Document:

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                                                                   Exhibit 10.22

                       SHELL EPOXY RESINS NEDERLAND B.V.

                                      and

                          SHELL NEDERLAND CHEMIE B.V.

                      -----------------------------------

                          FIRST AMENDED AND RESTATED

                                    PERNIS

                           SITE SERVICES, UTILITIES,

                           MATERIALS AND FACILITIES

                                   AGREEMENT
                      -----------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                         <C>
ARTICLE 1:   DEFINITIONS..................................................................................   1
ARTICLE 2:   INTERPRETATIONS..............................................................................   8
ARTICLE 3:   OBJECT AND SCOPE.............................................................................  10
ARTICLE 4:   CATEGORIES OF SUMF...........................................................................  11
ARTICLE 5:   SUMF CHARGES.................................................................................  11
ARTICLE 6:   SUMF CHARGES WITH REFERENCE TO COST..........................................................  11
ARTICLE 7:   PAYMENT TERMS................................................................................  14
ARTICLE 8:   ANNUAL FORECAST; ANNUAL PLAN AND BUDGET; AND CURTAILMENT.....................................  16
ARTICLE 9:   LIABILITY AND INDEMNITY......................................................................  17
ARTICLE 10:  TERM AND TERMINATION; REDUCTION OF CAPACITY RESERVATION......................................  21
ARTICLE 11:  INTELLECTUAL PROPERTY RIGHTS.................................................................  28
ARTICLE 12:  CONFIDENTIALITY..............................................................................  28
ARTICLE 13:  ADDITIONAL SUMF AND CAPITAL IMPROVEMENTS TO SUMF ASSETS......................................  30
ARTICLE 14:  DAMAGE TO SUMF ASSETS........................................................................  31
ARTICLE 15:  METERING OF SUPPLY, CONSUMPTION AND DELIVERY.................................................  31
ARTICLE 16:  JOINT OPERATING COMMITTEE....................................................................  32
ARTICLE 17:  MISCELLANEOUS................................................................................  32
ARTICLE 18:  FORCE MAJEURE................................................................................  33
ARTICLE 19:  DISPUTE RESOLUTION...........................................................................  34
ARTICLE 20:  FURTHER ASSURANCE............................................................................  35
ARTICLE 21:  COSTS AND EXPENSES...........................................................................  35
ARTICLE 22:  ASSIGNMENT AND DELEGATION....................................................................  35
ARTICLE 23:  SEVERABILITY.................................................................................  36
ARTICLE 24:  NO AGENCY OR PARTNERSHIP.....................................................................  36
ARTICLE 25:  REMEDIES AND WAIVER..........................................................................  37
ARTICLE 26:  ENTIRE AGREEMENT AND VARIATION...............................................................  37
ARTICLE 27:  NOTICES......................................................................................  37
ARTICLE 28:  GOVERNING LAW................................................................................  38
ARTICLE 29:  LANGUAGE.....................................................................................  39
ARTICLE 30:  COUNTERPARTS.................................................................................  39

SCHEDULE 1:  INFORMATION..................................................................................
SCHEDULE 2:  ITEMS OF SUMF................................................................................
SCHEDULE 3:  SUMMARY OF SUPPLIER'S ACCOUNTING PRACTICES...................................................
SCHEDULE 4:  CURTAILMENT PROCEDURES.......................................................................
SCHEDULE 5:  JOINT OPERATING COMMITTEE AND STEERING COMMITTEE.............................................
SCHEDULE 6:  ALLOCATION KEYS..............................................................................
SCHEDULE 7:  BUDGET.......................................................................................
</TABLE>
<PAGE>

          FIRST AMENDED AND RESTATED PERNIS SITE SERVICES, UTILITIES,

                      MATERIALS AND FACILITIES AGREEMENT

THIS FIRST AMENDED AND RESTATED AGREEMENT made the 1st day of November, 2000
BETWEEN:

1.   SHELL EPOXY RESINS NEDERLAND B.V., a company incorporated under the laws of
     The Netherlands with its registered office at Vondelingenweg 601, 3196 KK
     Vondelingenplaat, Rotterdam, The Netherlands (the "Purchaser"); and

2.   SHELL NEDERLAND CHEMIE B.V., a company incorporated under the laws of The
     Netherlands with its registered office at Vondelingenweg 601, 3196 KK
     Vondelingenplaat, Rotterdam, The Netherlands (the "Supplier").

WHEREAS

(A)  The Supplier or Affiliates of the Supplier operate the Site;

(B)  The Purchaser owns the Plant;

(C)  The Parties have entered into a Site Services, Utilities, Materials and
     Facilities Agreement (the "SUMF Agreement") dated 29th October, 1999 for
     the supply and purchase of certain SUMF Items in connection with such
     operations and assets;

(D)  Shell Petroleum N.V., an Affiliate of the Supplier, has on September 11,
     2000 entered into a Sale Agreement with Shell Epoxy Resins, Inc. ("SER"),
     pursuant to which it is selling to SER its interest in the shares of Shell
     Epoxy Resins Holdings B.V., the parent company of the Purchaser; and

(E)  In connection with the closing of such sale transaction, the Parties want
     to amend and restate the SUMF Agreement as set forth below:

NOW, THEREFORE, the Parties agree as follows:

ARTICLE 1: DEFINITIONS

In this Agreement and the Schedules hereto:

     "AFFILIATE" means in relation to the Supplier, N.V. Koninklijke
     Nederlandsche Petroleum Maatschappij, The "Shell" Transport and Trading
     Company, p.l.c. (together the "Parent Companies") or any entity other than
     the Parties which is directly or indirectly affiliated with either or both
     of the Parent Companies.
<PAGE>

     In relation to the Purchaser, "Affiliate" means Shell Epoxy Resins Holdings
     B.V. and any entity other than the Parties which is directly or indirectly
     affiliated with that company.

     In relation to any Third Party successors of the Parties, "Affiliate" means
     any entity which is directly or indirectly affiliated with that Third Party
     successor.

     For the purposes of this definition, a particular entity is:

     (i)  directly affiliated with another entity or entities if the latter
          hold(s) or otherwise control(s) by proxy or agreement shares or other
          ownership interests carrying more than fifty percent (50%) of the
          votes exercisable at a general shareholders meeting (or its
          equivalent) of the entity in question; and

    (ii)  indirectly affiliated with an entity or entities (the "parent or
          parents") if a series of entities can be specified, beginning with
          their parent or parents and ending with the particular entity, so
          related that each entity or entities in the series, except the parent
          or parents, is directly affiliated with one or more of the entities
          earlier in the series;

     Notwithstanding the foregoing, none of the portfolio companies of Apollo
     Management IV, L.P. or its affiliates other than Shell Epoxy Resins, Inc.
     and its subsidiaries shall be deemed to be an Affiliate of Shell Epoxy
     Resins, Inc. or any of its subsidiaries.

     "AGREEMENT" means this First Amended and Restated Pernis Site Services,
     Utilities, Materials and Facilities Agreement, including its Schedules and
     attachments, and any amendments hereto to which the Parties may consent
     from time to time;

     "ANNUAL PLAN AND BUDGET" means the annual plan and budget approved under
     ARTICLE 8. The Annual Plan and Budget for the First Operating Year is the
     relevant part of the Annual Plan and Budget set out in SCHEDULE 2.

     "BANKRUPTCY EVENT" means, in relation to any Party, (i) the making of a
     general assignment for the benefit of creditors by such Party; or (ii) the
     entering into of any arrangement or composition with creditors (other than
     for the purposes of a solvent reconstruction or amalgamation); or (iii) the
     institution by such Party of proceedings (a) seeking to adjudicate such
     Party as bankrupt or insolvent or seeking protection or relief from
     creditors, or (b) seeking liquidation, winding up, or rearrangement,
     reorganisation or adjustment of such Party or its debts (other than for
     purposes of a solvent reconstruction or amalgamation), or (c) seeking the
     entry of an order for the appointment of a receiver, trustee or other
     similar official for such Party or for all or a substantial part of such
     Party's assets; or (iv) the institution of any proceeding of the type
     described in (iii) above against such Party;

     "BUSINESS DAY" means any day of the week other than Saturday, Sunday or a
     public holiday at the location of the Plant;

                                       2
<PAGE>

     "COMMERCIALLY REASONABLE" when used in the context of efforts to be taken
     means efforts which would ordinarily be taken by a business person in the
     applicable industry were he in the position under this Agreement of being
     the supplier of SUMF Items or the owner of the Plant, whichever shall be
     the relevant case. Such efforts shall only be taken at the sole cost and
     request of the Party entitled to request or require "commercially
     reasonable" efforts ("the Requiring Party") provided however, that the
     Party who undertakes such efforts shall not be (i) obligated to interfere
     with its own business activities or plans, nor (ii) required to employ
     additional employees in order to accomplish such matters, nor (iii)
     required to expend any of its own funds to accomplish such request without
     the right to reimbursement from the Requiring Party;

     "CONFIDENTIAL RECORD" means, without limitation, any publications, printed
     matter, manuals, reports, letters, telexes, drawings, computer programs,
     photographs, films, video, tape, diskette, CD-ROM and other information
     carriers or media conveying information and any other material containing
     confidential information;

     "DEFAULT RATE" means a percentage equal to the base lending rate of the
     bank specified in Schedule 1 plus three percent (3%) p.a.;

     "DELIVERY POINT(S)" means the location(s) specified in the SCHEDULES to
     which each SUMF Item will be delivered and at which title and risk passes
     from the Supplier to the Purchaser for each SUMF Item;

     "DIRECT SITE COSTS" means the direct fixed costs (without mark-up or profit
     factor, except in accordance with ARTICLE 6.1(F)) incurred at the Site by
     the Supplier in providing SUMF but which do not vary with consumption,
     usage or production. Fixed costs include personnel costs (which include,
     but are not limited to, wages, associated benefits, applicable taxes and
     allocated pension costs) for the personnel directly involved in the
     provision of SUMF Items and the costs of any SUMF Items procured by the
     Supplier for the Purchaser from a Third Party in accordance with this
     Agreement.

     If costs, including personnel costs, are incurred at the Site partly in
     connection with providing SUMF and partly in connection with other
     activities, an allocation of such costs shall be included in Direct Site
     Costs.

     For the avoidance of doubt, Direct Site Costs shall not include charges for
     the depreciation or amortisation of SUMF Assets or any other assets or any
     other costs that the Supplier or any of its Affiliates is required to bear
     under the Transaction Documents (other than the Pernis Agreements) or the
     IPTLA. Costs that the Supplier or any of its Affiliates is required to bear
     under this Agreement or any other Pernis Agreement shall be borne in
     accordance with the terms hereof and thereof. The terms of this definition
     shall not be deemed to modify any provision of any Transaction Document
     other than this Agreement, including any express payment or reimbursement
     obligation of the Purchaser to Supplier under any Transaction Document
     other than this Agreement;

                                       3
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         "DISPUTE" means any dispute or difference which arises between the
         Parties in connection with or arising out of this Agreement (including,
         without limitation, any dispute as to the existence, termination or
         validity of this Agreement or any provision of it);

         "EFFECTIVE DATE" means November 1, 2000;

         "ENVIRONMENTAL AGREEMENT" means the Non-US Environmental Agreement
         dated as of the Effective Date by and between Shell Petroleum N.V. and
         SER;

         "ENVIRONMENTAL LAW" means any applicable law relating to Environmental
         Matters;

         "ENVIRONMENTAL LOSS OR DAMAGE" means any Loss or Damage relating to the
         infringement on or after the Effective Date of an Environmental Law
         and/or any other Environmental Matter being the basis for any claim or
         possible claim; (i) by governmental authorities for enforcement, fines,
         cleanup, removal, response, remediation, or other actions or damages
         pursuant to any applicable Environmental Law; or (ii) by any third
         person, including the Parties, seeking damages, contribution,
         indemnification, cost recovery, compensation or injunctive relief or
         otherwise giving rise to Loss or Damage;

         "ENVIRONMENTAL MATTERS" means; (i) the protection of the environment,
         worker health and safety and/or the public welfare from actual or
         potential exposure (or the effects of exposure) to any actual or
         potential release, discharge, disposal or emission (whether past or
         present) of any hazardous substance or waste; (ii) the manufacture,
         processing, distribution, use, treatment, labelling, storage, disposal,
         transport or handling of any hazardous substance or waste, or (iii)
         soil or groundwater contamination, air pollution or surface water
         pollution or other actual or threatened impact on the environment,
         worker health and safety or public welfare;

         "ENVIRONMENTAL PROTECTION SYSTEM" means any environmental protection
         system used by Supplier in connection with the provision of the SUMF
         Items, including without limitation, biotreater, waste water treatment
         plant, and all pipes, drains, channels, conduits, sumps and other
         items, plant or machinery connected with or associated with such
         system;

         "FINANCIAL REPORTING ACCOUNTS" means those books and records maintained
         by the Supplier for financial reporting to the Supplier's parent
         company(ies) or corporate headquarters, which shall be maintained in
         accordance with generally accepted accounting principles and which
         shall be applied on a consistent basis;

         "FIRM CAPACITY RESERVATION" means the maximum aggregate volume of a
         SUMF Item to be supplied to the Resins and Versatics businesses, both
         owned by Purchaser as of the Effective Date, under this Agreement as
         specified in SCHEDULE 2;

         "FIRST OPERATING YEAR" means the period from the Effective Date until
         the following 31st December;

                                       4
<PAGE>

         "FORCE MAJEURE" has the meaning given to this term in ARTICLE 18.4;

         "GROSS NEGLIGENCE" means a failure to perform a duty of care in
         reckless disregard of the reasonably foreseeable consequences (as
         distinguished from a mere failure to exercise ordinary care) which
         affects the life or property of another;

         "HSE" means health, safety and/or environment;

         "IPTLA" or "INTELLECTUAL PROPERTY TRANSFER AND LICENCE AGREEMENT" means
         the Agreement dated as of the Effective Date between Shell
         International Research Maatschappij B.V. and Shell Epoxy Resins
         Research B.V. relating to intellectual property transfer and licensing;

         "INTEREST RATE" means a percentage equal to the base lending rate of
         the bank specified in SCHEDULE 1 plus one point five percent (1.5%)
         p.a.;

         "INVOICE DISPUTE" means a Dispute relating to an invoice for SUMF
         Charges;

         "JOINT OPERATING COMMITTEE" means the operating committee to be formed
         of the Purchaser's Representative and the Supplier's Representative
         which shall have the functions set out in SCHEDULE 5;

         "LEGAL REQUIREMENTS" means all applicable European Union laws and
         regulations and national and local laws and regulations;

         "LIABILITY" includes all and any claims, liabilities, costs, damages,
         expenses, fines and penalties;

         "LT SUMF" or "LONG TERM SUMF" has the meaning given to this term in
         ARTICLE 4.3;

         "LOSS OR DAMAGE" means any loss or damage or injury of whatever nature,
         including without limitation, personal injury, disease and death;

         "METER" means the meter or other appropriate measuring device located
         at or near the Delivery Point for the relevant SUMF Item;

         "OPERATING AGREEMENT" means the First Amended and Restated Pernis
         Operating and Maintenance Services Agreement, dated as of the Effective
         Date between the Purchaser, as owner, and the Supplier, as the
         operator.

         "OVERHEADS" means, without duplication of any Direct Site Cost, in
         relation to each SUMF Item, an equitable allocation of the fixed costs
         incurred at the Site related to management and operation of the Site
         that are not specifically attributable to a certain plant at the Site
         (without mark-up or profit factor, except in accordance with Article
         6.1(F)), including the following (where they are not provided as
         separate SUMF Items):

                                       5
<PAGE>

         Site management and general services; fire fighting, security and
         protection of HSE; use of the medical department; office services,
         accommodation and catering; and taxes;

         Overheads shall not include any allocated costs of corporate services,
         unless incurred for specific services in the same manner as Third Party
         services, such as tax, legal or other services and shall not include
         the fees paid to the Supplier's parent company(ies) or any other
         Affiliate, division, business unit or headquarters as a share of
         corporate overhead. For the avoidance of doubt, Overheads shall not
         include charges for the depreciation or amortization of SUMF Assets and
         any other costs that Supplier or any of its Affiliates is required to
         bear under the Transaction Documents (other than the Pernis Agreements)
         or the IPTLA. Costs that the Supplier or any of its Affiliates is
         required to bear under this Agreement or any other Pernis Agreement
         shall be borne in accordance with the terms hereof and thereof. The
         terms of this definition shall not be deemed to modify any provision of
         any Transaction Document other than this Agreement, including any
         express payment or reimbursement obligation of the Purchaser to
         Supplier under any Transaction Document other than this Agreement;

         "PARTY" or "PARTIES" means the Supplier and/or the Purchaser as the
         case requires, their successors and permitted assigns;

         "PERNIS AGREEMENTS" means this Agreement, the Pernis Lease, the First
         Amended and Restated Pernis Site Services, Utilities, Materials and
         Facilities Agreements between the Parties and between SNR and the
         Purchaser and the First Amended and Restated Pernis Operating and
         Maintenance Services Agreements between the Parties and between SNR and
         the Purchaser;

         "PERNIS LEASE" means the Agreement of Sub-Lease between Purchaser and
         SNR dated October 29, 1999, as amended;

         "PLANT" means either of the plants described in ATTACHMENT 1 to
         SCHEDULE 1 situated at the Site;

         "PRE-CONTRACTUAL STATEMENT" means any draft, agreement, undertaking,
         representation, warranty, promise, assurance or arrangement of any
         nature whatsoever, whether or not in writing, relating to the subject
         matter of this Agreement made or given by any person at any time prior
         to the date of this Agreement other than the Transaction Documents and
         the IPTLA;

         "PROPERTY" means, in relation to each Party, the plants, buildings and
         other improvements, land and/or other real property interests,
         fixtures, equipment, inventory, finished product, vehicles and other
         tangible personal property interests owned or leased by a Party that
         are now or in the future located within the Site or, in relation to the
         Supplier, elsewhere if used to provide SUMF;

         "PURCHASER'S REPRESENTATIVE" means the person named as being the
         Purchaser's representative in SCHEDULE 1 and any successor to that
         position;

                                       6
<PAGE>

         "REASONABLE ACTIONS" when used in the context of actions to be taken,
         means efforts that would ordinarily be taken by a business person in
         the applicable industry were he in the position under this Agreement of
         being the supplier of SUMF Items or the owner of the Plant, whichever
         shall be relevant;

         "RESINS" means the Purchaser's assets at the Site which at the
         Effective Date are, or at any time thereafter shall be, operated by the
         Purchaser. For the avoidance of doubt, this definition excludes assets
         for the production of demineralised water and assets for the production
         of certain solvents (COF-1), which are owned by the Supplier or an
         Affiliate of the Supplier;

         "SER" means Shell Epoxy Resins, Inc.

         "SHELL'S HSE AND TECHNICAL STANDARDS" means those standards as defined
         and applied by the Royal Dutch/Shell group of companies for services
         and operations hereunder at the location of the Site;

         "ST SUMF" or "SHORT TERM SUMF" has the meaning given to this term in
         Article 4.1;

         "SITE" means the site described in SCHEDULE 1;

         "SNR" means Shell Nederland Raffinaderij B.V.;

         "SOLE SUPPLIER SUMF" is referred to in ARTICLE 4.2;

         "STEERING COMMITTEE" means a steering committee consisting of senior
         representatives of the Purchaser and the Supplier which has
         responsibilities beyond the daily operation of the Plant. The Steering
         Committee shall discuss any matters of a general nature and any matters
         which are fundamental to the performance of this Agreement pursuant to
         its terms;

         "SUMF" means the site services, utilities, materials and facilities to
         be supplied under this Agreement;

         "SUMF ASSETS" means those assets of the Supplier directly used in the
         provision of SUMF;

         "SUMF CHARGE(S)" or "Charge(s)" means the charge(s) to be paid by the
         Purchaser to the Supplier for each SUMF Item in accordance with ARTICLE
         5 and ARTICLE 6;

         "SUMF ITEM" or "ITEM OF SUMF" means any part of SUMF;

         "SUPPLIER'S REPRESENTATIVE" means the person named as being the
         Supplier's Representative in SCHEDULE 1 and any successor to that
         position;

                                       7
<PAGE>

         "THIRD PARTY" means any person or company other than the Supplier, the
         Purchaser or their respective Affiliates;

         "TRANSACTION DOCUMENTS" means:

         (i)    that certain Sale Agreement dated September 11, 2000 by and
                between Shell Petroleum N.V. and SER and all documents executed
                in connection therewith, including the following:

         (ii)   the Pernis Lease;

         (iii)  this Agreement, the First Amended and Restated Pernis Site
                Services, Utilities, Materials and Facilities Agreements and the
                First Amended and Restated Pernis Operating and Maintenance
                Services Agreements each of which is between the Parties or
                between SNR and the Purchaser;

         (iv)   the Environmental Agreement; and

         (v)    other agreements between the Purchaser or any of its Affiliates
                and the Supplier or any of its Affiliates relating to the Plant
                or the Site, or any part thereof.

         "USER" means any company, entity, division, or business unit (including
         divisions and business units of the Supplier and its Affiliates) to
         which SUMF or its equivalent is furnished by the Supplier at the Site;

         "VARIABLE COSTS" means those operating costs incurred at the Site by
         the Supplier in providing SUMF which vary primarily based on
         consumption, usage or production and which are reconcilable with the
         cost accounting system of the Supplier existing as of the Effective
         Date and as from time to time modified by the Supplier (if applied to
         the entire Site), including the costs of air, cooling water,
         electricity, fuel, nitrogen, process materials, steam and applicable
         taxes, but not depreciation;

         "VERSATICS" means the Purchaser's assets at the Site which at the
         Effective Date are, or at any time thereafter shall be, operated by the
         Supplier pursuant to the Operating Agreement; and

         "WILFUL MISCONDUCT" means an intentional act or omission which is in
         disregard of (a) a known risk or a risk so obvious that it cannot be
         said one were truly unaware of it and (b) a risk so great that it is
         highly probable that harm will follow.

ARTICLE 2:  INTERPRETATIONS

2.1      In this Agreement, unless otherwise specified:

         (A)    references to Articles and Schedules are to Articles of, and
                Schedules to, this Agreement;

                                       8
<PAGE>

         (B)    use of any gender includes the other genders;

         (C)    references to a "company" shall be construed so as to include
                any company, corporation or other body corporate, wherever and
                however incorporated or established;

         (D)    references to a "person" shall be construed so as to include any
                individual, firm, company, government, state or agency of a
                state, local or municipal authority or government body or any
                joint venture, association or partnership (whether or not having
                separate legal personality);

         (E)    references to "USD", "NLG", and "EURO" are to United States
                Dollars, Dutch Guilders and the single currency of the European
                Union, respectively;

         (F)    any reference to a "day" (including within the phrase "Business
                Day") shall mean a period of 24 hours running from midnight to
                midnight;

         (G)    a reference to any other document referred to in this Agreement
                is a reference to that other document as amended, varied,
                novated or supplemented at any time;

         (H)    where a word or phrase is given a particular meaning, other
                parts of speech and grammatical forms of that word or phrase
                have corresponding meanings;

         (I)    references to the Purchaser shall be deemed to include its
                successors and assigns and references to the Supplier shall be
                deemed to include its successors and assigns;

         (J)    a reference to this "Agreement" or any other agreement or
                document shall be construed as a reference to it as amended,
                modified or novated from time to time.

2.2      The table of contents and headings in this Agreement are inserted for
         convenience only and shall not be taken into consideration in the
         interpretation or construction of this Agreement.

2.3      In the event of a conflict between the terms and conditions set out in
         the main body of this Agreement and any of the Schedules or
         attachments, the relevant Schedule or attachment shall prevail, in
         relation to that Schedule, unless expressly stated otherwise in this
         Agreement.

2.4      In the event of any inconsistency between the provisions of this
         Agreement and the Intellectual Property Transfer and Licensing
         Agreement, the terms of the Intellectual Property Transfer and
         Licensing Agreement shall prevail.

2.5      Purchaser and Supplier acknowledge that (notwithstanding any provision
         to the contrary in this Agreement), the provisions of Clause 10.3 of
         the Environmental Agreement

                                       9
<PAGE>

         between Shell Petroleum N.V. and Shell Epoxy Resins, Inc. for the Non-
         U.S. properties dated the date hereof (the "Environmental Agreement")
         shall apply as between any Seller Indemnified Party (as defined in the
         Environmental Agreement) and SER Indemnified Party (as defined in the
         Environmental Agreement) and any Person (as such term is defined in the
         Environmental Agreement) to whom a transfer or assignment is made in
         accordance with Clause 11.1 of the Environmental Agreement. Any
         obligation or liability of any SER Indemnified Party or Seller
         Indemnified Party under this Agreement shall be without prejudice to
         the rights, if any, of the relevant party to claim Environmental
         Damages (as defined under the Environmental Agreement) under the
         Environmental Agreement.

ARTICLE 3: OBJECT AND SCOPE

3.1      Subject to ARTICLE 8.9 and ARTICLE 18, the Supplier agrees to supply to
         the Purchaser and the Purchaser agrees to purchase from the Supplier
         the SUMF Items described herein under the terms and conditions set out
         in this Agreement. Except as otherwise provided in SCHEDULE 2, the
         Purchaser shall purchase the amounts of each SUMF Item up to its Firm
         Capacity Reservation until termination of the supply of such SUMF Item
         in accordance with the provisions of this Agreement or the relevant
         Schedule.

3.2      A description and, where appropriate, the technical specifications, the
         price, delivery terms, specific exclusions and limitations, if any, on
         consumption and supply, and such other details as this Agreement may
         require or as the Parties may agree, of each SUMF Item are set out in
         SCHEDULE 2.

3.3      Firm Capacity Reservation amounts for each SUMF Item as agreed by the
         Parties are set out in SCHEDULE 2 where applicable.

3.4      If the Purchaser or the Supplier subsequently wishes to change the
         nature, quantity or type of any SUMF Item provided hereunder, the other
         Party shall take reasonable efforts to accommodate such request but
         with no obligation to make such change. Article 10.4 provides the
         Purchaser's right to reduce its Firm Capacity Reservations for certain
         SUMF Items.

3.5      Title to and risk of loss of a SUMF Item shall pass from the Supplier
         to the Purchaser at the Delivery Point(s) specified in SCHEDULE 2.

3.6      The Supplier makes no representations or warranties express or implied
         with respect to any SUMF Items except as expressly set forth in this
         Agreement. No representation or warranty shall be implied under this
         Agreement or at law, including but not limited to, any warranty as to
         merchantability or any warranty as to fitness for a particular purpose
         in relation to any SUMF Item. The Supplier provides no warranty as to
         the performance of any computer system, digital device and any
         component thereof. The Purchaser acknowledges that except as expressly
         set forth herein, no representations or warranties are being made
         herein and releases and relieves the Supplier from and hereby waives
         any such other representations or warranties.

                                      10
<PAGE>

3.7      In the performance of their obligations under this Agreement the
         Parties shall act in good faith and in substantial compliance with all
         applicable laws.

ARTICLE 4: CATEGORIES OF SUMF

4.1      SUMF Items specified in SCHEDULE 2 as "Short Term SUMF" shall be
         supplied to the Purchaser by the Supplier on an initial short term
         basis upon the terms and for the period stated therein, provided that
         such term shall be automatically extended unless either Party elects to
         terminate the supply of a particular Short Term SUMF. ARTICLE 10
         provides specific termination provisions for Short Term SUMF Items.

4.2      The supply of SUMF Items specified in SCHEDULE 2 as "Sole Supplier
         SUMF" may not be terminated by the Purchaser or the Supplier except by
         way of a termination of this Agreement as a whole.

4.3      SUMF Items specified in SCHEDULE 2 as "Long Term SUMF" shall be
         supplied to the Purchaser by the Supplier on a long term basis. ARTICLE
         10 provides specific termination provisions for Long Term SUMF Items.

4.4      Any SUMF Item that is not specified as being either a Short Term SUMF
         or a Sole Supplier SUMF shall be a Long Term SUMF.

ARTICLE 5: SUMF CHARGES

5.1      In consideration of the supply of the SUMF Items by the Supplier to the
         Purchaser, as provided herein, the Purchaser shall pay the Supplier the
         SUMF Charges specified in SCHEDULE 2. In no event shall SUMF Charges
         include any costs charged to Purchaser under any other agreement
         between the Purchaser and the Supplier or any of the Affiliates of the
         Supplier.

5.2      The Purchaser shall be responsible for any existing or future sales
         tax, use tax, value added tax, environmental tax or other governmental
         charge or tax (other than taxes measured by income) levied or imposed
         on the Supplier with respect to any SUMF Items consumed by the
         Purchaser. The Purchaser shall also bear any increase in the cost of
         providing a SUMF Item which results from a change in law. The charges
         to be paid by Purchaser under this ARTICLE 5.2 shall be without
         duplication to the charges set forth in the Schedules and ARTICLE 5.1.

ARTICLE 6: SUMF CHARGES WITH REFERENCE TO COST

6.1      Where SUMF Charges are to be determined wholly or partly by reference
         to cost the following shall apply:

         (A)    Except as otherwise provided in this ARTICLE 6 or in SCHEDULE 2,
                the Purchaser shall pay:

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<PAGE>

                (i)     its share of Variable Costs for each SUMF Item based on
                        the Purchaser's actual consumption of such SUMF Item;

                (ii)    its share of Direct Site Costs for each SUMF Item based
                        on the fraction equal to the Purchaser's Firm Capacity
                        Reservation of such SUMF Item compared to the total Site
                        capacity of such SUMF Item or the other relevant
                        allocation key or keys specified in SCHEDULE 6;

                (iii)   its share of Overheads for each SUMF Item without
                        duplication of Direct Site Costs based on the fraction
                        equal to the Purchaser's Firm Capacity Reservation of
                        such SUMF Item compared to the total Site capacity of
                        such SUMF Item or any other allocation key specified in
                        SCHEDULE 6; and

                (iv)    the infrastructure charge specified in SCHEDULE 2.

         (B)    For the avoidance of doubt, wherever and to the extent the
                Supplier enjoys a pension fund contribution holiday, the
                Purchaser will share in the benefit of such holiday only until
                the date when the Supplier resumes contributions to the pension
                fund at which point the pension fund contributions for the
                relevant employees shall be included in the Direct Site Costs.

         (C)    Costs will be ascertained and charged pursuant to the Supplier's
                cost accounting practices which the Supplier represents are used
                for, or are directly reconcilable with, its Financial Reporting
                Accounts. A summary of the Supplier's current accounting
                practices for its Financial Reporting Accounts is attached
                hereto in SCHEDULE 3. The Supplier may modify its cost
                accounting practices for its Financial Reporting Accounts from
                time to time in the normal course of business in conformity with
                generally accepted accounting principles; but in all events,
                after the Supplier has permitted the Purchaser to review, and
                has consulted with the Purchaser as to, such modification.
                Notwithstanding the foregoing, the Supplier shall not make any
                such modification unless (i) it is for a legitimate business
                purpose not designed solely to increase SUMF Charges to the
                Purchaser or to Users generally and (ii) it does not have a
                discriminatory economic effect on the Purchaser relative to
                other Users except as may be permitted in this Agreement or as
                may be implemented to correct errors. The cost of any component
                of SUMF Items procured by Supplier through a Third Party shall
                be passed through to Purchaser at Supplier's cost plus an
                allocation and charge for any applicable Overheads. The Parties
                expressly acknowledge that any dispute pursuant to this ARTICLE
                6.1(C) is subject to the provisions of ARTICLE 19.

         (D)    The Purchaser shall not be responsible for any termination costs
                resulting from the Supplier's fixed cost reduction efforts in
                response to a reduction or termination of demand by any User
                other than the Purchaser except to the extent that the Purchaser
                benefits from the reduction efforts, in which case the Purchaser
                shall bear its proportionate share of the costs up to but not in
                excess of the benefit

                                      12
<PAGE>

                derived.

                Conversely, the Purchaser shall pay the reasonable costs,
                including personnel termination costs (including those
                actuarially determined) determined in accordance with ARTICLE
                10.9, which result from the Supplier's fixed cost reduction
                efforts in response (i) to a permanent or long-term reduction by
                the Purchaser of a Sole Supplier SUMF Item or a Long Term SUMF
                Item or (ii) to the termination of a Short Term SUMF Item for
                which the termination rights of the Supplier cannot be exercised
                earlier than upon termination of the Operating Agreement (as
                provided in the schedules attached to this Agreement) and for
                which the Purchaser exercises its right of termination of the
                supply of such Short Term SUMF Item prior to the termination of
                the Operating Agreement.

         (E)    The Purchaser shall bear the costs of any redundancy programme
                in accordance with ARTICLES 10.8 and 10.9 below required as a
                result of any productivity improvement to a particular SUMF Item
                in proportion to the reduction of the relevant SUMF Charges to
                the Purchaser before and after the productivity improvement as
                compared to the reduction of SUMF Charges to all other Users
                before and after the productivity improvement; provided however
                that such costs to be paid by Purchaser shall not exceed such
                reduction in SUMF Charges realized by Purchaser.

         (F)    If under applicable tax or other laws, the Supplier must charge
                a mark-up or profit factor with respect to any SUMF Charge, or,
                alternatively, if a profit factor is imputed under applicable
                tax or other laws, the Parties shall, in good faith and with the
                view to minimising the financial impact of such mark-up or
                profit factor on the Purchaser, discuss and agree to such
                revision to the SUMF Charge as will ensure compliance with the
                relevant tax or other laws. Any failure by the Parties to reach
                agreement on the revision to be made shall constitute a Dispute.

         (G)    Unless the Parties agree otherwise in SCHEDULE 1, the Parties
                shall keep accurate books and records of their activities
                relevant to this Agreement, for at least two (2) years after the
                calendar year in question or such longer period as may be
                required by law.

         (H)    To verify the correctness of all invoices issued and payments
                made hereunder for the current calendar year and for any of the
                two (2) preceding years and/or to verify the implementation of
                the Supplier's curtailment procedures, and/or to verify the
                other Party's meter readings a Party, upon at least sixty (60)
                days prior written notice and at reasonable times and intervals
                but not more than once in any calendar year, may require that,
                at the requesting Party's cost, an independent public auditor,
                being a firm of international repute, performs an audit for such
                purposes. Any such audit shall be pursued diligently and
                completed no later than ninety (90) days after its commencement.

                The Parties shall provide such auditors with the necessary data
                and explanations

                                      13
<PAGE>

                reasonably necessary for the calculation of the SUMF Charges and
                the basis therefor.

                The requesting Party undertakes to procure that such auditors
                are bound by obligations of confidentiality at least as strict
                as those set out in ARTICLE 12.

                Any report produced by such auditors shall be provided to both
                the Purchaser and the Supplier and shall state the results of
                the aforementioned verifications. If such report reveals that
                errors have been made and that a Party was overcharged or
                undercharged by an amount equal to or greater than USD20,000 or
                its equivalent in local currency, the report shall state the
                nature, amount and consequences of such error(s) together with
                such additional information as is reasonably necessary to
                explain the genesis of those errors and to enable the Parties to
                avoid recurrence thereof.

                Any refund of an overpayment or payment of an additional sum
                shall be made within 28 days following the provision by the
                auditors of their report and shall include interest at the
                Interest Rate for the time period commencing when the
                overpayment was made or the underpayment amount would otherwise
                have been due and ending on the date of any refund or additional
                payment in consequence of the audit.

                In the event of an overcharge equal to or greater than USD20,000
                or its equivalent in local currency the Supplier will reimburse
                the Purchaser, if the Purchaser is the requesting Party, for the
                audit costs. In the event of an undercharge equal to or greater
                than USD20,000 or its equivalent in local currency and such an
                undercharge being attributable to an error or errors relating to
                metering equipment owned by the Purchaser, the Purchaser shall
                reimburse the Supplier, if the Supplier is the requesting Party,
                for the audit costs.

                Failure to make any requisite payment relating to an overcharge
                or undercharge within the 28 days period shall constitute a
                Dispute for resolution in accordance with ARTICLE 19.

7.1      The Purchaser shall pay the SUMF Charges in the currency specified in
         SCHEDULE 1.

         In no event shall either Party be entitled to set off or reduce any
         payments due and owing to the other Party under this Agreement by any
         amount which the first Party claims are owed to it by the other Party
         pursuant to any other agreement between the Parties.

7.2      Unless otherwise set out in the relevant Schedules, the provisions set
         out below apply:

         (A)    The Supplier shall provide the Purchaser with an invoice for
                SUMF Charges by the 5th day of each month.

                                      14
<PAGE>

         (B)    For the first two months of every twelve month billing cycle the
                amount invoiced shall be the amount budgeted for those months in
                the Annual Plan and Budget.

         (C)    For the next ten months of such twelve month billing cycle the
                amount invoiced shall be the actual SUMF Charge for the month
                before the preceding month.

         (D)    The final reconciliation for a twelve month billing cycle shall
                be made within 60 days of the end of such cycle. The aggregate
                budgeted SUMF Charges for the first two months of the cycle
                shall be reconciled against the aggregate actual SUMF Charges
                for the eleventh and twelfth months of the cycle and following
                such reconciliation the relevant Party shall make an adjusting
                payment against an appropriate invoice or credit note within
                thirty (30) days of the date of the relevant invoice or credit
                note, which credit note or invoice shall include interest
                computed at the Interest Rate for the applicable period.

         (E)    The invoices shall be broken down in sufficient detail to
                indicate the SUMF Charges for each SUMF Item supplied during the
                period in question. The SUMF Charge for each SUMF Item shall in
                turn be broken down in sufficient detail as the Purchaser may
                reasonably request and as the Supplier can reasonably provide.

         (F)    The Purchaser shall pay each invoice on or before the last day
                of the month of issue of the relevant invoice. From the due
                date, interest will accrue on the undisputed invoice amount at
                the Default Rate.

         (G)    If the Purchaser disagrees with an amount invoiced for SUMF
                Charges, the Purchaser shall advise the Supplier in writing
                ("Invoice Dispute Notice") of the amount disputed within sixty
                (60) days of the date of the invoice and the reason why the
                Purchaser considers the SUMF Charges not to be properly made.
                Subject to ARTICLE 7.2(H), the Purchaser is entitled to defer
                payment of the disputed invoice amount if the disagreement
                cannot be resolved before the normal due date but the Purchaser
                is required to pay timely the undisputed invoice amount. Payment
                of the undisputed invoice amount shall not constitute approval
                of the entire invoice.

         (H)    The Parties shall meet to resolve any dispute with respect to an
                invoice as expeditiously as possible. The Supplier shall provide
                to the Purchaser within thirty (30) days after receipt of the
                Invoice Dispute Notice information in detail sufficient to
                permit the Purchaser to verify the accuracy of such invoice. The
                Purchaser shall either accept the Supplier's response or give
                written notice to the Supplier that the Purchaser continues to
                question such invoice. Promptly after receipt of such notice,
                the Supplier and the Purchaser shall negotiate in good faith
                with respect to resolving such question. If the Supplier and the
                Purchaser cannot resolve such question in a mutually
                satisfactory manner within twenty (20) days after such notice
                shall have been given, the question shall promptly be submitted
                to a firm of independent public auditors, of international
                repute, as determined by

                                      15
<PAGE>

                mutual agreement between the Supplier and the Purchaser within
                another twenty (20) days or, in default of agreement, as chosen
                by lot from among four independent public auditors, two of which
                shall be selected by the Supplier and two of which shall be
                selected by the Purchaser. Such firm will review the applicable
                books and records of the Supplier and the Purchaser and make
                such other investigations it shall deem necessary to resolve
                such question. The costs of retaining such firm shall be borne
                by the Purchaser unless the firm determines that the Purchaser
                was overcharged by an amount equal to or greater than USD 20,000
                or its equivalent in local currency, in which case the costs of
                retaining such firm shall be borne by the Supplier. The decision
                of the auditors shall be final and binding on the parties and
                not subject to challenge and resolution under Article 19 and
                judgment thereon may be entered in any court of competent
                jurisdiction.

         (I)    Any refund of any invoice amount, or payment of any disputed
                invoice amount, shall be promptly made following the final
                determination as aforesaid and shall include interest at the
                Interest Rate based on the actual number of days elapsed from
                the due date of the original invoice to the date such refund or
                additional payment is received by the Party concerned.

         (J)    The Supplier shall provide the Purchaser with a quarterly report
                on variations from the Annual Plan and Budget no later than
                thirty (30) days from the end of the relevant quarter. In the
                event of a difference between the Annual Plan and Budget and
                actual results exceeding the total Annual Plan and Budget by
                more than 3% for the SUMF Item in question or by more than a 3%
                change in any tariff with respect to the SUMF Item in question
                or the equivalent in local currency of USD 50,000, whichever is
                the greater, the Supplier shall consult with the Purchaser and
                provide relevant explanations for such differences. The Parties
                will discuss which actions, if any, are to be taken with respect
                to such differences.

ARTICLE 8: ANNUAL FORECAST; ANNUAL PLAN AND BUDGET; AND
CURTAILMENT

8.1      For operational forecast purposes only, unless the Purchaser otherwise
         submits to the Supplier on or before 1st June in each calendar year a
         non-binding annual forecast of its quarterly volume requirements set
         out on a month by month basis for each SUMF Item for the forthcoming
         calendar year and estimates of its volume requirements for each SUMF
         Item for the following four (4) calendar years, the Supplier shall use
         the prior year's volume forecast for SUMF Items and estimates of volume
         requirements for the forthcoming year and four subsequent years. The
         Purchaser shall update any such forecast on or before September 1st of
         each year to provide its actual forecast.

8.2      Not later than 60 days before the commencement of each calendar year
         beginning after the Effective Date, the Supplier shall prepare and
         submit to the Purchaser for approval a draft operational forecast of
         the SUMF Charges (the "Annual Plan and Budget") for the following
         calendar year taking into full account the forecast data provided to
         the Supplier by the Purchaser.

                                      16
<PAGE>

8.3      Following receipt by the Purchaser of the draft Annual Plan and Budget,
         the Parties shall consult and shall each use all reasonable endeavours
         to reach agreement thereon. Upon the approval of both Parties, the
         draft Annual Plan and Budget becomes the Annual Plan and Budget.

8.4      If the draft Annual Plan and Budget is not approved prior to the
         commencement of the calendar year to which it relates the most recently
         approved Annual Plan and Budget shall be used until the new Annual Plan
         and Budget is approved.

8.5      Each Annual Plan and Budget shall be designed to ensure that the SUMF
         Items are provided in accordance with this Agreement.

8.6      For each SUMF Item, the Annual Plan and Budget for the calendar year
         1999 or, as applicable, 2000, is set out in SCHEDULE 2 or SCHEDULE 7,
         as applicable.

8.7      If there is any Dispute between the Parties on the final Annual Plan
         and Budget the matter shall be referred for resolution in accordance
         with ARTICLE 19.

8.8      In the event that any SUMF Items are not available at the planned
         volume rates for any reason whatsoever, the Supplier shall implement
         the then current curtailment procedures followed by the Supplier and as
         specified in SCHEDULE 2 or 4. Unless otherwise provided in any Schedule
         hereto, such curtailment procedures will be based upon the following
         priorities, provided that the interests of the Purchaser are treated
         fairly: (i) safety; (ii) minimising adverse environmental impact; and
         (iii) sustaining the operations of the Site as a whole.

8.9      The Supplier shall have the right to impose curtailment selectively
         based upon the foregoing considerations regardless of the cause of the
         curtailment and without liability. However, nothing in this ARTICLE 8
         shall permit the Supplier to curtail any SUMF Item based upon its
         business considerations. Purchaser may allocate such curtailed SUMF
         Items among Purchaser's operations as Purchaser determines in its sole
         discretion, subject to the operational or HSE constraints of Supplier.

8.10     If reasonably possible, the Supplier shall advise the Purchaser of any
         impending curtailment and the Parties shall cooperate to avoid or
         mitigate the effects of such curtailment in an economically efficient
         manner.

ARTICLE 9: LIABILITY AND INDEMNITY

9.1      For purposes of this ARTICLE 9, the following terms shall be defined as
         set forth below:

                "Employee" means any employee of the applicable Party.

                "Third Party Claim" means any claim initiated by a person (other
                than either Party, their Affiliates or their employees) against
                an indemnified Party, any of

                                      17
<PAGE>

                their respective Affiliates or any of their respective
                Employees.

                "Supplier Indemnitees" means the Supplier, its Affiliates,
                officers, directors, employees, agents, servants, and other
                representatives of each of them.

                "Purchaser Indemnitees" means the Purchaser, its Affiliates,
                officers, directors, employees, agents, servants, and other
                representatives of each of them.

9.2      (A)    Each Party shall, except as provided in ARTICLES 9.2(B),
                9.3(A)(iii), 9.3(B)(iii) and as set forth in ARTICLE 9.3(C),
                be responsible for any Loss or Damage to its property.

         (B)    If any Loss or Damage to a SUMF Asset shall occur by reason of
                the Gross Negligence or Wilful Misconduct of a Party, such Party
                shall be responsible for the cost of the restoration of such
                SUMF Asset.

         (C)    Each Party shall, except as provided in ARTICLE 9.3, be
                responsible for any Loss or Damage it may cause to any of its
                employees.

9.3      (A)    Subject to the limitations set forth in this ARTICLE 9 and
                in ARTICLE 14, the Purchaser shall be responsible for and
                shall indemnify, defend and hold harmless the Supplier
                Indemnitees from and against the following:

                (i)     any Loss or Damage of Supplier Indemnitees to any of the
                        Purchaser's Employees attributable to (a) the
                        Purchaser's negligence (excluding any Loss or Damage
                        attributable to Supplier's negligence), or (b) the
                        Purchaser's Gross Negligence or Wilful Misconduct, or
                        (c) the Supplier's negligence in an act or omission with
                        respect to performance of its obligations under this
                        Agreement (but not the Supplier's Gross Negligence or
                        Wilful Misconduct);

                (ii)    any Loss or Damage of Supplier Indemnitees to any of the
                        Supplier's Employees attributable to (a) the Purchaser's
                        negligence or (b) the Purchaser's Gross Negligence or
                        Wilful Misconduct;

                (iii)   any Loss or Damage to any of the Supplier's property
                        (excluding any SUMF Asset) attributable to the
                        Purchaser's Gross Negligence or Wilful Misconduct;

                (iv)    any Loss or Damage to any of the Purchaser's property
                        (excluding any SUMF Asset) attributable to the
                        Purchaser's negligence, Gross Negligence or Wilful
                        Misconduct;

                (v)     any Loss or Damage of Supplier Indemnitees resulting
                        from Third Party Claims attributable to (a) the
                        Purchaser's negligence or (b) the Purchaser's Gross
                        Negligence or Wilful Misconduct;

                                      18
<PAGE>

                (vi)    any Loss or Damage of Supplier Indemnitees resulting
                        from failure by the Supplier to comply with Legal
                        Requirements in relation to performance of this
                        Agreement limited to the amount chargeable under this
                        Agreement to Purchaser in respect of SUMF Charges in any
                        calendar year (if such Loss or Damage is incurred partly
                        in relation to performance of this Agreement and partly
                        in connection with other activities of Supplier
                        Indemnitees, the Purchaser shall only be liable
                        hereunder for any equitable allocation of such Loss or
                        Damage in the same manner Overheads are equitably
                        allocated); provided nothing in this ARTICLE 9.3(A)(vi)
                        shall provide for a duplication of recovery by Supplier;

                provided, however, that, except as provided in ARTICLE 14 and
                ARTICLE 9.7, the Purchaser's aggregate liability for any Loss or
                Damage arising under ARTICLE 9.3(A)(ii)(b), 9.3(A)(iii),
                9.3(A)(iv), or 9.3(A)(v)(b) shall not (i) in any calendar year
                exceed 25% of the SUMF Charges in the preceding calendar year
                (in the first calendar year, 25% of the SUMF charges for that
                calendar year); or (ii) for loss resulting from any single
                event, exceed 25% of the SUMF Charges in the calendar year in
                which the Loss or Damage first occurs.

         (B)    Subject to the limitations set forth in this ARTICLE 9 and in
                ARTICLE 14, the Supplier shall be responsible for and shall
                indemnify, defend and hold harmless the Purchaser Indemnitees
                from and against the following:

                (i)     any Loss or Damage of Purchaser Indemnitees to any of
                        the Supplier's Employees attributable to the Supplier's
                        Gross Negligence or Wilful Misconduct;

                (ii)    any Loss or Damage of Purchaser Indemnitees to any of
                        the Purchaser's Employees attributable to the Supplier's
                        Gross Negligence or Wilful Misconduct;

                (iii)   any Loss or Damage to any of the Purchaser's property
                        (excluding any SUMF Asset) attributable to the
                        Supplier's Gross Negligence or Wilful Misconduct; and

                (iv)    Any Loss or Damage of Purchaser Indemnitees resulting
                        from Third Party Claims attributable to the Supplier's
                        Gross Negligence or Wilful Misconduct;

                provided, however, that, except as provided in ARTICLE 14 and
                ARTICLE 9.7, the Supplier's aggregate liability for any Loss or
                Damage arising under Article 9.3(B) shall not (i) in any
                calendar year, exceed 25% of the SUMF Charges in the preceding
                calendar year (in the first calendar year, 25% of the SUMF
                charges for that calendar year); or (ii) for loss resulting from
                any single event, exceed 25% of the SUMF Charges in the calendar
                year in which the Loss or Damage first occurs.

                                      19
<PAGE>

         (C)    If Supplier shall suffer Loss or Damage to SUMF Assets as a
                result of the negligence (but not Gross Negligence or Wilful
                Misconduct) of Purchaser or Supplier, Supplier shall be
                responsible to restore such SUMF Asset and Purchaser shall
                reimburse Supplier for and in an amount equal to (i) the cost to
                restore such SUMF Asset, multiplied by (ii) the fraction equal
                to the Purchaser's Firm Capacity Reservation for such SUMF Asset
                compared to the total site capacity of such SUMF Item or the
                other relevant allocation key or keys specified in SCHEDULE 6.
                To cover the risk of the Purchaser having, pursuant to the
                provision immediately above, to bear a proportion of the cost of
                restoring a SUMF Asset in respect of which the Supplier has
                sustained Loss or Damage, the Purchaser shall insure or, with
                Supplier's consent, self-insure.

         (D)    Each party waives and releases the other Party from and against
                any and all Loss or Damage to such Party's assets, excluding any
                SUMF Asset, resulting from the negligence (but not Gross
                Negligence) of the other Party.

9.4      A Party shall promptly notify the other Party of any claim made against
         it arising out of matters covered in this ARTICLE 9. Once the
         indemnifying Party accepts its indemnity obligation, it may, at its own
         cost, conduct negotiations for the settlement of any claim made against
         the indemnified Party, and any litigation that may arise therefrom in
         such reasonable manner as the other Party shall from time to time
         approve, such approval not to be unreasonably withheld or delayed. The
         indemnified Party shall not make any admission which is prejudicial to
         the indemnifying Party unless the indemnifying Party has failed to
         accept its indemnity obligations within 20 days after having been
         requested to do so.

9.5      Notwithstanding anything to the contrary contained in this Agreement,
         under no circumstance shall a Party or any of its Affiliates be held
         liable to the other Party or any of the other Party's Affiliates for
         any loss of profit, loss of use, loss of production, loss of contracts
         or for any other indirect or consequential damage that may be suffered
         by the other, or for any special, exemplary or punitive damages.

9.6      Any SUMF Items procured from a Third Party as indicated in the relevant
         Schedules will be provided by the Supplier to the Purchaser under the
         same terms and conditions applicable between the Supplier and the Third
         Party and, to the extent so supplied, the Supplier shall have no
         liability with respect to the supply or performance of such SUMF Items.

9.7      Notwithstanding any other provision of this Agreement, each Party
         shall, to the fullest extent permitted by law, indemnify, defend and
         hold harmless the other Party and its Affiliates from and against any
         and all Environmental Loss or Damage, including other Loss or Damage to
         an Environmental Protection System, (after giving effect to any
         recoveries from Third Parties) in any way resulting from or
         attributable to a product, material, feedstock or off-take owned by
         such Party or its Affiliates; provided however, that neither Party
         shall be required to indemnify the other Party for any Environmental

                                      20
<PAGE>

         Damage (as defined in the Environmental Agreement) for which such other
         Party is entitled to indemnification under the Environmental Agreement.

9.8      Any liability of one Party to the other Party under this ARTICLE 9
         shall expire two years after the date on which the act or omission
         giving rise to such Party's liability first occurred, unless the Party
         makes a claim within such two year period, and no claim, demand, action
         or proceeding shall be brought or initiated by the claiming Party
         against the other Party thereafter; provided, however, that the
         liability of a Party under ARTICLE 9.7 shall not be so limited.

9.9      The foregoing indemnities set forth in this ARTICLE 9 are intended to
         be enforceable against the Parties in accordance with the express terms
         and scope thereof.

9.10     The provisions of this ARTICLE 9 are for the benefit of the Purchaser
         Indemnitees and the Supplier Indemnitees and no other party shall be
         entitled to any benefit of the provisions of this Article 9.

ARTICLE 10: TERM AND TERMINATION; REDUCTION OF CAPACITY RESERVATION

10.1     This Agreement shall be of full force and effect on and from the
         Effective Date and shall continue for an initial term of twenty (20)
         years from the Effective Date and shall be automatically renewed
         thereafter for extension terms of five (5) years each, unless
         terminated earlier as provided for in this Agreement.

10.2     The Purchaser may terminate this Agreement in its entirety as to one or
         both of its Plants in any of the following circumstances:

         (A)    if a Bankruptcy Event occurs and is continuing in relation to
                the Supplier and the Supplier does not provide adequate
                assurances to the Purchaser within thirty (30) days of the
                occurrence of the Bankruptcy Event that the Supplier will
                continue to provide all SUMF Items to the Purchaser on the terms
                and conditions of this Agreement;

         (B)    with twelve (12) months' prior written notice, following the
                decision by the Purchaser to discontinue its operations at such
                Plant or Plants; and

         (C)    with three (3) years' prior written notice, effective at the end
                of the initial twenty (20) year term or at the end of any five
                (5) year extension term, as the case may be.

10.3     Unless otherwise provided in a Schedule to this Agreement, the
         Purchaser may terminate this Agreement as to the supply of an
         individual SUMF Item at one or both of its Plants in any of the
         following circumstances, provided always that no supply of Sole
         Supplier SUMF may be terminated by the Purchaser without terminating
         this Agreement as a whole as to one or both of its Plants:

                                      21
<PAGE>

         (A)    if a Bankruptcy Event occurs and is continuing in relation to
                the Supplier and the Supplier does not provide adequate
                assurances to the Purchaser within thirty (30) days of the
                occurrence of the Bankruptcy Event that the Supplier will
                continue to provide the particular SUMF Item to the Purchaser on
                the terms and conditions of this Agreement;

         (B)    if, for reasons other than Force Majeure, a continuing material
                non-conforming performance occurs as to the Supplier's provision
                of a SUMF Item for more than thirty (30) days and the Purchaser
                has given the Supplier written notice of such non-conforming
                performance and within thirty (30) days thereafter such
                unsatisfactory performance has not been corrected or the
                Supplier has not developed and implemented a plan of corrective
                action reasonably satisfactory to the Purchaser to prevent the
                reoccurrence of such non-conforming performance;

         (C)    with ninety (90) days' prior written notice, or such other
                notice period as is provided in a Schedule for any Short Term
                SUMF Item;

         (D)    with three (3) years' prior written notice, or such other notice
                period as is provided in a Schedule for any Long Term SUMF Item;
                and

         (E)    with at least thirty (30) days' prior written notice, upon the
                occurrence of at least three (3) Force Majeure events (other
                than Force Majeure events caused by "Acts of God" including Acts
                of God affecting any supplier or vendor to Supplier) that occur
                with respect to such particular SUMF Item during any twelve (12)
                months period.

10.4     If the Purchaser or the Supplier requests a change in the nature,
         quantity or type of any SUMF Item provided hereunder, the other Party
         shall use reasonable efforts to accommodate such request but with no
         obligation to make such change. In the event of the charge for a
         particular SUMF Item being based upon the Purchaser's Firm Capacity
         Reservation, the Purchaser shall have the right with respect to such
         SUMF Item upon ninety (90) days advance written notice in the case of a
         Short Term SUMF Item (or such other period as may be required to
         terminate such Short Term SUMF Item under the applicable Schedule) and
         three (3) years advance written notice in the case of a Long Term SUMF
         Item (or such shorter period as may be required to terminate such Long
         Term SUMF Item under the applicable Schedule) to reduce its Firm
         Capacity Reservation for such SUMF Item and, when reduced, to receive a
         pro rata reduction in the Direct Site Costs, Overheads, Infrastructure
         Fees and such other costs that are allocated based on the Purchaser's
         share of the aggregate of firm capacity reservations for such SUMF Item
         in respect of all Users. There shall be no minimum or maximum limit on
         the extent of the reduction except as the Supplier may require for the
         protection of HSE. Termination cost (i.e. disconnection cost and
         redundancy cost, as the case may be) associated with the reduction of
         the Firm Capacity Reservation for a Long Term SUMF Item will be dealt

                                      22
<PAGE>

         with as if such SUMF Item were terminated and the provisions of Article
         10.8 shall apply thereto.

10.5     The Supplier may terminate this Agreement in its entirety in any of the
         following circumstances:

         (A)    if a Bankruptcy Event occurs and is continuing in relation to
                the Purchaser and the Purchaser does not provide the Supplier
                with adequate assurance (such as an advance payment or letter of
                credit or such other security as is acceptable to Supplier) of
                continued payment of the SUMF Charges for all SUMF Items within
                thirty (30) days of the occurrence of the Bankruptcy Event;

         (B)    if the Purchaser fails to pay any SUMF Charge within three (3)
                months of the date when such payment fell due, and (i) such
                failure continues for an initial period of at least thirty (30)
                days after written notice from the Supplier and (ii) further
                continues for an additional period of at least ten (10) days
                following a second written notice from the Supplier which second
                notice may be given at any time following the expiration of the
                first thirty (30) day period but the Supplier shall not be
                entitled to terminate this Agreement pursuant to this provision
                when the Purchaser has in good faith referred any disputed SUMF
                Charge for resolution in accordance with ARTICLE 7.2(H) or
                ARTICLE 19, and made payment to the Supplier of any part of the
                SUMF Charge not the subject of the Dispute;

         (C)    with at least twenty-four (24) months' prior written notice or,
                if that is impossible, with as much notice as is possible under
                the circumstances and in any event promptly after the Supplier
                has made such decision, if the Supplier decides to cease
                operations of all or substantially all of its SUMF Assets at the
                Site and does so cease such operations; and

         (D)    with three (3) years' prior written notice, effective at the end
                of the initial twenty (20) year term of this Agreement or at the
                end of any five (5) year extension term, as the case may be.

10.6     Unless otherwise provided in a Schedule to this Agreement, the Supplier
         may terminate this Agreement as to the supply of an individual SUMF
         Item in any of the following circumstances, provided that no supply of
         Sole Supplier SUMF may be terminated by the Supplier without
         terminating this Agreement as a whole:

         (A)    if a Bankruptcy Event occurs and is continuing in relation to
                the Purchaser and the Purchaser does not provide the Supplier
                with adequate assurance (such as an advance payment or letter of
                credit or such other security as is acceptable to Supplier) of
                continued payment of the SUMF Charges for all SUMF Items within
                thirty (30) days of the occurrence of the Bankruptcy Event;

         (B)    if the Purchaser without proper justification fails to pay any
                SUMF Charge for such individual SUMF Item within three (3)
                months of the date when such

                                      23
<PAGE>

                payment fell due, and such failure continues for an initial
                period of at least thirty (30) days after written notice from
                the Supplier, but the Supplier shall not be entitled to
                terminate this Agreement pursuant to this provision when the
                Purchaser has in good faith referred any disputed SUMF Charge
                for an individual SUMF Item for resolution in accordance with
                ARTICLE 7.2(H) or ARTICLE 19, and has made payment to the
                Supplier of any part of the SUMF Charge not the subject of the
                Dispute;

         (C)    with at least twelve (12) months' prior written notice or, if
                that is impossible, with as much notice as is possible under the
                circumstances and in any event promptly after the Supplier has
                made such decision, if the Supplier decides to cease the supply
                to the entire Site of such SUMF Item SUMF and does so cease such
                supply and such SUMF Item is not a Sole Supplier SUMF Item;

         (D)    with ninety (90) days' prior written notice, or such other
                notice period as is provided in SCHEDULE 2, for any Short Term
                SUMF Item; provided, however, that such termination of a Short
                Term SUMF Agreement by the Supplier may occur only on or after
                December 31, 2002 (or such other initial period of duration as
                may be expressly specified in the applicable Schedule for such
                SUMF Item); and provided further, however, that the effective
                date of any such termination shall in all events occur on the
                last day of the calendar year which follows such ninetieth day;

         (E)    with three (3) years' prior written notice effective at the end
                of the initial period of twenty (20) years or at the end of any
                extension period of five (5) years, as the case may be, for any
                Long Term SUMF Item; and

         (F)    with at least thirty (30) days' prior written notice, upon the
                occurrence of at least three (3) Force Majeure events (other
                than Force Majeure events caused by "Acts of God", including
                Acts of God affecting any third party supplier or vendor to the
                Purchaser) that occur with respect to the same operating unit of
                Purchaser and with respect to the same SUMF Item, during any
                twelve (12) months period.

10.7     Upon the termination of the supply of a Short Term SUMF Item to a Plant
         by Purchaser, the Supplier shall physically disconnect from that SUMF
         Item's delivery system to the Plant and shall pay all costs associated
         with the physical disconnection. Upon the termination of a Short Term
         SUMF Item by the Supplier pursuant to ARTICLE 10.5(A) or 10.6(A) due to
         a Bankruptcy Event of Purchaser or pursuant to ARTICLE 10.5(B) or
         10.6(B) due to a payment default by Purchaser under this Agreement, the
         Supplier shall physically disconnect from that SUMF Item's delivery
         system and Purchaser shall pay all costs associated with the physical
         disconnection. Upon the termination of the supply of a Long Term SUMF
         Item to a Plant, the Purchaser shall physically disconnect from that
         SUMF Item's delivery system to the Plant in the time and manner
         instructed by the Supplier. The Purchaser shall pay the costs
         associated with the physical disconnection, if a Long Term SUMF Item
         was terminated (i) by Purchaser pursuant to ARTICLE 10.2(B) or 10.3(D)
         or (ii) by Supplier pursuant to ARTICLE 10.5(A), 10.5(B), 10.6(A) or
         10.6(B).

                                      24
<PAGE>

         Each Party agrees to cooperate with the other Party in order to
         facilitate disconnection and minimize disconnection costs. The Supplier
         shall pay the costs associated with the physical disconnection of the
         Long Term SUMF Item that are not required to be paid by the Purchaser
         as provided in the preceding sentence. Notwithstanding the other
         provisions of this ARTICLE 10.7, the costs associated with the physical
         disconnection of all SUMF Items at the termination of this Agreement
         under ARTICLE 10.2 (C) or 10.5 (D) or upon termination of the supply of
         an individual SUMF Item under ARTICLE 10.6(E) shall be paid one half by
         the Purchaser and one half by the Supplier.

10.8     In the event of termination of this Agreement pursuant to ARTICLE
         10.2(A), 10.2(B), 10.3, 10.5(A), 10.5(B), 10.5(C) or upon termination
         of the supply of an individual SUMF Item under ARTICLE 10.6, the
         Supplier may terminate the employment of any member of its or any of
         its Affiliates' staff substantially involved in the provision of SUMF
         Items to the Purchaser under this Agreement. In the event of
         termination of this Agreement as to the supply of an individual SUMF
         Item pursuant to ARTICLE 10.6, and in the event of a reduction in the
         Purchaser's Firm Capacity Reservation pursuant to ARTICLE 10.4, the
         Supplier may terminate the employment of any member of its or any of
         its Affiliates' staff substantially involved in the provision of the
         relevant SUMF Item. In the case of the termination by the Supplier of
         employment of any member of its staff as a result of
         termination of this Agreement under ARTICLE 10.2(B), 10.5(A), 10.5(B),
         10.6(A) and 10.6(B) or a reduction in the Purchaser's Firm Capacity
         Reservation under ARTICLE 10.4, the Purchaser will indemnify the
         Supplier for any redundancy costs in accordance with ARTICLE 10.9;
         provided that such indemnity shall be on a pro rata basis in the
         proportion of the Purchaser's share of allocated manpower for its
         operation to the extent that any employee is not substantially involved
         in the provision of that individual SUMF Item. Notwithstanding the
         foregoing provisions of this ARTICLE 10.8 that set out the indemnity of
         Purchaser for certain redundancy costs of Supplier, at the termination
         of this Agreement under ARTICLE 10.2(C), or 10.5(D), or upon
         termination of an individual SUMF Item under ARTICLE 10.6(E) any
         redundancy costs of Supplier as determined in accordance with ARTICLE
         10.9, shall be paid one half by the Purchaser and one half by the
         Supplier.

10.9     In the event of termination of this Agreement whether in its entirety
         as to one or both Plants or as to the supply of an individual Item of
         SUMF pursuant to any of ARTICLES 10.2(B), 10.2(C), 10.3(D), 10.3(E), or
         10.5(A), 10.5(B), 10.5(D), 10.6(A), 10.6(B), and 10.6(E) with respect
         to any member of staff terminated in accordance with ARTICLE 10.8 who
         (i) in the case of the termination of this Agreement in its entirety,
         was substantially involved in the provision to the Purchaser of a
         Long-Term SUMF Item or Sole Supplier SUMF or (ii) in the case of the
         termination of this Agreement as to the supply of an individual Long
         Term SUMF Item or of a reduction in the Firm Capacity Reservation as to
         a Long Term SUMF Item, was substantially involved in the provision to
         the Purchaser of such SUMF Item, the Purchaser will indemnify the
         Supplier in full against all and any liabilities, losses, costs,
         damages, expenses, demands and claims relating to

         (a)    compensation and remuneration (including benefit entitlements
                and social charges whether contractual or statutory) arising
                from or in connection with (i) the period

                                      25
<PAGE>

                of employment from the date of termination of the SUMF Item to
                the date of such decision to terminate the Employee and (ii) the
                relevant notice period applicable to the relevant employee in
                accordance with the Supplier's applicable policy and

         (b)    the termination of his employment provided (i) the Supplier
                shall make any decision regarding the termination of employment
                and notify the Purchaser accordingly within 180 days of
                notification of the termination of the Agreement or the
                termination of the supply of an individual Item of SUMF; and
                (ii)the Supplier has used reasonable endeavours, but has failed,
                to find suitable alternative employment on the Site for the
                employee prior to notifying the employee of his dismissal in
                accordance with Dutch law and with his contract of employment;
                (iii) an employee who is transferred by the Supplier to an
                Affiliate as a result of any such termination shall not be
                considered a terminated employee for purposes of this Agreement
                unless such transfer results in severance costs in which case
                the Purchaser shall indemnify the Supplier for such severance
                costs in accordance with this ARTICLE 10.9; and (iv) and
                notwithstanding the provisions of ARTICLE 10.9(a) the severance
                cost arising out of the termination of such employee's
                employment shall be computed by reference to the total length of
                service of such employee with the Supplier or any of its
                Affiliates prior to the date of such decision to terminate the
                employee's employment and not by reference to the period
                specified in ARTICLE 10.9(a).

         Notwithstanding the foregoing provisions of this ARTICLE 10.9 that set
         out payment of certain costs by Purchaser, at the termination of this
         Agreement under ARTICLE 10.2(C) or 10.5(D) or upon termination of the
         supply of an individual SUMF Item under ARTICLE 10.6(E) any redundancy
         costs of Supplier as determined in accordance with ARTICLE 10.9, shall
         be paid one half by the Purchaser and one half by the Supplier.

10.10    Each Party shall exercise its reasonable efforts to minimise any
         adverse effect to the other Party resulting from the termination of the
         rendering, in whole or in part, of any SUMF Items under this Agreement.
         Each Party agrees to cooperate with the other Party in order to
         facilitate any disconnection and minimise disconnection costs and
         termination costs. In the event the Supplier purports to cease to
         provide any Long Term or Sole Supplier SUMF Item during the ten-year
         period following the Effective Date as a result of its cessation of
         operations of all or substantially all of its SUMF Assets at the Site
         or its cessation of supply to the entire Site of such SUMF Item, the
         Supplier shall continue to provide the Purchaser with such SUMF Item
         for the balance of the ten-year period on a basis which is the economic
         equivalent of the Supplier's supply to the Purchaser of such SUMF Item
         prior to the Supplier's cessation of operations or supply. The manner
         in which the Supplier continues to provide such SUMF Item on an
         economically equivalent basis shall be within the Supplier's sole
         discretion and may include the transfer by the Supplier of SUMF Assets,
         the assignment of all or part of this Agreement to Third Parties, the
         investment in alternative assets and the procurement of comparable
         items from Third Parties. In the event such termination occurs
         following the tenth anniversary of the Effective Date, the provisions
         of ARTICLE 10.11 shall apply to Supplier's provision of SUMF Items.

                                      26
<PAGE>

10.11    Upon termination of this Agreement, the Parties, acting reasonably and
         in good faith, shall negotiate for the continued provision of any
         essential SUMF Items on commercially competitive terms and conditions,
         including price, which shall in any event be sufficient to provide the
         Supplier with full recovery of its cash costs plus a return on capital
         and capital reimbursement consistent with the other SUMF infrastructure
         charges contained in this Agreement. In addition, if such termination
         occurs any time after the tenth anniversary of the Effective Date,

         (a)    the Supplier shall consider, without obligation, the same
                alternatives which it may consider upon termination of the
                provision of SUMF Items during the ten-year period commencing
                with the Effective Date pursuant to ARTICLE 10.10; and

         (b)    the Purchaser shall have the right to continue to receive from
                the Supplier any essential Long Term or Sole Supplier SUMF Items
                for which the Purchaser cannot obtain a reasonable alternative
                source elsewhere.

10.12    Subject to ARTICLES 10.10 and 10.11 any termination of this Agreement,
         in whole or in part, including the termination of the supply of an
         individual SUMF Item and any reduction in the Purchaser's Firm Capacity
         Reservation for a SUMF Item, shall be final.

10.13    Termination of this Agreement under this ARTICLE 10 shall not affect
         the provisions of ARTICLES 6 (as to audit rights), 9, 10.7, 10.8, 10.9,
         10.10, 10.11, 10.12, 10.13, 10.14, 10.15, 10.16, 11, 12, 14, 17.4, 19,
         23, 25, 26, 27, 28 and 29 which shall continue in full force and
         effect.

10.14    Within 60 days after termination of this Agreement as to one or both
         Plants, the Supplier shall provide a final reconciliation of SUMF
         Charges. Any overcharges or undercharges shall be paid by the Party
         owing the same within twenty (20) days following the final
         reconciliation (after any required adjustments have been made). The
         final recalculation shall be broken down in such detail as the
         Purchaser may reasonably request and as the Supplier can reasonably
         provide. From the due date of the reconciliation payment, interest will
         accrue at the Default Rate. The Parties shall meet to resolve any
         dispute relating to the final reconciliation as expeditiously as
         possible in accordance with ARTICLE 19.

10.15    Termination of this Agreement as to one or both Plants and termination
         of the supply of any individual SUMF Item shall be without prejudice to
         the accrued rights and liabilities of the Parties at the time of such
         termination and all provisions of this Agreement necessary for the full
         enjoyment thereof shall survive termination for the period so
         necessary.

10.16    Notwithstanding the foregoing provisions of this ARTICLE 10, if there
         is a Dispute regarding the termination of this Agreement or a SUMF
         Item, no termination shall occur until sixty (60) days following
         resolution of the Dispute (i) under ARTICLE 19 or ARTICLE 7.2 (H), as
         applicable or (ii) by written agreement of the Parties; provided,
         however that

                                      27
<PAGE>

         the additional sixty (60) day period in this sentence shall be ten (10)
         days if the termination of this Agreement or a SUMF Item is by the
         Purchaser under ARTICLE 10.2(A) or ARTICLE 10.3(A) or (B) or is by the
         Supplier under ARTICLE 10.5(A), 10.5(B), 10.6(A) or 10.6(B).

ARTICLE 11: INTELLECTUAL PROPERTY RIGHTS

11.1     Neither this Agreement nor the performance by any of the Parties of its
         duties hereunder shall operate to convey, license or otherwise transfer
         from one Party to another any patent, know-how, trade secrets or other
         intellectual property rights.

11.2     The copyright and any other industrial property rights and property in
         any Confidential Record or other material supplied under this Agreement
         shall, in the absence of any express provision to the contrary thereon,
         remain with the disclosing Party.

ARTICLE 12: CONFIDENTIALITY

12.1     Subject to ARTICLE 12.2, each Party shall treat as strictly
         confidential (and shall not disclose) all information received or
         obtained as a result of entering into or performing this Agreement
         which relates to:

         (A)    the provisions of this Agreement;

         (B)    the negotiations relating to this Agreement;

         (C)    the performance of this Agreement;

         (D)    the other Party or any aspect of its business or operations; or

         (E)    the subject matter of this Agreement.

12.2     Either Party may disclose information which would otherwise be
         confidential if and to the extent:

         (A)    required by the law of any jurisdiction to which the disclosure
                is subject;

         (B)    required by any securities exchange or agency to which either
                Party is subject, wherever situated, whether or not the
                requirement has the force of law; provided that the disclosing
                Party requests in accordance with applicable rules confidential
                treatment of such information by any such securities exchange or
                agency to whom such information is required to be disclosed;

         (C)    disclosed on a strictly confidential basis to the professional
                advisers or auditors of the Party or to any actual or potential
                bankers or financiers of that Party;

         (D)    disclosed on a strictly confidential basis to an Affiliate or
                Affiliates;

                                      28
<PAGE>

         (E)    disclosed on a strictly confidential basis to bona fide
                potential or actual purchasers of a proprietary interest in or
                potential or actual operators of either the Plant or the Site;

         (F)    disclosed to the corporate shareholders or other equity owners
                of the Parties;

         (G)    that the information is lawfully known to the Party (without
                binder of secrecy) at the time of disclosure; or

         (H)    that the information has come into the public domain through no
                fault of that Party;

         (I)    that the other Party has given prior written approval to such
                disclosure; or

         (J)    disclosed to the extent necessary to seek enforcement of, or to
                defend, the contractual rights or obligations of a Party under
                this Agreement, any Transaction Documents, the IPTLA or other
                related agreements, or to satisfy an obligation or duty under
                this Agreement.

12.3     If the Purchaser should wish to disclose confidential information to a
         potential Third Party operator of the Plant, it shall first obtain the
         permission of the Supplier as to the information that can be disclosed,
         which permission shall not be unreasonably withheld.

12.4     The restrictions contained in ARTICLE 12.1 shall continue to apply for
         two (2) years (except for the restriction provided in ARTICLE 12.1 (D),
         which shall continue to apply for five (5) years) after (i) the
         termination of this Agreement or (ii) the termination of an individual
         SUMF Item; provided that the two year period shall not apply to
         disclosures of information relating to such SUMF Item made only to an
         alternative SUMF provider or potential alternative SUMF provider on a
         strictly "need to know basis".

                                      29
<PAGE>

ARTICLE 13: ADDITIONAL SUMF AND CAPITAL IMPROVEMENTS TO SUMF ASSETS

13.1     The Purchaser may submit from time to time to Supplier written requests
         for Supplier to undertake capital improvement projects relating to the
         supply of SUMF Items. Any such request shall specify in reasonable
         detail the capital improvements to be made, any permits that may be
         required, the estimated cost of such capital improvements, any proposed
         changes to this Agreement or any Schedule, and any other relevant
         information relating to such capital improvement project. Supplier
         agrees that it will consider in good faith any such request, but
         Supplier shall have no obligation to agree to undertake any such
         capital improvement project and may reject any request by Purchaser.
         Supplier shall provide Purchaser a written explanation for a rejection.
         If Supplier agrees to undertake any such capital improvement project,
         Purchaser shall be entitled to receive the additional capacity of a
         SUMF Item generated by such capital improvement and Purchaser shall be
         responsible for all costs associated with such project, without
         duplication of other amounts paid or payable by Purchaser under this
         Agreement including (a) the cost of completing the capital
         improvements, (b) Supplier's costs and expenses incurred in connection
         with such project, and (c) any increased costs of operation suffered by
         Supplier as a result of such project.

         Notwithstanding the foregoing, the Purchaser has the right, provided
         there is no unreasonable disruption to any other of the Supplier's
         operations, to obtain from other sources, including in-house production
         by the Purchaser, such new or additional requirements of the relevant
         SUMF Item as the requested project was to cover.

         Any reasonable costs incurred by the Supplier (not including any
         additional charge for services by persons whose services are included
         in SUMF Charges irrespective of the required evaluation) or affiliates
         of Supplier in evaluating a requested capital improvement project shall
         be reimbursed to the Supplier by the Purchaser; provided that when
         incurring such costs the Supplier has acted on a Commercially
         Reasonable basis.

13.2     If a capital improvement to a SUMF Asset is required by applicable law
         or HSE regulations solely because of the Purchaser's process, products
         or by-products, the costs directly related to such capital improvement
         shall be borne by the Purchaser.

13.3     If the Purchaser determines and notifies the Supplier, within the first
         twelve months following the Effective Date, that a service has
         historically been supplied by the Supplier but such service is not
         included in this Agreement, the Supplier shall make such service
         available to the Purchaser at a price and on terms mutually agreeable,
         but following the same concepts as to Direct Site Costs, Variable Costs
         and Infrastructure Charges as set forth herein.

                                      30
<PAGE>

ARTICLE 14: DAMAGE TO SUMF ASSETS

14.1     If SUMF Assets are damaged or destroyed, the owner of the SUMF Asset
         shall timely restore such asset as soon as is practical following the
         damage or destruction.

14.2     If the owner does not timely fulfill its obligation to restore the SUMF
         Asset, the other Party may at its discretion take such other reasonable
         measures as are necessary or useful to find an alternative source for
         any relevant SUMF Item or its equivalent for the benefit of all Users
         on a temporary basis until such restoration is complete.

14.3     The Party causing damage to a SUMF Asset as a result of its Gross
         Negligence or Wilful Misconduct shall assume liability for any
         incremental costs of such alternative SUMF Items so that the Users of
         such SUMF Items other than such Party or its Affiliates pay the same
         amount for such SUMF Items during such temporary period as such Users
         paid prior to the damage or destruction of the relevant SUMF Assets.

ARTICLE 15: METERING OF SUPPLY, CONSUMPTION AND DELIVERY

15.1     The quantities of certain SUMF Items supplied hereunder shall be
         measured by a Meter. The Meter shall be installed, owned and operated
         at the expense of the Party indicated in SCHEDULE 2 as the Meter owner.
         The Meter owner shall read the Meter on a regular basis as described in
         SCHEDULE 2 and shall promptly advise the other Party in writing of the
         reading. Such readings shall form the basis for preparing the
         Supplier's invoices pursuant to ARTICLES 5, 6 and 7.

15.2     The Parties acknowledge that the Meters are not normal custody transfer
         meters. The Meter owner shall, at its expense, perform normal
         maintenance procedures to maintain the accuracy of its Meters. Each
         Meter shall be tested for accuracy and calibrated regularly per
         industry standards as specified in SCHEDULE 2 by the Meter owner at its
         expense. The Meter owner shall give the other Party a written schedule
         of calibration test times, and the other Party shall have the right to
         have its representative present to observe each calibration test. If
         the other Party desires to conduct more frequent calibration tests,
         such Party may request that more frequent tests be conducted, in which
         case the Meter owner will perform or cause to be performed such tests
         at the other Party's expense.

15.3     Following any calibration test made pursuant to this ARTICLE 15, the
         Meter owner at its expense shall restore an inaccurate component to a
         condition of accuracy or replace such component as soon as reasonably
         practical. If the level of inaccuracy exceeds that specified in
         SCHEDULE 2, the readings affected by said component shall be corrected
         by the amount of the inaccuracy for the period which is definitely
         known to be affected by such inaccuracy. If the period is not
         definitely known and is not mutually agreed upon, the correction shall
         be made for a period one-half of the time elapsed between the last
         prior calibration test and the date the inaccuracy is corrected.
         Adjustments to a previously issued incorrect invoice shall be made
         promptly by the Supplier.

                                      31
<PAGE>

15.4     The Parties acknowledge that special metering problems may arise which
         can be resolved by procedures other than those described in this
         ARTICLE 15. The Parties may, by mutual consent, establish special
         procedures for a specific problem or accept delivery quantities in a
         manner not described herein. Mutual consent for acceptance of one
         special procedure or delivery quantity will not set aside the
         provisions of this ARTICLE 15, nor imply acceptance by either Party of
         any special provision at a future time.

15.5     Should the Supplier or the Purchaser fail to obtain suitable
         measurement results from the Meter, the quantities of SUMF provided
         during the period in question shall be calculated by the other Party in
         the event that the other Party has installed its own check meter and it
         has been calibrated according to this ARTICLE 15 within ninety (90)
         days of the period in question. In the event that neither Party has
         obtained suitable measurement results, the amount of the relevant SUMF
         Item supplied in the period in question shall be estimated, using the
         average of delivered quantities for a period of time agreed upon by
         both Parties, or by any other means mutually agreed upon by both
         Parties. If a Party installs a check meter, the other Party shall have
         the right to have its representative at any calibration test of the
         check meter. A Party installing a check meter shall perform all
         maintenance and calibration tests of the check meter at its own
         expense, and shall furnish the other Party with all readings obtained
         from the check meter.

15.6     The Parties shall complete promptly the identification of all receipt
         and Delivery Points for the various SUMF Items described in SCHEDULE 2
         and all drawings related thereto.

15.7     If there is no Meter at a Delivery Point the allocation method set out
         in SCHEDULE 6 shall be used. The Joint Operating Committee shall have
         the authority to update and/or correct any allocation method, with any
         updating and/or corrections being adjusted prospectively. Either Party
         may, at its own expense, install a Meter in lieu of allocation.

15.8     Methods for allocating line losses and differences resulting from
         measurement discrepancies shall be set out in SCHEDULE 2 and SCHEDULE
         3.

ARTICLE 16: JOINT OPERATING COMMITTEE

16.1     The Supplier and the Purchaser shall jointly establish the Joint
         Operating Committee to review the operation of this Agreement and the
         supply of SUMF hereunder in an effort to ensure the smooth and
         efficient operation of this Agreement. The structure and role of the
         Joint Operating Committee is set out in SCHEDULE 5.

16.2     Every two (2) years, or as often as either Party may reasonably
         require, the Joint Operating Committee will review the overall
         effectiveness of this Agreement and will discuss possible opportunities
         for improvement.

ARTICLE 17: MISCELLANEOUS

17.1     Both Parties shall perform their respective duties under this Agreement
         (i) following standards applied by the industry in similar operations
         and in keeping with good industry

                                      32
<PAGE>

         practice and in compliance with applicable law and (ii) in a manner
         each Party reasonably believes to be fair to the other Party.

17.2     The services under this Agreement shall be provided in accordance with
         Shell's HSE and Technical Standards.

17.3     The Parties will keep each other timely informed about planned
         turnarounds, shutdowns, major technical projects, capital expenditures
         and any other major events which in each case are relevant to the
         supply or cost of any SUMF Item and/or the operation of the Purchaser's
         Property. The Supplier shall take such Reasonable Actions within its
         control so as to minimise the impact to the Purchaser of any planned
         turnaround, shutdown, major technical project, capital expenditure and
         any other major event which may adversely impact the supply of any SUMF
         Item, without prejudice to health, safety and environmental standards.
         The Parties shall keep each other timely informed of any adjustments or
         changes to these plans.

17.4     Purchaser explicitly waives any rights to claim pursuant to this
         Agreement against Shell Nederland B.V. on the basis of the filing by
         Shell Nederland B.V. of a "verklaring van aansprakelijkheid" under
         Article 2:403 of the Dutch Civil Code.

ARTICLE 18: FORCE MAJEURE

18.1     A Party will not be in breach of this Agreement (except for breach of
         an obligation to pay money due and payable under this Agreement) to the
         extent:

         (A)    performance by the Party is delayed or prevented by Force
                Majeure;

         (B)    the Party claiming relief under this Article promptly notifies
                the other Party of the circumstances giving rise to Force
                Majeure and their anticipated duration; and

         (C)    the Party so claiming relief undertakes to take Reasonable
                Actions to remedy and overcome the cause of such Force Majeure
                as promptly as possible.

18.2     Upon remedying or overcoming the circumstances giving rise to Force
         Majeure, the Party claiming relief under this Article shall promptly
         notify the other Party of the termination of such Force Majeure
         condition.

18.3     If the Force Majeure in question prevails for a continuous period in
         excess of thirty (30) days after the date on which the Force Majeure
         begins, the Parties shall consult together with a view to determining
         mutually acceptable measures to overcome the difficulties arising
         therefrom.

18.4     "FORCE MAJEURE" means, in relation to either Party, an event, condition
         or circumstance beyond the reasonable control of that Party and without
         the fault or negligence of the Party claiming Force Majeure which
         causes a delay or disruption in the performance by such Party of any of
         its obligations under this Agreement including, without limitation:-

                                      33
<PAGE>

         (A)    fire, explosion or other disruption, mechanical breakdown,
                electrical shortage or blackout, decline or shortages of supply,
                and circumstances arising out of information technology not
                being millennium compliant; and

         (B)    lock-outs, strikes and other industrial disputes.

         For the avoidance of doubt, the settlement of a labour strike, lockout
         or any other kind of labour dispute is not within the reasonable
         control of the Party affected and the requirements of this Article
         shall not oblige that Party to settle a strike, lockout or other labour
         dispute on terms contrary to its wishes.

ARTICLE 19: DISPUTE RESOLUTION

19.1     Any Dispute arising out of or in connection with this Agreement,
         excluding Invoice Disputes subject to ARTICLE 7.2(H) shall be
         exclusively processed in accordance with this Article.

19.2     In the event of a Dispute, the Parties shall, within ten (10) days of a
         written request by either Party to the other Party, meet in good faith
         to resolve such dispute or differences.

19.3     Any Dispute which cannot be resolved by the Parties shall be submitted
         to the Joint Operating Committee which shall endeavour to amicably
         resolve the Dispute. The Parties shall provide the Joint Operating
         Committee with such information as it reasonably requires to enable it
         to determine the issues relevant to the Dispute.

19.4     Any Dispute which cannot be resolved by the Joint Operating Committee
         shall be submitted to the Steering Committee which shall endeavour to
         amicably resolve the Dispute. The Parties shall provide the Steering
         Committee with such information as it reasonably requires to enable it
         to determine the issues relevant to the Dispute.

19.5     Any Dispute which cannot be resolved by the Steering Committee shall be
         submitted to mediation before a mediator selected by the Steering
         Committee. The Parties shall bear their own costs for mediation and the
         costs of the mediator shall be borne equally. If the Parties are unable
         to select a mediator within fifteen (15) days or if the Dispute is not
         resolved as a result of the mediation within sixty (60) days (or such
         other period as may be agreed by the Parties), either Party may submit
         the matter to arbitration for final, binding and exclusive settlement
         by three arbitrators in accordance with the UNCITRAL Arbitration Rules,
         with the President of the ICC Court of International Arbitration to act
         as the appointing authority, or any other arbitration provided for in
         SCHEDULE 1, such arbitration to be held in the country where the Site
         is located at the place specified in SCHEDULE 1. Any arbitration
         decision pursuant to this ARTICLE 19 shall be final and binding upon
         the parties and judgment thereon may be entered in any court of
         competent jurisdiction. Costs incurred by the Parties in carrying on
         any arbitration proceeding hereunder (including reasonable attorneys'
         fees and arbitration fees) shall be determined by the arbitrator by
         reference to fault.

                                      34
<PAGE>

19.6     Pending resolution of any Dispute, the Supplier shall consult with the
         Purchaser with regard to any change to the specification of any SUMF
         Item with which the Dispute is connected.

19.7     Resolution of any Dispute between the Parties involving payment of
         money by one Party to the other shall include payment of interest at
         the Interest Rate.

19.8     Each Party shall, in addition to all rights provided herein or provided
         by law, be entitled to the remedies of specific performance and
         injunction to enforce its rights hereunder.

ARTICLE 20: FURTHER ASSURANCE

20.1     Each Party shall at its own cost, from time to time on request, do or
         procure the doing of all acts and execute or procure the execution of
         all documents in a form satisfactory to the other Party which the other
         Party may reasonably consider necessary for:

         (A)    giving full effect to this Agreement; and

         (B)    securing to the other Party the full benefit of the rights,
                powers and remedies conferred upon the other Party in this
                Agreement.

ARTICLE 21: COSTS AND EXPENSES

21.1     Save as otherwise stated in this Agreement, each Party shall pay its
         own costs and expenses in relation to the negotiation, execution and
         carrying into effect of this Agreement.

ARTICLE 22: ASSIGNMENT AND DELEGATION

22.1     The Purchaser shall be entitled to assign this Agreement, to any
         Affiliate or to a lender or lenders for security purposes so long as
         such lender is a bona fide financial institution with a business that
         includes lending money and has a net worth in excess of 100,000,000
         USD, without the prior written consent thereto of the Supplier (and
         such lender or lenders shall have the right (without such prior written
         consent) to further assign this Agreement in connection with the
         exercise of their rights and remedies pursuant to such security
         agreements). Purchaser shall provide Supplier notice of such assignment
         promptly after any such assignment, but in any event within sixty (60)
         days of such assignment. Except as provided above in this ARTICLE 22.1,
         any other assignment of the Agreement by the Purchaser to a Third
         Party, shall require the consent of the Supplier, such consent not to
         be unreasonably withheld or delayed.

22.2     The Supplier shall be entitled to assign this Agreement to any
         Affiliate or Third Party without the prior written consent thereto of
         the Purchaser.

                                      35
<PAGE>

22.3     Any assignment of this Agreement shall not relieve either Party of any
         obligation or liability incurred hereunder and remaining wholly or
         partially outstanding immediately prior to the time at which the
         assignment is to take effect.

22.4     Each Party agrees to execute and deliver to the other Party and, if
         applicable, its lenders, recognition and estoppel certificates, in form
         and content consistent with ordinary and common practice in
         transactions of the nature of this transaction, which instruments will
         state the status of this Agreement as to whether a default exists and
         will recognize any Third Party rights.

22.5     The Supplier may at its discretion procure from its Affiliates or any
         Third Party certain information, advice, services and SUMF Items which
         it is obliged to render or perform under this Agreement, or may
         delegate to any Affiliate or Third Party the performance of its rights
         and obligations under this Agreement, in order to assist the Supplier
         in the efficient execution of this Agreement provided that the person
         or company to whom delegation is made shall be capable of rendering the
         services.

ARTICLE 23: SEVERABILITY

23.1     If any of the provisions of this Agreement is or becomes illegal, void
         or unenforceable under the law of any jurisdiction, such provision
         shall be deemed to be deleted from this Agreement and the remaining
         provisions of this Agreement shall remain and continue in full force
         and effect. In such event, this Agreement shall be modified to provide
         the same benefits and burdens (including economic) that would have been
         provided had this provision been deleted. In the event that the Parties
         cannot agree on modifications, the Dispute shall be resolved pursuant
         to ARTICLE 19.

23.2     The invalidity of one or more provisions of this Agreement shall not
         affect:

         (A)    the legality, validity or enforceability in that jurisdiction of
                any other provision of this Agreement; or

         (B)    the legality, validity or enforceability under the law of any
                other jurisdiction of that or any other provision of this
                Agreement.

ARTICLE 24: NO AGENCY OR PARTNERSHIP

24.1     Nothing contained in this Agreement and no actions taken by the Parties
         under this Agreement shall constitute a partnership, joint venture,
         association or other co-operative entity between the Parties or to
         authorise either Party to represent the other or to contract on behalf
         of the other Party. The Supplier is acting solely as an independent
         contractor and is not an agent of the Purchaser. The Supplier's
         provision of services and performance of its duties hereunder shall be
         under the sole supervision, control and direction of the Supplier and
         not the Purchaser.

                                      36
<PAGE>

ARTICLE 25: REMEDIES AND WAIVER

25.1     The delay or failure of either Party at any time in exercising any
         right, power or remedy provided by law or under this agreement shall in
         no way:

         (A)    affect that right, power or remedy; or

         (B)    operate as a waiver of it.

25.2     The single or partial exercise of any right, power or remedy provided
         by law or under this Agreement shall not preclude any other or further
         exercise of it or the exercise of any other right, power or remedy.

25.3     The rights, powers and remedies provided in this Agreement are
         cumulative and not exclusive of any rights, powers and remedies
         provided by law.

25.4     The Parties acknowledge that each of them has had adequate opportunity
         and bargaining strength to review, negotiate and revise this Agreement
         to its satisfaction. They each expressly agree that the normal rule of
         construction to the effect that any ambiguities are to be resolved
         against the drafting Party shall not be employed in the interpretation
         of this Agreement.

ARTICLE 26: ENTIRE AGREEMENT AND VARIATION

26.1     This Agreement constitutes the entire and only agreement between the
         Parties relating to the furnishing of SUMF Items by the Supplier to or
         for the Purchaser at the Site and supersedes any Pre-contractual
         Statement.

26.2     Each of the Parties acknowledges on its own behalf and on behalf of
         each of its Affiliates that, in agreeing to enter into this Agreement,
         it has not relied on any Pre-contractual Statement or any statement
         contained in any Transaction Document or the IPTLA (except those set
         out in this Agreement).

26.3     Without limiting any rights under any of the Transaction Documents or
         the IPTLA, each Party waives all rights and remedies which, but for
         this Article, might otherwise be available to it in respect of any such
         Pre-contractual Statement, provided that nothing in this Article shall
         limit or exclude any liability for fraud.

26.4     Any amendment or modification of this Agreement shall be ineffective
         unless reduced to writing and signed by or on behalf of a duly
         authorised representative of each of the Parties.

ARTICLE 27: NOTICES

27.1     All notices, requests, waivers, demands, directions and other
         communications required or permitted to be given under this Agreement
         shall be in writing and in English. This

                                      37
<PAGE>

         provision shall not prevent communications relating to the operations
         of the Plant from being made in the language spoken in the jurisdiction
         in which the Plant is situated. Notices may be given in electronic form
         (including facsimile transmission and telex communications and e-mail)
         and shall be delivered personally, sent by facsimile transmission, or
         e-mail, sent by nationally recognized overnight courier or mailed by
         registered or certified mail (return receipt requested), postage
         prepaid, to the other Parties at their addresses set forth in the
         introductory paragraphs of this Agreement (or such other address for a
         Party as shall be specified by like notice from such Party to the other
         Party) and, in the case of the Purchaser with copies to:

               Shell Epoxy Resins, Inc.
               1600 Smith Street
               24th Floor
               Houston, Texas 77002
               Attention: President
               Telecopy: (713) 241-5333

               Apollo Management IV, L.P.
               1301 Avenue of the Americas
               New York, New York 10019
               Attention: Scott Kleinman
               Telecopy: (212) 515-3288

         All such notices and other communications shall be deemed to have been
         given and received, (i) in the case of personal delivery, delivery by
         facsimile transmission or e-mail, on the date of delivery, if delivered
         during business hours on a business day or, if not so delivered, the
         next succeeding business day (ii) in the case of delivery by nationally
         recognized overnight courier, on the second business day following
         dispatch and (iii) in the case of mailing, on the fifth business day
         following such mailing.

27.2     A Party may change its notice details on giving notice to the other
         Party of the change in accordance with this ARTICLE 27. That notice
         shall only be effective on the date falling three (3) clear Business
         Days after the notification has been received or such later date as may
         be specified in the notice. Any notice so delivered will comply with
         the terms of this ARTICLE 27.

ARTICLE 28: GOVERNING LAW

28.1     This Agreement shall be governed by and construed in accordance with
         the laws of England.

28.2     A person who is not a party to this Agreement has no right under the
         Contract (Rights of Third Parties) Act 1999 to enforce any term of this
         Agreement.

                                      38
<PAGE>

ARTICLE 29: LANGUAGE

29.1     If this Agreement is translated into any language other than the
         English language, the English version of this Agreement shall prevail.

ARTICLE 30: COUNTERPARTS

30.1     This Agreement may be executed in any number of counterparts, and by
         the Parties on separate counterparts, but shall not be effective until
         each Party has executed at least one counterpart.

30.2     Each counterpart shall constitute an original of this Agreement, but
         all the counterparts shall together constitute but one and the same
         instrument.

                          [INTENTIONALLY LEFT BLANK]

                                      39
<PAGE>

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
as of the day and year first above written.

Signed by: Illegible     )
                         )
For and on behalf of     )
SHELL EPOXY RESINS       )
NEDERLAND B.V.           )

Signed by: Illegible     )
                         )
For and on behalf of     )
SHELL NEDERLAND          )
CHEMIE B.V.              )<PAGE>

                                                                   Exhibit 10.23

                                   DEER PARK
                                 GROUND LEASE
                                      AND
                              GRANT OF EASEMENTS

                                    Between

                               SHELL OIL COMPANY

                                      and

                            SHELL EPOXY RESINS LLC

                         Dated as of November 1, 2000
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                         Page
                                                                         ----
<S>                                                                      <C>
ARTICLE 1  Lease; Term..................................................   1
ARTICLE 2  Rent.........................................................   3
ARTICLE 3  Impositions; Lessee's Cost; Net Lease........................   3
ARTICLE 4  Use of Land..................................................   6
ARTICLE 5  Hazardous Substances.........................................   9
ARTICLE 6  Compliance with Ordinances; Maintenance and Repair...........  12
ARTICLE 7  Insurance....................................................  13
ARTICLE 8  Liens........................................................  14
ARTICLE 9  Assignment and Subletting....................................  14
ARTICLE 10 Condemnation.................................................  18
ARTICLE 11 Damage and Restoration.......................................  19
ARTICLE 12 Construction, Changes and Alterations........................  19
ARTICLE 13 Indemnification..............................................  21
ARTICLE 14 Covenant Against Waste.......................................  23
ARTICLE 15 Inspection by Lessor.........................................  23
ARTICLE 16 Defaults.....................................................  23
ARTICLE 17 Arbitration..................................................  24
ARTICLE 18 Surrender of Improvements; Holding Over......................  25
ARTICLE 19 Quiet Enjoyment..............................................  27
ARTICLE 20 Excavations and Lateral Support..............................  27
ARTICLE 21 Easements....................................................  28
ARTICLE 22 Notices......................................................  30
ARTICLE 23 Miscellaneous................................................  32
EXHIBIT A  LAND
EXHIBIT A-1  SITE PLAN
EXHIBIT B  LESSOR'S ADJOINING PROPERTY
EXHIBIT C  COMMON AREAS AND DRIVEWAYS
EXHIBIT D  MEMORANDUM OF LEASE WITH RESERVATION AND GRANT OF EASEMENTS
AND DECLARATION OF SEPARATE OWNERSHIP OF IMPROVEMENTS

</TABLE>
<PAGE>

                            DEER PARK GROUND LEASE
                            AND GRANT OF EASEMENTS

     THIS DEER PARK GROUND LEASE AND GRANT OF EASEMENTS (this "Lease") is dated
as of November 1, 2000 (the "Effective Date"), and made between SHELL OIL
COMPANY, a Delaware corporation, acting through Shell Chemical Company, a
Delaware corporation, on its own behalf and as authorized agent of Shell Oil
Company pursuant to the Chemical Authorization Agreement dated March 1, 1995
("Lessor"), and SHELL EPOXY RESINS LLC, a Delaware limited liability company
("Lessee").

                                   RECITALS:

     A.   Lessor is the owner of the surface of that certain land located in
Deer Park, Harris County, Texas, more particularly described in Exhibit A
                                                                ---------
attached hereto and shown on Exhibit A-1 attached hereto (such land alone,
                             -----------
without the buildings and improvements located thereon, is hereinafter referred
to as the "Land").

     B.   Lessor, prior to the execution hereof, has transferred, assigned and
conveyed to Lessee, among other things, certain assets, equipment and
improvements located on the Land (hereinafter all of the assets, equipment and
improvements now or hereafter located on the Land and owned by Lessee are
collectively referred to as the "Improvements", and the Land, together with the
Improvements, are collectively referred to as the "Property"). Lessor heretofore
leased the Land to Lessee by Ground Lease dated August 1, 1999 (the "Original
Lease").

     C.   Lessor and Lessee have entered into a First Amended and Restated
Services, Utilities, Materials and Facilities Agreement (the "SUMF Agreement"),
pursuant to which Lessor will provide certain services, utilities, materials and
facilities to Lessee in connection with the Property.

     D.   Lessor and Lessee desire to terminate the Original Lease and enter
into this Ground Lease, on the terms and conditions hereinafter set forth.

     NOW THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which have hereby acknowledged,
Lessor and Lessee hereby agree as follows:

                                   ARTICLE 1

                                  Lease; Term

     1.1  Lessor, in consideration of the rent to be paid and the terms,
covenants and conditions to be performed and observed by Lessee as herein
provided, does hereby demise and lease unto Lessee, and Lessee does hereby take
and lease from Lessor, the Land and Lessor hereby grants and conveys to Lessee
for the term of this Lease, and reserves unto itself perpetually, the easements
described in Article 21 hereof.

     TO HAVE AND TO HOLD unto Lessee for and during the term set forth herein.

     1.2  Lessor does not demise to Lessee any space under, on or above the
streets, alleys, sidewalks and other public areas adjoining the Land (herein
collectively called the "Environs"); the Land does not include any portion of
the Environs, but Lessor herein grants and conveys to Lessee, during the term of
this Lease and subject to all the provisions hereof, certain easements to said
Environs as Lessor now or hereafter may own.
<PAGE>

Resins Ground Lease

     1.3  This Lease contains no warranties of title or warranties with respect
to the physical or environmental condition of the Land. EXCEPT AS OTHERWISE
PROVIDED IN ANY OF THE TRANSACTION DOCUMENTS, THE LAND IS LEASED IN ITS AS IS
CONDITION, WITH ALL FAULTS AND WITHOUT WARRANTY EXPRESSED OR IMPLIED AS TO
HABITABILITY, CONDITION, ENVIRONMENTAL CONDITION, MERCHANTABILITY OR FITNESS FOR
A PARTICULAR USE OR PURPOSE; AND LESSEE ASSUMES THE CONDITION OF THE LAND,
INCLUDING THE ENVIRONMENTAL CONDITION OF THE LAND, AND AGREES THAT LESSOR SHALL
HAVE NO LIABILITY TO LESSEE AS A RESULT OF ANY CONDITION THAT MIGHT EXIST ON THE
LAND, EXCEPT AS EXPRESSLY SET FORTH IN THIS LEASE AND THAT CERTAIN MASTER SALES
AGREEMENT BY AND AMONG SHELL OIL COMPANY AS SELLER, RESIN ACQUISITION LLC, AS
BUYER AND SHELL EPOXY RESINS INC. DATED AS OF JULY 10, 2000 (THE "MSA") AND ALL
DOCUMENTS EXECUTED IN CONNECTION THEREWITH INCLUDING WITHOUT LIMITATION, THE
ENVIRONMENTAL AGREEMENT AND THE INTELLECTUAL PROPERTY TRANSFER AND LICENSE
AGREEMENT (EACH AS DEFINED IN THE MSA AND THE SUMF AGREEMENT, THE MSA AND SUCH
DOCUMENTS ARE COLLECTIVELY CALLED THE "TRANSACTION DOCUMENTS").

     1.4  This Lease and the rights of Lessee hereunder are subject and
subordinate to all restrictions, reservations, easements, rights-of-way,
conditions and encumbrances of record on the date of this Lease in Harris
County, Texas, any and all unrecorded railroad easements or crossing agreements
or such matters that may be visible or evidenced on the ground as shown by a
survey of the Land by Rekha Engineering, Inc. (Network Project No. 20000517/4,
Sheet 5 of 5), dated October 6, 2000, revised October 9, 2000.

     1.5  The term of this Lease shall commence as of the Effective Date (the
"Commencement Date") and expire on the twentieth (20th) annual anniversary date
of the Effective Date (as that term is defined in the MSA), subject to the
option rights set forth in Section 1.6 below.

     1.6  Provided that Lessee is not then in default under this Lease beyond
any and all applicable notice and cure periods, if any, Lessee shall have the
option to renew and extend this Lease with respect to all (but not less than
all) of the Land for three (3) renewal terms of five (5) years each (hereinafter
a "renewal term" or the "renewal terms"). Each renewal term, if any, shall
commence upon the expiration of the immediately preceding term of this Lease.
Lessee may exercise each option by giving Lessor written notice at least one (1)
year prior to the expiration of the immediately preceding term of this Lease. In
the event of such a renewal, the term of this Lease shall include such renewal
term, and such renewal shall be upon the same terms and conditions as set forth
in this Lease. In addition, during such renewal terms, Lessee shall pay all
Additional Rent and other amounts due Lessor under the Lease, and Lessee shall
have no further options to renew this Lease. The parties intend that so long as
the SUMF Agreement remains in effect, this Lease shall remain in effect.
Accordingly, notwithstanding the foregoing, if the term of the SUMF Agreement is
renewed, then the term of this Lease shall automatically and without further
action, be deemed renewed to be coterminus with the SUMF Agreement, provided,
however, upon default by Lessee under this Lease, Lessor shall continue to have
the rights and remedies herein set forth including termination of this Lease
even if the SUMF Agreement is not terminated. This Lease may remain in effect
after the termination of the SUMF Agreement.
<PAGE>

Resins Ground Lease

                                   ARTICLE 2

                                     Rent

     2.1  Lessee shall pay to Lessor as annual rent ("Basic Rent") for the Land
the sum of one dollar ($1.00), increased by $1.00 per year thereafter, payable
in advance (i) on the Commencement Date, and (ii) on the last day of the month
immediately preceding the Second Lease Year and each subsequent Lease Year.

     For purposes hereof, the First Lease Year means that period beginning on
the Commencement Date and ending, if the Commencement Date is the first day of a
calendar month, on the day immediately preceding the first annual anniversary of
the Commencement Date, or if the Commencement Date is other than the first day
of a calendar month, on the last day of the calendar month in which the first
anniversary of the Commencement Date shall occur. Each subsequent Lease Year
shall commence on the day immediately following the expiration of the prior
Lease Year and shall expire on the first anniversary of the expiration of such
prior Lease Year, except for the final Lease Year which, as aforesaid, will
expire on the twentieth (20th) annual anniversary date of the Effective Date,
subject to the option rights set forth in Article I above.

     2.2  Lessee shall also pay to Lessor all amounts designated as Additional
Rent in this Lease.

     2.3  All Basic Rent, Additional Rent and other sums due Lessor hereunder
(collectively, "Rent") shall be paid in lawful money of the United States of
America at such place as Lessor previously may have designated in a notice to
Lessee, and in the absence of such designation shall be paid to Lessor at the
address set forth in Article 22 hereof.

     2.4  All Rent payable under this Lease shall be paid to Lessor without
abatement, deduction, or setoff (except as otherwise specifically provided in
this Lease or as required by Applicable Law).

                                   ARTICLE 3

                     Impositions; Lessee's Cost; Net Lease

     3.1  (a)  Lessee will pay to Lessor within thirty (30) days after written
request by Lessor, from time to time, as Additional Rent, an amount equal to all
taxes, assessments, use and occupancy taxes, water and sewer charges, rates and
rents, charges for public utilities, excises, levies, license and permit fees,
and other charges of any kind and nature whatsoever, general and special,
ordinary and extraordinary, foreseen and unforeseen, by any public, governmental
or quasi-governmental authority, which are allocable by Lessor to the Land,
including but not limited to assessments for public improvements or benefits,
which at any time (whether during, prior or subsequent to the term of this
Lease) are assessed, levied, imposed or become a lien upon the Land or any part
thereof and which are paid or incurred by or on behalf of Lessor at any time
during any calendar year containing any portion of the term of this Lease,
together with any accrued interest on the unpaid balance of any of the foregoing
which Lessor elects to pay in installments (all of which taxes, assessments, and
other governmental charges, and such interest on installments, are herein
referred to as "Impositions") so long as Lessee has consented to the payment of
the Imposition in Installments. Lessor shall have no obligation with regard to
the Impositions. Taxes on the Land shall be allocated based on relative square
footage, and taxes on the Improvements shall be allocated as set forth in
paragraph 6 of the Tax Agreement dated as of the Effective Date among Shell Oil
Company, Shell Epoxy Resins, Inc. and Resin Acquisitions LLC,

                                       3
<PAGE>

Resins Ground Lease

attached as an exhibit to the MSA.

     (b)  Any Imposition which becomes due and payable during a calendar year, a
part of which period is included within the term of this Lease, and a part of
which is included in a period before or after the commencement or termination of
the term of this Lease, shall (whether or not, during the term of this Lease,
such Imposition shall be assessed, levied, imposed or become a lien upon the
Property or any part thereof) be adjusted as between Lessor and Lessee as of the
commencement or termination of the term of this Lease, as the case may be, so
that Lessor shall pay that proportion of such Imposition which that part of such
calendar year not included within the term of this Lease bears to such fiscal
period, and Lessee shall pay the remainder thereof. The obligations of Lessor
and Lessee under this Section will survive expiration or termination of the term
of this Lease.

     (c)  With respect to any Imposition for public improvements or benefits
which Lessor elects to pay in installments which election shall be subject to
Lessee's prior written consent, Lessee must pay as Additional Rent those
installments which become due and payable during the term of this Lease,
together with any accrued interest on the unpaid balance of the amounts owed,
and Lessor will pay the balance of such installments and interest.

     (d)  "Impositions" do not include any franchise, estate, inheritance,
succession, capital levy or transfer tax of Lessor, or any net income, excess
profits or revenue tax or any other tax, assessments, charge or levy upon the
Rent payable by Lessee under this Lease, except any such tax which is, in whole
or in part, in substitution for (or when and after imposed tax results in the
elimination of) any other Imposition. If any such substitute Imposition is
imposed on a graduated scale, "Impositions" will include the portion of such
substitute Imposition that would be payable if the Rent payable under this Lease
were the only income of Lessor subject thereto and the Land and Lessor's
interest under this Lease were the only property of Lessor subject thereto.

     3.2  Lessee shall have the right to contest the amount or validity of any
Imposition by appropriate legal proceedings, but this shall not be deemed or
construed in any way as relieving, modifying or extending Lessee's obligation to
pay any Imposition at the time and in the manner in this Article provided,
unless (a) the legal proceedings shall operate to prevent (i) the sale of the
Land or any part thereof and (ii) the placing of any lien thereon to satisfy
such Imposition prior to the final determination of such proceedings, or (b)
Lessee has provided Lessor with such security protecting Lessor from sale of the
Land as Lessor shall require in its reasonable discretion. Lessor shall not be
required to join in any such proceeding unless it shall be necessary for it to
do so in order to properly prosecute such proceeding, Lessee hereby indemnifies
Lessor, and Lessor shall have been fully indemnified to its satisfaction against
all costs and expenses in connection therewith, nor shall Lessor be subjected to
any liability for the payment of any costs or expenses in connection with any
proceeding brought by Lessee, and Lessee shall indemnify and save harmless
Lessor from any such costs or expenses.

     3.3  Subject to the provisions in Section 3.2, Lessee shall timely pay to
the appropriate governmental entity(ies) all Impositions allocable to the
Improvements and Lessee's personal property and trade fixtures during the term
of this Lease.

     3.4  Lessee shall at its sole cost and expense procure any and all
necessary permits, licenses or other authorizations required for the lawful and
proper installation and maintenance upon the Property of wires, pipes, conduits,
tubes and other equipment and appliances for use in supplying any such service
or utility to Lessee in and upon the Property. Further, Lessee shall pay all
charges for gas, electricity, light, heat, air conditioning, power, telephone
and other communication services, and all other utilities

                                       4
<PAGE>

Resins Ground Lease

and similar services rendered or supplied to the Property, and all water rents,
sewer service charges, or other similar charges levied or charged against, or in
connection with, the Property.

     3.5  Lessee shall pay to Lessor, as Additional Rent, $60,000 per year
("Lessee's Cost") which is hereby deemed to be Lessee's share of the maintenance
and repair of, and ad valorem taxes and other impositions attributable to
Lessor's Adjoining Property on which Lessee has certain rights pursuant to
Sections 21.2, 21.3, 21.4, 21.5 and 21.6 of this Lease. Lessee's Cost has been
established based upon estimates of actual costs and expenses to which both
Parties have agreed. Neither Lessor nor Lessee shall have the right to contest
the amount of Lessee's Cost. Lessee agrees that Lessee's Cost shall be adjusted
annually by the Inflation Rate effective April 1 of each year.

     (a)  As used here, "Inflation Rate" shall for a given yearly period equal
the following fraction (rounded to the fourth decimal place): (x) the numerator
shall equal the average Published Inflation Index for the calendar year
preceding the commencement of such yearly period, and (y) the denominator shall
equal the average Published Inflation Index of the calendar year preceding that
for the numerator described above (e.g., for a yearly period commencing April 1,
1999, the numerator would have equaled 389.5 (the average Published Inflation
Index for 1998).

     (b)  As used herein, "Published Inflation Index" for a given calendar year
shall equal the index in the "Chemical Engineering Plant Cost Index" for that
calendar year as published in the Chemical Engineering Magazine. If the
Published Inflation Index is discontinued, the Parties shall adopt by mutual
agreement a replacement index that most closely measures the price changes
measured by the original Published Inflation Index that is discontinued. If the
basis of reporting of the Published Inflation Index is changed from the basis in
effect on the date hereof, then the Published Inflation Index shall be
correspondingly changed.

     (c)  In addition to the Basic Rent, Lessee shall pay in advance on the
Commencement Date and on the first day of each and every month thereafter during
the Term against receipt of bills therefor, installments equal to one-twelfth
(1/12) of Lessee's Cost due for each calendar year of the Term.

     (d)  Any Lessee's Cost which becomes due and payable during a calendar
year, a part of which year is included within the term of this Lease, and a part
of which is included in a period before or after the commencement or termination
of the term of this Lease, shall be equitably adjusted as between Lessor and
Lessee.

     3.6  Notwithstanding any other provision of this Lease, in order to avoid
duplication, Lessee's Costs, Impositions and all other amounts payable by Lessee
under this Lease shall not duplicate amounts payable by Lessor under the SUMF
Agreement or any other Transaction Document.

     3.7  Lessor shall not be required to make any expenditure, incur any
obligation, or incur any liability of any kind whatsoever in connection with
this Lease, the Land, or the ownership, construction, maintenance, operation, or
repair of the Improvements. It is expressly understood and agreed that, except
as herein otherwise expressly provided, this is a completely net lease intended
to assure Lessor the rentals herein reserved on an absolute basis. Under no
circumstances or conditions, whether now existing or hereafter arising, or
whether or not beyond the present contemplation of the parties, shall Lessor be
expected or required to make any payment of any kind whatsoever in connection
with this Lease, the Land, or the ownership, construction, maintenance,
operation, or repair of the Improvements. The provisions of this Section 3.7 are
subject to the provisions of the Transaction Documents which may obligate Lessor
to make expenditures or incur obligations or liabilities in connection with the
Land or Improvements.

                                       5
<PAGE>

Resins Ground Lease

                                   ARTICLE 4

                                  Use of Land

     Lessee may only use and occupy the Land for the purpose of maintaining,
operating, repairing, replacing or expanding the Improvements for producing
resins, versatics and other products in the Resins/Derivatives Field, and for no
other purpose; provided however, certain construction may be conducted if and as
permitted pursuant to Article 12, so long as the construction is of Improvements
for producing resins, versatics and other products in the Resins/Derivatives
Field, and for no other purpose. For purposes of this paragraph, Resins shall
mean:

     (a)  mono- or polyglycidyl ethers or esters having an epoxide content from
10 to 9000 mmol/kg and prepared from compounds bearing one or more optionally
substituted or hydrogenated phenolic hydroxyl groups or aliphatic or
cycloaliphatic mono- or polyalcohol or mono-or polycarboxylic acid, and
epihalohydrin in the presence of an acid or a base catalyst, or from
(bis)carbonate ester precursors or di-alpha glycol compound precursors; adducts
and derivatives of such polyglycidyl ethers or esters; epoxidized vegetable oils
prepared by peracid epoxidation; naturally occurring epoxidized oils; and
epoxidized bis allylether of bisphenol acetone prepared by epoxidation via
either peracid epoxidation or reaction with hydrogen peroxide.

     (b)  aqueous stabilized dispersions of any of mono- or polyglycidyl ethers
and esters, adducts and derivatives thereof, liquid or semi-solid polyester
oligomer, acrylics, polyurethanes, glycidated polyols and halogenated polyol
adducts;

     (c)  epihalohydrin; allylhalide; inorganic byproducts of the reaction of
propene and halogens, including halogenated mineral acids and calcium halides;
and the direct organic byproducts of the reaction of propene and halogens;

     (d)  polyphenolic compounds, halogenated or hydrogenated derivatives
thereof and alkyl-substituted polyphenolic compounds, derived from mono- and
polynucleic phenols (or mono- or polynucleic alkyl-substituted phenols) and/or
ketones, aldehydes, dicarbonyls or compounds containing two or more double or
triple bonds;

     (e)  alpha-, alpha-branched tertiary mono- and poly-carboxylic acids having
from 5 to 19 carbon atoms, prepared from CO, water and alkene, or CO and an
alkanol; the glycidyl ester and vinyl ester derivatives respectively of said
alpha-, alpha- branched tertiary mono- and poly-carboxylic acids, prepared from
said acids with epihalohydrin in the presence of a base catalyst, or from said
acids and acetylene in the presence of a catalyst; and the derivatives of said
alpha-, alpha-branched tertiary mono- and poly-carboxylic acids prepared via
modification of their acid function;

     (f)  polyesters prepared from a mono-, a di- and/or a tri-functional
aliphatic, ethylenically unsaturated or cycloaliphatic carboxylic acid or
anhydrides thereof, optionally mixed with a mono-, di- and/or tri-functional
aromatic carboxylic acid or anhydrides thereof, and mono-, di-, tri- and/or
tetra functional alcohol, and optionally a hydroxy-acid and/or a dihydroxy-acid,
said polyester containing as functional groups mainly secondary and/or tertiary
carboxylic groups or primary and/or secondary alcohols in pendant and/or
terminal position, and the corresponding polyglycidyl esters or epoxidized
esters thereof, and having a number average molecular weight of up to 10,000
g/mol;

                                       6
<PAGE>

Resins Ground Lease

     (g)  amine, acid (including acid anhydride) and/or phenol based curing
agents for epoxy resins, which are compounds having two or more amine, acid
and/or phenolic functionalities per molecule and which may be optionally end-
capped or adducted or blended with acids, substituted phenols, epoxies,
aldehydes, tertiary amines and/or phenols, andimidizoles, and aqueous stabilized
dispersions of such amine, acid and/or imidazoles; excluding (i) any compounds
derived from optionally hydrogenated polymers of one or more of isoprene,
butadiene and styrene, having a total (or, in the case of radial or star
polymers, arm) number average molecular weight between 1000 and 35,000, as
determined by gel permeation chromatography using polystyrene calibration
standards, and (ii) alternating polymers of CO and olefinic monomers;

     (h)  polyarnides having two or more amine groups produced by condensation
of one or more mono- and/or polyfunctional acids or anhydrides thereof with a
polyamine, which polyamides have a number average molecular weight of up to
10,000 g/mol;

     (i)  mono- or polyfunctional amines containing glycidyl groups substituted
on nitrogen;

     (j)  blends of the polyglycidyl ether products of part (a) of this
definition of Resins or the polyamide products of part (g) with acrylates,
methacrylates, polyacrylates and/or styrene;

     (k)  organic compounds containing two or more cyanate (-O-C=N) groups
within each molecule, linked to an aliphatic or aromatic structure containing
more than 2 but not more than 200 carbon atoms, derived from polyphenolic
compounds and cyanogen halides;

     (l)  compounds containing at least two acetylenic (-C=C-) groups per
molecule and containing at least 10 but not more than 200 carbon atoms per
molecule, derived from polyphenolic compounds and propargyl halides;

     (m)  dimers of an optionally halogenated cyclobutene compound having up to
thirty (30) carbon atoms, in which the cyclobutene compound is fused with an
aromatic or cycloaliphatic ring, which dimers are linked through at least one
divalent linking group; esters or ethers of the reaction products of such an
optionally halogenated cyclobutene compound with a product as described in parts
(a) or (d) of this Resins definition; and copolymer of one or more of such
optionally halogenated cyclobutene compounds and one or more aryl compounds;

     (n)  [intentionally left blank]

     (o)  at least partly furanised linear CO/olefin polymer, as such or in
combination with a maleimide crosslinking agent, in which furanised CO/olefin
polymer monomer units originating from CO alternate with olefinic monomer units,
for making or for use as a cross-linked resin which is thermo-reversible at a
temperature above 50C, manufactured by furanising a low molecular weight
polyketone, as described in part (p) below; and

     (p)  low molecular weight polyketone, which is a linear CO/olefin polymer
in which monomer units originating from CO alternate with olefinic monomer
units, said polymer being amorphous, having a crystalline melting point of less
than 150C, and having a limiting viscosity number of less than 0.6 dl/g,
measured in m-cresol at 60C.

"Resins/Derivatives Field" means the manufacture, use or sale of Resins,
including research and development in support thereof, provided, however, in
respect of any and all Resins, Resins/Derivatives Field excludes:

                                       7
<PAGE>

Resins Ground Lease

     (a)  use and/or sale of the Resins of part (g) of the Resins definition for
any purpose other than as curing agents;

     (b)  use and/or sale of Resins of part (p) of the Resins definition for any
purpose other than Conventional Resins Applications;

     (c)  manufacture of Resins of part (p) of the Resins definition for all
purposes other than as an intermediates in the preparation of Resins of part (o)
of that definition; and

     (d)  combining any of the vinyl esters of part (e) of the definition of
Resins with a silicate in a composition intended for use as binder for polymer
particles containing at least ninety percent (90%) by weight, based on weight of
the particles, of a polymer containing at least 90% by weight of polymerised
styrene, and to sell and use such combinations (and to conduct research and
development in support thereof); and

     (e)  manufacture, use and/or sale of (and research and development in
support thereof for) any of the following:

          (1)  additive components alone or in combination ("Additives")
     intended for use in any one or more of the following applications:

               (i)     formulating finished lubricants or lubricant additive
          packages of any kind;

               (ii)    formulating finished fuels or fuel additive packages of
          any kind;

               (iii)   formulating hydraulic fluids;

               (iv)    formulating power transmission fluids;

               (v)     dewaxing lube oil;

               (vi)    transporting crude oil; and

          (2)  intermediates ultimately intended for use in manufacturing
     Additives for use in any one or more of the applications specified in part
     (e)(1) above.

     This Resins/Derivatives Field further encompasses

          (1)  upgrading the organic byproducts in part (c) of the Resins
     definition, and

          (2)  selling products resulting from (1) above other than as Additives
     or as intermediates ultimately intended for use in manufacturing Additives.

     Lessor reserves the right to restrict and deny access to the Land to
persons or entities that Lessor, in its sole discretion and in accordance with
its security policies, deems to be disruptive, dangerous or who in any manner
may jeopardize the health, safety or environment of the Land, Lessor's Adjoining
Property (as defined herein), the entire complex of which the leased premises is
a part or anyone working thereon or therein. By way of example, but not by way
of limitation, any person who is perceived to be

                                       8
<PAGE>

Resins Ground Lease

under the influence of a mind altering substance, who is or has been engaged in
fights or other disruptive behavior, or who refuses to comply with the rules as
promulgated by the security service, may be banned.

                                   ARTICLE 5

                             Hazardous Substances

     5.1  (a) Lessee shall comply in all material respects with any
Environmental Laws (as that term is defined in the SUMF Agreement). If any new
chemicals are introduced by Lessee to its operations on the Land, Lessee shall
notify the Lessor of such new chemicals. For purposes of this notice, chemicals
include, but is not limited to, any process materials, any new chemicals
introduced into the cooling water systems, and any new waste material, etc.
Notification must be made 90 days in advance or as soon as practicable. Lessee
shall provide Lessor with a copy of the material safety data sheets for any
chemical substances that Lessee brings onto the Premises.

     (b)  Lessee, its successors and assigns, shall not conduct any soils,
groundwater or other environmental testing on, at, or within the Land without
prior consultation with and the approval of Lessor such approval not to be
unreasonably withheld. If any such soils, groundwater or other environmental
testing is mandated by law, Lessee shall provide Lessor with prompt notice of
such requirement and Lessor shall have the right, initially at its expense
unless the Parties agree otherwise, but without Lessor accepting responsibility
for any related claim and subject to a reimbursement right against Lessee if and
to the extent that Lessee has ultimate responsibility for any related claim, to
contest such governmental requirement and/or to perform the required testing and
any necessary reporting following the completion of such testing.

     (c)  Lessor shall indemnify, defend, save and hold harmless Lessee from and
against all Environmental Damages imposed upon or incurred by Lessee resulting
from any: (i) violation of Environmental Law by Lessor on Lessor's Adjoining
Property during the term of this Lease; or (ii) Release (as defined in the
Environmental Agreement) from Lessor's Adjoining Property to the Property during
the term of this Lease.

     (d)  Lessee shall indemnify, defend, save and hold harmless Lessor from and
against all Environmental Damages imposed upon or incurred by Lessor resulting
from any: (i) violation of Environmental Law by Lessee; or (ii) Release of a
Hazardous Substance (as defined in the Environmental Agreement) by Lessee at the
Property during the term of this Lease.

     5.2  Lessee hereby covenants and agrees that the following provisions shall
be applicable at all times during the term of this Lease:

     (a)  Generation; Release; Storage on the Property.  Lessee shall not permit
          --------------------------------------------
Hazardous Substances to be generated, released, stored, handled, buried,
disposed of or deposited over, beneath, in, on or about the Property during the
term of this Lease, except that Lessee may generate, store and use on the
Property Hazardous Substances used in connection with the operation of its
business on the Property, provided such storage, use, handling and
transportation of such Hazardous Substances, and the treatment or disposal
thereof, shall at all times be in compliance in all material respects with all
applicable federal, state or local statutes, laws, ordinances, codes, rules,
regulations, orders or decrees relating thereto.

                                       9
<PAGE>

Resins Ground Lease

     (b)  Generation; Release; Storage on Adjacent Property.  Except as provided
          -------------------------------------------------
in any of the Transaction Documents, Lessee shall not generate, store, bury,
dispose of or deposit any Hazardous Substances over, beneath, in or on any real
estate adjacent to the Property or in any structure located thereon.

     (c)  Records.  Lessee shall keep and maintain at the Property detailed
          -------
environmental, health and safety records of the Property and Lessee's operations
to the extent required by any applicable Environmental Laws.

     (d)  Notice of Releases, Governmental Action, Hazardous Substances Claims
          --------------------------------------------------------------------
and Environmental Condition.  Lessee will advise Lessor in writing of the
---------------------------
following matters: (i) each release or spill of any Hazardous Substances on,
within, under, over or about the Property promptly after Lessee acquires
knowledge of the occurrence, (ii) any and all enforcement, cleanup, removal or
other governmental or regulatory actions instituted, completed or threatened in
writing against Lessee or the Property promptly after Lessee acquires knowledge
thereof, (iii) any and all claims made or threatened by any third party against
Lessee or the Property relating to any claim, liability, cause of action,
nuisance, fine, penalty, charge, administrative or judicial order or proceeding,
judgment, medical action or cleanup requirements, enforcement, damage,
contribution, cost recovery, compensation, loss or injury resulting from any
Hazardous Substances on, under or about the Property, promptly after Lessee
acquires knowledge of such claim or threat (the matters set forth in this
Section 5.2(d)(iii) being referred to as "Hazardous Substances Claims"), and
(iv) the results of any inspections or audits (whether performed internally or
by any independent firm) of the Land and/or the Improvements and the operations
thereat, where there is evidence or a finding that Hazardous Substances or
petroleum may have impacted soil or groundwater at the Land. Lessee will
promptly send to Lessor a true, correct and complete copy of all documentation
evidencing the matter set forth in this Section 5.2(d), including but not
limited to all correspondence sent or received by Lessee to or from any
environmental authority or agency.

     (e)  Remedial Action.  Lessee will not, without Lessor's prior written
          ---------------
consent (which consent shall not be unreasonably withheld), take any remedial
action (except minor cleanup not involving any governmental agency and except
for any reasonable action taken in response to any emergency situation) in
response to the presence of any Hazardous Substances on, under or about the
Property ("Remedial Action"), nor shall Lessee enter into any settlement
agreement, consent decree, or other compromise in respect of any Hazardous
Substances Claims; provided, however, that if and to the extent that any
                   --------  -------
Remedial Action is required by applicable law, then (i) Lessee shall promptly
(but in any events before commencing such Remedial Action, if reasonably
practicable) deliver to Lessor, for Lessor's review and approval, a written plan
setting forth the proposed Remedial Action, (ii) Lessee will give Lessor a
reasonable opportunity to comment on and make reasonable modifications to such
plan, (iii) Lessor will promptly review each plan of remediation submitted by
Lessee and all modifications submitted by Lessee, (iv) Lessor may not reject any
such plan entirely, but may reasonably comment on and require reasonable
modifications to such plan, and Lessor's approval of such plan will not be
unreasonably withheld or delayed; without limiting the foregoing, no
modification will be deemed reasonable if it violates applicable law or if it
would cause such plan to fail to include actions, methods or procedures required
by law, (v) Lessee will perform such Remedial Action only in accordance with the
plan approved by Lessor in writing, and any changes approved by Lessor in
writing, subject to any superseding order or directive by any governmental
agency having jurisdiction.

     (f)  Access by Lessor.  Lessee will permit Lessor to have reasonable access
          ----------------
to the Property to enable Lessor to perform any environmental investigation or
remediation referred to in the third paragraph of this Section 5.2(f). (The
foregoing shall not require Lessor to perform remediation which is the
obligation of Lessee pursuant to specific provisions of this Lease or applicable
law.) Lessor

                                      10
<PAGE>

Resins Ground Lease

will use reasonable efforts not to unreasonably disrupt or interfere with the
conduct of Lessee's business, and such access and the performance of any such
investigation or remediation shall not cause Basic Rent or any other Rent to
abate, and shall not constitute constructive eviction.

     Lessee shall reasonably cooperate with Lessor in connection with any such
investigation or remediation, including, without limitation (but subject to
applicable law and without imposing any obligation on Lessor to become a utility
or subject to the laws generally governing public utilities), permitting Lessor
to use Lessee's electrical, gas, water, heat, light, power, telephone and other
utility connections as Lessor may reasonably deem necessary.

     Lessor, in its sole but reasonable discretion, may require that a soil and
groundwater assessment be made by an independent environmental engineering firm
reasonably acceptable to both Lessor and Lessee (i) at routine intervals, as
determined by pollution liability insurance policy renewal periods for insurance
in effect pursuant to Section 7.1(c); (ii) after any spill or release that has
the potential to significantly affect soil and groundwater on the Land; (iii) in
order to comply with any governmental or legal requirement, or (iv) at any
proposed assignment or sublease or termination of this Lease. Prior to the third
(3rd) annual anniversary date of this Lease, Lessor shall bear the cost of the
assessment. After the third (3rd) annual anniversary date of this Lease, Lessor
and Lessee shall share equally in the costs of any such assessment. Lessor and
Lessee, in each instance shall have equal rights to the results of the
assessment. Such assessments will be done by sampling soils and groundwater
upgradient of, within, and downgradient of the Land using one or both of the
following: (1) non-permanent methods such as drilling, direct push sampling,
using a hand auger, or similar methods, or (2) permanent methods such as
groundwater wells or lysimeters.

     (g)  Drum Storage.  All drum storage shall be limited to drum storage
          ------------
locations reasonably designated by Lessee. All drum storage locations shall be
provided with secondary spill containment.

     (h)  Spill Prevention and Containment.
          --------------------------------

          (i)    Lessee shall designate and retain a licensed and reputable
     environmental spill response contractor who shall respond to major releases
     or spills of Hazardous Substances on, within, under, over or about the
     Property.

          (ii)   Lessee shall provide and maintain in good order "spill kits" at
     strategic locations and at reasonable intervals throughout the Property.
     Such spill kits shall be designed to enhance the preparedness of Lessee and
     its agents and employees to react to potential releases of Hazardous
     Substances, and shall include, at a minimum: absorbent materials such as
     powders and/or pads, protective clothing such as gloves, boots, etc.

          (iii)  Lessee shall timely implement all elements of the Spill
     Prevention Control and Countermeasure ("SPCC") Plan pursuant to the Clean
     Water Act and regulations issued thereunder.

          (iv)   Lessee shall provide drip pans for all equipment in the
     Property which leaks or may leak oil or any other fluid.

     (i)  Waste Generation and Disposal.
          -----------------------------

          (i)    Lessee shall not permit on-site waste disposal on the Property.

                                      11
<PAGE>

Resins Ground Lease

          (ii)   Lessee shall cause disposal of solvents used on the Property
     offsite in accordance with any applicable Environmental Laws.

     (j)  Facility Expansion and Repair.
          -----------------------------

          (i)    Without Lessor's consent, which consent shall not be
     unreasonably withheld, Lessee shall not be permitted to excavate or dig
     trenches on, within, under, over or about the Property EXCEPT (1) in
     connection with a Permitted Investigation and Disclosure as defined in the
     Environmental Agreement or (2) in the event it is undertaken as part of or
     in connection with the construction of buildings or other improvements or
     other reasonable ground disturbance in connection with the operation of the
     business of Lessee, in which case under clauses (1) or (2) no consent of
     Lessor shall be required, however, Lessee shall provide Lessor with
     reasonable advance notice of any such activity.

          (ii)   Except as otherwise provided in Article 6, Lessee shall not
     permit the repair of any underground systems on, within, under or about the
     Land (including, without limitation, any piping, conduit, sewers and
     foundations) to occur without Lessor's prior written approval, which
     approval shall not be unreasonably withheld, except that Lessee may make
     emergency repairs to such systems without Lessor's approval on the
     condition that Lessee notifies Lessor of such emergency and of such repairs
     promptly after such emergency arises.

     5.3  Lessor and Lessee acknowledge that notwithstanding any provision to
the contrary in this Lease, the provisions of Section 10.3 of the Environmental
Agreement between Shell Petroleum N.V. and Shell Epoxy Resins, Inc. dated the
date hereof (the "Environmental Agreement") shall apply as between any SELLER
Indemnified Party and SER Indemnified Party and any Person (as defined in the
MSA) to whom a transfer or assignment is made in accordance with Section 11.1 of
the Environmental Agreement. Any obligation or liability of any SER Indemnified
Party (as defined in the Environmental Agreement) or Seller Indemnified Party
(as defined in the Environmental Agreement) under this Agreement shall be
without prejudice to the rights, if any, of the relevant party to claim
Environmental Damages (as defined under the Environmental Agreement) under the
Environmental Agreement.

                                   ARTICLE 6

              Compliance with Ordinances; Maintenance and Repair

     6.1  Lessee shall keep the Property in a condition conforming in all
material respects to the requirements of all applicable statutes, ordinances,
regulations and other requirements of any governmental authority, the
regulations or other requirements of any national or local board of fire
underwriters or any other body exercising similar functions and the requirements
of all policies of insurance maintained in force by Lessee on or with respect to
the Property, provided that Lessor has given written notice to Lessee of such
requirements.

     6.2  Lessee shall not make or permit any use of the Property, or any part
thereof, which violates any applicable statute, ordinance, regulation or other
requirement of any governmental authority, or which constitutes a nuisance,
public or private, or which may render void or voidable any insurance then in
force pursuant to the provisions of this Lease.

                                      12
<PAGE>

Resins Ground Lease

     6.3  Lessee shall, at Lessee's expense, keep the Property in a clean and
orderly condition, free of accumulations of dirt, rubbish, snow, ice and
unlawful obstructions. Lessee shall also keep all Improvements in good order and
condition, ordinary wear and tear excepted, and to that end shall perform all
necessary maintenance and make all necessary repairs and replacements, interior
and exterior, structural and non-structural, extraordinary as well as ordinary,
foreseen as well as unforeseen (including, without limitation, maintenance and
repair of the heating and air conditioning system and the fire
detection/protection and alarm systems and other systems in the Property), all
in accordance with operation and maintenance standards applied by prudent owners
of similar properties in the area and otherwise consistent with the operation
and maintenance standards applied by Lessor during the period of Lessor's
ownership of the Property.

                                   ARTICLE 7

                                   Insurance

     7.1  Lessee shall, at Lessee's sole cost and expense, provide and maintain
the following minimum insurance, in compliance in all material respects with all
applicable laws and satisfactory to Lessor, during the term of this Lease:

     (a)  Commercial General Liability Insurance, including premises/operations,
products/completed operations, contractual liability, and fire legal liability
coverages, in a coverage amount of not less than $10,000,000 each occurrence
(except with respect to fire legal liability coverage which will have a sublimit
of $250,000) and in all events in accordance with general industry practices for
similar operations. Such insurance may be maintained in any combination of
primary and secondary coverages, as Lessee may determine;

     (b)  Workers Compensation insurance - statutory, and Employers' Liability
Insurance - $ 1,000,000 each occurrence.

     (c)  Pollution liability insurance, which shall include coverage for
gradual and sudden and accidental pollution liabilities and for pollution clean-
up expenses, in a coverage amount of not less than $50,000,000; provided,
however, that Lessor will agree to waive this requirement if Lessee (or if any
parent company of Lessee which executes an instrument satisfactory to Lessor
guaranteeing the obligations of Lessee under this Lease) has and maintains a
credit rating for senior unsecured debt from a nationally recognized credit
rating agency of at least "AA+" or better.

     (d)  Fire and extended coverage insurance covering the Improvements against
loss or damage by fire and such other risks as are from time to time included in
broad form extended coverage endorsements, as Lessee may determine, but always
in an amount equal to the cost of demolition and removal of the Improvements
(exclusive of any co-insurance clause).

     (e)  Commercial Automobile Liability Insurance, including owned, non-owned
and leased vehicles - combined single limit for bodily injury and property
damage - $5,000,000 each occurrence.

     (f)  All of the foregoing insurance may be maintained in a blanket policy
or policies with aggregate coverage amounts relating not only to the Property
but to other property of Lessee and may also be maintained in any combination of
primary and secondary coverage, as Lessee may determine.

                                      13
<PAGE>

Resins Ground Lease

     7.2  Unless otherwise agreed in writing by Lessor, all insurance provided
for in this Article 7 shall be effected under valid and enforceable policies
issued by insurers licensed in the State of Texas and reasonably acceptable to
Lessor. Upon the execution of this Lease and from time to time as may be
requested by Lessor, Lessee will furnish copies of the certificates evidencing
such insurance to Lessor or Lessee's insurance. The insurance requirements set
forth in this Article 7 shall be adjusted from time to time (but not more than
once in any twelve (12) month period) in accordance with the limits customarily
maintained in the industry for similar properties in similar locations as
reasonably determined by Lessor. If Lessee fails to procure and maintain said
insurance, Lessor may, but shall not be required to, procure and maintain the
same upon not less than twenty (20) days notice to Lessee, but at the expense of
Lessee, which expense shall be paid upon demand as Additional Rent. Insurance
required hereunder shall be in companies or Groups rated B+-XII or better in
"Best's Insurance Reports Property--Casualty". To the maximum extent permitted
by law, insurance maintained by Lessee shall waive insurer's rights of
subrogation against Lessor and Lessor's insurers. Lessee shall, or shall require
its insurers on its behalf to, provide Lessor with thirty (30) days' prior
written notice of cancellation, nonrenewal, or material modification of any of
the insurance required hereunder.

     All insurance maintained by Lessee shall be regarded as primary insurance
underlying any other applicable insurance and shall not be limited by the
liabilities and indemnities accepted by Lessee in this Lease, nor shall the
Lessee's liabilities and indemnities be limited by the insurance requirements in
this Lease.

     7.3  Upon request, and at Lessor's reasonable discretion, Lessor may, but
shall not be required to, permit Lessee to self-insure in lieu of all or part of
insurance specified in this Lease.

                                   ARTICLE 8

                                     Liens

     8.1  Lessee shall not suffer or permit any mechanic's or materialman's
statutory or similar lien to be filed against the Land or the Improvements or
any interest of Lessor therein by reason of labor, services or materials
supplied or claimed to have been supplied to Lessee or anyone holding or
occupying the Property, or any part thereof, through or under Lessee. If any
such lien shall at any time be filed against the Land or the Improvements,
Lessee shall, within thirty (30) days after notice of the filing thereof, cause
the same to be released and discharged of record by payment, bonding or order of
a court of competent jurisdiction or otherwise.

     8.2  Lessor shall not suffer or permit any mechanic's or materialman's
statutory or similar lien to be filed against the Land or the Improvements or
any interest of Lessee therein by reason of labor, services or materials
supplied or claimed to have been supplied to Lessor. If any such lien shall at
any time be filed against the Land or the Improvements, Lessor shall, within
thirty (30) days after notice of the filing thereof, cause the same to be
released and discharged of record by payment, bonding or order of a court of
competent jurisdiction or otherwise.

                                   ARTICLE 9

                           Assignment and Subletting

                                      14
<PAGE>

Resins Ground Lease

     9.1  The Lessee named in the first paragraph of this Lease (the "Original
Lessee"), may at any time or from time to time assign this Lease and/or sublease
all or any part of the Land to an affiliate of Original Lessee or to any other
person (a "Third Party") without the prior written consent of Lessor. As used
herein, "affiliate" means an entity which owns, is owned by or under common
control with Lessee. If a Third Party becomes the Lessee under the Lease, then
for the remainder of the Term, Lessee may only assign this Lease or sublease all
or any part of the Land with the prior written consent of Lessor (which consent
shall not be unreasonably withheld or delayed) and in each such instance, the
Lessee shall remain primarily liable under this Lease. Notwithstanding the
foregoing, Lessee may mortgage and/or collaterally assign this Lease, or its
interest therein, to a bona fide financial institution or institutions with a
business which includes lending money and with a net worth in excess of One
Hundred Million Dollars, without the prior written consent of Lessor. In
addition, Lessee shall have the right to assign the Lease or sublet the Land to
an affiliate without the prior written consent of Lessor.

     9.2  If Lessee mortgages or otherwise encumbers its interest in this Lease,
the following terms shall apply:

     (a)  If Lessee and/or Lessee's successors and/or assigns shall grant a
mortgage or security interest in Lessee's interest in this Lease and the Land,
and if Lessee or the leasehold mortgagee under such leasehold mortgage or
security agreement shall send to Lessor a copy of its leasehold mortgage,
together with written notice specifying the name and address of the leasehold
mortgagee, then so long as such leasehold mortgage shall remain unsatisfied of
record or until written notice of satisfaction is given by the holder of such
leasehold mortgage or security agreement to Lessor, the following provisions
shall apply:

          (i)    Neither Lessee acting alone, nor Lessor and Lessee acting
     jointly, shall cancel, surrender, accept surrender, amend or modify this
     Lease in any material respect without in each case obtaining the prior
     written consent of such leasehold mortgagee, and no merger shall result
     from the acquisition by, or devolution upon, any one entity of the fee and
     the leasehold estate in the Land.

          (ii)   Lessor shall use reasonable efforts upon serving Lessee with
     any notice or other communication, whether of default or otherwise,
     simultaneously and in the same manner serve a copy of such notice upon such
     leasehold mortgagee.

          (iii)  Upon receipt of notice of default from Lessor, the leasehold
     mortgagee shall have the greater of (a) the same time period provided to
     Lessee under this Lease or (b) for monetary defaults, forty-five (45) days,
     and for nonmonetary defaults, ninety (90) days, after the receipt of notice
     from Lessor, to remedy or cause to be remedied any alleged default on the
     part of Lessee, provided that if any such nonmonetary default cannot, with
     the exercise of reasonable diligence, be remedied within such period, then
     so long as such leasehold mortgagee commences taking action to remedy such
     default within such ninety (90) day period and thereafter continues with
     reasonable diligence to obtain such remedy with the exercise of reasonable
     diligence, Lessor shall accept such performance by or at the instigation of
     such leasehold mortgagee as if same has been done by Lessee. Each notice of
     default given by Lessor will clearly state (x) if monetary, the amounts
     claimed due under this Lease, (y) if nonmonetary, the nature of the default
     and the remedy required under this Lease, and (z) in either case, whether
     Lessor has a right to terminate this Lease based on the alleged defaults.
     Nothing contained in this provision shall require any leasehold mortgagee
     to cure any default by Lessee under this Lease.

                                      15
<PAGE>

Resins Ground Lease

          (iv)   Upon notice from Lessor of its desire to terminate this Lease
     following a default, the leasehold mortgagee shall also have the separate
     right to postpone and extend the specified date for the termination of this
     Lease as fixed by Lessor in its notice of termination, for a period of not
     more than twelve (12) months, provided that the leasehold mortgagee shall,
     within forty-five (45) days from the receipt of such notice, cure or cause
     to be cured any then existing monetary defaults and within ninety (90) days
     shall have commenced or caused to commence the remedy of all nonmonetary
     defaults, and meanwhile pay or cause to be paid the Basic Rent and
     Additional Rent, and to perform all other covenants of this Lease
     reasonably susceptible of being performed by leasehold mortgagee, and
     provided further that the leasehold mortgagee shall forthwith take steps to
     acquire or sell Lessee's interest in this Lease by foreclosure of the
     leasehold mortgage or otherwise and shall prosecute the same to completion
     with reasonable diligence. If at the end of said twelve (12) month period
     the leasehold mortgagee shall be actively engaged in steps to acquire or
     sell Lessee's interest in this Lease, the time of the leasehold mortgagee
     to comply with this provision shall be extended for such period as shall be
     reasonably necessary to complete such steps with reasonable diligence. If
     the leasehold mortgagee is prohibited from commencing or prosecuting
     foreclosure or other appropriate proceedings by any process or injunction
     issued by any court or by reason of any action by any court having
     jurisdiction of any bankruptcy, debtor rehabilitation or insolvency
     proceedings involving Lessee, the said twelve (12) month period shall be
     extended for the period of such prohibition, provided that the leasehold
     mortgagee shall diligently attempt to remove any such prohibition. If
     Lessee's interest is acquired or sold as aforesaid by foreclosure of the
     leasehold mortgage or otherwise during said twelve (12) month period, as
     same may be extended as aforesaid, the intended termination of this Lease
     by Lessor under the aforesaid notice will be automatically nullified and
     this Lease will continue as if said notice of termination had never been
     given.

     (b)  In the event a default by Lessee occurs in the performance or
observance of any term, covenant, condition, or agreement on Lessee's part to be
performed under this Lease (other than a term, covenant, condition or agreement
requiring the payment of a sum of money) which cannot practicably be cured by
the leasehold mortgagee without taking possession of Lessee's interest in the
Land, or if such default is of such a nature that the same is not susceptible of
being cured by the leasehold mortgagee, then Lessor shall not serve a notice of
election to terminate or otherwise exercise remedies under or in respect of this
Lease pursuant to the terms thereof, or otherwise terminate the leasehold estate
or any other estate, right, title or interest of Lessee hereunder by reason of
such default, without allowing the leasehold mortgagee reasonable time within
which:

          (i)    In the case of a default which cannot practically be cured by
     the leasehold mortgagee without taking possession of Lessee's interest in
     the Land, to obtain possession of Lessee's interest in the Land as
     mortgagee (through the appointment of a receiver of otherwise), and, upon
     obtaining possession, to commence promptly and diligently prosecute to
     completion such action as may necessary to cure such default; and

          (ii)   In the case of a default which is not susceptible of being
     cured by the leasehold mortgagee, to commence promptly and diligently
     prosecute to completion foreclosure proceedings or to acquire Lessee's
     estate hereunder, either in its own name or through a nominee, by
     assignment in lieu of foreclosure.

     The leasehold mortgagee shall not be required to continue to proceed to
     obtain possession, or to continue in possession as mortgagee, of the Land
     pursuant to clause (i) above, or to continue to prosecute foreclosure
     proceedings pursuant to clause (ii) above, if and when such default shall
     be

                                      16
<PAGE>

Resins Ground Lease

     cured. Nothing herein shall preclude Lessor from exercising any of its
     rights or remedies with respect to any other default by Lessee during any
     period when Lessor shall be forbearing termination of this Lease as above
     provided, but in such event the leasehold mortgagee shall have all of the
     rights and protections hereinabove provided for. If the leasehold
     mortgagee, or its nominee, or a purchaser at a foreclosure sale, shall
     acquire title to Lessee's leasehold estate hereunder, and shall cure all
     defaults of Lessee hereunder which can be cured by the leasehold mortgagee,
     or by such purchaser, as the case may be, then the defaults of any prior
     holder of Lessee's leasehold estate or any other estate, right, title or
     interest hereunder which are not susceptible of being cured by the
     leasehold mortgagee (or by such purchaser) shall no longer be deemed to be
     defaults hereunder.

     (c)  In the event (i) this Lease is terminated by reason of Lessee's
default hereunder, or (ii) this Lease is disaffirmed in the event of Lessee's
bankruptcy, then, within ten (10) business days after such termination (which
term as used herein shall include a disaffirmance), Lessor shall give notice to
the leasehold mortgagee that this Lease has been terminated, together with a
statement of any and all sums which would at that time be due under this Lease
but for such termination, and of all other defaults, if any, under this Lease
then known to Lessor, and the leasehold mortgagee, by notice to Lessor,
thereupon may request Lessor to enter into a new lease of the Premises and
Lessor shall enter into a new lease (the "New Lease") with the leasehold
mortgagee (or its nominee), within thirty (30) days after the giving of such
notice by the leasehold mortgagee provided that the leasehold mortgagee shall
have cured or caused to be cured any defaults of Lessee existing at the date of
termination that are) susceptible of being cured. The New Lease shall commence
and Rent and all obligations of the Lessee under the New Lease shall accrue, as
of the date of termination of this Lease. The term of the New Lease shall
continue for the period which would have constituted the remainder of the term
of this Lease had this Lease not been terminated, and shall be upon all of the
terms, covenants, conditions, conditional limitations, and agreements contained
herein which were in force and effect immediately prior to the termination of
this Lease. The New Lease, and this covenant, shall be superior to all rights,
liens, estates, titles and interests, other than those to which this Lease shall
have been subject immediately prior to termination and those matters to which
this Lease may, by its terms, become subject, The provisions of the immediately
preceding sentence shall be self-executing, and Lessor shall have no obligation
to do anything (other than to execute such New Lease as herein provided) to
assure to the leasehold mortgagee or to the tenant under the New Lease good
title to the leasehold estate and the other estates, rights, titles and
interests granted thereby. Simultaneously therewith, Lessor shall pay over to
the leasehold mortgagee all monies on deposit with Lessor, if any, which Lessee
would have been entitled to use but for the termination of this Lease for the
purposes of and in accordance with the provisions of the New Lease. The
leasehold mortgagee shall, simultaneously with the delivery of the New Lease,
pay to Lessor (1) all Rent and other sums of money due under this Lease on the
date of termination of this Lease and remaining unpaid; plus (2) all Rent and
other sums of money due under the New Lease for the period from the date of
commencement of the term thereof to the date of delivery of the New Lease; plus
(3) all costs and expenses, including reasonable attorneys' fees, court costs,
and litigation expenses, incurred by Lessor in connection with termination of
this Lease, the recovery of possession of Lessee's interest in the Land, putting
the premises in good condition and repair in connection with any defaults
hereunder, and the preparation, execution and delivery of such New Lease.

     (d)  If the leasehold mortgagee forecloses upon or otherwise acquires all
or part of Lessee's leasehold interest, the transfer to the leasehold mortgagee
(or any nominee of the leasehold mortgagee) shall not require Lessor's consent
and the acquiring leasehold mortgagee shall be permitted to transfer the
acquired interest without Lessor's prior consent and shall thereupon be released
from all liability for the performance or observance of the covenants and
conditions in such lease contained on Lessee's part to be performed and observed
from and after the date of such assignment; provided that the assignee shall
have

                                      17
<PAGE>

Resins Ground Lease

assumed such lease; and provided further that notwithstanding the foregoing or
any other term or provision hereof, the leasehold mortgagee may assign this
Lease, in whole or in part, or any rights granted hereunder, or delegate to
another party any of the duties hereunder, without the prior consent of Lessor
if, in the reasonable judgment of the leasehold mortgagee and the Lessor, such
other party has such operating capability as shall enable such party to perform
the obligations of Lessee hereunder. Notwithstanding the foregoing, Lessor's
approval shall not be required in the event of an assignment or deletion of
duties hereunder to a party engaged in the business of manufacturing the
products manufactured by Lessee at the time the leasehold mortgagee forecloses
upon or otherwise acquires all or part of Lessee's interest or a party that
engages a management team having no less than ten (10) years of experience in
such business.

     9.3   Lessor waives and relinquishes any landlord's lien, all rights of
levy, security interest or other interest that Lessor may now or hereafter have,
whether by statute or by common law, in any of the personal property whether for
Basic Rent, Additional Rent or otherwise. The personal property may be installed
in or located on the Land and is not and shall not be deemed to be a fixture or
part of the underlying real estate but shall at all times be considered personal
property. Lessor disclaims any interest in the personal property and agrees to
assert no claim to the personal property. Lessor acknowledges and agrees that
Lessee may grant a security interest in personal property to an entity providing
financing to Lessee and Lessor acknowledges that Lessee's lender shall have the
right to file Uniform Commercial Code financing statements against the personal
property. Lessor agrees that Lessee's lender or its representatives may enter
upon the Land at any time to inspect or remove the personal property. Lessor
agrees that Lessee's lender, at its option, may enter the Demised Land for the
purpose of repossessing, removing, selling or otherwise dealing with the
personal property. At Lessee's request, Lessor shall execute and deliver to
Lessee within ten (10) business days after receipt of Lessee's request therefor,
an agreement with Lessee's lender confirming the rights granted under this
Section 9.3.

     9.4   Lessor and Lessee acknowledge and agree that notwithstanding any
other provisions of this Lease to the contrary, including without limitation,
Section 23.9, any leasehold mortgagee shall be deemed a third party beneficiary
of the rights contained in Sections 9.2, 9.3 and 9.4 hereof.

                                  ARTICLE 10

                                 Condemnation

     10.1  As used herein, the term "Taking" means a permanent or temporary
condemnation or taking of all or any portion of the Land in any manner for
public or quasi-public use, including but not limited to a conveyance or
assignment in lieu of a condemnation or taking. Except as otherwise provided in
Section 10.4:

           (a)    If a Taking covers the entire Land, this Lease will
automatically terminate as of the earlier of the date of the vesting of title or
the date of dispossession of Lessee as a result of such Taking, provided,
however, if, after either of the aforesaid dates, the condemning authority
permits continued possession, then this Lease shall continue until possession is
denied and Lessee shall pay all rent, if any, due in respect of the Land to the
condemning authority.

           (b)    If a Taking covers only a part of the Land, this Lease will
automatically terminate as to the portion of the Land so taken as of the earlier
of the date of the vesting of title or the date of dispossession of Lessee as a
result of such condemnation or Taking, provided however, if, after either of the
aforesaid dates, the condemning authority permits continued possession, then the
Lease shall

                                      18
<PAGE>

Resins Ground Lease

continue until possession is denied and Lessee shall pay all rent, if any, due
in respect of the Land to the condemning authority.

           (c)    If a portion of the Land is taken so as to render the
remaining portion unusable by Lessee for Lessee's business in Lessee's
reasonable judgment, this Lease may be terminated by Lessee as of the earlier of
the date of the vesting of title or the date of dispossession of Lessee as a
result of such Taking, by written notice to Lessor within 60 days following
notice to Lessee of the date on which said vesting or dispossession will occur;
and if Lessee fails to give such written notice to Lessor within said 60-day
period, Lessee's right to so terminate this Lease will be deemed to be
irrevocably waived by Lessee. In the event of a termination pursuant to this
Section 10.1, the provisions of Article 18 shall apply.

     10.2  Lessee will be entitled to any award made for the value of the
leasehold estate or any other rights of Lessee created by or existing under this
Lease and the Lessor shall be entitled to any award made for the residual value
of the real property after the termination of the term of this Lease.

     10.3  Notwithstanding any other provision of this Article 10, if a Taking
occurs with respect to all or any portion of the Land for a limited period of
time, this Lease will not be affected by such Taking. If any such temporary
Taking occurs, Lessee will be entitled to receive that portion of any award
which represents compensation for the use or occupancy of the Land during the
term of this Lease and shall pay to Lessor the rent due for the period of time
of the Taking, and Lessor will be entitled to receive that portion of any award
which represents the cost of restoration of the Land and the use and occupancy
of the Land after the end of the term of this Lease.

     10.4  Disputes arising under this Article 10 shall be determined by
arbitration pursuant to Article 17.

                                  ARTICLE 11

                            Damage and Restoration

     11.1  If the Improvements are damaged or destroyed by fire or other
casualty, Lessee shall promptly notify Lessor in writing of such damage or
destruction, generally describing the nature and extent of such damage or
destruction. There shall be no abatement of or adjustment to Basic Rent or other
Rent due under this Lease as a result of any damage or destruction.

     11.2  In the event of any damage to or destruction of all or any part of
the Improvements, and whether or not the insurance proceeds on account of such
damage or destruction shall be sufficient for the purpose, Lessee at its
expense, shall either (i) promptly commence and complete the restoration,
replacement or rebuilding of the damaged Improvements, or (ii) if Lessee elects
not to restore or rebuild the damaged Improvements, remove all of the above
ground damaged Improvements from the Land so as to leave same in a level
condition free of all structures and debris.

                                  ARTICLE 12

                     Construction, Changes and Alterations

                                      19
<PAGE>

Resins Ground Lease

     12.1  Lessee shall have the right, at its sole cost and expense, at any
time and from time to time during the term of this Lease, to construct
improvements on the Land (which improvements shall immediately upon completion
become a part of the Improvements), and make such changes and alterations
(including any restoration work required or permitted under Article 11) to the
Improvements as Lessee shall deem necessary or desirable in connection with the
requirements of its business, subject to the following conditions which Lessee
shall observe and perform:

           (a)    No construction, change or alteration shall be undertaken
until Lessee shall have procured and paid for, so far as the same may be
required from time to time, all municipal permits and authorizations for the
construction, change or alteration of the various municipal departments having
jurisdiction, and Lessor agrees to join in the application for such permits or
authorizations whenever such action is necessary, provided that Lessee
indemnifies Lessor, to Lessor's reasonable satisfaction, against all claims,
losses, damages and expenses incur-red by Lessor in connection therewith.

           (b)    All changes and alterations when completed shall be of such a
character as not to change the character of the Improvements as to use.

           (c)    All work done in connection with any construction, change or
alteration shall be done in compliance in all material respects with the
building and zoning laws of the place in which the Improvements are located and
with all laws, ordinances, orders, rules, regulations and requirements of all
Federal, state and municipal governments and the appropriate departments,
commissions, boards and officers thereof, and in accordance with HSE Policies.
The cost of any such construction, change or alteration shall be paid in cash so
that the Property shall at all times be free of liens for labor and materials
supplied or claimed to have been supplied to the Property; and there shall be
maintained workmen's compensation insurance covering all persons employed in
connection with the work and a general liability policy covering all persons and
property, and with respect to whom death or injury claims could be asserted
against Lessor or the Property.

           (d)    All improvements, changes and alterations made or installed by
Lessee in or on the Property in accordance with this Lease, other than Lessee's
equipment and trade fixtures, shall immediately upon completion or installation
thereof become a part of the Improvements and subject to the terms of this
Lease. Lessee shall, at Lessee's sole cost and expense, repair (subject,
however, to Section 11.2) any and all damages to the Land arising from the
removal of any Improvements.

           (e)    Lessor shall have no obligation to provide any services or
utilities to the alterations, changes or additional improvements, except as
otherwise provided in the SUMF Agreement.

     12.2  Lessor, if requested by Lessee (or required hereunder as a condition
of Lessor's consent) to approve or inspect any design, site plan, plans,
drawings or specifications, or any contract for work or materials, or the method
of performing any work by Lessee or its employees, agents, contractors or
subcontractors (the "Approved Matters"), does not assume any responsibility
and/or liability as to the safety, adequacy, sufficiency, legality or otherwise
of any Approved Matter, which responsibility and/or liability shall be and
remain with Lessee. Except as otherwise provided in Article 13, neither Lessor
nor its agents, employees and architects, if any, shall be liable to any party
for any loss, claim or demand asserted on account of any Approved Matter.
Further, except as otherwise provided in Article 13, Lessee waives any claims,
damages or causes of action against Lessor arising out of one or more of the
Approved Matters.

                                      20
<PAGE>

Resins Ground Lease

                                  ARTICLE 13

                                Indemnification

     13.1  Damage to Assets and Employees
           ------------------------------

           (a)    Each party shall, except as provided in Sections 13.6,
13.2(a)(iii) and 13.2(b)(iii) and as set forth in Section 13.2(c), be
responsible for any Loss or Damage (as such terms are defined in the SUMF
Agreement) to such Party's property.

           (b)    Each party shall, except as provided in Section 13.2, be
responsible for any Loss or Damage of such party to any employee of such party.

     13.2  Lessee Indemnity
           ----------------

           (a)    Subject to the limitations set forth in this Article 13,
Lessee shall be responsible for and shall indemnify, defend and hold harmless
the Lessor from and against the following:

                  (i)    any Loss or Damage of Lessor Indemnitees to any of the
     Lessee's Employees attributable to (a) the Lessee's negligence (excluding
     any Loss or Damage attributable to Lessor's negligence) or (b) Lessee's
     Gross Negligence or Willful Misconduct (as such terms are defined in the
     SUMF Agreement);

                  (ii)   any Loss or Damage of Lessor Indemnitees to any of the
     Lessor's Employees attributable to the Lessee's Gross Negligence or Willful
     Misconduct;

                  (iii)  any Loss or Damage to any of the Lessor's property
     attributable to Lessee's Gross Negligence or Willful Misconduct;

                  (iv)   any Loss or Damage of the Lessor Indemnities resulting
     from Third Party Claims attributable to (a) Lessee's negligence or (b)
     Lessee's Gross Negligence or Willful Misconduct;

     provided, however, that Lessee's aggregate liability for any Loss or Damage
     --------  -------
     arising under Section 13.2(a)(ii) or 13.2(a)(iii) shall not (i) in any
     calendar year, exceed 33 1/3% of the amounts payable under the SUMF
     Agreement in the preceding calendar year (in the first calendar year, 33
     1/3% of such amounts for that calendar year); or (ii) for loss resulting
     from any single event, exceed 33 1/3% of such amounts in the calendar year
     in which the Loss or Damage first occurs.

     (b)   Lessor Indemnity.  Subject to the limitations set forth in this
           ----------------
Article 13, Lessor shall be responsible for and shall indemnify, defend and hold
harmless Lessee from and against the following:

           (i)    any Loss or Damage of Lessee Indemnitees to any of Lessor's
     Employees attributable to either (a) Lessor's negligence (excluding any
     Loss or Damage attributable to Lessee's negligence) or (b) Lessor's Gross
     Negligence or Willful Misconduct;

           (ii)   any Loss or Damage of Lessee Indemnitees to any of Lessee's
     Employees attributable to Lessor's Gross Negligence or Willful Misconduct;

                                      21
<PAGE>

Resins Ground Lease

           (iii)  any Loss or Damage to any of Lessee's property attributable to
     Lessor's Gross Negligence or Willful Misconduct; and

           (iv)   any Loss or Damage of Lessee Indemnitees resulting from Third
     Party Claims attributable to (a) Lessor's negligence or (b) Lessor's Gross
     Negligence or Willful Misconduct.

     provided, however, that Lessor's aggregate liability for any Loss or Damage
     --------  -------
     arising under Section 13.2(b)(ii) or 13.2(b)(iii) shall not (i) in any
     calendar year, exceed 33 1/3% of the amounts payable under the SUMF
     Agreement in the preceding calendar year (in the first calendar year, 33
     1/3% of such amounts for that calendar year); or (ii) for loss resulting
     from any single event, exceed 33 1/3% of such amounts in the calendar year
     in which the Loss or Damage first occurs.

     (c)   Each party waives and releases the other party from and against any
and all Loss or Damage to such party's assets resulting from the simple
negligence of the other party and such party shall cause its insurance carrier
to waive all rights of subrogation against the other party as to such Loss or
Damage.

     (d)   For purposes of this Article 13, the following terms shall be defined
as set forth below:

           "Employee" means any employee of the applicable party.

           "Third Party Claim" means any claim initiated by a person (other than
     either party, their Affiliates or their Employees) against an indemnified
     party, any of their respective Affiliates or any of their respective
     Employees.

           "Lessee Indemnitees" means Lessee, its Affiliates, officers,
     directors, employees, agents, servants, and other representatives of each
     of them.

           "Lessor Indemnitees" means the Lessor, its Affiliates, officers,
     directors, employees, agents, servants, and other representatives of each
     of them.

     13.3  A party shall promptly notify the other party of any claim made
against it arising out of matters covered in this Article 13. Once the
indemnifying party accepts its indemnity obligation, it may, at its own cost,
conduct negotiations for the settlement of any claim made against the
indemnified party, and any litigation that may arise therefrom in such
reasonable manner as the other party shall from time to time approve, such
approval not to be unreasonably withheld. The indemnified party shall not make
any admission which is prejudicial to the indemnifying party unless the
indemnifying party has failed to accept its indemnity obligations within twenty
(20) days after having been requested to do so.

     13.4  Notwithstanding anything to the contrary contained in this Lease,
under no circumstance shall a party or any of its Affiliates be held liable to
the other party or any of the other party's Affiliates for any loss of profit,
loss of use, loss of production, loss of contracts or for any other indirect or
consequential damage that may be suffered by the other, or for any special,
exemplary or punitive damages.

     13.5  Any liability of each party to the other under this Article 13 shall
expire two (2) years after the date on which the act giving rise to such party's
liability first occurred, and no claim demand, action or proceeding shall be
brought or initiated by the claiming party thereafter.

                                      22
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Resins Ground Lease

     13.6  THE FOREGOING INDEMNITIES SET FORTH IN THIS ARTICLE 13 ARE INTENDED
TO BE ENFORCEABLE AGAINST THE PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS AND
SCOPE THEREOF NOTWITHSTANDING TEXAS' EXPRESS NEGLIGENCE RULE OR ANY SIMILAR
DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE LIMIT INDEMNITEES BECAUSE OF THE
SIMPLE OR GROSS NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR
OTHER FAULT OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED PARTIES. EXCEPT AS
HEREIN SET FORTH NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY LOSS
OR DAMAGE ARISING UNDER THIS LEASE, EACH PARTY HEREBY WAIVING ALL CLAIMS OR
CAUSES OF ACTION OTHER THAN AS SPECIFIED IN THIS ARTICLE 13, PROVIDED, HOWEVER,
THAT NEITHER PARTY WAIVES ANY CLAIMS, CAUSES OF ACTION OR RIGHTS UNDER THE
ENVIRONMENTAL AGREEMENT.

                                  ARTICLE 14

                            Covenant Against Waste

     Lessee covenants, subject to the terms of this Lease, not to do or suffer
any waste or material impairment of the value of, the Land.

                                  ARTICLE 15

                             Inspection by Lessor

     Lessee agrees to permit Lessor to enter the Property at all reasonable
times on reasonable prior written notice for the purposes of (a) inspecting the
same, including, without limitation, insurance inspections by insurance company
personnel, and (b) performing any work in the Property that may be necessary by
reason of Lessee's default under the terms of this Lease. Nothing herein shall
imply or impose any duty upon the part of Lessor to do any such work which under
any of the terms of this Lease Lessee may be required to perform, and the
performance thereof by Lessor shall not constitute a waiver of Lessee's default
in failing to perform the same.

                                  ARTICLE 16

                                   Defaults

     16.1  Lessee may, in addition to its other remedies, terminate this Lease
in its entirety in any of the following circumstances:

           (a)    if a Bankruptcy Event (as defined in the SUMF Agreement)
     occurs and is continuing in relation to Lessor and Lessor does not provide
     adequate assurances to the Lessee within thirty (30) days of the occurrence
     of the Bankruptcy Event that Lessor will continue to provide all SUMF Items
     to Lessee on the terms and conditions of the SUMF Agreement.

           (b)    with no less than twelve (12) months' prior written notice,
     following the decision by the Lessee to discontinue all its operations at
     the Property.

                                      23
<PAGE>

Resins Ground Lease

     16.2  Lessor may, in addition to its other remedies, terminate this Lease
in any of the following circumstances:

           (a)    if a Bankruptcy Event occurs and is continuing in relation to
     Lessee and the Lessee does not provide the Lessor with adequate assurance
     (such as a priority lien, advance payment or letter of credit) of continued
     payment of Additional Rent due under this Lease within thirty (30) days of
     the occurrence of the Bankruptcy Event;

           (b)    if for reason other than Force Majeure, Lessee conducts its
     operations in a manner reasonably believed to be unsafe to either life,
     health, property or the environment so as to disrupt Lessor's business
     conducted at the Adjoining Property or subject Lessor to material HSE risks
     or material risks of violation of governmental requirements, fines,
     penalties, Third Party claims or claims by its employees, and such conduct
     continues for more than ten (10) business days after ninety (90) days prior
     written notice by Lessor to Lessee; provided, however that if the Lessee is
     conducting its operations in compliance in all material respects with HSE
     laws, its operations will be presumed to be safe;

           (c)    if Lessee without proper justification defaults in the
     performance of any non-monetary payment obligation or fails to pay any
     undisputed amount of Additional Rent within three (3) months of the date
     when such payment became due, and such failure continues thereafter for a
     period of sixty (60) days after written notice from Lessor.

     16.3  In addition to the foregoing, if Lessee shall default in the payment
of any Imposition or substitute Imposition, in the maintenance of insurance
(subject, however, to Section 11.2), or shall fail to make any other payment or
perform any other act, agreement, covenant, or obligation under this Lease,
Lessor may cure any such default, and the cost thereof together with interest at
the Interest Rate (as defined in the SUMF Agreement) shall be Additional Rent
due from Lessee upon demand.

                                  ARTICLE 17

                                  Arbitration

     17.1  Any dispute arising out of or in connection with this Lease,
including any question regarding the existence, validity or termination of this
Lease, shall be exclusively processed in accordance with this Article.

     17.2  In the event of a dispute between the parties, the parties shall,
within ten (10) days of a written request by either party to the other party,
meet in good faith to resolve such dispute or differences.

     17.3  Any dispute which cannot be resolved by the parties shall be
submitted to the Monitoring Committee under the SUMF Agreement which shall
endeavor to amicably resolve the dispute. The parties shall provide the
Monitoring Committee with such information as it reasonably requires to enable
it to determine the issues relevant to the dispute.

     17.4  Any dispute which cannot be resolved by the Monitoring Committee
shall be submitted to the Steering Committee under the SUMF Agreement, which
shall endeavor to amicably resolve the

                                      24
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Resins Ground Lease

dispute. The parties shall provide the Steering Committee with such information
as it reasonably requires to enable it to determine the issues relevant to the
dispute.

     17.5  Any dispute which cannot be resolved by the Steering Committee shall
be submitted to mediation before a mediator selected by the Steering Committee.
The parties shall bear their own costs for mediation and the cost of the
mediator shall be borne equally.

     17.6  If the parties are unable to select a mediator within fifteen (15)
days or if the dispute is not resolved as a result of the mediation within sixty
(60) days (or such other period as may be agreed by the parties), either party
may submit the matter to arbitration for final, binding and exclusive settlement
by three arbitrators in accordance with the UNCITRAL Arbitration Rules, with the
President of the ICC Court of International Arbitration to act as the appointing
authority, or any other arbitration provided for in Exhibit A of the SUMF
Agreement, such arbitration to be held in Houston, Texas. Any arbitration
decision pursuant to this Article 17 shall be final and binding upon the parties
and judgment thereon may be entered in any court of competent jurisdiction.
Costs incurred by the parties in carrying on any arbitration proceeding
hereunder (including reasonable attorneys' fees and arbitration fees) shall be
borne by the nonprevailing party or apportioned by the arbitrator based on
fault.

     17.7  Pending resolution of any dispute between the parties, the parties
shall continue to perform in good faith their respective obligations under this
Lease based upon the last agreed performance demonstrated prior to the dispute,
but in all events to protect HSE.

     17.8  Resolution of any dispute between the parties involving payment of
money by one party to the other shall include payment of interest at the
Interest Rate from the original due date of such amount.

     17.9  Each party shall, in addition to all rights provided herein or
provided by law, be entitled to the remedies of specific performance and
injunction to enforce its rights hereunder.

     17.10  The fact that the dispute resolution procedures specified in this
Article 17 shall have been or may be invoked shall not excuse any party from
performing its obligations under this Lease, and during the pendency of any such
procedure all parties shall continue to perform their respective obligations in
good faith.

                                  ARTICLE 18

                    Surrender of Improvements; Holding Over

     18.1  Upon the expiration or earlier termination of the term of this Lease
for any reason except a termination pursuant to subparagraph (a) of Section
10.1, at the option of Lessor, Lessee at its sole cost and expense shall
promptly remove all of the Improvements and all personal property located on the
Land. Further, Lessee shall clean up all contaminants and Hazardous Substances
in soils and groundwater ("Environmental Situation") in accordance with the
Lowest Cost Alternative as set forth below. The intent of the foregoing is that,
at Lessor's election, Lessee shall surrender the Land to Lessor in a level
condition free of all structures and debris. Subject to the provisions regarding
the Lowest Cost Alternative as set forth below, Lessee shall surrender the
Property to Lessor free of all contaminants and Hazardous Substances placed or
permitted to be placed by Lessee on the surface of the Land. Notwithstanding the
foregoing, Lessee shall not be required to remove any paved parking areas, any
interior roadways or any foundations, provided, however, that all such
foundations must be boarded up to

                                      25
<PAGE>

Resins Ground Lease

avoid constituting a hazard. Lessee's obligation to clean up an Environmental
Situation shall be limited to the Lowest Cost Alternative. The "Lowest Cost
Alternative" shall be:

     (A)   (i)    the minimum necessary to comply with any settlement or
                  agreement with the relevant Governmental Entity or Third Party
                  (if applicable); or

           (ii)   the minimum necessary to comply with Environmental Laws as
                  enforced in relation to the relevant Environmental Situation,
                  where no such settlement or agreement is reached; or

           (iii)  where the Governmental Entity having jurisdiction over the
                  Land is not aware of the nature and extent of the relevant
                  Environmental Situation, the minimum necessary to comply with
                  Environmental Laws as they would be very likely to be
                  enforced, if such Governmental Entity were so aware; and

     (B)   so far as within the control of Lessee, be consistent with the
           operations of the same description as conducted by the Lessee at the
           Land prior to the termination of this Lease; and

     (C)   achieved for the lowest financial cost as compared with other
           potential Remediation Activities.

     Taking no action shall constitute an acceptable Lowest Cost Alternative if,
     after investigation, taking no action is determined to be consistent with
     or otherwise satisfy the applicable conditions for the Lowest Cost
     Alternative as set forth above.

     For the purposes of this Section 18.1, the following definitions shall
     apply:

           "ENVIRONMENT" means all air, surface water, groundwater, or land,
     including land surface or sub-surface, including all fish, wildlife, biota,
     flora or fauna and related natural resources.

           "GOVERNMENTAL ENTITY" means any federal, state, local or foreign
     government or any court of competent jurisdiction, regulatory or
     administrative agency or commission or other governmental authority or non-
     commercial instrumentality, domestic or foreign.

           "RELEASE" means any spilling, leaking, pumping, pouring, emitting,
     emptying, discharging, injecting, escaping, leaching, dumping, or disposing
     of Hazardous Substances into the Environment.

           "REMEDIATION ACTIVITIES" means the investigation and remediation of
     an Environmental Situation, including but not limited to soil and
     groundwater sampling, activities associated with the construction,
     operation, maintenance or monitoring of remediation or treatment equipment
     and systems, the investigation, excavation, restoration, remediation,
     clean-up and/or treatment of contaminated soil, groundwater and free
     product, measures to contain, monitor or limit contamination and/or other
     works in relation to any Environmental Situation.

           "THIRD PARTY" means any person other than Lessor, Lessee, Resin
     Acquisition, LLC or their respective Affiliates (as defined in the MSA).

                                      26
<PAGE>

Resins Ground Lease

     18.2  If Lessee does not surrender possession of the Property at the end of
the term, such action shall not serve to extend the term of this Lease; rather,
Lessee shall be a tenant at sufferance, and during such time of occupancy,
Lessee shall pay to Lessor, as damages, an amount equal to $10,000.00 per month.

                                  ARTICLE 19

                                Quiet Enjoyment

     Lessor covenants that Lessee, upon paying the Rent herein provided for, and
observing and keeping the covenants, agreements and conditions of this Lease on
its part to be kept, shall lawfully and quietly hold, occupy and enjoy the Land
during the term of this Lease without hindrance or molestation of anyone
claiming by, through or under Lessor, but not otherwise. Lessor represents and
warrants to Lessee that neither the Land nor any of Lessor's right, title or
interest therein is encumbered by a lien.

                                  ARTICLE 20

                        Excavations and Lateral Support

     If Lessor performs any excavation upon the Land, Lessor will, at its
expense, shore the foundations and exterior walls of the Improvements and do all
other acts or things necessitated by such excavation for the safety and
preservation of the Improvements including, without limitation, compliance with
Lessor's HSE Policies. If any excavation or other building operation shall be
about to be made or shall be made by any person or entity other than Lessor upon
any adjoining property, street or alley, owned by a person or entity other than
Lessor, Lessee will, at its own expense, shore the foundations and walls of the
Improvements and do all other acts or things necessary for the safety and
preservation of the Property including, without limitation, compliance with
Lessor's HSE Policies. If any excavation or other building operation by Lessee
shall be about to be made or shall be made upon the Property by any person or
entity other than Lessor, then Lessee shall, at its own expense, assume all
obligations imposed by law on the owner and occupant of the Property, or either
thereof, to protect adjoining property and buildings and structures thereon from
damage, and shall do all acts and things necessary for the safety or
preservation of the Property and the adjoining property and the buildings and
structures thereon and to prevent any claims or liens against Lessor or the
Property. Lessor shall not be liable for any inconvenience, annoyance,
disturbance, loss of business or other damage arising from any such excavation
or building operation and Lessee's obligations hereunder shall not thereby be
affected.

                                      27
<PAGE>

Resins Ground Lease

                                  ARTICLE 21

                                   Easements

     21.1  Lessor reserves perpetual, non-exclusive easements across the Land,
appurtenant to Lessor's adjoining land more particularly described in Exhibit B
                                                                      ---------
attached hereto ("Lessor's Adjoining Property"), for the use and benefit of
Lessor, its successors and assigns, and to the extent designated by Lessor in
writing from time to time, Lessor's invitees, licensees, contractors, suppliers,
tenants, and other owners or operators of facilities within Lessor's Adjoining
Property, for the following purposes reasonably related to Lessor's business:
(i) vehicular and pedestrian ingress/egress, over and upon the parking areas,
access ways, entrances and exits, as such are and shall, from time to time, be
developed, altered or modified on the Land; (ii) with notice to Lessee, access
to Lessor's equipment located on the Land and in the Improvements to carry out
the provisions of the SUMF Agreement; and (iii) the installation, maintenance,
operation, replacement, and repair of communication lines, sewer, water, gas,
electric utilities and related facilities, fuel lines and related equipment, and
pipelines, pipe racks, and anything that relates to Lessor's business in each
case at locations reasonably approved by Lessee. Lessee has the right to use all
of such non-exclusive easements.

     21.2  Lessor grants and conveys to Lessee for the term of this Lease, non-
exclusive easements, appurtenant to the Land, on, over and across those portions
of Lessor's Adjoining Property, which portions are as described in Exhibit C
                                                                   ---------
attached hereto, for the following purposes reasonably related to Lessee's
business as set forth in Article 4: as common areas and driveways, for vehicular
and pedestrian ingress/egress, for the benefit of Lessee, its employees,
invitees, tenants, licensees, contractors, suppliers and permitted successors
and assigns, in common with Lessor and Lessor's employees, invitees, tenants,
licensees, contractors, suppliers, successors and assigns. Lessor (and others)
have the right to use all of such non-exclusive easements.

     21.3  Lessor grants and conveys to Lessee for the term of this Lease, non-
exclusive easements, appurtenant to the Land, on, over and under Lessor's
Adjoining Property for the following purposes reasonably related to Lessee's
business as set forth in Article 4: for the installation, maintenance,
operation, replacement, and repair of lines, pipes and other conduits for
communication, utilities (e.g., sewer, water, gas and electricity), goods,
services and materials and related facilities. If any of the communications,
goods, services, utilities or lines, pipes or conduits for them are supplied,
installed or otherwise controlled by Lessor, Lessor grants to Lessee, its
permitted successors and assigns, the non-exclusive right to use for the term of
this Lease, appurtenant to and coupled with the foregoing easement, such lines,
pipes and other conduits and related facilities.

     21.4  Lessor grants and conveys to Lessee for the term of this Lease, non-
exclusive easements and licenses, appurtenant to the Land, to tap into and use
the storm sewer lines and related facilities located on, over and under Lessor's
Adjoining Property for the following purposes reasonably related to Lessee's
business as set forth in Article 4: draining any and all surface water runoff
from the Land and the Improvements which may, from time to time, be located on
the Land; provided, however, that in no event shall Lessee be entitled to
utilize a capacity of the storm sewer lines and related facilities in excess of
that currently being utilized based upon the Improvements located on the Land as
of the date of this Lease.

     21.5  From the Commencement Date until the earlier of (i) the date that
Lessee no longer has the right to use Lessor's docks pursuant to the terms of
the SUMF Agreement, or (ii) the date the SUMF Agreement terminates for any
reason whatsoever, or (iii) the termination of this Lease, Lessor grants and
conveys to Lessee a non-exclusive easement, appurtenant to the Land, over only
so much of Lessor's

                                      28
<PAGE>

Resins Ground Lease

Adjoining Property as is reasonably necessary for the following purposes
reasonably related to Lessee's business as set forth in Article 4: access to
Lessor's docks.

     21.6   Lessor grants and conveys to Lessee for the term of this Lease, non-
exclusive easements and licenses, appurtenant to the Land, on, over and under
Lessor's Adjoining Property for the following purposes reasonably related to
Lessee's business as set forth in Article 4: (i) the location, operation and
maintenance of Lessee's dock tanks and the pipelines that serve Lessee's dock
tanks and (ii) space on Lessor's pipe racks.

     21.7   Notwithstanding anything contained herein to the contrary, Lessor
shall have the right at any time, and from time to time, to in good faith
designate, re-designate, locate and/or re-locate the easements referenced herein
to one or more areas in Lessor's Adjoining Property (each being referred to as a
"New Easement Area" or collectively as "New Easement Areas") by written
designation (being either in the form of metes and bounds descriptions of the
New Easement Area(s) or drawings or other written description which sufficiently
locates the same). At such time as a New Easement Area becomes effective, the
area previously utilized for such easement (the "Old Easement Area") shall be
deemed released from the grant(s) of easements set forth herein automatically
and without further action of the parties. Lessor and Lessee, however, each
agree to execute any and all instruments reasonably requested by the other to
reflect of record the identification of the New Easement Area(s) and/or the
release of the Old Easement Area(s) from the aforesaid easements including,
without limitation, amendment(s) of this Lease.

     21.8   Lessee shall be entitled to in good faith limit and restrict one or
more areas covered by the easements reserved by Lessor pursuant to the foregoing
provisions of this Article 21 to those portions of the easement areas on the
Land which actually are occupied or reasonably needed by Lessor to occupy and
operate its respective Improvements (each being referred to as a "Revised
Easement Area" or collectively as "Revised Easement Areas") by written
designation (being either in the form of the metes and bounds descriptions of
the Revised Easement Area(s) or drawings or other written description which
sufficiently locates the same). At such time as a Revised Easement Area becomes
effective, the area previously utilized for such easement (the "Previous
Easement Area") shall be deemed released from the Reservation(s) of Easements
set forth herein automatically and without further action of the parties. Lessor
and Lessee, however, each agree to execute any and all instruments reasonably
requested by the other to reflect the identification of the Revised Easement
Area(s) and/or the release of the Previous Easement Area(s) from the aforesaid
easements including, without limitation, amendment(s) of this Lease.

     21.9   Lessee hereby acknowledges and agrees that all easement rights
granted and conveyed to Lessee pursuant to this Article 21 may only be utilized
in connection with Lessee's use of the Land set forth in Article 4 of this
Lease.

     21.10  The easements and rightsgranted and conveyed to Lessee herein shall
be co-terminous with this Lease. Upon termination of this Lease, any and all
such easements and rights shall automatically terminate and be of no further
force and effect without any action on the part of any party hereto. The written
declaration of Lessor that this Lease has terminated and thus, the easements and
rights granted to Lessee herein have terminated, shall constitute conclusive
evidence to any third party of such terminations. Notwithstanding the foregoing,
Lessee agrees, upon termination of this Lease, to execute any and all
instruments reasonably requested by Lessor to evidence of record the termination
of such easements and rights.

                                      29
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Resins Ground Lease

     21.11  Lessor shall, at Lessor's expense, keep such portion of Lessor's
Adjoining Property on which the easements granted pursuant to this Article 21
are located in a clean and orderly condition, free of accumulations of dirt,
rubbish, snow, ice and unlawful obstructions. Lessor shall also keep such
portion of Lessor's Adjoining Property in good order and condition, ordinary
wear and tear excepted, and in accordance with standards followed by Lessor in
maintaining easements on all of Lessor's Adjoining Property.

     21.12  Lessor hereby irrevocably consents to the existence and encroachment
on Lessor's Adjoining Property during the term of this Lease of certain of
Lessee's Improvements, as shown on the survey of Rekha Engineering, Inc.
(Network Project No. 20000517/4), dated October 6, 2000, revised October 9, 2000
and any replacements of such Improvements ("Permitted Encroachments"). No rent
or other compensation shall be payable by Lessee to Lessor therefor. In addition
to the foregoing, Lessor grants and conveys to Lessee for the term of this
Lease, exclusive easements appurtenant to the Land, on, over or under Lessor's
Adjoining Property for any and all Permitted Encroachments on Lessor's Adjoining
Property, but only so long as the Permitted Encroachments are no longer utilized
by Lessee as a result of (i) reconfiguration of Lessee's Improvements or (ii)
abandonment thereof by Lessee.

     21.13  The easements and rights granted herein shall not be conveyed or
assigned except in conjunction with the assignment of this Lease.

                                  ARTICLE 22

                                    Notices

     All notices, requests, waivers, demands, directions and other
communications required or permitted to be given under this Agreement shall be
in writing and in English and shall be delivered personally, sent by facsimile
transmission, or e-mail, sent by nationally recognized overnight courier or
mailed by registered or certified mail (return receipt requested), postage
prepaid, to the Parties at their addresses set forth below (or such other
address for a Party as shall be specified by like notice form such Party to the
other Party). All such notices and other communications shall be deemed to have
been given and received, (i) in the case of personal delivery, delivery by
facsimile transmission or e-mail, on the date of delivery, if delivered during
business hours on a business day or, if not so delivered, the next succeeding
business day (ii) in the case of delivery by nationally recognized overnight
courier, on the second business day following dispatch and (iii) in the case of
mailing, on the fifth business day following such mailing.

If to Lessor, to:

          Shell Oil Company
          c/o Shell Chemical Company
          Deer Park Chemical Plant
          5900 Highway 225 East
          Deer Park, Texas 77536
          Attn:  Chemical Plant Manager
          Facsimile: (713) 246-6462

                                      30
<PAGE>

Resins Ground Lease

          with a copy to:

          Shell Oil Company
          c/o Shell Chemical Company
          One Shell Plaza
          910 Louisiana
          Houston, Texas 77002
          Attn: Vice President of Manufacturing
          Facsimile: (713) 241-6902

          with a copy to:

          Shell Oil Company
          c/o Shell Chemical Company
          One Shell Plaza
          910 Louisiana Street
          Houston, Texas 77002
          Attn: General Counsel
          Facsimile: (713) 241-1170

          with a copy to:

          Shell Oil Company
          One Shell Plaza
          910 Louisiana Street
          Houston, Texas 77002
          Attn: Director of Corporate Real Estate and Facilities
          Facsimile: (713) 241-3619

          If to Lessee, to:

          Shell Epoxy Resins LLC
          Deer Park Chemical Plant
          5900 Highway 225 East
          Deer Park, Texas 77536
          Attn: Resins Plant Manager
          Facsimile: (713) 246-7028

          with a copy to:

          Shell Epoxy Resins LLC
          1600 Smith Street, 24/th/ Floor
          Houston, Texas 77002
          Attn: President
          Facsimile: (713) 241-5333

          and:

                                      31
<PAGE>

Resins Ground Lease

          Apollo Management IV, L.P.
          1301 Avenue of the Americas
          New York, New York 10019
          Attn: Scott Kleinman
          Facsimile: (212) 515-3221

     A Party may change its notice details on giving notice to the other Party
of the change in accordance with this Section. That notice shall only be
effective on the date falling three (3) clear Business Days after the
notification has been received or such later date as may be specified in the
notice as set forth below. Any such notice so delivered will comply with the
terms of this Section.

                                  ARTICLE 23

                                 Miscellaneous

     23.1  If any term or provision of this Lease or the application thereof to
any person or circumstance shall, to any extent, be invalid and unenforceable,
the remainder of this Lease, or the application of such term or provisions to
persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term and provision of
this Lease shall be valid and be enforced to the fullest extent permitted by
law.

     23.2  Provisions setting forth obligations or conditions to be performed or
observed by Lessor or Lessee shall be construed as covenants by such Party to
perform or observe the same.

     23.3  The specific remedies to which either Lessor or Lessee may resort
under the terms of this Lease are cumulative and are not intended to be
exclusive of any other remedies or means of redress to which either Party may be
lawfully entitled in case of any breach or threatened breach by the other Party
of any provision of this Lease. The failure of either Party to insist in any one
or more cases upon the strict performance of any of the covenants of this Lease,
or to exercise any option herein contained, shall not be construed as a waiver
or relinquishment for the future strict performance of such covenant or option.
A receipt by Lessor of Rent with knowledge of the breach of any covenant or
agreement hereof shall not be deemed a waiver of such breach, and no waiver,
change, modification or discharge by either Party hereto of this Lease or of any
provision in this Lease, or surrender of the leasehold estate hereby created,
shall be deemed to have been made or shall be effective unless expressed in
writing and signed by both Lessor and Lessee. In addition to the other remedies
in this Lease provided, Lessor and Lessee shall be entitled to restraint by
injunction of the violation, or attempted or threatened violation, of any of the
covenants, conditions or provisions of this Lease or to a decree compelling
performance of any of such covenants, conditions or provisions.

     23.4  The captions of this Lease are for convenience only and in no way
define, limit or describe the scope or intent of this Lease nor in any way
affect this Lease.

     23.5  This Lease may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original and such counterparts
together shall constitute but one and the same indenture which shall be
sufficiently evidenced by any such executed counterparts.

     23.6  This Lease shall be construed and enforced in accordance with the
laws of the State of Texas.

                                      32
<PAGE>

Resins Ground Lease

     23.7   It is the intention of the Parties to create only the relationship
of lessor and lessee as to the lease of the Land and the relationship of grantor
and grantee as to the easements granted and conveyed. Nothing in this Lease
shall be construed to make the Parties partners or joint venturers or to render
either Party liable for any obligation of the other.

     23.8   Any terms and provisions of this Lease pertaining to rights, duties
or liabilities extending beyond the expiration or earlier termination of this
Lease shall survive the expiration or earlier termination of this Lease.

     23.9   Unless specifically and expressly provided otherwise in this Lease,
the terms and provisions of this Lease are for the sole benefit of Lessor and
Lessee, and no third party whatsoever, including but not limited to any lender
hereafter supplying financing with respect to the Improvements, is intended to
benefit herefrom.

     23.10  No agreement hereafter made shall be effective to change, modify,
discharge or effect an abandonment of this Lease in whole or in part unless such
agreement is in writing and signed by the Party against whom enforcement of the
change, modification, discharge or abandonment is sought.

     23.11  The covenants and agreements herein contained shall, subject to the
provisions of this Lease, bind and inure to the benefit of the successors and
permitted assigns of the respective Parties hereto.

     23.12  This Lease may not be recorded by Lessee or by anyone acting
through, under or on behalf of Lessee, but Lessee may record a memorandum of
this Lease substantially in the form of Exhibit D attached hereto.
                                        ---------

                                      33
<PAGE>

Resins Ground Lease

     WITNESS the due execution hereof as of the Effective Date.

                                    SHELL CHEMICAL COMPANY,
                                    on its own behalf and as authorized agent of
                                    Shell Oil Company pursuant to the Chemical
                                    Authorization Agreement dated March 1, 1995,
                                    as Lessor

                                    By:           /s/ D.G. Naugle
                                           -------------------------------
                                           Name:  D.G. Naugle
                                                --------------------------
                                           Title: Attorney-In-Fact
                                                 -------------------------

                                    SHELL EPOXY RESINS LLC,
                                    a Delaware limited liability company,
                                    as Lessee

                                    By:           /s/ D.G. Naugle
                                           ------------------------------
                                           Name:  D.G. Naugle
                                                -------------------------
                                           Title: Attorney-in-Fact
                                                 ------------------------

                                      34

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