Document:

EX-10.4

 

 PORTIONS
OF THIS EXHIBIT DENOTED WITH THREE ASTERISKS [***] HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIALITY.

EXHIBIT 10.4

LICENSE AGREEMENT

FOR USE OF THE TEXACO GASIFICATION PROCESS,

TEXACO HYDROGEN GENERATION PROCESS,

AND TEXACO GASIFICATION POWER SYSTEMS 

     THIS AGREEMENT, effective as of the 30th day of May, 1997 (“Effective Date”), by and between
TEXACO DEVELOPMENT CORPORATION, a subsidiary of Texaco Inc., hereinafter referred to as “TEXACO
DEVELOPMENT,” and FARMLAND INDUSTRIES, INC., hereinafter referred to as “LICENSEE”,

RECITALS

     WHEREAS, TEXACO DEVELOPMENT and its parent corporation, Texaco Inc., have conducted research
and development work on the Texaco Gasification Process (“TGP”) and further applications or
variants thereof, including without limitation, the Texaco Hydrogen Generation Process (“THGP”)
and Texaco Gasification Power Systems (“TGPS”) (as more fully defined in Schedule I attached
hereto), and have developed and acquired technical data and information pertinent to, and have
been granted patents covering certain aspects of, the design, construction, operation and
maintenance of plants for the practice of the TGP, THGP and TGPS; and

     WHEREAS, TEXACO DEVELOPMENT is prepared to grant nonexclusive licenses to LICENSEE for the
use of such technical data and information and under certain patent rights relating to the design,
construction, operation and maintenance of the Plant described in Paragraph 3.1 below, for the
practice of the TGP and THGP and, in the event the Plant is subsequently modified, TGPS, including
certain patent rights of Texaco Inc.; and

     WHEREAS, LICENSEE now desires to have access to such technical data and information from
TEXACO DEVELOPMENT with the right to use the same, and a nonexclusive license under TEXACO
DEVELOPMENT’s Patent Rights (as defined in Schedule I attached hereto)

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to commercially practice the THGP (which by design includes practice of the TGP) and, at LICENSEE’s
option, the TGPS at the Plant; and

     WHEREAS, in addition to the granting of licenses, a company Affiliated with TEXACO
DEVELOPMENT will operate and maintain the Plant and provide certain technical services under the
terms of a separate agreement which will be entered into between LICENSEE and such affiliated
company.

     NOW, THEREFORE, for and in consideration of the above premises and of the covenants
hereinafter set forth, the parties hereto mutually covenant and agree as follows:

1. DEFINITIONS

     1.1 The terms defined in Schedule I attached to and made a part of this License
Agreement shall have those meanings wherever used herein.

2. GRANTS

     2.1 TEXACO DEVELOPMENT hereby grants and agrees to grant to LICENSEE, subject to the terms
and conditions of this License Agreement, a nonexclusive license under TEXACO DEVELOPMENT’s Patent
Rights to practice the TGP, THGP and/or TGPS for the production of Synthesis Gas where such
Synthesis Gas will be used in the production of high purity hydrogen (in the case of THGP) and/or
electric power (in the case of TGPS), in and only in the Plant, together with the right to use and
sell the products thereby produced. The license so granted to LICENSEE shall be nontransferable,
except as provided in Section 9.

     2.2 TEXACO DEVELOPMENT hereby grants and agrees to grant to LICENSEE, subject to the terms
and conditions of this License Agreement, a nonexclusive license to use TEXACO DEVELOPMENT’s
Technical Information to practice the TGP, THGP and/or TGPS for the production of Synthesis Gas
where such Synthesis Gas will be used in the production of high purity hydrogen (in the case of
THGP) and/or electric power (in the case of TGPS), in and only in the

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Plant, together with the right to use and sell the products thereby produced. After LICENSEE has
made the first royalty payment required hereunder, TEXACO DEVELOPMENT’s Technical Information shall
be made available in writing or otherwise to LICENSEE directly by TEXACO DEVELOPMENT or through
its nominee(s). The license so granted to LICENSEE shall be nontransferable except as provided in
Section 9. The license granted in this Paragraph 2.2 shall in no event be construed as granting
any license by implication, estoppel or otherwise under any patent rights or letters patent, such
rights being granted only under Paragraph 2.1 hereof.

     2.3 Notwithstanding the definitions afforded TGPS and THGP in Schedule I, if LICENSEE
produces electric power or high purity hydrogen from Synthesis Gas generated through the practice
of TGP, regardless of the technique or process employed to produce those products, for purposes of
Section 5 of this License Agreement, the parties hereto agree that such practice shall be regarded
as TGPS or THGP, whichever appropriate.

     2.4 For general illustrative purposes, Schedule III (attached to and made a part of this
License Agreement) includes a non-limiting, non-exhaustive list of
certain of the unexpired U. S.
Patents that are subject to the grant of Paragraph 2.1 hereof.

3. THE PLANT

     3.1 LICENSEE represents that it presently intends to build and place in commercial
operation in, or within the proximity of, Coffeyville, Kansas, a plant for the practice of the THGP
(which, by design, includes the practice of the TGP) within a reasonable time, but not later than
December 31, 2002 (the “Plant”). The Gasifier Feed to such Plant is expected to be a solid
carbonaceous substance derived from petroleum, including a carbonaceous solid (i.e., coal or
petroleum coke), along with refinery or chemical plant byproducts and water. It is expected that
the Plant shall have a configuration using direct quench in the Gasification section and shall have
a designed capacity of about Eighty-six Thousand (86,000) MSCF of Output per operating day from the
Gasification section. It is understood and agreed that LICENSEE shall be permitted to use other
carbonaceous substances as Gasifier Feed in the Plant in addition to, or in lieu of, coal or
petroleum coke; provided, however: (i) LICENSEE shall first advise TEXACO DEVELOPMENT in writing
that it is contemplating the use of

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such other
feedstock; and (ii) TEXACO DEVELOPMENT will perform, or arrange to perform, the
necessary study to assess the feasibility of processing such other carbonaceous substance in the
Plant, and shall provide the engineering services, pursuant to the terms set forth in Paragraph
14.2 hereof.

     3.2 TEXACO DEVELOPMENT’s representatives alone or accompanied by TEXACO DEVELOPMENT’s
licensees or potential licensees shall have reasonable access to the Plant for the purpose of
promoting the TGP and further applications or variants thereof, including without limitation TGPS
and THGP, upon reasonable advance notice and during normal business hours. Such visits shall take
place at such times as reasonably agreed upon between the parties hereto so as not to unduly
interfere with the operations of the Plant or otherwise cause undue inconvenience for LICENSEE.

          3.2.1 All visitors to the Plant, including employees of TEXACO DEVELOPMENT and its Affiliates,
but excluding any personnel present as a result or in support of the Operations and Maintenance
Agreement, process Guarantee Agreement or Texaco’s equity interest in the Plant, shall be required
to sign the Release attached as Schedule IV to this License
Agreement, in their individual capacity.
The parties hereto contemplate that Farmland may determine that it is necessary or desirable from
time to time to revise such Release due to certain changes in the applicable laws which may occur.
Any such revision(s) shall require the written consent of TEXACO DEVELOPMENT, which consent shall
not be unreasonably withheld. In the event a proposed revision has not been agreed upon by TEXACO
DEVELOPMENT, then the visit shall take place in any event with the visitor being responsible to
sign the Release as it existed prior to any proposed revision(s).

          3.2.2 TEXACO DEVELOPMENT shall indemnify LICENSEE against any claims brought by any employee
of TEXACO DEVELOPMENT or its Affiliate for injury, death or damage which occurs during any Plant
visit and which is directly caused by the gross negligence or willful misconduct of such
employee(s), TEXACO DEVELOPMENT or its Affiliates. Any such indemnity shall be subject to the limit
on TEXACO DEVELOPMENT’s liability set forth in Paragraph 8.6 of this License Agreement.

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          3.2.3 TEXACO DEVELOPMENT agrees to use its reasonable efforts to cause visitors to comply
with LICENSEE’s safety rules, provided that LICENSEE shall provide all visitors with safety
training and instruction regarding such rules at no cost to TEXACO
DEVELOPMENT or the visitors.
Furthermore, such training and instruction shall be reasonable, shall not exceed thirty (30)
minutes in duration, shall directly relate to the Plant, and shall be provided to all such
visitors within two (2) hours of their arrival at the Plant on the day of the scheduled visit.

          3.2.4 LICENSEE, on request of TEXACO DEVELOPMENT a reasonable time in advance, shall furnish
TEXACO DEVELOPMENT information and data relating to the operation of the Plant and samples of
Gasifier Feed and other materials.

     3.3 The visitation rights contemplated under Paragraph 3.2 shall remain in full force and
effect for a period of twenty (20) years from the Effective Date of this License Agreement. Within
a reasonable time prior to the expiration of said period, TEXACO DEVELOPMENT may request that the
visitation rights be extended for additional five (5) year
intervals. Any such extension(s) shall
become effective in the event the parties hereto mutually agree to such extensions. Furthermore,
Plant visits shall not be available to LICENSEE’s top five competitors in the nitrogen fertilizer
business without LICENSEE’s prior written approval. LICENSEE shall identify to TEXACO DEVELOPMENT
in writing, on an annual basis on or before the first day of March of each year, its top five
competitors in the nitrogen fertilizer business. In the event LICENSEE does not update the
aforesaid top five competitors in any particular year, the top five competitors last identified by
LICENSEE shall be used for purposes of this Paragraph.

4. ROYALTIES AND ACCOUNTING

     4.1 LICENSEE shall pay royalties and fees at rates and under terms set forth in
Schedule II attached to and made a part of this License Agreement.

     4.2 LICENSEE shall keep such accurate, complete and detailed records and
accounts of all TGP, THGP and TGPS operations conducted at the Plant by LICENSEE as may be
necessary to determine the royalties and fees payable by LICENSEE
hereunder. LICENSEE further

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agrees that TEXACO DEVELOPMENT, through its representatives who are authorized by TEXACO
DEVELOPMENT in writing, may, during business hours and upon providing LICENSEE with reasonable
advance notice, make such examinations of LICENSEE’s TGP, THGP and TGPS operations and such
examinations and copies of such records and accounts as may be necessary to verify the royalties
and fees contemplated hereunder, as well as all other information LICENSEE is required to report
to TEXACO DEVELOPMENT under Section 4 of this License Agreement.

     4.3 LICENSEE shall render to TEXACO DEVELOPMENT annual statements in a form acceptable to
TEXACO DEVELOPMENT, on or before the first day of March of each year, with respect to all TGP,
THGP and TGPS operations conducted by LICENSEE during the preceding twelve (12) calendar months,
but reported as six (6) calendar month accounting periods ending on the last day of December and
the last day of June, respectively, and which statement shall contain the following information:

          4.3.1 The total Daily Average Output from the Gasification section of the Plant for all
operations conducted by LICENSEE during the accounting periods;

          4.3.2 The excess (in daily averages), if any, of the total Daily Average Output from the
Gasification section of the Plant reported under Subparagraph 4.3.1 above, over the total Daily
Average Output for all operations conducted by LICENSEE for which paid-up capacity has been
theretofore purchased by LICENSEE under this License Agreement;

          4.3.3 The total Output from the Gasification section of the Plant for all operations
conducted by LICENSEE during the accounting periods;

          4.3.4 The total Output from the Gasification section of the Plant that is
allocated for THGP operations and TGPS operations, respectively; and

          4.3.5 The total Gasifier Feed to the Gasification section of the Plant for all
operations conducted by LICENSEE during the accounting periods, including a report of the
relative amount of each component of the total feed, i.e., the amount of petroleum coke, coal, and the
by-

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product
feeds contemplated in Paragraph l(b) of Schedule II. Further in connection with Paragraph
l(b) of Schedule II, LICENSEE shall report all payments it receives for processing the
feedstock(s) contemplated thereunder and all costs incurred for modification of the Plant for the
processing of such feedstock(s).

     4.4 The first accounting period shall commence when the Plant has produced synthesis gas for a
continuous forty-eight (48) hour period, and terminate at the end of the next December, and each
succeeding accounting period shall be the succeeding six (6) month period, except in the event of
the termination of this License Agreement prior to the end of such six (6) month accounting period,
in which event the accounting period shall be deemed to be the fractional part of such six (6)
month period which ends on the effective date of such termination except as specified otherwise in
Paragraph 7.3 below.

5. CROSS-LICENSING

     5.1 LICENSEE hereby grants and agrees to grant to TEXACO DEVELOPMENT, without obligation to
account to LICENSEE therefor or for grants made thereunder, an irrevocable, paid-up license and the
irrevocable right and power to grant, either directly or through others, to Texaco Inc. and its
affiliates and to the TGP licensees of TEXACO DEVELOPMENT, nonexclusive licenses under LICENSEE’s
Patent Rights relating to the TGP and for the use of LICENSEE’s Technical Information relating to
the TGP in any and all countries throughout the world together with the right to use and sell any
products produced thereby. LICENSEE agrees to make LICENSEE’s Technical Information relating to the
TGP available to TEXACO DEVELOPMENT for use under the aforesaid licenses.

     5.2 LICENSEE hereby grants and agrees to grant to TEXACO DEVELOPMENT, without obligation to
account to LICENSEE therefor or for grants made thereunder, an irrevocable, paid-up license to use
and the irrevocable right and power to grant, either directly or
through others, to Texaco Inc. and
its affiliates and to the THGP licensees of TEXACO DEVELOPMENT, nonexclusive licenses to use
LICENSEE’s Patent Rights relating to the THGP and for the use of LICENSEE’s Technical Information
relating to the THGP in any and all countries throughout the

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world,
together with the right to use and sell any products produced thereby. LICENSEE agrees to
make LICENSEE’s Technical Information relating to the THGP available to TEXACO DEVELOPMENT
 for use
under the aforesaid licenses.

     5.3 LICENSEE hereby grants and agrees to grant to TEXACO DEVELOPMENT, without obligation to
account to LICENSEE therefor or for grants made thereunder, an irrevocable, paid-up license and
the irrevocable right and power to grant, either directly or through others, to Texaco Inc. and
its affiliates and to the TGPS licensees of TEXACO DEVELOPMENT, nonexclusive licenses under
LICENSEE’s Patent Rights relating to the TGPS and for the use of LICENSEE’s Technical Information
relating to the TGPS in any and all countries throughout the world together with the right to use
and sell any products produced thereby. LICENSEE agrees to make LICENSEE’s Technical Information
relating to the TGPS available to TEXACO DEVELOPMENT for use under the aforesaid licenses.

     5.4 TEXACO DEVELOPMENT and LICENSEE understand and agree that Paragraphs 5.1, 5.2 and 5.3
each include separate and distinct grants of LICENSEE’s Patent Rights and LICENSEE’s Technical
Information and TEXACO DEVELOPMENT and LICENSEE further agree that, for all purposes, these grants
should be treated as separate grants as if they were made herein in separate paragraphs or
subparagraphs.

     5.5 TEXACO DEVELOPMENT and LICENSEE understand and agree that for purposes of this Section 5,
the rights of extension granted to TEXACO DEVELOPMENT in Paragraphs 5.1, 5.2 and 5.3 permit TEXACO
DEVELOPMENT to grant LICENSEE’s Patent Rights and Technical Information to TEXACO DEVELOPMENT’s
licensees of the TGP and all further applications or variants thereof, including without
limitation TGPS and THGP.

6. CONFIDENTIAL INFORMATION

     6.1 Unless previously authorized by TEXACO DEVELOPMENT in writing, LICENSEE shall use TEXACO
DEVELOPMENT’s Technical Information only in connection with licensed operations in the Plant and
shall not make any disclosure of, and shall use its best efforts to

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prevent the duplication or disclosure of such information which is not public information or
otherwise generally available to the public, and shall not export or re-export such information or
data or the product thereof. LICENSEE shall be permitted to disclose such information if and only
if it is legally compelled to make such disclosure; provided, however, that prior to making any
disclosure LICENSEE shall first notify TEXACO DEVELOPMENT in writing of the need to make the
disclosure and the parties hereto shall cooperate in connection with obtaining a protective order
or other mechanism which will preserve the proprietary value of such information. The parties do
not intend this Section 6 to include confidential business information. The terms and conditions
under which the parties hereto will exchange business information that is confidential is covered
in a separate business information confidentiality agreement dated May 27, 1997.

     6.2 With respect to the obligations incurred under this Section 6, information disclosed
through an unauthorized disclosure by a third party under a confidentiality obligation with TEXACO
DEVELOPMENT with respect to such information shall not in itself be deemed to be public
information or otherwise generally available to the public.

     6.3 The prohibition on disclosure set forth in Paragraph 6.1 above prohibits LICENSEE from
disclosing TEXACO DEVELOPMENT’s Technical Information to any third party, including without
limitation LICENSEE’s contractors and LICENSEE’s affiliates. Such third parties, including
contractors and affiliates, shall only be permitted to have access to TEXACO DEVELOPMENT’s
Technical Information directly from TEXACO DEVELOPMENT and after having entered into a written
secrecy agreement with TEXACO DEVELOPMENT.

     6.4 If LICENSEE enters into a contract with any third party to perform work related to the
design, construction, operation and maintenance of the Plant who shall receive or have access to
TEXACO DEVELOPMENT’s Technical Information, any such third party may not perform any of the
aforementioned work until LICENSEE first receives TEXACO
DEVELOPMENT’s written approval, which
approval shall not be unreasonably withheld. Furthermore, where such third party will receive
LICENSEE’s Technical Information or provide back to LICENSEE technical data and operating
information which may become LICENSEE’s Technical Information, LICENSEE shall use commercially
reasonable efforts to obtain a written agreement from such third party allowing

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LICENSEE to disclose such information to others without obligation to account to such third party
therefor. The obligation set forth in this Paragraph 6.4 does not apply to any information that
must be kept confidential pursuant to the terms of a prior written confidentiality obligation that
is in effect before entering into such a contract with LICENSEE, provided TEXACO DEVELOPMENT is
notified by LICENSEE of such preexisting confidentiality obligation.

7. TERM AND TERMINATION

     7.1 Unless previously terminated in accordance with Paragraph 7.2 or canceled
and, hence, terminated under Paragraph l (c) of Schedule II, this License Agreement shall
terminate and expire upon the cessation of the commercial operation of the Plant. The parties hereto
do not intend to allow this License Agreement to terminate due to a suspension (of finite duration)
of commercial operations. In this regard, if the LICENSEE decides to suspend commercial
operation of the Plant, LICENSEE shall so notify TEXACO DEVELOPMENT in writing. The parties hereto will
then engage in good faith discussions to reach agreement on what constitutes a reasonable
period for suspension of commercial operations to avoid termination of this License Agreement, In no
event shall the period of suspension exceed three (3) years.

     7.2 If, however, LICENSEE shall fail to make any of the payments set forth in this
License Agreement, or any part thereof when due, or shall fail to achieve Plant Startup by
December 31, 2002, or shall fail to perform any other of its promises or obligations under this License
Agreement, TEXACO DEVELOPMENT may terminate this License Agreement and revoke all licenses, rights,
privileges, and authorizations of this License Agreement by giving forty-five (45) days
written notice to LICENSEE to that effect, at the end of which time this License Agreement shall terminate
unless during that time LICENSEE shall have fully remedied such
default to TEXACO DEVELOPMENT’s
satisfaction. In the event that LICENSEE contends that an event of default cannot possibly be
cured in the forty-five (45) days, LICENSEE shall so advise TEXACO DEVELOPMENT in writing stating the
reasons that support its position. If TEXACO DEVELOPMENT, in its sole discretion, indicates
in writing that it agrees with LICENSEE’s position, TEXACO DEVELOPMENT agrees that this
License Agreement shall not terminate until one additional forty-five (45) day period has
elapsed, provided that LICENSEE commences the cure of such default within the initial forty-five (45)
day

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period and
continues to work diligently, in TEXACO DEVELOPMENT’s sole opinion, to cure such
default. Furthermore, TEXACO DEVELOPMENT agrees that in the event (i) LICENSEE violates any of the
confidentiality provisions of Paragraph 6.1, or (ii) LICENSEE violates any of the other provisions
of this License Agreement, TEXACO DEVELOPMENT may not initiate the termination proceedings
contemplated in this Paragraph 7.2 except as may be permitted by the provisions of Paragraph
13.3.1. Notwithstanding anything contained herein, in the event LICENSEE breaches this License
Agreement under Section 6 (Confidential Information) as a result of LICENSEE’s gross negligence or
willful misconduct as determined through arbitration, TEXACO DEVELOPMENT may terminate this License
Agreement and revoke all licenses, rights, privileges and authorizations of this License Agreement.
Furthermore, in the event TEXACO DEVELOPMENT has actually received the payments set forth in
Paragraphs 1(a)(i), (ii) and (iii) of Schedule II, as well as any other amounts that have become
due and payable by LICENSEE hereunder, prior to December 31, 2002, TEXACO DEVELOPMENT agrees that
it will not terminate this License Agreement for failure to achieve Plant Startup prior to December
31, 2002.

     7.3 After the effective date of any termination or expiration of this License Agreement,
neither LICENSEE nor TEXACO DEVELOPMENT shall have any further rights under this License Agreement
except that: (i) such termination or expiration shall not relieve LICENSEE of any obligation
(e.g., visitation) or liability accrued hereunder prior to the effective date of such termination
or expiration; (ii) such termination or expiration shall not affect in any way the then existing
licenses, rights and powers granted or agreed to be granted by, or obligations of LICENSEE under
Section 5 (Cross Licensing); (iii) such termination or expiration shall not relieve LICENSEE of
its obligations under Section 6 (Confidential Information); (iv) such termination or expiration
shall not relieve LICENSEE of its obligations incurred under
Paragraph 1(b) of Schedule II; and
(v) other than for termination due to the default of LICENSEE pursuant to Paragraph 7.2 above,
LICENSEE shall have the right to continue operations licensed hereunder only up to the paid-up
capacity acquired prior to termination and LICENSEE shall continue to render annual statements as
required by the accounting provisions of Section 4 (Royalties and Accounting).

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8. LIABILITY — WARRANTIES

     8.1 LICENSEE and TEXACO DEVELOPMENT understand and agree that, as
between LICENSEE and TEXACO DEVELOPMENT, the construction, operation and maintenance
of the Plant is the sole responsibility of LICENSEE. Accordingly, TEXACO DEVELOPMENT shall
have no liability to LICENSEE or to third parties for any injuries to person or property
arising in connection with the construction, operation or maintenance of the Plant and LICENSEE shall
indemnify TEXACO DEVELOPMENT for any liability, claims, costs and
expenses associated therewith.
Except as may be specified in the guarantee agreement described in Paragraph
14.1, TEXACO DEVELOPMENT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OTHER
THAN AS PROVIDED IN PARAGRAPHS 8.2, 8.3 (PATENT INDEMNITY) AND 8.4 BELOW,
AND SPECIFICALLY EXCLUDES ANY WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE OR USE WITH RESPECT TO ANY INFORMATION OR DATA FURNISHED HEREUNDER OR THE PERFORMANCE OF THE PLANT OR
ANY COMPONENT THEREOF. In no event shall TEXACO DEVELOPMENT be liable for loss of
prospective profits or special or consequential losses, damages, and/or related expenses,
whether or not TEXACO DEVELOPMENT has been advised of the possibility of such damages.

     8.2 TEXACO DEVELOPMENT and LICENSEE each represents and warrants
that it has the right, power and authority to grant the licenses and rights of extension and
make the agreements set forth in this License Agreement.

     8.3 TEXACO DEVELOPMENT will, at its sole cost and expense, upon LICENSEE’S written demand,
defend any suit or action brought against LICENSEE by a third party, alleging infringement of
process claims, as further qualified hereinbelow, of an unexpired United States patent, which is
in full force and effect as of the Effective Date of this License Agreement and which results from
the use of TEXACO DEVELOPMENT’S Technical Information in accordance with this License Agreement in
the operation of the Plant with respect to TGP or THGP only, and to the extent such operation is
based on process designs for TGP or THGP specifically approved by
TEXACO DEVELOPMENT in writing; provided, however, such indemnity shall not apply if such infringement is the result of
combination of TEXACO

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DEVELOPMENT Technical Information with technical information supplied by a party other than TEXACO
DEVELOPMENT. LICENSEE will use its best efforts to obtain a right of defense and indemnity against
any claim for patent infringement, from each and every supplier of materials (such as, but not
limited to, catalysts, solvents, etc.) which are to be used in the equipment used in the processes
licensed hereunder. The indemnification by TEXACO DEVELOPMENT hereunder shall not apply to the
extent LICENSEE is indemnified by any supplier under an indemnification obtained by LICENSEE
pursuant to LICENSEE’s efforts under the immediately preceding
sentence. This paragraph does not
apply to equipment supplied by third parties as discussed in Paragraph 8.3.3 of this License
Agreement.

          8.3.1 TEXACO DEVELOPMENT will, upon LICENSEE’s written demand, indemnify LICENSEE and hold
LICENSEE harmless from and against all expenses of defending such suits and actions and from all
payments which by final judgments therein may be assessed against and are actually paid by
LICENSEE on account of such suit or action; provided, however, that if LICENSEE elects to
participate in the defense of any of such suits or actions, all costs
associated with LICENSEE’s
participation shall be borne by LICENSEE. TEXACO DEVELOPMENT shall not be liable to LICENSEE for
any indirect, consequential or other damages, costs or expenses under this Section 8.3.

          8.3.2 The obligations of TEXACO DEVELOPMENT under this Section 8.3 are subject to the
requirement that LICENSEE shall give TEXACO DEVELOPMENT prompt written notice for any such suit or
threat of suit. Neither party shall settle nor compromise any such suit without the other party’s
prior written consent if by such settlement, the other party is obligated to make any substantial
modification to THGP, to make any monetary payment, to part with any property or any interest
therein, to assume any obligation, to be subject to any injunction, or to grant any license or
other right under the settling party’s patent rights, with the understanding that any such consent
may not be unreasonably withheld.

          8.3.3 TEXACO DEVELOPMENT shall not have any obligation hereunder for any alleged or actual
infringement that is not expressly described in this Section 8.3. If the alleged or actual
infringement meets the express requirements of this Section 8.3, TEXACO

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DEVELOPMENT shall not have any obligation hereunder if such infringement is caused by the use of
any design, equipment (to the extent the alleged infringing process is practiced within the
equipment) or processes supplied by a party other than TEXACO DEVELOPMENT, or which TEXACO
DEVELOPMENT did not approve for use in writing prior to any alleged infringing use.

          8.3.4 TEXACO DEVELOPMENT’s obligation under the above provisions in this Section 8.3 shall be
further subject to Section 8.6 hereof and shall not exceed in
total, an amount equal to [***] of the royalties and fees due and actually received by TEXACO DEVELOPMENT
with respect to the Plant pursuant to this License Agreement or [***], whichever is less.

     8.4 TEXACO DEVELOPMENT represents, warrants and agrees as follows:

          8.4.1 TEXACO DEVELOPMENT is a corporation duly organized and validly existing under the laws
of the State of Delaware, TEXACO DEVELOPMENT has the complete and unrestricted power and right to
enter into this License Agreement and there is no fact of which TEXACO DEVELOPMENT has actual
knowledge as of the Effective Date that would prevent it from performing its obligations hereunder;
this License Agreement has been duly authorized, executed and delivered by TEXACO DEVELOPMENT and
constitutes a legal, valid and binding obligation of TEXACO DEVELOPMENT enforceable against TEXACO
DEVELOPMENT in accordance with its terms, neither the execution and delivery by TEXACO DEVELOPMENT
of this Agreement nor the consummation of the transaction contemplated by this Agreement, as far as
TEXACO DEVELOPMENT is actually aware of as of the Effective Date, violates any law or any court or
governmental agency order binding on TEXACO DEVELOPMENT or requires the consent or approval of, or
the giving of notice by any person to or the taking of any other action in respect of any
governmental agency or authority or any person not a party to this
License Agreement.

          8.4.2 There is no fact of which TEXACO DEVELOPMENT has actual knowledge as of the Effective
Date that would prevent it from stating that, except to the extent
owned by TEXACO DEVELOPMENT’s
licensees and/or third party contractors, TEXACO

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DEVELOPMENT owns the entire right, title and interest in and to TEXACO DEVELOPMENT’s Technical
Information. TEXACO DEVELOPMENT or Texaco Inc. owns and has the right to license each of the
patents listed in Schedule III and each of such patents is in full force and effect.

          8.4.3 TEXACO DEVELOPMENT has no knowledge as of the Effective
Date of any constraints, restrictions, or other impediments of any nature or kind which would
prevent the ability of LICENSEE to practice the TGP or THGP.

          8.4.4 TEXACO DEVELOPMENT’s Technical Information, that was or will
be supplied under a separate Process Information Package Letter Agreement dated March 6, 1997,
was prepared and delivered in accordance with accepted engineering practices or TEXACO
DEVELOPMENT’s engineering practices, whichever standard is
higher.

          8.4.5 Certain Patent Rights licensed to LICENSEE under Paragraph 2.1 of
this License Agreement are owned by Texaco Inc. TEXACO DEVELOPMENT has the full right and
authority to grant LICENSEE the license set forth in
Paragraph 2.1 under such Patent Rights.
Analogously, TEXACO DEVELOPMENT has the full right and authority to grant LICENSEE the
license set forth in Paragraph 2.2 under all of TEXACO DEVELOPMENT’s Technical Information
that is in fact owned by TEXACO DEVELOPMENT or Texaco Inc., as well as TEXACO
DEVELOPMENT’s licensees and/or third party contractors.

          8.4.6 TEXACO DEVELOPMENT has used its reasonable efforts to assure
that it has delivered or shall deliver to LICENSEE all of TEXACO DEVELOPMENT’s Technical
Information that is necessary to operate the Plant.

     8.5 LICENSEE represents and warrants that LICENSEE is a corporation duly organized and
validly existing under the laws of the State of Kansas; LICENSEE has the complete and unrestricted
power and right to enter into this License Agreement and to perform its obligations hereunder;
this License Agreement has been duly authorized, executed and delivered by LICENSEE

-15-

 

and constitutes a legal, valid and binding obligation of LICENSEE enforceable against LICENSEE in
accordance with its terms, neither the execution and delivery by LICENSEE of this License
Agreement nor the consummation of the transactions contemplated by this License Agreement by
LICENSEE violates any law or any court or governmental agency order binding on LICENSEE or
requires the consent or approval of, or the giving of notice by any person to or the taking of any
other action in respect of any governmental agency or authority or any person not a party to this
License Agreement.

     8.6 Subject to Paragraph 8.3.3, the total cumulative liability of TEXACO DEVELOPMENT under
this License Agreement and its liability under any separate performance guarantee agreement shall
not exceed [***] of the total royalties and fees due and actually received by
TEXACO DEVELOPMENT with respect to the Plant under this License Agreement and which are directly
attributable to this License Agreement or [***], whichever is less.
Accordingly, any fees received under the provisions of a separate agreement do not pertain to this
Paragraph 8.6. This paragraph 8.6 is intended to address TEXACO
DEVELOPMENT’s limit of liability
and shall not be construed as a liquidated damages provision.

9. PARTIES BOUND

     9.1 This License Agreement shall benefit and be binding upon the parties hereto
and their respective successors and assigns; provided, however, that LICENSEE shall not assign
any of the rights and privileges granted or be relieved of its obligations hereunder without the
prior written consent of TEXACO DEVELOPMENT, which consent shall not be unreasonably withheld.

     9.2 In no event shall TEXACO DEVELOPMENT be expected to give its consent
to assignment of this License Agreement to an entity that (a) TEXACO DEVELOPMENT or Texaco
Inc. is precluded from doing business with under Texaco Inc.’s written corporate policy in
effect at the time LICENSEE requests TEXACO DEVELOPMENT’s consent for assignment, it being understood
that the mere fact that the prospective assignee is in the fertilizer business shall not
constitute a sufficient basis for TEXACO DEVELOPMENT to withhold its
consent under this clause 9.2(a); (b)
TEXACO DEVELOPMENT or Texaco Inc. is precluded from doing business with, by reason or law

-16-

 

or
governmental regulations; or (c) is in competition with TEXACO DEVELOPMENT or Texaco Inc.
relative to gasification, hydrogen production and/or power generation.

     9.3 Subject to Paragraph 9.4 hereof, TEXACO DEVELOPMENT will consent to an assignment of this
License Agreement to an Affiliate of LICENSEE; provided, however, that LICENSEE remains liable
hereunder to the extent the assignee fails to perform any obligations
hereunder.

     9.4 No assignment of this License Agreement shall be effective unless and until the
designated assignee accepts all of the terms and obligations of this License Agreement and
satisfies all conditions set forth in Paragraph 9.2 hereof.

10. EXPORT CONTROL REGULATIONS

     10.1 The obligation of TEXACO DEVELOPMENT to provide Technical
Information as well as the subsequent use, sale or any disposition of the products directly
produced by the TGP, THGP and/or TGPS, are subject to U.S. export control laws and regulations and
LICENSEE shall comply therewith in regard to any information or data
furnished by TEXACO
DEVELOPMENT and with regard to such use, sale or disposition.

11. ADDRESSES OF PARTIES

     11.1 The addresses and telefax numbers of the parties hereto for all purposes specified in
this License Agreement including notices and payments shall be as follows:

TEXACO DEVELOPMENT:

TEXACO DEVELOPMENT CORPORATION

2000 Westchester Avenue

White Plains, New York 10650

USA

	 	 	 	 	 
	 

	 	Attention:
Telefax:
	 	Vice President

914-253-7744

-17-

 

LICENSEE:

FARMLAND
INDUSTRIES, INC.

Department 62

3315 North Oak Trafficway

Kansas City, Missouri 64116

	 	 	 	 	 
	 

	 	Attention:

Telefax:
	 	General Counsel

816-459-5902

Either party hereto shall have the right to change its address or telefax number by prior
notice in writing directed to the other party.

12. PUBLICITY

     12.1 TEXACO DEVELOPMENT and LICENSEE shall each be permitted to issue
press releases or otherwise publicize the fact that the parties have entered into this License
Agreement and may describe the general nature of this License Agreement in any publication, written or
otherwise, provided, however, that TEXACO DEVELOPMENT and LICENSEE shall first mutually agree on
the content of the subject matter contained in any such publication. TEXACO DEVELOPMENT and
LICENSEE shall also mutually agree upon the content of releases of information available for
public review or inspection, including, without limitation, information related to safety related
regulatory reviews and environmental permit applications. Notwithstanding the foregoing provisions of
this Paragraph 12.1, any party hereto may disclose information contemplated under this Paragraph
12.1 where such disclosure is required by law or regulation, provided that the disclosing party
first gives the other party an opportunity to comment on such disclosures. In no event shall anything
contained in this Section 12 be construed to permit disclosure
of TEXACO DEVELOPMENT’s confidential
information.

     12.2 Subject to the provisions of Paragraph 12.1 above, if this License Agreement
terminates or is canceled by LICENSEE, or if LICENSEE decides not to build the Plant and place
it into commercial operation or to delay the construction or commercialization of the Plant, any
public

-18-

 

statement to that effect, whether written or otherwise, shall be mutually agreed to by TEXACO
DEVELOPMENT and LICENSEE.

     12.3 Each party hereto shall have the right to delay any such publication anticipated in
Paragraphs 12.1 and 12.2 above for a reasonable period if it would have an adverse impact on its
own commercial activities or relationships.

13. DISPUTE RESOLUTION AND ARBITRATION

     13.1 TEXACO DEVELOPMENT and LICENSEE will attempt in good faith to resolve any controversy or
claim arising out of or relating to this License Agreement promptly by negotiations between senior
executives or officers of the parties hereto who have authority to settle the controversy,
including, but not limited to, any controversy or claim arising out of or relating to Section 7 of
this License Agreement.

     13.2 The disputing party hereto shall give the other party written notice of the dispute.
Within twenty (20) days after receipt of said notice, the receiving party shall submit to the
other party a written response. The notice and response shall include (i) a statement of each
party’s position and a summary of the evidence and arguments supporting its position; and (ii) the
name and title of the representative who will represent that party. The representatives shall meet
at a mutually acceptable time and place within thirty (30) days of the date of the disputing
party’s notice and thereafter as often as such representatives reasonably deem necessary to
exchange relevant information and to attempt to resolve the dispute.

     13.3 If the matter has not been resolved pursuant to Paragraphs 13.1 and 13.2 within sixty
(60) days of the disputing party’s notice, or as the parties may otherwise agree in writing, or if
any party hereto will not participate in such procedure, the controversy shall be settled by
arbitration in accordance with American Arbitration Association rules and policies pursuant to
which three arbitrators (the “Arbitrators”) shall be appointed, one by each party hereto and the
third by the first two appointed Arbitrators. Judgment upon the award rendered by the Arbitrators
may be entered by any court having jurisdiction thereof, or in a U.S. District Court, or in the
courts of the State of

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New York or the State of Missouri. The place of arbitration shall be the United States of America.
The arbitration shall be conducted in the English language. Each party shall bear its own costs
and expenses associated with any arbitration.

     13.3.1 In the event the controversy is related to a violation by LICENSEE of any of the
confidentiality provisions of Paragraph 6.1, or any of the other provisions of this License
Agreement, and TEXACO DEVELOPMENT is seeking termination of this License Agreement as part or all
of the remedy for any such violation, the Arbitrators first shall determine whether LICENSEE has
violated the applicable provision of this License Agreement, and, if so, the Arbitrators shall
determine if the remedy sought by TEXACO DEVELOPMENT is the appropriate remedy by considering,
among other things, the following:

	a)	 	the nature and gravity of such violation;
	 
	b)	 	the nature, gravity and similarity of any previous violations by LICENSEE;
	 
	c)	 	the steps and/or procedures LICENSEE has implemented or plans
to implement to prevent any future violations of the applicable provision;
	 
	d)	 	the impact of the remedy on each party; and

	 
	e)	 	the harm to TEXACO DEVELOPMENT caused by the violation.

Among other possible remedies, the Arbitrators shall have the authority to award TEXACO DEVELOPMENT
double its actual damages in appropriate circumstances. In the event that the Arbitrators grant
TEXACO DEVELOPMENT the right to terminate this License Agreement as a fair and appropriate remedy,
then the Arbitrators shall grant to TEXACO DEVELOPMENT such right pursuant to a written opinion
setting forth their reasons in support of such remedy. In that event, TEXACO DEVELOPMENT shall have
the right, but not the obligation, to terminate this License Agreement and revoke all licenses,
rights, privileges and authorizations of this License Agreement. The foregoing provisions of this
Paragraph shall in no way be deemed to limit, restrict or otherwise modify any rights of TEXACO
DEVELOPMENT under Paragraph 13.5.

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     13.4 Neither TEXACO DEVELOPMENT, LICENSEE, any witness nor the
Arbitrators may disclose the contents of any arbitration hereunder without the written consent
of both the parties, unless and then only to the extent required to enforce the award, or as may be
required by law, or as are normal and necessary for financial and tax
reports and audits.

     13.5 If TEXACO DEVELOPMENT believes that LICENSEE is using TEXACO
DEVELOPMENT’s Technical Information or any other data, trade secrets, technical information,
know-how, or other proprietary information accessed hereunder by LICENSEE, unlawfully or is
treating the same in a manner which could compromise its proprietary value, or if TEXACO
DEVELOPMENT believes LICENSEE is not complying with Section 9 (Parties Bound) or Section 10
(Export Control Regulations), then TEXACO DEVELOPMENT shall be permitted to immediately
submit the matter to arbitration under Paragraph 13.3. In such case, the parties hereto
agree that the Arbitrators shall have full authority to immediately enjoin any further activity of LICENSEE
upon a finding by the Arbitrators that LICENSEE is engaging in activity referred to in the
immediately preceding sentence, and LICENSEE agrees that it will be fully bound by any injunction or
restraining order issued by the Arbitrators respecting such activities. Such injunction or restraining
orders shall become effective immediately and shall not have to be entered by any court to become effective
and shall not preclude any award of monetary damages. Alternatively, if TEXACO DEVELOPMENT
decides that a proper injunction could not be issued expeditiously enough through arbitration,
the parties hereto agree that TEXACO DEVELOPMENT may go directly to the courts specified in
Paragraph 13.3 to seek injunctive relief.

     13.6 The parties hereto agree and agree to use their best efforts to cause their
respective Affiliates to seek to adopt Paragraph 13 of this Agreement in various additional
agreements that are entered into with third parties and that relate to the subject matter of
this Agreement.

     13.7 This Section 13 shall survive the termination or expiration of this License Agreement and
remain in force so long as there remain outstanding rights or obligations of either party subject
to arbitration.

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14. ADDITIONAL AGREEMENTS

     14.1 In addition to this License Agreement, TEXACO DEVELOPMENT and
LICENSEE have entered into a separate Process Information Package Letter Agreement dated March
6, 1997 for engineering services relating to the design basis and process design specification
of the Plant. TEXACO DEVELOPMENT and LICENSEE shall enter into a mutually acceptable separate
Guarantee Agreement which will cover certain performance guarantees of the process licensed
hereunder. TEXACO DEVELOPMENT, or an Affiliate, and LICENSEE shall enter into the O & M
Agreement with respect to the Plant.

     14.2 In the event LICENSEE considers modification of the Plant for the practice of
the TGPS or if LICENSEE considers processing a feedstock other than, or in addition to, coal
and/or
petroleum coke or if LICENSEE considers making a Fundamental Modification to the Plant, then
LICENSEE shall notify TEXACO DEVELOPMENT in writing and TEXACO DEVELOPMENT
shall prepare, or arrange to prepare, the process information package relating to the design
basis and
process design specification for any of the aforementioned modifications or any preliminary
studies
relating thereto. The process information package contemplated under
this Paragraph 14.2 or
any
preliminary studies shall be prepared under a separate agreement pursuant to a mutually
acceptable
scope of work and TEXACO DEVELOPMENT shall be compensated as follows:

     (i) for any preliminary studies and/or for the TGP portion of the process engineering
package, TEXACO DEVELOPMENT shall perform such services at the most favorable rate it has
performed similar services within the two (2) calendar years prior to the effective date of the
preliminary study or process engineering package letter agreement in question, whichever
appropriate; and

     (ii) for the THGP and/or TGPS portion of the process engineering package, TEXACO DEVELOPMENT
shall perform such services for a fee that is mutually acceptable to LICENSEE and TEXACO
DEVELOPMENT, which fee shall be determined through good faith negotiations between LICENSEE and
TEXACO DEVELOPMENT. In the event the parties cannot reach mutual agreement, LICENSEE shall be free
to have such services performed by a third party(ies)

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provided such third party(ies) are acceptable to TEXACO DEVELOPMENT in writing. TEXACO
DEVELOPMENT’s acceptance shall not be unreasonably withheld.

[***]

16. SEVERABILITY

     16.1 If any part, term, or provision of this License Agreement shall be found illegal
or in conflict with any valid controlling law, the validity of the remaining provisions shall not
be affected thereby.

17. LAW GOVERNING

     17.1 THIS LICENSE AGREEMENT SHALL BE CONSTRUED AND THE LEGAL RELATIONS BETWEEN THE PARTIES
HERETO SHALL BE DETERMINED IN ACCORDANCE WITH THE SUBSTANTIVE AND PROCEDURAL LAWS OF THE STATE
OF NEW YORK, WITHOUT RECOURSE TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

-23-

 

     IN WITNESS WHEREOF, the parties hereto have respectively caused this instrument to be
duly executed on the dates hereinafter indicated.

	 	 	 	 	 	 	 
	 	 	TEXACO DEVELOPMENT CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John M. Brady	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 

	 	Date:
	 	August 26, 1977	 	 
	 
	 	 	 	 	 	 
	 	 	FARMLAND INDUSTRIES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert W. Honse	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President and	 	 
	 

	 	 	 	Chief Operating Officer	 	 
	 

	 	Date:
	 	August 5, 1997	 	 

-24-

 

SCHEDULE I 
 DEFINITIONS

     The following terms shall be deemed to have the following meanings as used in this License
Agreement of which this Schedule I is a part. The definitions set forth in this Schedule I shall
not be construed to define or limit the scope of any patent claim.

     (a) “Affiliates” of a company designated herein shall mean all corporations (i) of
which such designated company now or hereafter owns or controls, directly or indirectly, not
less than
fifty percent (50%) of the stock having the right to vote for directors thereof, or (ii) by
which such
designated company is owned or controlled, directly or indirectly by a parent corporation
owning or
controlling not less than fifty percent (50%) of the stock having the right to vote for
directors thereof,
or (iii) which are sister corporations owned or controlled directly or indirectly, by such
parent
corporation of such designated company, where such parent corporation owns or controls not
less than
fifty percent (50%) of the stock having the right to vote for directors thereof. For the
purpose of this
definition, the stock owned or controlled by a company shall be deemed to include all stock
owned or
controlled, directly or indirectly, by any other company of which it owns or controls not less than
fifty
percent (50%) of the stock having the right to vote for directors thereof. The foregoing shall
include without limitation any organization not in corporate form such as a partnership if the
designated company, directly or indirectly, has acquired a proprietary or equity interest, whether
as a partner or otherwise, in such organization for not less than fifty percent (50%).

     (b) “Daily Average Output” shall mean the aggregate Output during any
accounting period divided by the total number of days in such
accounting period.

     (c) “Exchange Period” shall mean the period of time beginning with the first
disclosure of TEXACO DEVELOPMENT’s Technical Information to LICENSEE pursuant to this
License Agreement and ending with the expiration or termination of this License Agreement.

-25-

 

     (d) “Financial Closure” shall mean the time at which funds necessary to proceed
with the construction of the Plant are advanced or are available to be advanced without any
condition
other than the request of the LICENSEE.

     (e) “Fundamental Modification” of the Plant shall have the meaning set forth in
Paragraph l(d) of Schedule II.

     (f) “Gasification” shall have the meaning defined in definitions of this Schedule I
for the Texaco Gasification Process.

     (g) “Gasifier Feed” shall mean the number of: short tons (each of 2,000 pounds)
of moisture-free carbonaceous solids; barrels (equivalent) (each of 64 million BTU or higher
heating
value) of gaseous carbonaceous substances, and barrels (each of 42 gallons of 231 cubic inches
measured at 60°F) of liquid carbonaceous substances, as appropriate, including byproduct
streams,
charged to the Gasification operations, measured and determined in accordance with methods,
procedures and correction factors mutually acceptable to TEXACO DEVELOPMENT and
LICENSEE.

     (h) “LICENSEE’s Technical Information” shall mean such, but only such, engineering, operating
and technical data and operating information, specifications, documents and know-how pertaining to
the design, construction, operation and maintenance of equipment for and the operation of the TGP,
THGP, and/or TGPS for the production of Synthesis Gas and its use in the production of high purity
hydrogen and/or electric power (and ancillary products), and which is in the possession of
LICENSEE prior to the end of the Exchange Period, and which LICENSEE is free to disclose to others
without obligation to account to a third party therefor.

     (i) “MSCF” shall mean One Thousand (1,000) Standard Cubic Feet at 60°F and at atmospheric
pressure (29.92 inches of mercury absolute), measured and determined in accordance with methods,
procedures and correction factors mutually acceptable to TEXACO DEVELOPMENT and LICENSEE.

-26-

 

     (j) “Operations and Maintenance Agreement” or “O & M Agreement” shall mean the agreement that
shall be entered into between LICENSEE and an affiliate of TEXACO DEVELOPMENT setting forth the
terms and conditions under which said affiliate will provide technical services and operate and
maintain the Plant on LICENSEE’s behalf.

     (k) [***]

     (I) “Output” shall mean the number of MSCF of hydrogen plus carbon monoxide produced as the
product of any Gasification operations conducted by LICENSEE.

     (m) “Patent Rights” shall mean all such, but only such, claims of Letters Patent of the
United States and all countries foreign thereto, and transferable rights thereunder, as cover
processes for, or apparatus designed for the practice of TGP, THGP,
and/or TGPS and are based upon
inventions made prior to the end of the Exchange Period and of which the designated party hereto
has ownership or the power to grant licenses thereunder to others without obligation to account to
a third party therefor.

     (n) “Plant” shall mean the THGP Plant described in Paragraph 3.1 of this License Agreement
which, at LICENSEE’s option, may be modified for practice of TGPS in accordance with the terms of
this License Agreement.

     (o) “Power Systems”, hereinafter “PS”, shall mean the system and parts thereof, including
process(es) and equipment for the generation of electric power, such as gas turbine(s), steam
turbine(s) and heat recovery steam generator(s) along with any supporting and peripheral
equipment.

-27-

 

     (p) “Purification” shall mean the separation of the effluent gas from any process step
following Gasification into high purity hydrogen for recovery and a reject gas mixture which may
or may not be returned to the partial oxidation and/or shift conversion reaction zone(s).

     (q) “Shift Conversion” shall mean the reaction of Synthesis Gas with steam in a reaction zone
to convert carbon monoxide into a raw gas mixture including carbon dioxide and hydrogen.

     (r) “Startup” of the Plant shall occur at the time the Plant has first produced Synthesis Gas
for a continuous forty-eight (48) hour period and the first to occur of (i) the Plant having
satisfied either of the Guaranteed Performance Standards under the Guarantee Agreement between the
parties, of even date herewith, in a Guarantee Test run using the No. 1 Gasification Unit, as such
terms are defined and used in said Guarantee Agreement, or (ii) one hundred eighty (180) days has
elapsed from such forty-eight (48) hour period, or if LICENSEE is then pursuing the passage of the
Guarantee Test for the No. 1 Gasification Unit, such later date upon which LICENSEE is no longer
continuing such pursuit. In the event Synthesis Gas is produced for at least a continuous
twenty-four (24) hour period, LICENSEE shall not be permitted to cease operating the Plant without
a reasonable basis until Startup has occurred.

     (s) “Synthesis Gas” shall mean carbon monoxide and hydrogen produced by Gasification.

     (t) “TEXACO
DEVELOPMENT’s Technical Information” shall mean such, but only such, engineering,
operating and technical data and operating information, specifications, documents and know-how
which, in TEXACO DEVELOPMENT’s sole opinion, is necessary for the design, construction, operation
and maintenance of a facility for the practice of the TGP, THGP, and/or TGPS for the production of
Synthesis Gas and its use in the production of high purity hydrogen and/or electric power (and
ancillary products) (whichever appropriate) and which is in the possession or control of TEXACO
DEVELOPMENT (including that obtained from its licensees) prior to the end of the Exchange Period,
and which TEXACO DEVELOPMENT is free to disclose to others without obligation to account to a third
party therefor.

-28-

 

     (u) “Texaco Gasification Power Systems” or “TGPS” shall mean the process licensed by
TEXACO DEVELOPMENT where the TGP is used with PS including any means or methods for integrating and
optimizing TGP and PS with any related removal and recovery of byproducts (such as sulfur) and air
separation systems, and any modifications or improvements to any or
all of the foregoing.

     (v) “Texaco Gasification Process” or “Gasification” or “TGP” shall mean the process licensed
by TEXACO DEVELOPMENT and improvements therein producing carbon monoxide and hydrogen by partial
oxidation of carbonaceous substances, including without limitation refining or chemical plant
byproducts streams, using oxygen or an oxygen-containing gas and including, but without limiting
the foregoing, any means or methods of (i) preparing such substances to the extent useful in such
partial oxidation, (ii) introducing and reacting materials in a partial oxidation reaction zone;
(iii) cooling the effluent of said reaction zone and recovering and conserving reaction heat; (iv)
removing from said effluent materials which may or may not be returned to said reaction zone; and
(v) treating by-product or waste discharges.

     (w) “Texaco Hydrogen Generation Process” or “THGP” shall mean the process licensed by TEXACO
DEVELOPMENT for producing high purity hydrogen which combines the TGP with one or more of the
following process steps: Shift Conversion, Purification as each is hereinafter defined, membrane
separation, methanation, and/or acid gas removal including any means or methods for integrating
said combination, and any modifications or improvements to any of the foregoing.

-29-

 

SCHEDULE II 
 ROYALTIES AND TERMS OF PAYMENT

     LICENSEE shall pay royalties and fees to TEXACO DEVELOPMENT or its nominee, in U.S. Dollars
in immediately available funds in New York, as set forth below:

     1. (a) Subject
to Paragraph 1(b) of this Schedule II, LICENSEE shall acquire paid-up
capacity for the Plant based upon the designed capacity of the Plant
set forth in Paragraph 3.1 of this License Agreement by making
the following payments, the cumulative total of which shall be [***]:

         (i) Within
forty-five (45) days of signing this License Agreement, LICENSEE
will pay to TEXACO DEVELOPMENT [***] of the total lump-sum royalty
for the designed Daily Average Output capacity of the Plant
calculated as per the royalty schedule in Paragraph 2 of this
Schedule II; and

        (ii) Within
forty-five (45) days of Financial Closure or by June 30, 1998,
whichever first occurs, LICENSEE will pay to TEXACO DEVELOPMENT [***]
of the total lump-sum royalty for the designed Daily Average Output
capacity of the Plant calculated as per the royalty schedule in
Paragraph 2 of this Schedule II; and

        (iii) Within
forty-five (45) days of Plant Start-up or December 31, 2002,
whichever first occurs, LICENSEE will pay to TEXACO DEVELOPMENT [***]
of the total lump-sum royalty for the designed Daily Average Output
capacity of the Plant calculated as per the royalty schedule in
Paragraph 2 of this Schedule II.

-30-

 

     (b) LICENSEE shall also pay TEXACO DEVELOPMENT, or its
nominee, in immediately available funds in New York, the lesser of [***] of LICENSEE’s fee it has received for processing each ton of any imported
refinery/chemical plant by-product feedstock or other imported by-product feeds processed in
the Plant
during each accounting period prescribed in Section 4.3 of this License Agreement; provided,
however,
that LICENSEE shall not be required to make such payments to TEXACO DEVELOPMENT until
the aggregate amount of fees received by LICENSEE for processing such feedstock(s) equals the
costs
incurred by LICENSEE, if any, to modify the Plant to enable the Plant to process such
feedstock(s).
The obligations of this Paragraph l(b) shall remain ongoing and shall survive any termination
or expiration of this License Agreement.

     (c) In the event LICENSEE is unable to achieve Financial Closure by June
30, 1998, LICENSEE shall be permitted to cancel this License Agreement by providing TEXACO
DEVELOPMENT with ten (10) days written cancellation notice, and upon the expiration of ten
(10) days from the time TEXACO DEVELOPMENT receives such notice, this License Agreement shall be
deemed canceled and terminated; provided, however, that LICENSEE shall use all reasonable
efforts to achieve Financial Closure and further provided that TEXACO DEVELOPMENT has actually
received the payment set forth in Paragraph l(a)(i) of this
Schedule II. Upon cancellation of
this License Agreement, LICENSEE shall be relieved of its obligation for the remaining royalty
payments set forth in Paragraphs l(a)(ii) and (iii) of this Schedule II, and this License Agreement
shall be terminated.

     (d) LICENSEE shall
be permitted to exceed the designed capacity of the
Plant by up to [***] ( i.e., [***] MSCF) of Daily Average Output without having to pay TEXACO DEVELOPMENT any royalties for
the [***] additional capacity provided that such additional capacity results from
improved operations and does not result from a Fundamental Modification (as defined hereinbelow) of the
Plant LICENSEE shall be required to make additional royalty payments in accordance with the royalty
schedule of Paragraph 2 of this Schedule II in the event the Daily Average Output exceeds
[***] MSCF. It is understood and agreed that a fundamental modification of the Plant shall mean (i) the
simultaneous operation of more than one gasifier, (ii) the addition, modification or replacement of

-31-

 

charge pump(s), feed injector(s), or
gasifier(s) that increase the designed capacity by [***] or more, (iii) an increase in the
capacity of the
air separation unit by [***] or more from the capacity of the air separation unit at the time of
Plant Start-up;
and/or (iv) if the TGPS is practiced at the Plant (“Fundamental Modification”) In
the event such
additional capacity results from a Fundamental Modification, LICENSEE shall be required to make
additional royalty payment in accordance with the royalty schedule in Paragraph 2 of this
Schedule
II. Furthermore, in the event LICENSEE does in fact produce more than Eighty-six Thousand (86,000) MSCF but less than
[***] MSCF of Daily Average
Output without a Fundamental Modification and then subsequently the Plant undergoes a Fundamental
Modification, LICENSEE shall pay TEXACO DEVELOPMENT for all additional capacity beyond the
designed capacity in accordance with the royalty schedule of Paragraph 2 of this
Schedule II.
After TEXACO DEVELOPMENT receives such payment, LICENSEE shall be entitled to further increase
the
Daily Average Output of the Plant by up to an additional [***] MSCF without any further cost to
LICENSEE. Any additional capacity beyond this [***] MSCF shall be subject to the royalty fees in
accordance with the royalty schedule of Paragraph 2 of Schedule II of this License
Agreement.

     
(e) [***]

     
(f) [***]

-32-

 

[***]

          2.      
Lump-sum (viz., paid-up) royalties shall be paid with respect to all
Gasification operations conducted by LICENSEE in accordance with the following
royalty schedule:

	 	(a)	 	For the first 10,000 MSCF of Daily Average Output or
any part thereof,
the sum of [***]; and
	 
	 	 	 	For the next 15,000 MSCF of Daily Average Output, i.e., over
10,000 and
up to and including 25,000 MSCF of Daily Average Output total, at the
rate of [***] per MSCF of Daily average Output; and
	 
	 	 	 	For the next 175,000 MSCF of Daily Average Output, i.e., over
25,000 and
up to and including 200,000 MSCF of Daily Average Output total, at the
rate of [***] per MSCF of Daily Average Output; and
	 
	 	 	 	For all over 200,000 MSCF of Daily Average Output at the rate of [***]
per MSCF of Daily Average Output, and
	 
	 	(b)	 	[***]

-33-

 

[***]

For
the next 114,000 MSCF of Daily Average Output, i.e., over
86,000 and up to and
including 200,000 MSCF of Daily Average output total, at the rate of [***] per
MSCF of Daily Average Output; and

For
all over 200,000 MSCF of Daily Average output at the rate of [***] per MSCF
of Daily Average Output;

all in
accordance with the payment provisions of this Schedule II.

          3.      At the time specified for the submission of accounting statements under Section
4.3 of this License Agreement, LICENSEE will also pay to TEXACO DEVELOPMENT or its
nominee, in U.S. Dollars in immediately available funds in New York, the lump-sum
royalties in accordance with the royalty rate schedule set forth in Paragraph 2 above
and modified as provided in Paragraph 4 of this Schedule II required to purchase paid-up
capacity for that part (if any) of the total Daily Average Output from all Gasification
operations conducted by LICENSEE during the accounting period covered by said statement
for which paid-up capacity shall not have been theretofore purchased by LICENSEE and,
also, the fees specified in Paragraph 2 and modified as provided in Paragraph 4 of this
Schedule II for all Gasification operations of LICENSEE during
said accounting period.

          4.       (a)       All payments made pursuant to Paragraphs 1 and 3, may, at
TEXACO DEVELOPMENT’s discretion, be modified by a factor in which the numerator is the
average “Producer Price Index for Industrial Commodities” as published by the Bureau of
Labor Statistics, U.S. Department of Labor (hereinafter called “BLS Index”) for the
twelve-month period ending the thirty- first day of October preceding the first day of
January of the year in which such payment becomes due

-34-

 

and the denominator is the average of said BLS Index for the twelve-month period
ending October 31,1996 (127.2). Such factor shall not apply to the payment set forth in Paragraph
l(a)(iii) of this Schedule II, provided such amount is actually received by TEXACO DEVELOPMENT
prior to December 31, 2000.

               (b)      If at any time during the term of the License Agreement publication of the BLS Index shall
cease, another appropriate index published in the United States by the U.S. Government, or other
organization generally recognized in the United States as
authoritative on changes of equivalent or substantially equivalent commodity costs in the United States
agreeable to both parties, shall be used.

          5.      If any payment hereunder, or part thereof, shall become due and remain unpaid for a period
in excess of ten (10) days, LICENSEE agrees to pay to TEXACO DEVELOPMENT, in addition to the amount
unpaid, interest on such amount at the rate of one percent (1%) per month for each month or
portion thereof for the period beginning when such payment becomes due and until payment of such
unpaid amount. Such interest shall be in addition to any other rights of TEXACO DEVELOPMENT arising
as a result of LICENSEE’s failure to make such payment or part
thereof within the time specified.

-35-

 

SCHEDULE IV

RELEASE

     The undersigned desires to have access to the gasification plant and related facilities (the
“Plant”) of Farmland Industries, Inc.
(“Farmland”) located near Coffeyville, Kansas. The
undersigned acknowledges that the undersigned’s access to the Plant premises is for the sole
purpose of participating in a guided tour of the Plant and in activities directly associated with
such tour.

     The undersigned acknowledges that:

     (a)      the Plant is an industrial facility that produces synthesis gas from carbonaceous
substances; and

     (b)     
the Plant is located adjacent to other industrial facilities (the “Other
Facilities”) including, without limitation, fertilizer production and storage facilities and
a petroleum refinery; and

     (c)      the operation of the Plant and the Other Facilities involves chemical and other
processes that are inherently dangerous; and

     (d)      the operation of the Plant and the Other Facilities involves toxic materials and
materials under extremely high pressure and/or at extremely high temperatures, all of which
being inherently dangerous; and

     (e)      being industrial facilities, the Plant and the Other Facilities, regardless of
whether they currently are operating, are inherently dangerous; and

     (f)      the undersigned’s physical presence at, near or on the premises of the Plant and/or
the Other Facilities INVOLVES THE RISK OF SIGNIFICANT PERSONAL INJURY AND/OR DEATH TO THE
UNDERSIGNED.

     The undersigned agrees that in consideration of the undersigned receiving the above-described
access to the Plant premises, THE UNDERSIGNED UNCONDITIONALLY ASSUMES ALL RISKS OF PERSONAL INJURY
AND/OR DEATH TO THE UNDERSIGNED that may occur in connection with the undersigned’s physical
presence at, near or on the premises of the Plant and/or the Other Facilities, whether during the
undersigned’s above-described access to the Plant or at any time thereafter and regardless of the
direct or indirect cause thereof (including, without limitation, the acts, omissions or negligence
of Farmland or its directors, officers, employees, agents or representatives), and THE UNDERSIGNED
DOES HEREBY RELEASE AND FOREVER DISCHARGE FARMLAND AND ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS
AND REPRESENTATIVES from any and all claims, demands or actions in connection with or otherwise
relating to any such personal injury or death to the undersigned.

     Also, the undersigned covenants never to make a claim or demand, or pursue any action,
against Farmland or its directors, officers, employees, agents and representatives on account of
any such personal injury or death to the undersigned.

     The undersigned acknowledges and agrees that the undersigned’s signing and delivery of this
Release to Farmland is the free and voluntary act of the undersigned, that this Release is a
legally binding document, and that this Release shall be binding on the undersigned and the
undersigned’s heirs and personal representatives.

	 	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

-36-

 

SCHEDULE
III

NON-EXHAUSTIVE
LIST OF TEXACO U.S. PATENTS

	 	 	 	 	 
	PATENT NO. 	 	DATE OF ISSUE	 	TITLE
	4,261,167

	 	04/14/81
	 	PROCESS FOR THE GENERATION OF POWER
FROM SOLID
CARBONACEOUS FUELS
	 
	 	 	 	 
	4,298,452

	 	11/03/81
	 	COAL LIQUEFACTION
	 
	 	 	 	 
	4,351,645

	 	09/28/82
	 	PARTIAL OXIDATION BURNER APARATUS
	 
	 	 	 	 
	4,371,378

	 	02/01/83
	 	SWIRL BURNER FOR PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,377,132

	 	03/22/83
	 	SYNTHESIS GAS COOLER AND WASTE HEAT BOILER
	 
	 	 	 	 
	4,385,906

	 	05/31/83
	 	START-UP METHOD FOR A GASIFICATION REACTOR
	 
	 	 	 	 
	4,390,347

	 	06/28/83
	 	TRIM CONTROL PROC. FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,390,348

	 	06/28/83
	 	TRIM CONTROL PROC. FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,411,670

	 	10/25/83
	 	PROD. OF SYNTHESIS GAS FROM HEAVY HYDROCARBON FUELS
CONTAINING HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,411,817

	 	10/25/83
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,443,228

	 	04/17/84
	 	PARTIAL OXIDATION BURNER
	 
	 	 	 	 
	4,462,928

	 	07/31/84
	 	PARTIAL OX. OF HEAVY REFINERY FRACTIONS
	 
	 	 	 	 
	4,466,810

	 	08/21/84
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,468,376

	 	08/28/84
	 	DISPOSAL PROC. FOR HALOGENATED ORGANIC MATERIAL
	 
	 	 	 	 
	4,474,581

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OXIDATION GAS

GENERATOR
	 
	 	 	 	 
	4,474,582

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OXIDATION GAS
GENERATOR
	 
	 	 	 	 
	4,479,810

	 	10/30/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,483,690

	 	11/20/84
	 	APPARATUS FOR PROD. OF SYNTHESIS GAS FROM HEAVY
HYDROCARBON FUELS CONTG. HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,490,156

	 	12/25/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,491,456

	 	01/01/85
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,510,057

	 	04/09/85
	 	ROTATING DISK BIOTREATMENT OF SYNGAS WASTE WATER
	 
	 	 	 	 
	4,525,176

	 	06/25/85
	 	PREHEATING AND DESLAGGING A GASIFIER
	 
	 	 	 	 
	4,533,363

	 	08/06/85
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,545,330

	 	10/08/85
	 	SELF-CLEANING LINER
	 
	 	 	 	 
	4,559,061

	 	12/17/85
	 	MEANS FOR SYNTHESIS GAS GENERATION WITH CONTROL OF
RATIO STEAM TO DRY GAS
	 
	 	 	 	 

-37-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,581,899

	 	04/15/86
	 	SYNTHESIS GAS GENERATION WITH PREVENTION OF DEPOSIT FORMATION IN EXIT LINES
	 
	 	 	 	 
	4,590,326

	 	05/20/86
	 	MULTI-ELEMENT THERMOCOUPLE
	 
	 	 	 	 
	4,597,773

	 	07/01/86
	 	PROC. FOR PARTIAL OX. OF HYDROCARBONACEOUS FUEL AND RECOVERY OF WATER FROM DISPERSIONS OF SOOT
	 
	 	 	 	 
	4,605,423

	 	08/12/86
	 	APPARATUS FOR GENERATING AND COOLING SYNTHESIS GAS
	 
	 	 	 	 
	4,624,683

	 	11/25/86
	 	QUENCH RING AND DIP TUBE COMBINATION WITH IMPROVEMENT
	 
	 	 	 	 
	4,637,823

	 	01/20/87
	 	HIGH TEMPERATURE FURNACE
	 
	 	 	 	 
	4,639,312

	 	01/27/87
	 	FILTER PRESS FLOW CONTROL SYSTEM FOR DEWATERING SLUDGE
	 
	 	 	 	 
	4,647,294

	 	03/03/87
	 	PARTIAL OXIDATION APPARATUS
	 
	 	 	 	 
	4,655,792

	 	04/07/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,657,698

	 	04/14/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,666,463

	 	05/19/87
	 	CONTROLLING TEMPERATURE OF BURNERS
	 
	 	 	 	 
	4,668,428

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,668,429

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,704,137

	 	11/03/87
	 	UPGRADING WATER FOR COOLING AND CLEANING
	 
	 	 	 	 
	4,705,536

	 	11/10/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,705,542

	 	11/10/87
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,743,194

	 	05/10/88
	 	COOLING SYSTEM FOR GASIFIER BURNER
	 
	 	 	 	 
	4,749,381

	 	06/07/88
	 	STABLE SLURRIES OF SOLID CARBONACEOUS FUEL AND WATER
	 
	 	 	 	 
	4,776,705

	 	10/11/88
	 	THERMOCOUPLE FOR USE IN HOSTILE ENVIRONMENT
	 
	 	 	 	 
	4,776,860

	 	10/11/88
	 	HIGH TEMPERATURE DESULFURIZATION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,778,483

	 	10/18/88
	 	GASIFICATION REACTOR WITH INTERNAL GAS BAFFLING AND LIQUID COLLECTOR
	 
	 	 	 	 
	4,778,485

	 	10/18/88
	 	POX PROCESS WITH HIGH TEMPERATURE DESULFURIZATION OF SYNGAS
	 
	 	 	 	 
	4,781,731

	 	11/01/88
	 	INTEGRATED METHOD OF CHARGE FUEL PRETREATMENT AND TAIL GAS SULFUR REMOVAL
	 
	 	 	 	 
	4,784,670

	 	11/15/88
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,788,003

	 	11/29/88
	 	PARTIAL OXIDATION OF ASH-CONTAINING LIQUID HYDROCARBONACEOUS AND SOLID CARBONACEOUS FUELS
	 
	 	 	 	 
	4,801,306

	 	01/31/89
	 	QUENCH RING FOR A GASIFIER

-38-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,826,627

	 	05/02/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,828,578

	 	05/09/89
	 	INTERNALLY CHANNELLED GASIFIER QUENCH RING
	 
	 	 	 	 
	4,828,579

	 	05/09/89
	 	THERMALLY INSULATED QUENCH RING FOR A GASIFIER
	 
	 	 	 	 
	4,828,580

	 	05/09/89
	 	QUENCH RING INSULATING COLLAR
	 
	 	 	 	 
	4,857,229

	 	08/15/89
	 	PARTIAL OX. OF SULFUR, NICKEL AND
VANADIUM-CONTG. FUELS
	 
	 	 	 	 
	4,876,031

	 	10/24/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,876,987

	 	10/31/89
	 	SYNTHETIC GAS COOLER WITH THERMAL PROTECTION
	 
	 	 	 	 
	4,880,439

	 	11/14/89
	 	HIGH TEMPERATURE DESULFURIZATION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,889,657

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,889,658

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,891,950

	 	01/09/90
	 	CONTROL SYSTEM AND METHOD FOR A SYNTHESIS GAS PROCESS
	 
	 	 	 	 
	4,909,958

	 	03/20/90
	 	PREVENTION OF FORMATION OF NICKEL
SUBSULFIDE IN PARTIAL OX. OF HEAVY LIQUID AND/OR SOLID FUELS
	 
	 	 	 	 
	4,936,376

	 	06/26/90
	 	SYNTHETIC GAS COOLER WITH THERMAL PROTECTION
	 
	 	 	 	 
	4,948,387

	 	08/14/90
	 	SYNTHESIS GAS BARRIER AND REFRACTORY SUPPORT
	 
	 	 	 	 
	4,957,544

	 	09/18/90
	 	PARTIAL OXIDATION PROCESS INCL. THE CONCENTRATION OF V/NI IN SLAG PHASE
	 
	 	 	 	 
	4,983,296

	 	01/08/91
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	4,992,081

	 	02/12/91
	 	REACTOR DIP TUBE COOLING SYSTEM
	 
	 	 	 	 
	5,000,580

	 	03/19/91
	 	APP. & METH. FOR MEAS. TEMP.
INSIDE PROC. VESSELS CONTG. A HOSTILE ENV.
	 
	 	 	 	 
	5,005,986

	 	04/09/91
	 	SLAG RESISTANT THERMOCOUPLE SHEATH
	 
	 	 	 	 
	5,087,271

	 	02/11/92
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	5,152,975

	 	10/06/92
	 	PROCESS FOR PRODUCING HIGH PURITY H2
	 
	 	 	 	 
	5,152,976

	 	10/06/92
	 	PROCESS FOR PRODUCING HIGH PURITY H2
	 
	 	 	 	 
	5,188,741

	 	02/23/93
	 	TREATMENT OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,211,723

	 	05/18/93
	 	PROCESS FOR REACTING PUMPABLE HIGH SOLIDS SEWAGE SLUDGE SLURRY
	 
	 	 	 	 
	5,211,724

	 	05/18/93
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,233,943

	 	08/10/93
	 	SYNTHETIC GAS RADIANT COOLER WITH INTERNAL QUENCHING AND PURGING FACILITIES
	 
	 	 	 	 
	5,234,468

	 	08/10/93
	 	PROCESS FOR UTILIZING A PUMPABLE FUEL FROM HIGHLY DEWATERED SEWAGE SLUDGE
	 
	 	 	 	 
	5,234,469

	 	08/10/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE

-39-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	5,250,083

	 	10/05/93
	 	PROCESS FOR PRODUCTION OF DESULFURIZED SYNTHESIS GAS
	 
	 	 	 	 
	5,251,433

	 	10/12/93
	 	POWER GENERATION PROCESS
	 
	 	 	 	 
	5,261,602

	 	11/16/93
	 	PARTIAL OXIDATION PROCESS AND BURNER WITH POROUS TIP
	 
	 	 	 	 
	5,265,635

	 	11/30/93
	 	CONTROL MEANS AND METHOD FOR CONTROLLING FEED GASES
	 
	 	 	 	 
	5,295,350

	 	03/22/94
	 	COMBINED POWER CYCLE WITH LIQUEFIED NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,319,924

	 	06/14/94
	 	PARTIAL OXIDATION POWER SYSTEM
	 
	 	 	 	 
	5,324,336

	 	06/28/94
	 	PARTIAL OXIDATION OF LOW RANK COALS AND RESIDUAL OIL
	 
	 	 	 	 
	5,345,756

	 	09/13/94
	 	PARTIAL OXIDATION PROCESS WITH PRODUCTION OF POWER
	 
	 	 	 	 
	5,358,696

	 	10/25/94
	 	PRODUCTION OF H2-RICH GAS
	 
	 	 	 	 
	5,364,996

	 	11/15/94
	 	PARTIAL OXIDATION OF SCRAP RUBBER TIRES AND USED MOTOR OIL
	 
	 	 	 	 
	5,394,686

	 	03/07/95
	 	COMBINED POWER CYCLE WITH LIQUEFIED NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,401,282

	 	03/28/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,403,366

	 	04/04/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,415,673

	 	05/16/95
	 	ENERGY EFFICIENT FILTRATION OF SYNGAS COOLING AND SRUBBING WATER
	 
	 	 	 	 
	5,423,992

	 	06/08/95
	 	CHEMICALLY DISINFECTED SEWAGE SLUDGE-CONTAINING MATERIALS
	 
	 	 	 	 
	5,423,894

	 	06/13/95
	 	PARTIAL OXIDATION OF LOW-RANK COALS
	 
	 	 	 	 
	5,441,990

	 	08/15/95
	 	CLEANED H2-ENRICHED SYNGAS MADE USING WATER-GAS SHIFT REACTION
	 
	 	 	 	 
	5,445,669

	 	08/29/95
	 	PARTIAL OXIDATION OF PRODUCTS OF LIQUEFACTION OF PLASTIC MATERIALS
	 
	 	 	 	 
	5,496,859

	 	03/05/96
	 	GASIFICATION PROCESS COMBINED WITH STEAM METHANE REFORMING TO PRODUCE SYNGAS SUITABLE FOR METHANOL PRODUCTION
	 
	 	 	 	 
	5,515,794

	 	05/14/96
	 	PARTIAL OXIDATION PROCESS BURNER WITH RECESSED TIP AND GAS BLASTING
	 
	 	 	 	 
	5,534,040

	 	07/09/96
	 	PARTIAL OXIDATION OF PARTIALLY LIQUIFIED PLASTIC MATERIALS
	 
	 	 	 	 
	5,554,202

	 	09/10/96
	 	GASIFIER MONITORING APPARATUSGASIFIER MONITORING APPARATUS
	 
	 	 	 	 
	5,578,094

	 	11/26/96
	 	VANADIUM ADDITION TO PETROLEUM COKE SLURRIES TO FACILITATE DESSLAGGING FOR CONTROLLED OXIDATION

-40-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,218,423

	 	08/19/80
	 	QUENCH RING AND DIP TUBE ASSEMBLY FOR A REACTOR VESSEL
	 
	 	 	 	 
	4,247,302

	 	01/27/81
	 	PROCESS FOR GASIFICATION AND PRODUCTION BY-PRODUCT SUPERHEATED STEAM
	 
	 	 	 	 
	4,248,604

	 	02/03/81
	 	GASIFICATION PROCESS
	 
	 	 	 	 
	4,251,228

	 	02/17/81
	 	PRODUCTION OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,252,539

	 	02/24/81
	 	SOLID FUEL COMPOSITION
	 
	 	 	 	 
	4,255,278

	 	03/10/81
	 	PARTIAL OXIDATION PROCESS WITH RECOVERY OF UNCOVERTED SOLID FUEL FROM SUSPENSION IN WATER
	 
	 	 	 	 
	4,261,167

	 	04/14/81
	 	PROCESS FOR THE GENERATION OF POWER FROM CARBONACEOUS FUELS WITH MINIMAL ATMOSPHERIC POLLUTION
	 
	 	 	 	 
	4,265,407

	 	05/05/81
	 	METH. OF PRODUCING A COAL-WATER SLURRY OF PREDETERMINED CONSISTENCY
	 
	 	 	 	 
	4,277,365

	 	07/07/81
	 	PRODUCTION OF REDUCING GAS
	 
	 	 	 	 
	4,279,622

	 	07/21/81
	 	GAS-GAS QUENCH COOLING AND SOLIDS SEPARATION PROCESS
	 
	 	 	 	 
	4,289,502

	 	09/15/81
	 	APPARATUS FOR THE PROD. OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,304,571

	 	12/08/81
	 	COAL BENEFICIATION
	 
	 	 	 	 
	4,304,572

	 	12/08/81
	 	PRODUCTION OF SOLID FUEL-WATER SLURRIES
	 
	 	 	 	 
	4,312,637

	 	01/26/82
	 	SLAG OUTLET FOR GASIFICATION GENERATOR
	 
	 	 	 	 
	4,324,563

	 	04/13/82
	 	GASIFIC. APPARATUS WITH MEANS FOR COOLING AND SEPARATING SOLIDS WITH PRODUCT GAS
	 
	 	 	 	 
	4,326,856

	 	04/27/82
	 	PRODUCTION OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,326,948

	 	04/27/82
	 	LIQUEFACTION AND GASIFICATION OF LOW RANK COALS
	 
	 	 	 	 
	4,328,006

	 	05/04/82
	 	APP. FOR THE PROD. OF CLEANED AND COOLED SYNGAS
	 
	 	 	 	 
	4,328,008

	 	05/04/82
	 	METHOD FOR THE PRODUCTION OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,351,645

	 	09/28/82
	 	PARTIAL OXIDATION BURNER APPARATUS
	 
	 	 	 	 
	4,364,744

	 	12/21/82
	 	BURNER FOR THE PARTIAL OX. OF SLURRIES OF SOLID CARBONACEOUS FUELS
	 
	 	 	 	 
	4,371,378

	 	02/01/83
	 	SWIRL BURNER FOR PARTIAL OX. PROCESS
	 
	 	 	 	 
	4,377,132

	 	03/22/83
	 	SYNTHESIS GAS COOLER AND WASTE HEAT BOILER
	 
	 	 	 	 
	4,377,394

	 	03/22/83
	 	APP. FOR THE PROD. OF CLEANED AND COOLED SYNGAS
	 
	 	 	 	 
	4,385,906

	 	05/31/83
	 	START-UP METHOD FOR A GASIFICATION REACTOR

-41-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,386,941

	 	06/07/83
	 	PROC. FOR THE PARTIAL OX. OF SLURRIES OF SOLID CARBONACEOUS FUEL
	 
	 	 	 	 
	4,390,347

	 	06/28/83
	 	TRIM CONTROL PROCESS FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,390,348

	 	06/28/83
	 	TRIM CONTROL PROCESS FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,390,957

	 	06/28/83
	 	COAL SLURRY MONITOR MEANS AND METHOD
	 
	 	 	 	 
	4,411,533

	 	10/25/83
	 	SYSTEM FOR MEASURING TEMPERATURE OF HOT GASES LADEN WITH ENTRAINED SOLIDS
	 
	 	 	 	 
	4,411,670

	 	10/25/83
	 	PROD. OF SYNTHESIS GAS FROM HEAVY
HYDROCARBON FUELS CONTG. HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,411,817

	 	10/25/83
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,436,530

	 	03/13/84
	 	PROC. FOR GASIFYING SOLID CARBON CONTG. MATERIALS
	 
	 	 	 	 
	4,436,531

	 	03/13/84
	 	COAL. GASIFICATION: PROMOTING THE REACTION OF CARBON IN THE EFFLUENT
	 
	 	 	 	 
	4,443,228

	 	04/17/84
	 	PARTIAL OXIDATION BURNER
	 
	 	 	 	 
	4,443,230

	 	04/17/84
	 	PARTIAL OX. PROCESS FOR SLURRIES OF SOLID FUEL
	 
	 	 	 	 
	4,445,444

	 	05/01/84
	 	BURNER FOR COMBUSTING OXYGEN-COAL MIXTURE
	 
	 	 	 	 
	4,465,496

	 	08/14/84
	 	REMOVAL OF SOUR WATER FROM COAL GASIFICATION SLAG
	 
	 	 	 	 
	4,466,808

	 	08/21/84
	 	METH. OF COOLING PRODUCT GASES OF INCOMPLETE COMBUSTION CONTAINING ASH AND CHAR WHICH PASS THROUGH A VISCOUS STICKY PHASE
	 
	 	 	 	 
	4,466,810

	 	08/21/84
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,468,376

	 	08/28/84
	 	DISPOSAL PROC. FOR HALOGENATED ORGANIC MATERIAL
	 
	 	 	 	 
	4,474,581

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,474,582

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,479,810

	 	10/30/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,483,690

	 	11/20/84
	 	APPARATUS FOR PROD. OF SYNTHESIS GAS
FROM HEAVY HYDROCARBON FUELS CONTG. HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,490,156

	 	12/25/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,491,456

	 	01/01/85
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,510,057

	 	04/09/85
	 	ROTATING DISK BIOTREATMENT OF SYNGAS WASTE WATER
	 
	 	 	 	 
	4,525,175

	 	06/25/85
	 	BURNER FOR PARTIAL OXIDATION PROCESS FOR SLURRIES
	 
	 	 	 	 
	4,525,176

	 	06/25/85
	 	PREHEATING AND DESLAGGING A GASIFIER
	 
	 	 	 	 
	4,526,676

	 	07/02/85
	 	INTEGRATED H-OIL PROCESS INCLUDING RECOVERY AND TREATMENT OF VENT AND PURGE GAS STREAMS AND SOOT NAPHTHA STREAM

-42-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	 
	 	 	 	 
	4,533,363

	 	08/06/85
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,545,330

	 	10/08/85
	 	SELF-CLEANING LINER
	 
	 	 	 	 
	4,559,061

	 	12/17/85
	 	MEANS FOR SYNTHESIS GAS GENERATION WITH CONTROL OF RATIO OF STEAM TO DRY GAS
	 
	 	 	 	 
	4,581,899

	 	04/15/86
	 	SYNTHESIS GAS GENERATION WITH PREVENTION OF DEPOSIT FORMATION IN EXIT LINES
	 
	 	 	 	 
	4,590,326

	 	05/20/86
	 	MULTI-ELEMENT THERMOCOUPLE
	 
	 	 	 	 
	4,597,773

	 	07/01/86
	 	PROCESS FOR PARTIAL OXIDATION OF HYDROCARBONACEOUS FUEL AND RECOVERY OF WATER FROM DISPERSIONS OF SOOT AND WATER
	 
	 	 	 	 
	4,605,423

	 	08/12/86
	 	APPARATUS FOR GENERATING AND COOLING SYNTHESIS GAS
	 
	 	 	 	 
	4,624,683

	 	11/25/86
	 	QUENCH RING AND DIP TUBE COMBINATION WITH IMPROVEMENT
	 
	 	 	 	 
	4,637,823

	 	01/20/87
	 	HIGH TEMPERATURE FURNACE
	 
	 	 	 	 
	4,639,312

	 	01/27/87
	 	FILTER PRESS FLOW CONTROL SYSTEM FOR DEWATERING SLUDGE
	 
	 	 	 	 
	4,647,294

	 	03/03/87
	 	PARTIAL OXIDATION APPARATUS
	 
	 	 	 	 
	4,650,497

	 	03/17/87
	 	QUENCH CHAMBER FOR HIGH PRESSURE
	 
	 	 	 	 
	4,655,792

	 	04/07/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,657,698

	 	04/14/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,666,462

	 	05/19/87
	 	CONTROL PROCESS FOR SOLID FUELS
	 
	 	 	 	 
	4,666,463

	 	05/19/87
	 	CONTROLLING TEMPERATURE OF BURNERS
	 
	 	 	 	 
	4,668,428

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,668,429

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,671,803

	 	06/09/87
	 	SYNGAS FREE FROM VOLATILE METAL HYDRIDES
	 
	 	 	 	 
	4,676,805

	 	06/30/87
	 	PROCESS FOR OPERATING GAS GENERATOR
	 
	 	 	 	 
	4,704,137

	 	11/03/87
	 	UPGRADING WATER FOR COOLING AND
CLEANING PARTIAL OX. PROCESS
	 
	 	 	 	 
	4,705,536

	 	11/10/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,705,542

	 	11/10/87
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,743,194

	 	05/10/88
	 	COOLING SYSTEM FOR GASIFIER BURNER
	 
	 	 	 	 
	4,749,381

	 	06/07/88
	 	STABLE SLURRIES OF CARBONACEOUS FUEL AND WATER
	 
	 	 	 	 
	4,774,021

	 	09/27/88
	 	PARTIAL OX. OF SULFUR-CONTG. SOLID FUEL
	 
	 	 	 	 
	4,776,860

	 	10/11/88
	 	HIGH-TEMPERATURE DESULFURIZATION OF SYNGAS
	 
	 	 	 	 

-43-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,778,483

	 	10/18/88
	 	QUENCH CHAMBER WITH TROUGH AT BOTTOM OF BAFFLE
	 
	 	 	 	 
	4,778,485

	 	10/18/88
	 	PARTIAL OXIDATION WITH SECOND STAGE ADDITION OF ADDITIVE
	 
	 	 	 	 
	4,781,731

	 	11/01/88
	 	INTEGRATED METHOD OF CHARGE FUEL PRETREATMENT AND TAIL GAS SULFUR REMOVAL IN A PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,784,670

	 	11/15/88
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,788,003

	 	11/29/88
	 	PARTIAL OXIDATION OF ASH-CONTAINING LIQUID HYDROCARBONACEOUS AND SOLID CARBONACEIOUS FUELS
	 
	 	 	 	 
	4,801,306

	 	01/31/89
	 	QUENCH RING FOR GASIFIER
	 
	 	 	 	 
	4,826,627

	 	05/02/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,828,578

	 	05/09/89
	 	INTERNALLY CHANNELLED GASIFIER QUENCH RING
	 
	 	 	 	 
	4,828,579

	 	05/09/89
	 	THERMALLY INSULATED QUENCH RING FOR A GASIFIER
	 
	 	 	 	 
	4,828,580

	 	05/09/89
	 	QUENCH RING INSULATING COLLAR
	 
	 	 	 	 
	4,857,229

	 	08/15/89
	 	PARTIAL OX. OF SULFUR, NICKEL AND
VANADIUM-CONTG. FUELS
	 
	 	 	 	 
	4,863,489

	 	09/05/89
	 	PROD. OF DEMERCURIZED SYNTHESIS GAS
	 
	 	 	 	 
	4,875,906

	 	10/24/89
	 	PARTIAL OX. OF LOW HEATING VALUE WASTE PETROLEUM PRODUCTS
	 
	 	 	 	 
	4,876,031

	 	10/24/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,876,987

	 	10/31/89
	 	SYNTHETIC GAS COOLER WITH THERMAL PROTECTION
	 
	 	 	 	 
	4,880,439

	 	11/14/89
	 	HIGH TEMPERATURE DESULFURIZATION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,889,657

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,889,658

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,889,699

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,904,277

	 	02/27/90
	 	REHYDRATING INHIBITORS FOR PREPARATION OF HIGH-SOLIDS CONCENTRATION LOW RANK COAL SLURRIES
	 
	 	 	 	 
	4,909,958

	 	03/20/90
	 	PREVENTION OF FORMATION OF NICKEL
SUBSULFIDE IN PARTIAL OX. OF HEAVY LIQUID AND/OR SOLID FUELS
	 
	 	 	 	 
	4,919,688

	 	04/24/90
	 	GASIFIER WITH GAS SCROURED THROAT
	 
	 	 	 	 
	4,936,376

	 	06/26/90
	 	SYNTHETIC GAS COOLER WITH THERMAL PROCTECTION
	 
	 	 	 	 
	4,946,476

	 	08/07/90
	 	PARTIAL OX. OF BITUMINOUS COAL
	 
	 	 	 	 
	4,948,387

	 	08/14/90
	 	SYNTHESIS GAS BARRIER AND REFRACTORY SUPPORT
	 
	 	 	 	 
	4,957,544

	 	09/18/90
	 	PARTIAL OX. PROCESS INCLUDING THE CONCENTRATION OF V/NI IN SLAG PHASE
	 
	 	 	 	 
	4,983,296

	 	01/08/91
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 

-44-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,992,081

	 	02/12/91
	 	REACTOR DIP TUBE COOLING SYSTEM
	 
	 	 	 	 
	5,000,580

	 	03/19/91
	 	APPARATUS AND METHOD FOR MEASURING TEMPERATURES INSIDE PROCESS VESSELS CONTG. A HOSTILE ENVIRONMENT
	 
	 	 	 	 
	5,005,986

	 	04/09/91
	 	SLAG RESISTANT THERMOCOUPLE SHEATH
	 
	 	 	 	 
	5,087,271

	 	02/11/92
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	5,183,478

	 	02/02/93
	 	PROCESS AND APPARATUS FOR DEWATERING QUENCHED SLAG
	 
	 	 	 	 
	5,188,739

	 	02/23/93
	 	DISPOSAL OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,188,740

	 	02/23/93
	 	PUMPABLE FUEL SLURRY OF SEWAGE SLUDGE & LOW GRADE SOLIDS CARBONACEOUS FUELS
	 
	 	 	 	 
	5,188,741

	 	02/23/93
	 	TREATMENT OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,211,723

	 	05/18/93
	 	PROCESS FOR REACTING PUMPABLE HIGH SOLIDS SEWAGE SLUDGE SLURRY
	 
	 	 	 	 
	5,211,724

	 	05/18/93
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,217,625

	 	06/08/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,230,211

	 	07/27/93
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,233,943

	 	08/10/93
	 	SYNTHETIC GAS RADIANT COOLER WITH INTERNAL QUENCHING AND PURGING FACILITIES
	 
	 	 	 	 
	5,234,469

	 	08/10/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,250,083

	 	10/05/93
	 	PROCESS FOR PRODUCTION OF DESULFURIZED SYNTHESIS GAS
	 
	 	 	 	 
	5,251,433

	 	10/12/93
	 	POWER GENERATION PROCESS
	 
	 	 	 	 
	5,261,602

	 	11/16/93
	 	PARTIAL OXIDATION PROCESS AND BURNER WITH POROUS TIP
	 
	 	 	 	 
	5,264,009

	 	11/23/93
	 	PROCESSING OF SEWAGE SLUDGE FOR USE AS A FUEL
	 
	 	 	 	 
	5,266,085

	 	11/30/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,273,556

	 	12/28/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,281,243

	 	01/25/94
	 	TEMPERATURE MONITORING BURNER MEANS AND METHOD
	 
	 	 	 	 
	5,292,442

	 	03/08/94
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,295,350

	 	03/22/94
	 	COMBINED POWER CYCLE WITH LIQUEFIED
NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,319,924

	 	06/14/94
	 	PARTIAL OXIDATION POWER SYSTEM
	 
	 	 	 	 
	5,324,336

	 	06/28/94
	 	PARTIAL OXIDATION OF LOW RANK COALS
	 
	 	 	 	 
	5,338,489

	 	08/16/94
	 	DESLAGGING GASIFIERS BY CONTROLLED
HEAT AND DERIVATIZATION
	 
	 	 	 	 
	5,345,756

	 	09/13/94
	 	PARTIAL OXIDATION PROCESS WITH PRODUCTION OF POWER
	 
	 	 	 	 
	5,356,540

	 	10/18/94
	 	PUMPABLE OXIDATION PROCESS WITH PRODUCTION OF POWER
	 
	 	 	 	 

-45-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	5,358,696

	 	10/25/94
	 	PRODUCTION OF H2 RICH GAS
	 
	 	 	 	 
	5,394,686

	 	03/07/95
	 	COMBINED POWER CYCLE WITH LIQUEFIED
NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,401,282

	 	03/28/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,403,366

	 	04/04/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,415,673

	 	05/16/95
	 	ENERGY EFFICIENT FILTRATION OF SYNGAS COOLING AND SCRUBBING WATER
	 
	 	 	 	 
	5,423,992

	 	06/08/95
	 	CHEMICALLY DISINFECTED SEWAGE SLUDGE-CONTAINING MATERIALS
	 
	 	 	 	 
	5,423,894

	 	06/13/95
	 	PARTIAL OXIDATION OF LOW-RANK COALS
	 
	 	 	 	 
	5,441,990

	 	08/15/95
	 	CLEANED,
H2-ENRICHED SYNGAS MADE USING WATER-GAS SHIFT REACTION
	 
	 	 	 	 
	5,464,592

	 	11/07/95
	 	GASIFIER THROAT
	 
	 	 	 	 
	5,464,503

	 	11/07/95
	 	TIRE LIQUEFYING PROCESS REACTOR DISCHARGE SYSTEM AND METHOD
	 
	 	 	 	 
	5,484,554

	 	01/16/96
	 	OXIDANT INJECTION FOR IMPROVED CONTROLLED OXIDATION
	 
	 	 	 	 
	5,498,827

	 	03/12/96
	 	HYDROTHERMAL TREATMENT AND PARTIAL OXIDATION OF PALSTIC MATERIALS
	 
	 	 	 	 
	5,515,794

	 	05/14/96
	 	PARTIAL OXIDATION PROCESS BURNER WITH RECESSED TIP AND GAS BLASTING
	 
	 	 	 	 
	5,534,040

	 	07/09/96
	 	PARTIAL OXIDATION OF PARTIALLY
LIQUIFIED PLASTIC MATERIALS
	 
	 	 	 	 
	5,545,238

	 	08/13/96
	 	METHOD OF MONITORING SLAG REMOVAL DURING CONTROLLED OXIDATION OF PARTIAL OXIDATION REACTOR
	 
	 	 	 	 
	5,554,202

	 	09/10/96
	 	GASIFIER MONITORING APPARATUS
	 
	 	 	 	 
	5,566,891

	 	10/22/96
	 	METHOD FOR GRINDING HOT MATERIAL AND RECOVERING GASES ENITTED THEREFROM
	 
	 	 	 	 
	5,578,094

	 	11/26/96
	 	VANADIUM ADDITION TO PETROLEUM COKE SLURRIES TO FACILITATE DESLAGGING FOR CONTROLLED OXIDATION

-46-

 

AMENDMENT AGREEMENT

     THIS AMENDMENT AGREEMENT, made and entered into this 11th day of
December, 1997, by and between TEXACO DEVELOPMENT CORPORATION (“TEXACO
DEVELOPMENT”) and FARMLAND INDUSTRIES, INC. (“LICENSEE”).

     WHEREAS, the parties entered into a License Agreement, dated as of May 30,
1997 (the “License Agreement”) and now desire to amend the License Agreement to
provide for certain “at risk” elements to the payment of a portion of the
royalty fees payable thereunder;

     NOW, THEREFORE, the parties hereto do hereby agree as follows:

     I. All initial capitalized terms used herein shall have the meaning
given them in the License Agreement.

     II. Paragraph 1(a)
of Schedule II to the License Agreement is hereby amended to read in
its entirety as follows:

         1. (a)(i)
The
parties acknowledge that LICENSEE has paid to Texaco Development the
[***] royalty payment anticipated in 
Section 1(a)(i) of this
Schedule II;

             (ii) Within
forty-five (45) days of Financial Closure or by June 30, 1998,
whichever first occurs, LICENSEE will pay TEXACO DEVELOPMENT a
royalty payment of [***];

             (iii) LICENSEE
will pay TEXACO DEVELOPMENT running royalty payments, contingent on
production of Synthesis Gas by the Plant, as follows:

             (1) The
maximum aggregate of the payments required under this clause
(iii)(1) shall be [***];

             (2) as
to any accounting period (as defined in Section 4.3 of the
License Agreement), other than an accounting period that is less than
a full six calendar months, (x) if the Daily Average Output for
such accounting period is more than [***] MSCF, then [***] shall be
required to be paid with respect to such accounting period,
(y) if the Daily Average Output for such accounting period is
less than [***] MSCF, then no amount shall be required to be paid
with respect to such accounting period, and (z) if the Daily
Average Output for such accounting period is from [***] MSCF, then an
amount equal to [***], times a fraction, the numerator of which is
such Daily Average Output for such accounting period minus [***], and
the denominator of which is [***], shall be required to be paid with
respect to such accounting period; and

             (3) Payments
required under this clause (iii) shall accompany the annual statement
required under Section 4.3 of the License Agreement.

             (iv) The
balance of the royalty payments shall be paid, at LICENSEE’s
election, either (A) within forty-five (45) days of Plant Start-up or
December 31, 2002, whichever first occurs, a lump sum royalty of
[***], or (B) running royalty payments, contingent on the production
of Synthesis Gas by the Plant, as follows:

             (1) the
maximum aggregate of the payments required to be paid under this
clause (iv)(B) shall be [***];

             (2) as
to any accounting period, other than an accounting period that is
less than a six full calendar months, (x) if the Daily Average Output
for such accounting period is more than [***] MSCF, then [***] shall
be required to be paid with respect to such accounting period,
(y) if the Daily Average Output for such accounting period is
less than [***] MSCF, then no amount shall be required to be paid with
respect to such accounting period, and (z) if the Daily Average
Output for such accounting period is from [***] MSCF, to and including
[***] MSCF, then an amount equal to [***] times a fraction, the
numerator of which is such Daily Average Output for such accounting
period minus [***], and the denominator of which is [***], shall be
required to be paid with respect to such accounting period; and

             (3) Payments
required under this clause (iv)(B) shall accompany the annual
statement required under Section 4.3 of the License Agreement.

Upon
payment to Texaco Development by LICENSEE of [***] under the above
clause (ii), the [***] under the above clause (iii) and either the
[***] under the above clause (iii)(A) or the [***] under the above
clause (iv)(B), all royalties for the designed Daily Average Output
of the Plant calculated per the royalty schedule in Paragraph 2
of this Schedule II shall be fully paid.

     III. Paragraph
 2 of Schedule II to the License Agreement is hereby
amended to read in its entirety as follows:

         2. Royalties
shall be paid with respect to all Gasification operations conducted
by LICENSEE in accordance with the following royalty schedule:

             (a) For
the first 86,000 MSCF of Daily Average Output or any part thereof, the
royalties provided in Paragraph 1(a) of this Schedule II;

             For
the next 114,000 MSCF of Daily Average Output (i.e., over 86,000) and
up to and including 200,000 MSCF of Daily Average Output total,
lump-sum royalties at the rate of [***] per MSCF of Daily Average
Output; and

             For
all over 200,000 MSCF of Daily Average Output lump-sum royalties at the
rate of [***] per MSCF of Daily Average Output; and

             [***]

             For
the next 114,000 MSCF of Daily Average Output, i.e., over 86,000 and up
to and including 200,000 MSCF of Daily Average Output total, lump-sum
royalties at the rate of [***] per MSCF of Daily Average Output; and

             For
all over 200,000 MSCF of Daily Average Output lump-sum royalties at the
rate of [***] per MSCF of Daily Average Output;

all in
accordance with the payment provisions of this Schedule II.

     IV. The
last sentence of paragraph 4(a) of Schedule II to the
License Agreement is hereby amended to read in its entirety as
follows:

     “Such
factor shall not apply to (a) any running royalty payments to be
made under paragraph 1(a)(iii) or paragraph 1(a)(iv)(B) of
Schedule II to the License Agreement, or (b) the payment
(which may be made at LICENSEE’s election) set forth in
paragraph 1(a)(iv)(A) of Schedule II to the License
Agreement, provided such amount in paragraph 1(a)(iv)(A) is
actually received by TEXACO DEVELOPMENT prior to December 31,
2000.”

     V. Section 4.3.2 of the License Agreement is hereby amended to read
in its entirety as follows:

     4.3.2 The excess (in daily averages), if any, of the total Daily Average
Output from the Gasification section of the Plant reported under Subparagraph
4.3.1  above, over the total Daily Average Output for all operations conducted
by LICENSEE for which a license has been granted to LICENSEE under this
License Agreement;

     VI. The
last sentence of Section 7.2 of the License Agreement is hereby amended
by deleting “Paragraphs 1(a)(i), (ii) and (iii)” and inserting in lieu thereof
“Paragraphs 1(a)(i) and
(ii)”.

     VII.
Section 8.3.4 and the first sentence of Section 8.6 of the License
Agreement are hereby amended by adding, immediately following the phrase “due
and actually received by” appearing in each such provision, the following:

     “, whether received prior or subsequent to the
incurrence of such liability,”

     VIII. Except as provided herein, the License Agreement is not otherwise being
amended or modified and the provisions thereof shall continue in full force and effect, as
amended and modified herein.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment
Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	FARMLAND INDUSTRIES, INC.	 	 	 	TEXACO DEVELOPMENT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Allan D. Holiday	 	 	 	By:	 	/s/ John M. Brady	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Name:

	 	Allan D. Holiday	 	 	 	Name:	 	John M. Brady	 	 
	Title:

	 	Project Manager	 	 	 	Title	 	Vice President	 	 
	Date: December 11, 1997	 	 	 	Date: December 11, 1997	 	 

 

Texaco Development Corporation

1111
Bagby Street

Houston, TX 77002

ChevronTexaco

October 24, 2003

Coffeyville Resources, LLC

c/o Pegasus Investors

99 River Road

Cos Cob, Connecticut 06807

	 	 	 	 	 
	 

	 	Re:
	 	Texaco Gasification Process, Texaco Hydrogen Generation Process and Texaco
	 

	 	 	 	 Gasification Power Systems
	 

	 	 	 	License Agreement Effective
May 30, 1997
	 

	 	 	 	Amendment No. Two

Gentlemen,

Reference is made to the license agreement referenced above (“License Agreement”)
effective as of May 30, 1997, between Texaco Development Corporation (“TDC”) and Farmland
Industries, Inc. (“Former Licensee”). Reference is also made to the Consent agreement dated
December 11, 1997 wherein TDC consented to certain assignments
by Former Licensee, the Amendment
Agreement dated December 11, 1997 which amended the License Agreement, and the Consent to
Assignment and Assignment of License Agreement dated October 24, 2003 wherein the License
Agreement was assigned by the Former Licensee to Coffeyville
Resources, LLC (“Licensee”).

TDC and
Licensee wish to amend the License Agreement as indicated below to reflect the
new royalty payment schedule agreed to by the parties.

      License Agreement

	1.	 	Section 7.1, first line, delete “or canceled and,
hence, terminated under Paragraph l(c) of
Schedule II,”.
	 
	2.	 	Section 7.2, last sentence, delete in its entirety.
	 
	3.	 	Schedule II of the License Agreement is hereby amended
as follows:
	 
	i.	 	Paragraph 1(a), is hereby amended to read in its entirety as follows:

	 	 	 
	[CHEVRON LOGO] [TEXACO LOGO]

	 	Coffeyville Resources, LLC

2nd Amendment to License Agreement

 

 

================================================================================

-2-

1(a)
The parties acknowledge and agree that the Former Licensee, Farmland, has paid to
Texaco Development all royalties and fees due and owing to TDC
through December 31, 2003.
For royalties and fees due and owing to TDC after December 31, 2003, the parties further
acknowledge and agree that the LICENSEE shall pay additional royalties and fees in the
total sum of [***] according to the payment schedule listed below:

	 	(i)	 	An initial payment of [***] shall be paid to TDC on or before June 1, 2004;
	 
	 	(ii)	 	A second payment of [***] shall be paid to TDC on or before June 1, 2005;
	 
	 	(iii)	 	A third payment of [***] shall be paid to TDC on or before June 1, 2006;
and
	 
	 	(iv)	 	A fourth and final payment of [***] shall be paid to TDC on or before June 1, 2007.

	ii.	 	Paragraph 1(c) is hereby deleted in its entirety.
	 
	iii.	 	Paragraph 1(e) is hereby deleted in its entirety.
	 
	iv.	 	Paragraph 1(f), last sentence, delete
“Paragraph 2(b)”and insert in lieu
“Paragraph 2”.
	 
	v.	 	Paragraph 2 is hereby amended to read in its entirety as follows:

     2. Royalties
shall be paid with respect to all Gasification operations conducted
by Licensee in accordance with the following royalty schedule:

For
the next 114,000 MSCF of Daily Average Output, i.e., over 86,000 and up to and including
200,000 MSCF of Daily Average Output total lump-sum royalties,
at the rate of [***] per MSCF of Daily
Average Output;
and

For all over
200,000 MSCF of Daily Average Output lump-sum royalties at the rate of
[***] per MSCF of Daily Average Output;

all
in accordance with the payment provisions of this Schedule II.

	vi.	 	Paragraph 4(a) is hereby amended by deleting the last
sentence.

Coffeyville Resources, LLC

2nd  Amendment to License Agreement

 

 

-3-

All other terms and conditions of the License Agreement shall remain in full force and effect.

The
obligations under this Letter Agreement are conditioned upon the
following: (i) Licensee becoming the “Successful Bidder” as such term
is defined pursuant to the Order Approving Bid Procedures entered by
the Bankruptcy Court (“Bankruptcy Court”) in Former Licensee’s
Bankruptcy Chapter 11 Case No. 02-50557-JWV, (ii) closing of the transaction pursuant to that certain Asset Sale and Purchase Agreement
dated September 25, 2003 between Former Licensee as
“Seller” and Licensee as “ Buyer” (the “APA”) on or before March 31, 2004, (iii) the
entry of an appropriate order by the Bankruptcy Court approving the
sale of the “Transferred Assets”, as such term is defined
under the APA, and (iv) the entry of a
final and non-appealable order by the Bankruptcy Court approving the compromise and settlement agreement between TDC and Former Licensee pursuant to the letter
agreement dated October 17, 2003.

If you are agreeable to the foregoing conditions, please indicate your acceptance and agreement by having a duly authorized
representative of Licensee execute both duplicate originals of the Letter Agreement and returning both signed copies to us for completion by TDC.

	 	 	 	 	 	 	 
	 	 	          Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	TEXACO DEVELOPMENT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ W. E. Preston	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Vice President	 	 

	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 	 	 
	COFFEYVILLE RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Philip L. Rinaldi	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:	 	Philip L. Rinaldi	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	Tittle:

	 	CEO	 	 	 	 
	 
	 	 
	 	 
	Date:

	 	10/24/03	 	 	 	 
	 
	 	 
	 	 

Coffeyville Resources, LLC

2nd Amendment to License AgreementEX-10.5

 

PORTIONS
OF THIS EXHIBIT DENOTED WITH THREE ASTERISKS [***] HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT
10.5

(Multicurrency — Cross Border)

International Swap Dealers Association, Inc.

MASTER AGREEMENT

dated as of June 24, 2005

J. ARON & COMPANY                     COFFEYVILLE RESOURCES, LLC

and

have entered and/or anticipate entering into one or more transactions (each a
“Transaction”) that are or will be governed by this Master Agreement, which includes the schedule
(the “Schedule”), and the documents and other confirming evidence (each a “Confirmation”)
exchanged between the parties confirming those Transactions.

Accordingly, the parties agree as follows: —

1. Interpretation

(a) Definitions.The terms defined in Section 14 and in the Schedule will have the meanings
therein
specified for the purpose of this Master Agreement.

(b) Inconsistency. In the event of any inconsistency between the provisions of the Schedule and
the
other provisions of this Master Agreement, the Schedule will prevail. In the event of any
inconsistency
between the provisions of any Confirmation and this Master Agreement (including the Schedule),
such
Confirmation will prevail for the purpose of the relevant Transaction.

(c) Single
Agreement. All Transactions are entered into in reliance on the fact that this
Master
Agreement and all Confirmations form a single agreement between the parties (collectively
referred to as
this “Agreement”), and the parties would not otherwise enter into any Transactions.

2. Obligations

(a) General Conditions.

(i) Each party will make each payment or delivery specified in each Confirmation to
be made by it, subject to the other provisions of this Agreement.

(ii) Payments under this Agreement will be made on the due date for value on that date in
the place of the account specified in the relevant Confirmation or otherwise pursuant to
this Agreement, in freely transferable funds and in the manner customary for payments in
the required currency. Where settlement is by delivery (that is, other than by payment),
such delivery will be made for receipt on the due date in the manner customary for the
relevant obligation unless otherwise specified in the relevant Confirmation or elsewhere
in this Agreement.

(iii) Each
obligation of each party under Section 2(a)(i) is subject to (1) the condition
precedent that no Event of Default or Potential Event of Default with respect to the
other party has occurred and is continuing, (2) the condition precedent that no Early
Termination Date in respect of the relevant Transaction has occurred or been effectively
designated and (3) each other applicable condition precedent specified in this Agreement.

Copyright
© 1992 by International Swap Dealers Association, Inc

 

 

(b)
Change of Account. Either party may change its account for receiving a payment or delivery
by
giving notice to the other party at least five Local Business Days prior to the scheduled date for
the payment
or delivery to which such change applies unless such other party gives timely notice of a
reasonable objection
to such change.

(c) Netting. If on any date amounts would otherwise be payable:—

	 	(i)	 	in the same currency; and
	 
	 	(ii)	 	in respect of the same Transaction,

by each
party to the other, then, on such date, each party’s obligation to make payment of any
such amount will be automatically satisfied and discharged and, if the aggregate amount that would
otherwise have been payable by one party exceeds the aggregate amount that would otherwise have
been payable by the other party, replaced by an obligation upon the party by whom the larger
aggregate amount would have been payable to pay to the other party the excess of the larger
aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount will be determined
in respect of all amounts payable on the same date in the same currency in respect of such
Transactions, regardless of whether such amounts are payable in
respect of the same Transaction. The
election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election, together with the
starting date (in which case subparagraph (ii) above will not, or will cease to, apply to such
Transactions from such date). This election may be made separately for different groups of
Transactions and will apply separately to each pairing of Offices through which the parties make
and receive payments or deliveries.

(d)
Deduction or Withholding for Tax.

(i) Gross-Up. All payments under this Agreement will be made without any deduction or
withholding for or on account of any Tax unless such deduction or withholding is required
by any applicable law, as modified by the practice of any relevant governmental revenue
authority, then in effect. If a party is so required to deduct or withhold, then that party
(“X”) will:—

(1) promptly
notify the other party (“Y”) of such requirement;

(2) pay to the relevant authorities the full amount required to be deducted or withheld
(including the full amount required to be deducted or withheld from any additional
amount
paid by X to Y under this Section 2(d)) promptly upon the earlier of determining that
such
deduction or withholding is required or receiving notice that such amount has been
assessed
against Y;

(3) promptly forward to Y an official receipt (or a certified copy), or other
documentation
reasonably acceptable to Y, evidencing such payment to such authorities; and

(4) if
such Tax is an Indemnifiable Tax, pay to Y, in addition so the payment to which
Y is
otherwise entitled under this Agreement, such additional amount as is necessary to
ensure that
the net amount actually received by Y (free and clear of Indemnifiable Taxes, whether
assessed
against X or Y) will equal the full amount Y would have received had no such deduction
or
withholding been required However, X will not be required to pay any additional amount
to
Y to the extent that it would not be required to be paid but for:—

(A) the failure by Y to comply with or perform any agreement contained in
Section 4(a)(i), 4(a)(iii) or 4(d); or

(B) the failure of a representation made by Y pursuant to Section 3(f) to be
accurate and
true unless such failure would not have occurred but for (I) any action taken by a
taxing
authority, or brought in a court of competent jurisdiction, on or
after the date
on which a
Transaction is entered into (regardless of whether such action is taken or brought
with
respect to a party to this Agreement) or (II) a Change in Tax Law.

					
	 	 	 	 	 
	 
	 	2
	 	ISDAÒ 1992

 

 

	 	(ii)	 	Liability. If:—

(1) X is required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect of
which X would not be required to pay an additional amount to Y under Section
2(d)(i)(4);

(2) X does not so deduct or withhold; and

(3) a liability resulting from such Tax is assessed directly against X,

then, except to the extent Y has satisfied or then satisfies the liability resulting from
such Tax, Y will promptly pay to X the amount of such liability (including any related
liability for interest, but including any related liability for penalties only if Y has
failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d)).

(e)
Default Interest, Other Amounts. Prior to the occurrence or effective designation of an Early
Termination Date in respect of the relevant Transaction, a party that defaults in the performance
of any payment obligation will, to the extent permitted by law and subject to Section 6(c), be
required to pay interest (before as well as after judgment) on the overdue amount to the other
party on demand in the same currency as such overdue amount, for the period from (and including)
the original due date for payment to (but excluding) the date of actual payment, at the Default
Rate. Such interest will be calculated on the basis of daily compounding and the actual number of
days elapsed. If, prior to the occurrence or effective designation of an Early Termination Date in
respect of the relevant Transaction, a party defaults in the performance of any obligation required
to be settled by delivery, it will compensate the other party on demand if and to the extent
provided for in the relevant Confirmation or elsewhere in this Agreement.

3. Representations

Each party represents to the other party (which representations will be deemed to be repeated by
each party on each date on which a Transaction is entered into and, in the case of the
representations in Section 3(f), at all times until the termination of this Agreement) that:

(a)
Basic Representations.

(i)
Status. It is duly organised and validly existing under the laws of the
jurisdiction of its organisation or incorporation and, if relevant under such laws, in good
standing;

(ii) Powers. It has the power to execute this Agreement and any other documentation
relating to this Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement to deliver
and to perform its obligations under this Agreement and any obligations it has under any
Credit Support Document to which it is a party and has taken all necessary action to
authorise such execution, delivery and performance;

(iii)
No Violation or Conflict. Such execution, delivery and performance do not violate or
conflict with any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it or any of its
assets or any contractual restriction binding on or affecting it or any of its assets;

(iv)
Consents. All governmental and other consents that are required to have been obtained
by it with respect to this Agreement or any Credit Support Document to which it is a party
have been obtained and are in full force and effect and all conditions of any such consents
have been complied with; and

(v)
Obligations Binding. Its obligations under this Agreement and any Credit Support
Document to which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable bankruptcy,
reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights
generally and subject, as to enforceability, to equitable principles of general application
(regardless of whether enforcement is sought in a proceeding in equity or at law)).

					
	 	 	 	 	 
	 
	 	3
	 	ISDAÒ 1992

 

 

(b) Absence
of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge,
Termination Event with respect to it has occurred and is continuing and no such event or
circumstance would
occur as a result of its entering into or performing its obligations under this Agreement or any
Credit Support
Document to which it is a party.

(c) Absence
of Litigation. There is not pending or, to its knowledge, threatened against it or any
of its
Affiliates any action, suit or proceeding at law or in equity or before any court, tribunal,
governmental body,
agency or official or any arbitrator that is likely to affect the legality, validity or
enforceability against it of
this Agreement or any Credit Support Document to which it is a party or its ability to perform its
obligations
under this Agreement or such Credit Support Document.

(d) Accuracy
of Specified Information. All applicable information that is furnished in writing by
or on
behalf of it to the other party and is identified for the purpose of this Section 3(d) in the
Schedule is, as of
the date of the information, true, accurate and complete in every
material respect.

(e) Payer Tax Representation. Each representation specified in the Schedule as being made by it
for
the purpose of this Section 3(e) is accurate and true.

(f) Payee
Tax Representations. Each representation specified in the Schedule as being made by it for
the purpose of this Section 3(f) is accurate and true.

4. Agreements

Each party agrees with the other that, so long as either party has or may have any obligation
under this Agreement or under any Credit Support Document to which it is a party:—

(a)
Furnish Specified Information. It will deliver to the other party or, in certain cases under
subparagraph (iii) below, to such government or taxing authority as the other party reasonably
directs:—

(i) any forms, documents or certificates relating to taxation specified in the Schedule or
any Confirmation;

(ii) any other documents specified in the Schedule or any Confirmation; and

(iii) upon reasonable demand by such other party, any form or document that may be
required or reasonably requested in writing in order to allow such other party or its
Credit Support Provider to make a payment under this Agreement or any applicable Credit
Support Document without any deduction or withholding for or on account of any Tax or with
such deduction or withholding at a reduced rate (so long as the completion, execution or
submission of such form or document would not materially prejudice the legal or commercial
position of the party in receipt of such demand), with any such form or document to be
accurate and completed in a manner reasonably satisfactory to such other party and to be
executed and to be delivered with any reasonably required certification,

in each
case by the date specified in the Schedule or such Confirmation or, if none is specified,
as soon as reasonably practicable.

(b) Maintain
Authorisations. It will use all reasonable efforts to maintain in full force and effect
all
consents of any governmental or other authority that are required to be obtained by it with respect
to this
Agreement or any Credit Support Document to which it is a party and will use all reasonable efforts
to obtain
any that may become necessary in the future.

(c) Comply
with Laws. It will comply in all material respects with all applicable laws and orders to
which it may be subject if failure so to comply would materially impair its ability to perform its
obligations
under this Agreement or any Credit Support Document to which it is a party.

(d) Tax
Agreement. It will give notice of any failure of a representation made by it under Section
3(f) to be accurate and true promptly upon learning of such failure.

(e) Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon
it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is
incorporated,

					
	 	 	 	 	 
	 
	 	4
	 	ISDAÒ 1992

 

 

organised, managed and controlled, or considered to have its seat, or in which a branch or
office through which it is acting for me purpose of this Agreement is located (“Stamp Tax
Jurisdiction”) and will indemnify the other party against any Stamp Tax levied or imposed upon the
other party or in respect of the other party’s execution or performance of this Agreement by any
such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other
party.

5. Events of Default and Termination Events

(a)
Events of Default. The occurrence at any time with respect to a party or, if applicable,
any Credit Support Provider of such party or any Specified Entity of such party of any of the
following events constitutes an event of default (an “Event of Default”) with respect to such
party:—

(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under
this Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such
failure is not remedied on or before the third Local Business Day after notice of such
failure is given to the party;

(ii) Breach of Agreement. Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement or delivery
under Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or
obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the
party in accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the parry;

(iii)
Credit Support Default.

(1) Failure by the party or any Credit Support Provider of such party to comply with or
perform any agreement or obligation to be complied with or performed by it in
accordance
with any Credit Support Document if such failure is continuing after any applicable
grace
period has elapsed;

(2) the expiration or termination of such Credit Support Document or the failing or
ceasing
of such Credit Support Document to be in full force and effect for the purpose of this
Agreement
(in either case other than in accordance with its terms) prior to the satisfaction of
all obligations
of such party under each Transaction to which such Credit Support Document relates
without
the written consent of the other party; or

(3) the party or such Credit Support Provider disaffirms, disclaims, repudiates or
rejects, in
whole or in part, or challenges the validity of, such Credit Support Document;

(iv) Misrepresentation. A representation (other than a representation under Section 3(e) or
(f)) made or repeated or deemed to have been made or repeated by the party or any Credit
Support Provider of such party in this Agreement or any Credit Support Document proves to
have been incorrect or misleading in any material respect when made
or repeated or deemed
to have been made or repeated;

(v)
Default under Specified Transaction. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party (1) defaults under a Specified
Transaction and, after giving effect to any applicable notice requirement or grace period,
there occurs a liquidation of, an acceleration of obligations under, or an early
termination of, that Specified Transaction, (2) defaults, after giving effect to any
applicable notice requirement or grace period, in making any payment or delivery due on the
last payment, delivery or exchange date of, or any payment on early termination of, a
Specified Transaction (or such default continues for at least three Local Business Days if
there is no applicable notice requirement or grace period) or (3) disaffirms, disclaims,
repudiates or rejects, in whole or in part, a Specified Transaction (or such action is
taken by any person or entity appointed or empowered to operate it or act on its behalf);

(vi)
Cross Default. If “Cross Default” is specified in the Schedule as applying to the
party, the occurrence or existence of (1) a default, event of default or other similar
condition or event (however

					
	 	 	 	 	 
	 
	 	5
	 	ISDAÒ 1992

 

 

described) in respect of such party, any Credit Support Provider of such party or any
applicable Specified Entity of such party under one or more agreements or instruments
relating to Specified Indebtedness of any of them (individually or collectively) in an
aggregate amount of not less than the applicable Threshold Amount (as specified in the
Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable
at such time of being declared, due and payable under such agreements or instruments,
before it would otherwise have been due and payable or (2) a default by such party, such
Credit Support Provider or such Specified Entity (individually or collectively) in making
one or more payments on the due date thereof in an aggregate amount of not less than the
applicable Threshold Amount under such agreements or instruments (after giving effect to
any applicable notice requirement or grace period);

(vii)
Bankruptcy. The party, any Credit Support Provider of such party or any applicable
Specified Entity of such party: —

(1)
is dissolved (other than pursuant to a consolidation, amalgamation or merger);
(2) becomes insolvent or is unable to pay its debts or fails or admits in writing its
inability generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its creditors; (4)
institutes or has instituted against it a proceeding seeking a judgment of insolvency
or bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A) results in a
judgment of insolvency or bankruptcy or the entry of an order for relief or the
making of an order for its winding-up or liquidation or (B) is not dismissed,
discharged, stayed or restrained in each case within 30 days of the institution or
presentation thereof; (5) has a resolution passed for its winding-up, official
management or liquidation (other than pursuant to a consolidation, amalgamation or
merger); (6) seeks or becomes subject to the appointment of an administrator,
provisional liquidator, conservator, receiver, trustee, custodian or other similar
official for it or for all or substantially all its assets; (7) has a secured party
take possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured parry maintains
possession, or any such process is not dismissed, discharged, stayed or restrained,
in each case within 30 days thereafter; (8) causes or is subject to any event with
respect to it which, under the applicable laws of any jurisdiction, has an analogous
effect to any of the events specified in clauses (1) to (7) (inclusive); or (9) takes
any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts; or

(viii)
Merger Without Assumption. The party or any Credit Support Provider of such party
consolidates or amalgamates with, or merges with or into, or transfers all or
substantially all its assets to, another entity and, at the time of such consolidation,
amalgamation, merger or transfer: —

(1) the resulting, surviving or transferee entity fails to assume all the obligations
of such party
or such Credit Support Provider under this Agreement or any Credit Support Document to
which it or its predecessor was a party by operation of law or pursuant to an
agreement
reasonably satisfactory to the other party to this Agreement; or

(2) the benefits of any Credit Support Document fail to extend (without the consent of
the
other party) to the performance by such resulting, surviving or transferee entity of
its
obligations under this Agreement.

(b)
Termination Events. The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of any event specified
below constitutes an Illegality if the event is specified in (i) below, a Tax Event if the event
is specified in (ii) below or a Tax Event Upon Merger if the event is specified in (iii) below,
and, if specified to be applicable, a Credit Event

					
	 	 	 	 	 
	 
	 	6
	 	ISDAÒ 1992

 

 

Upon Merger if the event is specified pursuant to (iv) below or an Additional Termination
Event if the event is specified pursuant to (v) below:—

(i) Illegality. Due to the adoption of, or any change in, any applicable law after the date
on which
a Transaction is entered into, or due to the promulgation of, or any change in, the
interpretation by
any court, tribunal or regulatory authority with competent jurisdiction of any applicable
law after
such date, it becomes unlawful (other than as a result of a breach by the party of Section
4(b)) for
such party (which will be the Affected Party): —

(1) to perform any absolute or contingent obligation to make a payment or delivery or
to
receive a payment or delivery in respect of such Transaction or to comply with any
other
material provision of this Agreement relating to such Transaction; or

(2) to perform, or for any Credit Support Provider of such party to perform, any
contingent
or other obligation which the party (or such Credit Support Provider) has under any
Credit
Support Document relating to such Transaction;

(ii) Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of
competent jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect
to a party to this
Agreement) or (y) a Change in Tax Law, the party (which will be the Affected Party) will,
or there is a substantial likelihood that it will, on the next succeeding Scheduled Payment
Date (1) be required to pay to the other party an additional amount in respect of an
Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is required to be
deducted or withheld for or on account of a Tax (except in respect of interest under
Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect
of such Tax under Section 2(d)(i)(4) (other than by reason of
Section 2(d)(i)(4)(A) or
(B));

(iii) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding
Scheduled Payment Date will either (1) be required to pay an additional amount in respect
of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under
Section 2(e), 6(d)(ii) or 6(e)) or
(2) receive a payment from which an amount has been deducted or withheld for or on account
of
any Indemnifiable Tax in respect of which the other party is not required to pay an
additional amount
(other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a
party
consolidating or amalgamating with, or merging with or into, or transferring all or
substantially all
its assets to, another entity (which will be the Affected Party) where such action does not
constitute
an event described in Section 5(a)(viii);

(iv) Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as
applying to the party, such party (“X”), any Credit Support Provider of X or any applicable
Specified Entity of X consolidates or amalgamates with, or merges with or into, or transfers
all or substantially all its assets to, another entity and such action does not constitute
an event described in Section 5(a)(viii) but the creditworthiness of the resulting,
surviving or transferee entity is materially weaker than that of X, such Credit Support
Provider or such Specified Entity, as the case may be, immediately prior to such action
(and, in such event, X or its successor or transferee, as appropriate, will be the Affected
Party); or

(v) Additional Termination Event. If any “Additional Termination Event” is specified in the
Schedule or any Confirmation as applying, the occurrence of such event (and, in such event,
the Affected Party or Affected Parties shall be as specified for such Additional Termination
Event in the Schedule or such Confirmation).

(c) Event of Default and Illegality. If an event or circumstance which would otherwise constitute
or give rise to an Event of Default also constitutes an Illegality, it will be treated as an
Illegality and will not constitute an Event of Default.

					
	 
	 
	 	7
	 	ISDAÒ 1992

 

 

	6.  	Early Termination

(a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect
to
a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the
“Non-defaulting
Party”) may, by not more than 20 days notice to the
Defaulting Party specifying the relevant Event
of Default,
designate a day not earlier than the day such notice is effective as an Early Termination Date in
respect of
all outstanding Transactions. If, however, “Automatic Early Termination” is specified in the
Schedule as
applying to a party, then an Early Termination Date in respect of all outstanding Transactions will
occur
immediately upon the occurrence with respect to such party of an Event of Default specified in
Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
immediately
preceding the institution of the relevant proceeding or the presentation of the relevant petition
upon the
occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or,
to the extent
analogous thereto, (8).

(b)
Right to Terminate Following Termination Event.

(i) Notice. If a Termination Event occurs, an Affected Party will, promptly upon
becoming aware of it, notify the other party, specifying the nature of that Termination Event
and each Affected Transaction and will also give such other information about that
Termination Event as the other party may reasonably require.

(ii) Transfer to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(l) or
a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party, the Affected Party will, as a condition
to its right to designate an Early Termination Date under Section 6(b)(iv), use all
reasonable efforts (which will not require such party to incur a loss, excluding immaterial,
incidental expenses) to transfer within 20 days after it gives notice under Section 6(b)(i)
all its rights and obligations under this Agreement in respect of the Affected Transactions
to another of its Offices or Affiliates so that such Termination
Event ceases to exist.

If the Affected Party is not able to make such a transfer it will give notice to the other
party to that effect within such 20 day period, whereupon the other party may effect such a
transfer within 30 days after the notice is given under Section 6(b)(i).

Any such transfer by a party under this Section 6(b)(ii) will be subject to and conditional
upon the prior written consent of the other party, which consent will not be withheld if
such other party’s policies in effect at such time would permit it to enter into
transactions with the transferee on the terms proposed.

(iii) Two Affected Parties. If an Illegality under Section 5(b)(i)(l) or a Tax Event occurs
and there are two Affected Parties, each party will use all reasonable efforts to reach
agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to
avoid that Termination Event.

(iv)
Right to Terminate. If: —

(1) a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the
case may
be, has not been effected with respect to all Affected Transactions within 30 days after
an
Affected Party gives notice under Section 6(b)(i); or

(2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened Party is
not
the Affected Party,

either
party in the case of an Illegality, the Burdened Party in the case of a Tax Event
Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination
Event if there is more than one Affected Party, or the party which is not the Affected Party
in the case of a Credit Event Upon Merger or an Additional Termination Event if there is
only one Affected Party may, by not more than 20 days notice to the other party and provided
that the relevant Termination Event is then

					

	 
	 
	 	8
	 	ISDAÒ 1992

 

 

continuing, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all Affected Transactions.

	(c)	 	Effect of Designation.

(i) If notice designating an Early Termination Date is given under Section 6(a) or (b), the
Early Termination Date will occur on the date so designated, whether or not the relevant
Event of Default or Termination Event is then continuing.

(ii) Upon
the occurrence or effective designation of an Early Termination Date, no further
payments or deliveries under Section 2(a)(i) or
2(e) in respect of the Terminated
Transactions will be required to be made, but without prejudice to the other provisions of
this Agreement. The amount, if any, payable in respect of an Early Termination Date shall be
determined pursuant to Section 6(e).

	(d)	 	Calculations.

(i) Statement. On or as soon as reasonably practicable following the occurrence of an
Early Termination Date, each party will make the calculations on its part, if any,
contemplated by Section 6(e) and will provide to the other party a statement (1) showing, in
reasonable detail, such calculations (including all relevant quotations and specifying any
amount payable under Section 6(e)) and (2) giving details of the relevant account to which
any amount payable to it is to be paid. In the absence of written confirmation from the
source of a quotation obtained in determining a Market Quotation, the records of the party
obtaining such quotation will be conclusive evidence of the existence and accuracy of such
quotation.

(ii) Payment Date. An amount calculated as being due in respect of any Early Termination
Date under Section 6(e) will be payable on the day that notice of the amount payable is
effective (in the case of an Early Termination Date which is designated or occurs as a
result of an Event of Default) and on the day which is two Local Business Days after the day
on which notice of the amount payable is effective (in the case of an Early Termination Date
which is designated as a result of a Termination Event). Such amount will be paid together
with (to the extent permitted under applicable law) interest thereon (before as well as
after judgment) in the Termination Currency, from (and including) the relevant Early
Termination Date to (but excluding) the date such amount is paid, at
the Applicable Rate.
Such interest will be calculated on the basis of daily compounding and the actual number of
days elapsed.

(e) Payments on Early Termination. If an Early Termination Date occurs, the following provisions
shall apply based on the parties’ election in the Schedule of a payment measure, either “Market
Quotation”
or “Loss”, and a payment method, either the “First
Method” or the “Second Method.” If the parties
fail to
designate a payment measure or payment method in the Schedule, it will be deemed that “Market
Quotation”
or the “Second Method”, as the case may be, shall apply. The amount, if any, payable in respect of
an Early
Termination Date and determined pursuant to this Section will be subject to any Set-off.

	 	(i)	 	Events of Default. If the Early Termination Date results from an Event of Default: —

(1) First Method and Marker Quotation. If the First Method and Market Quotation apply,
the
Defaulting Party will pay to the Non-defaulting Party the excess, if a positive number,
of (A) the
sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the
Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts
owing
to the Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid
Amounts
owing to the Defaulting Party.

(2) First Method and Loss. If the First Method and Loss apply, the Defaulting Party will
pay
to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss in
respect
of this Agreement.

(3) Second Method and Market Quotation. If the Second Method and Market Quotation apply,
an amount will be payable equal to (A) the sum of the Settlement Amount (determined by
the

					
	 
	 
	 	9
	 	ISDAÒ 1992

 

 

Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency
Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a
negative number, the Non-defaulting Party will pay the absolute value of that amount to the
Defaulting Party.

(4)
Second Method and Loss. If the Second Method and Loss apply, an amount will be
payable equal to the Non-defaulting Party’s Loss in respect of this Agreement. If that amount
is a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is
a negative number, the Non-defaulting Party will pay the absolute value of that amount to the
Defaulting Party.

	 	(ii)	 	Termination Events. If the Early Termination Date results from a Termination
Event: —

(1) One
Affected Party. If there is one Affected Party, the amount payable will be determined
in accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if
Loss
applies, except that, in either case, references to the Defaulting Party and to the
Non-defaulting
Party will be deemed to be references to the Affected Party and the party which is not the
Affected Party, respectively, and, if Loss applies and fewer than all the Transactions are
being
terminated, Loss shall be calculated in respect of all Terminated Transactions.

(2) Two Affected Parties. If there are two Affected Parties: —

(A) if
Market Quotation applies, each party will determine a Settlement Amount in
respect of the Terminated Transactions, and an amount will be payable equal to (I) the
sum of (a) one-half of the difference between the Settlement Amount of the party with
the higher Settlement Amount (“X”) and the Settlement Amount of the party with the
lower Settlement Amount (“Y”) and (b) the Termination Currency Equivalent of the
Unpaid Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid
Amounts owing to Y; and

(B) if Loss applies, each party will determine its Loss in respect of this Agreement (or,
if fewer than all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference between
the Loss of the party with the higher Loss (“X”) and the Loss of the party with the lower
Loss (“Y”).

If the amount payable is a positive number, Y will pay it to X; if it is a negative number,
X will pay the absolute value of that amount to Y.

(iii)
Adjustment for Bankruptcy. In circumstances where an
Early Termination Date occurs because
“Automatic Early Termination” applies in respect of a party, the amount determined under this
Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to reflect
any payments or deliveries made by one party to the other under this Agreement (and retained by
such other party) during the period from the relevant Early Termination Date to the date for
payment determined under Section 6(d)(ii).

(iv) Pre-Estimate. The parties agree that if Market Quotation applies an amount recoverable
under this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is
payable for the loss of bargain and the loss of protection against future risks and except as
otherwise provided in this Agreement neither party will be entitled to recover any additional
damages as a consequence of such losses.

					
	 
	 
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	 	ISDAÒ 1992

 

 

	7.	 	Transfer

Subject to Section 6(b)(ii), neither this Agreement nor any interest or obligation in or
under this Agreement may be transferred (whether by way of security or otherwise) by either party
without the prior written consent of the other party, except that: —

(a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation
with, or merger with or into, or transfer of all or substantially all its assets to, another entity
(but without
prejudice to any other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any amount payable to it
from
a Defaulting Party under Section 6(e).

Any
purported transfer that is not in compliance with this Section will be void.

	8.	 	Contractual Currency

(a) Payment in the Contractual Currency. Each payment under this Agreement will be made in the
relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the
extent
permitted by applicable law, any obligation to make payments under this Agreement in the
Contractual
Currency will not be discharged or satisfied by any lender in any currency other than the
Contractual
Currency, except to the extent such tender results in the actual
receipt by the party to which
payment is owed,
acting in a reasonable manner and in good faith in converting the currency so tendered into the
Contractual
Currency, of the full amount in the Contractual Currency of all amounts payable in respect of this
Agreement.
If for any reason the amount in the Contractual Currency so received falls short of the amount in
the
Contractual Currency payable in respect of this Agreement, the party required to make the payment
will, to
the extent permitted by applicable law, immediately pay such additional amount in the Contractual
Currency
as may be necessary to compensate for the shortfall. If for any reason the amount in the
Contractual Currency
so received exceeds the amount in the Contractual Currency payable in respect of this Agreement,
the party
receiving the payment will refund promptly the amount of such excess.

(b)
Judgments. To the extent permitted by applicable law, if any judgment or order expressed in a
currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in
respect
of this Agreement, (ii) for the payment of any amount relating to any early termination in respect
of this
Agreement or (iii) in respect of a judgment or order of another court for the payment of any amount
described
in (i) or (ii) above, the party seeking recovery, after recovery in full of the aggregate amount to
which such
party is entitled pursuant to the judgment or order, will be entitled to receive immediately from
the other
party the amount of any shortfall of the Contractual Currency received by such party as a
consequence of
sums paid in such other currency and will refund promptly to the other party any excess of the
Contractual
Currency received by such party as a consequence of sums paid in such other currency if such
shortfall or
such excess arises or results from any variation between the rate of exchange at which the
Contractual
Currency is converted into the currency of the judgment or order for the purposes of such judgment
or order
and the rate of exchange at which such party is able, acting in a reasonable manner and in good
faith in
converting the currency received into the Contractual Currency, to purchase the Contractual
Currency with
the amount of the currency of the judgment or order actually received by such party. The term “rate
of
exchange” includes, without limitation, any premiums and costs of exchange payable in connection
with the
purchase of or conversion into the Contractual Currency.

(c) Separate Indemnities. To the extent permitted by applicable law, these indemnities constitute
separate and independent obligations from the other obligations in this Agreement, will be
enforceable as
separate and independent causes of action, will apply notwithstanding any indulgence granted by the
party
to which any payment is owed and will not be affected by judgment being obtained or claim or proof
being
made for any other sums payable in respect of this Agreement.

(d) Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a party to
demonstrate
that it would have suffered a loss had an actual exchange or purchase
been made.

					
	 
	 
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	 	ISDAÒ 1992

 

 

	9.	 	Miscellaneous

(a) Entire Agreement. This Agreement constitutes the entire agreement and understanding of the
parties
with respect to its subject matter and supersedes all oral communication and prior writings with
respect
thereto.

(b) Amendments. No amendment, modification or waiver in respect of this Agreement will be effective
unless in writing (including a writing evidenced by a facsimile transmission) and executed by each
of the
parties or confirmed by an exchange of telexes or electronic messages on an electronic messaging
system.

(c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the
obligations of the
parties under this Agreement will survive the termination of any Transaction.

(d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and
privileges provided in this Agreement are cumulative and not exclusive of any rights, powers,
remedies
and privileges provided by law.

	(e)	 	Counterparts and Confirmations.

(i) This Agreement (and each amendment, modification and waiver in respect of it) may
be executed and delivered in counterparts (including by facsimile transmission), each of
which will be deemed an original.

(ii) The parties intend that they are legally bound by the terms of each Transaction from
the moment they agree to those terms (whether orally or otherwise). A Confirmation shall
he entered into as soon as practicable and may he executed and delivered in counterparts
(including by facsimile transmission) or be created by an exchange of telexes or by an
exchange of electronic messages on an electronic messaging system, which in each case will
be sufficient for all purposes to evidence a binding supplement to
this Agreement. The
parties will specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation.

(f) No Waiver of Rights. A failure or delay in exercising any right, power or privilege in respect
of this
Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any
right, power
or privilege will not be presumed to preclude any subsequent or further exercise, of that right,
power or
privilege or the exercise of any other right, power or privilege.

(g) Headings. The headings used in this Agreement are for convenience of reference only and are not
to affect the construction of or to be taken into consideration in
interpreting this Agreement.

	10.	 Offices; Multibranch Parties

(a) If Section 10(a) is specified in the Schedule as applying, each party that enters into a
Transaction
through an Office other than its head or home office represents to the other party that,
notwithstanding the
place of booking office or jurisdiction of incorporation or organisation of such party, the
obligations of such
party are the same as if it had entered into the Transaction through its head or home office. This
representation
will be deemed to be repeated by such party on each date on which a Transaction is entered into.

(b) Neither party may change the Office through which it makes and receives payments or
deliveries
for the purpose of a Transaction without the prior written consent of
the other party.

(c) If a party is specified as a Multibranch Party in the Schedule, such Multibranch Party may make
and receive payments or deliveries under any Transaction through any Office listed in the Schedule,
and the
Office through which it makes and receives payments or deliveries with respect to a Transaction
will be
specified in the relevant Confirmation.

	11.	 Expenses

A Defaulting Party will, on demand, indemnify and hold harmless the other party for and
against all reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by
such other party by reason of the enforcement and protection of its rights under this Agreement or
any Credit Support Document

					
	 
	 
	 	12
	 	ISDAÒ 1992

 

 

to which the Defaulting Party is a party or by reason of the early termination of any
Transaction, including, but not limited to, costs of collection.

	12. 	Notices

(a) Effectiveness. Any notice or other communication in respect of this Agreement may be given in
any
manner set forth below (except that a notice or other communication under Section 5 or 6 may not be
given
by facsimile transmission or electronic messaging system) to the address or number or in accordance
with
the electronic messaging system details provided (see the Schedule) and will be deemed effective as
indicated:—

(i) if
in writing and delivered in person or by courier, on the date it is
delivered;

(ii) if sent by telex, on the date the recipient’s answerback is
received;

(iii) if sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the burden of
proving receipt will be on the sender and will not be met by a transmission report
generated by the sender’s facsimile machine);

(iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery is
attempted; or

(v) if sent by electronic messaging system, on the date that electronic message is
received,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a
Local Business Day or that communication is delivered (or attempted) or received, as applicable,
after the close of business on a Local Business Day, in which case that communication shall be
deemed given and effective on the first following day that is a Local Business Day.

(b) Change of Addresses. Either party may by notice to the other change the address, telex or
facsimile
number or electronic messaging system details at which notices or other communications are to be
given to
it.

	13. 	Governing Law and Jurisdiction

(a) Governing Law. This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

(b) Jurisdiction. With respect to any suit, action or proceedings relating to this Agreement
(“Proceedings”), each party irrevocably:—

(i) submits to the jurisdiction of the English courts, if this Agreement is expressed to
be governed by English law, or to the non-exclusive jurisdiction of the courts of the
State of New York and the United States District Court located in the Borough of Manhattan
in New York City, if this Agreement is expressed to be governed by the laws of the State
of New York; and

(ii) waives any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings have been
brought in an inconvenient forum and further waives the right to object, with respect to
such Proceedings, that such court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English law, the
Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or
any modification, extension or re-enactment thereof for the time being in force) nor will the
bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in
any other jurisdiction.

(c) Service of Process. Each party irrevocably appoints the Process Agent (if any) specified
opposite
its name in the Schedule to receive, for it and on its behalf,
service of process in any
Proceedings. If for any

					
	 
	 
	 	13
	 	ISDAÒ 1992

 

 

reason any party’s Process Agent is unable to act as such, such party will promptly notify
the other party and within 30 days appoint a substitute process agent acceptable to the other
party. The parties irrevocably consent to service of process given in the manner provided for
notices in Section 12. Nothing in this Agreement will affect the right of either party to serve
process in any other manner permitted by law.

(d) Waiver of Immunities. Each party irrevocably waives, to the fullest extent permitted by
applicable law, with respect to itself and its revenues and assets (irrespective of their use or
intended use), all immunity on the grounds of sovereignly or other similar grounds from (i) suit,
(ii) jurisdiction of any court, (iii) relief by way of injunction, order for specific performance
or for recovery of property, (iv) attachment of its assets (whether before or after judgment) and
(v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise
be entitled in any Proceedings in the courts of any jurisdiction and irrevocably agrees, to the
extent permitted by applicable law, that it will not claim any such immunity in any Proceedings.

	14.	  Definitions

As used in this Agreement:—

“Additional
Termination Event” has the meaning specified in Section 5(b).

“Affected Party” has the meaning specified in Section 5(b).

“Affected Transactions” means (a) with respect to any Termination Event consisting of an
Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of
such Termination Event and (b) with respect to any other
Termination Event, all Transactions.

“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled,
directly or indirectly, by the person, any entity that controls, directly or indirectly, the
person or any entity directly or indirectly under common control with the person. For this
purpose, “control” of any entity or person means ownership of a majority of the voting power of
the entity or person.

“Applicable Rate” means:—

(a) in respect of obligations payable or deliverable (or which would have been but for Section
2(a)(iii))
by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either party from and after
the date
(determined in accordance with Section 6(d)(ii)) on which that amount is payable, the Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

(d) in all other cases, the Termination Rate.

“Burdened
Party” has the meaning specified in Section 5(b).

“Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation of any law) that
occurs on or after the date on which the relevant Transaction is entered into.

“consent” includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Credit Event Upon Merger” has the meaning specified in Section 5(b).

“Credit Support Document” means any agreement or instrument that is specified as such in this
Agreement.

“Credit
Support Provider” has the meaning specified in the Schedule.

“Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual
cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant
amount plus 1% per annum.

					
	 
	 
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	 	ISDAÒ 1992

 

 

“Defaulting Party” has the meaning specified in Section 6(a).

“Early
Termination Date” means the date determined in
accordance with Section 6(a) or
6(b)(iv). 

“Event
of Default” has the meaning specified in Section 5(a) and, if
applicable, in the Schedule. 

“Illegality”
has the meaning specified in Section 5(b).

“Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the jurisdiction of the
government or taxation authority imposing such Tax and the recipient of such payment or a person
related to such recipient (including, without limitation, a connection arising from such recipient
or related person being or having been a citizen or resident of such jurisdiction, or being or
having been organised, present or engaged in a trade or business in such jurisdiction, or having or
having had a permanent establishment or fixed place of business in such jurisdiction, but excluding
a connection arising solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this Agreement or a Credit
Support Document).

“law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by
the practice of any relevant governmental revenue authority) and “lawful” and “unlawful” will be
construed accordingly.

“Local Business Day” means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to
any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or,
if not so specified, as otherwise agreed by the parties in writing or determined pursuant to
provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any
other payment, in the place where the relevant account is located and, if different, in the
principal financial centre, if any, of the currency of such payment, (c) in relation to any notice
or other communication, including notice contemplated under Section 5(a)(i), in the city specified
in the address for notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and (d) in relation to
Section 5(a)(v)(2), in the relevant locations for performance with respect to such Specified
Transaction.

“Loss” means, with respect to this Agreement or one or more Terminated Transactions, as the case
may be, and a party, the Termination Currency Equivalent of an amount that party reasonably
determines in good faith to be its total losses and costs (or gain, in which case expressed as a
negative number) in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at
the election of such party but without duplication, loss or cost incurred as a result of its
terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or
any gain resulting from any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid
duplication, if Section

6(e)(i)(l) or (3) or 6(e)(ii)(2)(A) applies Loss does not include a party’s
legal fees and out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably practicable, as of
the earliest date thereafter as is reasonably practicable. A party may (but need not) determine
its Loss by reference to quotations of relevant rates or prices from one or more leading dealers
in the relevant markets.

“Market Quotation” means, with respect to one or more Terminated Transactions and a party making
the determination, an amount determined on the basis of quotations
from Reference Market-makers. Each quotation will be for an amount, if any, that would be paid to such party (expressed as a
negative number) or by such party (expressed as a positive number) in consideration of an
agreement between such party (taking into account any existing Credit Support Document with
respect to the obligations of such party) and the quoting Reference Market-maker to enter into a
transaction (the “Replacement Transaction”) that would have the effect of preserving for such
party the economic equivalent of any payment or delivery (whether the underlying obligation was
absolute or contingent and assuming the satisfaction of each applicable condition precedent) by
the parties under Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
Transactions that would, but for the occurrence of the relevant Early Termination Date, have

					
	 
	 
	 	15
	 	ISDAÒ 1992

 

 

been
required after that date. For this purpose, Unpaid Amounts in respect of the Terminated
Transaction or group of Terminated Transactions are to be excluded but, without limitation, any
payment or delivery that would, but for the relevant Early Termination Date, have been required
(assuming satisfaction of each applicable condition precedent) after that Early Termination Date is
to be included. The Replacement Transaction would be subject to such documentation as such party
and the Reference Market-maker may, in good faith, agree. The party making the determination (or
its agent) will request each Reference Market-maker to provide its quotation to the extent
reasonably practicable as of the same day and time (without regard to different time zones) on or
as soon as reasonably practicable after the relevant Early
Termination Date. The day and time as of
which those quotations are to be obtained will be selected in good faith by the party obliged to
make a determination under Section 6(e), and, if each party is so obliged, after consultation with
the other. If more than three quotations are provided, the Market Quotation will be the arithmetic
mean of the quotations, without regard to the quotations having the highest and lowest values. If
exactly three such quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall be disregarded. If
fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of
such Terminated Transaction or group of Terminated Transactions
cannot be determined.

“Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant
amount.

“Non-defaulting
Party” has the meaning specified in Section 6(a).

“Office” means a branch or office of a party, which may be such party’s head or home office.

“Potential Event of Default” means any event which, with the giving of notice or the lapse of time
or both, would constitute an Event of Default.

“Reference Market-makers” means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the highest credit standing
which satisfy all the criteria that such party applies generally at the time in deciding whether
to offer or to make an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

“Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the party
is incorporated, organised, managed and controlled or considered to have its seat, (b) where an
Office through which the party is acting for purposes of this Agreement is located, (c) in which
the party executes this Agreement and (d) in relation to any payment, from or through which such
payment is made.

“Scheduled
Payment Date” means a date on which a payment or delivery is to be made under Section
2(a)(i) with respect to a Transaction.

“Set-off” means set-off, offset, combination of accounts, right of retention or withholding or
similar right or requirement to which the payer of an amount under Section 6 is entitled or
subject (whether arising under this Agreement, another contract, applicable law or otherwise) that
is exercised by, or imposed on, such payer.

“Settlement Amount” means, with respect to a party and any Early Termination Date, the sum of: —

(a) the Termination Currency Equivalent of the Market Quotations (whether positive or negative) for
each
Terminated Transaction or group of Terminated Transactions for which a Market Quotation is
determined;
and

(b) such party’s Loss (whether positive or negative and without reference to any Unpaid Amounts)
for
each Terminated Transaction or group of Terminated Transactions for which a Market Quotation cannot
be
determined or would not (in the reasonable belief of the party making the determination) produce a
commercially reasonable result.

“Specified Entity” has the meanings specified in the Schedule.

					
	 
	 
	 	16
	 	ISDAÒ 1992

 

 

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or
future, contingent or otherwise, as principal or surety or otherwise) in respect of borrowed
money.

“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an
agreement with respect thereto) now existing or hereafter entered into between one party to this
Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of such
party) and the other party to this Agreement (or any Credit Support Provider of such other party
or any applicable Specified Entity of such other party) which is a rate swap transaction, basis
swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option, foreign exchange transaction,
cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency
rate swap transaction, currency option or any other similar transaction (including any option with
respect to any of these transactions), (b) any combination of these transactions and (c) any other
transaction identified as a Specified Transaction in this Agreement or the relevant confirmation.

“Stamp Tax” means any stamp, registration, documentation or similar tax.

“Tax”
means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any government or other
taxing authority in respect of any payment under this Agreement other than a stamp, registration,
documentation or similar tax.

“Tax Event” has the meaning specified in Section 5(b).

“Tax Event Upon Merger” has the meaning specified in Section 5(b).

“Terminated
Transactions” means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all
Transactions (in either case) in effect immediately before the effectiveness of the notice
designating that Early Termination Date (or, if “Automatic Early Termination” applies, immediately
before that Early Termination Date).

“Termination
Currency” has the meaning specified in the Schedule.

“Termination Currency Equivalent” means, in respect of any amount denominated in the Termination
Currency, such Termination Currency amount and, in respect of any amount denominated in a currency
other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency
determined by the party making the relevant determination as being required to purchase such
amount of such Other Currency as at the relevant Early Termination Date, or, if the relevant
Market Quotation or Loss (as the case may be), is determined as of a later date, that later date,
with the Termination Currency at the rate equal to the spot exchange rate of the foreign exchange
agent (selected as provided below) for the purchase of such Other Currency with the Termination
Currency at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on
such date as would be customary for the determination of such a rate for the purchase of such
Other Currency for value on the relevant Early Termination Date or that later date. The foreign
exchange agent will, if only one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the parties.

“Termination Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified
to be applicable, a Credit Event Upon Merger or an Additional Termination Event.

“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if it were to fund or
of funding such amounts.

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate
of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to
such Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in
respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or
would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or
prior to such Early Termination Date and which has not been so settled as at such Early Termination
Date, an amount equal to the fair market

	 	 	 	 	 	 	 
	 

	 	 	17	 	 	ISDA® 1992

 

 

value of that which was (or would have been) required to be delivered as of the originally
scheduled date for delivery, in each case together with (to the extent permitted under applicable
law) interest, in the currency of such amounts, from (and including) the date such amounts or
obligations were or would have been required to have been paid or performed to (but excluding) such
Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated on the
basis of daily compounding and the actual number of days elapsed. The fair market value of any
obligation referred to in clause (b) above shall be reasonably determined by the party obliged to
make the determination under Section 6(e) or, if each party is so obliged, it shall be the average
of the Termination Currency Equivalents of the fair market values reasonably determined by both
parties.

IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	J. ARON & COMPANY
	 	 	 	 	 	COFFEYVILLE RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 /s/ John J. Lipinski	 	 
	 	 	 	 	 	 	 
	 

	 	(Name of Party)
	 	 	 	 	 	(Name of Party) 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 /s/ J. A. Resnick
	 	 	 	By:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 

	 	Date:
	 	 	 	 	 	Date:	 	 

	 	 	 	 	 	 	 
	 

	 	 	18	 	 	ISDA® 1992

 

 

Execution Copy

SCHEDULE

to the

ISDA MASTER AGREEMENT

dated as of

June 24, 2005

between

J. ARON & COMPANY,

a general partnership organized under the laws of the State of New York

(“J. Aron”),

and

COFFEYVILLE RESOURCES, LLC, 

a limited liability company organized
under the laws of the State of Delaware

(“Counterparty”)

For the purpose of this Agreement and any Confirmation entered into pursuant hereto, (i)
“Counterparty” means, unless otherwise indicated, Coffeyville Resources, LLC, and (ii) “other
party” when used in relation to J. Aron, means Counterparty, and when used in relation to
Counterparty, means J. Aron.

Part 1. Termination Provisions

	(a)	 	“Specified Entity”

	 	(i)	 	means, in relation to J. Aron, Goldman, Sachs & Co. and Goldman Sachs Capital
Markets, L. P. for the purpose of Section 5(a)(v), and shall not apply for purposes of
Sections 5(a)(vi), 5(a)(vii) and 5(b)(iv); and
	 
	 	(ii)	 	means, in relation to Counterparty, not applicable.

	(b)	 	“Specified Transaction”. The term “Specified Transaction” in Section 14 of the Agreement is
amended in its entirety as follows:
	 
	 	 	“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an
agreement with respect thereto) now existing or hereafter entered into between one party to
this Agreement (or any Credit Support Provider of such party or any applicable Specified
Entity of such party) and the other party to this Agreement (or any Credit Support Provider
of such other party or any applicable Specified Entity of such other party) (i) which is a
rate swap transaction, swap option, basis swap, forward rate transaction, commodity swap,
commodity option, commodity spot transaction, equity or equity index swap, equity or equity
index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, currency swap transaction,
cross-currency rate swap transaction, currency option, weather swap, weather derivative,
weather option, credit protection transaction, credit swap,

 

 

	 	 	credit default swap, credit default option, total return swap, credit spread transaction,
repurchase transaction, reverse repurchase transaction, buy/sell-back transaction,
securities lending transaction, or forward purchase or sale of a security, commodity or
other financial instrument or interest (including any option with respect to any of these
transactions) or (ii) which is a type of transaction that is similar to any transaction
referred to in clause (i) that is currently, or in the future becomes, recurrently entered
into the financial markets (including terms and conditions incorporated by reference in
such agreement) and that is a forward, swap, future, option or other derivative on one or
more rates, currencies, commodities, equity securities or other equity instruments, debt
securities or other debt instruments, or economic indices or measures of economic risk or
value, (b) any combination of these transactions and (c) any other transaction identified
as a Specified Transaction in this agreement or the relevant confirmation.”
	 
	(c)	 	The “Cross Default” provisions of
Section 5(a)(vi) will apply to J. Aron and will apply to
Counterparty, provided that (i) the phrase “or becoming capable at such time of being
declared” shall be deleted from clause (1) of such Section 5(a)(vi); and (ii) the following
language shall be added to the end thereof: “Notwithstanding the foregoing, a default under
subsection (2) hereof shall not constitute an Event of Default if (i) the default was caused
solely by error or omission of an administrative or operational nature; (ii) funds were
available to enable the party to make the payment when due; and (iii) the payment is made
within two Local Business Days of such party’s receipt of written notice of its failure to
pay.”
	 
	 	 	“Specified Indebtedness” will have the meaning specified in Section 14 of the
Agreement.
	 
	 	 	“Threshold Amount” means in relation to J. Aron, US$50,000,000 (or its equivalent in
another currency) and in relation to Counterparty, US$10,000,000 (or its equivalent in
another currency).
	 
	(d)	 	The “Credit Event Upon Merger” provisions of Section 5(b)(iv) will apply to J. Aron and
will apply to Counterparty.
	 
	(e)	 	The “Automatic Early Termination” provision of Section 6(a) will not apply to either J. Aron or
Counterparty.
	 
	(f)	 	Payments on Early Termination. For the purpose of Section 6(e):

	 	(i)	 	Loss will apply.
	 
	 	(ii)	 	The Second Method will apply.

	(g)	 	“Termination Currency” means United States Dollars.
	 
	(h)	 	The parties agree to amend the following subsections of Section 5(a) as follows:

	 	(i)	 	clause (i) in the third line of this clause, delete the word “third” and
insert the word “first;” and
	 
	 	(ii)	 	clause (vii)(4):  delete, following the word “liquidation” in line 9, the
clause beginning with “and, in the case of” and ending with
the word “thereof” in line
13; and in Clause (vii)(7):  delete in line 20 of this clause, the number “30” and
insert the number “60”.

	(i)	 	Additional Termination Event will apply. It will constitute an Additional Termination Event
hereunder upon the occurrence of any of the following events:

2

 

	 	(i)	 	Counterparty’s obligations to J. Aron under this Agreement:

	 	(A)	 	cease to be secured pursuant to the Collateral Documents (as
such term is defined in the Loan Agreement (as defined below)) at any time,
except to the extent such obligations to J. Aron are secured by the J. Aron LOC
(as defined below); or
	 
	 	(B)	 	cease to be equally and ratably secured with Counterparty’s
obligations to the Secured Parties (as defined in the Loan Agreement) holding a
first priority security interest under the Loan Agreement pursuant to
the Collateral Documents, other than those obligations that are secured by an
J. Aron LOC; or
	 
	 	(C)	 	shall at any time cease to rank at least pari passu with
Counterparty’s obligations to the Secured Parties holding a first priority
security interest under the Loan Agreement pursuant to the Collateral
Documents, other than those obligations that are secured by an J. Aron LOC; or
	 
	 	(D)	 	cease to be guaranteed pursuant to the Guaranty dated June 24,
2005 from the Guarantors in favor of J. Aron (the “Guaranty”) at any time for
any reason.

	 	(ii)	 	Either (a) Counterparty shall fail to maintain with J. Aron one or more
letters of credit in the form set forth in Exhibit A hereto that have an aggregate
face amount of at least US$150,000,000 (the “J. Aron LOC”) (or such other form as J.
Aron in its reasonable discretion may accept) from banks reasonably acceptable to J.
Aron (it being understood that a Letter of Credit delivered under any senior credit
facility of Counterparty arranged by an Affiliate of J. Aron shall be deemed to be
from a bank acceptable to J. Aron or (b) the J. Aron LOC ceases to be in full force
and effect.

       For the purpose of the foregoing Termination Events, the Affected Party shall be
Counterparty.

As used herein and throughout this Agreement, “Loan Agreement” means that certain First Lien Credit
and Guaranty Agreement dated as of June 24, 2005 among Coffeyville Resources, LLC, Coffeyville
Pipeline, Inc., Coffeyville Refining and Marketing, Inc., Coffeyville Nitrogen Fertilizers, Inc.,
Coffeyville Crude Transportation, Inc., Coffeyville Terminal, Inc. and CL JV Holdings, LLC as
Holdings, certain Subsidiaries of Holdings as Guarantors, Various Lenders, Goldman Sachs Credit
Partners L.P. and Credit Suisse, Cayman Islands Branch as Joint Lead Arrangers and Joint
Bookrunners, and Goldman Sachs Credit Partners L.P. as Syndication Agent, Administrative and
Collateral Agent, the other Credit Parties signatory thereto, the Lenders party thereto, and as in
effect on the date hereof and without giving effect to any amendments, modifications or supplements
thereto, or waiver or termination thereof, after the date hereof; and pursuant to which J. Aron has
entered into an intercreditor agreement with the Administrative Agent under the Loan Agreement and
the Administrative Agent (the “Intercreditor Agreement”); provided that if J. Aron (in its sole
discretion) consents to such amendment, modification, supplement or waiver of the Loan Agreement on
or after the date hereof or such amendment, modification, supplement or waiver is permitted under
the Intercreditor Agreement without such consent, then the term “Loan Agreement” shall refer to the
Loan Agreement as so amended, modified, supplemented or waived.

	(j)	 	Early Termination. Notwithstanding anything to the contrary in Section 6(a) or Section 6(b),
the parties agree that, except with respect to Transactions (if any) that are subject to
Automatic Early Termination under Section 6(a), the Non-defaulting Party or the party that is
not the Affected Party (in a case where a Termination Event under Section 5(b)(iv) , or an
Additional Termination Event for which there is a single Affected Party, has occurred) is not
required to

3

 

	 	 	terminate the Transactions on a single day, but rather may terminate the
Transactions over a commercially reasonable period of time (not to exceed ten days)
(the “Early Termination Period”). The last day of the Early Termination Period shall be
the Early Termination Date for purposes of Section 6; provided, however, that interest
shall accrue on the Transactions terminated during the Early Termination Period prior
to the Early Termination Date at the Non-default Rate.

Part 2. Tax Representations

	(a)	 	Payer Tax Representations. For the purposes of Section 3(e), J. Aron and Counterparty
make the following representation:
	 
	 	 	It is not required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any deduction or
withholding for or on account of any Tax from any payment (other than interest under
Section 2(e), 6(d)(ii), or 6(e) of this Agreement) to be made by it to the other party
under this Agreement. In making this representation, it may rely on (i) the accuracy of
any representations made by the other party pursuant to Section 3(f) of this Agreement,
(ii) the satisfaction of the agreement contained in
Section 4(a)(i) or 4(a)(iii) of
this Agreement, and the accuracy and effectiveness of any document provided by the
other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement, and (iii) the
satisfaction of the agreement of the other party contained in Section 4(d) of this
Agreement, provided that it shall not be a breach of this representation where reliance
is placed on clause (ii) and the other party does not deliver a form or document under
Section 4(a)(iii) by reason of material prejudice to its legal or commercial position.
	 
	(b)	 	Payee Tax Representations. For the purposes of
Section 3(f), Counterparty makes the
following representations:

	 	(i)	 	It is not acting as an agent or intermediary for any foreign person with
respect to the payments received or to be received by it in connection with this
Agreement.
	 
	 	(ii)	 	It is a United States person within the meaning of Section 7701(a)(30) of
the Internal Revenue Code of 1986, as amended.

Part 3. Agreement to Deliver Documents

     (a) For the purpose of Section 4(a), Tax forms, documents, or certificates to be
delivered are:

	 	 	 	 	 
	Party required to deliver	 	 	 	Date by which
	document	 	Forms/Documents/Certificates	 	to be delivered
	Counterparty

	 	United States Internal Revenue
Service Form W-9, or any successor
form
	 	(i) On a date which is before the first
Scheduled Payment Date under this
Agreement, (ii) promptly upon
reasonable demand by J. Aron, and
(iii) promptly upon learning that any such form previously provided by
Counterparty has become obsolete,
incorrect, or ineffective.

4

 

     (b) Other documents to be delivered are:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party required	 	 	 	Date by which to be	 	Section 3(d)
	to deliver	 	Form/Document/Certificate	 	delivered. 	 	Representation
	J. Aron and

Counterparty

	 	Evidence of authority of signatories
	 	Upon or promptly
following execution of
this Agreement
	 	Yes
	 
	 	 	 	 	 	 
	J. Aron and

Counterparty

	 	Any Credit Support Document

specified in Part 4(f) herein
	 	Upon execution of this
Agreement
	 	No
	 
	 	 	 	 	 	 
	J. Aron and

Counterparty

	 	Most recent annual audited and
quarterly financial statements of the
party or, with respect to J. Aron, its
Credit Support Provider
	 	Promptly following

reasonable demand by

the other party
	 	Yes
	 
	 	 	 	 	 	 
	Counterparty

	 	Certified resolutions of its board of
directors or other governing body
	 	Upon execution of this
Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Counterparty

	 	Legal opinion with respect to
Counterparty
	 	Upon execution of this
Agreement
	 	No

Part 4. Miscellaneous

	(a)	 	Addresses for Notices. For the purpose of Section 12(a):

	 	(i)	 	Address for notices or communications to J. Aron:

	 	 	 	 	 	 	 
	 

	 	Address:
	 	J. Aron & Company	 	 
	 

	 	 	 	85 Broad Street	 	 
	 

	 	 	 	New York, New York 10004	 	 
	 
	 	 	 	 	 	 
	 

	 	OIL	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Energy Operations	 	 
	 
	 	 	 	 	 	 
	 

	 	Telephone:
	 	(212) 357-0326	 	 
	 
	 	 	 	 	 	 
	 

	 	Facsimile:
	 	(212) 493-9849	 	 

	 	(ii)	 	Address for notices or communications to Counterparty:

Address:

5

 

Attention:

Telephone:

Facsimile:

	(b)	 	Process Agent. For the purpose of Section 13(c):
	 
	 	 	J. Aron appoints as its Process Agent, not applicable.
	 
	 	 	Counterparty appoints as its Process Agent: in the Borough of Manhattan, City, County and
State of New York:
	 
	 	 	C.T. Corporation System

111 Eighth Avenue

13th Floor

New York, New York 10011
	 
	(c)	 	Offices. The provisions of Section 10(a) will apply to this Agreement.
	 
	(d)	 	Multibranch Party. For the purpose of Section 10(c):
	 
	 	 	J. Aron is not a Multibranch Party.
	 
	 	 	Counterparty is not a Multibranch Party.
	 
	(e)	 	Calculation Agent. The Calculation Agent is J. Aron.
	 
	(g)	 	Credit Support Document. Any guaranty or other form of credit support provided on behalf of
Counterparty at any time shall constitute a Credit Support Document with respect to the
obligations of Counterparty. Details of any other Credit Support Document, each of which is
incorporated by reference in, and made part of, this Agreement and each Confirmation (unless
provided otherwise in a Confirmation) as if set forth in full in this Agreement or such
Confirmation:

	 	(i)	 	Guaranty by The Goldman Sachs Group, Inc. (“Goldman Group”) in favor of
Counterparty as beneficiary thereof shall constitute a Credit Support Document with
respect to the obligations of J. Aron.
	 
	 	(ii)	 	The Collateral Documents (as defined in the Loan Agreement) shall constitute
Credit Support Documents with respect to the obligations of Counterparty.
	 
	 	(iii)	 	The Intercreditor Agreement.
	 
	 	(iv)	 	The Guaranty.

	(g)	 	Credit Support Provider.
	 
	 	 	Credit Support Provider means in relation to J. Aron, Goldman Group.
	 
	 	 	Credit Support Provider means in relation to Counterparty, the Guarantors (as defined in
the Guaranty) and any party that at any time provides a guaranty or other form of credit
support on behalf of Counterparty but shall not include any issuer of the J. Aron LOC;
provided that only

6

 

	 	 	Guarantors that constitute Holdings or Significant Subsidiaries (as defined in the Loan
Agreement) shall be deemed to be Credit Support Providers it being understood that each of
Coffeyville Resources Nitrogen Fertilizers, LLC, Coffeyville Resources Refining and
Marketing, LLC, and Coffeyville Resources Crude Transportation, LLC, shall all be
considered Significant Subsidiaries.

	(h)	 	Governing Law. Section 13(a) is hereby replaced with the following:

	 	(a)	 	Governing Law. This Agreement and each Transaction entered into hereunder
will be governed by, and construed and enforced in accordance with, the law of the
State of New York without reference to its choice of law doctrine.

	(i)	 	Jurisdiction. Section 13(b) is hereby amended by:

	 	(i)	 	deleting in the second line of subparagraph (i) thereof the word “non-”; and
	 
	 	(ii)	 	deleting the final paragraph thereof.

	(j)	 	Netting of Payments. Subparagraph (ii) of Section 2(c) will not apply to Transactions.
Notwithstanding anything to the contrary in Section 2(c), unless otherwise expressly agreed
by the parties, the netting provided for in Section 2(c) will not apply separately to any
pairings of branches or Offices through which the parties make and receive payments or
deliveries.

Part 5. Other Provisions

	(a)	 	Accuracy of Specified Information. Section 3(d) is hereby amended by adding in the third
line thereof after the word “respect” and before the period, the phrase “or, in the case of
audited or unaudited financial statements, a fair presentation of the financial condition of
the relevant person.”
	 
	(b)	 	Scope of Agreement. Any transaction outstanding between the parties at the date this
Agreement comes into force or entered into by the parties at or after the date this Agreement
comes into force that is a transaction between the parties of the type set forth in the
definition of “Specified Transaction” herein unless otherwise specified in the relevant
confirmation relating to such Specified Transaction or unless otherwise agreed by the
parties, will constitute a “Transaction” for the purposes of this Agreement.
	 
	(c)	 	Additional Representations. The parties agree to amend Section 3 by adding new Sections
3(g), (h), (i), and (j) as follows:

	 	(g)	 	Eligible Contract Participant. It is an “eligible contract participant” as
defined in the U.S. Commodity Exchange Act.
	 
	 	(h)	 	Non-Reliance. It is acting for its own account, and it has made its own
independent decisions to enter into that Transaction and as to whether that
Transaction is appropriate or proper for it based upon its own judgment and upon
advice from such advisers as it has deemed necessary. It is not relying on any
communication (written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that information
and explanations related to the terms and conditions of a Transaction shall not be
considered investment advice or a recommendation to enter into

7

 

	 	 	 	that Transaction. No communication (written or oral) received from the other
party shall be deemed to be an assurance or guarantee as to the expected results
of that Transaction.

	 	(i)	 	Assessment and Understanding. It is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and
understands and accepts, the terms, conditions and risks of that Transaction. It is
also capable of assuming, and assumes, the risks of that Transaction.
	 
	 	(j)	 	Status of Parties. The other party is not acting as a fiduciary for or an
adviser to it in respect of that Transaction.

	(d)	 	Additional Representations of Counterparty. In addition to the representations specified in
Section 3 of the Agreement, Counterparty represents to J. Aron at all times until the
termination of this Agreement that:

	 	(i)	 	this Agreement shall be deemed to constitute a Hedging Contract (as such
term is defined in the Loan Agreement) under the Loan Agreement,
	 
	 	(ii)	 	the obligations of Counterparty to J. Aron under this Agreement shall be
deemed to constitute Secured Obligations (as such term is defined in the Pledge
and Security Agreement (as such term is defined in the Loan Agreement),
	 
	 	(iii)	 	this Transaction is permitted under the Loan Agreement,
	 
	 	(iv)	 	Agent, on behalf of itself and the Counterparty, has the power to execute
this Agreement and any other documentation relating to this Agreement and to deliver
this Agreement and any other documentation relating to this Agreement that it is
required by this Agreement to deliver,
	 
	 	(v)	 	Agent, on behalf of itself and the Counterparty, is authorized to enter into and
perform the Transactions contemplated by this Agreement and to bind Counterparty in
connection with all obligations in connection therewith and under this Agreement,
including without limitation any Credit Support Documents,
	 
	 	(vi)	 	such execution, delivery and performance by Agent on behalf
of itself and the Counterparty does not conflict with any law or regulation applicable to
Counterparty, any provision of the constitutional documents of Counterparty, any
order or judgment of any court or other agency of government applicable to
Counterparty or any of the assets of Counterparty or any contractual restriction
binding on or affecting Counterparty or any assets of Counterparty, and
	 
	 	(vii)	 	J. Aron is entitled to rely conclusively upon any request,
instruction, certificate, representation or other document furnished to J. Aron, or action taken, by any
employee or agent of the Agent in connection with this Agreement and the
Transactions hereunder, as though the same had been given or made by Counterparty,
until such time as Counterparty delivers written notice to J. Aron affirmatively
revoking, terminating or modifying such authorization.

	(e)	 	Additional Agreements of Counterparty. In addition to the agreements specified in Section 4
of the Agreement, Counterparty agrees with J. Aron at all times that any Transaction is
outstanding under this Agreement that it shall not agree to modify the language of the loss
payee

8

 

	 	 	endorsement to Counterparty’s insurance policy from that set forth in Exhibit B without
the consent of J. Aron, not to be unreasonably withheld or delayed, but it may modify the
limit of coverage in accordance with Section 5.5 of the Credit Agreement and Section 7.7 of
the Intercreditor Agreement.
	 
	(f)	 	Transfer. The following amendments are hereby made to Section 7:

	 	(i)	 	In the third line, insert the words “which consent will not be
arbitrarily withheld or delayed,” immediately before the word “except”; and
	 
	 	(ii)	 	in clause (a), insert the words “or reorganization, incorporation,
reincorporation, or reconstitution into or as,” immediately before the word “another.”

	(g)	 	Consent to Recording. Each party consents to the recording of telephone conversations
between the trading, marketing and other relevant personnel of the parties, with or without
the use of a warning tone, and their Affiliates in connection with this Agreement or any
potential Transaction.
	 
	(h)	 	Severability. If any term, provision, covenant, or condition of this Agreement or the
application thereof to any party or circumstance, shall be held to be invalid or
unenforceable (in whole or in part) for any reason, the remaining terms, provisions,
covenants, and conditions hereof shall continue in full force and effect as if this Agreement
had been executed with the invalid or unenforceable portion eliminated, so long as this
Agreement as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter of this Agreement and the deletion of such
portion of this Agreement will not substantially impair the respective benefits or
expectations of the parties to this Agreement; provided, however, that this Agreement shall
be deemed to be invalid and unenforceable if an provision of
Section 1(c), 2, 5, 6 or 13 (or
any definition or provision in Section 14 to the extent it
relates to, or is used in or in
connection with, any such Section) shall be so held to be invalid or unenforceable.
	 
	(i)	 	Set-off. The parties agree to amend Section 6 by
adding a new Section 6(f) as follows:
	 
	 	 	“(f) Upon the occurrence of an Event of Default or Termination Event under Section 5(b)(iv)
with respect to a party (“X”), the other party (“Y”) will have the right (but not be
obliged) without prior notice to X or any other person to set-off or apply any obligation
of X owed to Y (or any Affiliate of Y) (whether or not matured or contingent and whether or
not arising under this Agreement, and regardless of the currency, place of payment or
booking office of the obligation) against any obligation of Y (or any Affiliate of Y) owed
to X (whether or not matured or contingent and whether or not arising under this Agreement,
and regardless of the currency, place of payment or booking office of the obligation), Y
will give notice to the other party of any set-off effected under
this Section 6(f).
	 
	 	 	Amounts (or the relevant portion of such amounts) subject to set-off may be converted by Y
into the Termination Currency at the rate of exchange at which such party would be able,
acting in a reasonable manner and in good faith, to purchase the relevant amount of such
currency.
	 
	 	 	If any obligation is unascertained, Y may in good faith estimate that obligation and
set-off in respect of the estimate, subject to the relevant party accounting to the other
when the obligation is ascertained.

9

 

	 	 	Nothing in this Section 6(f) shall be effective to create a charge or other security
interest. This Section 6(f) shall be without prejudice and in addition to any right of
set-off, combination of accounts, lien or other right to which any party is at any time
otherwise entitled (whether by operation of law, contract or otherwise).”
	 
	(j)	 	Definitions. This Agreement, each Confirmation and
each Transaction is subject to the 1993
ISDA Commodity Derivatives Definitions as supplemented by the 2000 Supplement to the 1993
ISDA Commodity Derivatives Definitions, as published by ISDA (together, the “Definitions”),
and will be governed in all respects by the Definitions (except that references to “Swap
Transactions” in the Definitions will be deemed to be references
to “Transactions”). The
Definitions are incorporated by reference in, and made part of, this Agreement and each
Confirmation as if set forth in full in this Agreement and such Confirmations. In the event
of any inconsistency between the provisions of this Agreement and the Definitions, this
Agreement will prevail. Subject to Section l(b), in the event of any inconsistency between
the provisions of any Confirmation, this Agreement, and the Definitions, such Confirmation
will prevail for the purpose of the relevant Transaction.
	 
	(k)	 	Waiver of Trial by Jury. Each party hereby irrevocably waives any and all right to trial by
jury in any Proceeding.
	 
	(l)	 	Confirmations. Counterparty shall be deemed to have agreed to the terms contained in any
Confirmation (as amended and revised) sent by J. Aron to Counterparty unless Counterparty
objects to such terms within three (3) Business Days of receipt.
	 
	(m)	 	Collateral. So long as any Transaction is outstanding under this Agreement and until
termination of the obligations of Counterparty under this Agreement,
J. Aron shall have the
benefit of a first priority lien in the collateral identified in the Collateral Documents
(for all Obligations (as defined Loan Agreement) that are not secured
by the J. Aron LOC).
Other than as provided in the Intercreditor Agreement, no such Collateral shall be released
by Counterparty or any other owner of such Collateral without the
prior written consent of J.
Aron.

Part 6. Disruption Fallbacks

	 	 	The following “Disruption Fallbacks” specified in Section 7.5(c) of the Definitions
shall apply, in the following order, except as otherwise specified in the relevant
Confirmation:

	 	(i)	 	“Fallback Reference Price”;
	 
	 	(ii)	 	“Postponement”, with two (2) Commodity Business Days as
the Maximum Days of Disruption;
	 
	 	(iii)	 	Negotiated Fallback;
	 
	 	(iv)	 	“Fallback Reference Dealers”; and
	 
	 	(v)	 	“Calculation Agent Determination”.

10

 

IN WITNESS WHEREOF, the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	 	 	 	 	 	 	 	 	 
	J. ARON & COMPANY	 	 	 	COFFEYVILLE RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ J. A. Resnick	 	 	 	/s/ John J. Lipinski	 	 
	 	 	 	 	 	 	 
	Name:

	 	Jeff Resnick
	 	 	 	Name: 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	Managing Director
	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 

11

 

Exhibit A

WE HEREBY ESTABLISH OUR IRREVOCABLE STAND-BY LETTER OF CREDIT NO.                    

IN FAVOR OF:

J. ARON & COMPANY

85 BROAD STREET

NEW YORK, NY 10004

Attn: [Sherry Lankford]

Phone: (212)902-1287

Telex: 6720148 GSPNY

BY ORDER AND FOR THE ACCOUNT OF:

(insert full style and address)

FOR AN AMOUNT OF:

US DOLLARS                                        

(UNITED STATES DOLLARS                                         )

AVAILABLE FOR PAYMENT AT SIGHT UPON PRESENTATION AT OUR COUNTERS IN (insert city and country where
documents are to be presented) OF THE FOLLOWING DOCUMENT:

STATEMENT
SIGNED BY A PURPORTEDLY AUTHORIZED REPRESENTATIVE OF J. ARON AND COMPANY CERTIFYING THAT
(insert your company name) HAS NOT PERFORMED IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT(S)
BETWEEN J. ARON AND COMPANY AND (insert your company name) AND THE
AMOUNT BEING DRAWN OF USD
                    
DOES NOT EXCEED THAT AMOUNT WHICH J. ARON AND COMPANY IS ENTITLED TO
DRAW.

SPECIAL CONDITIONS:

	1.	 	PARTIAL AND MULTIPLE DRAWINGS ARE PERMITTED.
	 
	2.	 	ALL CHARGES RELATED TO THIS LETTER OF CREDIT ARE FOR OPENER’S ACCOUNT.
	 
	3.	 	DOCUMENTS MUST BE PRESENTED NOT LATER THAN (insert expiry date) OR IN
THE EVENT OF FORCE MAJEURE INTERRUPTING OUR BUSINESS, WITHIN THIRTY (30) DAYS AFTER RESUMPTION OF
OUR BUSINESS, WHICHEVER IS LATER.

UPON RECEIPT OF DOCUMENTS ISSUED IN COMPLIANCE WITH THE TERMS OF THIS CREDIT, WE HEREBY IRREVOCABLY
UNDERTAKE TO COVER YOU AS PER YOUR INSTRUCTIONS WITH VALUE ONE BANK
WORKING DAY.

THIS STANDBY CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993
REVISION), I.C.C. PUBLICATION 500.

[Name of Issuing Bank]

12

 

Exhibit B

Part
1. Proposed J. Aron Wording (Draft June 21,2005)

“Agreement Number                     ”

Attaching to Policy Number EL 0502010
 Issued to Coffeyville Resources LLC

Effective
from Date to be agreed.

It is hereby understood and agreed that the following entity shall be included as Additional Named
Insured hereon insofar as their respective Interests apply as Loss
Payee:

J. Aron & Company (“J. Aron”)

It is understood and agreed that coverage as afforded hereunder will only apply for business
interruption and only in connection with commodity price swap transactions relating to prices of
crude oil, heating oil and gasoline (hereinafter collectively referred to as the “Transaction”) as
entered into under a standard form ISDA Master Agreement between Coffeyville and J. Aron (together
with confirmation for the transaction and the schedule thereto, the “ISDA Agreement”) for the
purposes of hedging Coffeyville’s exposure to the relevant commodity prices which it incurs in
connection with refining of crude oil into the refined products of heating oil or gasoline, which
business interruption is the result of direct physical loss or damage to the oil refinery located
in Coffeyville, Kansas, as insured against by the terms of this policy.

It is
agreed by Underwriters and the Insured that recovery under this Policy by J. Aron as loss
payee will apply only if the two criteria below apply:

i) There must be a recoverable loss under the business interruption section of this Policy;

ii) The applicable crack-spread margin for a particular quarter must be greater than the
applicable fixed price (published), triggering a due payment from Coffeyville to J. Aron under the
Transaction (The formula by which each quarterly margin is calculated and the table that outlines
both the fixed crack spread and the quantity exposed is attached to this Agreement and defines the
fixed price exposure under this Agreement); and

Notwithstanding anything that may be contained within this policy to the contrary, it is understood
and agreed that solely with respect to recovery under this Policy by
J. Aron, the following
amendments shall apply:

1) The
Limit of Liability in respect of recovery under this Policy in respect of J. Aron shall be an
amount of USD 300,000,000, which shall be a ground up sublimit within, and not in addition
to, the Limit of Liability applicable to this Policy for Business
Interruption.

2) Underwriters hereon have the benefit of the application of a 90 day period before any
payment of loss is made under the term of clause 5 below.

13

 

3) The Period of Indemnity hereon applicable to a Business Interruption loss to this policy
resulting from the terms of the Transaction, after the application of the Time Element Deductible,
shall not exceed a Period of Indemnity of Twenty-Four (24) months.

4) It is understood and agreed that irrespective of the aforementioned Period of Indemnity,
any Business Interruption loss hereon payable to J. Aron resulting from the terms of the
Transaction shall not exceed the Limit of Liability as set forth in
item 1) above.

5) The payment of any loss amount hereunder resulting from the terms of the Transaction shall be
payable direct to J. Aron as Loss Payee. Underwriters further agree to make loss payment (s) direct
to J. Aron at the inception of each quarterly Determination Period specified in the Transaction to
indemnify J. Aron for the amount due as calculated as the difference between the agreed Fixed Price
calculation and the Floating Price Components “(A)” and/or “(B)” as applicable, as specified within
the specific terms of the Transaction irrespective of the status of the actual settlement of such
loss by Underwriters.

6) The terms and conditions for Business Interruption loss hereunder shall be applied solely in
accordance with the terms and conditions of this Agreement, irrespective of anything that may be
contained within the Business Interruption Section of this Policy to the contrary.

All other Terms and Conditions Remain Unchanged

14

 

Execution Copy

ASSIGNMENT AND NOVATION OF TRANSACTIONS

FOR VALUE RECEIVED AND PURSUANT TO THE TERMS HEREOF, Coffeyville Acquisition LLC, (“AcquisitionCo”)
hereby assigns and novates to Coffeville Resources, LLC (“Coffeyville”), and Coffeyville hereby
accepts such assignment and novation and assumes all of AcquisitionCo’s right, title and interest
in and to those certain crack spread swap transactions effective as of June 13, 2005 (collectively,
the “Transactions”) between AcquisitionCo and J. Aron & Company (“J. Aron”) with such assignment,
novation and acceptance effective June 24, 2005 (the
“Effective Date”).

AcquisitionCo hereby (i) represents and warrants that its assignment of its rights, title and
interest in and to the Transactions is free and clear of any lien or encumbrance whatsoever and
that it has the power and authority to effect the assignment, novation and transfer of the
Transactions and to execute this Assignment and Novation; and (ii) releases J. Aron from all
obligations under the Transactions incurred on and after the
Effective Date.

Coffeyville hereby (i) represents and warrants that it has the power and authority to accept the
assignment, novation and transfer of the Transactions and to execute this Assignment and Novation;
and (ii) agrees to be bound by the terms of each Transaction as set forth in the confirmations
attached hereto as Exhibit A. (the “New Transactions”) and the related ISDA Master Agreement dated
June 24, 2005 between Coffeyville and J. Aron (the “Coffeyville/J. Aron Master Agreement”) and to
perform all of the obligations thereunder incurred on and after the Effective Date.

J. Aron hereby (i) consents to the foregoing assignment, novation and transfer to Coffeyville; (ii)
agrees that J. Aron releases AcquisitionCo from any and all obligations under the Transactions;
(iii) represents and warrants that as of the Effective Date no past due amounts are owing from J.
Aron to AcquisitionCo under the Transactions; and (iv) agrees to be bound by the terms of the New
Transactions and the Coffeyville/J. Aron Master Agreement and to perform all of the obligations
incurred thereunder on and after the Effective Date.

Each party hereto represents to the others that (i) this Assignment and Novation does not and will
not violate with its charter or by-laws (or comparable constitutive documents), any law, regulation
or order of any court or other agency of government applicable to it or any agreement to which it
is a party or by which it or any of its property is bound; (ii) its obligations hereunder are
legal, valid and binding on it, and enforceable in accordance with their terms; and (iii) the
person signing this agreement for such party is an officer, director, and/or partner of such party
and is authorized and duly empowered to do so.

This Assignment and Novation may be executed in any number of counterparts, each of which shall
constitute an original, but all of which, taken together shall be deemed to constitute one and the
same
agreement.

This Assignment and Novation shall be governed by and construed in accordance with the internal
laws of the State of New York, without giving effect to principles of
conflicts of law.

[Remainder of page intentionally left blank]

 

 

IN
WITNESS WHEREOF, this Assignment and Novation has been signed as of
the          day of         ,

2005.

	 	 	 	 	 	 	 
	 	 	COFFEYVILLE ACQUISITION LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ John J. Lipinski
 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	COFFEYVILLE RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ John J. Lipinski
 

Name:
	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 
	J. ARON & COMPANY	 	 
	 
	 	 	 	 
	BY:
	 	 /s/ J.A. Resnick	 	 
	 

	 	 

Name: Jeff Resnick
	 	 
	 

	 	Title:   Managing Director	 	 

 

 

EXECUTION

GUARANTY AGREEMENT

     This GUARANTY AGREEMENT, dated as of June 24, 2005 (this “Guaranty”), is entered into by
J. ARON & COMPANY, a general partnership organized under the laws of the State of New York
(together with its successors and assigns, “Aron”), and each guarantor signatory hereto (each a
“Guarantor”, and collectively, the “Guarantors”).

RECITALS:

     WHEREAS, capitalized terms used herein but otherwise not defined herein shall have the
meanings ascribed to them in the Hedge Agreement (as defined below) or, if not defined therein, in
the First Lien Credit and Guaranty Agreement, dated as of June 24, 2005, among the Guarantors,
Resources (as defined below), Goldman Sachs Credit Partners L.P. (“GSCP”), and the financial
institutions from time to time parties thereto (as in effect on the date hereof, the “First Lien
Credit Agreement”);

     WHEREAS, Aron and Coffeyville Acquisition LLC, a Delaware limited liability company (the
“Acquirer”), have entered into certain crude oil swap, heating oil swap and gasoline swap
confirmations dated June 15, 2005 and Aron and the Acquirer intend to novate such confirmations to
Coffeyville Resources, LLC (“Resources”), subject to Resources entering into an ISDA Master
Agreement (including the Schedules and Exhibits thereto and the confirmations thereunder,
including, without limitation, any and all confirmations entered into after the date hereof, in
each case as may be amended, supplemented or otherwise modified from time to time, the “Hedge
Agreement”), dated the date hereof, and, subject to the Guarantors executing this Guaranty;

     WHEREAS, the Guarantors expect to receive substantial benefit from Resources entering into
the Hedge Agreement;

     WHEREAS, in order to induce Aron to provide financial accommodations under the Hedge
Agreement, each Guarantor has agreed to guarantee the obligations of Resources under the Hedge
Agreement and to secure Resource’s obligations thereunder and under the First Lien Credit
Agreement by granting to GSCP, as collateral agent (the “First Lien Collateral Agent”), a first
priority Lien on its respective assets, including a pledge of all of the Capital Stock of each of
its Domestic Subsidiaries and 65% of all the Capital Stock of each of its first-tier Foreign
Subsidiaries;

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

DEFINITIONS:

 

 

EXECUTION

“Acquisition” means the acquisition by Acquirer from Coffeyville Group Holdings, LLC, of
all of the issued and outstanding shares of Capital Stock of Coffeyville Pipeline, Inc.,
Coffeyville Refining & Marketing, Inc., Coffeyville Nitrogen Fertilizers, Inc., Coffeyville Crude
Transportation, Inc., and Coffeyville Terminal, Inc.

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

“Capital Stock” means any and all shares, interests, participations or other equivalents (however
designated) of capital stock of a corporation, any and all equivalent ownership interests in a
Person (other than a corporation), including, without limitation, partnership interests and
membership interests, and any and all warrants, rights or options to purchase or other arrangements
or rights to acquire any of the foregoing.

“Domestic Subsidiaries” means any Subsidiary organized under the laws of the United States of
America, any State thereof or the District of Columbia.

“Foreign Subsidiaries” means any Subsidiary that is not a Domestic Subsidiary.

“Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability
company, association, joint venture or other business entity of which more than 50% of the total
voting power of shares of stock or other ownership interests entitled (without regard to the
occurrence of any contingency) to vote in the election of the Person or Persons (whether directors,
managers, trustees or other Persons performing similar functions) having the power to direct or
cause the direction of the management and policies thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a
combination thereof; provided, that in determining the percentage of ownership interests of
any Person controlled by another Person, no ownership interest in the nature of a “qualifying
share” of the former Person shall be deemed to be outstanding.

“Termination Event” means the designation by Aron or Resources, as the case may be, of an Early
Termination Date pursuant to the terms of the Hedge Agreement.

SECTION I

     1.1. Guaranty of the Obligations. Subject to the provisions of Section 1.2, Guarantors
jointly and severally hereby irrevocably and unconditionally guaranty to Aron the due and punctual
payment in full of all obligations of Resources to Aron under the Hedge Agreement when the same
shall become due, whether as the result of the occurrence of a Termination Event or otherwise
(including amounts that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed Obligations”).

 

 

EXECUTION

     1.2. Contribution by Guarantors. All Guarantors desire to allocate among
themselves (collectively, the “Contributing Guarantors”), in a fair and equitable
manner, their obligations arising under this Guaranty. Accordingly, in the event any
payment or distribution is made on any date by a Guarantor (a “Funding Guarantor”)
under this Guaranty such that its Aggregate Payments (as defined below) exceeds its Fair
Share (as defined below) as of such date, such Funding Guarantor shall be entitled to a
contribution from each of the other Contributing Guarantors in an amount sufficient to
cause each Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of
such date. “Fair Share” means, with respect to a Contributing Guarantor as of any date
of determination, an amount equal to (a) the ratio of (i) the Fair Share Contribution
Amount (as defined below) with respect to such Contributing Guarantor to (ii) the
aggregate of the Fair Share Contribution Amounts with respect to all Contributing
Guarantors, multiplied by (b) the aggregate amount paid or distributed on or before such
date by all Funding Guarantors under this Guaranty in respect of the obligations
Guaranteed. “Fair Share Contribution Amount” means, with respect to a Contributing
Guarantor as of any date of determination, the maximum aggregate amount of the
obligations of such Contributing Guarantor under this Guaranty that would not render its
obligations hereunder or thereunder subject to avoidance as a fraudulent transfer or
conveyance under Section 548 of Title 11 of the United States Code or any comparable
applicable provisions of state law; provided, that solely for purposes of calculating the
“Fair Share Contribution Amount” with respect to any Contributing Guarantor for
purposes of this Section 1.2, any assets or liabilities of such Contributing Guarantor
arising by virtue of any rights to subrogation, reimbursement or indemnification or any
rights to or obligations of contribution hereunder shall not be considered as assets or
liabilities of such Contributing Guarantor. “Aggregate Payments” means, with respect
to a Contributing Guarantor as of any date of determination, an amount equal to (1) the
aggregate amount of all payments and distributions made on or before such date by such
Contributing Guarantor in respect of this Guaranty (including, without limitation, in
respect of this Section 1.2), minus (2) the aggregate amount of all payments received on
or before such date by such Contributing Guarantor from the other Contributing
Guarantors as contributions under this Section 1.2. The amounts payable as contributions
hereunder shall be determined as of the date on which the related payment or distribution
is made by the applicable Funding Guarantor. The allocation among Contributing
Guarantors of their obligations as set forth in this Section 1.2 shall not be construed in
any way to limit the liability of any Contributing Guarantor hereunder. Each Guarantor
is a third party beneficiary to the contribution agreement set forth in this Section 1.2.

     1.3. Payment by Guarantors. Subject to Section 1.2, Guarantors hereby jointly
and severally agree, in furtherance of the foregoing and not in limitation of any other
right which Aron may have at law or in equity against any Guarantor by virtue hereof,
that upon the failure of Resources to pay any of the Guaranteed Obligations when and as
the same shall become due, whether as the result of the occurrence of a Termination
Event or otherwise (including amounts that would become due but for the operation of
the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)),
Guarantors will upon demand pay, or cause to be paid, in Cash, to Aron, an amount equal
to the sum of the unpaid amount of all Guaranteed Obligations then due as aforesaid,
accrued and unpaid interest, if any, on such Guaranteed Obligations (including interest

 

 

EXECUTION

which, but for Resource’s becoming the subject of a case under the Bankruptcy Code, would
have accrued on such Guaranteed Obligations, whether or not a claim is allowed against Resources
for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed
to Aron as aforesaid.

     1.4. Liability of Guarantors Absolute. Each Guarantor agrees that its obligations hereunder
are irrevocable, absolute, independent and unconditional and shall not be affected by any
circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than
payment in full of the Guaranteed Obligations. In furtherance of the foregoing and without
limiting the generality thereof, each Guarantor agrees as follows:

          (a) this Guaranty is a guaranty of payment when due and not of
collectability. This Guaranty is a primary obligation of each Guarantor and not merely a
contract of surety;

          (b) Aron may enforce this Guaranty upon the occurrence of a
Termination Event notwithstanding the existence of any dispute between Resources and
Aron with respect to the existence of such Termination Event;

          (c) the obligations of each Guarantor hereunder are independent of the
obligations of Resources and the obligations of any other guarantor (including any other
Guarantor) of the obligations of Resources, and a separate action or actions may be
brought and prosecuted against such Guarantor whether or not any action is brought
against Resources or any of such other guarantors and whether or not Resources or any of
such other guarantors is joined in any such action or actions;

          (d) payment by any Guarantor of a portion, but not all, of the Guaranteed
Obligations shall in no way limit, affect, modify or abridge any Guarantor’s liability for
any portion of the Guaranteed Obligations which has not been paid. Without limiting the
generality of the foregoing, if Aron is awarded a judgment in any suit brought to enforce
any Guarantor’s covenant to pay a portion of the Guaranteed Obligations, such judgment
shall not be deemed to release such Guarantor from its covenant to pay the portion of the
Guaranteed Obligations that is not the subject of such suit, and such judgment shall not,
except to the extent satisfied by such Guarantor, limit, affect, modify or abridge any other
Guarantor’s liability hereunder in respect of the Guaranteed Obligations;

          (e) Aron, upon such terms as it deems appropriate, without notice or
demand and without affecting the validity or enforceability hereof or giving rise to any
reduction, limitation, impairment, discharge or termination of any Guarantor’s liability
hereunder, from time to time may (i) renew, extend, accelerate, or otherwise change the
time, place, manner or terms of payment of the Guaranteed Obligations; (ii) settle,
compromise, release or discharge, or accept or refuse any offer of performance with
respect to, or substitutions for, the Guaranteed Obligations or any agreement relating
thereto and/or subordinate the payment of the same to the payment of any other
obligations; (iii) request and accept other guaranties of the Guaranteed Obligations and
take and hold security for the payment hereof or the Guaranteed Obligations; (iv) release,

 

 

EXECUTION

surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or
modify, with or without consideration, any security for payment of the Guaranteed Obligations, any
other guaranties of the Guaranteed Obligations, or any other obligation of any Person (including
any other Guarantor) with respect to the Guaranteed Obligations; (v) enforce and apply any security
now or hereafter held by or for the benefit of Aron in respect hereof or the Guaranteed Obligations
and direct the order or manner of sale thereof, or exercise any other right or remedy that Aron may
have against any such security, in each case as Aron in its discretion may determine consistent
herewith and any applicable security agreement, including foreclosure on any such security pursuant
to one or more judicial or nonjudicial sales, whether or not every aspect of any such sale is
commercially reasonable, and even though such action operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of any Guarantor against Resources or any
security for the Guaranteed Obligations; and (vi) exercise any other rights available to it under
the Hedge Agreement; and

          (f) this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable
and shall not be subject to any reduction, limitation, impairment, discharge or termination for
any reason (other than payment in full of the Guaranteed Obligations), including the occurrence of
any of the following, whether or not any Guarantor shall have had notice or knowledge of any of
them: (i) any failure or omission to assert or enforce or agreement or election not to assert or
enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the
exercise or enforcement of, any claim or demand or any right, power or remedy (whether arising
under the Hedge Agreement, at law, in equity or otherwise) with respect to the Guaranteed
Obligations or the Hedge Agreement, or with respect to any other guaranty of or security for the
payment of the Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification of,
or any consent to departure from, any of the terms or provisions (including provisions relating to
events of default) hereof, the Hedge Agreement, or of any other guaranty or security for the
Guaranteed Obligations, in each case whether or not in accordance with the terms hereof or the
Hedge Agreement or any agreement relating to such other guaranty or security; (iii) the Guaranteed
Obligations, or the Hedge Agreement, at any time being found to be illegal, invalid or
unenforceable in any respect; (iv) the application of payments received from any source (other
than payments received pursuant to the Hedge Agreement or from the proceeds of any security for
the Guaranteed Obligations, except to the extent such security also serves as collateral for
indebtedness other than the Guaranteed Obligations and such proceeds were applied to reduce such
indebtedness) to the payment of indebtedness other than the Guaranteed Obligations, even though
Aron might have elected to apply such payment to any part or all of the Guaranteed Obligations;
(v) Aron’s consent to the change, reorganization or termination of the corporate structure or
existence of Resources or any of its Subsidiaries and to any corresponding restructuring of the
Guaranteed Obligations; (vi) any failure to perfect or continue perfection of a security interest
in any collateral which secures any of the Guaranteed Obligations; (vii) any defenses, set-offs or
counterclaims which Resources may allege or assert against Aron in respect of the Guaranteed
Obligations, including failure of consideration, breach of warranty, payment, statute of frauds,
statute of limitations, accord and satisfaction and usury; and (viii) any other act or thing or
omission, or delay to do any other act or thing, which may or might in any manner or to

 

 

EXECUTION

any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

     1.5. Waivers by Guarantors. Each Guarantor hereby waives, for Aron’s
benefit: (a) any right to require Aron, as a condition of payment or performance by such
Guarantor, to (i) proceed against Resources, any other guarantor (including any other
Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed against or
exhaust any security held from Resources, any such other guarantor or any other Person,
(iii) proceed against or have resort to any balance of any deposit account or credit on
Aron’s books in favor of Resources or any other Person, or (iv) pursue any other remedy
in the power of Aron whatsoever; (b) any defense arising by reason of the incapacity,
lack of authority or any disability or other defense of Resources or any other Guarantor
including any defense based on or arising out of the lack of validity or the
unenforceability of the Guaranteed Obligations or any agreement or instrument relating
thereto or by reason of the cessation of the liability of Resources or any other Guarantor
from any cause other than payment in full of the Guaranteed Obligations; (c) any defense
based upon any statute or rule of law which provides that the obligation of a surety must
be neither larger in amount nor in other respects more burdensome than that of the
principal; (d) any defense based upon Aron’s errors or omissions in the administration of
the Guaranteed Obligations, except behavior which amounts to bad faith; (e) (i) any
principles or provisions of law, statutory or otherwise, which are or might be in conflict
with the terms hereof and any legal or equitable discharge of such Guarantor’s obligations
hereunder, (ii) to the extent permitted by law, the benefit of any statute of limitations
affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to
set-offs, recoupments and counterclaims, and (iv) promptness, diligence and any
requirement that Aron protect, secure, perfect or insure any security interest or lien or any
property subject thereto; (f) notices, demands, presentments, protests, notices of protest,
notices of dishonor and notices of any action or inaction, including acceptance hereof,
notices of default hereunder, the Hedge Agreement or any agreement or instrument
related thereto, notices of any renewal, extension or modification of the Guaranteed
Obligations or any agreement related thereto, notices of any extension of credit to
Resources and notices of any of the matters referred to in Section 1.4 and any right to
consent to any thereof; and (g) any defenses or benefits that may be derived from or
afforded by law which limit the liability of or exonerate guarantors or sureties, or which
may conflict with the terms hereof.

Notwithstanding anything herein to the contrary, nothing in Sections 1.4, 1.5 or 1.6 shall affect
the obligations of Aron and Resources with respect to the netting of transactions provided for in
Section 2(c) of the Hedge Agreement.

     1.6. Guarantors’ Rights of Subrogation, Contribution, etc. Until the
Guaranteed Obligations shall have been indefeasibly paid in full, each Guarantor hereby
waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may
hereafter have against Resources or any other Guarantor or any of its assets in connection
with this Guaranty or the performance by such Guarantor of its obligations hereunder, in
each case whether such claim, right or remedy arises in equity, under contract, by statute,
under common law or otherwise and including without limitation (a) any right of

 

 

EXECUTION

subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have
against Resources with respect to the Guaranteed Obligations, (b) any right to enforce, or to
participate in, any claim, right or remedy that Aron now has or may hereafter have against
Resources, and (c) any benefit of, and any right to participate in, any collateral or security now
or hereafter held by Aron. In addition, until the Guaranteed Obligations shall have been
indefeasibly paid in full, each Guarantor shall withhold exercise of any right of contribution such
Guarantor may have against any other guarantor (including any other Guarantor) of the Guaranteed
Obligations, including, without limitation, any such right of contribution as contemplated by
Section 1.2. Each Guarantor further agrees that, to the extent the waiver or agreement to withhold
the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set
forth herein is found by a court of competent jurisdiction to be void or voidable for any reason,
any rights of subrogation, reimbursement or indemnification such Guarantor may have against
Resources or against any collateral or security, and any rights of contribution such Guarantor may
have against any such other guarantor, shall be junior and subordinate to any rights Aron may have
against Resources, to all right, title and interest Aron may have in any such collateral or
security, and to any right Aron may have against such other guarantor. If any amount shall be paid
to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution
rights at any time when all Guaranteed Obligations shall not have been finally and indefeasibly
paid in full, such amount shall be held in trust for Aron and shall forthwith be paid over to Aron
to be credited and applied against the Guaranteed Obligations, whether matured or unmatured, in
accordance with the terms hereof.

     1.7. Subordination of Other Obligations. Any Indebtedness of Resources or
any Guarantor now or hereafter held by any Guarantor (the “Obligee Guarantor”) is
hereby subordinated in right of payment to the Guaranteed Obligations, and any such
indebtedness collected or received by the Obligee Guarantor after a Termination Event
has occurred and is continuing shall be held in trust for Aron and shall forthwith be paid
over to Aron to be credited and applied against the Guaranteed Obligations owing to
Aron but without affecting, impairing or limiting in any manner the liability of the
Obligee Guarantor under any other provision hereof.

     1.8. Continuing Guaranty. This Guaranty is a continuing guaranty and shall
remain in effect until all of the Guaranteed Obligations shall have been paid in full in
cash. Each Guarantor hereby irrevocably waives any right to revoke this Guaranty as to
future transactions giving rise to any Guaranteed Obligations.

     1.9. Authority of Guarantors or Resources. It is not necessary for Aron to
inquire into the capacity or powers of any Guarantor or Resources or the officers,
directors or any agents acting or purporting to act on behalf of any of them.

     1.10. Financial Condition of Resources. Additional Confirmations or
Transactions may be entered into from time to time under the Hedge Agreement, in each
case without notice to or authorization from any Guarantor regardless of the financial or
other condition of Resources at the time of any such grant or continuation or at the time
such Confirmations or Transactions under the Hedge Agreement is entered into, as the

 

 

EXECUTION

case may be. Aron shall not have any obligation to disclose or discuss with any Guarantor its
assessment, or any Guarantor’s assessment, of the financial condition of Resources. Each Guarantor
has adequate means to obtain information from Resources on a continuing basis concerning the
financial condition of Resources and its ability to perform its obligations under the Hedge
Agreement, and each Guarantor assumes the responsibility for being and keeping informed of the
financial condition of Resources and of all circumstances bearing upon the risk of nonpayment of
the Guaranteed Obligations. Each Guarantor hereby waives and relinquishes any duty on Aron’s part
to disclose any matter, fact or thing relating to the business, operations or conditions of
Resources now known or hereafter known to Aron.

     1.11. Bankruptcy, etc. (a) So long as any Guaranteed Obligations remain
outstanding, no Guarantor shall, without Aron’s prior written consent, commence or join
with any other Person in commencing any bankruptcy, reorganization or insolvency case
or proceeding of or against Resources or any other Guarantor. The obligations of
Guarantors hereunder shall not be reduced, limited, impaired, discharged, deferred,
suspended or terminated by any case or proceeding, voluntary or involuntary, involving
the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of
Resources or any other Guarantor or by any defense which Resources or any other
Guarantor may have by reason of the order, decree or decision of any court or
administrative body resulting from any such proceeding.

          (b) Each Guarantor acknowledges and agrees that any interest on any
portion of the Guaranteed Obligations which accrues after the commencement of any
case or proceeding referred to in clause (a) above (or, if interest on any portion of the
Guaranteed Obligations ceases to accrue by operation of law by reason of the
commencement of such case or proceeding, such interest as would have accrued on such
portion of the Guaranteed Obligations if such case or proceeding had not been
commenced) shall be included in the Guaranteed Obligations because it is the intention of
Guarantors and Aron that the Guaranteed Obligations which are guaranteed by
Guarantors pursuant hereto should be determined without regard to any rule of law or
order which may relieve Resources of any portion of such Guaranteed Obligations.
Guarantors will permit any trustee in bankruptcy, receiver, debtor in possession, assignee
for the benefit of creditors or similar person to pay Aron, or allow Aron’s claim in respect
of, any such interest accruing after the date on which such case or proceeding is
commenced.

          (c) In the event that all or any portion of the Guaranteed Obligations are
paid by Resources, the obligations of Guarantors hereunder shall continue and remain in
full force and effect or be reinstated, as the case may be, in the event that all or any part
of such payment(s) are rescinded or recovered directly or indirectly from Aron as a
preference, fraudulent transfer or otherwise, and any such payments which are so
rescinded or recovered shall constitute Guaranteed Obligations for all purposes
hereunder.

     1.12. Discharge of Guaranty Upon Sale of Guarantor. If all of the Capital
Stock of any Guarantor or any of its successors in interest hereunder shall be sold or

 

 

EXECUTION

otherwise disposed of (including by merger or consolidation) in accordance with the terms and
conditions hereof or under the Hedge Agreement and as permitted by Sections 6.9 and 6.10 of the
First Lien Credit Agreement, the Guaranty of such Guarantor or such successor in interest, as the
case may be, hereunder shall automatically be discharged and released without any further action
by Aron or any other Person effective as of the time of such sale or disposition; provided that
Aron shall, at Guarantors’ expense, execute and deliver or otherwise authorize the filing of such
documents as Guarantors may reasonably request, in form and substance reasonably satisfactory to
Aron, to evidence such release.

Notwithstanding anything herein to the contrary, each Guarantor confirms that it is its intention
that the guaranty by such Guarantor pursuant to this Guaranty not constitute a fraudulent transfer
or conveyance for purposes of any federal, state or foreign law. To effectuate the foregoing
intention, each of Aron and each Guarantor hereby irrevocably agrees that the obligations of each
Guarantor under this Guaranty shall be limited to the maximum amount as will, after giving effect
to all other contingent and fixed liabilities of such Guarantor and after giving effect to any
collections from payments made by or on behalf of any other Guarantor in respect of the obligations
of such other Guarantor under its Guaranty, result in the obligations of such Guarantor under this
Guaranty not constituting a fraudulent conveyance or fraudulent transfer under federal, state or
foreign law.

SECTION II. MISCELLANEOUS

2.1 Notices. Unless otherwise specifically provided herein, any notice or other communication
herein required or permitted to be given to Aron, Resources or a Guarantor, shall be sent to such
Person’s address as set forth in the Hedge Agreement and in the manner permitted therein.

2.2. Governing Law. This Agreement and all matters arising in connection with this Agreement will
be governed by, and construed and enforced in accordance with, the law of the State of New York
without regard to conflict of laws principles thereof that would require the application of laws of
another state.

2.3. Severability. If any term, provision, covenant, or condition of this Guaranty, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable (in
whole or in part) for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Guaranty had been executed with the invalid or
unenforceable portion eliminated, so long as this Guaranty as so modified continues to express,
without material change, the original intentions of the parties as to the subject matter of this
Guaranty and the deletion of such portion of this Guaranty will not substantially impair the
respective benefits or expectations of the parties to this Guaranty.

2.4. WAIVER OF TRIAL BY JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING.

 

 

EXECUTION

2.5. CONSENT TO JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT
OF OR RELATING HERETO, OR ANY OF THE OBLIGATIONS, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS
AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a)
ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (b)
WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (c) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED,
TO THE APPLICABLE PARTY HERETO AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 2.1; (d) AGREES
THAT SERVICE AS PROVIDED IN CLAUSE (c) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE
APPLICABLE PARTY HERETO IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (e) AGREES ARON RETAINS THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY PARTY HERETO IN
THE COURTS OF ANY OTHER JURISDICTION.

 

 

EXECUTION

     IN WITNESS WHEREOF, the parties hereto have caused this Guaranty to be duly executed and
delivered by their respective officers thereunto duly authorized as of the date first written
above.

	 	 	 	 	 
	 	 	J. ARON & COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ J. A. Resnick
	 

	 	 	 	 
	 

	 	 	 	Name: Jeff Resnick
	 

	 	 	 	Title: Managing Director

 

 

	 	 	 	 	 
	 	 	CL JV HOLDINGS, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE PIPELINE, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE REFINING AND MARKETING, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE NITROGEN FERTILIZERS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE CRUDE TRANSPORTATION, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

	 	 	 	 	 
	 	 	COFFEYVILLE TERMINAL, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE RESOURCES PIPELINE, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE RESOURCES REFINING AND MARKETING, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE RESOURCES NITROGEN FERTILIZERS, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Lipinski
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

June 24, 2005

Coffeyville Resources, LLC

10 East Cambridge Circle Drive, Suite 250

Kansas City, Kansas 66103

Ladies and Gentlemen:

For value received, The Goldman Sachs Group, Inc. (the “Guarantor”), a corporation duly organized
under the laws of the State of Delaware, hereby unconditionally guarantees the prompt, and
complete payment when due, whether by acceleration or otherwise, of all obligations and
liabilities, whether now in existence or hereafter arising, of J. Aron & Company, a subsidiary of
the Guarantor and a partnership duly organized under the laws of the State of New York (the
“Company”), to Coffeyville Resources, LLC (the “Counterparty”) arising out of or under the ISDA
Master Agreement between the Company and the Counterparty dated as of
June 24, 2005. This Guaranty
is one of payment and not of collection.

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

Counterparty
may at any time and from time to time without notice to or consent of the Guarantor
and without impairing or releasing the obligations of the Guarantor hereunder: (1) agree with the
Company to make any change in the terms of any obligation or liability of the Company to
Counterparty, (2) take or fail to take any action of any kind in respect of any security for any
obligation or liability of the Company to Counterparty, (3) exercise or refrain from exercising
any rights against the Company or others, or (4) compromise or subordinate any obligation or
liability of the Company to Counterparty including any security therefor. Any other suretyship
defenses are hereby waived by the Guarantor.

This Guaranty shall continue in full force and effect until the opening of business on the fifth
business day after Counterparty receives written notice of
termination from the Guarantor. It is
understood and agreed, however, that notwithstanding any such termination this Guaranty shall
continue in full force and effect with respect to the obligations and liabilities set forth above
which shall have been incurred prior to such termination.

 

 

Coffeyville Resources, LLC

June 24, 2005

Page 2

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

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

Very truly yours,

THE GOLDMAN SACHS GROUP, INC.

	 	 	 	 	 
	By:
	 	/s/ [Illegible]	 	 
	 

	 	 	 	 
	 

	 	Authorized Officer
	 	 

 

 

UNLEADED GASOLINE SWAP CONFIRMATION

To: Coffeyville Acquisition LLC

Attention: Ken Pontarelli/Scott Lebovitz

CC: Colleen Foster

From: J. Aron & Company

We are pleased to confirm the following transaction with you.

	 	 	 
	Contract Reference Number:

	 	To be advised by J. Aron
	 
	 	 
	Trade Date:

	 	June 16, 2005
	 
	 	 
	Notional Quantity per
Determination Period:

	 	As specified in Table A below for the applicable
Determination Period
	 
	 	 
	Total Notional Quantity:

	 	2,348,802,750 Gallons
	 
	 	 
	Fixed Price Payer:

	 	J. Aron & Company (“J.
Aron”)
	 
	 	 
	Floating Price Payer;

	 	Coffeyville Acquisition, LLC (“Coffeyville Acquisition”)
	 
	 	 
	Effective Date:

	 	1 Jul 2005
	 
	 	 
	Termination Date:

	 	30 Jun 2010
	 
	 	 
	Determination Period(s):

	 	20 periods, each consisting of three consecutive calendar
month periods (each, a “Quarter”) commencing with the Quarter in
which the Effective Date occurs and ending with the Quarter in
which the Termination Date occurs, as specified in Table A
below
	 
	 	 
	Fixed Price:

	 	As specified in Table A below for the applicable Determination
Period
	 
	 	 
	Floating Price:

	 	For each Determination Period, the average of the
closing settlement prices on the New York Mercantile Exchange for
the Unleaded Gasoline contract that is “first nearby” as
of any determination date during such Determination Period quoted
in US dollars per gallon

 

 

Table A:

	 	 	 	 	 	 	 	 	 
	 	 	Notional	 	 
	Determination Period	 	Quantity per Determination Period (Gallons)	 	Fixed
Price per Determination Period (USD/Gallon)
	Jul 1, 05 - Sep 30, 05
	 	 	125,580,000	 	 	 	$[***]	 
	Oct 1, 05 - Dec 31, 05
	 	 	125,580,000	 	 	 	$[***]	 
	Jan 1, 06 - Mar 31, 06
	 	 	122,850,000	 	 	 	$[***]	 
	Apr 1, 06 - Jun 30, 06
	 	 	124,215,000	 	 	 	$[***]	 
	Jul 1, 06 - Sep 30, 06
	 	 	125,580,000	 	 	 	$[***]	 
	Oct 1, 06 - Dec 31, 06
	 	 	91,350,000	 	 	 	$[***]	 
	Jan 1, 07 - Mar 31, 07
	 	 	127,102,500	 	 	 	$[***]	 
	Apr 1, 07 - Jun 30, 07
	 	 	128,514,750	 	 	 	$[***]	 
	Jul 1, 07 - Sep 30, 07
	 	 	155,912,400	 	 	 	$[***]	 
	Oct 1, 07 - Dec 31, 07
	 	 	155,912,400	 	 	 	$[***]	 
	Jan 1, 08 - Mar 31, 08
	 	 	154,217,700	 	 	 	$[***]	 
	Apr 1, 08 - Jun 30, 08
	 	 	154,217,700	 	 	 	$[***]	 
	Jul 1, 08 - Sep 30, 08
	 	 	155,912,400	 	 	 	$[***]	 
	Oct 1, 08 - Dec 31, 08
	 	 	155,912,400	 	 	 	$[***]	 
	Jan 1, 09 - Mar 31, 09
	 	 	147,420,000	 	 	 	$[***]	 
	Apr 1, 09 - Jun 30, 09
	 	 	149,058,000	 	 	 	$[***]	 
	Jul 1, 09 - Sep 30, 09
	 	 	37,674,000	 	 	 	$[***]	 
	Oct 1, 09 - Dec 31, 09
	 	 	37,674,000	 	 	 	$[***]	 
	Jan 1, - Mar 31, 10
	 	 	36,855,000	 	 	 	$[***]	 
	Apr 1, 10 - Jun 30, 10
	 	 	37,264,500	 	 	 	$[***]	 

In relation to any Determination Period:

	(i)	 	if the applicable Fixed Price exceeds the applicable Floating Price, the Fixed Price
Payer shall pay Floating Price Payer on the applicable Payment Date an amount equal to (x)
the difference between such Fixed Price and the applicable Floating Price, multiplied by
(y) the applicable Notional Quantity per Determination Period;

	(ii)	 	if the applicable Floating Price exceeds the applicable Fixed Price, the Floating Price
Payer shall pay Fixed Price Payer on the applicable Payment Date an amount equal to (x)
the difference between the such Floating Price and the applicable Fixed Price, multiplied
by (y) the applicable Notional Quantity per Determination Period;

	(iii)	 	if the applicable Floating Price is equal to the applicable Fixed Price, no amount
shall be owing from either party to the other.

	 	 	 
	Payment Date(s):

	 	With respect to a Determination Period, the 5th New York
Business Day following the last trading day in such
Determination Period.
	 
	 	 
	Settlements:

	 	All payments shall be made by wire transfer of
immediately available funds. All amounts owing between
the parties on the same date under this Transaction and
any other transaction shall be settled on a net basis.

2

 

	 	 	 
	Automatic Termination:

	 	In the event that the Closing
under the Stock Purchase
Agreement does not occur on or
before July 15, 2005 this
Transaction shall terminate
automatically and upon such
termination neither party shall
have any further liability to
the other in relation to this
Transaction.
	 
	 	 
	Assignment and novation Documentation to
be entered into upon Closing under Stock
Purchase Agreement:

	 	Coffeyville Acquisition agrees
upon Closing under the Stock
Purchase Agreement that (i) it
shall enter into the Assignment
and Novation Agreement set
forth as Exhibit A hereto (the
“Assignment and Novation”) as
Assignor and shall cause
Coffeyville Resources, LLC to
enter into such Assignment and
Novation Agreement as Assignee,
(ii) it shall cause Coffeyville
Resources, LLC to enter into an
ISDA Master Agreement and
related documentation the
Schedule of which shall be
substantially in the form of
Exhibit B hereto and (iii) it
shall cause the Coffeyville
Resources, LLC to enter into
the Intercreditor Agreement
having terms and conditions
specified in Exhibit C hereto,
with uncompleted terms in each
of the exhibits to be completed
as contemplated by such
exhibits.
	 
	 	 
	 

	 	J. Aron agrees that upon the
Closing under the Stock
Purchase Agreement, it shall
enter into the Assignment and
Novation set forth as Exhibit A
hereto as Remaining Party and
shall enter into the ISDA
Master Agreement and related
documentation the Schedule of
which shall be substantially in
the form of Exhibit B hereto
and shall cause its parent, The
Goldman Sachs Group, Inc., to
provide the guaranty
substantially in the form of
Exhibit D hereto.
	 
	 	 
	Defined terms:

	 	“Stock Purchase Agreement”
means the Stock Purchase
Agreement between Coffeyville
Group Holdings, LLC and
Coffeyville Acquisition LLC
dated as of May 15, 2005.
	 
	 	 
	 

	 	“ISDA Agreement” means the ISDA
Master Agreement between J.
Aron and the Coffeyville
Resources, LLC substantially in
the form of Exhibit B.

Upon effectiveness of the Assignment and Novation, this transaction shall constitute a
“Transaction” within the meaning of the ISDA Agreement and this confirmation shall
constitute a “Confirmation” within the meaning of
the ISDA Agreement that supplements,
forms part of and is subject to the ISDA Agreement.

3

 

Please confirm that the foregoing correctly sets forth the terms of our agreement with respect to
this transaction by signing this confirmation in the space provided below and immediately returning
a copy of the executed confirmation via facsimile to the attention of Commodity Operations at New
York: 1-212-493-9846 (J. Aron & Company).

Very truly
yours,

 J. Aron & Company

Signed on behalf of J. Aron & Company

	 	 	 	 	 
	By:

	 	/s/ [Illegible]
 

Name:
	 	 
	 

	 	Title:	 	 

Accepted and agreed as of the Trade Date specified above

Coffeyville Acquisition LLC

	 	 	 	 	 
	By:

	 	/s/ [Illegible]
 

Name:
	 	 
	 

	 	Title:	 	 

4

 

HEATING OIL SWAP CONFIRMATION

To: Coffeyville Acquisition LLC

Attention: Ken Pontarelli/Scott Lebovitz

CC: Colleen Foster

From: J. Aron & Company

We are pleased to confirm the following transaction with you.

	 	 	 
	Contract Reference Number:

	 	To be advised by J. Aron
	 
	 	 
	Trade Date:

	 	June 16, 2005
	 
	 	 
	Notional Quantity per
Determination Period:

	 	As specified in Table A below for the applicable Determination Period
	 
	 	 
	Total Notional Quantity:

	 	1,889,459,250 Gallons
	 
	 	 
	Fixed Price Payer:

	 	J. Aron & Company (“J. Aron”)
	 
	 	 
	Floating Price Payer:

	 	Coffeyville Acquisition, LLC (“Coffeyville Acquisition”)
	 
	 	 
	Effective Date:

	 	1 Jul 2005
	 
	 	 
	Termination Date:

	 	30 Jun 2010
	 
	 	 
	Determination Period(s):

	 	20 periods, each consisting of three consecutive calendar month
periods (each, a “Quarter”) commencing with the Quarter in which the
Effective Date occurs and ending with the Quarter in which the
Termination Date occurs, as specified in Table A below
	 
	 	 
	Fixed Price:

	 	As specified in Table A below for the applicable Determination Period
	 
	 	 
	Floating Price:

	 	For each Determination Period, the average of the closing
settlement prices on the New York Mercantile Exchange for the
Heating Oil Futures Contract that is “first nearby” as of any
determination date during such Determination Period quoted in US
dollars per gallon

 

 

Table A:

	 	 	 	 	 	 	 	 	 
	 	 	Notional	 	 
	Determination Period	 	Quantity per Determination Period (Gallons)	 	Fixed Price per Determination Period (USD/Gallon)
	Jul 1, 05 - Sep 30, 05
	 	 	125,580,000	 	 	 	$[***]	 
	Oct 1, 05 - Dec 31, 05
	 	 	125,580,000	 	 	 	$[***]	 
	Jan 1, 06 - Mar 31, 06
	 	 	122,850,000	 	 	 	$[***]	 
	Apr 1, 06 - Jun 30, 06
	 	 	124,215,000	 	 	 	$[***]	 
	Jul 1, 06 - Sep 30, 06
	 	 	125,580,000	 	 	 	$[***]	 
	Oct 1, 06 - Dec 31, 06
	 	 	91,350,000	 	 	 	$[***]	 
	Jan 1, 07 - Mar 31, 07
	 	 	127,102,500	 	 	 	$[***]	 
	Apr 1, 07 - Jun 30, 07
	 	 	128,514,750	 	 	 	$[***]	 
	Jul 1, 07 - Sep 30, 07
	 	 	103,941,600	 	 	 	$[***]	 
	Oct 1, 07 - Dec 31, 07
	 	 	103,941,600	 	 	 	$[***]	 
	Jan 1, 08 - Mar 31, 08
	 	 	102,811,800	 	 	 	$[***]	 
	Apr 1, 08 - Jun 30, 08
	 	 	102,811,800	 	 	 	$[***]	 
	Jul 1, 08 - Sep 30, 08
	 	 	103,941,600	 	 	 	$[***]	 
	Oct 1, 08 - Dec 31, 08
	 	 	103,941,600	 	 	 	$[***]	 
	Jan 1, 09 - Mar 31, 09
	 	 	98,280,000	 	 	 	$[***]	 
	Apr 1, 09 - Jun 30, 09
	 	 	99,372,000	 	 	 	$[***]	 
	Jul 1, 09 - Sep 30, 09
	 	 	25,116,000	 	 	 	$[***]	 
	Oct 1, 09 - Dec 31, 09
	 	 	25,116,000	 	 	 	$[***]	 
	Jan 1, - Mar 31, 10
	 	 	24,570,000	 	 	 	$[***]	 
	Apr 1, 10 - Jun 30, 10
	 	 	24,843,000	 	 	 	$[***]	 

In relation to any Determination Period:

	(i)	 	if the applicable Fixed Price exceeds the applicable Floating Price, the Fixed Price
Payer shall pay Floating Price Payer on the applicable Payment Date an amount equal to (x)
the difference between such Fixed Price and the applicable Floating Price, multiplied by
(y) the applicable Notional Quantity per Determination Period;
	 
	(ii)	 	if the applicable Floating Price exceeds the applicable Fixed Price, the Floating Price
Payer shall pay Fixed Price Payer on the applicable Payment Date an amount equal to (x)
the difference between the such Floating Price and the applicable Fixed Price, multiplied
by (y) the applicable Notional Quantity per Determination Period;
	 
	(iii)	 	if the applicable Floating Price is equal to the applicable Fixed Price, no amount
shall be owing from either party to the other.

	 	 	 
	Payment Date(s):

	 	With respect to a Determination Period, the 5th New York
Business Day following the last trading day in such
Determination Period.
	 
	 	 
	Settlements:

	 	All payments shall be made by wire transfer of
immediately available funds. All amounts owing between
the parties on the same date under this Transaction and
any other transaction shall be settled on a net basis.

2

 

	 	 	 
	Automatic Termination:

	 	In the event that the Closing
under the Stock Purchase
Agreement does not occur on or
before July 15, 2005 this
Transaction shall terminate
automatically and upon such
termination neither party shall
have any further liability to
the other in relation to this
Transaction.
	 
	 	 
	Assignment and novation Documentation to
be entered into upon Closing under Stock
Purchase Agreement:

	 	Coffeyville Acquisition agrees
upon Closing under the Stock
Purchase Agreement that (i) it
shall enter into the Assignment
and Novation Agreement set
forth as Exhibit A hereto (the
“Assignment and Novation”) as
Assignor and shall cause
Coffeyville Resources, LLC to
enter into such Assignment and
Novation Agreement as Assignee,
(ii) it shall cause Coffeyville
Resources, LLC to enter into an
ISDA Master Agreement and
related documentation the
Schedule of which shall be
substantially in the form of
Exhibit B hereto and (iii) it
shall cause the Coffeyville
Resources, LLC to enter into
the Intercreditor Agreement
having terms and conditions
specified in Exhibit C hereto,
with uncompleted terms in each
of the exhibits to be completed
as contemplated by such
exhibits.
	 
	 	 
	 

	 	J. Aron agrees that upon the
Closing under the Stock
Purchase Agreement, it shall
enter into the Assignment and
Novation set forth as Exhibit A
hereto as Remaining Party and
shall enter into the ISDA
Master Agreement and related
documentation the Schedule of
which shall be substantially in
the form of Exhibit B hereto
and shall cause its parent, The
Goldman Sachs Group, Inc., to
provide the guaranty
substantially in the form of
Exhibit D hereto.
	 
	 	 
	Defined terms:

	 	“Stock Purchase Agreement”
means the Stock Purchase
Agreement between Coffeyville
Group Holdings, LLC and
Coffeyville Acquisition LLC
dated as of May 15, 2005.
	 
	 	 
	 

	 	“ISDA Agreement” means the ISDA
Master Agreement between J.
Aron and the Coffeyville
Resources, LLC substantially in
the form of Exhibit B.

Upon effectiveness of the Assignment and Novation, this transaction shall constitute a
“Transaction” within the meaning of the ISDA Agreement and this confirmation shall
constitute a “Confirmation” within the meaning of the ISDA Agreement that supplements,
forms part of and is subject to the ISDA Agreement.

3

 

Please
confirm that the foregoing correctly sets forth the terms of our agreement with respect to
this transaction by signing this confirmation in the space provided below and immediately returning
a copy of the executed confirmation via facsimile to the attention of Commodity Operations at New
York: 1-212-493-9846 (J. Aron & Company).

Very truly
yours,

 J. Aron & Company

Signed on behalf of J. Aron & Company

	 	 	 	 	 
	By:

	 	/s/ [Illegible] 

Name:
	 	 
	 

	 	Title:	 	 

Accepted and agreed as of the Trade Date specified above

Coffeyville Acquisition LLC

	 	 	 	 	 
	By:

	 	/s/ [Illegible]
 

Name:
	 	 
	 

	 	Title:	 	 

4

 

CRUDE OIL SWAP CONFIRMATION

To: Coffeyville Acquisition LLC

Attention: Ken Pontarelli/Scott Lebovitz

CC: Colleen Foster

From: J. Aron & Company

We are pleased to confirm the following transaction with you.

	 	 	 
	Contract Reference Number:

	 	To be advised by J. Aron
	 
	 	 
	Trade Date:

	 	June 16, 2005
	 
	 	 
	Notional Quantity per Determination
Period:

	 	As specified in Table A below for the applicable Determination Period
	 
	 	 
	Total Notional Quantity:

	 	100,911,000 U.S. Barrels
	 
	 	 
	Fixed Price Payer:

 Floating Price Payer:

	 	Coffeyville Acquisition, LLC (“Coffeyville Acquisition”)

 J. Aron & Company (“J. Aron”)
	 
	 	 
	Effective Date:

	 	1 Jul 2005
	 
	 	 
	Termination Date:

	 	30 Jun 2010
	 
	 	 
	Determination Period(s):

	 	20 periods, each consisting of three consecutive calendar month periods (each, a
“Quarter”) commencing with the Quarter in which the Effective Date occurs and ending
with the Quarter in which the Termination Date occurs, as specified in Table A below
	 
	 	 
	Fixed Price:

	 	As specified in Table A below for the applicable Determination Period
	 
	 	 
	Floating Price:

	 	For each Determination Period, the average of the closing settlement price(s) on the
New York Mercantile Exchange for the Nearby Light Crude Futures Contract that is
“first nearby” as of any determination date during such Determination Period

 

 

Table A:

	 	 	 	 	 	 	 	 	 
	 	 	Notional	 	 
	 	 	Quantity per Determination Period (US	 	Fixed Price per Determination Period (USD/US
	Determination Period	 	Barrels)	 	Barrel)
	Jul 1, 05 – Sep 30, 05
	 	 	5,980,000	 	 	 	$[***]	 
	Oct 1, 05 – Dec 31, 05
	 	 	5,980,000	 	 	 	$[***]	 
	Jan 1, 06 – Mar 31, 06
	 	 	5,850,000	 	 	 	$[***]	 
	Apr 1, 06 – Jun 30, 06
	 	 	5,915,000	 	 	 	$[***]	 
	Jul 1, 06 – Sep 30, 06
	 	 	5,980,000	 	 	 	$[***]	 
	Oct 1, 06 – Dec 31, 06
	 	 	4,350,000	 	 	 	$[***]	 
	Jan 1, 07 – Mar 31, 07
	 	 	6,052,500	 	 	 	$[***]	 
	Apr 1, 07 – Jun 30, 07
	 	 	6,119,750	 	 	 	$[***]	 
	Jul 1, 07 – Sep 30, 07
	 	 	6,187,000	 	 	 	$[***]	 
	Oct 1, 07 – Dec 31, 07
	 	 	6,187,000	 	 	 	$[***]	 
	Jan 1, 08 – Mar 31, 08
	 	 	6,119,750	 	 	 	$[***]	 
	Apr 1, 08 – Jun 30, 08
	 	 	6,119,750	 	 	 	$[***]	 
	Jul 1, 08 – Sep 30, 08
	 	 	6,187,000	 	 	 	$[***]	 
	Oct 1, 08 – Dec 31, 08
	 	 	6,187,000	 	 	 	$[***]	 
	Jan 1, 09
– Mar 31, 09
	 	 	5,850,000	 	 	 	$[***]	 
	Apr 1, 09 – Jun 30, 09
	 	 	5,915,000	 	 	 	$[***]	 
	Jul 1, 09 – Sep 30, 09
	 	 	1,495,000	 	 	 	$[***]	 
	Oct 1, 09 – Dec 31, 09
	 	 	1,495,000	 	 	 	$[***]	 
	Jan 1, – Mar 31, 10
	 	 	1,462,500	 	 	 	$[***]	 
	Apr 1, 10 – Jun 30, 10
	 	 	1,478,750	 	 	 	$[***]	 

In relation to any Determination Period:

	(i)	 	if the applicable Fixed Price exceeds the applicable Floating Price, the Fixed Price
Payer shall pay Floating Price Payer on the applicable Payment Date an amount equal to
(x) the difference between such Fixed Price and the applicable Floating Price, multiplied
by (y) the applicable Notional Quantity per Determination Period;
	 
	(ii)	 	if the applicable Floating Price exceeds the applicable Fixed Price, the Floating Price
Payer shall pay Fixed Price Payer on the applicable Payment Date an amount equal to (x)
the difference between the such Floating Price and the applicable Fixed Price, multiplied
by (y) the applicable Notional Quantity per Determination Period;
	 
	(iii)	 	if the applicable Floating Price is equal to the applicable Fixed Price, no amount
shall be owing from either party to the other.

	 	 	 
	Payment Date(s):

	 	With respect to a Determination Period, the 5th New York
Business Day following the last trading day in such
Determination Period.
	 
	 	 
	Settlements:

	 	All payments shall be made by wire transfer of
immediately available funds. All amounts owing between
the parties on the same date under this Transaction and
any other transaction shall be settled on a net basis.

2

 

	 	 	 
	Automatic Termination:

	 	In the event that the
Closing under the Stock
Purchase Agreement does not
occur on or before July 15,
2005 this Transaction shall
terminate automatically and
upon such termination neither
party shall have any further
liability to the other in
relation to this
Transaction.
	 
	 	 
	Assignment and novation Documentation
to be entered into upon Closing under
Stock Purchase Agreement:

	 	Coffeyville Acquisition
agrees upon Closing under the
Stock Purchase Agreement that
(i) it shall enter into the
Assignment and Novation
Agreement set forth as Exhibit
A hereto (the “Assignment and
Novation”) as Assignor and
shall cause Coffeyville
Resources, LLC to enter into
such Assignment and Novation
Agreement as Assignee, (ii) it
shall cause Coffeyville
Resources, LLC to enter into
an ISDA Master Agreement and
related documentation the
Schedule of which shall be
substantially in the form of
Exhibit B hereto and (iii) it
shall cause the Coffeyville
Resources, LLC to enter into
the Intercreditor Agreement
having terms and conditions
specified in Exhibit C hereto,
with uncompleted terms in each
of the exhibits to be
completed as contemplated by
such exhibits.
	 
	 	 
	 

	 	J. Aron agrees that upon
the Closing under the Stock
Purchase Agreement, is shall
enter into the Assignment and
Novation set forth as Exhibit
A hereto as Remaining Party
and shall enter into the ISDA
Master Agreement and related
documentation the Schedule of
which shall be substantially
in the form of Exhibit B
hereto and shall cause its
parent, The Goldman Sachs
Group, Inc., to provide the
guaranty substantially in the
form of Exhibit D hereto.
	 
	 	 
	Defined terms:

	 	“Stock Purchase
Agreement” means the Stock
Purchase Agreement between
Coffeyville Group Holdings,
LLC and Coffeyville
Acquisition LLC dated as of
May 15, 2005.
	 
	 	 
	 

	 	“ISDA Agreement” means
the ISDA Master Agreement
between J. Aron and the
Coffeyville Resources, LLC
substantially in the form of
Exhibit B.

Upon effectiveness of the Assignment and Novation, this transaction shall constitute a
“Transaction” within the meaning of the ISDA Agreement and this confirmation shall
constitute a “Confirmation” within the meaning of the ISDA Agreement that supplements,
forms part of and is subject to the ISDA Agreement.

3

 

Please confirm that the foregoing correctly sets forth the terms of our agreement with
respect to this transaction by signing this confirmation in the space provided below and
immediately returning a copy of the executed confirmation via facsimile to the attention of
Commodity Operations at New York; 1-212-493-9846 (J. Aron & Company).

Very truly yours,

J. Aron & Company

Signed on behalf of J. Aron & Company

	 	 	 	 	 
	By:

	 	/s/ [Illegible]	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Accepted and agreed as of the Trade Date specified above

Coffeyville Acquisition LLC

	 	 	 	 	 
	By:

	 	/s/ [Illegible]	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

4

 

	 	 	 
	APAPAP00648498-18203ATATAT

	 	

AMENDED AND RESTATED UNLEADED GASOLINE SWAP CONFIRMATION

To: Coffeyville Resources, LLC

Attention:
Jack Lipinski

CC: Jeff Resnick

From: J. Aron & Company

We are pleased to confirm the following transaction with you.

	 	 	 
	Contract Reference Number:

	 	887311561 1 1
	 
	 	 
	Original Trade Date:

	 	June 16, 2005
	 
	 	 
	Amendment and Restatement
Date:

	 	June 29, 2006
	 
	 	 
	Notional Quantity per
Determination Period:

	 	As specified in Table A below for the applicable
Determination Period
	 
	 	 
	Total Notional Quantity:

	 	2,348,802,750 Gallons
	 
	 	 
	Fixed Price Payer:

	 	J. Aron & Company (“J. Aron”)
	 
	 	 
	Floating Price Payer:

	 	Coffeyville Resources, LLC (“Coffeyville Acquisition”)
	 
	 	 
	Effective Date:

	 	1 Jul 2005
	 
	 	 
	Termination Date:

	 	30 Jun 2010
	 
	 	 
	Determination Period(s):

	 	20 periods, each consisting of three consecutive calendar
month periods (each, a “Quarter”) commencing with the Quarter in
which the Effective Date occurs and ending with the Quarter in
which the Termination Date occurs, as specified in Table A
below
	 
	 	 
	Fixed Price:

	 	As specified in Table A below for the applicable
Determination Period

	 	 	 	 	 
	Floating Price:

	 	(i)
	 	For each Determination Period to and
including the Determination Period ending
December 31, 2006, the average of the
closing settlement prices on the New York
Mercantile Exchange for the New York Harbor
Unleaded Gasoline contract that is “first
nearby” as of any determination date
during such Determination

1

 

	 	 	 	 	 
	 
	 		 	Period
quoted in US
dollars per gallon;
	 
	 		 	 
	 

	 	(ii)
	 	For each
Determination
Period from and
including the
Quarter commencing
January 1, 2007 and
thereafter, the
average of the
closing settlement
prices on the New
York Mercantile
Exchange for
the Reformulated
Gasoline
Blendstock for
Oxygen Blending
futures contract
that is “first
nearby” as of any
determination date
during such
Determination
Period quoted in US
dollars per
gallon.

Table A:

	 	 	 	 	 
	 	 	Notional	 	 
	Determination Period	 	Quantity per Determination Period (Gallons)	 	Fixed Price per Determination Period (USD/Gallon)
	Jul 1, 05 - Sep 30, 05
	 	125,580,000	 	$[***]
	Oct 1, 05 - Dec 31, 05
	 	125,580,000	 	$[***]
	Jan 1, 06 - Mar 31, 06
	 	122,850,000	 	$[***]
	Apr 1, 06 - Jun 30, 06
	 	124,215,000	 	$[***]
	Jul 1, 06 - Sep 30, 06
	 	125,580,000	 	$[***]
	Oct 1,06 - Dec 31, 06
	 	91,350,000	 	$[***]
	Jan 1, 07 - Mar 31, 07
	 	127,102,500	 	$[***]
	Apr 1, 07 - Jun 30, 07
	 	128,514,750	 	$[***]
	Jul 1, 07 - Sep 30, 07
	 	155,912,400	 	$[***]
	Oct 1, 07 - Dec 31, 07
	 	155,912,400	 	$[***]
	Jan 1, 08 - Mar 31, 08
	 	154,217,700	 	$[***]
	Apr 1, 08 - Jun 30, 08
	 	154,217,700	 	$[***]
	Jul 1, 08 - Sep 30, 08
	 	155,912,400	 	$[***]
	Oct 1, 08 - Dec 31, 08
	 	155,912,400	 	$[***]
	Jan 1, 09 - Mar 31, 09
	 	147,420,000	 	$[***]
	Apr 1,09 - Jun 30, 09
	 	149,058,000	 	$[***]
	Jul 1, 09 - Sep 30, 09
	 	37,674,000	 	$[***]
	Oct 1, 09 - Dec 31, 09
	 	37,674,000	 	$[***]
	Jan 1, 10 - Mar 31, 10
	 	36,855,000	 	$[***]
	Apr 1, 10 - Jun 30, 10
	 	37,264,500	 	$[***]

In relation to any Determination Period:

	(i)	 	if the applicable Fixed Price exceeds the
applicable Floating Price, the Fixed Price Payer shall
pay Floating Price Payer on the applicable Payment Date
an amount equal to (x) the difference between such Fixed
Price and the applicable Floating Price, multiplied by
(y) the applicable Notional Quantity per Determination
Period;
	 
	(ii)	 	if the applicable Floating Price exceeds the
applicable Fixed Price, the Floating Price Payer shall
pay Fixed Price Payer on the applicable Payment Date an
amount equal to (x) the difference between the such
Floating Price and the applicable Fixed Price,
multiplied by (y) the applicable Notional Quantity per
Determination Period;
	 
	(iii)	 	if the applicable Floating Price is equal to the
applicable Fixed Price, no amount shall be owing from
either party to the other.

	 	 	 
	Payment Date(s):

	 	With respect to a Determination
Period, the 5th New York Business Day
following the last trading day in such
Determination Period.

2 of 3

 

	 	 	 
	Settlements:

	 	All payments shall be made by wire
transfer of immediately available funds.
All amounts owing between the parties on
the same date under this Transaction and
any other transaction shall be settled on a
net basis.

This
transaction shall constitute a “Transaction” within the meaning of the
ISDA Agreement dated as of June 24, 2005 between J. Aron & Company and Coffeyville
Resources, LLC and this confirmation shall constitute a
“Confirmation” within the
meaning of such ISDA Agreement that is governed by, supplements, forms part of and is
subject to such ISDA Agreement.

Please confirm that the foregoing correctly sets forth the terms of our agreement with
respect to this transaction by signing this confirmation in the space provided below
and immediately returning a copy of the executed confirmation via facsimile to the
attention of Commodity Operations at New York: 1-212-493-9846 (J. Aron & Company).

Very truly yours,

/s/ Kathy Benini

Kathy Benini

Vice President

J. Aron & Company

Accepted
and agreed as of the Amendment and Restatement Date specified
above

Coffeyville
Resources, LLC

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:
	 	 

APAPAP00648498-18203ATATAT

3 of 3

 

					
	 	 	 	 	 
	 
	 	APAPAP00644964-6542ATATAT
	 	

To: COFFEYVILLE RESOURCES, LLC

Attention: MIKE PUDDY

From: J. Aron & Company

We are pleased to confirm the following Transaction between you and J. Aron & Company.

	 	 	 
	Contract Reference Number:

	 	WNP66EI 1 3
	 
	 	 
	Trade Date:

	 	28 Jun 2006
	 
	 	 
	Total Notional Quantity:

	 	459,343,500.00 U.S. Gallon(s)
	 
	 	 
	Part I
	 	 
	 
	 	 
	Commodity Type:

	 	Nymex No. 2 Heating Oil
	 
	 	 
	Fixed Price Payer:

	 	J. Aron & Company
	 
	 	 
	Floating Price Payer:

	 	COFFEYVILLE RESOURCES, LLC
	 
	 	 
	Effective Date:

	 	05 Jul 2006
	 
	 	 
	Termination Date:

	 	30 Jun 2010
	 
	 	 
	Determination Period(s):

	 	16 Quarterly Period(s) commencing with the Effective Date and
ending on the Termination Date

	 	 	 	 	 	 	 
	Effective	 	Termination	 	Notional Quantity	 	Fixed
	Date	 	Date	 	(U.S. Gallon(s))	 	Price
	05 Jul 2006
	 	29 Sep 2006	 	0.00	 	USD [***] per U.S. Gallon
	02 Oct 2006
	 	29 Dec 2006	 	0.00	 	USD [***] per U.S. Gallon
	02 Jan 2007
	 	30 Mar 2007	 	0.00	 	USD [***] per U.S. Gallon
	02 Apr 2007
	 	29 Jun 2007	 	0.00	 	USD [***] per U.S. Gallon
	02 Jul 2007
	 	28 Sep 2007	 	25,985,400.00	 	USD [***] per U.S. Gallon
	01 Oct 2007
	 	31 Dec 2007	 	25,985,400.00	 	USD [***] per U.S. Gallon
	02 Jan 2008
	 	31 Mar 2008	 	25,702,950.00	 	USD [***] per U.S. Gallon
	01 Apr 2008
	 	30 Jun 2008	 	25,702,950.00	 	USD [***] per U.S. Gallon
	01 Jul 2008
	 	30 Sep 2008	 	25,985,400.00	 	USD [***] per U.S. Gallon
	01 Oct 2008
	 	31 Dec 2008	 	25,985,400.00	 	USD [***] per U.S. Gallon
	02 Jan 2009
	 	31 Mar 2009	 	24,570,000.00	 	USD [***] per U.S. Gallon
	01 Apr 2009
	 	30 Jun 2009	 	24,843,000.00	 	USD [***] per U.S. Gallon
	01 Jul 2009
	 	30 Sep 2009	 	6,279,000.00	 	USD [***] per U.S. Gallon
	01 Oct 2009
	 	31 Dec 2009	 	6,279,000.00	 	USD [***] per U.S. Gallon
	04 Jan 2010
	 	31 Mar 2010	 	6,142,500.00	 	USD [***] per U.S. Gallon
	01 Apr 2010
	 	30 Jun 2010	 	6,210,750.00	 	USD [***] per U.S. Gallon

	 	 	 
	Floating Price:

	 	For each Determination Period, the average of the closing settlement price(s) on
the New York Mercantile Exchange for the Nearby Heating Oil Futures Contract (referenced
below)

1

 

	 	 	 
	Nearby Contract:

	 	First
	 
	 	 
	Pricing Calculation for Part I:

	 	If, with respect to each Determination Period, the Fixed Price exceeds the
Floating Price, the Fixed Price Payer shall pay Floating Price Payer the difference
between the two such amounts multiplied by the Notional Quantity, and if the Floating
Price exceeds the Fixed Price, the Floating Price Payer shall pay the Fixed Price
Payer the difference between the two such amounts multiplied by the Notional Quantity.
If the Floating Price is equal to the Fixed Price, then no payment shall be made.
	 
	 	 
	Part II
	 	 
	 
	 	 
	Commodity Type:

	 	Nymex Unleaded Regular Gasoline
	 
	 	 
	Fixed Price Payer:

	 	COFFEYVILLE RESOURCES, LLC
	 
	 	 
	Floating Price Payer:

	 	J. Aron & Company
	 
	 	 
	Effective Date:

	 	05 Jul 2006
	 
	 	 
	Termination Date:

	 	30 Jun 2010
	 
	 	 
	Determination Period(s):

	 	16 Quarterly Period(s) commencing with the Effective Date and ending on the
Termination Date

	 	 	 	 	 	 	 
	Effective	 	Termination	 	Notional Quantity	 	Fixed
	Date	 	Date	 	(U.S. Gallon(s))	 	Price
	05 Jul 2006
	 	29 Sep 2006	 	0.00	 	USD [***] per U.S. Gallon
	02 Oct 2006
	 	29 Dec 2006	 	0.00	 	USD [***] per U.S. Gallon
	02 Jan 2007
	 	30 Mar 2007	 	0.00	 	USD [***] per U.S. Gallon
	02 Apr 2007
	 	29 Jun 2007	 	0.00	 	USD [***] per U.S. Gallon
	02 Jul 2007
	 	28 Sep 2007	 	25,985,400.00	 	USD [***] per U.S. Gallon
	01 Oct 2007
	 	31 Dec 2007	 	25,985,400.00	 	USD [***] per U.S. Gallon
	02 Jan 2008
	 	31 Mar 2008	 	25,702,950.00	 	USD [***] per U.S. Gallon
	01 Apr 2008
	 	30 Jun 2008	 	25,702,950.00	 	USD [***] per U.S. Gallon
	01 Jul 2008
	 	30 Sep 2008	 	25,985,400.00	 	USD [***] per U.S. Gallon
	01 Oct 2008
	 	31 Dec 2008	 	25,985,400.00	 	USD [***] per U.S. Gallon
	02 Jan 2009
	 	31 Mar 2009	 	24,570,000.00	 	USD [***] per U.S. Gallon
	01 Apr 2009
	 	30 Jun 2009	 	24,843,000.00	 	USD [***] per U.S. Gallon
	01 Jul 2009
	 	30 Sep 2009	 	6,279,000.00	 	USD [***] per U.S. Gallon
	01 Oct 2009
	 	31 Dec 2009	 	6,279,000.00	 	USD [***] per U.S. Gallon
	04 Jan 2010
	 	31 Mar 2010	 	6,142,500.00	 	USD [***] per U.S. Gallon
	01 Apr 2010
	 	30 Jun 2010	 	6,210,750.00	 	USD [***] per U.S. Gallon

2 of 4

 

 

	 	 	 
	Floating Price:

	 	For each Determination Period, the average of the
closing settlement prices on the New York Mercantile
Exchange for the nearby Unleaded gasoline contract
(referenced below)
	 
	 	 
	Nearby Contract:

	 	First
	 
	 	 
	Pricing Calculation for Part II:

	 	If, with respect to each Determination Period, the
Fixed Price exceeds the Floating Price, the Fixed Price
Payer shall pay Floating Price Payer the difference
between the two such amounts multiplied by the Notional
Quantity, and if the Floating Price exceeds the Fixed
Price, the Floating Price Payer shall pay the Fixed Price
Payer the difference between the two such amounts
multiplied by the Notional Quantity. If the Floating Price
is equal to the Fixed Price, then no payment shall be
made.
	 
	 	 
	Applicable to Part I and Part II
	 	 
	 
	 	 
	Common Pricing:

	 	Common Pricing is NOT in effect for this trade
	 
	 	 
	Settlement Date(s):

	 	The last trading day of each Determination Period
	 
	 	 
	Payment Date(s):

	 	5 New York Business Day(s) after each Settlement Date
via wire transfer of Federal Funds

For the sake of good order, please note that the terms of this transaction shall be
agreed solely
between the parties and that any brokers confirmation telex referencing the details of this
transaction
is for informational purposes only.

All provisions contained or incorporated by reference in the 1992 ISDA MASTER AGREEMENT
dated as of 24 June, 2005 between COFFEYVILLE RESOURCES, LLC and J. Aron & Company
will govern this confirmation except as expressly modified herein.

Please confirm that the foregoing correctly sets forth the terms of our agreement with
respect to this
transaction (Contract Reference Number: WNP66EI 1 3) by signing this confirmation in the
space
provided below and immediately returning a copy of the executed confirmation via facsimile
to the
attention of Commodity Operations at:

New York: 1-212-493-9846 (J. Aron & Company)

London: 44-207-774-2135 (Goldman Sachs International)

Singapore: 65-6889-3515 (J. Aron & Company (Singapore) Pte.)

Regards,

J. Aron & Company

Signed on behalf of J. Aron & Company

By:

/s/ Kathy Benini

Kathy Benini

Vice President

J. Aron & Company

3 of 4

 

 

Signed on behalf of COFFEYVILLE RESOURCES, LLC

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 

APAPAP00644964-6542ATATAT

4 of 4

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