Document:

Registration Rights Agreement

 EXECUTION COPY 
  
 Exhibit 10.44 
  
 $320,000,000 
  
 KOPPERS INC. 
  
 9 7/8% Senior Secured Notes Due 2013 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 September 30, 2003 
  
 Credit Suisse First Boston LLC 
 As Representative of the Several Purchasers 
 Eleven Madison Avenue 
 New York, New York 10010-3629 
  
 Dear Sirs: 
  
 Koppers Inc., a
Pennsylvania corporation (the “Issuer”), proposes to issue and sell to Credit Suisse First Boston LLC, USB Securities LLC, PNC Capital Markets, Inc., NatCity Investments, Inc., Fleet Securities, Inc., The Royal Bank of Scotland and
Wachovia Securities, Inc. (collectively, the “Initial Purchasers”), upon the terms set forth in a purchase agreement of even date herewith (the “Purchase Agreement”), $320,000,000 aggregate principal amount of its 9 7/8% Senior Secured Notes Due 2013 (the “Initial Securities”) to be unconditionally guaranteed (the
“Guaranties”) on a senior secured basis by each of the Issuer’s subsidiaries set forth on Schedule A to the Purchase Agreement (the “Guarantors” and, together with the Issuer, the “Company”). The Initial Securities
will be issued pursuant to an Indenture, dated as of October 15, 2003, (the “Indenture”) among the Issuer, the Guarantors named therein and J.P. Morgan Trust Company, N.A. (the “Trustee”). As an inducement to the Initial
Purchasers, the Company agrees with the Initial Purchasers, for the benefit of the holders of the Initial Securities (including, without limitation, the Initial Purchasers), the Exchange Securities (as defined below) and the Private Exchange
Securities (as defined below) (collectively the “Holders”), as follows: 
  
 1. Registered Exchange Offer. The Company shall, at its own cost, prepare and use its commercially reasonable efforts to, not later than 90 days after (or if the 90th day is not a business day, the first
business day thereafter) the date of original issue of the Initial Securities (the “Issue Date”), file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Exchange Offer Registration
Statement”) on an appropriate form under the Securities Act of 1933, as amended (the “Securities Act”), with respect to a proposed offer (the “Registered Exchange Offer”) to the Holders of Transfer Restricted Securities (as
defined in Section 6 hereof), who are not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Securities, a like aggregate principal
amount of debt securities (the “Exchange Securities”) of the Company issued under the Indenture and identical in all material respects to the Initial Securities (except for the transfer restrictions relating to the Initial Securities and
the provisions relating to the matters described in Section 6 hereof) that would be registered under the Securities Act. The Company shall use its commercially reasonable efforts to cause such Exchange Offer Registration Statement to become
effective under the Securities Act within 180 days (or if the 180th day is not a business day, the first business day thereafter) after the Issue Date of the Initial Securities and shall keep the Exchange Offer Registration Statement effective for
not less than 20 business days (or longer, if required by applicable law) after the date notice of the Registered Exchange Offer is mailed to the Holders (such period being called the “Exchange Offer Registration Period”). 

 If the Company effects the Registered Exchange Offer, the Company will be entitled to close the
Registered Exchange Offer 20 business days after the commencement thereof provided that the Company has accepted all the Initial Securities theretofore validly tendered in accordance with the terms of the Registered Exchange Offer. 
  
 Following the declaration of the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities electing to exchange the Initial Securities
for Exchange Securities (assuming that such Holder is not an affiliate of the Company within the meaning of the Securities Act, acquires the Exchange Securities in the ordinary course of such Holder’s business and has no arrangements with any
person to participate in the distribution of the Exchange Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such Exchange Securities from and after their receipt
without any limitations or restrictions under the Securities Act and without material restrictions under the securities laws of the several states of the United States. 
  
 The Company acknowledges that, pursuant to current interpretations by the Commission’s staff of Section 5 of the
Securities Act, in the absence of an applicable exemption therefrom, (i) each Holder which is a broker-dealer electing to exchange Initial Securities, acquired for its own account as a result of market making activities or other trading activities,
for Exchange Securities (an “Exchanging Dealer”), is required to deliver a prospectus containing the information set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in the “Exchange Offer Procedures” section and the
“Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of Distribution” section of such prospectus in connection with a sale of any such Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer and (ii) an Initial Purchaser if it elects to sell Exchange Securities acquired in exchange for Initial Securities constituting any portion of an unsold allotment is required to deliver a prospectus containing the
information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in connection with such sale. 
  
 The Company shall use its commercially reasonable efforts to keep the Exchange Offer Registration Statement effective and to amend and supplement the
prospectus contained therein, in order to permit such prospectus to be lawfully delivered by all persons subject to the prospectus delivery requirements of the Securities Act for such period of time as such persons must comply with such requirements
in order to resell the Exchange Securities; provided, however, that (i) in the case where such prospectus and any amendment or supplement thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such period shall be the lesser of
180 days and the date on which all Exchanging Dealers and the Initial Purchasers have sold all Exchange Securities held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Company shall make such prospectus and any
amendment or supplement thereto, available to any broker-dealer for use in connection with any resale of any Exchange Securities for a period of not less than 90 days after the consummation of the Registered Exchange Offer. 
  
 If, upon consummation of the Registered Exchange Offer, any Initial Purchaser
holds Initial Securities acquired by it as part of its initial distribution, the Company, simultaneously with the delivery of the Exchange Securities pursuant to the Registered Exchange Offer, shall issue and deliver to such Initial Purchaser upon
the written request of such Initial Purchaser, in exchange (the “Private Exchange”) for the Initial Securities held by the Initial Purchaser, a like principal amount of debt securities of the Company issued under the Indenture and
identical in all material respects (including the existence of 

  

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restrictions on transfer under the Securities Act and the securities laws of the several states of the United States, but excluding provisions relating to
the matters described in Section 6 hereof) to the Initial Securities (the “Private Exchange Securities”). The Initial Securities, the Exchange Securities and the Private Exchange Securities are herein collectively called the
“Securities”. 
  
 In connection with the Registered
Exchange Offer, the Company shall: 
  
 (a) mail
to each Holder a copy of the prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents; 
  
 (b) keep the Registered Exchange Offer open for not less than 30 days (or longer, if required by applicable
law) after the date notice thereof is mailed to the Holders; 
  
 (c) utilize the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan, The City of New York, which may be the Trustee or an affiliate of the Trustee; 
  
 (d) permit Holders to withdraw tendered Securities at any
time prior to the close of business, New York time, on the last business day on which the Registered Exchange Offer shall remain open; and 
  
 (e) otherwise comply with all applicable laws. 
  
 As soon as practicable after the close of the Registered Exchange Offer or the Private Exchange, as the case may be, the Company shall: 
  
 (x) accept for exchange all the Securities validly tendered
and not withdrawn pursuant to the Registered Exchange Offer and the Private Exchange; 
  
 (y) deliver to the Trustee for cancellation all the Initial Securities so accepted for exchange; and 
  
 (z) cause the Trustee to authenticate and deliver promptly
to each Holder of the Initial Securities, Exchange Securities or Private Exchange Securities, as the case may be, equal in principal amount to the Initial Securities of such Holder so accepted for exchange. 
  
 The Indenture will provide that the Exchange Securities will not be subject
to the transfer restrictions set forth in the Indenture and that all the Securities will vote and consent together on all matters as one class and that none of the Securities will have the right to vote or consent as a class separate from one
another on any matter. 
  
 Interest on each Exchange Security and
Private Exchange Security issued pursuant to the Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment date on which interest was paid on the Initial Securities surrendered in exchange therefor or, if no
interest has been paid on the Initial Securities, from the date of original issue of the Initial Securities. 
  
 Each Holder participating in the Registered Exchange Offer shall be required to represent to the Company that at the time of the consummation of the
Registered Exchange Offer (i) any Exchange 

  

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Securities received by such Holder will be acquired in the ordinary course of business, (ii) such Holder will have no arrangements or understanding with any
person to participate in the distribution of the Securities or the Exchange Securities within the meaning of the Securities Act, (iii) such Holder is not an “affiliate,” as defined in Rule 405 of the Securities Act, of the Company or if it
is an affiliate, such Holder will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not a broker-dealer, that it is not engaged in, and does not intend to engage
in, the distribution of the Exchange Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange Securities for its own account in exchange for Initial Securities that were acquired as a result of market-making activities or
other trading activities and that it will be required to acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Securities. 
  
 Notwithstanding any other provisions hereof, the Company will ensure that (i) any Exchange Offer Registration Statement and
any amendment thereto and any prospectus forming part thereof and any supplement thereto complies in all material respects with the Securities Act and the rules and regulations thereunder, (ii) any Exchange Offer Registration Statement and any
amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and (iii) any prospectus
forming part of any Exchange Offer Registration Statement, and any supplement to such prospectus, does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 2. Shelf Registration. If, (i) because of any change in law or in applicable interpretations thereof by the staff of the Commission, the Company is
not permitted to effect a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the Registered Exchange Offer is not consummated within 210 days of the Issue Date, (iii) any Initial Purchaser so requests with respect to the Initial
Securities (or the Private Exchange Securities) not eligible to be exchanged for Exchange Securities in the Registered Exchange Offer and held by it following consummation of the Registered Exchange Offer or (iv) any Holder (other than an Exchanging
Dealer) is not eligible to participate in the Registered Exchange Offer or, in the case of any Holder (other than an Exchanging Dealer) that participates in the Registered Exchange Offer, such Holder does not receive freely tradeable Exchange
Securities on the date of the exchange and any such Holder so requests, the Company shall take the following actions: 
  
 (a) The Company shall, at its cost, as promptly as practicable (but in no event more than 30 days after so required or requested pursuant
to this Section 2) file with the Commission and thereafter shall use its commercially reasonable efforts to cause to be declared effective a registration statement (the “Shelf Registration Statement” and, together with the Exchange Offer
Registration Statement, a “Registration Statement”) on an appropriate form under the Securities Act relating to the offer and sale of the Transfer Restricted Securities (as defined in Section 6 below) by the Holders thereof from time to
time in accordance with the methods of distribution set forth in the Shelf Registration Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf Registration”); provided, however, that no Holder (other than an Initial
Purchaser) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to such Holder. 
  
 (b) The Company shall use its commercially reasonable
efforts to keep the Shelf Registration Statement continuously effective in order to permit the prospectus included therein 

  

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to be lawfully delivered by the Holders of the relevant Securities, for a period of two years (or for such longer period if extended pursuant to Section 3(j)
below) from the date of its effectiveness or such shorter period that will terminate when all the Securities covered by the Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are no longer restricted securities (as defined in
Rule 144 under the Securities Act, or any successor rule thereof). The Company shall be deemed not to have used its commercially reasonable efforts to keep the Shelf Registration Statement effective during the requisite period if it voluntarily
takes any action that would result in Holders of Securities covered thereby not being able to offer and sell such Securities during that period, unless such action is required by applicable law. 
  
 (c) Notwithstanding any other provisions of this Agreement
to the contrary, the Company shall cause the Shelf Registration Statement and the related prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement, amendment or supplement, (i) to comply in all
material respects with the applicable requirements of the Securities Act and the rules and regulations of the Commission and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 3. Registration Procedures. In connection with any Shelf Registration contemplated by Section 2 hereof and, to the extent applicable, any
Registered Exchange Offer contemplated by Section 1 hereof, the following provisions shall apply: 
  
 (a) The Company shall (i) furnish to each Initial Purchaser, prior to the filing thereof with the Commission, a copy of the Registration
Statement and each amendment thereof and each supplement, if any, to the prospectus included therein and, in the event that an Initial Purchaser (with respect to any portion of an unsold allotment from the original offering) is participating in the
Registered Exchange Offer or the Shelf Registration Statement, the Company shall use its commercially reasonable efforts to reflect in each such document, when so filed with the Commission, such comments as such Initial Purchaser reasonably may
propose; (ii) include the information set forth in Annex A hereto on the cover, in Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose of the Exchange Offer” section and in Annex C hereto in the “Plan
of Distribution” section of the prospectus forming a part of the Exchange Offer Registration Statement and include the information set forth in Annex D hereto in the Letter of Transmittal delivered pursuant to the Registered Exchange Offer;
(iii) if requested by an Initial Purchaser, include the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in the prospectus forming a part of the Exchange Offer Registration Statement; (iv) include
within the prospectus contained in the Exchange Offer Registration Statement a section entitled “Plan of Distribution,” reasonably acceptable to the Initial Purchasers, which shall contain a summary statement of the positions taken or
policies made by the staff of the Commission with respect to the potential “underwriter” status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of Exchange Securities received by such broker-dealer in the Registered Exchange Offer (a “Participating Broker-Dealer”), whether such positions or policies have been publicly disseminated by the staff of the
Commission or such positions or policies, in the reasonable judgment of the Initial Purchasers based upon advice of counsel (which may be in-house counsel), represent the prevailing views of the staff of the Commission; and (v) in the case of a
Shelf Registration Statement, include the names of the 

  

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Holders, who propose to sell Securities pursuant to the Shelf Registration Statement, as selling securityholders. 
  
 (b) The Company shall give written notice to the Initial
Purchasers, the Holders of the Securities and any Participating Broker-Dealer from whom the Company has received prior written notice that it will be a Participating Broker-Dealer in the Registered Exchange Offer (which notice pursuant to clauses
(ii)-(v) hereof shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made): 
  
 (i) when the Registration Statement any post-effective amendment thereto has become effective; 
  
 (ii) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 
  
 (iii) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and 
  
 (iv) of the happening of any event that requires the Company to make changes in the Registration Statement or the prospectus in order that
the Registration Statement or the prospectus do not contain an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus, in light
of the circumstances under which they were made) not misleading; provided that such notice need only state the happening of such an event and need not identify or describe such event. 
  
 (c) The Company shall make every reasonable effort to obtain the withdrawal at the earliest possible time,
of any order suspending the effectiveness of the Registration Statement. 
  
 (d) The Company shall furnish to each Holder of Securities included within the coverage of the Shelf Registration, without charge, at least one copy of the Shelf Registration Statement and any post-effective amendment
thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits thereto (including those, if any, incorporated by reference). 
  
 (e) The Company shall deliver to each Exchanging Dealer and each Initial Purchaser, and to any other Holder
who so requests, without charge, at least one copy of the Exchange Offer Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if any Initial Purchaser or any such Holder requests, all
exhibits thereto (including those incorporated by reference). 
  
 (f) The Company shall, during the Shelf Registration Period, deliver to each Holder of Securities included within the coverage of the Shelf Registration, without charge, as many copies of the prospectus (including
each preliminary prospectus) included in the Shelf Registration Statement and any amendment or supplement thereto as such person may reasonably request. The Company consents, subject to the provisions of this Agreement, to the use of the prospectus

  

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or any amendment or supplement thereto by each of the selling Holders of the Securities in connection with the offering and sale of the Securities covered by
the prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 
  
 (g) The Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any Participating Broker-Dealer and such other persons
required to deliver a prospectus following the Registered Exchange Offer, without charge, as many copies of the final prospectus included in the Exchange Offer Registration Statement and any amendment or supplement thereto as such persons may
reasonably request. The Company consents, subject to the provisions of this Agreement, to the use of the prospectus or any amendment or supplement thereto by any Initial Purchaser, if necessary, any Participating Broker-Dealer and such other persons
required to deliver a prospectus following the Registered Exchange Offer in connection with the offering and sale of the Exchange Securities covered by the prospectus, or any amendment or supplement thereto, included in such Exchange Offer
Registration Statement. 
  
 (h) Prior to any
public offering of the Securities, pursuant to any Registration Statement, the Company shall register or qualify or cooperate with the Holders of the Securities included therein and their respective counsel in connection with the registration or
qualification of the Securities for offer and sale under the securities or “blue sky” laws of such states of the United States as any Holder of the Securities reasonably requests in writing and do any and all other acts or things
reasonably necessary or advisable to enable the offer and sale in such jurisdictions of the Securities covered by such Registration Statement; provided, however, that the Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in any jurisdiction where it is not then so subject. 
  
 (i) The Company shall cooperate with the Holders of the
Securities to facilitate the timely preparation and delivery of certificates representing the Securities to be sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as the
Holders may request a reasonable period of time prior to sales of the Securities pursuant to such Registration Statement. 
  
 (j) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 3(b) above during the period for which the
Company is required to maintain an effective Registration Statement, the Company shall promptly prepare and file a post-effective amendment to the Registration Statement or a supplement to the related prospectus and any other required document so
that, as thereafter delivered to Holders of the Securities or purchasers of Securities, the prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Initial Purchasers, the Holders of the Securities and any known Participating Broker-Dealer in accordance with paragraphs (ii)
through (v) of Section 3(b) above to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Initial Purchasers, the Holders of the Securities and any such Participating Broker-Dealers shall suspend
use of such prospectus, and the period of effectiveness of the Shelf Registration Statement provided for in Section 2(b) above and the Exchange Offer Registration Statement provided for in Section 1 above shall each be extended by the number of days
from and including the date of the giving of such notice to and including the date when the Initial Purchasers, the Holders of the 

  

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Securities and any known Participating Broker-Dealer shall have received such amended or supplemented prospectus pursuant to this Section 3(j). 

 
 (k) Not later than the effective date of the applicable
Registration Statement, the Company will provide a CUSIP number for the Initial Securities, the Exchange Securities or the Private Exchange Securities, as the case may be, and provide the applicable trustee with printed certificates for the Initial
Securities, the Exchange Securities or the Private Exchange Securities, as the case may be, in a form eligible for deposit with The Depository Trust Company. 
  

(l) The Company will comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the
Registered Exchange Offer or the Shelf Registration and will make generally available to its security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the provisions of Section
11(a) of the Securities Act, no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of the
Registration Statement, which statement shall cover such 12-month period. 
  
 (m) The Company shall cause the Indenture to be qualified under the Trust Indenture Act of 1939, as amended, in a timely manner and containing such changes, if any, as shall be necessary for such qualification. In the
event that such qualification would require the appointment of a new trustee under the Indenture, the Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture. 
  
 (n) The Company may require each Holder of Securities to be
sold pursuant to the Shelf Registration Statement to furnish to the Company such information regarding the Holder and the distribution of the Securities as the Company may from time to time reasonably require for inclusion in the Shelf Registration
Statement, and the Company may exclude from such registration the Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request. 
  
 (o) The Company shall enter into such customary agreements
(including, if requested, an underwriting agreement in customary form) and take all such other action, if any, as any Holder of the Securities shall reasonably request in order to facilitate the disposition of the Securities pursuant to any Shelf
Registration. 
  
 (p) In the case of any Shelf
Registration, the Company shall (i) make reasonably available for inspection by the Holders of the Securities, any underwriter participating in any disposition pursuant to the Shelf Registration Statement and any attorney, accountant or other agent
retained by the Holders of the Securities or any such underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and (ii) cause the Company’s officers, directors, employees, accountants and
auditors to supply all relevant information reasonably requested by the Holders of the Securities or any such underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement, in each case, as shall be reasonably
necessary to enable such persons, to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that the foregoing inspection and information gathering shall be coordinated on behalf of the Initial
Purchasers by you and on behalf of the other parties, by one counsel designated by and on behalf of such other 

  

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parties as described in Section 4 hereof and provided that the Company may require such persons to keep confidential any material non-public information
relating to the Company received by such persons and to abstain from trading in violations of applicable securities laws on the basis of such information. 
  
 (q) In the case of any Shelf Registration, the Company, if requested by any Holder of Securities covered thereby, shall cause (i) its
counsel (which may be in-house counsel) to deliver an opinion and updates thereof relating to the Securities in customary form addressed to such Holders and the managing underwriters, if any, thereof and dated, in the case of the initial opinion,
the effective date of such Shelf Registration Statement (it being agreed that the matters to be covered by such opinion shall include, without limitation, the due incorporation and good standing of the Company and its subsidiaries; the qualification
of the Company and its subsidiaries to transact business as foreign corporations; the due authorization, execution and delivery of the relevant agreement of the type referred to in Section 3(o) hereof; the due authorization, execution,
authentication and issuance, and the validity and enforceability, of the applicable Securities; the absence of undisclosed material legal or governmental proceedings involving the Company and its subsidiaries; the absence of governmental approvals
required to be obtained in connection with the Shelf Registration Statement, the offering and sale of the applicable Securities, or any agreement of the type referred to in Section 3(o) hereof; the compliance as to form of such Shelf Registration
Statement and any documents incorporated by reference therein and of the Indenture with the requirements of the Securities Act and the Trust Indenture Act, respectively; and, as of the date of the opinion and as of the effective date of the Shelf
Registration Statement or most recent post-effective amendment thereto, as the case may be, the absence from such Shelf Registration Statement and the prospectus included therein, as then amended or supplemented, and from any documents incorporated
by reference therein of an untrue statement of a material fact or the omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any such documents, in the light
of the circumstances existing at the time that such documents were filed with the Commission under the Exchange Act); (ii) its officers to execute and deliver all customary documents and certificates and updates thereof requested by any underwriters
of the applicable Securities and (iii) its independent public accountants to provide to the selling Holders of the applicable Securities and any underwriter therefor a comfort letter in customary form and covering matters of the type customarily
covered in comfort letters in connection with primary underwritten offerings, subject to receipt of appropriate documentation as contemplated, and only if permitted, by Statement of Auditing Standards No. 72. 
  
 (r) If a Registered Exchange Offer or a Private Exchange is
to be consummated, upon delivery of the Initial Securities by Holders to the Company (or to such other Person as directed by the Company) in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be, the Company
shall mark, or caused to be marked, on the Initial Securities so exchanged that such Initial Securities are being canceled in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be; in no event shall the Initial
Securities be marked as paid or otherwise satisfied. 
  
 (s) The Company will use its commercially reasonable efforts to (a) if the Initial Securities have been rated prior to the initial sale of such Initial Securities, confirm such ratings will apply to the Securities covered by a Registration
Statement, or (b) if the Initial Securities were not previously rated, cause the Securities covered by a Registration Statement to be rated 

  

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with the appropriate rating agencies, if so requested by Holders of a majority in aggregate principal amount of Securities covered by such Registration
Statement, or by the managing underwriters, if any. 
  
 (t) In the event that any broker-dealer registered under the Exchange Act shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning
of the Conduct Rules (the “Rules”) of the National Association of Securities Dealers, Inc. (“NASD”)) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in
respect thereof, or otherwise, the Company will assist such broker-dealer in complying with the requirements of such Rules, including, without limitation, by (i) if such Rules, including Rule 2720, shall so require, engaging a “qualified
independent underwriter” (as defined in Rule 2720) to participate in the preparation of the Registration Statement relating to such Securities, to exercise usual standards of due diligence in respect thereto and, if any portion of the offering
contemplated by such Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the yield of such Securities, (ii) indemnifying any such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 5 hereof and (iii) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Rules. 
  
 (u) The Company shall use its commercially reasonable
efforts to take all other steps necessary to effect the registration under the Securities Act of the Securities covered by a Registration Statement contemplated hereby. 
  
 4. Registration Expenses. The Company shall bear all fees and expenses incurred in connection with the
performance of its obligations under Sections 1 through 3 hereof (including the reasonable fees and expenses, if any, of Cravath, Swaine & Moore LLP, counsel for the Initial Purchasers, incurred in connection with the Registered Exchange Offer
not to exceed $20,000), whether or not the Registered Exchange Offer or a Shelf Registration is filed or becomes effective, and, in the event of a Shelf Registration, shall bear or reimburse the Holders of the Securities covered thereby for the
reasonable fees and disbursements not to exceed $20,000 of one firm of counsel designated by the Holders of a majority in principal amount of the Initial Securities covered thereby to act as counsel for the Holders of the Initial Securities in
connection therewith. 
  
 5. Indemnification. (a) The
Company agrees to indemnify and hold harmless each Holder of the Securities, any Participating Broker-Dealer and each person, if any, who controls such Holder or such Participating Broker-Dealer within the meaning of the Securities Act or the
Exchange Act (each Holder, any Participating Broker-Dealer and such controlling persons are referred to collectively as the “Indemnified Parties”) from and against any losses, claims, damages or liabilities, joint or several, or any
actions in respect thereof (including, but not limited to, any losses, claims, damages, liabilities or actions relating to purchases and sales of the Securities) to which each Indemnified Party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement or prospectus or in
any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration, or arise out of, or are based upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending 

  

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any such loss, claim, damage, liability or action in respect thereof; provided, however, that (i) the Company shall not be liable in any such case to the
extent that such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in a Registration Statement or prospectus or in any amendment or supplement
thereto or in any preliminary prospectus relating to a Shelf Registration in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion
therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall
not inure to the benefit of any Holder or Participating Broker-Dealer from whom the person asserting any such losses, claims, damages or liabilities purchased the Securities concerned, to the extent that a prospectus relating to such Securities was
required to be delivered by such Holder or Participating Broker-Dealer under the Securities Act in connection with such purchase and any such loss, claim, damage or liability of such Holder or Participating Broker-Dealer results from the fact that
there was not sent or given to such person, at or prior to the written confirmation of the sale of such Securities to such person, a copy of the final prospectus if the Company had previously furnished copies thereof to such Holder or Participating
Broker-Dealer if requested thereby; provided further, however, that this indemnity agreement will be in addition to any liability which the Company may otherwise have to such Indemnified Party. The Company shall also indemnify underwriters, their
officers and directors and each person who controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same extent as provided above with respect to the indemnification of the Holders of the Securities if requested
by such Holders. 
  
 (b) Each Holder of the
Securities, severally and not jointly, will indemnify and hold harmless the Company and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act from and against any losses, claims, damages or
liabilities or any actions in respect thereof, to which the Company or any such controlling person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out
of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration,
or arise out of or are based upon the omission or alleged omission to state therein a material fact necessary to make the statements therein not misleading, but in each case only to the extent that the untrue statement or omission or alleged untrue
statement or omission was made in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein; and, subject to the limitation set
forth immediately preceding this clause, shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company or any such controlling person in connection with investigating or defending any loss, claim,
damage, liability or action in respect thereof. This indemnity agreement will be in addition to any liability which such Holder may otherwise have to the Company or any of its controlling persons. 
  
 (c) Promptly after receipt by an indemnified party under
this Section 5 of notice of the commencement of any action or proceeding (including a governmental investigation), such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify
the indemnifying party of the commencement thereof; but the failure to notify the indemnifying party shall not relieve the indemnifying party from any liability that it may have under subsection (a) or (b) above except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party
otherwise than under 

  

 11 

 
subsection (a) or (b) above. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this Section 5 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense
thereof. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party unless such settlement (i) includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action, and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 
  
 (d) If the indemnification provided for in this Section 5 is unavailable or insufficient to hold harmless an indemnified party under
subsections (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to in subsection
(a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party on the other from the exchange of the Securities, pursuant to the
Registered Exchange Offer, or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as
well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company on the one hand or such Holder or such other indemnified party, as the case may be, on the other, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding any other provision of this Section 5(d), the
Holders of the Securities shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the sale of the Securities pursuant to a Registration Statement exceeds the amount of damages
which such Holders have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such indemnified party within the meaning of the Securities Act or the
Exchange Act shall have the same rights to contribution as such indemnified party and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as the
Company. 
  

 12 

 (e) The agreements contained in this Section 5 shall survive the sale of the Securities
pursuant to a Registration Statement and shall remain in full force and effect, regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party. 
  
 6. Additional Interest Under Certain Circumstances. (a) Additional
interest (the “Additional Interest”) with respect to the Initial Securities shall be assessed as follows if any of the following events occur (each such event in clauses (i) through (vi) below a “Registration Default”:

  
 (i) the Company fails to file an Exchange
Offer Registration Statement with the Commission on or prior to the 90th day after the Issue Date; 
  
 (ii) the Exchange Offer Registration Statement is not declared effective by the Commission on or prior to the 180th day after the Issue
Date or, if obligated to file a Shelf Registration Statement pursuant to Section 2(i), a Shelf Registration Statement is not declared effective by the Commission on or prior to the 180th day after the Issue Date; 
  
 (iii) the Registered Exchange Offer is not consummated on or
before the 40th day after the Exchange Offer Registration Statement is declared effective; 
  
 (iv) if obligated to file a Shelf Registration Statement pursuant to Section 2(ii), (iii) or (iv), the Company fails to file the Shelf
Registration Statement with the Commission on or prior to the 45th day (the “Shelf Filing Date”) after the date on which the obligation to file a Shelf Registration Statement arises; 
  
 (v) if obligated to file a Shelf Registration Statement
pursuant to Section 2(ii), (iii) or (iv), the Shelf Registration Statement is not declared effective on or prior to the 60th day after the Shelf Filing Date; or 
  
 (vi) after the Exchange Offer Registration Statement or the Shelf Registration Statement, as the case may
be, is declared effective, (A) such Registration Statement thereafter ceases to be effective; or (B) such Registration Statement or the related prospectus ceases to be usable (except as permitted in paragraph (b) below) in connection with resales of
Transfer Restricted Securities during the periods specified herein because either (1) any event occurs as a result of which the related prospectus forming part of such Registration Statement would include any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein in light of the circumstances under which they were made not misleading or (2) it shall be necessary to amend such Registration Statement, or supplement the related prospectus,
to comply with the Securities Act or the Exchange Act or the respective rules thereunder. 
  
 Additional Interest shall accrue on the Initial Securities over and above the interest set forth in the title of the Securities from and including the date on which any such Registration Default shall occur to but
excluding the date on which all such Registration Defaults have been cured, at a rate of 0.50% per annum for the first 90-day period immediately following the occurrence of a Registration Default, and such rate shall increase by an additional 0.25%
per annum with respect to each subsequent 90-day period until all Registration Defaults have been cured, up to a maximum additional interest rate of 1.5% per annum. Such Additional Interest shall be in addition to any other interest payable from
time to time with respect to the Initial Securities and the Exchange Securities. 
  

 13 

 (b) A Registration Default referred to in Section 6(a)(vi)(B) hereof shall be deemed not
to have occurred and be continuing in relation to a Shelf Registration Statement or the related prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a post-effective amendment to such Shelf Registration
Statement to incorporate annual audited financial information with respect to the Company where such post-effective amendment is not yet effective and needs to be declared effective to permit Holders to use the related prospectus or (y) other
material events, with respect to the Company that would need to be described in such Shelf Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is proceeding promptly and in good faith to amend or
supplement such Shelf Registration Statement and related prospectus to describe such events; provided, however, that in any case if such Registration Default occurs for a continuous period in excess of 30 days, Additional Interest shall be payable
in accordance with the above paragraph from the day such Registration Default occurs until such Registration Default is cured. 
  
 (c) Any amounts of Additional Interest due pursuant to Section 6(a) above will be payable in cash on the regular interest payment dates
with respect to the Initial Securities. The amount of Additional Interest will be determined by multiplying the applicable Additional Interest rate by the principal amount of the Initial Securities, multiplied by a fraction, the numerator of which
is the number of days such Additional Interest rate was applicable during such period (determined on the basis of a 360-day year comprised of twelve 30-day months), and the denominator of which is 360. 
  
 (d) ”Transfer Restricted Securities” means each
Security until (i) the date on which such Transfer Restricted Security has been exchanged by a person other than a broker-dealer for a freely transferable Exchange Security in the Registered Exchange Offer, (ii) following the exchange by a
broker-dealer in the Registered Exchange Offer of a Initial Security for an Exchange Note, the date on which such Exchange Note is sold to a purchaser who receives from such broker-dealer on or prior to the date of such sale a copy of the prospectus
contained in the Exchange Offer Registration Statement, (iii) the date on which such Initial Security has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement or (iv) the date on
which such Initial Securities is distributed to the public pursuant to Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act. 
  
 7. Rules 144 and 144A. The Company shall use its commercially reasonable efforts to file the reports required to be
filed by it under the Securities Act and the Exchange Act in a timely manner and, if at any time the Company is not required to file such reports, it will, upon the request of any Holder of Initial Securities, make publicly available other
information so long as necessary to permit sales of their securities pursuant to Rules 144 and 144A. The Company covenants that it will take such further action as any Holder of Initial Securities may reasonably request, all to the extent required
from time to time to enable such Holder to sell Initial Securities without registration under the Securities Act within the limitation of the exemptions provided by Rules 144 and 144A (including the requirements of Rule 144A(d)(4)). The Company will
provide a copy of this Agreement to prospective purchasers of Initial Securities identified to the Company by the Initial Purchasers upon request. Upon the request of any Holder of Initial Securities, the Company shall deliver to such Holder a
written statement as to whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to register any of its securities pursuant to the Exchange Act. 
  
 8. Underwritten Registrations. If any of the Transfer Restricted
Securities covered by any Shelf Registration are to be sold in an underwritten offering, the investment banker or investment bankers and 

  

 14 

 
manager or managers that will administer the offering (“Managing Underwriters”) will be selected by the Holders of a majority in aggregate
principal amount of such Transfer Restricted Securities to be included in such offering, subject to the Company’s consent to such selection, which consent shall not be unreasonably withheld or delayed. 
  
 No person may participate in any underwritten registration hereunder unless
such person (i) agrees to sell such person’s Transfer Restricted Securities on the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 
  
 9. Miscellaneous. 
  
 (a) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, except by the Company and the written consent of the Holders of a majority in principal amount of the Securities affected by such amendment, modification, supplement, waiver or consents.

  
 (b) Notices. All notices and other
communications provided for or permitted hereunder shall be made in writing by hand delivery, first-class mail, facsimile transmission, or air courier which guarantees overnight delivery: 
  
 (1) if to a Holder of the Securities, at the most current
address given by such Holder to the Company. 
  
 (2) if to the Initial Purchasers; 
  
 Credit Suisse First Boston LLC 
 Eleven Madison Avenue 
 New York, NY 10010-3629 
 Fax No.: (212) 325-8278 
 Attention: Transactions Advisory Group 
  
 with a copy to: 
  
 Cravath, Swaine & Moore LLP 
 Worldwide Plaza 
 825 Eighth Avenue 
 New York, NY 10019-7475 
 Attention: William J. Whelan, III 
  
 (3) if to the Company, at its address as follows: 
  
 Koppers Inc. 
 436 Seventh Avenue 
 Pittsburgh, PA 15219 
 Attention: Vice President, Law and Human Resources 
  

 15 

 with a copy to: 
  

Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 
 Attention: Richard E. Farley 
  
 All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three business days
after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator, if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier guaranteeing
next day delivery. 
  
 (c) No Inconsistent
Agreements. The Company has not, as of the date hereof, entered into, nor shall it, on or after the date hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or
otherwise conflicts with the provisions hereof. 
  
 (d) Successors and Assigns. This Agreement shall be binding upon the Company and its successors and assigns. 
  
 (e) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 (f) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof. 
  
 (g) Governing Law.
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. 
  
 (h) Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 
  
 (i) Securities Held by the Company. Whenever the
consent or approval of Holders of a specified percentage of principal amount of Securities is required hereunder, Securities held by the Company or its affiliates (other than subsequent Holders of Securities if such subsequent Holders are deemed to
be affiliates solely by reason of their holdings of such Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 
  

 16 

 If the foregoing is in accordance with your understanding of our agreement, please sign and return to the
Issuer a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the Initial Purchasers, the Issuer and the Guarantors in accordance with its terms. 
  

	 Very truly yours,
  
 KOPPERS, INC.

			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	WORLD-WIDE VENTURES CORP.
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	KOPPERS CONCRETE PRODUCTS, INC.
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	CONCRETE PARTNERS INC.
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	KOPPERS INDUSTRIES OF DELAWARE, INC.
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	KOPPERS REDEMPTION, INC.
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

 17 

	KOPPERS INVESTMENT SUBSIDIARY PTY LTD
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	KOPPERS AUSTRALIA PTY LTD
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	KOPPERS WOOD PRODUCTS PTY LTD
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	 KOPPERS CARBON MATERIAL & CHEMICALS
 PTY LTD

			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	 CONTINENTAL CARBON AUSTRALIA PTY
 LTD

			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	KOPPERS SHIPPING PTY LTD
			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

	 KOPPERS AUSTRALIA HOLDING COMPANY
 PTY LTD

			
	 	 	By	 	  

	 	 	 	 	 Name:
 Title:

  

 18 

 The foregoing Registration 
 Rights Agreement is hereby confirmed 
 and accepted as of the date first 
 above written. 
  
 CREDIT
SUISSE FIRST BOSTON LLC 
  
 Acting on
behalf of itself and 
 as the Representative of the 
 several
Initial Purchasers. 
  

	By:	 	 CREDIT SUISSE FIRST BOSTON LLC

			
	 	 	 By
	 	  

	 	 	 	 	 Name:
 Title:

  

 19 

 ANNEX A 
  
 Each broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning
of the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities received in exchange for Initial Securities where such Initial
Securities were acquired by such broker-dealer as a result of market-making activities or other trading activities. The Company has agreed that, for a period of 180 days after the Expiration Date (as defined herein), it will make this Prospectus
available to any broker-dealer for use in connection with any such resale. See “Plan of Distribution.” 

 ANNEX B 
  
 Each broker-dealer that receives Exchange Securities for its own account in exchange for Securities, where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution.” 

 ANNEX C 
  
 PLAN OF DISTRIBUTION 
  
 Each broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities received in exchange for Initial
Securities where such Initial Securities were acquired as a result of market-making activities or other trading activities. The Company has agreed that, for a period of 180 days after the Expiration Date, it will make this prospectus, as amended or
supplemented, available to any broker-dealer for use in connection with any such resale. In addition, until                     ,
20        , all dealers effecting transactions in the Exchange Securities may be required to deliver a prospectus.(1) 
  
 The Company
will not receive any proceeds from any sale of Exchange Securities by broker-dealers. Exchange Securities received by broker-dealers for their own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in
the over-the-counter market, in negotiated transactions, through the writing of options on the Exchange Securities or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing
market prices or negotiated prices. Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer or the purchasers of any
such Exchange Securities. Any broker-dealer that resells Exchange Securities that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such Exchange Securities may be
deemed to be an “underwriter” within the meaning of the Securities Act and any profit on any such resale of Exchange Securities and any commission or concessions received by any such persons may be deemed to be underwriting compensation
under the Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the
Securities Act. 
  
 For a period of 180 days after the Expiration
Date the Company will promptly send additional copies of this Prospectus and any amendment or supplement to this Prospectus to any broker-dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the Holders of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the Holders of the Securities (including any broker-dealers)
against certain liabilities, including liabilities under the Securities Act. 

	(1)	In addition, the legend required by Item 502(e) of Regulation S-K will appear on the back cover page of the Exchange Offer prospectus. 

 ANNEX D 
  

	 ̈	CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO. 

  

	 Name:
	 	 	  	 
	 	
	 	 
	 Address:
	 	 	  	 
	 	
	 	 
	 	 	 	  	 
	 	
	 	 

  
 If the undersigned is not a
broker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a broker-dealer that will receive Exchange Securities for its own account in exchange
for Initial Securities that were acquired as a result of market-making activities or other trading activities, it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange Securities; however, by so acknowledging
and by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.Memorandum of Agreement UPRRC and Koppers

 Exhibit 10.45 
  
 Note: An asterisk (*) indicates that material has been omitted pursuant to a request for confidential treatment. Such material has been
filed separately. 
  
 MEMORANDUM OF AGREEMENT 
  
 UNION PACIFIC RAILROAD COMPANY 
  
 And 
  
 KOPPERS INC. 
  
  
  
 August 1, 2003 
  

 INDEX 
  

	 TOPIC

	  	PAGE

		
	 PRODUCTS AND SERVICES; MINIMUM QUANTITIES
	  	1
		
	 CERTAIN RESPONSIBILITIES; SPECIFICATIONS
	  	2
		
	 SUPPLIER RUN WAREHOUSE AT NORTH LITTLE ROCK
	  	3
		
	 COMPENSATION
	  	3
		
	 RIGHT TO REJECTION AND INSPECTION
	  	4
		
	 INVENTORY
	  	4
		
	 FORCE MAJEURE
	  	5
		
	 WARRANTY – LIABILITY
	  	6
		
	 LOSS – DAMAGE
	  	6
		
	 ENVIRONMENTAL AND OTHER CONCERNS
	  	7
		
	 TERM
	  	8
		
	 CERTAIN PERFORMANCE GOALS
	  	8
		
	 FORECAST FOR CAPITAL EXPENDITURES
	  	9
		
	 ASSIGNMENT
	  	9
		
	 NOTICE
	  	9
		
	 NOTIFICATION OF FOLLOWING YEARS’ REQUIREMENTS
	  	10
		
	 BINDING EFFECT
	  	10
		
	 WAIVER
	  	10
		
	 SEVERABILITY
	  	11
		
	 AMENDMENTS
	  	11
		
	 EXECUTION IN COUNTERPARTS
	  	11

	 CAPTIONS
	  	11
		
	 ENTIRE AGREEMENT
	  	12
		
	 INTERPRETATION
	  	12
		
	 ARBITRATION OF DISPUTES
	  	12
		
	 GOVERNING LAW
	  	12

 SCHEDULES 
  
 SCHEDULE A - SPECIFICATIONS 
  
 SCHEDULE B - PRICE LIST 
  
 SCHEDULE C - PRICE ADJUSTMENTS - ANNUAL RATE REVISIONS 

 MEMORANDUM OF AGREEMENT 
 UNION PACIFIC RAILROAD COMPANY AND KOPPERS INC. 
  
 WHEREAS, Union Pacific Railroad Company (hereinafter referred to as “UP” or “Railroad”) desires to have Koppers Inc.
(hereinafter referred to as “Koppers”) (i) procure untreated cross ties and switch ties for treatment with wood preservative by Koppers, (ii) treat untreated cross ties, switch ties and timbers with preservative at the Koppers facility at
North Little Rock, Arkansas, and (iii) treat untreated cross ties with preservative at the Koppers facility at Denver, Colorado. (Kopper’s North Little Rock and Denver facilities are sometimes each referred to hereinafter as the
“Facility” and collectively as the “Facilities”. Cross ties and switch ties together are sometimes hereinafter referred to as “Forest Products”.) 
  
 WHEREAS, Koppers desires to provide the Railroad with untreated Forest Products and to provide various treating and
handling services related to the treatment of Forest Products. 
  
 NOW, THEREFORE, the parties herein agree to the following terms and conditions: 
  
 1.    PRODUCTS AND SERVICES; MINIMUM QUANTITIES 
  
 (a) Commencing with calendar year 2004 and for each calendar year thereafter during the term of this Agreement, Koppers agrees to purchase and procure on
behalf of Railroad, and Railroad agrees to purchase from Koppers, a guaranteed minimum volume of (i) * untreated Forest Products for use by Koppers in the treatment of Forest Products on behalf of the Railroad at the North Little Rock Facility and
(ii) * untreated Forest Products for use by Koppers in the treatment of Forest Products on behalf of the Railroad at the Denver Facility. 
  
 (b) Commencing with calendar year 2004 and for each calendar year thereafter during the term of this Agreement, Railroad agrees to purchase from Koppers a
guaranteed minimum volume of (i) * treated cross ties and * switch ties from the North Little Rock Facility, and (ii) subject to Section 1(c), below, * treated cross ties from the Denver Facility (the “Denver Treated Cross Tie Guaranteed
Minimum”); provided, however, that in no event shall Koppers be obligated to treat and supply in excess of 2,200,000 treated Forest Products to Railroad in any given calendar year; except that Railroad shall have the right of first refusal to
purchase Forest Products in excess of 2,200,000 if additional capacity becomes available at the Facilities. In the event Railroad purchases Forest Products from Koppers that are treated at facilities owned and/or operated by Koppers other than the
Facilities or the Koppers Grenada, Mississippi facility, the quantities of Forest Products treated at such other facilities will apply against the guaranteed minimum volumes set forth in this Subsection 1(b). As used herein, the 

 term “treated Forest Products” shall mean Forest Products meeting the Specifications (as hereinafter defined).

  
 (c) If Railroad fails to purchase the Denver Treated Cross Tie
Guaranteed Minimum during any calendar year during the term of this Agreement and Koppers is not in breach of any material obligation under this Agreement, including, without limitation, its obligation to provide untreated Forest Products as set
forth in Section 1(a), above, Railroad shall pay Koppers as liquidated damages an amount equal to $* times the difference between the Denver Treated Cross Tie Guaranteed Minimum and the number of treated Forest Products from the Denver Facility
actually purchased by Railroad during such year. For example, Railroad would pay Koppers $* as liquidated damages if during calendar year 2004 Railroad purchased a total of * treated Forest Products from the Denver Facility and Koppers were not in
breach of any material obligation hereunder ( *). 
  
 (d)]
Koppers’ obligation to supply treated Forest Products in the above quantities shall at all times be subject to Railroad’s ability to deliver wood preservative and untreated Forest Products sufficient to enable Koppers to treat untreated
Forest Products at said volumes. 
  
 2.    CERTAIN
RESPONSIBLITIES; SPECIFICATIONS 
  
 (a) In connection
with its procurement responsibilities for untreated Forest Products under this Agreement, Koppers will: (i) arrange and be responsible for transportation to the Facilities of all untreated Forest Products procured by Koppers under this Agreement
that Railroad is not required to transport under Section 2(c) of this Agreement; and (ii) unload, inspect and season untreated Forest Products at the Facilities. Title to untreated Forest Products procured by Koppers shall pass to Railroad upon
unloading, inspection and stacking or boultonizing at the applicable Facility. 
  
 (b) In connection with the supply to Railroad of treated Forest Products under this Agreement, Koppers shall: (i) unload, inspect and season untreated Forest Products; and (ii) unload wood preservative delivered by
Railroad; and (iii) provide the other services specified on Schedule B, including pressure treating of untreated Forest Products with wood preservative in accordance with the Specifications (as hereinafter defined); and (iv) load treated Forest
Products onto transportation provided by Railroad. It is understood that these services will be provided for both cross ties, switch ties and timbers at North Little Rock and for cross ties only at Denver. If Railroad determines that it is necessary
to store treated Forest Products at a Facility, Koppers will store the treated Forest Products; provided, however, Koppers shall not be obligated to store at the Facilities at any given time more than the following total quantities of treated Forest
Products: 
  

	 North Little Rock Facility: 
	 1,500,000 cubic feet of treated cross ties and switch ties (approximately 400,000 cross ties and switch tie equivalents).

  

 2 

	 Denver Facility
	  	600,000 cubic feet of treated cross ties (approximately 150,000 cross ties).

  
 The foregoing maximum Facility storage
quantities are based upon limits imposed by current permits applicable to the Facilities. If, subsequent to the execution of this Agreement, Koppers is not permitted, in its reasonable judgment, to store the foregoing quantities at the Facilities,
the foregoing quantities shall be reduced accordingly. Likewise, in the event Koppers, in its reasonable judgment, becomes permitted to store more than the foregoing quantities at the Facilities, it will so inform Railroad, and upon Railroad’s
request, will make reasonable efforts to accommodate increased storage, not to exceed permitted quantities. Koppers shall provide to Railroad a monthly report for each Facility, setting forth a detailed inventory of all treated Forest Products
stored at each Facility. 
  
 (c) Railroad will: (i) at its own
cost and expense, deliver to the Facilities all untreated Forest Products and other timber not procured by Koppers sufficient to meet the orders placed; and (ii) to the maximum extent possible, deliver untreated Forest Products procured by Koppers
to the Facilities at no cost to Koppers, it being understood and agreed that Railroad will, at its own cost and expense, deliver to the Denver Facility substantially all of the untreated Forest Products procured by Koppers for use at that Facility
and will deliver to the North Little Rock Facility as many untreated Forest Products procured by Koppers for use at that Facility as possible; and (iii) deliver to the Facilities wood preservative to be used in the treatment of Forest Products at
Railroad’s own cost and expense (it being understood that costs and expenses of switching railcars onto Railroad’s lines are included in the price for wood preservative); and (iv) arrange and provide transportation for and deliver treated
Forest Products from the Facilities to Railroad’s destination(s) at Railroad’s own cost and expense; provided, however, that Koppers will pay UP for UP’s cost to transport to a Facility untreated Forest Products procured for UP by
Koppers that are rejected by UP for quality-related reasons. 
  
 (d) Koppers will ensure that any Forest Products at either Facility that are owned by UP are (i) clearly identified (e.g., by signs) as the property of UP and (ii) segregated from other Koppers production with access thereto limited to
Koppers’ personnel with a need for such access to comply with Koppers’ obligations under this Agreement. 
  
 (e) As used herein, the term “Specifications” shall refer to the Grading Rules and Guidelines as set forth in Schedule A– Union Pacific
Railroad Grading Rules and Guidelines for Forest Products dated September 18, 2003, or such later revisions thereof as may be mutually agreed upon in writing by the parties from time to time. Should any condition develop not covered by the
Specifications, Koppers agrees to consult with the Railroad representative to reach a mutually agreeable conclusion. 
  

	3.	 	SUPPLIER RUN WAREHOUSE AT NORTH LITTLE ROCK 

  

 3 

 Koppers will continue to provide “supplier run warehouse” services to Railroad at its North
Little Rock Facility during the term of this Agreement in accordance with the current course of conduct between the parties, and Railroad shall compensate Koppers for said service as set forth on Schedule B; provided, however, Railroad may terminate
the provision of these services by Koppers upon thirty (30) days’ written notice to Koppers. 
  
 4. COMPENSATION 
  
 Schedule B to this Agreement prescribes agreed upon prices which UP shall pay to Koppers for treated Forest Products and related services rendered by Koppers. Such prices shall be revised as provided in Schedule C. All prices relating to
the supply of treated Forest Products are F.O.B. Koppers’ Facilities. Invoices for treated Forest Products and related services shall be presented by Koppers on a monthly basis to a designated representative of UP at each Facility (the “UP
Representative”) for approval and forwarding to UP’s Omaha headquarters, with signed, correct invoices paid electronically within * days of receipt by the Accounting Department in Omaha, NE. Said invoices shall include applicable charges
for Forest Products treated and related services performed during said month. 
  
 Pricing for procurement of untreated Forest Products shall be the applicable market price for untreated Forest Products at the time of their procurement, as determined by Koppers and Railroad in writing from time to
time. Koppers’ obligation and ability to purchase and procure the minimum annual volumes established in Section 1(a) hereof is contingent and predicated upon establishment of competitive market pricing for untreated Forest Products. Koppers and
Railroad agree to monitor the competitive issues relating to the procurement of untreated Forest Products and to adjust pricing as may be necessary to enable Koppers to fulfill its minimum annual procurement obligations established in Section 1(a).
Correct invoices for procurement of untreated Forest Products shall be presented on a daily basis and shall be paid electronically within * days of receipt. 
  
 5. RIGHT TO REJECTION AND INSPECTION 
  
 UP shall have the right (i) to reject, prior to shipment from either Facility, any treated Forest Products not meeting the Specifications, (ii) of
reasonable access to each Facility, (iii) to inspect and test the Forest Products at each Facility, (iv) to inspect the handling and treatment of all Forest Products at each Facility, including the right to test the strength of the treating
solutions, the purity of the chemicals employed and the amounts absorbed by each charge, and (v) to inspect the fire protection and security measures provided by Koppers at each Facility. The basic treating records of Koppers, insofar as they relate
to this Agreement, shall be open at all reasonable times to inspection by the Railroad during regular office hours. UP, its agents, employees or others entering for or on behalf of UP upon the Facilities shall at all times be subject to
Koppers’ rules and regulations applicable to visitors to the Facilities. 
  

 4 

 UP agrees to defend, indemnify and hold harmless Koppers against all loss resulting from personal injury
(including death), to the extent caused by UP, its agents, employees or other entering for or on behalf of UP upon the Facility pursuant to this Agreement. Koppers agrees to defend, indemnify and hold harmless UP against all loss resulting from
personal injury (including death), to the extent caused by Koppers, its agents, employees or others entering for or on behalf of Koppers upon the property of UP pursuant to this Agreement. Notwithstanding the foregoing provisions of this Section 5,
it is agreed that neither party shall be liable for any indirect or consequential loss or damage, including, but not limited to, loss of use, loss of profit or business interruption. 
  
 6.    INVENTORY 
  

UP shall retain ownership of, and Koppers shall assume custodial responsibility for, all Forest Products tendered to Koppers for treatment pursuant to
this Agreement. UP and Koppers shall jointly conduct annual physical inventory and monthly reconciliation of Forest Products at each Facility and shall be jointly responsible for the accuracy thereof. Koppers assumes custodial responsibility for
Forest Products inventory owned by UP and stored on Koppers’ property. All treated and untreated Forest Products of UP at the Facility (1) shall be segregated by Koppers from other material/product at the Facility, (2) shall not be co-mingled
with any other inventory, and (3) shall be clearly identified as the property of UP. Upon termination of this Agreement for any reason, or if Koppers otherwise for any reason ceases to provide treating services to UP at a Facility, UP shall have the
right to immediate possession of Forest Products owned by UP and stored at the Facilities. 
  
 7.    FORCE MAJEURE 
  
 Neither party shall be liable for any delay in the shipment or acceptance of the Forest Products, or for any other interruption, delay, loss, or damage which is incurred or suffered as a result of a Force Majeure
occurrence (as hereinafter defined), and the obligations of the party subject to a Force Majeure occurrence shall be excused and suspended during the period such Force Majeure remains in effect, but only to the extent made necessary by such Force
Majeure; provided that both parties shall perform in accordance with this Agreement when any such interfering causes shall have been removed. “Force Majeure” as used herein shall mean a condition or cause beyond the reasonable
control of a party which reasonably shall prevent the affected party from performing its obligations in the usual and normal course of its business or shall make the performance of its obligations commercially unreasonable, unfeasible or
impracticable, including but not limited to: (a) acts of God, including floods, storms, earthquakes, hurricanes, tornadoes, or other severe weather or climatic conditions; (b) acts of public enemy, war, blockade, insurrection, embargo or riot; (c)
fire, wreck, washout, equipment failure or explosion; (d) strike, lockout, or labor dispute; (e) shortage of energy; (f) law, ordinance, regulation, directive, order, interpretation or enforcement policy presently existing or hereinafter promulgated
by any federal, state or local authority, or any agency or division thereof (relating by way of example, but not of limitation, to the environment 
  

 5 

 or protection of environmental or ecological conditions) (hereinafter collectively the foregoing referred to as
“law”), including any law affecting the operation of Koppers’ Facilities or its ability to produce, sell and treat with wood preservative; (g) shortage of or inability to obtain suitable raw materials (including wood preservative)
from usual sources of supply; or (h) other circumstance beyond a party’s control not enumerated in the foregoing. It is agreed that each party shall use due diligence, good faith, and all reasonable efforts to remove such Force Majeure
conditions, but that no party shall have to settle a strike contrary to its best interests. The occurrence of a Force Majeure situation shall act to suspend performance under this Agreement to the extent of and for the duration of the event of Force
Majeure; provided, however, that (i) the duty of the Railroad to pay for delivered treated Forest Products shall never be suspended, and (ii) in the event of an event of Force Majeure affecting one of the facilities that has, or is reasonably
expected to have, a duration of in excess of sixty (60) days, Koppers will, upon Railroad request, use reasonable efforts to provide treatment of UP’s Forest Products at another of Koppers’ treatment facilities acceptable to Railroad on
terms and conditions mutually agreed upon by the parties at the prices set forth on Schedule B. 
  
 8.     WARRANTY – LIABILITY 
  
 Koppers warrants to UP that it will perform the services in a good and workmanlike manner and that the treated Forest Products delivered to UP under this
Agreement will meet the Specifications and will be free from material defects in workmanship. KOPPERS MAKES NO OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WITH RESPECT TO THE SERVICES PROVIDED HEREUNDER OR WITH RESPECT TO MATERIALS
SUPPLIED IN CONNECTION WITH THIS AGREEMENT, INCLUDING THE TREATED FOREST PRODUCTS, WHETHER THEY ARE USED ALONE OR IN COMBINATION WITH OTHER MATERIALS AND HEREBY DISCLAIMS ANY OTHER REPRESENTATIONS OR WARRANTIES, INCLUDING, WITHOUT LIMITATION,
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 
  
 The maximum liability arising from failure to meet the above warranties shall be refund of the price paid by UP for the treated Forest Products not meeting such warranties or, at Koppers’ option, replacement of
nonconforming treated Forest Products actually shipped. As a condition of any such refund or replacement, UP shall give Koppers written notice of a claim within one hundred and twenty (120) days of shipment from the Facility; provided, however, that
a claim that the treated Forest Products are a species or quality not meeting the Specifications may be made anytime within seventy-two (72) months after shipment from the Facility. Failure to give such notice shall constitute a waiver of all claims
in respect thereto. 
  
 It is agreed that Koppers shall not be
liable for any indirect or consequential loss or damage, including, but not limited to, loss of use, loss of profit or business interruption. 
  

 6 

 The parties intend and agree that the above limitations of liability are to be effective whether the
liability involved is founded on Koppers’ breach of contract, breach of warranty, tort (including active negligence and strict liability) or whether the liability involved is founded on Koppers’ sole negligence. 
  
 9.    LOSS – DAMAGE 
  
 All untreated Forest Products after inspection and acceptance, and
all treated Forest Products while at the Facility, shall be and remain property of UP, and UP shall be responsible for the filing of all tax returns with respect to such property and the payment of all taxes, if any, thereon. Koppers shall be liable
for the destruction, loss of or damage to the Forest Products and other property of UP at the Facility to the extent such destruction, loss or damage is caused by the negligence of Koppers, its employees or agents. Koppers agrees to maintain the
area in which the Forest Products and treated Forest Products are stored with such reasonable protection against fire and theft as is commensurate with the values involved. Koppers shall develop and implement written security and spill prevention
control and countermeasure (SPCC) plans as may be required by applicable laws and regulations and shall otherwise comply with applicable laws and regulations concerning Facility security. Risk of loss for treated Forest Products shall transfer to
Railroad upon loading of such Forest Products onto railcars or other means of transportation. 
  
 10.    ENVIRONMENTAL AND OTHER CONCERNS 
  
 In the event any law, ordinance, regulation, directive, order, interpretation or enforcement policy presently existing or hereinafter promulgated by any
federal, state or local authority, or any agency or division thereof (relating by way of example, but not of limitation, to the environment or protection of environmental or ecological conditions) requires, in the reasonable opinion of Koppers, (a)
changes in the manner in which a Facility is presently being operated, or requires an expenditure of monies for capital improvements that Koppers, in its sole and absolute judgment, determines will make the continued operation of this Agreement
undesirable or (b) prohibits the use of the wood preservative or makes the use of such wood preservative commercially unreasonable, unfeasible or impracticable, Koppers may, upon one hundred eighty (180) days’ prior written notice to UP,
terminate this Agreement. In the event of a termination under clause (a) above, Koppers will, upon request, use reasonable efforts to provide treatment of UP’s Forest Products at another of Koppers’ treatment facilities acceptable to UP,
all of which treatment shall be done on terms and/or conditions to be mutually agreed upon by both parties at prices set forth in Schedule B. In the event of a termination under this Section 10, all minimum treating requirements as set forth in the
“Minimum Quantities” section of this Agreement are eliminated for the year of termination, and Koppers agrees to waive the charge for yard to car or truck on all untreated Forest Products returned to UP on account of such termination.

  

 7 

 Nothing contained herein shall be construed or interpreted as making UP a generator of hazardous
substances or wastes or an operator of a treatment, storage or disposal facility pursuant to the provisions of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the Resource Conservation Recovery Act, (RCRA) or any
state statute governing the generation, treatment, storage and disposal of hazardous substances or wastes. 
  
 Koppers shall assume and be responsible for all compliance with the provisions of RCRA, CERCLA and any state statute governing the generation and handling
of hazardous substances or wastes at the Facilities. 
  
 If,
notwithstanding the provisions of this section, UP shall be interpreted to be a hazardous substance or waste generator or operator of a treatment, storage or disposal facility under RCRA, CERCLA or any state statute governing the treatment, storage
and disposal of hazardous waste, as a result of the activities provided for hereunder which occur at the Facilities, Koppers agrees to indemnify, hold harmless and defend UP for any and all costs, damages or expenses of any sort resulting from such
an interpretation. 
  
 If, at a future date after execution of
this Agreement, the environmental regulatory authorities make it mandatory that treated Forest Products be stored in a manner other than outdoors, such as on concrete pads and under roof, for example, and the UP is desirous of storing such treated
materials, it is understood that the pricing portion of this Agreement is subject to change and that an equitable method for recovering the added operating cost entailed in such a “protected storage” situation shall be negotiated and
agreed by both parties. 
  
 11.    TERM

  
 The term of this Agreement shall commence on August 1,
2003 and shall continue through December 31, 2009 (the “Initial Term”), unless earlier terminated as specifically provided in this Agreement. Thereafter, this Agreement shall automatically renew for successive periods of two (2) years each
(each, a “Renewal Term”) unless (i) Koppers gives two years’ written notice to Railroad of its intention to terminate the Agreement upon expiration of the Initial Term or any Renewal Term, as applicable, or (ii) Railroad gives twelve
(12) months’ written notice to Koppers of its intention to terminate this Agreement upon expiration of the Initial Term or any Renewal Term, as applicable. 
  

12.    CERTAIN PERFORMANCE GOALS 
  
 During the term of this Agreement Railroad and Koppers will work jointly in an effort to find, develop and implement cost savings in the
procurement of untreated Forest Products and treating process at the Facilities. Any such cost savings jointly agreed upon by the parties that are implemented by Koppers shall be shared equally between Railroad and Koppers. 
  

 8 

 If requested by the UP Representative, Koppers will use reasonable efforts to achieve or exceed the
performance goals set forth below to the extent reasonably possible in light of the applicable circumstances. : 
  
 North Little Rock Facility: 
  

	 	(a)	 	Band 25,000 Ties/Week 

	 	(b)	 	Treat – 25,000 Dry Ties/Week or Treat – 17,500 Green Ties/Week 

	 	(c)	 	Load – 42,000 Treated Ties/Week 

	 	(d)	 	Maintain banded inventory of 15,000 8' ties and 75,000 9' Ties and rotate inventory at a minimum of once per year. Old inventory will have a preference over new production
for shipment. 

	 	(e)	 	Process all uninspected crossties within 15 working days of receipt. In a crisis mode (crosstie deliveries exceeding 150,000 ties per month), Koppers will process all Forest
Products within 20 working days of receipt, barring other extraordinary circumstances. 

	 	(f)	 	Complete end-plating of Forest Products within 15 working days of when decision was made to end-plate. 

	 	(g)	 	All inbound cars unloaded within six (6) working days, with a goal of achieving unloading in five (5) days. 

  
 Denver Facility: 
  

	 	(a)	 	Band 17,300 Ties/Week 

	 	(b)	 	Treat – 17,300 Dry Ties/Week or Treat – 12,110 Green Ties/Week 

	 	(c)	 	Load – 30,000 Treated Ties/Week 

	 	(d)	 	Maintain banded inventory of 50,000 9' Ties and rotate inventory at a minimum of once per year. Old inventory will have a preference over new production for shipment.

	 	(e)	 	Process all uninspected crossties within 15 working days of receipt. In a crisis mode (crosstie deliveries exceeding 100,000 ties per month), Koppers will process all Forest
Products within 20 working days of receipt, barring other extraordinary circumstances. 

	 	(f)	 	Complete end-plating of Forest Products within 15 working days of when decision was made to end-plate. 

	 	(g)	 	All inbound cars unloaded within six (6) working days, with a goal of achieving unloading in five (5) days. 

	 	(h)	 	Place banding station in loading area to allow direct loading into cars thus reducing yard to car charges. 

  
 For information purposes only, the parties acknowledge that currently the
North Little Rock Facility has the maximum capacity to produce approximately * cross ties per year and approximately * switch ties per year. 
  

	13.	 	FORECAST FOR CAPITAL EXPENDITURES 

  

 9 

 Koppers estimates that during the Initial Term it will spend a minimum of $* at its North Little Rock
Facility (to, among other things, undertake a good faith effort to establish end plating operations prior to air seasoning of crossties) and a minimum of $* million at its Denver Facility (to, among other things, give it the ability to inspect and
stack eight foot (8’) ties). These expenditures are expected to provide each of these Facilities with ongoing safety, quality and productivity improvements to meet or exceed UP requirements. Koppers shall provide to Railroad’s
Director-Forest Products a copy of its December “Additions & Replacements in Progress” each year to support expenditures at the Facilities. 
  
 14.    ASSIGNMENT 
  
 This Agreement may not be assigned, in whole or in part, by either party without the prior written consent of the other party, which consent shall not be
unreasonably withheld. 
  
 15.    NOTICE

  
 All notices, certificates, consents or other
communications required or permitted to be given or made under this Agreement shall be in writing and shall be deemed properly served (a) if by hand delivery, telecopy or other facsimile transmission, on the day and at the time on which delivered to
the intended recipient at the address or telecopier number set forth in this Agreement, provided, however, in the case of telecopy or facsimile transmission, said notices, certificates, consents or other communications must also be sent the same day
via certified or registered mail delivery; (b) if sent by mail, on the third business day after the day on which deposited in certified or registered mail, postage prepaid, return receipt requested, addressed to the intended recipient at its address
set forth in this Agreement; or (c) if by Federal Express or other reputable express mail service for overnight delivery, on the next business day after delivery to such express mail service, addressed to the intended recipient at its address set
forth in this Agreement. All notices required or permitted to be served upon either party hereunder will be directed to: 
  
 KOPPERS INC. 
 Sales Manager, Class I Railroads 
 436 7th Avenue 
 Koppers Building, Room 2050 
 Pittsburgh, PA 15219 
  
 UNION PACIFIC RAILROAD COMPANY 
 Director—Forest Products 
 1416 Dodge Street, Room 200 
 Omaha, NE 68179-0200 
  
 Either
party may, from time to time by written notice to the other, change its address or any designated representative for receipt of notices. 
  

 10 

 16.    NOTIFICATION OF FOLLOWING YEARS’ REQUIREMENTS 
  
 On or around November 15 of each year, UP shall advise Koppers of its
approximate estimate of the number of treated Forest Products required by it from Koppers for the following year and the anticipated amount of untreated Forest Products to be shipped by UP to the Facilities. This estimate is to be updated on a
monthly basis by a Railroad setup detailing all treated Forest Products required for the Facility for that given month. Railroad will advise Koppers during the course of the year as its plans change and the parties will work together reasonably to
accommodate rescheduling necessitated by such changes; provided, however, that nothing in this Section shall operate to relieve the Railroad of its minimum purchase obligations under this Agreement. 
  
 17.    BINDING EFFECT 
  
 This Agreement shall inure to the benefit of and shall be binding upon the
parties and their respective successors and permitted assigns, subject, however, to the limitations contained herein. No provision hereof shall, however, be construed to impose any personal or pecuniary liability upon any officer or employee of the
parties. This Agreement shall not confer or be construed as conferring any rights, benefits or remedies on any person or entity not named as a party hereto. 
  
 18.    WAIVER 
  
 To the extent permitted by law, no delay or omission to exercise any right or power accruing upon any event of default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be expedient. Any such waiver shall be in writing and signed by the party against whom it is to operate. In order
to entitle either party to exercise any remedy hereunder, it shall not be necessary to give any notice other than as may be required in this Agreement. If any covenant contained in this Agreement should be breached by either party and thereafter
waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach under this Agreement. 
  
 19.    SEVERABILITY 
  
 If any term or provision of this Agreement or the application thereof to any party or circumstance be judged invalid or
unenforceable to any extent, the remainder of this Agreement and the application of such terms and provisions to persons or circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby, except as it might
be necessary to effectuate the intent of the parties, and each provision of this Agreement shall be valid and be enforceable to the fullest extent permitted by law. 
  

 11 

 20.     AMENDMENTS 
  
 This Agreement may not be amended or altered except by the written agreement of the parties. Unless otherwise explicitly
provided therein, no such amendment shall be deemed to extend to any prior or subsequent matter, whether or not similar to the subject matter of such amendment. Any printed term contained in any purchase order or other form or document used by
Railroad to order treated Forest Products or in any acknowledgment or other form or other document used by Koppers shall be null and void and of no force and effect, and this Agreement will take precedence over and supercede any such terms, unless
such terms have been agreed to in writing by both parties. 
  
 21.
    EXECUTION IN COUNTERPARTS 
  
 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 
  
 22.     CAPTIONS 
  

The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions of
this Agreement. 
  
 23.     ENTIRE AGREEMENT

  
 This Agreement constitutes the entire agreement between
the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings between the parties relating to the subject matter hereof. Any Schedule referenced herein is attached hereto and
incorporated herein by such reference. 
  
 24.
    INTERPRETATION 
  
 If any
provision in any Schedule provided with the original executed copy of this Agreement or as amended and signed by both parties, is inconsistent with the terms of the body of this Agreement, the provision in the Schedule shall be controlling. All
words used in this Agreement will be construed to be of such gender or number, as the circumstances require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms. 
  
 25.     ARBITRATION OF DISPUTES 
  
 Any controversy or claim arising out of or relating to this Agreement, or
breach thereof, shall be settled in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. Any
arbitration 
  

 12 

 hereunder shall take place (i) in Pittsburgh, Pennsylvania if UP makes the demand for arbitration, and (ii) in Omaha,
Nebraska if Koppers makes the demand for arbitration. To the extent reasonably practicable, both parties agree to continue performing their respective obligations under this Agreement while the dispute is being resolved. All matters relating to any
arbitration hereunder shall be maintained in confidence. Nothing contained in this Section shall prohibit either party from seeking equitable relief without first resorting to arbitration under such circumstances as that party’s interests
hereunder and in its property will be otherwise compromised. 
  
 26.
GOVERNING LAW 
  
 All questions with respect to the
construction of this Agreement and the rights and liabilities of the parties hereunder shall be determined in accordance with the laws and regulations of the State of Nebraska, except any such laws or regulations that would require the law or
regulation of another jurisdiction to apply. 
  
 WHEREOF,
the parties hereto have executed this Agreement this 3rd day of November, 2003, to be effective as of August 1, 2003. 
  
 [SIGNATURES APPEAR ON NEXT PAGE.] 
  

	KOOPERS INC.
	
	By:                                      
                                        
                  
	 Name

	
	 Title                                     
                                        
            

  

	UNION PACIFIC RAILROAD COMPANY
	
	By:                                      
                                        
                  
	 
	
	 

  

 13 

	 Name

	                                       
                                        
                       

	         Title  

  

 14 

 SCHEDULE A 
  

Union Pacific Railroad Grading Rules and Guidelines for Forest Products dated  
 September 18, 2003 
  
 VIEW ON UPRR WEBSITE 
 http://www.uprr.com/suppliers/sup_ovr/forest_prod.pdf 
  

 15 

 SCHEDULE B 
  

Pricing 
  

 16 

 SCHEDULE B (Denver) 
  
 Union Pacific Railroad—Wood Treating & Preservative Price Schedule 
  

	 1. PRESERVATIVE:
	  	P2 Solution deadhead	  	* Gallon
	 	  	P1 Coal Tar creosote deadhead	  	* Gallon
	 	  	 	  	 
	 	  	SEE ITEM #12.	  	 
	 	  	 	  	 
	 2. TREATING CROSSTIES:
	  	FIRST 600,000 CROSSTIES	  	 
	 	  	6x8x8'	  	* EA
	 	  	7x9x8'	  	* EA
	 	  	7x9x8'6	  	* EA
	 	  	7x9x9'	  	* EA
	 	  	 	  	 
	 	  	600,001 - 800,000	  	 
	 	  	6x8x8'	  	* EA
	 	  	7x9x8'	  	* EA
	 	  	7x9x8'6	  	* EA
	 	  	7x9x9'	  	* EA
	 	  	 	  	 
	 	  	OVER 800,000	  	 
	 	  	6x8x8'	  	* EA
	 	  	7x9x8'	  	* EA
	 	  	7x9x8'6	  	* EA
	 	  	7x9x9'	  	* EA
	 	  	 	  	 
	 ***
	  	An additional charge of $0.10 per tie will be effective for all pre bored ties.	  	 
	 	  	 	  	 
	 ***
	  	A credit of $0.75 per tie will be applied for the non handling of pre inspected/pre processed ties.	  	 
	 	  	 	  	 
	 3. END PLATING 7" GREEN CROSSTIES: for air seasoning (Includes Robbins/Chemstar plate price f.o.b. Denver of
$0.275/ea & labor cost of $0.87/tie. Plate price is based on current end plate pricing and is subject to change.)
	  	* TIE

	 	  	 	  	 
	Note: Plates to be ordered in full truckload quantities (71,280 plates per truck). Plates to be invoiced upon
application.
	  	 
	 	  	 	  	 
	4. TREATING PILING & POLES: (includes handling & sorting)
	  	* CF

	 	  	 	  	 
	5. CREDIT REJECT TIES: (rail shipments only)
	  	* EA

	 	  	 	  	 
	6. ARTIFICIAL SEASONING:
	  	* CF/HR

	 	  	 	  	 
	7. LOADING MATERIAL:
	  	YARD TO GONS - CROSSTIES
	  	* EA

	 	  	YARD TO GONS - PILING & POLES
	  	* LF

	 	  	ON BULKHEAD FLAT CARS
	  	* MBF

	 	  	ON CENTER BEAMS
	  	* CAR

 

Page 1 of 2 

	 8. UNLOADING MATERIAL:
	 	TREATED TIES	  	* EA
	 	 	TREATED SWITCHTIES	  	* MBF
	 	 	LUMBER & TIMBER	  	* MBF
	 	 	PILING & POLES	  	* LF
			
	 9. LIFT TRUCK/PRENTICE:
	 	 	  	* HR
			
	 10. BUNDLING:
	 	CROSSTIES	  	* TIE
			
	 11. MISC. SERVICES:
	 	 COST OF MATERIAL + 10% & LABOR
 (including fringes) + 25% for supervision
	  	 
			
	 12. ESCALATION:
	 	 	  	 
	 	 	*	  	 
	 2004
	 	*	  	 
	 2005 & 2006
	 	*	  	 
	 2007 & beyond
	 	*	  	 

  
 TAXABLE ITEMS @ 02.9%
COLORADO TAX 
 @ 00.7% ADAMS COUNTY 
 @ 00.8% TRANSIT TAX 
  
 ALL OTHER ITEMS ARE NON-TAXABLE. 
  

 Page 2 of 2 

 SCHEDULE B (North Little Rock) 
  
 Union Pacific Railroad—Wood Treating & Preservative Price Schedule 
  

	 1. 1. STAFF SUPPORT:
	 	 	  	*	  	MONTH
				
	 2.     PRESERVATIVE:
	 	(P2 Solution deadhead)	  	 	  	* Gallon
	 	 	(P1 Solution deadhead—To be used with	  	* Gallon
	 	 	UPRR approval only.)	  	 	  	 
			
	 	 	ALL PRICES ARE A PASS THROUGH
COST WITH NO ADDITIVES.	  	 
				
	 	 	SEE ITEM #29.	  	 	  	 
	 3.    TREATING CROSSTIES:
	 	FIRST 650,000 CROSSTIES	  	 	  	 
	 	 	 	 	6x8x8'	  	 	  	* EA
	 	 	 	 	7x9x8'	  	 	  	* EA
	 	 	 	 	7x9x8'6	  	 	  	* EA
	 	 	 	 	7x9x9'	  	 	  	* EA
	 	 	 	 	650,001—800,000	  	 	  	 
	 	 	 	 	6x8x8'	  	 	  	* EA
	 	 	 	 	7x9x8'	  	 	  	* EA
	 	 	 	 	7x9x8'6	  	 	  	* EA
	 	 	 	 	7x9x9'	  	 	  	* EA
	 	 	 	 	800,001—1,000,000	  	 	  	 
	 	 	 	 	6x8x8'	  	 	  	* EA
	 	 	 	 	7x9x8'	  	 	  	* EA
	 	 	 	 	7x9x8'6	  	 	  	* EA
	 	 	 	 	7x9x9'	  	 	  	* EA
	 	 	 	 	1,000,001—1,300,000	  	 	  	 
	 	 	 	 	6x8x8'	  	 	  	* EA
	 	 	 	 	7x9x8'	  	 	  	* EA
	 	 	 	 	7x9x8'6	  	 	  	* EA
	 	 	 	 	7x9x9'	  	 	  	* EA
	 	 	 	 	OVER 1,300,000	  	 	  	 
	 	 	 	 	6x8x8'	  	 	  	* EA
	 	 	 	 	7x9x8'	  	 	  	* EA
	 	 	 	 	7x9x8'6	  	 	  	* EA
	 	 	 	 	7x9x9'	  	 	  	* EA
	 	 	***	 	An additional charge of $0.10 per tie will be
effective for all pre bored ties.
		
	 4.     TREATING SWITCHTIES: (includes handling & sorting)
	  	* MBF
		
	 5.     END PLATING SWITCHTIES: (Includes Robbins plate price f.o.b. NLR of $0.27/ea
& labor price of $3.89/tie. Plate price is based on current end plate pricing and is subject to change.)
	  	* TIE
		
	 6.     END PLATING 7" GREEN CROSSTIES: for air seasoning (Includes Robbins plate price
f.o.b. NLR of $0.27/ea & labor cost of $1.61/tie. Plate price is based on current end plate pricing and is subject to change.)
	  	* TIE

		
	END PLATING DRY CROSSTIES: for treatment (Includes Robbins plate price f.o.b. NLR of $0.27/ea & labor cost of $0.93/tie. Plate price is based on current end
plate pricing and is subject to change.)
	  	* EA

		
	Note: Plates to be ordered in full truckload quantities (71,280 plates per truck). Plates to be invoiced upon application.
	  	 

 

Page 1 of 3 

	 7. TREATING LUMBER & TIMBER: (includes handling & sorting)
	  	*	  	MBF
	  
 8.
TREATING PILING & POLES: (includes handling & sorting)
  
	  	*	  	CF
	 9. CROSSING HARD WARE: (5/8x13 spikes-Koppers invoice + 10%)
	  	*	  	EA
				
	 10. TREATING CROSSINGS:
	  	112#-119#	  	*	  	MBF
	 	  	 131#-136#
	  	*	  	 MBF
  

	 11. RELOAD REJECT TIES:
	  	 	  	*	  	EA
	  
 12.
CREDIT REJECT TIES: (rail shipments only)
  
	  	*	  	EA
	 13. ARTIFICIAL SEASONING:
	  	 	  	*	  	CF/HR
				
	 14. INCISING LUMBER & TIMBER:
  
	  	 	  	*	  	MBF
	 15. RETREATMENT:
	  	 	  	*	  	CYL.
CHG.
				
	 16. LOADING MATERIAL:
	  	YARD TO GONS-CROSSTIES	  	*	  	EA
	 	  	YARD TO GONS-SWITCHTIES	  	*	  	MBF
	 	  	YARD TO GONS-LUMBER & TIMBER	  	*	  	MBF
	 	  	YARD TO GONS-PILING & POLES	  	*	  	LF
	 	  	YARD TO GONS-CROSSINGS	  	*	  	MBF
	 	  	ON BULKHEAD FLAT CARS	  	*	  	MBF
	 	  	ON CENTER BEAMS	  	*	  	 CAR
  

	 17. UNLOADING MATERIAL:
	  	 TREATED TIES
 TREATED SWITCHTIES

LUMBER & TIMBER
 PILING & POLES
	  	 *
 *
 *
 *
	  	 EA
 MBF
 MBF
 LF

			
	 18. FRAMING LUMBER: (elevation/dapping/sizing/drilling)
  
	  	*	  	MBF
	 19. DRESSING/END TRIMMING:
	  	 BRIDGE TIES
 STRINGERS &
CAPS
	  	 *
 *
	  	 MBF
 MBF

				
	 20. LIFT TRUCK/PRENTICE:
  
	  	 	  	*	  	HR
	 21. BUNDLING: MANUAL
  
  
 MECHANIZED
	  	 CROSSTIES
 SWITCHTIES
 POLES/PILING
 CROSSTIES
 10' SWITCHTIES
	  	 *
 *
 *
 *
 *
	  	 TIE
 MBF
 PC
 TIE
 TIE

				
	 22. MISC. SERVICES:
	  	 COST OF MATERIAL + 10% & LABOR
 (including fringes) + 25% for supervision
	  	 	  	 

  

 Page 2 of 3 

	 23. RECLASS SWITCHTIES:
	  	*	  	MBF
			
	 24. TAXABLE ITEMS: THIS SECTION ELIMINATED ON 5-24-99.
  
	  	 	  	 
	 25. HANDLING & LOADING MISC. PRE-PLATE ITEMS (PLATES,SPIKES)
 FOR DISPOSITION, PER MATERIAL MANAGER-TIES REQUEST.
	  	*	  	CARLOAD
			
	 26. INSTALLATION & STEEL MATERIALS FOR BULKHEAD FLAT CARS:
  
	  	*	  	CAR
	 27. REMOVE REINFORCING BARS FROM COAL CARS:
	  	*	  	CAR
			
	 28. SUPPLIER RUN WAREHOUSE:
  
	  	*	  	MONTH
	 29. ESCALATION:
	  	 	  	 
			
	 	  	*	  	 
			
	 2004
	  	*	  	 
			
	 2005 & 2006
	  	*	  	 
			
	 2007 & beyond
	  	*	  	 

  
 TAX
EXEMPT ITEMS & SERVICES: 
 TREATMENT SERVICE OF ALL COMMODOTIES 
 EXTRA HANDLING 
 SPECIAL PACKAGING AND/OR BANDING ETC... 
 YARDING CHARGES 
 LOADING CHARGES 
 INSPECTION OF ALL MATERIAL 
 ANY OTHER SERVICES PERFORMED. 
  

 Page 3 of 3 

 SCHEDULE C 
  

ANNUAL RATE REVISIONS – Denver 
  
 The rates set forth in this contract for treating services shall be revised upward or downward in accordance with the following formula on February 1 of each contract
year, beginning February 1, 2004: 
  

	v	 	* 

  

	v	 	L = The percentage change in the Average Hourly Earnings of Employees on Manufacturing Payrolls, as reported by the United States Department of Labor, Bureau of Labor Statistics,
Employment and Earnings for the State of Colorado Annual Average of the immediately preceding year compared to the Annual Average of the second preceding year (See Hypothetical Example below). 

  

	v	 	PPI = The percentage change in the Producer Price Index for Total Manufacturing Industry as reported by the United States Department of Labor, Bureau of Labor Statistics the Annual
Average for the immediately preceding year compared to the Annual Average of the second preceding year (See Hypothetical Example below). 

  

	v	 	A = The adjustment made to charges in the contract. 

  
 The annual adjustment will be capped at *and the adjustment cannot decrease the rates beneath the base rates. 
  
 In calculating the adjustments, all percent changes (both intermediate and
final) will be rounded to the nearest hundredth of a percent and all rates will be rounded to the nearest whole cent. The rounding rule used will be that any fraction less than on-half of the noted precision will be dropped, while an fraction equal
to or greater than one-half will be rounded up to the next higher value. 
  
 If the Bureau of Labor Statistics rebases either the Average Hourly Earnings of Employees on Manufacturing Payrolls or the Producer Price for Total manufacturing Industry, the rebased values will be used in subsequent
adjustment calculations. 

 HYPOTHETICAL EXAMPLE OF ADJUSTMENT CALCULATION 
 For February 1, 2004 Adjustment 
  
 * 
  
 All index values and
percentage changes are for illustrative purposes only. 

 SCHEDULE C 
  
 ANNUAL RATE REVISIONS – Little Rock 
  
 The rates set forth in this contract for treating services shall be revised upward or downward in accordance with the
following formula on February 1 of each contract year, beginning February 1, 2004: 
  

	v	 	* 

  

	v	 	L = The percentage change in the Average Hourly Earnings of Employees on Manufacturing Payrolls, as reported by the United States Department of Labor, Bureau of Labor Statistics,
Employment and Earnings for the State of Arkansas Annual Average of the immediately preceding year compared to the Annual Average of the second preceding year (See Hypothetical Example below). 

  

	v	 	PPI = The percentage change in the Producer Price Index for Total Manufacturing Industry as reported by the United States Department of Labor, Bureau of Labor Statistics the Annual
Average for the immediately preceding year compared to the Annual Average of the second preceding year (See Hypothetical Example below). 

  

	v	 	A = The adjustment made to charges in the contract. 

  
 The annual adjustment will be capped at * and the adjustment cannot decrease the rates beneath the base rates. 
  
 In calculating the adjustments, all percent changes (both intermediate and
final) will be rounded to the nearest hundredth of a percent and all rates will be rounded to the nearest whole cent. The rounding rule used will be that any fraction less than on-half of the noted precision will be dropped, while an fraction equal
to or greater than one-half will be rounded up to the next higher value. 
  
 If the Bureau of Labor Statistics rebases either the Average Hourly Earnings of Employees on Manufacturing Payrolls or the Producer Price for Total manufacturing Industry, the rebased values will be used in subsequent
adjustment calculations. 

 HYPOTHETICAL EXAMPLE OF ADJUSTMENT CALCULATION 
 For February 1, 2004 Adjustment 
  
 * 
  
 All index values and
percentage changes are for illustrative purposes only.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]