Document:

EX-10.45

 

Exhibit 10.45

 

MANAGEMENT

REGISTRATION RIGHTS AGREEMENT

CVR ENERGY, INC.

Dated as of                      ___, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Section 1. Incidental Registrations
	 	 	1	 
	 
	 	 	 	 
	Section 2. Registration Procedures
	 	 	2	 
	 
	 	 	 	 
	Section 3. Underwritten Offerings
	 	 	7	 
	3.1. Underwriting Agreement
	 	 	7	 
	 
	 	 	 	 
	Section 4. Holdback Agreements
	 	 	8	 
	 
	 	 	 	 
	Section 5. Preparation; Reasonable Investigation
	 	 	9	 
	 
	 	 	 	 
	Section 6. Indemnification
	 	 	9	 
	6.1. Indemnification by the Company
	 	 	9	 
	6.2. Indemnification by the Sellers
	 	 	10	 
	6.3. Notices
of Claims, etc.
	 	 	11	 
	6.4. Other Indemnification
	 	 	11	 
	6.5. Indemnification Payments
	 	 	11	 
	6.6. Other Remedies
	 	 	12	 
	 
	 	 	 	 
	Section 7. Representations and Warranties
	 	 	12	 
	 
	 	 	 	 
	Section 8. Definitions
	 	 	13	 
	 
	 	 	 	 
	Section 9. Miscellaneous
	 	 	15	 
	9.1.
Rule 144, etc.
	 	 	15	 
	9.2. Successors, Assigns and Transferees
	 	 	15	 
	
9.3. Stock Splits, etc.
	 	 	16	 
	9.4. Amendment and Modification
	 	 	16	 
	9.5. Governing Law; Venue and Service of Process
	 	 	17	 
	9.6. Invalidity of Provision
	 	 	17	 
	9.7. Notices
	 	 	17	 
	9.8. Headings: Execution in Counterparts

	 	 	18	 
	9.9. Injunctive Relief
	 	 	18	 
	9.10. Term
	 	 	19	 
	9.11. Further Assurances
	 	 	19	 
	9.12. Entire Agreement
	 	 	19	 
	9.13. No
Third Party Beneficiaries
	 	 	19	 

 i

 

 

MANAGEMENT REGISTRATION RIGHTS AGREEMENT

OF CVR ENERGY, INC.

          MANAGEMENT REGISTRATION RIGHTS AGREEMENT, dated as of ___, 2007 (the
“Agreement”), by and among CVR Energy, Inc., a Delaware corporation (the
“Company”), and those employees of the Company or its subsidiaries listed under the heading
“Management Stockholders” on the Schedule A hereto (collectively, the “Management
Stockholders”). Capitalized terms used herein without definition are defined in Section
10.

          WHEREAS, the Company is proposing to sell shares of Common Stock to the public in an initial
public offering (“IPO”);

          WHEREAS,
immediately after the completion of the Company’s IPO, it is expected that the
Investor Stockholders will own approximately 80.6% (78.2% if the underwriters exercise their
option to purchase additional shares from the Investor Stockholders) of the issued and outstanding
shares of Common Stock;

          WHEREAS, the parties hereto wish to set forth certain rights and obligations with respect to
the registration of the shares of Common Stock under the Securities Act.

          NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth in this
Agreement, the parties hereto agree as follows:

     Section 1. Incidental Registrations. If the Company at any time proposes to register
any of its equity securities under the Securities Act (including, but not limited to, a shelf
registration statement on Form S-3, but other than pursuant to a registration on Form S-4 or S-8 or
any successor form) whether or not for sale for its own account, then the Company shall give prompt
written notice (but in no event less than 30 days prior to the initial filing with respect thereto)
to all holders of Registrable Securities regarding such proposed registration. Upon the written
request of any such holder made within 15 days after the receipt of any such notice (which request
shall specify the number of Registrable Securities intended to be disposed of by such holder and
the intended method or methods of disposition thereof), the Company shall use its best efforts to
effect the registration under the Securities Act of such Registrable Securities on a pro rata basis
in accordance with such intended method or methods of disposition; provided that:

     (a) (i) the Company shall not include Registrable Securities in such proposed
registration to the extent that the Board shall have determined, after consultation
with the managing underwriter for such offering, that it would materially and
adversely affect the offering price to include any Registrable Securities in such
registration and (ii) the Company shall not include Registrable Securities of any
Management Stockholder in any proposed registration pursuant to this Section
1 to the extent that the managing underwriter (or, in the case of an offering
that is not underwritten, a nationally recognized investment banker) shall determine
in good faith that the participation of such Management Stockholder

 

 

would materially and adversely affect the marketability or the offering price
of the securities being sold in such registration and provided,
further, that in the event of any such determination under clause (i) or
(ii), the Company shall give the affected holders of Registrable Securities notice
of such determination and in lieu of the notice otherwise required by the first
sentence of this Section 1;

     (b) if, at any time after giving written notice (pursuant to this Section
1) of its intention to register equity securities and prior to the effective
date of the registration statement filed in connection with such registration, the
Company shall determine for any reason not to register such equity securities, the
Company may, at its election, give written notice of such determination to each
holder of Registrable Securities and, thereupon, shall not be obligated to register
any Registrable Securities in connection with such registration (but shall
nevertheless pay the Registration Expenses in connection therewith); and

     (c) if in connection with a registration pursuant to this Section 1,
the managing underwriter of such registration (or, in the case of an offering that
is not underwritten, a nationally recognized investment banking firm) shall advise
the Company in writing (with a copy to each holder of Registrable Securities
requesting. registration thereof) that the number of securities requested
and otherwise proposed to be included in such registration exceeds the number which
can be sold in such offering without materially and adversely affecting the offering
price of the securities being sold in such registration, then in the case of any
registration pursuant to this Section 1, the Company shall include in such
registration to the extent of the number which the Company is so advised can be sold
in such offering without such material adverse effect, first, the
securities, if any, being sold by the Company, and second, the Registrable
Securities of the Investor Stockholders and the Management Stockholders requesting
inclusion in such registration, on a pro rata basis (based on the number of shares
of Registrable Securities owned by each such holder).

          The Company shall pay all Registration Expenses in connection with each registration of
Registrable Securities requested pursuant to this Section 1; provided that each seller of
Registrable Securities shall pay all Registration Expenses to the extent required to be paid by
such seller under applicable law and all underwriting discounts and commissions and transfer taxes,
if any, in respect of the Registrable Securities being registered for such seller.

     Section 2. Registration Procedures. If and whenever the Company is required to use
its best efforts to effect the registration of any Registrable Securities under the Securities Act
pursuant to Section 1, the Company shall promptly:

     (a) prepare, and as soon as practicable, but in any event within 30 days
thereafter, file with the Commission, a registration statement with respect to such
Registrable Securities, make all required filings with the NASD and use its best
efforts to cause such registration statement to become and remain effective as soon
as practicable;

2

 

     (b) prepare and promptly file with the Commission such amendments and
post-effective amendments and supplements to such registration statement and the
prospectus used in connection therewith as may be necessary to keep such
registration statement effective for so long as is required to comply with the
provisions of the Securities Act and to complete the disposition of all securities
covered by such registration statement in accordance with the intended method or
methods of disposition thereof, but in no event for a period of more than six months
after such registration statement becomes effective;

     (c) furnish copies of all documents proposed to be filed with the Commission in
connection with such registration to each seller of Registrable Securities (or in
the case of the initial filing of a registration statement, within five business
days of such initial filing) and such documents shall be subject to the review of
such counsel; provided that the Company shall not file any registration
statement or any amendment or post-effective amendment or supplement to such
registration statement or the prospectus used in connection therewith or any free
writing prospectus related thereto to which such counsel shall have reasonably
objected on the grounds that such registration statement amendment, supplement or
prospectus or free writing prospectus does not comply (explaining why) in all
material respects with the requirements of the Securities Act or of the rules or
regulations thereunder;

     (d) furnish to each seller of Registrable Securities, without charge, such
number of conformed copies of such registration statement and of each such amendment
and supplement thereto (in each case including all exhibits and documents filed
therewith) and such number of copies of the prospectus included in such registration
statement (including each preliminary prospectus and any summary prospectus) and any
other prospectus filed under Rule 424 under the Securities Act, in conformity with
the requirements of the Securities Act, each free writing prospectus utilized in
connection therewith, and such other documents, as such seller may reasonably
request in order to facilitate the disposition of the Registrable Securities owned
by such seller in accordance with the intended method or methods of disposition
thereof;

     (e) use its best efforts to register or qualify such Registrable Securities and
other securities covered by such registration statement under the securities or blue
sky laws of such jurisdictions as each seller shall reasonably request, and do any
and all other acts and things which may be necessary or advisable to enable such
seller to consummate the disposition of such Registrable Securities in such
jurisdictions in accordance with the intended method or methods of disposition
thereof; provided that the Company shall not for any such purpose be
required to qualify generally to do business as a foreign corporation in any
jurisdiction wherein it is not so qualified, subject itself to taxation in any
jurisdiction wherein it is not so subject, or take any action which would subject it
to general service of process in any jurisdiction wherein it is not so subject;

3

 

     (f) use its best efforts to cause all Registrable Securities covered by such
registration statement to be registered with or approved by such other governmental
agencies, authorities or self-regulatory bodies as may be necessary by virtue of the
business and operations of the Company to enable the seller or sellers thereof to
consummate the disposition of such Registrable Securities in accordance with the
intended method or methods of disposition thereof;

     (g) promptly notify each seller of any Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is required to
be delivered under the Securities Act of the happening of any event or existence of
any fact as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances then existing,
and, as promptly as is practicable, prepare and furnish to such seller a reasonable
number of copies of a supplement to or an amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such securities,
such prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing;

     (h) otherwise comply with all applicable rules and regulations of the
Commission, and make available to its security holders, as soon as reasonably
practicable and in any event within 16 months after the effective date of the
registration statement, an earnings statement of the Company (in form complying with
the provisions of Rule 158 under the Securities Act) covering the period of at least
12 months, but not more than 18 consecutive months, beginning with the first full
calendar month after the effective date of such registration statement;

     (i) notify each seller of any Registrable Securities covered by such
registration statement (i) when the prospectus or any prospectus supplement or
post-effective amendment or any “free writing prospectus” has been filed and/or used,
and, with respect to such registration statement or any post-effective amendment,
when the same has become effective, (ii) of the receipt by the Company of any
comments from the Commission or of any request by the Commission for amendments or
supplements to such registration statement or to amend or to supplement such
prospectus or for additional information, (iii) of the issuance by the Commission of
any stop order suspending the effectiveness of such registration statement or the
initiation of any proceedings for that purpose and (iv) of the suspension of the
qualification of such securities for offering or sale in any jurisdiction, or of the
institution of any proceedings for any of such purposes;

4

 

     (j) use every reasonable effort to obtain the lifting of any stop order that
might be issued suspending the effectiveness of such registration statement at the
earliest possible moment;

     (k) use its best efforts (i) (A) to list such Registrable Securities on any
securities exchange on which the equity securities of the Company are then listed
or, if no such equity securities are then listed, on an exchange selected by the
Company, if such listing is then permitted under the rules of such exchange, or (B)
if such listing is not practicable, to secure designation of such securities as a
NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 under
the Exchange Act or, failing that, to secure NASDAQ authorization for such
Registrable Securities, and, without limiting the foregoing, to arrange for at least
two market makers to register as such with respect to such Registrable Securities
with the NASD, and (ii) to provide a transfer agent and registrar for such
Registrable Securities not later than the effective date of such registration
statement and to instruct such transfer agent (A) to release any stop transfer order
with respect to the certificates with respect to the Registrable Securities being
sold and (B) to furnish certificates without restrictive legends representing
ownership of the shares being sold, in such denominations requested by the sellers
of the Registrable Securities or the lead underwriter;

     (l) enter into such agreements and take such other actions as the sellers of
Registrable Securities or the underwriters reasonably request in order to expedite
or facilitate the disposition of such Registrable Securities, including, without
limitation, preparing for, and participating in, such number of “road shows” and all
such other customary selling efforts as the underwriters reasonably request in order
to expedite or facilitate such disposition;

     (m) furnish to any holder of such Registrable Securities such information and
assistance as such holder may reasonably request in connection with any “due
diligence” effort which such seller deems appropriate;

     (n) cooperate with each seller of Registrable Securities and each underwriter
and their respective counsel in connection with any filings required to be made with
the NASD, New York Stock Exchange, or any other securities exchange on which such
Registrable Securities are traded or will be traded;

     (o) cooperate with the sellers of the Registrable Securities and the managing
underwriter to facilitate the timely preparation and delivery of certificates not
bearing any restrictive legends representing the Registrable Securities to be sold,
and cause such Registrable Securities to be issued in such denominations and
registered in such names in accordance with the underwriting agreement prior to any
sale of Registrable Securities to the underwriters or, if not an underwritten
offering, in accordance with the instructions of the Majority Holders at least five
business days prior to any sale of Registrable Securities and

5

 

instruct any transfer agent and registrar of Registrable Securities to release
any stop transfer orders in respect thereof;

     (p) cause its officers and employees to participate in, and to otherwise
facilitate and cooperate with the preparation of the registration statement and
prospectus and any amendments or supplements thereto (including participating in
meetings, drafting sessions and due diligence sessions) taking into account the
Company’s business needs;

     (q) use its best efforts to take all other steps necessary to effect the
registration of such Registrable Securities contemplated hereby;

     (r)
take all reasonable action to ensure that any “free writing prospectus”
utilized in connection with any registration covered by this agreement complies in
all material respects with the Securities Act, is filed in accordance with the
Securities Act to the extent required thereby, is retained in accordance with the
Securities Act to the extent required thereby and, when taken together with the
related prospectus, prospectus supplement and related documents, will not contain
any untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in light of the circumstances under which they were
made, not misleading; and

     (s) in connection with any underwritten offering, if at any time the
information conveyed to a purchaser at the time of sale includes any untrue
statement of a material fact or omits to state any material fact necessary in order
to make the statements therein, in light of the circumstances under which they were
made, not misleading, promptly file with the Commission such amendments or
supplements to such information as may be necessary so that the statements as so
amended or supplemented will not, in light of the circumstances, be misleading.

          If the Company files any shelf registration statement for the benefit of the holders of any of
its securities other than the Management Stockholders, the Company agrees that it shall include in
such registration statement such disclosures as may be required by Rule 430B (referring to the
unnamed selling security holders in a generic manner by identifying the initial issuance and sale
of the securities to the Management Stockholders) in order to ensure that the Management
Stockholders may be added to such shelf registration statement at a later time through the filing
of a prospectus supplement rather than a post-effective amendment.

          As a condition to its registration of Registrable Securities of any prospective seller, the
Company may require such seller of any Registrable Securities as to which any registration is being
effected to execute powers-of-attorney, custody arrangements and other customary agreements
appropriate to facilitate the offering and to furnish to the Company such information regarding
such seller, its ownership of Registrable Securities and the disposition of such Registrable
Securities as the Company may from time to time reasonably request in writing and as shall be
required by law in connection therewith. Each such holder agrees to furnish

6

 

promptly to the Company all information required to be disclosed in such registration
statement in order to make the information previously furnished to the Company by such holder and
disclosed in such registration statement not materially misleading.

          The Company agrees not to file or make any amendment to any registration statement with
respect to any Registrable Securities, or any amendment of or supplement to the prospectus used in
connection therewith, which refers to any holder of Registrable Securities, or otherwise identifies
any holder of Registrable Securities as the holder of any Registrable Securities, without the prior
consent of such holder, such consent not to be unreasonably withheld or delayed, unless such
disclosure is required by law. Notwithstanding the foregoing, if any such registration statement or
comparable statement under “blue sky” laws refers to any holder of Registrable Securities by name
or otherwise as the holder of any securities of the Company, then such holder shall have the right
to require (i) the insertion therein of language, in form and substance satisfactory to such holder
and the Company, to the effect that the holding by such holder of such Registrable Securities is
not to be construed as a recommendation by such holder of the investment quality of the Company’s
securities covered thereby and that such holding does not imply that such holder will assist in
meeting any future financial requirements of the Company, or (ii) in the event that such reference
to such holder by name or otherwise is not in the judgment of the Company, as advised by counsel,
required by the Securities Act or any similar federal statute or any state “blue sky” or securities
law then in force, the deletion of the reference to such holder.

          By acquisition of Registrable Securities, each holder of such Registrable Securities shall be
deemed to have agreed that upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 2(g), such holder will promptly discontinue such
holder’s disposition of Registrable Securities pursuant to the registration statement covering such
Registrable Securities until such holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 2(g). If so directed by the Company, each holder of
Registrable Securities will deliver to the Company (at the Company’s expense) all copies, other
than permanent file copies, in such holder’s possession of the prospectus covering such Registrable
Securities at the time of receipt of such notice. In the event that the Company shall give any
such notice, the period mentioned in Section 2(a) shall be extended by the number of days
during the period from and including the date of the giving of such notice to and including the
date when each seller of any Registrable Securities covered by such registration statement shall
have received the copies of the supplemented or amended prospectus contemplated by Section
2(g).

     Section 3. Underwritten Offerings.

     3.1. Underwriting Agreement. If requested by the underwriters for any underwritten
offering pursuant to a registration requested under Section 1, the Company shall enter into
an underwriting agreement with the underwriters for such offering. Any such underwriting agreement
shall contain such representations and warranties by, and such other agreements on the part of, the
Company and such other terms and provisions as are customarily contained in agreements of this
type, including, without limitation, indemnities to the effect and to the extent provided in
Section 6. Each holder of Registrable Securities to be distributed by such

7

 

underwriter who owns 10% or more of the Common Stock of the Company (computed on a
fully-diluted basis) at the time of such offering shall be a party to such underwriting agreement
and may, at such holder’s option, require that any or all of the representations and warranties by,
and the agreements on the part of, the Company to and for the benefit of such underwriters be made
to and for the benefit of such holder of Registrable Securities and that any or all of the
conditions precedent to the obligations of such underwriters under such underwriting agreement
shall also be conditions precedent to the obligations of such holder of Registrable Securities.
The Management Stockholders in their capacities as stockholders and/or controlling persons shall
not be required by any underwriting agreement to make any representations or warranties to or
agreements with the Company or the underwriters other than representations, warranties or
agreements regarding such holder, the ownership of such holder’s Registrable Securities and such
holder’s intended method or methods of disposition and any other representation required by law or
to furnish any indemnity to any Person which is broader than the indemnity furnished by such holder
pursuant to Section 6.2.

     Section 4. Holdback Agreements. If and whenever the Company proposes to register any
of its equity securities under the Securities Act for its own account (other than on Form S-4 or
S-8 or any successor form) or is required to use its best efforts to effect the registration of any
Registrable Securities under the Securities Act pursuant to Section 1, each holder of
Registrable Securities agrees by acquisition of such Registrable Securities not to effect any
offer, sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of
any Registrable Securities within seven days prior to the reasonably expected effective date of the
contemplated registration statement and during the period beginning on the effective date of the
registration statement relating to such registration (the “Trigger Date”) and until 90 days
(unless advised by the managing underwriter that a longer period, not to exceed 180 days, is
required, or such shorter period as the managing underwriter for any underwritten offering may
agree) after the Trigger Date, except as part of such registration or unless, in the case of a sale
or distribution not involving a public offering, the transferee agrees in writing to be subject to
this Section 4, even if such Registrable Securities cease to be Registrable Securities upon
such transfer. If requested by such managing underwriter, each holder of Registrable Securities
agrees to execute an agreement to such effect with the Company and consistent with such managing
underwriter’s customary form of holdback agreement.

     (a) The Company agrees not to effect any public offer, sale or distribution of
its equity securities or securities convertible into or exchangeable or exercisable
for any of such securities within seven days prior to the reasonably expected
effective date of the contemplated registration statement (except (i) as part of
such registration, (ii) as permitted by any related underwriting agreement, (iii)
pursuant to an employee equity compensation plan, or (iv) pursuant to an acquisition
or strategic relationship or similar transaction or (v) pursuant to a registration
on Form S-4 or S-8 or any successor form). In addition, if, and to the extent
requested by the managing underwriter, the Company shall use its best efforts to
cause each holder (other than any holder already subject to Section 4(a)) of
its equity securities or any securities convertible into or exchangeable or
exercisable for any of such securities, whether outstanding on the date of this
Agreement or issued at any time after the date of this Agreement (other than any

8

 

such securities acquired in a public offering), to agree not to effect any such
public offer, sale or distribution of such securities during such period, except as
part of any such registration if permitted, and to cause each such holder to enter
into an agreement to such effect with the Company and consistent with such managing
underwriter’s customary form of holdback agreement.

     Section 5. Preparation; Reasonable Investigation. In connection with the preparation
and filing of each registration statement registering Registrable Securities under the Securities
Act, the Company shall give counsel to the holders of such Registrable Securities so to be
registered, the managing underwriter(s), and their respective counsel, accountants and other
representatives and agents the opportunity to participate in the preparation of such registration
statement, each prospectus included therein or filed with the Commission, and each amendment
thereof or supplement thereto, and shall give each of the foregoing parties access to the financial
and other records, pertinent corporate documents and properties of the Company and its subsidiaries
and opportunities to discuss the business of the Company with its officers and the independent
public accountants who have issued audit reports on its financial statements in each case as shall
be reasonably requested by each of the foregoing parties in connection with such registration
statement.

     Section 6. Indemnification.

     6.1. Indemnification by the Company. The Company agrees that in the event of any
registration of any Registrable Securities pursuant to this Agreement, the Company shall indemnify,
defend and hold harmless (a) each holder of Registrable Securities, (b) the Affiliates of such
holder and the advisors, representatives, agents of such holder and its Affiliates, (c) each Person
who participates as an underwriter or Qualified Independent Underwriter in the offering or sale of
such securities and (d) each person, if any, who controls (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) any of the foregoing against any and all losses,
penalties, fines, liens, judgments, claims, damages or liabilities (or actions or proceedings in
respect thereof) and expenses (including reasonable fees of counsel and any amounts paid in
settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or
delayed if such settlement is solely with respect to monetary damages), jointly or severally,
directly or indirectly, based upon or arising out of (i) any untrue statement or alleged untrue
statement of a material fact contained in any registration statement under which such Registrable
Securities were registered under the Securities Act, any preliminary prospectus, final prospectus
or summary prospectus contained therein or used in connection with the offering of securities
covered thereby, or any amendment or supplement thereto, or any documents incorporated by reference
therein, or any “free writing prospectus,” as such term is defined in Rule 405 under the Securities
Act, utilized in connection with any related offering, (ii) any omission or alleged omission to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading or (iii) any untrue statement or alleged untrue statement of a material fact in the
information conveyed to any purchaser at the time of the sale to such purchaser, or the omission or
alleged omission to state therein a material fact required to be stated therein; and the Company
will reimburse each such indemnified party for any legal or any other expenses reasonably incurred
by them in connection with enforcing its rights hereunder or under the underwriting agreement
entered into in connection with such offering or

9

 

investigating, preparing, pursuing or defending any such loss, claim, damage, liability,
action or proceeding as such expenses are incurred, except insofar as any such loss, penalty, fine,
lien, judgment, claim, damage, liability, action, proceeding or expense arises out of or is based
upon an untrue statement of a material fact or omission of a material fact made in such
registration statement, any such preliminary prospectus, final prospectus, summary prospectus,
amendment or supplement, document incorporated by reference therein or “free writing prospectus”
utilized in connection with any related offering in reliance upon and in conformity with written
information furnished to the Company by such holder expressly for use in the preparation thereof in
accordance with the second sentence of Section 6.2. Such indemnity shall remain in full
force and effect, regardless of any investigation made by such indemnified party and shall survive
the transfer of such Registrable Securities by such seller.

     6.2. Indemnification by the Sellers. The Company may require, as a condition to
including any Registrable Securities in any registration statement filed pursuant to Section
1, that the Company shall have received an undertaking satisfactory to it from each of the
prospective sellers of such Registrable Securities to indemnify and hold harmless, severally, not
jointly, in the same manner and to the same extent as set forth in Section 6.1, the
Company, its directors, officers, employees, agents and each person, if any, who controls (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company,
with respect to any statement of a material fact or alleged statement of a material fact in or
omission of a material fact or alleged omission of a material fact from such registration
statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or
any amendment or supplement thereto, or any “free writing prospectus” utilized in connection with
any related offering, but only to the extent such statement or alleged statement or such omission
or alleged omission was made in reliance upon and in conformity with written information furnished
to the Company by such seller expressly for use in the preparation of such registration statement,
preliminary prospectus, final prospectus, summary prospectus, amendment or supplement or “free
writing prospectus”. The Company and the holders of the Registrable Securities in their capacities
as stockholders and/or controlling persons hereby acknowledge and agree that, unless otherwise
expressly agreed to in writing by such holders, the only information furnished or to be furnished
to the Company for use in any registration statement or prospectus relating to the Registrable
Securities or in any amendment, supplement or preliminary materials associated therewith or any
“free writing prospectus” related thereto are statements specifically relating to (a) transactions
between such holder and its Affiliates, on the one hand, and the Company, on the other hand, (b)
the beneficial ownership of shares of Common Stock by such holder and its Affiliates and (c) the
name and address of such holder. If any additional information about such holder or the plan of
distribution (other than for an underwritten offering) is required by law to be disclosed in any
such document, then such holder shall not unreasonably withhold its agreement referred to in the
immediately preceding sentence of this Section 6.2. Such indemnity shall remain in full
force and effect, regardless of any investigation made by or on behalf of the Company or any such
director, officer or controlling person and shall survive the transfer of such Registrable
Securities by such seller. The indemnity agreement contained in this Section 6.2 shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability, action or
proceeding if such settlement is effected without the consent of such seller (which consent shall
not be unreasonably withheld or delayed if such settlement is solely with respect to monetary
damages). The indemnity provided by each seller of Registrable Securities under this Section
6.2 shall be

10

 

limited in amount to the net amount of proceeds (i.e., net of expenses, underwriting discounts
and commissions) actually received by such seller from the sale of Registrable Securities pursuant
to such registration statement.

     6.3. Notices of Claims, etc. Promptly after receipt by an indemnified party of notice
of the commencement of any action or proceeding involving a claim referred to in the preceding
paragraphs of this Section 6, such indemnified party shall, if a claim in respect thereof
is to be made against an indemnifying party, give written notice to the indemnifying party of the
commencement of such action or proceeding; provided that the failure of any indemnified party to
give notice as provided herein shall not relieve the indemnifying party of its obligations under
the preceding paragraphs of this Section 6, except to the extent that the indemnifying
party is materially prejudiced by such failure to give notice. In case any such action is brought
against an indemnified party, the indemnifying party shall be entitled to participate therein and
to assume the defense thereof, jointly with any other indemnifying party similarly notified, to the
extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after
notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the defense thereof except
for the reasonable fees and expenses of any counsel retained by such indemnified party to monitor
such action or proceeding. Notwithstanding the foregoing, if such indemnified party reasonably
determines, based upon advice of independent counsel, that a conflict of interest may exist between
the indemnified party and the indemnifying party with respect to such action and that it is
advisable for such indemnified party to be represented by separate counsel, such indemnified party
may retain other counsel, reasonably satisfactory to the indemnifying party, to represent such
indemnified party, and the indemnifying party shall pay all reasonable fees and expenses of such
counsel. No indemnifying party, in the defense of any such claim or litigation, shall, except with
the consent of such indemnified party, which consent shall not be unreasonably withheld, consent to
entry of any judgment or enter into any settlement unless such judgment, compromise or settlement
(A) includes as an unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect of such claim or litigation, (B) does
not include a statement as to or an admission of fault, culpability or a failure to act, by or on
behalf of any indemnified party, and (C) does not require any action other than the payment of
money by the indemnifying party.

     6.4. Other Indemnification. Indemnification similar to that specified in the
preceding paragraphs of this Section 6 (with appropriate modifications) shall be given by
the Company and each seller of Registrable Securities with respect to any required registration
(other than under the Securities Act) or other qualification of such Registrable Securities under
any federal or state law or regulation of any governmental authority.

     6.5. Indemnification Payments. Any indemnification required to be made by an
indemnifying party pursuant to this Section 6 shall be made by periodic payments to the
indemnified party during the course of the action or proceeding, as and when bills are received by
such indemnifying party with respect to an indemnifiable loss, penalty, fine, lien, judgment,
claim, damage, liability or expense incurred by such indemnified party.

11

 

     6.6. Other Remedies. If for any reason any indemnification specified in the preceding
paragraphs of this Section 6 is unavailable, or is insufficient to hold harmless an
indemnified party, other than by reason of the exceptions provided therein, then the indemnifying
party shall contribute to the amount paid or payable by the indemnified party as a result of such
losses, penalties, fines, liens, judgments, claims, damages, liabilities, actions, proceedings or
expenses in such proportion as is appropriate to reflect the relative benefits to and faults of the
indemnifying party on the one hand and the indemnified party on the other and the statements or
omissions or alleged statements or omissions which resulted in such loss, penalty, fine, lien,
judgment, claim, damage, liability, action, proceeding or expense, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of the indemnified
party shall be determined by reference to, among other things, whether the untrue statement of a
material fact or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statements or omissions. The parties
hereto agree that it would not be just and equitable if contributions pursuant to this Section
6.6 were to be determined by pro rata allocation or by any other method of allocation which
does not take into account the equitable considerations referred to in the preceding sentence of
this Section 6.6. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11 (f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. Notwithstanding the other provisions of this
Section 6, in respect of any claim for indemnification pursuant to this Section 6,
no indemnifying party (other than the Company) shall be required to contribute pursuant to this
Section 6.6 any amount in excess of (a) the net proceeds (i.e., net of expenses,
underwriting discounts and commissions) received and retained by such indemnifying party from the
sale of its Registrable Securities covered by the applicable registration statement, preliminary
prospectus, final prospectus, or supplement or amendment thereto, filed pursuant hereto minus (b)
any amounts previously paid by such indemnifying party pursuant to this Section 6 in
respect of such claim, it being understood that insofar as such net proceeds have been distributed
by any indemnifying party to its partners, stockholders or members, the amount of such indemnifying
party’s contribution hereunder shall be limited to the net proceeds which it actually recovers from
its partners, stockholders or members based upon their relative fault and that to the extent that
such indemnifying party has not distributed such net proceeds, the amount such indemnifying party’s
contribution hereunder shall be limited by the percentage of such net proceeds which corresponds to
the percentage equity interests in such indemnifying party held by those of its partners,
stockholders or members who have been determined to be at fault. No party shall be liable for
contribution under this Section 6.6 except to the extent and under such circumstances as
such party would have been liable for indemnification under this Section 6 if such
indemnification were enforceable under applicable law.

     Section 7. Representations and Warranties. Each Management Stockholder represents and
warrants to the Company that:

     (a) such Management Stockholder has the power, authority and capacity (or, in
the case of any Management Stockholder that is a corporation, limited liability
company or limited partnership, all corporate, limited liability

12

 

company or limited partnership power and authority, as the case may be) to
execute, deliver and perform this Agreement;

     (b) in the case of a Management Stockholder that is a corporation, limited
liability company or limited partnership, the execution, delivery and performance of
this Agreement by such Management Stockholder has been duly and validly authorized
and approved by all necessary corporate, limited liability company or limited
partnership action, as the case may be;

     (c) this Agreement has been duly and validly executed and delivered by such
Management Stockholder and constitutes a valid and legally binding obligation of
such Management Stockholder, enforceable in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
or relating to creditors’ rights generally and general principles of equity; and

     (d) the execution, delivery and performance of this Agreement by such
Management Stockholder does not and will not violate the terms of or result in the
acceleration of any obligation under (i) any material contract, commitment or other
material instrument to which such Management Stockholder is a party or by which such
Management Stockholder is bound or (ii) in the case of a Management Stockholder that
is a corporation, limited liability company or limited partnership, the certificate
of incorporation, certificate of formation, certificate of limited partnership,
by-laws, limited liability company agreement or limited partnership agreement, as
the case may be.

     Section 8. Definitions. For purposes of this Agreement, the following terms shall
have the following respective meanings:

          “Affiliate”: a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Person
specified.

          “Board”: the board of directors of the Company.

          “Commission”: the Securities and Exchange Commission.

          “Common Stock”: the common stock of the Company, par value $.01 per share, now or
hereafter authorized to be issued, and any and all securities of any kind whatsoever of the Company
or any successor thereof (such securities, “Convertible Securities”) which may be issued on
or after the date hereof in respect of, in exchange for, or upon conversion of shares of Common
Stock pursuant to a merger, consolidation, stock split, reverse split, stock dividend,
recapitalization of the Company or otherwise.

          “Exchange Act”: the Securities Exchange Act of 1934, as amended, or any successor
federal statute, and the rules and regulations thereunder which shall be in effect at the time.

13

 

          “Investor Stockholders”: each of Coffeyville Acquisition LLC, a Delaware limited
liability company, and Coffeyville Acquisition II LLC, a Delaware limited liability company, for so
long as such entity holds shares of Common Stock.

          “IPO”: the initial public offering of Common Stock.

          “Majority Holders”: the holders of at least 51% of the Registrable Securities that
are participating in the registration at issue.

          “Majority Voting Holders”: the holders of at least 51% of the Registrable Securities.

          “NASD”: National Association of Securities Dealers, Inc.

          “NASDAQ”: the Nasdaq National Market.

          “Person”: an individual, corporation, partnership, limited liability company, joint
venture, business association, trust or any other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

          “Registrable Securities”: the shares of Common Stock Beneficially Owned by the
Investor Stockholders, the Management Stockholders or the Permitted Transferees (as such term is
defined in Section 9.2), as applicable, except for any shares of Common Stock
Beneficially Owned by a Management Stockholder that (i) were issued to such Management Stockholder
pursuant to an effective registration statement under the Securities Act on Form S-8 or (ii) may be
sold by such Management Stockholder pursuant to Rule 144 under the Securities Act, which shares of
Common Stock Beneficially Owned by a Management Stockholder shall not be Registrable Securities.
For purposes of this Agreement, a Person will be deemed to “Beneficially Own” or
“hold” Registrable Securities whenever such Person has the right to acquire, directly or
indirectly, such Registrable Securities (upon conversion, exercise or exchange of any Convertible
Securities but disregarding any restrictions or limitations upon the exercise of such right),
whether or not such acquisition has actually been effected, and such Person shall not be required
to convert, exercise or exchange such Convertible Security (or otherwise acquire such Registrable
Security) to participate in any registered offering hereunder prior to the closing of such
offering. As to any particular Registrable Securities, such securities shall cease to be
Registrable Securities when (i) a registration statement with respect to the sale of such
securities shall have become effective under the Securities Act and such securities shall have been
disposed of in accordance with such registration statement, (ii) a registration statement on Form
S-8 with respect to the sale of such securities shall have become effective under the Securities
Act, (iii) such securities shall have been sold to the public pursuant to Rule 144 under the
Securities Act, or (iv) such securities shall have ceased to be outstanding. Any and all shares of
Common Stock which may be issued in respect of, in exchange for, upon conversion of, or in
substitution for any Registrable Securities, whether by reason of any stock split, stock dividend,
reverse stock split, recapitalization, combination, merger, consolidation or otherwise, shall also
be “Registrable Securities” hereunder.

14

 

          “Registration Expenses”: all fees and expenses incurred in connection with the
Company’s performance of or compliance with any registration pursuant to this Agreement, including,
without limitation, (i) registration, filing and applicable Commission and NASD fees, (ii) fees and
expenses of complying with securities or blue sky laws, (iii) fees and expenses associated with
listing securities on an exchange or NASDAQ, (iv) word processing, duplicating and printing
expenses, (v) messenger and delivery expenses, (vi) transfer agents’, trustees’, depositories’,
registrars’ and fiscal agents’ fees, (vii) fees and disbursements of counsel for the Company and of
its independent public accountants, including the expenses of any special audits or “cold comfort”
letters required by, or incident to, such registration and (viii) any fees and disbursements of
underwriters customarily paid by issuers or sellers of securities, but excluding underwriting
discounts and commissions and transfer taxes, if any.

          “Securities Act”: the Securities Act of 1933, as amended, or any successor federal
statute, and the rules and regulations thereunder which shall be in effect at the time.

     Section 9. Miscellaneous.

     9.1. Rule 144, etc. If the Company shall have filed a registration statement pursuant
to the requirements of Section 12 of the Exchange Act or a registration statement pursuant to the
requirements of the Securities Act relating to any class of equity securities, the Company shall
file the reports required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the Commission thereunder, and shall take such further action as
any holder of Registrable Securities may reasonably request, all to the extent required from time
to time to enable such holder to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such rule may be amended from time to time, or (b) any successor rule or
regulation hereafter adopted by the Commission. Upon the request of any holder of Registrable
Securities, the Company shall deliver to such holder a written statement as to whether it has
complied with such requirements, a copy of the most recent annual or quarterly report of the
Company, and such other reports and documents as such holder may reasonably request in order to
avail itself of any rule or regulation of the Commission allowing it to sell any Registrable
Securities without registration.

     9.2. Successors, Assigns and Transferees. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their respective permitted
successors, personal representatives and assigns under this Section 9.2. The Company may
not assign any of its rights or delegate any of its duties under this Agreement without the prior
written consent of the Majority Voting Holders. The provisions of this Agreement which are for the
benefit of a holder of Registrable Securities shall be for the benefit of and enforceable by any
transferee of such Registrable Securities. Any holder of Registrable Securities may, at its
election and at any time or from time to time, assign its rights under this Agreement, in whole or
in part, to any Person to whom such holder sells, assigns or otherwise transfers its shares of
Registrable Securities; provided that (i) such transferee acquires such Registrable Securities in
accordance with any then applicable transfer restrictions in respect of such Registrable Securities
and (ii) no such assignment shall be binding upon or obligate the Company to any such transferee
unless and until such transferee executes a joinder agreement agreeing to be bound by

15

 

all of the transferor’s obligations hereunder, including, without limitation, Section
4 hereof, copies of which shall have been delivered to the Company (each such transferee, a
"Permitted Transferee”). Notwithstanding anything herein to the contrary, the Management
Stockholders must exercise all rights hereunder on behalf of any of their Permitted Transferees and
all other parties shall be entitled to deal exclusively with the Management Stockholders and rely
on the consent, waiver or any other action by the Management Stockholders as the consent, waiver or
other action, as the case may be, of any such Permitted Transferees of such Management
Stockholders.

     9.3. Stock Splits, etc. Each holder of Registrable Securities agrees that it will
vote to effect a stock split, reverse stock split, recapitalization or combination with respect to
any Registrable Securities in connection with any registration of any Registrable Securities
hereunder, or otherwise, if (i) the managing underwriter shall advise the Company in writing (or,
in connection with an offering that is not underwritten, if an investment banker shall advise the
Company in writing) that in its opinion such a stock split, reverse stock split, recapitalization
or combination would facilitate or increase the likelihood of success of the offering, and (ii)
such stock split, reverse stock split, recapitalization or combination does not impact the
respective ownership percentages of each such holder of Registrable Securities in the Company. The
Company shall cooperate in all respects in effecting any such stock split, reverse stock split,
recapitalization or combination.

     9.4. Amendment and Modification. This Agreement may be amended, waived, modified or
supplemented by the Company only with the prior written consent of each of the Company and a
majority (by number of shares) of any other holders of Registrable Securities whose interests would
be adversely affected by such amendment, waiver modification or supplement; provided that the
interests of any existing holders of Registrable Securities shall not be adversely affected by an
amendment, waiver, modification or settlement of this Agreement that provides for or has the effect
of providing for an additional grant of incidental registration rights with a lower or the same
priority as the rights held by such existing holders of Registrable Securities, as long as any such
grant of incidental registration rights with the same priority are pari passu with those held by
such existing holders of Registrable Securities. Each holder of Registrable Securities shall be
bound by any such amendment, waiver, modification or supplement authorized in accordance with this
Section 9.4, whether or not such Registrable Securities shall have been marked to indicate
such amendment, waiver, modification or supplement. The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a further or continuing waiver
of such breach or as a waiver of any other or subsequent breach, except as otherwise explicitly
provided for in such waiver. Except as otherwise expressly provided herein, no failure on the part
of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or
otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor
shall any single or partial exercise of such right, power or remedy by such party preclude any
other or further exercise thereof or the exercise of any other right, power or remedy. The
execution of a counterpart signature page to this Agreement by a Permitted Transferee pursuant to
Section 9.2 shall not require consent of any party hereto and shall not be deemed an
amendment to this Agreement.

16

 

     9.5. Governing Law; Venue and Service of Process. This Agreement and the rights and
obligations of the parties hereunder and the Persons subject hereto shall be governed by, and
construed and interpreted in accordance with, the law of the State of Delaware, without giving
effect to the choice of law principles thereof. By execution and delivery of this Agreement, each
of the parties hereto hereby irrevocably and unconditionally (i) consents to submit to the
exclusive jurisdiction of the courts of the State of New York in New York County and the United
States District Court for the Southern District of New York (collectively, the “Selected Courts”)
for any action or proceeding arising out of or relating to this Agreement and the transactions
contemplated hereby, and agrees not to commence any action or proceeding relating thereto except in
the Selected Courts, provided, that, a party may commence any action or proceeding in a court other
than a Selected Court solely for the purpose of enforcing an order or judgment issued by one of the
Selected Courts; (ii) consents to service of any process, summons, notice or document in any action
or proceeding by registered first-class mail, postage prepaid, return receipt requested or by
nationally recognized courier guaranteeing overnight delivery in accordance with Section
9.8 hereof and agrees that such service of process shall be effective service of process for
any action or proceeding brought against it in any such court, provided, that, nothing herein shall
affect the right of any party hereto to serve process in any other manner permitted by law; (iii)
waives any objection to the laying of venue of any action or proceeding arising out of this
Agreement or the transactions contemplated hereby in the Selected Courts; and (iv) waives and
agrees not to plead or claim in any court that any such action or proceeding brought in any such
Selected Court has been brought in an inconvenient forum.

     9.6. Invalidity of Provision. The invalidity or unenforceability of any provision of
this Agreement in any jurisdiction shall not affect the validity or enforceability of the remainder
of this Agreement in that jurisdiction or the validity or enforceability of this Agreement,
including that provision, in any other jurisdiction.

     9.7. Notices. All notices, requests, demands, letters, waivers and other
communications required or permitted to be given under this Agreement shall be in writing and shall
be deemed to have been duly given if (a) delivered personally, (b) mailed, certified or registered
mail with postage prepaid, (c) sent by next-day or overnight mail or delivery or (d) sent by fax,
as follows:

  (i) If to the Company, to it at:

10 E. Cambridge Circle, Ste. 250

Kansas City, Kansas 66103

Attention: Edmund S. Gross

Facsimile No.: 913-981-0000

     with copies (which shall not constitute notice) to:

GS Capital Partners V Fund, L.P.

c/o Goldman, Sachs & Co.

85 Broad Street

17

 

New York, New York 10004

Attention: Kenneth Pontarelli

Facsimile No.: 212-357-5505

Kelso & Company, L.P.

320 Park Avenue, 24th Floor

New York, New York 10022

Attention: General Counsel

Facsimile No.: 212-223-2379

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

Attention: Robert C. Schwenkel

                 Steven Steinman

Facsimile No.: (212) 859-4000

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

Attention: Kevin M. Schmidt

Facsimile No.: (212) 909-6836

     (ii) If to a Management Stockholder, as provided on Schedule A hereof.

or to such other Person or address as any party shall specify by notice in writing
to the Company. All such notices, requests, demands, letters, waivers and other
communications shall be deemed to have been received (w) if by personal delivery, at
the time delivered by hand (x) if by certified or registered mail, on the fifth
business day after the mailing thereof, (y) if by next-day or overnight mail or
delivery, on the day delivered, or (z) if by fax, on the day delivered; provided
that such delivery is confirmed.

     9.8. Headings: Execution in Counterparts. The headings and captions contained herein
are for convenience and shall not control or affect the meaning or construction of any provision
hereof. This Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and which together shall constitute one and the same instrument.

     9.9. Injunctive Relief. Each of the parties recognizes and agrees that money damages
may be insufficient and, therefore, in the event of a breach of any provision of this Agreement,
the aggrieved party may elect to institute and prosecute proceedings in any court of competent
jurisdiction to enforce specific performance or to enjoin the continuing breach of this Agreement.
Such remedies shall, however, be cumulative and not exclusive, and shall be in addition to any
other remedy which such party may have.

18

 

     9.10. Term. This Agreement shall be effective as of the date hereof and shall
continue in effect thereafter until the earlier of (a) its termination by the written consent of
the parties hereto or their respective successors in interest and (b) the date on which no
Registrable Securities remain outstanding.

     9.11. Further Assurances. Subject to the specific terms of this Agreement, each of
the Company and the Management Stockholders shall make, execute, acknowledge and deliver such other
instruments and documents, and take all such other actions, as may be reasonably required in order
to effectuate the purposes of this Agreement and to consummate the transactions contemplated
hereby.

     9.12. Entire Agreement. This Agreement and any agreements entered into in connection
with this Agreement constitute the entire agreement and the understanding of the parties hereto
with respect to the matters referred to herein. This Agreement and the agreements referred to in
the preceding sentence supersede all prior agreements and understandings between the parties with
respect to such matters.

     9.13.
No Third Party Beneficiaries. Except as otherwise provided
herein, this Agreement is not intended to, and does not, confer upon
any Person, except for the parties hereto, any rights or remedies
hereunder.

[Signature page follows]

19

 

     IN WITNESS WHEREOF this Agreement has been signed by each of the parties hereto, and shall be
effective as of the date first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	CVR ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	John J. Lipinski	 	 

[Signature page to Management Registration Rights Agreement]

 

 

Schedule A

Management Stockholders

John J. Lipinski

2277 Plaza Drive|

Suite 500

SugarLand, Tx 77479

Facsimile No.: (281) 207-7747EX-10.46

 

Exhibit 10.46

AGREEMENT

BETWEEN

COFFEYVILLE RESOURCES REFINING AND MARKETING, LLC.

And

the following unions of the Metal Trades Department, AFL-CIO

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL NO. 123

INTERNATIONAL BROTHERHOOD OF BOILERMAKERS, IRON SHIPBUILDERS,

BLACKSMITHS, FORGERS, AND HELPERS, LOCAL NO. 83

UNITED ASSOCIATION OF JOURNEYMAN PLUMBERS AND STEAMFITTERS OF

THE

UNITED STATES AND CANADA, LOCAL NO. 441

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS,

LOCAL NO. 226

INTERNATIONAL ASSOCIATION OF MACHINISTS, LOCAL NO. 693

and the

INTERNATIONAL BROTHERHOOD OF TEAMSTERS, LOCAL NO. 823 (affiliated)

Effective upon the closing date of the sale of the Coffeyville Refinery from Farmland Industries to
Coffeyville Resources Refining and Marketing, LLC.

 

 

AGREEMENT BETWEEN COFFEYVILLE RESOURCES REFINING AND MARKETING, LLC. and the following unions of
the Metal Trades Department of the AFL-CIO – the International Union of Operating Engineers, Local
No. 123, International Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers, and
helpers, Local No. 83, United Association of Journeyman Plumbers and Steamfitters of the United
States and Canada, Local No. 441, International Brotherhood of Electrical Workers, Local No. 226,
International Association of Machinists, Local No. 693, and International Brotherhood of Teamsters,
Local No. 823.

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Article 1

	 	Recognition
	 	 	1	 
	Article 2

	 	Binding Effect of Agreement
	 	 	2	 
	Article 3

	 	Union Representatives
	 	 	2	 
	Article 4

	 	No Strikes
	 	 	2	 
	Article 5

	 	No Solicitation or Distribution
	 	 	3	 
	Article 6

	 	Management Rights
	 	 	3	 
	Article 7

	 	Employment Procedure
	 	 	3	 
	Article 8

	 	No Discrimination
	 	 	4	 
	Article 9

	 	Discipline and Discharge
	 	 	4	 
	Article 10

	 	Drug and Alcohol Policy
	 	 	5	 
	Article 11

	 	Safety
	 	 	6	 
	Article 12

	 	Education and Training
	 	 	7	 
	Article 13

	 	Wages
	 	 	7	 
	Article 14

	 	Payroll Week
	 	 	7	 
	Article 15

	 	Hours of Work
	 	 	7	 
	Article 16

	 	Meals
	 	 	8	 
	Article 17

	 	Holidays
	 	 	9	 
	Article 18

	 	Paid Time Off
	 	 	10	 
	Article 19

	 	Seniority, Layoffs, Transfers, and Promotions
	 	 	12	 

- ii -

 

	 	 	 	 	 	 	 
	Article 20

	 	Leaves of Absence
	 	 	12	 
	Article 21

	 	Jury Duty
	 	 	13	 
	Article 22

	 	Bereavement Pay
	 	 	13	 
	Article 23

	 	Uniforms
	 	 	13	 
	Article 24

	 	Indemnification
	 	 	14	 
	Article 25

	 	Grievance and Arbitration Procedure
	 	 	14	 
	Article 26

	 	Bulletin Boards
	 	 	16	 
	Article 27

	 	Individual Agreements
	 	 	16	 
	Article 28

	 	Savings Clause
	 	 	16	 
	Article 29

	 	Expiration
	 	 	16	 
	Article 30

	 	Complete Agreement
	 	 	16	 
	Exhibit 1

	 	Job Classifications and Wage Rates	 	 	 	 
	Exhibit 2

	 	Testing Procedure	 	 	 	 
	Exhibit 3

	 	Medical and Dental Insurance	 	 	 	 
	Exhibit 4

	 	401(k) Plan	 	 	 	 

- iii -

 

COLLECTIVE BARGAINING AGREEMENT

THIS AGREEMENT is made and entered into as of                     , and between Coffeyville Resources
Refining and Marketing, Inc. in Coffeyville, Kansas (hereinafter referred to as the “Employer”),
and the Metal Trades Department AFL-CIO consisting of the International Union of Operating
Engineers, Local No. 123, the International Brotherhood of Boilermakers, Iron Shipbuilders,
Blacksmiths, Forgers, and helpers, Local No. 83, the United Association of Journeyman Plumbers and
Steamfitters of the United States and Canada, Local No. 441, the International Brotherhood of
Electrical Workers, Local No. 226, the International Association of Machinists, Local No. 693, and
the International Brotherhood of Teamsters, Local No. 823 (hereinafter referred to as the “Union”).

WITNESSETH:

     WHEREAS, the parties have, by negotiation and collective bargaining, reached complete
agreement on wages, hours of work, working conditions and other related, negotiable subjects to be
incorporated into a new Labor Agreement which shall supersede all previous verbal or written
agreements applicable to the employees in the bargaining unit defined herein, which may have
existed between the predecessor of the Employer and the Union.

     WHEREAS, the Employer and organized labor both clearly recognize the responsibilities that
both have to each other and the need for a close and continued friendly relationship between them,
and because they further recognize that such relationship will result in mutual benefits by giving
effective service in the interest of the Employer and creating improved labor standards for the
members of the Union; consequently, this Agreement is entered into with good will and
understanding.

     WHEREAS, the Employer and the Union agree to do everything in their power to obtain maximum
productivity on the part of individual employees within the limits of safety and good health. The
Employer and the Union agree that the economic condition of the Employer and the industry
necessitate an increased militance against waste and inefficiency and the parties pledge that
unnecessary overtime for calls to work outside of duty hours are to be avoided wherever
practicable.

     NOW, THEREFORE, in consideration of the foregoing, the execution of this Agreement and the
full and faithful performance of the covenants, representations and warranties contained herein, it
is mutually agreed as follows:

Article 1
— Recognition

1.01 Recognition. The Employer agrees to recognize the Union as the exclusive bargaining
representative for the Employer’s employees at its establishment in Coffeyville, Kansas, working
under the Union’s jurisdiction and working in those job classifications listed in Exhibit 1
attached hereto and made a part of this Agreement. The Employer and the Union agree that all full
time employees working in classifications listed in Exhibit 1 are properly within the bargaining
unit and that the term “employee” as used in this Agreement refers to employees of the Employer
working in such classifications. The parties specifically agree that nothing herein

 - 1 - 

 

shall be construed to extend recognition to persons employed part time or temporarily by the
Employer in any other job classification or at any other locations, or any subsequently acquired
property not represented by the Union.

1.02 Gender. In this Agreement, whenever the context so requires, the masculine gender
includes the feminine.

Article 2  — Binding Effect of Agreement

2.01 Binding Effect of Agreement. This Agreement shall be binding upon the parties’
signatory hereto. In the event that the Employer’s business is sold, assigned or transferred, the
parties shall have all rights and obligations conferred by law.

Article 3 — Union Representatives

3.01 Shop Stewards. The Employer recognizes the right of the Union to appoint Shop
Stewards. Such Shop Stewards shall function at the direction of the Union. Shop Stewards shall
conduct their business as expeditiously as possible, will not interfere with the Employer’s
business, and shall not conduct their Union business during work time, unless approved in advance
by the Employer. Such approval shall not be unreasonably withheld.

3.02 Compensation. The Company shall pay one shop steward or one appropriate union
representative in the absence of the steward at his regularly hourly rate for time spent
representing employees in grievance-related meetings, in contract negotiations (up to a maximum of
24 hours) and any other joint Union-Company conferences. Such time will not be considered time
worked for purposes of overtime.

Article 4 — No Strikes

4.01 No Strikes or Lockouts; Continuity of Operation. During the existence of this
Agreement, there shall be no lockouts or strikes, including sympathy strikes, picketing, work
stoppages, slowdowns or disruptive activity by the Union or by any employee. It is specifically
understood and agreed that a work stoppage or disruption of work or slowdown occasioned by the
honoring of another union’s (whether or not affiliated or associated with the Union) picket line
shall constitute a forbidden work stoppage under this Article.

Any and all Employees who violate any of the provisions of this Article may be discharged or
otherwise disciplined by the Company.

Upon expiration of the Agreement and because of the nature of the refining business, need for
safety in the community, and desirability of orderly turnover of the refinery there shall be no
strike or lockout until after a lapse of a period of not less than 72 hours following a notice of
strike or lockout from the party giving such notice to the other party and that this Article 4
shall be considered as in full force until expiration of such period of 72 hours.

4.02 Violation. Nothing contained herein shall preclude the Company from obtaining
judicial restraint and damages in the event any provision of this Article is violated. Any alleged violation of this Article shall not be subject to the provisions of the grievance and arbitration
provisions of this Agreement.

 - 2 - 

 

Article 5 — No Solicitation or Distribution

5.01 No Solicitation or Distribution. Employees may not solicit or distribute printed
materials of any kind to employees during work time or in work areas. Employees who are not on
work time may not solicit or distribute printed materials to employees who are on work time.
Employees on break time may solicit or distribute printed materials of any kind to other employees
on break time, in the break areas.

Article 6 — Management Rights

6.01 Management Rights. The management of the plant and direction of the workforce,
including the right to hire, set work schedules, to determine the qualifications of employees after
discussion with appropriate union representatives, suspend or discharge for just cause, to reduce
the workforce, to assign jobs, to transfer employees within the plant, to determine the need for
filling temporary or permanent vacancies, to increase or decrease the number of employees assigned
to perform work in plant operations or maintenance, to determine products to be handled, processed
or manufactured, to establish workplace policies and procedures; to determine the type and scope of
work to be performed; to establish schedules of operation, including the right to require overtime,
the schedules of production and methods, processes, rate of production, are vested exclusively in
the Employer. Such enumeration is representative but not exhaustive of management duties and
responsibilities. Production is intended to encompass all functions in the refinery.

     The Company shall also have the right to introduce new or improved working methods or
facilities. Further, it is emphasized and understood that the Employer retains the right to
contract out such work as is deemed by the Employer to be in the best economic interest of the
Employer. Nothing in this Section is intended to limit any rights of the Company not specifically
and expressly covered in this Agreement.

6.02 Rules. Except as specifically modified in this Agreement, all rules, policies and
obligations, which the Employer may promulgate in the future, shall be applicable to the Employees
covered by the terms of this Agreement.

6.03 Contracting Out. Contracting out decisions will be made by Management based on cost,
quality, emergency situations, required equipment or any other criteria deemed relevant by
Management. The Union has the right to present alternative suggestions, with justifications, that
could result in additional review of Management’s decision. Such suggestions will not diminish in
any way Management’s right to make and implement contracting out decisions.

Article 7 — Employment Procedure

7.01 Employment Procedure. The Employer shall exercise its management right to hire those
individuals who, in the sole discretion of the Employer, are the most qualified to fill
existing vacancies.

 - 3 - 

 

7.02 Probationary Period: An Employee shall be on probation until he has completed one
hundred and eighty (180) calendar days of employment. The period of probation shall be extended by
the number of days the Employee is absent from scheduled work while on probationary status. A
probationary employee may be terminated, with or without just cause, at the discretion of the
Employer, and such termination shall not be subject to the dispute resolution provisions of this
Agreement.

7.03 Job Vacancies. For one (1) year following the date of execution of this Agreement,
when a permanent vacancy exists in a bargaining unit position, which the Employer chooses to fill
with an outside applicant, the Employer shall notify the former Farmland Industries, Inc. Employees
not hired by the Employer of the vacancy, and they will be given the first opportunity to apply for
any such vacancy. The Employer shall inform the former Farmland Employees of the vacancy by
sending a notice by first class mail to the former Farmland Employees at their last known address.
However, nothing contained in this Article shall be interpreted to guarantee that any former
Farmland employee will be selected to fill any such vacancy. Rather, the Employer retains sole
discretion to determine who will fill any and all job vacancies.

Article 8
— No Discrimination

8.01 No Discrimination. The Employer is committed to the recruitment, development,
training, recognition and promotion of Employees on the basis of their ability and attitude,
without regard to gender, race, color, creed, nationality, age, religion, union affiliation,
ancestry, veteran status, pregnancy, disability, or any other legally protected status under local,
state or federal law. All actions affecting personnel are administered fairly and in accordance
with applicable laws. This policy applies to all terms and conditions of employment.

8.02 Harassment. The Employer is committed to maintaining a work environment free from
harassment, including sexual harassment. The Employer shall have good cause to discharge any
Employee who engages in harassment directed toward any Employee, customer, visitor or vendor.
Harassment is defined as unwelcome verbal or physical conduct of a discriminatory nature based upon
age, race, religion, national origin, disability, veteran status, or any other protected
classification, which creates a work environment that is offensive, hostile or intimidating.
Sexual harassment includes, but is not limited to, solicitation of sexual favors, offensive
touching, lewd or suggestive comments, sexual jokes or innuendoes, visual displays of pornographic
materials, and visual displays of sexual materials.

8.03 Reporting Harassment. It is incumbent upon an Employee to immediately report to his
or her supervisor any other Employees who are engaging in harassment. Employees who fail to
satisfy this obligation may be subject to discipline, up to and including termination.

Article 9
— Discipline and Discharge

9.01 Discipline And Discharge. No regular Employee, after having completed the
probationary period under Article 7, Section 7.02, shall be disciplined and/or discharged except
for just cause. To the extent deemed appropriate in its sole discretion, the Employer shall follow
a system of progressive discipline. The parties agree that progressive discipline normally
requires, prior to suspension or discharge, that an Employee be given a verbal warning and then a

 - 4 - 

 

written opportunity to correct the deficiency, but that with the principle of progressive
discipline, the Employer may impose immediate suspension or discharge for dishonesty, incompetence,
misconduct, insubordination, failure to report to work without just cause, walking off the job
during a shift, or drinking alcohol or use of controlled substance, or being under the influence
thereof, during the Employee’s shift.

9.02 Final Written Warning. An Employee may be placed on “final written warning” status
for up to one (1) month at any time when his performance has deteriorated to the extent that his
supervisor believes, and the Employer’s Human Resources Director agrees, that it is necessary to
impress upon him the significance of poor performance and the need for improvement. The Employer
shall advise the Employee and the Union of his deficiencies and the areas where improvement is
required with specificity. The Employer shall advise the Union that the Employee has been placed
on final written warning status within 24 hours of being placed on such status. An Employee who
improves satisfactorily during this period may be restored to regular status. Failure to improve
performance during this period may result in termination or transfer to another job more suited to
the Employee’s capabilities. Deficiencies in work performance should be documented and placed in
the Employee’s file. Regular Employees who have been placed on final written warning status are
eligible for normal benefit accrual but may not take any vacation days during that period.

9.03 Plant Rules. Pursuant to its management rights, the Employer shall develop and
implement plant rules.. Said rules shall be communicated to all Employees. Employee shall be
required to follow the Plant Rules and shall be subject to discipline for failure to do so,
including immediate discharge for serious violations as defined therein.

9.04 Accident Reporting. The Employer has the responsibility to establish and adopt an
accident policy. Any Employee who is found guilty of violating such accident policy may be subject
to discipline up to and including discharge.

9.05 Investigatory Interviews. Any Employee who is requested to participate in an
investigatory interview, that the Employee reasonably anticipates will result in the imposition of
a disciplinary penalty, may request that a Union representative be present. The Employer may grant
or deny the Employee’s request. If the Employer denies the Employee’s request, the Employee shall
have the option of continuing the interview without the presence of a Union representative, or
discontinuing the interview. If the Employee’s request is granted, the Union representative shall
be summoned by the Employer and allowed to be present during the investigatory interview. The
interview shall be scheduled for a date and time acceptable to the Employer and the Union. The
Employer may proceed with the interview without the presence of a Union representative, if the
Union representative is unavailable for 36 consecutive hours following notification. In that
event, the Employee may decide whether he desires to participate in the interview without the
presence of a Union representative. This provision shall not apply to the application of the drug
and alcohol policy.

Article 10
— Drug and Alcohol Policy

10.01 Drug or Alcohol Test. The Employer will adopt a drug and alcohol policy. Employees
are required to adhere to that policy and shall be subject to the testing procedures

 - 5 - 

 

contained therein. Any Employee suspected of consuming, using or being under the influence of
drugs or alcohol must submit to an immediate drug and/or alcohol test. The Employer may monitor an
Employee’s work performance and behavior to determine whether the Employer suspects that the
Employee is under the influence of drugs or alcohol. Such testing shall be conducted by a
certified lab to insure the integrity of the specimen.

10.02 Job-Related Accident. Any Employee involved in a job-related accident requiring
attention at a medical facility may be required to submit to a drug and/or alcohol test.

10.03 Consequence of Positive Test. The Employer shall have just cause to discharge an
Employee in the event that the drug or alcohol test indicates the presence of drugs or alcohol.

10.04 Refusal to Submit. Any Employee subject to drug and/or alcohol testing as outlined
above who refuses to submit to such test shall be considered to have failed the test for purposes
of this Article.

10.05 Random Drug Testing. The Employer may implement a random drug testing policy, to the
extent permitted by law.

10.06 Compliance with Applicable Laws. The Employer agrees to comply with all applicable
laws, if any, with regard to employee drug testing.

Article 11
— Safety

11.01 Safety. The Company and the Union agree to cooperate in promoting the safety of
Employees. The Employer will comply with all safety standards imposed by state and federal law,
insofar as such standards are applicable to the Employees covered by this Agreement. The Employer
shall provide safety glasses and ear protection. The Employer shall reimburse an Employee for the
cost of one pair of pre-approved prescription safety glasses annually and up to 50% for the cost of
approved ANSI steel toed safety shoes.

11.02 Safety Procedures. The Employer and the Union agree to the immediate formation of a
joint committee, which shall be known as the “Joint Safety Committee.” The purpose of the
committee is to study and make recommendations that will ensure safe and efficient operation of the
Employer’s refinery. It is understood and agreed that the committee shall not have the right to
alter, vary or modify provisions of this Agreement. It is further understood that the
establishment and function of the committee provided herein shall in no way alter, vary or modify
the right of any Employee, the Union or the Company to pursue any matter through the grievance and
arbitration provisions of this Agreement. Activities of the Employee-members of the safety
committee shall not interfere with the proper performance of the Employee’s work.

11.03 Safe Working Conditions. The Company agrees to respond to any claims or unsafe
working conditions raised by Employee or the Union. The Union agrees to encourage Employees to
observe safe working conditions and to be alert to safety hazards for their safety and the safety
of others. Further, the Company shall ensure that there is adequate life-saving gear and first aid
equipment available. Employees violating approved safety rules shall be subject to discipline, up
to and including discharge.

 - 6 - 

 

Article 12 — Education and Training

12.01 Education and Training Committee. The Company and the Union agree to the
establishment of a “Joint Education and Training Committee” to develop education and training
initiatives that are determined by the Company to be necessary for future business needs and to
provide opportunities for Employees to gain additional employment skills. Toward that end, the
Joint Education and Training Committee shall be established and shall consist of three (3)
representatives appointed by the Union and three (3) representatives of management. This Committee
shall meet primarily for the purpose of fostering and promoting the advancement of effective
education and training programs. It is understood and agreed that the committee shall not have the
right to alter, vary or modify provisions of this Agreement. It is further understood that the
establishment and function of the committee provided herein shall in no way alter, vary or modify
the right of any Employee, the Union or the Company to pursue any matter through the grievance and
arbitration provisions of this Agreement. Activities of the Employee-members of the education and
training committee shall not interfere with the proper performance of the Employee’s work.

12.02 Cross Training and Job Assignment Rotation. The Employer and the Union also agree
that it is critical to the success of the Company that Employees be trained to perform multiple job
duties. Thus, the parties agree that the Employer shall have the right to rotate Employees’ job
assignments and conduct cross craft training. Further, the Employer and the Union agree that cross
craft training and rotation of job assignments will be an essential part of the education and
training programs to be established.

Article 13 — Wages

13.01 Applicable Wage Rates. The wage rates applicable to the Employees covered by this
Agreement are set forth in Exhibit 1 attached hereto. Subject to the provision of Article 19.04,
the Employees will be paid the job rate for the position worked on a shift plus any applicable
skill-based premium as provided in Exhibit 1.

13.02 Shift Differential. To be determined after shifts are set, but not anticipated to be
different than the shift differentials currently in place.

Article 14 — Payroll Week

14.01 Payroll Week. The payroll week shall be as designated by the Company at the time
this Agreement is executed. The payroll week shall not thereafter be changed without prior notice
to the Union.

Article 15 — Hours of Work

15.01 Workweek. The workweek shall begin at 12:00 Midnight on Sunday and continue until
12:00 Midnight on the following Sunday. Each Maintenance workday consisting of at least eight (8)
consecutive hours, shall include an unpaid meal break of thirty (30) minutes.

15.02 Work Shift. The Employer will establish regular work shifts which shall be comprised
of work crews.

 - 7 - 

 

15.03 Overtime Compensation. Employees shall be paid at a rate of one and one-half (11/2 x)
times the Employee’s regular hourly rate for all hours worked in excess of their regularly
scheduled work day (consisting of at least eight (8) hours in a day) or forty hours in a workweek,
or for all hours worked on any of the holidays specified in this Agreement for up to eight (8)
hours. Employees shall not be laid off on a regularly scheduled workday to avoid overtime pay.
Overtime or holiday compensation shall not be pyramided; i.e., hours worked at a rate of time and
one-half time shall not be computed more than once in calculating overtime or holiday pay earned,
nor shall any premium rate be further expanded to time and one-half or double time of such premium
rate under any Article of this Agreement.

15.04 Vacation Pay. When an Employee takes vacation time, as defined in this Article, the
Employee shall be paid up to eight (8) hours of straight-time pay and such hours shall be counted
as hours worked for the purpose of computing overtime for that week. Holidays shall also be
counted as hours worked. Use of PTO days (other than vacation) shall not be counted as hours
worked for the purpose of computing overtime for that week.

15.05 Reporting Pay. An Employee who reports for work at the beginning of his scheduled
shift and who has not been notified not to so report prior to his scheduled starting time shall be
guaranteed a minimum of two (2) hours of straight-time pay at his regular hourly rate. The
provisions of this section shall not apply, however, when the Employee cannot be reached by
telephone or when the failure of the Company to provide work is caused by work stoppage, labor
dispute, storm, flood, unavailability of power or utilities, fire or any other condition beyond the
control of the Company. To qualify for the reporting guarantee an Employee must accept such work
assignment as may be made by the Company.

15.06 Callout Pay. The Employer may assign certain Employees pager and/or cell phones on a
rotating basis for the purposes of assigning callouts. An Employee who reports to work pursuant to
a callout, is guaranteed four (4) hours of straight-time pay at his regular hourly rate. Further,
to qualify for the callout guarantee, an Employee must accept such work assignment as may be made
by the Company. The Employee initially assigned the pager/cell phone will be accountable to
respond in a timely fashion, namely to respond and report at the plant within an hour. Failure to
respond timely to the pager and/or cell phone will result in corrective action. Employees shall
receive $25 for each week they are assigned a pager or cell phone.

15.07 Travel Expenses. Employees attending training sessions away from the Refinery will
be paid straight time pay for the actual time spent in training and traveling to and from such
training. Employees will be reimbursed for reasonable meal, hotel, and travel expenses while
attending such training. Attendance at training shall not be counted as hours worked for purposes
of computing overtime.

Article 16 — Meals

16.01 Meals. Employees held over for three (3) hours past the end of their regularly
scheduled shift and every five (5) hours thereafter will be eligible for a meal that costs a
maximum $10. Employees called out to work will receive a meal every five (5) hours. In lieu of a
meal, the Employees involved may elect to take a $15 ticket redeemable at certain local businesses.
All Employees working on this overtime assignment must either take the ticket or eat a meal provided by the Employer. No meals will be provided by the Employer for scheduled
overtime assignments until 12 hours of work are completed in a Maintenance job.

 - 8 - 

 

Article 17 —  Holidays

17.01 Paid Holidays. The Employer recognizes the following paid holidays each year: New
Years Day, President’s Day, Good Friday, Decoration Day, Independence Day, Labor Day, Veterans’
Day, Thanksgiving Day, day after Thanksgiving Day and Christmas Day.

When a holiday falls on a Saturday, the holiday will be observed on the previous Friday. When a
holiday falls on a Sunday the following Monday will be observed as the holiday. This Article will
not apply to employees with rotating days off.

17.02 Other Religious Holidays. Employees who wish to observe certain holidays of worship
or commemoration not included in the Employer’s holiday schedule may do so with approval from
management as an unpaid, excused absence or use a PTO day, if available.

17.03 Holiday Pay. Holiday Pay will be administered as follows:

	 	A.	 	If a holiday occurs during an Employee’s vacation, he shall receive Holiday Pay
in addition to Vacation Pay or shall be given an additional day’s vacation or an extra
day’s pay, at management’s discretion. The Holiday Pay shall not exceed eight (8)
hours.
	 
	 	B.	 	If a holiday occurs during a leave of absence, the Employee shall not be paid
for that holiday.
	 
	 	C.	 	Holidays not worked that fall during an Employee’s regularly scheduled workweek
shall be paid at eight (8) hours straight-time and shall be counted as days worked for
the purpose of computing overtime for that week.

	 	1.	 	If a holiday occurs on a regularly scheduled day off, and the
Employee does not work, he shall receive an additional eight (8) hours
straight-time pay for that workweek.
	 
	 	2.	 	Employees required to work on a holiday, shall be paid eight
(8) hours straight-time Holiday pay, plus time and a half for the hours worked
on that day.

	 	a.	 	If an Employee is scheduled to work on a
holiday and does not report to work, he shall not receive Holiday Pay
without his Department Head’s written approval.
	 
	 	b.	 	To receive Holiday Pay, an otherwise eligible
Employee must be at work on the scheduled workday immediately preceding
and immediately following the day on which the holiday is observed. If
an Employee is absent on one (1) or both of these days because of an illness or injury, the Employer reserves the right to request
that the Employee provide medical verification.

 - 9 - 

 

	 	c.	 	If an Employee leaves work early, he shall
receive Holiday Pay only for the actual hours worked unless the reason
for the “early out” is at management’s request. In such cases, the
Employee shall receive eight (8) hours Holiday Pay plus the hours
worked.

	 	D.	 	Employees hired from Farmland immediately after the purchase of the refinery
shall be entitled to receive holiday pay upon initial hire by the Company.
Probationary employees and temporary employees will not be eligible to receive holiday
pay.
	 
	 	E.	 	The Employer shall have the right to determine which employees are scheduled to
observe the holidays specified in this Article as non-work days.

Article 18 —  Paid Time Off

18.01 Paid Vacation. Full-time regular Employees who have twelve (12) months of continuous
Company service are entitled to paid vacation according to the following schedule:

	 	 	 
	One (1) year of service

	 	One (1) week
	Two (2) to fifteen (15) years of service

	 	Two (2) weeks
	Fifteen (15) to twenty (20) years of service

	 	Three (3) weeks
	Over twenty (20) years of service

	 	Four (4) weeks

	 	A.	 	Paid vacation eligibility is calculated on the employee’s anniversary date.
For purposes of vacation entitlement, Farmland years of service shall be recognized.
Vacation may be taken as it is accrued. Vacation shall be accrued monthly. No
advances of vacation time will be made.
	 
	 	B.	 	Vacation Pay is computed at the Employee’s current regular hourly rate of pay.
	 
	 	C.	 	Employees must indicate their desired vacation periods to the Employer between
December 1 and 15 of each year for vacations to be taken during the next calendar year.
	 
	 	D.	 	Vacations shall be taken in increments of at least one (1) full week unless
otherwise approved by the Employee’s Department Head.
	 
	 	E.	 	An Employee’s preference shall be considered in scheduling vacations, but the
vacation schedule shall be subject to the Employer’s work requirements.

	 	1.	 	When scheduling conflicts occur, the first Employee to submit
the request shall have a preference for the requested vacation. In the event
that Employees simultaneously submit requests, which would create a scheduling
conflict, the Employee with the greatest length of service (including Farmland
service) shall have first preference. However, once a vacation request has been approved, the Employee may not be “bumped” in
favor of another who has greater seniority.

 - 10 - 

 

	 	2.	 	Vacation time can be carried over from year to year in the
following increments: 1 year to 15 years of service –
5 days
                                                                                                                                  greater than 15 years of service – 10 days
	 
	 	 	 	Carry over of a greater number of days will not be made with the following
two (2) exceptions:

	 	a.	 	If the Employee is required to forego any
portion of his vacation for the Employer’s convenience, he shall be
allowed to carry any unused time forward into the next anniversary
year. The Employee’s Department Head should write a memo to the file
documenting the carry over, with a copy to the Union and the Employee.
	 
	 	b.	 	If an Employee is unable to use all of his
accrued vacation due to a work-related disability, the unused portion
of the vacation shall carry over into the next anniversary year.

	 	3.	 	Pay in lieu of time off shall not be granted unless there is
mutual agreement between the Union and the Employer.

	 	F.	 	The Employer may block certain periods of time throughout the year when
vacation cannot be taken. If the Employer chooses to block certain periods, notice
will be given at the time Employees are to indicate there desired vacation periods.

18.02 Paid Time Off (PTO). PTO can be used for any purpose and is available as a flexible
addition to vacation time. For example, PTO can be used for sick days, religious holidays and
personal emergencies. All employees are allotted five (5) PTO days each calendar year and may be
used in no less than hourly increments. An employee cannot use PTO unless prior approval is given
by the employee’s supervisor to the extent possible. Employees will be permitted to carry over up
to ten (10) PTO days from year to year. If an employee is unable to attend work due to illness,
injury or other reason, the employee shall notify his supervisor of the leave as far in advance as
reasonably ascertainable. If an employee decides to take such leave on the morning of the
scheduled workday, the employee shall notify the employee’s supervisor or another appropriate
manager at least two (2) hours before the employee is scheduled to start work. An employee will
not be paid for unused PTO time.

18.03 Sick Leave. After the completion of six (6) months continuous employment, exclusive
of periods of layoff and absence, permanent employees will be granted sick leave with pay accrued
at the rate of one (1) day per month up to five (5) days a year. A maximum of ten (10) working
days may be accumulated. Sick leave pay will be based on the each employee’s straight time pay
rate.

 - 11 - 

 

Article 19 — Seniority, Layoffs, Transfers, and Promotions

19.01 Seniority. Company seniority is an employee’s length of continuous service with the
Company. Farmland service with each employee hired in conjunction with the sale of the refinery
from Farmland to the Employer shall be credited as Company seniority.

19.02 Seniority Categories. The following categories of seniority will be established:

Plant Seniority will start upon date of hire by the Employer.
Maintenance Seniority starts upon the date of hire into the Maintenance Department.
Operating Seniority starts upon the date of hire into an Operating position.
Operating Unit seniority starts upon the date of hire into an Operating Unit.

19.03 Layoff and Rehire. In the event layoffs become necessary, which Employees will be
laid off or retained and which Employees shall be recalled shall be determined by the appropriate
seniority in the following manner: operations seniority shall determine layoff and recall
decisions in operations; craft seniority shall determine layoff and recall decisions in
maintenance; and plant seniority shall determine layoff and recall decisions from the yard.
Employees laid off from operations or maintenance can use plant seniority to roll back to the yard.

19.04 Temporary Transfers. The Employer, in its sole discretion, may transfer Employees
temporarily between shifts and between jobs and departments in order to maintain efficient and/or
economical operations of the refinery. Temporarily as used in the Article is defined and
understood to mean any period of time, which does not exceed thirty (30) consecutive work days
provided, however, that by mutual agreement between the Company and the Union, the period of time
may be extended. Employees transferred for less than one (1) week will receive their same rate of
pay.

19.05 Job Openings. The Employer shall exercise its management right to place and/or
promote those individuals who, in the sole discretion of the Employer, are the most qualified to
fill available position(s). In the event that Management, in its sole discretion, deems
individuals to be equally qualified, seniority shall be used as the determining factor. Whenever
practicable, Management shall post available job openings for all interested Employees to apply.
Said posting shall state the minimum qualifications for the available opening.

Article 20 — Leaves of Absence

20.01 Leaves of Absence. Employees shall receive medical leave, maternity leave, family
and medical leave, and military leave as required by applicable state and federal laws.
Specifically, the parties will comply with the requirements of the Family and Medical Leave Act of
1993, hereinafter, “the FMLA.” Employees shall be permitted to take the leaves allowed by law,
subject to the Company’s right to adopt a policy detailing any procedures, requirements or
restrictions on such leaves, as are permitted by law or this Agreement. An Employee seeking FMLA
leave under this Article must provide sufficient information concerning the reason for the leave so
that the Company can determine whether the leave qualifies under the FMLA.

 - 12 - 

 

Article 21 — Jury Duty

21.01 Jury Duty. Employees are entitled to take a leave of absence for jury duty.

	 	A.	 	The Employee shall be paid a sum equal to his straight-time earnings for eight
(8) hours as if he were on the job, less the amount actually paid to the Employee for
his jury duty service.
	 
	 	B.	 	Compensation for jury service shall not exceed ten (10) days in any twelve
(12)-month period.
	 
	 	C.	 	Court or jury duty adjustment is applicable only to an Employee’s regularly
scheduled days of work, and no adjustment shall be made for time spent on jury duty on
days which the Employee was not regularly scheduled to work.
	 
	 	D.	 	Time spent on court or jury duty shall not be considered as part of the
workweek for purposes of computing overtime.
	 
	 	E.	 	Employees must present their jury summons to their manager as soon as they
receive it.
	 
	 	F.	 	Employees must notify their manager of the number of hours that they are
required to serve jury duty, and their availability to work on their next scheduled
shift as soon as possible.

Article 22 — Bereavement Pay

22.01 Bereavement Pay. In the event of a death in a full-time Employee’s immediate family
(defined as the Employee’s spouse, child, step child, parent or step parent or parent in law, or
blood brother or sister), an Employee shall be granted up to three (3) consecutive work days off as
funeral leave if the employee attends the funeral. Proof of the death and of the family relation
may be required by the Company.

Article 23 — Uniforms

23.01 Uniforms. While Employees are not required to make deposits for uniforms and
clothing furnished by the Employer, they are nevertheless responsible for such uniforms and
clothing. Employees shall therefore be responsible for the cost of any loss of or damage caused by
the neglect of the Employee to Employer-provided uniforms and the Employer may deduct the cost for
such damage or loss from an Employee’s paycheck, provided this is permitted by law, except for
damage attributable to normal wear and tear, damage incurred during the normal performance of the
Employee’s work or loss or damage not caused by the neglect of any Employee.

 - 13 - 

 

Article 24 — Indemnification

24.01 Indemnification. The Union will indemnify and save the Employer harmless against any
and all claims, demands, other forms of liability which may arise out of or by reason of any action
taken or not taken by the Employer at the request of the Union.

Article 25 — Grievance and Arbitration Procedure

25.01 Definition. A grievance shall be defined as a dispute regarding the interpretation
and application of the provisions of this Agreement raised by the Union or an Employee alleging a
violation of the terms and provisions of this Agreement. However, disputes specifically excluded
in other Articles of this Agreement from the grievance and arbitration procedure shall not be
construed as falling within this definition.

25.02 Procedure for Filing Grievances. All grievances shall be handled exclusively in the
following manner:

	 	 	 
	STEP 1:

	 	Matters for discussion must first be orally submitted to the
employee’s immediate supervisor. Such a meeting shall normally
include the employee, the local union or unit representative, and
the foreman and shall be held within five (5) working days of the
time that the aggrieved party has knowledge of the grievance. If
the grievance is not resolved at this step, then the employee may
file a formal written grievance within five (5) days under the
procedures set forth below. If the matter is not resolved, the
immediate supervisor shall render a written response to the
grievance within five (5) business days after the grievance is
presented.
	 
	 	 
	STEP 2:

	 	If the grievance is not settled at Step 1 and the Employee or the
Union wish to file a written grievance to Step 2 of the grievance
procedure, it shall be submitted in writing to the Employee’s
department head. Such an appeal must be submitted in writing to
the Employee’s department head within five (5) business days after
receipt of the Company’s answer in Step 1, or within five (5)
business days of the time when such answer would have been due.
The grievance shall state the provision or provisions of this
Agreement, which are alleged to have been violated, the relief
requested, and the basis upon which the grievant believes the
grievance was improperly denied at the previous step in the
grievance procedure. The department head shall investigate the
grievance and, in the course of such investigation, may offer to
discuss the grievance within five (5) days with the grievant and
an authorized Union representative at a time mutually agreeable to
the parties. If no settlement of the grievance is reached, the
department head shall provide a written answer to the grievant and
to the Union within ten (10) business days following receipt of
the Step 2 grievance.
	 
	 	 
	STEP 3:

	 	If the grievance is not settled at Step 2 and the Union wishes to
appeal the grievance to Step 3 of the grievance procedure, it
shall be submitted in writing (signed by both) to the executive
committee’s representative within five (5) business days after
receipt of the Company’s answer in Step 2, or within five (5)
business days of the time that such answer would have been due.
The grievance

 - 14 - 

 

	 	 	 
	 

	 	shall specifically state the basis upon which the grievant believes the
grievance was improperly denied at the previous step in the grievance
procedure. An appropriate representative of the executive committee shall
investigate the grievance and, in the course of such investigation, shall offer
to discuss the grievance within five (5) days with the grievant and an
authorized Union representative at a time mutually agreeable to the parties.
If no settlement of the grievance is reached, the executive committee’s
representative shall provide a written answer to the grievant and the Union
within ten (10) business days following receipt of the Step 3 grievance.
	 
	 	 
	STEP 4:

	 	If the grievance is not settled at Step 3 and the
Union desires to appeal, the Union may refer the
grievance to arbitration, as described below, within
ten (10) business days of receipt of the Company’s
written answer as provided to the Union at Step 3:

	 	(a)	 	The parties shall attempt to agree upon an arbitrator within
five (5) business days after receipt of the notice of referral. In the event
the parties are unable to agree upon the arbitrator within said five (5)
business day period, the parties shall jointly request the Federal Mediation
and Conciliation Service to submit a panel of five (5) arbitrators. Each party
retains the right to reject one (1) panel in its entirety and request that a
new panel be submitted. Both the Union and the Company shall have the right to
alternately strike names from the panel, with the party requesting arbitration
striking the first name. The person remaining shall be the arbitrator.
	 
	 	(b)	 	The arbitrator shall be notified of his/her selection and shall
be requested to set a time and place for the hearing, subject to the
availability of Union and Company representatives.
	 
	 	(c)	 	The Company and the Union shall have the right to request the
arbitrator to require the presence of witnesses or documents. The Company and
the Union retain the right to employ legal counsel.
	 
	 	(d)	 	The arbitrator shall submit his/her decision in writing within
thirty (30) calendar days following the close of the hearing or the submission
of briefs by the parties, which ever is later. This decision shall be final
and binding on the Company, the grievant, the Employees covered by this
Agreement, and the Union.
	 
	 	(e)	 	More than one grievance may be submitted to the same arbitrator
if both parties mutually agree in writing.
	 
	 	(f)	 	The fees and expenses of the arbitrator and the cost of a
written transcript, if any, shall be divided equally between the Company and
the Union; provided, however, that each party shall be responsible for
compensating its own representative and witnesses.

 - 15 - 

 

	 	(g)	 	The arbitrator shall have no power to add to, subtract from,
amend, change or alter any of the terms of this Agreement.
	 
	 	(h)	 	Any Employee covered by this Agreement who is discharged by the
Employer and who disputes that his/her discharge was for just cause shall have
an affirmative duty to mitigate any potential damages which might result to the
Employer, in the event the discharge involved is subject to Grievance and
Arbitration, and an arbitrator overrules the discharge. In any dispute over
the amount of back pay due to an Employee under an arbitration award, the
arbitrator shall have no authority to award any back pay to that Employee
unless that Employee or the Union has affirmatively proven by a preponderance
of the evidence that the Employee has fulfilled his/her duty to mitigate
damages at all times since his/her discharge.

Article 26 — Bulletin Boards

26.01 Bulletin Boards. The Employer shall make a bulletin board available to the Union in
the clock house, where the Union may post notices of Union elections and results, meetings and
recreational and social affairs.

Article 27 — Individual Agreements

27.01 Individual Agreements. No Employee covered by this Agreement shall be compelled or
permitted to enter into any individual contract or agreement with the Employer concerning the
conditions of employment set forth herein.

Article 28 — Savings Clause

28.01 Savings Clause. In the event that any provision of this Agreement shall be rendered
invalid by applicable legislation or be declared invalid by any court or regulatory agency of
competent jurisdiction, such action shall not invalidate the entire Agreement, it being the express
intention of the parties hereto that all other provisions not rendered invalid shall remain in full
force and effect. Both parties agree that the subject matter of any provision found to be invalid
shall be renegotiated.

Article 29 — Expiration

29.01 Expiration. This Agreement shall expire on                     . A party desiring to
renegotiate a subsequent Agreement shall provide the other party with written notice to that effect
at least 60 days prior to the expiration of this Agreement.

Article 30 — Complete Agreement

30.01 Complete Agreement. The parties to this Agreement, Coffeyville Resources Refining &
Marketing, LLC. and the International Union of Operating Engineers, Local 123, the International
Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers, and helpers, Local No. 83,
the United Association of Journeyman Plumbers and Steamfitters of the United States and Canada,
Local No. 441, the International Brotherhood of Electrical Workers, Local

 - 16 - 

 

No. 226, the International Association of Machinists, Local No. 693, and the International
Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers, Local No. 823, agree that this
Collective Bargaining Agreement contains the parties’ complete and accurate agreement.

30.02 Implementation. The Employer shall implement all provisions of this Agreement within
ten days of its complete execution.

30.03 Modification. This Agreement may be modified only upon the written agreement of the
Employer and the Union.

	 	 	 
	 

	 	 
	Coffeyville
Resources Refining
and Marketing, LLC

	 	International Union of Operating Engineers,
Local 123
	 
	 	 
	 

	 	 
	 

	 	International Brotherhood of Boilermakers, Iron
Shipbuilders, Blacksmiths, Forgers and helpers,
Local 83
	 
	 	 
	 

	 	 
	 

	 	United Association of Journeyman Plumbers and
Steamfitters of the United States and Canada,
Local No. 441
	 
	 	 
	 

	 	 
	 

	 	International Brotherhood of Electrical
Workers, Local No. 226
	 
	 	 
	 

	 	 
	 

	 	International Association of Machinists, Local
No. 693
	 
	 	 
	 

	 	 
	 

	 	International Brotherhood of Teamsters, Local
No. 823
	 
	 	 
	 

	 	 
	 

	 	President, Coffeyville Metal Trades Council

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

Effective upon the closing date of the sale of the Coffeyville Refinery from Farmland Industries to
Coffeyville Resources Refining and Marketing, LLC.

 - 17 - 

 

EXHIBIT 1

JOB CLASSIFICATIONS AND WAGE RATES

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Wage Rate Increases
	Operations Department	 	Current Wage Rates	 	Years 3 & 4 & 5
	Crude Unit:
	 	 	 	 	 	 
	Operator Mechanic I
	 	 	+.75	 	 	If qualified 2.5% to base rate
	Operator Mechanic II
	 	 	+.50	 	 	If qualified 2.5% to base rate
	Top Operator
	 	 	23.78	 	 	2.0%
	Board Operator
	 	 	23.22	 	 	2.0%
	Outside Operator
	 	 	22.45	 	 	2.0%
	Worker
	 	 	20.78	 	 	2.0%
	 
	 	 	 	 	 	 
	Cat/Alky Unit:
	 	 	 	 	 	 
	Operator Mechanic I
	 	 	+.75	 	 	If qualified 2.5% to base rate
	Operator Mechanic II
	 	 	+.50	 	 	If qualified 2.5% to base rate
	Top Operator
	 	 	23.78	 	 	2%
	Board Operator
	 	 	23.22	 	 	2%
	Outside Operator
	 	 	22.45	 	 	2%
	Worker
	 	 	20.78	 	 	2%
	 
	 	 	 	 	 	 
	Coker/Vacuum Unit
	 	 	 	 	 	 
	Operator Mechanic I
	 	 	+.75	 	 	If qualified 2.5% to base rate
	Operator Mechanic II
	 	 	+.50	 	 	If qualified 2.5% to base rate
	Top Operator
	 	 	23.78	 	 	2%
	Board Operator
	 	 	23.22	 	 	2%
	Outside Operator
	 	 	22.45	 	 	2%
	Worker
	 	 	20.78	 	 	2%
	 
	 	 	 	 	 	 
	Laboratory
	 	 	 	 	 	 
	Operator Mechanic I
	 	 	+.75	 	 	If qualified 2.5% to base rate
	Operator Mechanic II
	 	 	+.50	 	 	If qualified 2.5% to base rate
	Top Operator (E.O.)
	 	 	22.20	 	 	2%
	Tester
	 	 	21.64	 	 	2%

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Wage Rate Increases
	Operations Department	 	Current Wage Rates	 	Years 3 & 4 & 5
	Lab Worker
	 	 	19.93	 	 	2%
	OTS/TLD Department:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Operator Mechanic I
	 	 	+.75	 	 	If qualified 2.5% to base rate
	Operator Mechanic II
	 	 	+.50	 	 	If qualified 2.5% to base rate
	Top Operator
	 	 	22.76	 	 	2%
	Biller/Pumper
	 	 	21.59	 	 	2%
	Loader/Worker
	 	 	20.78	 	 	 
	Workers
	 	 	 	 	 	 
	Entry Level Worker
	 	 	15.00	 	 	 
	 
	 	 	 	 	 	 
	Maintenance
	 	 	 	 	 	 
	Master Mechanic I
	 	 	+.75	 	 	If qualified 2.5% to base rate
	Master Mechanic II
	 	 	+.50	 	 	If qualified 2.5% to base rate
	Boilermaker
	 	 	22.91	 	 	2%
	Pipefitter
	 	 	22.91	 	 	2%
	Machinist
	 	 	22.91	 	 	2%
	Electrician
	 	 	22.91	 	 	2%
	Carpenters
	 	 	22.91	 	 	2%
	Instrumentation
	 	 	22.91	 	 	2%
	Heavy Equipment Operator
	 	 	23.22	 	 	2%
	Truck Driver
	 	 	22.55	 	 	2%
	Operations Support Lead
	 	 	24.20	 	 	2%
	 
	 	 	 	 	 	 
	Yard:
	 	 	 	 	 	 
	Laborer I
	 	 	16.00	 	 	2.5%
	Laborer II
	 	 	14.00	 	 	2%
	Entry Laborer
	 	 	12.00	 	 	 

 

 

EXHIBIT 2

TESTING PROCEDURES

A. OPERATOR TRAINING PROGRESSION

Worker

Outside Operator

Board Operator

Top Operator

	 	1.	 	All Operating Unit Employees must attain Board Operator certification. An
Employee must reach this level within 2 years following the availability of the
appropriate tests. Each Unit will determine the method of progression through Helper
to Board Operator with the Superintendent’s approval.
	 
	 	2.	 	Reasonable training time will be provided for jobs that Employees are not
familiar. Job Documentation Coordinators, Unit Supervisors, and Unit Superintendents
will develop and update these procedures, training material, content requirements, and
testing with the appropriate input from Top Operators in each unit.
	 
	 	3.	 	Testing will be written knowledge and “hands on” skills testing utilizing the
current testing program with appropriate changes.
	 
	 	4.	 	The maximum time allowed for Top Operator certification is six (6) months
following Board certification. This applies to those employees who are selected for
these positions.
	 
	 	5.	 	Unit Progression Test/Fail Rules

	 	a.	 	Failure to pass test the first time, employee will receive up
to six (6) weeks on the job training. If needed, training assistance with area
JDC or other competent personnel will be made available.
	 
	 	b.	 	Failure to pass test the second time, employee will be subject
to discharge.
	 
	 	c.	 	Re-certification will be required every two (2) years and will
be subject to the same test/fail rules. A minimum of four-(4) weeks-prior
notification will be given to the employee before the re-certification
deadline. Recertification must be achieved prior to the deadline.

	 	6.	 	Initial Board Testing Employee Advancement from field job to board job will
receive up to six (6) weeks out of the schedule training before testing. Training
period will be scheduled at Foreman’s discretion.

	 	a.	 	If an employee fails board test, he/she will receive up to six
(6) more weeks out of schedule training. Test will be given again. If
employee fails test second time, he/she will be subject to discharge.

	 	7.	 	Top Operator and Board Position Evaluation

	 	a.	 	Top Operator and Board Position Employees will be evaluated
annually to insure they continue to meet the performance standards of their
position. Employees who are disqualified by the Area Superintendent will
receive outside Operator pay for a maximum of 1 year at which time they must
certify at Board Operator.

 

 

	 	b.	 	Top Operator and Board employees will be selected by the Area
Superintendent. Outside Operators will be selected for Top Operator and Board
positions. Once they become qualified they will receive the appropriate pay
rate. In accepting this pay rate these employees, if selected to become Board
or Top Operators, will be required to perform these jobs. Failure to accept
either of these jobs after becoming qualified will subject the Employee to
discharge.

NOTE: Turnaround or serious long-term disability will not impact an Employee’s
certification schedule.

B. MAINTENANCE TRAINING PROGRESSION

Journeyman

Master Mechanic II

Master Mechanic I

	 	1.	 	Current Journeymen hired will be placed into their craft pay rate. Employees
must certify within 3 months of development of new certification tests. These tests
will be approved by the Maintenance Superintendent. If an Employee does not pass a
certification test their pay will drop to a Yard rate until the Employee passes
certification test. Maximum time schedule will be 3 months to pass this test.
	 
	 	2.	 	Recertification will be required every 2 years..
	 
	 	3.	 	Failure to pass a Journeyman certification test after training will be subject to
discharge.
	 
	 	4.	 	Master Mechanic will consist of certification training and/or appropriate
testing and will entail specified skill levels in addition to the primary Craft job.

			
	NOTE:	 	Turnaround or serious long-term disability will not impact an Employee’s certification
schedule

 

 

EXHIBIT 3

MEDICAL AND DENTAL INSURANCE

Employees will be offered the opportunity to enroll in, and participate in the Employer’s medical
and dental insurance plan.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Coffeyville Facility
	 	 	 	 	 	 	 	 	 	 	 	 
	Benefit Rates for 2004
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Medical ( 20% Employee/80% Employer )	 	Distribution of Premium
	BCBS — Kansas

	 	Employee
	 	Employer
	 	TOTAL

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Option 1. $200/$600 deductible
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Employee Only

	 	$	58.45	 	 	$	233.78	 	 	$	292.23	 
	Employee/Child

	 	$	111.55	 	 	$	446.19	 	 	$	557.74	 
	Employee/Spouse

	 	$	125.92	 	 	$	503.68	 	 	$	629.60	 
	Family

	 	$	178.00	 	 	$	712.00	 	 	$	890.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Option 2. $500/$1000 deductible
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Employee Only

	 	$	53.09	 	 	$	212.34	 	 	$	265.43	 
	Employee/Child

	 	$	102.29	 	 	$	409.17	 	 	$	511.46	 
	Employee/Spouse

	 	$	113.96	 	 	$	455.82	 	 	$	569.78	 
	Family

	 	$	163.17	 	 	$	652.66	 	 	$	815.83	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Dental — ( 20% Employee / 80% Employer )
	 	 	 	 	 	 	 	 	 	 	 	 
	Delta Dental of Kansas
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Employee Only

	 	$	4.44	 	 	$	17.77	 	 	$	22.21	 
	Employee/Child

	 	$	8.53	 	 	$	34.10	 	 	$	42.63	 
	Employee/Spouse

	 	$	8.80	 	 	$	35.19	 	 	$	43.99	 
	Family

	 	$	14.57	 	 	$	58.30	 	 	$	72.87	 

Rates
subject to final adjustment by BC/BS of Kansas if closing occurs after December 1, 2003.

Increases to medical and dental insurance rates in years 2 through 5 of the contract shall be split
in the following manner: 70% of increase to be assumed by Employer, 30% of increase to be assumed
by employees.

 

 

EXHIBIT 4

401(k) PLAN

Employees will be eligible and offered the opportunity to participate in the Employer’s 401(k)
Plan. The Employer shall match $0.50 for every dollar contributed by each employee up to a maximum
of 6% of each employee’s annual salary. The Employer’s contribution will vest in equal amounts
over a three year period, e.g., 33.3% each year until fully vested. The Employer’s contribution
shall fully vest automatically upon the retirement of any Employee during the first three years of
the contract.

 

 

SIDE LETTER

The probationary period set forth in Article 7.02 shall be 90 days for employees hired directly
from Farmland upon the purchase of the refinery and a just cause discipline standard shall apply
and any discipline imposed during that time shall be subject to the grievance procedure. For all
hires after the initial purchase, the 180-day probationary period shall apply.

On the condition that the bargaining unit members vote in favor of the Agreement upon one vote and
by October 23, 2003, the Company will pay a one time lump sum payment of $1,500.00 to those former
Farmland bargaining unit employees who are not hired. Employees hired by the Company but then
dismissed during their initial 90 day probationary period shall also be entitled to receive this
$1,500 payment.

Upon date of hire of Farmland Employees Coffeyville Resources Refining & Marketing, LLC will allow
each employee to borrow up to five days of vacation time during the first six months of 2004. Each
borrowed vacation day will be paid back as vacation time is accrued by the employee.

Upon date of hire with Coffeyville Resources Refining & Marketing, LLC, former Farmland employees
will begin accruing sick leave and be eligible to use any such sick leave as it is accrued.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]