Document:

Styrene Sales Contract

 Exhibit 10.39 
  
 CONFIDENTIAL TREATMENT REQUESTED 
 WITH RESPECT TO CERTAIN PORTIONS HEREOF 
 DENOTED WITH “***” 
  
 CONFIDENTIAL 
  
 Control No. 7553799 
  

					
	

	  	 STYRENE SALES CONTRACT
 Dated AUGUST 30, 1999
	  	 

  
 1. PARTIES. 
  

			
	Shell:	 	SHELL CHEMICAL COMPANY, for itself and as agent for Shell Oil Company (“Seller”), P.O. Box 2463, Houston, TX 77252-2463, Facsimile no. 713-241-6465.
		
	Buyer:	 	SHELL ELASTOMERS LLC, P.O. Box 2463, Houston, TX 77252-2463, Facsimile No.713-241-6465.

  
 2. PRODUCT. Styrene meeting
Specifications shown in attached Exhibit A. 
  
 During the Contract period, Buyer
will purchase the following quantities of Product: 
  

					
	 CONTRACT YEAR

	 	 ESTIMATED ANNUAL QUANTITY

	 	 FOB POINT

	1999	 	[***] [Confidential Treatment Required]	 	On consignment, See Article 6

  
 2.1 PRODUCT
QUALITY. 
  
 Styrene, (hereinafter referred to as
“Product”) supplied and maintained on consignment at Belpre in accordance with Article 6, and will be in accordance with specifications set forth in Exhibit A. Seller will facsimile to the Buyer prior to each shipment a Certificate of
Analysis (COA). Seller will provide Buyer six (6) months advanced notification if there is a change in the manufacturing process that will affect the material specifications of Product provided to the Buyer. Product produced by Seller in different
plants is viewed as coming from different supply sources and requires separate qualification. Product to be shipped for the Seller from third parties must be qualified and approved by the Buyer and requires separate qualification prior to shipment.

  
 Seller must obtain approval prior to shipment of any material
that does not meet Buyer’s specifications. In the event that Seller delivers Product failing to comply with the specifications set out in Exhibit A, Buyer will be entitled at its option to i) require Seller to replace such defective Product at
a price not to exceed the invoice value or ii) to reimburse the invoice value of the defective Product. Seller will provide normal and customary technical support regarding material specifications and material property issues. 
  
 If Buyer has cause to complain that the quality of Product delivered to it
pursuant to the Contract does not comply with the specification set out in Exhibit A, Buyer will give written notice specifying the nature of its complaint and the parties will promptly meet so as to resolve that complaint. In absence of any
agreement to resolve the complaint the parties will appoint at their joint cost a mutually acceptable independent surveyor to examine whether the quality of Product as delivered complied with the 

  

	

 
specifications set forth in Exhibit A. In the absence of any written notice from Buyer to Seller within 30 days after delivery of the Product, the Product
shall be deemed to have been delivered and accepted by Buyer in a satisfactory condition and in all respects in accordance with the specifications and Seller shall have no liability to Buyer with respect to that delivery. 
  
 3. PERIOD. 
  
 The period of this Sales Contract will begin on August 1, 1999 and end on December 31, 2005, but will continue thereafter, subject to
termination effective on such ending data, or at any subsequent time, by either Party giving the other at least twelve (12) months’ prior written notice at any time for any reason, provided that such termination will not take effect before
December 31, 2005. 
  
 4. PRICE. 
  
 The Styrene monomer price will be based on the schedule in Exhibit B.

  
 4.1 COMPETITIVE OFFERS. 
  
 If Buyer gives satisfactory evidence that it can purchase a product of like
quality and quantity [***] [Confidential Treatment Required] at a lower price and under terms and conditions similar to those of this Contract and Seller elects not to meet the lower price, all quantities actually purchased by Buyer at the
lower price will be deducted from the applicable remaining quantity obligation. If Seller elects to meet the lower price, Seller may withdraw its lower price on notice or immediately upon termination of the competitive lower price. If Seller is
prevented by law, regulation or governmental action from increasing or continuing any price already in effect under this Contract, Seller may terminate this Contract on thirty (30) days notice 
  
 4.2 LOGISTICS AND FREIGHT. Freight Terms are Barge Freight delivered
to Belpre, Ohio plant, Freight charged to Buyer will be invoiced at [***]  [Confidential Treatment Required]. 
  
 4.3 TAX. 
  
 Any tax (other than on income), duty or other governmental charge now or hereafter imposed on the Product or on any raw material used in manufacturing the
Product (or on Seller, or required to be paid or collected by Seller, by reason of the manufacture, transportation, sale or use of such Product or raw material) will be paid by Buyer in addition to the price. 
  
 4.4 Right to Audit 
  
 Buyer, at his cost, upon thirty (30) days’ prior written notice to
Seller, may audit via an independent third party to be agreed upon by the Seller and Buyer the pertinent books and records of Seller when reasonably necessary to verify the basis for the price mechanism. Seller shall keep the pertinent books and
records necessary to verify the basis for the price mechanism for a period of three years from the date of each order under this Contract. 
  
 5. QUANTITY NOMINATIONS/LIMITATIONS 
  
 5.1 Scheduling and planning 
  
 The quantity of Product shall be agreed to annually between Seller and Buyer, by October 1 of the previous year (“Agreed Quantity”). 

 
  

 5.2 Five year production estimate 
  
 Buyer shall advise Seller by October 1 of each year of its best estimate of the annual requirements of Product in the
nearest following five (5) years. 
  
 5.3 Three month rolling
forecast 
  
 Subject to Clauses 5.1 and 5.2 Buyer will
indicate to Seller in writing its monthly requirement on the basis of a rolling three months program. This program will be revised and updated on a monthly basis and will be made available to Seller latest five working days before the beginning of
the first month on the three months program. Seller will take all reasonable efforts to supply Product based on Buyer’s forecast. 
  
 6. SUPPLIER MANAGED INVENTORY AGREEMENT FOR STYRENE, hereinafter referred to as “Consigned Product”. 
  
 A. SHIPMENTS - TITLE. Notwithstanding any provisions
of this Contract to the contrary, shipments of Consigned Product will be made by Seller on consignment into Buyer’s storage at its facilities at Belpre, Ohio and Seller’s quantity determination will govern unless proven in error. Should
the quantity determination by Buyer after receipt differ by an amount greater than one-half of one percent (0.5%) versus the quantity indicated on Seller’s bill of lading, it is Buyer’s responsibility to petition Seller for adjustment in
writing within thirty (30) days of receipt. Buyer will ensure the prompt unloading of each shipment of Consigned Product and will be responsible for any demurrage or detention charges. Seller will retain title to all Consigned Product until any of
the following occurs, at which time Buyer will be deemed to have purchased the Consigned Product involved: 
  

	 	1.	Buyer withdraws it from storage; 

  

	 	2.	the Consigned Product is lost, destroyed or damaged for any cause while in Buyer’s custody, regardless of fault, effective the date of such loss, destruction or damage; or

  

	 	3.	a period of 120 consecutive days elapses during which no withdrawals of Consigned Product are made by Buyer (in which case all remaining Consigned Product in storage at Buyer’s
location will be deemed purchased by Buyer). 

  
 Seller agrees to maintain a minimum [***] [Confidential Treatment Requested] as “Safety Stock” 
  
 B. STORAGE REQUIREMENTS. Buyer agrees to permit physical inspection of the storage location and product handling facilities by
Seller’s representative or agents prior to the first consignment shipment. Seller has the right, upon reasonable notice, to verify the quantity and quality of Consigned Product hereunder 
  

 C. FINANCING STATEMENT. Upon request by Seller, Buyer will execute and return to
Seller for Seller’s filing, a Uniform Commercial Code Financing Statement - Form UCC-1, for all Consigned Product delivered hereunder. 
  
 D. REPORTS. On the first work day of each calendar month, Seller will ascertain withdrawals of all Consigned Product during the
previous month via the Lotus Notes tool, SIMON. Buyer will pay for the amount of Consigned Product used or otherwise deemed purchased during past the calendar month as found on the “Reconciliation” screen and in the cumulative
“Calculated” column for the past calendar month. 
  
 Buyer is responsible for keeping SIMON accurate by recording complete information as to all receipts, withdrawals and handling of Consigned Product. Buyer will provide a physical inventory quantity on a monthly basis
and record in SIMON. Since SIMON data will also serve as the basis for invoice quantities (i.e., the quantity that the Buyer is obligated to pay upon), Seller will maintain the responsibility of verifying the inventory activity and will notify Buyer
of exceptions or rejection of data reported on the “Reconciliation” screen no later than the following working day, following the Month End Accounting Closing Date, defined as the last day each calendar month. Upon prior reasonable notice,
Seller will have the right to verify SIMON data at any time during Buyer’s normal business hours by physical inspection of Buyer’s Consigned Product inventory or to require any or all of Buyer’s monthly reports to be certified by a
responsible officer of Buyer. 
  
 E.
PAYMENT - TERMS. Payment is due in Seller’s bank or financial institution via EFT-CTX (Electronic Funds Transfer or Drafting) [***]  [Confidential Treatment Required] from Month End Accounting Closing Date. Any quantity of Consigned
Product in Buyer’s custody at termination of this Contract which has not previously been purchased by Buyer will be considered to have been purchased by Buyer at the price then in effect on that termination date except where Seller elects to
have the Consigned Product returned to it, having Buyer load the same into railcar or truck at Buyer’s facilities at Buyer’s expense. Seller will bear the transportation costs for any such returned Consigned Product from Buyer’s
facility to Seller’s destination. 
  
 F.
WEBSITE ACCESS AND USE. Seller shall maintain a website (the “Website”) which will provide Buyer access to the Internet Lotus Notes website tool SIMON. Seller hereby grants to Buyer a nonexclusive, nontransferable, and revocable
license to use SIMON at the Website for Buyer’s own internal use. Buyer may make reports, data, and print any output of SIMON. Any other rights not expressly granted to Buyer are reserved to Seller. 
  
 Access to the Website and use of the Software requires concomitant use of an
Internet browser commercially available by third parties and access to the Internet. Buyer shall bear all responsibility for obtaining the necessary rights for use and installation thereof. 
  
 SELLER REPRESENTS AND WARRANTS ONLY THAT IT HAS THE RIGHT TO MAKE THE
GRANTS SET FORTH ABOVE BUT MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES, EITHER EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO THE PERFORMANCE, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF THE WEBSITE OR
SOFTWARE OR ANY INFORMATION CONTAINED THEREIN. THE SOFTWARE AND ANY ASSOCIATED SERVICES (e.g., INSTALLATION AND UPGRADING OF THE SOFTWARE) ARE PROVIDED TO BUYER HEREUNDER ON AN “AS IS” BASIS WITHOUT ANY WARRANTIES, EXPRESS OR IMPLIED,

  

 
INCLUDING, BUT NOT LIMITED TO ANY WARRANTY CONCERNING THE RESULTS OR EFFECTS OBTAINED THROUGH THE USE OF THE SOFTWARE OR THAT IT WAS FIT FOR ANY USE
INTENDED, OR CAN BE USED WITHOUT INFRINGING THE PATENT RIGHTS, COPYRIGHTS, OR OTHER INTELLECTUAL PROPERTY OF THIRD PARTIES. IN NO EVENT SHALL SELLER BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES RESULTING IN ANY WAY FROM
ANY USE OF THE WEBSITE OR THE SOFTWARE, INCLUDING, WITHOUT LIMITATION, LOSS PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON BUYER’S INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF SELLER HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGE. 
  
 Seller shall not be responsible for, and
shall have no obligation to Buyer with respect to, any claim by any other person arising from, or attributable to, Buyer’s use of the Website or SIMON. 
  
 Seller’s cumulative liability to Buyer for any claims arising from, or in any way related to, this Agreement, the Website or date contained thereon,
or Simon or data contained therein, whether based on contract, tort, warranty, strict liability or other form of action, shall not exceed the total amount of any license fee(s) paid by Buyer to Seller hereunder. This limitation of liability is
intended to apply without regard to whether other provisions of this Agreement have been breached or have proven ineffective. Seller shall have no liability for loss of data or documentation, it being understood that Buyer is responsible for
reasonable backup precautions. 
  
 Shipments of Products
hereunder will be in accordance with the schedules mutually agreeable to both Parties with all reasonable efforts made to ship and receive Product at as even a rate over each year as practicable. 
  
 7. WARRANTIES. 
  
 Seller warrants that each Product will meet specifications designated as such in this Contract or in Shell’s applicable publications.
Shell warrants that it will comply with all applicable laws and governmental rules, regulations and orders. [***] [Confidential Treatment Requested] 
  
 8. EXCUSES FOR NONPERFORMANCE. 
  
 Either Seller or Buyer will be excused from the obligations of this Contract to the extent that performance is delayed or prevented by any circumstance (except financial)
reasonably beyond its control or by fire, explosion, mechanical breakdown, strikes or other labor trouble, plant shutdown, unavailability of or interference with the usual means of transporting the Product or compliance with any law, regulation,
order, recommendation or request of any governmental authority. In addition, Seller will be so excused [***] [Confidential Treatment Requested]. 
  
 9. SAFETY AND HEALTH COMMUNICATIONS. 
  
 Seller will furnish to Buyer Material Safety Data Sheets which include health, safety and other hazard communication information on Product consistent with the
Occupational Safety and Health Administration’s 

  

 
Hazard Communications Standard. Seller will also furnish other health or safety information as available. Buyer will disseminate appropriate health and
safety information to all persons Buyer foresees may be exposed to Product (including but not limited to Buyer’s employees, contractors and customers). If Product is further processed, mixed or incorporated into another product, Buyer will
likewise disseminate appropriate health and safety information to all persons Buyer foresees may be exposed. 
  
 10. LIABILITIES - CLAIMS - INDEMNIFICATION. Buyer will indemnify Shell against any liability (whether strict or otherwise) for any claim, loss or expense on account of any injury, disease or death of persons
(including Buyer’s employees) or damage to property (including Buyer’s) arising out of: 
  
 A. Buyer’s unloading, storage, handling, sale or use of the Product (except to the extent caused by Seller’s negligence); 
  
 and/or 
  
 B. Any failure by Buyer to disseminate safety and health information as provided in Article 8, SAFETY AND HEALTH COMMUNICATIONS; 
  
 and these indemnity obligations of Buyer will survive termination of this Contract. Shell or
Buyer will not have any liability to the others for any claim (except for indebtedness of Buyer to Seller, or Buyer’s failure to perform its purchase obligations hereunder) arising out of or in connection with this Contract unless claimant
gives the other Party notice of the claim, setting forth fully the facts on which it is based, within ninety (90) days of the date such facts were discovered or reasonably should have been discovered. Shell’s liability for defective or
nonconforming Product, whether or not based on negligence, will not exceed the purchase price of the Product involved in the claim. Seller will indemnify Buyer for any claim, loss or other expense to the extent of Seller’s negligence in the
handling or manufacture of the product, except to the extent caused by Buyer’s negligence. NO PARTY WILL BE LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES. 
  
 11. REMEDIES 
  
 If Buyer fails to pay any indebtedness to Seller in accordance with the terms for such indebtedness (whether or not under this Contract), Seller may, in addition to any
other remedies, suspend shipments, change terms of payment or terminate this Contract by notices to Buyer. Buyer’s obligation to perform will not be limited by any previous waiver by Seller. In the event that Buyer breaches any term or
condition of this Contract, Buyer shall reimburse Shell for all costs and expenses related to Shell’s pursuit of payment for any claim in any way arising from such breach, including but not limited to reasonable attorneys’ fees.

  
 12. NOTICES. 
  
 Notice by either Shell or Buyer will be made only by facsimile or similar electronic
transmission, effective at the time sent to the number set out in Article I, PARTIES, with confirmation, or by letter or telegram addressed to the other Party at its address in Article I and will be considered given as of the time it is sent by
facsimile transmission or deposited with the U.S. Postal Service or the telegraph company, postage or charges prepaid. 
  
 13. ASSIGNABILITY. The Buyer shall be entitled to assign this Agreement to any Affiliate that acquires all or substantially all of its property, without the prior
written consent thereto of the Seller. Any assignment of the Agreement by the Buyer to a third party will require the consent of the Seller, such consent not to be unreasonably withheld or delayed. 
  
 Seller shall be entitled to assign this Agreement to any Affiliate or third
party without the prior written consent thereto of the Buyer. 
  
 “Affiliate” means in relation to Shell, N.V. Koninklijke Nederlandsche Petroleum Maatschappij, The “ Shell” Transport and Trading Company, p.l.c. (together the “Parent Companies”) or any entity other than

  

 
the Parties which is directly or indirectly affiliated with either or both of the Parent Companies. In relation to the Buyer, “Affiliate” means any
entity which is directly or indirectly affiliated with Buyer. In relation to any third party successors of the Parties, “Affiliate” means any entity which is directly or indirectly affiliated with that Third Party successor. 
  
 For the purposes of this definition, a particular entity is: 
  

	 	(i)	directly affiliated with another entity or entities if the latter hold(s) or otherwise control(s) by proxy or agreement shares or other ownership interests carrying fifty percent
(50%) or more of the votes exercisable at a general shareholders meeting (or its equivalent) of the entity in question; and 

  

	 	(ii)	indirectly affiliated with an entity or entities (the “parent or parents”) if a series of entities can be specified, beginning with their parent or parents and ending with
the particular entity, so related that each entity or entities in the series, except the parent or parents, is directly affiliated with one or more of the entities earlier in the series. 

  
 14. GOVERNING LAW. 
  
 THIS CONTRACT WILL BE INTERPRETED AND THE RIGHTS, OBLIGATIONS AND LIABILITIES OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS. 
  
 ENTIRETY AND RELEASE. This Contract, as of the beginning date
of its Period, contains the complete and exclusive agreement of Shell and Buyer concerning the Product identified in Article 2, PRODUCT, merges and supersedes all prior understandings and representations (oral or written) and terminates all prior
contracts between Shell and Buyer concerning the same product. Except for any indebtedness or indemnity obligation of Buyer to Shell, each party releases the other from all claims arising in connection with any such prior contract. Neither this
Contract nor any agreement supplementing or amending this Contract (including any purchase order or other document issued by Buyer) will be binding unless signed by the Parties, and performance prior to such execution will not constitute a waiver of
this requirement. 
  
 EFFECTIVE ONLY if signed by Buyer and returned within thirty
(30) days of the contract date, and then signed by Seller. Any shipment of Product made during the period of this Contract, but prior to execution, will be deemed to have been made under the terms hereof. 
  

									
	SHELL ELASTOMERS LLC	 	 	 	SHELL CHEMICAL COMPANY
					
	 By
	 	/s/    RAYMOND COLLINS	 	 	 	 By
	 	/s/    Illegible
	 Title
	 	Attorney-In-Fact	 	 	 	 Title
	 	Business Manager
	 Date
	 	10-1-99	 	 	 	 Date
	 	4/12/2000

  

 EXHIBIT A 
  

Typical Specification 
  
 Styrene Monomer 
  
 Shell Chemicals Canada Ltd. manufactures styrene at its Scotford Alberta petrochemical complex. Shell Chemicals Canada’s styrene monomer is an aromatic hydrocarbon with an unsaturated aliphatic side chain. It is
produced via the dehydrogenation of ethylbenzene. Ethylbenzene is the result of the alkylation of benzene with ethylene. Styrene monomer is supplied as a colourless liquid. It is inhibited with para-Tertiary Butyl Catechol (TBC). 
  

			
	 Property

	 	 Test Method

	[***] [Confidential Treatment Required]

  
 The information in this publication is
accurate to the best of our knowledge at the time of printing. The data is subject to change without notice and should be verified prior to product use. 
  
 STYRENE BUSINESS CENTRE 
  

  
 Styrene Material Cost
Schedule 
 Exhibit B 
  
 PRICE. The styrene monomer price will be based on [***]  [Confidential Treatment Required]. 
  

  
 EXHIBIT C 

 
 BARGE DELIVERIES TO BUYER’S FACILITY 
  

	 	a.	Seller shall provide Buyer notification(via fax, radio, phone, e-mail) as deemed necessary by the Seller or when Buyer requests such information prior to arrival of the barge at
Neales Fleet in Vania, WV. 

  

	 	b.	When the barge has arrived at Neales Fleet and is ready to discharge Styrene, the barge operator shall give the Buyer notice of arrival and readiness by telegraph, radio or phone

  

	 	c.	Buyer shall provide a discharging berth at Buyer’s Facility, free of wharfage or dockage charges, to which a barge may safely proceed, at which it may safely lie and from which
it may safely depart. 

  

	 	d.	Laytime shall commence when notice of arrival is given and shall end when the cargo on the last barge has been discharged and all hoses are disconnected. Unless otherwise notified,
allowed laytime permitted Buyer for discharging without charge shall be four (4) hours per 1,000,000 pounds, or thirty six (36) hours per barge, whichever is greater. 

  

	 	e.	If required, Seller shall provide a licensed offloading tankerman (selected and approved by the Buyer) to secure the shore offloading hoist to the barge, and the Seller shall bear
the charges. Seller shall Pay reasonable shifting and fleeting charges. If the offloading terminal requires tug standby during the offloading operation solely because the physical structure of the barge prevents the barge from being safely
accommodated at the berth, any additional charges for this service shall be borne by Seller. 

  

	 	f.	The quantity and quality of Product shall be determined by an independent licensed inspector provided by Seller at loading port, and an independent license inspector provided by
Buyer at discharge port. Inspection fees at load and discharge shall be shared equally by the Buyer and Seller.Agreement for common reception and storage of Styrene Monomer

 Exhibit 10.40 
  
 CONFIDENTIAL TREATMENT REQUESTED 
 WITH RESPECT TO CERTAIN PORTIONS HEREOF 
 DENOTED WITH “***” 
  
 THIS AGREEMENT is made this 31st day of January, 2000 between:- 
  

	(1)	Shell Hydrocarbures et Derives S.A.S., a company incorporated under the laws of France with its principal office at 89, Boulevard Franklin Roosevelt, 92500 Rucil Malmaison, France
(“the EPS Asset Owner”); and 

  

	(2)	Kraton Polymers France S.A.S., a company incorporated under the laws of France with its principal office at 89, Boulevard Franklin Roosevelt, 92500 Rueil Malmaison, France
(“Kraton Polymers”). 

  
 RECITALS: 
  

	(A)	Kraton Polymers owns the Elastomers Plants 

  

	(B)	The EPS Asset Owner owns the Expandable Polystyrene Plant; 

  

	(C)	Each Party needs SM for its Plant; 

  

	(D)	The jetty for deliveries of SM by ship to the Site and the tanks and pipelines on the Site dedicated for the reception and storage of SM are owned by Shell Chimie;

  

	(E)	Under the SUMF Agreements Shell Chimie has agreed to provide the EPS Asset Owner and Kraton Polymers with the services necessary to receive, store and deliver all SM shipped to the
Site for the Plants; 

  

	(F)	Each Party has entered into a SM supply agreement with SNC for the supply of SM from Moerdijk Plant in consequence of which a uniform quality and source of the SM delivered to the
Site for each Plant and the minimum quantity held for each Plant are assured; 

  

	(G)	The Parties acknowledge that in view of the common reception and storage facilities on the Site for 8M it is in the interests of both Parties to require all SM supplied to the Site
to have the same consistency, quality and source; 

  

	(H)	The Parties recognise the need to ensure a common plant source of SM and that changing the source is not to be done other than for an extended period and subject to the mutual
agreement of the Parties; and 

  

	(I)	The Parties wish to enter into an agreement regulating their procurement of SM from any supplier other than SNC from the Moerdijk Plant to ensure consistency as to the quality of
the SM on the Site at all times 

  

 IT IS AGREED as follows: 
  

	1.	Definitions and Interpretation 

  

	1.1	In this Agreement where the context to admits, the following words and expressions shall have the following meanings: 

  

			
	“Affiliate”	  	means, with respect to any Person, any Person which, directly or indirectly controls, is controlled by, or is under common control with, the specified Person and for purposes of this
definition, “control” as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management of such Person, whether through ownership of voting securities or
otherwise;
		
	“Agreement”	  	means this SM Code of Conduct Agreement and its Appendices;
		
	“Alternative Supplier”	  	means a manufacturer of SM other than SNC from its Moerdijk Plant whom the Issuing Party wishes to supply SM to its Plant pursuant to Clause 3.1;
		
	“Amending Notice”	  	means a notice given by the Issuing Party pursuant to Clause 3.2 amending the specification for the SM set out in or attached to the Proposal Notice;
		
	“Elastomers plants”	  	means Krayton Polymers’ Kraton D and Kraton C facilities on the Site;
		
	 “Expandable
 Polystyrene Plant”
	  	means the expandable polystyrene plant on the Site;
		
	“Issuing Party”	  	means the Party which by reason of the occurrence of one of the events set out in Clause 2.1 wishes to procure SM other than from the Moerdijk Plant;

  

			
	“Moerdijk Plant”	  	means SNC’s SM plant at Moerdijk in The Netherlands;
		
	“Party” or “Parties”	  	 means Kraton Polymers and/or the EPS Asset Owner
 together with their successors and permitted assigns;

		
	“Person”	  	means any individual, firm, corporation, partnership whether incorporated or not, limited liability company, trust, foundation, estate, association, joint venture, government, state or agency
of the state or other entity, whether foreign or domestic;
		
	“Plant”	  	means the Elastomers Plants or the Expandable Polystyrene Plant as the context requires;
		
	“Proposal Notice”	  	means the written notice by the Issuing Party to the Receiving Party prescribed in Clause 3.1;
		
	“Receiving Party”	  	means the Party to whom a Proposal Notice is given in accordance with Clause 3.1;
		
	“Shell Chimie”	  	means Shell Chimie S.A., a company incorporated under the laws of France with its principal office at 89, Boulevard Franklin Roosevelt, 92500 Rueil Malmaison, France;
		
	“Site”	  	means the petrochemicals site in Berre, France currently owned and operated by Shell Chimie;
		
	“SM”	  	means styrene monomer; 
		
	“SNC”	  	means Shell Nederland Chemie B.V.; and
		
	“SUMF Agreements”	  	means the two Site Services, Utilities, Materials and Facilities Agreements, one of the two Agreements having been entered between Shell Chimie and a Party relating to the
Site

  

	1.2	References in this Agreement to clauses and appendices are to clauses in and appendices to this Agreement. The recitals and appendices to this Agreement form part of this Agreement.

  

	1.3	Headings are inserted for convenience only and shall not affect the construction of this Agreement. 

  

	1.4	The masculine gender shall include the feminine and neuter and the singular number shall include the plural and vice versa. 

  

	2.	Objective and Scope 

  

	2.1	This Agreement shall govern the obligations of each Party in respect of the procurement and handling on the Site of SM for either Plant if: 

  

	 	(a)	either Party’s SM Supply Agreement with SNC for supply from SNC’s Moerdijk Plant should terminate; or 

  

	 	(b)	either Party seeks to exercise any right permitted under its supply agreement with SNC to purchase SM other than from SNC’s Moerdijk Plant; and 

  

	 	(c)	the Party concerned wishes to purchase SM from an Alternative Supplier. 

  

	3.	Alternative Suppliers 

  

	3.1	 Upon the occurrence of any of the events set out in Clause 2.1 the Issuing Party hereby undertakes to the Receiving Party that, before it enters into a contract for
the purchase and supply of SM for its Plant from an Alternative Supplier, it will give a Proposal Notice to the Receiving Party of its intention to enter into such a contract and obtain the Receiving Party’s written consent. The Proposal Notice
shall provide details of the Alternative Supplier and the name and location of the plant of manufacture of the SM and shall contain or have attached the specifications proposed for the alternative supply following the format in Appendix 2. No later
than six (6) months after receipt of the Proposal Notice (unless otherwise agreed by the Parties) the Receiving Party shall reply in writing to the Issuing Party stating whether or not it consents to the Issuing Party’s proposal, which consent
shall be given subject to the results of an evaluation by the Receiving Party of a sample of the SM proposed to be procured and such consent is not to be unreasonably withheld. Failure to reply within the allotted time shall be deemed to be consent
to the proposal. In determining its response to such Proposal Notice the Receiving Party’s decision shall be reached having regard solely to the need to ensure that the SM that is to be supplied by the Alternative Supplier is of such quality
and performance as will meet the required SM specification as set out in Appendix I 

  

	 	 
and will whether alone or when co-mingled with existing SM in the storage tanks at Berre enable the manufacture by the Receiving Party of end products
providing good performance without disruption to production. Any reply to the Proposal Notice refusing consent to the proposed alternative supply shall set out the reasons for such refusal. 

  
 The Issuing Party shall arrange for the supply to the Receiving Party of
sample material at the Receiving Party’s cost (such cost to be market related). The Receiving Party shall evaluate the sample material and shall make its decision within six months of receipt of the sample material. 
  
 The Receiving Party is under no obligation to terminate its existing SM
supply contract in contravention of the termination provisions of that contract. 
  

	3.2	On receipt from the Receiving Party of a positive reply or if the Receiving Party shall be deemed to have consented to the Issuing Party’s proposal, as provided for above, the
Issuing Party undertakes: 

  
 (a) to give written
notice to Shell Chimie that it has procured for delivery at Berre the supply of SM from as Alternative Supplier, to which notice shall be annexed copies of the Proposal Notice and of the Receiving Party’s written consent or the Issuing
Party’s statement of the facts justifying it to have deemed the Receiving Party as having consented to the proposal in accordance with Clause 3.1 hereof: 
  

(b) in respect of the first and any subsequent order from the Alternative Supplier named in the Proposal Notice, to place any order for the supply from
the Alternative Supplier of SM only having the specifications set out in or attached to the Proposal Notice. If either the Issuing Party or the Alternative Supplier should at any time subsequent to the issue of the Proposal Notice wish to amend the
SM specification the Issuing Party shall submit to the Receiving Party an Amending Notice. The procedure for submission of the Amending Notice and for the Receiving Party replying to such Amending Notice and for the sampling of material the subject
of an Amending Notice shall be identical to the procedures set out in respect of the Proposal Notice and the SM the subject of such notice in Article 3.1 
  

	3.3	The Issuing Party shall procure that the Alternative Supplier shall immediately upon loading send to each of Shell Chimie and the Receiving Party by electronic mail, facsimile or
express mail a certificate of analysis in respect of any consignment of SM to be shipped to the Site. The Issuing Party shall further procure that upon the arrival of any ship at the Port de la Pointa jetty adjacent to the Site carrying SM from an
Alternative Supplier the Receiving Party and Shell Chimie shall receive a sample of the SM from the ship prior to its discharge for the purpose of analysis. In the event that upon analysis the sample of the SM so supplied should fail to meet the
specifications attached to the relevant Proposal Notice (“the Specifications”) the Receiving Party shall be entitled within a period of 72 hours from delivery of the sample to give written notice to Shell Chimie instructing Shell Chimie to
refuse authority for the ship to discharge the SM (“an Objection Notice”). If the Receiving Party should be the EPS Asset Owner it shall be further entitled within the same timescale to give such an Objection Notice to Shell Chimie for any
other valid business reason. Failure by the Receiving Party to give to Shell Chimie an Objection Notice within the timescale shall be deemed to be agreement by the Receiving Party that the SM complies with the Specifications and authority by the
Receiving Party to Shell Chimie to discharge the ship and receive the SM into the pipelines and tanks on the Site for ultimate distribution to the Parties. The Issuing Party shall, to the fullest extent permitted by law, indemnify, defend and hold
harmless the Receiving Party from and against all and any claims, liabilities, costs, damages and expenses which may be brought against the Receiving Party or which the Receiving Party may incur in any way attributable to a refusal by Shell Chimie
of authority to discharge resulting from an Objection Notice given to Shell Chimie by the Receiving Party in accordance with these provisions. 

  

	4.	Disputes 

  

	4.1	Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be exclusively settled as follows:

  
 (A) the Parties shall discuss the dispute in an
attempt to reach an amicable solution; 
  
 (B) if such attempt
fails within thirty (30) days from the first modification by one Party to the other Party that a dispute exists (or such shorter period as is reasonable under the circumstances), the matter shall be submitted by the Managing Director 

  

 
or equivalent of either Party in writing to the Managing Director or equivalent of the other Party, who shall consult together with the goal of attaining a
solution satisfactory to both Parties within thirty (30) days; and 
  
 (C) if the Parties should fail to resolve a dispute through the procedures above, the unresolved dispute shall be finally resolved under the Rules of Conciliation and Arbitration of the International Chamber of Commerce in Paris by three
(3) arbitrators appointed in accordance with those rules. The place of arbitration shall be Marseilles and the language shall be English. 
  

	5.	Confidentiality 

  

	5.1	Subject to clause 5.2 and 5.3, each Party shall treat as strictly confidential (and shall not disclose) all information received or obtained as a result of entering into or
performing this Agreement, which relates to: 

  

	 	(a)	the provisions of this Agreement; 

  

	 	(b)	the negotiations relating to this Agreement; 

  

	 	(c)	the performance of this Agreement; 

  

	 	(d)	the other Party or any aspect of its business or operations; or 

  

	 	(e)	the subject matter of this Agreement; 

  

	5.2	Either Party may disclose information which would otherwise be confidential if and to the extent : 

  

	 	(a)	required by law of any jurisdiction to which the disclosure is subject; 

  

	 	(b)	required by any securities exchange or agency to which either Party is subject, wherever situated, whether or not the requirement has the force of law; 

  

	 	(c)	disclosed on a strictly confidential basis to the professional advisers or auditors of the Party or to any actual or potential bankers or financiers of that Party;

  

	 	(d)	disclosed on a strictly confidential basis to bona fide potential purchasers of a proprietary interest in the Plant or the Site; 

  

	 	(e)	disclosed to the corporate shareholders of the Party; 

  

	 	(f)	that the information has come into the public domain through no fault of that Party; or 

  

	 	(g)	that the other Party has given prior written approval to such disclosure. 

  

	5.3	Clauses 5.1 and 5.2 shall continue to apply for 5 years after the termination of this Agreement. 

  

	6.	Assignment 

  

	6.1	Upon the sale of either Plant, the seller of the Plant shall assign this Agreement to its purchaser, such assignment to take affect immediately upon the completion of the sale and
the other Party to this Agreement expressly consents to such assignment. 

  

	6.2	Either Party may assign or otherwise transfer any or all of its rights under this Agreement to any of its Affiliates provided that such Affiliate shall agree in writing with the
other Party to assume the assigning Party’s obligations under this Agreement. 

  

	7.	Term and Termination 

  
 This Agreement shall become effective on the date of this Agreement and shall remain in force until either Party or its assignee, as permitted under
Clause 6 of this Agreement, should cease operation of its respective Plant on the Site or until the tanks and pipelines on the Site dedicated for the reception and storage of SM for use by the EPS Asset Owner are different from those receiving and
storing SM for use by Kraton Polymers. 
  

	8.	Severability 

  
 If any of the provisions of this Agreement is or becomes illegal, void or unenforceable under the governing law, such provision shall be deemed to be
deleted from this Agreement and the remaining provisions of this Agreement shall remain and continue in full force and effect. 
  

	9.	Governing Law 

  
 This Agreement shall be governed by and construed in accordance with the laws of France. 
  

	10.	Notices 

  
 Save as otherwise expressly provided in this Agreement, any notice required to be given by either Party to the other shall be in writing and shall be
deemed validly served by hand delivery or by prepaid registered letter, sent through the post to its address given below, or such other address as may from time to time be notified for this purpose and any notice served by hand shall be deemed to
have served on delivery, and any notice served by prepaid registered letter shall be deemed to have been served 48 hours after the time of which it was posted, and in proving service it shall be sufficient (in the case of service by hand or prepaid
registered letter) to prove that the notice was properly addressed and delivered or posted, as the case may be. 
  

	11.	General 

  

	11.1	This Agreement shall be binding upon and shall ensure for the benefit of the assignees of the Parties as permitted in accordance with the provisions of Clause 6 of this Agreement.

  

	11.2	No failure to exercise, and no delay or forbearance in exercising, any right or remedy in respect of any provision of this Agreement shall operate as a waiver of such right or
remedy. 

  

	11.3	Variations of this Agreement shall not be effective unless made in writing signed by duly authorized representatives of the Parties. 

  
 IN WITNESS whereof this document has been signed by duly authorised persons on behalf of the
Parties the day and year first before written. 
  

					
	 Kraton Polymers S. A.
	 	 	 	Shell Hydrocarbures et Derives S. A. S.
			
	/s/ Illegible	 	 	 	/s/ Illegible
	_______	 	 	 	________

  

  
 Appendix 1 
  

									
	Special Quality Requirement	  	Signed MSPO:
	
	STYRENE MONOMER
	PURCHASER
					
	 PRODUCT CODE
 REFERENCE
	  	 	  	 	  	 	  	 
	DATE OF ISSUE	  	 	  	 	  	 	  	 
					
	 PROPERTY

	  	 UNIT

	  	 Specification
Method

	  	 SPECIFICATION

	  	 Revised

	 ***
	  	%(m/m)	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	 	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 
	 ***
	  	mg/kg	  	***	  	***	  	 

  

	(1)	illegible 

  

	(2)	in the event of now applicable legislation relating to ethyl-benzene levels (illegible). 

  

	(3)	to be previewed by 31. 

  

	***	[Confidential Treatment Required] 

  

  
 APPENDIX 2 

 
 Alternative Supplier: 
  
 SM Manufacturing location: 
  
 Proposed Method of delivery: 
  
 Proposed Quantity of first consignment: 
  
 Proposed Date for delivery at Berre of first consignment: 
  
 Specification for the SM to be supplied: : 
  

									
	Special Quality Requirement	  	 
	
	STYRENE MONOMER
	PURCHASER: [Name]
					
	 PRODUCT CODE
 REFERENCE
	  	 	  	 	  	 	  	 
	DATE OF ISSUE	  	 	  	 	  	 	  	 
					
	 PROPERTY

	  	 UNIT

	  	 Specification
Method

	  	 SPECIFICATION

	  	 Revised

	 ***
	  	%(m/m)	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	 	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 
	 ***
	  	mg/kg	  	***	  	 	  	 

  
 ________ 
  

	(1)	illegible 

  

	(2)	in the event of now applicable legislation relating to ethyl benzene level in styrene monomer, second supplier will supply (illegible). 

  

	(3)	To be ________ by __________ 

  

	***	[Confidential Treatment Required]

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