EMPLOYMENT AGREEMENT
Exhibit 10.16
EMPLOYMENT AGREEMENT, dated as of July 12, 2005 (the “Employment Agreement”), by and
between Coffeyville Resources, LLC, a Delaware limited liability company (the “Company”),
and Xxxxxx X. Xxxxxx (the “Executive”).
WHEREAS, pursuant to the Stock Purchase Agreement, dated as of May 15, 2005 (the “Stock
Purchase Agreement”), between Coffeyville Group Holdings, LLC, a Delaware limited liability
company (“Seller”) and Coffeyville Acquisition LLC, a Delaware limited liability company
(“Buyer”), Buyer purchased from Seller all of the issued and outstanding shares of capital
stock of Coffeyville Pipeline, Inc., Coffeyville Refining & Marketing, Inc., Coffeyville Nitrogen
Fertilizers, Inc., Coffeyville Crude Transportation, Inc. and Coffeyville Terminal, Inc.; and
WHEREAS, the Company and the Executive desire to, effective as of the consummation of the
transactions contemplated in the Stock Purchase Agreement, enter into this Employment Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valid
consideration the sufficiency of which is acknowledged, the parties hereto agree as follows:
Section 1. Employment.
1.1. Term. The Company agrees to employ the Executive, and the Executive agrees to be
employed by the Company, in each case pursuant to this Employment Agreement, for a period
commencing on the “Closing Date” (as such term is defined in the Stock Purchase Agreement)
and ending on the earlier of (i) the third (3rd) anniversary of the Closing Date and
(ii) the termination of the Executive’s employment in accordance with Section 3 hereof (the
“Term”).
1.2. Duties. During the Term, the Executive shall serve as Executive Vice President –
Engineering and Construction of the Company and such other positions as an officer or director of
the Company and such affiliates of the Company as the Executive and the board of directors of the
Company (the “Board”) shall mutually agree from time to time. In such positions, the
Executive shall perform such duties, functions and responsibilities during the Term commensurate
with the Executive’s positions as reasonably directed by the Board.
1.3. Exclusivity. During the Term, the Executive shall devote substantially all of
his working time and attention to the business and affairs of the Company, shall faithfully serve
the Company, and shall in all material respects conform to and comply with the lawful and
reasonable directions and instructions given to him by the Board, consistent with Section 1.2
hereof. During the Term, the Executive shall use his best efforts during his working time to
promote and serve the interests of the Company and shall not engage in any other business activity,
whether or not such activity shall be engaged in for pecuniary profit. The provisions of this
Section 1.3 shall not be construed to prevent the Executive from investing his personal, private
assets as a passive investor in such form or manner as will not require any active services on the
part of the Executive in the management or operation of the affairs of the
companies, partnerships, or other business entities in which any such passive investments are
made. Notwithstanding the foregoing, during the Term the Executive shall not engage in any
activity related to the construction or operation of ammonia, urea ammonium nitrate or fertilizer
plants or facilities anywhere outside of the United States.
Section 2. Compensation.
2.1. Salary. As compensation for the performance of the Executive’s services
hereunder, during the Term, the Company shall pay to the Executive a salary at an annual rate of
Two Hundred Twenty-Five Thousand Dollars ($225,000), payable in accordance with the Company’s
standard payroll policies, as may be adjusted upward by the Board in its discretion (as adjusted,
the “Base Salary”).
2.2. Bonus.
(a) Annual Bonus. For each completed fiscal year occurring during the Term, the
Executive shall be eligible to receive an annual cash bonus (the “Annual Bonus”). The
target Annual Bonus shall be 52% of the Executive’s Base Salary as in effect at the beginning of
such fiscal year, the actual Annual Bonus to be based upon such individual and/or Company
performance criteria established for each such fiscal year by the Board. For 2005, the Executive
will be eligible to receive an Annual Bonus under the 2005 Coffeyville Resources, LLC and
Affiliated Companies Performance Based Income Sharing Plan (the “2005 Plan”) with
appropriate adjustments to the performance criteria thereunder to reflect the impact, if any, of
the transactions contemplated in the Stock Purchase Agreement. Notwithstanding the foregoing, the
Executive shall not be eligible for any pro rata bonus upon termination of the Executive’s
employment under the 2005 Plan (or any successor plan).
(b) Special Bonus. The Executive shall be eligible to participate in any special
bonus program that the Board may implement to reward senior management for extraordinary
performance on terms and conditions established by the Board.
2.3. Employee Benefits. During the Term, the Executive shall be eligible to
participate in such health, insurance, retirement, and other employee benefit plans and programs of
the Company as in effect from time to time on the same basis as other senior executives of the
Company.
2.4. Vacation. During the Term, the Executive shall be entitled to paid vacation in
accordance with the Company’s vacation policy as in effect on the date hereof.
2.5. Business Expenses. The Company shall pay or reimburse the Executive for all
commercially reasonable business out-of-pocket expenses that the Executive incurs during the Term
in performing his duties under this Employment Agreement upon presentation of documentation and in
accordance with the expense reimbursement policy of the Company as approved by the Board and in
effect from time to time.
Section 3. Employment Termination.
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3.1. Termination of Employment. The Company may terminate the Executive’s employment
for any reason during the Term, and the Executive may voluntarily terminate his employment for any
reason during the Term, in each case (other than a termination by the Company for Cause) at any
time upon not less than thirty (30) days’ notice to the other party. Upon the termination of the
Executive’s employment with the Company for any reason (whether during the Term or thereafter), the
Executive shall be entitled to any Base Salary earned but unpaid through the date of termination,
any earned but unpaid Annual Bonus for completed fiscal years, and any unreimbursed expenses in
accordance with Section 2.5 hereof (collectively, the “Accrued Amounts”).
3.2. Certain Terminations.
(a) Termination by the Company Other Than For Cause or Disability; Termination by the
Executive for Good Reason. If (i) the Executive’s employment is terminated by the Company
during the Term other than for Cause or Disability or (ii) the Executive resigns for Good Reason,
in addition to the Accrued Amounts the Executive shall be entitled to the following payments and
benefits: (x) the continuation of his Base Salary at the rate in effect immediately prior to the
date of termination for a period of twelve (12) months and (y) the continuation on the same terms
as an active employee of medical benefits the Executive would otherwise be eligible to receive as
an active employee of the Company for twelve (12) months or until such time as the Executive
becomes eligible for medical benefits from a subsequent employer (such payments, the “Severance
Payments”). The Company’s obligations to make the Severance Payments shall be conditioned
upon: (i) the Executive’s continued compliance with his obligations under Section 4 of this
Employment Agreement and (ii) the Executive’s execution, delivery and non-revocation of a valid and
enforceable release of claims arising in connection with the Executive’s employment and termination
of employment with the Company and its affiliates (the “Release”) in a form reasonably
acceptable to the Company and the Executive. In the event that the Executive breaches any of the
covenants set forth in Section 4 of this Employment Agreement, the Executive will immediately
return to the Company any portion of the Severance Payments that have been paid to the Executive
pursuant to this Section 3.2(a). Subject to Section 3.2(c), the Severance Payments will commence
to be paid to the Executive as soon as practicable following the effectiveness of the Release.
(b) Definitions. For purposes of this Section 3.2, the following terms shall have the
following meanings:
(1) A termination for “Good Reason” shall mean a termination by the Executive within
thirty (30) days following the date on which the Company has engaged in any of the following: (i)
the assignment of duties or responsibilities to the Executive that reflect a material diminution of
the Executive’s position with the Company; (ii) a relocation of the Executive’s principal place of
employment that increases the Executive’s commute by more than fifty (50) miles; or (iii) a
reduction in the Executive’s Base Salary, other than across-the-board reductions applicable to
similarly situated employees of the Company; provided, however, that the Executive
must provide the Company with notice promptly following the occurrence of any of foregoing and at
least ten (10) business days to cure.
(2) “Cause” shall mean that the Executive has engaged
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in any of the following: (i) willful misconduct or breach of fiduciary duty; (ii) intentional
failure or refusal to perform reasonably assigned duties after written notice of such willful
failure or refusal and the failure or refusal is not corrected within ten (10) business days; (iii)
the indictment for, conviction of or entering a plea of guilty or nolo contendere to a crime
constituting a felony (other than a traffic violation or other offense or violation outside of the
course of employment which does not adversely affect the Company and its affiliates or their
reputation or the ability of the Executive to perform his employment-related duties or to represent
the Company); provided, however, that (A) if the Executive is terminated for Cause
by reason of his indictment pursuant to this clause (iii) and the indictment is subsequently
dismissed or withdrawn or the Executive is found to be not guilty in a court of law in connection
with such indictment, then the Executive’s termination shall be treated for purposes of this
Employment Agreement as a termination by the Company other than for Cause, and the Executive will
be entitled to receive (without duplication of benefits and to the extent permitted by law and the
terms of the then-applicable medical benefit plans) the payments and benefits set forth in Section
3.2(a) following such dismissal, withdrawal or finding, payable in the manner and subject to the
conditions set forth in such Section and (B) if such indictment relates to environmental matters
and does not allege that the Executive was directly involved in or directly supervised the
action(s) forming the basis of the indictment, Cause shall not be deemed to exist under this
Employment Agreement by reason of such indictment until the Executive is convicted or enters a plea
of guilty or nolo contendere in connection with such indictment; or (iv) material breach of the
Executive’s covenants in Section 4 of this Employment Agreement or any material written policy of
the Company after written notice of such breach and failure by the Executive to correct such breach
within ten (10) business days, provided that no notice of, nor opportunity to correct, such
breach shall be required hereunder if such breach cannot be cured by the Executive.
(3) “Disability” shall mean the Executive’s inability, due to physical or mental ill
health, to perform the essential functions of the Executive’s job, with or without a reasonable
accommodation, for 180 days during any 365 day period irrespective of whether such days are
consecutive.
(c) Section 409A. Any payments under Section 2.2 of this Employment Agreement shall
be made no later than two and one-half months after the later of the end of the Company’s fiscal
year in which all conditions entitling the Executive to such payments have been satisfied or the
calendar year in which all conditions entitling the Executive to such payments have been satisfied.
If the Executive is a “specified employee” for purposes of Section 409A of the Code and the
regulations thereunder, any Severance Payments required to be made pursuant to Section 3.2(a) which
are subject to Section 409A shall not commence until six (6) months from the date of termination,
with the first payment equaling six (6) months of his Base Salary at the rate in effect immediately
prior to the date of termination.
3.3. Exclusive Remedy. The foregoing payments upon termination of the Executive’s
employment shall constitute the exclusive severance payments due the Executive upon a termination
of his employment under this Employment Agreement.
3.4. Resignation from All Positions. Upon the termination of the Executive’s
employment with the Company for any reason, the Executive shall be deemed to have resigned, as of
the date of such termination, from all positions he then holds as an officer,
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director, employee and member of the board (and any committee thereof) of the Company and any
of its direct or indirect subsidiaries (collectively, the “Subsidiaries”).
3.5. Cooperation. For one (1) year following the termination of the Executive’s
employment with the Company for any reason, the Executive agrees to reasonably cooperate with the
Company upon reasonable request of the Board and to be reasonably available to the Company with
respect to matters arising out of the Executive’s services to the Company and its Subsidiaries.
The Company shall reimburse the Executive for expenses reasonably incurred in connection with such
matters as agreed by the Executive and the Board and the Company shall compensate the Executive for
such cooperation at an hourly rate based on the Executive’s most recent base salary rate assuming
two thousand (2,000) working hours per year; provided, that if the Executive is required to
spend more than forty (40) hours in any month on Company matters pursuant to this Section 3.5, the
Executive and the Board shall mutually agree to an appropriate rate of compensation for the
Executive’s time over such forty (40) hour threshold.
Section 4. Unauthorized Disclosure; Non-Solicitation; Non-Competition;
Proprietary Rights.
4.1. Unauthorized Disclosure. The Executive agrees and understands that in the
Executive’s position with the Company, the Executive has been and will be exposed to and has and
will receive information relating to the confidential affairs of the Company and its affiliates,
including, without limitation, technical information, intellectual property, business and marketing
plans, strategies, customer information, software, other information concerning the products,
promotions, development, financing, expansion plans, business policies and practices of the Company
and its affiliates and other forms of information considered by the Company and its affiliates to
be confidential and in the nature of trade secrets (including, without limitation, ideas, research
and development, know-how, formulas, technical data, designs, drawings, specifications, customer
and supplier lists, pricing and cost information and business and marketing plans and proposals)
(collectively, the “Confidential Information”); provided, however, that
Confidential Information shall not include information which (i) is or becomes generally available
to the public not in violation of this Employment Agreement or any written policy of the Company;
or (ii) was in the Executive’s possession or knowledge on a non-confidential basis prior to such
disclosure. The Executive agrees that at all times during the Executive’s employment with the
Company and thereafter, the Executive shall not disclose such Confidential Information, either
directly or indirectly, to any individual, corporation, partnership, limited liability company,
association, trust or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof (each a “Person”) without the prior written consent
of the Company and shall not use or attempt to use any such information in any manner other than in
connection with his employment with the Company, unless required by law to disclose such
information, in which case the Executive shall provide the Company with written notice of such
requirement as far in advance of such anticipated disclosure as possible. This confidentiality
covenant has no temporal, geographical or territorial restriction. Upon termination of the
Executive’s employment with the Company, the Executive shall promptly supply to the Company all
property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence,
tapes, disks, cards, surveys, maps, logs, machines, technical data and any other tangible product
or document which has been produced by, received
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by or otherwise submitted to the Executive during or prior to the Executive’s employment with
the Company, and any copies thereof in his (or capable of being reduced to his) possession.
4.2. Non-Competition. By and in consideration of the Company’s entering into this
Employment Agreement and the payments to be made and benefits to be provided by the Company
hereunder, and in further consideration of the Executive’s exposure to the Confidential Information
of the Company and its affiliates, the Executive agrees that the Executive shall not, during the
Executive’s employment with the Company (whether during the Term or thereafter) and for a period of
twelve (12) months thereafter (the “Restriction Period”), directly or indirectly, own,
manage, operate, join, control, be employed by, or participate in the ownership, management,
operation or control of, or be connected in any manner with, including, without limitation, holding
any position as a stockholder, director, officer, consultant, independent contractor, employee,
partner, or investor in, any Restricted Enterprise (as defined below); provided, that in no
event shall ownership of one percent (1%) or less of the outstanding securities of any class of any
issuer whose securities are registered under the Securities Exchange Act of 1934, as amended,
standing alone, be prohibited by this Section 4.2, so long as the Executive does not have, or
exercise, any rights to manage or operate the business of such issuer other than rights as a
stockholder thereof. For purposes of this paragraph, “Restricted Enterprise” shall mean
any Person that is actively engaged in any business which is either (i) in competition with the
business of the Company or any of its Subsidiaries conducted during the preceding twelve (12)
months (or following the Executive’s termination of employment, the twelve (12) months preceding
the date of termination of the Executive’s employment with the Company) or (ii) proposed to be
conducted by the Company or any of its Subsidiaries in the Company’s business plan as in effect at
that time (or following the Executive’s termination of employment, the business plan as in effect
as of the date of termination of the Executive’s employment with the Company); provided,
that (x) with respect to any Person that is actively engaged in the refinery business, a Restricted
Enterprise shall only include such a Person that operates or markets in any geographic area in
which the Company or any of its Subsidiaries operates or markets with respect to its refinery
business and (y) with respect to any Person that is actively engaged in the fertilizer business, a
Restricted Enterprise shall only include such a Person that operates or markets in any geographic
area in which the Company or any of its Subsidiaries operates or markets with respect to its
fertilizer business. During the Restriction Period, upon request of the Company, the Executive
shall notify the Company of the Executive’s then-current employment status. For the avoidance of
doubt, a Restricted Enterprise shall not include any Person or division thereof that is engaged in
the business of supplying (but not refining) crude oil or natural gas.
4.3. Non-Solicitation of Employees. During the Restriction Period, the Executive
shall not directly or indirectly contact, induce or solicit (or assist any Person to contact,
induce or solicit) for employment any person who is, or within twelve (12) months prior to the date
of such solicitation was, an employee of the Company or any of its Subsidiaries.
4.4. Non-Solicitation of Customers/Suppliers. During the Restriction Period, the
Executive shall not (i) contact, induce or solicit (or assist any Person to contact, induce or
solicit) any Person which has a business relationship with the Company or of any of its
Subsidiaries in order to terminate, curtail or otherwise interfere with such business relationship
or (ii) solicit, other than on behalf of the Company and its Subsidiaries, any Person that the
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Executive knows or should have known (x) is a current customer of the Company or any of its
Subsidiaries in any geographic area in which the Company or any of its Subsidiaries operates or
markets or (y) is a Person in any geographic area in which the Company or any of its Subsidiaries
operates or markets with respect to which the Company or any of its Subsidiaries has, within the
twelve (12) months prior to the date of such solicitation, devoted more than de minimis resources
in an effort to cause such Person to become a customer of the Company or any of its Subsidiaries in
that geographic area. For the avoidance of doubt, the foregoing does not preclude the Executive
from soliciting, outside of the geographic areas in which the Company or any of its Subsidiaries
operates or markets, any Person that is a customer or potential customer of the Company or any of
its Subsidiaries in the geographic areas in which it operates or markets.
4.5. Extension of Restriction Period. The Restriction Period shall be tolled for any
period during which the Executive is in breach of any of Sections 4.2, 4.3 or 4.4 hereof.
4.6. Proprietary Rights. The Executive shall disclose promptly to the Company any and
all inventions, discoveries, and improvements (whether or not patentable or registrable under
copyright or similar statutes), and all patentable or copyrightable works, initiated, conceived,
discovered, reduced to practice, or made by him, either alone or in conjunction with others, during
the Executive’s employment with the Company and related to the business or activities of the
Company and its affiliates (the “Developments”). Except to the extent any rights in any
Developments constitute a work made for hire under the U.S. Copyright Act, 17 U.S.C. § 101 et seq.
that are owned ab initio by the Company and/or its applicable affiliate, the Executive assigns all
of his right, title and interest in all Developments (including all intellectual property rights
therein) to the Company or its nominee without further compensation, including all rights or
benefits therefor, including without limitation the right to xxx and recover for past and future
infringement. The Executive acknowledges that any rights in any developments constituting a work
made for hire under the U.S. Copyright Act, 17 U.S.C § 101 et seq. are owned upon creation by the
Company and/or its applicable affiliate as the Executive’s employer. Whenever requested to do so
by the Company, the Executive shall execute any and all applications, assignments or other
instruments which the Company shall deem necessary to apply for and obtain trademarks, patents or
copyrights of the United States or any foreign country or otherwise protect the interests of the
Company and its affiliates therein. These obligations shall continue beyond the end of the
Executive’s employment with the Company with respect to inventions, discoveries, improvements or
copyrightable works initiated, conceived or made by the Executive while employed by the Company,
and shall be binding upon the Executive’s employers, assigns, executors, administrators and other
legal representatives. In connection with his execution of this Employment Agreement, the
Executive has informed the Company in writing of any interest in any inventions or intellectual
property rights that he holds as of the date hereof. If the Company is unable for any reason,
after reasonable effort, to obtain the Executive’s signature on any document needed in connection
with the actions described in this Section 4.6, the Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as the Executive’s agent and
attorney in fact to act for and in the Executive’s behalf to execute, verify and file any such
documents and to do all other lawfully permitted acts to further the purposes of this section with
the same legal force and effect as if executed by the Executive.
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4.7. Confidentiality of Agreement. Other than with respect to information required to
be disclosed by applicable law, the parties hereto agree not to disclose the terms of this
Employment Agreement to any Person; provided the Executive may disclose this Employment Agreement
and/or any of its terms to the Executive’s immediate family, financial advisors and attorneys.
Notwithstanding anything in this Section 4.7 to the contrary, the parties hereto (and each of their
respective employees, representatives, or other agents) may disclose to any and all Persons,
without limitation of any kind, the tax treatment and tax structure of the transactions
contemplated by this Employment Agreement, and all materials of any kind (including opinions or
other tax analyses) related to such tax treatment and tax structure; provided that this sentence
shall not permit any Person to disclose the name of, or other information that would identify, any
party to such transactions or to disclose confidential commercial information regarding such
transactions.
4.8. Remedies. The Executive agrees that any breach of the terms of this Section 4
would result in irreparable injury and damage to the Company for which the Company would have no
adequate remedy at law; the Executive therefore also agrees that in the event of said breach or any
threat of breach, the Company shall be entitled to an immediate injunction and restraining order to
prevent such breach and/or threatened breach and/or continued breach by the Executive and/or any
and all Persons acting for and/or with the Executive, without having to prove damages, in addition
to any other remedies to which the Company may be entitled at law or in equity, including, without
limitation, the obligation of the Executive to return any Severance Payments made by the Company to
the Company. The terms of this paragraph shall not prevent the Company from pursuing any other
available remedies for any breach or threatened breach hereof, including, without limitation, the
recovery of damages from the Executive. The Executive and the Company further agree that the
provisions of the covenants contained in this Section 4 are reasonable and necessary to protect the
businesses of the Company and its affiliates because of the Executive’s access to Confidential
Information and his material participation in the operation of such businesses.
Section 5. Representation.
The Executive represents and warrants that (i) he is not subject to any contract, arrangement,
policy or understanding, or to any statute, governmental rule or regulation, that in any way limits
his ability to enter into and fully perform his obligations under this Employment Agreement and
(ii) he is not otherwise unable to enter into and fully perform his obligations under this
Employment Agreement.
Section 6. Withholding.
All amounts paid to the Executive under this Employment Agreement during or following the Term
shall be subject to withholding and other employment taxes imposed by applicable law.
Section 7. Effect of Section 280G of the Internal Revenue Code.
7.1. Payment Reduction. Notwithstanding anything contained in this Employment
Agreement to the contrary, to the extent that any payment or distribution of
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any type to or for the Executive by the Company, any affiliate of the Company, any Person who
acquires ownership or effective control of the Company or ownership of a substantial portion of the
Company’s assets (within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”) and the regulations thereunder), or any affiliate of such Person,
whether paid or payable or distributed or distributable pursuant to the terms of this Employment
Agreement or otherwise (the “Payments”) is or will be subject to the excise tax imposed
under Section 4999 of the Code (the “Excise Tax”), then the Payments shall be reduced (but
not below zero) if and to the extent necessary so that no Payments to be made or benefit to be
provided to the Executive shall be subject to the Excise Tax; provided, however,
that the Company shall use its reasonable best efforts to obtain shareholder approval of the
Payments provided for in this Employment Agreement in a manner intended to satisfy requirements of
the “shareholder approval” exception to Section 280G of the Code and the regulations promulgated
thereunder, such that payment may be made to the Executive of such Payments without the application
of an Excise Tax. Unless the Executive shall have given prior written notice to the Company
specifying a different order by which to effectuate the reduction, the Company shall reduce or
eliminate the Payments (x) by first reducing or eliminating the portion of the Payments which are
not payable in cash (other than that portion of the Payments subject to clause (z) hereof), (y)
then by reducing or eliminating cash payments (other than that portion of the Payments subject to
clause (z) hereof) and (z) then by reducing or eliminating the portion of the Payments (whether
payable in cash or not payable in cash) to which Treasury Regulation § 1.280G-1 Q/A 24(c) (or
successor thereto) applies, in each case in reverse order beginning with payments or benefits which
are to be paid the farthest in time. Any notice given by the Executive pursuant to the preceding
sentence shall take precedence over the provisions of any other plan, arrangement or agreement
governing the Executive’s rights and entitlements to any benefits or compensation.
7.2. Determination of Amount of Reduction. The determination of whether the Payments
shall be reduced as provided in Section 7.1 and the amount of such reduction shall be made at the
Company’s expense by an accounting firm selected by the Company from among the four (4) largest
accounting firms in the United States (the “Accounting Firm”). The Accounting Firm shall
provide its determination (the “Determination”), together with detailed supporting
calculations and documentation, to the Company and the Executive within ten (10) days after the
Executive’s final day of employment. If the Accounting Firm determines that no Excise Tax is
payable by the Executive with respect to the Payments, it shall furnish the Executive with an
opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to
any such payments and, absent manifest error, such Determination shall be binding, final and
conclusive upon the Company and the Executive.
Section 8. Miscellaneous.
8.1. Amendments and Waivers. This Employment Agreement and any of the provisions
hereof may be amended, waived (either generally or in a particular instance and either
retroactively or prospectively), modified or supplemented, in whole or in part, only by written
agreement signed by the parties hereto; provided, that, the observance of any provision of
this Employment Agreement may be waived in writing by the party that will lose the benefit of such
provision as a result of such waiver. The waiver by any party hereto of a breach of any provision
of this Employment Agreement shall not operate or be construed as a further or
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continuing waiver of such breach or as a waiver of any other or subsequent breach, except as
otherwise explicitly provided for in such waiver. Except as otherwise expressly provided herein,
no failure on the part of any party to exercise, and no delay in exercising, any right, power or
remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a
waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such
party preclude any other or further exercise thereof or the exercise of any other right, power or
remedy.
8.2. Indemnification. To the extent provided in the Amended and Restated Limited
Liability Company Agreement of Coffeyville Acquisition LLC, dated as of June 24, 2005, as in effect
from time to time, the Company shall indemnify the Executive for losses or damages incurred by the
Executive as a result of causes of action arising from the Executive’s performance of duties for
the benefit of the Company, whether or not the claim is asserted during the Term.
8.3. Assignment. This Employment Agreement, and the Executive’s rights and
obligations hereunder, may not be assigned by the Executive, and any purported assignment by the
Executive in violation hereof shall be null and void.
8.4. Notices. Unless otherwise provided herein, all notices, requests, demands,
claims and other communications provided for under the terms of this Employment Agreement shall be
in writing. Any notice, request, demand, claim or other communication hereunder shall be sent by
(i) personal delivery (including receipted courier service) or overnight delivery service, (ii)
facsimile during normal business hours, with confirmation of receipt, to the number indicated,
(iii) reputable commercial overnight delivery service courier or (iv) registered or certified mail,
return receipt requested, postage prepaid and addressed to the intended recipient as set forth
below:
| If to the Company: | ||||||
| Coffeyville Resources, LLC | ||||||
| 00 X. Xxxxxxxxx Xxxxxx, Xxxxx 000 | ||||||
| Xxxxxx Xxxx, XX 00000 | ||||||
| Attention: General Counsel | ||||||
| Facsimile: (000) 000-0000 | ||||||
| with a copy to: | ||||||
| Fried, Frank, Harris, Xxxxxxx & Xxxxxxxx LLP | ||||||
| Xxx Xxx Xxxx Xxxxx | ||||||
| Xxx Xxxx, XX 00000 | ||||||
| Attention: Xxxxxx X. Xxxxxxx, Esq. | ||||||
| Facsimile: (000) 000-0000 |
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| If to the Executive: | ||||||
| Xxxxxx X. Xxxxxx | ||||||
| 0000 Xxxx Xxxxx Xxxxx | ||||||
| Xxxxxxxx, XX 00000 |
All such notices, requests, consents and other communications shall be deemed to have been
given when received. Any party may change its facsimile number or its address to which notices,
requests, demands, claims and other communications hereunder are to be delivered by giving the
other parties hereto notice in the manner then set forth.
8.5. Governing Law. This Employment Agreement shall be construed and enforced in
accordance with, and the rights and obligations of the parties hereto shall be governed by, the
laws of the State of Kansas, without giving effect to the conflicts of law principles thereof.
Each of the parties hereto irrevocably and unconditionally consents to submit to the exclusive
jurisdiction of the courts of Kansas (collectively, the “Selected Courts”) for any action
or proceeding relating to this Employment Agreement, agrees not to commence any action or
proceeding relating thereto except in the Selected Courts, and waives any forum or venue objections
to the Selected Courts.
8.6. Severability. Whenever possible, each provision or portion of any provision of
this Employment Agreement, including those contained in Section 4 hereof, will be interpreted in
such manner as to be effective and valid under applicable law but the invalidity or
unenforceability of any provision or portion of any provision of this Employment Agreement in any
jurisdiction shall not affect the validity or enforceability of the remainder of this Employment
Agreement in that jurisdiction or the validity or enforceability of this Employment Agreement,
including that provision or portion of any provision, in any other jurisdiction. In addition,
should a court or arbitrator determine that any provision or portion of any provision of this
Employment Agreement, including those contained in Section 4 hereof, is not reasonable or valid,
either in period of time, geographical area, or otherwise, the parties hereto agree that such
provision should be interpreted and enforced to the maximum extent which such court or arbitrator
deems reasonable or valid.
8.7. Entire Agreement. From and after the Closing Date, this Employment Agreement
constitutes the entire agreement between the parties hereto, and supersedes all prior
representations, agreements and understandings (including any prior course of dealings), both
written and oral, between the parties hereto with respect to the subject matter hereof.
8.8. Counterparts. This Employment Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all such counterparts shall together
constitute one and the same instrument.
8.9. Binding Effect. This Employment Agreement shall inure to the benefit of, and be
binding on, the successors and assigns of each of the parties, including,
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without limitation, the Executive’s heirs and the personal representatives of the Executive’s
estate and any successor to all or substantially all of the business and/or assets of the Company.
8.10. General Interpretive Principles. The name assigned this Employment Agreement
and headings of the sections, paragraphs, subparagraphs, clauses and subclauses of this Employment
Agreement are for convenience of reference only and shall not in any way affect the meaning or
interpretation of any of the provisions hereof. Words of inclusion shall not be construed as terms
of limitation herein, so that references to “include”, “includes” and “including” shall not be
limiting and shall be regarded as references to non-exclusive and non-characterizing illustrations.
8.11. Mitigation. Notwithstanding any other provision of this Employment Agreement,
(a) the Executive will have no obligation to mitigate damages for any breach or termination of this
Employment Agreement by the Company, whether by seeking employment or otherwise and (b) except for
medical benefits provided pursuant to Section 3.2(a), the amount of any payment or benefit due the
Executive after the date of such breach or termination will not be reduced or offset by any payment
or benefit that the Executive may receive from any other source.
[signature page follows]
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IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date
first written above.
| COFFEYVILLE RESOURCES, LLC | ||||||||
/s/
Xxxxxx X. Xxxxxx
|
By: | /s/ Xxxx X. Xxxxxxxx | ||||||
| Title: CEO | ||||||||
