Document:

exv10w1

 

EXHIBIT
10.1

AMENDMENT NO. 3 TO CREDIT AND GUARANTY AGREEMENT

     AMENDMENT
NO. 3 TO CREDIT AND GUARANTY AGREEMENT (this
“Amendment”), dated as of
February 16, 2006, among Kraton Polymers LLC, a Delaware limited
liability company (“Company”), each of the Guarantors listed on the signature pages hereto, the Lenders party hereto, and UBS AG,
Stamford Branch (“UBS”), as administrative agent and
collateral agent (“Agent”).

RECITALS

     WHEREAS, Company, the Guarantors, the Lenders, Goldman Sachs Credit Partners L.P. and
UBS Securities LLC, as Lead Arrangers, and UBS, as Agent, entered into the Credit and Guaranty
Agreement dated as of December 23, 2003 (as amended pursuant to that certain Amendment No. 1 to
Credit and Guaranty Agreement dated as of March 4, 2004 and that certain Amendment No. 2 to Credit
and Guaranty Agreement dated as of October 21, 2004, and as further amended, restated supplemented
or otherwise modified from time to time, the “Credit
Agreement”);

     WHEREAS,
Company failed to deliver its Financial Plan no later than 30 days after the
beginning of Company’s 2006 Fiscal Year as required by Section 5.1(h) of the Credit Agreement;
and

     WHEREAS,
Company acknowledges that its failure to comply with Section 5.1(h) of the Credit
Agreement constitutes a Default and has requested that Agent and the Requisite Lenders waive such
Default;

     WHEREAS, Company has also requested that it be given until March 15, 2006 to comply with
Section 5.1(h) of the Credit Agreement with respect to its 2006 Financial Plan;

     WHEREAS,
Agent and the Requisite Lenders have agreed to waive the Default arising from
Company’s failure to comply with the requirements of Section 5.1(h) and have agreed to extend the
delivery date required under Section 5.1(h) until March 15, 2006, all upon the terms and subject to
the conditions as herein set forth;

     WHEREAS,
Company, the Guarantors, the Requisite Lenders and Agent have agreed to amend and
waive certain provisions of the Credit Agreement, in each case, as provided herein.

     NOW,
THEREFORE, in consideration of the premises made hereunder, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

     Section 1.
Definitions. Unless otherwise expressly defined herein, all
capitalized terms used herein and defined in the Credit Agreement shall be used herein as so
defined.

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     Section 2.
Waiver of Default under Section 5. 1(h) (Financial Plan). Agent
and the Requisite Lenders hereby waive the Default under Section 5.1(h) that occurred as a result
of Company’s failure to deliver its Financial Plan no later than 30 days after the beginning of its
2006 Fiscal Year.

     Section 3. Extension of Delivery Date under Section 5.1(h). Solely with respect
to the Fiscal Year of Company that commenced on January 1, 2006, Agent and the Requisite Lenders
agree to extend the delivery date under Section 5.1(h) to March 15, 2006. Company agrees to deliver
the Financial Plan required under Section 5.1(h) no later than March 15, 2006 and acknowledges that
any failure to do so will constitute an Event of Default.

     Section 4. Conditions Precedent. This Amendment shall become effective upon
satisfaction of each of the following conditions precedent:

     (a) Agent shall have received all of the following, in form and substance
satisfactory to Agent:

     (i) Amendment Documents. This Amendment and each other
instrument, document or certificate required by Agent, duly executed and delivered by Company, the
Guarantors, the Requisite Lenders and any other Person in connection with this Amendment;

     (ii) Forecasts for Fiscal Year 2006. (i) A forecasted
consolidated
balance sheet and forecasted consolidated statements of income and cash flows of Company and its
Subsidiaries for the 2006 Fiscal Year, together with a pro forma Compliance Certificate for such
Fiscal Year and an explanation of the assumptions on which such forecasts are based and (ii)
forecasted consolidated statements of income and cash flows of Company and its Subsidiaries for
each Fiscal Quarter of such Fiscal Year; and

     (iii) Additional Information. Such additional documents, instruments and
information as Agent may reasonably request to effect the transactions contemplated hereby.

     (b) After giving effect to this Amendment, the representations and warranties
contained herein and in the Credit Documents shall be true and correct in all material
respects as of the date hereof as if made on the date hereof (except for those which by their terms
specifically refer to an earlier date, in which case such representations and warranties shall
have been true and correct in all material respects as of such earlier date).

     (c) All corporate proceedings taken in connection with the execution and
delivery of this Amendment and all other agreements, documents and instruments executed
and/or delivered pursuant thereto, and all legal matters incident thereto, shall be
reasonably satisfactory to Agent.

     (d) No Default or Event of Default shall have occurred and be continuing after
giving effect to this Amendment.

2

 

     Section 5. Representations and Warranties. Company hereby
represents and warrants to Agent and the Lenders that, as of the date hereof and
after giving effect to this Amendment, (a) all representations and warranties set
forth in the Credit Agreement and in any other Credit Document are true and correct
in all material respects as if made again on and as of such date (except those, if
any, which by their terms specifically relate only to an earlier date, in which case
such representations and warranties shall have been true and correct in all material
respects as of such earlier date), (b) no Default or Event of Default has occurred
and is continuing, and (c) the Credit Agreement (as amended by this Amendment), and
all other Credit Documents are and remain legal, valid, binding and enforceable
obligations in accordance with the terms thereof except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or
limiting creditors’ rights generally or by equitable principles (regardless of
whether enforcement is sought in equity or at law).

     Section 6. Survival of Representations and Warranties. All
representations and warranties made in this Amendment or any other Credit Agreement
shall survive the execution and delivery of this Amendment, and no investigation by
Agent or the Lenders shall affect the representations and warranties or the right of
Agent and the Lenders to rely upon them. If any representation or warranty made in
this Agreement is false in any material respect as of the date made or deemed made,
then such shall constitute an Event of Default under the Credit Agreement.

     Section 7. Certain Waivers. Each of Company and each Guarantor hereby
agrees that neither Agent nor any Lender shall be liable under a claim of, and hereby waives
any claim against Agent and the Lenders based on, lender liability (including, but not limited to,
liability for breach of the implied covenant of good faith and fair dealing, fraud,
negligence, conversion, misrepresentation, duress, control and interference, infliction of emotional
distress and defamation and breach of fiduciary duties) as a result of the waivers and amendments
contained in Sections 2 and 3 above and any discussions or actions taken or not taken by Agent
or the Lenders on or before the date hereof or the discussions conducted in connection
therewith, or any course of action taken by Agent or any Lender in response thereto or arising therefrom;
provided, that the foregoing waiver shall not include the waiver of any claims which
are based on the gross negligence or willful misconduct of Agent or any Lender or any of their
respective agents. This Section 7 shall survive the execution and delivery of this Amendment and the
other
Credit Documents and the termination of the Credit Agreement.

     Section 8. Reference to Agreement. Each of the Credit Documents,
including the Credit Agreement, and any and all other agreements, documents or instruments now or
hereafter executed and/or delivered pursuant to the terms hereof or pursuant to the terms of the
Credit Agreement as amended hereby, are hereby amended so that any reference in such Credit
Documents to the Credit Agreement, whether direct or indirect, shall mean a reference to the
Credit Agreement as amended hereby. This Amendment shall constitute a Credit Document
under the Credit Agreement.

     Section 9. Costs and Expenses. Company shall pay on demand all reasonable
costs and expenses of Agent and the Lead Arrangers (including the reasonable fees, costs and

3

 

     expenses of counsel to Agent) incurred in connection with the preparation, execution and
delivery of this Amendment.

     Section 10. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

     Section 11. Execution. This Amendment may be executed in any number of
counterparts and by different 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. Delivery of an executed counterpart of a signature page to this Amendment by
telecopier shall be effective as delivery of a manually executed counterpart of this Amendment.

     Section 12. Limited Effect. This Amendment relates only to the specific matters
expressly covered herein, shall not be considered to be a waiver of any rights or remedies any
Lender may have under the Credit Agreement or under any other Credit Document, and shall not be
considered to create a course of dealing or to otherwise obligate in any respect any Lender to
execute similar or other amendments or grant any waivers under the same or similar or other
circumstances in the future.

     Section 13. Ratification by Guarantors. Each of the Guarantors acknowledges that
its consent to this Amendment is not required, but each of the undersigned nevertheless does hereby
agree and consent to this Amendment and to the documents and agreements referred to herein. Each of
the Guarantors agrees and acknowledges that (i) notwithstanding the effectiveness of this
Amendment, such Guarantor’s Guaranty shall remain in full force and effect without modification
thereto and (ii) nothing herein shall in any way limit any of the terms or provisions of such
Guarantor’s Guaranty or any other Credit Document executed by such Guarantor (as the same may be
amended from time to time), all of which are hereby ratified, confirmed and affirmed in all
respects. Each of the Guarantors hereby agrees and acknowledges that no other agreement,
instrument, consent or document shall be required to give effect to this Section 13. Each of the
Guarantors hereby further acknowledges that Company, Agent and any Lender may from time to time
enter into any further amendments, modifications, terminations and/or waivers of any provisions of
the Credit Documents without notice to or consent from such Guarantor and without affecting the
validity or enforceability of such Guarantor’s Guaranty or giving rise to any reduction,
limitation, impairment, discharge or termination of such Guarantor’s Guaranty.

[signature pages follow]

4

 

     IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	KRATON POLYMERS LLC

 	 
	 	By:  	/s/ Randy Guba
 	 
	 	Name:  	Randy Guba  	 	 
	 	Title:	 VP and CFO	 
	 
	 	GUARANTORS: 

POLYMER HOLDINGS LLC

ELASTOMERS HOLDINGS LLC

KRATON POLYMERS U.S. LLC

KRATON POLYMERS CAPITAL CORPORATION

 	 
	 	By:  	/s/ Joseph J. Writer
 	 
	 	Name:  	Joseph J. Writer 	 
	 	Title:  	Vice President 	 
	 
	 	AGENT: 

UBS AG, STAMFORD BRANCH

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	KRATON POLYMERS LLC 

 	 
	 	By:  	
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	GUARANTORS: 

POLYMER HOLDINGS LLC

ELASTOMERS HOLDINGS LLC

KRATON POLYMERS U.S. LLC

KRATON POLYMERS CAPITAL CORPORATION

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	AGENT: 

UBS AG, STAMFORD BRANCH

 	 
	 	By:  	/s/   Richard L. Tavrow
 	 
	 	Name:  	Richard L. Tavrow 	 
	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/   Irja R. Otsa 	 
	 	Name:  	Irja R. Otsa 	 
	 	Title: 	Associate Directorexv10w2

 

Exhibit 10.2

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

Contract ID AM05-00141

SALES CONTRACT

April 25, 2006

This Sales Contract (“Contract”) is entered into by and between SHELL CHEMICAL LP, with a place of
business at One Shell Plaza, P.O. Box 2463, Houston, Texas, 77252-2463, Facsimile no. (713)
241-6465 (“Seller”), and KRATON Polymers U.S. LLC with a place of business at 15710 John F. Kennedy
Boulevard, Suite 300, Houston, Texas 77032, Facsimile no. 281-504-4769 (“Buyer”). For the
purposes of this Contract, “Party” shall mean either Seller or Buyer individually and “Parties”
shall mean Seller and Buyer collectively. Further, the term “Affiliate” shall mean a company which
directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is
under common control with a Party. For this purpose control means the direct or indirect ownership
of in aggregate fifty per cent or more of voting capital.

ARTICLE 1: Evergreen Contract and Termination

1.1 This Contract shall be in effect for an initial term from May 1, 2006 (“Effective Date”)
through April 30, 2009 (“Initial Term”), but shall continue thereafter in full force and effect for
additional terms of twelve (12) months each, subject to termination effective at the end of the
Initial Term or any subsequent renewal term by either Party by giving the other at least twelve
(12) months prior written notice of termination or as otherwise permitted by this Contract. The
continuing renewal of this Contract on one-year terms after the Initial Term is referred to as
“Evergreen Status.” Notwithstanding the foregoing, this Contract is subject to earlier termination
pursuant to the provision below and to other provisions of this Contract.

1.2 This Contract may be terminated immediately by a Party (without prejudice to its other rights
and remedies) if the other Party (i) becomes insolvent, makes an assignment for the benefit of its
creditors, or is placed in receivership, administration, liquidation, or bankruptcy; or (ii) is in
breach of any term of this Contract and fails to remedy such breach within thirty (30) calendar
days after its receipt of written notice of such breach from the non-breaching Party. Seller may
also terminate this Contract on thirty (30) calendar days written notice if Seller is prevented by
law, regulation or governmental action from increasing or continuing any price in accordance with
the provisions of this Contract.

ARTICLE 2: Product

“Product” shall mean 1,3 Butadiene. The specifications applicable to Product supplied from Seller
owned facilities and non-Seller owned facilities under this Contract are provided in Attachment 1A
(“Specifications of Product supplied from Seller owned facilities”) and Attachment 1B
(“Specifications of Product supplied from non-Seller owned facilities”)

1

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

respectively, and are only applicable at time of loading the barge or rail car at Seller’s facility
or mutually agreed alternate facility and are made part of the Contract.

ARTICLE 3: Quantity and Quantity Limitations

3.1 During the term of this Contract, Seller will sell and Buyer will purchase [***] [Confidential
Treatment Requested] of Buyer’s requirements for Product at its Belpre, OH plant (the “Facility”)
subject to the following minimum and maximum volumes which are defined as [***] [Confidential
Treatment Requested] of the Volume Target Nomination (“Volume Maximum”) and minus [***]
[Confidential Treatment Requested] of the Volume Target Nomination (“Volume Minimum”), and further
subject to the nomination and ratability provisions set forth below.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Evergreen
	 	 	 	 	 	 	 	 	 	 	Status May 1 –
	 	 	May 1 –	 	January 1 –	 	January 1-	 	January 1 –	 	April 30 (12
	Volume	 	December 31,	 	December 31,	 	December 31,	 	April 30,	 	month
	Period	 	2006	 	2007	 	2008	 	2009	 	periods)*
	 	 	 	 	 	 	 	 	 	 	 
	Volume Target

Nomination

(pounds)
	 	[***]

 [Confidential

Treatment

Requested] lbs.
	 	[***]

 [Confidential

Treatment

Requested] lbs.
	 	[***]

 [Confidential

Treatment

Requested] lbs.
	 	[***]

 [Confidential

Treatment

Requested] lbs.
	 	**See below

 

			
	*	 	If in Evergreen Status, the Volume Period would be May 1 through April 30 for each twelve (12)
month period.
	 
	**	 	The Volume Target Nomination for each twelve-month period while on Evergreen Status shall be the
Volume Target Nomination for January 1 – December 31, 2008 unless modified by Section 3.3 below or
otherwise agreed by the Parties in writing.

3.2 Volume Nominations for Volume Periods: Buyer’s volume nomination for the initial Volume Period
(May 1 – December 31, 2006) is [***] [Confidential Treatment Requested] pounds. For each Volume
Period that commences after 2006, Buyer shall provide Seller with its nomination for Product by
November 1 of the previous year within the Volume Maximum and Volume Minimum for the next Volume
Period (e.g. 2007 nomination provided by November 1, 2006); however, if this Contract is not
terminated prior to achieving Evergreen Status May 1, 2009, Buyer’s nomination for Product required
by November 1, 2008 for 2009 shall include Buyer’s nomination for both the Volume Period January 1
– April 30, 2009 and the first one year period while on Evergreen Status (May 1, 2009 – April 30,
2010) for a total of sixteen (16) months. Further, for each subsequent one year term while on
Evergreen Status, Buyer shall similarly provide Buyer’s nomination of Product by November 1 for a
period of sixteen (16) months commencing January 1 of the next year. Each nomination of Product in
accordance with this Section 3.2 applicable to a Volume Period is referred to as a “Volume
Nomination.”

3.3 Changes to Volume Nomination and Volume Target Nomination: The Volume Target

2

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

Nomination for each Volume Period shall be modified if the Parties agree in an amendment to this
Contract or, if one Party provides notice that it requests a change in the Volume Target Nomination
and the other Party provides written notice that it agrees to such change. If Buyer’s requirements
for the Product exceed the Volume Maximum for any Volume Period, Buyer shall be permitted, but
shall not be required, to submit a nomination that includes a Volume Nomination that exceeds the
Volume Maximum calculated with reference to the chart above. Seller shall not be required to
accept a nomination from Buyer for Product for any Volume Period that exceeds the amount designated
as the Volume Maximum for such period; provided, however, that if Seller gives notice that it
agrees to Buyer’s Volume Nomination that exceeds the amount designated as the Volume Maximum for
any Volume Period (“Acceptance Notice”), such Volume Nomination shall become Buyer’s Volume
Nomination required under Section 3.2 for the applicable Volume Period and then Buyer may provide a
written notice to Seller within thirty (30) days of Seller’s Acceptance Notice that Buyer is
electing to increase the Volume Target Nomination (and consequently the Volume Minimum and Volume
Maximum) for all future Volume Periods by an amount equal to the amount by which the Volume
Nomination agreed by Seller exceeds the Volume Maximum for the Volume Period for which Buyer’s
nomination was made (except the Volume Target Nomination for the Volume Period January 1 – April
30, 2009, will be increased by one-third (1/3) the amount of the increase to account for this 2009
Volume Period being four months instead of a year). For the avoidance of doubt, if Buyer’s
nomination includes a Volume Nomination for Product for any Volume Period that exceeds the Volume
Maximum calculated with reference to the chart above, and Seller declines to supply amounts in
excess of the Volume Maximum, Buyer’s Volume Nomination shall be considered to be the Maximum
Volume for the applicable Volume Period and the Parties shall be excused from the [***]
[Confidential Treatment Requested] purchase and supply commitment hereunder for amounts in excess
of the Volume Maximum for such Volume Period. If Buyer’s nomination includes a Volume Nomination
for Product for any Volume Period that is lower than the Volume Minimum calculated with reference
to the chart above, Seller shall be entitled to consider such lower amount as Buyer’s Volume
Nomination and reduce the Volume Target Nomination (and consequently the Volume Minimum and Volume
Maximum) for all future Volume Periods by an amount equal to the amount by which the volume of
Product in Buyer’s Volume Nomination was less than the Volume Minimum for the Volume Period for
which Buyer’s nomination was made (except the Volume Target Nomination for the Volume Period
January 1 – April 30, 2009, will be decreased by one-third (1/3) the amount of the decrease to
account for this 2009 Volume Period being four months instead of a year).

3.4 Purchase and Supply Limitations:

3.4.1 Limits on Seller’s Maximum Supply Obligation: Seller shall not be required: (a) during any
calendar month to supply in excess of [***] [Confidential Treatment Requested] of the Volume
Nomination for the Volume Period during which such month falls, or (b) during any three (3) month
period, to supply in excess of an average of [***] [Confidential Treatment Requested] each month of
the Volume Nomination for the applicable Volume Period for the three (3) months.

3

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

3.4.2 Seller’s Right to Reduce Volume of Product in Current Volume Period: If during any
Volume Period Buyer fails to purchase at least [***] [Confidential Treatment Requested] of the
Volume Nomination for such Volume Period per month for any three (3) calendar months (whether or
not consecutive) for reasons that are not excused under this Contract, Seller shall be entitled to
reduce the volume of Product it is otherwise required to deliver under this Contract for such
Volume Period by an amount up to [***] [Confidential Treatment Requested] the amount of Product
that Buyer’s total purchases for such three (3) months was less than [***] [Confidential Treatment
Requested] of such Volume Nomination.

3.4.3 Seller’s Right to Reduce Volume of Product: If Buyer fails to purchase its Volume Nomination
for an entire Volume Period by more than [***] [Confidential Treatment Requested] for reasons that
are not excused under this Contract, Seller shall be entitled to reduce the Volume Target
Nominations (and consequently the Volume Minimum and Volume Maximum) for all future Volume Periods
by an amount equal to the amount of Product that Buyer failed to purchase during such Volume Period
that was greater than [***] [Confidential Treatment Requested] below the Volume Nomination for such
Volume Period (except, if applicable the Volume Target Nomination for the Volume Period January 1 –
April 30, 2009, will be decreased by one-third (1/3) the amount of the decrease to account for this
Volume Period being four (4) months instead of a full year.) Seller shall have no right to reduce
either Volume Target Nominations, Volume Minimums or Volume Maximums for any future years as a
result of Buyer’s failure to purchase its Volume Nomination for an entire Volume Period by less
than [***] [Confidential Treatment Requested] for reasons that are not excused under this Contract.

3.4.4 Non-exclusive Remedies and Clarification: Provided Buyer is purchasing [***] [Confidential
Treatment Requested] of its requirements for Product from Seller up to the Volume Maximum as
required by this Contract, Seller’s remedies in this Section 3.4 shall be Seller’s sole and
exclusive remedies for Buyer’s failure to purchase Product as required pursuant to the terms set
forth in this Article 3. If Buyer fails to purchase [***] [Confidential Treatment Requested] of
its requirements for Product from Seller up to the Volume Maximum for reasons that are not excused
by the terms of this Contract, Seller shall be entitled to all its remedies provided under the law
in addition to those expressly provided in this Contract.

3.5 Buyer’s Alternative Purchase Right: If for any reason Seller is unable to supply Buyer with an
amount of Product consistent with the provisions set forth in this Article 3 for any applicable
period during any Volume Period (including, without limitation, the reasons set forth in Article 9
hereof), Buyer shall be entitled to purchase any such shortfall in Seller’s supply capability from
a third party, and Buyer shall be excused from its [***] [Confidential Treatment Requested]
hereunder for any such volumes that it procures from a third party.

3.6 Safety Stock: Seller and Buyer will meet twice per year to discuss Seller’s inventory
level of Consigned Product in the tank at Buyer’s facility (the “Safety Stock”) under Section 5.1.
During these discussions, Seller and Buyer will discuss and revise, if necessary, any Safety Stock
volume targets including, but not limited to, the minimum volume target. Safety Stock volume
targets are not binding on either Party; however, should actual consignment stock level fall below

4

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

the Safety Stock minimum volume target, Seller will promptly institute a plan to bring the
inventory back to a level at or in excess of the Safety Stock minimum volume target. Decisions to
increase or decrease the Safety Stock volume targets will not be unreasonably withheld or delayed.

ARTICLE 4: Quantity Estimates and Forecasts

Each November 1 during the term, Buyer will provide Seller with Buyer’s Volume Nomination for the
following Volume Period in accordance with Section 3.2. Additionally, Buyer will maintain a
forecast showing Buyer’s revised and updated requirements for the Product for the twelve (12)
months immediately following the date of the forecast, which Buyer will provide to Seller at least
two (2) times monthly during the term (or at such more or less frequent intervals that Buyer and
Seller may agree). Buyer and Seller shall also participate in monthly (or more frequent)
teleconferences to review and agree upon revisions to the forecast.

ARTICLE 5: Consigned Product, Delivery and Measurement, Quantity and Quality

5.1.1 Product, Shipments, Risk of Loss and Insurance: Product covered by this provision is 1,3
Butadiene as defined in Article 2, herein referred to as “Consigned Product”. Notwithstanding any
provisions of this Contract to the contrary, shipments of Consigned Product will be made by Seller
on consignment into Buyer’s storage at the Facility, and Seller’s quantity determination will
govern unless proven in error. Buyer will ensure the prompt unloading of each shipment of
Consigned Product in accordance with Attachment 2 (“Barge Deliveries to Buyer’s Facility”) and will
be responsible for any demurrage or detention charges. Notwithstanding anything to the contrary in
this Contract: (1) risk of loss or damage to Consigned Product shall pass to Buyer as the
Consigned Product passes the barge’s last permanently installed flange connection when discharging
Consigned Product into the Facility, and [***] [Confidential Treatment Requested]. Notwithstanding
anything to the contrary in this Contract, Buyer is obligated to purchase Product once risk of loss
has passed to Buyer unless Seller exercises a legal or contractual right to take possession of the
Product, or the Parties otherwise agree in writing. Seller will retain title to all Consigned
Product until the earlier of a) ninety (90) days from the date of receipt at the Facility; b) until
Buyer withdraws Consigned Product from storage; c) the date when regardless of fault, the Consigned
Product is lost, destroyed or damaged for any cause while in Buyer’s custody; or d) consignment is
discontinued for any reason at the Facility. At such time, title will pass to Buyer and Consigned
Product will be considered purchased by Buyer. Buyer agrees that all costs of maintaining and
protecting Consigned Product in Buyer’s storage facilities, including but not limited to insurance,
handling and storage, will be borne by Buyer, and that Consigned Product will be adequately insured
against theft, fire or other loss or damage with Seller named as an additional insured in the
appropriate policies. Buyer agrees to furnish Seller on an on-going basis with written
certificates of insurance as evidence of such insurance satisfactory to Seller.

5.1.2 Storage Requirements: Buyer agrees to permit physical inspection of the storage location and
product handling facilities by Seller’s representative or agents prior to the first consignment

5

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

shipment and on at least a three (3) year basis thereafter during the term of this Contract. Buyer
further agrees that any consignment inventory of bulk Product will not be commingled with other
bulk products except Buyer may commingle product substantially similar to Seller’s Product if
Seller gives its written consent. Seller may not withhold such consent if Seller is unable to
supply under the terms of this Contract for any reason whatsoever or if the commingled Product
represents volume above the Volume Maximum. Seller has the right, upon reasonable notice, to
verify the quantity and quality of bulk Product consigned hereunder.

5.1.3 Financing Statement: Unless waived by Seller in writing, Buyer will execute and return to
Seller for Seller’s filing, a Uniform Commercial Code Financing Statement — Form UCC-1,
acknowledging that all Consigned Product delivered hereunder is on consignment.

5.1.4 Reports: Buyer is responsible for keeping accurate and complete records as to all receipts,
withdrawals and handling of Consigned Product. Prior to the close of business on the second
workday of each calendar month, Buyer will provide Seller a detailed accounting of withdrawals of
all Consigned Product during the previous calendar month. All Consigned Product on consignment
ninety (90) days after the date of receipt at the Facility will be shown as “withdrawals from
consignment” and deemed purchased by Buyer. Buyer will pay for the amount of Consigned Product
withdrawn, used or otherwise deemed purchased during the previous calendar month. Upon prior
reasonable notice, Seller will have the right to verify Buyer’s report at any time during Buyer’s
normal business hours by physical inspection of Buyer’s inventory or to require any or all of
Buyer’s monthly reports to be certified by a responsible officer of Buyer.

5.1.5 Precedence: If there is any conflict between this Consignment provision and the Contract to
which it is a part, this Consignment provision shall take precedence and govern with respect to
Consigned Product.

5.2 Usual supply source and selection of Carrier:

Without limiting Seller’s sources for supply of Product under this Contract, Seller’s usual supply
source for manufacturing Product shall be Norco, LA and such source is approved by Buyer. If
Seller on an occasional basis needs to supply Product manufactured from a supplier at a location
other than Norco, LA, Seller will provide Buyer with notice of the same. Buyer shall not be
required to accept Product from any manufacturing location that is not approved by Buyer. If Buyer
does not approve the manufacturing location, Seller’s obligation to supply said volume is excused
under this Contract provided the Product offered meets the specifications in Attachment 1B.
Subject to the foregoing, Seller will select the place of loading and the carrier of Product unless
the Contract states another method for determination of the loading point and/or the carrier.
Seller shall arrange transportation of Product to the Facility. Buyer agrees to cooperate with
Seller in determining delivery dates for each month. Seller will be responsible for freight costs
in excess of the freight costs from Norco, LA if an alternate supply location is arranged for the
convenience of the Seller. However, Buyer will be responsible to pay freight costs from any
location other than Norco, LA if Seller supplies Product from an alternate supply location due to a
Force Majeure Event as described in Article 9.

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

5.3 Quantity determination:

5.3.1 Barge Shipments: With respect to barge shipments, the following shall apply:
The quantity of Product shall be determined by an independent licensed inspector provided by
Seller at loading port. The measured quantity shall be stated on the appropriate delivery
documentation for that delivery. Buyer shall provide an independent licensed inspector at the
discharge port, and, in the event that the measured quantity at the loading location differs by
one-half percent (0.5%) or less from the quantity measured at the destination, Buyer agrees to accept
the discrepancy without adjustment to the delivered quantity. Inspection fees at load and
discharge shall be shared equally by Buyer and Seller. In the event that the measured quantity
at the loading location differs from the quantity measured at the destination by more than one-half
percent (0.5%), Buyer and Seller will notify the other as soon as the discrepancy is identified and
(i) either Party may initiate its own investigation and the other Party will reasonably cooperate
or (ii) the Parties will have a loss investigation utilizing a mutually agreeable independent third
party if requested by either Party (or, if the Parties cannot agree, any recognized regional or
global independent surveyor chosen by Seller). If an independent third party is used, the
outcome of the investigation shall be final and binding on the Parties absent fraud or clear error
and any quantity measurement found to be incorrect by more than one-half percent (0.5%)
shall result in an appropriate adjustment to the quantity delivered and related invoice(s). Each
Party shall bear its own internal costs associated with any quantity dispute, but the costs of any
third party to investigate a claimed quantity discrepancy shall be charged to Buyer and Seller on
a 50/50 basis.

5.3.2 Railcar shipments: With respect to railcar shipments, the following shall apply:
The quantity of all bulk rail and truck deliveries will be determined by Seller by outage tables
with corrections for temperature. Rail cars are considered full when filled to the maximum legal
weight. Buyer will promptly unload each shipment at its own risk and expense, including any
detention or demurrage charges. In the event that the measured quantity at the loading location
differs by one-half percent (0.5%) or less from the quantity measured at the destination, Buyer
agrees to accept the discrepancy without adjustment to the delivered quantity. In the event that
the measured quantity at the loading location differs from the quantity measured at the
destination by more than one-half percent (0.5%), Buyer and Seller will notify the other as soon
as the discrepancy is identified and (i) either Party may initiate its own investigation and the
other Party will reasonably cooperate or (ii) the Parties will have a loss investigation utilizing
a mutually agreeable independent third party if requested by either Party (or, if the Parties cannot
agree, any recognized regional or global independent surveyor chosen by Seller). The attached
Rail Car Lease identified as Attachment 3, is made a part of this Contract.

5.4 Quality Determination:

Seller (at its cost) shall determine the quality of Product by sampling and/or testing according to
tests and test methods as defined in the Specifications at the place of loading or if such
Specifications do not contain Seller’s applicable tests and test methods, by sampling and testing
according to Seller’s customary tests and test methods at the place of loading. In addition, if
the vessel used to ship the Product is not dedicated to the shipment of butadiene, Seller shall
follow

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

its normal procedures as may be necessary to inspect and clean the vessel prior to loading
so the vessel is in a condition that is appropriate for the shipment of Product. In the event that Buyer
has cause to complain that the quality of Product loaded on the barge or in the railcar to it
pursuant to this Contract does not comply with the applicable Specifications, Buyer shall
immediately after the date when the non-compliance was discovered or reasonably should have been
discovered, but no later than ninety (90) calendar days after the loading date, give written notice
to Seller specifying the nature of its complaint. The Parties agree to negotiate in good faith in
respect of any complaint notified to Seller in accordance with this provision. In the absence of
any agreement to resolve the complaint, the Parties shall appoint a mutually acceptable independent
surveyor to investigate whether the quality of Product as loaded on the barge complied with the
Specifications (or, if the Parties cannot agree, any recognized regional or global independent
surveyor chosen by Seller). The results of the measurements, sampling and testing by the
independent surveyor under this provision with respect to quality shall, in the absence of fraud or
clear error, be final and binding as to the quality of the Product loaded. Each Party shall bear
its own internal costs associated with any quality dispute, but the costs of any third party to
investigate a quality issue under this provision shall be charged to Buyer and Seller on a 50/50
basis.

ARTICLE 6: Price

6.1 Price: The price for Product for a given calendar month shall be [***] [Confidential Treatment
Requested] (the “Product Price”). Buyer shall pay Seller the Product Price for Product minus any
applicable discount (“Purchase Price”) in accordance with the provisions of this Contract.

6.2 Price Discount: Seller will grant Buyer a discount off the Product Price as shown in
Attachment 2.

6.3 Freight Charge: Freight Terms are FOB Belpre, OH, barge freight prepaid and delivered. Seller
will charge Buyer the actual charges incurred for rental, towing and cleaning of such barges as
such charges are incurred.

ARTICLE 7: Invoice and Payment

Seller will consolidate Buyer’s individual purchases of Product under this Contract each calendar
month on an invoice for that month. Buyer shall pay the consolidated invoice amount to reach
Seller’s nominated bank account no later than fifteen (15) calendar days from the date of invoice
in United States dollars net of all bank charges and without deduction, withholding or setoff into
Seller’s nominated bank account by wire transfer as follows:

SHELL CHEMICAL LP

[***] [Confidential Treatment Requested]

or at such other place as Seller may specify by written notice to Buyer. Where the last day for
Buyer’s payment falls on any day which is not a banking day in the place designated by Seller for

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

payment, then any such payment shall be made on the nearest preceding banking day. Without
prejudice to Seller’s other rights, any late payment by Buyer will bear simple interest at the
prime rate of interest published under “Money Rates” quoted on the due date (or closest date to the
due date if not quoted on the due date) by the Wall Street Journal, [***] [Confidential Treatment
Requested] from the due date until the date of payment, but such rate shall be capped at the
maximum rate allowed by the law governing this Contract. Notwithstanding the foregoing, Buyer may
withhold from payment the portion of any amount that is disputed without incurring interest pending
the final outcome of any applicable dispute resolution proceedings or settlement provided Buyer
gives Seller immediate written notice of the dispute; however, if it is determined that any part of
the disputed amount was properly due, Buyer shall pay the amount plus interest (as determined for
late payments above) on that amount from the original due date.

ARTICLE 8: Warranty and Disclaimer of Warranties

Seller warrants that Product will conform to the Specifications set forth in the applicable
Attachment 1A or 1B at the time of loading into the barge at Seller’s barge loading facility.
SELLER MAKES NO OTHER WARRANTIES OR REPRESENTATIONS OF ANY KIND CONCERNING THE PRODUCT, WHETHER OF
MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE OR OTHERWISE, AND NONE SHALL BE IMPLIED.

ARTICLE 9: Force Majeure

Neither Party shall be in breach of this Contract or otherwise be liable to the other Party for its
failure to fulfill any term of this Contract, other than the obligation to pay any sum when due, if
and to the extent that such fulfillment has been delayed, hindered, curtailed or prevented by a
“Force Majeure Event”, meaning any of the following:

(a) any act of God, fire, explosion, landslide or earthquake; or

(b) any storm, hurricane, flood, tidal wave or other adverse weather condition; or

(c) any war (whether declared or not), revolution, act of civil or military authority, riot,
blockade, embargo, trade sanction, terrorism, sabotage, or civil commotion; or

(d) any epidemic or quarantine restriction; or

(e) any strike, lock-out or labor dispute from whatever cause (whether or not Seller, Seller’s
supplier, Buyer or Buyer’s supplier, as the case may be, is a party thereto or might be able to
influence or procure the settlement thereof); or

(f) any compliance with any law, regulation or ordinance or with any order, demand or request of
any international, national, local or other port, transportation or governmental authority or
agency or any body or person purporting to be or to act for such authority or agency or any
corporation directly or indirectly controlled by any of them; or

(g) any unavailability of or interference with the usual means of transporting Product; or

(h) any unplanned shutdown or shutdown in anticipation of a breakdown or malfunction affecting the
plant; or

(i) any Seller’s inability to acquire from its usual supply sources for this Contract or on terms
it deems to be reasonable Product or any material, labor, service, utility or facility necessary
for

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

manufacturing the Product; or

(j) any Buyer’s inability to acquire from its usual supply sources on terms it deems to be
reasonable any material, labor, service, utility or facility necessary for consuming the Product;
or

(k) any circumstance or event outside the Party’s reasonable control.

When a Force Majeure Event results in a shortfall of Product available to meet all Seller’s supply
obligations, Seller may apportion any reduced quantity of Product among itself and its customers
and Affiliates in any manner it determines to be fair and reasonable, and, such determination shall
take into account, in addition to other factors at Seller’s discretion, that Buyer is a [***]
[Confidential Treatment Requested] under written contract with Seller, and Buyer may not have as
much access to alternative Product supply as customers who have more than one source of supply.
Seller shall not be required to acquire Product to replenish any shortfall in Product arising as a
result of a Force Majeure Event. Should Seller acquire any quantity of Product following a Force
Majeure Event, Seller may use or distribute, without apportioning, such Product at Seller’s sole
discretion. Buyer may acquire any shortfall quantity of Product from other sources at Buyer’s own
risk and cost. Any quantity of Product consequently not delivered will be deducted from any
applicable remaining quantity obligation under this Contract unless the Parties agree otherwise in
writing. The Party whose ability to perform its obligations under this Contract is affected by a
Force Majeure Event shall promptly notify the other Party in writing with reasonable details of
such event. The affected Party shall give prompt notice to the non-affected Party of the end of
the Force Majeure Event, and shall resume full performance under the Contract as soon as reasonably
possible. No Force Majeure Event shall have the effect of extending the term of the Contract or of
terminating the Contract unless agreed by the Parties in writing.

ARTICLE 10: Health, Safety, Security and Environment; Product Stewardship

10.1 Seller will furnish Buyer with Material Safety Data Sheets, which include health, safety and
other hazard communication information on Product consistent with regulatory requirements. Buyer
will disseminate appropriate health, safety and other hazard communication information to all
persons Buyer foresees may be exposed to Product (including but not limited to Buyer’s employees,
contractors and customers). If Product is further processed, mixed or incorporated into another
product, Buyer will likewise disseminate appropriate health, safety and other hazard communication
information to all persons Buyer foresees may be exposed.

10.2 Seller shall have the opportunity during Buyer’s normal business hours to conduct a product
stewardship site review of Buyer’s receipt, storage and handling facilities for Product at periodic
intervals of once every three (3) years during the term of this Contract and Buyer agrees to
provide reasonable cooperation. Seller agrees that any of its representatives visiting Buyer’s
site shall do so in accordance with all of the respective security and safety measures at Buyer’s
facility.

ARTICLE 11: Indemnity, Limitations of Liability and Notice of Claims

11.1 Indemnity:

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

(a) Buyer will indemnify, defend, and hold harmless Seller, its Affiliates, directors and
employees, against any liability (whether strict, absolute or otherwise) for any claim, loss,
damage, cost, and expense, including but not limited to reasonable attorneys’ fees and other costs
of litigation on account of any injury, disease or death of persons (including, but not limited to,
Buyer’s employees) or damage to property (including, but not limited to, Buyer’s property) arising
out of or in connection with:

	 	i.	 	Buyer’s unloading, storage, handling, sale, use or disposal of the Product (except to
the extent caused by Seller’s negligence); and/or
	 
	 	ii.	 	Any failure by Buyer to disseminate safety and health information as provided in
Article 10: Health, Safety, Security and Environment.

(b) Seller shall indemnify, defend, and hold harmless Buyer, its Affiliates, directors and
employees, against any liability (whether strict, absolute or otherwise) for any claim, loss
damage, cost and expense including but not limited to reasonable attorneys’ fees and other costs of
litigation on account of any injury, disease or death of persons (including but not limited to
Seller’s employees) or damage to property (including but not limited to Seller’s property) arising
out of or in connection with:

	 	i.	 	Seller’s storage, or handling of the Product prior to delivery (except to the extent
caused by Buyer’s negligence); and/or
	 
	 	ii.	 	Any failure by Seller to disseminate safety and health information as provided in
Article 10, Health, Safety, Security and Environment.

11.2 Limitations of Liability:

Notwithstanding anything to the contrary in this contract, Seller’s and any of Seller’s Affiliates
total liability to Buyer for any claim arising out of or in connection with this Contract for
breach of contract, breach of warranty, breach of statutory duty or negligence (INCLUDING, BUT NOT
LIMITED TO, SELLER’S NEGLIGENCE) or other tort, whether by virtue of strict liability or otherwise,
will not exceed 1.25 times the Purchase Price of the relevant delivery of Product if delivered, or
if the above breach of Contract consists of a failure to deliver, [***] [Confidential Treatment
Requested] the Purchase Price of the Product had it been delivered and invoiced; except with
respect to Seller’s obligation to indemnify Buyer for claims subject to Section 11.1(b) hereof
which shall not be subject to any such limitation or cap on liability.

No Party (EVEN IF NEGLIGENT) will be liable to the other Party for loss of production, loss of use,
loss from business interruption, loss of profit, loss of business, loss of goodwill or reputation,
or wasted expenditure or for any incidental, indirect, special, consequential, or punitive cost,
expense, loss or damage of any kind.

11.3 Notice of Claims:

Except with respect to a claim that Product fails to comply with the Specifications in Article 5.4,
any other claim (without prejudice to applicable provisions for demurrage claims) by Buyer arising
out of or in connection with this Contract shall be provided to Seller by written notice setting
forth fully the facts on which it is based as promptly as practicable after the date when the

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

facts were discovered or reasonably should have been discovered, but in any event no later than one
hundred (100) calendar days after the date of receipt of the applicable Product at the Facility.
Buyer unconditionally waives any and all claims that are not made during the requisite period
required by this Contract and Seller shall not be obliged to accept any such claims made after such
period.

ARTICLE 12: Failure to Pay and Remedies

If Buyer fails to pay any amounts due to Seller hereunder in accordance with the terms for such
indebtedness (except disputed amounts withheld in accordance with Article 7 hereof) Seller may, in
addition to any other remedies, postpone or withhold the supply of Product, change payment terms,
cancel and/or terminate this Contract by written notice to Buyer. Notwithstanding any provision
in this Contract, Seller shall have no obligation to pay any rebate or provide any allowance or
credit to Buyer if Buyer has not paid Seller by the payment date as required by this Contract
(except disputed amounts withheld in accordance with Article 7 hereof). In the event that either
Party breaches any term or condition of this Contract, the breaching Party will reimburse the
non-breaching Party for all costs and expenses related to the non-breaching Party’s claim with
respect to such breach, including but not limited to reasonable attorneys’ fees. The remedies
provided in this provision are in addition to any and all other remedies available to either Party
under this Contract.

ARTICLE 13: Credit

On Seller’s request, Buyer will submit financial performance data at six (6) month intervals to the
Seller in sufficient detail as is necessary for the Seller to form a clear judgment over the
financial health of the Buyer. If Seller determines that additional discussion is necessary, an
open dialogue will then take place between appropriate financial representatives of the Buyer and
the Seller with the aim of establishing continued confidence on the part of the Seller to continue
sales of Product under the terms in this Contract. Seller reserves the right to request the
provision of the aforementioned financial performance data at any time outside the normal six (6)
month process. Should the creditworthiness or financial capability of Buyer become unsatisfactory
in the judgment of Seller at any time during the term of this Contract, Seller may require advance
cash payment or other credit security measures to the satisfaction of Seller prior to delivery of
Product and such requirement shall not constitute a change to the payment terms of this Contract.
Where credit security measures are required (e.g. letter of credit), Buyer shall bear the cost of
the security. The supply of Product may be postponed or withheld until such advance cash payment is
received or credit security measure(s) is implemented. Anything in this Article 13 to the contrary
notwithstanding, if Seller implements any changes in Buyer’s credit in accordance with this Article
13, which in Buyer’s judgment is unacceptable to Buyer, Buyer shall be entitled to terminate this
Contract on ninety (90) days prior written notice to Seller and Buyer shall pay Seller for all
Product in consignment or already delivered to Buyer as of the termination date.

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

ARTICLE 14: Tax

Any tax (other than on income), duty or other governmental charge now or hereafter imposed
upon Seller on the transportation, sales or use of the Product will be paid by Buyer in addition to
the price.

ARTICLE 15: E-business

Buyer and Seller will co-operate in establishing cost effective and mutually acceptable methods of
conducting business electronically in support of this Contract.

ARTICLE 16: Notices and Contacts

Any notice related to this Contract, and required or permitted to be given under this Contract by
one Party to the other shall only be effective if in writing, addressed to the other Party as
provided below, and either (i) delivered in person, (ii) sent by facsimile with confirmation
statement of transmission, (iii) delivered by registered mail or (iv) delivered by private, prepaid
commercial courier. A Party may change its designated recipient(s) of notices and/or address(es)
for notices under this provision by written notice to the other Party. It is further provided
however that Buyer may provide written notice by email to Seller of Buyer’s quantity nominations,
estimates and forecasts of Product required under this Contract unless Seller otherwise directs by
written notice to Buyer. Any such email notice shall be sent to the person(s) designated by Seller
in this Contract or otherwise provided by Seller in an email or other method of notice permitted
under this Contract.

To Buyer:

KRATON Polymers U.S. LLC

15710 John F Kennedy Blvd

Suite 300

Houston, Texas 77032

Fax: 281-504-4769

Attn: Global Monomers Purchasing Manager

To Seller:

Shell Chemical LP

P.O. Box 2463

Houston, TX 77252-2463

Or

910 Louisiana Street

Houston, TX 77002

Fax: (713) 241-6465

Attn: Sales Director, C4/C5 Olefins

ARTICLE 17: Compliance with Laws

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

Each Party, in the performance of this Contract, shall comply with all applicable laws and
governmental rules, regulations and orders.

ARTICLE 18: Governing Law and Dispute Resolution

THIS CONTRACT AND ANY DISPUTE OR CLAIM OF WHATEVER NATURE ARISING OUT OF OR IN CONNECTION WITH IT
WILL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO ITS CONFLICTS OF LAWS
PRINCIPLES. The United Nations Convention on Contracts for the International Sale of Goods is
excluded. All and any disputes or claims arising out of or in connection with this Contract
including, but not limited to, any question regarding its interpretation, existence, validity or
termination, shall be exclusively referred to and finally resolved by the appropriate State and
Federal courts in Harris County, Texas and the Parties waive any objection to such proceedings on
the grounds of venue or on the grounds that the proceedings have been brought in an inappropriate
forum. Each Party stipulates that such courts shall have in personam jurisdiction over each of
them for the purpose of litigating any dispute or claim arising out of or in connection with this
Contract.

ARTICLE 19: General

19.1 Exporter of Record

Notwithstanding anything to the contrary contained in this Contract, if the Product covered by this
Contract is to be exported from the United States of America, the Buyer shall, for purposes of this
Contract, be the “exporter of record” as that term is used by U.S. Customs and/or the Bureau of
Industry and Security (“BIS”) and shall comply with all regulations (including, but not limited to,
those related to reporting, filing and record keeping) of U.S. Customs and/or the BIS. In the
event Buyer exports any Product, Buyer shall indemnify and hold harmless Seller from any and all
costs arising from any and all anti-dumping claims or investigations resulting from Buyer’s export
of Product.

ARTICLE 20: Assignment

Neither this Contract (including, but not limited to, all rights, duties and obligations hereunder)
nor any claim against Seller or Buyer arising directly or indirectly out of or in connection with
this Contract will be assignable by Seller or Buyer or by operation of law, without the prior
written consent of the other Party and such consent not to be unreasonably withheld; except, that
(i) Buyer shall be entitled to assign this Contract to a purchaser or successor of Buyer’s assets
at the Facility at which Product delivered hereunder is being consumed, unless in Seller’s
reasonable judgment such purchaser or successor presents an unacceptable credit risk to Seller and
(ii) Seller shall be entitled to assign this Contract to a purchaser of or other successor to a
significant portion of Seller’s assets involved in the manufacture of Product at Seller’s Norco,
Louisiana site. Notwithstanding anything to the contrary in this Article 20, either Party may
assign any right or benefit under this Contract to an Affiliate without the consent of the other
Party.

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CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

ARTICLE 21: No Waiver

No waiver or failure to exercise any option, right or privilege under the terms of this Contract by
either of the Parties hereto on any occasion or occasions shall be construed to be a waiver of the
same option, right or privilege or of any other option, right or privilege on any other occasion.

ARTICLE 22: Survival

All provisions with respect to payment obligations, disclaimer of warranties, waivers of claims,
indemnification, limitations of liability, notice of claims, tax, governing law and dispute
resolution, assignment, no waiver and entire agreement and release shall survive the expiration or
termination of this Contract.

ARTICLE 23: Headings

The headings in this Contract are used for ease of reference only and shall not be taken into
account in the construction or interpretation of any provision to which they refer or of this
Contract.

ARTICLE 24: Amendments

This Contract may not be amended or modified orally and no amendment or modification shall be
effective unless it is in writing and signed by the authorized representatives of each of the
Parties.

ARTICLE 25: Entire Agreement and Release

Each Party acknowledges that it has not relied upon any pre-contractual statements in agreeing to
enter into this Contract. This Contract contains the entire agreement of Seller and Buyer relating
to the subject matter of this Contract, and supersedes and extinguishes any other documents or
pre-contractual statements (whether oral or written) related to the same subject matter not
expressly repeated in this Contract. Further, this Contract terminates all prior contracts between
Seller and Buyer concerning the same Product and each Party releases the other from all claims
arising in connection with any such prior contracts except for any indebtedness or indemnity
obligation of Buyer to Seller. Neither this Contract nor any document supplementing or amending
this Contract will be binding unless signed by both Parties, and performance prior to such
execution will not constitute a waiver of this requirement.

EFFECTIVE ONLY if signed by Buyer and returned within thirty (30) calendar days of April 25,
2006 and then signed by Seller. Any shipment of Product made during the period of this Contract,
but prior to execution, will be deemed to have been made under the terms hereof once the Contract
is signed.

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	KRATON POLYMERS U.S. LLC	 	 	 	SHELL CHEMICAL LP	 
	 
	 	 	 	 	 	 	 	 	 
	By:

	/s/ David A. Bradley 	 	 	By:	/s/ R. Terry Schieber
	 

	 
	 	 	 	 	 	 
	David A. Bradley	 	 	 	R. Terry Schieber	 
	Vice President of Operations	 	 	 	Sales Director, C4/C5 Olefins	 
	 
	 	 	 	 	 	 	 	 	 
	Date:

	April 30, 2006	 	Date:	April 26, 2006
	 

	 	 
	 	 	 	 	 	 	 

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Attachment 1A

1,3 Butadiene Specifications

These specifications apply when Product is supplied from a Seller owned facility.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Specification	 	 	 
	 	 	 	 	Min.	 	 	 	 
	Specification Property	 	UOM	 	Limits	 	Max. Limits	 	Test Method
	 
	[***] [Confidential
Treatment Requested]	 	 	 	Clear Colorless Liquid free of entrained matter	 	Visual
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	%w
	 	[***] [Confidential
Treatment Requested]
	 	 	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]

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	 	 	 	 	Specification	 	 	 
	 	 	 	 	Min.	 	 	 	 
	Specification Property	 	UOM	 	Limits	 	Max. Limits	 	Test Method
	 
	[***] [Confidential
Treatment Requested]

	 	%w
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	%v
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]

 

			
	(1)	 	[***] [Confidential Treatment Requested]
	 
	(2)	 	[***] [Confidential Treatment Requested]

18

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

Attachment
1B

1,3 Butadiene Specifications

These specifications apply when Product is supplied from a non-Seller owned facility.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Specification	 	 
	 	 	Unit Of	 	Min.	 	Max.	 	 
	Specification Property	 	Measure	 	Limits	 	Limits	 	Test Method
	 
	Appearance (1)	 	 	 	Clear & Free of Entrained Matter	 	Visual
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	%w
	 	[***] [Confidential
Treatment
Requested]
	 	 	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	%w
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]	 	ppmw	 	[***] [Confidential Treatment Requested]	 	[***] [Confidential
Treatment Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]	 	ppmw	 	[***] [Confidential Treatment Requested]	 	[***] [Confidential Treatment Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]	 	ppmw	 	[***] [Confidential Treatment Requested]	 	[***] [Confidential Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]

19

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Specification	 	 
	 	 	Unit Of	 	Min.	 	Max.	 	 
	Specification Property	 	Measure	 	Limits	 	Limits	 	Test Method
	 
	[***] [Confidential
Treatment Requested]

	 	%v
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested] 

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	%w
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 
	[***] [Confidential
Treatment Requested]

	 	ppmw
	 	 	 	[***] [Confidential
Treatment Requested]
	 	[***] [Confidential
Treatment
Requested]

 

			
	(1)	 	[***] [Confidential Treatment Requested]
	 
	(2)	 	[***] [Confidential Treatment Requested]

20

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

Attachment
2

Butadiene Product Price / Discount Schedule

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BD USGC	 	 	 	 	 	 	 	 
	 	 	Marker Price	 	 	 	 	 	 	 	 
	 	 	in cents per	 	 	 	 	 	 	 	Purchase
	 	 	pound (“cpp”)	 	% discount	 	 	 	cpp discount	 	Price
	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]

21

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BD USGC	 	 	 	 	 	 	 	 
	 	 	Marker Price	 	 	 	 	 	 	 	 
	 	 	in cents per	 	 	 	 	 	 	 	Purchase
	 	 	pound (“cpp”)	 	% discount	 	 	 	cpp discount	 	Price
	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]

22

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BD USGC	 	 	 	 	 	 	 	 
	 	 	Marker Price	 	 	 	 	 	 	 	 
	 	 	in cents per	 	 	 	 	 	 	 	Purchase
	 	 	pound (“cpp”)	 	% discount	 	 	 	cpp discount	 	Price
	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	Effective
January
1, 2007

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 
	 	 	 	 	 	 	 	 	 	 
	May 1 –
December
31, 2006

	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]
	 	[***] [Confidential
Treatment
Requested]

 

			
	[***]	 	[Confidential Treatment Requested]

23

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

Attachment 3

BARGE DELIVERIES TO BUYER’S FACILITY

	a.	 	Seller shall provide Buyer notification (via fax, radio, telephone, e-mail) as deemed
necessary by the Seller or when Buyer requests such information prior to arrival of the barge
at Joe S. Towing (Neales Fleet) in Vienna, WV.
	 
	b.	 	When the barge has arrived at Neales Fleet and is ready to discharge Product, the barge
operator shall give the Buyer notice of arrival and readiness by radio or telephone.
	 
	c.	 	Buyer shall provide a discharging berth at Buyer’s Facility, free of wharfage or dockage
charges, to which a barge may safely proceed, at which it may safely lie and from which it may
safely depart.
	 
	d.	 	Laytime shall commence when notice of arrival is given and shall end when the cargo on the
last barge has been discharged and all hoses are disconnected. Unless otherwise notified,
allowed laytime permitted Buyer for discharging without charge shall be [***] [Confidential
Treatment Requested] per barge, or equal to the hours contained in marine contract with towing
company, whichever is the lesser. After laytime has expired, Seller may charge Buyer for
demurrage delays caused by Buyer at the rate contract rate then in effect per hour. For the
avoidance of doubt, Seller acknowledges and agrees that Seller shall not be entitled to charge
Buyer for demurrage delays, to the extent caused by any event outside the reasonable control
of Buyer.
	 
	e.	 	If required, Seller shall provide a licensed offloading tankerman (selected and approved
by the Buyer) to secure the shore offloading hoist to the barge, and the Seller shall bear
the charges. Seller shall pay reasonable shifting and fleeting charges. If the offloading
terminal requires tug standby during the offloading operation solely because the physical
structure of the barge prevents the barge from being safely accommodated at the berth, any
additional charges for this service shall be borne by Seller.

24

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

Attachment 4

RAIL CAR LEASE AGREEMENT

This Lease becomes a part of the Contract upon execution of the Contract and, unless otherwise
specifically provided herein, applicable provisions of the Contract (e.g., Excuses for
Nonperformance, Notices, Governing Law, Assignment) shall be deemed included in this Lease. Any
terms used in this Lease which are defined in the Contract are intended to have the same meaning
when used in this Lease.

1. PERIOD. This Lease shall be in effect from the date of the Contract and will continue in
effect for the duration of the Contract to which it is attached; otherwise, the Lease may be
terminated by either party at any time by giving the other party at least 15 days written notice.

2. LEASE. Each private Railroad car in which Seller, during the continuance of this Lease, ships
Products to Buyer’s destination, shall automatically become and be subject to this Lease from the
time when said car is delivered by Seller to a Railroad for transportation to Buyer until the time
when said car is actually released empty by Buyer to a Railroad; but said car shall be deemed to be
in Buyer’s possession only when it is actually or constructively placed for Buyer’s use.

3. USE-DETENTION. Buyer’s use of cars under this Lease is restricted to the initial
transportation of the Products shipped therein, and for temporary storage of said Products while in
Buyer’s possession. Buyer shall not be entitled to any mileage allowances accruing with respect to
said car. If Buyer uses the car(s) for other transportation needs without Seller’s prior approval,
then Buyer’s possession for detention purposes will not terminate until the receipt and acceptance
of car(s) at Seller’s designated delivery location. For each full or fractional calendar day
during which any car remains in Buyer’s control beyond the free time specified below for the type
of car, Buyer shall pay Seller on demand a detention charge at the daily rate specified for said
car. Calculation of free time will commence with the constructive placement of the car by a
Railroad until Lessee releases empty car to a Railroad. The daily rate specified is subject to
change by Seller on at least 30 days written notice:

	 	 	 	 	 
	       Car Type	 	Free Time	 	Daily Rate
	 
	 	 	 	 
	       Pressure Tank Car

	 	[***] [Confidential

Treatment Requested]
	 	[***] [Confidential
Treatment
 Requested]

4. DAMAGE. If any car is in any respect damaged or defective when it enters Buyer’s possession,
in addition to providing written notice, Buyer shall promptly notify Seller by calling
(713)241-3345, and also notify the delivering Railroad. If no such notice is given, Lessee is
deemed to have accepted the car in the condition in which delivered. Buyer shall not undertake

25

 

CONFIDENTIAL TREATMENT REQUESTED

WITH RESPECT TO CERTAIN PORTIONS HEREOF

DENOTED WITH “***”

any repair of or other work on said car(s) (except for emergency repairs) without Seller’s prior
approval. When possession of any car is surrendered by Buyer, it shall be in as good condition as
when received by Buyer, excepting reasonable wear and tear. Buyer will be responsible for any
missing parts, damage or destruction of said car while in Buyer’s possession.

5. INDEMNIFICATION. Buyer shall defend (if said defense is tendered to Buyer), indemnify and hold
Seller harmless from and against all claims, liabilities, losses, damages, costs and expenses
(including reasonable attorneys’ fees) arising out of or in connection with the use of any car
pursuant to the terms of this Lease, except claims, liabilities, losses, damages, costs and
expenses (i) to the extent one or more Railroads have assumed full responsibility or (ii) to the
extent resulting from the active negligence or willful misconduct of Seller.

26

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