Document:

EX-10.40

 

Exhibit 10.40

SUBSCRIPTION AGREEMENT

     IN MAKING AN INVESTMENT DECISION, EMPLOYEE MUST RELY ON EMPLOYEE’S OWN EXAMINATION OF THE
EMPLOYER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES
HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE OR NON-U.S. SECURITIES COMMISSION OR REGULATORY
AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE
ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

     THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES
ACT”), AND OTHER APPLICABLE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
EMPLOYEE SHOULD BE AWARE THAT HE WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT
FOR AN INDEFINITE PERIOD OF TIME.

     SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of      , 2007, by and
among CVR Energy Inc., a Delaware corporation (the “Employer”), and John J. Lipinski
(“Employee”).

     WHEREAS, on March 9, 2007, Employee purchased 0.21253757 of a share of common stock, par value
$,01 per share, of Coffeyville Nitrogen Fertilizers, Inc., a Delaware corporation and an affiliate
of the Employer (“CNF” and such stock, the “Nitrogen Stock”) and on August 22, 2007
Employee purchased 0.10441996 of a share of common stock, par value $,01 per share, of Coffeyville
Refining & Marketing Holdings, Inc., a Delaware corporation and an affiliate (“CRMH” and
such stock, the “Refining Holdings Stock”);

     WHEREAS, on the terms and conditions contained in this Agreement, Employee desires to purchase
and Employer desire to issue to Employee, 247,471 shares of common stock, $0.01 par value per
share, of Employer (the “Issued Stock”) in exchange for Employee’s Nitrogen Stock and
Employee’s Refining Stock (the “Exchanged Stock”);

     WHEREAS, the boards of directors of each of CNF and CRMH has approved the exchange of the
Exchanged Stock for the Issued Stock; and

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
Employer and Employee hereby agree as follows:

     Section 1   Purchase of Common Stock. Upon the terms and subject to the conditions set forth
herein, at the Closing, as defined below, Employer shall issue to Employee, the Issued Stock in
exchange for the Exchanged Stock.

     Section 2   Closing. The closing of the purchase of the Issued Stock in exchange for the
Exchange Stock hereunder (the “Closing”) shall take place at the offices of Employer. At
the Closing, Employer shall deliver an original stock certificate to Employee

 

 

representing the Issued Stock and in exchange therefore, Employee shall deliver or cause to be
delivered to Employer an original stock certificate or certificates representing the Exchanged
Stock, along with duly executed stock powers.

     Section 3    Representations and Warranties of Employer. Employer hereby represents and warrants
to Employee as follows:

          (a) Employer is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, with full power and authority to execute and deliver this Agreement
and to perform its obligations hereunder and thereunder;

          (b) Employer has duly executed and delivered this Agreement;

          (c) all necessary corporate actions required to be taken by or on behalf of Employer to
authorize it to execute, deliver and perform its obligations under this Agreement have been taken
and this Agreement constitutes Employer’s legal, valid and binding obligation, enforceable against
Employer in accordance with the terms hereof;

          (d) the execution and delivery of this Agreement and the consummation by Employer of the
transactions contemplated hereby in the manner contemplated hereby do not and will not conflict
with, or result in a breach of any terms of, or constitute a default under, any agreement or
instrument or any applicable law, or any judgment, decree, writ, injunction, order or award of any
arbitrator, court or governmental authority which is applicable to Employer or by which Employer or
any material portion of its properties is bound;

          (e) except for any applicable filings under federal and state securities laws, no consent,
approval, authorization, order, filing, registration or qualification of or with any court,
governmental authority or third person is required to be obtained by Employer in connection with
the execution and delivery of this Agreement or the performance of Employer’s obligations
hereunder; and

          (f) upon issuance of the Issued Stock, the Issued Stock will represent duly authorized,
validly issued and non-assessable shares of Common Stock and Employee shall be the record owner of
the Issued Stock

     Section 4    Representations and Warranties of Employee. Employee hereby represents, warrants
and acknowledges to Employer as follows:

          (a) Employee has duly executed and delivered this Agreement;

          (b) all actions required to be taken by or on behalf of Employee to authorize him to execute,
deliver and perform his obligations under this Agreement have been taken and this Agreement
constitutes Employee’s legal, valid and binding obligation, enforceable against Employee in
accordance with the terms hereof and thereof;

          (c) the execution and delivery of this Agreement and the consummation by Employee of the
transactions contemplated hereby in the manner contemplated hereby do not and will not conflict
with, or result in a breach of any terms of, or

2

 

constitute a default under, any agreement or instrument or any applicable law, or any
judgment, decree, writ, injunction, order or award of any arbitrator, court or governmental
authority which is applicable to Employee or by which Employee or any material portion of his
properties is bound;

          (d) no consent, approval, authorization, order, filing, registration or qualification of or
with any court, governmental authority or third person is required to be obtained by Employee in
connection with the execution and delivery of this Agreement or the performance of Employee’s
obligations hereunder;

          (e) Employee is a resident of Texas;

          (f) Employee is receiving the Issued Stock solely for Employee’s own account for investment
and not with a view to resale in connection with any distribution thereof;

          (g) Employee acknowledges receipt of advice from Employer that (i) the Issued Stock has not
been registered under the Securities Act or qualified under any state securities or “blue sky”
laws, (ii) it is not anticipated that there will be any public market for the Issued Stock, (iii)
the Issued Stock must be held indefinitely and Employee must continue to bear the economic risk of
the investment in the Issued Stock unless the Issued Stock is subsequently registered under the
Securities Act and such state laws or an exemption from registration is available, (iv) Rule 144
promulgated under the Securities Act (“Rule 144”) is not presently available with respect
to sales of any securities of Employer and Employer has made no covenant to make Rule 144 available
and Rule 144 is not anticipated to be available in the foreseeable future, (v) when and if the
Issued Stock may be disposed of without registration in reliance upon Rule 144, such disposition
can be made only in limited amounts and in accordance with the terms and conditions of such Rule
and the provisions of this Agreement and the Stockholders Agreement, (vi) if the exemption afforded
by Rule 144 is not available, public sale of the Issued Stock without registration will require the
availability of an exemption under the Securities Act, (vii) restrictive legends shall be placed on
any certificate representing the Issued Stock and (viii) a notation shall be made in the
appropriate records of Employer indicating that the Issued Stock is subject to restrictions on
transfer and, if Employer should in the future engage the services of a transfer agent, appropriate
stop-transfer instructions will be issued to such transfer agent with respect to the Issued Stock;

          (h) Employee’s financial situation is such that Employee can afford to bear the economic risk
of holding the Issued Stock for an indefinite period and Employee can afford to suffer the complete
loss of Employee’s investment in the Issued Stock;

          (i) (x) Employee is familiar with the business and financial condition, properties, operations
and prospects of Employer and Employee has been granted the opportunity to ask questions of, and
receive answers from, representatives of Employer concerning Employer and the terms and conditions
of the purchase of the Issued Stock and to obtain any additional information that Employee deems
necessary, (y) Employee’s knowledge and experience in financial and business matters is such that
Employee is capable of evaluating the merits and risk of the investment in the Issued Stock and (z)
Employee has carefully

3

 

reviewed the terms and provisions of this Agreement and the Stockholders Agreement and has
evaluated the restrictions and obligations contained therein;

          (j) in furtherance of the foregoing, Employee represents and warrants that (i) no
representation or warranty, express or implied, whether written or oral, as to the financial
condition, results of operations, prospects, properties or business of Employer or as to the
desirability or value of an investment in Employer has been made to Employee by or on behalf of
Employer, (ii) Employee has relied upon Employee’s own independent appraisal and investigation, and
the advice of Employee’s own counsel, tax advisors and other advisors, regarding the risks of an
investment in Employer and (iii) Employee will continue to bear sole responsibility for making its
own independent evaluation and monitoring of the risks of its investment in Employer;

          (k) Employee is an “accredited investor” as such term is defined in Rule 501(a) of Regulation
D promulgated under the Securities Act and, in connection with the execution of this Agreement,
agrees to deliver such certificates to that effect as the board of directors of Employer may
request;

          (l) Employee understands and acknowledges that (a) he is being issued the Common Stock in
reliance on an exemption under the federal securities laws that permits companies to issue stock to
their employees and directors without registration under limited circumstances when such stock is
issued in compensatory circumstances, (b) that he is being issued the Common Stock as part of his
compensation for services to the Company and its subsidiaries and (c) that he would not be issued
the Common Stock if he were not an employee or director of the Company or one of its subsidiaries;
and

          (m) Employee is the record and beneficial owner of the Exchanged Stock and has requisite power
and authority to transfer the Exchanged Stock as provided in this Agreement and Employee is
delivering to Employer, good and marketable title to the Exchanged Stock, free and clear of any and
all liens, claims, charges, security interests, options or other encumbrances, other than those
provided under federal or state securities laws and other than those arising under the CRMH
Stockholders Agreement, dated August 22, 2007, and the CFN Stockholders, dated March 9, 2007 (each
of which will terminate pursuant to Termination Agreements with each of CRMH and CFN, each dated
the date hereof, immediately after the consummation of the transactions contemplated by this
Agreement).

     Section 5     Governing Law. This Agreement and the rights and obligations of the parties hereto
hereunder and the Persons subject hereto shall be governed by, and construed and interpreted in
accordance with, the laws of the State of Delaware, without giving effect to the choice of law
principles thereof.

     Section 6     Notices. All notices, requests, demands, waivers and other communications required
or permitted to be given under this Agreement shall be in writing and shall be deemed to have been
duly given if (a) delivered personally, (b) mailed, certified or registered mail with postage
prepaid, (c) sent by next-day or overnight mail or delivery or (d) sent by fax, as follows (or to
such other address as the party entitled to notice shall hereafter designate in accordance with the
terms hereof):

4

 

(a) If to Employer:

10 E. Cambridge Circle, Ste. 250

Kansas City, Kansas 66103

Attention: Edmund S. Gross

Facsimile No.: 913-981-0000

with copies (which shall not constitute notice) to:

GS Capital Partners V Fund, L.P.

c/o Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

Attention: Kenneth Pontarelli

Facsimile No.: 212-357-5505

Kelso & Company, L.P.

320 Park Avenue, 24th Floor

New York, New York 10022

Attention: James J. Connors II

Facsimile No.: 212-223-2379

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

Attention: Robert C. Schwenkel

   Steven Steinman

Facsimile No.: (212) 859-4000

and

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

Attention: Kevin M. Schmidt

Facsimile No.: (212) 909-6836

(b) If to Employee:

2277 Plaza Drive

Suite 500

SugarLand, Tx 77479

Facsimile No.: (281) 207-7747

All such notices, requests, demands, waivers and other communications shall be deemed to have been
received by (w) if by personal delivery, on the day delivered, (x) if by certified or registered
mail, on the fifth business day after the mailing thereof, (y) if by next-day or overnight mail or

5

 

delivery, on the day delivered, or (z) if by fax, on the day delivered; provided that such
delivery is confirmed.

     Section 7     Entire Agreement, etc. This Agreement constitutes the entire agreement
among the parties hereto with respect to the subject matter hereof, and supersedes any prior
agreement or understanding among them with respect to the matters referred to herein. There are no
representations, warranties, promises, inducements, covenants or undertakings relating to shares of
Issued Stock, other than those expressly set forth or referred to herein or in the Management
Registration Rights Agreement, by and between Employer and Employee, dated as of the date hereof.

     Section 8     Amendments and Waivers. This Agreement may not be modified or amended except by a
written instrument signed by authorized representatives of all parties affected by such
modification or amendment and referring specifically to this Agreement. Waiver by any party hereto
of any breach or default by any other party of any of the terms of this Agreement shall not operate
as a waiver of any other breach or default, whether similar to or different from the breach or
default waived. No waiver of any provision of this Agreement shall be implied from any course of
dealing between the parties hereto or from any failure by any party to assert its or his or her
rights hereunder on any occasion or series of occasions.

     Section 9     Assignment. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of each of the parties hereto.

     Section 10     Severability. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality or enforceability of the remaining provisions of this
Agreement shall not in any way be affected or impaired thereby and shall continue in full force and
effect.

     Section 11     Counterparts. For the convenience of the parties hereto, this Agreement may be
executed in any number of counterparts, each such counterpart being deemed to be an original
instrument, and all such counterparts shall together constitute the same agreement.

     Section 12     Captions. The Section and paragraph captions herein are for convenience of
reference only, do not constitute part of this Agreement and shall not be deemed to limit or
otherwise affect any of the provisions hereof.

     Section 13     Survival of Representations and Warranties; Indemnity. All representations,
warranties and covenants contained herein or made in writing by Employee, or by or on behalf of
Employer in connection with the transactions contemplated by this Agreement, shall survive the
execution and delivery of this Agreement, any investigation at any time made by or on behalf of
Employer or Employee, the issue and sale of the Issued Stock. Employee shall and hereby does
indemnify and hold harmless Employer from and against any and all losses, claims, damages, expenses
and liabilities relating to or arising out of any breach of any representation, warranty or
covenant made by Employee in this Agreement.

[Signature page follows]

6

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the parties hereto
on the date first herein above written.

	 	 	 	 	 
	 	CVR ENERGY, INC.

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

 

JOHN J. LIPINSKI

 	 
	 	 	 
	 	 	 
	 	 	 
	 

[Signature page to Subscription Agreement]EX-10.41

 

Exhibit 10.41

Coffeyville Acquisition LLC

10 E. Cambridge Circle, Ste. 250

Kansas City, Kansas 66103

                          , 2007

Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

Kelso & Company, L.P.

320 Park Avenue, 24th Floor

New York, New York 10022

Ladies and Gentlemen:

     Reference is made to that letter agreement, dated June 24, 2005, by and between Coffeyville
Acquisition LLC (the “Company”) and Goldman, Sachs & Co. (“GS” and such letter, the
“GS Letter”), and that letter agreement, dated June 24, 2005, by and between the Company
and Kelso & Company, L.P. (“Kelso, and such letter, the “Kelso Letter”).

     The parties hereto acknowledge that (i) each of the GS Letter and the Kelso Letter will
terminate upon the consummation of the initial public offering of shares of common stock of CVR
Energy, Inc., a Delaware corporation and a direct subsidiary of the Company, and (ii) the Company’s
obligations to indemnify each member of the Goldman Group (as such term is defined in the GS
Letter) and each member of the Kelso Group (as such term is defined in the Kelso Letter) and to
reimburse the out-of-pocket expenses of the Goldman Group and the Kelso Group, as outlined in the
GS Letter and the Kelso Letter, will survive such termination. The parties hereto further
acknowledge and agree that the fee payable with respect to such termination shall equal $10,000,000
($5,000,000 to GS and $5,000,000 to Kelso).

 

 

	 	 	 	 	 
	 	Very truly yours,

COFFEYVILLE ACQUISITION LLC

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

[Signature
Page to Letter Agreement]

 

 

Agreed and accepted:

GOLDMAN, SACHS & CO.

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	KELSO & COMPANY, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Kelso & Companies, Inc.,	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name: James J. Connors, II	 	 
	 

	 	Title: Vice President & General Counsel	 	 

[Signature
Page to Letter Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]