Document:

EX-10.17.2

Exhibit
10.17.2

SECOND SUPPLEMENT TO ENVIRONMENTAL AGREEMENT

     This Second Supplement to Environmental Agreement (this “Second Supplement”) is entered into
as of July 23, 2008 by Coffeyville Resources Refining & Marketing, LLC, a Delaware limited
liability company (“Refinery Company”), and Coffeyville Resources Nitrogen Fertilizers, LLC, a
Delaware limited liability company (“Fertilizer Company”), referred to collectively as the
“Parties”. Capitalized terms used but not otherwise defined herein will have the meanings set
forth in the Environmental Agreement, dated as of October 25, 2007, by and between Refinery Company
and Fertilizer Company (the “Environmental Agreement”).

RECITALS

     Refinery Company owns and operates a Refinery, and Fertilizer Company owns and operates a
Fertilizer Plant located adjacent to the Refinery, and Refinery Company and Fertilizer Company
entered into the Environmental Agreement for the provision of certain indemnification and access
rights in connection with environmental matters affecting the Refinery and the Fertilizer Plant,
and certain other related matters. Effective February 15, 2008 Refinery Company and Fertilizer
Company entered into a Supplement to Environmental Agreement (the “Supplement”), in which Refinery
Company and Fertilizer Company acknowledged and agreed upon the transfer of certain property, the
Known Contamination Map and the Comprehensive Coke Management Plan.

     Exhibit C to the Supplement included the Comprehensive Coke Management Plan, and attached as
Appendix A to the Comprehensive Coke Management Plan was the then current agreement between
Fertilizer Company and the contractor responsible for loading, unloading and offsite transportation
of Coke, all as more particularly described in such agreement (the “Original Coke Handling
Agreement”). Fertilizer Company and such contractor have entered into an Amended and Restated Coke
Handling Agreement, effective March 1, 2008, which amends and restates the Original Coke Handling
Agreement (such agreement, the “Amended Coke Handling Agreement”).

     Refinery Company and Fertilizer Company now desire to amend the Supplement to include the
Amended Coke Handling Agreement.

     1. Amendment. Appendix A to Exhibit C to the Supplement is deleted in its entirety,
and is replaced with the Amended Coke Handling Agreement, attached hereto as Appendix A.

     2. Ratify Supplement. Except as expressly amended hereby, the Supplement will remain
unamended and in full force and effect in accordance with its terms. The amendment provided herein
will be limited precisely as drafted and will not constitute an amendment of any other term,
condition or provision of the Supplement. References in the Supplement to “Supplement”, “hereof”,
“herein”, and words of similar import are deemed to be a reference to the Supplement as amended by
this Second Supplement.

 

 

     3. Counterparts. This Second Supplement may be executed in any number of
counterparts, each of which will be deemed to be an original and all of which constitute one
agreement that is binding upon each of the parties, notwithstanding that all parties are not
signatories to the same counterpart.

[signature page follows]

 

 

     The parties have executed this Second Supplement as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Coffeyville Resources Refining & Marketing,	 	 	 	Coffeyville Resources Nitrogen Fertilizers,
	LLC	 	 	 	LLC
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	/s/  John J. Lipinski	 	 	 	By:	 	/s/  John J. Lipinski
	 

	 	 
	 	 	 	 	 	 
	Name:
	 	John J. Lipinski	 	 	 	Name:	 	John J. Lipinski
	 

	 	 
	 	 	 	 	 	 
	Title:
	 	Chief Executive Officer &
President	 	 	 	Title:	 	Chief Executive Officer &
President
	 

	 	 
	 	 	 	 	 	 

 

 

Appendix A

Amended and Restated Coke Handling Agreement

This Amended and Restated Coke Handling Agreement (this “Agreement”) is entered into this
1st day of March, 2008 (the “Effective Date”) between Coffeyville Resources Nitrogen
Fertilizers, LLC, a Delaware limited liability company (“CRNF”) and Savage Services
Corporation, a Utah corporation (“Savage”). CRNF and Savage are each a “Party” and
are collectively the “Parties” to this Agreement.

Background

	A.	 	Coffeyville Resources Refining & Marketing, LLC, a Delaware limited liability company
(“CRRM”) owns and operates a petroleum refinery
located at Coffeyville, Kansas (the “Refinery”).
	 
	B.	 	CRNF owns and operates a fertilizer complex adjacent to the Refinery, consisting of the
hydrogen production facility, the air separation unit, the UAN plant, the ammonia
synthesis loop, the offsite sulfur recovery unit, the utility facilities, the grounds and
related connecting pipes and improvements (the “Fertilizer Complex”).
	 
	C.	 	CRNF and CRRM are parties to a Coke Supply Agreement dated October 25, 2007,
pursuant to which CRRM agrees to sell and deliver to CRNF and CRNF
agrees to purchase and accept delivery of Coke produced at the Refinery.
	 
	D.	 	The Fertilizer Complex converts Coke produced at the Refinery into hydrogen for use in
CRNF’s ammonia synthesis loop, and into purified carbon dioxide
for use in CRNF’s UAN plant.
	 
	E.	 	CRNF (as successor in interest to Farmland Industries, Inc.) and Savage (as successor in
interest to Banks Construction Company, Inc.) are parties to a Coke Handling Agreement
dated July 1, 2000, as amended by a First Addendum dated August 1, 2001, a Second
Addendum dated May 1, 2002, and a Second Amendment dated March 5, 2004 (as so
amended, the “Original Agreement”), under which Savage agreed to haul, store and
handle the Coke and provide certain other services specified therein.
	 
	F.	 	CRNF and Savage desire to amend and restate the Original Agreement on the terms and
conditions set forth in this Agreement.

Agreement

The Parties, desiring to be legally bound, hereby agree as follows:

	1.	 	Recitals and Exhibits. The foregoing background recitals and all Exhibits referenced
in this Agreement are expressly made a part of this Agreement.
	 
	2.	 	Defined Terms. For purposes of this Agreement, the term:

 

 

	 	 	“Agreement” means this Amended and Restated Coke Handling Agreement and the Exhibits hereto;
	 
	 	 	“Clear Water Pit” means the concrete pit located on the northeast side of the Coke Pit used
to settle fines out of the Coke cutting water;
	 
	 	 	“CRNF” has the meaning given in the introductory paragraph;
	 
	 	 	“CRRM” has the meaning given in recital paragraph A;
	 
	 	 	“Coke” means petroleum coke produced at the Refinery, and petroleum coke produced other
than at the Refinery, to be used by CRNF at the Fertilizer Complex;
	 
	 	 	“Coke Pit” means the existing Coke storage pit located within the Refinery;
	 
	 	 	“Coke Unit” means the existing coker unit located within the Refinery;
	 
	 	 	“Commercially Reasonable” means in accordance with commonly accepted trade practices among
reputable businesses and commercial enterprises engaged in the same
or Similar businesses, acting
prudently;
	 
	 	 	“Damages” has the meaning given in Section 13;
	 
	 	 	“day” means any calendar day;
	 
	 	 	“Dispute” has the meaning given in Section 12.1;

	 
	 	 	“Effective Date” has the meaning given in the introductory paragraph;
	 
	 	 	“Equipment” means that equipment provided by Savage to perform the Services under this
Agreement;
	 
	 	 	“Event of Default” has the meaning given in Section 15.1;
	 
	 	 	“Extended Term” has the meaning given in Section 4.2;
	 
	 	 	“Fertilizer Complex” has the meaning given in recital B;
	 
	 	 	“Fertilizer Plant Coke Silo” means the existing Coke silo, 01-T101 located within the
Fertilizer Complex;
	 
	 	 	“Fertilizer Plant Coke Storage Area” means the open containment area south of the Coke crushing
and conveying system located within the Fertilizer Complex;
	 
	 	 	“Fertilizer Plant Fluxant Storage Shed” means the storage shed east of the Fertilizer Plant
Coke Silo and located within the Fertilizer Complex;
	 
	 	 	“Fertilizer Plant Slag Storage Area” means the open containment area south of the gasifier
structure and north of Martin Street, but located within the Fertilizer Complex;

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	 	 	“Fertilizer Plant Weigh Bin Feeder Hopper” means the slagging additive truck
hopper, 0l-T-102 located within the Fertilizer Complex;
	 
	 	 	“Force Majeure” means war (whether declared or undeclared); fire, flood,
lightning, earthquake, storm, tornado, or any other act of God; strikes, lockouts or
other labor difficulties; civil disturbances, riot, sabotage, accident, and official
order or directive, including with respect to condemnation, or industry-wide request or
suggestion by any governmental authority or instrumentality thereof which, in the
reasonable judgment of the Party affected, interferes with such Party’s performance
under this Agreement; any disruption of labor; any inability to secure materials and/or
services, including, but not limited to, inability to secure materials and/or services
by reason of allocations promulgated by authorized governmental agencies; or any other
contingency beyond the reasonable control of the affected Party, which interferes with such
Party’s performance under this Agreement;
	 
	 	 	“Imported Coke” means Coke produced from a source other than the Refinery;
	 
	 	 	“Intermediate Coke Storage Area” means the open storage area at the Refinery
tank farm east of Sunflower Road;
	 
	 	 	“Laws” means all applicable federal, state and local laws, regulations,
ordinances, orders and decrees and other administrative measures, including, without
limitation, those respecting transportation, health, safety and the environment;
	 
	 	 	“Monthly Fees” has the meaning given in Section 11.1
	 
	 	 	“Multi-Party Dispute” has the meaning set forth in Section 12.2;

	 
	 	 	“Original Agreement” has the meaning set forth in recital paragraph E;
	 
	 	 	“Party” and “Parties” has the meaning given in the introductory paragraph;
	 
	 	 	“Primary Term” has the meaning given in Section 4.1;
	 
	 	 	“Refinery” has the meaning given in recital paragraph A;

	 
	 	 	“Related Parties” has the meaning given in Section 13;
	 
	 	 	“Savage” has the meaning given in the introductory paragraph;
	 
	 	 	“Services” has the meaning given in Section 5;
	 
	 	 	“Term” has the meaning given in Section 4.3;
	 
	 	 	“Third, Fourth, and Fifth Sumps” means the concrete sump pits located southeast
of the Fertilizer Plant Coke Storage Area;
	 
	 	 	“Variable Fees” has the meaning given in Section 11.2; and

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	 	 	“WST” means wet short tons.
	 
	3.	 	Original Agreement Superseded. This Agreement amends and restates the Original
Agreement in its entirety; provided this Agreement does not prejudice the rights or claims
that either Party may have, and will not relieve the other party from fulfilling its
obligations accrued pursuant to the Original Agreement as of the Effective Date.
	 
	4.	 	Term.

	 	4.1	 	Primary Term. The primary term (the “Primary Term”) of this
Agreement begins as of the Effective Date and continues for five years, unless earlier terminated in
accordance with the terms of this Agreement.
	 
	 	4.2	 	Extended Term. The Primary Term will automatically extend for successive
periods of five years (each, an “Extended Term”), unless either Party gives
written notice to the other not less than four months prior to the scheduled expiration date
of the Primary Term or the Extended Term then in effect of such Party’s desire not
to renew this Agreement.
	 
	 	4.3	 	Term. The Primary Term and all Extended Terms together are the
“Term” of this Agreement.

	5.	 	Savage’s Services. In return for the compensation described in Section 11 of this
Agreement, Savage will provide each of the services described in this Section 5 (together,
the “Services”):

	 	5.1	 	Refinery Coke Handling.

	 	(a)	 	Provided that the Refinery’s Coke production is available,
Savage, at the direction of CRNF, will remove wet Coke from the mid-point of the Coke
Pit, after the Coke has had time to dewater, and load the Coke onto
Savage’s trucks.
	 
	 	(b)	 	Savage, at the direction of CRNF, will transport, in a safe and
efficient manner, wet Coke from the Coke Pit to either the Intermediate Coke
Storage Area or the Fertilizer Plant Coke Storage Area.
	 
	 	(c)	 	Savage will provide the Coke handling services described in
this Section 5.1 in a manner to support the continuous 24-hour per day, 7 days per
week operation of the Coke Unit and the Fertilizer Complex.

	 	5.2	 	Intermediate Coke Storage Area Management. Savage will receive
and stockpile Coke, to the extent possible, separated in accordance with quality and source, as
requested by CRNF, in the Intermediate Coke Storage Area. Savage will blend,
as directed by CRNF, the various qualities and sources of Coke and will load such
blended Coke onto Savage’s trucks for delivery to the Fertilizer Complex or as
otherwise directed by CRNF.

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	 	5.3	 	Coke Transportation from Intermediate Coke Storage Area. Savage, at the
direction of CRNF, will load into Savage’s trucks and transport, in a safe and
efficient manner, Coke from the Intermediate Coke Storage Area to the Fertilizer
Plant Coke Storage Area.
	 
	 	5.4	 	Fertilizer Plant Coke Handling.

	 	(a)	 	Savage, at the direction of CRNF, will receive, stockpile and handle
blended and unblended Coke at the Fertilizer Plant Coke Storage Area.
Savage will, to the extent reasonably possible, maintain separate stocks of
blended and unblended Coke.
	 
	 	(b)	 	Coke will be delivered from the Refinery and from the Intermediate Coke
Storage Area to the Fertilizer Plant Coke Storage Area by Savage as
outlined in Section 5.1. Coke will also be delivered by truck to the
Fertilizer Plant Coke Storage Area from other sources by outside carriers
as directed by CRNF. The outside carriers will use end-dump trailers to
dump the Coke directly into the Fertilizer Plant Coke Storage Area.
	 
	 	(c)	 	Savage will be responsible for the receipt and handling of Coke in a
method so as to eliminate or control the tracking of Coke by its vehicles
and provide general clean up in and around the Fertilizer Plant Coke
Storage Area.
	 
	 	(d)	 	Savage will feed Coke stored in the Fertilizer Plant Coke Storage Area
into the Fertilizer Plant Coke Silo in an efficient manner at such rates to
support the continuous 24-hour per day, 7-day per week operation of the
Fertilizer Complex.

	 	5.5	 	Fluxant Handling. Savage will receive, unload, manage and store fluxant at the
Fertilizer Plant Fluxant Storage Shed. Savage will transport fluxant from the
Fertilizer Plant Fluxant Storage Shed to and feed into the Fertilizer Plant Weigh
Bin Feeder Hopper, or other fluxant feed hopper that may at some point replace
the Fertilizer Plant Weigh Bin Feeder Hopper, sufficient fluxant to support the
continuous 24-hour per day, 7-days per week operation of the Fertilizer Complex.
	 
	 	5.6	 	Slag Handling. Savage, at the direction of CRNF, will load onto Savage’s trucks
in a safe and efficient manner, slag from the Fertilizer Plant Slag Storage Area
(after CRNF has performed the dewatering process) and deliver it to the
Intermediate Coke Storage Area so as to support the continuous 24-hour per day,
7-days per week operation of the Fertilizer Complex. Savage will work together
with CRNF to manage and maintain the slag stockpile at the Intermediate Coke
Storage Area.
	 
	 	5.7	 	Coke Sweeping. Savage, at the direction of CRNF, will provide sweeping
services at the Fertilizer Complex to eliminate or control fugitive dust created
from Coke and slag handling within the Fertilizer Complex.

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	 	5.8	 	Maintenance of Fertilizer Complex Equipment. Savage will operate and provide
preventive maintenance for the CRNF Coke-handling equipment listed in Exhibit
5.8 in accordance with the schedule listed in Exhibit 5.8; provided that Savage
will not be responsible for repairs to or the replacement for any such equipment.
Savage will make best efforts to monitor the status of the equipment listed in
Exhibit 5.8 on a daily basis and will report problems and/or possible repair needs
to CRNF.
	 
	 	5.9	 	Clear Water Pit Cleaning. CRNF may request that Savage remove Coke fines
from the Clear Water Pit on an as needed basis, not to exceed one time per week.
CRNF will remove the water from the Clear Water Pit prior to Savage removing
the Coke fines. Savage will use Commercially Reasonable efforts to remove the
Coke fines using the same equipment being used to load trucks at the Coke Pit,
subject to CRNF providing Savage with not less than 24 hours notice prior to the
desired cleaning. Savage will deliver the Coke fines to a location within the
Refinery or the Fertilizer Complex as directed by CRNF,
	 
	 	5.10	 	Third, Fourth, and Fifth Sumps Cleaning. Savage, at the direction of CRNF, will
use a front-end loader to drive into and clean coke fines out of the Third, Fourth,
and Fifth Sumps. Savage will clean the Fourth and Fifth at least once every two
weeks but not more often than once every week. Savage will clean the Third
Sump at least once every six months but not more often than once every month.
CRNF will be responsible for removing water from the sumps prior to Savage
performing such cleaning. Savage’s obligations are subject to CRNF providing
Savage with not less than 24 hours notice prior to desired cleaning. Savage will
deliver the Coke fines to a location within the Fertilizer Complex as directed by
CRNF.
	 
	 	5.11	 	Savage Equipment and Personnel. Savage will, at its expense, provide the
Equipment, fuel and qualified employees reasonably sufficient to provide the
Services in a timely manner without interruption. Such Equipment will be
suitable for conducting the operations for which it is used in a safe, efficient and
effective manner without causing damage to the Refinery, the Fertilizer Complex
or any property appurtenant thereto.
	 
	 	5.12	 	Maintenance of Savage Equipment. Savage will maintain its Equipment in good
and safe operating condition, reasonably sufficient to provide the Services in a
timely manner without interruption, and will at its expense provide all fuel and
lubricants for such Equipment.
	 
	 	5.13	 	Hours of Operation. The Parties agree that on the start date of the Primery Term
the Coke Unit is operated on a 14-hour cycle (one cut every seven hours). As
such, Savage will provide the Services up to 20 hours per day five days per week
and up to 12 hours per day two days per week. While the Parties anticipate that
such a schedule will be sufficient to provide the Services, the Parties will
determine any necessary changes CRNF requires to both maintain the operation
of the Fertilizer Complex, at the capacity determined by CRNF, and satisfy

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	 	 	 	CRNF’s obligations to CRRM. It is anticipated that the Coke Unit will eventually be
operated on a 12 hour cycle (one cut every six hours). However, the Parties do not
anticipate a need for additional labor or equipment to accommodate such a change in
cut cycle. Should the change in cut cycle require additional staffing and/or
equipment, the Parties agree to negotiate, in good faith, any required changes and
the related costs.

	6.	 	Additional Services. Savage will, for the additional compensation specified and upon
request , provide the following additional services:

	 	6.1	 	Refinery Services. From time to time, the overhead crane operated by CRRM
may be out of service, causing CRRM to be unable to move wet coke from the
west end of the Coke Pit to the mid-point of the Coke Pit. CRRM, at its
discretion, may engage Savage to move the Coke from the west end to the mid
point of the Coke Pit, subject to Savage and CRRM mutually agreeing on a rate
and payment terms for such work in advance.
	 
	 	6.2	 	Other Services. During the Term, CRNF may ask Savage to provide Coke
crushing, sizing and blending, as directed by CRNF, as well as other Coke
handling services not otherwise specifically described herein. To the extent
Savage can provide such additional services with its existing staff, working its
normal work schedule, and using existing equipment, there will be no additional
charges. Should Savage need to bring in additional staff and equipment, or work
beyond its normal shifts, to provide such additional services, the Parties agree to
negotiate, in good faith, rates for such additional services on a case by case basis
before Savage performs such services.
	 
	 	6.3	 	Delivery of Coke Outside the Fertilizer Complex. Should CRNF require Coke to
be delivered from the Intermediate Coke Storage Area to a location outside of the
Fertilizer Complex or the Refinery, the Parties will negotiate, in good faith, an
additional fee for such services.

	7.	 	Fluxant Facility. In return for the compensation described in Section 11.7 of this
Agreement, Savage will, at CRNF’s request, lease a covered storage facility, subject to
approval by CRNF, suitable for storing and mixing fluxant materials (the “Fluxant
Facility”); provided, Savage may not change the location of the Fluxant Facility or
the terms of the lease of the Fluxant Facility without CRNF’s
prior written consent. CRNF
will be responsible for restoring the Fluxant Facility back to its original condition once
it is no longer needed and may hire Savage to provide such clean up services.
Notwithstanding the foregoing, Savage will be responsible for damage to the Fluxant Facility
to the extent caused by its personnel and/or Equipment. Fluxant is made up of a mixture of
Coke, sand, and pond ash. Savage will make arrangements for the purchase of sand and fly
ash, as directed by CRNF, and will arrange for the sand and pond ash to be delivered to the
Fluxant Facility. CRNF will provide the Coke and any other materials used to create the
fluxant. Savage will deliver the Coke to the Fluxant Facility. Savage will use a front-end
loader to mix the fluxant and will use Commercially Reasonable efforts to mix the fluxant
according to the recipe provided by CRNF, but does not warrant

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	 	 	the consistency or quality of fluxant due to variations in materials and in the mixing
process. Savage will load the mixed fluxant into its trucks and deliver it to the Fertilizer
Plant lux ant Storage Shed to support the continuous 24-hour, 7-day per week operation of
the Fertilizer Complex,
	8.	 	CRNF’s Responsibilities.

	 	8.1	 	Storage Areas. CRNF will provide adequate space for the Fertilizer Plant
Coke Storage Area, Fertilizer Plant Slag Storage Area and Intermediate Coke Storage
Area, each within a reasonable distance from the source of the materials to be
stored therein and connected to such source by hauling roads reasonably sufficient
to allow Savage to meet its obligations hereunder.
	 
	 	8.2	 	Haul Roads. CRNF will provide and maintain adequate roads in or on its
property reasonably sufficient for Savage to haul Coke, slag, fluxant and other
materials pursuant to this Agreement.
	 
	 	8.3	 	Site License. CRNF grants to Savage for the Term a license to keep an office
trailer, fuel tanks (sufficient to allow it to perform its duties under this
Agreement) and associated containment facilities at the Fertilizer Complex, as
determined by CRNF; provided Savage maintains such facilities in compliance
with all applicable Laws.
	 
	 	8.4	 	Refinery Coke Handling. CRNF will use its Commercially Reasonable efforts to
cause CRRM to cooperate with Savage to operate the bridge crane so as to move
wet Coke, generally from the west end of the Coke Pit, to approximately the mid
point of the Coke Pit. In order to facilitate the timely and efficient loading of
trucks by Savage, CRNF will use its Commercially Reasonable efforts to cause
the overhead crane operator to fully cooperate with, and comply with reasonable
requests made by, Savage to move the Coke to the mid-point of the Coke Pit to
make available for loading.
	 
	 	8.5	 	Intermediate Coke Storage Area. CRNF will supply adequate space and facilities
to stockpile all Coke and slag to be stockpiled at the Intermediate Coke Storage
Area. CRNF will supply Savage with adequate facilities at the Intermediate Coke
Storage Area capable of receiving Coke and slag in a manner that will reasonably
control tracking of Coke and slag by Savage’s hauling equipment. In addition,
CRNF will supply adequate facilities to control Coke dust and to support Savage’s
clean-up activities. CRBF will remove the water from the Intermediate Coke
Storage Area as needed to maintain a safe operating area.
	 
	 	8.6	 	Fertilizer Plant Coke Storage Area. CRNF will supply Savage with adequate
facilities and water to control Coke dust and to support Savage’s clean up
activities at the Fertilizer Plant Coke Storage Area.
	 
	 	8.7	 	Maintenance of Fertilizer Plant Equipment. CRNF will at its expense pay or provide all lubricants and supplies required for Savage to provide the services in Section 5.8.

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	9.	 	Solicitation of Savage Employees. During the Term of this Agreement and for a
period of one year after its termination, neither Party will solicit, offer employment
to or in any other manner cause or encourage an employee of the other Party to
terminate employment with such other Party for the purpose of being employed by
the soliciting Party.
	 
	10.	 	Temporary Shut Down. Except for the obligations contained in Section 11.8, the
requirements, obligations and rights under this Agreement will be suspended during any
period that the Refinery or Fertilizer Complex is shut down. A temporary shutdown of
the Refinery or Fertilizer Complex will be deemed to have occurred and be continuing for
such period as CRRM or CRNF may reasonably designate. CRNF will provide notice of
a shutdown of the Refinery or Fertilizer Complex to Savage upon such shutdown.
However, CRNF will continue to pay the Monthly Fee to Savage pursuant to Section
11.1.
	 
	11.	 	Compensation.

	 	11.1	 	Monthly Fee. CRNF will pay to Savage $129,238.53 dollars per month (the
“Monthly Fee”) for the Services, The Monthly Fee is based on the hours of
operation outlined in Section 5.13. If the Coke Unit cut cycle changes on a
permanent basis, requiring additional Savage staffing, the Parties will evaluate
such changes and negotiate, in good faith, any necessary corresponding changes
to the Monthly Fee.
	 
	 	11.2	 	Variable Fees. CRNF will pay to Savage the following variable fees (the
“Variable Fees”):

	 	(a)	 	$0.573 per short ton of Coke produced by the Refinery and handled
by Savage (with CRNF to provide Savage with a daily report of tons produced by the Refinery); and
	 
	 	(b)	 	$0.169 per short ton of Coke received by Savage and delivered by
outside carriers (non-Savage) to the Fertilizer Plant Coke Storage Area per Section
5.4 (with CRNF to provide Savage with a daily report of tons delivered to
the Fertilizer Plant Coke Storage Area by outside carriers).

	 	11.3	 	Rate for Hauling Coke from Intermediate Coke Storage Area to Fertilizer
Plant Coke Storage Area. CRNF will compensate Savage for loading and hauling Coke
from the Intermediate Coke Storage Area to the Fertilizer Plant Coke Storage
Area pursuant to Section 5.3 at the rate of $24.77 per truck (tandem axle) load.
	 
	 	11.4	 	Rate for Handling Imported Coke. When the Monthly Fee and/or Variable Fees
do not apply to Savage’s handling Imported Coke pursuant to Section 5.4, such as
when Imported Coke arrives at the Fertilizer Complex via rail, the Parties will
discuss any additional costs associated with the handling of such Imported Coke
and negotiate a rate, in good faith in advance, on a case by case basis.

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	 	11.5	 	Rate for Slag Handling Services, CRNF will compensate Savage for providing
Slag Handling services pursuant to Section 5.6 at the rate of $10.32 per truck
(tandem axle) load.
	 
	 	11.6	 	Rate for Coke Sweeping Services. CRNF will compensate Savage for providing
Coke sweeping services pursuant to Section 5.7 at the rate of $688.00 per day for
eight hours per day, five days per week, including routine maintenance and
cleaning of equipment. CRNF will compensate Savage for additional hours at the
rate of $69.50 per hour or fraction thereof, calculated in one-half hour increments.
	 
	 	11.7	 	Rate for Fluxant Materials and Mixing. CRNF will reimburse Savage for the
monthly cost of the leased Fluxant Facility pursuant to Section 7, plus 15%.
CRNF will also reimburse Savage for the cost to purchase, load at origin, and
deliver sand and pond ash to the Fluxant Facility, plus 15%. In addition, CRNF
will compensate Savage for fluxant mixing and delivery to the Fertilizer Plant
Fluxant Storage Shed at the rate of $16.98 per WST. Savage will invoice CRNF
for fluxant based on weights from the CRNF scale.
	 
	 	11.8	 	Personnel Availability. In the event that the Refinery or Fertilizer Complex is
shut down, as contemplated by Section 10, Savage will cause its employees to
assist CRNF to fill such duties or functions, for which such employees are
qualified, as may be designated by CRNF.
	 
	 	11.9	 	Adjustment of Monthly Fee and Rates. The Monthly Fee and all rates specified in
this Section 11 will be subject to an adjustment as provided in Exhibit 11.9.
	 
	 	11.10	 	Invoicing and Payments. Savage will invoice CRNF monthly. Such invoices will
specify the Services rendered in reasonable detail. CRNF will pay the undisputed
portion of each invoice within 30 days of the date thereof. Invoices not paid when
due will accrue interest at the rate of 18% per year from the due date until paid.
	 
	 	11.11	 	Invoice Dispute. In the event CRNF disputes one or more items in an invoice, it
will notify Savage in writing of the item or items under dispute and the reasons
therefor. CRNF may withhold payment of the portion of such invoice disputed in
good faith, without payment of interest described above, until the Parties agree to
a settlement thereof. Any portion of a disputed invoice which is later paid, will be
paid with accrued interest thereon from the date of such invoice until paid.
	 
	 	11.12	 	Right to Withhold Services. In addition to any other rights, upon giving 10 days’
written notice, Savage may withhold its services under this Agreement in the
event CRNF fails to pay timely any amounts invoiced by Savage that are not
timely disputed in good faith by CRNF.
	 
	 	11.13	 	Law or Policy Change. If, subsequent to the date of this Agreement, (i) any new
Law or industry requirement is promulgated or the interpretation or enforcement
of any existing Law or requirement is changed, or (ii) CRNF or CRRM adopts
any new procedure or policy, or amends any existing procedure or policy, which
increases or decreases Savage’s costs, then Savage will compute such cost

-10-

 

	 	 	 	changes and adjust the applicable fees and rates to reflect
such changes. CRNF will
have the right to review and approve, which approval will not be unreasonably
withheld, Savage’s calculations for changes hereunder prior to the changes going
into effect; provided any approved changes will be effective from the date on which
Savage begins to incur such additional costs.

	12.	 	Disputes.

	 	12.1	 	Arbitration. The Parties will in good faith attempt to resolve promptly
and amicably any dispute between the Parties arising out of or relating to this
Agreement (each a “Dispute”) pursuant to this Section 12.1. The Parties will first
submit the Dispute to a representative of each Party, who will then meet within 30
days to resolve the Dispute. If the Dispute has not been resolved within 60 days
of the submission of the Dispute to such representatives, the Dispute will be
submitted to a mutually agreed arbitrator who will then meet with the Parties
within 30 days to resolve the Dispute. If the Parties cannot agree on an arbitrator,
each Party will appoint one arbitrator, each such arbitrator being appointed within
10 days thereafter, and the appointed arbitrators will mutually select a third
arbitrator within 10 days after their appointment. The arbitration will be in
accordance with the then current Commercial Arbitration Rules of the American
Arbitration Association. The arbitration will be held in Kansas City, Missouri, or
such other place as the Parties agree, within 30 days of the appointment of the
arbitrator(s). The judgment of the arbitrator(s) will be determined within 30 days
after the conclusion of the arbitration hearing, and will be final and binding on the
Parties and may be entered in any court having jurisdiction. The costs and
expenses of the arbitrator(s) will be borne equally by the Parties, and the Parties
will pay their own respective attorneys’ fees and other costs.
	 
	 	12.2	 	Multi-Party Disputes. The Parties acknowledge that they or, their respective
affiliates contemplate entering or have entered into various additional agreements
with third parties that relate to the subject matter of this Agreement and that, as
a consequence, Disputes may arise hereunder that involve such third parties (each a
“Multi-Party Dispute”). Any such Multi-Party Dispute, to the extent
feasible, will be resolved by and among all the interested parties pursuant to the provisions of
Section 12.1.

	 	13.	 	Indemnification. Each Party will indemnify, defend and hold harmless the other Party,
its parent, subsidiaries, affiliates, successors and assigns and each of their officers,
directors, shareholders and employees (“Related Parties”) from any damage to property, any injury
to person (including death), and any other liabilities, obligations, demands, claims, causes
of action, expenses, fines and losses of any type (including, but not limited to,
reasonable attorneys’ fees and litigation expenses) (collectively, “Damages”) to the extent caused by,
attributable to, resulting from or arising out of (a) the indemnifying Party’s or its
Related Parties’ negligence, gross negligence or willful misconduct in performing or failing to
perform its obligations under this Agreement, (b) the indemnifying Party’s or its Related
Parties’ breach of any representation, warranty or covenant contained in this Agreement
or in any of its Exhibits, or (c) the indemnifying Party’s or its Related Parties’ failure
to

-11-

 

	 	 	 	comply with Law. Where Damages are the result of the joint or concurrent negligence of the
Parties, each Party will indemnify the other in proportion to its respective allocable
share of such joint or concurrent negligence.

	14.	 	Insurance.

	 	14.1	 	Savage will provide and maintain insurance of the following types and amounts:

	 	(a)	 	workers’ compensation insurance as required by Law in the state
having jurisdiction over its employees, and over the location where the Services
are being performed, and employer’s liability insurance with limits of
$500,000 per occurrence;
	 
	 	(b)	 	general liability insurance, including contractual liability,
XCU hazards (explosion, collapse and underground) and completed operations to cover
liability for bodily injury and property damage with a combined single
limit of $2,000,000 per occurrence; and
	 
	 	(c)	 	business automobile liability insurance covering owned, hired
or non-owned automobile equipment, including liability for bodily injury and
property damage with a combined single limit of $2,000,000 per
occurrence.

	 	14.2	 	Policy Provisions. The general liability and business automobile
liability policies will name CRNF as an additional insured for liabilities arising out of Savage’s
performance under this Agreement and will be primary to any other insurance of
CRNF; provided, however, insurance provided by Savage will not cover the
negligent acts or omissions of any of the additional insureds. The workers’
compensation and employer’s liability insurance will add CRNF under an
alternate employer endorsement. Such insurance will specifically provide that it
applies separately to each insured against which claim is made or suit is brought,
except with respect to the limits of the insurer’s liability.
	 
	 	14.3	 	Certificates. Prior to providing any Services, Savage
will furnish CRNF with
certificates of insurance, which document that all coverages and endorsements
required by this Article 14 have been obtained. Renewal certificates will be
obtained by Savage as and when necessary and copies thereof will be forwarded
to CRNF as soon as same are available and in any event prior to the expiration of
the policy so renewed. These certificates will provide for 30 days written notice
to CRNF prior to change or cancellation of any policy. In no event
will CRNF’s
acceptance of an insurance certificate that does not comply with this Section 14.3
constitute a waiver of any requirement of this Article 14.
	 
	 	14.4	 	The provisions of this Article 14 will survive the termination of this Agreement.

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	15.	 	Defaults and Remedies.

	 	15.1	 	Events of Defaults. Any one or more of the following will constitute an
“Event of Default” hereunder:

	 	(a)	 	Either Party fails to pay any amount (other than one
disputed in good faith) within 10 days after written notice that such amount is overdue.
	 
	 	(b)	 	Savage fails to perform one or more of the Services described in
Sections 5.1 — 5.6, or in the manner described in Section 5.13 and Savage has not
cured such failure within 15 days after receipt of written notice thereof
from CRNF; provided, Savage will only be entitled to this 15 day cure
period once during any continuous 12 month period for a failure of the
same type. Any subsequent failure of the same type occurring within 12
months will immediately be deemed an Event of Default without a further
opportunity to cure, unless an additional opportunity to cure is granted by
CRNF (in CRNF’s sole discretion).
	 
	 	(c)	 	Except as otherwise specified above, either Party fails to
perform or observe any other material term or provision of this Agreement and such
failure (i) is not cured within 30 days after written notice thereof has been
given by the non-defaulting Party when the failure can be cured within
such period, or (ii) if the failure cannot be cured within such period, (x)
the defaulting Party fails to initiate or diligently pursue a cure within
such period or (y) the defaulting Party fails to cure the failure within such
additional period as may reasonably be required to effect a cure after the
notice.
	 
	 	(d)	 	Either Party (i) applies for or consents to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its
property, (ii) is unable or admits in writing its inability to pay its debts
generally as they mature, (iii) makes a general assignment for the benefit
of its creditors, (iv) is dissolved or liquidated in full or in part, or (v)
commences a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
consent to any such relief or to the appointment of or taking possession of
its property by any official in an involuntary case or other proceeding
commenced against it.

	 	15.2	 	Remedies. Subject to the notice provisions set forth in Section 17.3 hereof, upon
the occurrence or continuance of an Event of Default, the non-defaulting Party
may at its option do any one or more of the following in any order: (a) terminate
this Agreement without relieving the defaulting Party of any of its obligations
already incurred under this Agreement, or (b) exercise any or all other rights or
remedies otherwise provided by this Agreement or by law or in equity.

-13-

 

	 	15.3	 	Remedies are Cumulative. All remedies provided for in this Agreement
are cumulative and are in addition to each other and to any and all other rights and
remedies provided by law or in equity. The exercise of any right or remedy by
the non-defaulting Party hereunder will not in any way constitute a cure or waiver
of default hereunder, or invalidate any act done pursuant to any notice of default,
or prejudice the non-defaulting Party in the exercise of any of the rights
hereunder.
	 
	 	15.4	 	Limitation of Damages. In no event will either Party be liable for loss
of profits, loss of opportunity, or loss of production which may be suffered by such Party in
connection with the performance of this Agreement; provided that third party
damages subject to indemnification under this Agreement will not be limited by
this Section.
	 
	 	15.5	 	Step-in Rights. If Savage fails to perform one or more of the Services described
in Sections 5.1 — 5.6, or in the manner described in Section 5.13, and such failure
will (in CRNF’s reasonable judgment), without immediate corrective action,
jeopardize the continued operation of the Refinery’s coker units or the Fertilizer
Complex, then regardless if such failure is or is not subject to cure pursuant to
Section 15.1(b), CRNF will have the right, but not the obligation, temporarily at
CRNF’s expense to take over control and operation of the Equipment and perform
the Services itself or using another contractor selected by CRNF (in
CRNF’s sole
discretion) until the earlier of (a) such time as Savage cures such breach as
provided in Section 15.1(b), if applicable, and resumes performing the Services,
or (b) 30 days following the date on which CRNF terminates this Agreement for
cause in accordance with Section 15.2; provided that, during the period that
CRNF (or a CRNF contractor other than Savage) controls and operates the
Equipment, (i) CRNF will have no obligation to pay Savage the Monthly Fees or
the Variable Fees to the extent Savage is not providing Services, (ii) Savage will
reimburse CRNF for fees paid to another contractor to perform the Services
during such period that are in excess of the Monthly Fees and the Variable Fees
that would have been paid to Savage during such period, and
(iii) CRNF will be
responsible for the servicing, maintenance, repairs, damage and loss associated
with CRNF’s or its contractor’s use of the Equipment during such period, and will
indemnify and defend Savage against claims resulting from CRNF’s or its
contractor’s use of the Equipment during such period.

	16.	 	Force Majeure

	 	16.1	 	Performance Excused. No Party will be liable to any other Party for
failure of or delay in performance hereunder (except for the payment of money) to the
extent that the failure or delay is due to Force Majeure. Performance under this
Agreement will be suspended (except for the payment of money then due or to become due)
during the period of Force Majeure to the extent made necessary by the Force Majeure.

-14-

 

	 	16.2	 	No Extension. No failure of or delay in performance pursuant to this
Article 16 will operate to extend the term of this Agreement. Performance under this
Agreement will resume to the extent made possible by the end or amelioration of
the Force Majeure event.
	 
	 	16.3	 	Notice of Force Majeure. Upon the occurrence of any event of Force Majeure,
the Party claiming Force Majeure will notify the other Party promptly in writing
of such event and, to the extent possible, inform the other Party of the expected
duration of the Force Majeure event and the performance to be affected by the
event of Force Majeure under this Agreement. Each Party will designate a person
with the power to represent such Party with respect to the event of Force Majeure.
The Party claiming Force Majeure will use its Commercially Reasonable efforts,
in cooperation with the other Party and such Party’s designee, to diligently and
expeditiously end or mitigate the Force Majeure event. In this regard, the Parties
will confer and cooperate with one another in determining the most cost-effective
and appropriate action to be taken. If the Parties are unable to agree upon such
determination, the matter will be determined by dispute resolution in accordance
with Article 12.

	17.	 	Miscellaneous.

	 	17.1	 	Assignment. This Agreement will extend to and be binding upon the
Parties hereto, their successors and assigns. No assignment by Savage will be permitted
hereunder without the express prior written consent of CRNF, and any assignment
made without such express prior written consent will be void. No assignment by
CRNF will be permitted hereunder without the express prior written consent of
Savage, which will not be unreasonably withheld.
	 
	 	17.2	 	Governing Law. This Agreement will be governed by, and interpreted and
construed in accordance with, the laws of the State of Kansas, without regard to
the conflict of law provisions thereof. To the extent such laws conflict with the
Federal Arbitration Act, the Federal Arbitration Act will apply.
	 
	 	17.3	 	Notices. Any notice required or permitted by this Agreement must be in writing
and delivered as follows, with notice deemed given as indicated: (i) by personal
delivery when delivered personally; (ii) by overnight courier upon written
verification of receipt; or (iii) by certified or registered mail, return receipt
requested, upon verification of receipt. Notice must be sent to the following
addresses or such other address as either party may specify in writing:

If to CRNF:

Coffeyville Resources Nitrogen Fertilizers, LLC

Attention: General Manager
Nitrogen Plant 701 East North Street
Post Office Box 5000

Coffeyville, Kansas 67337

-15-

 

With a copy to:

Coffeyville
Resources Nitrogen Fertilizers, LLC
 Attention: Kevan Vick
 10
East Cambridge Circle Drive, Suite 250
 Kansas City, Kansas 66103

If to Savage:

Savage Services Corporation

Attention: Group Leader, Refinery & Sulphur Services

6340 South 3000 East, Suite 600

Salt Lake City, Utah 84121

With a copy to:

Savage
Services Corporation
 Attention: General Counsel
 6340 South
3000 East, Suite 600
 Salt Lake City, Utah 84121

	 	17.4	 	Headings. The Article and Section headings used in this Agreement are for
convenience only and do not constitute a part of this Agreement.
	 
	 	17.5	 	Standard of Conduct. The Parties will at all times carry out their duties and
responsibilities hereunder in an efficient, cost-effective and prudent manner,
consistent with standards and practices that are customary in the chemical and
industrial gases industries.
	 
	 	17.6	 	Independent Contractor. Savage is an independent contractor in the performance
of each and every part of this Agreement. Savage will have full and complete
control as an independent contractor of its activities and operations, and those of
any subcontractors, under this Agreement. Savage’s employees will be deemed
for all purposes the employees of Savage and subject to Savage’s sole and
exclusive direction, supervision and control.
	 
	 	17.7	 	Severability. Every covenant, term and provision of this Agreement will be
construed simply according to its fair meaning and in accordance with industry
standards and not strictly for or against any Party. Every provision of this
Agreement is intended to be severable. If any term or provision of this
Agreement is illegal or invalid for any reason, such illegality or invalidity will not
affect the validity or legality of the remainder of the Agreement.
	 
	 	17.8	 	Waiver. The waiver by either Party of any breach of any term, covenant or
condition contained in this Agreement will not be deemed to be a
waiver of such term, covenant or condition or of any subsequent breach of the same or any other

-16-

 

	 	 	 	term, covenant or condition contained in this Agreement. No term, covenant or condition of
this Agreement will be deemed to have been waived unless such waiver is in writing.
	 
	 	17.9	 	Entire Agreement. This Agreement represents the entire and integrated
agreement between the Parties with respect to the subject matter hereof and
supersedes all prior or contemporaneous negotiations or representations or prior
agreements, whether oral or written, including the Original Agreement.
	 
	 	17.10	 	Amendment. No amendment or modification of this Agreement may be made
except as may be mutually agreed upon in writing by each Party.
	 
	 	17.11	 	Counterparts. This Agreement may be executed in multiple counterparts, each of
which will be deemed an original, but all of which will constitute one and the
same instrument.

[signature page follows]

-17-

 

Executed as of the date first set forth above.

	 	 	 	 	 
	 	Coffeyville Resources Nitrogen Fertilizers, LLC

 	 
	 	By:  	/s/  Stanley A. Riemann
 	 
	 	 	Name:  	Stanley A. Riemann	 
	 	 	Title: 	COO	 
	 

	 	 	 	 	 
	 	Savage Services Corporation

 	 
	 	By:  	/s/ Jason Ray	 
	 	 	Name:  	Jason Ray	 
	 	 	Title:  	VP Operations	 
	 

Exhibits

Exhibit 5.8 — Coffeyville Resources Equipment Exhibit

Exhibit 11.9 — Adjustment Procedures

-18-

 

Exhibit 5.8

Coffeyville Resources Equipment

	 	 	 	 	 
	 	 	Equipment No.	 	Description
	1. 

	 	1-H-101
	 	Feeder Breaker
	2. 

	 	1-H-102
	 	Crusher Feed Conveyor
	3. 

	 	1-H-10
	 	Bag House at Crusher Building
	4. 

	 	1-H-103
	 	Magnetic Separator at Crusher
	5. 

	 	1-Y-101
	 	Crusher
	6. 

	 	1-H-105
	 	Silo Feed Conveyor
	7. 

	 	1-H-08A
	 	Silo Dust Collector

Maintenance Requirements

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FEEDER BREAKER 01-H-101	 	Daily	 	 	Weekly	 	 	Monthly	 	 	6 months	 
	Grease pick breaker motor (2 pumps)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	All other bearings are on auto greasers.
Report to Maint when greasers are low.
	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 
	Check pick breaker chain drive and gear box
oil levels
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Clean coke accumulations from feeder breaker
drive equipment.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Remove buildup in feed conveyor outlet chute.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Clean hydraulic skid and report any leaks to
maintenance.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CRUSHER FEED CONVEYOR 01-H-102
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grease conveyor head, tail, and idler roller
bearings (2 pumps)
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Grease belt roller bearings (4 pumps)
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Grease conveyor driver motor bearings (1 pump)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	Check driver gear box oil level weekly.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Clean outlet chute of coke buildup.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Remove coke from the conveyor head roller
area to prevent belt wear and tracking
problems.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visually inspect belt tracking and report
problems to Maintenance.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CRUSHER MAGNETIC SEPERATOR 01-H-103
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grease all bearings (2 pumps)
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Check driver gear box oil level.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visually inspect belt tracking. Report
problems to Maintenance.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Daily	 	 	Weekly	 	 	Monthly	 	 	6 months	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COKE CRUSHER 01-Y-101
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grease crusher main bearings (1 pump).
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Grease drive motor bearings (2 pumps)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	Clean tramp metal collection trays.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Check oil level in drive gear box.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Clean inlet and outlet chutes of coke buildup.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Check that chute vibrators are operating when ever
crusher is operating.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Clean Crusher walkway deck.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Verify crusher overhead hoist is under the roof
when not in use.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CRUSHER AREA BAG HOUSE 01-H-10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grease blower bearings (2 pumps)
	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 
	Grease blower motor bearings (2 pumps)
	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 
	Grease blower air lock bearings (1 pump) weekly.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Check Air lock drive gear box oil level.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Visually inspect drive belt.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Report excessive vibration and belt noise to
maintenance.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Check that blast doors are intact
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COKE SILO FEED CONVEYOR 01-H-05
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grease head, tail, and idler roll bearings (3 pumps)
	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 
	Grease belt roller bearings (4 pumps)
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Grease anti reverse arm bearings (1 pump)
	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 
	Visually inspect belt tracking.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Clean conveyor head roller area of any coke buildup.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Clean belt wash trough of coke.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Report damaged idlers to maintenance.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	Verify belt scrapers are operating correctly.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Clean conveyor head scraper drop chute.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Clean drive assembly and pent house area.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Verify silo hoist is stored inside of building when
not used.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COKE SILO BAG HOUSE 01-H-08A
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The blower and drive motor have sealed bearings.
Maint to inspect.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	Visually inspect drive belt.
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 
	Report excessive vibration or noise to maintenance.
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit 11.9

Adjustment Procedures

	1.	 	Adjustments to Fees. During the Term, the Monthly Fee and other rates
specified in Article 11 will be subject to adjustment at the times, in the manner and by the
same percentage as provided in this Exhibit 11.9. For the purpose of calculating any
adjustments, the following component breakdown, the applicable indices and indices base dates,
and adjustment procedures will apply:

Fee: Monthly Fee (Section 11.1)

Component Breakdown:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a) Fuel
	 	 	2	%	 	of rate
	 	 	 	 	(b) Other Costs
	 	 	98	%	 	of rate
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	100	%	 	 	 	 

Fee: Variable Refinery Coke Fee (Section 11.2a)

Component Breakdown:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a) Fuel
	 	 	43	%	 	of rate
	 	 	 	 	(b) Other Costs
	 	 	57	%	 	of rate
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	100	%	 	 	 	 

Fee: Variable Non-Refinery Component Coke Fee (Section 11.2b)

Component Breakdown:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a) Fuel
	 	 	43	%	 	of rate
	 	 	 	 	(b) Other Costs
	 	 	57	%	 	of rate
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	100	%	 	 	 	 

Fee: Hauling Coke from Intermediate Coke Storage Area to Fertilizer Plant Coke
Storage Area Fee (Section 11.3)

Component Breakdown:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a) Fuel
	 	 	43	%	 	of rate
	 	 	 	 	(b) Other Costs
	 	 	57	%	 	of rate
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	100	%	 	 	 	 

Fee: Slag Handling Fee (Section 11.5)

Component Breakdown:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a) Fuel
	 	 	43	%	 	of rate
	 	 	 	 	(b) Other Costs
	 	 	57	%	 	of rate
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	100	%	 	 	 	 

Fee: Sweeping Fee (Section 11.6)

Component Breakdown:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a) Fuel
	 	 	15	%	 	of rate
	 	 	 	 	(b) Other Costs
	 	 	85	%	 	of rate
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	100	%	 	 	 	 

 

 

Fee: Fluxant Fee (Section 11.7)

Component Breakdown:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a) Fuel
	 	 	15	%	 	of rate
	 	 	 	 	(b) Other Costs
	 	 	85	%	 	of rate
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	100	%	 	 	 	 

	2.	 	Adjustment Indices Applicable to Fee Components:

	 	(a)	 	Fuel. The “Fuel” component will be adjusted at the start of the Primary
Term, and on the 1st day of each subsequent quarter thereafter (March, June,
September, December) throughout the balance of the Term. The fuel adjustment will be
based upon changes in the Lundberg Index for No. 2 low sulfur, branded rack diesel
for Wichita, Kansas. The Lundberg price published for the third Friday of the month
immediately preceding each fuel adjustment date will be used for calculating each
adjustment. The adjustment will use the following base costs:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Lundberg
	 	 	2.00	 	 	 	 	 
	 	 	 	 	Federal Tax
	 	 	0.244	 	 	 	 	 
	 	 	 	 	Kansas State Tax
	 	 	0.260	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total Price
	 	$	2.504	 	 	per gallon

	 	(b)	 	Other Costs. The “Other Costs” component will be adjusted annually
beginning March 1, 2009, based upon changes in the Producer Price Index, special
commodities grouping, not seasonally adjusted, industrial commodities less fuels and
related products and power as first published monthly by the U.S. Department of Labor
in its PPI Detailed Report publication. The immediately preceding December
index will be used for each March 1st adjustment. The base index will be the index for
December 2007, which is 173.2. The “Other Costs” component will not be adjusted more
than 3.0% per contract year from the base index.

	3.	 	Method of Calculating Adjustments. Each of the fee component percentages will be
increased or decreased by a value multiplier determined by the division of the current
index value by the base index value. The sum of the resultant adjusted component
percentages becomes the fee multiplier. The base fee is then increased or decreased by
multiplying the fee by the fee multiplier. The value multiplier percentage, fee component
percentages and fee multiplier will be rounded to three decimal places (one percentage
decimal place). The fee will be adjusted to the same number of decimal places in the
respective base rates. The fee multiplier will never be less than the value of 1.000. An
example of such calculation is attached to the end of this Exhibit.
	 
	4.	 	Discontinued. Suspended or Unrepresentative Indexes. If any of the above defined
indexes are discontinued or suspended, or if either Party determines in good faith that any
of the defined indexes are not representative of true changes in cost, the Parties agree to
negotiate, in good faith, for suitable substitutes for such indexes.

 

 

SAVAGE SERVICES CORPORATION

Rate Adjustment Worksheet

Coffeyville Resources

Effective Date March 1, 2008

Index Data

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	A	 	 	B	 	 	C	 
	 	 	 	 	Index Data	 
	Component	 	Index Information	 	Current	 	 	Base	 	 	Value Multiplier	 
	 	 	 	 	 	 	 	 	 	 	 	 	A/B	 
	(1) Fuel	 	 
	 	 	3.3226	 	 	 	2.5040	 	 	 	132.7	%
	 	 	Lundberg #2 LS. Branded, Wichita.
KS

3rd Friday of prior month
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lundberg Index Value                                                02/15/03
	 	 	2.8188	 	 	 	2.0000	 	 	 	 	 
	 	 	Federal Fuel Tax
	 	 	0.2440	 	 	 	0.2440	 	 	 	 	 
	 	 	Kansas Fuel Tax
	 	 	0.2600	 	 	 	0.2600	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Start of Primary Term, (March
1, 2008)
	 	 	3.3228	 	 	 	2.5040	 	 	 	 	 
	 	 	Quarterly Thereafter (Jun 1, Sep
1, Dec 1, Mar 1)
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(2) Other Costs	 	 
	 	 	173.2	 	 	 	173.2	 	 	 	100.0	%
	 	 	PPI-WPU03T15M05, Industrial
	 	Dec-07	 	Dec-07	 	 	 	 
	 	 	Commodities less
fuels-Prior Dec
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annually Beginning March 1,2009
	 	 	 	 	 	 	 	 	 	 	 	 

Index & Component Data

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	A	 	 	B	 	 	C	 	 	D	 	 	E	 
	 	 	 	 	 	 	Index Data	 	 	Component Percentage Data	 
	 	 	 	 	 	 	Current	 	 	Base	 	 	Value Multiplier	 	 	Base	 	 	Adjusted	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	A/B	 	 	 	 	 	 	C x D	 
	 
	 	Fee Multiplier #1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(1) Fuel
	 	 	 	 	3.3226	 	 	 	2.5040	 	 	 	132.7	%	 	 	2.0	%	 	 	2.7	%
	(2) Other Costs
	 	 	 	 	 	 	173.2	 	 	 	173.2	 	 	 	100.0	%	 	 	98.0	%	 	 	98.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	100.0	%	 	 	100.7	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	F-1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Fee Multiplier
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Fee Multiplier #2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(1) Fuel
	 	 	 	 	 	 	3.3226	 	 	 	2.5040	 	 	 	132.7	%	 	 	43.0	%	 	 	57.1	%
	(2) Other Costs
	 	 	 	 	 	 	173.2	 	 	 	173.2	 	 	 	100.0	%	 	 	57.0	%	 	 	57.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	100.00	%	 	 	114.1	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	F-2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Fee Multiplier
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Fee Multiplier #3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(1) Fuel
	 	 	 	 	 	 	3.3226	 	 	 	2.5040	 	 	 	132.7	%	 	 	15.0	%	 	 	19.9	%
	(2) Other Costs
	 	 	 	 	 	 	173.2	 	 	 	173.2	 	 	 	100.0	%	 	 	85.0	%	 	 	85.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	100.00	%	 	 	104.9	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	F-3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Fee Multiplier

Fee Data

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 		 	F	 	 	G	 	 	H	 	I	 
	 	 	 		 	Fee Data	 	Adjusted	 
	 	 	 		 	Ref	 	Multiplier	 	 	Base	 	 	Unit of Measure	 	Fee	 
	 	 	Section	 	 	 	 	 	 	 	 	 	 	 	 	 	F x G	 
	 
	 	 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Monthly Fee
	 	11.1		 	F-1	 	 	100.7	%	 	$	129,238.53	 	 	Month	 	$	130,143.20	 
	Refinery Coke
	 	11.2	(a)	 	F-2	 	 	114.1	%	 	$	0.573	 	 	Short Ton	 	$	0.654	 
	Non-Refinery Coke Fee
	 	11.2	(b)	 	F-2	 	 	114.1	%	 	$	0.169	 	 	Short Ton	 	$	0.193	 
	Hauling Coke from
Intermediate Coke Storage
Area to Fertilizer Plant Coke Storage Area
	 	11.3		 	F-2	 	 	114.1	%	 	$	24.77	 	 	Truck Load	 	$	28.26	 
	Slag Handling Services
	 	11.5		 	F-2	 	 	114.1	%	 	$	10.32	 	 	Truck Load	 	$	11.78	 
	Coke Sweeping Services
	 	 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Daily Rate
	 	11.6		 	F-3	 	 	104.9	%	 	$	688.00	 	 	Day	 	$	721.71	 
	Additional Hours
	 	11.6		 	F-3	 	 	104.9	%	 	$	69.50	 	 	Hour	 	$	72.91	 
	Fluxant Mixing & Transporting
	 	11.7		 	F-3	 	 	104.9	%	 	$	16.98	 	 	Short Ton	 	$	17.81	 

 

 

SAVAGE SERVICES CORPORATION

Notice of Rate Adjustment

Coffeyville Resources

Effective Date: March 1, 2008

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Previous	 	 	New	 
	 	 	Unit of	 	Rate	 	 	Rate	 
	Description	 	Measure	 	Base	 	 	3/1/2008	 
	 
	 	 	 	 	 	 	 	 	 	 
	Monthly Fee
	 	Month	 	$	129,238.53	 	 	$	130,143.20	 
	Refinery Coke
	 	Short Ton	 	$	0.573	 	 	$	0.654	 
	Non-Refinery Coke Fee
	 	Short Ton	 	$	0.169	 	 	$	0.193	 
	Hauling Coke from Intermediate Coke Storage
	 	Truck Load	 	$	24.77	 	 	$	28.26	 
	Area to Fertilizer Plant Coke Storage Area
	 	 	 	 	 	 	 	 	 	 
	Slag Hauling Services
	 	Truck Load	 	$	10.32	 	 	$	11.78	 
	Coke Sweeping Services
	 	 	 	 	 	 	 	 	 	 
	Daily Rate
	 	Day	 	$	688.00	 	 	$	721.71	 
	Additional Hours
	 	Hour	 	$	69.50	 	 	$	72.91	 
	Fluxant Mixing & Transporting
	 	Short Ton	 	$	16.98	 	 	$	17.81	 

Refer to Attached Worksheet for Additional InformationEX-10.46

Exhibit 10.46

[Form
of Pledge and Escrow Agreement]

PLEDGE AND ESCROW AGREEMENT

among

CVR ENERGY, INC.,

as Pledgor,

WELLS FARGO BANK, N.A.,

as Trustee,

and

WELLS FARGO BANK, N.A.,

as Escrow Agent

Dated as of [l], 2008

 

 

PLEDGE AND ESCROW AGREEMENT

     PLEDGE AND ESCROW AGREEMENT, dated as of [l], 2008 (this “Agreement”), among CVR
Energy, Inc. (the “Company”), as pledgor, Wells Fargo Bank, N.A., as trustee under the
Indenture referred to below (the “Trustee”), and Wells Fargo Bank, N.A., in its capacity as
securities intermediary and escrow agent (the “Escrow Agent”).

RECITALS

     The Company and the Trustee have entered into the Indenture, dated as of [l], 2008, as
the same may be amended or supplemented from time to time (the “Indenture”), pursuant to
which the Company is issuing $[l] aggregate principal amount of its [l]% Convertible
Senior Notes due 2013 (the “Firm Securities”). The Firm Securities are being sold pursuant
to the Underwriting Agreement, dated [l], 2008 (the “Underwriting Agreement”), among
the Company and the several underwriters named in Schedule I thereto (the “Underwriters”).
The Company may issue up to an additional $[l] aggregate principal amount of its [l]%
Convertible Senior Notes due 2013 (the “Optional Securities” and, together with the Firm
Securities, the “Securities”) to the extent the Underwriters exercise their over-allotment
option pursuant to the Underwriting Agreement.

     The Company desires to establish an escrow account with the Escrow Agent into which certain
Government Securities (as defined in Section 2(a) hereof) will be, simultaneously with the issuance
of the Firm Securities (and simultaneously with the issuance of any Optional Securities), deposited
by the Underwriters, on behalf of the Company, to be held as security for the payment and
performance of the Secured Obligations (as defined in Section 3(a) hereof) and distributed in
accordance with the terms and conditions set forth herein.

     The Escrow Agent is willing to serve as the escrow agent in respect of the Escrow Assets (as
defined in Section 2(a) hereof) and the collateral agent in respect of the Collateral (as defined
in Section 3(a) hereof), in each case in accordance with the terms and conditions hereof.

     Capitalized terms used but not defined herein shall have the meanings assigned to such terms
in the Indenture.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

 

     Section 1. Establishment of Escrow Account; Appointment of Escrow Agent.

          (a) The Escrow Agent shall establish on the date hereof and maintain in the Trustee’s name an
escrow account that shall include two subaccounts: (i) a “securities account” (as defined in
Section 8-501(a) of the Uniform Commercial Code of the State of New York as in effect from time to
time (the “New York UCC”)), which shall be entitled “[l]” (the “Securities
Subaccount”) and (ii) a non-interest-bearing “deposit account” (as defined in Section
9-102(a)(29) of the New York UCC), which shall be entitled “[l]” (the “Deposit
Subaccount,” and together with the Securities Subaccount, the “Escrow Account”). Any
assets received by the Escrow Agent from or on behalf of the Company in accordance with this
Agreement shall be immediately credited and held in the Escrow Account. The assets credited to the
Escrow Account shall be applied and disbursed only as provided herein. The Escrow Agent shall
segregate the assets credited to the Escrow Account from its other assets held as an agent or in
trust. The Escrow Agent agrees and acknowledges that it shall treat all property held by it in the
Securities Subaccount as “financial assets” (as defined in Section 8-l02(a)(9) of the New York UCC)
in accordance with Section 8-501 (or successor section) of the New York UCC.

          (b) The Company and the Trustee, at the direction of the Company, hereby appoint the Escrow
Agent to act as the escrow agent under this Agreement, and the Escrow Agent hereby accepts such
appointment and agrees to hold and administer the Escrow Assets and any other Collateral in
accordance with the terms and subject to the conditions set forth herein.

     Section 2. Deposit to the Escrow Account; Investments.

          (a) (i) Simultaneously with the issuance of the Firm Securities, the Company shall, or shall
cause the Underwriters, on behalf of the Company, to deliver to the Escrow Agent for deposit in the
Securities Subaccount, Government Securities that mature on or prior to the Business Day prior to
the due date of each Scheduled Interest Payment (as defined in Section 4(b) below) in respect of
the Firm Securities in an aggregate amount at maturity sufficient to pay each of such Scheduled
Interest Payments due in respect of the Firm Securities and having the terms set forth on Schedule
I hereto (the “Initial Escrow Assets”). As used herein, “Government Securities”
means zero-coupon securities comprising stripped principal or interest components of U.S. Treasury
debt obligations, excluding Treasury Inflation-Protected Securities.

               (ii) To the extent Optional Securities are issued, simultaneously with the issuance of such
Optional Securities, the Company shall, or shall cause the Underwriters, on behalf of the Company,
to deliver to the Escrow Agent for deposit in the Securities Subaccount additional Government
Securities that mature on or prior to the Business Day prior to the due date of each Scheduled
Interest Payment in respect of the Optional Securities in an aggregate amount at maturity
sufficient to pay each of such

2

 

Scheduled Interest Payments due in respect of the Optional Securities (any such additional
Government Securities, together with the Initial Escrow Assets and any other cash, Government
Securities or property deposited, credited to or held from time to time in the Escrow Account as
provided herein, the “Escrow Assets”).

          (iii) All Government Securities and other property (other than funds) to be
deposited with the Escrow Agent pursuant to this Agreement shall be deposited in
the Securities Subaccount:

[l]

          (iv) All funds to be deposited with the Escrow Agent pursuant to this
Agreement shall be deposited in the Deposit Subaccount:

[l]

          (b) Upon the maturity of any Government Securities, the Escrow Agent shall hold the proceeds
of such Government Securities in the Deposit Subaccount, until any withdrawal of such funds by the
Escrow Agent in accordance with Section 4 hereof.

          (c) Promptly following the deposit of any funds (other than the proceeds of Government
Securities upon maturity as described in Section 2(b) above) into the Escrow Account pursuant to
the second sentence of Section 4(c) hereof or otherwise, the Company may provide written
instructions to the Escrow Agent as to Government Securities in which funds are to be invested and,
upon such instructions, the Escrow Agent shall invest such funds in the Escrow Agent’s name in
Government Securities as so instructed by the Company. If the Company does not provide such
instructions, the Escrow Agent shall hold the such funds in the Deposit Subaccount. Any such funds
shall remain so invested or held until any withdrawal by the Escrow Agent in accordance with
Section 4 hereof.

          (d) All Government Securities from time to time credited to the Escrow Account constituting a
“security entitlement” (as such term is defined in Section 8-102(a)(17) of the New York UCC) shall
be held in the name of the Escrow Agent and in no event shall the Company be or be deemed to be the
“entitlement holder” (as such term is defined in Section 8-102(a)(7) of the New York UCC) with
respect thereto.

     Section 3. Security Interest.

          (a) Pledge and Assignment. As security for the prompt and complete payment when due
(whether at the stated maturity, by acceleration or otherwise) of the Secured Obligations (as
defined below), the Company hereby irrevocably pledges, assigns as collateral security and grants
to the Trustee, for the benefit of the Trustee and

3

 

the equal and ratable benefit of the Holders of the Securities, a first priority continuing
security interest in, and control of, all of the Company’s right, title and interest in and to all
of the following whether now owned or existing or hereafter acquired or created (collectively, the
“Collateral”):

          (i) the Escrow Account (including the Security Subaccount and Deposit
Subaccount), all security entitlements from time to time carried in the Escrow
Account, all assets and funds from time to time held in the Escrow Account;

          (ii) all investments of funds in the Escrow Account and, whether held by or
registered in the name of the Trustee, the Escrow Agent or any nominee thereof, all
certificates and instruments, if any, from time to time representing or evidencing
any Escrow Assets or other property held in or credited to the Escrow Account and
all security entitlements to such Escrow Assets or such other property;

          (iii) all promissory notes, certificates of deposit, deposit accounts, checks
and other instruments evidencing Escrow Assets or other property from time to time
delivered to or otherwise possessed by the Escrow Agent, for or on behalf of the
Company, in substitution for or in addition to any or all of the then existing
Collateral;

          (iv) all interest, dividends, principal, cash, instruments, securities and
other properties from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the then existing Collateral;

          (v) all books, statements and records pertaining to the Collateral; and

          (vi) all “proceeds” (as such term is defined in Section 9-102(a)(64) of the
New York UCC and, in any event, shall include, without limitation, all interest,
dividends or other income from the Collateral, collections thereon or distributions
or payments with respect thereto) of the foregoing.

     For the purposes of this Agreement, “Secured Obligations” means the collective
reference to all liabilities and obligations of the Company (including, without limitation,
interest and premium, if any, accrued on the Securities after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Company, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding), whether direct or indirect, absolute or contingent, due or

4

 

become due, or now existing or hereafter incurred, that may arise under, out of, or in
connection with, the Securities, the Indenture and this Agreement.

          (b)
Appointment of Escrow Agent as Collateral Agent. The Company
and the Trustee, at the direction of
the Company, hereby appoint the Escrow Agent to act as the Trustee’s collateral agent, on behalf
of the Holders of the Securities, for purposes of perfecting the foregoing pledge, assignment and
security interest in the Collateral, and the Escrow Agent hereby accepts such appointment. For so
long as the foregoing pledge, assignment and security interest remains in effect, the Escrow Agent
hereby waives any right of set off or banker’s lien that it, in its individual capacity or in its
capacity as an agent for Persons other than the Trustee and the Holders of the Securities, may have
with respect to any or all of the Collateral.

          (c) Delivery of Collateral. All items of Collateral (other than the Escrow Account
itself) shall be credited to the Escrow Account. All certificates or instruments, if any,
representing or evidencing all or any portion of the Collateral shall be held by the Escrow Agent
on behalf of the Trustee pursuant hereto and shall be delivered by or on behalf of the Company in
suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of
transfer or assignments in blank, all in form and substance reasonably satisfactory to the Trustee,
and all in form and substance sufficient to convey valid record ownership in such Collateral to the
Escrow Agent and a valid security interest in such Collateral to the Trustee. All securities in
uncertificated or book-entry form and all security entitlements, if any, in each case representing
or evidencing the Collateral shall be registered in the name of the Escrow Agent (or any of its
nominees), as the registered owner thereof, by book-entry or as otherwise appropriate so as to
properly identify the interest of the Escrow Agent therein. In no event will any item of
Collateral be registered in the name of, payable to the order of, or specially indorsed to any
person other than the Escrow Agent (or any of its nominees), unless such item has been indorsed to
the Escrow Agent or in blank. The Escrow Agent shall have the right at any time to exchange
certificates or instruments representing or evidencing all or any portion of the Collateral for
certificates or instruments of smaller or larger denominations in the same aggregate amount.

          (d) Maintaining the Escrow Account. So long as this Agreement is in full force and
effect:

          (i) subject to the other terms and conditions of this Agreement, all
Collateral held by the Escrow Agent pursuant to this Agreement shall be held in the
Escrow Account, which shall be subject to the exclusive dominion and control of the
Trustee for the benefit of the Trustee and the equal and ratable benefit of the
Holders of the Securities;

5

 

          (ii) the Escrow Account and all Collateral from time to time therein shall
remain segregated from all other funds or other property otherwise held by the
Trustee or the Escrow Agent, as applicable;

          (iii) all amounts (including, without limitation, any cash, Escrow Assets, or
interest or other proceeds in respect of the Escrow Assets held in the Escrow
Account) shall remain on deposit in the Escrow Account until withdrawn in
accordance with this Agreement; and

          (iv) the Escrow Agent shall take all steps necessary to ensure that the
Trustee is the holder or entitlement holder (as the case may be) of all of the
Collateral, and that either the Trustee or, to the extent required by applicable
law, the Escrow Agent, for the benefit of the Trustee, is the holder or entitlement
holder of all Escrow Assets on the books of the applicable Federal Reserve Bank or
other applicable securities intermediary.

          (e) Further Assurances. At any time and from time to time, upon the written request
of the Trustee or the Escrow Agent, the Company shall, at the Company’s sole expense, execute and
deliver, and have recorded, such further instruments and documents, and take all further action as
the Trustee or the Escrow Agent may reasonably request for the purpose of obtaining or preserving
the full benefits of this Agreement and of the rights and powers herein granted, and the Company
shall take all necessary action to preserve, defend and protect the security interest created
hereby as a first priority, perfected lien and encumbrance upon the Collateral. Without limiting
the foregoing, such actions that may be required to be performed or carried out by the Company may
include, (i) filing any financing or continuation statements under the New York UCC (or
other similar laws) in effect in any jurisdiction with respect to the Collateral and (ii)
to the extent applicable, taking any actions necessary to enable the Trustee or the Escrow Agent on
behalf of the Trustee to obtain “control” (within the meaning of the New York UCC) with respect to
the Collateral.

     Section 4. Distributions from Escrow Account. Escrow Assets, including any funds on
deposit in the Escrow Account, shall be withdrawn by the Escrow Agent and transferred only in
accordance with this Section 4:

          (a) Event of Default.

          (i) For so long as an Event of Default has occurred and is continuing under
the Indenture, no amounts shall be disbursed from the Escrow Account, except as
provided in Section 4(a)(ii) or Section 4(b)(i) hereof.

6

 

          (ii) If (A) any Event of Default has occurred and is continuing under
Section 7.01 of the Indenture or (B) any other Event of Default has
occurred and is continuing that results in the acceleration of the payment of
principal, interest, premium, if any, pursuant to the terms of the Indenture:

          (1) The Trustee may, without notice to the Company except as required
by applicable law and at any time or from time to time, direct the Escrow
Agent to sell, liquidate, assign, give option or options to purchase, or
otherwise dispose of all Collateral, or any part thereof, and transfer all
proceeds thereof to the Paying Agent to apply such funds in accordance
with Section 7.06 of the Indenture.

          (2) The Trustee (and/or the Escrow Agent at its direction and on its
behalf) may also, in addition to the other rights and remedies provided
for herein, exercise in respect of the Collateral all the rights and
remedies of a secured party under the New York UCC or any applicable law,
and may also, without demand of performance or other demand, presentment,
protest, advertisement, or notice of any kind (except as specified below),
forthwith sell, liquidate, assign, give option or options to purchase, or
otherwise dispose of and deliver the Collateral or any part thereof (or
contract to do any of the foregoing), in one or more parcels at public or
private sales, at any exchange, broker’s board or at any of the Trustee’s
or the Escrow Agent’s offices or elsewhere, for cash, on credit or for
future delivery, and upon such other terms as the Trustee may deem
advisable and at such prices as it may deem best. The Trustee shall have
the right upon any such public sale or sales, and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any
part of the Collateral so sold, free of any right or equity of redemption
in the Company, which right or equity is hereby waived and released. To
the extent permitted by applicable law, the Pledgor waives all claims,
damages and demands it may acquire against the Escrow Agent or the Trustee
arising out of the exercise by them of any rights hereunder. The parties
recognize and agree that the Escrow Assets are of a type customarily sold
on a recognized market and, as such, no notice of proposed sale or other
disposition of Collateral shall be required. Notwithstanding the
foregoing, if any notice of a proposed sale or other disposition of
Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other

7

 

disposition. The Trustee and the Escrow Agent shall not be obligated
to make any sale of Collateral regardless of notice of sale having been
given. The Trustee (or the Escrow Agent on its behalf) may adjourn any
public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made
at the time and place to which it was so adjourned.

          (3) Any cash held by the Escrow Agent as Collateral and all net cash
proceeds received by the Trustee or the Escrow Agent in respect of any
action taken by it pursuant to this Section 4(a), in the discretion of the
Trustee, may be held by the Trustee or the Escrow Agent as collateral for,
and then or at any time thereafter be applied (after payment of any costs
and expenses incurred in connection with any action taken by it pursuant
to this Section 4(a) and the payment of any amounts payable to the Trustee
or the Escrow Agent, including, without limitation, reasonable attorneys’
fees and disbursements and any other amount required by any provision of
law, including, without limitation, Section 9-615(a)(1) of the New York
UCC) in whole or in part by the Trustee for the equal and ratable benefit
of the Holders of the Securities against all or any part of the Secured
Obligations in such order as described in Section 7.06 of the Indenture.

          (iii) Notwithstanding anything in this Agreement to the contrary, the Company
shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay the Secured Obligations and
the fees and disbursements of any attorneys employed by the Escrow Agent or the
Trustee to collect such deficiency.

          (b) Scheduled Interest Payments. Pursuant to the Securities and Section 3.01 of the
Indenture, from the date of this Agreement through and including [l], 2011, the Company is
obligated to make scheduled payments of interest on the Securities on each of [l], 2009,
[l], 2009, [l], 2010, [l], 2010, [l], 2011 and [l], 2011 (each, a
“Scheduled Interest Payment”). The Scheduled Interest Payments due on the Securities shall
be made from (1) amounts held in the Escrow Account in accordance with the procedures set
forth in Section 4(b)(i) hereof or (2) at the election of the Company, other sources of
funds available to the Company not held in the Escrow Account (“Company Funds”) in
accordance with the procedures set forth in Section 4(b)(ii) hereof; provided,
however, that nothing herein shall be construed as limiting the Company’s obligation to
make all interest payments due on the Securities at the times and in the amounts required by the
Indenture and the Securities, which obligation shall be absolute and unconditional.

8

 

          (i) Payment of Interest from the Escrow Account. Unless the Company
notifies the Escrow Agent of its election to make a Scheduled Interest Payment from
Company Funds in accordance with Section 4(b)(ii) hereof or the Trustee takes
action in accordance with 4(a)(ii) hereof, the Escrow Agent shall transfer from the
Escrow Account to the Paying Agent, as set forth in Section 4(d)(i) hereof,
proceeds from the relevant Government Securities that mature on or prior to the
Business Day prior to the due date of the related Scheduled Interest Payment
(and/or from other funds in the Escrow Account) necessary to provide for payment in
full of such Scheduled Interest Payment in respect of the Securities. The transfer
shall occur at or prior to l[1:00 p.m.], New York City time, on the Business
Day immediately prior to the due date of such Scheduled Interest Payment. The
Escrow Agent shall notify the Company in writing that it has made such transfer to
the Paying Agent.

          (ii) Payment of Interest by the Company from Company Funds. If the
Company elects to make any Scheduled Interest Payment from Company Funds, the
Company shall notify the Escrow Agent in writing of such intention not later than
five Business Days prior to the due date of the relevant Scheduled Interest
Payment. Subject to Section 4(c) hereof, the Company may, after payment in full of
such Scheduled Interest Payment and upon at least three Business Days’ prior
notice, direct the Escrow Agent (with a copy to the Trustee), so long as no Default
has occurred and is continuing, to release to the Company cash held in the Escrow
Account, the amount of which is less than or equal to the amount of the Company
Funds so expended in making the Scheduled Interest Payment. Any such direction
shall include an Officer’s Certificate of the Company as to (A) the absence
of the occurrence or continuance of any Default on the date of such notice and
after giving effect to such direction and (B) the amount of Company Funds
expended in making the prior Scheduled Interest Payment. Upon receipt of such
notice, the Escrow Agent shall pay over or transfer to the Company the requested
amount.

          (c) Required Funds and Excess Escrow Funds. The Company shall ensure that sufficient
Government Securities and cash remain in the Escrow Account at all times such that the amount equal
to the sum of (A) the aggregate amount payable at maturity in respect of Government
Securities maturing prior to the due dates of all remaining Scheduled Interest Payments and
(B) any cash held in the Escrow Account (collectively, the “Available Funds”) is at
all times equal to or greater than the aggregate amount of all remaining Scheduled Interest
Payments in respect of all Outstanding Securities (the “Required Funds”). If at any time,
the amount of Available Funds is less than the amount of Required Funds, the Company shall promptly
deliver to the Escrow Agent for deposit in the Escrow Account cash (and/or Government Securities
with an

9

 

amount payable at maturity) equal to the amount of such shortfall. If, on the first day of
any month, the amount of Available Funds exceeds the amount of Required Funds (any such excess
amount being hereinafter referred to as “Excess Escrow Funds”), so long as no Default has
occurred and is continuing, the Escrow Agent shall at the written direction of the Company (with a
copy to the Trustee) release to the Company from the Escrow Account, cash (or Government Securities
with an amount payable at maturity) equal to the amount of the Excess Escrow Funds. Any such
direction shall include an Officer’s Certificate of the Company as to (A) the absence of
the occurrence or continuance of any Default on the date of such notice and after giving effect to
such release and (B) the amount by which the Available Funds exceed the Required Funds and
a computation, in reasonable detail, of the Required Funds.

          (d) Transfer.

          (i) All funds distributed from the Escrow Account to the Paying Agent for
payment on the Securities shall be transferred by an account-to-account transfer of
immediately available funds to the following account (or such other account of the
Paying Agent that the Paying Agent specifies in writing to the Escrow Agent, the
Trustee and the Company):

Wells Fargo Bank, N.A.

ABA No. [l]

Account No. [l]

Acct Name: [l]

Attn: [l]

          (ii) Any funds or Government Securities distributed from the Escrow Account to
the Company shall be transferred in accordance with the written instructions
provided by the Company to the Escrow Agent.

          (iii) Any funds or Government Securities distributed from the Escrow Account
to the Trustee or on behalf of the Trustee shall be transferred in accordance with
the written instructions provided by the Trustee to the Escrow Agent.

          (e) Written Instructions; Certificates. The Trustee shall, at any time when a Default
has occurred and is continuing, give the Escrow Agent notice of such event. In the event such
notice has been given, the Trustee shall promptly give the Escrow Agent notice of any subsequent
cure or waiver of such Default. The Company shall, upon request by the Escrow Agent, execute and
deliver to the Escrow Agent such additional written instructions and certificates hereunder as may
be reasonably required by the Escrow Agent to give effect to this Section 4.

10

 

     Section 5. Termination of Security Interest. Upon payment in full of the Scheduled
Interest Payments, the pledge, assignment and security interest evidenced by this Agreement in any
Collateral remaining in the Escrow Account shall automatically terminate and be of no further force
and effect. Furthermore, upon the release of any Collateral from the Escrow Account in accordance
with the terms of this Agreement, whether upon release of such Collateral to the Trustee pursuant
to Section 4(a) hereof, to the Paying Agent pursuant to Section 4(b)(i) hereof or to the Company
pursuant to Sections 4(b)(ii) or 4(c) hereof, the pledge, assignment and security interest
evidenced by this Agreement in such Collateral so released shall automatically terminate and be of
no further force and effect. The Trustee and the Escrow Agent shall, upon request by the Company,
execute and deliver to the Company such releases, terminations or amendments of UCC financing
statements or additional written instructions and certificates hereunder as may be reasonably
required by the Company to give effect to this Section 5.

     Section 6. Attorneys-in-Fact. The Company hereby irrevocably appoints each of the
Trustee and the Escrow Agent as the Company’s attorney-in-fact, coupled with an interest, with full
authority in the place and stead of the Company and in the name of the Company or otherwise, from
time to time in the Trustee’s or the Escrow Agent’s discretion to take any action and to execute
any instrument that the Trustee or the Escrow Agent may deem necessary or advisable to effectuate
the terms of this Agreement, including, without limitation, to receive, endorse and collect all
instruments made payable to the Company representing any interest payment, dividend or other
distribution in respect of the Collateral or any part thereof and to give full discharge for the
same, and the expenses of the Trustee and the Escrow Agent incurred in connection therewith shall
be payable by the Company.

     Section 7. Trustee or Escrow Agent May Perform. Without limiting the authority
granted under Section 6 hereof, if the Company fails to perform any agreement contained herein, the
Trustee or the Escrow Agent may, but shall not be obligated to, itself perform, or cause
performance of, such agreement, and the expenses of the Trustee or the Escrow Agent incurred in
connection therewith shall be payable by the Company and shall be secured by the Collateral.

     Section 8. Representations, Warranties and Agreements.

          (a) The Company represents and warrants that:

          (i) The execution, delivery and performance by the Company of this Agreement
are within its corporate power, have been duly authorized by all necessary
corporate action of the Company, and do not contravene, or constitute a default
under, any provision of applicable law or regulation or of any judgment, injunction
or order or of any material agreement or other material instrument binding upon the
Company or of

11

 

the certificate of incorporation or by-laws of the Company or result in the
creation or imposition of any Lien on any assets of the Company other than the Lien
contemplated hereby.

          (ii) The Company (A) is duly organized, validly existing and in good
standing under the laws of the State of Delaware, (B) has full corporate
power and authority to enter into this Agreement and (C) has the right to
pledge and grant a security interest in the Collateral as provided by this
Agreement.

          (iii) This Agreement has been duly executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms except as such enforceability may
be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or
other similar laws affecting creditors’ rights generally and by general principles
of equity.

          (iv) Upon the execution and delivery of this Agreement by the parties hereto
and the delivery to the Escrow Agent of the Collateral as provided herein, the
pledge of the Collateral pursuant to this Agreement creates a valid and perfected
first priority security interest in the Collateral, securing the payment of the
Secured Obligations for the benefit of the Trustee and the Holders of the
Securities, enforceable as such against all creditors of the Company and any
persons purporting to purchase any of the Collateral from each of them.

          (v) Other than the filing of a UCC financing statement in respect of the
security interest granted hereunder, no consent of any other person and no consent,
authorization, approval, or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required either (A) for the
pledge by the Company of the Collateral pursuant to this Agreement or for the
execution, delivery or performance of this Agreement by the Company or (B)
for the exercise by the Trustee or the Escrow Agent of the remedies in respect of
the Collateral pursuant to this Agreement.

          (vi) No litigation, investigation or proceeding of or before any arbitrator or
governmental authority is pending or, to the best knowledge of the Company,
threatened by or against the Company or against any of its properties or revenues
with respect to this Agreement or any of the transactions contemplated hereby.

          (vii) The pledge of the Collateral pursuant to this Agreement is not
prohibited by any applicable law or governmental regulation, release,

12

 

interpretation or opinion of the Board of Governors of the Federal Reserve
System or other regulatory agency (including, without limitation, Regulations T, U
and X of the Board of Governors of the Federal Reserve System).

          (viii) All information set forth herein relating to the Collateral is accurate
and complete in all material respects.

          (b) The Company covenants and agrees that:

          (i) it will not (and will not purport to) (A) sell, assign (by
operation of law or otherwise) or otherwise dispose of, or grant any option or
warrant with respect to, any of the Collateral nor (B) create or permit to
exist any Lien upon or with respect to any of the Collateral (except for the liens
and security interests granted under this Agreement) and at all times will have the
right to pledge the Collateral, free and clear of any Lien or adverse claims
(except for the liens and security interests granted under this Agreement);

          (ii) it will not (A) enter into any agreement or understanding (other
than the Indenture) that restricts or inhibits or purports to restrict or inhibit
the Trustee’s or the Escrow Agent’s rights or remedies hereunder, including,
without limitation, their right to sell or otherwise dispose of the Collateral or
(B) fail to pay or discharge any tax, assessment or levy of any nature with
respect to the Collateral not later than three Business Days prior to the date of
any proposed sale under any judgment, writ or warrant of attachment with respect to
the Collateral; and

          (iii) it will not change its jurisdiction of incorporation without 30 days’
prior written notice to the Escrow Agent and the Trustee.

          (c) The Escrow Agent represents, warrants and agrees that it is (i) a “securities
intermediary” within the meaning of Section 8-102(a)(14) of the New York UCC and (ii) a “bank”
within the meaning of Section 9-102(a)(8) of the New York UCC.

          (d) The Trustee represents, warrants and agrees that it is, (i) with respect to the Securities
Subaccount, the “entitlement holder” within the meaning of Section 8-102(a)(7) of the New York UCC,
and (ii) with respect to the Deposit Subaccount, the “customer” within the meaning of and for
purposes of Section 9-104(a)(3) of the New York UCC.

          (e) For purposes of this Section, “Lien” means, with respect to any asset, any
mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset.

13

 

     Section 9. Fees and Expenses of Escrow Agent.

          (a) The Company agrees to pay the Escrow Agent its agreed-upon compensation for its services
as Escrow Agent hereunder promptly upon request therefor, and to reimburse the Escrow Agent for all
reasonable and documented expenses of or disbursements incurred by the Escrow Agent in the
performance of its duties hereunder, including the reasonable fees, expenses and disbursements of
legal counsel to the Escrow Agent.

          (b) The Escrow Agent shall have a lien upon any investment income on deposit in the Escrow
Account solely for any costs, expenses and fees that may arise hereunder and may retain that
portion of the investment income in the Escrow Account equal to such unpaid amounts, until all such
costs, expenses and fees have been paid; provided, however, that such lien shall be
junior and subordinate to the lien in favor of the Trustee.

     Section 10. Rights, Duties and Immunities of Escrow Agent. Acceptance by the Escrow
Agent of its duties under this Agreement is subject to the following terms and conditions, which
all parties to this Agreement hereby agree shall govern and control the rights, duties and
immunities of the Escrow Agent:

          (a) The duties and obligations of the Escrow Agent shall be determined solely by the express
provisions of this Agreement and the Escrow Agent shall not be liable except for the performance of
such duties and obligations as are specifically set out in this Agreement. The Escrow Agent shall
not be required to inquire as to the performance or observation of any obligation, term or
condition under any agreement or arrangement between the Company and the Trustee. The Escrow Agent
is not a party to, and is not bound by, any agreement or other document out of which this Agreement
may arise. The Escrow Agent shall be under no liability to any party hereto by reason of any
failure on the part of any party hereto (other than the Escrow Agent) or any maker, guarantor,
endorser or other signatory of any document or any other person to perform such person’s
obligations under any such document. The Escrow Agent shall not be bound by any waiver,
modification, termination or rescission of this Agreement or any of the terms hereof, unless
evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if
the duties or rights of the Escrow Agent are affected, unless it shall give its prior written
consent thereto.

          (b) The Escrow Agent shall not be responsible in any manner for the validity or sufficiency of
this Agreement or of any property delivered hereunder, or for the value or collectibility of any
security, check or other instrument, if any, or for any representations made or obligations assumed
by any party other than the Escrow Agent. Nothing herein contained shall be deemed to obligate the
Escrow Agent to deliver any cash, instruments, documents or any other property referred to herein,
unless the same shall have first been received by the Escrow Agent pursuant to this Agreement.

14

 

          (c) The Company shall reimburse and indemnify the Escrow Agent for, and hold it harmless
against, any loss, liability or expense, including but not limited to reasonable legal counsel
fees, incurred without bad faith, gross negligence or willful misconduct on the part of the Escrow
Agent, arising out of or in conjunction with its acceptance of, or the performance of its duties
and obligations under, this Agreement, as well as the costs and expenses of defending against any
claim or liability arising out of or relating to this Agreement.

          (d) The Escrow Agent shall be fully protected in acting on and relying upon any written
notice, direction, request, waiver, consent, receipt or other paper or document which the Escrow
Agent in good faith believes to have been signed and presented by the Company.

          (e) The Escrow Agent shall not be liable for any error of judgment, or for any act done or
step taken or omitted by it in good faith or for any mistake in fact or law, or for anything which
it may do or refrain from doing in connection herewith, except its own bad faith, gross negligence
or willful misconduct.

          (f) The Escrow Agent may seek the advice of legal counsel in the event of any dispute or
question as to the construction of any of the provisions of this Agreement or its duties hereunder,
and except for its own bad faith, gross negligence or willful misconduct it shall incur no
liability and shall be fully protected in respect of any action taken, omitted or suffered by it in
good faith in accordance with the advice or opinion of such counsel.

          (g) The agreements set forth in this Section 10 shall survive the resignation or removal of
the Escrow Agent, the termination of this Agreement and the payment of all amounts hereunder.

          (h) The Escrow Agent shall be entitled to all of the rights, privileges and immunities granted
to the Trustee under the Indenture, as applicable, all of which are hereby incorporated herein.

     Section 11. Miscellaneous.

          (a) Waiver. No waiver of any provision of this Agreement nor consent to any departure
by any party therefrom shall in any event be effective unless the same shall be in writing and
signed by each of the non-breaching parties and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.

          (b) Severability. If, for any reason whatsoever, any one or more of the provisions of
this Agreement shall be held or deemed to be inoperative, unenforceable or invalid in a particular
case or in all cases, such circumstances shall not have the effect of

15

 

rendering any of the other provisions of this Agreement inoperative, unenforceable or invalid,
and the inoperative, unenforceable or invalid provision shall be construed as if it were written so
as to effectuate, to the maximum extent possible, the parties’ intent.

          (c) Binding Effect. This Agreement shall inure to and be binding upon the parties and
their respective successors and permitted assigns; provided, however, that the
Company may not assign its rights or obligations hereunder without the express prior written
consent of the Trustee.

          (d) Governing Law; Jurisdiction; Waiver of Jury Trial.

          (i) The existence, validity, construction, operation and effect of any and all
terms and provisions of this Agreement shall be determined in accordance with and
governed by the internal laws of the State of New York, including without
limitation the New York UCC. The jurisdiction of the Escrow Agent in its capacity
as securities intermediary with respect to the Escrow Account (including the
Securities Subaccount) for purposes of Section 8-110 of the New York UCC shall be
the State of New York. The jurisdiction of the Escrow Agent in its capacity as
bank with respect to the Escrow Account (including the Deposit Subaccount) for
purposes of Section 9-304 of the New York UCC shall be the State of New York.

          (ii) Each party irrevocably submits to the jurisdiction of (x) the
Supreme Court of the State of New York, New York County, and (y) the United
States District Court for the Southern District Court of New York, for the purposes
of any claim, action or proceeding (“Proceedings”) arising out of this
Agreement or any transaction contemplated hereby. Each party agrees to commence
any such Proceeding either in the United States District Court for the Southern
District of New York or, if such Proceeding may not be brought in such court for
jurisdictional reasons, in the Supreme Court of the State of New York, New York
County. Each party further agrees that service of any process, summons, notice or
document by U.S. registered mail to such party’s respective address set forth above
shall be effective service of process for any Proceeding in New York with respect
to any matters to which it has submitted to jurisdiction in this Section 11(d)(ii).
Each party irrevocably and unconditionally waives any objection to the laying of
venue of any Proceeding arising out of this Agreement or the transactions
contemplated hereby in (i) the Supreme Court of the State of New York, New
York County, or (ii) the United States District Court for the Southern
District of New York, and hereby further irrevocably and unconditionally waives and
agrees not to plea or claim in any such court that any such Proceeding brought in
any such court has been brought in an inconvenient forum. Notwithstanding anything
in this Section 11(d)(ii) to the contrary, in the

16

 

event it is finally judicially determined by (x) the Supreme Court of
the State of New York or (y) the United States District Court for the
Southern District of New York that a Proceeding may not be maintained in either of
such jurisdictions, then the parties may bring such Proceeding in an alternate
jurisdiction.

          (iii) EACH PARTY HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT TO ANY PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. EACH PARTY
(A) CERTIFIES THAT NO AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF ANY PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION 11(d)(iii).

          (e) Entire Agreement. This Agreement, the Securities and the Indenture contain the
entire agreement among the parties with respect to the subject matter hereof and supersede any and
all prior agreements, understandings and commitments with respect thereto, whether oral or written;
provided, however, that this Agreement is executed and accepted by the Trustee and
the Escrow Agent subject to all terms and conditions of its acceptance of the trust under the
Indenture, as fully as if said terms and conditions were set forth at length herein.

          (f) Amendments. This Agreement may be amended only by a writing signed by duly
authorized representatives of all parties. The Trustee and the Escrow Agent may execute an
amendment to this Agreement only if the consent of the Holders of the Securities required by
Section 4.08 of the Indenture has been obtained or is not required pursuant to the terms thereof.

          (g) Notices. All notices, requests, instructions, orders and other communications
required or permitted to be given or made under this Agreement to any party hereto shall be
delivered in writing by hand delivery or overnight delivery, or shall be delivered by facsimile
with machine confirmation of full delivery not more than 24 hours following such facsimile notice.
A notice given in accordance with the preceding sentence shall be deemed to have been duly given
upon the sending thereof. Notices should be addressed as follows:

To the Company:

17

 

CVR Energy, Inc.

2277 Plaza Drive, Suite 500

Sugar Land, Texas 77479

Attn: Edmund S. Gross

Senior Vice President & General Counsel

Facsimile number: (913) 981-0000

with a copy to

Michael A. Levitt

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

Facsimile number: (212) 859-4000

To the Trustee or the Escrow Agent:

Wells Fargo Bank, N.A.

45 Broadway, 14th Floor

New York, New York 10006

Attn: Corporate Trust Services

Facsimile number: (212) 515-1589

or at such other address or facsimile number as the specified entity most recently may have
designated in writing in accordance with this paragraph to the other parties.

          (h) Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile
or other electronic transmission (e.g., a “pdf” or “tif”) shall be effective as delivery of a
manually executed counterpart of this Agreement.

          (i) Interpretation. The headings of the sections contained in this Agreement are
solely for convenience of reference and shall not affect the meaning or interpretation of this
Agreement.

          (j) Acknowledgements. The Company hereby acknowledges that:

          (i) it has been advised by counsel in the negotiation, execution and delivery
of this Agreement and the other document to which it is a party;

18

 

          (ii) neither the Trustee nor the Escrow Agent has any fiduciary relationship
with or duty to the Company arising out of or in connection with this Agreement or
any of the other document, and the relationship between the Company, on the one
hand, and the Trustee and Escrow Agent, on the other hand, in connection herewith
or therewith is solely that of debtor and creditor; and

          (iii) no joint venture is created hereby or by the other documents or
otherwise exists by virtue of the transactions contemplated hereby among the
Company and the Trustee and Escrow Agent.

          (k) Force Majeure. In no event shall the Escrow Agent be responsible or liable for
any failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

[Signature page follows]

19

 

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the
day first written above.

	 	 	 	 	 
	 	CVR ENERGY, INC.,

as Pledgor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, N.A.,

as Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, N.A.,

as Escrow Agent

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

20

 

	 	 	 	 	 

Schedule I

     All terms specified, except for the Due Date of Scheduled Interest Payment in Respect of Firm
Securities, are for the Government Securities to be delivered to the Escrow Agent pursuant to
Section 2(a) of this Agreement.

	 	 	 	 	 	 	 
	Due Date of	 	 	 	 	 	 
	Scheduled Interest	 	Maturity Date of	 	Par Amount of	 	CUSIP No. of
	Payment in Respect	 	Government	 	Government	 	Government
	of Firm Securities	 	Securities	 	Securities	 	Securities
	[l], 2009

	 	[l]
	 	[l]
	 	[l]
	[l], 2009

	 	[l]
	 	[l]
	 	[l]
	[l], 2010

	 	[l]
	 	[l]
	 	[l]
	[l], 2010

	 	[l]
	 	[l]
	 	[l]
	[l], 2011

	 	[l]
	 	[l]
	 	[l]
	[l], 2011

	 	[l]
	 	[l]
	 	[l]

S-1

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