Document:

exv10w2

EXHIBIT 10.2

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into effective as of the
10th day of May, 2011 (“Effective Date”), by and between Brightpoint, Inc. (“Company”)
and Vincent Donargo (“Executive”).

     WHEREAS, the Executive is currently employed by the Company as its Senior Vice President,
Chief Accounting Officer and Controller and has performed valuable services for the Company; and

     WHEREAS, the Company has offered to appoint the Executive to the position of Executive Vice
President, Chief Financial Officer and Treasurer and it desires to enter into this Agreement with
him in order to set forth the terms and conditions of his employment in such position; and

     WHEREAS, the Executive accepts the appointment to the aforesaid position subject to the terms
and conditions set forth in this Agreement; and

     WHEREAS, the parties acknowledge that the Executive shall be formally designated as Executive
Vice President, Chief Financial Officer and Treasurer effective as of May 10, 2011 or effective as
of such other date as mutually agreed by the parties (“Effective Date”) and he shall commence his
duties and responsibilities in that position on the Effective Date subject to the terms and
conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth, and intending to be legally bound hereby, the Company and the Executive hereby agree as
follows:

1. Term.

     The term of this Agreement (“Term”) shall be for three (3) years from the Effective Date.
Such period is referred to herein as the “Initial Term”. For purposes of this Agreement,
“Employment Year” means the twelve (12) month period that commences on the Effective Date or the
anniversary thereof. After the Initial Term, this Agreement shall be renewed automatically for
successive twelve (12) month periods (each such period is referred to herein as a “Renewal Term”).
Either party may terminate this Agreement at the end of the Initial Term or any Renewal Term on the
condition that it provides written notice of non-renewal to the other party at least ninety (90)
days prior to the expiration of the Initial Term or any Renewal Term.

2. Executive’s Duties.

     2.1 During the Term, the Executive shall have the title of Executive Vice President, Chief
Financial Officer and Treasurer, and he shall have the duties and responsibilities as set forth in
Exhibit A, attached hereto and incorporated herein. The Executive shall report directly to
the Chief Executive Officer of the Company (or his designee) and the Board of Directors of the
Company (“Board”).

 

 

     2.2 The Executive shall devote substantially all of his business time, attention, knowledge,
and skills faithfully, diligently, and to the best of his abilities, in furtherance of the business
and activities of the Company. The principal place of performance by the Executive of his duties
hereunder shall be the Company’s principal executive offices, although the Executive may be
required to travel outside of the area where the Company’s principal executive offices are located
in connection with the business of the Company. Notwithstanding the foregoing, nothing in this
Agreement shall preclude the Executive from devoting reasonable periods of time required of him to
serve as a director of any organization or corporation involving no conflict of interest with the
interests of the Company and with the written consent of the Company, which consent shall not be
unreasonably withheld, on the condition that such activities do not materially interfere with the
due performance of his duties and responsibilities under this Agreement as determined by the Chief
Executive Officer of the Company.

3. Compensation.

     3.1 During the term of this Agreement, the Company shall pay the Executive a salary (“Salary”)
at an initial rate of Four Hundred Seventeen Thousand Five Hundred Dollars ($417,500) per annum in
respect to each Employment Year, prorated for any partial Employment Year. The Salary shall be
payable in equal monthly installments on the first day of each month, or at such other times as may
mutually be agreed upon between the Company and the Executive. The Salary may be increased from
time to time at the discretion of the Board or its Compensation and Human Resources Committee
(“Compensation Committee”). All payments described herein shall be subject to all required tax and
other withholdings.

     3.2 In addition to the foregoing, the Executive shall be entitled to such other cash bonuses
and such other compensation in the form of stock, stock options or other property or rights as may
from time to time be awarded to him by the Board or the Compensation Committee during or in respect
of his employment hereunder.

     3.3 Beginning with the Company’s calendar year commencing January 1, 2011, the Executive shall
be eligible for an annual cash bonus on the terms and conditions set forth in the Company’s Annual
Executive Cash Bonus Program, which may be modified or amended from time to time by the
Compensation Committee, at an initial target amount of 50% of the Executive’s Salary. In addition,
the Executive shall participate in the Company’s annual incentive-based Executive Equity Program,
which may be modified or amended from time to time, at an initial participation rate of 100% of the
Executive’s Salary. The decision as to whether the Executive shall receive any or all of the
potential bonus or earn the equity grant under the above-described program shall be determined by
the Compensation Committee in its sole discretion, based on factors it deems appropriate which may
include, but not be limited to, its determination as to whether specific goals were achieved.

     3.4 Executive will receive a grant of 75,000 Restricted Stock Units (“RSUs”), half of which
(37,500) will vest on the second anniversary of the date of the grant and half of which (37,500)
will vest on the fourth anniversary of the date of the grant.

 

 

4. Benefits.

     4.1 During the term of this Agreement, the Executive shall have the right to receive or
participate in all existing and future benefits and plans which the Company may from time to time
institute during such period for its executive officers (“Executive Officers”) and for which the
Executive is eligible in accordance with the terms and conditions of such benefits and plans.
Nothing paid to the Executive under any plan or arrangement presently in effect or made available
in the future shall be deemed to be in lieu of the Salary or any other obligation payable to the
Executive pursuant to this Agreement.

     4.2 During the term of this Agreement, the Executive will be entitled to the number of paid
holidays, personal days off, paid vacation days and sick leave days in each calendar year as are
determined by the Company from time to time, and consistent with its human resources policies.
Such paid vacation may be taken in the Executive’s discretion with the prior approval of the
Company, and at such time or times as are not inconsistent with the reasonable business needs of
the Company.

5. Travel Expenses. All travel and other expenses incident to the rendering of services
reasonably incurred on behalf of the Company by the Executive during the term of this Agreement
shall be paid by the Company provided that such expenses are incurred and that reimbursement is
sought by the Executive in accordance with the Company’s policies. If any such expenses are paid
in the first instance by the Executive, the Company shall reimburse him therefor on presentation of
appropriate receipts for any such expenses.

6. Termination. Executive’s employment under this Agreement may be terminated by the
Company or the Executive without any breach of this Agreement only on the following circumstances:

     6.1 Death. The Executive’s employment under this Agreement shall terminate upon his
death.

     6.2 Disability. If, as a result of the Executive’s incapacity due to physical or
mental illness, the Executive shall have been absent from his duties under this Agreement for 90
consecutive calendar days, the Company may terminate the Executive’s employment with written notice
under this Agreement, subject to, in accordance with and consistent with applicable law.

     6.3 Cause. The Company may terminate the Executive’s employment under this Agreement
for Cause. For purposes of this Agreement, “Cause” shall mean: (i) the commission of an act or acts
of dishonesty, fraud or breach of trust by the Executive relating to his material duties or
employment with the Company or breach of fiduciary duty owed to the Company or any of its
affiliates; (ii) the Executive’s criminal conduct, willful misconduct, act of moral turpitude, or
gross negligence that is injurious to the Company, either financially or in reputation; (iii) the
Executive’s conviction of, or plea of guilty or nolo contendere to, a felony; (iv) failure of the
Executive to substantially perform his material duties and responsibilities hereunder or to satisfy
his obligations as an officer or executive of the Company, which failure has not begun to be cured
by Executive within seven (7) days after written notice thereof to the Executive from

 

 

the Company (and which is not cured within thirty (30) days after written notice thereof to
the Executive from the Company); (v) material breach of any term or condition of this Agreement by
the Executive, which breach has not begun to be cured by Executive within seven (7) days after
written notice thereof to the Executive from the Company (and which is not cured within thirty (30)
days after written notice thereof to the Executive from the Company); or (vi) the Executive’s
unlawful use (including being under the influence) or possession of controlled substances on the
Company’s premises or while performing the Executive’s duties and responsibilities under this
Agreement unless prescribed by a physician.

     6.4 Termination by the Employee for Good Reason Upon a Change of Control. The Employee
may terminate his employment under this Agreement for Good Reason (as hereinafter defined) at any
time within twelve months after a Change of Control.

          (a) For purposes of this Agreement, “Good Reason” shall mean (i) any material reduction or
limitation of the powers of the Employee in any respect not contemplated by, this Agreement, (ii)
failure of the Employer to obtain the assumption of the agreement to perform this Agreement by any
successor as contemplated in Section 9.8 of this Agreement, (iii) any material change in the
geographic location in which the Employee is required to work or (iv) any other action or inaction
that constitutes a material breach by the Employer under this Agreement. With respect to the
matters set forth in this paragraph, the Employee must give the Employer 30 days prior written
notice of his intent to terminate this Agreement as a result of any breach or alleged breach of the
applicable provision and the Employer shall have the right to cure any such breach or alleged
breach within such 30 day period.

b. For purposes of this Agreement, a “Change of Control” shall be deemed to occur, unless
previously consented to in writing by the Executive, upon: (i) individuals who, as of the
date hereof are members of the Board (the “Incumbent Board”) ceasing for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company’s shareholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs in connection with a Combination, as
defined below, or as a result of either an actual or threatened election contest (as such
terms are used in Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the Board; (ii) the acquisition
of beneficial ownership (as determined pursuant to Rule 13d-3 promulgated under the Exchange
Act) of 15% or more of the voting securities of the Company by any person, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) not affiliated with
the Executive or the Company; provided, however, that no Change of Control
shall be deemed to have occurred for purposes of this Agreement if such person, entity or
group acquires beneficial ownership of 15% or more of the voting securities of the Company
(A) as a result of a combination of the Company or a wholly-owned subsidiary of the Company
with such person, entity or group or another entity owned or controlled by such person,
entity or group (whether effected by a merger, consolidation, sale of assets or exchange of
stock or otherwise) (a

 

 

“Combination”) and (B) (x) Executive Officers of the Company (as designated by the Board for
purposes of Section 16 of the Exchange Act) immediately prior to the Combination constitute
not less than 50% of the Executive Officers of the Company for a period of not less than six
(6) months after the Combination (for purposes of calculating the Executive Officers of the
Company after the Combination, those Executive Officers who are terminated by the Company
for Cause or who terminate their employment without Good Reason shall be excluded from the
calculation entirely), and (y) the members of the Incumbent Board immediately prior to the
Combination constitute not less than 50% of the membership of the Board after the
Combination, and (z) after the Combination, more than 35% of the voting securities of the
Company is then beneficially owned, directly or indirectly, by all or substantially all of
the individuals and entities who were the beneficial owners of the outstanding voting
securities of the Company immediately prior to the Combination, it being understood that
while the existence of a Change in Control pursuant to this Section 6.4(b) may not be
ascertainable for six (6) months after the Combination, if it is ultimately determined that
such Combination constituted a Change in Control, the date of the Change of Control shall be
the effective date of the Combination; (iii) the commencement of a proxy contest against the
management for the election of a majority of the Board of the Company if the group
conducting the proxy contest owns, has or gains the power to vote at least fifteen (15%) of
the voting securities of the Company; (iv) the consummation of a reorganization, merger or
consolidation, or the sale, transfer or conveyance of all or substantially all of the assets
of the Company to any person or entity not affiliated with the Executive or the Company
unless, following such reorganization, merger, consolidation, sale, transfer or conveyance,
the conditions set forth in clause (ii)(B) above are present; or (v) the complete
liquidation or dissolution of the Company.

6.5 Termination without Cause. The Company may terminate the Executive’s employment
under this Agreement without Cause.

6.6 Termination without Good Reason. In addition to the Executive’s right to
terminate the Executive’s employment for Good Reason Upon a Change of Control, he may
terminate his employment under this Agreement without Good Reason.

7. Notice of Termination. Any termination of the Executive’s employment by the Company or
by the Executive (other than termination by reason of the Executive’s death) shall be communicated
by a written Notice of Termination to the other party of this Agreement and signed by or on behalf
of a duly authorized representative of the party issuing such notice. For purposes of this
Agreement, a “Notice of Termination” shall mean a notice that shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated; provided, however, that the failure to indicate
any specific termination provision in such notice shall not constitute a waiver of such provision.

8. Date of Termination. The “Date of Termination” shall mean: (a) if the Executive’s
employment is terminated by reason of his death, the date of his death; (b) if the Executive’s
employment is terminated pursuant to Section 6.2 above, the date on which the Notice of Termination
is given subject to, in accordance with and consistent with applicable law; (c) if the

 

 

Executive’s employment is terminated pursuant to Section 6.3 above, the date specified on the
Notice of Termination after the expiration of any cure periods; or (d) if the Executive’s
employment is terminated for any other reason, the date on which the terminating party provides the
other party with a Notice of Termination after the expiration of any applicable cure periods.

9. Compensation Upon Termination.

     9.1 Death. If the Executive’s employment shall be terminated by reason of his death,
the Company shall promptly pay to such person as he shall designate in writing filed with the
Company, or if no such person shall be designated, to his estate as a lump sum benefit, his full
Salary to the date of his death in addition to any payments the Executive’s spouse, beneficiaries
or estate may be entitled to receive pursuant to any pension or Executive benefit plan or life
insurance policy or similar plan or policy then maintained by the Company, and such payments
shall, assuming the Company is in compliance with the provisions of this Agreement, fully discharge
the Company’s obligations with respect to this Agreement, other than in regard to the Company’s
obligation to indemnify the Executive pursuant to Section 11 (Indemnification) or any
similar indemnification obligation provided in any separate agreement between the parties, if any,
at law or in the Company’s Articles of Incorporation or Bylaws, which shall apply with respect to
any matters attributable to his employment by the Company, without regard to when asserted (all of
the foregoing indemnification obligations of the Company are collectively referred to hereinafter
as “the Company’s Indemnification Obligation.”)

     9.2 Disability. During any period that the Executive fails to perform his duties
hereunder as a result of incapacity due to physical or mental illness, the Executive shall continue
to receive his Salary until the Executive’s employment is terminated pursuant to Section 6.2
(Disability) of this Agreement and the Company shall have no further obligations with
respect to Section 3 of this Agreement, and, assuming the Company is in compliance with the
provisions of this Agreement, this shall fully discharge the Company’s obligations to the Executive
with respect to this Agreement, other than in regard to the Company’s Indemnification Obligation.

     9.3 Termination by Company for Cause or by Executive without Good Reason. If the
Executive’s employment shall be terminated by the Company pursuant to Section 6.3 (Cause)
or if he terminates his employment pursuant to Section 6.6 (Termination without Good
Reason), the Company shall pay the Executive his full Salary through the Date of Termination,
at the rate in effect at the time Notice of Termination is given, and assuming the Company is in
compliance with the provisions of this Agreement, this shall fully discharge the Company’s
obligations to the Executive with respect to this Agreement, other than in regard to the Company’s
Indemnification Obligation.

     9.4 Termination by Company without Cause. If the Company terminates the Executive’s
employment without Cause pursuant to Section 6.5 (Termination without Cause) then: (a) the
Company shall pay to the Executive his full Salary through the Date of Termination at the rate in
effect at the time Notice of Termination is given and the unpaid bonus, if any, earned through the
Date of Termination; (b) for periods subsequent to the Date of Termination (in lieu of any further
payments pursuant to Section 3 of this Agreement), Non-Cause Severance Pay (as hereinafter
defined), payable on the tenth day following the Date of Termination; and (c) if after November 15,
2012, the Executive shall be entitled to immediate vesting of RSUs in

 

 

accordance with Section 9.9 (Immediate Vesting). As used herein, “Non-Cause Severance
Pay” shall mean the lesser of: (x) an amount equivalent to the Cash Compensation, defined as Salary
and the bonus opportunity consisting of those additional cash compensation opportunities described
in Sections 3.2 and 3.3 that would be paid to Executive during the remaining Term of this Agreement
(such amount will not be, in the aggregate, less than an amount equivalent to one (1) year of the
Executive’s Salary and bonus opportunity in effect on the Date of Termination); or (y) One Million
Dollars ($1,000,000). Assuming the Company is in compliance with the provisions of this Agreement,
the making of these payments and vesting of options and RSUs shall be in lieu of any further
obligations to the Executive, and shall fully discharge the Company’s obligations to the Executive
with respect to this Agreement, other than in regard to the Company’s Indemnification Obligation.

     9.5 Termination by Executive for Good Reason Upon a Change of Control. If the
Executive shall terminate his employment pursuant to Section 6.4 (Termination by the Executive
for Good Reason Upon a Change of Control), then the Company shall make the same payment and in
the same manner as described in Section 9.4 above. Assuming the Company is in compliance with the
provisions of this Agreement, the making of the payments and vesting of options and RSUs, as
provided in Section 9.4, shall be in lieu of any further obligations to the Executive, and shall
fully discharge the Company’s obligations to the Executive with respect to this Agreement, other
than in regard to the Company’s Indemnification Obligation.

     9.6 Severance Cap.

          (a) Notwithstanding Sections 9.4 or 9.5 above or Section 9.9 below, the total value to be
received by the Employee due to the Severance Pay pursuant to Sections 9.4 or 9.5 and the
accelerated vesting pursuant to Section 9.9 (the “Accelerated Vesting”) (such total value referred
to herein as the “Total Severance Value”) may not exceed $2.75 million (the “Severance Cap”).

          (b) For purposes of calculating the value of the Accelerated Vesting, (i) the value of the
accelerated vesting of an option on a share of stock shall equal the result of the Fair Market
Value (as defined in the Brightpoint, Inc. 2004 Long-Term Incentive Plan (the “Plan”)) for such
share of stock underlying the option on the date of the accelerated vesting less the strike price
for such option (if such result is a negative number, the result shall be deemed to be zero) and
(ii) the value of the accelerated vesting of a share of restricted stock shall equal the Fair
Market Value for such share of stock on the date the vesting accelerates. In addition, if the
Employee receives Accelerated Vesting upon a Change of Control, then, for purposes of calculating
the Total Severance Value, any Accelerated Vesting and Severance Pay the Employee receives within
the 12-month period following the Accelerated Vesting received upon the Change of Control shall
each be added to calculate the Total Severance Value (with the value of each Accelerated Vesting
and the Severance Pay to be at face value without adjustment for any time value of money). If
elected by the Employee, the determination of whether the Total Severance Value exceeds the
Severance Cap shall be made by a nationally recognized United States public accounting firm (the
“Accounting Firm”) jointly selected by the Employer and the Employee and paid by the Employer, with
such determination following the valuation guidance provided in this Section 9.6). If the Employee
and the Employer cannot agree on the firm to

 

 

serve as the Accounting Firm, then the Employee and the Employer shall each select one
accounting firm and those two firms shall jointly select the Accounting Firm.

          (c) If a reduction in the Total Severance Value is required, then the Employee shall choose to
either reduce the Severance Pay or to limit Accelerated Vesting, to the extent needed; provided,
however, that if the Total Severance Value is the sum of Accelerated Vesting received upon a Change
of Control and subsequent Accelerated Vesting and/or Severance Pay, the reduction chosen by the
Employee may not affect the Accelerated Vesting received upon the Change of Control.

     9.7 Separation and General Release Agreement. The Executive shall, as a condition to
receiving any amounts and immediate vesting under Sections 9.4, 9.5, 9.6, or 9.9, execute a
separation and general release agreement in a form reasonably satisfactory to the Company.
However, such general release agreement shall not release the Company from the payment or vesting
obligations with respect to Sections 9.4, 9.5, 9.6, or 9.9. hereunder, as applicable, nor shall the
Company be released from the Company Indemnification Obligation.

     9.8 Change of Control. The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company, by agreement in form and substance satisfactory to the
Executive, to expressly assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain such Agreement prior to the effectiveness of any such succession
shall be considered “Good Reason” pursuant to Section 6.4(a) of this Agreement. As used in this
Agreement, “Company” shall mean the Company and any successor to its business and/or assets which
executes the Agreement or which otherwise becomes bound by the terms and conditions of this
Agreement by operation of law.

     9.9 Immediate Vesting. In the event of (a) the Company’s termination of the Executive
without Cause pursuant to Section 6.5 after November 15, 2012 or (b) the Executive’s termination
for Good Reason pursuant to Section 6.4, then notwithstanding the vesting terms and conditions of
any RSU or restricted stock award agreement or plan relating to an annual stock option, RSU or
restricted stock award to the Executive, all then unvested: (i) shares; (ii) RSUs; and (iii) other
stock-based awards shall immediately vest in accordance with the applicable RSU, stock award, or
other plan; provided, however that for purposes of determining whether a change of
control has occurred with regard to such restricted stock, RSUs, or other stock-based awards, the
definition of “change of control” shall be the definition contained in the applicable executive
benefit plan or award agreement. For purposes of clarification, no immediate vesting shall occur
in the event of the Company’s termination of the Executive without Cause on or before November 15,
2012.

10. Confidentiality; Noncompetition.

     10.1 The Company and the Executive acknowledge that the services to be performed by the
Executive under this Agreement are unique and extraordinary and, as a result of such employment,
the Executive will be in possession of confidential information relating to the business practices
of the Company. The term “confidential information” shall mean any and all

 

 

information (verbal and written) relating to the Company or any of its affiliates, or any of
their respective activities, other than such information which can be shown by the Executive to be
in the public domain (such information not being deemed to be in the public domain merely because
it is embraced by more general information which is in the public domain) other than as the result
of the Executive’s breach of the provisions of this Section 10.1, including, but not limited to,
information relating to: trade secrets (as defined for purposes of Indiana law), personnel lists,
financial information, research projects, services used, pricing, customers, customer lists and
prospects, product sourcing, marketing and selling and servicing. The Executive agrees that he will
not, during and after the termination of his employment, directly or indirectly, use, communicate,
disclose or disseminate to any person, firm or corporation any confidential information regarding
the clients, customers or business practices of the Company acquired by the Executive during his
employment by Company, without the prior consent of the Company.

     10.2 The Executive hereby agrees that he shall not, during the period of his employment and
for a period of two (2) years following such employment, directly or indirectly, within any county
(or adjacent county) in any State within the United States or territory outside the United States
in which the Company is engaged in business during the period of the Executive’s employment or on
the date of termination of the Executive’s employment, engage, have an interest in or render any
services to any business (whether as owner, manager, operator, licensor, licensee, lender, partner,
stockholder, joint venturer, Executive, consultant or otherwise) competitive with the Company’s
principal business activities. Notwithstanding the foregoing, Executive shall be permitted to own
(as a passive investment) not more than five percent (5%) of any class of securities which is
publicly traded; provided, however that such five percent (5%) limitation shall
apply to the aggregate holdings of Executive and those of all other persons and entities with whom
Executive has agreed to act for the purpose of acquiring, holding, voting or disposing of such
securities.

     10.3 The Executive hereby agrees that he shall not, during the period of his employment and
for a period of two (2) years following such employment, directly or indirectly, take any action
which constitutes an interference with or a disruption of any of the Company’s business activities
including, without limitation, the solicitation of the Company’s customers, or persons listed on
the personnel lists of the Company. At no time during the term of this Agreement, or thereafter
shall the Executive directly or indirectly, disparage the commercial, business or financial
reputation of the Company.

     10.4 For purposes of clarification, but not of limitation, the Executive hereby acknowledges
and agrees that the provisions of Sections 10.2 and 10.3 above shall serve as a prohibition against
him, during the period referred to therein, directly or indirectly, hiring, offering to hire,
enticing, soliciting or in any other manner persuading or attempting to persuade any officer,
executive, agent, lessor, lessee, licensor, licensee or customer who has been previously contacted
by either a representative of the Company, including the Executive (but only those existing during
the time of the Executive’s employment by the Company, or at the termination of his employment), to
discontinue or alter his, her or its relationship with the Company.

 

 

     10.5 Upon the termination of the Executive’s employment for any reason whatsoever, all
documents, records, notebooks, equipment, price lists, specifications, programs, customer and
prospective customer lists and other materials which refer or relate to any aspect of the business
of the Company which are in the possession of the Executive, including all copies thereof, shall be
promptly returned to the Company.

     10.6 After the Executive’s employment terminates and for a period of one (1) year thereafter,
he shall provide such assistance as may be reasonably requested by the Company in order to assist
the Company in transitioning his duties and responsibilities to his successor or to others. This
assistance shall not require the Executive to expend more than four (4) hours per month.

     10.7 Inventions.

          (a) The Executive agrees that all processes, technologies and inventions (“Inventions”),
including new contributions, improvements, ideas and discoveries, whether patentable or not,
conceived, developed, invented or made by him during his employment by Company shall belong to the
Company, provided that such Inventions grew out of the Executive’s work with the Company, are
related in any manner to the business (commercial or experimental) of the Company or are conceived
or made on the Company’s time or with the use of the Company’s facilities or materials. The
Executive shall further: (i) promptly disclose such Inventions to the Company; (ii) assign to the
Company, without additional compensation, all patent and other rights to such Inventions for the
United States and foreign countries; (iii) sign all papers necessary to carry out the foregoing;
and (iv) give testimony in support of his inventorship;

          (b) If any Invention is described in a patent application or is disclosed to third parties,
directly or indirectly, by the Executive within two (2) years after the termination of his
employment with the Company, it is to be presumed that the Invention was conceived or made during
the period of the Executive’s employment by the Company, unless such Invention is entirely
unrelated to the Company’s business directly or indirectly; and

          (c) The Executive agrees that he will not assert any rights to any Invention as having been
made or acquired by him prior to the date of this Agreement, except for Inventions, if any,
disclosed to the Company in writing prior to the date hereof.

     10.8 The Company shall be the sole owner of all products and proceeds of the Executive’s
services hereunder, including, but not limited to, all materials, ideas, concepts, formats,
suggestions, developments, arrangements, packages, programs and other intellectual properties that
the Executive may acquire, obtain, develop or create in connection with and during the term of the
Executive’s employment hereunder, free and clear of any claims by the Executive (or anyone claiming
under the Executive) of any kind or character whatsoever (other than the Executive’s right to
receive payments hereunder). The Executive shall, at the request of the Company, execute such
assignments, certificates or other instruments as the Company may from time to time deem necessary
or desirable to evidence, establish, maintain, perfect, protect, enforce or defend its right, or
title and interest in or to any such properties.

 

 

     10.9 The parties hereto hereby acknowledge and agree that (i) the Company might be irreparably
injured in the event of a breach by the Executive of any of his obligations under this Section 10;
(ii) monetary damages might not be an adequate remedy for any such breach; and (iii) the Company
shall be entitled to seek injunctive relief, in addition to any other remedy which it may have, in
the event of any such breach.

     10.10 The parties hereto hereby acknowledge that, in addition to any other remedies the
Company may have under Section 10.9 hereof, the Company shall have the right and remedy to require
the Executive to account for and pay over to the Company all compensation, profits, monies,
accruals, increments or other benefits (collectively, “Benefits”) derived or received by the
Executive as the result of any transactions constituting a breach of any of the provisions of
Section 10.7 (Inventions), and the Executive hereby agrees to account for and pay over such
Benefits to the Company.

     10.11 Each of the rights and remedies enumerated in Sections 10.9 and 10.10 shall be
independent of the other, and shall be severally enforceable, and all of such rights and remedies
shall be in addition to, and not in lieu of, any other rights and remedies available to the Company
under law or in equity.

     10.12 If any provision contained in this Section 10 is hereafter construed to be invalid or
unenforceable, the same shall not affect the remainder of the covenant or covenants, which shall be
given full effect, without regard to the invalid portions.

     10.13 If any provision contained in this Section 10 is found to be unenforceable by reason of
the extent, duration or scope thereof, or otherwise, then the court making such determination shall
have the right to reduce such extent, duration, scope or other provision and in its reduced form
any such restriction shall thereafter be enforceable as contemplated hereby.

     10.14 It is the intent of the parties hereto that the covenants contained in this Section 10
shall be enforced to the fullest extent permissible under the laws and public policies of each
jurisdiction in which enforcement is sought (the Executive hereby acknowledging that such
restrictions are reasonably necessary for the protection of the Company). Accordingly, it is
hereby agreed that if any of the provisions of this Section 10 shall be adjudicated to be invalid
or unenforceable for any reason whatsoever, such provision shall be (only with respect to the
operation thereof in the particular jurisdiction in which such adjudication is made) construed by
limiting and reducing it so as to be enforceable to the extent permissible, without invalidating
the remaining provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

11. Indemnification. The Company shall indemnify, defend, and hold harmless the Executive
against any and all expenses reasonably incurred by him in connection with or arising out of: (a)
the defense of any action, suit or proceeding in which he is a party, or (b) any claim asserted or
threatened against him, in either case by reason of or relating to his being or having been an
employee, Executive, officer or director of the Company, whether or not he continues to be such an
employee, Executive, officer or director at the time of incurring such expenses, except insofar as
such indemnification is prohibited by law. Such expenses shall include, without limitation, the
reasonable fees and disbursements of attorneys, amounts of judgments, and

 

 

amounts of any settlements, provided that such settlements are agreed to in advance by the Company.

12. Compliance with Code Section 409A.

     12.1 It is intended that any amounts payable under this Employment Agreement and the Company’s
and the Executive’s exercise of authority or discretion hereunder shall comply with Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”), including the Treasury regulations and
other published guidance relating thereto, so as not to subject the Executive to the payment of any
interest or additional tax imposed under Code Section 409A. To the extent any amount payable to the
Executive from the Company, per this Employment Agreement or otherwise, would trigger the
additional tax imposed by Code Section 409A, the payment arrangements shall be modified to avoid
such additional tax. Notwithstanding any provision in the Employment Agreement to the contrary, as
needed to comply with Code Section 409A, payments due under this Agreement shall be subject to a
six (6) month delay such that amounts otherwise payable during the six (6) month period following
the Executive’s separation from service shall be accumulated and paid in a lump-sum catch-up
payment as of the first day of the seventh-month following separation from service, as defined
under Code Section 409A.

     12.2 The Company shall pay in full any Delayed Payment in accordance with Section 12.1 and
shall not deduct from or setoff against any Delayed Payment (i) any compensation earned by the
Executive as the result of employment by another Company or business or profits earned by the
Executive from any other source at any time before and after the Date of Termination, or (ii) any
other amounts actually owed or claimed by the Company to be owed by the Executive to the Company in
connection with any claim the Company has or makes against the Executive.

13. General. This Agreement is further governed by the following provisions:

     13.1 Notices. All notices relating to this Agreement shall be in writing and shall be
either personally delivered, sent by telecopy (receipt confirmed) or mailed by certified mail,
return receipt requested, to be delivered at such address as is indicated below, or at such other
address or to the attention of such other person as the recipient has specified by prior written
notice to the sending party. Notice shall be effective when so personally delivered, one (1)
business day after being sent by telecopy or five (5) days after being mailed.

			
	           To the Company:	 	Brightpoint, Inc.

7365 Interactive Way, Suite 200

Indianapolis, Indiana 46278

Attn: Chief Executive Officer
	 
			
	           To the Executive:	 	Vincent Donargo

12942 Treaty Line St

Carmel, IN 46032

     13.2 Parties in Interest. Executive may not delegate his duties or assign his rights
hereunder without the prior written consent of the Company. This Agreement shall inure to the

 

 

benefit of, and be binding upon, the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns.

     13.3 Entire Agreement. This Agreement supersedes any and all other agreements, either
oral or in writing, between the parties hereto with respect to the employment of the Executive by
the Company and contains all of the covenants and agreements between the parties with respect to
such employment in any manner whatsoever. Any modification of this Agreement will be effective only
if it is in writing and signed by the Executive and the Company’s Chief Executive Officer.

     13.4 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Indiana. Each party agrees to and hereby does submit to jurisdiction
before any state or Federal court of record in Marion County, Indiana.

     13.5 Warranty. Executive hereby warrants and represents that Executive has ideas,
information and know-how relating to the type of business conducted by Company, and to the
Executive’s knowledge, disclosure of such ideas, information and know-how to Company will not
conflict with or violate the rights of any third party.

     13.6 Noncontravention. Each party represents and warrants to the other party that the
execution of this Agreement, the appointments contemplated herein and the performance of the
obligations set forth herein will not constitute a breach of or conflict with any other written or
verbal contract, agreement or understanding to which he or it is subject or bound.

     13.7 Severability. In the event that any term or condition in this Agreement shall for
any reason be held by a court of competent jurisdiction to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other term or
condition of this Agreement, but this Agreement shall be construed as if such invalid or illegal or
unenforceable term or condition had never been contained herein.

     13.8 Execution in Counterparts. This Agreement may be executed by the parties in one
or more counterparts, each of which shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement, and shall become effective when one (1) or
more counterparts has been signed by each of the parties hereto and delivered to each of the other
parties hereto.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement effective as
of the Effective Date on the dates set forth below.

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Vincent Donargo
 	 
	 	Vincent Donargo 	 
	 	 	 
	 	Date: May 10, 2011 	 
	 
	 	Brightpoint, Inc.:

 	 
	 	By:  	/s/ Robert J. Laikin
 	 
	 	 	Robert J. Laikin, Chairman of the
Board and 

Chief Executive Officer	 
	 	 	 
	 	Date: May 10, 2011 	 
	 

 

 

Exhibit A

DUTIES AND RESPONSIBILITIES

For purposes of this Agreement, the Executive’s duties and responsibilities shall include, but are
not limited to, the following:

	 	1.	 	Management of corporate finance staff including Corporate Controller, Vice Presidents
of Finance, Internal Audit, Credit and the staff reporting thereto;
	 
	 	2.	 	Development and implementation of strategies relating to accounting and reporting,
capital structure, and corporate finance activities;
	 
	 	3.	 	Management of relationships with independent auditors, investment banks and commercial
banks;
	 
	 	4.	 	Management of external reporting, including SEC reporting and compliance;
	 
	 	5.	 	Maintenance and development of adequate and appropriate levels of capital;
	 
	 	6.	 	Participation in negotiation of material contracts, acquisitions and strategic
alliances;
	 
	 	7.	 	Participation in strategic planning;
	 
	 	8.	 	Participation in Executive Committee activities;
	 
	 	9.	 	Participation in investor relations and communications with analysts;
	 
	 	10.	 	Development and implementation of federal, state and foreign tax strategies; and
	 
	 	11.	 	Other duties consistent with the position of Executive Vice President, Chief Financial
Officer and Treasurer that may be assigned from time to time by the Chief Executive Officer
or the Board of Directors.exv10w1

Exhibit 10.1

THIRD AMENDED AND RESTATED 

EMPLOYMENT AGREEMENT

     THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of January 1, 2011 (the
“Employment Agreement”), by and between CVR ENERGY, INC., a Delaware corporation (the
“Company”), and JOHN J. LIPINSKI (the “Executive”).

     WHEREAS, the Company and the Executive entered into an amended and restated employment
agreement dated January 1, 2008 (the “First Amended and Restated Agreement”) and an amended
and restated employment agreement dated January 1, 2010 (the “Second Amended and Restated
Agreement”);

     WHEREAS, the Company and the Executive desire to further amend and restate the Second Amended
and Restated Agreement in its entirety as provided for herein;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valid
consideration the sufficiency of which is acknowledged, the parties hereto agree as follows:

     Section 1. Employment.

               1.1. Term. The Company agrees to employ the Executive, and the Executive agrees to be
employed by the Company, in each case pursuant to this Employment Agreement, for a period
commencing on January 1, 2011 (the “Commencement Date”) and ending on the earlier of (i)
the third (3rd) anniversary of the Commencement Date and (ii) the termination or resignation of the
Executive’s employment in accordance with Section 3 hereof (the “Term”), provided,
however, that at the end of each calendar month after the Commencement Date, the term of
this Employment Agreement shall be automatically extended for one month.

               1.2. Duties. During the Term, the Executive shall serve as President and Chief
Executive Officer of the Company and such other or additional positions as an officer or director
of the Company, and of such direct or indirect affiliates of the Company (“Affiliates”), as
the Executive and the board of directors of the Company (the “Board”) shall mutually agree
from time to time. In such positions, the Executive shall perform such duties, functions and
responsibilities during the Term commensurate with the Executive’s positions as reasonably directed
by the Board. The Executive shall be employed in the State of Texas during the Term.

               1.3. Exclusivity. During the Term, the Executive shall devote substantially all of
Executive’s working time to the business and affairs of the Company and its Affiliates, shall
faithfully serve the Company and its Affiliates, and shall in all material respects conform to and
comply with the lawful and reasonable directions and instructions given to Executive by the Board,
consistent with Section 1.2 hereof. During the Term, the Executive shall use Executive’s best
efforts during Executive’s working time to promote and serve the interests of the Company and its
Affiliates and shall not engage in any other business activity, whether or not such activity shall
be engaged in for pecuniary profit. The provisions of this Section 1.3 shall not be construed to
prevent Executive from (i) investing Executive’s personal,

 

 

private assets as a passive investor in
such form or manner as will not require any active services on the part of Executive in the
management or operation of the affairs of the companies, partnerships, or other business entities
in which any such passive investments are made; or (ii) serving on the board of directors for
Thumbs Up Enterprises Limited and its affiliated companies.

     Section 2. Compensation.

               2.1. Salary. As compensation for the performance of the Executive’s services
hereunder, during the Term, the Company shall pay to the Executive a salary at an annual rate of
$900,000 which annual salary shall be prorated for any partial year at the beginning or end of the
Term and shall accrue and be payable in accordance with the Company’s standard payroll policies, as
such salary may be adjusted upward by the Compensation Committee of the Board in its discretion (as
adjusted, the “Base Salary”).

               2.2. Annual Bonus. For each completed fiscal year occurring during the Term, the
Executive shall be eligible to receive an annual cash bonus (the “Annual Bonus”).
Commencing with fiscal year 2011, the target Annual Bonus shall be 250% of the Executive’s Base
Salary as in effect at the beginning of the Term in fiscal year 2011 and at the beginning of each
such fiscal year thereafter during the Term, the actual Annual Bonus to be based upon such
individual and/or Company performance criteria established for each such fiscal year by the
Compensation Committee of the Board. The Annual Bonus, if any, payable to Executive for a fiscal
year will be paid by the Company to the Executive on the last scheduled payroll payment date during
such fiscal year; provided, however, that if the Annual Bonus is payable pursuant
to a plan that is intended to provide for the payment of bonuses that constitute “performance-based
compensation” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended
(the “Code”), the Annual Bonus shall be paid at such time as is provided in the applicable
plan.

               2.3. Employee Benefits. During the Term, the Executive shall be eligible to
participate in such health, insurance, retirement, and other employee benefit plans and programs of
the Company as in effect from time to time on the same basis as other senior executives of the
Company.

               2.4. Paid Time Off. During the Term, the Executive shall be entitled to twenty-five
(25) days of paid time off (“PTO”) each year.

               2.5. Business Expenses. The Company shall pay or reimburse the Executive for all
commercially reasonable business out-of-pocket expenses that the Executive incurs during the Term
in performing Executive’s duties under this Employment Agreement upon presentation of documentation
and in accordance with the expense reimbursement policy of the Company as approved by the Board and
in effect from time to time. Notwithstanding anything herein to the contrary or otherwise, except
to the extent any expense or reimbursement described in this Employment Agreement does not
constitute a “deferral of compensation” within the meaning of Section 409A of the Code and the
Treasury regulations and other guidance issued thereunder, any expense or reimbursement described
in this Employment Agreement shall meet the following requirements: (i) the amount of expenses
eligible for reimbursement provided to

2

 

the Executive during any calendar year will not affect the
amount of expenses eligible for reimbursement to the Executive in any other calendar year; (ii) the
reimbursements for expenses for which the Executive is entitled to be reimbursed shall be made on
or before the last day of the calendar year following the calendar year in which the applicable
expense is incurred; (iii) the right to payment or reimbursement or in-kind benefits hereunder may
not be liquidated or exchanged for any other benefit; and (iv) the reimbursements shall be made
pursuant to objectively determinable and nondiscretionary Company policies and procedures regarding
such reimbursement of expenses.

     Section 3. Employment Termination.

               3.1. Termination of Employment. The Company may terminate the Executive’s employment
for any reason during the Term, and the Executive may voluntarily resign Executive’s employment for
any reason during the Term, in each case (other than a termination by the Company for Cause) at any
time upon not less than thirty (30) days’ notice to the other party. Upon the termination or
resignation of the Executive’s employment with the Company for any reason (whether during the Term
or thereafter), the Executive shall be entitled to any Base Salary earned but unpaid through the
date of termination or resignation, any earned but unpaid Annual Bonus for completed fiscal years,
any unused accrued PTO and any unreimbursed expenses in accordance with Section 2.5 hereof
(collectively, the “Accrued Amounts”).

               3.2. Certain Terminations.

                    (a) Termination by the Company Other Than For Cause or Disability; Resignation by the
Executive for Good Reason. If during the Term (i) the Executive’s employment is terminated by
the Company other than for Cause or Disability, or (ii) the Executive resigns for Good Reason, then
in addition to the Accrued Amounts the Executive shall be entitled to the following payments and
benefits: (x) the continuation of Executive’s Base Salary at the rate in effect immediately prior
to the date of termination or resignation (or, in the case of a resignation for Good Reason, at the
rate in effect immediately prior to the occurrence of the event constituting Good Reason, if
greater) for a period of thirty-six (36) months (or, if earlier, until and including the month in
which the Executive attains age 70) (the “Severance Period”), (y) a Pro-Rata Bonus and (z)
to the extent permitted pursuant to the applicable plans, the continuation on the same terms as an
active employee (including, where applicable, coverage for the Executive and his dependents) of
medical, dental, vision and life insurance benefits (“Welfare Benefits”) the Executive
would otherwise be eligible to receive as an active employee of the Company for thirty-six (36)
months or, if earlier, until the Executive becomes eligible for Welfare Benefits from a subsequent
employer (the “Welfare Benefit Continuation Period”)(such payments, the “Severance
Payments”). If the Executive is not permitted to continue participation in the Company’s
Welfare Benefit plans pursuant to the terms of such plans or pursuant to a determination by the
Company’s insurance providers or such continued participation in any plan would result in the
imposition of an excise tax on the Company pursuant to Section 4980D of the Code, the Company shall
use reasonable efforts to obtain individual insurance policies providing the Welfare Benefits to
the Executive during the Welfare Benefit Continuation Period, but shall only be required to pay for
such policies an amount equal to the amount the Company would have paid had the Executive continued
participation in the Company’s Welfare Benefits plans;

3

 

provided, that, if such
coverage cannot be obtained, the Company shall pay to the Executive monthly during the Welfare
Benefit Continuation Period an amount equal to the amount the Company would have paid had the
Executive continued participation in the Company’s Welfare Benefits plans. The Company’s
obligations to make the Severance Payments shall be conditioned upon: (i) the Executive’s continued
compliance with Executive’s obligations under Section 4 of this Employment Agreement and (ii) the
Executive’s execution, delivery and non-revocation of a valid and enforceable general release of
claims arising in connection with the Executive’s employment and termination or resignation of
employment with the Company (the “Release”) in a form reasonably acceptable to the Company
and the Executive that becomes effective not later than forty-five (45) days after the date of such
termination or resignation of employment. In the event that the Executive breaches any of the
covenants set forth in Section 4 of this Employment Agreement, the Executive will immediately
return to the Company any portion of the Severance Payments that have been paid to the Executive
pursuant to this Section 3.2(a). Subject to the foregoing and Section 3.2(g), the Severance
Payments will commence to be paid to the Executive on the forty-fifth (45th) day
following the Executive’s termination of employment, except that the Pro Rata Bonus shall be paid
at the time when annual bonuses are paid generally to the Company’s senior executives for the year
in which the Executive’s termination of employment occurs.

                    (b) Change in Control Termination. If (A) (i) the Executive’s employment is
terminated by the Company other than for Cause or Disability, or (ii) the Executive resigns for
Good Reason, and such termination or resignation described in (i) or (ii) of this Clause (A) occurs
within the one (1) year period following a Change in Control, or (B) the Executive’s termination or
resignation is a Change in Control Related Termination, then, in addition to the Severance Payments
described in Section 3.2(a), the Executive shall also be entitled to a payment each month during
the Severance Period equal to one-twelfth (1/12th) of the target Annual Bonus for the
year in which the Executive’s termination or resignation occurs (determined without regard to any
reduction in Base Salary or target Annual Bonus percentage subsequent to the Change in Control or
in connection with the Change in Control Related Termination) and such amounts shall be deemed to
be included in the term Severance Payments for purposes of this Agreement.

                    (c) Termination by the Company For Disability. If the Executive’s employment is
terminated during the Term by the Company by reason of the Executive’s Disability, in addition to
the Accrued Amounts and any payments to be made to the Executive under the Company’s disability
plan(s) as a result of such Disability, the Company shall pay to the Executive such supplemental
amounts (the “Supplemental Disability Payments”) as shall be necessary to result in the
payment of aggregate amounts to the Executive as a result of his Disability that shall be equal to
the Executive’s Base Salary as in effect immediately before such Disability; provided,
that, at the Company’s option, the Company may purchase insurance to cover its obligations
under this Section 3.2(c) and the Executive shall cooperate to assist the Company in obtaining such
insurance. Such Supplemental Disability Payments shall be made for a period of thirty-six (36)
months from the Date of Disability. The Company shall also pay to the Executive a Pro-Rata Bonus
in the event of a termination of employment described in this Section 3.2(c). The Company’s
obligations to make the Supplemental Disability Payments and the Pro-Rata Bonus shall be
conditioned upon: (i) the Executive’s continued compliance with his obligations under Section 4 of
this Employment Agreement and (ii) the Executive’s execution,

4

 

delivery and non-revocation of a
Release that becomes effective not later than forty-five (45) days after the date of such
termination of employment. In the event that the Executive breaches any of the covenants set forth
in Section 4 of this Employment Agreement, the Executive will immediately return to the Company any
portion of the Supplemental Disability Payments and the Pro-Rata Bonus that have been paid to the
Executive pursuant to this Section 3.2(c). Subject to the foregoing and Section 3.2(g), the
Supplemental Disability Payments will commence to be paid to the Executive on the forty-fifth
(45th) day following the Executive’s termination of employment. The Pro-Rata Bonus
shall be paid at the time when annual bonuses are paid generally to the Company’s senior executives
for the year in which the Executive’s termination of employment occurs.

                    (d) Termination by Reason of Death. If the Executive’s employment is terminated
during the Term by reason of his death, in addition to the Accrued Amounts and any employee
benefits to which the Executive’s estate, spouse or other beneficiaries, as applicable, may be
entitled, the Company shall pay to the beneficiary designated in writing by the Executive (or to
his estate if no such beneficiary has been so designated), (i) the Base Salary which the Executive
would have received if he had remained employed under this Employment Agreement for a total of
thirty-six months from the commencement of the Term, assuming for such remaining period the
Executive’s Base Salary as in effect on the date of the Executive’s death; provided,
that, at the Company’s option, the Company may purchase insurance to cover its obligations
under this Section 3.2(d) (which for the avoidance of doubt shall not include insurance provided by
the Company under its group life insurance plan covering employees generally) and the Executive
shall cooperate to assist the Company in obtaining such insurance and (ii) a Pro-Rata Bonus.

                    (e) Retirement. Upon Retirement, the Executive, whether or not Sections 3.2(a) or
3.2(c) also apply but without duplication of benefits, shall be entitled to (i) a Pro-Rata Bonus,
(ii) to the extent permitted pursuant to the applicable plans, the continuation on the same terms
as an active employee of Welfare Benefits the Executive would otherwise be eligible to receive as
an active employee of the Company for thirty-six (36) months following date of his Retirement or,
if earlier, until such time as the Executive becomes eligible for Welfare Benefits from a
subsequent employer and, thereafter, shall be eligible to continue participation in the Company’s
Welfare Benefits plans, provided that such continued participation shall be entirely at the
Executive’s expense and shall cease when the Executive becomes eligible for Welfare Benefits from a
subsequent employer and (iii) the provision of an office at the Company’s headquarters and use of
such offices and the Company facilities and administrative support at the Company’s expense for
thirty-six (36) months following the date of his Retirement and at the Executive’s expense
thereafter, provided that such use shall not interfere with Company use thereof. Notwithstanding
the foregoing, (x) if the Executive is not permitted to continue participation in the Company’s
Welfare Benefit plans pursuant to the terms of such plans or pursuant to a determination by the
Company’s insurance providers or such continued participation in any plan would result in the plan
being discriminatory within the meaning of Section 4980D of the Code, the Company shall use
reasonable efforts to obtain individual insurance policies providing the Welfare Benefits to the
Executive for such thirty-six (36) months, but shall only be required to pay for such policies an
amount equal to the amount the Company would have paid had the Executive continued participation in
the Company’s Welfare Benefit plans; provided, that, if such coverage cannot be
obtained, the Company shall pay to the

5

 

Executive monthly for such thirty-six (36) months an amount
equal to the amount the Company would have paid had the Executive continued participation in the
Company’s Welfare Benefits plans and (y) any Welfare Benefits coverage provided pursuant to this
Section 3.2(e), whether through the Company’s Welfare Benefit plans or through individual insurance
policies, shall be supplemental to any benefits for which the Executive becomes eligible under
Medicare, whether or not the Executive actually obtains such Medicare coverage. The Pro-Rata Bonus
shall be paid at the time when annual bonuses are paid generally to the Company’s senior executives
for the year in which the Executive’s Retirement occurs.

                    (f) Definitions. For purposes of this Section 3.2, the following terms shall have the
following meanings:

                         (1) A resignation for “Good Reason” shall mean a resignation by the Executive within
thirty (30) days following the date on which the Company has engaged in any of the following (each
a “Good Reason Event”): (i) the assignment of duties or responsibilities to the Executive
that reflect a material diminution of the Executive’s position with the Company; provided,
however, that the hiring of a chief executive officer by CVR GP, LLC shall not be a Good
Reason Event if, immediately thereafter, the Executive is the chairman of the board of directors of
CVR GP, LLC, (ii) a relocation of the Executive’s principal place of employment that increases the
Executive’s commute by more than fifty (50) miles; (iii) a reduction in the Executive’s Base
Salary, other than across-the-board reductions applicable to similarly situated employees of the
Company; or (iv) a Change in Control in which the Executive does not concurrently receive an
employment contract substantially in the form of this Employment Agreement from the successor
company; provided, however, that the Executive must provide the Company with notice
promptly following the occurrence of any of the foregoing and at least ten (10) business days to
cure. Notwithstanding the foregoing, if a Good Reason Event occurs upon or following a Change in
Control and prior to the tenth (10th) business day prior to the first (1st)
anniversary of the Change in Control, a resignation for Good Reason (i) may not be effective prior
to the ninetieth (90th) day after the date of the occurrence of the Change in Control
and (ii) may be effective at any time within the period commencing ninety (90) days after the date
of the occurrence of the Change in Control and ending on the first anniversary of the date of the
occurrence of the Change in Control; provided, however, that the Executive must
provide the Company with notice of the occurrence of the Good Reason Event and at least ten (10)
business days to cure.

                         (2) “Cause” shall mean that the Executive has engaged in any of the following: (i)
willful misconduct or breach of fiduciary duty; (ii) intentional failure or refusal to perform
reasonably assigned duties after written notice of such willful failure or refusal and the failure
or refusal is not corrected within ten (10) business days; provided, however, that
the Executive’s refusal to participate in or perform any act on behalf of the Company which upon
advice of counsel the Executive in good faith believes is illegal or unethical shall not constitute
Cause; (iii) the indictment for, conviction of or entering a plea of guilty or nolo contendere to a
crime constituting a felony (other than a traffic violation or other offense or violation outside
of the course of employment which does not adversely affect the Company and its Affiliates or their
reputation or the ability of the Executive to perform Executive’s employment-related duties or to
represent the Company and its Affiliates); provided, however, that (A) if the
Executive is terminated for Cause by reason of Executive’s indictment

6

 

pursuant to this clause (iii)
and the indictment is subsequently dismissed or withdrawn or the Executive is found to be not
guilty in a court of law in connection with such indictment, then the Executive’s termination shall
be treated for purposes of this Employment Agreement as a termination by the Company other than for
Cause, and the Executive will be entitled to receive (without duplication of benefits and to the
extent permitted by law and the terms of the then-applicable Welfare Benefits plans) the payments
and benefits set forth in Section 3.2(a) and, to the extent either or both are applicable, Section
3.2(b) and Section 3.2(e), following such dismissal, withdrawal or finding, payable in the manner
and subject to the conditions set forth in such Sections and (B) if such indictment relates to
environmental matters and does not allege that the Executive was directly involved in or directly
supervised the action(s) forming the basis of the indictment, Cause shall not be deemed to exist
under this Employment Agreement by reason of such indictment until the Executive is convicted or
enters a plea of guilty or nolo contendere in connection with such indictment; or (iv) material
breach of the Executive’s covenants in Section 4 of this Employment Agreement or any material
written policy of the Company or any Affiliate after written notice of such breach and failure by
the Executive to cure such breach within ten (10) business days; provided, however, that no such
notice of, nor opportunity to cure, such breach shall be required hereunder if the breach cannot be
cured by the Executive.

                         (3) “Change in Control” shall have the meaning set forth on Appendix A.

                         (4) “Change in Control Related Termination” shall mean a termination of the
Executive’s employment by the Company other than for Cause or Executive’s resignation for Good
Reason, in each case at any time prior to the date of a Change in Control and (A) the Executive
reasonably demonstrates that such termination or the basis for resignation for Good Reason occurred
in anticipation of a transaction that, if consummated, would constitute a Change in Control, (B)
such termination or the basis for resignation for Good Reason occurred after the Company entered
into a definitive agreement, the consummation of which would constitute a Change in Control or (C)
the Executive reasonably demonstrates that such termination or the basis for resignation for Good
Reason was implemented at the request of a third party who has indicated an intention or has taken
steps reasonably calculated to effect a Change in Control.

                         (5) “Disability” shall mean that: (i) the Executive is unable to perform his duties
hereunder as a result of illness or physical injury for a period of at least ninety (90) days; (ii)
the Executive is entitled to receive payments under the Company’s long-term disability insurance
plan; (iii) the Executive has started to receive such disability insurance payments; and (iv) no
person has contested or questioned the Executive’s right to receive such payments or, if such
payments have been contested, the Company has irrevocably and unconditionally agreed to pay the
Executive such amounts as will net to the Executive after reduction for applicable federal and
state income taxes the same amount as he would have received after such taxes from such insurance.
The “Date of Disability” shall mean the first date on which all of the requirements set
forth in clauses (i) through (iv) above have been satisfied.

                         (6) “Pro-Rata Bonus” shall mean, the product of (A) a fraction, the numerator of which
is the number of days the Executive is employed by the

7

 

Company during the year in which the
Executive’s employment terminates pursuant to Section 3.2(a), (c), (d) or (e) prior to and
including the date of the Executive’s termination and the denominator of which is 365 and (B)(i) if
the Annual Bonus is payable pursuant to a plan that is intended to provide for the payment of
bonuses that constitute “performance-based compensation” within the meaning of Section 162(m) of
the Code, an amount for that year equal to the Annual Bonus the Executive would have been entitled
to receive had his employment not terminated, based on the actual performance of the Company or the
Executive, as applicable, for the full year, or (ii) if the Annual Bonus is not payable pursuant to
a plan that is intended to provide for the payment of bonuses that constitute “performance-based
compensation”, the target Annual Bonus for that year.

                         (7) “Retirement” shall mean the Executive’s termination or resignation of employment
for any reason (other than by the Company for Cause or by reason of the Executive’s death)
following the date the Executive attains age 62.

                    (g) Section 409A. To the extent applicable, this Employment Agreement shall be
interpreted, construed and operated in accordance with Section 409A of the Code and the Treasury
regulations and other guidance issued thereunder. If on the date of the Executive’s separation from
service (as defined in Treasury Regulation §1.409A-1(h)) with the Company the Executive is a
specified employee (as defined in Code Section 409A and Treasury Regulation §1.409A-1(i)), no
payment constituting the “deferral of compensation” within the meaning of Treasury Regulation
§1.409A-1(b) and after application of the exemptions provided in Treasury Regulation
§§1.409A-1(b)(4) and 1.409A-1(b)(9)(iii) shall be made to Executive at any time during the six (6)
month period following the Executive’s separation from service, and any such amounts deferred such
six (6) months shall instead be paid in a lump sum on the first payroll payment date following
expiration of such six (6) month period. For purposes of conforming this Employment Agreement to
Section 409A of the Code, the parties agree that any reference to termination of employment,
severance from employment, resignation from employment or similar terms shall mean and be
interpreted as a “separation from service” as defined in Treasury Regulation §1.409A-1(h).

               3.3. Exclusive Remedy. The foregoing payments upon termination or resignation of the
Executive’s employment shall constitute the exclusive severance payments due the Executive upon a
termination or resignation of Executive’s employment under this Employment Agreement.

               3.4. Resignation from All Positions. Upon the termination or resignation of the
Executive’s employment with the Company for any reason, the Executive shall be deemed to have
resigned, as of the date of such termination or resignation, from and with respect to all positions
the Executive then holds as an officer, director, employee and member of the Board of Directors
(and any committee thereof) of the Company and any of its Affiliates.

               3.5. Cooperation. Following the termination or resignation of the Executive’s
employment with the Company for any reason and during any period in which the Executive is
receiving Severance Payments or Supplemental Disability Payments, or for one (1) year following
termination or resignation of the Executive’s employment with the Company if no Severance Payments
or Supplemental Disability Payments are payable, the Executive agrees to

8

 

reasonably cooperate with
the Company upon reasonable request of the Board and to be reasonably available to the Company with
respect to matters arising out of the Executive’s services to the Company and its Affiliates,
provided, however, such period of cooperation shall be for three (3) years,
following any such termination or resignation of Executive’s employment for any reason, with
respect to tax matters involving the Company or any of its Affiliates. The Company shall reimburse
the Executive for expenses reasonably incurred in connection with such matters as agreed by the
Executive and the Board and the Company shall compensate the Executive for such cooperation at an
hourly rate based on the Executive’s most recent base salary rate assuming two thousand (2,000)
working hours per year; provided, that if the Executive is required to spend more than
forty (40) hours in any month on Company matters pursuant to this Section 3.5, the Executive and
the Board shall mutually agree to an appropriate rate of compensation for the Executive’s time over
such forty (40) hour threshold.

     Section 4. Unauthorized Disclosure; Non-Solicitation; Non-Competition;
Proprietary Rights.

               4.1. Unauthorized Disclosure. The Executive agrees and understands that in the
Executive’s position with the Company and any Affiliates, the Executive has been and will be
exposed to and has and will receive information relating to the confidential affairs of the Company
and its Affiliates, including, without limitation, technical information, intellectual property,
business and marketing plans, strategies, customer information, software, other information
concerning the products, promotions, development, financing, expansion plans, business policies and
practices of the Company and its Affiliates and other forms of information considered by the
Company and its Affiliates to be confidential and in the nature of trade secrets (including,
without limitation, ideas, research and development, know-how, formulas, technical data, designs,
drawings, specifications, customer and supplier lists, pricing and cost information and business
and marketing plans and proposals) (collectively, the “Confidential Information”);
provided, however, that Confidential Information shall not include information which (i) is
or becomes generally available to the public not in violation of this Employment Agreement or any
written policy of the Company; or (ii) was in the Executive’s possession or knowledge on a
non-confidential basis prior to such disclosure. The Executive agrees that at all times during the
Executive’s employment with the Company and thereafter, the Executive shall not disclose such
Confidential Information, either directly or indirectly, to any individual, corporation,
partnership, limited liability company, association, trust or other entity or organization,
including a government or political subdivision or an agency or instrumentality thereof (each, for
purposes of this Section 4, a “Person”) without the prior written consent of the Company
and shall not use or attempt to use any such information in any manner other than in connection
with Executive’s employment with the Company, unless required by law to disclose such information,
in which case the Executive shall provide the Company with written notice of such requirement as
far in advance of such anticipated disclosure as possible. Executive’s confidentiality covenant
has no temporal, geographical or territorial restriction. Upon termination or resignation of the
Executive’s employment with the Company, the Executive shall promptly supply to the Company all
property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence,
tapes, disks, cards, surveys, maps, logs, machines, technical data and other tangible products or
documents, in each case which have been produced by, received by or otherwise submitted to the
Executive during or prior to the Executive’s employment with the

9

 

Company and which are or contain
Confidential Information, and any copies thereof in Executive’s (or capable of being reduced to
Executive’s) possession.

               4.2. Non-Competition. By and in consideration of the Company’s entering into this
Employment Agreement and the payments to be made and benefits to be provided by the Company
hereunder, and in further consideration of the Executive’s exposure to the Confidential Information
of the Company and its Affiliates, the Executive agrees that the Executive shall not, during the
Term and thereafter for the period during which the Severance Payments or Supplemental Disability
Payments are payable or one (1) year following the end of the Term if no Severance Payments or
Supplemental Disability Payments are payable (the “Restriction Period”), directly or
indirectly, own, manage, operate, join, control, be employed by, or participate in the ownership,
management, operation or control of, or be connected in any manner with, including, without
limitation, holding any position as a stockholder, director, officer, consultant, independent
contractor, employee, partner, or investor in, any Restricted Enterprise (as defined below);
provided, that in no event shall ownership of one percent (1%) or less of the outstanding
securities of any class of any issuer whose securities are registered under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), standing alone, be prohibited by this Section
4.2, so long as the Executive does not have, or exercise, any rights to manage or operate the
business of such issuer other than rights as a stockholder thereof. For purposes of this
paragraph, “Restricted Enterprise” shall mean any Person that is actively engaged in any
business which is either (i) in competition with the business of the Company or any of its
Affiliates conducted during the preceding twelve (12) months (or following the Term, the twelve
(12) months preceding the last day of the Term), or (ii) proposed to be conducted by the Company or
any of its Affiliates in the Company’s or Affiliate’s business plan as in effect at that time (or
following the Term, the business plan as in effect as of the last day of the Term);
provided, that (x) with respect to any Person that is actively engaged in the refinery
business, a Restricted Enterprise shall only include such a Person that operates or markets in any
geographic area in which the Company or any of its Affiliates operates or markets with respect to
its refinery business and (y) with respect to any Person that is actively engaged in the fertilizer
business, a Restricted Enterprise shall only include such a Person that operates or markets in any
geographic area in which the Company or any of its Affiliates operates or markets with respect to
its fertilizer business. During the Restriction Period, upon request of the Company, the Executive
shall notify the Company of the Executive’s then-current employment status. For the avoidance of
doubt, (A) the foregoing shall not prohibit the Executive from working in the State of Texas;
provided, that the Executive’s so working does not involve any Restricted Enterprise that
is operating in the State of Texas if the Company or any of its Affiliates is then operating in the
State of Texas and (B) a Restricted Enterprise shall not include any Person or division thereof
that is engaged in the business of supplying (but not refining) crude oil or natural gas.

               4.3. Non-Solicitation of Employees. During the Restriction Period, the Executive
shall not directly or indirectly solicit (or assist any Person to solicit) for employment any
person who is, or within twelve (12) months prior to the date of such solicitation was, an employee
of the Company or any of its Affiliates, provided, however, that this Section 4.3 shall not
prohibit the hiring of any individual as a result of the individual’s response to an advertisement
in a publication of general circulation.

10

 

               4.4. Non-Solicitation of Customers/Suppliers. During the Restriction Period, the
Executive shall not (i) solicit (or assist any Person to solicit) any Person which has a business
relationship with the Company or of any of its Affiliates in order to terminate, curtail or
otherwise interfere with such business relationship or (ii) solicit, other than on behalf of the
Company and its Affiliates, any Person that the Executive knows or should have known (x) is a
current customer of the Company or any of its Affiliates in any geographic area in which the
Company or any of its Affiliates operates or markets or (y) is a Person in any geographic area in
which the Company or any of its Affiliates operates or markets with respect to which the Company or
any of its Affiliates has, within the twelve (12) months prior to the date of such solicitation,
devoted more than de minimis resources in an effort to cause such Person to become a customer of
the Company or any of its Affiliates in that geographic area. For the avoidance of doubt, the
foregoing does not preclude the Executive from soliciting, outside of the geographic areas in which
the Company or any of its Affiliates operates or markets, any Person that is a customer or
potential customer of the Company or any of its Affiliates in the geographic areas in which it
operates or markets.

               4.5. Extension of Restriction Period. The Restriction Period shall be extended for a
period of time equal to any period during which the Executive is in breach of any of Sections 4.2,
4.3 or 4.4 hereof.

               4.6. Proprietary Rights. The Executive shall disclose promptly to the Company any and
all inventions, discoveries, and improvements (whether or not patentable or registrable under
copyright or similar statutes), and all patentable or copyrightable works, initiated, conceived,
discovered, reduced to practice, or made by Executive, either alone or in conjunction with others,
during the Executive’s employment with the Company and related to the business or activities of the
Company and its Affiliates (the “Developments”). Except to the extent any rights in any
Developments constitute a work made for hire under the U.S. Copyright Act, 17 U.S.C. § 101 et seq.
that are owned ab initio by the Company and/or its applicable Affiliates, the Executive assigns all
of Executive’s right, title and interest in all Developments (including all intellectual property
rights therein) to the Company or its nominee without further compensation, including all rights or
benefits therefor, including without limitation the right to sue and recover for past and future
infringement. The Executive acknowledges that any rights in any developments constituting a work
made for hire under the U.S. Copyright Act, 17 U.S.C § 101 et seq. are owned upon creation by the
Company and/or its applicable Affiliates as the Executive’s employer. Whenever requested to do so
by the Company, the Executive shall execute any and all applications, assignments or other
instruments which the Company shall deem necessary to apply for and obtain trademarks, patents or
copyrights of the United States or any foreign country or otherwise protect the interests of the
Company and its Affiliates therein. These obligations shall continue beyond the end of the
Executive’s employment with the Company with respect to inventions, discoveries, improvements or
copyrightable works initiated, conceived or made by the Executive while employed by the Company,
and shall be binding upon the Executive’s employers, assigns, executors, administrators and other
legal representatives. In connection with Executive’s execution of this Employment Agreement, the
Executive has informed the Company in writing of any interest in any inventions or intellectual
property rights that Executive holds as of the date hereof. If the Company is unable for any
reason, after reasonable effort, to obtain the Executive’s signature on any document needed in
connection with the actions described in this Section 4.6, the Executive hereby irrevocably
designates and

11

 

appoints the Company, its Affiliates, and their duly authorized officers and agents
as the Executive’s agent and attorney in fact to act for and in the Executive’s behalf to execute,
verify and file any such documents and to do all other lawfully permitted acts to further the
purposes of this Section with the same legal force and effect as if executed by the Executive.

               4.7. Confidentiality of Agreement. Other than with respect to information required to
be disclosed by applicable law, the parties hereto agree not to disclose the terms of this
Employment Agreement to any Person; provided the Executive may disclose this Employment Agreement
and/or any of its terms to the Executive’s immediate family, financial advisors and attorneys.
Notwithstanding anything in this Section 4.7 to the contrary, the parties hereto (and each of their
respective employees, representatives, or other agents) may disclose to any and all Persons,
without limitation of any kind, the tax treatment and tax structure of the transactions
contemplated by this Employment Agreement, and all materials of any kind (including opinions or
other tax analyses) related to such tax treatment and tax structure; provided that this sentence
shall not permit any Person to disclose the name of, or other information that would identify, any
party to such transactions or to disclose confidential commercial information regarding such
transactions.

               4.8. Remedies. The Executive agrees that any breach of the terms of this Section 4
would result in irreparable injury and damage to the Company and its Affiliates for which the
Company and its Affiliates would have no adequate remedy at law; the Executive therefore also
agrees that in the event of said breach or any threat of breach, the Company and its Affiliates
shall be entitled to an immediate injunction and restraining order to prevent such breach and/or
threatened breach and/or continued breach by the Executive and/or any and all Persons acting for
and/or with the Executive, without having to prove damages, in addition to any other remedies to
which the Company and its Affiliates may be entitled at law or in equity, including, without
limitation, the obligation of the Executive to return any Severance Payments or Supplemental
Disability Payments made by the Company to the Company. The terms of this paragraph shall not
prevent the Company or its Affiliates from pursuing any other available remedies for any breach or
threatened breach hereof, including, without limitation, the recovery of damages from the
Executive. The Executive and the Company further agree that the provisions of the covenants
contained in this Section 4 are reasonable and necessary to protect the businesses of the Company
and its Affiliates because of the Executive’s access to Confidential Information and Executive’s
material participation in the operation of such businesses.

     Section 5. Representation.

     The Executive represents and warrants that (i) Executive is not subject to any contract,
arrangement, policy or understanding, or to any statute, governmental rule or regulation, that in
any way limits Executive’s ability to enter into and fully perform Executive’s obligations under
this Employment Agreement and (ii) Executive is not otherwise unable to enter into and fully
perform Executive’s obligations under this Employment Agreement.

12

 

     Section 6. Withholding.

     All amounts paid to the Executive under this Employment Agreement during or following the Term
shall be subject to withholding and other employment taxes imposed by applicable law.

     Section 7. Effect of Section 280G of the Code.

               7.1. Payment Reduction. Notwithstanding anything contained in this Employment
Agreement to the contrary, (i) to the extent that any payment or distribution of any type to or for
the Executive by the Company, any affiliate of the Company, any Person who acquires ownership or
effective control of the Company or ownership of a substantial portion of the Company’s assets
(within the meaning of Section 280G of the Code and the regulations thereunder), or any affiliate
of such Person, whether paid or payable or distributed or distributable pursuant to the terms of
this Employment Agreement or otherwise (the “Payments”) constitute “parachute payments”
(within the meaning of Section 280G of the Code), and if (ii) such aggregate would, if reduced by
all federal, state and local taxes applicable thereto, including the excise tax imposed under
Section 4999 of the Code (the “Excise Tax”), be less than the amount the Executive would
receive, after all taxes, if the Executive received aggregate Payments equal (as valued under
Section 280G of the Code) to only three times the Executive’s “base amount” (within the meaning of
Section 280G of the Code), less $1.00, then (iii) such Payments shall be reduced (but not below
zero) if and to the extent necessary so that no Payments to be made or benefit to be provided to
the Executive shall be subject to the Excise Tax; provided, however, that the
Company shall use its reasonable best efforts to obtain shareholder approval of the Payments
provided for in this Employment Agreement in a manner intended to satisfy requirements of the
“shareholder approval” exception to Section 280G of the Code and the regulations promulgated
thereunder, such that payment may be made to the Executive of such Payments without the application
of an Excise Tax. If the Payments are so reduced, the Company shall reduce or eliminate the
Payments (x) by first reducing or eliminating the portion of the Payments which are not payable in
cash (other than that portion of the Payments subject to clause (z) hereof), (y) then by reducing
or eliminating cash payments (other than that portion of the Payments subject to clause (z) hereof)
and (z) then by reducing or eliminating the portion of the Payments (whether payable in cash or not
payable in cash) to which Treasury Regulation § 1.280G-1 Q/A 24(c) (or successor thereto) applies,
in each case in reverse order beginning with payments or benefits which are to be paid the farthest
in time.

               7.2. Determination of Amount of Reduction (if any). The determination of whether the
Payments shall be reduced as provided in Section 7.1 and the amount of such reduction shall be made
at the Company’s expense by an accounting firm selected by the Company from among the four (4)
largest accounting firms in the United States (the “Accounting Firm”). The Accounting Firm
shall provide its determination (the “Determination”), together with detailed supporting
calculations and documentation, to the Company and the Executive within ten (10) days after the
Executive’s final day of employment. If the Accounting Firm determines that no Excise Tax is
payable by the Executive with respect to the Payments, it shall furnish the Executive with an
opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to
any such payments and, absent

13

 

manifest error, such Determination shall be binding, final and
conclusive upon the Company and the Executive.

     Section 8. Miscellaneous.

               8.1. Indemnification. To the extent permitted by applicable law and subject to any
separate agreement (if any) between the Company and the Executive regarding indemnification, the
Company shall indemnify the Executive for losses or damages incurred by the Executive as a result
of all causes of action arising from the Executive’s performance of duties for the benefit of the
Company, whether or not the claim is asserted during the Term. This indemnity shall not apply to
the Executive’s acts of willful misconduct or gross negligence. The Executive shall be covered
under any directors’ and officers’ insurance that the Company maintains for its directors and other
officers in the same manner and on the same basis as the Company’s directors and other officers.

               8.2. Fees and Expenses. The Company shall pay all legal fees and related expenses
(including the costs of experts, evidence and counsel) incurred by the Executive as a result of (i)
the termination of the Executive’s employment by the Company or the resignation by the Executive
for Good Reason (including all such fees and expenses, if any, incurred in contesting, defending or
disputing the basis for any such termination or resignation of employment) or (b) the Executive
seeking to obtain or enforce any right or benefit provided by this Employment Agreement;
provided, that, if it is determined that the Executive’s termination of employment
was for Cause, the Executive shall not be entitled to any payment or reimbursement pursuant to this
Section 8.2.

               8.3. Amendments and Waivers. This Employment Agreement and any of the provisions
hereof may be amended, waived (either generally or in a particular instance and either
retroactively or prospectively), modified or supplemented, in whole or in part, only by written
agreement signed by the parties hereto; provided, that, the observance of any provision of
this Employment Agreement may be waived in writing by the party that will lose the benefit of such
provision as a result of such waiver. The waiver by any party hereto of a breach of any provision
of this Employment 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.

               8.4. Assignment. This Employment Agreement, and the Executive’s rights and
obligations hereunder, may not be assigned by the Executive, and any purported assignment by the
Executive in violation hereof shall be null and void.

               8.5. Payments Following Executive’s Death. Any amounts payable to the Executive
pursuant to this Agreement that remain unpaid at the Executive’s death shall be paid to the
Executive’s estate.

14

 

               8.6. Notices. Unless otherwise provided herein, all notices, requests, demands,
claims and other communications provided for under the terms of this Employment Agreement shall be
in writing. Any notice, request, demand, claim or other communication hereunder shall be sent by
(i) personal delivery (including receipted courier service) or overnight delivery service, (ii)
facsimile during normal business hours, with confirmation of receipt, to the number indicated,
(iii) reputable commercial overnight delivery service courier or (iv) registered or certified mail,
return receipt requested, postage prepaid and addressed to the intended recipient as set forth
below:

	 	 	 	 	 

	 

	 	If to the Company:
	 	CVR Energy, Inc.
	 

	 	 	 	10 E. Cambridge Circle, Suite 250
	 

	 	 	 	Kansas City, KS 66103
	 

	 	 	 	Attention: General Counsel
	 

	 	 	 	Facsimile: (913) 982-5651
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Fried, Frank, Harris, Shriver & Jacobson LLP
	 

	 	 	 	One New York Plaza
	 

	 	 	 	New York, NY 10004
	 

	 	 	 	Attention: Donald P. Carleen, Esq.
	 

	 	 	 	Facsimile: (212) 859-4000
	 
	 	 	 	 
	 

	 	If to the Executive:
	 	John J. Lipinski
	 

	 	 	 	2277 Plaza Drive, Suite 500
	 

	 	 	 	Sugar Land, TX 77479
	 

	 	 	 	Facsimile: (281) 207-3505

          All such notices, requests, consents and other communications shall be deemed to have been
given when received. Any party may change its facsimile number or its address to which notices,
requests, demands, claims and other communications hereunder are to be delivered by giving the
other parties hereto notice in the manner then set forth.

               8.7. Governing Law. This Employment Agreement shall be construed and enforced in
accordance with, and the rights and obligations of the parties hereto shall be governed by, the
laws of the State of Texas, without giving effect to the conflicts of law principles thereof. Each
of the parties hereto irrevocably and unconditionally consents to submit to the exclusive
jurisdiction of the courts of Texas (collectively, the “Selected Courts”) for any action or
proceeding relating to this Employment Agreement, agrees not to commence any action or proceeding
relating thereto except in the Selected Courts, and waives any forum or venue objections to the
Selected Courts.

               8.8. Severability. Whenever possible, each provision or portion of any provision of
this Employment Agreement, including those contained in Section 4 hereof, will be interpreted in
such manner as to be effective and valid under applicable law but the invalidity or
unenforceability of any provision or portion of any provision of this Employment Agreement in any
jurisdiction shall not affect the validity or enforceability of the remainder of this Employment
Agreement in that jurisdiction or the validity or enforceability of this Employment Agreement,
including that provision or portion of any provision, in any other jurisdiction. In

15

 

addition,
should a court or arbitrator determine that any provision or portion of any provision of this
Employment Agreement, including those contained in Section 4 hereof, is not reasonable or valid,
either in period of time, geographical area, or otherwise, the parties hereto agree that such
provision should be interpreted and enforced to the maximum extent which such court or arbitrator
deems reasonable or valid.

               8.9. Entire Agreement. From and after the Commencement Date, this Employment
Agreement constitutes the entire agreement between the parties hereto, and supersedes all prior
representations, agreements and understandings (including any prior course of dealings), both
written and oral, relating to any employment of the Executive by the Company or any of its
Affiliates including, without limitation, the First Amended and Restated Agreement and the Second
Amended and Restated Agreement.

               8.10. Counterparts. This Employment Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all such counterparts shall together
constitute one and the same instrument.

               8.11. Binding Effect. This Employment Agreement shall inure to the benefit of, and be
binding on, the successors and assigns of each of the parties, including, without limitation, the
Executive’s heirs and the personal representatives of the Executive’s estate and any successor to
all or substantially all of the business and/or assets of the Company.

               8.12. General Interpretive Principles. The name assigned this Employment Agreement
and headings of the sections, paragraphs, subparagraphs, clauses and subclauses of this Employment
Agreement are for convenience of reference only and shall not in any way affect the meaning or
interpretation of any of the provisions hereof. Words of inclusion shall not be construed as terms
of limitation herein, so that references to “include”, “includes” and “including” shall not be
limiting and shall be regarded as references to non-exclusive and non-characterizing illustrations.

               8.13. Mitigation. Notwithstanding any other provision of this Employment Agreement,
(a) the Executive will have no obligation to mitigate damages for any breach or termination of this
Employment Agreement by the Company, whether by seeking employment or otherwise and (b) except for
Welfare Benefits provided pursuant to Section 3.2(a) or 3.2(e), the amount of any payment or
benefit due the Executive after the date of such breach or termination will not be reduced or
offset by any payment or benefit that the Executive may receive from any other source.

               8.14. Company Actions. Any actions, approvals, decisions, or determinations to be
made by the Company under this Employment Agreement shall be made by the Company’s Board, except as
otherwise expressly provided herein.

[signature page follows]

16

 

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date
first written above.

	 	 	 	 	 	 	 

	 	 	CVR ENERGY, INC.
	 
	 	 	 	 	 	 
	/s/ John J. Lipinski

	 	By:
	 	/s/ Stanley A. Riemann	 	 
	 

	 	 	 	 	 	 
	JOHN J. LIPINSKI

	 	 	 	Name: Stanley A. Riemann	 	 
	 

	 	 	 	Title: Chief Operating Officer	 	 

 
[Signature Page to Third Amended and Restated Employment Agreement]

 

 

APPENDIX A

“Change in Control” means the occurrence of any of the following:

     (a) An acquisition (other than directly from the Company) of any voting securities of the
Company (the “Voting Securities”) by any “Person” (as the term “person” is used for
purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has
“Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
more than thirty percent (30%) of (i) the then-outstanding Shares or (ii) the combined voting power
of the Company’s then-outstanding Voting Securities; provided, however, that in determining whether
a Change in Control has occurred pursuant to this paragraph (a), the acquisition of Shares or
Voting Securities in a Non-Control Acquisition (as hereinafter defined) shall not constitute a
Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an
employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person the majority of the voting power, voting equity securities or equity
interest of which is owned, directly or indirectly, by the Company (for purposes of this
definition, a “Related Entity”), (ii) the Company, any Principal Stockholder or any Related
Entity, or (iii) any Person in connection with a Non-Control Transaction (as hereinafter defined);

     (b) The consummation of:

          (i) A merger, consolidation or reorganization (x) with or into the Company or (y) in which
securities of the Company are issued (a “Merger”), unless such Merger is a “Non-Control
Transaction.” A “Non-Control Transaction” shall mean a Merger in which:

               (A) the shareholders of the Company immediately before such Merger own directly or indirectly
immediately following such Merger at least a majority of the combined voting power of the
outstanding voting securities of (1) the corporation resulting from such Merger (the “Surviving
Corporation”), if fifty percent (50%) or more of the combined voting power of the then
outstanding voting securities by the Surviving Corporation is not Beneficially Owned, directly or
indirectly, by another Person (a “Parent Corporation”) or (2) if there is one or more than
one Parent Corporation, the ultimate Parent Corporation;

               (B) the individuals who were members of the Board immediately prior to the execution of the
agreement providing for such Merger constitute at least a majority of the members of the board of
directors of (1) the Surviving Corporation, if there is no Parent Corporation, or (2) if there is
one or more than one Parent Corporation, the ultimate Parent Corporation; and

               (C) no Person other than (1) the Company or another corporation that is a party to the
agreement of Merger, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a
part thereof) that, immediately prior to the Merger, was maintained by the Company or any Related
Entity, or (4) any Person who, immediately prior to the Merger, had Beneficial Ownership of thirty
percent (30%) or more of the then outstanding Shares or Voting Securities, has Beneficial
Ownership, directly or indirectly, of thirty percent (30%) or more of

 

 

the combined voting power of
the outstanding voting securities or common stock of (x) the Surviving Corporation, if there is no
Parent Corporation, or (y) if there is one or more than one Parent Corporation, the ultimate Parent
Corporation.

          (ii) A complete liquidation or dissolution of the Company; or

          (iii) The sale or other disposition of all or substantially all of the assets of the Company
and its Subsidiaries taken as a whole to any Person (other than (x) a transfer to a Related Entity
or (y) the distribution to the Company’s shareholders of the stock of a Related Entity or any other
assets).

     Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because
any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted
amount of the then outstanding Shares or Voting Securities as a result of the acquisition of Shares
or Voting Securities by the Company which, by reducing the number of Shares or Voting Securities
then outstanding, increases the proportional number of shares Beneficially Owned by the Subject
Persons; provided that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of Shares or Voting Securities by the Company and, after such share
acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional
Shares or Voting Securities and such Beneficial Ownership increases the percentage of the then
outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

     For purposes of this definition: (i) “Shares” means the common stock, par value $.01
per share, of the Company and any other securities into which such shares are changed or for which
such shares are exchanged and (ii) “Principal Stockholder” means each of Kelso Investment
Associates VII, L.P., a Delaware limited partnership, KEP VI, LLC, a Delaware limited liability
company, GS Capital Partners V Fund, L.P., a Delaware limited partnership, GS Capital Partners V
Offshore Fund, L.P., a Cayman Islands exempted limited partnership, GS Capital Partners V
Institutional, L.P., a Delaware limited partnership and GS Capital Partners V GmbH & Co. KG, a
German limited partnership.

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