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Exhibit 10.3  

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPERATELY FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**).  

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APPENDIX A

 
  HYDROGEN SUPPLY AGREEMENT    
    
    BY AND BETWEEN    
    
    MARKWEST BLACKHAWK, L.P.    
    
    AND    
    
    CITGO REFINING AND CHEMICALS COMPANY L.P.    

 

        THIS HYDROGEN SUPPLY AGREEMENT ("Agreement") is made and entered into effective September 28, 2007
("Effective Date"), by and between MarkWest Blackhawk, L.P., a Texas limited partnership with offices at 1515 Arapahoe Street, Tower 2, Suite 700, Denver, CO 80202 ("MarkWest"), and CITGO
Refining and Chemicals Company L.P., with offices at 1802 Nueces Bay Boulevard, Corpus Christi, TX 78407 ("CITGO"). MarkWest and CITGO may be referred to individually as a "Party" or collectively as
the "Parties". 

WITNESSETH:  

        WHEREAS, in order for CITGO to be able to produce and sell diesel in the U.S. market in compliance with applicable
laws and regulations, CITGO has elected to construct a new ultra low sulfur diesel Hydrotreater ("Hydrotreater") to be located at its West Refinery at 17350 Highway 37 West, Corpus Christi, Texas
78408, and in order to operate the Hydrotreater, CITGO must have a reliable supply of hydrogen; and 

        WHEREAS, CITGO desires to enter into an agreement for the supply of hydrogen as required by CITGO for the Hydrotreater and CITGO's East
Refinery located at 1802 Nueces Bay Boulevard, Corpus Christi, Texas 78407; and 

        WHEREAS, MarkWest owns and operates the MarkWest Javelina Company Plant (the "Plant") located at 5438 Union Street, Corpus Christi, TX
78407 which extracts hydrogen from refinery off-gas and shall build, own and operate a steam methane reformer (the "SMR") to produce additional hydrogen for sale to CITGO and other local
refiners and shall install, construct and
operate pipeline facilities and compression facilities, all of which shall be located on or near the Plant property in order to supply the hydrogen required by CITGO for the Hydrotreater and the East
Refinery, in accordance with this Agreement; and 

        WHEREAS, MarkWest represents that it is skilled in the development, design, construction and operation of hydrogen generation facilities
and has the ability and resources to undertake the development, financing, permitting, engineering, procurement, construction, operation and maintenance of the hydrogen generation facilities as
further described below, and to produce and sell hydrogen to CITGO in accordance with this Agreement; and 

        WHEREAS, once the Hydrotreater is operational, CITGO desires to purchase, and MarkWest desires to sell, certain quantities of Hydrogen
produced from the SMR and the Plant, subject to the terms and conditions of this Agreement. 

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        NOW, THEREFORE, in consideration of the promises and mutual covenants set forth herein, the mutual benefits to be derived and other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 

ARTICLE I

DEFINITIONS  

        As used in this Agreement, the following terms, when capitalized, whether in the singular, plural or possessive, shall have the meaning set forth below: 

        1.1   "Affiliate"
means any company or legal entity which controls a Party, is controlled by a Party, or which is controlled by an entity which controls a Party. "Control", as
used in this Agreement, means the ownership directly or indirectly of more than fifty percent (50%) of the voting rights in a company or other legal entity, or the right, directly or indirectly,
through its ownership position or through contract, to direct the management and policies of a company or other legal entity. 

        1.2   "Base
Service Charge" or "BSC" is the flat amount charged to CITGO Monthly, except as otherwise provided in Article VII. 

        1.3   "Btu"
means British thermal unit, and "MMBtu" shall mean one million (1,000,000) Btus. 

        1.4   "Business
Day" means any Day except Saturday, Sunday or Federal Reserve Bank holidays. 

        1.5   "Commercial
Operation Date" or the "COD" shall have the meaning set forth in Section 2.9. 

        1.6   "Contract
Year" means each consecutive twelve (12) Month period commencing on the Supply Commencement Date. 

        1.7   "Day"
means a period of twenty-four (24) consecutive hours commencing at 7:00 a.m. Central Clock Time, on one calendar day and ending at
7:00 a.m. Central Clock Time on the next calendar day, or such other period as the Parties may agree. 

        1.8   "Delivery
Point" means the point at which custody and title to the Hydrogen is transferred from MarkWest to CITGO where: 

        (a)   in
the case of the East Refinery, the Delivery Point shall be the outlet flange of the existing measurement facilities located in the southeast corner of MarkWest's
Plant site near the interconnection of MarkWest's existing pipeline and CITGO's existing east/west hydrogen pipeline; and 

        (b)   in
the case of the West Refinery, the Delivery Point shall be at the outlet flange of the measurement facilities between MarkWest's pipeline, to be constructed by
MarkWest in accordance with this Agreement, and CITGO's pipeline. Such location will be in the vicinity of the existing measurement facilities by which CITGO supplies Off-Gas from the West
Refinery to MarkWest. 

        1.9   "East
Refinery" means CITGO's East Refinery located at 1802 Nueces Blvd., Corpus Christi, TX 78407. 

        1.10 "Facilities"
means, collectively, the Plant, the SMR and MarkWest's pipeline facilities, compression facilities and other facilities used to produce, deliver and supply
the Hydrogen to CITGO hereunder. 

        1.11 "First
and Second Contingency Failure Protection" shall have the meaning set forth in Article II. 

        1.12 "Force
Majeure Event" shall have the meaning set forth in Section 12.1. 

        1.13 "Hydrogen"
means a gas conforming to the specifications set forth in Article IV. 

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        1.14 "Hydrotreater
Project" shall mean the CITGO project for the design, engineering and construction of the new Hydrotreater. 

        1.15 "KWh",
whether or not capitalized, means kilowatt hour. 

        1.16 "MMscf"
means one million standard cubic feet of gas measured at standard conditions; for Hydrogen the standard conditions of measurement shall be 60 degrees
Fahrenheit and 14.65 psia. 

        1.17 "Month
and Monthly" means the period of time beginning at 7:00 a.m. Central Clock Time on the first Day of each calendar month and ending at 7:00 a.m.
Central Clock Time on the first Day of the next calendar month. 

        1.18 "Monthly
Average Volume" means the total volume of Hydrogen sales to CITGO from MarkWest under this Agreement in a Month divided by the total number of Days in that
same Month. 

        1.19 "Notice
to Proceed" or "NTP" shall have the meaning set forth in Section 2.1. 

        1.20 "NGP"
means the actual weighted average purchase price, per MMBtu, paid by MarkWest for natural gas purchased from either non-affiliated third parties or
CITGO for the SMR during the applicable Month. 

        1.21 "Off-Gas"
means gas produced as a by-product of refining crude oil and other refinery feedstocks and used as a feedstock for the Plant. 

        1.22 "Power
Cost or PC" reflects the actual electricity price per kWh charged to MarkWest by the electrical provider for the current Month multiplied by the deemed kWh usage
of 129,600 kWh per Day, except as adjusted in accordance with Section 7.4. 

        1.23 "Psia",
whether or not capitalized, means pound per square inch absolute. 

        1.24 "Psig",
whether or not capitalized, means pound per square inch gauge. 

        1.25 "Refinery"
means the East Refinery and/or the West Refinery, as specified herein. 

        1.26 "Request
Rate" shall have the meaning set forth in Section 3.2. 

        1.27 "Required
COD" shall have the meaning set forth in Section 2.10. 

        1.28 "Scheduled
Downtime" means a period of time scheduled in advance with prior written notice provided by the scheduling Party to the other Party during which the
scheduling Party performs periodic maintenance, repairs, modifications and testing, including integrity testing of pipelines and vessels, of either Party's facilities required to supply or receive the
Hydrogen and as further defined in Article VI. 

        1.29 "Specifications"
means the specifications for the Hydrogen set forth in Article IV. 

        1.30 "Supply
Commencement Date" shall have the meaning set forth in Section 3.1. 

        1.31 "ULSD"
means ultra low sulfur diesel. 

        1.32 "Unexcused
Downtime Event" means an event resulting in MarkWest curtailing the delivery of Hydrogen to CITGO at the West Refinery Delivery Point to a quantity of less
than ** MMscf for any Day; provided, however, any curtailment of delivery of Hydrogen at the West Refinery Delivery Point to a quantity of less than  ** MMscf due to the following events shall not be considered an Unexcused Downtime Event: (i) the inability of CITGO to receive at least  ** MMscf of Hydrogen; (ii) a Request Rate by CITGO
of less than ** MMscf; (iii) a
Scheduled Downtime Event; or (iv) a Force Majeure Event. 

        1.33 "Variable
Charge" or "VC" means the Hydrogen price component that varies based upon quantity of Hydrogen purchased during the Month, as further defined in
Section 7.1. 

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        1.34 "West
Refinery" means CITGO's West Refinery located at 17350 Highway 37 West, Corpus Christi, TX 78408. 

ARTICLE II

CONSTRUCTION OF THE SMR  

        2.1   CITGO
shall provide to MarkWest written notice requesting that MarkWest proceed with construction of the SMR, pipeline and compression facilities as soon as practical
after the Effective Date ("Notice to Proceed" or "NTP"). The NTP shall be irrevocable and without any
conditions beyond those conditions expressly set forth in this Agreement. MarkWest shall have no obligation to commence construction, engineering and design hereunder until receipt of the NTP. If the
NTP occurs after **, the Required COD shall be extended Day for Day for each Day the NTP occurs after  **. 

        2.2   In
connection with the construction, engineering and design of the SMR, the compression facilities and the pipeline facilities to deliver Hydrogen to CITGO: 

        (a)   MarkWest
shall make certain engineering documentation available to CITGO's engineers and consultants describing the proposed interconnection facilities between
MarkWest's Facilities and CITGO's West Refinery. 

        (i)    CITGO
shall be entitled to review the design of any such interconnection facilities and to request commercially reasonable modifications thereto; 

        (ii)   CITGO
must make any such requests for modifications of the design of interconnection facilities within fourteen (14) Days following receipt of the design from
MarkWest. 

        (iii)  In
the event CITGO makes no such requests for modification within such fourteen (14) Day period, then CITGO shall be deemed to have waived its right hereunder
to request any modifications to the design of the interconnection facilities. 

        (b)   MarkWest
will consider CITGO's design modification requests but shall have no obligation to undertake any such modifications. In considering any such requested
modifications, MarkWest shall have the right to: 

        (i)    evaluate
the technical, cost and schedule impacts of each requested change; and 

        (ii)   receive
commensurate price and schedule adjustments from CITGO to implement those requested modifications. 

Within
fourteen (14) Days of receiving CITGO's request, if MarkWest elects to undertake such modifications, MarkWest shall provide to CITGO the technical, cost and schedule impacts of such
modifications ("Design Proposal"). CITGO shall have seven (7) Days upon receipt of the Design Proposal to accept or reject the Design Proposal. If CITGO does not approve the Design Proposal
within seven (7) Days following MarkWest's submittal, CITGO shall be deemed to have withdrawn its requested design modifications. If CITGO approves the Design Proposal within seven
(7) Days following MarkWest's submittal, MarkWest will proceed to implement such modifications and CITGO shall reimburse MarkWest for its actual and documented costs incurred for such
modifications, and the Parties shall be deemed to have agreed to any extension of the Required COD as specified in the Design Proposal. 

        (c)   The
design, construction, installation, and operation of the SMR, the compression facilities and the pipeline facilities shall comply with all applicable laws and
regulations and conform to generally accepted industry standards. 

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        (d)   MarkWest
will design, construct, install, and operate the pipeline delivering Hydrogen to the West Refinery to be capable of being internally integrity tested while
delivering Hydrogen with no material decrease or disruption of Hydrogen delivery to the West Refinery. 

        (e)   MarkWest
will design, construct, install, and operate the SMR and the compression facilities in such manner as to provide "First and Second Contingency Failure
Protection." First and Second Contingency Failure Protection means: 

        (i)    providing
a suitable level of redundancy for key items of equipment included in the SMR and the compression facilities, to be determined in MarkWest's sole and
commercially reasonable discretion. This would include, but not be limited to, dual electrical feed sources to the Facilities and two (2) hydrogen compressors each designed to provide a
capacity of fifty (50) MMscf per Day; 

        (ii)   avoiding
reliance, in a commercially reasonable manner, on a single component or element that MarkWest deems critical to continued operation of the SMR and the
compression facilities and that can result in an Unscheduled Downtime Event; and 

        (iii)  preparing
a process design analysis indicating commercially reasonable conformance with this requirement. 

        (f)    The
Parties agree that remedies for any failure to provide First and Second Contingency Failure Protection or failure of such First and Second Contingency Failure
Protection shall be limited to the remedies set forth herein for the failure to deliver Hydrogen. 

        (g)   The
SMR, the compression facilities and pipeline facilities will be designed and constructed to permit operation of the Plant and the SMR independently, one from the
other. The design shall provide that operation of the Plant, or failures in the Plant operations, shall not impair MarkWest's operation of the SMR in accordance with this Agreement. The SMR will be
designed and constructed to have a capacity of between thirty (30) and thirty-three (33) MMscf per Day of Hydrogen. 

        (h)   MarkWest
shall, subject to the other provisions of this Agreement, complete all work, obtain all permits and/or other governmental approvals which may be required, and
comply with all applicable laws and regulations. 

        2.3   CITGO
shall have the following obligations during the period prior to COD: 

        (a)   If
requested by MarkWest, CITGO may, but is not obligated to, assist MarkWest, at MarkWest's sole cost and expense, in MarkWest's negotiation and execution of the
right-of-way agreement needed for the pipeline delivering Hydrogen to the West Refinery; provided, however, at no cost to MarkWest, CITGO shall assign rights to MarkWest under
CITGO's existing rights-of-way and easements as necessary for MarkWest to construct and install the new hydrogen product pipeline but only to the extent that
CITGO owns or controls such rights-of-way and easements and those rights-of-way and easements can be assigned hereunder without the necessity of
obtaining any third party consents or approvals. 

        (b)   CITGO
shall provide, install, operate and maintain (or cause to be provided, installed, operated, and maintained) at its sole cost, risk and expense all necessary
pipelines, instrumentation, equipment (including meters, telemetry, and telecommunication equipment) and related facilities downstream of the Delivery Points to enable CITGO, or its designee, to
safely and efficiently receive Hydrogen from MarkWest at the Delivery Points. 

        (c)   During
the testing of MarkWest's SMR, the compression facilities and the pipeline facilities, MarkWest may notify CITGO of any Hydrogen MarkWest has available for
purchase. CITGO shall purchase such Hydrogen from MarkWest on an "on call" basis up to CITGO's ability 

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to
receive such Hydrogen during the testing period. MarkWest shall provide CITGO prior written notice, expected to be five (5) days or more, of the schedule describing the anticipated volumes
and dates for such testing. The anticipated volumes of such Hydrogen may range from zero (0) to thirty-three (33) MMscf per Day, but is not expected to exceed an aggregate, during the
testing period, of eighty-three (83) MMscf. The purchase price for Hydrogen during the testing period shall be the ** pricing as defined in
Section 7.1. 

        2.4   MarkWest
will conduct project status meetings, not less frequently than once each Month, with its general contractor and primary sub-contractors during
construction of the SMR, the compression facilities and the pipeline facilities during which the CITGO Hydrotreater Project Manager and Construction Manager (or their designees) may attend as an
observer. The monthly project status meeting will be held at a time specified by MarkWest to CITGO on seven (7) Days prior notice, commencing in September 2007, at a location to be
designated by MarkWest. The meeting agenda will routinely address, among other things: 

	•
	project
schedule status

	•
	4-week
look ahead

	•
	project
schedule risks

	•
	proposed
mitigation plans to any matters adversely affecting the schedule 

        2.5   After
the start of construction, MarkWest will allow, at reasonable times and after reasonable advance notice, the CITGO Hydrotreater Project Manager and/or Construction
Manager (or their designees) to tour the Facility ISBL construction site to observe overall construction status, all at the sole risk and liability of the Hydrotreater Project Manager and/or
Construction Manager (or their designees). The CITGO representative's site tour will be conducted and escorted by a MarkWest representative (or designee). 

        2.6   MarkWest
will, during construction of the SMR, the compression facilities and the pipeline facilities communicate with CITGO on all issues and other matters that may
affect the Milestone Schedule or the Required COD. 

        2.7   The
Milestone Schedule, attached hereto and incorporated herein by reference as Exhibit A, contains a list of key schedule milestones for Facility development
through COD, with interim non-binding target dates for completion ("Milestones"). During the term hereof, if CITGO, in the exercise of its reasonable judgment, believes that MarkWest is
not on schedule to meet the Milestones, CITGO may notify MarkWest in writing, specifying the Milestones that it believes MarkWest will not meet and the reasons for such belief. MarkWest shall respond
to CITGO's notice within ten (10) Business Days of receipt thereof, specifying in detail: (i) the reasons that MarkWest believes the specified Milestones will be met, (ii) any
Force Majeure Event which may have caused and/or excused any delay in meeting the Milestones, or (iii) the measures that MarkWest will undertake to ensure the Milestones are met. 

        2.8   Subject
to the other provisions of this Agreement, CITGO may, but is not obligated to, request that MarkWest take additional steps to accelerate completion of MarkWest's
Facilities, and to accelerate delivery of the Hydrogen to CITGO, including by way of example, but without limitation, hiring additional employees and contractors, paying overtime, expediting shipments
and equipment repairs, and MarkWest shall consider such steps in good faith and shall not unreasonably withhold its consent to implement any such steps. If MarkWest elects to undertake such additional
steps, MarkWest will inform CITGO of the incremental costs to be incurred. Upon CITGO's agreement to reimburse MarkWest for such incremental costs, MarkWest will proceed to implement the requested
additional steps it has elected to undertake and CITGO shall reimburse MarkWest for such actual, and documented incremental costs incurred for such implementation. Notwithstanding anything herein to 

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the
contrary, if CITGO elects to exercise its right under this Section 2.8, except for CITGO's obligations to reimburse MarkWest as set forth above, CITGO shall not incur any additional
liabilities or obligations to MarkWest or be deemed to have waived any of its rights and remedies under this Agreement and applicable law by exercising such right. 

        2.9   When
MarkWest determines that the Facilities are operating and MarkWest is capable of delivering Hydrogen in accordance with this Agreement, MarkWest shall provide
written notice to CITGO confirming the effective date, and providing supporting documentation, of such readiness. The effective date of such notice is referred to herein as the "Commercial Operation
Date" or the "COD". 

        2.10 If
the COD does not occur by **, or such other date as extended pursuant to Sections 2.1 and/or
2.2(b) (the foregoing date is referred to as the "Required COD") and CITGO has confirmed in writing to MarkWest that the Hydrotreater is ready to begin receiving the Hydrogen, then MarkWest
shall make the following options available to CITGO: 

        (a)   MarkWest
shall proffer Hydrogen available from the Plant to CITGO at the ** price until the COD ("Interim Service
Period"). If such Hydrogen is accepted by CITGO during the Interim Service Period, then MarkWest's liquidated damages, described in 2.11 below, shall be reduced pro-rata based on the
Hydrogen actually delivered by MarkWest, excluding any Hydrogen purchased by CITGO from third parties which are included in the Hydrogen delivered by MarkWest, to CITGO as compared to the Request
Rate; and 

        By
way of example and for illustrative purposes only: 

        **

        2.11 If
the COD does not occur by the Supply Commencement Date, MarkWest shall pay to CITGO liquidated damages for each Day the COD occurs after the Supply Commencement Date
unless any such delay is due to a Force Majeure Event. **. The Parties agree that it would be difficult to ascertain the damages and losses suffered by
CITGO if the COD does not occur by the Supply Commencement Date and an adequate remedy at law might not be available to CITGO. Accordingly, the liquidated damages set forth in this Section 2.11
are not a penalty and are a reasonable amount to compensate CITGO for any such failure. The foregoing liquidated damages and any applicable rights and remedies under Article XI shall be CITGO's
sole and exclusive remedy if the COD does not occur by the Supply Commencement Date. 

        2.12 Each
Party shall follow its own environmental, health, safety and security program for all activities that occur within that respective Party's facilities or
operations. 

        2.13 In
the event either Party must work outside of that respective Party's property or facilities, but within the other Party's property, the Party upon whose property the
work is being performed shall grant the other Party such rights of ingress to, egress from and access upon such property as necessary to conduct such work and shall have its policies and procedures,
including, but not limited to, all environmental, health, safety and security requirements, apply and the other Party shall comply with such policies and procedures. 

        2.14 Except
as otherwise provided herein, CITGO and MarkWest will each bear their own costs related to the subject matter of this Agreement. 

ARTICLE III

QUANTITY  

        3.1   On
the later to occur of (i) the effective date on which CITGO confirms in writing to MarkWest that the Hydrotreater is ready to begin receiving the Hydrogen or
(ii) the Required COD, as the case may be (the "Supply Commencement Date"), MarkWest will deliver and sell to CITGO, and CITGO will purchase and receive, the Hydrogen requested by CITGO in
accordance with Section 3.2 up to ** MMscf per Day (the "Contract Volume") produced at the Facility or obtained by MarkWest from third parties. 

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        3.2   From and after the Supply Commencement Date, CITGO will establish the daily volume of Hydrogen up to the Contract Volume to be delivered by MarkWest to CITGO at the
Delivery Point(s) ("Request Rate"). 

        3.3   The
Request Rate may be adjusted by CITGO at any time upon written notice from CITGO's Shift Superintendent to MarkWest in accordance with Article XIV. When CITGO
provides the Request Rate or any changes thereto, CITGO shall also specify the volume to be delivered to the Delivery Point for the West Refinery and to the Delivery Point for the East Refinery, but
not in an aggregate amount exceeding the Contract Volume. Upon receipt of notification of a revised or new Request Rate from the CITGO Shift Superintendent or his/her designee, MarkWest will adjust
its rate of production within the capabilities of the Facilities, in the manner described below to match the revised Request Rate: 

        3.3.1
If CITGO requests an increase in the Request Rate, MarkWest will make increased volumes of Hydrogen available to CITGO as soon as reasonably practical, and will apply the
applicable price under Article VII to all Hydrogen delivered. The revised Request Rate will become applicable for the purposes of Section 7.7 and 7.8 at such time as the increased
Request Rate has been achieved, but in no event more than fourteen (14) hours after CITGO has submitted the revised Request Rate. 

        3.3.2
If CITGO requests a decrease in the Request Rate, MarkWest will adjust the rate of production to the lower Request Rate as set by CITGO. If MarkWest is able to use, sell or
otherwise dispose of Hydrogen produced in excess of the revised Request Rate ("Excess Hydrogen") while reducing the production volumes to the revised Request Rate, MarkWest shall charge CITGO a fee
("Excess Hydrogen Disposal Fee") applicable to the Excess Hydrogen based upon the following schedule. The Excess Hydrogen Disposal Fee shall be the applicable Tier price set forth in
Article VII, and shall be invoiced to CITGO in MarkWest's Monthly invoice:    **

        3.3.2.2
During the period during which MarkWest is reducing production to meet the decreased Request Rate, MarkWest shall exercise commercially reasonable efforts to use, sell or
otherwise dispose of any Excess Hydrogen. If after exercising such efforts, MarkWest is unable to use, sell or dispose of all or a portion of the Excess Hydrogen, then CITGO will for a period of time  **,
 accept delivery of all such Excess Hydrogen for consumption or disposal by CITGO and the fees described in this Section 3.3.2 shall not
apply. If CITGO is unable to accept the Excess Hydrogen at the East Refinery or the West Refinery, the Parties will attempt to work together to safely minimize any flaring. 

        3.4   From
and after the Supply Commencement Date, MarkWest will produce and deliver Hydrogen, and CITGO shall request and receive Hydrogen, at a uniform rate of flow. 

        3.5   From
and after the Supply Commencement Date, MarkWest agrees that should it have insufficient volumes of Hydrogen to meet the Request Rate, MarkWest will first curtail
all other customers to whom hydrogen is being delivered from the Facilities to the extent necessary to meet the Request Rate hereunder. If MarkWest remains unable to meet the Request Rate through such
curtailment, then CITGO shall be entitled to cover the Request Rate from any sources until such time as MarkWest is able to accommodate the Request Rate. MarkWest shall reasonably cooperate and assist
CITGO in facilitating the supply of hydrogen needed to cover the Request Rate in such case. **. In no instance shall the volume to be transported or
compressed exceed the Contract Volume of this Agreement. MarkWest's provision of compression and hydrogen distribution pipelines and transportation shall be charged to CITGO as defined in
Section 7.9. 

        3.6   The
Parties acknowledge that Hydrogen produced from Off-Gas at the Plant includes Off-Gas provided by CITGO. As long as CITGO has an agreement in
place governing the delivery of Off-Gas from CITGO to the Plant, the Contract Volume shall remain at ** MMscf per Day. If such an agreement
is not in place, the Contract Volume shall be ** MMscf per Day. 

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        3.7   Subject
to the other provisions of this Agreement, CITGO agrees that it will not: (i) install or operate any equipment at the Refineries to supply hydrogen to the
Hydrotreater, (ii) purchase Hydrogen for the Hydrotreater from any party other than MarkWest, without MarkWest's prior written approval during any period when Hydrogen is being tendered by
MarkWest in accordance with this Agreement and MarkWest is complying with all its obligations under this Agreement. This Section 3.7 shall apply only to Hydrogen supplied to the Hydrotreater up
to the Contract Volume that meets the requirements hereunder and does not restrict CITGO from purchasing hydrogen (i) to meet CITGO's additional requirements or (ii) for its East
Refinery and/or (iii) for any other equipment or facilities from its Affiliates or any third parties. 

ARTICLE IV

HYDROGEN QUALITY  

        4.1   Hydrogen
shall meet the following Specifications: 

	Hydrogen (H2) purity	 	**
	

N2 + CH4	
 	
**
	

CO + CO2	
 	
**
	

Water	
 	
**

        4.2   MarkWest
agrees to provide all "material safety data sheets" pertaining to the Hydrogen purchased by CITGO. 

        4.3   MarkWest
will promptly notify CITGO's Refinery Shift Superintendent, by telephone and subsequently by facsimile in accordance with Article XIV, as soon as
practical, after MarkWest has obtained actual knowledge, that MarkWest is manufacturing hydrogen that does not meet the Specifications. 

        4.4   CITGO
may refuse to accept at the Delivery Points any hydrogen not meeting the Specifications and CITGO shall not be obligated to pay for any such hydrogen so rejected.
At CITGO's sole discretion, CITGO may continue to take hydrogen that does not meet Specifications. 

        4.5   If
MarkWest tenders hydrogen which fails to meet the Specifications, and CITGO agrees to accept such hydrogen, such hydrogen will be delivered to CITGO and CITGO will be
deemed to have waived the requirement to meet the Specifications. To the extent MarkWest tenders hydrogen having a composition less than ** (by volume)
of hydrogen, and such hydrogen is accepted by CITGO, the price for such nonconforming hydrogen will be discounted as further described in Section 7. 

        4.6   CITGO's
right to refuse non-conforming hydrogen and any applicable rights and remedies under Sections 7.7, 7.8, and 11.3 shall be CITGO's sole and
exclusive remedies for any MarkWest failure to deliver Hydrogen meeting the Specifications. 

ARTICLE V

A. DELIVERY AND MEASUREMENT  

        5.1   MarkWest
shall operate and maintain (or cause to be operated and maintained) at its sole cost, risk and expense all pipelines, instrumentation, equipment (including
meters, telemetry, and telecommunication equipment) and related facilities to enable MarkWest to safely and efficiently deliver Hydrogen to CITGO, or its designee, at the Delivery Points in accordance
with this Agreement. The metering systems shall be tested, and if necessary calibrated, once each Month at MarkWest's expense, and more frequently if reasonably requested by CITGO; provided, however,
CITGO shall pay for such additional requested testing and calibration if the meter(s) is found to be accurate within one percent (1.0%), otherwise, MarkWest shall pay for such additional requested
testing and calibration. 

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Should
the meter(s) be found inaccurate in excess of one percent (1.0%), on any test, and the period of inaccuracy is not definitely known or agreed upon, an adjustment will be made for one half the
period since the date of the last meter test. CITGO shall have the right to be present at the time of testing and calibration of the meter(s), and MarkWest shall give CITGO at least five
(5) Days advance notice prior to the testing and calibration of the meter(s). 

        5.2   Except
as provided for in Section 5.1, the quantity of Hydrogen delivered to the Delivery Point shall be deemed conclusively to be the quantity measured by
MarkWest or it's Affiliate's meter(s) at the Delivery Point, except where the meter(s) have ceased to function, in which case the quantity will be determined by the best available data using the first
of the following methods: (i) by correcting the error if the percentage error is able to be determined by calibration, test or mathematical calculation; (ii) by use of CITGO's check
meters, if installed and operating; (iii) by estimating the quantity based on CITGO's Hydrotreater hydrocarbon charge rate (that is, estimating the quantity of Hydrogen consumed based upon the
quantity of diesel treated in the Hydrotreater); (iv) by estimating the quantity based on the Request Rate; or (v) by estimating the quantity based on deliveries under similar
conditions. 

        5.3   The
Parties acknowledge that there is a minimum and maximum instantaneous rate of flow beyond which the measurement facilities at the Delivery Point will not be
accurate. MarkWest shall install and calibrate the measurement facilities such that the minimum accurate flow and maximum accurate flow encompasses CITGO's and MarkWest's mutually agreed upon expected
range of Hydrogen demand and CITGO shall submit Request Rates within that range. 

        5.4   From
and after the Supply Commencement Date, MarkWest shall deliver Hydrogen to CITGO at: (i) the Delivery Point of the West Refinery at a pressure not to exceed
the maximum operating pressure of CITGO's connection facilities at the Delivery Point, but not less than ** psig, and at a maximum temperature of  **
Fahrenheit; and (ii) the Delivery Point for the East Refinery at a pressure not greater than  ** psig, or less than ** psig, and at a maximum
temperature of **
Fahrenheit. 

        5.5   Each
Party shall have the right to be present at the time of any installation, cleaning, changing, repair, inspection or adjusting work relating to the measuring
equipment of the other Party that is used in connection with this Agreement. The Party planning to conduct any such work shall give the other Party reasonable notice thereof in order that all
necessary parties may be present. Notice to CITGO should be given to CITGO's Shift Superintendent. 

        5.6   Title to,
and risk of loss of the Hydrogen delivered hereunder, shall pass to CITGO from MarkWest at the Delivery Points. 

ARTICLE VI

SCHEDULED DOWNTIME  

        6.1   Either
Party planning a Scheduled Downtime shall provide the other Party with at least thirty (30) Days prior written notice, specifying the commencement date of
the Scheduled Downtime, the work to be performed, and the anticipated length of the Scheduled Downtime. 

        6.2   Each
Party shall use commercially reasonable efforts to coordinate its Scheduled Downtimes with the Scheduled Downtimes of the other Party, and in September of
each calendar year shall provide the other Party a non-binding forecast of its anticipated Scheduled Downtimes for the upcoming calendar year. 

        6.3   Scheduled
Downtimes for both MarkWest's Facilities and CITGO's Hydrotreater are anticipated to be scheduled for a duration of up to seventeen (17) Days at a
frequency of every thirty (30) to thirty-six (36) Months (a "Minor Downtime"); and a duration of up to thirty (30) Days at a 

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frequency
of once every seventy-two (72) Months (a "Major Downtime"). If practical, any recurring Minor Downtime(s) will be scheduled to occur during the Major Downtimes. 

ARTICLE VII

PRICING  

        **  

 ARTICLE VIII

NATURAL GAS SUPPLY  

        8.1   MarkWest
will acquire the natural gas to be used in the operation of the SMR. MarkWest may purchase all or a portion of the natural gas under long-term
agreements to provide supply reliability. However, MarkWest shall not enter into any natural gas contracts with a term longer than one (1) year without CITGO's prior written consent. Upon CITGO
receiving a written request from MarkWest for CITGO's consent to any such contract, CITGO shall have fourteen (14) Days to respond. If CITGO does not respond within that fourteen
(14) Day period, CITGO will be deemed to have provided its consent by acquiescence. 

        8.2   On
or before the 15th Day of each Month, CITGO will provide MarkWest a nomination of the quantity of Hydrogen (the "Nominated Quantity") that CITGO
anticipates will approximately match its Request Rate for the following Month. The Nominated Quantity will be used to determine the quantity of natural gas that will be required by MarkWest to produce
Hydrogen to meet the anticipated Request Rates during the following Month. 

        8.3   In
the event a variance arises between natural gas volumes purchased to meet CITGO's Nominated Quantity and the actual amount of natural gas sourced to meet CITGO's
Request Rates, any gain or loss on the resale of the excess natural gas purchases, or imbalance penalties imposed by natural gas suppliers, as a result of such variance shall be included in the NGP
calculation. 

        8.4   Notwithstanding
anything to the contrary herein, CITGO retains the option to purchase all the natural gas to supply the SMR, with MarkWest's consent which consent shall
not be unreasonably withheld ("Natural Gas Purchase Option"). If CITGO elects to exercise the Natural Gas Purchase Option, CITGO shall arrange for and pay for the purchase and delivery, including all
necessary transportation, to the SMR, and MarkWest shall purchase the natural gas from CITGO at CITGO's actual purchase price. MarkWest shall cooperate and assist CITGO in facilitating the delivery of
the natural gas to the SMR, and MarkWest shall not charge CITGO any costs or expenses in connection with such delivery, nor will MarkWest bear any connection costs or expenses related to the
connection of facilities for such deliveries. If CITGO exercises the Natural Gas Purchase Option, and CITGO so provides the natural gas required to supply the SMR at the Request Rate, then any gains
or losses on the resale of excess natural gas, or any imbalance penalties imposed on the natural gas supplies to CITGO, will be incurred by CITGO. CITGO shall invoice, and MarkWest shall pay, for the
natural gas sold to MarkWest pursuant to this Section in accordance with Article IX. All natural gas for which CITGO arranges the purchase under this Section 8.4, must be of
equivalent quality and pressure of the natural gas it is replacing and have no detrimental effect on the operations and efficiency of the SMR. Further, CITGO shall not take any actions that would
modify the transportation or other similar arrangements of MarkWest relating to deliveries of natural gas to the Plant and Facilities. 

        8.5   In
order to exercise its Natural Gas Purchase Option, CITGO must provide sufficient prior written notice to MarkWest of CITGO's election to exercise its Natural Gas
Purchase Option so that MarkWest has sufficient time to cancel or suspend its natural gas purchase contracts for any affected period without penalty. 

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        8.5.1
If MarkWest is unable to so cancel or suspend without cancellation or termination costs, MarkWest will provide a written response to CITGO stating when the affected contract will
be subject to suspension, cancellation or termination by MarkWest without penalty or payment. MarkWest shall provide to CITGO a list of the cancellation and/or termination costs for the natural gas
contract(s). If requested by CITGO, MarkWest shall cancel or terminate any such contracts in accordance with CITGO's instructions. MarkWest shall reasonably cooperate and assist CITGO in minimizing
any cancellation and/or termination costs relating to such contracts. CITGO shall reimburse MarkWest in accordance with Article IX for any actual, documented and necessary cancellation and/or
termination costs MarkWest incurs as a result of such cancellations or terminations, and MarkWest will provide CITGO support for such cancellation and/or termination costs after such costs have been
incurred. 

        8.5.2
If MarkWest is able to cancel or suspend, and CITGO has exercised its Natural Gas Purchase Option, CITGO shall coordinate with MarkWest regarding the availability of natural gas
deliveries at the various delivery points into the Facilities. CITGO's notice to exercise its Natural Gas Purchase Option shall provide the time period for the purchase commitment, the volume and the
purchase price of the natural gas to be delivered by CITGO to MarkWest. 

        8.6   If
CITGO exercises its Natural Gas Purchase Option, any failure of that supply that is not caused by MarkWest shall relieve MarkWest of any liability hereunder for
Unexcused Downtime Events, failure to meet On-Stream Percentage requirements, or other liability arising from or related in any manner to such Natural Gas Purchase Option supply failure. 

ARTICLE IX

BILLING AND PAYMENT  

        9.1   By
the tenth (10th) day of each Month, MarkWest shall render to CITGO an invoice including backup documentation supporting the calculation of price and
volume for the amount of Hydrogen purchased during the preceding Month and delivered in accordance with this Agreement. Payment therefore shall be made by (i) electronic funds transfer or
automated clearinghouse (preferably CTX or CCD+ with faxed information), or (ii) wire transfer. Such payment must be received on or before the 20th Day of the Month in which such
billing is rendered ("Due Date"). CITGO shall be responsible for and timely pay any and all taxes levied on the Hydrogen sold to CITGO hereunder, except for MarkWest's income, franchise and/or
property taxes and/or any new or additional taxes enacted in lieu of the aforementioned taxes. If CITGO, acting in good faith, disputes any invoiced amount, CITGO shall timely pay the undisputed
amount. If a Party discovers or is advised of any errors in any invoice, the Parties will promptly meet to review such errors in good faith and will take such prompt corrective actions as they may
agree to. Upon resolution of such dispute by the Parties, any previously unpaid and due amount will be promptly paid together with interest at the Default Rate, as defined below. Late payments shall
accrue interest at a rate equal to the "Prime Rate", as published, from time to time, by the Wall Street Journal, under "Money Rates", plus 2% ("Default
Rate"), from the due date until paid. In addition, should CITGO be more than thirty (30) Days late in making any payment of undisputed amounts, MarkWest shall have the right to cease deliveries
of Hydrogen hereunder with five (5) calendar Days prior notice. Such cessation of deliveries, however, shall not relieve CITGO from its obligations for payment of the Base Service Charge,
except as otherwise provided in this Agreement; provided, however, CITGO shall not be entitled to exercise any rights and remedies under Sections 7.7, 7.8 and 11.3 for such cessation. All
invoices under this Agreement shall be rendered to CITGO at the following address in accordance with Article XIV: 

CITGO Refining and Chemicals Company L.P.
  Attn: Accounts Payable

P. O. Box 9176

Corpus Christi, TX 78469 

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        9.2   By
the tenth (10th) day of each Month, CITGO shall render to MarkWest an invoice including backup documentation supporting the calculation of price and
volume for the amount of natural gas purchased during the preceding Month and delivered in accordance with this Agreement. Payment therefore shall be made by (i) electronic funds transfer or
automated clearinghouse (preferably CTX or CCD+ with faxed information), or (ii) wire transfer. Such payment must be received on or before the 20th Day of the Month in which such
billing is rendered ("Due Date"). If MarkWest, acting in good faith, disputes any invoiced amount, MarkWest shall timely pay the undisputed amount. If a Party discovers or is advised of any errors in
any invoice, the Parties will promptly meet to review such errors in good faith and will take such prompt corrective actions as they may agree to. Upon resolution of such dispute by the Parties, any
previously unpaid and due amount will be promptly paid together with interest at the Default Rate, as defined below. Late payments shall accrue interest at a rate equal to the "Prime Rate", as
published, from time to time, by the Wall Street Journal, under "Money Rates", plus 2% ("Default Rate"), from the due date until paid. All invoices
under this Agreement shall be rendered to MarkWest at the following address in accordance with Article XIV: 

MarkWest
  Attn: Accounts Payable

5438 Union Street

Corpus Christi, TX 78407 

        9.3   Each
Party shall have the right, upon prior written request, at its own expense and during normal business hours, to audit or have audited by third parties the
books, records, charts and other pertinent documents and data (collectively the "Records") of the other Party relating to this Agreement in order to verify that the other Party is complying with its
obligations under this Agreement and to verify the accuracy of any statement, charge, computation or demand made under or pursuant to any of the provisions hereof. However, any access to records for
the Plant shall only be made available to an independent auditor of CITGO with the understanding that such independent auditor may not disclose the contents of those records to CITGO but may only
disclose to CITGO whether or not the audit confirms the statements and charges of MarkWest If any such examination shall reveal, or if either Party shall otherwise discover, any error in its own or
the other Party's statements, payments, calculations or determinations, then proper adjustment thereof shall be made as promptly as practical thereafter. It is understood, however, that no adjustment
of any statement or payment shall be made after the lapse of two (2) years from the end of the calendar year to which such statement or payment pertains. Each Party shall retain all Records for
two (2) years from the end of the calendar year in which they are compiled, unless the statement or payment is subject to dispute, in which case the pertinent Records shall be retained until
the dispute is resolved. 

ARTICLE X

REPRESENTATIONS AND WARRANTIES OF THE PARTIES  

        10.1 MarkWest
represents to CITGO as follows: 

        (a)   MarkWest
is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization and each state in which it does business or
owns property. MarkWest has full power and authority to own its properties, to carry on its business as now conducted, and to perform its obligations hereunder. 

        (b)   MarkWest
has full corporate power and authority to execute and deliver the Agreement and to carry out its obligations hereunder. The execution, delivery and performance
of this Agreement, and the consummation of the transactions contemplated thereby have been duly authorized by all requisite corporate action on the part of MarkWest. This Agreement constitutes the
valid and legally binding obligation of MarkWest, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization 

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and
other similar laws now or hereafter in effect relating to creditors' rights generally or by general principles of equity (whether enforced at law or in equity). 

        (c)   The
execution, delivery and performance by MarkWest of this Agreement and the transactions contemplated hereby will not constitute a breach of any term or provision of,
or a default under (i) any outstanding indenture, mortgage, loan agreement or other contract or agreement to which MarkWest is a party or its property is bound, (ii) its organizational
documents, (iii) any law, rule or regulation, or (iv) any order, writ, judgment or decree having applicability to it. 

        (d)   MarkWest
expressly agrees to comply with and abide by all applicable laws and regulations in connection with the ownership, construction and operation of the Facilities
and in connection with the delivery of Hydrogen hereunder. 

        (e)   As
of the Effective Date, there is no proceeding pending, or to the best of MarkWest's knowledge, threatened against it which seeks, or may be reasonably expected to
rescind, terminate, modify or suspend any government approval required in order for MarkWest to perform its obligations under this Agreement. 

        (f)    As
of the Effective Date, there are not pending or, to the best of MarkWest's knowledge, threatened legal actions, suits or arbitration or other proceedings before any
governmental authority against or affecting MarkWest or any of its Affiliates with respect to the subject matter of this Agreement or its ability to perform any of its obligations hereunder. 

        (g)   MARKWEST
WARRANTS THAT THE HYDROGEN SHALL BE DELIVERED WITH GOOD TITLE TO CITGO, FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES AND
WILL MEET THE SPECIFICATIONS SET FORTH IN ARTICLE IV. OTHERWISE, MARKWEST HEREBY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE FACILITIES OR THE HYDROGEN TO BE
DELIVERED, INCLUDING ANY WARRANTIES AS TO THE QUALITY AND QUANTITY OF HYDROGEN SOLD AND DELIVERED TO CITGO HEREUNDER INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY,
SUITABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE OR CONFORMANCE TO SAMPLES. 

        10.2 CITGO
represents to MarkWest as follows: 

        (a)   CITGO
is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization and each state in which it does business or owns
property. CITGO has full power and authority to carry on its business as now conducted and to perform its obligations hereunder. 

        (b)   CITGO
has full corporate power and authority to execute and deliver the Agreement and to carry out its obligations hereunder. The execution, delivery and performance of
this Agreement, and the consummation of the transactions contemplated thereby have been duly authorized by all requisite corporate action on the part of CITGO. This Agreement constitutes the valid and
legally binding obligation of CITGO, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization and other similar
laws now or hereafter in effect relating to creditors' rights generally or by general principles of equity (whether enforced at law or in equity). 

        (c)   The
execution, delivery and performance by CITGO of this Agreement and the transactions contemplated hereby will not constitute a breach of any term or provision of, or
a default under (i) any outstanding indenture, mortgage, loan agreement or other contract or agreement to which CITGO is a party or its property is bound, (ii) its organizational
documents, 

A-15

 

(iii) any
law, rule or regulation, or (iv) any order, writ, judgment or decree having applicability to it. 

        (d)   CITGO
expressly agrees to comply with and abide by all applicable laws and regulations. 

        (e)   As
of the Effective Date, there is no proceeding pending, or to the best of CITGO's knowledge, threatened against it which seeks, or may be reasonably expected to
rescind, terminate, modify or suspend any government approval required in order for CITGO to perform its obligations under this Agreement. 

        (f)    As
of the Effective Date, there are not pending or, to the best of CITGO's knowledge, threatened legal actions, suits or arbitration or other proceedings before any
governmental authority against or affecting CITGO or any of its Affiliates with respect to the subject matter of this Agreement or its ability to perform any of its obligations hereunder. 

ARTICLE XI

TERM AND TERMINATION  

        11.1 Term. Unless earlier terminated in accordance with the Sections below, this Agreement
shall commence on the Effective Date and shall continue in full force and effect for twenty (20) Contract Years commencing on the Supply Commencement Date ("Primary Term"), and as further
described below, and shall continue automatically thereafter Contract Year to Contract Year until terminated upon at least three (3) years prior written notice to the other Party before the end
of the Primary Term or any subsequent annual extension thereof. The first Contract Year shall commence on the Supply Commencement Date and extend to the first day of the Month in the next calendar
year after the Month in which the Supply Commencement Date occurred **, it being understood that the initial Contract Year may exceed 12 calendar
Months). Succeeding Contract Years shall commence from the first day of the second Contract Year, and continue for the full twelve (12) Month period thereafter  **. 

        11.2 Termination in Event of CITGO Board Rejection of the Hydrotreater Project. In addition to any other termination rights
set forth in this Agreement, CITGO shall have the right to terminate this Agreement if the Board of Directors ("Board") of CITGO's general partner, CITGO Petroleum Corporation does not approve CITGO's
Hydrotreater Project. CITGO shall provide written notice to MarkWest within five (5) Business Days following any Board action in which the Hydrotreater Project is either approved or
disapproved. Following any disapproval by the Board, CITGO may terminate this Agreement. Upon such termination pursuant to this Section 11.2, CITGO will pay MarkWest, as termination fees,  **.
MarkWest shall exercise commercially reasonable efforts to mitigate such costs. 

        Notwithstanding
anything to the contrary above, prior to the NTP, there shall be no termination fee owed to MarkWest. 

        For
project cancellation notification received by MarkWest between the following times following the Notice to Proceed: 

        **  

        If CITGO's Board approval is not received within three hundred thirty (330) calendar days following the NTP, then either MarkWest or CITGO shall have the
right to terminate this Agreement. In such event, CITGO shall pay a termination fee to MarkWest in the amount of **. MarkWest shall exercise
commercially reasonable efforts to mitigate such costs. Upon MarkWest's receipt of notice that the Board has approved CITGO's Hydrotreater Project, neither Party has the right to terminate this
Agreement pursuant to this Section 11.2. 

        Any
such payments required by this Section 11.2 shall be due within thirty (30) Days following CITGO's receipt of each invoice from MarkWest specifying such costs along
with supporting documentation. 

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        11.3 Remedies in the Event of Breach of a Material Obligation. Each Party shall have the right to terminate this Agreement
upon written notice to the other Party if the other Party breaches any of its material obligations under this Agreement. In order to terminate for any such breach, the Party claiming breach must
provide written notice to the other Party, specifying in detail, the specific provisions of this Agreement that are claimed to be breached and the specific measures that the Party alleged to be in
breach must take to remedy the breach ("Default Notice"). The Party receiving the Default Notice shall have a period of sixty (60) Days following receipt of the Default Notice in which to cure
the breach, or, if the breach is of a nature that cannot reasonably be cured in sixty (60) Days, then the Party in receipt of the Default Notice shall commence to cure the breach within such
(60) Day period and thereafter diligently pursue the completion of such remedy. The Party receiving the Default Notice shall prepare a detailed, written corrective action plan (the "Plan")
within thirty (30) Days of receipt of the Default Notice, and such Plan shall be subject to the mutual agreement of the Parties. Neither Party shall unreasonably withhold its consent to any
such Plan. However, if the Parties cannot agree upon the Plan, then either Party may submit the determination of the Plan to the dispute resolution procedures set forth in Section 16.4 below
within ten (10) business Days following submission of the Plan by the Party in receipt of the Default Notice. The Parties agree that neither Party may claim termination of this Agreement during
the period in which the Parties are attempting to agree on the Plan. 

        11.4 Termination in the Event of Bankruptcy. Either Party may terminate this Agreement by providing written notice to the
other Party upon the occurrence of any of the following events: 

        (a)   Involuntary Bankruptcy Proceedings. (i) A receiver, custodian, liquidator, or trustee of either Party, or of the
property of either Party, is appointed by court order and such order is consented to by such Party or remains in effect for more than sixty (60) days after the commencement of such action;
(ii) an order for relief under any bankruptcy law is entered with respect to such Party or such Party is adjudicated to be bankrupt or insolvent; or (iii) a petition is filed against
such Party under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution, or liquidation law of any jurisdiction; whether now or hereafter in effect, and is not
dismissed within sixty (60) days after such filing; 

        (b)   Voluntary Petitions. Either Party files a petition in voluntary bankruptcy or seeking relief under any provision of any
bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution, or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of or any
order for relief under any petition against it under any such law; and/or 

        (c)   Insolvency. Either Party becomes insolvent. 

        11.5 Remedies. In addition to any other rights and remedies set forth in this Agreement, upon the
occurrence of any breach of a material obligation by a Party, the other Party shall have all rights and remedies available to it at law and in equity, subject to the provisions of this Agreement;
provided, as to any breaches for which express remedies are provided in this Agreement, such remedies shall be the sole and exclusive remedies. 

ARTICLE XII

FORCE MAJEURE  

        12.1 The
term "Force Majeure Event" as employed herein, shall include, without limitation, the following, provided that any such event is not reasonably foreseeable and is
not within the commercially reasonable control of, and not due to the fault or negligence of the Party claiming suspension: acts of God and the public enemy, wars, blockades, civil unrest, rebellion,
insurrections, riots, lockouts, strikes, interruption of civil or public service, nuclear emergency, storms, hurricanes, freezing of lines of pipe, the failure, breakage or interruption of equipment
or the Facilities, unless any such failure, breakage or 

A-17

 

interruption
could have been prevented through standard industrial maintenance and repair practices, the inability to obtain any necessary materials, supplies or permits, the inability to obtain
sufficient feedstocks for the SMR or the Plant, the necessity for maintenance or repair, any laws, orders, rules, regulations, acts or restraints of any governmental authority, whether or not lawfully
made, and any other causes or conditions, whether or not of the kind herein enumerated. 

        12.2 If
either Party is rendered unable, wholly or in part, by a Force Majeure Event to perform or comply with any obligations or conditions of this Agreement, upon giving
notice in writing and providing reasonably full particulars, including the estimated duration of the Force Majeure Event, to the other Party, such obligations or conditions, so far as they are
affected by such Force Majeure Event, shall be suspended from the occurrence and during the continuance of any inability so caused but for no longer period; provided however, that CITGO's obligation
to make payments for Hydrogen received shall not be suspended, except as otherwise provided in Article VII. The Party claiming the Force Majeure Event shall use its commercially reasonable
efforts to mitigate the effects of the Force Majeure Event on the other Party, and the Force Majeure Event and its impacts shall be remedied so far as reasonably practicable with reasonable dispatch,
except that settlement of strikes and lockouts shall be wholly within the discretion of the Party claiming the Force Majeure Event. 

        12.3 If
a Force Majeure Event occurs and the Party claiming the Force Majeure Event estimates the duration of such Force Majeure Event to exceed thirty (30) Days, the
Parties shall mutually agree upon a written corrective action plan within thirty (30) Days of the Force Majeure Event, to be prepared by the Party claiming the Force Majeure Event as soon as
practical after the occurrence of such Force Majeure Event, to be mutually agreed upon by the Parties, and setting forth a commercially reasonable plan and schedule to resume performance of each
Party's obligations under this Agreement. Neither Party shall unreasonably withhold its consent to any such plan. However, if the Parties cannot agree upon the written corrective action plan within
thirty (30) Days following submission of the plan by the Party claiming the Force Majeure Event, then either Party may submit the determination of the plan to the dispute resolution procedures
set out in Section 16.4 below. 

ARTICLE XIII

RIGHT OF FIRST REFUSAL  

        13.1 Prior
to MarkWest selling a controlling interest in the Facilities, excluding the Plant, to any third party, other than to an Affiliate that is capable of performing
this Agreement and is reasonably acceptable to CITGO, CITGO shall have a first right of refusal to purchase the Facilities, excluding the Plant (the "Asset") in accordance with the following
provisions: 

        (a)   If
MarkWest receives a bona fide written offer from any third party that is not an Affiliate of MarkWest to purchase the Asset, then, prior to any sale to that party,
MarkWest shall give CITGO written notice stating the proposed transferee, the consideration to be paid and other relevant terms and conditions of the offer (the "Offer Notice"). 

        (b)   CITGO
shall have until 4:59 P.M. local time at MarkWest's principal office, on the thirtieth (30th) Day following the date of the Offer Notice in which to elect
to purchase the Asset at the same price and on the same terms and conditions as set forth in the Offer Notice. 

        (c)   If
CITGO elects to purchase the Asset, then the Parties shall fix a closing date (the "Closing Date") for the purchase, which shall not be more than sixty
(60) Days following the date of the Offer Notice. 

        (d)   If
CITGO elects not to purchase the Asset on those terms and conditions or if CITGO fails to respond within thirty (30) Days following the date of the Offer
Notice, then MarkWest shall be free to sell the Asset on terms and conditions no less favorable to MarkWest than those contained in the Offer Notice. 

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(a) ARTICLE XIV

NOTICES  

        NOTICE:    Unless otherwise provided herein, any notice, request or demand which either Party desires to serve upon the other
regarding this Contract shall be in writing and shall be considered as delivered when hand delivered or, if mailed by United States certified mail, postage prepaid, three (3) Days after mailing
or, if sent by facsimile or e-mail transmission, when receipt is confirmed by the equipment of the transmitting Party; provided, if receipt of a facsimile or e-mail
transmission is confirmed after normal business hours, receipt shall be deemed to be the next Business Day. Such notice shall be given to the other Party at the following address, or to such
other address as either Party shall designate by like written notice to the other Party: 

	CITGO:	 	CITGO Corpus Christi Refinery

P.O. Box 9176

Corpus Christi, TX 78407

1802 Nueces Boulevard

Corpus Christi, TX 78469

Attn: Plant Manager

Fax: 1-361-844-4853

        Notices
to Refinery Personnel shall be made by telephone to the Refinery Shift Superintendent at 361-844-4332 and subsequently by facsimile at
361-844-4246. 

        Copies
of all notices, other than routine communications shall be sent to: 

	 	 	CITGO Petroleum Corporation

1293 Eldridge Parkway

Houston, TX 77077

Attn: Product Manager, Petrochemicals

Fax: (832) 486-4852
	

MarkWest:	
 	

MarkWest Javelina Company

5438 Union Street

Corpus Christi, Texas 78407

Attn: Plant Manager

Fax: 1-361-289-4977

        Notices
to MarkWest Facilities shall be made by telephone to the Shift Supervisor at 361-289-4760 and subsequently by facsimile at
361-289-4767. 

        Copies
of all notices, other than routine communications shall be sent to: 

	 	 	MarkWest Energy Partners, L.P.

1515 Arapahoe Street

Tower 2, Suite 700

Denver, CO 80202

Attn: Contract Administration

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        NO LEGAL NOTICE REQUIRED OR PERMITTED HEREUNDER CONCERNING A CLAIM OR BREACH ARISING HEREUNDER OR NOTICE OF TERMINATION SHALL BE VALID UNLESS PROVIDED IN THE
MANNER DESCRIBED ABOVE TO: 

	 	 	MarkWest Energy Partners, L.P.

1515 Arapahoe Street

Tower 2, Suite 700

Denver, CO 80202

Attention: General Counsel

Fax: (303) 925-9308
	

 	
 	

CITGO Petroleum Corporation

1293 Eldridge Parkway

Houston, TX 77077

Attn: General Counsel

Fax: (832) 486-1817

ARTICLE XV

INDEMNITIES AND LIMITATION OF LIABILITY  

        15.1 (a) Subject
to Section 15.1(b) below, each Party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other Party and its
Affiliates and their respective directors, officers, employees, agents, successors and assigns (collectively, the "Indemnified Party") from and against any obligations, liabilities, damages, losses,
actions, lawsuits, claims, demands, settlements, judgments, costs and expenses ("Claims") including, without limitation, reasonable attorney fees, relating to personal and bodily injuries or death of
any third parties and/or damages to or losses of any real or personal property of the Indemnified Parties and/or any third parties, arising out of or in any way connected to the performance or
non-performance of this Agreement and to the extent caused by the actual or alleged negligence, common law, strict liability, statutory liability, absolute liability, vicarious liability,
products liability, gross negligence or willful actions, or otherwise wrongful acts or omissions of the Indemnifying Party and/or its Affiliates and/or their respective directors, officers, employees,
contractors or agents. 

        (b)   The
Indemnifying Party shall indemnify, defend and hold harmless the Indemnified Parties from and against any Claims relating to any bodily injuries to, or deaths of,
any employees, contractors and/or agents of the Indemnifying Party arising out of or in any way connected to the performance or non-performance of this Agreement, without regard to the
cause or causes thereof, including, without limitation, those caused by the actual or alleged negligence, common law, strict liability, statutory liability, absolute liability, vicarious liability,
products liability, gross negligence or willful actions, or otherwise wrongful acts or omissions of the Indemnifying Party, the Indemnified Parties, or any third parties, except that the foregoing
indemnity shall not apply to any such Claims caused by The Indemnified Parties' sole negligence. IT IS THE EXPRESSED INTENT OF THE PARTIES THAT THE INDEMNIFYING PARTY INDEMNIFY
THE INDEMNIFIED PARTIES FOR THOSE CLAIMS SPECIFIED IN THIS SECTION 15.1(b) CAUSED BY THE INDEMNIFIED PARTIES' OWN ACTUAL OR ALLEGED JOINT OR CONCURRENT NEGLIGENCE, EXCLUDING CLAIMS CAUSED BY THE
INDEMNIFIED PARTIES' SOLE NEGLIGENCE.

        15.2 IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR LOSS OF INCOME, REVENUE, OR PROFITS, OR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL
OR PUNITIVE DAMAGES, NO MATTER HOW ARISING, WHETHER IN CONTRACT, TORT OR OTHERWISE EVEN IF INFORMED OF THE POSSIBILITY OF ANY SUCH LOSSES OR DAMAGES IN ADVANCE.

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ARTICLE XVI

MISCELLANEOUS PROVISIONS  

        16.1 Relationship of the Parties. Each Party's performance under this Agreement shall be independent, with the authority and
right to direct and control all of the details of a Party's obligations hereunder resting entirely with the respective Party so performing. Nothing contained in this Agreement shall be deemed or
construed as creating a relationship of partnership, association, principal and agent or joint venture by or between the Parties. Neither Party shall have the right or authority to assume or create
any obligation or responsibility on behalf of the other Party or to bind the other Party in any manner whatsoever. 

        16.2 Successors and Assigns. (a) MarkWest shall not assign this Agreement in whole or in part, without
(i) obtaining the express ratification and adoption of this Agreement by the transferee(s), and (ii) obtaining the express written consent of CITGO, which consent will not be
unreasonably withheld or delayed. It is expressly provided that CITGO may reasonably withhold such consent if the proposed transferee is less creditworthy than MarkWest at the time, or is otherwise
less capable of performing the obligations of MarkWest hereunder, all as determined by CITGO in its reasonable discretion. Notwithstanding the foregoing, MarkWest may assign or transfer this
Agreement, in whole or in part, to an Affiliate of MarkWest without CITGO's consent; provided, however, that MarkWest provides evidence to CITGO that such Affiliate is creditworthy and capable of
performing the obligations of MarkWest hereunder, all as determined by CITGO in a commercially reasonable manner within fourteen (14) Days of the date MarkWest provides such evidence of
creditworthiness and capability of performance to CITGO. 

        (b)   CITGO
shall not assign this Agreement, in whole or in part, without (i) obtaining the express ratification and adoption of this Agreement by the transferee(s),
and (ii) obtaining the express written consent of MarkWest, which consent will not be unreasonably withheld or delayed. It is expressly provided that MarkWest may reasonably withhold such
consent if the proposed transferee is less credit worthy than CITGO at the time, or is otherwise less capable of performing the obligations of CITGO hereunder, all as determined by MarkWest in its
reasonable discretion. Notwithstanding the foregoing, CITGO may assign or transfer this Agreement, in whole or in part, to an Affiliate of CITGO without MarkWest's consent; provided, however, that
CITGO provides evidence to MarkWest that such Affiliate is creditworthy and capable of performing the obligations of CITGO hereunder, all as determined by MarkWest in a commercially reasonable manner
within fourteen (14) Days of the date CITGO provides such evidence of creditworthiness and capability of performance to MarkWest. 

        (c)   In
the event either Party breaches this Section 16.2, the other Party shall have the right to terminate this Agreement upon written notice to the other Party. 

        16.3 Choice of Law. This Contract shall be deemed to be a contract made under the laws of the State of Texas without regard
to choice of law rules or principles therein that might otherwise apply the law of another jurisdiction. 

        16.4 Dispute Resolution.

        16.4.1
When a dispute between the Parties relating to, arising out of or pertaining to this Agreement has arisen ("Dispute"), either Party may give the other Party written notice of the
Dispute. In the event such notice is given, the Parties shall attempt to resolve the Dispute promptly by negotiation between executives who have authority to settle the controversy and who are at a
higher level of management than the persons with direct responsibility for the matter. Within ten [10] business Days after delivery of the notice, the receiving Party shall
submit to the other a written response. Thereafter, the executives shall confer in person or by telephone promptly to attempt to resolve the dispute. All reasonable requests for information made by
one Party to the other will be honored. 

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        16.4.2
If the Parties' senior management meetings fail to resolve the dispute, either Party may request in writing to the other Party that the Dispute be submitted to
non-binding mediation by a mediator to be mutually agreed to by the Parties. Unless otherwise agreed by the Parties, the mediation shall take place in Houston, Texas, and the costs for the
mediation shall be shared equally by the Parties. 

        16.4.3
The mediator shall be an individual who is not and never has been an officer, director, consultant, or employee of either Party, and who is qualified by education, knowledge,
training, and experience to decide upon the particular question in dispute. Consultants, contractors and expert witnesses previously used by either Party shall not be used as a mediator without the
consent of both Parties. 

        16.4.4
The statute of limitations of the State of Texas applicable to the commencement of a lawsuit shall apply to the commencement of mediation hereunder, except that no defenses shall
be available based upon the passage of time during any negotiations called for by Section 16.4.1 of this Agreement. 

        16.4.5
Each Party may submit evidentiary documents to the mediator in support of its position. The mediator may request, but neither Party shall be compelled to provide, any further
evidentiary documents or information from the Parties. However, the mediator may ask questions of the Party submitting documents as they relate to the matter in dispute. 

        16.4.6
If any Dispute is not otherwise resolved to the mutual satisfaction of both Parties in accordance with the foregoing procedures within ninety (90) days after written notice
of the Dispute, then either Party may initiate an action in the appropriate state or federal courts in Texas for the resolution of such Dispute. 

        16.5 Publicity. Neither Party shall issue a press release regarding this Agreement or use the other Party's or its partners'
or affiliates' names in any advertising or publicity without the other Party's prior written consent. 

        16.6 Severability. All provisions of this Agreement are severable, and the unenforceability or invalidity of any of them
shall not affect the enforceability or validity of the remaining provisions of this Agreement. 

        16.7 Survival. Any provisions of this Agreement which by the nature of their terms would survive any termination of this
Agreement, including, but not limited to, Articles X, XI and XV, shall survive and continue to apply to the Parties and remain in full force and effect. 

        16.8 Non-Waiver. No waiver of any provision of this Agreement, or a default or breach hereof, shall be effective
unless it is in writing and signed by both Parties. No waiver by either Party of any one or more defaults or breaches by the other Party in the performance of any provisions of this Agreement (whether
express or implied) shall operate or be construed as a waiver of any other default or breach or defaults or breaches, whether of a like or of a different character. 

        16.9 Rule of Construction. The Parties agree that the rule of construction that a contract be construed against the
drafter, if any, shall not be applied in the interpretation and construction of this Agreement. The titles and section headings contained in this Agreement are for reference purposes only and
shall not affect the interpretation of the Agreement. 

        16.10   Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument. 

        16.11   Confidentiality. During the term of this Agreement, MarkWest and CITGO shall maintain the confidentiality
of this Agreement and any information marked "Confidential" provided by each Party to the other Party relating to this Agreement. Said confidential information includes any 

A-22

 

information
relating to CITGO's requirements for the Hydrogen and CITGO's Scheduled Downtimes schedules, except for such information as CITGO has made public, and shall not disclose same to any third
party except independent auditors and financial institutions who are under written obligations of confidentiality with respect to this Agreement, and as may be required in the opinion of such Parties'
counsel to comply with orders of any court or governmental agency, or comply with any laws, rules and regulations of applicable governmental agencies, including but not limited to, federal, state and
local agencies. 

        16.12   Changes in Laws. In the event any governmental laws or regulations applicable to the Parties change or
are promulgated that materially affect either Party's obligations hereunder, the Parties shall reasonably cooperate and work together in good faith to address any issues so that the intent of this
Agreement is maintained. 

        16.13   Complete and Integrated Agreement. This Agreement, including the Exhibits attached hereto, contains the
complete, final and exclusive agreement of the Parties with respect to the matters set forth herein and supersede all prior understandings, negotiations, representations, discussions, statements,
inducements and agreements, written or oral, pertaining thereto. 

        16.14   Amendment. This Agreement may not be amended, modified or rescinded in any way except by written
instrument duly executed by both Parties. 

        IN
WITNESS WHEREOF, the Parties execute this Agreement on the date first above written. 

	

"CITGO"	
 	

"MarkWest"
	

CITGO REFINING AND CHEMICALS COMPANY L.P.	
 	

MARKWEST BLACKHAWK, L.P.
	

By:	
 	

/s/  WILLIAM H. HATCH      
	
 	

By:	
 	

/s/  FRANK M. SEMPLE      

	Name:	 	William H. Hatch	 	Name:	 	Frank M. Semple
	Title:	 	VP, Supply & Marketing	 	Title:	 	President & CEO

A-23

 
EXHIBIT A

TO HYDROGEN SUPPLY AGREEMENT

BY AND BETWEEN

MARKWEST AND CITGO  

MILESTONE SCHEDULE  

        **  

A-24

QuickLinks

HYDROGEN SUPPLY AGREEMENT BY AND BETWEEN MARKWEST BLACKHAWK, L.P. AND CITGO REFINING AND CHEMICALS COMPANY L.P.EXHIBIT 10.7

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

SUPPLY
AGREEMENT

 

THIS MASTER SUPPLY AGREEMENT is made effective as of December 31, 2003 (“Effective Date”) between IPG Photonics Corporation, a
Delaware corporation having offices at 50 Old Webster Road, Oxford,
Massachusetts, 01540 USA (“Supplier”) and
Reliant Technologies, Inc., a Delaware corporation having offices at 260
Sheridan Avenue, 3rd Floor, Palo Alto, California 94306 USA (“Customer”).

 

WHEREAS Supplier is a manufacturer and supplier of fiber lasers and Customer is
a developer and manufacturer of medical laser systems; and

 

WHEREAS Customer desires to order, purchase and take delivery of fiber lasers
from Supplier and Supplier desires to sell and deliver to Customer pulsed fiber
lasers.

 

ACCORDINGLY, Supplier and Customer agree as follows:

 

1.0          INTERPRETATION

 

1.1          Definitions.
In this Agreement, the below terms shall have
the following respective meanings:

 

(a)           “Delivery Date” means the delivery date, as
determined in accordance with this Agreement, for the Product to arrive at
Customer’s delivery location set forth the applicable Purchase Order (as later
defined).

 

(b)           “Dermatological Procedures” means
dermatological procedures requiring the photocoagulation or phototreatment of
soft tissue, [ * ].

 

(c)           “Effective Date” shall have the meaning set
forth in Exhibit A.

 

(d)           “Initial Term” shall have the meaning set
forth in Section 2.0.

 

(e)           “Products” shall mean any fiber lasers and
related accessories and optional equipment as set forth and described in
Exhibit A, as may be amended from time to time by the agreement of Supplier and
Customer, in writing.

 

(f)            “Purchase Order” means a purchase order
issued to Supplier by Customer, in written or electronic form, for the purchase
of Products pursuant to this Agreement, which states among other things the Product,
agreed upon unit price, unit quantities per Product, extended warranty,
requested delivery dates and Customer delivery location.

 

(g)           “Rolling Forecast” means a [ * ] written forecast of Customer’s anticipated
requirements for each Product.

 

(h)           “Specifications” means the specifications
for the Products described in Exhibit A, as may be amended from time to time [ * ].

 

 

(i)            “Taxes” means any and all taxes and other
charges (exclusive of taxes on the net income of Supplier), howsoever
designated, levied or based on this Agreement or the Products delivered
hereunder, including without limitation all federal (Canadian or U.S.),
provincial, state and local sales, use and excise taxes, customs and duties,
licenses, fees, tariffs and other similar expenses, whether now or subsequently
in effect.

 

(j)            “Term” means the Initial Term.

 

1.2          Headings.
The division a this Agreement into Sections,
Subsections and Exhibits and the insertion of headings are for ease of
reference only and shall not affect its construction or interpretation.

 

2.0          TERM

 

This
Agreement shall commence as of the Effective Date and shall, unless otherwise
terminated in accordance with the terms and conditions of this Agreement,
remain in full force and effect for a period ending on December 31, 2004 (the “Initial Term”).

 

3.0          PURCHASES

 

3.1          Firm Order. During the Term, the Supplier shall sell and the Customer shall
purchase quantities of the Products that the Customer orders from time to time
under Section 4.0 hereof. Supplier grants the right to Customer to incorporate
the Products into Customer’s systems and to market, distribute, sell and lease
(directly or through Customer’s agents and distributors) such Customer systems
to its direct and indirect customers. This Agreement constitutes [ * ] purchase obligation of Customer for the Products in
the amounts and at the delivery times as set forth on Exhibit B attached hereto
[ * ] (the “Firm Order Amount”).

 

3.2          Forecasts.
During the [ * ]
during the Term, Customer shall provide Supplier a Rolling Forecast. A Rolling
Forecast is an estimate of projected Product requirements based on the
information then available to Customer. The Rolling Forecast shall not affect
Customer’s obligation to purchase the Firm Order Amount at the delivery dates
as set forth on Exhibit B.

 

4.0          PRODUCTS AND PURCHASE ORDERS

 

4.1          Products.
The parties shall seek to complete and
update, in writing, Exhibit A from time to time in respect of each Product,
for, without limitation, changes in the products, specifications, lead-time and
pricing. All modifications of Exhibit A (including the addition of new product)
shall be signed and dated by both parties and shall expressly refer to this
Section 4.1.

 

4.2          Issuance. Customer shall from time to time issue
Purchase Orders to Supplier in accordance with this Agreement. The Purchase
Order for the Firm Order Amount is set forth on Exhibit B.

 

4.3          Acceptance
Date.

 

4.3.1        Supplier
hereby accepts the Purchase Order for the Firm Order Amount set forth on
Exhibit B.

 

4.3.2        For
orders other than the Firm Order Amount, as soon as reasonably possible (and in
no event later than [ * ])
immediately following the receipt of each Purchase Order, Supplier shall accept
any Purchase Order having delivery dates consistent with the applicable
lead-time for such Product as set forth in Exhibit A or, in the case of Exhibit
A not being complete, as from time to 

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

time provided by Supplier to Customer (collectively,
“Lead-Time”) and the delivery
dates set forth in such Purchase Order acceptance shall be deemed the Delivery
Dates for such Products.

 

4.4          Delivery
Date.

 

4.4.1        The
Delivery Dates for the Firm Order Amount are set forth on Exhibit B.

 

4.4.2        For
orders other than the Firm Order Amount, [ * ] but
subject to Sections 4.4.2.1 and 4.4.2.2 below, Supplier shall accept such Purchase
Order and use commercially reasonable efforts to provide delivery dates for
Products ordered thereunder:

 

4.4.2.1     Supplier
shall be required to supply the quantity specified in a Purchase Order if the
quantity shall be not greater than the Upside Maximum set forth on Exhibit A [ * ].

 

4.4.2.2     For
all orders in excess of the Upside Maximum set forth on Exhibit A, Supplier
shall not be required to supply a quantity specified in a Purchase Order if
such Purchase Order requests a delivery of a quantity [ * ]
of the amounts for Products in the most recent Rolling Forecast delivered in
the prior month. To the extent that Supplier does not provide delivery dates
for orders [ * ], Supplier shall use
commercially reasonable efforts to provide Customer with delivery dates for
such excess Product as soon thereafter as reasonably possible. In each case,
the delivery dates provided by Supplier shall be deemed the Delivery Dates for
such Products, unless Customer rejects same by written notice thereof on or
before [ * ] following Supplier’s provision of
such Delivery Dates, in which case the parties shall acting reasonably and in
good faith promptly negotiate mutually acceptable Delivery Dates. Thereafter,
and to the extent that Supplier and Customer do not agree upon mutually
acceptable Delivery Dates, either party may, by providing written notice to the
other party, forthwith terminate the applicable Purchase Order with respect to
Product for which there is no Delivery Date.

 

4.5          Changes. Except as otherwise provided for in this
Agreement, Customer shall not cancel or terminate [ * ]
a Purchase Order, or applicable Delivery Dates thereunder, in whole or in part,
without the prior written consent of Supplier.

 

4.6          Cancellation
and Cancellation Costs.

 

4.6.1        Customer
may not cancel any one or more Purchase Orders until [ * ].

 

4.6.2        Except
as otherwise provided in Section 4.6.1 above:

 

4.6.2.1     Customer
may cancel a Purchase Order, in whole or part and without cost or penalty, by
providing notice to Supplier prior to the applicable Delivery Date. [ * ].

 

4.6.2.2     In
the event that Customer provides Supplier with a notice of cancellation more
than [ * ] prior to the applicable Delivery
Date, Customer shall pay or reimburse Supplier for the reasonable costs
incurred by Supplier relating to such canceled Product at the time of
cancellation, including without limitation with respect to work in process and
raw materials, to the extent that Supplier cannot (using reasonable efforts)
mitigate such costs within [ * ] of such
cancellation.

 

4.6.2.3     This
shall be Supplier’s sole and exclusive remedy and Customer’s sole and exclusive
liability/obligation to Supplier for any cancellation under this Section 4.6.2 by

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

Customer.

 

4.7          Rescheduling.

 

4.7.1        [ * ]

 

4.7.2        Except
as otherwise provided in Section 4.7,1 above, Customer may reschedule the
Delivery Dates, at no cost or penalty [ * ], up to a
maximum of [ * ], provided that Customer
provides Supplier with at [ * ] notice in
advance of a Delivery Date for a Product.

 

5.0          PRICES
FOR PRODUCTS

 

5.1          Prices for Products. Customer shall pay the applicable price for
each Product as set forth in U.S. dollars in Exhibit A (or if not set forth in
Exhibit A, as otherwise agreed in writing by the parties) and as may be amended
from time to time by Supplier and Customer in accordance with this Agreement.
All prices are [ * ], exclusive of Taxes,
transportation, insurance and brokerage fees.

 

5.2          Taxes. Customer shall pay all Taxes and shall
promptly reimburse Supplier for any Taxes that Supplier pays directly to any
taxing authority. Supplier’s invoices to Customer are payable in full without
deduction for any Taxes, including without limitation withholding taxes.

 

5.3          Invoicing And Payment. Supplier may issue an invoice as soon as
the time of Product shipment from Supplier’s relevant facility, and Customer
shall pay such invoice within thirty (30) calendar days thereof. If at any time
Customer is delinquent in the payment of any invoice or is otherwise in breach
of this Agreement, Supplier may[ * ]. All payments
not received when due shall be subject to an additional interest charge of [ * ], or such lower interest rate as may be otherwise
permitted at law, of the unpaid amount until the date of payment, without
prejudice to any other rights, remedies or recourses which Supplier may have
under this Agreement, at law or in equity. The right of Supplier to any payment
provided for under this Agreement shall not be subject to any abatement,
reduction, set off, defense, counterclaim or recoupment of any amount due or
alleged to be due by reason of any past, present or future claims of Customer.

 

6.0          QUALITY,
INSPECTION AND WARRANTY 

 

Supplier shall maintain an
objective quality program for all Products supplied pursuant to this Agreement.
Customer shall have the right to inspect, at a mutually agreed time, at
Supplier’s plant and nonproprietary testing areas for the Products during the
Term, provided that such inspection is reasonable and directly relevant to this
Agreement, including without limitation to ensure Supplier’s compliance with
the specified and applicable quality requirements. Supplier shall provide
access for Customer to Supplier’s facilities and services [ * ].

 

7.0          PRODUCT DELIVERY

 

7.1          Delivery
Date. Except as provided for in this Agreement, in
Schedule B or otherwise mutually agreed upon by the parties, in writing,
Supplier shall use commercially reasonable efforts to ship Products on the
applicable Delivery Date.

 

7.2          Delay
in Shipment Supplier shall use
commercially reasonable efforts to notify Customer in a timely manner of any
delay in Delivery Dates, stating the reasons for the delay. Supplier shall use
commercially reasonable efforts to minimize delays in Delivery Dates and, upon
occurrence of any such delay, shall use commercially reasonable efforts to
remedy same in a timely manner.

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

7.3          Shipping.
All shipments are [ * ].
Supplier may ship partial orders provided Supplier notifies Customer prior to
shipment. Customer shall specify the carrier or means of transportation or
routing on the Purchase Order. In the event that Customer fails to specify
shipping instructions on the Purchase Order, Supplier shall select the best
available carrier on a commercially reasonable basis.

 

7.4          Packaging.
Supplier shall package all Product in
accordance with Supplier’s then current packaging practices and suitable for
shipment under normal circumstances without damage.

 

7.5          Title.
Title to Product shall pass to Customer upon
Supplier’s tender of the relevant Product to the shipping carrier at Supplier’s
facility. Customer hereby grants to, and Supplier reserves, a purchase money
security interest in each Product purchased hereunder, and in any proceeds
thereof, for the amount of the purchase price of such Product. Such security
interest shall automatically be released upon full payment for the Products in
question.

 

8.0          WARRANTIES

 

8.1          Product Warranty. Notwithstanding any provision to the
contrary other than Sections 9.2 and 9.3, Supplier’s sole and exclusive
obligation to the Customer for any Product made by Supplier and sold hereunder is to repair returned Product
or provide a replacement Product [ * ] for any
Product which has been returned to Supplier under the RMA procedure set forth
in Section 8.2 and which is defective in workmanship, material or not in
compliance with the applicable Specifications and has in fact failed under
normal use on or before the expiration of the warranty period set forth on
Exhibit A. All Product, which are identified as experimental Products,
prototypes or Products used in field trials, are not warranted and are provided
to Customer on an “as is” basis. Only parts purchased from third parties at the
express direction of Customer carry only the original manufacturer’s warranty
to the extent applicable to Customer otherwise, all parts shall have the same
warranty at the Product. Supplier shall only accept for repair, replacement or
credit under warranty Products made by third parties, if expressly authorized
to do so by the relevant third party. Any Product repaired or replaced under
warranty is only warranted for the period of time remaining in the original
warranty for the Product. The warranty excludes and does not cover [ * ] Products and parts thereof which have been tampered
with, opened, disassembled, or modified by persons other than IPG personnel or
damage arising from misuse or neglect, damage from accident, use in
applications which exceeds the specifications or ratings, use outside of
environmental specifications for the Product, use with buyer software or
interfacing, improper installation, site preparation or maintenance, or use
other than in accordance with the information and precautions contained in the
operating manual. Any driver software provided by or through Supplier is
provided “as is” with no warranties whatsoever, whether express or implied. IPG
does not warrant that the functions contained in the software will meet the
user’s requirements or that the operation of the equipment or driver software
will be uninterrupted or error free. Customer must claim under the warranty in
writing not later than [ * ] after the
claimed defect is discovered. The Customer must make all claims under this
warranty and no claim shall be accepted from any third party.

 

8.2          Return Material
Authorization. Except
as otherwise provided in this Agreement, Supplier’s then current RMA procedure
shall apply to Supplier’s repair or replacement of both in-warranty and out-of-warranty
Products. Supplier shall only accept returns of Product for which an approved
RMA number has been issued by Supplier and which are accompanied by an itemized
statement of defects. Such Products shall be returned prepaid and insured to
Supplier at the address stipulated by Supplier. All Products which have been
returned to Supplier with an RMA number, but to which the warranty in Section
8.1 does not apply, shall be subject to Supplier’s standard examination charge
in effect at the time, which shall be invoiced by Supplier and paid by Customer
in accordance with this Agreement. All Products returned to Supplier without an
RMA number or which are not accompanied by an itemized statement of defects,
may be returned to Customer, at Customer’s expense, and Supplier shall have no 

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

obligation
to evaluate such Products.

 

8.3          DISCLAIMER OF
WARRANTIES. SUBJECT
TO SECTIONS 9.2 AND 9.3, THE WARRANTY SET FORTH IN SECTION 8.1 AND THE
OBLIGATIONS AND LIABILITIES OF SUPPLIER
THEREUNDER ARE ACCEPTED BY CUSTOMER TO BE EXCLUSIVE AND IN LIEU OF, AND
CUSTOMER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER REMEDIES, WARRANTIES,
GUARANTEES, OBLIGATIONS, REPRESENTATIONS OR LIABILITIES, EXPRESS OR IMPLIED, OF
SUPPLIER WITH RESPECT TO EACH PRODUCT OR PART THEREOF, PRODUCT DOCUMENTATION OR
SERVICE DELIVERED OR PROVIDED UNDER THIS AGREEMENT, WHETHER ARISING IN FACT, IN
LAW, IN CONTRACT (INCLUDING FUNDAMENTAL BREACH), IN TORT (INCLUDING
NEGLIGENCE), OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY,
CONDITION OR REPRESENTATION (A) OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, SATISFACTORY QUALITY, OR ARISING FROM COURSE OF PERFORMANCE, DEALING,
USAGE OR TRADE PRACTICE; (B) THAT THE PRODUCTS BE FREE FROM INFRINGEMENT OF
RIGHTS OF THIRD PARTIES; OR (C) THAT THE OPERATION OF ANY SOFTWARE DELIVERED HEREUNDER WILL BE
UNINTERRUPTED OR ERROR FREE. THIS SECTION AND THE LIMITATIONS SET FORTH HEREIN,
SHALL APPLY IRRESPECTIVE OF THE NATURE OF THE CAUSE OF ACTION, DEMAND OR CLAIM,
INCLUDING BUT NOT LIMITED TO, BREACH OF CONTRACT, NEGLIGENCE, TORT OR ANY OTHER
LEGAL THEORY, AND SHALL SURVIVE A FUNDAMENTAL BREACH OR BREACHES AND/OR FAILURE
OF THE ESSENTIAL PURPOSE OF THE AGREEMENT OR OF ANY REMEDY CONTAINED HEREIN.

 

8.4          LIMITATION OF LIABILITY.
EXCEPT
FOR DAMAGES OR LIABILITY ARISING FROM A BREACH OF SECTION 13.6 (CONFIDENTIAL
INFORMATION), SUPPLIER SHALL NOT BE LIABLE TO CUSTOMER, OR ANY THIRD PARTY, FOR
ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, EXEMPLARY OR INDIRECT COSTS OR DAMAGES,
INCLUDING WITHOUT LIMITATION, LITIGATION COSTS, INSTALLATION AND REMOVAL COSTS,
LOSS OF DATA, PRODUCTION, SAVINGS OR PROFIT OR ANY OTHER COMMERCIAL OR ECONOMIC
LOSS OF ANY KIND (INCLUDING WITHOUT LIMITATION BUSINESS INTERRUPTION OR LOSS OF
BUSINESS) ARISING FROM ANY CAUSE WHATSOEVER, REGARDLESS OF THE FORM OF ACTION,
INCLUDING WITHOUT LIMITATION IN CONTRACT (INCLUDING FUNDAMENTAL BREACH), TORT
(INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, EVEN IF ADVISED OF THE
POSSIBILITY OF SUCH COSTS OR DAMAGES OR SAME WERE REASONABLY FORESEEABLE OR
EVEN IF SUCH COSTS OR DAMAGES ARE ALLEGED TO ARISE FROM NEGLIGENT ACTS,
OMISSIONS, OR CONDUCT OF SUPPLIER OR ITS DIRECTORS, OFFICERS, EMPLOYEES,
AGENTS, REPRESENTATIVES OR SUBCONTRACTORS. EXCEPT FOR DAMAGES FROM A BREACH OF
SECTION 13.6 (CONFIDENTIAL INFORMATION), IN NO EVENT SHALL SUPPLIER’S TOTAL
CUMULATIVE LIABILITY (WHICH FOR GREATER CERTAINTY IS NOT ON A PER INCIDENT
BASIS) TO CUSTOMER IN CONTRACT (INCLUDING FUNDAMENTAL BREACH), TORT (INCLUDING
NEGLIGENCE) OR OTHERWISE EXCEED THE AMOUNT PAID BY SELLER
FOR PRODUCTS FROM WHICH SUCH LIABILITY AROSE DURING THE [ * ]
IMMEDIATELY PRECEDING THE DATE OF THE MOST RECENT CLAIM. FOR THE PURPOSES OF THIS SECTION,
CUSTOMER INCLUDES CUSTOMER’S DIRECTORS, OFFICERS, EMPLOYEEES, AGENTS,
REPRESENTATIVES AND SUBCONTRACTORS. THIS SECTION AND THE LIMITATIONS SET FORTH
HEREIN, SHALL APPLY IRRESPECTIVE OF THE NATURE OF THE CAUSE OF ACTION, DEMAND
OR CLAIM, INCLUDING BUT NOT LIMITED TO, BREACH OF CONTRACT, NEGLIGENCE, TORT OR
ANY OTHER LEGAL THEORY, AND SHALL SURVIVE A FUNDAMENTAL BREACH OR BREACHES
AND/OR FAILURE OF THE ESSENTIAL PURPOSE OF THE AGREEMENT OR OF ANY REMEDY
CONTAINED HEREIN.

 

9.0          INTELLECTUAL
PROPERTY AND INDEMNITIES

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

9.1          Intellectual Property
Rights. Unless otherwise provided for in this
Agreement, nothing in this Agreement shall be construed as a sale, transfer or
assignment of the respective intellectual property rights of the parties
hereto, including without limitation any patent, copyright, trade secrets,
trademarks or trade names, of Supplier or Customer whatsoever, including
without limitation with respect to the Products, Specifications, the Customer’s
system or related information and documentation. All right, title and interest
in and to any inventions, discoveries, improvements, methods, ideas, computer
and other apparatus programs and related documentation, other works of
authorship fixed in any tangible medium of expression, mask works, or other
forms of intellectual property, whether or not subject to statutory protection,
which are made, created, developed, written, conceived or first reduced to
practice by Supplier solely, jointly or on its behalf, in the course of,
arising out of, or as a result of work performed hereunder, and any related tooling, set-up, fitting-up and
preparation, shall belong to and be the sole and exclusive property of
Supplier. Customer retains all right, title and interest in and to art
inventions, discoveries, improvements, methods, ideas, computer and other
apparatus programs and related documentation, other works of authorship fixed
in any tangible medium of expression, mask works, or other forms of
intellectual property, whether or not subject to statutory protection, which
are made, created, developed, written, conceived or first reduced to practice
by Customer solely, jointly or on its behalf, in the course of, arising out of,
or as a result of work relating to Customer’s system (excluding the Product),
and any related tooling, set-up, fitting-up and preparation (excluding the
Product). Customer shall retain all proprietary marks, legends and patent and
copyright notices that appear on the Products, parts and documentation
delivered to Customer by Supplier. Customer shall not modify, disassemble or reverse
engineer the Products, parts or any component thereof.

 

9.2          Intellectual
Property Indemnity. Supplier agrees to
defend or settle, at its sole option, and shall reimburse Customer for all
costs and damages assessed by final judgment against Customer, and any
reasonable expenses (including legal expenses), incurred at the written request
of Supplier directly resulting from any third party claim alleging that any
Products or the use, operation, sale or offer for sale thereof, infringe upon,
misappropriate or violate any third party’s intellectual property rights
(including without limitation patents or copyrights) in the United States.
Customer shall have no authority to settle any claim on behalf of Supplier.
Customer agrees to defend or settle, at its sole option, and shall reimburse
Supplier for all costs and damages assessed by final judgment against Supplier,
and any reasonable expenses (including legal expenses), incurred at the written
request of Customer directly resulting from any third party claim alleging that
the use, operation, sale or offer for sale thereof, infringe upon,
misappropriate or violate any third party’s intellectual property rights
(including without limitation patents or copyrights) in member countries of the
EU and the United States, provided any such infringement, misappropriation or
violation does not exist in the Supplier’s Product but for the combination with
parts, equipment, software or devices added to the Product not supplied by
Supplier.

 

In the event of such a claim of infringement of
third party, Supplier shall have the right to discontinue further deliveries of
the Product and shall use commercially reasonable efforts, at its expense, to:
(a) obtain necessary rights required to permit the sale or use of the Products by
Customer and its customers; or (b) modify or replace such Products to make them
non-infringing (and extend this indemnity thereto), provided that any such
replacement or modified Products comply with the applicable Specifications. In
the event Supplier is unable to achieve either of the options set forth above
within a reasonable period of time or, in the reasonable opinion of Supplier,
Supplier is unlikely to achieve such options within a reasonable period of
time, Supplier shall have the right to immediately terminate Supplier’s
obligations to Customer under this Agreement with respect to the particular
Product and promptly refund to Customer the invoiced purchase price.

 

9.3          Indemnification Procedures. Supplier’s
obligations specified in this Section shall be conditional on and subject to
Customer notifying Supplier promptly in writing of the claim and giving
Supplier full authority, information and assistance for the defense and
settlement thereof. Supplier shall have no 

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

liability for,
and Customer shall indemnify Supplier against, any claim based upon: (a) the
combination, operation, or use of any Product supplied hereunder with
equipment, devices, or software not supplied by Supplier; (b) alteration or
modification of any Product supplied hereunder; or (c) Supplier’s compliance
with Customer’s designs, specifications or instructions [ * ].
Notwithstanding any other provisions hereof, Supplier shall not be liable for
any claim based on Customer’s use of the Products as shipped after Supplier has
informed Customer of modifications or changes in the Products required to avoid
such claims and offered to implement those modifications or changes, if such
claim would have been avoided by implementation of Supplier’s suggestions.

 

10.0        PRODUCT
CHANGES AND DISCONTINUATION

 

10.1        Customer Changes. In the event Customer desires an
engineering change for any of the Products, Customer may submit such proposed
engineering change to Supplier. Supplier and Customer acting reasonably and in
good faith shall negotiate whether such change shall be made and if so, shall
work with each other on the implementation of such change. Customer
acknowledges that such changes may result in additional non-recurring
engineering charges for Customer and may alter the price of the Products, in
which case, this Agreement shall be amended, in writing, to reflect same.

 

10.2        Supplier Permitted
Changes. Supplier
may at any time make any changes, improvements, additions or enhancements to
the Products that do not materially affect the form, fit or function of a
Product (“Permitted Change”) [ * ].
Permitted changes shall be made at no additional charge to Customer.

 

10.3        Supplier Material
Changes. In  the event that Supplier at any time makes
any changes, improvements, additions or enhancements to the Products that
materially affect the form, fit or function of a Product (“Material
Change”),  Supplier
shall provide [ * ] prior written notice to
Customer of such Material Change, outlining the nature of the Material Change
and any applicable non-recurring costs or impact on Delivery Dates or Product
pricing. Customer shall approve or reject a Material Change within [ * ] from receipt of Supplier’s notice, failing which the
Material Change shall be deemed accepted by Customer. In the event of
acceptance of any such Material Change, this Agreement shall be amended, in
writing, to reflect any applicable non-recurring engineering costs or impact on
Delivery Dates or Product pricing.

 

10.4        Rejection of Material
Changes. In
the event Customer rejects any Material Change, Supplier shall continue to
supply unchanged Product in accordance with Section 10.7, in which case the
date of Customer’s rejection of such Material Change shall be deemed the date
on which (i) a Supplier notice of discontinuation for the relevant Product shall
be deemed to be provided to Customer and (ii) the Discontinuance Period shall
be deemed to commence.

 

10.5        Required Changes. Notwithstanding any other term or
condition in this Section 10.0, in the event that any changes, improvements,
additions or enhancements of a Product, including Material Changes, are
required by any law or governmental regulation or requirement or interpretation
thereof by any governmental agency having jurisdiction or is required, in the
discretion of Supplier acting reasonably and in good faith, to address Product
legal compliance, safety, liability or performance (“Required Change”),  Supplier shall provide [ * ] prior written notice (or such shorter period of notice
as may be reasonable in the circumstances) to Customer of such Required Change,
outlining the nature of the Required Change and any applicable non-recurring
costs or impact on Delivery Dates or Product pricing. Customer shall approve or
reject a Required Change within [ * ] from
receipt of Supplier’s notice, failing which the Required Change shall be deemed
accepted by Customer. In the event of acceptance of any such Required Change,
this Agreement shall be amended, in writing, to reflect any applicable
non-recurring engineering costs or impact on Delivery Dates or Product pricing.
In no event 

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

shall
Supplier be required to manufacture, supply or sell a Product to which a
Required Change is applicable.

 

10.6        Rejection of Required
Changes.
In the event Customer rejects any Required Change referred to in Section 10.5,
this Agreement shall be terminated with respect to the applicable Product and
amended, in writing, to delete such Product from Exhibit A. Thereafter,
Supplier shall have no further obligation to supply or sell such Product to Customer and Customer
shall have no further obligation to take delivery of or purchase such Product.

 

10.7        Product Discontinuation. In the event Supplier intends to
discontinue the manufacture and sale of any Product, Supplier shall give [ * ] prior written notice to Customer. At any time during
such [ * ] (the “Discontinuance Period”), Customer may place a last time
Purchase Order for Product, provided the requested delivery dates are in
compliance with the applicable Product Lead-Time and the last requested
delivery date for such Product is not more than [ * ]
after the end of such Discontinuance Period.

 

11.0        TERMINATION

 

11.1        Rights of Termination. Upon the occurrence of any of the following
events, a party may forthwith terminate this Agreement:

 

(a)                                                                                  the other party materially breaches or
defaults any of its material obligations, duties or responsibilities hereunder
(including, in the case of Customer, a failure to pay any amount owing when
due), which breach or default has not been remedied within thirty (30) calendar
days (or fifteen (15) calendar days, in the case of Customer’s failure to pay)
after written notice is given by the party not in default, specifying the
breach or default; or

 

(b)                                                                                 the other party makes an assignment for the
benefit of creditors or admits in writing its inability to pay its debts or the
other party has reasonable evidence that it generally does not pay its debts as
they become due; or

 

(c)                                                                                  a receiver or trustee is appointed for the
other party or for substantially all of such party’s assets; or

 

(d)                                                                                 proceedings or action under any law relating
to bankruptcy, insolvency or the reorganization or relief of debtors are
instituted by or against the other party.

 

11.2        Termination Costs. In the event of termination of this
Agreement by Supplier pursuant to Section 11.1, [ * ].
Notwithstanding any other term or condition of this Agreement, the foregoing
amounts shall be due and payable by Customer immediately upon receipt of the
applicable Supplier invoice. In the event of termination of this Agreement by
Customer pursuant to Section 11.1, Supplier’s liability to Customer shall not,
in any case, exceed [ * ] of the
Purchase Price for the number of units of Product subject to accepted orders
which have not been shipped to Customer (notwithstanding anything to the
contrary in Section 8.4 hereof).

 

12.0        DELAYS IN
PERFORMANCE 

 

12.1        Excusable Delay. In the event of a delay on the part of
Supplier in the performance of any of its obligations or responsibilities under
the terms and conditions of this Agreement due directly or indirectly to
unforeseen circumstances or a cause which is beyond the reasonable control or
without the fault or negligence of Supplier (an “Excusable Delay”), Supplier
shall not be liable for, nor be deemed to be in 

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

default
under or breach of this Agreement on account of such delay and the time fixed
or required for the performance of any such obligation or responsibility shall
be extended for a period equal to the period during which any such delay
persists. Excusable Delay shall be deemed to include, without limitation,
delays occasioned by the following causes:

 

(a)                                  force majeure or acts of God;

(b)                                 war, warlike operations, act of the enemy,
armed aggression, civil commotion, insurrection, riot, embargo or national
threat levels affecting international cargo shipments;

(c)                                  fire, explosion, earthquake, lightning,
flood, draught, windstorm or other action of the elements or other catastrophic
or serious accidents;

(d)                                 epidemic or quarantine restrictions;

(e)                                  any legislation, act, order, directive or
regulation of any governmental or other duly constituted authority;

(f)                                    strikes, lock-out, walk-out, and/or other
labor troubles causing cessation, slow-down or interruption of work;

(g)                                 a Required Change; or

(h)                                 any default in or breach of this Agreement by
Customer or any delay of Customer in the performance of its obligations or
responsibilities under the terms and conditions of this Agreement.

 

12.2        Indefinite Delay and
Termination. If
Customer reasonably concludes, based on its reasonable appraisal of the facts
and normal scheduling procedures, that due to an Excusable Delay delivery of
any Product will be delayed for more than [ * ] after the
applicable Delivery Date or any revised date agreed to by the parties, in
writing, then Customer may then terminate this Agreement, in writing, including
any Purchase Orders, with respect to the affected Product by giving written
notice to Supplier.

 

If, due
to an Excusable Delay, delivery of any Product is delayed for more than [ * ] after the applicable Delivery Date, Customer may
terminate this Agreement, including any Purchase Orders, with respect to the
affected Product by giving written notice to Supplier within [ * ] after the expiration of such [ * ]
period If, due to an Excusable Delay, delivery of any Product is delayed for
more than [ * ] after the applicable Delivery
Date, Supplier may terminate this Agreement, including any Purchase Orders,
with respect to the affected Product by giving written notice to Customer
within [ * ] after the expiration of such [ * ] period.

 

13.0        GENERAL

 

13.1        Export Restrictions. Customer shall not transmit, export or
re-export, directly or indirectly, separately or as part of any system, the
Products or any technical data (including processes and services) received from
Supplier, without first obtaining any license required by the applicable
government, including without limitation, the United States Government and/or
any other applicable competent authority. Customer also certifies that none of
the products or technical data supplied by Supplier under this Agreement shall
be sold or otherwise transferred to, or made available for use by or for, any
entity that is engaged in the design, development, production or use of
nuclear, biological or chemical weapons or missile technology.
Customer shall indemnify and hold Supplier harmless for any violation or alleged
violation by Customer of the foregoing.

 

13.2        Compliance. Customer acknowledges that the Product is a
Class IV laser system and the light emitted from the Product is invisible and
harmful to the human eye. Proper laser safety eyewear must be worn. The Product
is specifically designed to be an OEM laser device for incorporation into
equipment produced by Customer. As such, the Product does not meet the full
requirements for a stand-alone laser 

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

system as defined in 21 CFR
1040.10 under the Radiation Control for Health and Safety Act of 1968. Customer
acknowledges and agrees that Supplier does not comply with the regulations
applicable to medical devices, including but not limited to current Good
Manufacturing Practices. Customer agrees to meet all of the applicable
regulatory requirements for the full laser system and laser products it
manufactures. Customer shall indemnify and hold Supplier harmless for any
violation or alleged violation by Customer of the applicable regulations.
Customer shall not remove required warning and other Product labels put on by
Supplier.

 

13.3        Notices. Any notice, demand or other communication
required or permitted to be given pursuant to this Agreement by either party
shall be in writing and shall be either:

 

(a)                                  Personally delivered to the other party; or

 

(b)                                 Sent by prepaid
overnight courier; or

 

(c)                                  Sent by facsimile transmission or similar
method of recorded communication, charges prepaid, confirmed by prepaid
overnight courier.

 

Any notice, demand or
other communication given in accordance with subparagraphs (a), (b) and (c)
above shall be delivered or sent to the intended recipient at its address
below:

 

If to IPG
Photonics Corporation:

	
  To:

  	
  Bill Shiner

  
	
   

  	
  IPG Photonics Corporation

  	
   

  
	
   

  	
  50 Old Webster Road

  	
   

  
	
   

  	
  Oxford, MA 01540

  	
   

  
	
   

  	
  Fax: 508-373-1103

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Customer:

  	
   

  	
   

  
	
  To:

  	
  Len De Benedictis

  
	
   

  	
  Reliant Technologies, Inc.

  
	
   

  	
  260 Sheridan Avenue, 3rd Floor

  
	
   

  	
  Palo Alto, CA 94306 USA

  
	
   

  	
  Fax: 650-473-0357

  

 

Any party may from time to
time change its address by written notice to the other party given in
accordance with the provisions hereof. Any notice, demand or other
communication delivered in accordance with paragraph (a) or (b) above shall be
deemed to have been received on the day of its delivery and if sent in
accordance with paragraph (c) above, it shall be deemed to have been received
on the first business day following the date of its transmission by facsimile
or similar method of recorded communication (confirmation copy by registered or
certified mail).

 

13.4        Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the provisions thereof relating to conflicts of laws or without regard to
the United Nations Convention on Contracts for the International Sale of Goods.
Supplier and Customer hereby irrevocably and unconditionally submit to the
courts of the State of New  York
and all courts competent to hear appeal therefrom.

 

13.5        Severability. If any term or provision of this
Agreement is found by a court of competent jurisdiction to be invalid, illegal
or otherwise unenforceable, the same shall not affect the other terms or
provisions hereof or the whole of this Agreement, but such term or provision
shall be deemed modified to

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

the
extent necessary in the court’s opinion to render such term or provision
enforceable, and the rights and obligations of the parties shall be construed
and enforced accordingly, preserving to the fullest permissible extent the
intent and agreements of the parties herein set forth.

 

13.6        Confidential
Information. The
terms and provisions of the Confidentiality and Non-Disclosure Agreement,
between Customer and Supplier, dated September 4, 2003 (the “NDA”) are incorporated herein by reference. The parties
hereby agree that the terms and conditions of the NDA continue to apply and
extend to all confidential information (as that term is defined in the NDA)
exchanged between the parties in connection with this Agreement. This Section,
and the terms and conditions of the NDA, shall survive the expiration or
earlier termination of this Agreement.

 

13.7        Independent Contractors.
The
relationship of the parties hereto is that of independent contractors. Under no
circumstances shall any employees of one party be deemed to be the employees of
the other for any purpose. Each party shall pay all wages, salaries, and other
amounts due its respective employees relative to this Agreement and shall be
responsible for all obligations respecting them relating to income tax
withholdings, unemployment insurance premiums, workers’ compensation, health
care and pension plan contributions and other similar responsibilities. Neither
party has the right nor authority to assume nor to create any obligation or
responsibility on behalf of the other party, except as may from time to time be
provided by written instrument signed by both parties. Nothing contained herein
shall be construed as creating an agency or joint venture, consortium or
partnership between the parties.

 

13.8        Survival. The parties agree that the respective
rights, obligations and duties under Section 1.0 (Interpretation), Section 5.1
and 5.2 (Prices for Products and Taxes), Section 6.0 (Invoicing and Payment),
Section 8.0 (Warranties), Section 9.0 (Intellectual Property and Indemnities),
Section 11.2 (Termination Costs), Sections 13.1 to 13.12 (General) and Exhibit
A and Exhibit B and any outstanding payment obligations of Customer, shall
survive expiration or earlier termination of this Agreement

 

13.9        Dispute Resolution. In the event of any dispute, claim,
question, or disagreement arising from or relating to this Agreement or the
breach thereof, the parties hereto shall use their best efforts to settle the
dispute, claim, question, or disagreement. To this effect, the parties shall
involve executives not involved with administration of this Agreement and
internal counsel and shall consult and negotiate with each other in good faith
and, recognizing their mutual interests, attempt to reach a just and equitable
solution satisfactory to both parties. If they do not reach such solution
within a period of [ * ] of
written notice referencing this paragraph, then, upon notice by either party to
the other, all disputes, claims, questions, or differences shall be submitted
to non-binding mediation under its administered by the American Arbitration
Association (“AAA”) under its
Commercial Mediation Rules before resorting to arbitration, litigation, or some
other dispute resolution procedure. The parties shall mediate the dispute
within a period of [ * ] of
selection of one impartial mediator selected in accordance with the applicable
AAA rules. If the parties are not able to resolve all disputes through
negotiation then mediation, all remaining controversies or claims arising out
of or relating to this Agreement, or the breach thereof, shall be settled by
arbitration administered by the AAA in accordance
with its Commercial Arbitration Rules, and judgment on the award rendered by
the arbitrator(s) may be entered in any court having jurisdiction thereof.
Three arbitrators shall be selected in accordance with the rules of the AAA,
and the location of the arbitration shall be New York, New York.

 

13.10      Assignment. This Agreement shall be binding on and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns. Neither party may assign this Agreement or any of their
rights or obligations hereunder to a third party without the express prior
written consent of the other party, which consent shall not be unreasonably
withheld or delayed; provided that Supplier as the right to assign this
Agreement in whole or in part at any time and without the other party’s consent
to any corporate parent, or to any present or future affiliate or subsidiary of
Supplier, provided that the Supplier 

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

shall
remain liable for full performance under this Agreement and the assignee
expressly agrees in writing with the Customer to perform the obligations of the
Supplier; and provided further that, without notice to or consent of Customer,
Supplier may at any time assign any payment to be made to Supplier hereunder.
Any purported assignment contrary to this agreement shall be null and void.

 

13.11      Entire Agreement. This Agreement and its Exhibits express
the entire understanding and agreement for both Supplier and Customer with
respect to the subject matter covered by this Agreement and supersedes any and
all previous agreements, except any existing non-disclosure agreement between
both parties, with reference to the subject matter contained in this Agreement.
All terms and conditions on any Purchase Orders and all provisions on Supplier’s
documents delivered in response to a Purchase Order shall be deemed deleted and
superceded by the terms and conditions of this Agreement, except for
information provided for administrative purposes only such as Purchase Order
number, Product identifier, quantity, pricing, shipping dates, shipping
instructions and delivery location.

 

13.12      Amendment and Waiver. No amendment or waiver of this Agreement
shall be binding unless executed in writing by both parties. No waiver of any
of the provisions of this Agreement shall, constitute a waiver of any other
provision (whether or not similar) nor shall such waiver constitute a
continuing waiver unless otherwise expressly provided.

 

13.13      Counterparts. This Agreement may be executed in any
number of counterparts, including by facsimile, with the same effect as if
Supplier and Customer had each signed the same document. All counterparts shall
be construed together and shall constitute one and the same original Agreement.

 

13.14      Representations and
Warranties. Each of Supplier
and Customer hereby represents and warrants that the execution, delivery or
performance of this Agreement shall not violate or conflict with any other
agreement to which it is a party.

 

IN WITNESS
HEREOF, Supplier and
Customer have executed this Agreement in duplicate originals by their duly
authorized officials.

 

	
  IPG
  PHOTONICS CORPORATION

  	
   

  	
  RELIANT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Denis
  Gapontsev

  	
   

  	
   

  	
  By: 

  	
  /s/ Len
  DeBenedictis

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:
  Denis Gapontsev

  	
   

  	
  Name: Len
  DeBenedictis

  
	
   

  	
   

  	
   

  
	
  Title:
  Vice President

  	
   

  	
  Title:
  President and CTO

  
	
   

  	
   

  	
   

  
	
  Date:
  December 31, 2003

  	
   

  	
  Date:
  December 31, 2003

  
							

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

EXHIBIT A

 

PRODUCT
SCHEDULE

 

	
  1.  Product Name (Product Class)/Description

  	
   

  	
  [ * ]

  
	
   

  	
   

  	
   

  
	
  2.  Customer Part No.

  	
   

  	
  {Insert Customer Part No.}

  
	
   

  	
   

  	
   

  
	
  3.  Supplier Part No.

  	
   

  	
  [ * ]

  
	
   

  	
   

  	
   

  
	
  4.  Product Specification

  	
   

  	
  See attached specifications

  
	
   

  	
   

  	
   

  
	
  5.  Lead-Time

  	
   

  	
  [
  * ].

  
	
   

  	
   

  	
   

  
	
  6.  Unit Price ($U.S.)

  	
   

  	
  [ * ].

  

  [ * ].

  

  [ * ] warranty: [ * ].

  

  [ * ] Warranty:[ * ].

  
	
   

  	
   

  	
   

  
	
  7.  Unique Provisions

  	
   

  	
  Effective
  Date: The Effective date shall be the date on
  which Customer and Supplier shall have signed the Agreement [ * ].

  

  Upside Maximum: [ *
  ].

  

  Exclusivity: [ * ]  Supplier hereby grants to Customer
  manufacturing exclusivity for fiber lasers  [ * ]  solely for Dermatological Procedures in
  the United States for the Term; [ *
  ].

   

  If Customer shall default in such purchase and
  payment obligations set forth under on  [ *
  ] or [ * ], and
  such default continues for a period of  [ * ], the exclusivity obligations of Supplier shall forever terminate.

  

  Minimum Purchases. [
  * ].

  

  Extension of Term: [
  * ].

  

  Strategic Relationship. [ * ].

  

 

 

[ * ]

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

EXHIBIT B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[ * ]

 

[ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

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