Document:

Form of Nonqualified Stock Option Plan - Resolution 2000 Non-Employee Director

 Exhibit 10.55 
  
 NON QUALIFIED STOCK OPTION AGREEMENT, dated as of February     , 2001, among RESOLUTION
PERFORMANCE PRODUCTS INC., a Delaware corporation (the “Company”), and the optionee set forth on the signature page hereto (the “Optionee”). 
  
 WHEREAS, the Company, acting through a Committee (as defined in the Company’s 2000 Non-Employee Director Stock Option
Plan (the “Plan”)) with the consent of the Company’s Board of Directors (the “Board”) has granted to the Optionee, effective as of November 14, 2000 (the “Effective Date”), an option under the
Plan to purchase a number of shares of Common Stock, par value $1.00 per share, of the Company on the terms and subject to the conditions set forth in this Agreement and the Plan; 
  
 NOW, THEREFORE, in consideration of the promises and of the mutual agreements contained in this Agreement, the parties
hereto agree as follows: 
  
 Section 1. The Plan. The
terms and provisions of the Plan are hereby incorporated into this Agreement as if set forth herein in their entirety. In the event of a conflict between any provision of this Agreement and the Plan, the provisions of this Agreement shall control. A
copy of the Plan may be obtained from the Company by the Optionee upon request. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Plan. 
  
 Section 2. Option: Option Price. On the terms and subject to the
conditions of the Plan and this Agreement, the Optionee shall have the option (the “Option”) to purchase Tranche A options (the “Tranche A Options”) and Tranche B options (the “Tranche B Options”),
at the price (the “Option Price”) and in the amounts set forth on the signature page hereto. Payment of the Option Price may be made in the manner specified by Section 8.1 of the Plan. The Option is not intended to qualify for
federal income tax purposes as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 The Option shall remain exercisable as to all Vested Options (as defined in Section 4) until the expiration of the
Option Term (as defined in Section 3). Except as otherwise provided in the Plan or this Agreement, upon a Termination of Relationship, the unvested portion of the Option (i.e., that portion which does not constitute Vested Options) shall
terminate. 
  
 Section 3. Term. The term of the Option (the
“Option Term”) shall commence on the Effective Date and expire on the thirtieth day immediately following the eighth anniversary of the Effective Date, unless the Option shall have sooner been terminated in accordance with the terms
of the Plan (including, without limitation, Article VII of the Plan) or this Agreement. 
  
 Section 4. Vesting. The Options shall vest (and, when the Options vest, the “Vested Options”) according to the following provisions: 
  
 (a) The Tranche A Options shall vest pro-rata such that on each anniversary
of the Effective Date, one-fifth of the Tranche A Options shall become Vested Options; provided, however that upon a Realization Event, all of the Tranche A Options shall become Vested Options immediately upon such Realization Event.

 (b) All of the Tranche B Options shall become Vested Options on the eighth anniversary of the Effective
Date; provided, however, that if a Realization Event shall occur prior thereto, then the Tranche B Options shall become Vested Options as follows: 
  
 (i) if the realized Investor IRR equals or exceeds 40% (assuming that all In the Money Securities shall have
been vested and exercised), then all outstanding Tranche B Options shall become Vested Options; 
  
 (ii) if the realized Investor IRR equals or exceeds 30% but is less than 40% (assuming that all In the Money Securities shall have been
vested and exercised), then  2/3 of the outstanding Tranche B Options shall become Vested Options; and

  
 (iii) if the realized Investor IRR
equals or exceeds 20% but is less than 30% (assuming that all In the Money Securities shall have been vested and exercised), then  1/3 of the outstanding Tranche B Options shall become Vested Options. 
  
 As used herein, “In the Money Securities” means (i) with respect to warrants or options to purchase shares of Common Stock, Notes or other
securities of the Company, that the exercise price is less than the per share value paid to the holders of such securities in the transaction that constitutes a Realization Event and (ii) with respect to securities convertible into or exchangeable
for shares of Common Stock, Notes or other securities, that the conversion price is less than the per share value paid to the holders of such securities in the transaction that constitutes a Realization Event. 
  
 (c) Notwithstanding anything contained herein to the contrary, each Option
shall cease vesting as of the time that a Termination of Relationship with respect to the Optionee occurs and no Option which is not a Vested Option as of such time shall become a Vested Option thereafter. All decisions by the Committee with respect
to any calculations pursuant to this Section (absent manifest error) shall be final and binding on the Optionee. 
  
 Section 5. Restriction on Transfer. 
  
 The Option may not be transferred, pledged, assigned, hypothecated or otherwise disposed of in any way by the Optionee and may be exercised during the
lifetime of the Optionee only by the Optionee. If the Optionee dies, the Option shall thereafter be exercisable, during the period specified in Section 2 hereof, by his or her executors or administrators to the full extent to which the Option
was exercisable by the Optionee at the time of his or her death. The Option shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to
the provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null and void and without effect. 
  
 Section 6. No Evidence of Continued Service. Nothing in the Option Agreement shall confer upon the Optionee any right with respect to the
continuation of such Optionee’s service as a director of the Company or any of its Subsidiaries or the nomination of such Optionee as a director of the Company or any of its Subsidiaries or interfere in any way with any rights which such
Optionee or the Company may have to terminate such Optionee’s service as a director of the Company or any of its Subsidiaries at any time. 
  

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 Section 7. Notices. All notices, claims, certificates, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given and delivered if personally delivered or if sent by nationally-recognized overnight courier, by telecopy, or by registered or certified mail, return receipt requested and
postage prepaid, addressed as follows: 
  
 if to the Company, to
it at: 
  
 Resolution Performance Products Inc. 
 1600 Smith Street 
 Houston, Texas 77002

 Attn: Vice President, Human Resources 
 Telecopier: (713) 241-5333 
 Telephone: (713) 241-1378 
  
 with copies to: 
  
 O’Sullivan Graev & Karabell, LLP 
 30 Rockefeller Plaza 
 New York, New York
10112 
 Attn: John J. Suydam, Esq. 
 Telecopier: (212) 218-6220 
 Telephone: (212) 408-2400 
  
 if to the Optionee, to him or her at the address set forth on the signature page hereto. 
  
 or to such other address as the party to whom notice is to be given may have furnished to the
other party in writing in accordance herewith. Any such notice or communication shall be deemed to have been received (i) in the case of personal delivery, on the date of such delivery (or if such date is not a business day, on the next business
after the date of delivery), (ii) in the case of nationally-recognized overnight courier, on the next business day after the date sent, (iii) in the case of telecopy transmission, when received (or if not sent on a business day, on the next business
day after the date sent), and (iv) in the case of mailing, on the third business day following that on which the piece of mail containing such communication is posted. 
  
 Section 8. Waiver of Breach. The waiver by either party of a breach of any provision of this Agreement must be in
writing and shall not operate or be construed as a waiver of any other or subsequent breach. 
  
 Section 9. Optionee’s Undertaking. The Optionee hereby agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable judgment deem necessary or
advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Optionee pursuant to the express provisions of this Agreement and the Plan. 
  
 Section 10. Modification of Rights. The rights of the Optionee are subject to modification and termination in certain
events as provided in this Agreement and the Plan. 
  

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 Section 11. Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK TO
BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF NEW YORK WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE
SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY. 
  
 Section 12. Counterparts. This Agreement may be executed in one or more counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts together shall constitute but one agreement. 
  
 Section 13. Entire Agreement. This Agreement and the Plan (and the
other writings referred to herein) constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and supersede all prior written or oral negotiations, commitments, representations and agreements with
respect thereto. 
  
 Section 14. Severability. It is the
desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any
particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the
remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or
unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

  
 Section 15. WAIVER OF JURY TRIAL. EACH PARTY HERETO
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER. 
  
 * * * * * 
  

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

			
	RESOLUTION PERFORMANCE PRODUCTS INC.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	

	 [Optionee]

	 [Optionee’s address]

  

	
	 Number of Shares
 of Common Stock
 for Tranche A Options:

	
	

	  
 Number of Shares
 of Common Stock
 for Tranche B Options:

	
	

	  
 Option Price

	for Tranche A
	Options: $                        
	
	Option Price
	for Tranche B
	Options: $Employment Agreement dated as of June 1, 2005 - Marvin O. Schlanger

 Exhibit 10.59 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT, dated as of June 1, 2005 (this “Agreement”), is by and between HEXION SPECIALTY
CHEMICALS, INC., a New Jersey corporation (formerly Borden Chemical, Inc. and referred to as the “Company”), and MARVIN O. SCHLANGER (“Executive”). 
  
 WHEREAS, Executive and Resolution Performance Products LLC, a Delaware
limited liability company (“RPP”), previously had entered into that certain Employment Agreement, dated as of November 14, 2000 (including all amendments thereto, the “Prior Employment Agreement”), pursuant to which
Executive was employed by RPP. 
  
 WHEREAS, RPP, Resolution
Specialty Materials Holdings LLC, a Delaware limited liability company (“RSM Holdings”), BHI Acquisition Corp., a Delaware corporation, BHI Merger Sub One, Inc., a Delaware corporation, BHI Merger Sub Two Inc., a Delaware
corporation, and the Company are parties to that certain Transaction Agreement dated as of April 22, 2005 (the “Transaction Agreement”). 
  
 WHEREAS, the Company desires to provide for the continued services of Executive effective upon and following the “Closing” (as such term
is defined in the Transaction Agreement) of the transactions contemplated by the Transaction Agreement (the “Effective Time”), and provide Executive with the compensation and other benefits provided in this Agreement. 
  
 WHEREAS, Executive is willing to enter into this Agreement on the
terms and conditions hereinafter set forth. 
  
 WHEREAS,
Executive’s employment with RPP will terminate concurrently with the Effective Time and this Agreement will supersede the Prior Employment Agreement in its entirety as of that time. 
  
 WHEREAS, this Agreement shall govern the employment relationship between the parties from and after the Effective
Time and supersedes and negates all previous agreements made between the parties, whether written or oral, relating to Executive’s employment with the Company. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Company and Executive
hereby agree as follows: 
  
 1. EMPLOYMENT. 
  
 a. Upon the Effective Time, the Prior Employment Agreement shall
terminate and shall be of no further force or effect. Executive shall have no further rights pursuant to the Prior Employment Agreement. RPP and its successors and assigns are third party beneficiaries of this Section 1.a. 
  
 b. Subject to the terms and conditions of this Agreement, the Company
agrees to employ Executive during the term hereof as the Vice Chairman of the Company’s Board 

  

 
of Directors (the “Board”), subject to re-election by the Board. Executive hereby accepts employment as such and agrees to devote his full
working time and efforts, to the best of his ability, experience and talent, to the performance of services, duties and responsibilities in connection therewith. As the Vice Chairman of the Board, Executive shall report to the Chief Executive
Officer of the Company and perform such duties as directed by the Chief Executive Officer or the Board. 
  
 2. TERM OF EMPLOYMENT.  
  
 a. This Agreement and the term of employment shall commence and be effective from and after the Effective Time and, subject to the terms hereof, shall terminate on December 31, 2005 (the “Expiration
Date”). 
  
 b. The parties acknowledge that
concurrently with entering this Agreement, Executive and the Company are executing a Consulting Agreement (the “Consulting Agreement”), pursuant to which Executive agrees to provide consulting services to the Company, subject to the
terms and provisions of the Consulting Agreement, for a period beginning on January 1, 2006 and continuing through December 31, 2008. 
  
 3. COMPENSATION AND BENEFITS. 
  
 a. Base Salary. The Company shall pay Executive a base salary (“Base Salary”) at the annual rate of Four Hundred
Thousand Dollars ($400,000) (less applicable deductions and withholdings). The Base Salary shall be payable in accordance with the ordinary payroll practices of the Company and shall be subject to increase as determined in its sole discretion by the
compensation committee of the Board of Directors of the Company (the “Compensation Committee”). 
  
 b. Bonus. In addition to the Base Salary, Executive shall be entitled to (i) continue to receive a quarterly bonus of $62,500 paid on
each of July 1, 2005 and October 1, 2005, provided in each case that Executive is employed by the Company on the applicable payment date, and (ii) receive a cash bonus (the “Bonus”) with respect to the 2005 fiscal year,
provided that Executive is employed by the Company on the last day of such fiscal year. The Bonus shall be based on the Company’s achievement of certain operating and/or financial goals to be established by the Compensation Committee,
with an annual target bonus amount equal to 75% of Executive’s then current Base Salary. The Company shall pay Executive a good faith estimate of the Bonus on or before December 31, 2005. 
  
 c. Benefits. During the term of employment hereunder,
the Company shall provide to Executive coverage under any employee benefit programs, plans and practices (including without limitation the Company’s 401(k) plan), in accordance with the terms that the Company makes available to its executive
officers, provided that for purposes of retirement or post-retirement programs of the Company that impose a vesting requirement, the Executive shall be deemed fully vested in such benefits as of the Effective Date. 
  
 d. Office. The Company shall maintain for
Executive’s use an office and small staff in Philadelphia, Pennsylvania. The scale of such office and staff shall be subject to the Company’s budget limitations and as approved by the Board. 
  

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 e. RSM Holdings Board Fees. Executive shall not be entitled to receive
any additional fees (other than the compensation set forth in this Section 3) for any service on RSM Holdings’ Board of Directors. 
  
 4. TERMINATION OF EMPLOYMENT. 
  
 a. Termination Rights. Notwithstanding the foregoing provisions of this Agreement, the Company (at its sole discretion) shall have
the right to terminate this Agreement and Executive’s employment at any time, for any reason or no reason, immediately upon written notice to Executive, and Executive may terminate his employment at any time immediately upon written notice to
the Company. 
  
 b. Definitions. 

 
 (i) “Affiliate” of the Company
shall mean a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company. As used in this definition, the term “control,” including the correlative
terms “controlling,” “controlled by” and “under common control with,” means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of
securities or any partnership or other ownership interest, by contract or otherwise) of a Person. The term “Affiliate” shall not include at any time any portfolio companies of Apollo Management IV, L.P. or its Affiliates. 
  
 (ii) “Cause” shall mean termination
by the Company of Executive’s employment (a) based on a determination that Executive has engaged in conduct constituting willful misconduct or gross negligence, or breach of a fiduciary duty; (b) based on a determination that Executive has
failed to perform the duties required by such Executive’s employment if Executive has received notice of such failure and has not cured such failure within 10 days of receiving such notice; (c) because Executive has breached or violated any of
the provisions of the Company’s employee handbook or other policies in effect from time to time that by their express terms may result in termination of employment; (d) because Executive has been convicted of a felony, has engaged in any act
involving the misuse or misappropriation of money or other property of the Company, has defrauded the Company, any Affiliate of the Company or any customer of the company, or because of habitual intoxication while performing his job duties, or drug
addiction; or (e) because Executive has knowingly failed to take action consistent with or has taken an action inconsistent with a directive of the Board. 
  
 (iii) “Disability” shall mean that Executive has been unable, for 180 consecutive days, or for periods aggregating
180 business days in any period of twelve months, to perform Executive’s duties under this Agreement, as a result of physical or mental impairment, illness or injury, as determined by a medical doctor jointly selected by the Company and
Executive. A termination of Executive’s employment by either party for Disability shall be communicated to the other party by written notice, and shall be effective on the 30th day after receipt of such notice by 

  

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the other party (the “Disability Effective Date”), unless Executive returns to full-time performance of Executive’s duties before the
Disability Effective Date. 
  
 (iv)
“Good Reason” shall mean the occurrence of any of the following events without Executive’s express prior written consent and which event shall not have been cured within a reasonable period after notice from Executive: (A)
the assignment to Executive by the Company of duties or authorities materially inconsistent with Executive’s duties or authorities as set forth in Section 1 hereof, or any material reduction by the Company of Executive’s duties, except in
connection with the termination of Executive’s employment for any other reason; (B) a reduction by the Company in Executive’s Base Salary or Bonus (other than due to the failure to meet applicable performance objectives); or (C) any
material breach by the Company of any material provision of this Agreement after a written notice of such breach shall have been delivered to the Company and, if such breach can be cured, such breach shall not have been cured prior to the tenth day
after delivery of such notice. Notwithstanding any other provision in this Agreement, no event, act or omission that occurred on or prior to the Effective Time shall constitute Good Reason. 
  
 (v) “Person” shall be construed
broadly and shall include, without limitation, an individual, a partnership, a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof. 
  
 (vi) “Termination Payments” shall mean earned but unpaid amounts as of the date of any termination under this Agreement and any other applicable benefit plans or programs. 
  
 c. Termination other than for Cause or Termination for Good
Reason. If Executive’s employment is terminated by the Company other than for Cause or Executive terminates his employment for Good Reason, in each case prior to the Expiration Date, Executive shall be entitled to receive (i) within a
reasonable time after the date of termination, the Termination Payments and any Bonus for the 2005 fiscal year payable if and at such time and level as is generally paid by the Company, and (ii) in lieu of any other cash compensation provided for
herein but not in substitution for compensation already paid or earned, payable in accordance with the Company’s customary payroll practices for a period of twelve (12) months following the date of termination, an amount equal to
Executive’s Base Salary at its then current annual rate. 
  
 d. Voluntary Termination by Executive; Discharge for other reasons. If Executive’s employment is terminated by the Company for any reason other than a termination without Cause (including but not limited to due to
Executive’s death or Disability), or by Executive other than for Good Reason, in each case prior to the Expiration Date, Executive shall be entitled to receive, within a reasonable time after the date of termination, the Termination Payments.

  

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 e. DEFRA. 
  
 (i) Notwithstanding anything in this Agreement or any other agreement between Executive and the
Company to the contrary, in the event that the provisions of the Deficit Reduction Act of 1984 (“DEFRA”), and Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) relating to “excess
parachute payments” (as defined in the Code) shall be applicable to any payment or benefit received or to be received by Executive, then the total amount of payments or benefits payable to Executive shall be reduced by the least amount
necessary such that the provisions of DEFRA and Section 280G of the Code relating to “excess parachute payments” shall no longer be applicable. Should such a reduction be required, Executive shall determine, in the exercise of his sole
discretion, which payment or benefit to reduce or eliminate. Pending such determination, the Company shall continue to make all other required payments to Executive at the time and in the manner provided herein and shall pay the largest portion of
any parachute payments such that the provisions of DEFRA relating to “excess parachute payments” shall no longer be applicable. 
  
 (ii) Due to the complexity in the application of Section 280G of the Code, it is possible that payments made or benefits received
hereunder should not have been made under clause (e)(i) above (an “Overpayment”). If it is determined by the Company’s outside auditors in their reasonable good faith judgment or by any court of competent jurisdiction that an
Overpayment has been made resulting in an “excess parachute payment” as defined in Section 280G(b)(1) of the Code, then Executive shall promptly pay to the Company the amount of such Overpayment together with interest thereon (at the same
rate as is applied to determine the present value of payments under Section 280G or any successor thereto) from the date the reimbursable payment was received by Executive to the date the same is repaid to the Company. 
  
 5. NOTICES. All notices or communications hereunder shall be in writing,
addressed, in the case of Executive, to the address set forth on the signature pages hereto, and to the Company, as follows: 
  
 Hexion Specialty Chemicals, Inc. 
 180 East
Broad Street 
 Columbus, Ohio 43215 
 Attention: Chief Executive Officer 
 [Telecopy:     
(        )         -         
 Telephone:     (        )         -        ]

  
 with a copy to: 
  
 O’Melveny & Myers LLP 
 Times Square Towers 
 7 Times Square 
 New York, New York 10036 
 Attention: Adam K.
Weinstein, Esq. 
 Telecopy:       (212) 326-2061 
 Telephone:     (212) 408-2491 
  

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 Any such notice or communication shall be sent certified or registered mail, return receipt requested, postage prepaid,
addressed as above (or to such other address as such party may designate in a notice duly delivered as described above), and the actual date of mailing shall constitute the time at which notice was given. 
  
 6. SEPARABILITY; ARBITRATION. If any provision of this Agreement shall
be declared to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the remaining provisions hereof, which shall remain in full-force and effect. Any controversy or claim arising out of or relating
to this Agreement or the breach of this Agreement (other than Section 9 hereof) that cannot be resolved by Executive on the one hand and the Company on the other, including any dispute as to the calculation of Executive’s benefits or any
payments hereunder, shall be submitted to arbitration in New York, New York in accordance with New York law and the procedures of the American Arbitration Association. The determination of the arbitrators shall be conclusive and binding on the
Company and Executive, and judgment may be entered on the arbitrators’ award in any court having jurisdiction. 
  
 7. ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of Executive and the assigns and
successors of the Company, but neither this Agreement nor any rights hereunder shall be assignable or otherwise subject to hypothecation by Executive except by will or by operation of the laws of intestate succession. 
  
 8. AMENDMENT. This Agreement may only be amended by written agreement of
the parties hereto. 
  
 9. NONDISCLOSURE OF CONFIDENTIAL INFORMATION;
NON-COMPETITION. 
  
 a. Executive shall not,
without the prior written consent of the Company, divulge, disclose or make accessible to any other person, firm, partnership, corporation or other entity any Confidential Information pertaining to the business of the Company, except (i) while
employed by the Company, in the business of and for the benefit of the Company, or (ii) when required to do so by a court of competent jurisdiction, by any governmental agency having supervisory authority over the business of the Company, or by any
administrative body or legislative body (including a committee thereof) with purported or apparent jurisdiction to order Executive to divulge, disclose or make accessible such information. 
  
 b. For purposes of this Section, “Confidential
Information” shall mean non-public information concerning the Company’s and its Affiliates’ financial data, strategic business plans, product development (or other proprietary product data), customer lists, 

  

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marketing plans and other non-public, proprietary and confidential information of the Company and its Affiliates that is not otherwise available to the
public. 
  
 c. For the period commencing on the date hereof
and ending on (x) the last day on which Executive receives any payment from the Company or any of its Affiliates, with respect to a termination by the Company other than for Cause or a termination by Executive for Good Reason, or (y) the one year
anniversary of the last day on which Executive receives any payment from the Company or any of its Affiliates, with respect to all other terminations, without the prior written consent of the Company, Executive shall not, directly or indirectly, (i)
either as principal, manager, agent, consultant, officer, director, stockholder, partner, member, investor, lender or employee or in any other capacity, carry on, be engaged in or have any financial interest in any business within the chemicals
industry, including, without limitation, any business that is in competition with the business of the Company and/or its Affiliates, or (ii) solicit or hire any employees of the Company and/or its Affiliates. For purposes hereof, a business shall be
deemed to be in competition with the Company if it is significantly involved in the rendering of any good or service significantly purchased, sold, dealt in or rendered by the Company and/or its Affiliates. As used in the preceding sentence, the
term “significantly” shall be deemed to refer to activities generating gross annual sales of at least $25 million. Nothing in this Section 9(c) shall be construed so as to preclude Executive from serving on each board of directors of the
Companies listed on Exhibit A or investing in any publicly held company provided Executive’s beneficial ownership of any class of such company’s securities does not exceed 5% of the outstanding securities of such class. 

 
 d. Executive and the Company agree that the foregoing covenant not
to compete is a reasonable covenant under the circumstances, and further agree that if in the opinion of any court of competent jurisdiction such restraint is not reasonable in any respect, such court shall have the right, power and authority to
excise or modify such provision or provisions of such covenant as to the court shall appear not reasonable and to enforce the remainder of the covenant as so amended. Executive agrees that any breach of the covenants contained in this Section would
irreparably injure the Company. Accordingly, the Company may, in addition to pursuing any other remedies they may have in law or in equity, obtain an injunction against Executive from any court having jurisdiction over the matter, restraining any
further violation of this Section by Executive. 
  
 10. GOVERNING
LAW. This Agreement shall be construed, interpreted and governed in accordance with the laws of the State of New York, without reference to rules relating to conflict of laws. 
  
 11. WITHHOLDING. The Company shall be entitled to withhold from any payment hereunder or under any other agreement
between the Company and Executive any amount required by law to be withheld. 
  
 12. COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original. 
  

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 13. ENTIRE AGREEMENT. This Agreement reflects the entire agreement and understanding of the parties
hereto with respect to the subject matter hereof and replaces and supercedes any prior employment agreements. 
  
 14. SURVIVAL OF CERTAIN PROVISIONS. Notwithstanding anything else contained herein to the contrary, the provisions of Sections 5 through 13, and this Section 14, shall survive any purported
termination of Executive’s employment and any purported termination or expiration of this Agreement. 
  
 [Signatures follow on next page.] 
  

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

			
	HEXION SPECIALTY CHEMICALS, INC.
		
	By:	 	 /s/ Craig O. Morrison

	 Name:
	 	 Craig O. Morrison

	 Title:
	 	 President and Chief Executive Officer

	
	EXECUTIVE
	
	 /s/ Marvin O. Schlanger

	 Name:
	 	 Marvin O. Schlanger

	
	 Address:

	 15 Southwood Dr.
 Cherry Hill, New Jersey 08003

  

 EXHIBIT A 
  

UGI Corporation 
 UGI Utilities

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