Document:

Employment Separation and General Release Agreement

 Exhibit 10.34 
 EMPLOYMENT SEPARATION 
 AND GENERAL RELEASE AGREEMENT 
 This Employment Separation and General Release Agreement (this “Separation
Agreement”), is entered into this 21st day of June 2006, by and between Jeffrey M. Nodland, an individual
(“Executive”), and Hexion Specialty Chemicals Inc., a New Jersey corporation (the “Company”). 
 WHEREAS, Executive was employed as the President, Coatings & Inks for the Company; and 
 WHEREAS, Executive
resigned from the Company and Executive and the Company mutually agreed to terminate Executive’s employment relationship with the Company upon the terms set forth herein; 
 NOW, THEREFORE, in consideration of the covenants undertaken and the releases contained in this Separation Agreement, Executive and the Company
agree as follows: 
  

	 	I.	Resignation.  

 A. Resignation
Effective May 13, 2006. Executive irrevocably resigns as an officer, director, employee, member, manager and in any other capacity with the Company and each of its affiliates, effective May 13, 2006 (the “Separation
Date”). Concurrently with the execution of this Separation Agreement, Executive shall execute the letter attached as Exhibit A hereto and promptly deliver such letter to the Company. The Company and its affiliates accept such
resignation. Executive acknowledges and agrees that all payments due to Executive from the Company after the Separation Date shall be determined under this Separation Agreement. 
 B. Termination of Prior Employment Agreements. Executive shall have no further rights pursuant to any prior agreement with the Company or any of
its affiliates governing the terms of Executive’s employment by any of them, except to the extent necessary to effect the payments contemplated by Section II.D. 
  

	 	II.	Severance. 

 A. Severance Pay.
The Company shall pay as severance pay to Executive an aggregate amount equal to $325,000, less legally required withholding and authorized deductions. Such amount shall be paid in a series of substantially equal installment payments (each
constituting a fraction of the aggregate severance amount and with such installments paid not less frequently than monthly) over a period not to exceed one year after the Separation Date. The Company shall commence such installments within thirty
(30) days following the Separation Date. The Company agrees that in the event that Executive accepts employment that requires he relocate outside of Texas, all remaining payments under this section will be accelerated and paid as a cash lump
sum payment promptly following Executive’s notice to the Company of his relocation and providing such information to support the relocation requirement as the Company may reasonably request. 
  

 1 

 B. Outplacement. The Company shall provide Executive with the level of outplacement
services customarily provided to its senior executives, such outplacement services will be provided by either Drake Beam Morin or Right Associates as determined by the Executive. Such outplacement services are to be in effect upon the
Executive’s initiations of a program with the outplacement provider (which, in any event, will be within ninety (90) days after the Separation Date) and ending twelve (12) months thereafter; provided, however, that the Company’s
obligation under this Section II.B shall cease immediately upon Executive’s obtaining subsequent employment. 
 C. Health Benefit
Continuation. The Company shall promptly pay Executive a lump sum amount of $13,860 (subject to tax withholding), such amount intended to cover the cost of Executive’s premiums charged to continue medical coverage pursuant to the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”), for twelve months at the same or reasonably equivalent medical coverage for Executive (and, if applicable, Executive’s eligible dependents) as in effect immediately
prior to the Separation Date. Executive may elect to continue medical coverage pursuant to COBRA; however, Executive shall be required to pay all premiums associated therewith. 
 D. Remaining Payments. Executive and the Company acknowledge and agree that Executive is entitled to payment of the following amounts at
the times indicated: (1) the amount of Executive’s prorated bonus earned for 2006 under the Company’s Incentive Compensation Plan (“ICP”), as determined by the Company’s Board of Directors in its sole discretion,
such amount to be paid at the same time bonuses for 2006 are paid to ICP participants generally; (2) a cash payment equal to the value of any portion of Executive’s account under the Hexion Specialty Chemicals Retirement Savings Plan (the
“Retirement Plan”) that was unvested as of the Separation Date, such amount estimated to equal approximately $3,528 (subject to tax withholding) and to be paid upon or promptly following the Separation Date; and (3) the amount of the
dividend payment to be made in respect of Executive’s vested stock options pursuant to that certain letter agreement between Executive and the Company dated May 31, 2005, such amount to be paid on or as soon as practicable after
June 1, 2007 as provided in such letter agreement. The parties hereby agree that the amount referred to in clause (3) above is $610,143.00 (subject to tax withholding). In addition, Executive’s benefit pursuant to the Retirement Plan
will be paid in accordance with the terms and conditions of that plan. In addition, Executive’s rights with respect to his options to acquire an aggregate of 96,348.69 Hexion LLC units will continue in effect in accordance with the terms and
conditions of the applicable written stock option agreement(s) evidencing such options and the terms and conditions of the stock option plan under which the options were granted (including, without limitation, any applicable termination of
employment rules); provided that such options shall be fully vested as of the Separation Date. The Company also agrees to reimburse Executive for any business expenses incurred by him on or before the Separation Date in the course of performing his
obligations for the Company in accordance with the Company’s usual expense reimbursement policies and procedures; provided that Executive submits such expenses to the Company for reimbursement no later than June 30, 2006 and provided that
such expenses are reasonable, customary, and generally consistent with past expenses submitted by Executive for reimbursement by the Company. 
  

 2 

 E. No Other Benefits. The severance payments and benefits pursuant to this Section II are
for and in lieu of any other payments or benefits (and, except as specifically provided herein, none shall accrue) beyond the Separation Date. Executive specifically acknowledges and agrees that he is not, and will not be, entitled to receive any
severance pay or other benefits pursuant to any severance plan or policy of the Company or any of its affiliates. Executive acknowledges and agrees that he has received all compensation and benefits due to him from the Company other than as
expressly provided in this Section II. 
 III. Non-Disparagement. Executive agrees that he shall not (1)
directly or indirectly, make or ratify any statement, public or private, oral or written, to any person that disparages, either professionally or personally, the Company or any of its affiliates, past and present, and each of them, as well as its
and their trustees, directors, officers, members, managers, partners, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, or (2) make any statement or engage in any
conduct that has the purpose or effect of disrupting the business of the Company or any of its affiliates. Neither the Company’s Board of Directors, any senior executive officer of the Company with the authority to speak for the Company, nor
any other officer or employee of the Company with the authority to speak on behalf of the Company as a whole as to matters of fundamental high-level importance to the Company (such as, for example, corporate earnings, corporate restructurings, and
similar fundamental issues) and speaking in that capacity in a formal setting shall, directly or indirectly, make or ratify any statement, public or private, oral or written, to any person that disparages, either professionally or personally,
Executive. Nothing in this Section III shall in any way prohibit Executive, the Company, the Company’s Board of Directors, or any senior executive officer of the Company from disclosing such information as may be required by law, or by judicial
or administrative process or order or the rules of any securities exchange or similar self-regulatory organization applicable to Executive, the Company, the Company’s Board of Directors, or any senior executive officer of the Company in the
circumstances. 
 IV. Release. Executive on behalf of himself, his descendants, dependents, heirs,
executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases and discharges the Company and each of its parents, subsidiaries and affiliates, past and present, as well as its and their
trustees, directors, officers, members, managers, partners, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, hereinafter together and collectively referred to as the
“Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments,
orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which he now owns or holds or he has at any time heretofore owned or held
or may in the future hold as against any of said Releasees, arising out of or in any way connected with his service as an officer, director, employee, member or manager of any Releasee, his separation from his position as an officer, director,
employee, manager and/or member, as applicable, of any Releasee, or any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever, 

  

 3 

 
known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of said Releasees, or any of them, committed or omitted
prior to the date of this Separation Agreement including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities
Act, the Family and Medical Leave Act of 1993, any state or local anti-discrimination laws or regulations, or any claim for severance pay, bonus, sick leave, holiday pay, vacation pay, life insurance, health or medical insurance or any other fringe
benefit, workers’ compensation or disability; provided that such release shall not apply to any obligation created by or arising out of this Separation Agreement, or otherwise specifically provided for in Section II.A, II.B, II.C, or
II.D above, for which receipt or satisfaction has not been acknowledged. 
 V. Additional Waiver. It is the
intention of Executive in executing this instrument that the same shall be effective as a bar to each and every claim, demand and cause of action hereinabove specified. In furtherance of this intention, Executive expressly consents that this
Separation Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those related to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to
any other claims, demands and causes of action hereinabove specified. Executive acknowledges that he may hereafter discover claims or facts in addition to or different from those which Executive now knows or believes to exist with respect to the
subject matter of this Separation Agreement and which, if known or suspected at the time of executing this Separation Agreement, may have materially affected this settlement. Nevertheless, Executive hereby waives any right, claim or cause of action
that might arise as a result of such different or additional claims or facts. 
 VI. ADEA Waiver. Executive
expressly acknowledges and agrees that by entering into this Separation Agreement, he is waiving any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended, which have arisen on or before
the date of execution of this Separation Agreement. Executive further expressly acknowledges and agrees that: 
 A. In return for this
Separation Agreement, he will receive consideration beyond that which he was already entitled to receive before entering into this Separation Agreement; 
 B. He is hereby advised in writing by this Separation Agreement to consult with an attorney before signing this Separation Agreement; 
 C. He was given a copy of this Separation Agreement on June 21, 2006 and informed that he had forty five (45) days within which to
consider this Separation Agreement; and 
 D. He was informed that he had seven (7) days following the date of execution of this
Separation Agreement in which to revoke this Separation Agreement. 
  

 4 

 VII. No Transferred Claims. Executive warrants and represents that he has
not heretofore assigned or transferred to any person not a party to this Separation Agreement any released matter or any part or portion thereof and he shall defend, indemnify and hold the Company and each of its affiliates harmless from and against
any claim (including the payment of attorneys’ fees and costs actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such assignment or transfer made, purported or claimed. 
 VIII. Confidential Information. 
 A. Executive, in the performance of Executive’s services on behalf of the Company and its affiliates, has had access to, received and been entrusted with confidential information, including but in no way
limited to development, marketing, organizational, financial, management, administrative, production, distribution and sales information, data, specifications and processes presently owned or at any time in the future developed, by the Company, its
affiliates, or its or their agents or consultants, or used presently or at any time in the future in the course of its or their business that is not otherwise part of the public domain (collectively, the “Confidential Material”).
All such Confidential Material is considered secret and was made available to Executive in confidence. Executive represents that he has held all such information confidential and will continue to do so. 
 B. Except in the performance of services on behalf of the Company and its affiliates, Executive shall not, directly or indirectly for any reason
whatsoever, disclose or use any such Confidential Material, unless 1) such Confidential Material ceases (through no fault of Executive’s) to be confidential because it has become part of the public domain or 2) he is otherwise obligated to
disclose such information by the lawful order of any competent jurisdiction. All records, files, drawings, documents, equipment and other tangible items, wherever located, relating in any way to the Confidential Material or otherwise to the business
of the Company or any of its affiliates, which Executive prepares, uses or encounters, shall be and remain the sole and exclusive property of the appropriate entity or entities and shall be included in the Confidential Material. Whenever requested
by the Company, Executive shall promptly deliver to the Company any and all of the Confidential Material, not previously delivered to the Company, that may be or at any previous time has been in Executive’s possession or under Executive’s
control. 
 IX. Non-Compete. Executive hereby acknowledges and agrees in consideration for the payments and
other benefits set forth in this Separation Agreement, for the period commencing on the Separation Date and ending on the first anniversary of the Separation Date, without the prior written consent of the Company, the Executive shall not, directly
or indirectly, either as principal, manager, agent, consultant, officer, director, stockholder, partner, member, investor, lender or employee or in any other capacity, carry on, be engaged in or have any financial interest in any business within the
chemicals industry, including, without limitation, any business that is in material competition with the business of the Company and/or its affiliates. For purposes hereof, a business shall be deemed to be in competition with the Company if it is
significantly involved in the rendering of any service significantly purchased, sold, dealt in or rendered by the Company and/or its affiliates. As used in the preceding sentence, the 

  

 5 

 
term “significantly” shall be deemed to refer to activities generating gross annual sales of at least $25 million. Nothing in this shall be
construed so as to preclude Executive from investing in any publicly held company provided Executive’s beneficial ownership of any class of such company’s securities does not exceed 5% of the outstanding securities of such class. Executive
understands that the foregoing restrictions may limit his ability to earn a livelihood in a business that competes with the business of the Company and/or its affiliates, but he nevertheless believes that he has received and will receive sufficient
consideration and other benefits as an employee of the Company and/or its affiliates and as otherwise provided hereunder to clearly justify such restrictions which, in any event (given his education, skills and ability), Executive does not believe
would prevent him from otherwise earning a living. Executive has carefully considered the nature and extent of the restrictions placed upon him by this Separation Agreement, and hereby acknowledges and agrees that the same are reasonable in time and
territory and do not confer a benefit upon the Company or any of its affiliates disproportionate to the detriment which the same may cause Executive. 
 X. Soliciting Customers. Executive promises and agrees that he will not, for the period commencing on the Separation Date and ending on the first anniversary of the Separation Date, influence or attempt
to influence any customers of the Company or any of its affiliates, either directly or indirectly, to divert their business in any product line sold, dealt in or rendered by the Company and/or its affiliates (or any product line similar to any such
product line) to any individual, partnership, firm, corporation or other entity which is currently or at that particular point in time in competition with (or has plans to engage in business which would be in competition with) the business of the
Company or any of its affiliates. Executive acknowledges that during his employment with the Company, he was given access to Confidential Material of the Company and its affiliates, and that such Confidential Material constitutes the Company’s
trade secrets. Executive acknowledges and agrees that this restriction is necessary in order for the Company to preserve and protect its legitimate proprietary interest in its Confidential Material and trade secrets. 
 XI. Soliciting Employees. Executive promises and agrees that he will not, for the period commencing on the Separation Date
and ending on the first anniversary of the Separation Date, directly or indirectly solicit any employee of the Company or any of its affiliates who earned annually $25,000 or more as an employee of such entity during the last six months of his or
her own employment to work for any business, individual, partnership, firm, or corporation. 
  

 6 

 XII. Cooperation. Executive agrees to cooperate with the Company in any
actual or threatened litigation that arises against or is brought by the Company or any of its affiliates at any time after the Separation Date, including but not limited to participating in interviews with the Company’s counsel to assist the
Company in any such litigation. To the extent such services are requested by the Company, the Company shall reimburse Executive for his reasonable out-of-pocket expenses incurred in providing such services. 
 XIII. Miscellaneous. 
 A. Successors. 
 1. This Separation Agreement is personal to Executive and shall not, without
the prior written consent of the Company, be assignable by Executive. 
 2. This Separation Agreement shall inure to the benefit of and be
binding upon the Company and its respective successors and assigns and any such successor or assignee shall be deemed substituted for the Company under the terms of this Separation Agreement for all purposes. As used herein, “successor”
and “assignee” shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires the ownership of the Company or to which the Company assigns
this Separation Agreement by operation of law or otherwise. 
 B. Waiver. No waiver of any breach of any term or provision of
this Separation Agreement shall be construed to be, nor shall be, a waiver of any other breach of this Separation Agreement. No waiver shall be binding unless in writing and signed by the party waiving the breach. 
 C. Modification. This Separation Agreement may not be amended or modified other than by a written agreement executed by Executive and the
Chief Executive Officer of the Company or his designee. 
 D. Complete Agreement. This Separation Agreement constitutes and
contains the entire agreement and final understanding concerning Executive’s relationship with the Company and its affiliates and the other subject matters addressed herein between the parties, and supersedes and replaces all prior negotiations
and all agreements proposed or otherwise, whether written or oral, concerning the subject matters hereof. Any representation, promise or agreement not specifically included in this Separation Agreement shall not be binding upon or enforceable
against either party. This Separation Agreement constitutes an integrated agreement. Notwithstanding the preceding provisions of this Section XIII.D: (1) the rights of the Company or any of its affiliates pursuant to any confidentiality,
non-compete, trade secret, inventions, securities transfer, investor rights, or similar agreement shall continue in effect and are not integrated into this Agreement; (2) the provisions of any applicable benefit plan and/or award agreement
shall continue in effect and are not integrated into this Agreement to the extent necessary to effect the payments and benefits specifically provided for in Section II.D; and (3) the Investor Rights Agreement to which Executive is a party as
well as the Operating Agreement of Hexion LLC shall continue in effect and are not integrated into this Agreement. 
  

 7 

 E. Severability. If any provision of this Separation Agreement or the application thereof
is held invalid, the invalidity shall not affect other provisions or applications of the Separation Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Separation Agreement are
declared to be severable. 
 F. Choice of Law. This Separation Agreement shall be deemed to have been executed and delivered
within the State of Texas, and the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of Texas without regard to principles of conflict of laws. 
 G. Cooperation in Drafting. Each party has cooperated in the drafting and preparation of this Separation Agreement. Hence, in any
construction to be made of this Separation Agreement, the same shall not be construed against any party on the basis that the party was the drafter. 
 H. Notices. Any notice provided for in this Separation Agreement must be in writing and must be either personally delivered, transmitted via telecopier, mailed by first class mail (postage prepaid and
return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or at such other address or to the attention of such other person as the recipient party has specified by
prior written notice to the sending party. Notices will be deemed to have been given hereunder and received when delivered personally, when received if transmitted via telecopier, five days after deposit in the U.S. mail and one day after deposit
with a reputable overnight courier service. 
 If to the Company, to: 
 Hexion Specialty Chemicals, Inc. 
 180 East Broad Street 
 Columbus, OH 43215 
 Facsimile: (614) 225-2108 
 Attention: Craig Morrison 
       President and CEO 

with a copy (which shall not constitute notice) to: 
 Hexion LLC 
 c/o Apollo Management V, L.P. 
 9 West 57th Street 
 New York, New York 10019

 Facsimile: (212) 515-3288 
 Attention: Josh Harris 
 and 
  

 8 

 O’Melveny & Myers LLP 
 Times Square Tower 
 7 Times Square 
 New York, New York 10036 
 Facsimile: (212) 326-2061 
 Attention: John Scott, Esq. 
 If to Executive, to Executive’s address set forth on the signature page
hereto. 
 I. Counterparts. This Separation Agreement may be executed in counterparts, and each counterpart, when executed,
shall have the efficacy of a signed original. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose. 
 J. Arbitration. Any dispute, claim or controversy arising out of or relating to this Separation Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with
any of its provisions, including the determination of the scope or applicability of this agreement to arbitrate, shall be submitted to final and binding arbitration in the State of Texas in accordance with Texas law and the procedures of the
American Arbitration Association. The determination of the arbitrators shall be conclusive and binding on the Company and Executive, and judgment may be entered on the arbitrators’ award in any court having jurisdiction. 
 K. Advice of Counsel. In entering this Separation Agreement, the parties represent that they have relied upon the advice of their
attorneys, who are attorneys of their own choice, and that the terms of this Separation Agreement have been completely read and explained to them by their attorneys, and that those terms are fully understood and voluntarily accepted by them.

 L. Supplementary Documents. All parties agree to cooperate fully and to execute any and all supplementary documents and to
take all additional actions that may be necessary or appropriate to give full force to the basic terms and intent of this Separation Agreement and which are not inconsistent with its terms. 
 M. Headings. The section headings contained in this Separation Agreement are inserted for convenience only and shall not affect in
any way the meaning or interpretation of this Separation Agreement. 
 N. Taxes. The Company has the right to withhold
from any payment hereunder or under any other agreement between the Company and Executive the amount required by law to be withheld with respect to such payment or other benefits provided to Executive. Other than as to such withholding right,
Executive shall be solely responsible for any taxes due as a result of the payments and benefits received by Executive contemplated by this Separation Agreement. 
 O. Indemnification. The Company agrees that (1) if Executive is made a party, or is threatened to be made a party, to any threatened or actual action, suit or proceeding whether civil,
criminal, administrative, investigative, appellate or other (a “Proceeding”) by reason of the fact that he is or was a director, officer or employee of the Company or is or was serving at the request of the Company as a director,
officer, member, employee, agent, manager, consultant or 

  

 9 

 
representative of another person or (2) if any claim, demand, request, investigation, controversy, threat, discovery request or request for testimony or
information (a “Claim”) is made, or threatened to be made, that arises out of or relates to Executive’s service in any of the foregoing capacities, whether arising before or after the Separation Date, then Executive shall be
indemnified and held harmless by the Company to the fullest extent legally permitted or authorized by the Company’s articles of incorporation or bylaws or, if greater, by the laws of the State of New Jersey, against any and all costs, expenses,
liabilities and losses (including, without limitation, attorney’s fees, judgments, interest, expenses of investigating, defending or obtaining indemnity with respect to any Proceeding or Claim, penalties, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) incurred or suffered by Executive in connection therewith. Neither the failure of the Company to have made a determination in connection with any request for indemnification that Executive has satisfied
any applicable standard of conduct, nor a determination by the Company that Executive has not met any applicable standard of conduct, shall create a presumption that Executive has not met an applicable standard of conduct. 
 [Remainder of page intentionally left blank.] 
  

 10 

 I have read the foregoing Separation Agreement and I accept and agree to the provisions it contains and
hereby execute it voluntarily with full understanding of its consequences. 
 EXECUTED
this 21st day of June, 2006, at
                     County,
                    . 
  

			
	“Executive”
	
	  

	Jeffrey M. Nodland

 EXECUTED this 21st day of June, 2006, at
                     County,
                    . 
  

			
	“Company”
	
	 Hexion Specialty Chemicals, Inc.,
 a New
Jersey corporation

	
	  

	By:	 	  

	Its:	 	  

  

 11 

 EXHIBIT A 
 RESIGNATION LETTER 
  

			
	Date:	 	May 13, 2006
		
	To:	 	The Board of Directors of Hexion LLC. and Hexion Specialty Chemicals, Inc.
		
	From:	 	Jeffrey M. Nodland

 I hereby resign as an employee, officer, director, member, manager and in any other capacity with
Hexion Specialty Chemicals, Inc., and with each of its respective affiliates, effective May 13, 2006. 
  

	
	   
	Jeffrey M. Nodland

  

 A-1 

 EXHIBIT B 
 ENDORSEMENT 
 I, Jeffrey, M. Nodland, hereby acknowledge that I was given 45 days to consider the
foregoing Employment, Employment Separation and General Release Agreement and voluntarily chose to sign the Employment, Employment Separation and General Release Agreement prior to the expiration of the 45-day period. 
 I declare under penalty of perjury under the laws of the state of Texas, that the foregoing is true and correct. 
 EXECUTED this 21st day of June 2006, at                      County,
                    . 
  

	
	   
	Jeffrey M. Nodland

  

 B-1Securities Purchase Agreement between Hexion LLC and Layle K. Smith

 Exhibit 10.35 
 SECURITIES PURCHASE AGREEMENT dated as of July 14, 2006 (the “Agreement”), between HEXION LLC, a Delaware limited liability company (the “Buyer”), and LAYLE K.
SMITH, an individual with his principal place of residence at 7171 Buffalo Speedway, Apt. 1125, Houston, TX 77025 (the “Seller”). 
 WHEREAS, the Seller currently holds vested options (the “Options”) to acquire 109,434 equity units of the Buyer, and the Seller and the Buyer desire that such Options shall be repurchased and
terminated upon the terms and conditions specified herein. 
 WHEREAS, the Seller currently holds 79,300 equity units of the Buyer
(“Units”), and the Seller desires to sell, transfer, convey and assign to the Buyer, and the Buyer desires to purchase, upon the terms and conditions specified herein, 67,417 of the Seller’s Units (the “Sale
Units”, and together with the Options, the “Sale Securities”). 
 NOW, THEREFORE, in consideration of the
mutual representations, warranties, covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 Section 1. Repurchase and Termination of Options; Sale and Purchase of Sale Units. 
 1.1 The Seller currently holds the Options. All of the Options are hereby terminated. Except as provided in the next sentence, the Seller shall
have no further right with respect to the Options (including any right under or pursuant to any written agreement evidencing one or more of such Options or with respect to the termination of such Options). In consideration of such termination, the
Buyer shall, on the terms and subject to the conditions of this Agreement, at the Closing pay to the Seller $1,092,106.56 (the “Option Consideration”), subject to required tax withholding (such tax withholding amount estimated to be
approximately $374,301.94). 
 1.2 At the Closing, on the terms and subject to the conditions of this Agreement, the Seller shall
sell, transfer, convey, assign and deliver to the Buyer the Sale Units free and clear of all liens (statutory or otherwise), pledges, mortgages, deeds of trust, security interests, charges, options, rights of first refusal, transfer restrictions or
encumbrances (collectively, “Liens”), and the Buyer shall purchase and acquire such Sale Units from the Seller. As consideration for such Sale Units, the Buyer shall pay at the Closing to the Seller $1,181,148.51 (the
“Purchase Price”, and together with the Option Consideration, the “Consideration”). The Seller shall ensure that the Sale Units are comprised of those of his Units that have the highest tax basis. 
 Section 2. Manner of Payment; Conditions to Closing; Closing. 
 2.1 At the Closing, the Buyer shall pay or cause to be paid to the Seller the Consideration (in the case of the Option Consideration, subject to
required tax withholding), by bank check or in immediately available United States funds to an account designated by the Seller at, or prior to, the Closing, against delivery of certificates representing the Sale Units, endorsed in blank or
accompanied by duly executed unit power(s) in favor of the Buyer with appropriate transfer tax stamps, if any, affixed. Payment set forth in this section is against delivery of certificates representing the Sale Units, which delivery shall be
completed no later than July 21, 2006. In the event that such delivery does not occur, the Seller shall promptly reimburse the full amount to the Buyer, and the transaction shall be rescinded. 

 2.2 The obligations of the Seller to consummate the transactions contemplated by this Agreement
are subject to the prior satisfaction or waiver of the following conditions: 
 a. All of the representations and warranties
of the Buyer set forth in this Agreement shall be true and correct in all respects. 
 b. The Buyer shall have performed all
of its obligations required to be performed at or prior to the Closing pursuant to this Agreement. 
 2.3 The obligations of the Buyer
to consummate the transactions contemplated by this Agreement are subject to the prior satisfaction or waiver of the following conditions: 
 a. All of the representations and warranties of the Seller set forth in this Agreement shall be true and correct in all respects. 
 b. The Seller shall have performed all of his obligations required to be performed at or prior to the Closing pursuant to this Agreement.

 c. The Seller shall have entered into a definitive separation agreement with Hexion Specialty Chemicals, Inc, a New Jersey
corporation (“INC”), on terms acceptable to the Buyer, and shall be in compliance with all terms of the separation agreement. 
 d. The transactions contemplated by this Agreement (including the repurchase and termination of the Options, the purchase of the Sale Units and the payment of the Consideration) shall be permitted under the financing
documents to which the Buyer and/or INC is a party. 
 2.4 The closing (“Closing”) of the transactions contemplated
by this Agreement shall take place at the offices of O’Melveny & Myers LLP, Times Square Tower, 7 Times Square, New York, New York 10036 on July 14, 2006 (or at such other place and date as the parties may agree). The date on
which the Closing occurs shall be referred to as the “Closing Date.” 
 Section 3. Representations and
Warranties. 
 3.1 As a material inducement to the Buyer to enter into and perform its obligations under this Agreement, the Seller
represents and warrants to the Buyer, as of the date hereof and as of the Closing, as follows: 
 a. The Seller has the power
and authority to enter into this Agreement, to transfer the Sale Securities and to consummate the transactions contemplated hereby. 
  

 2 

 b. The Seller is the true and lawful owner of the Sale Securities and has lawful
authority to sell and transfer the same, and the Sale Securities are free and clear of all Liens whatsoever. 
 c. This
Agreement constitutes the valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms. 
 d. The Seller is a sophisticated investor and has appropriate knowledge and experience to evaluate and negotiate the transactions contemplated hereby. 
 e. The Seller has had the opportunity to consult with such advisors as he deems adequate and appropriate to evaluate and negotiate the
transactions contemplated hereby. 
 f. The Seller has independently and without reliance upon the Buyer or its affiliates and
based on such information as the Seller and his advisors have deemed adequate and appropriate made its own analysis and decision to enter into this Agreement. The Seller has had the opportunity to review such information with his advisors.

 g. The Seller acknowledges and agrees that (i) the Buyer and its affiliates, and other related parties, may now
possess and may hereafter possess certain non-public information (“Non-Public Information”) concerning the Buyer and INC and their respective affiliates and/or the Sale Securities that may or may not be independently known to the
Seller; and (ii) the Seller has entered into this Agreement and agrees to consummate the transactions contemplated hereby notwithstanding that he is aware that Non-Public Information may exist and that it may not have been disclosed by the
Buyer to him, and confirms and acknowledges that neither the existence of any Non-Public Information, nor the substance of it, is material to him or to his determination to enter into this Agreement and to consummate the transactions contemplated
hereby. 
 h. The Seller acknowledges and agrees that the Buyer has not made and does not make any representation or warranty,
whether express or implied, of any kind or character except as expressly set forth in this Agreement and the Buyer has no obligations to the Seller, whether express or implied, including fiduciary obligations, except as expressly set forth in this
Agreement. 
 3.2 As a material inducement to the Seller to enter into and perform its obligations under this Agreement, the Buyer
represents and warrants to the Seller, as of the date hereof and as of the Closing, as follows: 
 a. The Buyer has the
limited liability company power and authority to enter into this Agreement, to purchase and to terminate or to cause the termination of (as the case may be) the Sale Securities and to consummate the transactions contemplated hereby. 
 b. The execution, delivery and performance of this Agreement, the purchase and termination (as the case may be) of the Sale Securities and
the consummation of the 

  

 3 

 
transactions contemplated hereby (except with respect to the Options that are obligations of INC) have been approved by all necessary limited liability
company action on the part of the Buyer and, with respect to the Options that are obligations of INC, all necessary corporate action on the part of INC, the Buyer’s wholly-owned subsidiary. 
 c. This Agreement constitutes the valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms.

 Section 4. Taxes. 
 Except for the Buyer’s right to withhold taxes with respect to the consideration paid for the termination of the Options, the Seller solely shall be responsible for any taxes due as a result of the transactions contemplated by this
Agreement. The Seller will defend and indemnify INC and the Buyer and each of their respective affiliates from and against (i) any tax liability that any of them may have as a result of the transactions contemplated by this Agreement arising out of
the Seller’s failure to pay any taxes due with respect to any such transactions and (ii) any and all losses or liabilities, including defense costs, arising out of the Seller’s failure to pay any taxes due with respect to any such
transactions. 
 Section 5. Remaining Units. 
 The Seller acknowledges and agrees that the Units that he owns following the Closing will remain, in all respects, subject to the terms of all agreements he has with INC and/or the Buyer or any of their respective
affiliates, including that certain amended and restated investor rights agreement dated as of May 31, 2005 by and among INC, the Buyer, the Seller and the other parties thereto. 
 Section 6. Release. 
 The
Seller does from and after the Closing release forever and discharge each of the Buyer and INC and each of their respective affiliates, directors, officers, employees, agents, and advisors (“Buyer Affiliated Releasees”), of and from
any and all claims, demands, causes of action, damages and liabilities of any kind or nature whatsoever that related to or arise out of any dealings, relationships or transactions by and between the Seller, on one hand, and any Buyer Affiliated
Releasee, on the other hand, insofar as such relates to the Buyer, INC and/or the Sale Securities or any of the transactions contemplated by this Agreement, in law or in equity, which against any Buyer Affiliated Releasee Seller has ever had, now
has or which it hereafter can, shall or may have, whether or not known, from the beginning of the world to the Closing Date. 
 Section 7.
Advice of Counsel. 
 In entering this Agreement, the parties represent that they have relied upon the advice of their attorneys,
who are attorneys of their own choice, and that the terms of this Agreement have been completely read and explained to them by their attorneys, and that those terms are fully understood and voluntarily accepted by them. 
  

 4 

 Section 8. Governing Law. 
 THE DOMESTIC LAW, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, OF THE STATE OF NEW YORK WILL GOVERN ALL QUESTIONS CONCERNING THE CONSTRUCTION,
VALIDITY AND INTERPRETATION OF THIS AGREEMENT AND THE PERFORMANCE OF THE OBLIGATIONS IMPOSED BY THIS AGREEMENT. 
 Section 9.
Mutual Waiver of Jury Trial. 
 THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENTS RELATED HERETO. 
 Section 10.
Miscellaneous. 
 10.1 All notices, requests, demands and other communications hereunder must be in writing and shall be
deemed to have been duly given if delivered by hand or mailed within the continental United States by first class, certified mail, return receipt requested, postage and registry fees prepaid, or by comparable overnight delivery service to the
applicable party and addressed as follows: 
 To the Buyer: 
 Hexion LLC 
 c/o Apollo Management V, L.P. 
 9 West 57th Street, 43rd Floor 
 New York, NY 10019 
 Fax: (212) 515-3263 
 Attention: Jordan Zaken 
 With a copy (which shall not constitute notice) to: 
 William B. Kuesel, Esq. and Taurie M. Zeitzer, Esq. 
 O’Melveny & Myers LLP 
 Times Square Tower 
 7 Times Square 
 New York, NY 10036 
 Fax: (212) 326-2061 
 To the Seller: 
 Layle K. (Kip) Smith 
 1894 Seacrest Drive 
 Lummi Island, WA 98262-8624 
 Fax:                     

  

 5 

 With a copy (which shall not constitute notice) to: 
 Chester T. Lackey 
 Belcher Swanson Law Firm, P.L.L.C. 
 900 DuPont Street 
 Bellingham, WA 98225 
 Fax: (360) 671-0753 
 Notice of any change of address shall be given as set forth above. 
 10.2 This Agreement (i) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the
parties with respect to the subject matter hereof, and (ii) except as set forth in Section 4 and Section 6 is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder, provided, however,
that, as to the repurchase and termination of Options that are obligations of INC, INC is a third party beneficiary of Seller’s representations, covenants and agreements set forth in this Agreement. This Agreement may be amended only by an
instrument in writing signed by the Seller and the Buyer. 
 10.3 It is the desire and intent of the parties that the provisions of
this Agreement be enforced to the fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, in the event that any provision of this Agreement would be held in any
jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of
such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly
drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 
 10.4 This Agreement may not be assigned by the Seller without the prior written consent of the Buyer. Any attempted assignment without such consent shall be void. The Buyer may, without the prior written
consent of the Seller, assign any or all of its rights and interests hereunder. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted
assigns, as applicable. 
 10.5 The headings of the sections of this Agreement are inserted as a matter of convenience and for
reference only and in no way define, limit or describe the scope of this Agreement or the meaning of any provision of this Agreement. 
 10.6 All parties agree to cooperate fully and to execute any and all supplementary documents and to take all additional actions that may be necessary or appropriate to give full force to the basic terms and intent of this Agreement
and which are not inconsistent with its terms. 
  

 6 

 10.7 Each party has cooperated in the drafting and preparation of this Agreement. Hence, in any
construction to be made of this Agreement, the same shall not be construed against any party on the basis that the party was the drafter. 
 10.8 If, and as often as, there are any changes in any Units or Options by way of stock split, stock dividend, combination or reclassification, or through merger, consolidation, reorganization or recapitalization, or by any other
means, appropriate adjustment shall be made in the provisions of this Agreement (including appropriate adjustments to all per-Unit and per-Option amounts), as may be determined by the Buyer in good faith, so that the rights, privileges, duties and
obligations hereunder shall continue with respect to the Options and Sale Units as so changed. 
 10.9 This Agreement may be executed
in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile counterpart signatures to this Agreement shall be acceptable and binding. 
 10.10 The words “hereof,” “herein,” and “hereunder” and words of similar import, when used in this Agreement, shall
refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 10.11 Whenever the words
“included,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 
 10.12 Terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa. 
 10.13 Whenever the context may require, any pronouns used herein shall indicate the corresponding masculine, feminine or neuter forms, and the
singular form of nouns and pronouns shall include the plural and vice-versa. 
 * * * * * 
  

 7 

 IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be executed on its behalf
as of the date first above written. 
  

			
	 HEXION LLC

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 LAYLE K. SMITH

		
	By:	 	  

		 	Layle K. Smith

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]