Document:

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                                                                    Exhibit 10.2

                          REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the "Agreement") is entered into as of
April 5,2006 by and among Kimco Realty Corporation, a Maryland corporation (the
"Company"), and the persons listed on Exhibit A (each, a Holder and
collectively, the "Holders"), which contemporaneously herewith are to become
members of Kimco Pergament, LLC, a Delaware limited liability company (the
"LLC").

     WHEREAS, the Holders are to receive contemporaneously herewith Class B
Units of limited liability company interests in the LLC ("Units"), issued
without registration under the Securities Act of 1933, as amended (the
"Securities Act"), in connection with the contribution to the LLC of direct or
indirect interests in real property pursuant to that certain Agreement to
Contribute and Form Limited Liability Company among Centereach Associates, LLC,
Bay Shore Associates, LLC, Kimco Pergament, Inc., as assignee of KRC Acquisition
Corp., and the Company, dated as of December 9, 2005 (the "Contribution
Agreement");

     WHEREAS, pursuant to the Limited Liability Company Agreement of the LLC
(the "Limited Liability Company Agreement") such Units may, after the first
anniversary of the Effective Date with (the "Lock-Up Expiration Date"), be
tendered by the Holder thereof for redemption by the LLC for cash or, at the
Company's election, shares of the Company's common stock, par value $.01 per
share ("Common Stock"); and

     WHEREAS, it is a condition precedent to the closing of the Contribution
Agreement that the Company provide the Holders with the registration rights set
forth in Section 2 hereof.

     NOW, THEREFORE, in consideration of the foregoing, the mutual promises and
agreements set forth herein, and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

     1. Certain Definitions. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

     "Effective Date" shall mean April 5, 2006.

     "NASD" shall mean the National Association of Securities Dealers, Inc.

     "NYSE" shall mean the New York Stock Exchange.

     "Person" shall mean an individual, partnership, corporation, limited
liability company, trust, or unincorporated organization, or a government or
agency or political subdivision thereof.

     "Prospectus" shall mean the prospectus included in a Registration Statement
at the time the Registration Statement was declared effective by the SEC, as
subsequently amended or supplemented by any prospectus supplement relating to
the terms of the offering of any portion

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of the Registrable Shares covered by such Registration Statement, and in each
case including all material incorporated by reference therein.

     "Registrable Shares" shall mean the Shares, excluding (i) Shares for which
a Registration Statement relating to the sale thereof shall have become
effective under the Securities Act and which have been disposed of under such
Registration Statement (including, without limitation, Shares issued to the
Holders in exchange for Units pursuant to an effective original issuance
Registration Statement), (ii) Shares sold pursuant to Rule 144 under the
Securities Act or (iii) Shares eligible (or which would be eligible in the
absence of the Holder's ownership of Common Stock other than Registrable Shares)
for sale pursuant to Rule 144(k) under the Securities Act. For clarification, it
is understood that once Shares have been issued to a Holder under an effective
Registration Statement, such Shares are no longer Registrable Shares no matter
who holds such Shares, and, accordingly, neither the Holder nor any subsequent
holder (whether or not such holder is an affiliate of the Company) of such
Shares has any further registration rights with respect to such Shares under
this Agreement.

     "Registration Expenses" shall mean any and all expenses incurred by the
Company incident to the performance of or compliance with this Agreement,
including, without limitation: (i) all SEC, stock exchange or NASD registration
and filing fees; (ii) all fees and expenses incurred in connection with
compliance with state securities or "blue sky" laws and the rules of the NYSE or
the NASD; (iii) all expenses of any Persons in preparing or assisting in
preparing, word processing, printing and distributing any Registration
Statement, any Prospectus, certificates and other documents relating to the
performance of and compliance with this Agreement; (iv) all fees and expenses
incurred in connection with the listing, if any, of any of the Registrable
Shares on any securities exchange or exchanges pursuant to Section 2(e) hereof;
and (v) the fees and disbursements of counsel for the Company and of the
independent public accountants of the Company, including the expenses of any
special audit or "cold comfort" letters required by or incident to such
performance and compliance. Registration Expenses shall specifically exclude
underwriting discounts and commissions relating to the sale or disposition of
Registrable Shares by a selling Holder, the fees and disbursements of counsel
representing a selling Holder, fees and expenses of any underwriter engaged by a
selling Holder and transfer taxes, if any, relating to the sale or disposition
of Registrable Shares by a selling Holder, all of which shall be borne by such
Holder in all cases.

     "Registration Statement" shall mean any registration statement of the
Company pursuant to the requirements of the Securities Act which covers any of
the Registrable Shares on an appropriate form, and all amendments and
supplements to such registration statement, including post-effective amendments
and supplements, in each case including the Prospectus contained therein, all
exhibits thereto and all materials incorporated by reference therein.

     "SEC" shall mean the Securities and Exchange Commission.

     "Shares" shall mean the shares of Common Stock issued or to be issued to
the Holder(s) upon redemption or in exchange for its or their Units, as
appropriately adjusted on account of any stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger, consolidation
or other reorganization.

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     2. Registration.

          (a) Filing of Issuance Registration Statement. Subject to the
provisions of Section 2(b) below, the Company will file with the SEC a
Registration Statement on Form S-3 (the "Initial Issuance Registration
Statement") under Rule 415 under the Securities Act, relating to the issuance to
the Holders of Shares in exchange for the Units acquired pursuant to the
Contribution Agreement, such filing to be made on a date (the "Filing Date")
which is no earlier than two weeks before the Lock-Up Expiration Date and no
later than two weeks after the LockUp Expiration Date; provided, however, that,
notwithstanding the foregoing, the Filing Date may be such other date as may be
required under applicable provisions of the Securities Act or as may be required
by the SEC pursuant to its interpretation of applicable federal securities laws
and the rules and regulations promulgated thereunder. Unless a Successor
Issuance Registration Statement is an "automatic shelf registration statement"
as defined in Rule 405 under the Securities Act, the Company shall use its
reasonable efforts to cause the Initial Issuance Registration Statement to be
declared effective by the SEC for all of the Registrable Shares covered thereby
within ninety (90) days after the Filing Date. In the event that the Company is
unable to cause the Initial Issuance Registration Statement to be declared
effective by the SEC within ninety (90) days following the Filing Date, then the
provisions of Section 2(b) shall apply. Notwithstanding the availability of
rights under Section 2(b), the Company shall continue to use its reasonable
efforts to cause such Initial Issuance Registration Statement to be declared
effective by the SEC until such time as the Company shall file and have declared
effective a Resale Shelf Registration Statement (as hereinafter defined) in
accordance with Section 2(b). In the event that the Initial Issuance
Registration Statement will cease to be effective pursuant to Rule 415(a)(5)
under the Securities Act prior to the Issuance Registration Expiration Date (as
defined below), then, immediately prior to the time such Initial Issuance
Registration Statement would cease to be effective, the Company will file with
the SEC a Registration Statement on Form S-3 under Rule 415 under the Securities
Act (a "Successor Issuance Registration Statement", and together with the
Initial Issuance Registration Statement, the "Issuance Registration
Statements"), relating to the issuance to the Holders of Shares covered by such
Initial Issuance Registration Statement. Additionally, in the event that any
Successor Issuance Registration Statement will cease to be effective pursuant to
Rule 415(a)(5) under the Securities Act prior to the Issuance Registration
Expiration Date, then, immediately prior to the time such Successor Issuance
Registration Statement would cease to be effective, the Company will file an
additional Successor Issuance Registration Statement relating to the issuance to
the Holders of Shares covered by such then effective Successor Issuance
Registration Statement. Unless a Successor Issuance Registration Statement is an
"automatic shelf registration statement" as defined in Rule 405 under the
Securities Act, the Company will use its reasonable efforts to cause such
Successor Issuance Registration Statement to be declared effective by the SEC
for all Registrable Securities covered thereby within one hundred eighty (180)
days of the third anniversary of the initial effective date of the Registration
Statement it is to succeed. In the event that the Company is unable to cause a
Successor Issuance Registration Statement to be declared effective by the SEC
within one hundred eighty (180) days of the third anniversary of the initial
effective date of the Registration Statement it is to succeed, then the
provisions of Section 2(b) shall apply. Notwithstanding the availability of
rights under Section 2(b), the Company shall continue to use its reasonable
efforts to cause such Successor Issuance

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Registration Statement to be declared effective by the SEC until such time as
the Company shall file and have declared effective a Resale Shelf Registration
Statement (as hereinafter defined) in accordance with Section 2(b). The Company
agrees to use its reasonable efforts to keep an Issuance Registration Statement
effective at all times until the date (the "Issuance Registration Expiration
Date") which is the earlier of (i) the date on which all Holders have tendered
their Units for redemption and the redemption price therefor (whether paid in
cash or in Common Shares) has been delivered to the Holders or (ii) the date on
which the Holders no longer hold any Units or Registrable Shares. The Company
shall use its reasonable efforts to cause each Issuance Registration Statement
to be an "automatic shelf registration statement" as defined in Rule 405 under
the Securities Act, to the extent that the Company is eligible to do so.

          (b) Registration Statement Covering Resale of Common Shares. In the
event that, for any reason, the Company determines that it (i) is unable to
cause the Initial Issuance Registration Statement to be declared effective by
the SEC within ninety (90) days following the Filing Date, (ii) unable to cause
a Successor Issuance Registration Statement to be declared effective by the SEC
within one hundred eighty (180) days of the third anniversary of the initial
effective date of the Registration Statement it is to succeed, or (iii) (except
as otherwise permitted by Section 7) is unable or it is impracticable to keep an
Issuance Registration Statement relating to the issuance to the Holders of
Shares in exchange for the Units effective at all times after the Lock-Up
Expiration Date and until the Issuance Registration Expiration Date, the Company
shall file with the SEC a Registration Statement on Form S-3 (a "Resale Shelf
Registration Statement") under Rule 415 under the Securities Act relating to the
resale by the Holders of their Registrable Shares. The Company shall use its
reasonable efforts to cause such Resale Shelf Registration Statement to be
declared effective by the SEC as soon as practicable thereafter. The Company
agrees to use its reasonable efforts to keep the Resale Shelf Registration
Statement, after its date of effectiveness, continuously effective until the
date (the "Resale Shelf Registration Expiration Date") which is the earlier of
(x) the date on which all Registrable Shares have been disposed of by the
Holders or (y) the date on which all Registrable Shares are eligible for sale
pursuant to Rule 144(k) (or any successor provision). After the Company has
filed the Resale Shelf Registration Statement, any obligation of the Company to
file an Issuance Registration Statement pursuant to Section 2(a) above with
respect to the Registrable Shares registered by the Resale Shelf Registration
Statement shall be suspended for as long as the Resale Shelf Registration
Statement remains effective. The Company shall use its reasonable efforts to
cause each Resale Shelf Registration Statement to be an "automatic shelf
registration statement" as defined in Rule 405 under the Securities Act, to the
extent that the Company is eligible to do so.

          (c) Right to Satisfy with Cash in Lieu of Shares. In the event that
(x) the Company fails for any reason to file or obtain the effectiveness of an
Issuance Registration Statement or the Resale Shelf Registration Statement or
(except as otherwise permitted by Sections 7(a), 7(b) and 8) does not keep any
such Issuance Registration Statement or Resale Shelf Registration Statement
effective until the Issuance Registration Statement Expiration Date or the
Resale Shelf Registration Statement Expiration Date, as applicable, and (y) the
Company satisfies a Holder's redemption right with respect to Units by causing
the redemption or exchange of such Units for cash as permitted under the Limited
Liability Company Agreement,

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then the Company shall not be deemed to have breached any of its obligations
under this Agreement with respect to such Holder.

          (d) Notification and Distribution of Materials. The Company shall
notify each Holder of the effectiveness of any Registration Statement applicable
to the Shares of such Holder and, in the case of a Resale Shelf Registration
Statement, shall furnish to each such Holder the number of copies of such
Registration Statement and the Prospectus contained therein as such Holder may
reasonably request in order to facilitate its sale of the Registrable Shares in
the manner described in such Registration Statement.

          (e) Amendments and Supplements; Exchange Listing Applications. The
Company shall prepare and file with the SEC from time to time such amendments
and supplements to any Registration Statement and Prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective and
to comply with the provisions of the Securities Act with respect to the
disposition of all the Registrable Shares until the earlier of (i) such time as
all of the Registrable Shares have been issued or disposed of in accordance with
the intended methods of disposition by the Holders or issuance by the Company as
set forth in such Registration Statement or (ii) the date on which such
Registration Statement ceases to be effective in accordance with the terms of
this Section 2. Upon twenty (20) business days' notice, the Company shall file
any supplement or post-effective amendment to such Registration Statement or
Prospectus with respect to the plan of distribution or such Holder's ownership
interests in Registrable Shares that is reasonably necessary to permit the sale
of the Holder's Registrable Shares pursuant to the Registration Statement. The
Company shall file any necessary listing applications or amendments to the
existing applications to cause the Shares registered under the Registration
Statement to be then listed or quoted on the primary exchange or quotation
system on which the Common Stock is then listed or quoted.

          (f) Notice of Certain Events. At any time when a Prospectus relating
to a Registration Statement is required to be delivered under the Securities Act
by a Holder to a transferee, the Company shall immediately notify each Holder of
the happening of any event as a result of which the Prospectus included in such
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. In such event, the Company shall promptly
prepare and furnish to each applicable Holder a reasonable number of copies of
a supplement to or an amendment of such Prospectus as may be necessary so that,
as thereafter delivered to the purchasers of Registrable Shares sold under the
Prospectus, such Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
are made, not misleading. The Company will, if necessary, amend the Registration
Statement of which such Prospectus is a part to reflect such amendment or
supplement.

     3. State Securities Laws. Subject to the conditions set forth in this
Agreement, the Company shall, in connection with the filing of any Registration
Statement hereunder, file such documents as may be necessary to register or
qualify the Registrable Shares under the securities

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or "Blue Sky" laws of such states as any Holder may reasonably request in
writing, and the Company shall use its reasonable efforts to cause such filings
to become effective; provided, however, that the Company shall not be obligated
to qualify as a foreign corporation to do business under the laws of any such
state in which it is not then qualified or to file any general consent to
service of process in any such state. Once effective, the Company shall use its
reasonable efforts to keep such filings effective until the earlier of (a) such
time as all of the Registrable Shares have been disposed of in accordance with
the intended methods of disposition by the Holder as set forth in the applicable
Registration Statement, (b) in the case of a particular state, a Holder has
notified the Company that it no longer requires an effective filing in such
state in accordance with its original request for filing or (c) the date on
which the applicable Registration Statement ceases to be effective in accordance
with Section 2. The Company shall promptly notify each Holder of, and confirm in
writing, the receipt by the Company of any notification with respect to the
suspension of the qualification of the Registrable Shares for sale under the
securities or "Blue Sky" laws of any jurisdiction or the initiation of any
threat of any proceeding for such purpose.

     4. Expenses. Except as otherwise provided in this Section 4, the Company
shall bear all Registration Expenses incurred by the Company in connection with
the registration of the Registrable Shares pursuant to this Agreement. Each
Holder shall be responsible for any brokerage or underwriting fees, discounts or
commissions and taxes of any kind (including, without limitation, transfer
taxes) with respect to any disposition, sale or transfer of Registrable Shares
sold by it, for any fees and expenses of any underwriter engaged by it, and for
any legal, accounting and other expenses incurred by it. In the event that the
Company (in its sole discretion and without any obligation to do so) amends a
Registration Statement in response to a request by a Holder for such amendment
for the purpose of (i) reflecting ownership of Units or Shares by a Person to
whom the Holder transferred such Units or Shares, or (ii) reflecting a change in
the plan of distribution or ownership interests with respect to a Holder's
Registrable Shares, then the Holder requesting such amendment shall bear all
fees, costs and expenses incurred by the Company or by such Holder in connection
therewith, including fees related to the delisting of Shares from any national
securities exchange or quotation system on which such Shares had been listed for
trading.

     5. Indemnification by the Company.

          (a) The Company agrees to indemnify each Holder and, if a Holder is a
person other than an individual, such Holder's respective officers, directors,
employees, agents, representatives and affiliates, and each person or entity, if
any, that controls such Holder within the meaning of the Securities Act (each an
"Indemnitee") against any and all losses, claims, damages, actions, liabilities,
costs and expenses (including, without limitation, reasonable fees, expenses and
disbursements of attorneys documented in writing), joint or several, arising out
of or based upon any untrue or alleged untrue statement of material fact
contained in the Registration Statement or any Prospectus, or any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; provided that the Company shall not be
liable to such Indemnitee or any other person to the extent that any such loss,
claim,

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damage, liability (or action or proceeding in respect thereof), cost or expense
arises out of or is based upon (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in such Registration Statement,
any such Prospectus in reliance upon and in conformity with information which
was furnished to the Company for use in connection with the Registration
Statement or the Prospectus contained therein by or on behalf of a Holder or any
other Indemnitee or (ii) a Holder's failure to send or give a copy of the most
current Prospectus furnished to the Holders by the Company at or prior to the
time such action is required by the Securities Act to the person claiming an
untrue statement or alleged untrue statement or omission or alleged omission if
such statement or omission was corrected in such Prospectus.

          (b) In the event the Company or any Holder receives a complaint, claim
or other notice of any loss, claim, damage, action or liability (collectively, a
"Liability") giving rise to a claim for indemnification under Section 5(a) above
or Section 6 below, the indemnified party shall promptly notify the person(s)
against whom indemnification is sought of such complaint, claim or other notice,
and the indemnifying party shall have the right to investigate and defend any
such loss, claim, damage, liability or action; provided, that the failure to
promptly give notice shall not relieve the indemnifying party from the
indemnification obligations hereunder except to the extent that such party is
materially prejudiced by the failure or delay of the indemnified party in giving
such notice. If any such complaint, claim or other notice of any Liability is
brought against any indemnified party and it notifies the indemnifying party of
its commencement, the indemnifying party will be entitled to participate in and,
to the extent that it elects by delivering written notice to the indemnified
party promptly after receiving notice of the commencement of the action from the
indemnified party, jointly with any other indemnifying party similarly notified,
to assume the defense of the action, with counsel reasonably satisfactory to the
indemnified party, and after notice from the indemnifying party to the
indemnified party of its election to assume the defense, the indemnifying party
shall not be liable to the indemnified party for any legal or other expenses
except as provided below and except for the reasonable costs of investigation
subsequently incurred by the indemnified party in connection with the defense.
The indemnified party shall have the right to employ its own counsel in any such
action, but the fees, expenses and other charges of such counsel shall be at the
expense of the indemnified party unless (i) the employment of counsel by the
indemnified party has been authorized in writing by the indemnifying party, (ii)
the indemnified party has reasonably concluded (based on advice of counsel) that
there may be legal defenses available to it or other indemnified parties
different from or in addition to those available to the indemnifying party or
parties, (iii) a conflict or potential conflict exists (based on advice of
counsel to the indemnified party) between the indemnified party and the
indemnifying party (in which case the indemnifying party shall not have the
right to direct the defense of such action on behalf of the indemnified party)
or (iv) the indemnifying party has not in fact employed counsel to assume the
defense of such action within a reasonable time after receiving notice of the
commencement of the action or has failed to employ counsel reasonably
satisfactory to such indemnified party, in each of which cases the reasonable
fees, disbursements and other charges of counsel will be at the expense of the
indemnifying party or parties. The indemnifying party or parties shall not,
unless there exists a conflict of interest among the indemnified parties, in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the reasonable fees, disbursements and other charges of more than
one separate firm admitted to practice in such

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jurisdiction at any time for all such indemnified parties. All such fees,
disbursements and other charges shall be reimbursed by the indemnifying party
promptly as they are incurred. An indemnifying party shall not be liable for any
settlement of any action or claim effected without its written consent (which
consent will not be unreasonably withheld). No indemnifying party shall, without
the prior written consent of each affected indemnified party, settle or
compromise or consent to the entry of any judgment in any pending or threatened
claim, action or proceeding relating to the matters contemplated by this section
unless such settlement, compromise or consent includes an unconditional release
of each such indemnified party from all liability arising or that may arise out
of such claim, action or proceeding. If a settlement is reached with such
consent or if a final judgment is entered for the plaintiff, the indemnifying
party agrees to indemnify any indemnified party from and against any loss or
liability by reason of such settlement or judgment.

     6. Covenants of Holder(s). Each Holder hereby agrees (a) to cooperate with
the Company and to promptly furnish to the Company all such information
concerning its plan of distribution and its ownership interests with respect to
its Registrable Shares, and all such other information required to be furnished
by the Securities Act in connection with the preparation of a Registration
Statement with respect to such Holder's Registrable Shares and any filings with
any state securities commissions as the Company may reasonably request, (b) to
deliver or cause delivery of the Prospectus contained in such Registration
Statement (other than an Issuance Registration Statement) to any purchaser of
the shares covered by such Registration Statement from the Holder and (c) to
indemnify the Company, its officers, directors, employees, agents,
representatives and affiliates, and each person, if any, who controls the
Company within the meaning of the Securities Act and each other person or
entity, if any, subject to liability because of his, her or its connection with
the Company against any and all losses, claims, damages, actions, liabilities,
costs and expenses (including, without limitation, reasonable fees, expenses and
disbursements of attorneys documented in writing) arising out of or based upon
(i) any untrue statement or alleged untrue statement of material fact contained
in either such Registration Statement or the Prospectus contained therein, or
any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, if and to the extent
that such statement or omission occurs from reliance upon and in conformity with
information regarding a Holder, its plan of distribution or its ownership
interests, which was furnished to the Company by or on behalf of a Holder for
use therein unless such statement or omission was corrected in a writing
delivered to the Company not less than five (5) business days prior to the date
of the final Prospectus or (ii) the failure by a Holder or any underwriter,
broker, dealer or agent acting for on behalf of such Holder to deliver or cause
to be delivered the most current Prospectus furnished by the Company to the
Holder to any purchaser of the shares covered by such Registration Statement
from the Holder. In connection with the preparation of a Registration Statement
with respect to such Holders' Registrable Shares, the Company may distribute to
the Holders one or more questionnaires or other documents (each, a "Request for
Information") intended to solicit and/or update and/or confirm information with
respect to each Holder (including, without limitation, such Holder's plan of
distribution and then-current beneficial ownership of shares of Common Stock).
The parties hereto expressly agree that the failure by a Holder to respond to
any such Request for Information within the time period

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established therein by the Company (which may be no shorter than ten (10)
business days after sending such Request for Information) may, at the Company's
election, be deemed either (x) a representation and warranty from such Holder to
the Company that all information set forth in such Request for Information (1)
is true, correct and complete in all material respects and (2) may be relied
upon by the Company in preparing such Registration Statement with the same
effect under this Agreement as if such information were provided directly by the
Holder to the Company, or (y) a waiver of any obligation of the Company
hereunder to include such Holder's Registrable Shares in such Registration
Statement.

     7. Suspension of Registration Requirement.

          (a) The Company shall promptly notify each Holder of, and confirm in
writing, the issuance by the SEC of any stop order suspending the effectiveness
of a Registration Statement with respect to such Holder's Registrable Shares or
the initiation of any proceedings for that purpose. The Company shall use its
best efforts to obtain the withdrawal of any order suspending the effectiveness
of such a Registration Statement as soon as reasonably practicable.

          (b) Notwithstanding anything to the contrary set forth in this
Agreement, the Company's obligation under this Agreement to cause a Registration
Statement and any filings with any state securities commission to become
effective or to amend or supplement a Registration Statement shall be suspended
in the event and during such period as circumstances exist (including, without
limitation, pending negotiations relating to, or consummation of, a transaction
or the occurrence of an event that would require additional disclosure of
material information by the Company in the Registration Statement or such
filing, as to which the Company has a bona fide business purpose for preserving
confidentiality or which renders the Company unable to comply with SEC
requirements) that would make it impractical or unadvisable to cause the
Registration Statement or such filings to become effective or to amend or
supplement the Registration Statement (such circumstances being hereinafter
referred to as a "Suspension Event"), but such suspension shall continue only
for so long as such event or its effect is continuing. The Company shall notify
each Holder of the existence of any Suspension Event.

     8. Black-Out Period. Each Holder agrees that, following the effectiveness
of any Registration Statement (except an Issuance Registration Statement)
relating to Registrable Shares of such Holder, such Holder will not effect any
sales of the Registrable Shares pursuant to the Registration Statement or any
filings with any state securities commissions at any time after such Holder has
received notice from the Company to suspend sales as a result of the occurrence
or existence of any Suspension Event or so that the Company may correct or
update the Registration Statement or such filing. The Holder may recommence
effecting sales of the Shares pursuant to the Registration Statement or such
filings following further notice to such effect from the Company ("Advice").
Each Holder further agrees that, following the effectiveness of any Issuance
Registration Statement, as a result of the occurrence or existence of any
Suspension Event or so that the Company may correct or update the Registration
Statement or any filings with any state securities commissions and until
issuance of an Advice, (i) the Company may suspend during such period the
issuance of Common Stock pursuant to an Issuance Registration

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Statement (but any Common Stock not issued because of any such suspension must
be delivered promptly following issuance of the Advice), and (ii) neither the
LLC nor the Company shall be obligated during such period to redeem or exchange
Units for cash. Any Advice given pursuant to this Section 8 shall be given by
the Company promptly, but in any event not later than five (5) business days,
after the conclusion of a Suspension Event.

     9. Additional Shares. The Company, at its option, may register, under any
Registration Statement and any filings with any state securities commissions
filed pursuant to this Agreement, any number of unissued shares of Common Stock
of the Company or any shares of Common Stock or other securities of the Company
owned by any other securityholder(s) of the Company.

     10. Contribution. If the indemnification provided for in Sections 5 and 6
hereof is unavailable to an indemnified party with respect to any losses,
claims, damages, actions, liabilities, costs or expenses referred to therein or
is insufficient to hold the indemnified party harmless as contemplated therein,
then the indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, actions, liabilities, costs or expenses
in such proportion as is appropriate to reflect the relative fault of the
Company, on the one hand, and the Indemnitee, on the other hand, in connection
with the statements or omissions which resulted in such losses, claims, damages,
actions, liabilities, costs or expenses as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and of the
Indemnitee, on the other hand, shall be determined by reference to, among other
factors, whether the untrue or alleged untrue statement of a material fact or
omission to state a material fact relates to information supplied by the Company
or by the Indemnitee and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission;
provided, however, that in no event shall the obligation of any indemnifying
party to contribute under this Section 10 exceed the amount that such
indemnifying party would have been obligated to pay by way of indemnification if
the indemnification provided for under Section 5 or 6 hereof had been available
under the circumstances.

     The Company and each of the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 10 were determined by pro
rata allocation or by any other method of allocation that does not take account
of the equitable considerations referred to in the immediately preceding
paragraph.

     Notwithstanding the provisions of this Section 10, no Holder shall be
required to contribute any amount in excess of the amount by which the gross
proceeds from the sale of Shares exceeds the amount of any damages that the
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission. No indemnified party guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any indemnifying party who was not guilty
of such fraudulent misrepresentation.

                                       10

<PAGE>

     11. No Other Obligation to Register. Except as otherwise expressly provided
in this Agreement, the Company shall have no obligation to the Holders to
register the Registrable Shares under the Securities Act.

     12. Amendments and Waivers. The provisions of this Agreement may not be
amended, modified, supplemented or waived, in a manner adverse to a Holder who
has not agreed with respect thereto, without the prior written consent of the
Company and the Holders of in excess of fifty percent (50%) of the aggregate of
all outstanding Registrable Shares and Units that are convertible into
Registrable Shares (which, for the purpose of this Section 12, are to be counted
as if all such Units were converted into shares of Common Stock).

     13. Notices. Except as set forth below, all notices and other
communications provided for or permitted hereunder shall be in writing and shall
be deemed to have been duly given if delivered personally or sent by telex or
telecopier, registered or certified mail (return receipt requested), postage
prepaid or courier or overnight delivery service to the respective parties at
the following addresses (or at such other address for any party as shall be
specified by like notice, provided that notices of a change of address shall be
effective only upon receipt thereof), and further provided that in case of
directions to amend the Registration Statement pursuant to Section 2(e) or
Section 7, a Holder must confirm such notice in writing by overnight express
delivery with confirmation of receipt:

          If to the Company: Kimco Realty Corporation
                             3333 New Hyde Park Road, Suite 100
                             New Hyde Park, New York 11042-0020
                             Attention: Edward Senenman

          with a copy to:    Kimco Realty Corporation
                             3333 New Hyde Park Road, Suite 100
                             New Hyde Park, New York 11042-0020
                             Attention: Barbara Briamonte, Esq.

                             and to:

                             Goodwin Procter LLP
                             Exchange Place
                             Boston, MA 02109-2881
                             Telecopy: (617) 523-1231
                             Attention: Andrew C. Sucoff, Esq.

          If to a Holder:    at the address listed under such Holder's name
                             on the Holder's signature page

          with a copy to:    Pryor Cashman Sherman & Flynn LLP
                             410 Park Avenue

                                       11

<PAGE>

                             New York, New York 10022
                             Telecopy: (212) 798-6923
                             Attention: Eric B. Woldenberg, Esq.

In addition to the manner of notice permitted above, notices given pursuant to
Sections 2, 7 and 8 hereof may be effected telephonically and confirmed in
writing thereafter in the manner described above.

     14. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
permitted assigns, provided, however, that the Company shall not be obligated to
file or amend a Registration Statement for a permitted transferee of Units and,
if the Company does make such filing or amendment, may condition the same on
payment of expenses as contemplated by Section 4. This Agreement may not be
assigned by any Holder without the written consent of the Company, which may be
withheld in its sole discretion, and any attempted assignment hereof by any
Holder without such consent will be void and of no effect and shall terminate
all obligations of the Company hereunder, and the Holders shall indemnify the
Company and the LLC against any and all losses, claims, damages, actions,
liabilities, costs and expenses (including without limitation reasonable fees,
expenses and disbursements of attorneys and other professionals), arising out of
or based upon such attempted assignment.

     15. Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

     16. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed wholly within said State.

     17. Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be in any way impaired
thereby, it being intended that all of the rights and privileges of the parties
hereof shall be enforceable to the fullest extent permitted by law.

     18. Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be the complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein,
with respect to such subject matter. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter.

     19. Additional Representations. Each Holder of Units agrees that upon
surrender of any such Units for redemption or exchange as provided in the
Limited Liability Company

                                       12

<PAGE>

Agreement and this Agreement, such Holder shall make such investment and other
representations in connection with (and as a condition to) the issuance of
Common Stock in exchange for such Units as the Company or the LLC may reasonably
request in order to comply with federal and state securities law.

                  [Remainder of page intentionally left blank]

                                       13

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

                                        KIMCO REALTY CORPORATION

                                        By: /s/ Edward Senenman
                                            ------------------------------------
                                        Name: Edward Senenman
                                        Title: Vice President

                  [See Attached Signature Page(s) of Holder(s)]

                [Signature Page to Registration Rights Agreement]

                                       14

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                              HOLDER SIGNATURE PAGE

     The undersigned, desiring to become a Holder under, and legally bound by,
that certain Registration Rights Agreement (the "Registration Rights
Agreement"), dated as of April 5, 2006, by and among Kimco Realty Corporation
and certain members of KIMCO Pergament LLC, hereby becomes a party to the
Registration Rights Agreement. The undersigned agrees that this signature page
may be attached to any counterpart copy of the Registration Rights Agreement.

                                        Holder: The Murray Pergament 1999
                                                Trust f/b/o Issue of Bruce
                                                Pergament

                                        By: /s/ Eric B. Woldenberg
                                            ------------------------------------
                                            Eric B. Woldenberg
                                            Trustee

                                        Address: c/o Pryor Cashman Sherman &
                                                 Flynn LLP
                                                 410 Park Avenue
                                                 New York, NY 10022
                                                 ATTN: Eric B. Woldenberg

                                        Telephone: 212-326-0865
                                        Telecopy: 212-798-6923
                                        Federal Tax ID#: 11-6551714

                                        Address for Notice:
                                        c/o Pryor Cashman Sherman & Flynn LLP
                                        410 Park Avenue
                                        New York, NY 10022
                                        ATTN: Eric B. Woldenberg

                                        The Holder Represents that, as of this
                                        day and without regard to Units owned by
                                        the Holder, it has beneficial ownership
                                        of (check one):

                                         X   No shares of Common Stock of Kimco
                                        ---  Realty Corporation

                                             The following number of shares of
                                        ---  Common Stock of Kimco Realty
                                             Corporation:

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

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                              HOLDER SIGNATURE PAGE

     The undersigned, desiring to become a Holder under, and legally bound by,
that certain Registration Rights Agreement (the "Registration Rights
Agreement"), dated as of April 5, 2006, by and among Kimco Realty Corporation
and certain members of KIMCO Pergament LLC, hereby becomes a party to the
Registration Rights Agreement. The undersigned agrees that this signature page
may be attached to any counterpart copy of the Registration Rights Agreement.

                                        Holder: Robert Pergament

                                        /s/ Robert Pergament
                                        ----------------------------------------
                                        Address: 17085 White Haven Drive
                                                 Boca Raton, FL 33496-5922

                                        Telephone: 561-487-8358
                                        Telecopy: 561-488-9423
                                        Federal Tax ID#: ###-##-####

                                        Address for Notice:

                                        17085 White Haven Drive
                                        Boca Raton, FL 33496-5922

                                        The Holder Represents that, as of this
                                        day and without regard to Units owned by
                                        the Holder, it has beneficial ownership
                                        of (check one):

                                         X   No shares of Common Stock of Kimco
                                        ---  Realty Corporation

                                             The following number of shares of
                                        ---  Common Stock of Kimco Realty
                                             Corporation:

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

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                              HOLDER SIGNATURE PAGE

     The undersigned, desiring to become a Holder under, and legally bound by,
that certain Registration Rights Agreement (the "Registration Rights
Agreement"), dated as of April 5, 2006, by and among Kimco Realty Corporation
and certain members of KIMCO Pergament LLC, hereby becomes a party to the
Registration Rights Agreement. The undersigned agrees that this signature page
may be attached to any counterpart copy of the Registration Rights Agreement.

                                        Holder: Centereach Associates, LLC

                                        By: /s/ Bruce Pergament
                                            ------------------------------------
                                            Bruce Pergament
                                            Manager

                                        Address: 1500 Old Northern Blvd.
                                                 Roslyn, NY 11576

                                        Telephone: 516-484-8800
                                        Telecopy: 516-484-9170
                                        Federal Tax ID#: 116244763

                                        Address for Notice:

                                        1500 Old Northern Blvd.
                                        Roslyn, NY 11576

                                        The Holder Represents that, as of this
                                        day and without regard to Units owned by
                                        the Holder, it has beneficial ownership
                                        of (check one):

                                         X   No shares of Common Stock of Kimco
                                        ---  Realty Corporation

                                             The following number of shares of
                                        ---  Common Stock of Kimco Realty
                                             Corporation:

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

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                              HOLDER SIGNATURE PAGE

     The undersigned, desiring to become a Holder under, and legally bound by,
that certain Registration Rights Agreement (the "Registration Rights
Agreement"), dated as of April 5, 2006, by and among Kimco Realty Corporation
and certain members of KIMCO Pergament LLC, hereby becomes a party to the
Registration Rights Agreement. The undersigned agrees that this signature page
may be attached to any counterpart copy of the Registration Rights Agreement.

                                        Holder: Paul R. Slayton

                                        /s/ Paul R. Slayton
                                        ----------------------------------------
                                        Address: P.O. Box 1084
                                                 Bridgehampton, NY 11932

                                        Telephone: 516-314-5457
                                        Telecopy: 212-748-7951
                                        Federal Tax ID#: ###-##-####

                                        Address for Notice:

                                        P.O. Box 1084
                                        Bridgehampton, NY 11932

                                        The Holder Represents that, as of this
                                        day and without regard to Units owned by
                                        the Holder, it has beneficial ownership
                                        of (check one):

                                         X   No shares of Common Stock of Kimco
                                        ---  Realty Corporation

                                             The following number of shares of
                                        ---  Common Stock of Kimco Realty
                                             Corporation:

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

<PAGE>

                                    EXHIBIT A

                                     HOLDERS

Paul Slayton

Murray Pergament 1999 Trust F/B/O the issue of Bruce Pergament

Robert Pergament

                                       16EX-10.4

 

 PORTIONS
OF THIS EXHIBIT DENOTED WITH THREE ASTERISKS [***] HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIALITY.

EXHIBIT 10.4

LICENSE AGREEMENT

FOR USE OF THE TEXACO GASIFICATION PROCESS,

TEXACO HYDROGEN GENERATION PROCESS,

AND TEXACO GASIFICATION POWER SYSTEMS 

     THIS AGREEMENT, effective as of the 30th day of May, 1997 (“Effective Date”), by and between
TEXACO DEVELOPMENT CORPORATION, a subsidiary of Texaco Inc., hereinafter referred to as “TEXACO
DEVELOPMENT,” and FARMLAND INDUSTRIES, INC., hereinafter referred to as “LICENSEE”,

RECITALS

     WHEREAS, TEXACO DEVELOPMENT and its parent corporation, Texaco Inc., have conducted research
and development work on the Texaco Gasification Process (“TGP”) and further applications or
variants thereof, including without limitation, the Texaco Hydrogen Generation Process (“THGP”)
and Texaco Gasification Power Systems (“TGPS”) (as more fully defined in Schedule I attached
hereto), and have developed and acquired technical data and information pertinent to, and have
been granted patents covering certain aspects of, the design, construction, operation and
maintenance of plants for the practice of the TGP, THGP and TGPS; and

     WHEREAS, TEXACO DEVELOPMENT is prepared to grant nonexclusive licenses to LICENSEE for the
use of such technical data and information and under certain patent rights relating to the design,
construction, operation and maintenance of the Plant described in Paragraph 3.1 below, for the
practice of the TGP and THGP and, in the event the Plant is subsequently modified, TGPS, including
certain patent rights of Texaco Inc.; and

     WHEREAS, LICENSEE now desires to have access to such technical data and information from
TEXACO DEVELOPMENT with the right to use the same, and a nonexclusive license under TEXACO
DEVELOPMENT’s Patent Rights (as defined in Schedule I attached hereto)

-1-

 

to commercially practice the THGP (which by design includes practice of the TGP) and, at LICENSEE’s
option, the TGPS at the Plant; and

     WHEREAS, in addition to the granting of licenses, a company Affiliated with TEXACO
DEVELOPMENT will operate and maintain the Plant and provide certain technical services under the
terms of a separate agreement which will be entered into between LICENSEE and such affiliated
company.

     NOW, THEREFORE, for and in consideration of the above premises and of the covenants
hereinafter set forth, the parties hereto mutually covenant and agree as follows:

1. DEFINITIONS

     1.1 The terms defined in Schedule I attached to and made a part of this License
Agreement shall have those meanings wherever used herein.

2. GRANTS

     2.1 TEXACO DEVELOPMENT hereby grants and agrees to grant to LICENSEE, subject to the terms
and conditions of this License Agreement, a nonexclusive license under TEXACO DEVELOPMENT’s Patent
Rights to practice the TGP, THGP and/or TGPS for the production of Synthesis Gas where such
Synthesis Gas will be used in the production of high purity hydrogen (in the case of THGP) and/or
electric power (in the case of TGPS), in and only in the Plant, together with the right to use and
sell the products thereby produced. The license so granted to LICENSEE shall be nontransferable,
except as provided in Section 9.

     2.2 TEXACO DEVELOPMENT hereby grants and agrees to grant to LICENSEE, subject to the terms
and conditions of this License Agreement, a nonexclusive license to use TEXACO DEVELOPMENT’s
Technical Information to practice the TGP, THGP and/or TGPS for the production of Synthesis Gas
where such Synthesis Gas will be used in the production of high purity hydrogen (in the case of
THGP) and/or electric power (in the case of TGPS), in and only in the

-2-

 

Plant, together with the right to use and sell the products thereby produced. After LICENSEE has
made the first royalty payment required hereunder, TEXACO DEVELOPMENT’s Technical Information shall
be made available in writing or otherwise to LICENSEE directly by TEXACO DEVELOPMENT or through
its nominee(s). The license so granted to LICENSEE shall be nontransferable except as provided in
Section 9. The license granted in this Paragraph 2.2 shall in no event be construed as granting
any license by implication, estoppel or otherwise under any patent rights or letters patent, such
rights being granted only under Paragraph 2.1 hereof.

     2.3 Notwithstanding the definitions afforded TGPS and THGP in Schedule I, if LICENSEE
produces electric power or high purity hydrogen from Synthesis Gas generated through the practice
of TGP, regardless of the technique or process employed to produce those products, for purposes of
Section 5 of this License Agreement, the parties hereto agree that such practice shall be regarded
as TGPS or THGP, whichever appropriate.

     2.4 For general illustrative purposes, Schedule III (attached to and made a part of this
License Agreement) includes a non-limiting, non-exhaustive list of
certain of the unexpired U. S.
Patents that are subject to the grant of Paragraph 2.1 hereof.

3. THE PLANT

     3.1 LICENSEE represents that it presently intends to build and place in commercial
operation in, or within the proximity of, Coffeyville, Kansas, a plant for the practice of the THGP
(which, by design, includes the practice of the TGP) within a reasonable time, but not later than
December 31, 2002 (the “Plant”). The Gasifier Feed to such Plant is expected to be a solid
carbonaceous substance derived from petroleum, including a carbonaceous solid (i.e., coal or
petroleum coke), along with refinery or chemical plant byproducts and water. It is expected that
the Plant shall have a configuration using direct quench in the Gasification section and shall have
a designed capacity of about Eighty-six Thousand (86,000) MSCF of Output per operating day from the
Gasification section. It is understood and agreed that LICENSEE shall be permitted to use other
carbonaceous substances as Gasifier Feed in the Plant in addition to, or in lieu of, coal or
petroleum coke; provided, however: (i) LICENSEE shall first advise TEXACO DEVELOPMENT in writing
that it is contemplating the use of

-3-

 

such other
feedstock; and (ii) TEXACO DEVELOPMENT will perform, or arrange to perform, the
necessary study to assess the feasibility of processing such other carbonaceous substance in the
Plant, and shall provide the engineering services, pursuant to the terms set forth in Paragraph
14.2 hereof.

     3.2 TEXACO DEVELOPMENT’s representatives alone or accompanied by TEXACO DEVELOPMENT’s
licensees or potential licensees shall have reasonable access to the Plant for the purpose of
promoting the TGP and further applications or variants thereof, including without limitation TGPS
and THGP, upon reasonable advance notice and during normal business hours. Such visits shall take
place at such times as reasonably agreed upon between the parties hereto so as not to unduly
interfere with the operations of the Plant or otherwise cause undue inconvenience for LICENSEE.

          3.2.1 All visitors to the Plant, including employees of TEXACO DEVELOPMENT and its Affiliates,
but excluding any personnel present as a result or in support of the Operations and Maintenance
Agreement, process Guarantee Agreement or Texaco’s equity interest in the Plant, shall be required
to sign the Release attached as Schedule IV to this License
Agreement, in their individual capacity.
The parties hereto contemplate that Farmland may determine that it is necessary or desirable from
time to time to revise such Release due to certain changes in the applicable laws which may occur.
Any such revision(s) shall require the written consent of TEXACO DEVELOPMENT, which consent shall
not be unreasonably withheld. In the event a proposed revision has not been agreed upon by TEXACO
DEVELOPMENT, then the visit shall take place in any event with the visitor being responsible to
sign the Release as it existed prior to any proposed revision(s).

          3.2.2 TEXACO DEVELOPMENT shall indemnify LICENSEE against any claims brought by any employee
of TEXACO DEVELOPMENT or its Affiliate for injury, death or damage which occurs during any Plant
visit and which is directly caused by the gross negligence or willful misconduct of such
employee(s), TEXACO DEVELOPMENT or its Affiliates. Any such indemnity shall be subject to the limit
on TEXACO DEVELOPMENT’s liability set forth in Paragraph 8.6 of this License Agreement.

-4-

 

          3.2.3 TEXACO DEVELOPMENT agrees to use its reasonable efforts to cause visitors to comply
with LICENSEE’s safety rules, provided that LICENSEE shall provide all visitors with safety
training and instruction regarding such rules at no cost to TEXACO
DEVELOPMENT or the visitors.
Furthermore, such training and instruction shall be reasonable, shall not exceed thirty (30)
minutes in duration, shall directly relate to the Plant, and shall be provided to all such
visitors within two (2) hours of their arrival at the Plant on the day of the scheduled visit.

          3.2.4 LICENSEE, on request of TEXACO DEVELOPMENT a reasonable time in advance, shall furnish
TEXACO DEVELOPMENT information and data relating to the operation of the Plant and samples of
Gasifier Feed and other materials.

     3.3 The visitation rights contemplated under Paragraph 3.2 shall remain in full force and
effect for a period of twenty (20) years from the Effective Date of this License Agreement. Within
a reasonable time prior to the expiration of said period, TEXACO DEVELOPMENT may request that the
visitation rights be extended for additional five (5) year
intervals. Any such extension(s) shall
become effective in the event the parties hereto mutually agree to such extensions. Furthermore,
Plant visits shall not be available to LICENSEE’s top five competitors in the nitrogen fertilizer
business without LICENSEE’s prior written approval. LICENSEE shall identify to TEXACO DEVELOPMENT
in writing, on an annual basis on or before the first day of March of each year, its top five
competitors in the nitrogen fertilizer business. In the event LICENSEE does not update the
aforesaid top five competitors in any particular year, the top five competitors last identified by
LICENSEE shall be used for purposes of this Paragraph.

4. ROYALTIES AND ACCOUNTING

     4.1 LICENSEE shall pay royalties and fees at rates and under terms set forth in
Schedule II attached to and made a part of this License Agreement.

     4.2 LICENSEE shall keep such accurate, complete and detailed records and
accounts of all TGP, THGP and TGPS operations conducted at the Plant by LICENSEE as may be
necessary to determine the royalties and fees payable by LICENSEE
hereunder. LICENSEE further

-5-

 

agrees that TEXACO DEVELOPMENT, through its representatives who are authorized by TEXACO
DEVELOPMENT in writing, may, during business hours and upon providing LICENSEE with reasonable
advance notice, make such examinations of LICENSEE’s TGP, THGP and TGPS operations and such
examinations and copies of such records and accounts as may be necessary to verify the royalties
and fees contemplated hereunder, as well as all other information LICENSEE is required to report
to TEXACO DEVELOPMENT under Section 4 of this License Agreement.

     4.3 LICENSEE shall render to TEXACO DEVELOPMENT annual statements in a form acceptable to
TEXACO DEVELOPMENT, on or before the first day of March of each year, with respect to all TGP,
THGP and TGPS operations conducted by LICENSEE during the preceding twelve (12) calendar months,
but reported as six (6) calendar month accounting periods ending on the last day of December and
the last day of June, respectively, and which statement shall contain the following information:

          4.3.1 The total Daily Average Output from the Gasification section of the Plant for all
operations conducted by LICENSEE during the accounting periods;

          4.3.2 The excess (in daily averages), if any, of the total Daily Average Output from the
Gasification section of the Plant reported under Subparagraph 4.3.1 above, over the total Daily
Average Output for all operations conducted by LICENSEE for which paid-up capacity has been
theretofore purchased by LICENSEE under this License Agreement;

          4.3.3 The total Output from the Gasification section of the Plant for all operations
conducted by LICENSEE during the accounting periods;

          4.3.4 The total Output from the Gasification section of the Plant that is
allocated for THGP operations and TGPS operations, respectively; and

          4.3.5 The total Gasifier Feed to the Gasification section of the Plant for all
operations conducted by LICENSEE during the accounting periods, including a report of the
relative amount of each component of the total feed, i.e., the amount of petroleum coke, coal, and the
by-

-6-

 

product
feeds contemplated in Paragraph l(b) of Schedule II. Further in connection with Paragraph
l(b) of Schedule II, LICENSEE shall report all payments it receives for processing the
feedstock(s) contemplated thereunder and all costs incurred for modification of the Plant for the
processing of such feedstock(s).

     4.4 The first accounting period shall commence when the Plant has produced synthesis gas for a
continuous forty-eight (48) hour period, and terminate at the end of the next December, and each
succeeding accounting period shall be the succeeding six (6) month period, except in the event of
the termination of this License Agreement prior to the end of such six (6) month accounting period,
in which event the accounting period shall be deemed to be the fractional part of such six (6)
month period which ends on the effective date of such termination except as specified otherwise in
Paragraph 7.3 below.

5. CROSS-LICENSING

     5.1 LICENSEE hereby grants and agrees to grant to TEXACO DEVELOPMENT, without obligation to
account to LICENSEE therefor or for grants made thereunder, an irrevocable, paid-up license and the
irrevocable right and power to grant, either directly or through others, to Texaco Inc. and its
affiliates and to the TGP licensees of TEXACO DEVELOPMENT, nonexclusive licenses under LICENSEE’s
Patent Rights relating to the TGP and for the use of LICENSEE’s Technical Information relating to
the TGP in any and all countries throughout the world together with the right to use and sell any
products produced thereby. LICENSEE agrees to make LICENSEE’s Technical Information relating to the
TGP available to TEXACO DEVELOPMENT for use under the aforesaid licenses.

     5.2 LICENSEE hereby grants and agrees to grant to TEXACO DEVELOPMENT, without obligation to
account to LICENSEE therefor or for grants made thereunder, an irrevocable, paid-up license to use
and the irrevocable right and power to grant, either directly or
through others, to Texaco Inc. and
its affiliates and to the THGP licensees of TEXACO DEVELOPMENT, nonexclusive licenses to use
LICENSEE’s Patent Rights relating to the THGP and for the use of LICENSEE’s Technical Information
relating to the THGP in any and all countries throughout the

-7-

 

world,
together with the right to use and sell any products produced thereby. LICENSEE agrees to
make LICENSEE’s Technical Information relating to the THGP available to TEXACO DEVELOPMENT
 for use
under the aforesaid licenses.

     5.3 LICENSEE hereby grants and agrees to grant to TEXACO DEVELOPMENT, without obligation to
account to LICENSEE therefor or for grants made thereunder, an irrevocable, paid-up license and
the irrevocable right and power to grant, either directly or through others, to Texaco Inc. and
its affiliates and to the TGPS licensees of TEXACO DEVELOPMENT, nonexclusive licenses under
LICENSEE’s Patent Rights relating to the TGPS and for the use of LICENSEE’s Technical Information
relating to the TGPS in any and all countries throughout the world together with the right to use
and sell any products produced thereby. LICENSEE agrees to make LICENSEE’s Technical Information
relating to the TGPS available to TEXACO DEVELOPMENT for use under the aforesaid licenses.

     5.4 TEXACO DEVELOPMENT and LICENSEE understand and agree that Paragraphs 5.1, 5.2 and 5.3
each include separate and distinct grants of LICENSEE’s Patent Rights and LICENSEE’s Technical
Information and TEXACO DEVELOPMENT and LICENSEE further agree that, for all purposes, these grants
should be treated as separate grants as if they were made herein in separate paragraphs or
subparagraphs.

     5.5 TEXACO DEVELOPMENT and LICENSEE understand and agree that for purposes of this Section 5,
the rights of extension granted to TEXACO DEVELOPMENT in Paragraphs 5.1, 5.2 and 5.3 permit TEXACO
DEVELOPMENT to grant LICENSEE’s Patent Rights and Technical Information to TEXACO DEVELOPMENT’s
licensees of the TGP and all further applications or variants thereof, including without
limitation TGPS and THGP.

6. CONFIDENTIAL INFORMATION

     6.1 Unless previously authorized by TEXACO DEVELOPMENT in writing, LICENSEE shall use TEXACO
DEVELOPMENT’s Technical Information only in connection with licensed operations in the Plant and
shall not make any disclosure of, and shall use its best efforts to

-8-

 

prevent the duplication or disclosure of such information which is not public information or
otherwise generally available to the public, and shall not export or re-export such information or
data or the product thereof. LICENSEE shall be permitted to disclose such information if and only
if it is legally compelled to make such disclosure; provided, however, that prior to making any
disclosure LICENSEE shall first notify TEXACO DEVELOPMENT in writing of the need to make the
disclosure and the parties hereto shall cooperate in connection with obtaining a protective order
or other mechanism which will preserve the proprietary value of such information. The parties do
not intend this Section 6 to include confidential business information. The terms and conditions
under which the parties hereto will exchange business information that is confidential is covered
in a separate business information confidentiality agreement dated May 27, 1997.

     6.2 With respect to the obligations incurred under this Section 6, information disclosed
through an unauthorized disclosure by a third party under a confidentiality obligation with TEXACO
DEVELOPMENT with respect to such information shall not in itself be deemed to be public
information or otherwise generally available to the public.

     6.3 The prohibition on disclosure set forth in Paragraph 6.1 above prohibits LICENSEE from
disclosing TEXACO DEVELOPMENT’s Technical Information to any third party, including without
limitation LICENSEE’s contractors and LICENSEE’s affiliates. Such third parties, including
contractors and affiliates, shall only be permitted to have access to TEXACO DEVELOPMENT’s
Technical Information directly from TEXACO DEVELOPMENT and after having entered into a written
secrecy agreement with TEXACO DEVELOPMENT.

     6.4 If LICENSEE enters into a contract with any third party to perform work related to the
design, construction, operation and maintenance of the Plant who shall receive or have access to
TEXACO DEVELOPMENT’s Technical Information, any such third party may not perform any of the
aforementioned work until LICENSEE first receives TEXACO
DEVELOPMENT’s written approval, which
approval shall not be unreasonably withheld. Furthermore, where such third party will receive
LICENSEE’s Technical Information or provide back to LICENSEE technical data and operating
information which may become LICENSEE’s Technical Information, LICENSEE shall use commercially
reasonable efforts to obtain a written agreement from such third party allowing

-9-

 

LICENSEE to disclose such information to others without obligation to account to such third party
therefor. The obligation set forth in this Paragraph 6.4 does not apply to any information that
must be kept confidential pursuant to the terms of a prior written confidentiality obligation that
is in effect before entering into such a contract with LICENSEE, provided TEXACO DEVELOPMENT is
notified by LICENSEE of such preexisting confidentiality obligation.

7. TERM AND TERMINATION

     7.1 Unless previously terminated in accordance with Paragraph 7.2 or canceled
and, hence, terminated under Paragraph l (c) of Schedule II, this License Agreement shall
terminate and expire upon the cessation of the commercial operation of the Plant. The parties hereto
do not intend to allow this License Agreement to terminate due to a suspension (of finite duration)
of commercial operations. In this regard, if the LICENSEE decides to suspend commercial
operation of the Plant, LICENSEE shall so notify TEXACO DEVELOPMENT in writing. The parties hereto will
then engage in good faith discussions to reach agreement on what constitutes a reasonable
period for suspension of commercial operations to avoid termination of this License Agreement, In no
event shall the period of suspension exceed three (3) years.

     7.2 If, however, LICENSEE shall fail to make any of the payments set forth in this
License Agreement, or any part thereof when due, or shall fail to achieve Plant Startup by
December 31, 2002, or shall fail to perform any other of its promises or obligations under this License
Agreement, TEXACO DEVELOPMENT may terminate this License Agreement and revoke all licenses, rights,
privileges, and authorizations of this License Agreement by giving forty-five (45) days
written notice to LICENSEE to that effect, at the end of which time this License Agreement shall terminate
unless during that time LICENSEE shall have fully remedied such
default to TEXACO DEVELOPMENT’s
satisfaction. In the event that LICENSEE contends that an event of default cannot possibly be
cured in the forty-five (45) days, LICENSEE shall so advise TEXACO DEVELOPMENT in writing stating the
reasons that support its position. If TEXACO DEVELOPMENT, in its sole discretion, indicates
in writing that it agrees with LICENSEE’s position, TEXACO DEVELOPMENT agrees that this
License Agreement shall not terminate until one additional forty-five (45) day period has
elapsed, provided that LICENSEE commences the cure of such default within the initial forty-five (45)
day

-10-

 

period and
continues to work diligently, in TEXACO DEVELOPMENT’s sole opinion, to cure such
default. Furthermore, TEXACO DEVELOPMENT agrees that in the event (i) LICENSEE violates any of the
confidentiality provisions of Paragraph 6.1, or (ii) LICENSEE violates any of the other provisions
of this License Agreement, TEXACO DEVELOPMENT may not initiate the termination proceedings
contemplated in this Paragraph 7.2 except as may be permitted by the provisions of Paragraph
13.3.1. Notwithstanding anything contained herein, in the event LICENSEE breaches this License
Agreement under Section 6 (Confidential Information) as a result of LICENSEE’s gross negligence or
willful misconduct as determined through arbitration, TEXACO DEVELOPMENT may terminate this License
Agreement and revoke all licenses, rights, privileges and authorizations of this License Agreement.
Furthermore, in the event TEXACO DEVELOPMENT has actually received the payments set forth in
Paragraphs 1(a)(i), (ii) and (iii) of Schedule II, as well as any other amounts that have become
due and payable by LICENSEE hereunder, prior to December 31, 2002, TEXACO DEVELOPMENT agrees that
it will not terminate this License Agreement for failure to achieve Plant Startup prior to December
31, 2002.

     7.3 After the effective date of any termination or expiration of this License Agreement,
neither LICENSEE nor TEXACO DEVELOPMENT shall have any further rights under this License Agreement
except that: (i) such termination or expiration shall not relieve LICENSEE of any obligation
(e.g., visitation) or liability accrued hereunder prior to the effective date of such termination
or expiration; (ii) such termination or expiration shall not affect in any way the then existing
licenses, rights and powers granted or agreed to be granted by, or obligations of LICENSEE under
Section 5 (Cross Licensing); (iii) such termination or expiration shall not relieve LICENSEE of
its obligations under Section 6 (Confidential Information); (iv) such termination or expiration
shall not relieve LICENSEE of its obligations incurred under
Paragraph 1(b) of Schedule II; and
(v) other than for termination due to the default of LICENSEE pursuant to Paragraph 7.2 above,
LICENSEE shall have the right to continue operations licensed hereunder only up to the paid-up
capacity acquired prior to termination and LICENSEE shall continue to render annual statements as
required by the accounting provisions of Section 4 (Royalties and Accounting).

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8. LIABILITY — WARRANTIES

     8.1 LICENSEE and TEXACO DEVELOPMENT understand and agree that, as
between LICENSEE and TEXACO DEVELOPMENT, the construction, operation and maintenance
of the Plant is the sole responsibility of LICENSEE. Accordingly, TEXACO DEVELOPMENT shall
have no liability to LICENSEE or to third parties for any injuries to person or property
arising in connection with the construction, operation or maintenance of the Plant and LICENSEE shall
indemnify TEXACO DEVELOPMENT for any liability, claims, costs and
expenses associated therewith.
Except as may be specified in the guarantee agreement described in Paragraph
14.1, TEXACO DEVELOPMENT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OTHER
THAN AS PROVIDED IN PARAGRAPHS 8.2, 8.3 (PATENT INDEMNITY) AND 8.4 BELOW,
AND SPECIFICALLY EXCLUDES ANY WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE OR USE WITH RESPECT TO ANY INFORMATION OR DATA FURNISHED HEREUNDER OR THE PERFORMANCE OF THE PLANT OR
ANY COMPONENT THEREOF. In no event shall TEXACO DEVELOPMENT be liable for loss of
prospective profits or special or consequential losses, damages, and/or related expenses,
whether or not TEXACO DEVELOPMENT has been advised of the possibility of such damages.

     8.2 TEXACO DEVELOPMENT and LICENSEE each represents and warrants
that it has the right, power and authority to grant the licenses and rights of extension and
make the agreements set forth in this License Agreement.

     8.3 TEXACO DEVELOPMENT will, at its sole cost and expense, upon LICENSEE’S written demand,
defend any suit or action brought against LICENSEE by a third party, alleging infringement of
process claims, as further qualified hereinbelow, of an unexpired United States patent, which is
in full force and effect as of the Effective Date of this License Agreement and which results from
the use of TEXACO DEVELOPMENT’S Technical Information in accordance with this License Agreement in
the operation of the Plant with respect to TGP or THGP only, and to the extent such operation is
based on process designs for TGP or THGP specifically approved by
TEXACO DEVELOPMENT in writing; provided, however, such indemnity shall not apply if such infringement is the result of
combination of TEXACO

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DEVELOPMENT Technical Information with technical information supplied by a party other than TEXACO
DEVELOPMENT. LICENSEE will use its best efforts to obtain a right of defense and indemnity against
any claim for patent infringement, from each and every supplier of materials (such as, but not
limited to, catalysts, solvents, etc.) which are to be used in the equipment used in the processes
licensed hereunder. The indemnification by TEXACO DEVELOPMENT hereunder shall not apply to the
extent LICENSEE is indemnified by any supplier under an indemnification obtained by LICENSEE
pursuant to LICENSEE’s efforts under the immediately preceding
sentence. This paragraph does not
apply to equipment supplied by third parties as discussed in Paragraph 8.3.3 of this License
Agreement.

          8.3.1 TEXACO DEVELOPMENT will, upon LICENSEE’s written demand, indemnify LICENSEE and hold
LICENSEE harmless from and against all expenses of defending such suits and actions and from all
payments which by final judgments therein may be assessed against and are actually paid by
LICENSEE on account of such suit or action; provided, however, that if LICENSEE elects to
participate in the defense of any of such suits or actions, all costs
associated with LICENSEE’s
participation shall be borne by LICENSEE. TEXACO DEVELOPMENT shall not be liable to LICENSEE for
any indirect, consequential or other damages, costs or expenses under this Section 8.3.

          8.3.2 The obligations of TEXACO DEVELOPMENT under this Section 8.3 are subject to the
requirement that LICENSEE shall give TEXACO DEVELOPMENT prompt written notice for any such suit or
threat of suit. Neither party shall settle nor compromise any such suit without the other party’s
prior written consent if by such settlement, the other party is obligated to make any substantial
modification to THGP, to make any monetary payment, to part with any property or any interest
therein, to assume any obligation, to be subject to any injunction, or to grant any license or
other right under the settling party’s patent rights, with the understanding that any such consent
may not be unreasonably withheld.

          8.3.3 TEXACO DEVELOPMENT shall not have any obligation hereunder for any alleged or actual
infringement that is not expressly described in this Section 8.3. If the alleged or actual
infringement meets the express requirements of this Section 8.3, TEXACO

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DEVELOPMENT shall not have any obligation hereunder if such infringement is caused by the use of
any design, equipment (to the extent the alleged infringing process is practiced within the
equipment) or processes supplied by a party other than TEXACO DEVELOPMENT, or which TEXACO
DEVELOPMENT did not approve for use in writing prior to any alleged infringing use.

          8.3.4 TEXACO DEVELOPMENT’s obligation under the above provisions in this Section 8.3 shall be
further subject to Section 8.6 hereof and shall not exceed in
total, an amount equal to [***] of the royalties and fees due and actually received by TEXACO DEVELOPMENT
with respect to the Plant pursuant to this License Agreement or [***], whichever is less.

     8.4 TEXACO DEVELOPMENT represents, warrants and agrees as follows:

          8.4.1 TEXACO DEVELOPMENT is a corporation duly organized and validly existing under the laws
of the State of Delaware, TEXACO DEVELOPMENT has the complete and unrestricted power and right to
enter into this License Agreement and there is no fact of which TEXACO DEVELOPMENT has actual
knowledge as of the Effective Date that would prevent it from performing its obligations hereunder;
this License Agreement has been duly authorized, executed and delivered by TEXACO DEVELOPMENT and
constitutes a legal, valid and binding obligation of TEXACO DEVELOPMENT enforceable against TEXACO
DEVELOPMENT in accordance with its terms, neither the execution and delivery by TEXACO DEVELOPMENT
of this Agreement nor the consummation of the transaction contemplated by this Agreement, as far as
TEXACO DEVELOPMENT is actually aware of as of the Effective Date, violates any law or any court or
governmental agency order binding on TEXACO DEVELOPMENT or requires the consent or approval of, or
the giving of notice by any person to or the taking of any other action in respect of any
governmental agency or authority or any person not a party to this
License Agreement.

          8.4.2 There is no fact of which TEXACO DEVELOPMENT has actual knowledge as of the Effective
Date that would prevent it from stating that, except to the extent
owned by TEXACO DEVELOPMENT’s
licensees and/or third party contractors, TEXACO

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DEVELOPMENT owns the entire right, title and interest in and to TEXACO DEVELOPMENT’s Technical
Information. TEXACO DEVELOPMENT or Texaco Inc. owns and has the right to license each of the
patents listed in Schedule III and each of such patents is in full force and effect.

          8.4.3 TEXACO DEVELOPMENT has no knowledge as of the Effective
Date of any constraints, restrictions, or other impediments of any nature or kind which would
prevent the ability of LICENSEE to practice the TGP or THGP.

          8.4.4 TEXACO DEVELOPMENT’s Technical Information, that was or will
be supplied under a separate Process Information Package Letter Agreement dated March 6, 1997,
was prepared and delivered in accordance with accepted engineering practices or TEXACO
DEVELOPMENT’s engineering practices, whichever standard is
higher.

          8.4.5 Certain Patent Rights licensed to LICENSEE under Paragraph 2.1 of
this License Agreement are owned by Texaco Inc. TEXACO DEVELOPMENT has the full right and
authority to grant LICENSEE the license set forth in
Paragraph 2.1 under such Patent Rights.
Analogously, TEXACO DEVELOPMENT has the full right and authority to grant LICENSEE the
license set forth in Paragraph 2.2 under all of TEXACO DEVELOPMENT’s Technical Information
that is in fact owned by TEXACO DEVELOPMENT or Texaco Inc., as well as TEXACO
DEVELOPMENT’s licensees and/or third party contractors.

          8.4.6 TEXACO DEVELOPMENT has used its reasonable efforts to assure
that it has delivered or shall deliver to LICENSEE all of TEXACO DEVELOPMENT’s Technical
Information that is necessary to operate the Plant.

     8.5 LICENSEE represents and warrants that LICENSEE is a corporation duly organized and
validly existing under the laws of the State of Kansas; LICENSEE has the complete and unrestricted
power and right to enter into this License Agreement and to perform its obligations hereunder;
this License Agreement has been duly authorized, executed and delivered by LICENSEE

-15-

 

and constitutes a legal, valid and binding obligation of LICENSEE enforceable against LICENSEE in
accordance with its terms, neither the execution and delivery by LICENSEE of this License
Agreement nor the consummation of the transactions contemplated by this License Agreement by
LICENSEE violates any law or any court or governmental agency order binding on LICENSEE or
requires the consent or approval of, or the giving of notice by any person to or the taking of any
other action in respect of any governmental agency or authority or any person not a party to this
License Agreement.

     8.6 Subject to Paragraph 8.3.3, the total cumulative liability of TEXACO DEVELOPMENT under
this License Agreement and its liability under any separate performance guarantee agreement shall
not exceed [***] of the total royalties and fees due and actually received by
TEXACO DEVELOPMENT with respect to the Plant under this License Agreement and which are directly
attributable to this License Agreement or [***], whichever is less.
Accordingly, any fees received under the provisions of a separate agreement do not pertain to this
Paragraph 8.6. This paragraph 8.6 is intended to address TEXACO
DEVELOPMENT’s limit of liability
and shall not be construed as a liquidated damages provision.

9. PARTIES BOUND

     9.1 This License Agreement shall benefit and be binding upon the parties hereto
and their respective successors and assigns; provided, however, that LICENSEE shall not assign
any of the rights and privileges granted or be relieved of its obligations hereunder without the
prior written consent of TEXACO DEVELOPMENT, which consent shall not be unreasonably withheld.

     9.2 In no event shall TEXACO DEVELOPMENT be expected to give its consent
to assignment of this License Agreement to an entity that (a) TEXACO DEVELOPMENT or Texaco
Inc. is precluded from doing business with under Texaco Inc.’s written corporate policy in
effect at the time LICENSEE requests TEXACO DEVELOPMENT’s consent for assignment, it being understood
that the mere fact that the prospective assignee is in the fertilizer business shall not
constitute a sufficient basis for TEXACO DEVELOPMENT to withhold its
consent under this clause 9.2(a); (b)
TEXACO DEVELOPMENT or Texaco Inc. is precluded from doing business with, by reason or law

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or
governmental regulations; or (c) is in competition with TEXACO DEVELOPMENT or Texaco Inc.
relative to gasification, hydrogen production and/or power generation.

     9.3 Subject to Paragraph 9.4 hereof, TEXACO DEVELOPMENT will consent to an assignment of this
License Agreement to an Affiliate of LICENSEE; provided, however, that LICENSEE remains liable
hereunder to the extent the assignee fails to perform any obligations
hereunder.

     9.4 No assignment of this License Agreement shall be effective unless and until the
designated assignee accepts all of the terms and obligations of this License Agreement and
satisfies all conditions set forth in Paragraph 9.2 hereof.

10. EXPORT CONTROL REGULATIONS

     10.1 The obligation of TEXACO DEVELOPMENT to provide Technical
Information as well as the subsequent use, sale or any disposition of the products directly
produced by the TGP, THGP and/or TGPS, are subject to U.S. export control laws and regulations and
LICENSEE shall comply therewith in regard to any information or data
furnished by TEXACO
DEVELOPMENT and with regard to such use, sale or disposition.

11. ADDRESSES OF PARTIES

     11.1 The addresses and telefax numbers of the parties hereto for all purposes specified in
this License Agreement including notices and payments shall be as follows:

TEXACO DEVELOPMENT:

TEXACO DEVELOPMENT CORPORATION

2000 Westchester Avenue

White Plains, New York 10650

USA

	 	 	 	 	 
	 

	 	Attention:
Telefax:
	 	Vice President

914-253-7744

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LICENSEE:

FARMLAND
INDUSTRIES, INC.

Department 62

3315 North Oak Trafficway

Kansas City, Missouri 64116

	 	 	 	 	 
	 

	 	Attention:

Telefax:
	 	General Counsel

816-459-5902

Either party hereto shall have the right to change its address or telefax number by prior
notice in writing directed to the other party.

12. PUBLICITY

     12.1 TEXACO DEVELOPMENT and LICENSEE shall each be permitted to issue
press releases or otherwise publicize the fact that the parties have entered into this License
Agreement and may describe the general nature of this License Agreement in any publication, written or
otherwise, provided, however, that TEXACO DEVELOPMENT and LICENSEE shall first mutually agree on
the content of the subject matter contained in any such publication. TEXACO DEVELOPMENT and
LICENSEE shall also mutually agree upon the content of releases of information available for
public review or inspection, including, without limitation, information related to safety related
regulatory reviews and environmental permit applications. Notwithstanding the foregoing provisions of
this Paragraph 12.1, any party hereto may disclose information contemplated under this Paragraph
12.1 where such disclosure is required by law or regulation, provided that the disclosing party
first gives the other party an opportunity to comment on such disclosures. In no event shall anything
contained in this Section 12 be construed to permit disclosure
of TEXACO DEVELOPMENT’s confidential
information.

     12.2 Subject to the provisions of Paragraph 12.1 above, if this License Agreement
terminates or is canceled by LICENSEE, or if LICENSEE decides not to build the Plant and place
it into commercial operation or to delay the construction or commercialization of the Plant, any
public

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statement to that effect, whether written or otherwise, shall be mutually agreed to by TEXACO
DEVELOPMENT and LICENSEE.

     12.3 Each party hereto shall have the right to delay any such publication anticipated in
Paragraphs 12.1 and 12.2 above for a reasonable period if it would have an adverse impact on its
own commercial activities or relationships.

13. DISPUTE RESOLUTION AND ARBITRATION

     13.1 TEXACO DEVELOPMENT and LICENSEE will attempt in good faith to resolve any controversy or
claim arising out of or relating to this License Agreement promptly by negotiations between senior
executives or officers of the parties hereto who have authority to settle the controversy,
including, but not limited to, any controversy or claim arising out of or relating to Section 7 of
this License Agreement.

     13.2 The disputing party hereto shall give the other party written notice of the dispute.
Within twenty (20) days after receipt of said notice, the receiving party shall submit to the
other party a written response. The notice and response shall include (i) a statement of each
party’s position and a summary of the evidence and arguments supporting its position; and (ii) the
name and title of the representative who will represent that party. The representatives shall meet
at a mutually acceptable time and place within thirty (30) days of the date of the disputing
party’s notice and thereafter as often as such representatives reasonably deem necessary to
exchange relevant information and to attempt to resolve the dispute.

     13.3 If the matter has not been resolved pursuant to Paragraphs 13.1 and 13.2 within sixty
(60) days of the disputing party’s notice, or as the parties may otherwise agree in writing, or if
any party hereto will not participate in such procedure, the controversy shall be settled by
arbitration in accordance with American Arbitration Association rules and policies pursuant to
which three arbitrators (the “Arbitrators”) shall be appointed, one by each party hereto and the
third by the first two appointed Arbitrators. Judgment upon the award rendered by the Arbitrators
may be entered by any court having jurisdiction thereof, or in a U.S. District Court, or in the
courts of the State of

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New York or the State of Missouri. The place of arbitration shall be the United States of America.
The arbitration shall be conducted in the English language. Each party shall bear its own costs
and expenses associated with any arbitration.

     13.3.1 In the event the controversy is related to a violation by LICENSEE of any of the
confidentiality provisions of Paragraph 6.1, or any of the other provisions of this License
Agreement, and TEXACO DEVELOPMENT is seeking termination of this License Agreement as part or all
of the remedy for any such violation, the Arbitrators first shall determine whether LICENSEE has
violated the applicable provision of this License Agreement, and, if so, the Arbitrators shall
determine if the remedy sought by TEXACO DEVELOPMENT is the appropriate remedy by considering,
among other things, the following:

	a)	 	the nature and gravity of such violation;
	 
	b)	 	the nature, gravity and similarity of any previous violations by LICENSEE;
	 
	c)	 	the steps and/or procedures LICENSEE has implemented or plans
to implement to prevent any future violations of the applicable provision;
	 
	d)	 	the impact of the remedy on each party; and

	 
	e)	 	the harm to TEXACO DEVELOPMENT caused by the violation.

Among other possible remedies, the Arbitrators shall have the authority to award TEXACO DEVELOPMENT
double its actual damages in appropriate circumstances. In the event that the Arbitrators grant
TEXACO DEVELOPMENT the right to terminate this License Agreement as a fair and appropriate remedy,
then the Arbitrators shall grant to TEXACO DEVELOPMENT such right pursuant to a written opinion
setting forth their reasons in support of such remedy. In that event, TEXACO DEVELOPMENT shall have
the right, but not the obligation, to terminate this License Agreement and revoke all licenses,
rights, privileges and authorizations of this License Agreement. The foregoing provisions of this
Paragraph shall in no way be deemed to limit, restrict or otherwise modify any rights of TEXACO
DEVELOPMENT under Paragraph 13.5.

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     13.4 Neither TEXACO DEVELOPMENT, LICENSEE, any witness nor the
Arbitrators may disclose the contents of any arbitration hereunder without the written consent
of both the parties, unless and then only to the extent required to enforce the award, or as may be
required by law, or as are normal and necessary for financial and tax
reports and audits.

     13.5 If TEXACO DEVELOPMENT believes that LICENSEE is using TEXACO
DEVELOPMENT’s Technical Information or any other data, trade secrets, technical information,
know-how, or other proprietary information accessed hereunder by LICENSEE, unlawfully or is
treating the same in a manner which could compromise its proprietary value, or if TEXACO
DEVELOPMENT believes LICENSEE is not complying with Section 9 (Parties Bound) or Section 10
(Export Control Regulations), then TEXACO DEVELOPMENT shall be permitted to immediately
submit the matter to arbitration under Paragraph 13.3. In such case, the parties hereto
agree that the Arbitrators shall have full authority to immediately enjoin any further activity of LICENSEE
upon a finding by the Arbitrators that LICENSEE is engaging in activity referred to in the
immediately preceding sentence, and LICENSEE agrees that it will be fully bound by any injunction or
restraining order issued by the Arbitrators respecting such activities. Such injunction or restraining
orders shall become effective immediately and shall not have to be entered by any court to become effective
and shall not preclude any award of monetary damages. Alternatively, if TEXACO DEVELOPMENT
decides that a proper injunction could not be issued expeditiously enough through arbitration,
the parties hereto agree that TEXACO DEVELOPMENT may go directly to the courts specified in
Paragraph 13.3 to seek injunctive relief.

     13.6 The parties hereto agree and agree to use their best efforts to cause their
respective Affiliates to seek to adopt Paragraph 13 of this Agreement in various additional
agreements that are entered into with third parties and that relate to the subject matter of
this Agreement.

     13.7 This Section 13 shall survive the termination or expiration of this License Agreement and
remain in force so long as there remain outstanding rights or obligations of either party subject
to arbitration.

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14. ADDITIONAL AGREEMENTS

     14.1 In addition to this License Agreement, TEXACO DEVELOPMENT and
LICENSEE have entered into a separate Process Information Package Letter Agreement dated March
6, 1997 for engineering services relating to the design basis and process design specification
of the Plant. TEXACO DEVELOPMENT and LICENSEE shall enter into a mutually acceptable separate
Guarantee Agreement which will cover certain performance guarantees of the process licensed
hereunder. TEXACO DEVELOPMENT, or an Affiliate, and LICENSEE shall enter into the O & M
Agreement with respect to the Plant.

     14.2 In the event LICENSEE considers modification of the Plant for the practice of
the TGPS or if LICENSEE considers processing a feedstock other than, or in addition to, coal
and/or
petroleum coke or if LICENSEE considers making a Fundamental Modification to the Plant, then
LICENSEE shall notify TEXACO DEVELOPMENT in writing and TEXACO DEVELOPMENT
shall prepare, or arrange to prepare, the process information package relating to the design
basis and
process design specification for any of the aforementioned modifications or any preliminary
studies
relating thereto. The process information package contemplated under
this Paragraph 14.2 or
any
preliminary studies shall be prepared under a separate agreement pursuant to a mutually
acceptable
scope of work and TEXACO DEVELOPMENT shall be compensated as follows:

     (i) for any preliminary studies and/or for the TGP portion of the process engineering
package, TEXACO DEVELOPMENT shall perform such services at the most favorable rate it has
performed similar services within the two (2) calendar years prior to the effective date of the
preliminary study or process engineering package letter agreement in question, whichever
appropriate; and

     (ii) for the THGP and/or TGPS portion of the process engineering package, TEXACO DEVELOPMENT
shall perform such services for a fee that is mutually acceptable to LICENSEE and TEXACO
DEVELOPMENT, which fee shall be determined through good faith negotiations between LICENSEE and
TEXACO DEVELOPMENT. In the event the parties cannot reach mutual agreement, LICENSEE shall be free
to have such services performed by a third party(ies)

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provided such third party(ies) are acceptable to TEXACO DEVELOPMENT in writing. TEXACO
DEVELOPMENT’s acceptance shall not be unreasonably withheld.

[***]

16. SEVERABILITY

     16.1 If any part, term, or provision of this License Agreement shall be found illegal
or in conflict with any valid controlling law, the validity of the remaining provisions shall not
be affected thereby.

17. LAW GOVERNING

     17.1 THIS LICENSE AGREEMENT SHALL BE CONSTRUED AND THE LEGAL RELATIONS BETWEEN THE PARTIES
HERETO SHALL BE DETERMINED IN ACCORDANCE WITH THE SUBSTANTIVE AND PROCEDURAL LAWS OF THE STATE
OF NEW YORK, WITHOUT RECOURSE TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

-23-

 

     IN WITNESS WHEREOF, the parties hereto have respectively caused this instrument to be
duly executed on the dates hereinafter indicated.

	 	 	 	 	 	 	 
	 	 	TEXACO DEVELOPMENT CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John M. Brady	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 

	 	Date:
	 	August 26, 1977	 	 
	 
	 	 	 	 	 	 
	 	 	FARMLAND INDUSTRIES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert W. Honse	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President and	 	 
	 

	 	 	 	Chief Operating Officer	 	 
	 

	 	Date:
	 	August 5, 1997	 	 

-24-

 

SCHEDULE I 
 DEFINITIONS

     The following terms shall be deemed to have the following meanings as used in this License
Agreement of which this Schedule I is a part. The definitions set forth in this Schedule I shall
not be construed to define or limit the scope of any patent claim.

     (a) “Affiliates” of a company designated herein shall mean all corporations (i) of
which such designated company now or hereafter owns or controls, directly or indirectly, not
less than
fifty percent (50%) of the stock having the right to vote for directors thereof, or (ii) by
which such
designated company is owned or controlled, directly or indirectly by a parent corporation
owning or
controlling not less than fifty percent (50%) of the stock having the right to vote for
directors thereof,
or (iii) which are sister corporations owned or controlled directly or indirectly, by such
parent
corporation of such designated company, where such parent corporation owns or controls not
less than
fifty percent (50%) of the stock having the right to vote for directors thereof. For the
purpose of this
definition, the stock owned or controlled by a company shall be deemed to include all stock
owned or
controlled, directly or indirectly, by any other company of which it owns or controls not less than
fifty
percent (50%) of the stock having the right to vote for directors thereof. The foregoing shall
include without limitation any organization not in corporate form such as a partnership if the
designated company, directly or indirectly, has acquired a proprietary or equity interest, whether
as a partner or otherwise, in such organization for not less than fifty percent (50%).

     (b) “Daily Average Output” shall mean the aggregate Output during any
accounting period divided by the total number of days in such
accounting period.

     (c) “Exchange Period” shall mean the period of time beginning with the first
disclosure of TEXACO DEVELOPMENT’s Technical Information to LICENSEE pursuant to this
License Agreement and ending with the expiration or termination of this License Agreement.

-25-

 

     (d) “Financial Closure” shall mean the time at which funds necessary to proceed
with the construction of the Plant are advanced or are available to be advanced without any
condition
other than the request of the LICENSEE.

     (e) “Fundamental Modification” of the Plant shall have the meaning set forth in
Paragraph l(d) of Schedule II.

     (f) “Gasification” shall have the meaning defined in definitions of this Schedule I
for the Texaco Gasification Process.

     (g) “Gasifier Feed” shall mean the number of: short tons (each of 2,000 pounds)
of moisture-free carbonaceous solids; barrels (equivalent) (each of 64 million BTU or higher
heating
value) of gaseous carbonaceous substances, and barrels (each of 42 gallons of 231 cubic inches
measured at 60°F) of liquid carbonaceous substances, as appropriate, including byproduct
streams,
charged to the Gasification operations, measured and determined in accordance with methods,
procedures and correction factors mutually acceptable to TEXACO DEVELOPMENT and
LICENSEE.

     (h) “LICENSEE’s Technical Information” shall mean such, but only such, engineering, operating
and technical data and operating information, specifications, documents and know-how pertaining to
the design, construction, operation and maintenance of equipment for and the operation of the TGP,
THGP, and/or TGPS for the production of Synthesis Gas and its use in the production of high purity
hydrogen and/or electric power (and ancillary products), and which is in the possession of
LICENSEE prior to the end of the Exchange Period, and which LICENSEE is free to disclose to others
without obligation to account to a third party therefor.

     (i) “MSCF” shall mean One Thousand (1,000) Standard Cubic Feet at 60°F and at atmospheric
pressure (29.92 inches of mercury absolute), measured and determined in accordance with methods,
procedures and correction factors mutually acceptable to TEXACO DEVELOPMENT and LICENSEE.

-26-

 

     (j) “Operations and Maintenance Agreement” or “O & M Agreement” shall mean the agreement that
shall be entered into between LICENSEE and an affiliate of TEXACO DEVELOPMENT setting forth the
terms and conditions under which said affiliate will provide technical services and operate and
maintain the Plant on LICENSEE’s behalf.

     (k) [***]

     (I) “Output” shall mean the number of MSCF of hydrogen plus carbon monoxide produced as the
product of any Gasification operations conducted by LICENSEE.

     (m) “Patent Rights” shall mean all such, but only such, claims of Letters Patent of the
United States and all countries foreign thereto, and transferable rights thereunder, as cover
processes for, or apparatus designed for the practice of TGP, THGP,
and/or TGPS and are based upon
inventions made prior to the end of the Exchange Period and of which the designated party hereto
has ownership or the power to grant licenses thereunder to others without obligation to account to
a third party therefor.

     (n) “Plant” shall mean the THGP Plant described in Paragraph 3.1 of this License Agreement
which, at LICENSEE’s option, may be modified for practice of TGPS in accordance with the terms of
this License Agreement.

     (o) “Power Systems”, hereinafter “PS”, shall mean the system and parts thereof, including
process(es) and equipment for the generation of electric power, such as gas turbine(s), steam
turbine(s) and heat recovery steam generator(s) along with any supporting and peripheral
equipment.

-27-

 

     (p) “Purification” shall mean the separation of the effluent gas from any process step
following Gasification into high purity hydrogen for recovery and a reject gas mixture which may
or may not be returned to the partial oxidation and/or shift conversion reaction zone(s).

     (q) “Shift Conversion” shall mean the reaction of Synthesis Gas with steam in a reaction zone
to convert carbon monoxide into a raw gas mixture including carbon dioxide and hydrogen.

     (r) “Startup” of the Plant shall occur at the time the Plant has first produced Synthesis Gas
for a continuous forty-eight (48) hour period and the first to occur of (i) the Plant having
satisfied either of the Guaranteed Performance Standards under the Guarantee Agreement between the
parties, of even date herewith, in a Guarantee Test run using the No. 1 Gasification Unit, as such
terms are defined and used in said Guarantee Agreement, or (ii) one hundred eighty (180) days has
elapsed from such forty-eight (48) hour period, or if LICENSEE is then pursuing the passage of the
Guarantee Test for the No. 1 Gasification Unit, such later date upon which LICENSEE is no longer
continuing such pursuit. In the event Synthesis Gas is produced for at least a continuous
twenty-four (24) hour period, LICENSEE shall not be permitted to cease operating the Plant without
a reasonable basis until Startup has occurred.

     (s) “Synthesis Gas” shall mean carbon monoxide and hydrogen produced by Gasification.

     (t) “TEXACO
DEVELOPMENT’s Technical Information” shall mean such, but only such, engineering,
operating and technical data and operating information, specifications, documents and know-how
which, in TEXACO DEVELOPMENT’s sole opinion, is necessary for the design, construction, operation
and maintenance of a facility for the practice of the TGP, THGP, and/or TGPS for the production of
Synthesis Gas and its use in the production of high purity hydrogen and/or electric power (and
ancillary products) (whichever appropriate) and which is in the possession or control of TEXACO
DEVELOPMENT (including that obtained from its licensees) prior to the end of the Exchange Period,
and which TEXACO DEVELOPMENT is free to disclose to others without obligation to account to a third
party therefor.

-28-

 

     (u) “Texaco Gasification Power Systems” or “TGPS” shall mean the process licensed by
TEXACO DEVELOPMENT where the TGP is used with PS including any means or methods for integrating and
optimizing TGP and PS with any related removal and recovery of byproducts (such as sulfur) and air
separation systems, and any modifications or improvements to any or
all of the foregoing.

     (v) “Texaco Gasification Process” or “Gasification” or “TGP” shall mean the process licensed
by TEXACO DEVELOPMENT and improvements therein producing carbon monoxide and hydrogen by partial
oxidation of carbonaceous substances, including without limitation refining or chemical plant
byproducts streams, using oxygen or an oxygen-containing gas and including, but without limiting
the foregoing, any means or methods of (i) preparing such substances to the extent useful in such
partial oxidation, (ii) introducing and reacting materials in a partial oxidation reaction zone;
(iii) cooling the effluent of said reaction zone and recovering and conserving reaction heat; (iv)
removing from said effluent materials which may or may not be returned to said reaction zone; and
(v) treating by-product or waste discharges.

     (w) “Texaco Hydrogen Generation Process” or “THGP” shall mean the process licensed by TEXACO
DEVELOPMENT for producing high purity hydrogen which combines the TGP with one or more of the
following process steps: Shift Conversion, Purification as each is hereinafter defined, membrane
separation, methanation, and/or acid gas removal including any means or methods for integrating
said combination, and any modifications or improvements to any of the foregoing.

-29-

 

SCHEDULE II 
 ROYALTIES AND TERMS OF PAYMENT

     LICENSEE shall pay royalties and fees to TEXACO DEVELOPMENT or its nominee, in U.S. Dollars
in immediately available funds in New York, as set forth below:

     1. (a) Subject
to Paragraph 1(b) of this Schedule II, LICENSEE shall acquire paid-up
capacity for the Plant based upon the designed capacity of the Plant
set forth in Paragraph 3.1 of this License Agreement by making
the following payments, the cumulative total of which shall be [***]:

         (i) Within
forty-five (45) days of signing this License Agreement, LICENSEE
will pay to TEXACO DEVELOPMENT [***] of the total lump-sum royalty
for the designed Daily Average Output capacity of the Plant
calculated as per the royalty schedule in Paragraph 2 of this
Schedule II; and

        (ii) Within
forty-five (45) days of Financial Closure or by June 30, 1998,
whichever first occurs, LICENSEE will pay to TEXACO DEVELOPMENT [***]
of the total lump-sum royalty for the designed Daily Average Output
capacity of the Plant calculated as per the royalty schedule in
Paragraph 2 of this Schedule II; and

        (iii) Within
forty-five (45) days of Plant Start-up or December 31, 2002,
whichever first occurs, LICENSEE will pay to TEXACO DEVELOPMENT [***]
of the total lump-sum royalty for the designed Daily Average Output
capacity of the Plant calculated as per the royalty schedule in
Paragraph 2 of this Schedule II.

-30-

 

     (b) LICENSEE shall also pay TEXACO DEVELOPMENT, or its
nominee, in immediately available funds in New York, the lesser of [***] of LICENSEE’s fee it has received for processing each ton of any imported
refinery/chemical plant by-product feedstock or other imported by-product feeds processed in
the Plant
during each accounting period prescribed in Section 4.3 of this License Agreement; provided,
however,
that LICENSEE shall not be required to make such payments to TEXACO DEVELOPMENT until
the aggregate amount of fees received by LICENSEE for processing such feedstock(s) equals the
costs
incurred by LICENSEE, if any, to modify the Plant to enable the Plant to process such
feedstock(s).
The obligations of this Paragraph l(b) shall remain ongoing and shall survive any termination
or expiration of this License Agreement.

     (c) In the event LICENSEE is unable to achieve Financial Closure by June
30, 1998, LICENSEE shall be permitted to cancel this License Agreement by providing TEXACO
DEVELOPMENT with ten (10) days written cancellation notice, and upon the expiration of ten
(10) days from the time TEXACO DEVELOPMENT receives such notice, this License Agreement shall be
deemed canceled and terminated; provided, however, that LICENSEE shall use all reasonable
efforts to achieve Financial Closure and further provided that TEXACO DEVELOPMENT has actually
received the payment set forth in Paragraph l(a)(i) of this
Schedule II. Upon cancellation of
this License Agreement, LICENSEE shall be relieved of its obligation for the remaining royalty
payments set forth in Paragraphs l(a)(ii) and (iii) of this Schedule II, and this License Agreement
shall be terminated.

     (d) LICENSEE shall
be permitted to exceed the designed capacity of the
Plant by up to [***] ( i.e., [***] MSCF) of Daily Average Output without having to pay TEXACO DEVELOPMENT any royalties for
the [***] additional capacity provided that such additional capacity results from
improved operations and does not result from a Fundamental Modification (as defined hereinbelow) of the
Plant LICENSEE shall be required to make additional royalty payments in accordance with the royalty
schedule of Paragraph 2 of this Schedule II in the event the Daily Average Output exceeds
[***] MSCF. It is understood and agreed that a fundamental modification of the Plant shall mean (i) the
simultaneous operation of more than one gasifier, (ii) the addition, modification or replacement of

-31-

 

charge pump(s), feed injector(s), or
gasifier(s) that increase the designed capacity by [***] or more, (iii) an increase in the
capacity of the
air separation unit by [***] or more from the capacity of the air separation unit at the time of
Plant Start-up;
and/or (iv) if the TGPS is practiced at the Plant (“Fundamental Modification”) In
the event such
additional capacity results from a Fundamental Modification, LICENSEE shall be required to make
additional royalty payment in accordance with the royalty schedule in Paragraph 2 of this
Schedule
II. Furthermore, in the event LICENSEE does in fact produce more than Eighty-six Thousand (86,000) MSCF but less than
[***] MSCF of Daily Average
Output without a Fundamental Modification and then subsequently the Plant undergoes a Fundamental
Modification, LICENSEE shall pay TEXACO DEVELOPMENT for all additional capacity beyond the
designed capacity in accordance with the royalty schedule of Paragraph 2 of this
Schedule II.
After TEXACO DEVELOPMENT receives such payment, LICENSEE shall be entitled to further increase
the
Daily Average Output of the Plant by up to an additional [***] MSCF without any further cost to
LICENSEE. Any additional capacity beyond this [***] MSCF shall be subject to the royalty fees in
accordance with the royalty schedule of Paragraph 2 of Schedule II of this License
Agreement.

     
(e) [***]

     
(f) [***]

-32-

 

[***]

          2.      
Lump-sum (viz., paid-up) royalties shall be paid with respect to all
Gasification operations conducted by LICENSEE in accordance with the following
royalty schedule:

	 	(a)	 	For the first 10,000 MSCF of Daily Average Output or
any part thereof,
the sum of [***]; and
	 
	 	 	 	For the next 15,000 MSCF of Daily Average Output, i.e., over
10,000 and
up to and including 25,000 MSCF of Daily Average Output total, at the
rate of [***] per MSCF of Daily average Output; and
	 
	 	 	 	For the next 175,000 MSCF of Daily Average Output, i.e., over
25,000 and
up to and including 200,000 MSCF of Daily Average Output total, at the
rate of [***] per MSCF of Daily Average Output; and
	 
	 	 	 	For all over 200,000 MSCF of Daily Average Output at the rate of [***]
per MSCF of Daily Average Output, and
	 
	 	(b)	 	[***]

-33-

 

[***]

For
the next 114,000 MSCF of Daily Average Output, i.e., over
86,000 and up to and
including 200,000 MSCF of Daily Average output total, at the rate of [***] per
MSCF of Daily Average Output; and

For
all over 200,000 MSCF of Daily Average output at the rate of [***] per MSCF
of Daily Average Output;

all in
accordance with the payment provisions of this Schedule II.

          3.      At the time specified for the submission of accounting statements under Section
4.3 of this License Agreement, LICENSEE will also pay to TEXACO DEVELOPMENT or its
nominee, in U.S. Dollars in immediately available funds in New York, the lump-sum
royalties in accordance with the royalty rate schedule set forth in Paragraph 2 above
and modified as provided in Paragraph 4 of this Schedule II required to purchase paid-up
capacity for that part (if any) of the total Daily Average Output from all Gasification
operations conducted by LICENSEE during the accounting period covered by said statement
for which paid-up capacity shall not have been theretofore purchased by LICENSEE and,
also, the fees specified in Paragraph 2 and modified as provided in Paragraph 4 of this
Schedule II for all Gasification operations of LICENSEE during
said accounting period.

          4.       (a)       All payments made pursuant to Paragraphs 1 and 3, may, at
TEXACO DEVELOPMENT’s discretion, be modified by a factor in which the numerator is the
average “Producer Price Index for Industrial Commodities” as published by the Bureau of
Labor Statistics, U.S. Department of Labor (hereinafter called “BLS Index”) for the
twelve-month period ending the thirty- first day of October preceding the first day of
January of the year in which such payment becomes due

-34-

 

and the denominator is the average of said BLS Index for the twelve-month period
ending October 31,1996 (127.2). Such factor shall not apply to the payment set forth in Paragraph
l(a)(iii) of this Schedule II, provided such amount is actually received by TEXACO DEVELOPMENT
prior to December 31, 2000.

               (b)      If at any time during the term of the License Agreement publication of the BLS Index shall
cease, another appropriate index published in the United States by the U.S. Government, or other
organization generally recognized in the United States as
authoritative on changes of equivalent or substantially equivalent commodity costs in the United States
agreeable to both parties, shall be used.

          5.      If any payment hereunder, or part thereof, shall become due and remain unpaid for a period
in excess of ten (10) days, LICENSEE agrees to pay to TEXACO DEVELOPMENT, in addition to the amount
unpaid, interest on such amount at the rate of one percent (1%) per month for each month or
portion thereof for the period beginning when such payment becomes due and until payment of such
unpaid amount. Such interest shall be in addition to any other rights of TEXACO DEVELOPMENT arising
as a result of LICENSEE’s failure to make such payment or part
thereof within the time specified.

-35-

 

SCHEDULE IV

RELEASE

     The undersigned desires to have access to the gasification plant and related facilities (the
“Plant”) of Farmland Industries, Inc.
(“Farmland”) located near Coffeyville, Kansas. The
undersigned acknowledges that the undersigned’s access to the Plant premises is for the sole
purpose of participating in a guided tour of the Plant and in activities directly associated with
such tour.

     The undersigned acknowledges that:

     (a)      the Plant is an industrial facility that produces synthesis gas from carbonaceous
substances; and

     (b)     
the Plant is located adjacent to other industrial facilities (the “Other
Facilities”) including, without limitation, fertilizer production and storage facilities and
a petroleum refinery; and

     (c)      the operation of the Plant and the Other Facilities involves chemical and other
processes that are inherently dangerous; and

     (d)      the operation of the Plant and the Other Facilities involves toxic materials and
materials under extremely high pressure and/or at extremely high temperatures, all of which
being inherently dangerous; and

     (e)      being industrial facilities, the Plant and the Other Facilities, regardless of
whether they currently are operating, are inherently dangerous; and

     (f)      the undersigned’s physical presence at, near or on the premises of the Plant and/or
the Other Facilities INVOLVES THE RISK OF SIGNIFICANT PERSONAL INJURY AND/OR DEATH TO THE
UNDERSIGNED.

     The undersigned agrees that in consideration of the undersigned receiving the above-described
access to the Plant premises, THE UNDERSIGNED UNCONDITIONALLY ASSUMES ALL RISKS OF PERSONAL INJURY
AND/OR DEATH TO THE UNDERSIGNED that may occur in connection with the undersigned’s physical
presence at, near or on the premises of the Plant and/or the Other Facilities, whether during the
undersigned’s above-described access to the Plant or at any time thereafter and regardless of the
direct or indirect cause thereof (including, without limitation, the acts, omissions or negligence
of Farmland or its directors, officers, employees, agents or representatives), and THE UNDERSIGNED
DOES HEREBY RELEASE AND FOREVER DISCHARGE FARMLAND AND ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS
AND REPRESENTATIVES from any and all claims, demands or actions in connection with or otherwise
relating to any such personal injury or death to the undersigned.

     Also, the undersigned covenants never to make a claim or demand, or pursue any action,
against Farmland or its directors, officers, employees, agents and representatives on account of
any such personal injury or death to the undersigned.

     The undersigned acknowledges and agrees that the undersigned’s signing and delivery of this
Release to Farmland is the free and voluntary act of the undersigned, that this Release is a
legally binding document, and that this Release shall be binding on the undersigned and the
undersigned’s heirs and personal representatives.

	 	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

-36-

 

SCHEDULE
III

NON-EXHAUSTIVE
LIST OF TEXACO U.S. PATENTS

	 	 	 	 	 
	PATENT NO. 	 	DATE OF ISSUE	 	TITLE
	4,261,167

	 	04/14/81
	 	PROCESS FOR THE GENERATION OF POWER
FROM SOLID
CARBONACEOUS FUELS
	 
	 	 	 	 
	4,298,452

	 	11/03/81
	 	COAL LIQUEFACTION
	 
	 	 	 	 
	4,351,645

	 	09/28/82
	 	PARTIAL OXIDATION BURNER APARATUS
	 
	 	 	 	 
	4,371,378

	 	02/01/83
	 	SWIRL BURNER FOR PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,377,132

	 	03/22/83
	 	SYNTHESIS GAS COOLER AND WASTE HEAT BOILER
	 
	 	 	 	 
	4,385,906

	 	05/31/83
	 	START-UP METHOD FOR A GASIFICATION REACTOR
	 
	 	 	 	 
	4,390,347

	 	06/28/83
	 	TRIM CONTROL PROC. FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,390,348

	 	06/28/83
	 	TRIM CONTROL PROC. FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,411,670

	 	10/25/83
	 	PROD. OF SYNTHESIS GAS FROM HEAVY HYDROCARBON FUELS
CONTAINING HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,411,817

	 	10/25/83
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,443,228

	 	04/17/84
	 	PARTIAL OXIDATION BURNER
	 
	 	 	 	 
	4,462,928

	 	07/31/84
	 	PARTIAL OX. OF HEAVY REFINERY FRACTIONS
	 
	 	 	 	 
	4,466,810

	 	08/21/84
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,468,376

	 	08/28/84
	 	DISPOSAL PROC. FOR HALOGENATED ORGANIC MATERIAL
	 
	 	 	 	 
	4,474,581

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OXIDATION GAS

GENERATOR
	 
	 	 	 	 
	4,474,582

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OXIDATION GAS
GENERATOR
	 
	 	 	 	 
	4,479,810

	 	10/30/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,483,690

	 	11/20/84
	 	APPARATUS FOR PROD. OF SYNTHESIS GAS FROM HEAVY
HYDROCARBON FUELS CONTG. HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,490,156

	 	12/25/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,491,456

	 	01/01/85
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,510,057

	 	04/09/85
	 	ROTATING DISK BIOTREATMENT OF SYNGAS WASTE WATER
	 
	 	 	 	 
	4,525,176

	 	06/25/85
	 	PREHEATING AND DESLAGGING A GASIFIER
	 
	 	 	 	 
	4,533,363

	 	08/06/85
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,545,330

	 	10/08/85
	 	SELF-CLEANING LINER
	 
	 	 	 	 
	4,559,061

	 	12/17/85
	 	MEANS FOR SYNTHESIS GAS GENERATION WITH CONTROL OF
RATIO STEAM TO DRY GAS
	 
	 	 	 	 

-37-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,581,899

	 	04/15/86
	 	SYNTHESIS GAS GENERATION WITH PREVENTION OF DEPOSIT FORMATION IN EXIT LINES
	 
	 	 	 	 
	4,590,326

	 	05/20/86
	 	MULTI-ELEMENT THERMOCOUPLE
	 
	 	 	 	 
	4,597,773

	 	07/01/86
	 	PROC. FOR PARTIAL OX. OF HYDROCARBONACEOUS FUEL AND RECOVERY OF WATER FROM DISPERSIONS OF SOOT
	 
	 	 	 	 
	4,605,423

	 	08/12/86
	 	APPARATUS FOR GENERATING AND COOLING SYNTHESIS GAS
	 
	 	 	 	 
	4,624,683

	 	11/25/86
	 	QUENCH RING AND DIP TUBE COMBINATION WITH IMPROVEMENT
	 
	 	 	 	 
	4,637,823

	 	01/20/87
	 	HIGH TEMPERATURE FURNACE
	 
	 	 	 	 
	4,639,312

	 	01/27/87
	 	FILTER PRESS FLOW CONTROL SYSTEM FOR DEWATERING SLUDGE
	 
	 	 	 	 
	4,647,294

	 	03/03/87
	 	PARTIAL OXIDATION APPARATUS
	 
	 	 	 	 
	4,655,792

	 	04/07/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,657,698

	 	04/14/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,666,463

	 	05/19/87
	 	CONTROLLING TEMPERATURE OF BURNERS
	 
	 	 	 	 
	4,668,428

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,668,429

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,704,137

	 	11/03/87
	 	UPGRADING WATER FOR COOLING AND CLEANING
	 
	 	 	 	 
	4,705,536

	 	11/10/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,705,542

	 	11/10/87
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,743,194

	 	05/10/88
	 	COOLING SYSTEM FOR GASIFIER BURNER
	 
	 	 	 	 
	4,749,381

	 	06/07/88
	 	STABLE SLURRIES OF SOLID CARBONACEOUS FUEL AND WATER
	 
	 	 	 	 
	4,776,705

	 	10/11/88
	 	THERMOCOUPLE FOR USE IN HOSTILE ENVIRONMENT
	 
	 	 	 	 
	4,776,860

	 	10/11/88
	 	HIGH TEMPERATURE DESULFURIZATION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,778,483

	 	10/18/88
	 	GASIFICATION REACTOR WITH INTERNAL GAS BAFFLING AND LIQUID COLLECTOR
	 
	 	 	 	 
	4,778,485

	 	10/18/88
	 	POX PROCESS WITH HIGH TEMPERATURE DESULFURIZATION OF SYNGAS
	 
	 	 	 	 
	4,781,731

	 	11/01/88
	 	INTEGRATED METHOD OF CHARGE FUEL PRETREATMENT AND TAIL GAS SULFUR REMOVAL
	 
	 	 	 	 
	4,784,670

	 	11/15/88
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,788,003

	 	11/29/88
	 	PARTIAL OXIDATION OF ASH-CONTAINING LIQUID HYDROCARBONACEOUS AND SOLID CARBONACEOUS FUELS
	 
	 	 	 	 
	4,801,306

	 	01/31/89
	 	QUENCH RING FOR A GASIFIER

-38-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,826,627

	 	05/02/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,828,578

	 	05/09/89
	 	INTERNALLY CHANNELLED GASIFIER QUENCH RING
	 
	 	 	 	 
	4,828,579

	 	05/09/89
	 	THERMALLY INSULATED QUENCH RING FOR A GASIFIER
	 
	 	 	 	 
	4,828,580

	 	05/09/89
	 	QUENCH RING INSULATING COLLAR
	 
	 	 	 	 
	4,857,229

	 	08/15/89
	 	PARTIAL OX. OF SULFUR, NICKEL AND
VANADIUM-CONTG. FUELS
	 
	 	 	 	 
	4,876,031

	 	10/24/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,876,987

	 	10/31/89
	 	SYNTHETIC GAS COOLER WITH THERMAL PROTECTION
	 
	 	 	 	 
	4,880,439

	 	11/14/89
	 	HIGH TEMPERATURE DESULFURIZATION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,889,657

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,889,658

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,891,950

	 	01/09/90
	 	CONTROL SYSTEM AND METHOD FOR A SYNTHESIS GAS PROCESS
	 
	 	 	 	 
	4,909,958

	 	03/20/90
	 	PREVENTION OF FORMATION OF NICKEL
SUBSULFIDE IN PARTIAL OX. OF HEAVY LIQUID AND/OR SOLID FUELS
	 
	 	 	 	 
	4,936,376

	 	06/26/90
	 	SYNTHETIC GAS COOLER WITH THERMAL PROTECTION
	 
	 	 	 	 
	4,948,387

	 	08/14/90
	 	SYNTHESIS GAS BARRIER AND REFRACTORY SUPPORT
	 
	 	 	 	 
	4,957,544

	 	09/18/90
	 	PARTIAL OXIDATION PROCESS INCL. THE CONCENTRATION OF V/NI IN SLAG PHASE
	 
	 	 	 	 
	4,983,296

	 	01/08/91
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	4,992,081

	 	02/12/91
	 	REACTOR DIP TUBE COOLING SYSTEM
	 
	 	 	 	 
	5,000,580

	 	03/19/91
	 	APP. & METH. FOR MEAS. TEMP.
INSIDE PROC. VESSELS CONTG. A HOSTILE ENV.
	 
	 	 	 	 
	5,005,986

	 	04/09/91
	 	SLAG RESISTANT THERMOCOUPLE SHEATH
	 
	 	 	 	 
	5,087,271

	 	02/11/92
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	5,152,975

	 	10/06/92
	 	PROCESS FOR PRODUCING HIGH PURITY H2
	 
	 	 	 	 
	5,152,976

	 	10/06/92
	 	PROCESS FOR PRODUCING HIGH PURITY H2
	 
	 	 	 	 
	5,188,741

	 	02/23/93
	 	TREATMENT OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,211,723

	 	05/18/93
	 	PROCESS FOR REACTING PUMPABLE HIGH SOLIDS SEWAGE SLUDGE SLURRY
	 
	 	 	 	 
	5,211,724

	 	05/18/93
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,233,943

	 	08/10/93
	 	SYNTHETIC GAS RADIANT COOLER WITH INTERNAL QUENCHING AND PURGING FACILITIES
	 
	 	 	 	 
	5,234,468

	 	08/10/93
	 	PROCESS FOR UTILIZING A PUMPABLE FUEL FROM HIGHLY DEWATERED SEWAGE SLUDGE
	 
	 	 	 	 
	5,234,469

	 	08/10/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE

-39-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	5,250,083

	 	10/05/93
	 	PROCESS FOR PRODUCTION OF DESULFURIZED SYNTHESIS GAS
	 
	 	 	 	 
	5,251,433

	 	10/12/93
	 	POWER GENERATION PROCESS
	 
	 	 	 	 
	5,261,602

	 	11/16/93
	 	PARTIAL OXIDATION PROCESS AND BURNER WITH POROUS TIP
	 
	 	 	 	 
	5,265,635

	 	11/30/93
	 	CONTROL MEANS AND METHOD FOR CONTROLLING FEED GASES
	 
	 	 	 	 
	5,295,350

	 	03/22/94
	 	COMBINED POWER CYCLE WITH LIQUEFIED NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,319,924

	 	06/14/94
	 	PARTIAL OXIDATION POWER SYSTEM
	 
	 	 	 	 
	5,324,336

	 	06/28/94
	 	PARTIAL OXIDATION OF LOW RANK COALS AND RESIDUAL OIL
	 
	 	 	 	 
	5,345,756

	 	09/13/94
	 	PARTIAL OXIDATION PROCESS WITH PRODUCTION OF POWER
	 
	 	 	 	 
	5,358,696

	 	10/25/94
	 	PRODUCTION OF H2-RICH GAS
	 
	 	 	 	 
	5,364,996

	 	11/15/94
	 	PARTIAL OXIDATION OF SCRAP RUBBER TIRES AND USED MOTOR OIL
	 
	 	 	 	 
	5,394,686

	 	03/07/95
	 	COMBINED POWER CYCLE WITH LIQUEFIED NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,401,282

	 	03/28/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,403,366

	 	04/04/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,415,673

	 	05/16/95
	 	ENERGY EFFICIENT FILTRATION OF SYNGAS COOLING AND SRUBBING WATER
	 
	 	 	 	 
	5,423,992

	 	06/08/95
	 	CHEMICALLY DISINFECTED SEWAGE SLUDGE-CONTAINING MATERIALS
	 
	 	 	 	 
	5,423,894

	 	06/13/95
	 	PARTIAL OXIDATION OF LOW-RANK COALS
	 
	 	 	 	 
	5,441,990

	 	08/15/95
	 	CLEANED H2-ENRICHED SYNGAS MADE USING WATER-GAS SHIFT REACTION
	 
	 	 	 	 
	5,445,669

	 	08/29/95
	 	PARTIAL OXIDATION OF PRODUCTS OF LIQUEFACTION OF PLASTIC MATERIALS
	 
	 	 	 	 
	5,496,859

	 	03/05/96
	 	GASIFICATION PROCESS COMBINED WITH STEAM METHANE REFORMING TO PRODUCE SYNGAS SUITABLE FOR METHANOL PRODUCTION
	 
	 	 	 	 
	5,515,794

	 	05/14/96
	 	PARTIAL OXIDATION PROCESS BURNER WITH RECESSED TIP AND GAS BLASTING
	 
	 	 	 	 
	5,534,040

	 	07/09/96
	 	PARTIAL OXIDATION OF PARTIALLY LIQUIFIED PLASTIC MATERIALS
	 
	 	 	 	 
	5,554,202

	 	09/10/96
	 	GASIFIER MONITORING APPARATUSGASIFIER MONITORING APPARATUS
	 
	 	 	 	 
	5,578,094

	 	11/26/96
	 	VANADIUM ADDITION TO PETROLEUM COKE SLURRIES TO FACILITATE DESSLAGGING FOR CONTROLLED OXIDATION

-40-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,218,423

	 	08/19/80
	 	QUENCH RING AND DIP TUBE ASSEMBLY FOR A REACTOR VESSEL
	 
	 	 	 	 
	4,247,302

	 	01/27/81
	 	PROCESS FOR GASIFICATION AND PRODUCTION BY-PRODUCT SUPERHEATED STEAM
	 
	 	 	 	 
	4,248,604

	 	02/03/81
	 	GASIFICATION PROCESS
	 
	 	 	 	 
	4,251,228

	 	02/17/81
	 	PRODUCTION OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,252,539

	 	02/24/81
	 	SOLID FUEL COMPOSITION
	 
	 	 	 	 
	4,255,278

	 	03/10/81
	 	PARTIAL OXIDATION PROCESS WITH RECOVERY OF UNCOVERTED SOLID FUEL FROM SUSPENSION IN WATER
	 
	 	 	 	 
	4,261,167

	 	04/14/81
	 	PROCESS FOR THE GENERATION OF POWER FROM CARBONACEOUS FUELS WITH MINIMAL ATMOSPHERIC POLLUTION
	 
	 	 	 	 
	4,265,407

	 	05/05/81
	 	METH. OF PRODUCING A COAL-WATER SLURRY OF PREDETERMINED CONSISTENCY
	 
	 	 	 	 
	4,277,365

	 	07/07/81
	 	PRODUCTION OF REDUCING GAS
	 
	 	 	 	 
	4,279,622

	 	07/21/81
	 	GAS-GAS QUENCH COOLING AND SOLIDS SEPARATION PROCESS
	 
	 	 	 	 
	4,289,502

	 	09/15/81
	 	APPARATUS FOR THE PROD. OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,304,571

	 	12/08/81
	 	COAL BENEFICIATION
	 
	 	 	 	 
	4,304,572

	 	12/08/81
	 	PRODUCTION OF SOLID FUEL-WATER SLURRIES
	 
	 	 	 	 
	4,312,637

	 	01/26/82
	 	SLAG OUTLET FOR GASIFICATION GENERATOR
	 
	 	 	 	 
	4,324,563

	 	04/13/82
	 	GASIFIC. APPARATUS WITH MEANS FOR COOLING AND SEPARATING SOLIDS WITH PRODUCT GAS
	 
	 	 	 	 
	4,326,856

	 	04/27/82
	 	PRODUCTION OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,326,948

	 	04/27/82
	 	LIQUEFACTION AND GASIFICATION OF LOW RANK COALS
	 
	 	 	 	 
	4,328,006

	 	05/04/82
	 	APP. FOR THE PROD. OF CLEANED AND COOLED SYNGAS
	 
	 	 	 	 
	4,328,008

	 	05/04/82
	 	METHOD FOR THE PRODUCTION OF CLEANED AND COOLED SYNTHESIS GAS
	 
	 	 	 	 
	4,351,645

	 	09/28/82
	 	PARTIAL OXIDATION BURNER APPARATUS
	 
	 	 	 	 
	4,364,744

	 	12/21/82
	 	BURNER FOR THE PARTIAL OX. OF SLURRIES OF SOLID CARBONACEOUS FUELS
	 
	 	 	 	 
	4,371,378

	 	02/01/83
	 	SWIRL BURNER FOR PARTIAL OX. PROCESS
	 
	 	 	 	 
	4,377,132

	 	03/22/83
	 	SYNTHESIS GAS COOLER AND WASTE HEAT BOILER
	 
	 	 	 	 
	4,377,394

	 	03/22/83
	 	APP. FOR THE PROD. OF CLEANED AND COOLED SYNGAS
	 
	 	 	 	 
	4,385,906

	 	05/31/83
	 	START-UP METHOD FOR A GASIFICATION REACTOR

-41-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,386,941

	 	06/07/83
	 	PROC. FOR THE PARTIAL OX. OF SLURRIES OF SOLID CARBONACEOUS FUEL
	 
	 	 	 	 
	4,390,347

	 	06/28/83
	 	TRIM CONTROL PROCESS FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,390,348

	 	06/28/83
	 	TRIM CONTROL PROCESS FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,390,957

	 	06/28/83
	 	COAL SLURRY MONITOR MEANS AND METHOD
	 
	 	 	 	 
	4,411,533

	 	10/25/83
	 	SYSTEM FOR MEASURING TEMPERATURE OF HOT GASES LADEN WITH ENTRAINED SOLIDS
	 
	 	 	 	 
	4,411,670

	 	10/25/83
	 	PROD. OF SYNTHESIS GAS FROM HEAVY
HYDROCARBON FUELS CONTG. HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,411,817

	 	10/25/83
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,436,530

	 	03/13/84
	 	PROC. FOR GASIFYING SOLID CARBON CONTG. MATERIALS
	 
	 	 	 	 
	4,436,531

	 	03/13/84
	 	COAL. GASIFICATION: PROMOTING THE REACTION OF CARBON IN THE EFFLUENT
	 
	 	 	 	 
	4,443,228

	 	04/17/84
	 	PARTIAL OXIDATION BURNER
	 
	 	 	 	 
	4,443,230

	 	04/17/84
	 	PARTIAL OX. PROCESS FOR SLURRIES OF SOLID FUEL
	 
	 	 	 	 
	4,445,444

	 	05/01/84
	 	BURNER FOR COMBUSTING OXYGEN-COAL MIXTURE
	 
	 	 	 	 
	4,465,496

	 	08/14/84
	 	REMOVAL OF SOUR WATER FROM COAL GASIFICATION SLAG
	 
	 	 	 	 
	4,466,808

	 	08/21/84
	 	METH. OF COOLING PRODUCT GASES OF INCOMPLETE COMBUSTION CONTAINING ASH AND CHAR WHICH PASS THROUGH A VISCOUS STICKY PHASE
	 
	 	 	 	 
	4,466,810

	 	08/21/84
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,468,376

	 	08/28/84
	 	DISPOSAL PROC. FOR HALOGENATED ORGANIC MATERIAL
	 
	 	 	 	 
	4,474,581

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,474,582

	 	10/02/84
	 	TRIM CONTROL SYSTEM FOR PARTIAL OX. GAS GENERATOR
	 
	 	 	 	 
	4,479,810

	 	10/30/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,483,690

	 	11/20/84
	 	APPARATUS FOR PROD. OF SYNTHESIS GAS
FROM HEAVY HYDROCARBON FUELS CONTG. HIGH METAL CONCENTRATIONS
	 
	 	 	 	 
	4,490,156

	 	12/25/84
	 	PARTIAL OXIDATION SYSTEM
	 
	 	 	 	 
	4,491,456

	 	01/01/85
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,510,057

	 	04/09/85
	 	ROTATING DISK BIOTREATMENT OF SYNGAS WASTE WATER
	 
	 	 	 	 
	4,525,175

	 	06/25/85
	 	BURNER FOR PARTIAL OXIDATION PROCESS FOR SLURRIES
	 
	 	 	 	 
	4,525,176

	 	06/25/85
	 	PREHEATING AND DESLAGGING A GASIFIER
	 
	 	 	 	 
	4,526,676

	 	07/02/85
	 	INTEGRATED H-OIL PROCESS INCLUDING RECOVERY AND TREATMENT OF VENT AND PURGE GAS STREAMS AND SOOT NAPHTHA STREAM

-42-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	 
	 	 	 	 
	4,533,363

	 	08/06/85
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,545,330

	 	10/08/85
	 	SELF-CLEANING LINER
	 
	 	 	 	 
	4,559,061

	 	12/17/85
	 	MEANS FOR SYNTHESIS GAS GENERATION WITH CONTROL OF RATIO OF STEAM TO DRY GAS
	 
	 	 	 	 
	4,581,899

	 	04/15/86
	 	SYNTHESIS GAS GENERATION WITH PREVENTION OF DEPOSIT FORMATION IN EXIT LINES
	 
	 	 	 	 
	4,590,326

	 	05/20/86
	 	MULTI-ELEMENT THERMOCOUPLE
	 
	 	 	 	 
	4,597,773

	 	07/01/86
	 	PROCESS FOR PARTIAL OXIDATION OF HYDROCARBONACEOUS FUEL AND RECOVERY OF WATER FROM DISPERSIONS OF SOOT AND WATER
	 
	 	 	 	 
	4,605,423

	 	08/12/86
	 	APPARATUS FOR GENERATING AND COOLING SYNTHESIS GAS
	 
	 	 	 	 
	4,624,683

	 	11/25/86
	 	QUENCH RING AND DIP TUBE COMBINATION WITH IMPROVEMENT
	 
	 	 	 	 
	4,637,823

	 	01/20/87
	 	HIGH TEMPERATURE FURNACE
	 
	 	 	 	 
	4,639,312

	 	01/27/87
	 	FILTER PRESS FLOW CONTROL SYSTEM FOR DEWATERING SLUDGE
	 
	 	 	 	 
	4,647,294

	 	03/03/87
	 	PARTIAL OXIDATION APPARATUS
	 
	 	 	 	 
	4,650,497

	 	03/17/87
	 	QUENCH CHAMBER FOR HIGH PRESSURE
	 
	 	 	 	 
	4,655,792

	 	04/07/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,657,698

	 	04/14/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,666,462

	 	05/19/87
	 	CONTROL PROCESS FOR SOLID FUELS
	 
	 	 	 	 
	4,666,463

	 	05/19/87
	 	CONTROLLING TEMPERATURE OF BURNERS
	 
	 	 	 	 
	4,668,428

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,668,429

	 	05/26/87
	 	PARTIAL OX. OF PETROLEUM COKE AND/OR HEAVY LIQUID FUEL
	 
	 	 	 	 
	4,671,803

	 	06/09/87
	 	SYNGAS FREE FROM VOLATILE METAL HYDRIDES
	 
	 	 	 	 
	4,676,805

	 	06/30/87
	 	PROCESS FOR OPERATING GAS GENERATOR
	 
	 	 	 	 
	4,704,137

	 	11/03/87
	 	UPGRADING WATER FOR COOLING AND
CLEANING PARTIAL OX. PROCESS
	 
	 	 	 	 
	4,705,536

	 	11/10/87
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,705,542

	 	11/10/87
	 	PRODUCTION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,743,194

	 	05/10/88
	 	COOLING SYSTEM FOR GASIFIER BURNER
	 
	 	 	 	 
	4,749,381

	 	06/07/88
	 	STABLE SLURRIES OF CARBONACEOUS FUEL AND WATER
	 
	 	 	 	 
	4,774,021

	 	09/27/88
	 	PARTIAL OX. OF SULFUR-CONTG. SOLID FUEL
	 
	 	 	 	 
	4,776,860

	 	10/11/88
	 	HIGH-TEMPERATURE DESULFURIZATION OF SYNGAS
	 
	 	 	 	 

-43-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,778,483

	 	10/18/88
	 	QUENCH CHAMBER WITH TROUGH AT BOTTOM OF BAFFLE
	 
	 	 	 	 
	4,778,485

	 	10/18/88
	 	PARTIAL OXIDATION WITH SECOND STAGE ADDITION OF ADDITIVE
	 
	 	 	 	 
	4,781,731

	 	11/01/88
	 	INTEGRATED METHOD OF CHARGE FUEL PRETREATMENT AND TAIL GAS SULFUR REMOVAL IN A PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,784,670

	 	11/15/88
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,788,003

	 	11/29/88
	 	PARTIAL OXIDATION OF ASH-CONTAINING LIQUID HYDROCARBONACEOUS AND SOLID CARBONACEIOUS FUELS
	 
	 	 	 	 
	4,801,306

	 	01/31/89
	 	QUENCH RING FOR GASIFIER
	 
	 	 	 	 
	4,826,627

	 	05/02/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,828,578

	 	05/09/89
	 	INTERNALLY CHANNELLED GASIFIER QUENCH RING
	 
	 	 	 	 
	4,828,579

	 	05/09/89
	 	THERMALLY INSULATED QUENCH RING FOR A GASIFIER
	 
	 	 	 	 
	4,828,580

	 	05/09/89
	 	QUENCH RING INSULATING COLLAR
	 
	 	 	 	 
	4,857,229

	 	08/15/89
	 	PARTIAL OX. OF SULFUR, NICKEL AND
VANADIUM-CONTG. FUELS
	 
	 	 	 	 
	4,863,489

	 	09/05/89
	 	PROD. OF DEMERCURIZED SYNTHESIS GAS
	 
	 	 	 	 
	4,875,906

	 	10/24/89
	 	PARTIAL OX. OF LOW HEATING VALUE WASTE PETROLEUM PRODUCTS
	 
	 	 	 	 
	4,876,031

	 	10/24/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,876,987

	 	10/31/89
	 	SYNTHETIC GAS COOLER WITH THERMAL PROTECTION
	 
	 	 	 	 
	4,880,439

	 	11/14/89
	 	HIGH TEMPERATURE DESULFURIZATION OF SYNTHESIS GAS
	 
	 	 	 	 
	4,889,657

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,889,658

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,889,699

	 	12/26/89
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	4,904,277

	 	02/27/90
	 	REHYDRATING INHIBITORS FOR PREPARATION OF HIGH-SOLIDS CONCENTRATION LOW RANK COAL SLURRIES
	 
	 	 	 	 
	4,909,958

	 	03/20/90
	 	PREVENTION OF FORMATION OF NICKEL
SUBSULFIDE IN PARTIAL OX. OF HEAVY LIQUID AND/OR SOLID FUELS
	 
	 	 	 	 
	4,919,688

	 	04/24/90
	 	GASIFIER WITH GAS SCROURED THROAT
	 
	 	 	 	 
	4,936,376

	 	06/26/90
	 	SYNTHETIC GAS COOLER WITH THERMAL PROCTECTION
	 
	 	 	 	 
	4,946,476

	 	08/07/90
	 	PARTIAL OX. OF BITUMINOUS COAL
	 
	 	 	 	 
	4,948,387

	 	08/14/90
	 	SYNTHESIS GAS BARRIER AND REFRACTORY SUPPORT
	 
	 	 	 	 
	4,957,544

	 	09/18/90
	 	PARTIAL OX. PROCESS INCLUDING THE CONCENTRATION OF V/NI IN SLAG PHASE
	 
	 	 	 	 
	4,983,296

	 	01/08/91
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 

-44-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	4,992,081

	 	02/12/91
	 	REACTOR DIP TUBE COOLING SYSTEM
	 
	 	 	 	 
	5,000,580

	 	03/19/91
	 	APPARATUS AND METHOD FOR MEASURING TEMPERATURES INSIDE PROCESS VESSELS CONTG. A HOSTILE ENVIRONMENT
	 
	 	 	 	 
	5,005,986

	 	04/09/91
	 	SLAG RESISTANT THERMOCOUPLE SHEATH
	 
	 	 	 	 
	5,087,271

	 	02/11/92
	 	PARTIAL OXIDATION PROCESS
	 
	 	 	 	 
	5,183,478

	 	02/02/93
	 	PROCESS AND APPARATUS FOR DEWATERING QUENCHED SLAG
	 
	 	 	 	 
	5,188,739

	 	02/23/93
	 	DISPOSAL OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,188,740

	 	02/23/93
	 	PUMPABLE FUEL SLURRY OF SEWAGE SLUDGE & LOW GRADE SOLIDS CARBONACEOUS FUELS
	 
	 	 	 	 
	5,188,741

	 	02/23/93
	 	TREATMENT OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,211,723

	 	05/18/93
	 	PROCESS FOR REACTING PUMPABLE HIGH SOLIDS SEWAGE SLUDGE SLURRY
	 
	 	 	 	 
	5,211,724

	 	05/18/93
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,217,625

	 	06/08/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,230,211

	 	07/27/93
	 	PARTIAL OXIDATION OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,233,943

	 	08/10/93
	 	SYNTHETIC GAS RADIANT COOLER WITH INTERNAL QUENCHING AND PURGING FACILITIES
	 
	 	 	 	 
	5,234,469

	 	08/10/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,250,083

	 	10/05/93
	 	PROCESS FOR PRODUCTION OF DESULFURIZED SYNTHESIS GAS
	 
	 	 	 	 
	5,251,433

	 	10/12/93
	 	POWER GENERATION PROCESS
	 
	 	 	 	 
	5,261,602

	 	11/16/93
	 	PARTIAL OXIDATION PROCESS AND BURNER WITH POROUS TIP
	 
	 	 	 	 
	5,264,009

	 	11/23/93
	 	PROCESSING OF SEWAGE SLUDGE FOR USE AS A FUEL
	 
	 	 	 	 
	5,266,085

	 	11/30/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,273,556

	 	12/28/93
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,281,243

	 	01/25/94
	 	TEMPERATURE MONITORING BURNER MEANS AND METHOD
	 
	 	 	 	 
	5,292,442

	 	03/08/94
	 	PROCESS FOR DISPOSING OF SEWAGE SLUDGE
	 
	 	 	 	 
	5,295,350

	 	03/22/94
	 	COMBINED POWER CYCLE WITH LIQUEFIED
NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,319,924

	 	06/14/94
	 	PARTIAL OXIDATION POWER SYSTEM
	 
	 	 	 	 
	5,324,336

	 	06/28/94
	 	PARTIAL OXIDATION OF LOW RANK COALS
	 
	 	 	 	 
	5,338,489

	 	08/16/94
	 	DESLAGGING GASIFIERS BY CONTROLLED
HEAT AND DERIVATIZATION
	 
	 	 	 	 
	5,345,756

	 	09/13/94
	 	PARTIAL OXIDATION PROCESS WITH PRODUCTION OF POWER
	 
	 	 	 	 
	5,356,540

	 	10/18/94
	 	PUMPABLE OXIDATION PROCESS WITH PRODUCTION OF POWER
	 
	 	 	 	 

-45-

 

	 	 	 	 	 
	PATENT NO.	 	DATE OF ISSUE	 	TITLE
	5,358,696

	 	10/25/94
	 	PRODUCTION OF H2 RICH GAS
	 
	 	 	 	 
	5,394,686

	 	03/07/95
	 	COMBINED POWER CYCLE WITH LIQUEFIED
NATURAL GAS (LNG) AND SYNTHESIS OR FUEL GAS
	 
	 	 	 	 
	5,401,282

	 	03/28/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,403,366

	 	04/04/95
	 	PARTIAL OXIDATION PROCESS FOR PRODUCING A STREAM OF HOT PURIFIED GAS
	 
	 	 	 	 
	5,415,673

	 	05/16/95
	 	ENERGY EFFICIENT FILTRATION OF SYNGAS COOLING AND SCRUBBING WATER
	 
	 	 	 	 
	5,423,992

	 	06/08/95
	 	CHEMICALLY DISINFECTED SEWAGE SLUDGE-CONTAINING MATERIALS
	 
	 	 	 	 
	5,423,894

	 	06/13/95
	 	PARTIAL OXIDATION OF LOW-RANK COALS
	 
	 	 	 	 
	5,441,990

	 	08/15/95
	 	CLEANED,
H2-ENRICHED SYNGAS MADE USING WATER-GAS SHIFT REACTION
	 
	 	 	 	 
	5,464,592

	 	11/07/95
	 	GASIFIER THROAT
	 
	 	 	 	 
	5,464,503

	 	11/07/95
	 	TIRE LIQUEFYING PROCESS REACTOR DISCHARGE SYSTEM AND METHOD
	 
	 	 	 	 
	5,484,554

	 	01/16/96
	 	OXIDANT INJECTION FOR IMPROVED CONTROLLED OXIDATION
	 
	 	 	 	 
	5,498,827

	 	03/12/96
	 	HYDROTHERMAL TREATMENT AND PARTIAL OXIDATION OF PALSTIC MATERIALS
	 
	 	 	 	 
	5,515,794

	 	05/14/96
	 	PARTIAL OXIDATION PROCESS BURNER WITH RECESSED TIP AND GAS BLASTING
	 
	 	 	 	 
	5,534,040

	 	07/09/96
	 	PARTIAL OXIDATION OF PARTIALLY
LIQUIFIED PLASTIC MATERIALS
	 
	 	 	 	 
	5,545,238

	 	08/13/96
	 	METHOD OF MONITORING SLAG REMOVAL DURING CONTROLLED OXIDATION OF PARTIAL OXIDATION REACTOR
	 
	 	 	 	 
	5,554,202

	 	09/10/96
	 	GASIFIER MONITORING APPARATUS
	 
	 	 	 	 
	5,566,891

	 	10/22/96
	 	METHOD FOR GRINDING HOT MATERIAL AND RECOVERING GASES ENITTED THEREFROM
	 
	 	 	 	 
	5,578,094

	 	11/26/96
	 	VANADIUM ADDITION TO PETROLEUM COKE SLURRIES TO FACILITATE DESLAGGING FOR CONTROLLED OXIDATION

-46-

 

AMENDMENT AGREEMENT

     THIS AMENDMENT AGREEMENT, made and entered into this 11th day of
December, 1997, by and between TEXACO DEVELOPMENT CORPORATION (“TEXACO
DEVELOPMENT”) and FARMLAND INDUSTRIES, INC. (“LICENSEE”).

     WHEREAS, the parties entered into a License Agreement, dated as of May 30,
1997 (the “License Agreement”) and now desire to amend the License Agreement to
provide for certain “at risk” elements to the payment of a portion of the
royalty fees payable thereunder;

     NOW, THEREFORE, the parties hereto do hereby agree as follows:

     I. All initial capitalized terms used herein shall have the meaning
given them in the License Agreement.

     II. Paragraph 1(a)
of Schedule II to the License Agreement is hereby amended to read in
its entirety as follows:

         1. (a)(i)
The
parties acknowledge that LICENSEE has paid to Texaco Development the
[***] royalty payment anticipated in 
Section 1(a)(i) of this
Schedule II;

             (ii) Within
forty-five (45) days of Financial Closure or by June 30, 1998,
whichever first occurs, LICENSEE will pay TEXACO DEVELOPMENT a
royalty payment of [***];

             (iii) LICENSEE
will pay TEXACO DEVELOPMENT running royalty payments, contingent on
production of Synthesis Gas by the Plant, as follows:

             (1) The
maximum aggregate of the payments required under this clause
(iii)(1) shall be [***];

             (2) as
to any accounting period (as defined in Section 4.3 of the
License Agreement), other than an accounting period that is less than
a full six calendar months, (x) if the Daily Average Output for
such accounting period is more than [***] MSCF, then [***] shall be
required to be paid with respect to such accounting period,
(y) if the Daily Average Output for such accounting period is
less than [***] MSCF, then no amount shall be required to be paid
with respect to such accounting period, and (z) if the Daily
Average Output for such accounting period is from [***] MSCF, then an
amount equal to [***], times a fraction, the numerator of which is
such Daily Average Output for such accounting period minus [***], and
the denominator of which is [***], shall be required to be paid with
respect to such accounting period; and

             (3) Payments
required under this clause (iii) shall accompany the annual statement
required under Section 4.3 of the License Agreement.

             (iv) The
balance of the royalty payments shall be paid, at LICENSEE’s
election, either (A) within forty-five (45) days of Plant Start-up or
December 31, 2002, whichever first occurs, a lump sum royalty of
[***], or (B) running royalty payments, contingent on the production
of Synthesis Gas by the Plant, as follows:

             (1) the
maximum aggregate of the payments required to be paid under this
clause (iv)(B) shall be [***];

             (2) as
to any accounting period, other than an accounting period that is
less than a six full calendar months, (x) if the Daily Average Output
for such accounting period is more than [***] MSCF, then [***] shall
be required to be paid with respect to such accounting period,
(y) if the Daily Average Output for such accounting period is
less than [***] MSCF, then no amount shall be required to be paid with
respect to such accounting period, and (z) if the Daily Average
Output for such accounting period is from [***] MSCF, to and including
[***] MSCF, then an amount equal to [***] times a fraction, the
numerator of which is such Daily Average Output for such accounting
period minus [***], and the denominator of which is [***], shall be
required to be paid with respect to such accounting period; and

             (3) Payments
required under this clause (iv)(B) shall accompany the annual
statement required under Section 4.3 of the License Agreement.

Upon
payment to Texaco Development by LICENSEE of [***] under the above
clause (ii), the [***] under the above clause (iii) and either the
[***] under the above clause (iii)(A) or the [***] under the above
clause (iv)(B), all royalties for the designed Daily Average Output
of the Plant calculated per the royalty schedule in Paragraph 2
of this Schedule II shall be fully paid.

     III. Paragraph
 2 of Schedule II to the License Agreement is hereby
amended to read in its entirety as follows:

         2. Royalties
shall be paid with respect to all Gasification operations conducted
by LICENSEE in accordance with the following royalty schedule:

             (a) For
the first 86,000 MSCF of Daily Average Output or any part thereof, the
royalties provided in Paragraph 1(a) of this Schedule II;

             For
the next 114,000 MSCF of Daily Average Output (i.e., over 86,000) and
up to and including 200,000 MSCF of Daily Average Output total,
lump-sum royalties at the rate of [***] per MSCF of Daily Average
Output; and

             For
all over 200,000 MSCF of Daily Average Output lump-sum royalties at the
rate of [***] per MSCF of Daily Average Output; and

             [***]

             For
the next 114,000 MSCF of Daily Average Output, i.e., over 86,000 and up
to and including 200,000 MSCF of Daily Average Output total, lump-sum
royalties at the rate of [***] per MSCF of Daily Average Output; and

             For
all over 200,000 MSCF of Daily Average Output lump-sum royalties at the
rate of [***] per MSCF of Daily Average Output;

all in
accordance with the payment provisions of this Schedule II.

     IV. The
last sentence of paragraph 4(a) of Schedule II to the
License Agreement is hereby amended to read in its entirety as
follows:

     “Such
factor shall not apply to (a) any running royalty payments to be
made under paragraph 1(a)(iii) or paragraph 1(a)(iv)(B) of
Schedule II to the License Agreement, or (b) the payment
(which may be made at LICENSEE’s election) set forth in
paragraph 1(a)(iv)(A) of Schedule II to the License
Agreement, provided such amount in paragraph 1(a)(iv)(A) is
actually received by TEXACO DEVELOPMENT prior to December 31,
2000.”

     V. Section 4.3.2 of the License Agreement is hereby amended to read
in its entirety as follows:

     4.3.2 The excess (in daily averages), if any, of the total Daily Average
Output from the Gasification section of the Plant reported under Subparagraph
4.3.1  above, over the total Daily Average Output for all operations conducted
by LICENSEE for which a license has been granted to LICENSEE under this
License Agreement;

     VI. The
last sentence of Section 7.2 of the License Agreement is hereby amended
by deleting “Paragraphs 1(a)(i), (ii) and (iii)” and inserting in lieu thereof
“Paragraphs 1(a)(i) and
(ii)”.

     VII.
Section 8.3.4 and the first sentence of Section 8.6 of the License
Agreement are hereby amended by adding, immediately following the phrase “due
and actually received by” appearing in each such provision, the following:

     “, whether received prior or subsequent to the
incurrence of such liability,”

     VIII. Except as provided herein, the License Agreement is not otherwise being
amended or modified and the provisions thereof shall continue in full force and effect, as
amended and modified herein.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment
Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	FARMLAND INDUSTRIES, INC.	 	 	 	TEXACO DEVELOPMENT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Allan D. Holiday	 	 	 	By:	 	/s/ John M. Brady	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Name:

	 	Allan D. Holiday	 	 	 	Name:	 	John M. Brady	 	 
	Title:

	 	Project Manager	 	 	 	Title	 	Vice President	 	 
	Date: December 11, 1997	 	 	 	Date: December 11, 1997	 	 

 

Texaco Development Corporation

1111
Bagby Street

Houston, TX 77002

ChevronTexaco

October 24, 2003

Coffeyville Resources, LLC

c/o Pegasus Investors

99 River Road

Cos Cob, Connecticut 06807

	 	 	 	 	 
	 

	 	Re:
	 	Texaco Gasification Process, Texaco Hydrogen Generation Process and Texaco
	 

	 	 	 	 Gasification Power Systems
	 

	 	 	 	License Agreement Effective
May 30, 1997
	 

	 	 	 	Amendment No. Two

Gentlemen,

Reference is made to the license agreement referenced above (“License Agreement”)
effective as of May 30, 1997, between Texaco Development Corporation (“TDC”) and Farmland
Industries, Inc. (“Former Licensee”). Reference is also made to the Consent agreement dated
December 11, 1997 wherein TDC consented to certain assignments
by Former Licensee, the Amendment
Agreement dated December 11, 1997 which amended the License Agreement, and the Consent to
Assignment and Assignment of License Agreement dated October 24, 2003 wherein the License
Agreement was assigned by the Former Licensee to Coffeyville
Resources, LLC (“Licensee”).

TDC and
Licensee wish to amend the License Agreement as indicated below to reflect the
new royalty payment schedule agreed to by the parties.

      License Agreement

	1.	 	Section 7.1, first line, delete “or canceled and,
hence, terminated under Paragraph l(c) of
Schedule II,”.
	 
	2.	 	Section 7.2, last sentence, delete in its entirety.
	 
	3.	 	Schedule II of the License Agreement is hereby amended
as follows:
	 
	i.	 	Paragraph 1(a), is hereby amended to read in its entirety as follows:

	 	 	 
	[CHEVRON LOGO] [TEXACO LOGO]

	 	Coffeyville Resources, LLC

2nd Amendment to License Agreement

 

 

================================================================================

-2-

1(a)
The parties acknowledge and agree that the Former Licensee, Farmland, has paid to
Texaco Development all royalties and fees due and owing to TDC
through December 31, 2003.
For royalties and fees due and owing to TDC after December 31, 2003, the parties further
acknowledge and agree that the LICENSEE shall pay additional royalties and fees in the
total sum of Five Million Five Hundred Thousand United States Dollars ($5,500,000 USD) according to the payment schedule listed below:

	 	(i)	 	An initial payment of [***] shall be paid to TDC on or before June 1, 2004;
	 
	 	(ii)	 	A second payment of [***] shall be paid to TDC on or before June 1, 2005;
	 
	 	(iii)	 	A third payment of [***] shall be paid to TDC on or before June 1, 2006;
and
	 
	 	(iv)	 	A fourth and final payment of [***] shall be paid to TDC on or before June 1, 2007.

	ii.	 	Paragraph 1(c) is hereby deleted in its entirety.
	 
	iii.	 	Paragraph 1(e) is hereby deleted in its entirety.
	 
	iv.	 	Paragraph 1(f), last sentence, delete
“Paragraph 2(b)”and insert in lieu
“Paragraph 2”.
	 
	v.	 	Paragraph 2 is hereby amended to read in its entirety as follows:

     2. Royalties
shall be paid with respect to all Gasification operations conducted
by Licensee in accordance with the following royalty schedule:

For
the next 114,000 MSCF of Daily Average Output, i.e., over 86,000 and up to and including
200,000 MSCF of Daily Average Output total lump-sum royalties,
at the rate of [***] per MSCF of Daily
Average Output;
and

For all over
200,000 MSCF of Daily Average Output lump-sum royalties at the rate of
[***] per MSCF of Daily Average Output;

all
in accordance with the payment provisions of this Schedule II.

	vi.	 	Paragraph 4(a) is hereby amended by deleting the last
sentence.

Coffeyville Resources, LLC

2nd  Amendment to License Agreement

 

 

-3-

All other terms and conditions of the License Agreement shall remain in full force and effect.

The
obligations under this Letter Agreement are conditioned upon the
following: (i) Licensee becoming the “Successful Bidder” as such term
is defined pursuant to the Order Approving Bid Procedures entered by
the Bankruptcy Court (“Bankruptcy Court”) in Former Licensee’s
Bankruptcy Chapter 11 Case No. 02-50557-JWV, (ii) closing of the transaction pursuant to that certain Asset Sale and Purchase Agreement
dated September 25, 2003 between Former Licensee as
“Seller” and Licensee as “ Buyer” (the “APA”) on or before March 31, 2004, (iii) the
entry of an appropriate order by the Bankruptcy Court approving the
sale of the “Transferred Assets”, as such term is defined
under the APA, and (iv) the entry of a
final and non-appealable order by the Bankruptcy Court approving the compromise and settlement agreement between TDC and Former Licensee pursuant to the letter
agreement dated October 17, 2003.

If you are agreeable to the foregoing conditions, please indicate your acceptance and agreement by having a duly authorized
representative of Licensee execute both duplicate originals of the Letter Agreement and returning both signed copies to us for completion by TDC.

	 	 	 	 	 	 	 
	 	 	          Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	TEXACO DEVELOPMENT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ W. E. Preston	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Vice President	 	 

	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 	 	 
	COFFEYVILLE RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Philip L. Rinaldi	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:	 	Philip L. Rinaldi	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	Tittle:

	 	CEO	 	 	 	 
	 
	 	 
	 	 
	Date:

	 	10/24/03	 	 	 	 
	 
	 	 
	 	 

Coffeyville Resources, LLC

2nd Amendment to License Agreement

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