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Agreement for Adjustment and Termination of Services under Kraton/Shell SUMF and OMS
Agreements at Pernis
 Agreement SNC Kraton Parties
      1.
    
    Definitions and Inconsistencies.
 1.1
    
    Definitions and Procedures.Unless the context shall otherwise require and unless
otherwise provided herein, capitalized terms used herein shall have the meanings set
forth in SUMFs and OMS Agreements.CMR is the monomers and rubber complex at the Site including the rubber warehouses.1.2
    
    Inconsistencies.In the event of any inconsistency, this Agreement shall prevail
over the SUMFs and OMS Agreements.
 2.
    
    Reduced Production
 2.1
    
    SIS Plant. At some point Kraton intends to shutdown their SIS plant at
Pernis. Such shutdown will reduce Kratons need for workers under the OMS Agreement. It
is expect that the shutdown will take place in stages but could begin before the end of
calendar year 2007.2.2
    
    IR Plant. At some point Kraton intends to shutdown their IR plant. Such
shutdown will reduce Kratons need for workers under the OMS Agreement. It is expected
that the shutdown will take place in stages and could be fully implemented around the
end of calendar year 2009. The final shutdown will be coordinated with the business
needs of both Parties and SCE and with the intended shutdown of SNCs Isoprene plant.2.3
    
    Timing for SIS and IR Plant Shutdowns. During the course of the next
several months Kraton will provide SNC with its Production and Manpower Case outlining
the probable closure time for its SIS and IR plants taking into account the business
needs of both Parties and SCE. Kraton




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agrees that it will notify SNC as soon as possible if any changes are to be made to
the Production and Manpower Case. In all cases the time restrictions in section 2.5
shall apply.2.4
    
    Manpower Planning. The Parties will cooperate over the nest two years to
reach agreement upon a Production and Manpower Plan on the basis of the (in line with
art. 2.3 amended) Production and Manpower Case to allow for the smoothest transitions.
Part of the Production and Manpower Plan will be a phased schedule for the release of
staff from the CMR. In this Plan Kraton will provide at least two calendar months
written notice of any FTE reduction it requires.2.5
    
    Payment for early return of workers. Notwithstanding and in lieu of any
provisions for termination of workers or for reimbursement of redundancy costs in SUMFs,
OMS or required by law, Kraton agrees to pay SNC for each worker released from service
at the CMR by SNC in response to a request by Kraton to reduce the FTE level in line
with the Production and Manpower Plan and returned to service at SNC or an affiliate of
SNC the following:
 (i)
    
    For the first 22 workers returned, Kraton will pay a lump sum
payment of 12,000 per worker per month for 5 months as each worker is
released as described above.(ii)
    
    For the remainder of the FTEs currently employed in the service of
Kraton at the CMR (38 FTEs) Kraton will pay a lump sum payment of 23,000 per
worker per month for 5 months as each worker is released as described above.
 2.6
    
    Timing of Payments. Thirty (30) days after the release and return of one
or more workers by Kraton to SNC; the amount due in accordance with Section 2.4 above
shall be paid by Kraton to SNC. Invoices for such amount shall be required.
 3.
    
    Other SUMFs and OMS Adjustments.
 3.1
    
    Adjustment for Reduced Production. SNC agrees that charges directly
attributable to the production of product in Kratons SIS and IR plants and which are
variable or reasonably proratable under the SUMFs and OMS Agreements will be adjusted
accordingly and SNC agrees that it will waive any notice period for such reduction or
termination of services and accepts the release of Falls provided for in Section 2.5
provided (i) that such notice also clearly sets out Kratons intended reduction in
production, and (ii) it is in line with the Production and Manpower Plan.
 4.
    
    Other Agreements.
 4.1
    
    Staffing Level at CMR.The Parties agree that the current full staffing
level at the CMR for all of the Kraton Plants operated by SNC shall be deemed to be 60
FTEs.4.2
    
    2007 Overdues.Kraton agrees, to the extent that any outstanding
balances from invoices submitted to Kraton by SNC in 2007 remain unpaid as of the date
of this agreement, such outstanding balances shall be paid immediately in full.4.3
    
    2006 Overdues. The Parties agree that any outstanding balances from
invoices submitted by SNC to Kraton in 2006 will be paid in full but that the date of
payment will be extended by SNC to October 31, 2007.
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4.4
    
    Interest. SNC agrees to waive all accrued interest on overdue balances
from 2006.4.5
    
    Production and Manpower Planning. The Parties agree that they will
closely cooperate on implementing the Production and Manpower Plan for the Kraton plants
during the next two years.4.6
    
    Staff Councils. The implementation of this Agreement shall be subject to
consultation with the appropriate staff councils as required by contract or law. If
necessary the Parties agree to cooperate in good faith to adjust this agreement to meet
the requirements of any such consultation with the intent to retain the intentions of
the Parties as expressed in this Agreement.
 5.
    
    Other Provisions of the SUMFs and OMS Agreements.
   Shell Nederland Chemie B.V.By:
    
    
    
    
    
    By:Name:
    


    
    
    
    Name:Title:
    
    
    
    
    
    Title:Kraton Polymers Nederland B.V.By:
    
    
    
    
    
    By:Name:
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    Title:
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