the
Guarantor or others.

 

 

The Guarantor represents and warrants that it has sufficient cash and available capital
commitments to make payment of each of (1) the Obligations, (2) the Guarantor’s Guaranteed
Obligations under and as defined in the Guaranty made in
connection with the 2007 Credit Agreement (as defined in the Revised Letter Agreement), (3)
the Guarantor’s Guaranteed Obligations under and as defined in the Guaranty made in
connection with the Unsecured Credit and Guaranty Agreement, dated as of August 23, 2007,
among the Company, the guarantors party thereto, the lenders party thereto from time to time,
and GSCP, as sole lead arranger, sole bookrunner and administrative agent, and (4) the
Guarantor’s Guaranteed Obligations under and as defined in the Guaranty made in connection
with the Unsecured Credit and Guaranty Agreement, dated as of August 23, 2007, among
Coffeyville Refining & Marketing Holdings, Inc., as the borrower, the guarantors party
thereto, the lenders party thereto from time to time, and GSCP as sole lead arranger, sole
bookrunner, and administrative agent (the obligations in clause (1) through (4), collectively
the “Aggregate Obligations”), in each case when such obligations are due and payable, and
covenants to maintain such cash and available capital commitments until satisfaction and
release of all obligations of the Guarantor hereunder. The Guarantor agrees to provide the
Counterparty, within 10 days following a written request from the Counterparty, a written
statement, certified by a senior financial officer of the Guarantor, setting forth the
outstanding unencumbered cash and unutilized capital commitments of the Guarantor at the end
of such calendar quarter.

Without limiting the Guarantor’s obligations under the immediately preceding paragraph,
the Guarantor and its respective general partners agree to take all action as may be
necessary so that, at any and all times prior to the satisfaction and release of all
obligations of the Guarantor under this Guaranty pursuant to the terms hereof, the Guarantor
and/or its general partners shall have caused its or their respective affiliates to reserve
capital in amounts sufficient to fund in a timely manner all obligations of the Guarantor
under the this Guaranty.

The Counterparty may at any time and from time to time without notice to or consent of the
Guarantor and without impairing or releasing the obligations of the Guarantor hereunder: (1)
agree with the Company to make any change in the terms of any obligation or liability of the
Company to the Counterparty, (2) take or fail to take any action of any kind in respect of
any security for any obligation or liability of the Company or any other guarantor to the
Counterparty, (3) exercise or refrain from exercising any rights against the Company or
others, (4) release, surrender, compromise, settle, rescind, waive alter, subordinate or
modify any other guaranties of the Obligations or (5) compromise or subordinate any
obligation or liability of the Company to the Counterparty including any security therefor;
provided that notwithstanding the foregoing, the Counterparty shall not, without the consent
of the Guarantor (i) change the duration of the deferral provided in the Revised Letter
Agreement, (ii) increase the Deferred Amounts (as defined in the Revised Letter Agreement),
(iii) otherwise amend, waive or modify

-2-

 

any other provision of the Revised Letter Agreement or (iv) take any affirmative action to release
any Collateral (as defined in the 2006 Credit Agreement (as defined in the Revised
Letter Agreement)). Any other suretyship defenses are hereby waived by the Guarantor

This Guaranty is irrevocable and shall remain in full force and effect and be binding upon
the Guarantor, and its successors and assigns, until all of the Obligations have been
satisfied in cash in full (the date on which the Obligations are so satisfied being the
“Satisfaction Date”). The Guarantor further agrees that this Guaranty shall continue to be
effective or be reinstated, as the case may be, if at any time payment or any part thereof,
of any Obligations or interest thereon, is rescinded or must otherwise be restored or
returned by the Counterparty; provided, however, that this sentence shall cease to be
operative on the earlier of (i) the date twelve months plus one calendar day after the
Satisfaction Date (if within such period (a) the Company has not become a debtor under the
United States Bankruptcy Code 11 U.S.C. § 101 et seq. (as now and hereafter in effect, or any
successor statute) or any similar State or Federal statue and (b) no action has been brought
against the Counterparty seeking to recover or rescind any such payment) and (ii) the date,
following the Satisfaction Date, when the Company consummates initial public offering of the
Company’s common stock following which the Company’s common stock is listed on any
internationally recognized exchange of dealer quotation system, all or a portion of the net
proceeds of which are used to pay or prepay at least $280,000,000 of the Company’s
indebtedness (a “Qualified IPO”); provided that if a Qualified IPO occurs prior to the
Satisfaction Date, the obligations hereunder shall terminate on the Satisfaction Date.

The Guarantor may not assign its rights nor delegate its obligations under this Guaranty, in whole
or in part, without prior written consent of the Counterparty, and any purported assignment or
delegation absent such consent is void, except for an assignment and delegation of all of the
Guarantor’s rights and obligations hereunder in whatever form the Guarantor determines may be
appropriate to a partnership, corporation, trust or other organization in whatever form that
succeeds to all or substantially all of the Guarantor’s assets and business and that assumes such
obligations by contract, operation of law or otherwise. Upon any such delegation and assumption of
obligations, the Guarantor shall be relieved of and fully discharged from all obligations
hereunder, whether such obligations arose before or after such delegation and assumption.

Each of the Guarantor and the Counterpart acknowledges that the GSCP V Guaranty may not be amended
or waived nor any consent or departure be effective without the Guarantor’s prior written consent.
The Guarantor agrees that any such consent shall not be unreasonably withheld.

No amendment or waiver of any provision of this Guaranty nor consent to any departure by
the Guarantor herefrom shall in any event be effective unless the

-3-

 

same shall
be in writing and signed by the Guarantor and the Counterparty, and which amendment,
waiver, consent or departure shall be consented to by GSCP V.

THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. THE GUARANTOR AGREES TO THE
EXCLUSIVE JURISDICTION OF COURTS LOCATED IN THE STATE OF NEW YORK, UNITED STATES OF AMERICA, OVER
ANY DISPUTES ARISING UNDER OR RELATING TO THIS GUARANTY.

	 	 	 	 	 
	Very truly yours,

Kelso Investment Associates VII, L.P.
 	 	 
	By:  	Kelso GP VII, L.P., the General Partner
 	 	 
	By:  	Kelso GP VII, LLC, its general partner
 	 	 
	 
	By:  	/s/ James J. Connors II
 	 	 
	 	Authorized Officer 	 	 
	 
	Accepted and agreed to with
respect
to the 2nd, 6th, 9th and 10th paragraphs above, as of
the date
first above written: 	 	 
	 
	J. Aron & Company

 	 	 
	By:  	/s/ Illegible 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

-4-

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