Document:

ex_1028.htm

    Exhibit
10.28

     

    FIRST
AMENDMENT TO AN SUPPLY AGREEMENT

     

    This First Amendment to AN
Supply Agreement (“First Amendment”) is entered into by and between Orica
International Pte Ltd. (“Orica”) and El Dorado Chemical Company (“EDC”), with an
effective date of March 1, 2010 (“Effective Date”) in reference to the
following:

     

    A.           Orica
and EDC entered into that certain AN Supply Agreement made effective as of
January 1, 2010 (the “Agreement”)”.  Capitalized terms that are not
otherwise defined herein shall have the meaning given such terms in the
Agreement.

     

    B.           The
parties desire to modify certain provisions of the Agreement.

     

    NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

     

    1.           Preamble.   The
preamble is hereby incorporated herein by reference; provided that, in case of
any inconsistency between any part of the preamble and any part of the body of
the Agreement, then the body of the Agreement shall prevail.

     

    2.           Ammonia.  
Sections 3.1, 3.2, 3.3 and 3.4 of the Agreement shall be deleted in their
entirety and the following shall be substituted therefor:

     

    
      	
              “3.1

            	
              The
      current term of the Koch Ammonia Agreement expires on December 31, 2012.
      The Koch Ammonia Agreement contemplates that EDC will purchase
      approximately 60,000 Tons of Ammonia that will be used in the production
      of AN to be purchased by Orica under this Agreement. The cost to EDC of
      such Ammonia shall be included in the amounts owed by Orica to EDC under
      Section 14.2.1 (a) of this
Agreement.

            

    

     

    
      	
              3.1.1

            	
              Orica
      is not and shall not be deemed to be a party to the Koch Ammonia
      Agreement.

            

    

     

    
      	
              3.1.2

            	
              Orica
      acknowledges and agrees that, prior to December 31, 2012, Orica shall not
      be permitted to supply its own Ammonia in substitution for the 60,000 Tons
      of Ammonia to be supplied under the Koch Ammonia Agreement nor require EDC
      to supply the 58,000 Tons of Ammonia Orica will supply from another
      supplier, in either case without the consent of
  KNI.

            

    

     

    
      	
              3.1.3

            	
              EDC
      will provide to Orica material information in EDC’s possession regarding
      the operation of the Koch Ammonia Agreement and will provide copies to
      Orica of any material notices or other correspondence EDC receives from or
      issues to KNI in respect of the Koch Ammonia
  Agreement.

            

    

     

    
      	
              3.1.4

            	
              EDC
      shall consult with Orica prior to the exercise by EDC of any of the rights
      conferred upon it pursuant to Sections I.H, VI.D, VII.A, XI.B, XII and XIV
      of the Koch Ammonia Agreement.

            

    

     

    
      	
              3.1.5

            	
              EDC
      shall not, without obtaining Orica’s prior written approval, exercise any
      of the rights conferred upon it pursuant to Sections I.P, II.B, III.B
      (unless the resale, transfer, exchange or assignment does not affect
      Ammonia to be supplied to Orica), V.B, or XV (unless any such amendment
      has no effect on Orica) of the Koch Ammonia Agreement
  

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    relating to the 60,000 Tons
of Ammonia to be supplied by EDC to Orica prior to December 31,
2012.

     

    
      	
              3.1.6

            	
              EDC
      shall be solely responsible for any costs or expenses claimed against EDC
      by KNI pursuant to Article XI Section A of the Koch Ammonia Agreement,
      except to the extent that any such costs or expenses are directly
      attributable to any failure by Orica to timely make payment to EDC in
      accordance with Section 3.6 of this
Agreement.

            

    

     

    
      	
              3.1.7

            	
              Notwithstanding
      any other provision of this Agreement and unless otherwise agreed in
      writing, EDC shall not be obligated to supply Ammonia hereunder for the
      manufacture of AN for Orica (a) if EDC fails to provide Ammonia prior to
      December 31, 2012 but such failure is not caused by any default of EDC
      under the Koch Ammonia Agreement or (b) after December 31,
      2012.

            

    

     

    
      	
              3.2

            	
              Prior
      to December 31, 2012, Orica will supply 58,000 Tons of Ammonia to EDC from
      a supplier other than KNI and EDC agrees to accept deliveries of such
      Ammonia in the same manner as in Section 3.4 of this
      Agreement.  The cost to EDC of such Ammonia shall be included in
      the amounts owed by Orica to EDC under Section 14.2.1 (b) of this
      Agreement.

            

    

     

    
      	
              3.3

            	
              From
      and after January 1, 2013, to the extent Ammonia is available from EDC’s
      supplier or suppliers at costs acceptable to Orica (which shall not exceed
      EDC’s delivered to the EDC Site cost of Ammonia from EDC’s supplier), EDC
      shall acquire up to 60,000 Tons of Ammonia for use to manufacture AN for
      Orica under this Agreement for such periods as shall be requested by
      Orica. For the 60,000 Tons of Ammonia EDC is supplying, Orica shall give
      EDC at least 45 days’ advance notice of the quantities of Ammonia Orica
      requires EDC to acquire to be used by EDC for manufacturing AN for
      Orica.  The cost to EDC of such Ammonia shall be included in the
      amounts owed by Orica to EDC under Section 14.2.1 (a) of this
      Agreement.

            

    

     

    
      	
              3.4

            	
              From
      and after January 1, 2013, and subject to the terms and conditions hereof,
      Orica shall  supply to EDC, and EDC shall receive from Orica, up
      to 58,000 Tons of Ammonia from a supplier other than KNI at the times as
      required by EDC for conversion by EDC to meet Orica’s demand for AN
      hereunder.  EDC shall provide Orica with at least 30 days’
      advance notice of (a) the quantities of Ammonia it requires during the
      succeeding one-Month period to meet Orica’s demand for AN and (b) the
      required delivery dates of such Ammonia.  The parties shall
      cooperate in arranging such Ammonia deliveries.  Upon delivery
      Orica shall sell such Ammonia to EDC and EDC shall pay Orica for such
      Ammonia on or before the first day of the second Month succeeding the
      Month in which such Ammonia was delivered to EDC by Orica e.g. January
      Ammonia deliveries are paid for on March 1st. The
      cost to EDC of such Ammonia shall be included in the amounts owed by Orica
      to EDC under Section 14.2.1 (b) of this
  Agreement.”

            

    

     

    3.           Ammonia.     
Section 3.6 of the Agreement shall be deleted in its entirety and the following
shall be substituted therefor:

    
      
         

      

      
        2 

        
          

        

      

      
         

      

    

     

    
      	
              “3.6

            	
              If
      EDC is supplying Ammonia from its supplier, Orica shall reimburse EDC for
      its actual out of pocket delivered to the EDC Site cost of such Ammonia
      within the earlier of (a) eighteen (18) days from the Monday during the
      week KNI’s invoice is prepared under the Koch Ammonia Agreement and faxed
      to EDC, or (b) three (3) days before the date required by the payment
      terms in the Koch Ammonia Agreement. If the payment due date is not a
      Business Day, Orica shall make the payment on the next Business
      Day.”

            

    

     

    4.           United
Nations Convention.  A new Section 33.0 shall be added to the
Agreement as follows:

     

    
      	
              “33.0

            	
              UNITED
      NATIONS CONVENTION

            

    

     

    33.1           The
parties agree that the United Nations Convention on Contracts for the
International Sale of Goods does not apply to this Agreement and is expressly
excluded.”

     

    5.           Koch
Ammonia Agreement.  In Schedule “A” to the Agreement, the
definition of Koch Ammonia Agreement shall be deleted and the following shall be
substituted therefore:

     

    ““Koch
Ammonia Agreement” means the Anhydrous Ammonia Sales Agreement between
Koch Nitrogen International SARL (“KNI”)
and EDC dated entered into on December 3, 2008 and made effective January 1,
2009, which was subsequently amended by (a) that certain First Amendment to
Anhydrous Ammonia Sales Agreement, dated June 25, 2009 and (b) that certain
Second Amendment to Anhydrous Ammonia Sales Agreement dated February __,
2010;”

     

    6.           No
Other Changes.     Except as provided in this First
Amendment, all other terms of the Agreement shall remain in full force and
effect.

     

    IN WITNESS WHEREOF, the
parties have executed this First Amendment effective as of the date first
written above.

     

    The Common Seal
of

    ORICA INTERNATIONAL PTE
LTD.

    was affixed in accordance
with its

    Articles of
Association

     

    By:
_______________________________________

    Name:
____________________________________

    Title:
_____________________________________

    Date of Signature:
___________________________

     

    EL DORADO CHEMICAL
COMPANY

     

    By:
_______________________________________

    Name:
____________________________________

    Title:
_____________________________________

    Date of Signature:
___________________________

    
      
         

      

      
        3ex_1035.htm

Exhibit 10.35

    SECOND AMENDMENT
TO

    ANHYDROUS AMMONIA SALES
AGREEMENT*

    

    THIS SECOND AMENDMENT TO ANHYDROUS
AMMONIA SALES AGREEMENT (this “Second Amendment”) is dated February 23, 2010, by
and between Koch Nitrogen International Sàrl (“Seller”), and El Dorado Chemical
Company (“Buyer”).

    

    WHEREAS, Seller and Buyer are
parties to that certain Anhydrous Ammonia Sales Agreement dated December 3, 2008
with an effective date of January 1, 2009, as amended by the First Amendment to
Anhydrous Ammonia Sales Agreement dated June 25, 2009 (collectively, the
“Agreement”), and Buyer and Seller mutually desire to further amend the
Agreement as hereinafter provided.

    

    NOW, THEREFORE, in
consideration of the mutual covenants and premises herein set forth and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

    

    1.    DEFINITIONS.  Any
capitalized term not defined herein shall have the meaning given to such term in
the Agreement.

    

    2.    PRODUCT
REQUIREMENTS.  Effective March
1, 2010, the definition of Product Requirements in Section P of Article I shall
be deleted in its entirety and replaced with the following:

    

    
      	
               
      

            	
              “P.  Product
      Requirements shall mean the total Product purchased by Buyer for Buyer’s
      account for further processing at Buyer’s Facility, as adjusted to
      accommodate Buyer’s Railcar or Truck Product Requirements (as defined
      below).  Currently, the Product Requirements during a calendar
      year at Buyer’s Facility are approximately 165,000 to 175,000 short tons,
      which includes approximately 60,000 short tons used by Buyer to
      manufacture finished product on behalf of Orica International Pte Ltd. or
      its affiliates, but is exclusive of any tolling arrangements by Buyer with
      third parties.  Product Requirements shall not include
      approximately 60,000 additional short tons of anhydrous ammonia annually,
      for production of finished products for Orica International Pte Ltd. or
      its affiliates.  The 60,000 additional short tons referenced
      above shall be excluded from the Product Requirements during the Term of
      this Agreement, unless Buyer requests and Seller elects, at Seller’s sole
      option, to include such quantity in the Product
      Requirements.  Provided that Buyer has given Seller at least
      sixty (60) days prior written notice, Product Requirements shall not
      include Product supplied to Buyer’s Facility which shall be produced by
      Buyer or an Affiliate of Buyer and physically delivered to Buyer’s
      Facility.”

            

    

    

    3.    TERM.  Effective
March 1, 2010, Section A of Article II TERM shall be deleted in its entirety and
replaced with the following:

    

    
      	
               
      

            	
              “A.  Term.  The
      term of this Agreement (the “Term”) shall commence at 12:01 a.m. central
      time on January 1, 2009 and shall terminate at 11:59 p.m. on December 31,
      2012 (“Original 

            

    

     

    
      

      
        
          
             *INFORMATION
IN THIS DOCUMENT HAS BEEN OMITTED FROM THIS PUBLIC FILING PURSUANT TO A REQUEST
BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE
COMMISSION. THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECRETARY
OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES OF SUCH
REQUEST

          

          
             
1

            
              

            

          

          
             

          

        

      

      
Termination Date”) unless otherwise terminated earlier in
accordance with this Agreement or extended pursuant to Section B
below.”

    

    4.           QUANTITY.  Effective
March 1, 2010, Section A of Article III QUANTITY shall be deleted in its
entirety and replaced with the following:

    “A.  Quantity.  During
the Term, Buyer shall purchase from Seller one hundred percent (100%) of its
Product Requirements for Buyer’s Facility.  However, in the event
Buyer installs railcar or truck unloading capabilities at Buyer’s Facility, then
Buyer shall have the option to purchase up to twelve percent (12%) of Buyer’s
Product Requirements during a calendar year from a third party (“Railcar or
Truck Product Requirements”); provided such Railcar or Truck Product
Requirements must be delivered to Buyer’s Facility by railcar or
truck.  Railcar or Truck Product Requirements shall not exceed 4,000
short tons in any given calendar month.”

    

    5.           QUANTITY.  Effective
March 1, 2010, Section C of Article III QUANTITY, shall be deleted in its
entirety and replaced with the following:

    “C.  Measurement.  The
quantity of Product delivered hereunder to Buyer by the Ammonia Pipeline shall
be governed by the weights and measures taken by meters owned by the Ammonia
Pipeline at the Delivery Point pursuant to the Ammonia Pipeline
Tariff.  For truck or rail deliveries, the quantity of Product
delivered to Buyer shall be governed by the weights and measures taken as the
trucks or railcars are loaded at the KNC Facility, KNC Terminal, alternative
Seller supply sources, or at an alternative third party supply source and as
stated on the bill of lading.  The foregoing measurements of said
quantities shall be final and conclusive, unless proven to be in
error.  For purposes of clarity, Buyer further agrees that (i)
measurements taken from Ammonia Pipeline’s meter shall govern over measurements
taken from Buyer’s pipeline or other meter; and (ii) differences between the
Ammonia Pipeline’s meter and Buyer’s meter are expected and Buyer shall not
claim the Ammonia Pipeline’s meter is inaccurate solely because the measurement
taken from such meter is different from Buyer’s meter.  In no event
shall Seller be responsible for any difference in the metered quantity of
Product between the Ammonia Pipeline’s meter and Buyer’s pipeline
meter.”

    

    6.    ADDER.  Effective March
1, 2010, Section B of Article VI PRICE shall be deleted in its entirety and
replaced with the following:

    
      	
               
      

            	
              “B.
      Adder.  Adder
      shall equal *** per short ton.  However, if the Ammonia
      Pipeline Transportation Charge is modified as set forth in Article VI
      Section C. of the Agreement, the Parties agree to modify the Adder as set
      forth in Article VI Section C.”

            

    

    

    7.    NOTICES.  Effective March
1, 2010, Section A of Article VIII DELIVERY shall be deleted in its entirety and
replaced with the following:

    
      	
               
      

            	
              “A.  Notices.  Buyer
      shall provide Seller a delivery schedule ten (10) days prior to the Month
      of delivery (“Current Monthly Forecast”).  Subject to the
      remainder of this paragraph, Seller shall deliver Product to Buyer in
      daily quantities during the Month based on the Current Monthly
      Forecast.  Buyer will use commercially reasonable efforts to
      make the Current Monthly Forecast firm and to not change the Current
      Monthly Forecast.  Seller acknowledges, however, that Buyer's
      Current Monthly Forecasts are based on the forecast accuracy of Buyer's
      customers

            

    

    
      
         ***INDICATES
CERTAIN INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED FROM THIS PUBLIC
FILING PURSUANT TO A REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE
SECURITIES AND EXCHANGE COMMISSION. THE OMITTED INFORMATION HAS BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR
PURPOSES OF SUCH REQUEST

      

      
         
2

        
          

        

      

      
         

      

    

    and that
Buyer is unable to predict changes that may occur relative to certain customers’
demand.  Buyer may make corresponding changes to the delivery volumes
and schedule shown in the Current Monthly Forecast.  Seller shall use
commercially reasonable efforts to meet any such changes to Buyer’s delivery
schedule.  Buyer shall also provide Seller with weekly delivery
schedule updates.  In addition, if after Buyer has provided a Current
Monthly Forecast for a Month, and after the first day of such Month Buyer
decides to purchase Railcar or Truck Product Requirements for such Month, the
volume of such Railcar or Truck Product Requirements cannot change the
applicable Current Monthly Forecast unless Buyer has provided Seller with at
least 15 days prior written notice.”

    

    8.    CONFIDENTIALITY.
 Effective March 1, 2010, Article XVI. shall be deleted in its
entirety and replaced with the following:

    

    "Except
(i) as may be agreed to in writing on a case by case basis, (ii) for
communication between Buyer and Orica International Pte Ltd., (iii) as may be
necessary to perform its obligations herein, or (iv) as required by law, both
Parties shall maintain in confidence all information concerning costs and prices
to be disclosed in connection with each other's performance under this
Agreement.  Such information shall be disclosed to no one other than
affiliates, officers and other employees who need to know the same in connection
with performance under this Agreement, and such affiliates, officers and other
employees shall be advised of the confidential nature of such information, or
when disclosure is required by law.  The Parties shall take all proper
precautions to prevent such information from being acquired by any unauthorized
person or entity."

    

    9.    RATIFICATION
OF AGREEMENT.  Except as expressly amended herein, the terms,
covenants and conditions of the Agreement shall remain in full force and effect
without modification or amendment, and the parties hereto ratify and reaffirm
the same in its entirety.

    

    10.              MISCELLANEOUS.  This
Second Amendment shall be governed by and construed in accordance with the
governing law set forth in the Agreement, without regard to the conflicts of
laws principles.  In the event that the terms of the Agreement
conflict or are inconsistent with those of this Second Amendment, the terms of
this Second Amendment shall govern.  The provisions of this Second
Amendment shall be binding upon, and shall inure to the benefit of, the parties
hereto and each of their respective representatives, successors, and
assigns.  This Second Amendment may be executed in counterparts, each
of which shall be deemed an original and both of which together shall constitute
one and the same agreement.

    
      
         

      

      
        3 

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
parties have caused this Second Amendment to be effective on the day and year
first written above.

    

    

    

    Koch
Nitrogen International Sàrl             El Dorado Chemical
Company

    

    By:
/s/ C. Walker
Hess                 By:  /s/Tony M.
Shelby 

    Name:  C.
Walker Hess                  Name:  Tony M.
Shelby

    Title:  Managing
Director                  
Title:  Vice President

    
      
         

      

      
        4

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