Document:

EX-10.12

 

Exhibit 10.12

GLOBAL CONSUMER ACQUISITION CORP.

October 1, 2007

Personal and Confidential

Scott LaPorta

308 Laurel Street

San Francisco, CA 94118

          Re:      Terms of Employment

Dear Mr. LaPorta:

Please find attached Exhibit A to this letter,
which sets forth the terms of your employment by
Global Consumer Acquisition Corp. (“GCAC”).

You hereby agree that this letter agreement supersedes
any agreement between GCAC and you prior to
the date hereof. The terms of this letter and the relationship of the parties in connection with
the subject matter of this letter shall be construed and enforced according to the laws of the
State of New York without giving effect to the conflicts of the law rules.

Please confirm that the terms of Exhibit A accurately
sets forth your understanding of our
agreement by signing and returning a copy of this letter to us.

Sincerely,

Jason Ader

Chairman of the Board

Global Consumer Acquisition Corp.

ACCEPTED AND AGREED:

SCOTT LAPORTA

/s/  Scott
LaPorta

 

Dated:   October 1,
2007

ACKNOWLEDGED AND AGREED

(AS TO OPTION GRANT):

HAYGROUND COVE ASSET MANAGEMENT, LLC

/s/  Jason
N. Ader

 

Name:   Jason N. Ader

Dated:   October 1, 2007

 

 

EXHIBIT A

GCAC TERM SHEET

	 	 	 	 	 
	Agreement	 	Employment or Consulting Agreement (the “Agreement”).
Services under the Agreement will include:
	 
	 	 	 	 
	 
	 	•	 	Co-leading the “roadshow” of Global Consumer
Acquisition Corp. (“GCAC”);
	 
	 	 	 	 
	 
	 	•	 	Identifying and discussing acquisition
opportunities with the board of directors of GCAC;
	 
	 	 	 	 
	 

	 	•	 	Leading and managing the identification,
solicitation and evaluation of prospective acquisition
opportunities; and
	 
	 	 	 	 
	 

	 	•	 	Leading and managing the structuring and negotiating
acquisition opportunities.
	 
	 	 	 	 
	Sponsor	 	Hayground Cove Asset Management
(“HCAM”), the sponsor of GCAC
	 
	 	 	 	 
	Title; Board	 	CEO and President and member of the board of directors of GCAC.
Right to appoint another director (to be discussed if
appointee must be deemed “independent” under Amex
rules). Intend to have seven (7) members of the board, with
four (4) independent directors. There will be an audit
committee, compensation committee and nominating
committee the membership of which to be discussed. To the
extent his appointment would be in compliance with SEC and
exchange rules (e.g., independence requirements under
Amex), Mr. LaPorta will appointed as a member of each
of these committees.
	 
	 	 	 	 
	 	 	GCAC expects that Mr. LaPorta
will step down as CEO upon closing a qualified business
combination and for Jason Ader to step down as Chairman of the
Board. Subject to Board approval, GCAC intends to
include Mr. LaPorta as new Chairman of the Board upon
closing a qualifying business combination.
	 
	 	 	 	 
	Parties	 	GCAC, a Delaware special
purpose acquisition corporation formed by HCAM to complete an
IPO the proceeds of which will be used to acquire an operating
business in the consumer products industry, and Scott
LaPorta (or an entity controlled by Scott LaPorta).
	 
	 	 	 	 
	Term	 	Commencing upon August 1, 2007
until the earlier of (i) 2 year after closing of IPO and (ii)
the closing of a qualifying business combination. One year

 

 

	 	 	 	 	 
	 	 	renewal option upon 90-day written notice. The agreement
will be exclusive for the term of the Agreement.
	 
	 	 	 	 
	Equity compensation	 	Option to purchase 475,000 shares at $0.001 per share from
HCAM. The amount of the option will be increased by the amount of shares equal to 10,000
shares for each $10 million of gross proceeds from the exercise of the overallotment
option. The option will only vest upon the following occurring:
	 
	 	 	 	 
	 
	 	•	 	the date that is one year after the completion of a
qualified business combination has passed (the “Trigger
Date”); and
	 
	 	 	 	 
	 
	 	•	 	the appreciation of GCAC’s common share price is
either (i) greater than 1.0x the Russell 2000 hurdle rate on
the Trigger Date, or (ii) if GCAC’s common share price is
below the Russell 2000 hurdle rate on the Trigger Date, the
common share price must have exceeded the Russell 2000
hurdle rate for 20 consecutive trading days thereafter. The
Russell 2000 hurdle rate is defined as the Russell 2000
index performance over the duration of time from the
closing date of the IPO to the Trigger Date.
	 
	 	 	 	 
	 	 	The option will also fully vest if Mr. LaPorta is terminated
from GCAC without cause. If Mr. LaPorta resigns from GCAC
or is terminated from GCAC for cause he will forfeit 50% of
his options under this agreement.
	 
	 	 	 	 
	 	 	In addition, Mr. LaPorta will receive 25,000 founder shares
transferred from HCAM at a purchase price of $0.001 per
share ($25) in connection with his service on the Board of the
Directors. If Mr. LaPorta resigns from GCAC or is
terminated from GCAC for cause he will relinquish the option
above and his 25,000 founders shares will be redeemed by GCAC
at the original $25 purchase price.
	 
	 	 	 	 
	Termination	 	Customary provisions for termination by GCAC
for cause. Customary severance if termination by GCAC without cause or by employee for good reason.	 	 
	 
	 	 	 	 
	Confidentiality	 	Standard.

 

 

	 	 	 	 	 
	Indemnification	 	GCAC will agree to indemnify
Mr. LaPorta for liabilities arising from the services
provided under the Agreement (other than as a result of
fraud, willful misconduct or gross negligence). Customary
D&O insurance will be in place upon closing of the IPO.
	 
	 	 	 	 
	Non-competition; Non-solicitation,
Non-disparagement	 	During Mr. LaPorta’s employment
by GCAC or its affiliates Mr. LaPorta may not, anywhere in or
outside the United States, engage in the investment in
equity securities, whether publicly traded, listed or
otherwise, or the formation or management of or active
participation in any fund, fund of funds or other investment
vehicle or account, other than with respect to amounts owned
by Mr. LaPorta or his spouse or any estate-planning vehicle for
the sole benefit of Mr. LaPorta’s immediate family not
to exceed 1% of the total shares of all classes of
outstanding equity securities of any publicly held entity.

	 
	 	 	 	 
		 	Mr. LaPorta may not, while employed by GCAC or its
affiliates and for a period of two years commencing on his
employment termination date, solicit employees, personnel,
consultants, advisers or contractors of GCAC or its
affiliates to leave GCAC or its affiliates or encourage in any
manner customers or clients of GCAC or its affiliates to
reduce their relationship with GCAC or its affiliates.

	 
	 	 	 	 
		 	
Mr. LaPorta may not, during or after his employment, make any
statements (or participate in the making of any statements)
that denigrate, malign, defame or disparage GCAC or its
affiliates or any of their businesses, assets or employees.
	 
	 	 	 	 
	Restriction on Board Service and Conflicts	 	While employed by GCAC, Mr.
LaPorta will devote all of his
business time and efforts to
the performance of the duties
hereunder and use his best
efforts in such endeavors;
provided, however, that the
foregoing shall not prevent Mr.
LaPorta from services to HCAM
or serving on the board of
directors of non-profit
organizations and, with GCAC’s
prior written approval, serving
on the board of directors of
other for profit entities, so
long as such activities do not
interfere or conflict with the
performance of his duties
hereunder or create a business
conflict or potential business
conflict with GCAC.
	 
	 	 	 	 
	Lock-up Agreement	 	Shares will be locked-up based on lock-up agreement with underwriters with
insiders and founders (customary time period for US SPACs).

 

 

	 	 	 	 	 
	Waiver of Trust	 	Mr. LaPorta will waive all rights, interests and claims to the proceeds of the
IPO and sponsor private placement held in the trust account for the benefit of
the IPO investors (other than as an investor in the IPO).
	 
	 	 	 	 
	Governing Law	 	New York
	 
	 	 	 	 
	Investment in Warrants	 	Mr. LaPorta will make a $1 million investment in warrants of GCAC immediately
prior to the closing of the IPO. The warrants will be purchased at $1 per
warrant. The amount of the investment will need to be disclosed in the
registration stated for the GCAC IPO and, as a result, the amount will need to
be committed as promptly as practicable. This investment will be in addition to
the $5 million purchase of warrants by HCAM. The warrants will be purchased
separately and not in combination with common stock in the form of units. The
terms of the warrants will be exactly the same as the warrants comprising the
units in the IPO. However, the proceeds of the warrants are “at risk” in that
they will be added to the proceeds from this offering to be held in the trust
account pending GCAC’s completion of a business combination. If we do not
complete a business combination that meets the criteria described in the GCAC
prospectus, then the purchase price of the warrants will become part of the
amount payable to our public stockholders upon the liquidation of GCAC’s trust
account and the warrants will become worthless.
	 
	 	 	 	 
	 	 	 In the event Mr. LaPorta’s
employment with GCAC and/or HCAM is terminated, Mr. LaPorta will retain all
rights and economics with respect to the warrants.EX-10.3

 

Exhibit 10.3

COFFEYVILLE RESOURCES, LLC

PHANTOM UNIT APPRECIATION PLAN (PLAN I)

	1.	 	Purpose; Operation. The purpose of the Coffeyville Resources, LLC Phantom Unit
Appreciation Plan (Plan I) (the “Plan”) is to provide an incentive to employees of the Company
and its Affiliates who contribute to the Company’s success to increase their efforts on behalf
of the Company and to promote the success of the Company’s business. Participants in the Plan
have the opportunity to receive cash payments in respect of Phantom Points they hold in the
event of certain distributions pursuant to the Parent LLC Agreement to “Members” (as defined
in the Parent LLC Agreement) in Coffeyville Acquisition LLC, an indirect equity owner of the
Company. Whether payments will be made will depend on the amount of net proceeds realized in
connection with the event that gives rise to such distributions. Defined terms are defined in
Exhibit A hereto.
	 
	2.	 	Administration. The Plan shall be administered by the Committee. The Committee shall
have the authority in its discretion, subject to and not inconsistent with the express
provisions of the Plan, to administer the Plan and to exercise all the powers and authorities
either specifically granted to it under the Plan or necessary or advisable in the
administration of the Plan, including, without limitation:

	 	•	 	the authority to grant Phantom Points;
	 
	 	•	 	to determine the persons to whom and the time or times at which Phantom
Points shall be granted;
	 
	 	•	 	to determine the number and type of Phantom Points to be granted and the
terms, conditions and restrictions relating thereto;
	 
	 	•	 	to determine whether, to what extent, and under what circumstances Phantom
Points may be settled, cancelled, forfeited, exchanged, or surrendered;
	 
	 	•	 	to make adjustments in the terms and conditions applicable to Phantom
Points;
	 
	 	•	 	to construe and interpret the Plan and Award Agreements;
	 
	 	•	 	to prescribe, amend and rescind rules and regulations relating to the Plan;
	 
	 	•	 	to determine the terms and provisions of the Award Agreements;
	 
	 	•	 	to determine the Baseline Primary Phantom Percentage, the Total Phantom
Percentages and the Final Phantom Percentages;
	 
	 	•	 	to determine the amounts allocable for payment pursuant to this Plan;
	 
	 	•	 	to assign Phantom Benchmark Amounts; and

 

 

	 	•	 	to make all other determinations deemed necessary or advisable for the
administration of the Plan.

	 	 	All determinations made by the Committee in respect of the Plan shall be final and binding
on all Participants and their beneficiaries. No manager or member of the Company or member
of the Committee shall be liable for any action taken or determination made in good faith
with respect to the Plan or any Phantom Points granted hereunder. The Committee, with the
consent of Parent LLC, shall make determinations with respect to percentages (including the
Total Phantom Percentages and the Final Phantom Percentages) and cash amounts allocated, if
any, to the Plan with reference to the applicable definitions set forth in Exhibit
A; provided that any and all determinations with respect to applicable
percentages and cash amounts allocated to the Plan shall be made in the Committee’s
discretion and may vary from such definitions. The Committee may make adjustments in the
operation of provisions of the Plan if the Committee determines in its sole discretion that
such adjustments will further the intent of such provisions.
	 
	3.	 	Eligibility. Phantom Points may be granted at any time to directors, employees
(including officers) and service providers of an Employer, in the discretion of the Committee.
	 
	4.	 	Phantom Service Points; Payment.

	 	(a)	 	Phantom Service Point Pool. A pool of points shall exist consisting of
“Phantom Service Points”. Phantom Service Points shall represent the right to receive
a cash payment from the Employer within thirty (30) days following the date on which a
distribution is made pursuant to the Parent LLC Agreement. The pool of Phantom Service
Points shall initially be 10,000,000 but may be increased in the discretion of the
Committee at any time. The total number of Phantom Service Points outstanding (after
taking into account any adjustments made pursuant to Section 7) shall be referred to as
the “Total Phantom Service Point Pool”.
	 
	 	(b)	 	Phantom Service Percentage. The “Phantom Plan Service Percentage” for
each Participant shall be the Final Phantom Service Percentage multiplied by the
quotient obtained by dividing (x) the number of Phantom Service Points allocated to
such Participant by (y) 10,000,000, or, if the Total Phantom Service Point Pool is
greater than 10,000,000, the Total Phantom Service Point Pool.
	 
	 	(c)	 	Phantom Service Point Payments. The cash amount payable to a
Participant in respect of his or her Phantom Service Points at any time that a
distribution is made pursuant to the Parent LLC Agreement in respect of Operating Units
shall be determined by multiplying (x) such Participant’s Phantom Plan Service
Percentage and (y) the amount of Exit Proceeds. For the avoidance of doubt, the
foregoing is simply a calculation of amount of the cash payment payable to a
Participant holding Phantom Service Points, and in no event shall such

2

 

	 	 	 	Participant, in its capacity as such, have any rights to receive a payment or
distribution from Parent LLC.1

	5.	 	Phantom Performance Points; Payment.

	 	(a)	 	Phantom Performance Point Pool. A pool of points shall exist
consisting of “Phantom Performance Points”. Phantom Performance Points shall represent
the right to receive a cash payment within thirty (30) days following the date on which
a distribution is made pursuant to the Parent LLC Agreement in respect of Value Units.
The pool of Phantom Performance Points shall initially be 10,000,000, but may be
increased in the discretion of the Committee at any time. The total number of Phantom
Performance Points outstanding (after taking into account any adjustment made pursuant
to Section 7) shall be referred to as the “Total Phantom Performance Point Pool”.
	 
	 	(b)	 	Phantom Performance Percentage. The “Phantom Plan Performance
Percentage” for each Participant shall initially be the Final Phantom Performance
Percentage multiplied by the quotient obtained by dividing (x) the number of Phantom
Performance Points allocated to such Participant by (y) 10,000,000, or, if the Total
Phantom Performance Point Pool is greater than 10,000,000, the Total Phantom
Performance Point Pool, and shall be further subject to reduction pursuant to Section
5(c) below.
	 
	 	(c)	 	Performance Factor; Investment Multiple. As provided in the definition
of Final Phantom Performance Percentage, each Participant’s Phantom Plan Performance
Percentage reflects the Performance Factor, which operates to adjust Participants’
performance percentages based on the performance of the investment in the Parent LLC by
the Investor Members. For purposes of this Plan:

	 	(1)	 	The “Performance Factor” equals a number
(between zero and one) equal to the quotient obtained by dividing (i)
the excess, if positive, of the Final Investment Multiple (as defined
below) over the Minimum Investment Multiple by (ii) two (2);
provided that if such quotient is greater than one, the
Performance Factor will equal one.
	 
	 	(2)	 	The Final Investment Multiple is computed,
after giving effect to any payments to be made pursuant to this Plan,
by dividing (x) the total fair market value of all net distributions
received, or to be received upon the applicable distribution, by the
Investor Members from the Company in respect of their aggregate
investment in the Company divided by (y) the aggregate of such
investment of the Investor Members in the Company (it being understood
that all

 

			
	1	 	Schedule A provides an illustration of how a
calculation of a Phantom Service Point payment would be made under the Plan.
It is not intended to be an indication of actual payments under the Plan.

3

 

	 	 	 	such amounts are themselves simultaneously being calculated by
reference to amounts that may be payable pursuant to the Plan).

	 	(d)	 	Phantom Performance Point Payments. The cash amount payable to a
Participant in respect of his or her Phantom Performance Points at any time that a
distribution is made pursuant to the Parent LLC Agreement in respect of Value Units
shall be determined by adding (x) the product of (i) such Participant’s Phantom Plan
Performance Percentage and (ii) the amount of Exit Proceeds plus (y) an additional
amount to provide a ‘catch-up’ similar to that provided in respect of Value Units
pursuant to Section 9.1(d) of the Parent LLC Agreement. For the avoidance of doubt,
the foregoing is simply a calculation of the amount of the cash payment payable to a
Participant holding Phantom Performance Points, and in no event shall such Participant,
in its capacity as such, have any rights to receive a payment or distribution from
Parent LLC.2

	6.	 	Additional Awards; Adjustments.

	 	(a)	 	Additional Awards. An Employer may determine that a Participant’s
performance warrants an award of additional Phantom Points, in which case the Employer
may recommend to the Committee that an additional award be made.
	 
	 	(b)	 	Prior Appreciation Adjustments. Each Participant will be assigned a
“Phantom Benchmark Amount”, which shall be an amount determined by the Committee with
respect to the Participant each time the Committee awards any Phantom Points to the
Participant and relates to the valuation of Parent LLC at such time. Notwithstanding
anything to the contrary set forth in the Plan, for purposes of the calculations under
Section 4(c) and Section 5(d), the Committee shall make such adjustments to the amounts
otherwise determined thereunder to account for the Phantom Benchmark Amount assigned in
respect of a Participant’s Phantom Points.
	 
	 	(c)	 	In the event of any material acquisition, disposition, merger,
recapitalization, capital contribution or other similar event, the Committee may make
such adjustment(s) to the terms of the Plan or any awards granted under the Plan as the
Committee shall determine appropriate in its sole discretion.

	7.	 	Termination of Employment. If a Participant ceases to be employed by an Employer
(other than in connection with a transfer to another Employer) prior to an Exit Event, such
Participant shall forfeit all Phantom Points granted to the Participant.

 

			
	2	 	Schedule A provides an illustration of how a
calculation of a Phantom Performance Point payment would be made under the
Plan. It is not intended to be an indication of actual payments under the
Plan.

4

 

	8.	 	General Provisions.

	 	(a)	 	Nontransferability. Unless otherwise provided in an Award Agreement,
Phantom Points shall not be transferable by a Participant under any circumstances,
except by will or the laws of descent and distribution.
	 
	 	(b)	 	No Right to Continued Employment, etc. Nothing in the Plan or in any
Award Agreement entered into pursuant the Plan shall confer upon any Participant the
right to continue in the employ of or to be entitled to any remuneration or benefits
not set forth in the Plan or such Award Agreement, or to interfere with or limit in any
way the right of an Employer to terminate such Participant’s employment.
	 
	 	(c)	 	Taxes. The Company or any Affiliate is authorized to withhold from any
payment relating to Phantom Points under the Plan amounts of withholding and other
taxes due to enable the Company and Participants to satisfy obligations for the payment
of withholding taxes and other tax obligations.
	 
	 	(d)	 	Excise Tax. To the extent that, (i) in the Committee’s determination, payment to a Participant in respect of
his or her Phantom Points would constitute “parachute payments” (within the meaning of Section 280G
of the Code), and if (ii) such payment would (together with any other payment to which the
Participant is or may be entitled that would constitute a “parachute payment”), if reduced by all
federal, state, and local taxes applicable thereto, including the excise tax imposed under Section
4999 of the Code, be less than the amount the Participant would receive, after all taxes, if the
Participant received aggregate payments in respect of his or her Phantom Points (and such other
payments) equal (as valued under Section 280G of the Code) to only three times the Participant’s
“base amount” (within the meaning of Section 280G of the Code), less $1.00, then (iii) such
payments hereunder shall be reduced to such extent to avoid the application of such excise tax;
provided that the Company shall use its reasonable best efforts to obtain shareholder approval of
the payments in a manner intended to satisfy requirements of the “shareholder approval” exception
to Section 280G of the Code and the regulations promulgated thereunder, such that payments may be
made to the Participant in respect of his or her Phantom Points without the application of the
excise tax.

	 
	 	(e)	 	Amendment and Termination. The Plan shall take effect on the date of
its adoption by the Board of Directors of the Company (the “Board”). The Board may at
any time and from time to time alter, amend, suspend, or terminate the Plan in whole or
in part, including but not limited to, amending the Plan and awards to alter the
structure of the Plan if the Board determines that the Plan is not meeting its
objectives.
	 
	 	(f)	 	No Rights to Awards; No Stockholder or Member Rights. No Participant
shall have any claim to be granted any Phantom Points under the Plan, and there is no
obligation for uniformity of treatment of Participants. A Participant or a transferee
of Phantom Points shall have no rights as a stockholder or member of the Company or any
Affiliate.
	 
	 	(g)	 	Unfunded Status of Awards. The Plan is intended to constitute an
“unfunded” plan for incentive compensation. With respect to any payments not yet made
to a Participant pursuant to an Award, nothing contained in the Plan or any Phantom
Points shall give any such Participant any rights that are greater than those of a
general creditor of the Company.

5

 

	 	(h)	 	Governing Law. The Plan and all determinations made and actions taken
pursuant hereto shall be governed by the laws of the State of Delaware without giving
effect to the conflict of laws principles thereof.
	 
	 	(i)	 	Beneficiary. Upon the death of a Participant, all of his of her rights
under the Plan shall inure to his or her designated beneficiary or, if no beneficiary
has been designated, to his or her estate.
	 
	 	(j)	 	No Guarantee or Assurances. There can be no guarantee that any
distributions in respect of Operating Units or Value Units will occur under the Parent
LLC Agreement or that any payment to any Participant will result under the Plan.
	 
	 	(k)	 	Expiration of Plan. Unless otherwise determined by the Board, the Plan
shall expire on July 25, 2015 and all outstanding Phantom Points shall then expire and
be forfeited with no consideration paid in respect of such forfeiture.

6

 

EXHIBIT A

Plan Definitions

For purposes of the Plan, the following terms shall be defined as set forth below.

“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Securities Exchange Act of 1934.

“Award Agreement” means any written agreement, contract, or other instrument or document
evidencing a grant of Phantom Points.

“Baseline Primary Phantom Percentage” means a notional profits interest percentage in Parent
LLC, determined by the Committee with the consent of Parent LLC in its sole discretion,
attributable to all Phantom Points available for award under the Plan; provided that
in no event shall the Baseline Primary Phantom Percentage plus the percentage interest
represented by all profits interests in the Parent LLC be greater than 15% of the combined
notional and aggregate equity interests of the Parent LLC, assuming all profits interests
are outstanding and entitled to share in distributions. Such deemed profits interest
percentage, as adjusted pursuant to the terms of the Plan, is generally intended to provide,
as a function of Exit Proceeds, the maximum attainable cash payment payable to holders of
Phantom Points under the Plan. The Committee shall have the discretion (with the consent of
Parent LLC) to change the Baseline Primary Phantom Percentage at any time and from time to
time (including upon the occurrence of any distribution pursuant to the Parent LLC Agreement
or an Exit Event). Schedule 1, as amended from time to time, shall set forth the
Baseline Primary Phantom Percentage.

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Committee” means the Compensation Committee of Parent LLC, or if there is no such
Compensation Committee of Parent LLC, Parent LLC.

“Company” means Coffeyville Resources, LLC, a Delaware limited liability company, or any
successor corporation.

“Employer” means the Company or any Affiliate of the Company.

“Exit Event” has the meaning given in the Parent LLC Agreement.

“Exit Proceeds” means the net proceeds available for distribution to the Members of Parent
LLC at any time that a distribution is made pursuant to the Parent LLC Agreement in respect
of Operating Units or Value Units, as the case may be, following the return of all
unreturned “Capital Contributions” (as defined in the Parent LLC Agreement).

“Final Phantom Percentages” means, collectively, the Final Phantom Performance Percentage,
the Final Phantom Service Percentage and the Final Aggregate Phantom Percentage.

7

 

“Final Phantom Performance Percentage” means the product of (x) the Performance
Factor and (y) the Total Performance Phantom Percentage.

“Final Phantom Service Percentage” means the Total Phantom Service Percentage.

“Investor Member” has the meaning given in the Parent LLC Agreement.

“Maximum Investment Multiple” means four (4).

“Minimum Investment Multiple” means two (2).

“Operating Unit” has the meaning given in the Parent LLC Agreement.

“Parent LLC” means Coffeyville Acquisition LLC.

“Parent LLC Agreement” means the Second Amended and Restated Limited Liability Company
Agreement of Parent LLC, dated as of July 25, 2005, as such may be amended.

“Participant” means an individual who has been granted Phantom Performance Points and/or
Phantom Service Points pursuant to the Plan and who continues to hold Phantom Points.

“Performance Factor” shall have the meaning set forth in Section 5(c)(1).

“Phantom Performance Points” shall have the meaning set forth in Section 5.

“Phantom Points” means, collectively, or individually as the context requires, Phantom
Performance Points and Phantom Service Points.

“Phantom Service Points” shall have the meaning set forth in Section 4.

“Plan” means this Coffeyville Resources, LLC Phantom Unit Appreciation Plan (Plan I), as
amended from time to time.

“Total Performance Phantom Percentage” means the product of (x) .667 and (y) the Baseline
Primary Phantom Percentage.

“Total Phantom Percentages” means, collectively, the Total Performance Phantom Percentage
and the Total Service Phantom Percentage.

“Total Phantom Service Percentage” means the product of (x) .333 and (y) the Baseline
Primary Phantom Percentage.

“Value Unit” has the meaning given in the Parent LLC Agreement.

8

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