Document:

Exhibit

Exhibit  10.3

EXECUTION VERSION

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") is dated as of April 20, 2016 (the "Amendment Date") and is executed by and among CALUMET SPECIALTY PRODUCTS PARTNERS, L.P., a Delaware limited partnership ("MLP Parent"), the Subsidiaries of MLP Parent listed as "Borrowers" on the signature pages hereto (together with MLP Parent, collectively the "Borrowers" and each individually a "Borrower"), the Lenders party hereto (which Lenders constitute at least Required Lenders), and BANK OF AMERICA, N.A., a national banking association, as agent for Lenders ("Agent").

R E C I T A L S:

A.    Borrowers, Guarantors (if any), Lenders and Agent are parties to that certain Second Amended and Restated Credit Agreement dated as of July 14, 2014, as previously amended by that certain First Amendment to Second Amended and Restated Credit Agreement dated as of December 4, 2015 (as amended or otherwise modified from time to time, the "Credit Agreement").

B.    Borrowers, Guarantors (if any), Required Lenders and Agent desire to amend the Credit Agreement to, among other things, allow for (i) the issuance of the Senior Secured Notes in the aggregate principal amount of up to $400,000,000 pursuant to the Senior Secured Notes Indenture and (ii) such Senior Secured Notes to be secured by a pari passu Lien on the Hedge Agreement Collateral (but not on any Collateral).

NOW, THEREFORE, for good and valuable consideration hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.  DEFINITIONS
Section 1.1    Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Credit Agreement as amended hereby.
SECTION 2.      AMENDMENTS TO THE CREDIT AGREEMENT
Section 2.1    Amendments to Section 1.1 of the Credit Agreement.  
(a)    Amendment to the Definition of the Term "Alternate Currency Rate".  The definition of the term "Alternate Currency Rate" is hereby amended to add the following sentence to the end of such definition:
Notwithstanding the foregoing or anything to the contrary contained in this definition, in no event shall the Alternate Currency Rate be less than zero.

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(b)    Addition of Defined Term "Bail-In Action" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"Bail-In Action" – the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.  

(c)    Addition of Defined Term "Bail-In Legislation" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"Bail-In Legislation" – with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.  
(d)    Amendment to the Definition of the Term "Base Rate".  The definition of the term "Base Rate" is hereby amended to add the following sentence to the end of such definition:
Notwithstanding the foregoing or anything to the contrary contained in this definition, in no event shall the Base Rate be less than zero.
(e)    Amendment to the Definition of the Term "Change of Control".  Clause (e) of the definition of the term "Change of Control" is hereby amended and restated to read in its entirety as follows:
(e)    the occurrence of a "Change of Control" (or any comparable term) under, and as defined or used in, any Senior Notes Indenture or the Senior Secured Notes Indenture.  
(f)    Amendment to the Definition of the Term "Defaulting Lender".  The definition of the term "Defaulting Lender" is hereby amended and restated to read in its entirety as follows:
"Defaulting Lender" – any Lender that (a) has failed to comply with its funding obligations hereunder, and such failure is not cured within three Business Days, unless, within such three Business Day period, such Lender notifies Agent and Borrower Agent in writing that such failure is the result of such Lender's good faith determination that a condition precedent to funding (specifically identified and including the particular Default, if any) has not been satisfied; (b) has notified Agent or any Borrower that such Lender does not intend to comply with its funding obligations hereunder or under any other credit facility, or has made a public statement to that effect; (c) has failed, within three Business Days following request by Agent or Borrower Agent, to confirm in a manner satisfactory to Agent and Borrower Agent that such Lender will comply with its funding obligations hereunder; or (d) has, or has a direct or indirect parent company that has, become the subject of a proceeding under any Insolvency Proceeding or Bail-In Action or taken any action in furtherance or acquiescence thereof; provided, however, that a Lender shall not be a Defaulting Lender solely by virtue of a Governmental 

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Authority's ownership of an Equity Interest in such Lender or parent company unless the ownership provides immunity for such Lender from jurisdiction of courts within the United States or from enforcement of judgments or writs of attachment on its assets, or permits such Lender or Governmental Authority to repudiate or otherwise to reject such Lender's agreements.  
(g)    Addition of Defined Term "EEA Financial Institution" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"EEA Financial Institution" – (a) any credit institution or investment firm established in an EEA Member Country that is subject to the supervision of an EEA Resolution Authority; (b) any entity established in an EEA Member Country that is a parent of an institution described in clause (a) above; or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in the foregoing clauses and is subject to consolidated supervision with its parent.  

(h)    Addition of Defined Term "EEA Member Country" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"EEA Member Country" – any of the member states of the European Union, Iceland, Liechtenstein and Norway.  

(i)    Addition of Defined Term "EEA Resolution Authority" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"EEA Resolution Authority" – any public administrative authority or any Person entrusted with public administrative authority of an EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

(j)    Addition of Defined Term "EU Bail-In Legislation Schedule" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"EU Bail-In Legislation Schedule" – the EU Bail-In Legislation Schedule published by the Loan Market Association, as in effect from time to time.  

(k)    Amendment to the Definition of the Term "Hedge Agreement Collateral".  The definition of the term "Hedge Agreement Collateral" is hereby amended and restated to read in its entirety as follows:

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"Hedge Agreement Collateral" – the "Collateral" as such term is defined in the "Collateral Trust Agreement" as such term is defined in the Hedge Intercreditor Agreement, as such Collateral Trust Agreement is in effect as of April 20, 2016, and without any amendment thereto or modification thereof except as may be consented to by Agent; provided, however, that in no event shall the "Hedge Agreement Collateral" include any Collateral.  
(l)    Amendment to the Definition of the Term "Hedge Intercreditor Agreement".  The definition of the term "Hedge Intercreditor Agreement" is hereby amended and restated to read in its entirety as follows:
"Hedge Intercreditor Agreement" – that certain Second Amended and Restated Intercreditor Agreement dated as of April 20, 2016, among MLP Parent and its Subsidiaries, Wilmington Trust, National Association as "Fixed Asset Collateral Trustee" and Agent, including any replacement thereof approved by Agent from time to time.  
(m)    Amendment to the Definition of the Term "IP License".  The definition of the term "IP License" is hereby amended and restated to read in its entirety as follows:
"IP License" – that certain Amended and Restated License to Use Intellectual Property Rights dated April 20, 2016, executed by MLP Parent and its Subsidiaries to Agent, for the benefit of Agent and Lenders, including any replacement thereof approved by Agent from time to time.
(n)    Amendment to the Definition of the Term "LIBOR".  The definition of the term "LIBOR" is hereby amended to add the following sentence to the end of such definition:
Notwithstanding the foregoing or anything to the contrary contained in this definition, in no event shall LIBOR be less than zero.
(o)    Amendment to the Definition of the Term "Senior Notes".  The definition of the term "Senior Notes" is hereby amended and restated to read in its entirety as follows:
"Senior Notes" – (a) $350,000,000 aggregate principal amount of 7.625% unsecured senior notes due 2022 issued pursuant to the 2013 Senior Notes Indenture (as defined in the definition of "Senior Notes Indentures"), (b) $900,000,000 aggregate principal amount of 6.50% unsecured senior notes due 2021 issued pursuant to the 2014 Senior Notes Indenture (as defined in the definition of "Senior Notes Indentures"), (c) $325,000,000 aggregate principal amount of 7.75% unsecured senior notes due 2023 issued pursuant to the 2015 Senior Notes Indenture (as defined in the definition of "Senior Notes Indentures"), and (d) any subsequent offering of unsecured senior notes, without regard to principal amount, having a maturity date that is at or after April 15, 2021, in each case issued by MLP Parent and Calumet Finance.  
(p)    Amendment to the Definition of the Term "Senior Notes Indentures".  The definition of the term "Senior Notes Indentures" is hereby amended and restated to read in its entirety as follows:

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"Senior Notes Indentures" – (a) that certain Indenture, dated as of November 26, 2013, by and among MLP Parent and Calumet Finance, as issuers, the "Guarantors" (as defined therein) and Wilmington Trust, National Association, as trustee (the "2013 Senior Notes Indenture"), (b) that certain Indenture, dated as of March 31, 2014, by and among MLP Parent and Calumet Finance, as issuers, the "Guarantors" (as defined therein) and Wilmington Trust, National Association, as trustee (the "2014 Senior Notes Indenture"), (c) that certain Indenture, dated as of March 27, 2015, by and among MLP Parent and Calumet Finance, as issuers, the "Guarantors" (as defined therein) and Wilmington Trust, National Association, as trustee (the "2015 Senior Notes Indenture"), and (d) any note purchase agreement, indenture or other agreement evidencing any other Senior Notes or any refinancing of the foregoing permitted by Section 9.2.3.  
(q)    Amendment to the Definition of the Term "Senior Notes Registration Rights Agreements".  The definition of the term "Senior Notes Registration Rights Agreements" is hereby amended and restated to read in its entirety as follows:
"Senior Notes Registration Rights Agreements" – (a) that certain Registration Rights Agreement dated November 26, 2013, among certain Borrowers, as issuers or guarantors of the Senior Notes, and the "Initial Purchasers" (as defined therein), (b) that certain Registration Rights Agreement dated March 31, 2014, among certain Borrowers, as issuers or guarantors of the Senior Notes, and the "Initial Purchasers" (as defined therein), (c) that certain Registration Rights Agreement dated March 27, 2015, among certain Borrowers, as issuers or guarantors of the Senior Notes, and the "Initial Purchasers" (as defined therein), and (d) any registration rights agreement or similar agreement relating to any other Senior Notes or any refinancing thereof permitted by Section 9.2.3.  
(r)    Addition of Defined Term "Senior Secured Notes" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"Senior Secured Notes" – up to $400,000,000 aggregate principal amount of 11.5% senior secured notes due 2021 issued by MLP Parent and Calumet Finance pursuant to the Senior Secured Notes Indenture.  

(s)    Addition of Defined Term "Senior Secured Notes Agreements" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"Senior Secured Notes Agreements" – the Senior Secured Notes, the Senior Secured Notes Indenture, the other "Note Documents" as such term is defined in the Senior Secured Notes Indenture, the "Fixed Asset Collateral Documents" as such term is defined in the Hedge Intercreditor Agreement and the "Collateral Trust Agreement" as such term is defined in the Hedge Intercreditor Agreement.

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(t)    Addition of Defined Term "Senior Secured Notes Indenture" and Definition Thereof. The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"Senior Secured Notes Indenture" – that certain Indenture, dated as of April 20, 2016, by and among MLP Parent and Calumet Finance, as issuers, the "Guarantors" (as defined therein) and Wilmington Trust, National Association as trustee.  

(u)    Addition of Defined Term "Write-Down and Conversion Powers" and Definition Thereof.  The following new defined term and its definition are hereby added to Section 1.1 of the Credit Agreement, which defined term shall appear in alphabetical order in Section 1.1 and which defined term and related definition shall read in their entirety as follows:
"Write-Down and Conversion Powers" – the write-down and conversion powers of the applicable EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which powers are described in the EU Bail-In Legislation Schedule.  

Section 2.2    Amendment and Restatement of Section 4.2.3 of the Credit Agreement.  Section 4.2.3 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
4.2.3    Status; Cure.  Agent may determine in its reasonable discretion that a Lender constitutes a Defaulting Lender and the effective date of such status shall be conclusive and binding on all parties, absent manifest error (provided that such right of determination by Agent shall not preclude Borrower Agent's right to make such a determination in accordance with the requirements of the definition of the term "Defaulting Lender").  Borrowers, Agent and Issuing Bank may agree in writing that a Lender has ceased to be a Defaulting Lender, whereupon Pro Rata shares shall be reallocated without exclusion of the reinstated Lender's Commitments and Loans, and the Revolver Usage and other exposures under the Revolver Commitments shall be reallocated among Lenders and settled by Agent (with appropriate payments by the reinstated Lender, including payment of any breakage costs for reallocated LIBOR Loans) in accordance with the readjusted Pro Rata shares.  Unless expressly agreed by Borrowers, Agent and Issuing Bank, or as expressly provided herein with respect to Bail-In Actions and related matters, no reallocation of Commitments and Loans to non-Defaulting Lenders or reinstatement of a Defaulting Lender shall constitute a waiver or release of claims against such Lender.  The failure of any Lender to fund a Loan, to make a payment in respect of LC Obligations or otherwise to perform its obligations hereunder shall not relieve any other Lender of its obligations under any Credit Document, and no Lender shall be responsible for default by another Lender.

Section 2.3    Addition of Section 7.7 of the Credit Agreement.  A new Section 7.7 is hereby added to the Credit Agreement, which Section shall immediately succeed Section 7.6 and immediately precede Section 8 of the Credit Agreement and shall read in its entirety as follows:
Section 7.7    Access to Premises, etc. and Certain Agreements relating to the Collateral Trust Agreement and the Fixed Asset Collateral.

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(a)    In addition to the rights and remedies under this Agreement and the other Credit Documents, upon the occurrence of an Event of Default and during the continuance thereof, Agent shall have the right to enter and remain upon the various premises of each Obligor without cost or charge to Agent, and use such premises, as well as all equipment, materials, supplies, books and records and other Property of such Obligor, for the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether by foreclosure, auction or otherwise.
(b)    Each Obligor hereby agrees that such Obligor shall not, without the prior written consent of Agent, agree to any amendment to or modification of the "Collateral Trust Agreement" or any other "Fixed Asset Collateral Document", as such terms are defined in the Hedge Intercreditor Agreement, (i) if such amendment or modification would, in any way, broaden the description of any property or assets that constitute a part of the "Fixed Asset Collateral" (as such term is defined in the Hedge Intercreditor Agreement) beyond the categories or types of collateral identified in or contemplated by such "Collateral Trust Agreement" or such other "Fixed Asset Collateral Documents", respectively, as each such document is in effect as of April 20, 2016, (ii) which would amend or modify the definition of the term "Working Capital Priority Collateral" or the term "Excluded Property" as each such term is contained in such "Collateral Trust Agreement" or any such other "Fixed Asset Collateral Document" as of April 20, 2016, if such amendment or modification would, in any way, narrow or limit the description of any property or assets that constitute a part of such "Working Capital Priority Collateral" or such "Excluded Property", respectively, as each such term is defined in such "Collateral Trust Agreement" or any such other "Fixed Asset Collateral Document" as of April 20, 2016, or (iii) which could reasonably be expected to be, in any way, materially adverse to Agent or any Secured Party.
Section 2.4    Amendment to Section 8.1.1 of the Credit Agreement.  Section 8.1.1 of the Credit Agreement is hereby amended to add the following sentence to the end of such section:
No Obligor is an EEA Financial Institution.

Section 2.5    Amendment and Restatement of Section 8.1.2 of the Credit Agreement.  Section 8.1.2 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
8.1.2   Authorization; No Contravention.  The execution, delivery and performance by each Obligor of each Credit Document to which such Person is party and the performance of its obligations thereunder (including, without limitation, the Borrowing of Loans, the request for issuance of Letters of Credit and the grant of Liens on the Collateral as security for the Obligations) have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) violate the terms of any of such Person's Organization Documents; (b) violate or result in any default or an event of default under or any breach or contravention of, or result in or require the creation of any Lien (other than the Liens created by this Agreement or the other Credit Documents) under, or require any payment to be made under (i) any Contractual Obligation (including, without limitation, any Senior Notes Agreement or any Senior Secured Notes Agreement) to which such Obligor is a party or affecting such Obligor or the Property of such Obligor or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Applicable Law.  In addition to and without limiting the generality of the foregoing, each Obligor represents and 

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warrants to Agent and Lenders that, in connection with each request for the funding of a Loan or the issuance of a Letter of Credit, such Loan or Letter of Credit (as applicable) is permitted as an incurrence of additional Indebtedness under each Senior Notes Agreement and each Senior Secured Notes Agreement.

Section 2.6    Amendment and Restatement of Clause (d) of Section 9.1.2 of the Credit Agreement.  Clause (d) of Section 9.1.2 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(d)    promptly after the furnishing thereof, copies of any financial information, proxy materials, statement, report or other information furnished to any holder of debt securities of any Obligor or any Restricted Subsidiary thereof pursuant to the terms of any indenture (including, without limitation, any Senior Notes Indenture or the Senior Secured Notes Indenture), loan or credit or similar agreement and not otherwise required to be furnished to Lenders pursuant to Section 9.1.1 or any other clause of this Section 9.1.2;
Section 2.7    Amendment and Restatement of Clause (i) of Section 9.1.2 of the Credit Agreement.  Clause (i) of Section 9.1.2 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(i)    at all times during which MLP Parent or any other Obligor is party to any Senior Notes Indenture or the Senior Secured Notes Indenture and Availability is less than 35% of the Borrowing Base then in effect, promptly, and in any event within 15 days following the end of each month, a certificate signed on behalf of Consolidated Parties by a Senior Officer of Borrower Agent or its general partner which certifies (which certification shall constitute a representation and warranty for  purposes of this Agreement) that at least 10% of the aggregate amount of secured Indebtedness then permitted to be incurred by MLP Parent and/or any other Obligor party thereto under each Senior Notes Indenture and the Senior Secured Notes Indenture then remains available to be incurred.
Section 2.8    Amendment and Restatement of Clause (a) of Section 9.1.3 of the Credit Agreement.  Clause (a) of Section 9.1.3 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(a)    Promptly notify Agent and each Lender in writing of the occurrence of (i) any Default or Event of Default and the nature thereof, or (ii) any default or event of default under any Senior Notes Indenture or the Senior Secured Notes Indenture.
Section 2.9    Amendment and Restatement of Clause (v) of Section 9.2.1 of the Credit Agreement.  Clause (v) of Section 9.2.1 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(v)    Liens on the Hedge Agreement Collateral securing Indebtedness permitted under Section 9.2.3(d) and/or securing the Senior Secured Notes, provided that the Hedge Intercreditor Agreement remains in effect at all times during the existence of such Liens;
Section 2.10    Amendment and Restatement of Clause (l) of Section 9.2.2 of the Credit Agreement.  Clause (l) of Section 9.2.2 of the Credit Agreement (exclusive of the proviso immediately succeeding such clause (l)) is hereby amended and restated to read in its entirety as follows:

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(l)    Investments in Senior Notes or Senior Secured Notes required by the terms of any Senior Notes Indenture or the Senior Secured Notes Indenture, respectively;
Section 2.11    Amendment and Restatement of Clause (b) of Section 9.2.3 of the Credit Agreement.  Clause (b) of Section 9.2.3 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(b)    Indebtedness of Obligors and their Restricted Subsidiaries outstanding on the Closing Date (or, in the case of the Senior Secured Notes, outstanding on April 20, 2016) and set forth in Schedule 9.2.3, and renewals, refinancings and extensions of all or any part thereof (subject to the following proviso, "Refinancing Indebtedness"); provided that (i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder, and (ii) the material terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms (other than pricing and yield), of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable, in the aggregate and taken as a whole, in any material respect to Obligors or Lenders than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended (it being understood that it shall be deemed a permitted refinancing under this Section 9.2.3(b) if funds, raised in a public offering of debt securities, are restricted to repayment of such Indebtedness, even if a period of up to 60 days (or a longer period to the extent that such funds are escrowed pursuant to arrangements satisfactory to Required Lenders) intervenes between the date such public offering closes and the date that the applicable Indebtedness is repaid from such funds);
Section 2.12    Amendment and Restatement of Initial Clause of Section 9.2.9 of the Credit Agreement.  The initial clause of Section 9.2.9 of the Credit Agreement (immediately succeeding the heading of such section and immediately preceding clause (a) of such section) is hereby amended and restated to read in its entirety as follows:
Enter into any Contractual Obligation (other than this Agreement and the Senior Notes Indentures as in effect on the Closing Date and the Senior Secured Notes Indenture as in effect on April 20, 2016, and, subject to the proviso below, Refinancing Indebtedness) that:
Section 2.13    Amendment and Restatement of Clause (a) of Section 9.2.11 of the Credit Agreement. Clause (a) of Section 9.2.11 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(a)    if on any date a Default or Event of Default has occurred and is continuing or would be directly or indirectly caused as a result thereof, or if the Prepayment Conditions are not satisfied at such date, make (or give any notice with respect thereto of) any voluntary, optional or other non-scheduled payment, prepayment (including any excess cash flow sweeps of Borrowed Money), redemption, acquisition for value (including, without limitation, by way of depositing money or securities with the trustee with respect thereto before due for the purpose of paying when due), refund, refinance or exchange of any Senior Notes or Senior Secured Notes or any Subordinated Indebtedness of any Obligor or Restricted Subsidiary, but excluding (i) any refinancing thereof permitted under Section 

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9.2.3, (ii) any payment made in satisfaction of any Obligor's or any Restricted Subsidiary's obligations with respect to the conversion or exchange of any debt securities convertible into or exchangeable, in whole or in part, for shares of capital stock of (or other ownership or profit interests in) any Obligor or any Restricted Subsidiary, in each case to the extent that (A) any such payment is made in lieu of fractional shares or (B) any such payment does not exceed the principal amount of the debt securities in respect of which the conversion or exchange right has been exercised, and (iii) any payment or prepayment made with respect to Indebtedness arising under any Senior Notes Agreement or any Senior Secured Notes Agreement upon the occurrence of a contingency such as, for example and not by way of limitation, an event of default, the destruction of assets or a change of control if (and only if) the applicable Senior Notes Agreement or Senior Secured Notes Agreement requires such prepayment; and
Section 2.14    Amendment and Restatement of Clause (a)(i) of Section 9.4.1 of the Credit Agreement.  Clause (a)(i) of Section 9.4.1 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(i)    any Restricted Subsidiary designated as an Unrestricted Subsidiary shall comply with all requirements contained in the definition of the term "Unrestricted Subsidiary" and shall concurrently also be designated as (and thereupon shall become) an "Unrestricted Subsidiary" pursuant to (and as defined by) each of the Senior Notes Indentures and the Senior Secured Notes Indenture;
Section 2.15    Amendment and Restatement of Clause (e) of Section 10.1 of the Credit Agreement.  Clause (e) of Section 10.1 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
(e)    Cross-Default.  (i) Any Obligor or Restricted Subsidiary (A) fails to make any payment when due after giving effect to any applicable grace period (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; (ii) there occurs under any Swap Contract an early termination date (as used or defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which any Obligor is the defaulting party (as used or defined in such Swap Contract) or (B) any termination event (as so used or defined) under such Swap Contract as to which any Obligor or any Restricted Subsidiary is an affected party (as so used or defined) and, in either event, the Swap Termination Value owed by such Obligor or such Subsidiary as a result thereof is (in the 

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aggregate and together with the Swap Termination Value owed by all other Obligors or Restricted Subsidiaries) greater than the Threshold Amount; or (iii) there occurs an event of default as such term is used or defined in any Senior Notes Indenture or the Senior Secured Notes Indenture; or
Section 2.16    Amendment and Restatement of Heading to Section 13.14 of the Credit Agreement.  The heading to Section 13.14 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
13.14    SUBMISSION TO JURISDICTION; WAIVER OF VENUE OBJECTION; SERVICE OF PROCESS; BAIL-IN OF EEA FINANCIAL INSTITUTIONS.
Section 2.17    Addition of Section 13.14.4 of the Credit Agreement.  A new Section 13.14.4 is hereby added to the Credit Agreement, which Section shall immediately succeed Section 13.14.3 and immediately precede Section 13.15 of the Credit Agreement and shall read in its entirety as follows:
Section 13.14.4    Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among the parties, each party hereto (including each Secured Party) acknowledges that any liability arising under a Credit Document of any Secured Party that is an EEA Financial Institution, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority, and agrees and consents to, and acknowledges and agrees to be bound by, (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising under any Credit Documents which may be payable to it by any Secured Party that is an EEA Financial Institution; and (b) the effects of any Bail-in Action on any such liability, including (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under any Credit Document; or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.
Section 2.18    Amendment and Restatement of Schedule 9.2.3 of the Credit Agreement.  Schedule 9.2.3 of the Credit Agreement is hereby amended and restated to read in its entirety as set forth on Second Amendment Schedule 9.2.3 attached hereto and incorporated herein by reference.
SECTION 3.      CONDITIONS PRECEDENT
Section 3.1    Conditions Precedent.  The effectiveness of this Amendment is subject to the satisfaction of each of the following conditions precedent (except if and to the extent that any such condition precedent shall have been waived by Agent and Required Lenders in writing):
(a)    Agent shall have received this Amendment as executed by each of the parties hereto, which parties shall include all Borrowers, all Guarantors (if any), Agent and at least Required Lenders; 

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT– Page 11

(b)    Agent shall have received certified resolutions of the board of directors or other applicable governing body of each Borrower or Guarantor (if any) which authorize the execution, delivery and performance of this Amendment by all Borrowers and Guarantors; 
(c)    The Senior Secured Notes Indenture shall have been executed and delivered by all parties thereto and the Senior Secured Notes shall have been issued pursuant thereto, and Agent shall have received a true, correct and complete copy of the Senior Secured Notes Indenture and the other Senior Secured Notes Agreements as certified by Borrower Agent, all of which shall be in form and substance reasonably satisfactory to Agent; 
(d)    The Hedge Intercreditor Agreement shall have been amended and restated in the form attached hereto as Exhibit A and Agent shall have received a counterpart thereof as executed by each of the parties thereto, and Agent shall be reasonably satisfied that the collateral which secures payment of the Senior Secured Notes consists only of the Hedge Agreement Collateral and does not consist of any Collateral; and
(e)    The IP License shall have been amended and restated in the form of Exhibit A to the Hedge Intercreditor Agreement and Agent shall have received a counterpart thereof as executed by each Obligor. 
SECTION 4.      MISCELLANEOUS
Section 4.1    Representations and Warranties.  Each of Obligors represents and warrants to Agent and Lenders that (a) all representations and warranties relating to such Obligor contained in the Credit Agreement or any other Credit Document are true and correct as of the date hereof as if made again on and as of the date hereof (except to the extent that such representations and warranties were expressly limited to another specific date, in which case they are true and correct as of such specific date), (b) no Default or Event of Default has occurred and is continuing (after giving effect to this Amendment), (c) such Obligor has all requisite corporate or other organizational power and authority (as applicable) to execute and deliver this Amendment, and (d) the execution and delivery of this Amendment by such Obligor has been duly authorized by all necessary corporate or other organizational action, and does not and will not violate or result in any breach or contravention of any Senior Notes Indenture, the Senior Secured Notes Indenture or other material Contractual Obligation to which such Obligor is a party or subject, any Organization Document of such Obligor or any Applicable Law.  
Section 4.2    Ratifications.  Except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and other Credit Documents are ratified and confirmed and shall continue in full force and effect.  Obligors, Lenders and Agent agree that the Credit Agreement and other Credit Documents shall continue to be legal, valid, binding and enforceable in accordance with their terms, except as enforceability may be limited by applicable Insolvency Proceedings and general principles of equity (whether enforcement is sought by proceedings in equity or at law).
Section 4.3    Reference to Credit Agreement, etc.  Each of the Credit Documents, including the Credit Agreement and any and all other agreements, documents or instruments now or hereafter executed and/or delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement as amended hereby, is hereby amended so that any reference in such Credit Document to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.  This Amendment shall constitute a Credit Document.

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT– Page 12

Section 4.4    Effect of Amendment.  Each Obligor hereby (a) agrees that this Amendment shall not limit or diminish the obligations of any Borrower or other Obligor under the Credit Agreement as amended hereby or under any other Credit Document, and (b) reaffirms all of its obligations under the Credit Agreement as amended hereby and each of the other Credit Documents.
Section 4.5    Severability.  If any provision of this Amendment is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby and (b) the parties hereto shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which is as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
Section 4.6    Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF ANOTHER LAW (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).
Section 4.7    Successors and Assigns.  This Amendment is binding upon and shall inure to the benefit of Obligors, Lenders and Agent and their respective successors and permitted assigns, except that none of Obligors may assign or transfer any of its rights or delegate any of its duties or obligations hereunder without the prior written consent of Agent and Lenders.
Section 4.8    Counterparts; Electronic Signatures.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Executed counterparts of a signature page to this Amendment may be delivered by facsimile or electronic messaging system, and if so delivered shall have the same force and effect as manually signed originals for all purposes.  
Section 4.9    Headings.  The headings and captions used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
Section 4.10    Entire Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT AND ALL OTHER CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENTS BETWEEN OR AMONG THE PARTIES HERETO AND THERETO RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF, AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO OR THERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES HERETO OR THERETO.

Section 4.11    Costs and Expenses.  Borrowers agree to pay all reasonable out of pocket costs and expenses of Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, all reasonable fees and expenses of Hunton & Williams LLP.
[Remainder of Page Intentionally Left Blank.]

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT– Page 13

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

	
		
	 
	BORROWERS:

	 
	CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.,
as a Borrower
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET LP GP, LLC,
as a Borrower
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET OPERATING, LLC,
as a Borrower
By:   Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET LUBRICANTS CO., LIMITED
PARTNERSHIP, as a Borrower

By:   Calumet LP GP, LLC, its general partner
   By:   Calumet Operating, LLC, its sole member
      By:    Calumet Specialty Products Partners, L.P., 
      its sole member
         By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	   
	CALUMET SHREVEPORT LUBRICANTS & WAXES, LLC,
as a Borrower
By:   Calumet Lubricants Co., Limited Partnership, 
   its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., 
   its sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:      Executive Vice President and 
   Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET SHREVEPORT FUELS, LLC,
as a Borrower
By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., 
its sole member
By:   Calumet GP, LLC, its general partner
By:          /s/ R. Patrick Murray, II
Name:     R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET SALES COMPANY INCORPORATED,
as a Borrower
By:        /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET PENRECO, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET FINANCE CORP.,
as a Borrower
By:        /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET SUPERIOR, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

                	
		
	 
	CALUMET MISSOURI, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

                    	
		
	 
	CALUMET PACKAGING, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

                	
		
	 
	ROYAL PURPLE, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

    

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET MONTANA REFINING, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

                    

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET SAN ANTONIO REFINING, LLC,
as a Borrower
By: Calumet Shreveport Fuels, LLC, its sole member 
By:    Calumet Lubricants Co., Limited Partnership, its sole member
By: Calumet LP GP, LLC, its general partner
By: Calumet Operating, LLC, its sole member
By: Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner

By:      /s/ R. Patrick Murray, II
Name: R.Patrick Murray, II
Title:   Executive Vice President and Chief
            Financial Office

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	BEL-RAY COMPANY, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	WELD CORPORATION,
as a Borrower
By:         /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	ADF HOLDINGS, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	ANCHOR DRILLING FLUIDS USA, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

    

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	CALUMET NORTH DAKOTA, LLC,
as a Borrower
By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	KURLIN COMPANY, LLC,
as a Borrower
By: Bel-Ray Company, LLC, its sole member
By:    Calumet Lubricants Co., Limited Partnership, its sole member
By: Calumet LP GP, LLC, its general partner
By: Calumet Operating, LLC, its sole member
By: Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner

By:      /s/ R. Patrick Murray, II
Name: R.Patrick Murray, II
Title:   Executive Vice President and Chief Financial Office

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	ANCHOR OILFIELD SERVICES, LLC,
as a Borrower
By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

	
		
	 
	AGENT AND LENDERS:

BANK OF AMERICA, N.A.,
as Agent, a Lender and an Issuing Bank
By:        /s/ Hance VanBeber
Name:   Hance VanBeber
Title:     Senior Vice President

	 
	 

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

`                        WELLS FARGO BANK, NATIONAL
ASSOCIATION, 
as Co-Syndication agent and a Lender

By:        /s/ Mark Bradford
Name:    Mark Bradford
Title:    Duly Authorized Signatory

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

JPMORGAN CHASE BANK, N.A.,
as Co-Syndication Agent and a Lender
By:      /s/ Christy L. West
Name: Christy L. West
Title:   Authorized Officer

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender
By:       /s/ Shai Bander
Name:  Shai Bander
Title:    Vice President

By:       /s/ Susana Fornies
Name:  Susana Fornies
Title:    Assistant Vice President

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

PNC BANK, NATIONAL ASSOCIATION,
as Co-Documentation Agent and a Lender
By:                     
Name:                    
Title:                     

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

U.S. BANK NATIONAL ASSOCIATION,
as a Lender
By:                     
Name:                    
Title:                     

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

REGIONS BANK, as a Lender
By:       /s/ Stephen J. McGreevy
Name:  Stephen J. McGreevy
Title:    Managing Director

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

BARCLAYS BANK PLC, as a Lender
By:        /s/ Marguerite Sutton
Name:  Marguerite Sutton
Title:    Vice President

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

NATIXIS, as a Lender
By:       /s/ Carlos Quinteros
Name: Carlos Quinteros
Title:   Managing Director

By:       /s/ Jarrett C. Price
Name: Jarrett C. Price
Title:   Director

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

COMPASS BANK, as a Lender
By:                     
Name:                    
Title:                     

GOLDMAN SACHS BANK USA, as a Lender
By:       /s/ Jerry Li
Name:  Jerry Li
Title:    Authorize Signatory

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

ROYAL BANK OF CANADA, as a Lender
By:                     
Name:                    
Title:                     

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

SIEMENS FINANCIAL SERVICES, as a Lender
By:                     
Name:                    
Title:                     

By:                     
Name:                    
Title:                     

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

BMO HARRIS BANK, N.A., as a Lender
By:       /s/ Kara Goodwin
Name:  Kara Goodwin
Title:    Managing Director

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

THE BANK OF TOKYO-MITSUBISHI UFJ, 
as a Lender
By:                     
Name:                    
Title:                     

Signature Page to Second Amendment to Second Amended and Restated Credit Agreement

SECOND AMENDMENT SCHEDULE 9.2.3
Schedule 9.2.3.  
to the 
Credit Agreement
EXISTING INDEBTEDNESS
		
	1.
	$350,000,000 Senior Notes due 2022 issued pursuant to the 2013 Senior Notes Indenture.

		
	2.
	$900,000,000 Senior Notes due 2021 issued pursuant to the 2014 Senior Notes Indenture.

		
	3.
	$325,000,000 Senior Notes due 2023 issued pursuant to the 2015 Senior Notes Indenture.

		
	4.
	$46,059,855 in outstanding capital leases.

		
	5.
	Up to $400,000,000 Senior Secured Notes due 2021 issued pursuant to the Senior Secured Notes Indenture. 

SCHEDULE 9.2.3 – Solo Page 

EXHIBIT A
to the
Second Amendment to Second Amended and Restated Credit Agreement

HEDGE INTERCREDITOR AGREEMENT

EXHIBIT A – Cover Page 

EXECUTION VERSION

SECOND AMENDED AND RESTATED 
INTERCREDITOR AGREEMENT

among

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.,
as the Company and as a Grantor,

and

CERTAIN SUBSIDIARIES OF THE COMPANY,
as Grantors,

and

BANK OF AMERICA, N.A.,
as the Working Capital Agent

and

WILMINGTON TRUST, NATIONAL ASSOCIATION,
as the Fixed Asset Collateral Trustee

Dated as of April 20, 2016

SECOND AMENDED AND RESTATED
INTERCREDITOR AGREEMENT

THIS SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT (this "Agreement"), dated as of April 20, 2016, is entered into by and among CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. (the "Company"), those certain subsidiaries of the Company from time to time party hereto (the "Subsidiary Loan Parties" and, together with the Company, the "Loan Parties"), WILMINGTON TRUST, NATIONAL ASSOCIATION, in its capacity as collateral trustee for the Fixed Asset Secured Parties referenced below (in such capacity, together with its successors and assigns, the "Fixed Asset Collateral Trustee"), and BANK OF AMERICA, N.A., in its capacity as agent for the Working Capital Lenders referenced below (in such capacity, together with its successors and assigns, the "Working Capital Agent").

RECITALS:

A.    Calumet Lubricants Co., Limited Partnership, certain of its affiliates, Bank of America, N.A., in its capacity as administrative agent for the Secured Hedge Counterparties (as defined in the Existing Intercreditor Agreement), and the Working Capital Agent are parties to that certain Amended and Restated Intercreditor Agreement dated as of April 21, 2011 (the "Existing Intercreditor Agreement"); and 

B.    The parties hereto (including each of the parties to the Existing Intercreditor Agreement) desire to amend and restate the Existing Intercreditor Agreement on the terms set forth herein.

NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and other good and valuable consideration, the existence and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

SECTION 1    Definitions.

1.1    Defined Terms.  Capitalized terms used but not otherwise defined herein have the meanings set forth therefor in the Collateral Trust Agreement.  As used in the Agreement, the following terms shall have the following meanings:
"Account" has the meaning set forth in the UCC, including all rights to payment for goods sold or leased, or for services rendered.

"Affiliate" means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls (as defined in the Working Capital Credit Agreement as amended from time to time) or is Controlled (as defined in the Working Capital Credit Agreement as amended from time to time) by or is under common Control (as defined in the Working Capital Credit Agreement as amended from time to time) with the Person specified.

"Agent" means the Working Capital Agent or the Fixed Asset Collateral Trustee, as applicable.

"Agreement" means this Second Amended and Restated Intercreditor Agreement, as amended, renewed, extended, supplemented or otherwise modified from time to time in accordance with the terms hereof.

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 1

"Bankruptcy Code" means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded or replaced from time to time.

"Bankruptcy Law" means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

"Business Day" means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, the state of New York.

"Capital Stock" means (a) in the case of a corporation, capital stock, (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited), (d) in the case of a limited liability company, membership interests and (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

"Claimholders" means the Fixed Asset Claimholders and the Working Capital Claimholders.

"Collateral Trust Agreement" means that certain Amended and Restated Collateral Trust Agreement dated as of the date hereof, as amended, restated, supplemented or otherwise modified from time to time as may be permitted by the Working Capital Credit Agreement, by and among the Company, the Subsidiary Loan Parties, Wilmington Trust, National Association as Trustee, the other Parity Lien Representatives (as defined therein) party thereto and the Fixed Asset Collateral Trustee.  

"Company" has the meaning set forth in the introductory paragraph of this Agreement.

"Credit Documents" means the Fixed Asset Loan Documents and the Working Capital Credit Documents.

"Discharge of Obligations" means the Discharge of Fixed Asset Collateral Obligations or the Discharge of Working Capital Obligations, as applicable.

"Discharge of Fixed Asset Collateral Obligations" means (a) the payment in full in cash (or, with respect to any Fixed Asset Collateral Obligations constituting obligations under hedging agreements, collateralization with "Eligible Collateral" (as defined in the applicable Fixed Asset Loan Document)) and discharge of all Fixed Asset Collateral Obligations, (b) the termination or expiration of all commitments to extend credit under all Fixed Asset Loan Documents and (c) the termination, cancellation or cash collateralization of all outstanding letters of credit issued pursuant to any Fixed Asset Loan Documents in accordance with the terms thereof.  

"Discharge of Working Capital Obligations" means (a) the payment in full in cash and discharge of the principal of and interest (including interest accruing on or after the commencement of any Insolvency or Liquidation Proceeding, whether or not a claim for such interest is, or would be, allowed in such Insolvency or Liquidation Proceeding) and premium, if any, on all obligations outstanding under the Working Capital Credit Documents and the termination or expiration of all commitments to lend or otherwise extend credit under the Working Capital Credit Documents, (b) the payment in full in cash and discharge of all other Working Capital Obligations that are due and payable or otherwise accrued and owing at or prior to the time 

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such principal and interest are paid (including legal fees and other expenses, costs or charges accruing on or after the commencement of any Insolvency or Liquidation Proceeding, whether or not a claim for such fees, expenses, costs or charges is, or would be, allowed in such Insolvency or Liquidation Proceeding), (c) the termination, cancellation or cash collateralization (in an amount reasonably satisfactory to the Working Capital Collateral Agent) of all letters of credit issued under the Working Capital Credit Documents and (d) the termination, cancellation or cash collateralization (in an amount reasonably satisfactory to the Working Capital Agent) of any interest rate hedge agreement and the payment in full in cash of all obligations owing with respect thereto.  

"Existing Working Capital Credit Agreement" means that certain Second Amended and Restated Credit Agreement dated as of July 14, 2014, as amended, restated supplemented or otherwise modified from time to time, by and among the Company, the Subsidiary Loan Parties, the Working Capital Lenders and the Working Capital Agent.

"Existing Intercreditor Agreement" has the meaning provided in Recital A to this Agreement.

"Fixed Asset Claimholders" means, at any relevant time, the holders of the Fixed Asset Collateral Obligations at such time, and shall include the Fixed Asset Collateral Trustee.

"Fixed Asset Collateral" means all of the assets and property of any Grantor, whether real, personal or mixed, with respect to which a Lien is granted as security for the Fixed Asset Collateral Obligations.

"Fixed Asset Collateral Documents" means the Parity Lien Security Documents (as defined in the Collateral Trust Agreement) and any other agreement, document or instrument pursuant to which a Lien is granted to secure any Fixed Asset Collateral Obligation or under which rights or remedies with respect to such Liens are governed.

"Fixed Asset Collateral Obligations" means all Obligations (as defined in the Collateral Trust Agreement) under any Fixed Asset Loan Document.  "Fixed Asset Collateral Obligations" shall include, without limitation, all principal, premium, if any, interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization, whether or not a claim for post-filing interest is allowed in such proceeding), penalties, fees, charges, expenses, indemnifications, reimbursement obligations, damages, guarantees and other liabilities or amounts payable under the Fixed Asset Loan Documents and any indebtedness in respect thereto.

"Fixed Asset Collateral Trustee" has the meaning set forth in the introductory paragraph of this Agreement.

"Fixed Asset Loan Documents" means the Parity Lien Documents (as defined in the Collateral Trust Agreement).

"Fixed Asset Secured Parties" means the Parity Lien Secured Parties (as defined in the Collateral Trust Agreement).

"Grantors" means the Company and each of its Subsidiaries and other Affiliates (including, without limitation, the Subsidiary Loan Parties) that has executed and delivered, or may from time to time hereafter execute and deliver, a Working Capital Collateral Document or a Fixed Asset Collateral Document (or any joinder with respect to any of the foregoing).

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"Insolvency or Liquidation Proceeding" means any case or proceeding commenced by or against a Person under any state, federal or foreign law for, or any agreement of such Person to, (a) the entry of an order for relief under the Bankruptcy Code, or any other Bankruptcy Law or insolvency, debtor relief or debt adjustment law; (b) the appointment of a receiver, trustee, liquidator, administrator, conservator or other custodian for such Person or any part of its Property; or (c) an assignment or trust mortgage for the benefit of creditors. 

"IP License" has the meaning provided in Section 3 hereof.

"Lien" means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, preference, priority, security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).

"Loan Parties" has the meaning set forth in the introductory paragraph of this Agreement.

"Obligations" means the Fixed Asset Collateral Obligations and/or the Working Capital Obligations, as applicable.

"Person" means and includes natural persons, corporations, limited partnerships, general partnerships, limited liability companies, limited liability partnerships, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, and Governmental Authorities (as defined in the Working Capital Credit Agreement as amended from time to time).

"Property" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

"Secured Notes Indenture" means the Indenture dated as of the date hereof (as amended, supplemented, amended and restated or otherwise modified from time to time) by and among the Company and Calumet Finance Corp., as issuers, the other Subsidiary Loan Parties and Wilmington Trust, National Association, as trustee (in such capacity and together with its successors in such capacity, the "Secured Notes Trustee").

"Secured Notes Trustee" has the meaning provided in the definition of Secured Notes Indenture.

"Subsidiary" of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of Capital Stock having ordinary voting power for the election of directors or other governing body (other than Capital Stock having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Company.

"Subsidiary Loan Parties" has the meaning set forth in the introductory paragraph of this Agreement.
  
"Working Capital Agent" has the meaning set forth in the introductory paragraph of this Agreement.

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"Working Capital Claimholders" means, at any relevant time, the holders of the Working Capital Obligations at such time, including without limitation the Working Capital Lenders and any agent under the Working Capital Credit Agreement, including the Working Capital Agent.

"Working Capital Collateral" means all of the assets and property of any Grantor, whether real, personal or mixed, with respect to which a Lien is granted as security for any Working Capital Obligations.

"Working Capital Collateral Documents" means the Collateral Documents (as defined in the Working Capital Credit Agreement as amended from time to time) and any other agreement, document or instrument pursuant to which a Lien is granted securing any Working Capital Obligations or under which rights or remedies with respect to such Liens are governed.

"Working Capital Credit Agreement" means (a) the Existing Working Capital Credit Agreement and (b) any other credit agreement, loan agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any indebtedness or other financial accommodation that has been incurred to extend, increase (subject to the limitations set forth herein) or refinance in whole or in part the indebtedness and other obligations outstanding under the (i) Existing Working Capital Credit Agreement or (ii) any replacement (whether one or more) of the Existing Working Capital Credit Agreement, unless such agreement or instrument expressly provides that it is not intended to be and is not a Working Capital Credit Agreement hereunder.  Any reference to the Working Capital Credit Agreement hereunder shall be deemed a reference to any Working Capital Credit Agreement then in existence.

"Working Capital Credit Documents" means the Working Capital Credit Agreement and the Credit Documents (as defined in the Working Capital Credit Agreement as amended from time to time in accordance herewith) and each of the other agreements, documents and instruments providing for or evidencing any other Working Capital Obligation, and any other document or instrument executed or delivered at any time in connection with any Working Capital Obligations, including any intercreditor or joinder agreement among holders of Working Capital Obligations, to the extent such are effective at the relevant time, as each may be amended or modified from time to time in accordance with this Agreement.

"Working Capital Lenders" means the "Lenders" under and as defined in the Working Capital Credit Agreement.

"Working Capital Obligations" means all Obligations (as defined in the Working Capital Credit Agreement).  "Working Capital Obligations" shall include, without limitation, (a) all principal, premium, if any, reimbursement obligations, interest accrued or accruing (or which would, absent commencement of an Insolvency or Liquidation Proceeding, accrue) in accordance with the relevant Working Capital Credit Document and (b) all fees, costs, expenses, indemnifications, damages, guarantees and charges and other liabilities or amounts incurred in connection with the Working Capital Credit Documents and provided for thereunder, in the case of each of clause (a) and clause (b) whether before or after commencement of an Insolvency or Liquidation Proceeding and irrespective of whether any claim for such interest, fees, costs, expenses, indemnifications, damages, guarantees, charges or other liabilities or amounts is allowed as a claim in such Insolvency or Liquidation Proceeding.  

1.2    Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation."  The word "will" shall be construed to have 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 5

the same meaning and effect as the word "shall".  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (unless such amendment, supplement or modification is not permitted hereunder), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Exhibits or Sections shall be construed to refer to Exhibits or Sections of this Agreement and (e) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
SECTION 2    Access to Fixed Asset Collateral.  
(a)    In the event the Fixed Asset Collateral Trustee shall acquire control or possession of any of the Fixed Asset Collateral or shall, through the exercise of remedies under the Fixed Asset Collateral Documents or otherwise, sell any of the Fixed Asset Collateral to any third party (a "Third Party Purchaser"), the Fixed Asset Collateral Trustee shall, to the extent permitted by law, permit the Working Capital Agent (or shall require as a condition of such sale to the Third Party Purchaser that the Third Party Purchaser agree to permit the Working Capital Agent), at the Working Capital Agent's option:  (i) to enter any of the premises of any Grantor (or Third Party Purchaser) constituting such Fixed Asset Collateral under such control or possession (or sold to a Third Party Purchaser) in order to inspect, remove or take any action with respect to the Working Capital Collateral or to enforce the Working Capital Agent's rights or remedies with respect thereto, including, but not limited to, the examination and removal of Working Capital Collateral and the examination and duplication of any Property (to the extent not Working Capital Collateral) under such control or possession (or sold to a Third Party Purchaser) consisting of books and records of any Grantor related to the Working Capital Collateral; (ii) to use such Property for the purpose of manufacturing or processing raw materials or work‐in‐process into finished inventory; (iii) to use any of the Property under such control or possession (or sold to a Third Party Purchaser) consisting of computers or other data processing equipment related to the storage or processing of records, documents or files pertaining to the Working Capital Collateral and to use any of the Property under such control or possession (or sold to a Third Party Purchaser) consisting of other equipment to handle, deal with or dispose of any Working Capital Collateral pursuant to the Working Capital Agent's rights or remedies as set forth in the Working Capital Credit Documents, the Uniform Commercial Code of any applicable jurisdiction and other applicable law, and (iv) to use any of the Property consisting of intellectual property rights owned or controlled by the Fixed Asset Collateral Trustee or the other Fixed Asset Claimholders as is or may be necessary for the Working Capital Agent to liquidate the Working Capital Collateral.  Such use by Working Capital Agent of such Property shall not be on an exclusive basis. 
(b)    The Working Capital Agent hereby acknowledges, for itself and on behalf of the other Working Capital Claimholders, that, during the period any Working Capital Collateral shall be under control or possession of the Fixed Asset Collateral Trustee, the Fixed Asset Collateral Trustee shall not be obligated to take any action to protect or to procure insurance with respect to such Working Capital Collateral, it being understood that the Fixed Asset Collateral Trustee shall not have any responsibility for loss or damage to the Working Capital Collateral (other than as a result of the gross negligence or willful misconduct of the Fixed Asset Collateral Trustee or its agents (as applicable), as determined by a final non‐appealable judgment of a court of competent jurisdiction) and that all the risk of loss or damage to the Working Capital Collateral shall remain 

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with the Working Capital Claimholders; provided, that, to the extent insurance obtained by the Fixed Asset Collateral Trustee provides coverage for risks relating to access to or use of any Working Capital Collateral, the Working Capital Agent will be made an additional named insured or a loss payee (as applicable) thereunder.
(c)    The rights of the Working Capital Agent set forth in clauses (i), (ii) and (iii) of Section 2(a) above (but, for the avoidance of doubt, not the rights of the Working Capital Agent set forth in clause (iv) of Section 2(a) above, which rights shall continue until all Working Capital Collateral is so liquidated) shall continue until the later of (i) 180 days after the date Working Capital Agent receives written notice from the Fixed Asset Collateral Trustee that the Fixed Asset Collateral Trustee has control or possession of the Fixed Asset Collateral at issue and (ii) the sale or other disposition of such Fixed Asset Collateral by the Fixed Asset Collateral Trustee or the Fixed Asset Claimholders.  Such time period shall be tolled during the pendency of any Insolvency or Liquidation Proceeding of any Grantor or other proceedings pursuant to which the Working Capital Agent or the other Working Capital Claimholders are effectively stayed from enforcing their rights against the Working Capital Collateral.  In no event shall any Fixed Asset Claimholder take any action to interfere with, limit or restrict the rights of the Working Capital Agent or the exercise of such rights by the Working Capital Agent to have access to or to use any of such Collateral pursuant to Section 2(a) prior to the expiration of such period.
(d)    During the actual occupation by the Working Capital Agent, its agents or representatives of any real property constituting Fixed Asset Collateral during the access and use period permitted by Section 2(a) and Section 2(b) above, the Working Capital Claimholders shall be obligated to pay to the Fixed Asset Collateral Trustee any rent payable to third parties and all utilities, taxes and other maintenance and operating costs of such real property during any such period of actual occupation by the Working Capital Agent, but only to the extent the Fixed Asset Claimholders are required to pay or are otherwise paying any such rent, utilities, taxes or other maintenance and operating costs during the actual occupation of such real property by the Working Capital Agent, its agents or representatives.  
SECTION 3    Consent to Limited License.  The Fixed Asset Collateral Trustee, for itself and on behalf of the other Fixed Asset Claimholders, (a) acknowledges and consents to the grant to the Working Capital Agent by the Company and the Subsidiary Loan Parties on the date hereof of a limited, non-exclusive royalty-free license in the form of Exhibit A hereto (the "IP License") and (b) agrees that its Liens in the Fixed Asset Collateral shall be subject to the IP License.  Furthermore, the Fixed Asset Collateral Trustee, for itself and on behalf of the other Fixed Asset Claimholders, agrees that, in connection with any foreclosure sale conducted by the Fixed Asset Collateral Trustee or any other Fixed Asset Claimholder in respect of any Fixed Asset Collateral of the type described in the IP License (the "IP Collateral"), (i) any notice required to be given by the Fixed Asset Collateral Trustee or any other Fixed Asset Claimholder in connection with such foreclosure shall contain an acknowledgement that the Fixed Asset Collateral Trustee's Lien is subject to the IP License, (ii) the Fixed Asset Collateral Trustee or other Fixed Asset Claimholder (as applicable) shall deliver a copy of the IP License to any purchaser at such foreclosure and provide written notice to such purchaser that the Fixed Asset Collateral Trustee's Lien and the purchaser's rights in the transferred IP Collateral are subject to the IP License and (iii) the purchaser shall acknowledge in writing that it purchased the IP Collateral subject to the IP License.
SECTION 4    Insurance Proceeds.  To the extent that the Working Capital Agent and the Fixed Asset Collateral Trustee shall be named as additional insureds and as loss payee (on behalf of the Working Capital Claimholders and the Fixed Asset Claimholders, respectively) under any insurance policies 

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maintained from time to time by any Grantor, the parties hereto agree that (as between the Fixed Asset Collateral Trustee and the Fixed Asset Claimholders, on the one hand, and the Working Capital Agent and the Working Capital Claimholders, on the other hand) (a) the Fixed Asset Collateral Trustee (solely upon an Act of Parity Lien Debtholders) and the Fixed Asset Claimholders shall have the sole and exclusive right (i) to adjust or settle any insurance policy or claim in the event of any loss with respect to the Fixed Asset Collateral and (ii) to approve any award granted in any condemnation or similar proceeding affecting the Fixed Asset Collateral, in each case, subject to the terms of the Fixed Asset Loan Documents, and (b) the Working Capital Agent and the Working Capital Claimholders shall have the sole and exclusive right (i) to adjust or settle any insurance policy or claim in the event of any loss with respect to the Working Capital Collateral and (ii) to approve any award granted in any condemnation or similar proceeding affecting the Working Capital Collateral, in each case, subject to the terms of the Working Capital Credit Documents.  If the Working Capital Agent or any Working Capital Claimholder shall, at any time, receive any proceeds of any insurance policy or any award with respect to any Fixed Asset Collateral, it shall pay such proceeds to the Fixed Asset Collateral Trustee and promptly notify the Company of such payment.  If the Fixed Asset Collateral Trustee or any Fixed Asset Claimholder shall, at any time, receive any proceeds of any insurance policy or award with respect to any Working Capital Collateral, it shall pay such proceeds to the Working Capital Agent and promptly notify the Company of such payment.  
SECTION 5    Miscellaneous.
5.1    Conflicts.  In the event of any conflict between the provisions of this Agreement and the provisions of the Fixed Asset Loan Documents or the Working Capital Credit Documents, the provisions of this Agreement shall govern and control.  The parties hereto acknowledge that the terms of this Agreement are not intended to negate any specific rights granted to the Company in the Fixed Asset Loan Documents or the Working Capital Credit Documents.
5.2    Effectiveness; Continuing Nature of this Agreement; Severability.  This Agreement shall become effective when executed and delivered by the parties hereto.  The terms of this Agreement shall survive, and shall continue in full force and effect, in any Insolvency or Liquidation Proceeding.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  All references to the Company or any other Grantor shall include the Company or such Grantor, as applicable, as debtor and debtor-in-possession and any receiver or trustee for the Company or any other Grantor (as the case may be) in any Insolvency or Liquidation Proceeding.  This Agreement shall terminate and be of no further force and effect upon the earliest to occur of the Discharge of Fixed Asset Collateral Obligations (in accordance with the provisions hereof) or the Discharge of Working Capital Obligations (in accordance with the provisions hereof).
5.3    Amendments; Waivers.  No amendment, modification or waiver of any of the provisions of this Agreement by the Working Capital Agent or the Fixed Asset Collateral Trustee shall be deemed to be made unless the same shall be in writing signed on behalf of each party hereto or its authorized agent, and each such waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair the rights of the parties making such waiver or the obligations of the other parties to such party in any other respect or at any other time.  Notwithstanding the foregoing, neither the Company nor any other Subsidiary Loan Party shall have any right to consent to or approve any amendment, modification or waiver of any provision of this Agreement except to the extent its rights or obligations are directly affected.  
5.4    Information Concerning Financial Condition of the Company and its Subsidiaries.

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(a)    The Fixed Asset Collateral Trustee and the Fixed Asset Claimholders, on the one hand, and the Working Capital Agent and the Working Capital Claimholders, on the other hand, shall each be responsible for keeping themselves informed of (i) the financial condition of the Company and its Subsidiaries and all endorsers or guarantors of the Fixed Asset Collateral Obligations or the Working Capital Obligations and (ii) all other circumstances bearing upon the risk of nonpayment of the Fixed Asset Collateral Obligations or the Working Capital Obligations.  The Fixed Asset Collateral Trustee and the Fixed Asset Claimholders shall have no duty to advise the Working Capital Agent or any Working Capital Claimholder of information known to it or them regarding such condition or any such circumstances or otherwise, and the Working Capital Agent and the Working Capital Claimholders shall have no duty to advise the Fixed Asset Collateral Trustee or any Fixed Asset Claimholder of information known to it or them regarding such condition or any such circumstances or otherwise.  In the event the Fixed Asset Collateral Trustee or any Fixed Asset Claimholder, in its or their sole discretion, undertakes at any time or from time to time to provide any such information to the Working Capital Agent or any Working Capital Claimholder, or the Working Capital Agent or any Working Capital Claimholder, in its or their sole discretion, undertakes at any time or from time to time to provide any such information to the Fixed Asset Collateral Trustee or any Fixed Asset Claimholder, it or they shall be under no obligation (A) to make, and such party shall not make, any express or implied representation or warranty, including with respect to the accuracy, completeness, truthfulness or validity of any such information so provided, (B) to provide any additional information or to provide any such information on any subsequent occasion, (C) to undertake any investigation or (D) to disclose any information which, pursuant to accepted or reasonable commercial finance practices, such party wishes to maintain confidential or is otherwise required to maintain confidential.
(b)    The Grantors agree that any information provided to any Fixed Asset Claimholder or any Working Capital Claimholder may be shared by such Person with any other such Claimholder notwithstanding any request or demand by such Grantor that such information be kept confidential; provided, that such information shall otherwise be subject to the respective confidentiality provisions in the Working Capital Credit Agreement and the Fixed Asset Loan Documents, as applicable.
5.5    Subrogation.  Each Agent, for itself and on behalf of the Claimholders for which it acts as Agent, hereby waives any rights of subrogation it may acquire as a result of any payment hereunder until the Discharge of Obligations has occurred with respect to the other group of Claimholders.
5.6    [Reserved]
5.7    SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.  
(a)    ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING HERETO MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK TO THE EXTENT PERMITTED BY APPLICABLE LAW.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW (i) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NON‐EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (ii) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (iii) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT 

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REQUESTED, TO THE APPLICABLE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 5.8; AND (iv) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (iii) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.
(b)    EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER HEREOF, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT IT HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT IT WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.  EACH PARTY HERETO FURTHER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 5.7(b) AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
5.8    Notices.  All notices to the Fixed Asset Claimholders and the Working Capital Claimholders permitted or required under this Agreement shall also be sent to the Fixed Asset Collateral Trustee and the Working Capital Agent, respectively.  Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given shall be in writing and may be personally served, electronically mailed or sent by courier service or U.S. mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of electronic mail or four Business Days after deposit in the U.S. mail (registered or certified, with postage prepaid and properly addressed).  For the purposes hereof, the addresses of the parties hereto shall be as set forth below each party's name on the signature pages hereto, or, as to each party, at such other address as may be designated by such party in a written notice to all of the other parties.
5.9    Further Assurances.  Each of the Working Capital Agent, on behalf of itself and the Working Capital Claimholders, the Fixed Asset Collateral Trustee, on behalf of itself and the Fixed Asset Claimholders, the Company and the other Grantors agrees that it shall take such further action and shall execute and deliver such additional documents and instruments (in recordable form, if requested) as the Working Capital Agent or the Fixed Asset Collateral Trustee may reasonably request to effectuate the terms of and the lien priorities contemplated by this Agreement.

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5.10    APPLICABLE LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
5.11    Binding on Successors and Assigns.  This Agreement shall be binding upon the Working Capital Agent, the other Working Capital Claimholders, the Fixed Asset Collateral Trustee, the other Fixed Asset Claimholders, the Company and the Subsidiary Loan Parties and their respective successors and assigns.
5.12    Specific Performance.  Each of the Working Capital Agent and the Fixed Asset Collateral Trustee may demand specific performance of this Agreement.  Each of the Working Capital Agent, on behalf of itself and the other Working Capital Claimholders, and the Fixed Asset Collateral Trustee, on behalf of itself and the other Fixed Asset Claimholders, hereby irrevocably waives any defense based on the adequacy of a remedy at law and any other defense which might be asserted to bar the remedy of specific performance in any action which may be brought by the Working Capital Agent or the Fixed Asset Collateral Trustee, as the case may be.
5.13    Headings.  Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect.
5.14    Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Agreement or any document or instrument delivered in connection herewith by telecopy or email shall be effective as delivery of a manually executed counterpart of this Agreement or such other document or instrument, as applicable.
5.15    Authorization.  By its signature, each Person executing this Agreement on behalf of a party hereto represents and warrants to the other parties hereto that it is duly authorized to execute this Agreement on behalf of such party.
5.16    No Third Party Beneficiaries.  This Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and its respective successors and assigns and shall inure to the benefit of each of the Working Capital Agent, the other Working Capital Claimholders, the Fixed Asset Collateral Trustee, the other Fixed Asset Claimholders, the Company and the other Grantors.  No other Person shall have or be entitled to assert any rights or benefits hereunder.
5.17    Provisions Solely to Define Relative Rights.  The provisions of this Agreement are and are intended solely for the purpose of defining the relative rights of the Working Capital Claimholders on the one hand and the Fixed Asset Claimholders on the other hand.  Nothing in this Agreement is intended to or shall impair the rights of the Company or any other Grantor, or the obligations of the Company or any other Grantor, which obligations are absolute and unconditional, to pay the Working Capital Obligations and the Fixed Asset Collateral Obligations as and when the same shall become due and payable in accordance with their terms.
5.18    Joinder of Future Subsidiaries of the Company.  The Company will cause each of its Subsidiaries which hereafter becomes an "Obligor" under the Working Capital Credit Agreement, promptly upon becoming such an "Obligor", to become a party to this Agreement as a Subsidiary Loan Party and a Grantor, for all purposes of this Agreement, and to become a "Grantor" under the IP License, in each case 

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by causing such Subsidiary to execute and deliver to the Working Capital Agent and the Fixed Asset Collateral Trustee a joinder agreement or joinder agreements in form and substance reasonably satisfactory to the Working Capital Agent, whereupon such Subsidiary will be bound by all terms and provisions of this Agreement and the IP License to the same extent as if it had executed and delivered this Agreement and the IP License as of the date hereof.
5.19    Consent of the Company and the Subsidiary Loan Parties.  Each of the Company and the Subsidiary Loan Parties agrees and consents to all terms and provisions of this Agreement.
5.20    Certain Agreements relating to a Successor Collateral Trustee under the Collateral Trust Agreement.  Each of the Company, the Subsidiary Loan Parties and the Fixed Asset Collateral Trustee hereby agrees that, as a condition to, in connection with and promptly upon any resignation or removal of the Fixed Asset Collateral Trustee as "Collateral Trustee" under the Collateral Trust Agreement, it shall cause the successor "Collateral Trustee" thereunder to expressly assume in writing all obligations of the Fixed Asset Collateral Trustee hereunder pursuant to a written acknowledgement in form and substance reasonably satisfactory to the Working Capital Agent.
5.21    Consent and Release of Bank of America, N.A. as Administrative Agent for the Secured Hedge Counterparties under the Existing Intercreditor Agreement.  Bank of America, N.A. in its capacity as administrative agent for the Secured Hedge Counterparties (as defined in the Existing Intercreditor Agreement) (in such capacity, the "Secured Hedge Agent") is executing this Agreement below solely for the purpose of consenting to the amendment and restatement of the Existing Intercreditor Agreement pursuant to this Agreement.  Effective upon the execution and delivery of this Agreement by all parties hereto, the Secured Hedge Agent resigns as the Secured Hedge Agent under the Existing Intercreditor Agreement and shall not have any rights, duties or obligations under or with respect to this Agreement, and the parties hereto hereby release the Secured Hedge Agent from all of its duties and obligations under the Existing Intercreditor Agreement.  
[remainder of page intentionally left blank]

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 12

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

BANK OF AMERICA, N.A., 
as Working Capital Agent

By:    /s/ Hance VanBeber
Name:    Hance VanBeber
Title:    Senior Vice President

Notice Address:
Bank of America, N.A.
Mail Code:  TX1-492-11-23
901 Main Street, 11th Floor
Dallas, Texas  75202
Attn:  Hance VanBeber
Tel:  214-209-4735
Fax:  214-209-4766
Email:  hance.vanbeber@baml.com

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 13

WILMINGTON TRUST, NATIONAL ASSOCIATION, 
as Fixed Asset Collateral Trustee

By:    /s/ Lynn M. Steiner
Name:    Lynn M. Steiner
Title:    Vice President

Notice Address:
Wilmington Trust, National Association
Corporate Capital Markets 
50 South Sixth Street, Suite 1290
Minneapolis, Minnesota  55402 
Attn:  Lynn M. Steiner, Vice President
Tel:  612-217-5667
Fax:  612-217-5651
Email:  lsteiner@wilmingtontrust.com

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 14

	
		
	 
	CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 15

	
		
	 
	CALUMET LP GP, LLC

By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:      Executive Vice President and Chief Financial Officer

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 16

	
		
	 
	CALUMET OPERATING, LLC

By:   Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner
By:         /s/ R. Patrick Murray, II
Name:    R. Patrick Murray, II
Title:      Executive Vice President and Chief Financial Officer

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 17

	
		
	 
	CALUMET LUBRICANTS CO., LIMITED
PARTNERSHIP

By:   Calumet LP GP, LLC, its general partner
   By:   Calumet Operating, LLC, its sole member
      By:    Calumet Specialty Products Partners, L.P., 
      its sole member
         By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and 
              Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 18

	
		
	   
	CALUMET SHREVEPORT LUBRICANTS & WAXES, LLC

By:   Calumet Lubricants Co., Limited Partnership, 
   its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., 
   its sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and 
             Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 19

	
		
	 
	CALUMET SHREVEPORT FUELS, LLC

By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., 
its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 20

	
		
	 
	CALUMET SALES COMPANY INCORPORATED

By:         /s/ John R. Krutz
Name:    John R. Krutz
Title:      Vice President-Finance and Treasurer

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 21

	
		
	 
	CALUMET PENRECO, LLC

By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
 Title:   Executive Vice President and Chief Financial  Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 22

	
		
	 
	CALUMET FINANCE CORP.

By:        /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 23

	
		
	 
	CALUMET SUPERIOR, LLC

By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 24

	
		
	 
	CALUMET MISSOURI, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 25

                	
		
	 
	CALUMET PACKAGING, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 26

	
		
	 
	ROYAL PURPLE, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 27

                    	
		
	 
	CALUMET MONTANA REFINING, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 28

	
		
	 
	CALUMET SAN ANTONIO REFINING, LLC,
as a Borrower
By: Calumet Shreveport Fuels, LLC, its sole member 
By:    Calumet Lubricants Co., Limited Partnership, its sole member
By: Calumet LP GP, LLC, its general partner
By: Calumet Operating, LLC, its sole member
By: Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner

By:       /s/ R. Patrick Murray, II
Name:  R.Patrick Murray, II
Title:    Executive Vice President and Chief
             Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 29

                	
		
	 
	BEL-RAY COMPANY, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial  Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 30

	
		
	 
	WELD CORPORATION,
as a Borrower
By:        /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

            

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 31

	
		
	 
	ADF HOLDINGS, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

                

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 32

                    	
		
	 
	ANCHOR DRILLING FLUIDS USA, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

    

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 33

	
		
	 
	CALUMET NORTH DAKOTA, LLC

By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 34

	
		
	 
	KURLIN COMPANY, LLC,
as a Borrower
By: Bel-Ray Company, LLC, its sole member
By:    Calumet Lubricants Co., Limited Partnership, its sole member
By: Calumet LP GP, LLC, its general partner
By: Calumet Operating, LLC, its sole member
By: Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner

By:      /s/ R. Patrick Murray, II
Name: R.Patrick Murray, II
Title:   Executive Vice President and Chief
            Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 35

	
		
	 
	ANCHOR OILFIELD SERVICES, LLC,
as a Borrower
By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 36

Bank of America, N.A. in its capacity as the Secured Hedge Agent is executing this Agreement below solely for the purpose specified in Section 5.21 of this Agreement.

BANK OF AMERICA, N.A., 
as the Secured Hedge Agent

By:    /s/ Hance VanBeber
Name:    Hance VanBeber
Title:    Senior Vice President

SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT – Page 37

EXHIBIT A

IP License

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS

For the purpose of enabling Bank of America, N.A., as Agent (in such capacity, together with its successors and assigns, the "Agent") under that certain Second Amended and Restated Credit Agreement dated as of July 14, 2014 (as amended, restated, supplemented or otherwise modified or refinanced or replaced from time to time, the "Credit Agreement") among Calumet Specialty Products Partners, L.P. (the "Company"), the subsidiaries and/or affiliates of the Company from time to time party thereto (including, without limitation, Calumet Lubricants Co., Limited Partnership, and, together with the Company, the "Grantors"), Bank of America, N.A., as Agent, and the lenders from time to time party thereto (collectively, the "Lenders"), to enforce any Lien held by the Agent upon any of the Collateral and, to the extent appropriate in the good faith opinion of the Agent, to process, ship, produce, store, complete, supply, lease, sell or otherwise dispose of any of the Collateral (as such term is defined in the Credit Agreement) or to collect or otherwise realize upon any Accounts, at any and all such times as the Agent shall be lawfully entitled to exercise such rights and remedies, each of the Grantors hereby grants to the Agent, for the benefit of the Agent and the Lenders, and only to the extent set forth above, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to the Grantors) to use, license or sublicense any and all intellectual property and rights relating thereto now owned or hereafter acquired by the Grantors or any one or more of them (except to the extent the terms of any of the agreements granting the foregoing rights prohibit such grant to the Agent), and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof.  Each of the Grantors agrees and acknowledges that no further performance is required of the Agent under the terms of the license granted pursuant hereto and that this license shall not constitute an executory contract.
This Amended and Restated License to use Intellectual Property Rights (this "License") shall be governed by the laws of the State of New York without regard to conflict of laws principles thereof (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law).

Capitalized terms used but not defined herein shall have the meanings therefor specified in the Credit Agreement.

This License amends and restates, but does not extinguish any license or right granted pursuant to, that certain License to Use Intellectual Property Rights dated April 21, 2011, executed by Calumet Lubricants Co., Limited Partnership and certain of its affiliates to and in favor of Bank of America, N.A. as agent under the credit agreement referred to therein.  

Dated:   April 20, 2016.

Remainder of Page Intentionally Blank.
Signature Page to Follow.

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 1

	
		
	 
	CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

By:   Calumet GP, LLC, its general partner
By:         /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 2

	
		
	 
	CALUMET LP GP, LLC

By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:         /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 3

	
		
	 
	CALUMET OPERATING, LLC

By:   Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 4

	
		
	 
	CALUMET LUBRICANTS CO., LIMITED
PARTNERSHIP

By:   Calumet LP GP, LLC, its general partner
   By:   Calumet Operating, LLC, its sole member
      By:    Calumet Specialty Products Partners, L.P., 
      its sole member
         By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and
             Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 5

	
		
	   
	CALUMET SHREVEPORT LUBRICANTS & WAXES, LLC

By:   Calumet Lubricants Co., Limited Partnership, 
   its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., 
   its sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and 
             Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 6

	
		
	 
	CALUMET SHREVEPORT FUELS, LLC

By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., 
its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 7

	
		
	 
	CALUMET SALES COMPANY INCORPORATED

By:        /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 8

	
		
	 
	CALUMET PENRECO, LLC

By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:     Executive Vice President and Chief Financial
             Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 9

	
		
	 
	CALUMET FINANCE CORP.

By:        /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 10

	
		
	 
	CALUMET SUPERIOR, LLC

By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial    Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 11

                    	
		
	 
	CALUMET MISSOURI, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 12

                    	
		
	 
	CALUMET PACKAGING, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 13

                    	
		
	 
	ROYAL PURPLE, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 14

	
		
	 
	CALUMET MONTANA REFINING, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 15

	
		
	 
	CALUMET SAN ANTONIO REFINING, LLC,
as a Borrower
By: Calumet Shreveport Fuels, LLC, its sole member 
By:    Calumet Lubricants Co., Limited Partnership, its sole member
By: Calumet LP GP, LLC, its general partner
By: Calumet Operating, LLC, its sole member
By: Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner

By:      /s/ R. Patrick Murray, II
Name: R.Patrick Murray, II
Title:   Executive Vice President and Chief
            Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 16

	
		
	 
	BEL-RAY COMPANY, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 17

	
		
	 
	WELD CORPORATION,
as a Borrower
By:        /s/ John R. Krutz
Name:   John R. Krutz
Title:     Vice President-Finance and Treasurer

                    

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 18

	
		
	 
	ADF HOLDINGS, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 19

                    	
		
	 
	ANCHOR DRILLING FLUIDS USA, LLC,
as a Borrower
By: Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:    Calumet Specialty Products Partners, L.P., its sole member
By:   Calumet GP, LLC, its general partner
By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

    

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 20

	
		
	 
	CALUMET NORTH DAKOTA, LLC

By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 21

	
		
	 
	KURLIN COMPANY, LLC,
as a Borrower
By: Bel-Ray Company, LLC, its sole member
By:    Calumet Lubricants Co., Limited Partnership, its sole member
By: Calumet LP GP, LLC, its general partner
By: Calumet Operating, LLC, its sole member
By: Calumet Specialty Products Partners, L.P., its sole member
By:    Calumet GP, LLC, its general partner

By:      /s/ R. Patrick Murray, II
Name: R.Patrick Murray, II
Title:   Executive Vice President and Chief
           Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 22

	
		
	 
	ANCHOR OILFIELD SERVICES, LLC,
as a Borrower
By:   Calumet Lubricants Co., Limited Partnership, its sole member
By:   Calumet LP GP, LLC, its general partner
By:   Calumet Operating, LLC, its sole member
By:   Calumet Specialty Products Partners, L.P., sole member
By:   Calumet GP, LLC, its general partner

By:        /s/ R. Patrick Murray, II
Name:   R. Patrick Murray, II
Title:   Executive Vice President and Chief Financial Officer

	 
	 

AMENDED AND RESTATED LICENSE TO USE INTELLECTUAL PROPERTY RIGHTS - Page 23crmd_ex101.htm

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

This EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is entered into on April 18, 2016, and effective as of February 22, 2016 (the “Effective Date”), by and between CorMedix Inc., a Delaware corporation with principal executive offices at 1430 US Highway 206, Suite 200, Bedminster, NJ 07921 (“Company”), and Antony Pfaffle M.D., residing at 5025 Waldo Avenue, Bronx, NY 10471 (“Executive”).  Each of Company and Executive is referred to herein as a “Party” and together they are referred to as the “Parties.”

TERMS

In consideration of the foregoing premises and the mutual covenants and agreements herein contained, the Parties, intending to be legally bound, agree as follows:

 

1.             Employment.

(a)           Services.  Executive will serve as the Company’s Chief Scientific Officer, and will perform such services for the Company as are customarily associated with such position and as may otherwise be assigned to the Executive from time to time by the Company’s Chief Executive Officer or her designee.

(b)           Acceptance.  Executive hereby accepts such employment subject to the terms of this Agreement.

 

2.             Term.

The duration of this Agreement (as it may be extended, the “Term”) shall commence on the date hereof and shall continue for a term of two (2) years thereafter, unless sooner terminated pursuant to Section 8; provided, however, that the Term shall be extended automatically for additional, successive one-year periods unless one Party shall notify the other in writing at least sixty (60) days before the initial expiration of the Term or the expiration of any successive one-year period thereafter that this Agreement shall not be so extended after such expiry (a “Notice of Nonrenewal”).  Notwithstanding anything to the contrary contained herein, the provisions of this Agreement specified in Sections 5, 6, 9, 11, 12, and 13 shall survive the expiration or termination hereof.

 

3.             Duties; Place of Performance.

(a)           Duties.  Executive shall devote substantially all of his business time, attention and energies to the business and affairs of Company and shall use his best efforts to advance the interests of Company.  Executive will perform his duties diligently and to the best of his ability, in compliance with the Company’s policies and procedures and the laws and regulations that apply to the Company’s business.  During the Term, Executive shall not be substantially engaged in any other business activity, whether or not such business activity is pursued for gain, profit or other pecuniary advantage, that will interfere materially with the performance by Executive of his duties hereunder or Executive's reasonable availability to perform such duties or that Executive knows, or should reasonably know, will adversely affect, or negatively reflect upon, Company.

 

  

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(b)           Place of Performance.  The duties to be performed by Executive hereunder shall be performed primarily at the executive offices of Company in Bedminster, New Jersey, or wherever the principal executive offices of Company shall hereafter be located, subject to reasonable travel requirements on behalf of Company, or such other place as the Company may reasonably designate.

 

4.             Compensation.

 

As full compensation for Executive’s performance of services as an employee of the Company, the Company shall pay Executive as follows:

(a)           Base Salary.  Company shall pay Executive an annual base salary of Two Hundred Eighty thousand Dollars ($280,000) (as it may be increased from time to time, the “Base Salary”), less applicable withholdings and deductions.  Payment shall be made in accordance with Company's normal payroll practices.  The Company’s Board of Directors (the “Board”), or its Compensation Committee, shall review the Base Salary not less than annually to determine whether an increase in the amount thereof is warranted.

(b)           Annual Bonus.  Subject to the following provisions of this Section 4(b), Executive shall be eligible to receive an annual bonus in an amount of up to 50% of the Base Salary then in effect, as determined by the Board (or its Compensation Committee) in its sole discretion based upon the achievement, during the year in question, of (i) objectives for the Company as a whole established by the Board (or its Compensation Committee) at the beginning of the year, and (ii) objectives for Executive agreed by the Board (or its Compensation Committee) and Executive at the beginning of the year.  The Board (or its Compensation Committee) and Executive will endeavor to determine and agree on Executive’s individual objectives for a given year within the first thirty (30) calendar days of each year.  Any annual bonus awarded to Executive shall be paid in cash or a combination of cash and equity (in the form of restricted stock or stock options) as determined by the Board in its discretion, provided that the equity portion will make up no more than 50% of the value of the annual bonus.  Executive must be employed by the Company through December 31 of a given year in order to earn the annual bonus for such year.  The annual bonus for a given year will be paid no later than March 15 of the year following the year to which it relates.

(c)           Withholding.  The Company will withhold from any amounts payable under this Agreement such federal, state and local taxes as the Company determines are required to be withheld pursuant to applicable law.

 

  

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(d)           Expenses.  Company shall reimburse Executive for all normal, usual and necessary expenses incurred by Executive in furtherance of the business and affairs of Company, including without limitation reasonable travel, lodging, meals, and entertainment upon timely receipt by Company of appropriate vouchers or other proof of Executive's expenditures and otherwise in accordance with any expense reimbursement policy as may from time to time be adopted by Company.  Such reimbursements will be made in a timely manner and in accordance with the policies of the Company, but in no event later than December 31 of the year following the year in which Executive incurs such expense.  The amount of expenses eligible for reimbursement during one year will not affect the expenses eligible for reimbursement in any other year, and is not subject to liquidation or exchange for another benefit.

(e)           Other Benefits.  Executive shall be entitled to all rights and benefits for which he shall be eligible under any benefit or other plans (including, without limitation, dental, medical, medical reimbursement and hospital plans, pension plans, employee stock purchase plans, profit sharing plans, bonus plans, prescription drug reimbursement plans, short and long term disability plans, life insurance and other so-called “fringe” benefits) as Company shall make available to its senior executives from time to time.

(f)           Vacation.  Executive shall be entitled to a vacation of four (4) weeks per annum, of which no more than two (2) weeks may be taken consecutively, in addition to holidays observed by Company and reasonable periods of paid personal and sick leave.  All such paid time off shall be used in accordance with the Company's established policies and procedures.

 

5.             Confidential Information and Inventions.

(a)           Confidential Information; Non-Disclosure and Non-Use.  Executive recognizes and acknowledges that in the course of his duties he is likely to receive confidential or proprietary information of Company, its affiliates or third parties with whom Company or any such affiliates has an obligation of confidentiality. Accordingly, during and after the Term, Executive agrees to keep confidential and not disclose or make accessible to any other person or use for any other purpose other than in connection with the fulfillment of his duties under this Agreement, any “Confidential and Proprietary Information” (defined below) owned by, or received by or on behalf of Company or any of its affiliates.  The term “Confidential and Proprietary Information” shall include, but shall not be limited to, confidential or proprietary scientific or technical information, data, formulas and related concepts, business plans (both current and under development), client lists, promotion and marketing programs, trade secrets, or any other confidential or proprietary business information relating to development programs, costs, revenues, marketing, investments, sales activities, promotions, credit and financial data, manufacturing processes, financing methods, and any and all information relating to the operation of the Company’s business which the Company may from time to time designate as confidential or proprietary or that Executive reasonably knows should be, or has been, treated by the Company as confidential or proprietary.  Executive expressly acknowledges that the Confidential and Proprietary Information constitutes a protectable business interest of Company.  Confidential and Proprietary Information encompasses all formats in which information is preserved, whether electronic, print, or any other form, including all originals, copies, notes, or other reproductions or replicas thereof.  Executive agrees: (i) not to use any such Confidential and Proprietary Information for himself or others; and (ii) not to take any Company material or reproductions (including but not limited to writings, correspondence, notes, drafts, records, invoices, technical and business policies, computer programs or disks) thereof from Company's offices at any time during his employment by Company, except as required in the execution of Executive's duties to Company.

 

  

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(b)           Return of Property.  Upon request during employment and immediately at the termination of his employment, Executive will return to the Company all Confidential and Proprietary Information in any form (including all copies and reproductions thereof) and all other property whatsoever of the Company in his possession or under his control.  If requested by the Company, Executive will certify in writing that all such materials have been returned to the Company.  Executive also expressly agrees that immediately upon the termination of his employment with the Company for any reason, Executive will cease using any secure website, computer systems, e-mail system, or phone system or voicemail service provided by the Company for the use of its employees.

(c)           Exceptions.  Confidential and Proprietary Information does not include any information that: (i) at the time of disclosure is generally known to, or readily ascertainable by, the public; (ii) becomes known to the public through no fault of Executive or other violation of this Agreement; or (iii) is disclosed to Executive by a third party under no obligation to maintain the confidentiality of the information.  The restrictions in Section 5(a) above will not apply to any information the extent that that Executive is required to disclose such information by law, provided that the Executive (x) notifies the Company of the existence and terms of such obligation, (y) gives the Company a reasonable opportunity to seek a protective or similar order to prevent or limit such disclosure, and (z) only discloses that information actually required to be disclosed.

(d)           Inventions.  Executive agrees that all inventions, discoveries, improvements and patentable or copyrightable works (“Inventions”) initiated, conceived or made by him within the scope of the Company’s business and in the course of his employment with the Company, either alone or in conjunction with others, during the Term shall be the sole property of Company to the maximum extent permitted by applicable law and, to the extent permitted by law, shall be "works made for hire" as that term is defined in the United States Copyright Act (17 U.S.C.A., Section 101). Company shall be the sole owner of all patents, copyrights, trade secret rights, and other intellectual property or other rights in connection therewith; provided, however that this Section 5(d) shall not apply to Inventions which are not related to the business of Company and which are made and conceived by Executive not during normal working hours, not on Company's premises and not using Company's tools, devices, equipment or Confidential and Proprietary Information. Subject to the foregoing, Executive hereby assigns to Company all right, title and interest he may have or acquire in all Inventions; provided, however, that the Board may in its sole discretion agree to waive Company's rights pursuant to this Section 5(d).

(e)           Further Actions and Assistance.  Executive agrees to cooperate reasonably with Company and at Company’s expense, both during and after his employment with Company, with respect to the procurement, maintenance and enforcement of copyrights, patents, trademarks and other intellectual property rights (both in the United States and foreign countries) relating to such Inventions. Executive shall sign all papers, including, without limitation, copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights and powers of attorney, that Company reasonably may deem necessary or desirable in order to protect its rights and interests in any Inventions. Executive further agrees that if Company is unable, after reasonable effort, to secure Executive's signature on any such papers, any officer of Company shall be entitled to execute such papers as his agent and attorney-in-fact and Executive hereby irrevocably designates and appoints each officer of Company as his agent and attorney-in-fact to execute any such papers on his behalf and to take any and all actions as Company reasonably may deem necessary or desirable in order to protect its rights and interests in any Inventions, under the conditions described in this paragraph.

 

  

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(f)           Prior Inventions.  Executive will not assert any rights to any invention, discovery, idea or improvement relating to the business of Company or to his duties hereunder as having been made or acquired by Executive prior to his work for Company, except for the matters, if any, described in Appendix A to this Agreement.

(g)           Disclosure.  Executive agrees that he will promptly disclose to Company all Inventions initiated, made or conceived or reduced to practice by him, either alone or jointly with others, during the Term.

(h)           Survival.  The provisions of this Section 5 shall survive any termination of this Agreement.

 

6.             Non-Competition, Non-Solicitation and Non-Disparagement.

(a)           Executive understands and recognizes that his services to Company are special and unique and that in the course of performing such services Executive will have access to and knowledge of Confidential and Proprietary Information and Executive agrees that, during the Term and the twelve month period immediately following Executive’s separation from employment (the “Termination Restriction Period”), whether such separation is voluntary or involuntary, he shall not in any manner, directly or indirectly, on behalf of himself or any person, firm, partnership, joint venture, corporation or other business entity ("Person"), enter into or engage in any business involving the development or commercialization of a preventive anti-infective product that would be a direct competitor of Neutrolin or a product containing taurolidine (the “Business of Company”), either as an individual for his own account, or as a partner, joint venturer, owner, executive, employee, independent contractor, principal, agent, consultant, salesperson, officer, director or shareholder of such Person, in any capacity that requires or could result in Executive’s intentional or unintentional use of the Confidential and Proprietary Information and/or requires Executive to perform services substantially similar to those performed for the benefit of the Company during the Term, within the United States and the European Union, provided, however, that nothing shall prohibit Executive from performing executive duties for any Person that does not engage in the Business of Company.  Executive acknowledges that, due to the unique nature of Company's business, Company has a strong legitimate business interest in protecting the continuity of its business interests and its Confidential and Proprietary Information and the restriction herein agreed to by Executive narrowly and fairly serves such an important and critical business interest of Company.  

 

  

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Notwithstanding the foregoing, nothing contained in this Section 6(a) shall be deemed to prohibit Executive from acquiring or holding, solely for investment, publicly traded securities of any corporation, some or all of the activities of which are engaged in the Business of Company so long as such securities do not, in the aggregate, constitute more than four percent (4%) of any class or series of outstanding securities of such corporation; and further notwithstanding the foregoing, nothing contained in this Section 6(a) shall preclude Executive from becoming an employee of, or from otherwise providing services to, a separate division or operating unit of a multi-divisional business or enterprise (a “Division”) if: (i) the Division by which Executive is employed, or to which Executive provides services, is not engaged in the Business of Company, (ii) Executive does not provide services, directly or indirectly, to any other division or operating unit of such multi-divisional business or enterprise engaged in or proposing to engage in the Business of Company (individually, a “Competitive Division” and collectively, the “Competitive Divisions”) and (iii) the Competitive Divisions, in the aggregate, accounted for less than one-third of the multi-divisional business or enterprise's consolidated revenues for the fiscal year, and each subsequent quarterly period, prior to Executive's commencement of employment with or provision of services to the Division.

 

(b)           Reasonableness of Restriction.  Executive hereby acknowledges and agrees that the covenant against competition provided for pursuant to Section 6(a) is reasonable with respect to its duration, geographic area and scope.  In addition, Executive acknowledges that the Company engages in the Business of Company throughout the United States and the European Union.  If, at the time of enforcement of this Section 6, a court holds that the restrictions stated herein are unreasonable under the circumstances then existing, the Parties hereto agree that the maximum duration, scope or geographic area legally permissible under such circumstances will be substituted for the duration, scope or area stated herein.

(c)           Non-Solicitation.  During the Term and the applicable Termination Restriction Period, Executive shall not, directly or indirectly, without the prior written consent of Company:

(i)           solicit or induce any employee of Company or any of its affiliates to leave the employ of Company or any affiliate; or hire for any competitive purpose any employee of Company; or hire any former employee who has left the employment of Company or any affiliate of Company within twelve (12) months of the termination of such employee's employment with Company or any such affiliate for any competitive purpose; or hire any former employee of Company in knowing violation of such employee's non-competition agreement with Company or any such affiliate; or

 

  

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(ii)           solicit, divert or take away, or attempt to divert or take away, the business or patronage of any agent, client or customer of Company which was served by Company during the twelve-month period prior to the termination of Executive's employment with Company; or induce, encourage, or attempt to induce or encourage any client or customer of Company which was served by Company during the twelve-month period prior to the termination of Executive's employment with Company to reduce, limit, or cancel its business with the Company.

(d)           Non-Disparagement.  Executive agrees that he shall not directly or indirectly disparage, whether or not truthfully, the name or reputation of Company or any of its affiliates, including but not limited to, any officer, director, employee or shareholder of Company or any of its affiliates; provided that, nothing in this Section shall be construed to interfere with Executive’s right to engage in protected concerted activity under the National Labor Relations Act.  Notwithstanding this Section 6(d), nothing contained herein shall apply to statements made by Executive (x) in the course of his responsibility to evaluate the performance and/or participate in any investigation of the conduct or behavior of officers, employees and/or others or (y) as part of any judicial, administrative or other legal action or proceeding, and nothing shall be construed to limit or impair the ability of Executive to provide truthful testimony in response to any validly issued subpoena or to file pleadings or respond to inquiries or legal proceedings by any government agency to the extent required by applicable law.

(e)           Enforcement.  In the event that Executive breaches or threatens to breach any provisions of Section 5 or this Section 6, then, in addition to any other rights Company may have, Company shall be entitled to seek injunctive relief to enforce such provisions.  In the event that an actual proceeding is brought in equity to enforce the provisions of Section 5 or this Section 6, Executive shall not urge as a defense that there is an adequate remedy at law nor shall Company be prevented from seeking any other remedies that may be available.

(f)           Remedies Cumulative; Judicial Modification.  Each of the rights and remedies enumerated in Section 6(e) shall be independent of the others and shall be in addition to and not in lieu of any other rights and remedies available to Company at law or in equity.  If any of the covenants contained in this Section 6, or any part of any of them, is hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants or rights or remedies, which shall be given full effect without regard to the invalid portions.  If any of the covenants contained in this Section 6 is held to be invalid or unenforceable because of the duration of such provision or the area covered thereby, the Parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision and in its reduced form such provision shall then be enforceable.

(g)           Survival.  The provisions of this Section 6 shall survive any termination of this Agreement.

  

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7.             Representations and Warranties.

 

(a)           By Executive.  Executive hereby represents and warrants to Company as follows:

 

(i)           Neither the execution or delivery of this Agreement nor the performance by Executive of his duties and other obligations hereunder conflict with or constitute a default or breach of any covenant or obligation under (whether immediately, upon the giving of notice or lapse of time or both) any prior employment agreement, contract, or other instrument to which Executive is a party or by which he is bound.

(ii)           Executive has the full right, power and legal capacity to enter and deliver this Agreement and to perform his duties and other obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of Executive enforceable against him in accordance with its terms. No approvals or consents of any persons or entities are required for Executive to execute and deliver this Agreement or perform his duties and other obligations hereunder.

(iii)           Executive will not use any confidential information or trade secrets of any third Party in his employment by Company in violation of the terms of the agreements under which he had access to or knowledge of such confidential information or trade secrets.

(b)           By Company.  Company hereby represents and warrants to Executive that Company has the full right and power to enter and deliver this Agreement and to perform obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of Company enforceable against it in accordance with its terms. All approvals or consents required for Company to validly execute and deliver this Agreement and perform its obligations hereunder, including, without limitation, approval of the Board, if required, have been obtained.

 

8.             Termination.

(a)           Cause.  Executive's employment hereunder may be terminated by the Company immediately for “Cause” (defined below). Any of the following actions by Executive shall constitute “Cause”:

(i)           The willful failure, disregard or refusal by Executive to perform his material duties or obligations under this Agreement;

(ii)           Any willful, intentional or grossly negligent act by Executive having the effect of materially injuring (whether financial or otherwise and as determined reasonably and in good-faith by a majority of the members of the Board) the business or reputation of Company or any of its affiliates;

(iii)           Executive's conviction of any felony involving moral turpitude (including entry of a guilty or nolo contendere plea);

(iv)           A good faith determination by the Board and/or any government representative or agency that the Executive is a “bad actor” as defined by 17 CFR 230.506(a);

 

  

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(v)           The good faith determination by the Board, after a reasonable and good-faith investigation by the Company that Executive engaged in some form of harassment prohibited by law (including, without limitation, harassment on the basis of age, sex or race) unless Executive's actions were specifically directed by the Board;

(vi)           Any material misappropriation or embezzlement by Executive of the property of Company or its affiliates (whether or not a misdemeanor or felony); or

(vii)           Breach by Executive of any material provision of this Agreement that is not cured, to the extent subject to cure, by Executive to the reasonable satisfaction of Company within thirty (30) days after written notice thereof is given to Executive by Company.

For purposes of this Section 8(a), no act or omission by Executive shall be considered willful if reasonably and in good faith believed by Executive to be in, or not contrary to, the best interests of Company.

(b)           Death.  Executive's employment hereunder shall be terminated upon Executive's death.

(c)           Disability.  The Company may terminate Executive's employment hereunder due to Executive's “Disability” (defined below).  For purposes of this Agreement, a termination due to Executive’s “Disability” shall be deemed to have occurred:

(i)           when the Board has provided a written termination notice to Executive supported by a written statement from a Reputable Independent Physician (defined below), to the effect that Executive shall have become so physically or mentally incapacitated by reason of physical or mental illness or injury as to be unable to resume his employment under this Agreement (with or without reasonable accommodation as that term is defined under applicable law) within the ensuing three (3) months; or

(ii)           upon rendering of a written termination notice by the Board after Executive has been unable to substantially perform his duties hereunder by reason of any physical or mental illness or injury (with or without reasonable accommodation as that term is defined under applicable law) for ninety (90) or more consecutive days or more than one hundred twenty (120) days in any consecutive twelve month period.

The term “Reputable Independent Physician” means a physician satisfactory to both Executive and Company, provided that if Executive and Company do not agree on a physician, then a third physician selected by the physicians selected by Executive and Company.  Executive agrees to make himself available and to cooperate in a reasonable examination by the Reputable Independent Physician.  The determination of the Reputable Independent Physician as to Executive’s disability shall be binding on all Parties.

 

  

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(d)           Good Reason.  Executive may terminate his employment hereunder for “Good Reason” (as defined below) pursuant to the procedures set forth in this Section 8(d).  In order for Executive to resign for Good Reason, Executive must provide written notice to the Company of the existence of the Good Reason condition within sixty (60) days of the initial existence of such Good Reason condition.  Upon receipt of such notice, the Company will have thirty (30) days during which it may attempt to remedy the Good Reason condition.  If so remedied, Executive may not resign for Good Reason based on such condition.  If the Good Reason condition is not remedied within such thirty (30) day period, Executive may resign based on the Good Reason condition specified in the notice effective no later than thirty (30) days following the expiration of the thirty (30) day cure period.  The term “Good Reason” shall mean any of the following occurring without the Executive’s consent:

(i)           any material breach of this Agreement by Company;

(ii)           any material reduction by Company of Executive's duties, responsibilities, or authority;

(iii)           a relocation of Company’s principal place of business outside of the New York metropolitan area or to a location more than 50 miles from its immediately preceding location;

(iv)           a material reduction in Executive’s annual base salary unless all officers and/or members of the Company’s executive management team experience an equal or greater percentage reduction in annual base salary and/or total compensation.

(e)           Convenience.  Either Party may terminate Executive's employment hereunder for any reason or no reason at any time by written notice of termination to the other Party, which notice shall specify the termination date, or by providing a Notice of Nonrenewal to the other Party.

 

9.             Compensation upon Termination.

In the event Executive's employment is terminated, Company shall pay to Executive the Base Salary and benefits otherwise payable to him under Section 4 through the last day of his actual employment by Company along with any reimbursable business expenses subject to Company policy (together, the “Accrued Compensation”).  Except for the Accrued Compensation and as otherwise required by law, Executive will have no further entitlement hereunder to any other compensation or benefits from Company except as expressly provided below:

(a)           Death or Disability.  If Executive's employment is terminated as a result of his death or Disability, Company shall pay to Executive or to Executive's estate, as applicable, (i) his Base Salary through the date which is the sooner of the end of the Term or one hundred eighty (180) days after his death or Disability, and (ii) such other or additional benefits, if any, as may be provided under applicable employee benefit plans, programs and/or arrangements of Company.  All shares of capital stock of Company held by Executive that are subject to vesting (“Restricted Shares”) and all options to purchase shares of capital stock of Company (“Stock Options”) that are scheduled to vest on or before the next succeeding anniversary of the Effective Date shall be accelerated and deemed to have vested as of the termination date. All Restricted Shares and Stock Options that have not vested (or been deemed pursuant to the immediately preceding sentence to have vested) as of the date of termination shall be forfeited to Company as of such date.  Stock Options that have vested as of Executive's termination shall remain exercisable until the earlier to occur of (i) ninety (90) days following such termination and (ii) the expiration/termination date(s) applicable under the grant(s) under which such Stock Options were granted.  Executive acknowledges that to the extent any of the Stock Options were designed as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), his exercise of such Stock Options more than ninety (90) days after his employment with the Company ends may disqualify such Stock Options from being treated as incentive stock options, and may result in such Stock Options being deemed nonqualified stock options, except in certain limited circumstances.  In the case of a termination of employment because of Executive’s Disability, all payments, benefits and/or grants under this Section 9(a) are conditioned upon Executive’s execution of a Release (as defined below) within the time specified therein, which Release is not revoked within any time period allowed for revocation under applicable law.

 

  

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(b)           Cause.  If Executive's employment is terminated by the Company for Cause, Executive shall not be entitled to receive any payments or benefits other than the Accrued Compensation.  All Restricted Shares that have not vested as of the date of termination shall be forfeited to Company as of such date. All unexercised Stock Options, vested and unvested, shall immediately terminate upon termination for Cause.

(c)           Other than for Cause, Death or Disability.  If Company terminates Executive's employment other than as a result of Executive's death or Disability and other than for Cause (including by providing a Notice of Nonrenewal to Executive) or if Executive terminates Executive's employment for Good Reason, then conditioned upon Executive executing a Release (as defined below) following such termination, the Company shall the Company will provide to Executive the following separation benefits: (i) the Company will continue to pay to Executive his Base Salary for a period of twelve (12) months, (ii) if Executive timely elects continued health insurance coverage under COBRA, the Company shall pay the entire premium necessary to continue such coverage for Executive and Executive’s eligible dependents until the conclusion of the time when Executive is receiving continuation of Base Salary payments or until Executive becomes eligible for group health insurance coverage under another employer’s plan, whichever occurs first, provided however that the Company has the right to terminate such payment of COBRA premiums on behalf of Executive and instead pay Executive a lump sum amount equal to the COBRA premium times the number of months remaining in the specified period if the Company determines in its discretion that continued payment of the COBRA premiums is or may be discriminatory under Section 105(h) of the Code, (iii) the Company will provide such other or additional benefits, if any, as may be provided under applicable employee benefit plans, programs and/or arrangements of Company, and (iv) all equity grants of any kind, including Restricted Shares and unvested Stock Options held by Executive shall be accelerated and deemed to have vested as of the termination date. All Stock Options that have vested (or been deemed pursuant to the immediately preceding sentence to have vested) as of the date of Executive's termination shall remain exercisable until the later to occur of (x) the expiry of ninety (90) days following such termination and (y) the expiration/termination date(s) applicable under the grant(s) under which such Stock Options were granted.  Executive acknowledges that to the extent any of the Stock Options were designed as incentive stock options under Section 422 of the Code, his exercise of such Stock Options more than ninety (90) days after his employment with the Company ends may disqualify such Stock Options from being treated as incentive stock options, and may result in such Stock Options being deemed nonqualified stock options, except in certain limited circumstances.  The separation benefits set forth above are conditioned upon Executive executing a release of claims against the Company, its parents, subsidiaries and affiliates and each of its officers, directors, employees, agents, successors and assigns in a form acceptable to the Company (the “Release”) within the time specified therein, which Release is not revoked within any time period allowed for revocation under applicable law.  The salary continuation described in Section 9(c)(i) above will be payable to Executive over time in accordance with the Company’s payroll practices and procedures beginning on the sixtieth (60th) day following the termination of Executive’s employment with the Company, provided that the Company, in its sole discretion, may begin the payments earlier.

 

  

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(d)           By Executive for Convenience.  If Executive terminates Executive's employment pursuant to Section 8(e), including by providing a Notice of Nonrenewal to the Company, Executive shall not be entitled to receive any payments or benefits other than the Accrued Compensation.

(e)           This Section 9 sets forth the only obligations of Company with respect to the termination of Executive's employment with Company, and Executive acknowledges that, upon the termination of his employment, he shall not be entitled to any payments or benefits which are not explicitly provided in this Section 9, except as required by law or the terms of another employee plan, program or arrangement covering him.  Executive acknowledges and agrees that upon the termination of his employment with the Company, regardless of the reason or grounds therefore, he shall resign from his position on the Board and from any other board, organization or foundation wherein Executive sits or belongs as a representative of the Company.

(f)           The obligations of Company that arise under this Section 9 shall survive the expiration or earlier termination of this Agreement.

 

10.           Change of Control.

 

(a)           Change of Control Defined.  The term “Change of Control” means, after the Effective Date:

 

(i)           the acquisition by an individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) of beneficial ownership of any capital stock of Company, if, after such acquisition, such individual, entity or group beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) fifty percent (50%) or more of the combined voting power of the then-outstanding securities of Company entitled to vote generally in the election of directors (“Outstanding Company Voting Securities”); or

 

  

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(ii)           the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving Company or a sale or other disposition of all or substantially all of the assets of Company (“Business Combination”), unless, immediately following such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns Company or substantially all of Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership of the Outstanding Company Voting Securities immediately prior to such Business Combination.

(b)           Consequence.  Upon a Change of Control, all Restricted Shares and unvested Stock Options held by Executive shall be accelerated and deemed to have vested as of the date of the Change of Control.

(c)           Potential Adjustments due to Tax Implications.  Notwithstanding anything in this Agreement or any other agreement between Executive and Company to the contrary, but subject to this Section 10(c), Company will effectuate the acceleration contemplated under Section 10(b) and will make the payments and other acceleration of benefits under this Agreement and other compensatory arrangements without regard to whether Section 280G of the Code would limit or preclude the deductibility of such payments or benefits.  However, if reducing or eliminating any payment and/or other benefit (including the vesting of his options or other equity compensation) would increase the “Total After-Tax Payments” (defined below), then the amounts payable to Executive will be reduced or eliminated as follows (or in such other manner as Company may specify at the applicable time) to the extent necessary to maximize such Total After-Tax Payments:

(i)           first, by reducing or eliminating any cash payments or other benefits (other than the vesting of any options or stock) and

(ii)          second, by reducing or eliminating the vesting of options and stock that occurs as a result of a Change of Control or other event covered by Section 280G of the Code.

Company's independent, certified public accounting firm will determine whether and to what extent payments or vesting are required to be reduced or eliminated in accordance with the foregoing. If there is ultimately determined to be an underpayment of or overpayment to Executive under this provision, the amount of such underpayment or overpayment will be immediately paid to Executive or refunded by him, as the case may be, with interest at the applicable federal rate under the Code.  The term “Total After­Tax Payments” means the total value of all “parachute payments” (as that term is defined in Section 280G(b)(2) of the Code) made to Executive or for his benefit (whether made under the Agreement or otherwise), after reduction for all applicable federal taxes (including, without limitation, the tax described in Section 4999 of the Code).

 

  

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11.           Indemnification.

Company shall defend and indemnify Executive in his capacity as Chief Executive Officer of Company to the fullest extent permitted under to the Delaware General Corporate Law (the “DGCL”).  Company shall also establish a policy for indemnifying its officers and directors, including but not limited to Executive, for all actions permitted under the DGCL taken in good faith pursuit of their duties for Company, including, but not limited to, the obtaining of an appropriate level of directors and officers liability insurance coverage and including such provisions in Company's bylaws or certificate of incorporation, as applicable and customary.  Executive shall be designated as a named insured on such directors and officers liability insurance policy.  Executive’s rights to, and Company’s obligation to provide, indemnification shall survive termination of this Agreement.

12.           Compliance with Code Section 409A.

(a)           Intent of the Parties.  The intent of the Parties to the Agreement is that the payments, compensation and benefits under this Agreement will be exempt from or comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, in this connection, the Agreement shall be interpreted to be exempt or in compliance with Section 409A.  Further, if any benefit or payment payable under this Agreement is deemed to not comply with Section 409A, Company and Executive agree to renegotiate in good faith any such benefit or payment (including, without limitation, as to the timing of any severance payments payable hereunder) so that either (i) Section 409A will not apply or (ii) compliance with Section 409A will be achieved; provided, however, that any resulting renegotiated terms shall provide to Executive the after-tax economic equivalent of what otherwise has been provided to Executive pursuant to the terms of this Agreement, and provided further, that any deferral of payments or other benefits shall be only for such time period as may be required to comply with Section 409A.

(b)           Potential Delay of Payment(s) and Adjustments.  For the avoidance of doubt, the parties intend that payments of the separation benefits set forth in Section 9 above satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5), and 1.409A-1(b)(9).  If any payment, compensation or other benefit provided to Executive in connection with his separation from service is determined, in whole or in part, to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Executive is a “specified employee” within the meaning of Section 409A, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the termination date (the “New Payment Date”). The aggregate of any payments that otherwise would have been paid to Executive during the period between the termination date and the New Payment Date shall be paid to Executive in a lump sum on such New Payment Date.  Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement.

 

  

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(c)           Separation from Service.  Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under Section 9 above that constitute “deferred compensation” within the meaning of Section 409A will not commence in connection with Executive’s termination of employment unless and until Executive has also incurred a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), unless the Company reasonably determines that such amounts may be provided to Executive without causing Executive to incur additional tax under Section 409A.

(d)           Installments.  If any payment, compensation or other benefit required by the Agreement is to be paid in a series of installment payments, each individual payment in the series shall be considered a separate payment for purposes of Section 409A.

 

13.           Miscellaneous.

(a)           Governing Law.  Subject to the next sentence, this Agreement and all questions relating to its validity, interpretation, performance, remediation, and enforcement (including, without limitation, provisions concerning limitations of actions) shall be governed by and construed in accordance with the substantive laws of the State of New Jersey, notwithstanding any choice-of-law doctrines of that jurisdiction or any other jurisdiction that ordinarily would or might cause the substantive law of another jurisdiction to apply.  Notwithstanding the foregoing, all questions relating to the validity, interpretation, performance, remediation, and enforcement of Company’s obligations, and Executive’s rights, under Section 11 shall be governed by and construed in accordance with the substantive laws of the State of Delaware.

(b)           Personal Jurisdiction.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY ACTION OR PROCEEDING RELATING IN ANY WAY TO THIS AGREEMENT MAY ONLY BE BROUGHT AND ENFORCED IN THE STATE OR FEDERAL COURTS LOCATED IN SOMERSET COUNTY, NEW JERSEY, TO THE EXTENT SUBJECT MATTER JURISDICTION EXISTS THEREFORE.  THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF SUCH COURTS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING.  THE PARTIES IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH ACTION OR PROCEEDING IN SUCH COURTS, AS WELL AS ANY CLAIM THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN ANY INCONVENIENT FORUM.

(c)           Service of Process.  THE PARTIES FURTHER IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND TO THE ADDRESS SPECIFIED IN SECTION 13(h) OF THIS AGREEMENT.

 

  

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(d)           Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF.  EACH OF THE PARTIES HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

(e)           Assignment.  This Agreement, and Executive's rights and obligations hereunder, may not be assigned by Executive. Company may assign its rights, together with its obligations, hereunder in connection with any sale, transfer or other disposition of all or substantially all of its business or assets.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties hereto, and their respective heirs, legal representatives, successors and assigns.

(f)           Amendment.  This Agreement cannot be amended orally, or by any course of conduct or dealing, but only by a written agreement duly executed by the Parties.

(g)           Waiver.  The failure of either Party to insist upon the strict performance of any of the terms, conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment of future compliance therewith, and such terms, conditions and provisions shall remain in full force and effect. No waiver of any term or condition of this Agreement on the part of either Party shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such Party.  Unless the written waiver instrument expressly provides otherwise, no waiver by a Party of any right or remedy or breach by the other Party in any particular instance shall be construed to apply to any right, remedy or breach arising out of or related to a subsequent instance.

(h)           Notices.  All notices, demands or other communications desired or required to be given by a Party to the other Party shall be in writing and shall be deemed effectively given upon (i) personal delivery to the Party to be notified, (ii) upon confirmation of receipt of fax or other electronic transmission, (iii) one business day after deposit with a reputable overnight courier, prepaid for priority overnight delivery, or (iv) five days after deposit with the United States Postal Service, postage prepaid, certified mail, return receipt requested, in each case to the Party to be notified at its/his address set forth at the top of this Agreement; or to such other addresses and to the attention of such other individuals as either Party shall have designated to the other by notice given in the foregoing manner.

 

  

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(i)           Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the Parties relating to the subject matter hereof, and supersedes all prior agreements, arrangements and understandings, written or oral between the Parties, relating to the subject matter hereof.

(j)           Affiliate and Control Defined.  As used in this Agreement, the term “affiliate” of a specified Person shall mean and include any Person controlling, controlled by or under common control with the specified Person.  A Person shall be deemed to “control” another Person if such first Person possesses directly or indirectly the power to direct, or cause the direction of, the management and policies of the second Person, whether through the ownership of voting securities, by contract or otherwise.

(k)           Captions, Headings and Cross-References.  The section headings contained herein are for reference purposes and convenience only and shall not in any way affect the meaning or interpretation of this Agreement.  Except as expressly set forth otherwise, all cross-references to sections refer to sections of this Agreement.

(l)           Severability.  In addition to, and not in conflict with, the provisions of Sections 6(b) and 6(f), the Parties agree that each and every provision of this Agreement shall be deemed valid, legal and enforceable in all jurisdictions to the fullest extent possible.  Any provision of this Agreement that is determined to be invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction, be adjusted and reformed rather than voided, if possible, in order to achieve the intent of the Parties.  Any provision of this Agreement that is determined to be invalid, illegal or unenforceable in any jurisdiction which cannot be adjusted and reformed shall for the purposes of that jurisdiction, be voided.  Any adjustment, reformation or voidance of any provisions of this Agreement shall only be effective in the jurisdiction requiring such adjustment or voidance, without affecting in any way the remaining provisions of this Agreement in such jurisdiction or adjusting, reforming, voiding or rendering that provision or any other provision of this Agreement invalid, illegal or unenforceable in any other jurisdiction.

(m)           Counterpart Execution.  This Agreement may be executed in one or more counterparts each of which shall be an original document and all of which together shall constitute one and the same instrument.  The Parties acknowledge that this Agreement may be executed and delivered by means of electronic signatures and that use and acceptance of electronic signatures to bind the Parties represents the voluntary agreement and intention of the Parties to conduct this transaction by electronic means.  The Parties agree that execution and delivery by electronic means will have the same legal effect as if signatures had been manually written on this Agreement.  This Agreement will be deemed lawfully executed by the Parties by such action for purposes of any statute or rule of law that requires this Agreement to be executed by the Parties to make the mutual promises, agreements and obligations of the Parties set forth herein legally enforceable.  Facsimile and .pdf exchanges of signatures will have the same legal force and effect as the exchange of original signatures.  THE PARTIES HEREBY WAIVE ANY RIGHT TO RAISE ANY DEFENSE OR WAIVER BASED UPON EXECUTION OF THIS AGREEMENT BY MEANS OF ELECTRONIC SIGNATURES IN ANY PROCEEDING ARISING UNDER OR RELATING TO THIS AGREEMENT.  The Parties agree that the legal effect, validity and enforceability of this Agreement will not be impaired solely because of its execution in electronic form or that an electronic record was used in its formation.  The Parties acknowledge that they are capable of retaining electronic records of this transaction.

  

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IN WITNESS WHEREOF, the Parties hereto have executed this Employment Agreement as of the date set forth above.

 

	
CORMEDIX INC.

 

 

 

By:        /s/ Randy Milby

Name:  Randy Milby

Title:    Chief Executive Officer

Date:   April 18, 2016

	
EXECUTIVE:

 

 

 

/s/ Antony Pfaffle

Name: Antony Pfaffle M.D.

Title: Chief Scientific Officer

Date: April 18, 2016                                                                

 

  

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APPENDIX A

PRIOR INVENTIONS.

NONE.

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