Document:

exv10w13

Exhibit 10.13

CVR PARTNERS, LP

LONG-TERM INCENTIVE PLAN

     1. Purpose.

          The CVR Partners, LP Long-Term Incentive Plan has been adopted by CVR GP, LLC, a Delaware
limited liability company (the “General Partner”), the general partner of CVR Partners, LP,
a Delaware limited partnership (the “Partnership”), and is intended to strengthen the
Partnership by providing an incentive to its and its Subsidiaries’ and Parents’ employees,
officers, consultants and directors, thereby encouraging them to devote their abilities and
industry to the success of the Partnership’s business enterprise. It is intended that this purpose
be achieved by extending to employees (including future employees who have received a formal
written offer of employment), officers, consultants and directors of the Partnership and its
Subsidiaries and Parents an added incentive for high levels of performance and unusual efforts
through the grant of awards in respect of Units.

     2. Definitions.

          For purposes of the Plan:

          2.1 “Affiliate” means any entity, directly or indirectly, controlled by, controlling
or under common control with the Partnership.

          2.2 “Agreement” means a written or electronic agreement between the Partnership and a
Participant evidencing the grant of an Option or Award and setting forth the terms and conditions
thereof.

          2.3 “Award” means a grant of a Restricted Unit, Phantom Unit, Unit Appreciation Right,
Distribution Equivalent Right, or Other Unit-Based Award or any or all of them.

          2.4 “Beneficiary” means an individual designated as a Beneficiary pursuant to Section
18.4.

          2.5 “Board” means the Board of Directors of the General Partner.

          2.6 “Cause” means, with respect to the termination of a Participant’s employment or
services by the Partnership or any Subsidiary or Parent of the Partnership that employs such
individual or to which the Participant performs services (or by the Partnership on behalf of any
such Subsidiary or Parent), such Participant’s (i) refusal or neglect to perform substantially his
or her employment-related duties or services, (ii) personal dishonesty, incompetence, willful
misconduct or breach of fiduciary duty, (iii) indictment for, conviction of or entering a plea of
guilty or nolo contendere to a crime constituting a felony or his or her willful violation of any
applicable law (other than a traffic violation or other offense or violation outside of the course
of employment or services to the Partnership or its Subsidiaries or Parents which in no way
adversely affects the Partnership or any of its Subsidiaries or Parents or any of their reputation,
or the ability of the Participant to perform his or her employment-related duties

 

 

or services or to represent the Partnership or any Subsidiary or Parent of the Partnership
that employs such Participant or to which the Participant performs services), (iv) failure to
reasonably cooperate, following a request to do so by the Partnership, in any internal or
governmental investigation of the Partnership or any of its Subsidiaries or Parents or (v) material
breach of any written covenant or agreement with the Partnership or any of its Subsidiaries or
Parents not to disclose any information pertaining to the Partnership or such Subsidiary or Parent
or not to compete or interfere with the Partnership or such Subsidiary or Parent; provided that, in
the case of any Participant who, as of the date of determination, is party to an effective
services, severance or employment agreement with the Partnership or any Subsidiary or Parent of the
Partnership, “Cause” shall have the meaning, if any, specified in such agreement.

          2.7 “Change in Capitalization” means any increase or reduction in the number of Units,
any change (including, but not limited to, in the case of a spin-off, or other distribution in
respect of Units, a change in value) in the Units or any exchange of Units for a different number
or kind of units or other securities of the Partnership or another corporation, by reason of a
reclassification, recapitalization, merger, consolidation, reorganization, spin-off, split-up,
issuance of warrants, rights or debentures, stock distribution, stock split or reverse stock split,
cash distribution, property distribution, combination or exchange of units, repurchase of units,
change in corporate structure or otherwise.

          2.8 “Change in Control” means the occurrence of any of the following: (a) CVR Energy and its wholly owned Subsidiaries ceasing to own, beneficially and of record,
outstanding equity interests in the General Partner representing more than 50% of each of the
aggregate ordinary voting power (or, if the General Partner shall be a partnership, of the general
partner interests) and the aggregate equity value represented by the issued and outstanding equity
interests in the General Partner; (b) the failure by the General Partner to be the sole general
partner of and to own, beneficially and of record, 100% of the general partner interests in the
Partnership; or (c) CVR Energy and its wholly owned Subsidiaries ceasing to own, beneficially and
of record, equity interests in the Partnership representing at least 25% of the aggregate equity
value represented by the issued and outstanding equity interests in the Partnership.

          2.9 “Code” means the Internal Revenue Code of 1986, as amended.

          2.10 “Committee” means the Committee which administers the Plan as provided in Section
3.

          2.11 “Director” means a member of the Board.

          2,12 “Disability” means a Participant’s inability, due to physical or mental ill
health, to perform the essential functions of the Participant’s job, with or without a reasonable
accommodation, for 180 days during any 365 day period irrespective of whether such days are
consecutive; provided that, in the case of any Participant who is a party to an effective services,
severance or employment agreement with the Partnership or any of its Subsidiaries or Parents, the
meaning for “Disability” will have the meaning (if any) specified in such agreement.

          2.13 “Division” means any of the operating units or divisions of the Partnership
designated as a Division by the Committee.

          2.14 “Distribution Equivalent Right” means a right to receive cash, Units or other
property based on the value of distributions that are paid with respect to Units.

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          2.15 “Effective Date” means the date of approval of the Plan by the Partnership’s
Board pursuant to Section 18.5.

          2.16 “Eligible Individual” means any of the following individuals: (a) any Director,
officer or employee of the Partnership or any Subsidiary or Parent of the Partnership, (b) any
individual to whom the Partnership or any Subsidiary or Parent of the Partnership has extended a
formal, written offer of employment, and (c) any consultant or advisor of the Partnership or any
Subsidiary or Parent of the Partnership.

          2.17 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          2.18 “Fair Market Value” on any date means:

               (a) if the Units are listed for trading on the New York Stock Exchange, the closing price at
the close of the primary trading session of the Units on such date on the New York Stock Exchange,
or if there has been no such closing price of the Units on such date, on the next preceding date on
which there was such a closing price;

               (b) if the Units are not listed for trading on the New York Stock Exchange, but are listed on
another national securities exchange, the closing price at the close of the primary trading session
of the Units on such date on such exchange, or if there has been no such closing price of the Units
on such date, on the next preceding date on which there was such a closing price;

               (c ) if the Units are not listed on the New York Stock Exchange or on another national
securities exchange, the last sale price at the end of normal market hours of the Units on such
date as quoted on the National Association of Securities Dealers Automated Quotation System
(“NASDAQ”) or, if no such price shall have been quoted for such date, on the next preceding
date for which such price was so quoted; or

               (d) if the Units are not listed for trading on a national securities exchange or are not
authorized for quotation on NASDAQ, the fair market value of the Units as determined in good faith
by the Committee.

          2.19 “Full Value Award” means a grant of a Restricted Unit, Phantom Unit, Other
Unit-Based Award or any or all of them.

          2.20 “General Partner” has the meaning set forth in Section 1.

          2.21 “Good Reason” means with respect to any Participant who is a party to an
effective services, severance or employment agreement with the Partnership or any of its
Affiliates, the meaning for “Good Reason” specified in such agreement.

          2.22 “Initial Public Offering” means the consummation of the first public offering of
Units pursuant to a registration statement (other than a Form S-8 or successor forms) filed with,
and declared effective by, the Securities and Exchange Commission.

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          2.23 “Nonemployee Director” means a Director who is a “nonemployee director” within
the meaning of Rule 16b-3 promulgated under the Exchange Act.

          2.24 “Option” means an award granted pursuant to Section 5.

          2.25 “Other Unit-Based Award” means awards granted pursuant to Section 9.

          2.26 “Parent” of a specified person means an affiliate controlling such person
directly, or indirectly through one or more intermediaries.

          2.27 “Participant” means a person to whom an Award or Option has been granted under
the Plan.

          2.28 “Partnership” has the meaning set forth in Section 1.

          2.29 “Phantom Units” means rights granted to an Eligible Individual under Section 8
representing a number of hypothetical Units.

          2.30 “Plan” means this CVR Partners, LP Long-Term Incentive Plan, as amended from time
to time.

          2.31 “Restricted Units” means Units issued or transferred to an Eligible Individual
pursuant to Section 8.

          2.32 “Retirement” means a Participant’s termination or resignation of employment with
the Partnership or any of its Affiliates for any reason (other than for Cause or by reason of the
Participant’s death) following the date the Participant attains age 65; provided that, in the case
of any Participant who is a party to an effective services, severance or employment agreement with
the Partnership or any of its Affiliates, the meaning of “Retirement” will have the meaning (if
any) specified in such agreement.

          2.33 “Subsidiary” means (a) any entity, whether or not incorporated, in which the
Partnership directly or indirectly owns at least 50% or more of the outstanding equity or other
ownership interests, and (b) any Affiliate controlled by the Partnership, directly or indirectly,
through one or more intermediaries.

          2.34 “Termination Date” means the date that is ten (10) years after the Effective
Date, unless the Plan is earlier terminated by the Board pursuant to Section 14 hereof.

          2.35 “Unit Appreciation Right” means a right to receive all or some portion of the
increase, if any, in the value of the Units as provided in Section 6 hereof.

          2.36 “Units” means common units representing limited partnership interests in the
Partnership and any other securities into which such Units are changed or for which such units are
exchanged.

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     3. Administration.

          3.1 Committees; Procedure. The Plan shall be administered by a Committee which, until
the Board appoints a different Committee, shall be the Compensation Committee of the Board. The
Committee may adopt such rules, regulations and guidelines as it deems are necessary or appropriate
for the administration of the Plan. The Committee shall consist of at least two (2) Directors and
may consist of the entire Board; provided, however, that if the Committee consists of less than the
entire Board, then, with respect to any Option or Award granted to an Eligible Individual who is
subject to Section 16 of the Exchange Act, the Committee shall consist of at least two (2)
Directors, each of whom shall be a Non-Employee Director. For purposes of the preceding sentence,
if one or more members of the Committee is not a Nonemployee Director and an Outside Director but
recuses himself or herself or abstains from voting with respect to a particular action taken by the
Committee, then the Committee, with respect to that action, shall be deemed to consist only of the
members of the Committee who have not recused themselves or abstained from voting.

          3.2 Board Reservation and Delegation. The Board may, in its discretion, reserve to
itself or exercise any or all of the authority and responsibility of the Committee hereunder and
may consist of one or more Directors who may, but need not be officers or employees of the
Partnership. To the extent the Board has reserved to itself, or exercised the authority and
responsibility of the Committee, all references to the Committee in the Plan shall be to the Board.

          3.3 Committee Powers. Subject to the express terms and conditions set forth herein,
the Committee shall have the power from time to time to:

               (a) select those Eligible Individuals to whom Options shall be granted under the Plan and the
number of such Options to be granted and prescribe the terms and conditions (which need not be
identical) of each such Option, including the exercise price per Unit, the vesting schedule and the
duration of each Option, and make any amendment or modification to any Option Agreement consistent
with the terms of the Plan;

               (b) select those Eligible Individuals to whom Awards shall be granted under the Plan and
determine the number of Units or amount of cash in respect of which each Award is granted, the
terms and conditions (which need not be identical) of each such Award, and make any amendment or
modification to any Agreement consistent with the terms of the Plan;

               (c) construe and interpret the Plan and the Options and Awards granted hereunder and
establish, amend and revoke rules and regulations for the administration of the Plan, including,
but not limited to, correcting any defect or supplying any omission, or reconciling any
inconsistency in the Plan or in any Agreement, in the manner and to the extent it shall deem
necessary or advisable, including so that the Plan and the operation of the Plan comply with Rule
16b-3 under the Exchange Act, the Code to the extent applicable and other applicable law, and
otherwise to make the Plan fully effective;

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               (d) determine the duration and purposes for leaves of absence which may be granted to a
Participant on an individual basis without constituting a termination of employment or service for
purposes of the Plan;

               (e) cancel, with the consent of the Participant, outstanding Awards and Options;

               (f) exercise its discretion with respect to the powers and rights granted to it as set forth
in the Plan; and

               (g) generally, exercise such powers and perform such acts as are deemed necessary or advisable
to promote the best interests of the Partnership with respect to the Plan.

          All decisions and determinations by the Committee in the exercise of the above powers shall be
final, binding and conclusive upon the Partnership, its Subsidiaries and Parents, the Participants
and all other persons having any interest therein.

          3.4 Notwithstanding anything herein to the contrary, with respect to Participants working
outside the United States, the Committee may determine the terms and conditions of Options and
Awards and make such adjustments to the terms thereof as are necessary or advisable to fulfill the
purposes of the Plan taking into account matters of local law or practice, including tax and
securities laws of jurisdictions outside the United States.

          3.5 Indemnification. No member of the Committee shall be liable for any action,
failure to act, determination or interpretation made in good faith with respect to the Plan or any
transaction hereunder. The Partnership hereby agrees to indemnify each member of the Committee for
all costs and expenses and, to the extent permitted by applicable law, any liability incurred in
connection with defending against, responding to, negotiating for the settlement of or otherwise
dealing with any claim, cause of action or dispute of any kind arising in connection with any
actions in administering the Plan or in authorizing or denying authorization to any transaction
hereunder.

          3.6 No Repricing of Options or Unit Appreciation Rights. The Committee shall have no
authority to make any adjustment (other than in connection with a stock distribution,
recapitalization or other transaction where an adjustment is permitted or required under the terms
of the Plan) or amendment, and no such adjustment or amendment shall be made, that reduces or would
have the effect of reducing the exercise price of an Option or Unit Appreciation Right previously
granted under the Plan, whether through amendment, cancellation or replacement grants, or other
means.

     4. Units Subject to the Plan; Grant Limitations.

          4.1 Aggregate Number of Units Authorized for Issuance. Subject to any adjustment as
provided in the Plan, the Units to be issued under the Plan may be, in whole or in part, newly
issued Units or issued Units which shall have been reacquired by the Partnership.

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The aggregate number of Units that may be issued to Participants under the Plan shall not
exceed [•]. Any Units delivered pursuant to an Award or an Option shall consist, in whole or in
part, of Units acquired in the open market, from any Affiliate, the Partnership or any other
Person, or any combination of the foregoing, as determined by the Committee in its discretion.

          4.2 Calculating Units Available.

               (a) Upon the granting of an Award or an Option, the number of Units available under this
Section 4 for the granting of further Awards and Options shall be reduced as follows:

                    (i) In connection with the granting of an Option, Unit Appreciation Right, Restricted Unit,
Phantom Unit, or Other Unit-Based Award, the number of Units available under this Section 4 for the
granting of further Options and Awards shall be reduced by the number of Units in respect of which
the Option or Award is granted or denominated.

                    (ii) In connection with the granting of a Distribution Equivalent Right, the number of Units
available under this Section 4 shall not be reduced; provided, however, that if Units are issued in
settlement of a Distribution Equivalent Right, the number of Units available for the granting of
further Options and Awards under this Section 4 shall be reduced by the number of Units so issued.

               (b) Notwithstanding Section 4.2(a), in the event that an Award is granted that, pursuant to
the terms of the Agreement, cannot be settled in Units, the aggregate number of Units that may be
made the subject of Awards or Options granted under the Plan shall not be reduced. Whenever any
outstanding Option or Award or portion thereof expires, is canceled, is forfeited, is settled in
cash or is otherwise terminated for any reason without having been exercised or payment having been
made in respect of the entire Option or Award, the number of Units previously allocable to the
expired, forfeited canceled, settled or otherwise terminated portion of the Option or Award shall
again be available for the granting of Options or Awards under the Plan.

               (c) Notwithstanding anything in this Section 4.2 to the contrary, (i) Units tendered as full
or partial payment of the Option Price shall not increase the number of Units available under this
Section 4, (ii) Units tendered as settlement of tax withholding obligations shall not increase the
number of Units available under this Section 4, and (iii) Units repurchased by the Partnership
using proceeds from the exercise of Options shall not be available for issuance under the Plan.

     5. Options.

          5.1 Authority of Committee. Subject to the provisions of the Plan, the Committee
shall have full and final authority to select those Eligible Individuals who will receive Options,
and the terms and conditions of the grant to any such Eligible Individual shall be set forth in an
Agreement.

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          5.2 Exercise Price. The purchase price or the manner in which the exercise price is
to be determined for Units under each Option shall be determined by the Committee and set forth in
the Agreement; provided, however, that the exercise price per Unit under each Option shall not be
less than the greater of (i) the par value of a Unit and (ii) 100% of the Fair Market Value of a
Unit on the date the Option is granted.

          5.3 Maximum Duration. Options granted hereunder shall be for such term as the
Committee shall determine; provided, that an Option shall not be exercisable after the expiration
of ten (10) years from the date it is granted; provided, further, however, that unless the
Committee provides otherwise, an Option may, upon the death of the Participant prior to the
expiration of the Option, be exercised for up to one (1) year following the date of the
Participant’s death, even if such period extends beyond ten (10) years from the date the Option is
granted. The Committee may, subsequent to the granting of any Option, extend the term thereof, but
in no event shall the term as so extended exceed the maximum term provided for in the preceding
sentence.

          5.4 Vesting. The Committee shall determine the time or times at which an Option shall
become vested and exercisable. To the extent not exercised, installments shall accumulate and be
exercisable, in whole or in part, at any time after becoming exercisable, but not later than the
date the Option expires. The Committee may accelerate the exercisability of any Option or portion
thereof at any time.

          5.5 Transferability. Except as otherwise provided in this Section 5.5, no Option
shall be transferable by the Participant otherwise than by will or by the laws of descent and
distribution, and an Option shall be exercisable during the lifetime of such Participant only by
the Participant or his or her guardian or legal representative. The Committee may set forth in the
Agreement evidencing an Option at the time of grant or thereafter, that the Option, or a portion
thereof, may be transferred to any third party, including but not limited to, members of the
Participant’s immediate family, to trusts solely for the benefit of such immediate family members
and to partnerships in which such family members and/or trusts are the only partners. In addition,
for purposes of the Plan, unless otherwise determined by the Committee at the time of grant or
thereafter, a transferee of an Option pursuant to this Section 5.5 shall be deemed to be the
Participant; provided that the rights of any such transferee thereafter shall be nontransferable
except that such transferee, where applicable under the terms of the transfer by the Participant,
shall have the right previously held by the Participant to designate a Beneficiary. For this
purpose, immediate family means the Participant’s spouse, parents, children, stepchildren and
grandchildren and the spouses of such parents, children, stepchildren and grandchildren. The terms
of an Option shall be final, binding and conclusive upon the beneficiaries, executors,
administrators, heirs and successors of the Participant. Notwithstanding Section 18.2, or the
terms of any Agreement, neither the Partnership nor any of its Subsidiaries or Parents shall
withhold any amount attributable to the Participant’s tax liability from any payment of cash or
Units to a transferee or transferee’s Beneficiary under this Section 5.5, but may require the
payment of an amount equal to the Partnership’s or any of its Subsidiaries’ or Parents’ withholding
tax obligation as a condition to exercise or as a condition to the release of cash or Units upon
exercise or upon transfer of the option.

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          5.6 Method of Exercise. The exercise of an Option shall be made only by giving
written notice delivered in person or by mail to the person designated by the Partnership,
specifying the number of Units to be exercised and, to the extent applicable, accompanied by
payment therefor and otherwise in accordance with the Agreement pursuant to which the Option was
granted. The exercise price for any Units purchased pursuant to the exercise of an Option shall be
paid in any or any combination of the following forms: (a) cash or its equivalent (e.g., a check)
or (b) if permitted by the Committee, the transfer, either actually or by attestation, to the
Partnership of Units that have been held by the Participant for at least six (6) months (or such
lesser period as may be permitted by the Committee) prior to the exercise of the Option, such
transfer to be upon such terms and conditions as determined by the Committee or (c) in the form of
other property as determined by the Committee. In addition, Options may be exercised through a
registered broker-dealer pursuant to such cashless exercise procedures that are, from time to time,
deemed acceptable by the Committee. Any Units transferred to the Partnership as payment of the
exercise price under an Option shall be valued at their Fair Market Value on the last business day
preceding the date of exercise of such Option. If requested by the Committee, the Participant
shall deliver the Agreement evidencing the Option to the Partnership, which shall endorse thereon a
notation of such exercise and return such Agreement to the Participant. No fractional Units (or
cash in lieu thereof) shall be issued upon exercise of an Option and the number of Units that may
be purchased upon exercise shall be rounded to the nearest number of whole Units.

          5.7 Rights of Participants. No Participant shall be deemed for any purpose to be the
owner of any Units subject to any Option unless and until (a) the Option shall have been exercised
pursuant to the terms thereof, (b) the Partnership shall have issued and delivered Units (whether
or not certificated) to the Participant, a securities broker acting on behalf of the Participant or
such other nominee of the Participant, and (c) the Participant’s name, or the name of his or her
broker or other nominee, shall have been entered as a unitholder of record on the books of the
Partnership. Thereupon, the Participant shall have full voting, distribution and other ownership
rights with respect to such Units, subject to such terms and conditions as may be set forth in the
applicable Agreement.

          5.8 Effect of Change in Control. The effect of a Change in Control on an Option may
be set forth in the applicable Agreement.

     6. Unit Appreciation Rights.

          6.1 Grant. The Committee may in its discretion, grant Unit Appreciation Rights to
Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set
forth in an Agreement.

          6.2 Terms; Duration. Unit Appreciation Rights shall contain such terms and conditions
as to exercisability, vesting and duration as the Committee shall determine, but in no event shall
they have a term of greater than ten (10) years; provided that unless the Committee provides
otherwise, a Unit Appreciation Right may, upon the death of the Participant prior to the expiration
of the Award, be exercised for up to one (1) year following the date of the

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Participant’s death even if such period extends beyond ten (10) years from the date the Unit
Appreciation Right is granted.

          6.3 Amount Payable. Upon exercise of a Unit Appreciation Right, the Grantee shall be
entitled to receive an amount determined by multiplying (i) the excess of the Fair Market Value of
a Unit on the last business day preceding the date of exercise of such Unit Appreciation Right over
the Fair Market Value of a Unit on the date the Unit Appreciation Right was granted, by (ii) the
number of Units as to which the Unit Appreciation Right is being exercised. Notwithstanding the
foregoing, the Committee may limit in any manner the amount payable with respect to any Unit
Appreciation Right by including such a limit in the Agreement evidencing the Unit Appreciation
Right at the time it is granted.

          6.4 Transferability. (i) Except as otherwise provided in this Section 6.4, no Unit
Appreciation Right shall be transferable by the Participant otherwise than by will or the laws of
descent and distribution, and a Unit Appreciation Right shall be exercisable during the lifetime of
such Participant only by the Participant or his or her guardian or legal representative. The
Committee may set forth in the Agreement evidencing a Unit Appreciation Right at the time of grant
or thereafter, that the Award, or a portion thereof, may be transferred to any third party,
including but not limited to, members of the Participant’s immediate family, to trusts solely for
the benefit of such immediate family members and to partnerships in which such family members
and/or trusts are the only partners. In addition, for purposes of the Plan, unless otherwise
determined by the Committee at the time of grant or thereafter, a transferee of a Unit Appreciation
Right pursuant to this Section 6.4 shall be deemed to be the Participant; provided that the rights
of any such transferee thereafter shall be nontransferable except that such transferee, where
applicable under the terms of the transfer by the Participant, shall have the right previously held
by the Participant to designate a Beneficiary. For this purpose, immediate family means the
Participant’s spouse, parents, children, stepchildren and grandchildren and the spouses of such
parents, children, stepchildren and grandchildren. Notwithstanding Section 18.2, or the terms of
any Agreement, neither the Partnership nor any of its Subsidiaries or Parents shall withhold any
amount attributable to the Participant’s tax liability from any payment of cash or Units to a
transferee or transferee’s Beneficiary under this Section 6.4, but may require the payment of an
amount equal to the Partnership’s or any of its Subsidiaries’ or Parents’ withholding tax
obligation as a condition to exercise or as a condition to the release of cash or Units upon
exercise or upon transfer of the Unit Appreciation Right.

          6.5 Method of Exercise. Unit Appreciation Rights shall be exercised by a Participant
only by giving written notice delivered in person or by mail to the person designated by the
Partnership, specifying the number of Units with respect to which the Unit Appreciation Right is
being exercised. If requested by the Committee, the Participant shall deliver the Agreement
evidencing the Unit Appreciation Right being exercised and the Agreement evidencing any related
Option to the Partnership, which shall endorse thereon a notation of such exercise and return such
Agreement to the Participant.

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          6.6 Form of Payment. Payment of the amount determined under Section 6.3 may be made
in the discretion of the Committee solely in whole Units in a number determined at their Fair
Market Value on the last business day preceding the date of exercise of the Unit Appreciation
Right, or solely in cash, or in a combination of cash and Units. If the Committee decides to make
full payment in Units and the amount payable results in a fractional Unit, payment for the
fractional Unit will be made in cash.

          6.7 Effect of Change in Control. The effect of a Change in Control on a Unit
Appreciation Right may be set forth in the applicable Agreement.

     7. Distribution Equivalent Rights.

          The Committee may in its discretion, grant Distribution Equivalent Rights either in tandem
with an Option or Award or as a separate Award, to Eligible Individuals in accordance with the
Plan. The terms and conditions applicable to each Distribution Equivalent Right shall be
specified in the Agreement under which the Distribution Equivalent Right is granted. Amounts
payable in respect of Distribution Equivalent Rights may be payable currently or, if applicable,
deferred until the lapsing of restrictions on such Distribution Equivalent Rights or until the
vesting, exercise, payment, settlement or other lapse of restrictions on the Option or Award to
which the Distribution Equivalent Rights relate; provided, that Distribution Equivalent
Rights may not contain payment or other terms that could adversely affect the Option or Award to
which it relates under Section 409A of the Code or otherwise. In the event that the amount
payable in respect of Distribution Equivalent Rights are to be deferred, the Committee shall
determine whether such amounts are to be held in cash or reinvested in Units or deemed
(notionally) to be reinvested in Units. If amounts payable in respect of Distribution
Equivalent Rights are to be held in cash, there may be credited at the end of each year (or
portion thereof) interest on the amount of the account at the beginning of the year at a rate
per annum as the Committee, in its discretion, may determine. Distribution Equivalent Rights
may be settled in cash or Units or a combination thereof, in a single installment or multiple
installments, as determined by the Committee.

     8. Restricted Units; Phantom Units.

          8.1 Restricted Units. The Committee may grant to Eligible Individuals Awards of
Restricted Units, which shall be evidenced by an Agreement. Each Agreement shall contain such
restrictions, terms and conditions as the Committee may, in its discretion, determine and (without
limiting the generality of the foregoing) such Agreements may require that an appropriate legend be
placed on Unit certificates. Awards of Restricted Units shall be subject to the terms and
provisions set forth below in this Section 8.1.

               (a) Rights of Participant. Restricted Units granted pursuant to an Award hereunder
shall be issued in the name of the Participant as soon as reasonably practicable after the Award is
granted provided that the Participant has executed an Agreement evidencing the Award, the
appropriate blank stock powers and, in the discretion of the Committee, an escrow agreement and any
other documents which the Committee may require as a condition to

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the issuance of such Units. At the discretion of the Committee, Units issued in connection
with an Award of Restricted Units shall be deposited together with the stock powers with an escrow
agent (which may be the Partnership) designated by the Committee. Unless the Committee determines
otherwise and as set forth in the Agreement, upon delivery of the Units to the escrow agent, the
Participant shall have all of the rights of a unitholder with respect to such Units, including the
right to vote the Units and to receive all distributions paid or made with respect to the Units.

               (b) Non-transferability. Until all restrictions upon Restricted Units awarded to a
Participant shall have lapsed in the manner set forth in Section 8.1(c), such Units shall not be
sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated.

               (c) Lapse of Restrictions.

                    (i) Generally. Restrictions upon Restricted Units awarded hereunder shall lapse at
such time or times and on such terms and conditions as the Committee may determine. The Agreement
evidencing the Award shall set forth any such restrictions.

                    (ii) Effect of Change in Control. The effect of a Change in Control on an Awards of
Restricted Units may be set forth in the applicable Agreement.

               (d) Treatment of Distributions. At the time an Award of Restricted Units is granted,
the Committee may, in its discretion, determine that the payment to the Participant of
distributions, or a specified portion thereof, made in respect of such Units by the Partnership
shall be (i) deferred until the lapsing of the restrictions imposed upon such Units and (ii) held
by the Partnership for the account of the Participant until such time. In the event that
distributions are to be deferred, the Committee shall determine whether such distributions are to
be reinvested in Units (which shall be held as additional Restricted Units) or held in cash. If
deferred distributions are to be held in cash, there may be credited interest on the amount of the
account at such times and at a rate per annum as the Committee, in its discretion, may determine.
Payment of deferred distributions in respect of Restricted Units (whether held in cash or as
additional Restricted Units), together with interest accrued thereon, if any, shall be made upon
the lapsing of restrictions imposed on the Units in respect of which the deferred distributions
were made, and any distributions deferred (together with any interest accrued thereon) in respect
of any Restricted Units shall be forfeited upon the forfeiture of such Units.

               (e) Delivery of Units. Upon the lapse of the restrictions on Restricted Units, the
Committee shall cause a unit certificate or other evidence of issuance of Units to be delivered to
the Participant with respect to such Restricted Units, free of all restrictions hereunder.

          8.2 Phantom Unit Awards. The Committee may grant to Eligible Individuals Phantom
Units, which shall be evidenced by an Agreement. Each such Agreement shall contain

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such restrictions, terms and conditions as the Committee may, in its discretion, determine.
Phantom Units shall be subject to the terms and provisions set forth below in this Section 8.2.

               (a) Payment of Awards. Each Phantom Unit shall represent the right of the Participant
to receive a payment upon vesting of the Phantom Unit or on any later date specified by the
Committee equal to the Fair Market Value of a Unit as of the date the Phantom Unit was granted, the
vesting date or such other date as determined by the Committee at the time the Phantom Unit was
granted. The Committee may, at the time a Phantom Unit is granted, provide a limitation on the
amount payable in respect of each Phantom Unit. The Committee may provide for the settlement of
Phantom Units in cash or with Units having a Fair Market Value equal to the payment to which the
Participant has become entitled.

               (b) Effect of Change in Control. The effect of a Change in Control on an Award of
Phantom Units shall be set forth in the applicable Agreement.

     9. Other Unit-Based Awards.

          The Committee may grant Other Unit-Based Awards to any Eligible Individual on such terms and
conditions as the Committee may determine in its sole discretion. Other Unit-Based Awards may be
made as additional compensation for services rendered by the Eligible Individual or may be in lieu
of cash or other compensation to which the Eligible Individual is entitled from the Partnership.

     10. Effect of a Termination of Employment.

          The Agreement evidencing the grant of each Option and each Award shall set forth the terms
and conditions applicable to such Option or Award upon (a) a termination or change in the status
of the employment of the Participant by the Partnership, a Subsidiary or Parent of the
Partnership, or a Division (including a termination or change by reason of the sale of any
Subsidiary or Parent of the Partnership, or a Division), or (b) in the case of a Director, the
cessation of the Director’s service on the Board, which shall be as the Committee may, in its
discretion, determine at the time the Option or Award is granted or thereafter.

     11. Adjustment Upon Changes in Capitalization.

          11.1 In the event of a Change in Capitalization, the Committee shall conclusively determine
the appropriate adjustments, if any, to (a) the maximum number and class of Units or other stock or
securities with respect to which Options or Awards may be granted under the Plan and (b) the number
and class of Units or other stock or securities, cash or other property which are subject to
outstanding Options or Awards granted under the Plan and the exercise price therefore, if
applicable.

          11.2 If, by reason of a Change in Capitalization, a Participant shall be entitled to, or shall
be entitled to exercise an Option with respect to, new, additional or different units or securities
of the Partnership or any other corporation, such new, additional or different securities shall
thereupon be subject to all of the conditions, restrictions and performance criteria which

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were applicable to the Units subject to the Award or Option, as the case may be, prior to such
Change in Capitalization.

     12. Effect of Certain Transactions.

          Subject to the terms of an Agreement, following (a) the liquidation or dissolution of the
Partnership or (b) a merger or consolidation of the Partnership (a “Transaction”), either (i)
each outstanding Option or Award shall be treated as provided for in the agreement entered into
in connection with the Transaction or (ii) if not so provided in such agreement, each Optionee
and Grantee shall be entitled to receive in respect of each Unit subject to any outstanding
Options or Awards, as the case may be, upon exercise of any Option or payment or transfer in
respect of any Award, the same number and kind of stock, securities, cash, property or other
consideration that each holder of a Unit was entitled to receive in the Transaction in respect of
a Unit; provided, however, that such stock, securities, cash, property, or other consideration
shall remain subject to all of the conditions, restrictions and performance criteria which were
applicable to the Options and Awards prior to such Transaction. Without limiting the generality
of the foregoing, the treatment of outstanding Options and Awards pursuant to clause (i) of this
Section 12 in connection with a Transaction may include the cancellation of outstanding Options
and Awards upon consummation of the Transaction provided either (x) the holders of affected
Options have been given a period of at least fifteen (15) days prior to the date of the
consummation of the Transaction to exercise the Options (whether of
not they were otherwise exercisable) or (y) the holders of affected Options and Awards are paid (in cash or cash equivalents) the following amounts: (A) in respect
of each Unit underlying Options being cancelled, an amount equal to the excess, if any,
of the per unit price paid or distributed to stockholders in the transaction (the value of any
non-cash consideration to be determined by the Committee in its sole discretion) over the
exercise price of the Option; and (B) in respect of each Unit covered by Awards being
cancelled, an amount equal to the per unit price paid or distributed to stockholders in the
transaction (the value of any non-cash consideration to be determined by the Committee in its
sole discretion). For avoidance of doubt, the cancellation of Options and Awards pursuant to
clause (y) of the preceding sentence may be effected notwithstanding anything to the contrary
contained in this Plan or any Agreement, and if the amount determined pursuant to clause (y) of
the preceding sentence is zero or less, the affected Option or Award may be cancelled without any
payment therefor. The treatment of any Option or Award as provided in this Section 12 shall be
conclusively presumed to be appropriate for purposes of Section 11.

     13. Interpretation.

          13.1 Section 16 Compliance. The Plan is intended to comply with Rule 16b-3
promulgated under the Exchange Act and the Committee shall interpret and administer the provisions
of the Plan or any Agreement in a manner consistent therewith. Any provisions inconsistent with
such Rule shall be inoperative and shall not affect the validity of the Plan.

          13.2 Compliance With Section 409A. All Options and Awards granted under the Plan are
intended either not to be subject to Section 409A of the Code or, if subject to Section

- 14 -

 

409A of the Code, to be administered, operated and construed in compliance with Section 409A
of the Code and any guidance issued thereunder. Notwithstanding this or any other provision of the
Plan to the contrary, the Committee may amend the Plan or any Option or Award granted hereunder in
any manner, or take any other action that it determines, in its sole discretion, is necessary,
appropriate or advisable (including replacing any Option or Award) to cause the Plan or any Option
or Award granted hereunder to comply with Section 409A and any guidance issued thereunder or to not
be subject to Section 409A. Any such action, once taken, shall be deemed to be effective from the
earliest date necessary to avoid a violation of Section 409A and shall be final, binding and
conclusive on all Eligible Individuals and other individuals having or claiming any right or
interest under the Plan.

     14. Termination and Amendment of the Plan or Modification of Options and Awards.

          14.1 Plan Amendment or Termination. The Board may at any time terminate the Plan and
the Board may at any time and from time to time amend, modify or suspend the Plan; provided,
however, that:

               (a) no such amendment, modification, suspension or termination shall impair or adversely alter
any Options or Awards theretofore granted under the Plan, except with the consent of the
Participant, nor shall any amendment, modification, suspension or termination deprive any
Participant of any Units which he or she may have acquired through or as a result of the Plan; and

               (b) to the extent necessary under any applicable law, regulation or exchange requirement, no
other amendment shall be effective unless approved by the unitholders of the Partnership in
accordance with applicable law, regulation or exchange requirement.

          14.2 Modification of Options and Awards. No modification of an Option or Award shall
adversely alter or impair any rights or obligations under the Option or Award without the consent
of the Participant.

     15. Non-Exclusivity of the Plan.

          The adoption of the Plan by the Board shall not be construed as amending, modifying or
rescinding any previously approved incentive arrangement or as creating any limitations on the
power of the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock options otherwise than under the Plan, and
such arrangements may be either applicable generally or only in specific cases.

     16. Limitation of Liability.

          As illustrative of the limitations of liability of the Partnership, but not intended to be
exhaustive thereof, nothing in the Plan shall be construed to:

- 15 -

 

               (a) give any person any right to be granted an Option or Award other than at the sole
discretion of the Committee;

               (b) give any person any rights whatsoever with respect to Units except as specifically
provided in the Plan;

               (c) limit in any way the right of the Partnership or any of its Subsidiaries or Parents to
terminate the employment of any person at any time; or

               (d) be evidence of any agreement or understanding, express or implied, that the Partnership
will employ any person at any particular rate of compensation or for any particular period of time.

     17. Regulations and Other Approvals; Governing Law.

          17.1 Except as to matters of federal law, the Plan and the rights of all persons claiming
hereunder shall be construed and determined in accordance with the laws of the State of Delaware
without giving effect to conflicts of laws principles thereof.

          17.2 The obligation of the Partnership to sell or deliver Units with respect to Options and
Awards granted under the Plan shall be subject to all applicable laws, rules and regulations,
including all applicable federal and state securities laws, and the obtaining of all such approvals
by governmental agencies as may be deemed necessary or appropriate by the Committee.

          17.3 The Board may make such changes as may be necessary or appropriate to comply with the
rules and regulations of any government authority.

          17.4 Each grant of an Option and Award and the issuance of Units or other settlement of the
Option or Award is subject to the compliance with all applicable federal, state or foreign law.
Further, if at any time the Committee determines, in its discretion, that the listing, registration
or qualification of Units issuable pursuant to the Plan is required by any securities exchange or
under any federal, state or foreign law, or the consent or approval of any governmental regulatory
body is necessary or desirable as a condition of, or in connection with, the grant of an Option or
Award or the issuance of Units, no Options or Awards shall be or shall be deemed to be granted or
payment made or Units issued, in whole or in part, unless listing, registration, qualification,
consent or approval has been effected or obtained free of any conditions that are not acceptable to
the Committee. Any person exercising an Option or receiving Units in connection with any other
Award shall make such representations and agreements and furnish such information as the Board or
Committee may request to assure compliance with the foregoing or any other applicable legal
requirements.

          17.5 Notwithstanding anything contained in the Plan or any Agreement to the contrary, in the
event that the disposition of Units acquired pursuant to the Plan is not covered by a then current
registration statement under the Securities Act of 1933, as amended (the “Securities Act”),
and is not otherwise exempt from such registration, such Units shall be

- 16 -

 

restricted against transfer to the extent required by the Securities Act and Rule 144 or other
regulations promulgated thereunder. The Committee may require any individual receiving Units
pursuant to an Option or Award granted under the Plan, as a condition precedent to receipt of such
Units, to represent and warrant to the Partnership in writing that the Units acquired by such
individual are acquired without a view to any distribution thereof and will not be sold or
transferred other than pursuant to an effective registration thereof under the Securities Act or
pursuant to an exemption applicable under the Securities Act or the rules and regulations
promulgated thereunder. The certificates evidencing any of such Units shall be appropriately
amended or have an appropriate legend placed thereon to reflect their status as restricted
securities as aforesaid.

     18. Miscellaneous.

          18.1 Multiple Agreements. The terms of each Option or Award may differ from other
Options or Awards granted under the Plan at the same time, or at some other time. The Committee
may also grant more than one Option or Award to a given Eligible Individual during the term of the
Plan, either in addition to, or subject to Section 3.6, in substitution for, one or more Options or
Awards previously granted to that Eligible Individual.

          18.2 Withholding of Taxes.

               (a) The Partnership and its Subsidiaries and Parents may withhold from any payment of cash or
Units to a Participant or other person under the Plan an amount sufficient to cover any withholding
taxes which may become required with respect to such payment or shall take any other action as it
deems necessary to satisfy any income or other tax withholding requirements as a result of the
grant or exercise of any Award under the Plan. The Partnership and its Subsidiaries and Parents
shall have the right to require the payment of any such taxes and require that any person furnish
information deemed necessary by the Partnership or any Subsidiary or Parent of the Partnership to
meet any tax reporting obligation as a condition to exercise or before making any payment pursuant
to an Award or Option. If specified in an Agreement at the time of grant or otherwise approved by
the Committee, a Participant may, in satisfaction of his or her obligation to pay withholding taxes
in connection with the exercise, vesting or other settlement of an Option or Award, elect to (i)
make a cash payment to the Partnership, (ii) have withheld a portion of the Units then issuable to
him or her, or (iii) surrender Units owned by the Participant prior to the exercise, vesting or
other settlement of an Option or Award, in each case having an aggregate Fair Market Value equal to
the withholding taxes.

          18.3 Plan Unfunded. The Plan shall be unfunded. Except for reserving a sufficient
number of authorized Units to the extent required by law to meet the requirements of the Plan, the
Partnership shall not be required to establish any special or separate fund or to make any other
segregation of assets to assure payment of any Award or Option granted under the Plan.

          18.4 Beneficiary Designation. Each Participant may, from time to time, name one or
more individuals (each, a “Beneficiary”) to whom any benefit under the Plan is to be paid
in case of the Participant’s death before he or she receives any or all of such benefit. Each such

- 17 -

 

designation shall revoke all prior designations by the same Participant, shall be in a form
prescribed by the Partnership, and will be effective only when filed by the Participant in writing
with the Partnership during the Participant’s lifetime. In the absence of any such designation,
benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.

          18.5 Effective Date/Term. The effective date of the Plan shall be the date of its
approval by the Board (the “Effective Date”). The Plan shall terminate on the Termination
Date. No Option or Award shall be granted after the Termination Date. The applicable terms of the
Plan, and any terms and conditions applicable to Options and Awards granted prior to the
Termination Date shall survive the termination of the Plan and continue to apply to such Options
and Awards.

- 18 -exv10w13w1

Exhibit 10.13.1

FORM OF

CVR PARTNERS, LP

LONG-TERM INCENTIVE PLAN

DIRECTOR PHANTOM UNIT AGREEMENT

     THIS AGREEMENT, made as of the ___ day of _________, 2011 (the “Grant Date”), between
CVR Partners, LP, a Delaware limited partnership (the “Partnership”), and __________ (the
“Grantee”).

     WHEREAS, the board of directors of CVR GP, LLC, a Delaware limited liability company (the
“General Partner”), has adopted the CVR Partners, LP Long-Term Incentive Plan (the
“Plan”) in order to provide an additional incentive to certain of the Partnership’s and its
Subsidiaries’ and Parents’ employees, officers, consultants and directors; and

     WHEREAS, the Committee responsible for administration of the Plan has determined to
grant Phantom Units to the Grantee as provided herein.

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Grant of Phantom Units.

          1.1 The Company hereby grants to the Grantee, and the Grantee hereby accepts from the Company,
_____________ Phantom Units on the terms and conditions set forth in this Agreement. Subject to
the terms of this Agreement, each Phantom Unit represents the right of the Grantee to receive, if
such Phantom Unit becomes vested, one (1) Unit or, at the Partnership’s option, cash in lieu of all
or any portion of the Units, on the date specified in Section 4. Such cash payment shall be equal
to the product of the number of Phantom Units being settled in cash and the Fair Market Value of a
Unit as of the applicable payment date. If all or any portion of the Phantom Units are settled in
Units, the issuance of such Units shall be subject to the Grantee’s prior execution of and becoming
a party to the Agreement of Limited Partnership of CVR Partners, LP, as may be amended from time to
time, and as in effect at the time of such issuance. Further, any Units delivered to the Grantee
in respect of the Phantom Units shall remain subject to the unit retention guidelines included in
the Corporate Governance Guidelines of the Partnership, as in effect on the date of the award.

          1.2 This Agreement shall be construed in accordance with and consistent with, and subject to,
the provisions of the Plan (the provisions of which are incorporated herein by reference). Except
as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have
the same definitions as set forth in the Plan.

     2. Vesting Date.

          Except as provided in Section 3 hereof, 100% of total number of Phantom Units granted
hereunder will vest on the six month anniversary of the Grant Date (the “Vesting Date”),
provided the Grantee continues to serve as a director of the General Partner on the Vesting Date.

1

 

     3. Ceasing to Serve as Director.

          In the event the Grantee ceases to serve as a director of the General Partner prior to the
Vesting Date for any reason other than as a result of his or her death or Disability, the Grantee
shall forfeit the Phantom Units and shall have no rights with respect thereto. In the event the
Grantee ceases to serve as a director of the General Partner prior to the Vesting Date by reason of
the Grantee’s death or Disability, the Phantom Units shall become immediately vested.

     4. Payment Date.

          The Units (or cash in lieu thereof) underlying the Phantom Units that become vested pursuant
to Section 2 of this Agreement shall be delivered within thirty (30) days following the Vesting
Date, or, if the Grantee ceases to serve as a director of the General Partner prior to the Vesting
Date by reason of death or Disability, within thirty (30) days following the date of such cessation
of services.

     5. Non-transferability.

          The Phantom Units may not be sold, transferred or otherwise disposed of and may not be pledged
or otherwise hypothecated.

     6. Withholding of Taxes.

          The Company and the Grantee shall agree on arrangements necessary for the Grantee to pay such
Grantee’s estimated federal and state income taxes associated with the taxable income generated by
the vesting of the Phantom Units and delivery of Units or cash in respect of such Phantom Units.
In the event the Phantom Units are settled in Units, at the Grantee’s election, the Company shall
withhold delivery of a number of Units having a Fair Market Value equal to the total number of
Phantom Units granted pursuant to this Agreement multiplied by such Grantee’s statutory
supplemental federal and state rates, and shall pay the Grantee such amount in cash.

     7. Grantee Bound by the Plan.

          The Grantee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof.

     8. Modification of Agreement.

          This Agreement may be modified, amended, suspended or terminated, and any terms or conditions
may be waived, but only by a written instrument executed by the parties hereto. No waiver by
either party hereto of any breach by the other party hereto of any provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at
the time or at any prior or subsequent time.

2

 

     9. Severability.

          Should any provision of this Agreement be held by a court of competent jurisdiction to be
unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be
affected by such holding and shall continue in full force in accordance with their terms.

     10. Governing Law.

          The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Delaware without giving effect to the conflicts of laws principles
thereof.

     11. Successors in Interest.

          This Agreement shall inure to the benefit of and be binding upon any successor to the
Partnership. This Agreement shall inure to the benefit of the Grantee’s legal representatives.
All obligations imposed upon the Grantee and all rights granted to the Partnership under this
Agreement shall be final, binding and conclusive upon the Grantee’s beneficiaries, heirs,
executors, administrators and successors.

     12. Resolution of Disputes.

          Any dispute or disagreement which may arise under, or as a result of, or in any way relate to,
the interpretation, construction or application of this Agreement shall be determined by the
Committee. Any determination made hereunder shall be final, binding and conclusive on the Grantee
and the Partnership for all purposes.

[signature pages follow]

3

 

     IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	CVR PARTNERS, LP	 	 	 	GRANTEE	 	 
	By: CVR GP, LLC, its general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	Name:
	 	 	 	 
	Title:

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