Document:

EX-10.4

 Exhibit 10.4 

Execution Version 

Kraton Polymers LLC 

Kraton Polymers Capital Corporation 

PURCHASE AGREEMENT 

January 5, 2016 
 CREDIT
SUISSE SECURITIES (USA) LLC 
 NOMURA SECURITIES INTERNATIONAL,
INC. 
 DEUTSCHE BANK SECURITIES INC. 

    As Representatives of the Initial Purchasers 

c/o Credit Suisse Securities (USA) LLC 
 Eleven Madison Avenue

 New York, New York 10010 
 Ladies and Gentlemen: 

Kraton Polymers LLC, a Delaware limited liability company (the “Company”), and Kraton Polymers Capital Corporation, a
Delaware corporation (the “Co-Issuer” and together with the Company, the “Issuers”), propose to issue and sell to the initial purchasers listed on Schedule A hereto (collectively, the “Initial
Purchasers”), acting severally and not jointly, the respective amounts set forth in Schedule A hereto of $440 million aggregate principal amount of the Issuers’ 10.500% Senior Notes due 2023 (the “Notes”).
Credit Suisse Securities (USA) LLC (“Credit Suisse”), Nomura Securities International, Inc. (“Nomura”) and Deutsche Bank Securities Inc. (“Deutsche Bank”) have agreed to act as the representatives
of the Initial Purchasers (the “Representatives”) in connection with the offering and sale of the Notes. 
 The Securities
(as defined below) will be issued pursuant to an indenture, to be dated as of January 6, 2016 (the “Indenture”), among the Issuers, the Guarantors (as defined below) and Wells Fargo Bank, N.A., as trustee (the
“Trustee”). The Notes will be issued only in book-entry form in the name of Cede & Co., as nominee of The Depository Trust Company (the “Depositary”) pursuant to a letter of representations, dated
December 16, 2003, and the Rule 144A and Regulation S riders thereto, each to be dated on or before the Closing Date (as defined in Section 2 hereof) (together, the “DTC Agreement”), between the Issuers and the Depositary.

 The payment of principal of, premium, if any, and interest on the Notes will be fully and unconditionally guaranteed on a senior
unsecured basis, jointly and severally by (i) Kraton Performance Polymers, Inc. (the “Parent”), (ii) the entities listed on the signature pages hereof as “Subsidiary Guarantors,” (iii) the Additional
Guarantors (as defined below) and (iv) any subsidiary of the Company formed or acquired after the Closing Date that executes an additional guarantee in accordance with the terms of the Indenture, and their respective successors and assigns,
pursuant to their guarantees of the Notes (the “Guarantees”). The term “Guarantors” refers to (i) the Parent and the Subsidiary Guarantors, prior to the Closing Date and (ii) the Parent, the Subsidiary
Guarantors, the Additional Guarantors and any subsidiary of the Company formed or acquired after the Closing Date that executes an additional guarantee in accordance with the terms of the Indenture, on and after the Closing Date. The Notes and the
Guarantees attached thereto are herein collectively referred to as the “Securities.” 

 The Securities are being offered and sold by the Issuers in connection with the acquisition by
the Company (the “Acquisition”) of Arizona Chemical Holdings Corporation, a Delaware corporation (“Arizona”), pursuant to a Stock Purchase Agreement dated as of September 27, 2015 (together with all exhibits,
schedules and disclosure letters thereto, collectively, as may be amended, the “Acquisition Agreement”) among the Company, Arizona and AZC Holding Company LLC, a Delaware limited liability company, pursuant to which the Company
agreed to purchase all of the outstanding capital stock of Arizona. Immediately following the consummation of the Acquisition, Arizona and any additional entities required to guarantee the Securities pursuant to the Indenture (collectively, the
“Additional Guarantors”) will be joined as parties to this Agreement pursuant to a joinder agreement, the form of which is attached hereto as Annex II (the “Joinder Agreement”). The proceeds from this
offering will be used to pay tender premiums with respect to the tender offer and consent solicitation (the “Tender Offer”) for the Issuers’ 6.75% Senior Notes due 2019 (the “Existing Notes”), to pay a portion
of the cash purchase price of the Acquisition and to pay related fees and expenses, as described under the caption “Use of Proceeds” in the Offering Circular (as defined below). The Company intends to redeem all outstanding Existing Notes
not tendered and purchased pursuant to the Tender Offer (the “Redemption”). 
 In connection with the Acquisition, on the
Closing Date, the Issuers and the Guarantors will enter into (i) a $1,350.0 million first lien term loan facility (the “Term Loan Facility”) and (ii) a $250.0 million asset-based credit facility (the “ABL
Facility” and, together with the Term Loan Facility, the “New Senior Secured Credit Facilities”), each as described under the caption “Description of Other Indebtedness” in the Offering Circular. 

As used herein, the term “Transactions” means collectively, (i) the offer and sale of the Securities, (ii) the
consummation of the Acquisition, (iii) the entry by the Issuers and the Guarantors into the New Senior Secured Credit Facilities and the initial extensions of credit thereunder, if any, on the Closing Date, (iv) the Tender Offer,
(v) the Redemption, (vi) the repayment of certain borrowings under the Company’s existing credit facilities as described in the Offering Circular and (vii) the payment of transaction costs (which may be paid after the Closing
Date). 
 This Agreement, the DTC Agreement, the Securities, the Indenture, the Joinder Agreement and the credit agreements governing the
New Senior Secured Credit Facilities (the “New Credit Agreements” and, together with all other documents related to such facilities, the “Credit Documents”) are collectively referred to herein as the
“Transaction Documents.” 
 The Issuers understand that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and in the Offering Circular and agree that the Initial Purchasers may resell, subject to the conditions set forth herein, all or a portion of the Securities to purchasers (the
“Subsequent Purchasers”) on the terms set forth in the Offering Circular. The Securities are to be offered and sold to or through the Initial Purchasers without being registered with the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933 (as amended, the “Securities Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder), in reliance upon exemptions

  
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therefrom. Pursuant to the terms of the Securities and the Indenture, investors who acquire Securities shall be deemed to have agreed that Securities may only be resold or otherwise transferred,
after the date hereof, if such Securities are registered for sale under the Securities Act or if an exemption from the registration requirements of the Securities Act is available (including the exemptions afforded by Rule 144A under the Securities
Act (“Rule 144A”) or Regulation S under the Securities Act (“Regulation S”)). 
 The Issuers have prepared
and delivered to each Initial Purchaser copies of an offering circular, dated January 5, 2015 (the “Offering Circular”), for use by such Initial Purchaser in connection with its solicitation of offers to purchase the
Securities. 
 All references herein to the term “Offering Circular” shall be deemed to mean and include all information
filed under the Securities Exchange Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder) prior to the date hereof and incorporated by
reference in the Offering Circular, and all references herein to the terms “amend,” “amendment” or “supplement” with respect to the Offering Circular shall be deemed to mean and include all
information filed under the Exchange Act after the date hereof and incorporated by reference in the Offering Circular. 
 The Company hereby
confirms its agreements with the Initial Purchasers as follows: 
 1. Representations and Warranties. As of the date hereof
and as of the Closing Date, each of the Issuers and the Subsidiary Guarantors and, upon the execution of the Joinder Agreement, each of the Additional Guarantors, jointly and severally, hereby represents, warrants and covenants to each Initial
Purchaser that (it being understood that (i) whenever a reference is made to the subsidiaries of the Parent in this Agreement, such phrase will be understood to refer to the subsidiaries of the Parent both prior to and immediately after the
Acquisition Date, including Arizona and (ii) prior to the execution and delivery of the Joinder Agreement, any representations and warranties made with respect to Arizona and its subsidiaries are made to the best knowledge of the Company, based
on reasonable due diligence performed in connection with the execution of the Acquisition Agreement): 
 (a) No Registration
Required. Subject to compliance by the Initial Purchasers with the representations and warranties set forth in Section 2(d) hereof and with the procedures set forth in Section 7 hereof, it is not necessary in connection with the offer,
sale and delivery of the Securities to the Initial Purchasers and to each Subsequent Purchaser in the manner contemplated by this Agreement and the Offering Circular to register the Securities under the Securities Act or to qualify the Indenture
under the Trust Indenture Act of 1939, as amended. 
 (b) No Integration of Offerings or General Solicitation. None of the Company,
its affiliates (as such term is defined in Rule 501 under the Securities Act) (each, an “Affiliate”), or any person acting on its or any of their behalf (other than the Initial Purchasers, as to whom the Issuers and Guarantors make
no representation or warranty) has, directly or indirectly, solicited any offer to buy or offered to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States citizen or resident,
any security which is or would be integrated with the sale of the Securities in a manner that would require the Securities to be registered under the Securities Act. None of the Company, its Affiliates, or any person acting

  
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on its or any of their behalf (other than the Initial Purchasers, as to whom the Issuers and Guarantors make no representation or warranty) has engaged or will engage, in connection with the
offering of the Securities, in any form of general solicitation or general advertising within the meaning of Rule 502 under the Securities Act. With respect to those Securities sold in reliance upon Regulation S, (i) none of the Company,
its Affiliates or any person acting on its or their behalf (other than the Initial Purchasers, as to whom the Issuers and Guarantors make no representation or warranty) has engaged or will engage in any directed selling efforts within the meaning of
Regulation S and (ii) each of the Company and its respective Affiliates and any person acting on its or their behalf (other than the Initial Purchasers, as to whom the Issuers and Guarantors make no representation or warranty) has complied and
will comply with the offering restrictions set forth in Regulation S. 
 (c) Eligibility for Resale under Rule 144A. The Securities
are eligible for resale pursuant to Rule 144A and will not be, at the Closing Date, of the same class as securities listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated
interdealer quotation system. 
 (d) The Offering Circular. The Offering Circular, as of its date or (as amended or supplemented in
accordance with Section 3(a), as applicable) as of the Closing Date, does not contain an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that this representation, warranty and agreement shall not apply to statements in or omissions from the Offering Circular or any amendment or supplement thereto made in reliance upon and in
conformity with information furnished to the Issuers in writing by any Initial Purchaser through the Representatives expressly for use in the Offering Circular or amendment or supplement thereto, as the case may be, including the statements set
forth in the ninth and tenth paragraphs and the third and fourth sentences of the seventh paragraph under the caption “Plan of Distribution” in the Offering Circular. The Offering Circular contains all the information specified in, and
meeting the requirements of, Rule 144A. The Issuers have not distributed and will not distribute, prior to the later of the Closing Date and the completion of the Initial Purchasers’ distribution of the Securities, any offering material in
connection with the offering and sale of the Securities other than the Offering Circular. 
 (e) Issuer Additional Written
Communications. The Issuers have not prepared, made, used, authorized, approved or distributed and will not prepare, make, use, authorize, approve or distribute any written communication that constitutes an offer to sell or solicitation of an
offer to buy the Securities other than (i) the Offering Circular and (ii) any electronic road show or other written communications, in each case used in accordance with Section 3(a). Each such communication by the Issuers or their
agents and representatives pursuant to clause (ii) of the preceding sentence (each, a “Issuer Additional Written Communication”), when taken together with the Offering Circular at the Closing Date did not, contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that this representation, warranty and agreement
shall not apply to statements in or omissions from each such Issuer Additional Written Communication made in reliance upon and in conformity with information furnished to the Issuers in writing by any Initial Purchaser through the Representatives
expressly for use in any Issuer Additional Written Communication. 

  
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 (f) Incorporated Documents. The documents incorporated or deemed to be incorporated by
reference in the Offering Circular at the time they were or hereafter are filed with the Commission (collectively, the “Incorporated Documents”) complied and will comply in all material respects with the requirements of the Exchange
Act. 
 (g) The DTC Agreement. The DTC Agreement has been duly authorized and, on the Closing Date, will have been duly executed and
delivered by, and will constitute a valid and binding agreement of, the Issuers, enforceable in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable principles (the “Enforcement Exceptions”). 

(h) Authorization of the Notes and the Guarantees. The Notes to be purchased by the Initial Purchasers from the Issuers will on the
Closing Date be in the form contemplated by the Indenture, have been duly authorized by each of the Issuers for issuance and sale pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly executed by each of the
Issuers and, when authenticated in the manner provided for in the Indenture and delivered against payment of the purchase price therefor, will constitute valid and binding obligations of each of the Issuers, enforceable against them in accordance
with their terms, except as the enforcement thereof may be limited by the Enforcement Exceptions and will be entitled to the benefits of the Indenture. The Guarantees of the Notes on the Closing Date will be in the form contemplated by the Indenture
and have been duly authorized for issuance pursuant to this Agreement and the Indenture; the Guarantees of the Notes, at the Closing Date, will have been duly executed by each of the Guarantors and, when the Notes have been authenticated in the
manner provided for in the Indenture and issued and delivered against payment of the purchase price therefor, the Guarantees of the Notes will constitute valid and binding agreements of the Guarantors. 

(i) Authorization of the Indenture. The Indenture has been duly authorized by the Issuers and the Guarantors and, at the Closing Date,
will have been duly executed and delivered by the Issuers and the Guarantors and, assuming due authorization, execution and delivery thereof by the Trustee, will constitute a valid and binding agreement of the Issuers and the Guarantors, enforceable
against the Issuers and the Guarantors in accordance with its terms, except as the enforcement thereof may be limited the Enforcement Exceptions. 

(j) Description of the Transaction Documents. The Transaction Documents will conform in all material respects to the respective
statements relating thereto contained in the Offering Circular. 
 (k) Good Standing of the Issuers. Each of the Issuers has been
duly organized, and is validly existing and in good standing under the laws of the State of Delaware, with power and authority to own or lease its properties and conduct its business as described in the Offering Circular and enter into and perform
its obligations under each of the Transaction Documents; and, except where the failure to be so qualified would not, individually or in the aggregate, result in a material adverse effect on the condition (financial or otherwise), results of
operations, business, properties or prospects of the Parent and its subsidiaries taken as a whole (“Material Adverse Effect”), each Issuer is duly qualified to do business as a foreign organization in good standing in all other
jurisdictions in which their ownership or lease of property or the conduct of its business requires such qualification. 

  
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 (l) Parent and Subsidiaries. The Parent and each subsidiary of the Company listed on
Schedule B-1 and Schedule B-2 hereto has been duly organized, and is validly existing and in good standing under the laws of the jurisdiction of its organization, with power and authority (corporate and other) to own or lease its
properties and conduct its business as described in the Offering Circular and, in the case of the Guarantors, to enter into and perform their obligations under each of the Transaction Documents that they are parties to; and the Parent and each such
subsidiary of the Company is duly qualified to do business as a foreign organization in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification except where the
failure to be so qualified would not, individually or in the aggregate, result in a Material Adverse Effect; all of the issued and outstanding capital stock of each subsidiary of the Parent has been duly authorized and validly issued and is fully
paid and nonassessable (to the extent such concept is applicable in such entity’s jurisdiction of organization); and except as disclosed in the Offering Circular or pursuant to the Credit Documents, the capital stock of the Parent and each such
subsidiary owned by the Company, directly or through subsidiaries, is owned free from liens, encumbrances and defects, other than those shares of capital stock of certain subsidiaries of Arizona pledged pursuant to Arizona’s Credit Facilities
(as defined in the Acquisition Agreement), which Credit Facilities will be paid off simultaneously with the consummation of the Acquisition. 

(m) No Finder’s Fee. Except as disclosed in the Offering Circular, there are no contracts, agreements or understandings between
the Issuers or any of the Guarantors and any person that would give rise to a valid claim against the Issuers, any Guarantor or any Initial Purchaser for a brokerage commission, finder’s fee or other like payment in connection with this
offering. 
 (n) Registration Rights. Except as disclosed in the Offering Circular, there are no contracts, agreements or
understandings between the Issuers or any Guarantor and any person granting such person the right to require the Issuers or any Guarantor to file a registration statement under the Securities Act with respect to any securities of the Issuers or any
Guarantor owned or to be owned by such person or to require the Issuers or any Guarantor to include such securities in the securities registered pursuant to a registration statement or in any securities being registered pursuant to any other
registration statement filed by the Issuers or any Guarantor under the Securities Act. 
 (o) Absence of Further Requirements. Except
as disclosed in the Offering Circular, no material consent, approval, authorization, or order of, or filing or registration with, any person (including any governmental agency or body or any court) is required to be obtained or made by the Issuers
or the Guarantors for the consummation of the transactions contemplated by this Agreement in connection with the sale of the Securities, except such as have been obtained, or made and such as may be required under state securities laws. 

(p) Title to Property. Except as disclosed in the Offering Circular and except for any liens arising under (i) the Loan, Security
and Guarantee Agreement dated March 27, 2013, among the Kraton Polymers U.S. LLC, as U.S. borrower, Kraton Polymers Nederland B.V., as 

  
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Dutch borrower, the Parent and certain subsidiaries of the Company, as guarantors, and various lenders, as amended, and the collateral documents entered into in connection therewith,
(ii) Arizona’s Credit Facilities (as defined in the Acquisition Agreement) and the collateral documents entered into in connection therewith and (iii) the Credit Documents, the Parent and its subsidiaries have good and marketable
title to all real properties and all other properties and assets owned by them, in each case free from liens, charge, encumbrances and defects that would materially affect the value thereof or materially interfere with the use made or to be made
thereof by them and, except as disclosed in the Offering Circular, the Parent and its subsidiaries hold any leased real or personal property under valid and enforceable leases with no terms or provisions that would materially interfere with the use
made or to be made thereof by them. 
 (q) Absence of Defaults and Conflicts Resulting from Transaction. Except as disclosed in
“Description of Other Indebtedness” in the Offering Circular, the execution, delivery and performance of this Agreement and the sale of the Securities will not result in a breach or violation of (i) any of the terms and provisions of,
or constitute a default or a Debt Repayment Triggering Event (as defined below) under, any indebtedness, or result in the imposition of any lien, charge or encumbrance upon any property or assets of the Parent or any of its subsidiaries, except as
arising under Arizona’s Credit Facilities (as defined in the Acquisition Agreement) and the collateral documents entered into in connection therewith, (ii) the charter or by-laws of the Parent or any of its subsidiaries or (iii) any
statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Parent or any of its subsidiaries or any of their properties, or any agreement or instrument to which the Parent or
any of its subsidiaries is a party or by which the Parent or any of its subsidiaries is bound or to which any of the properties of the Parent or any of its subsidiaries is subject, except, in respect of clause (i) above, as would not have a
Material Adverse Effect; a “Debt Repayment Triggering Event” means any event or condition that gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture, or other evidence of indebtedness (or
any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Parent or any of its subsidiaries. 

(r) Absence of Existing Defaults and Conflicts. Neither the Parent nor any of its subsidiaries is (i) in violation of its
respective charter or by-laws or (ii) in default (or with the giving of notice or lapse of time would be in default) under any existing obligation, agreement, covenant or condition contained in any indenture, loan agreement, mortgage, lease or
other agreement or instrument to which any of them is a party or by which any of them is bound or to which any of the properties of any of them is subject, except, in respect of clause (ii) above, as would not have a Material Adverse Effect.

 (s) Authorization of Agreement. (i) This Agreement has been duly authorized, executed and delivered by the Issuers, the
Parent and the Subsidiary Guarantors, and (ii) the Joinder Agreement, on the Closing Date, will be duly authorized, executed and delivered by the Additional Guarantors. 

(t) Independent Accountants. KPMG LLP has certified certain financial statements of the Parent and its subsidiaries and is an
independent registered public accounting firm with respect to the Parent within the meaning of the applicable rules and regulations adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as

  
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required by the Securities Act and its interpretations and rulings thereunder. Deloitte & Touche LLP has certified certain financial statements of Arizona and its subsidiaries and is an
independent auditor with respect to Arizona and its subsidiaries under Rule 101 of the AICPA’s Code of Professional Conduct and its interpretations and rulings thereunder. 

(u) Possession of Licenses and Permits. The Parent and its subsidiaries possess, and are in compliance with the terms of, all adequate
certificates, authorizations, franchises, licenses and permits (“Licenses”) necessary and material to the conduct of the business now conducted or proposed in the Offering Circular to be conducted by them and have not received any
notice of proceedings relating to the revocation or modification of any Licenses that, if determined adversely to the Parent or any of its subsidiaries, would, individually or in the aggregate, have a Material Adverse Effect. 

(v) Absence of Labor Dispute. Except as disclosed in the Offering Circular or except that, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect, no material labor dispute with the employees of the Parent or any of their respective subsidiaries exists or, to the knowledge of the Parent, is imminent and there are no unfair labor
practice complaints pending against the Parent or any of its subsidiaries or, to the best knowledge of the Parent, threatened against any of them. 

(w) Possession of Intellectual Property. The Parent and its subsidiaries own, possess or have rights to use (or can acquire such rights
on reasonable terms) the trademarks, trade names, patent rights, copyrights, domain names and trade secrets including registrations and applications for registration thereof (collectively, “Intellectual Property Rights”) that are
material to the conduct of the business now conducted or proposed in the Offering Circular to be conducted by them, and the expected expiration of any single item of such Intellectual Property Rights would not, individually or in the aggregate, have
a Material Adverse Effect. Except as disclosed in the Offering Circular, to the knowledge of the Parent, (i) there is no material infringement, misappropriation or other violation by the Parent, its subsidiaries or third parties of any of the
Intellectual Property Rights of the Parent or its subsidiaries; (ii) there is no pending or threatened in writing action, suit, proceeding or claim by others challenging the Parent’s or any of its subsidiaries’ ownership rights in or
to any of their Intellectual Property Rights, and the Parent is unaware of any facts which would form a reasonable basis for any such claim; (iii) there is no pending or threatened in writing action, suit, proceeding or claim by others
challenging the validity, enforceability or scope of any registered Intellectual Property Rights of the Parent or its subsidiaries, and the Parent is unaware of any facts which would form a reasonable basis for any such claim; (iv) there is no
pending or threatened action, suit, proceeding or claim by others that the Parent or any of its subsidiaries infringes, misappropriates or otherwise violates any Intellectual Property Rights of others and the Parent is unaware of any other fact
which would form a reasonable basis for any such claim; and (v) none of the Intellectual Property Rights used by the Parent or its subsidiaries in their businesses has been obtained or is being used by the Parent or its subsidiaries in
violation of any contractual obligation binding on the Parent or any of its subsidiaries, except in each case covered by clauses (i) – (v) such as would not, if determined adversely to the Parent or any of its subsidiaries,
individually or in the aggregate, have a Material Adverse Effect. 

  
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 (x) Environmental Laws. Except as disclosed in the Offering Circular, neither the Parent
nor any of its subsidiaries is in violation of any statute, any rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or
relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “environmental laws”), owns or operates any real property contaminated with any substance that is subject
to any environmental laws, is liable for any off-site disposal or contamination pursuant to any environmental laws, or is subject to any claim relating to any environmental laws, which violation, contamination, liability or claim would, individually
or in the aggregate, have a Material Adverse Effect; and the Parent is not aware of any pending investigation which might lead to such a claim. 

(y) Accurate Disclosure. The statements in the Offering Circular under the headings “Certain United States Federal Income Tax
Consequences—Tax Consequences to Non-U.S. Holders,” “Description of Other Indebtedness,” “Description of Notes” and “Validity,” insofar as such statements purport to summarize certain federal income tax law of
the United States or certain provisions of the federal securities laws or legal matters, agreements, documents or proceedings discussed therein, respectively, are accurate and fair summaries of such legal matters, agreements, documents or
proceedings and present the information required to be shown. 
 (z) Absence of Manipulation. The Issuers and the Guarantors have not
taken, directly or indirectly, any action that is designed to or that has constituted or that would reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Issuers or the Guarantors to
facilitate the sale or resale of the Securities. 
 (aa) Statistical and Market-Related Data. Any third-party and
management-estimated statistical and market-related data included in the Offering Circular are based on or derived from sources that the Issuers and the Guarantors reasonably believe to be reliable and accurate in all material respects. 

(bb) Internal Controls. Each of the Parent and its subsidiaries maintains a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Neither the Parent nor any of its subsidiaries is aware of any material weakness in their
respective internal controls over financial reporting. 
 (cc) Sarbanes-Oxley Act. The Parent is in compliance in all material
respects with all provisions of the Sarbanes-Oxley Act of 2002 that are effective and applicable to the Parent as of the date hereof and expects to be in compliance with all additional provisions of the Sarbanes-Oxley Act of 2002 that will become
applicable to it, including those provisions relating to internal controls over financial reporting, when such provisions become applicable to the Parent. 

  
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 (dd) Absence of Accounting Issues. (i) The Audit Committee of the Issuers’ Board
of Directors (the “Issuers Audit Committee”) is not reviewing or investigating, and neither the Issuers’ independent auditors nor its internal auditors have recommended that the Issuers Audit Committee review or investigate,
(i) adding to, deleting, changing the application of, or changing the Issuers’ disclosure with respect to, any of the Parent’s or the Issuers’ material accounting policies; (ii) any matter which could result in a restatement
of the Parent’s or Issuers’ financial statements for any annual or interim period during the current or prior three fiscal years; or (iii) any significant deficiency, material weakness, change in internal control over financial
reporting or fraud involving management or other employees who have a significant role in internal control over financial reporting; and (ii) the Audit Committee of Arizona’s Board of Directors (the “Arizona Audit
Committee”) is not reviewing or investigating, and neither Arizona’s independent auditors nor its internal auditors have recommended that the Arizona Audit Committee review or investigate, (i) adding to, deleting, changing the
application of, or changing Arizona’s disclosure with respect to, any of Arizona’s material accounting policies; (ii) any matter which could result in a restatement of Arizona’s financial statements for any annual or interim
period during the current or prior three fiscal years; or (iii) any significant deficiency, material weakness, change in internal control over financial reporting or fraud involving management or other employees who have a significant role in
internal control over financial reporting. 
 (ee) Litigation. Except as disclosed in the Offering Circular, there are no pending
actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency or body, domestic or foreign) against or affecting the Parent, any of its subsidiaries or any of their respective properties that, if
determined adversely to the Parent or any of its subsidiaries, would, individually or in the aggregate, have a Material Adverse Effect, or would materially and adversely affect the ability of the Issuers or the Guarantors to perform their
obligations under this Agreement, or which are otherwise material in the context of the sale of the Securities; and no such actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency or body,
domestic or foreign) are, to the knowledge of the Parent, threatened or contemplated. 
 (ff) ERISA. To the knowledge of the Parent,
none of the Parent nor any of its subsidiaries has violated any foreign, federal, state or local law or regulation relating to any provisions of the Employee Retirement Income Security Act of 1974, as amended, or the rules and regulations
promulgated thereunder, except for such violations which, individually or in the aggregate, would not have a Material Adverse Effect. 

(gg) Financial Statements. The historical financial statements included or incorporated by reference in the Offering Circular present
fairly in all material respects the financial position of the entities to which they relate as of the dates shown and the results of their operations and cash flows for the periods shown. Such financial statements have been prepared in conformity
with generally accepted accounting principles applied on a consistent basis, except as otherwise stated therein. The summary consolidated historical financial data set forth in the Offering Circular under the caption “Summary—Summary
Consolidated Historical and Pro Forma Financial Data—Kraton” and the selected consolidated historical financial data set forth in the Offering Circular under the caption “Selected Historical Consolidated Financial
Data—Kraton” present fairly in all material respects the information set forth therein on a basis consistent with that of the audited financial statements of the Parent contained in the Offering Circular. The pro forma

  
 10 

 
financial statements included in the Offering Circular present fairly in all material respects the information contained therein, and, for the year ended December 31, 2014 and the nine-month
period ended September 30, 2015, comply in all material respects with the applicable requirements of Regulation S-X under the Securities Act, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein
are appropriate to give effect to the transactions and circumstances referred to therein. 
 (hh) No Material Adverse Change in
Business. Except as disclosed in the Offering Circular, since the end of the period covered by the latest audited financial statements included or incorporated by reference in the Offering Circular, (i) there has been no change, nor any
development or event involving a prospective change, in the condition (financial or otherwise), results of operations, business, properties or prospects of the Parent and its subsidiaries, taken as a whole, that is material and adverse,
(ii) there has been no dividend or distribution of any kind declared, paid or made by the Parent or the Issuers on any class of capital stock and (iii) there has been no material adverse change in the capital stock, short-term
indebtedness, long-term indebtedness, net current assets or net assets of the Parent and its subsidiaries. 
 (ii) Investment Company
Act. Neither the Issuers nor any Guarantor is, or after receipt of payment for the Securities will be, an “investment company” within the meaning of the Investment Company Act of 1940. 

(jj) Ratings. No “nationally recognized statistical rating organization” as such term is defined for purposes of Rule
15c3-1(c)(2)(vi)(F) under the Exchange Act (i) has imposed (or has informed the Parent or its subsidiaries that it is considering imposing) any condition (financial or otherwise) on any of the Parent’s or its subsidiaries’ retaining
any rating assigned to the Parent or any of its subsidiaries or any securities of the Parent or any of its subsidiaries or (ii) has indicated to the Parent or any of its subsidiaries that it is considering any of the actions described in
Section 5(b)(ii) hereof. 
 (kk) Insurance. The Parent and each of its subsidiaries carries, or is covered by, insurance in such
amounts and covering such risks as is adequate for the conduct of their respective businesses and as is customary for companies engaged in similar businesses. 

(ll) Compliance with Money Laundering Laws. The operations of the Parent and its subsidiaries are and have been conducted at all times
in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court
or governmental agency, authority or body or any arbitrator involving the Parent or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Parent, threatened. 

(mm) No Unlawful Contributions or Other Payments. None of the Parent, any of its subsidiaries, nor, to the knowledge of the Parent, any
director, officer, agent, employee or other person associated with or acting on behalf of the Parent or any of its subsidiaries, has in the course of its actions for, or on behalf of the Parent or any of its subsidiaries (i) used any corporate

  
 11 

 
funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or
domestic government official, “foreign official” (as defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (collectively, the “FCPA”)) or employee from corporate
funds; (iii) violated or is in violation of any provision of the FCPA, U.K. Bribery Act 2010, as amended (the “UK Bribery Act”), the OECD Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions (the “OECD Convention”) or any other applicable anti-bribery statute or regulation; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any domestic government official,
foreign official or employee. The Parent and its subsidiaries and, to the knowledge of the Parent, the Parent’s affiliates, have each conducted their respective businesses in compliance with the FCPA, U.K. Bribery Act, the OECD Convention and
all other applicable anti-bribery statutes and regulations, and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith. The Issuers, the
Guarantors and their affiliates will not, directly or indirectly, use the proceeds of the offering and sale of the Notes or lend, contribute or otherwise make available such proceeds to any subsidiary, affiliate, joint venture partner or other
person or entity for the purpose of financial or facilitating any activity that would violate the laws and regulations as referred to in clause (iii) above. 

(nn) Compliance with OFAC. (i) None of the Parent or any of its subsidiaries nor, to the knowledge of the Parent, any director,
officer, agent, employee or affiliate of the Parent or any of its subsidiaries (A) is currently subject to or, to the knowledge of the Parent, the target of any sanctions administered or enforced by the Office of Foreign Assets Control of the
U.S. Department of Treasury, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”); or (B) is
located, organized or resident in a country that is the subject of Sanctions (including, without limitation, Crimea, Cuba, Iran, North Korea, Sudan and Syria (each, a “Sanctioned Country”)); (ii) the Issuers and the Guarantors
will not directly or indirectly use the proceeds of the offering of Notes, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities
of any person, or in any country or territory, that currently is the subject or target of Sanctions or in any other manner by the Company or any of its subsidiaries or, to the knowledge of the Issuers or the Guarantors, by any other person that will
result in a violation by any person (including any person participating in the transaction whether as an underwriter, advisor, investor or otherwise) of Sanctions. For the past five years, the Parent and its subsidiaries have not knowingly engaged
in, are not now knowingly engaged in, and will not engage in, any dealings or transactions with any individual or entity, or in any country or territory, that at the time of the dealing or transaction is or was the subject or target of Sanctions.
The Parent and its subsidiaries have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance with Sanctions. 

(oo) Solvency. Each of the Issuers and the Guarantors is, and immediately after the Closing Date will be, Solvent. As used herein, the
term “Solvent” means, with respect to any person on a particular date, that on such date (i) the fair market value of the assets of such person is greater than the total amount of liabilities (including contingent liabilities)
of such person, (ii) the present fair salable value of the assets of such person is greater than the amount that will be 

  
 12 

 
required to pay the probable liabilities of such person on its debts as they become absolute and matured, (iii) such person is able to realize upon its assets and pay its debts and other
liabilities, including contingent obligations, as they mature and (iv) such person does not have unreasonably small capital. 
 (pp)
Regulations T, U, X. Neither the Issuers nor any Guarantor nor any of their respective subsidiaries nor any agent thereof acting on their behalf has taken, and none of them will take, any action that might cause this Agreement or the issuance
or sale of the Securities to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System. 

(qq) New Senior Secured Credit Facilities. At the Closing Date, the New Senior Secured Credit Facilities (as described in the Offering
Circular) will have been duly and validly authorized by the Company and other parties related to the Company and, when duly executed and delivered by the Company and other parties related to the Company, will be the valid and legally binding
obligations of the Company and other parties related to the Company, enforceable in accordance with their terms, except as the enforcement thereof may be limited by the Enforcement Exceptions. 

(rr) Regulation S. The Issuers, the Guarantors and their respective affiliates and all persons acting on their behalf (other than the
Initial Purchasers, as to whom the Issuers and the Guarantors make no representation) have complied with and will comply with the offering restrictions requirements of Regulation S in connection with the offering of the Securities outside the
United States and, in connection therewith, the Offering Circular will contain the disclosure required by Rule 902. Each of the Issuers and the Guarantors is a “reporting issuer”, as defined in Rule 902 under the Securities Act.

 Any certificate signed by an officer of the Issuers or any Guarantor and delivered to the Initial Purchasers or to counsel for the
Initial Purchasers shall be deemed to be a representation and warranty by the Issuers or such Guarantor to each Initial Purchaser as to the matters set forth therein. 

2. Purchase, Sale and Delivery of the Securities. 

(a) The Securities. Each of the Issuers agrees to issue and sell to the Initial Purchasers, severally and not jointly, all of the
Securities, and subject to the conditions set forth herein, the Initial Purchasers agree, severally and not jointly, to purchase from the Issuers the aggregate principal amount of Securities set forth opposite their names on Schedule A
hereto, at a purchase price of 94.541% of the principal amount thereof payable on the Closing Date, in each case, on the basis of the representations, warranties and agreements herein contained, and upon the terms herein set forth. 

(b) The Closing Date. Delivery of the Securities to be purchased by the Initial Purchasers and payment therefor shall be made at the
offices of Latham & Watkins LLP, 885 Third Avenue, Suite 1000, New York, New York 10022-4834 (or such other place as may be agreed to by the Issuers and the Representatives) at 9:00 a.m. New York City time, on January 6, 2016, or such
other time and date as may be agreed to by the Issuers and the Representatives (the 

  
 13 

 
time and date of such closing are called the “Closing Date”). The Issuers hereby acknowledge that circumstances under which the Issuers and the Representatives agree to postpone
the Closing include, but are in no way limited to, any determination by the Issuers and the Initial Purchasers to recirculate to investors copies of an amended or supplemented Offering Circular or a delay as contemplated by the provisions of
Section 19 hereof. 
 (c) Delivery of the Securities. The Issuers shall deliver, or cause to be delivered, to the nominee of the
Depositary for the accounts of the several Initial Purchasers of the Notes to be purchased by them, in one or more global notes representing the Notes (collectively, the “Global Notes”) at the Closing Date against the irrevocable
release of a wire transfer of immediately available funds for the amount of the purchase price therefore to a bank account designated by the Company. The Global Notes shall be in such denominations and registered in the name of Cede & Co.,
as nominee of the Depositary, pursuant to the DTC Agreement, and shall be made available for inspection on the business day preceding the Closing Date at a location in New York City, as the Representatives may designate. Time shall be of the
essence, and delivery at the time and place specified in this Agreement is a further condition to the obligations of the Initial Purchasers. 

(d) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser severally and not jointly represents and warrants to,
and agrees with, each of the Issuers that: 
 (i) it will offer and sell the Securities only to persons who it reasonably
believes are “qualified institutional buyers” within the meaning of Rule 144A (“Qualified Institutional Buyers”) in transactions meeting the requirements of Rule 144A or (b) upon the terms and conditions set forth in
Annex I to this Agreement; 
 (ii) it is an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act; and 
 (iii) it will not offer or sell the Securities by any
form of general solicitation or general advertising, including but not limited to the methods described in Rule 502(c) under the Securities Act. 

3. Additional Covenants. Each of the Issuers and the Guarantors further covenants and agrees with each Initial Purchaser as follows:

 (a) Initial Purchasers’ Review of Proposed Amendments and Supplements to Offering Circular and Issuer Additional Written
Communications. The Issuers will not amend or supplement the Offering Circular prior to the Closing Date unless the Representatives shall previously have been furnished a copy of the proposed amendment or supplement at least two business days
prior to the proposed use or filing, and shall not have reasonably objected to such amendment or supplement. Before making, preparing, using, authorizing, approving or distributing any Issuer Additional Written Communication, the Issuers will
furnish to the Representatives a copy of such written communication for review and will not make, prepare, use, authorize, approve or distribute any such written communication to which the Representatives reasonably object. 

  
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 (b) Amendments and Supplements to the Offering Circular and Other Securities Act Matters.
If at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result of which the Offering Circular as then amended or supplemented would include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement the Offering Circular to comply with law, the Issuers
and the Guarantors will notify the Initial Purchasers thereof as soon as practicable and forthwith prepare and (subject to Section 3(a) hereof) furnish to the Initial Purchasers such amendments or supplements to the Offering Circular as may be
necessary so that the statements in the Offering Circular as so amended or supplemented will not, in the light of the circumstances under which they were made, be misleading or so that the Offering Circular will comply with all applicable law. If,
prior to the completion of the placement of the Securities by the Initial Purchasers with the Subsequent Purchasers or prior to the expiration of nine months after the date of the Offering Circular, whichever is shorter, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the Offering Circular, as then amended or supplemented, in order to make the statements therein, in the light of the circumstances when the Offering Circular is delivered to
a Subsequent Purchaser, not misleading, or if in the reasonable judgment of the Representatives or counsel for the Initial Purchasers it is otherwise necessary to amend or supplement the Offering Circular to comply with law, the Issuers and the
Guarantors agree to prepare (subject to Section 3(a) hereof), file with the Commission and furnish at its own expense to the Initial Purchasers as soon as practicable, amendments or supplements to the Offering Circular so that the statements in
the Offering Circular as so amended or supplemented will not, in the light of the circumstances at the Closing Date and at the time of sale of Securities, be misleading or so that the Offering Circular, as amended or supplemented, will comply with
all applicable law. 
 The Company hereby expressly acknowledges that the indemnification and contribution provisions of Sections 8 and 9
hereof are specifically applicable and relate to each offering circular, amendment or supplement referred to in this Section 3. 
 (c)
Copies of the Offering Circular. The Issuers agree to furnish the Initial Purchasers, without charge, as many copies of the Offering Circular and any amendments and supplements thereto as they shall reasonably request. 

(d) Blue Sky Compliance. Each of the Issuers and the Guarantors shall cooperate with the Representatives and counsel for the Initial
Purchasers to qualify or register (or to obtain exemptions from qualifying or registering) all or any part of the Securities for offer and sale under the securities or Blue Sky laws of the several states of the United States, the provinces of
Canada, or any other jurisdictions that the Representatives may reasonably request, shall comply with such laws and shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the
Securities. None of the Issuers or any of the Guarantors shall be required to qualify as a foreign organization or to take any action that would subject it to general service of process in any such jurisdiction where it is not presently qualified or
where it would be subject to taxation as a foreign organization. The Company will advise the Representatives as soon as practicable of the suspension of the qualification or registration of (or any such exemption relating to) the Securities for
offering, sale or trading in any jurisdiction or to the knowledge of the Company, any initiation or threat of any proceeding for any such purpose, 

  
 15 

 
and in the event of the issuance of any order suspending such qualification, registration or exemption, each of the Issuers and the Guarantors shall use its commercially reasonable efforts to
obtain the withdrawal thereof at the earliest possible moment. 
 (e) Use of Proceeds. The Issuers shall apply the net proceeds from
the sale of the Securities sold by them in the manner described under the caption “Use of Proceeds” in the Offering Circular. 

(f) The Depositary. The Company will cooperate with the Initial Purchasers and use its commercially reasonable efforts to permit the
Securities to be eligible for clearance and settlement through the facilities of the Depositary. 
 (g) Additional Issuer
Information. Prior to the completion of the placement of the Securities by the Initial Purchasers with the Subsequent Purchasers or prior to the expiration of nine months after the date of the Offering Circular, whichever is shorter, the Parent
shall file, on a timely basis, with the Commission and the New York Stock Exchange (the “NYSE”) all reports and documents required to be filed under Section 13 or 15 of the Exchange Act. Additionally, at any time when the
Parent is not subject to Section 13 or 15 of the Exchange Act, for the benefit of holders and beneficial owners from time to time of the Securities, the Parent shall furnish, at its expense, upon request, to holders and beneficial owners of
Securities and prospective purchasers of Securities information satisfying the requirements of Rule 144A(d). 
 (h) Agreement Not To
Offer or Sell Additional Securities. During the period of 90 days following the date hereof, the Issuers will not, without the prior written consent of the Representatives (which consent may be withheld at the sole discretion of the
Representatives), directly or indirectly, sell, offer, contract or grant any option to sell, pledge, transfer or establish an open “put equivalent position” within the meaning of Rule 16a-1 under the Exchange Act, or otherwise dispose of
or transfer, or announce the offering of, or file any registration statement under the Securities Act in respect of, any debt securities of the Issuers or the Parent or securities exchangeable for or convertible into debt securities of the Issuers
or the Parent (other than as contemplated by this Agreement). 
 (i) Future Reports to the Initial Purchasers. At any time when the
Parent is not subject to Section 13 or 15 of the Exchange Act and any Securities remain outstanding, the Parent will furnish to the Representatives and, upon reasonable request, to each of the other Initial Purchasers: (i) as soon as
practicable after the end of each fiscal year, copies of the Annual Report of the Parent containing the balance sheet of the Parent as of the close of such fiscal year and statements of income, stockholders’ equity and cash flows for the year
then ended and the opinion thereon of the Parent’s independent public or certified public accountant. 
 (j) No Integration.
Each of the Issuers agrees that it will not and will cause its Affiliates not to make any offer or sale of securities of the Issuers of any class if, as a result of the doctrine of “integration” referred to in Rule 502 under the Securities
Act, such offer or sale would render invalid (for the purpose of (i) the sale of the Securities by the Issuers to the Initial Purchasers, (ii) the resale of the Securities by the Initial Purchasers to Subsequent Purchasers or
(iii) the resale of the Securities by such Subsequent Purchasers to others) the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof or by Rule 144A or by Regulation S thereunder or otherwise.

  
 16 

 (k) No General Solicitation or Directed Selling Efforts. The Company agrees that it will
not and will not permit any of its Affiliates or any other person acting on its or their behalf (other than the Initial Purchasers, as to which no covenant is given) to (i) solicit offers for, or offer or sell, the Securities by means of any
form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act or (ii) engage in any directed
selling efforts with respect to the Securities within the meaning of Regulation S, and the Company will and will cause all such persons to comply with the offering restrictions requirement of Regulation S with respect to the Securities. 

(l) No Restricted Resales. The Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities
Act) to resell any of the Notes that have been reacquired by any of them. 
 (m) Legended Securities. Each certificate for a Note
will bear the legend contained in “Transfer Restrictions” in the Offering Circular for the time period and upon the other terms stated in the Offering Circular. 

The Representatives, on behalf of the several Initial Purchasers, may, in their sole discretion, waive in writing the performance by the
Issuers or any Guarantor of any one or more of the foregoing covenants or extend the time for their performance. 
 4. Payment of
Expenses. Subject to Section 10 hereof, each of the Issuers and the Guarantors agrees to pay all costs, fees and expenses incurred in connection with the performance of its obligations hereunder and in connection with the transactions
contemplated hereby, including, without limitation, (i) all expenses incident to the issuance and delivery of the Securities (including all printing and engraving costs), (ii) all necessary issue, transfer and other stamp taxes in
connection with the issuance and sale of the Securities to the Initial Purchasers, (iii) all fees and expenses of the Issuers’ and the Guarantors’ counsel, independent public or certified public accountants and other advisors,
(iv) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Offering Circular (including financial statements and exhibits), and all amendments and supplements thereto, and the
Transaction Documents, (v) all filing fees, attorneys’ fees and expenses incurred by the Issuers, the Guarantors or the Initial Purchasers in connection with qualifying or registering (or obtaining exemptions from the qualification or
registration of) all or any part of the Securities for offer and sale under the securities laws of the several states of the United States, the provinces of Canada, or other jurisdictions that the Initial Purchasers may reasonably request
(including, without limitation, the cost of preparing, printing and mailing preliminary and final blue sky or legal investment memoranda and any related supplements to the Offering Circular), (vi) the fees and expenses of the Trustee, including
the fees and disbursements of counsel for the Trustee in connection with the Indenture and the Securities, (vii) any fees payable in connection with the rating of the Securities with the ratings agencies, (viii) all fees and expenses
(including reasonable fees and expenses of counsel) of the Issuers and the Guarantors in connection with approval of the Securities by the Depositary for “book-entry” transfer, and the performance by the Issuers and the Guarantors of

  
 17 

 
their respective other obligations under this Agreement, (ix) 50% of the out-of-pocket costs and expenses of aircraft used in connection with the “road show” for the offering of
the Securities and (x) all other expenses incident to the “road show” for the offering of the Securities. Except as provided in this Section 4 and Sections 6, 8 and 9 hereof, the Initial Purchasers shall pay their own
expenses, including the fees and disbursements of their counsel. 
 5. Conditions of the Obligations of the Initial Purchasers. The
obligations of the several Initial Purchasers to purchase and pay for the Securities as provided herein on the Closing Date shall be subject to the accuracy of the representations and warranties on the part of the Issuers and the Guarantors set
forth in Section 1 hereof as of the date hereof and as of the Closing Date as though then made and to the timely performance by the Issuers of their covenants and other obligations hereunder, and to each of the following additional conditions:

 (a) Accountants’ Comfort Letters. On the date hereof, the Initial Purchasers shall have received from each of KPMG LLP, the
independent registered public accounting firm for the Parent (“KPMG”), and Deloitte & Touche LLP, the independent auditors for Arizona (“Deloitte”), a “comfort letter” dated the date hereof
addressed to the Initial Purchasers, in form and substance satisfactory to the Representatives, covering the financial information in the Offering Circular and other customary matters. In addition, on the Closing Date, the Initial Purchasers shall
have received from each of KPMG and Deloitte a “bring-down comfort letter” dated the Closing Date addressed to the Initial Purchasers, in form and substance satisfactory to the Representatives, in the form of the “comfort letter”
delivered on the date hereof, except that procedures shall be brought down to a date no more than 3 days prior to the Closing Date. 
 (b)
No Material Adverse Change or Ratings Agency Change. For the period from and after the date of this Agreement and prior to the Closing Date: 

(i) in the judgment of the Representatives there shall not have occurred any change, or any development or event involving a
prospective change, in the condition (financial or otherwise), results of operations, business, properties or prospects of the Parent and its subsidiaries taken as a whole which, is material and adverse and makes it impractical or inadvisable to
proceed with the offering or the delivery of the Securities on the Closing Date on the terms and in the manner contemplated in the Offering Circular; and 

(ii) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential
downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded the Parent or any of its subsidiaries or any of their securities or indebtedness by any “nationally
recognized statistical rating organization” as such term is defined for purposes of 15c3-1(c)(2)(vi)(F) under the Exchange Act. 
 (c)
Opinion of Counsel for the Issuers. On the Closing Date the Initial Purchasers shall have received the favorable opinion of (i) Cleary Gottlieb Steen & Hamilton LLP, counsel for the Issuers, dated as of such Closing Date, the
form of which is attached as Exhibit A-1 and (ii) Baker Botts L.L.P., counsel for the Issuers, dated as of such Closing Date, the form of which is attached as Exhibit A-2. 

  
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 (d) Opinion of General Counsel. On the Closing Date the Initial Purchasers shall have
received the favorable opinion of (i) James L. Simmons, Esq., General Counsel of the Issuers, dated as of such Closing Date, the form of which is attached as Exhibit B-1, and (ii) Dick Stuyfzand, Esq., General Counsel of Arizona, dated as
of such Closing Date, the form of which is attached as Exhibit B-2. 
 (e) Opinion of Counsel for Initial Purchasers. On the Closing
Date the Initial Purchasers shall have received the favorable opinion of Latham & Watkins LLP, counsel for the Initial Purchasers, dated as of such Closing Date, with respect to such matters as may be reasonably requested by the Initial
Purchasers. 
 (f) Officers’ Certificate. The Representatives shall have received a certificate, dated such Closing Date, of an
executive officer of the Issuers and a principal financial or accounting officer of the Issuers in which such officers shall state that: the representations and warranties of the Issuers in this Agreement are true and correct; the Issuers have
complied with all material agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to such Closing Date; subsequent to the execution and delivery of this Agreement, there has been no downgrading in the
rating of any debt securities of the Parent or its subsidiaries by any “nationally recognized statistical rating organization” (as defined for purposes of Rule 15c3-1(c)(2)(vi)(F) of the Exchange Act) or any public announcement that any
such organization has under surveillance or review its rating of any debt securities of the Parent or its subsidiaries (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of
such rating); and, subsequent to the date of the most recent financial statements in the Offering Circular, there has been no material adverse change, nor any development or event involving a prospective material adverse change, in the condition
(financial or otherwise), results of operations, business, properties or prospects of the Parent and its subsidiaries taken as a whole except as set forth in the Offering Circular or as described in such certificate. 

(g) Indenture. The Company and the Subsidiary Guarantors shall have executed and delivered the Indenture, in form and substance
reasonably satisfactory to the Initial Purchasers, and the Initial Purchasers shall have received executed copies thereof. 
 (h) Joinder
Agreement. The Additional Guarantors shall have executed and delivered the Joinder Agreement and the Initial Purchasers shall have received executed copies thereof. 

(i) Transactions. The Transactions shall have been consummated substantially concurrently with or immediately following the closing of
this offering of Notes on the terms and conditions described in the Offering Circular. The Initial Purchasers shall have received satisfactory documentary evidence of the repayment in full of all debt under the Company’s existing credit
facilities. 
 (j) Certificate of Chief Financial Officer. The Representatives shall have received a certificate of each of the Chief
Financial Officer of the Parent and the Chief Financial Officer of Arizona dated the date of this Agreement and in form and substance reasonably satisfactory to the Representatives and counsel to the Initial Purchasers. 

  
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 (k) Additional Documents. On or before the Closing Date, the Initial Purchasers and
counsel for the Initial Purchasers shall have received such information, documents and opinions as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Securities as contemplated herein, or in order
to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained. 

If any condition specified in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by
the Representatives by notice to the Issuers at any time on or prior to the Closing Date, which termination shall be without liability on the part of any party to any other party, except that Sections 4, 6, 8 and 9 hereof shall at all times be
effective and shall survive such termination. 
 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is
terminated by the Representatives pursuant to Section 5 or Section 11 hereof, including if the sale to the Initial Purchasers of the Securities on the Closing Date is not consummated because of any refusal, inability or failure on the part
of the Issuers to perform any agreement herein or to comply with any provision hereof, the Issuers agree to reimburse the Initial Purchasers, severally, upon demand for all documented out-of-pocket expenses that shall have been reasonably incurred
by the Initial Purchasers in connection with the proposed purchase and the offering and sale of the Securities, including, without limitation, fees and disbursements of counsel, printing expenses, travel expenses, postage, facsimile and telephone
charges. 
 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one hand, and the Issuers and each of the
Guarantors, on the other hand, hereby agree to observe the following procedures in connection with the offer and sale of the Securities: 

(a) Offers and sales of the Securities will be made only by the Initial Purchasers or Affiliates thereof qualified to do so in the
jurisdictions in which such offers or sales are made. Each such offer or sale shall only be made to persons whom the offeror or seller reasonably believes to be Qualified Institutional Buyers or non-U.S. persons outside the United States to whom the
offeror or seller reasonably believes offers and sales of the Securities may be made in reliance upon Regulation S upon the terms and conditions set forth in Annex I hereto, which Annex I is hereby expressly made a part hereof. 

(b) The Securities will be offered by approaching prospective Subsequent Purchasers on an individual basis. No general solicitation or general
advertising (within the meaning of Rule 502 under the Securities Act) will be used in the United States in connection with the offering of the Securities. 

(c) Upon original issuance by the Issuers, and until such time as the same is no longer required under the applicable requirements of the
Securities Act, the Notes (and all securities issued in exchange therefor or in substitution thereof) shall bear the following legend: 

“THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE
U.S. SECURITIES 

  
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ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY
ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER: 
 (1) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH IT IS ACTING,
(A) IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) OR (B) IS NOT A “U.S. PERSON” (WITHIN THE MEANING OF RULE 902 OF REGULATION S UNDER THE SECURITIES ACT), AND THAT IT
EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND 
 (2) AGREES FOR THE BENEFIT OF THE ISSUERS THAT IT WILL NOT
OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE RESALE RESTRICTION TERMINATION DATE (AS DEFINED IN THE NEXT PARAGRAPH), EXCEPT: 

(A) TO THE PARENT OR ANY SUBSIDIARY THEREOF, OR 

(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, OR 

(C) TO A PERSON REASONABLY BELIEVED TO BE A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR 

(D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT; OR 

(E) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 
 THE RESALE RESTRICTION TERMINATION DATE WILL BE THE DATE (1) THAT IS AT LEAST ONE
YEAR AFTER THE ORIGINAL ISSUE DATE HEREOF AND (2) ON WHICH THE ISSUERS INSTRUCT THE TRUSTEE THAT THIS LEGEND SHALL BE DEEMED REMOVED FROM THIS SECURITY, IN ACCORDANCE WITH THE PROCEDURES DESCRIBED IN THE INDENTURE RELATED TO THIS SECURITY. 

  
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 PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH 2(B) ABOVE, THE ISSUERS AND THE
TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.” 

Following the sale of the Securities by the Initial Purchasers to Subsequent Purchasers pursuant to the terms hereof, the Initial Purchasers
shall not be liable or responsible to the Issuers for any losses, damages or liabilities suffered or incurred by the Issuers, including any losses, damages or liabilities under the Securities Act, arising from or relating to any resale or transfer
of any Security. 
 8. Indemnification. 

(a) Indemnification of the Initial Purchasers. Each of the Issuers and the Guarantors, jointly and severally, agrees to indemnify and
hold harmless each Initial Purchaser, its affiliates, directors, officers and employees, and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act
against any loss, claim, damage, liability or expense, as incurred, to which such Initial Purchaser, affiliate, director, officer, employee or controlling person may become subject, under Section 15 of the Securities Act, Section 20 of the
Exchange Act or other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Issuers), insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any Issuer Additional Written Communication or the
Offering Circular (or any amendment or supplement thereto (including, for the avoidance of doubt, any Updated Offering Circular as defined in Section 10 hereof)), or the omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and to reimburse each Initial Purchaser and each such affiliate, director, officer, employee or controlling person for any and all
expenses (including the fees and disbursements of counsel) as such expenses are reasonably incurred by such Initial Purchaser or such affiliate, director, officer, employee or controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the foregoing indemnity agreement shall not apply, with respect to an Initial Purchaser, to any loss, claim, damage, liability or expense to
the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Issuers by any
Initial Purchaser through the Representatives expressly for use in any Issuer Additional Written Communication or the Offering Circular (or any amendment or supplement thereto (including, for the avoidance of doubt, any Updated Offering Circular as
defined in Section 10 hereof)). The indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Issuers may otherwise have. 

  
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 (b) Indemnification of the Issuers and the Guarantors. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Issuers, each Guarantor, each of their respective directors, officers and employees, and each person, if any, who controls the Issuers or any Guarantor within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, against any loss, claim, damage, liability or expense, as incurred, to which the Issuers, any Guarantor or any such director, officer and employee, or controlling person
may become subject, under Section 15 of the Securities Act, Section 20 of the Exchange Act, or other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement
is effected with the written consent of such Initial Purchaser), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon any untrue statement or alleged untrue
statement of a material fact contained in any Issuer Additional Written Communication or the Offering Circular (or any amendment or supplement thereto (including, for the avoidance of doubt, any Updated Offering Circular as defined in
Section 10 hereof)), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent,
but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Issuer Additional Written Communication or the Offering Circular (or any amendment or supplement thereto (including, for
the avoidance of doubt, any Updated Offering Circular as defined in Section 10 hereof)), in reliance upon and in conformity with written information furnished to the Issuers by any Initial Purchaser through the Representatives expressly for use
therein; and to reimburse the Issuers, any Guarantor and each such director, officer and employee, or controlling person for any and all expenses (including the fees and disbursements of counsel) as such expenses are reasonably incurred by the
Issuers, any Guarantor or such director, officer or employee, or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. Each of the Issuers and the
Guarantors hereby acknowledges that the only information that the Initial Purchasers through the Representatives have furnished to the Issuers expressly for use any Issuer Additional Written Communication or the Offering Circular (or any amendment
or supplement thereto (including, for the avoidance of doubt, any Updated Offering Circular as defined in Section 10 hereof)) are the statements set forth in the ninth and tenth paragraphs and the third and fourth sentences of the seventh
paragraph under the caption “Plan of Distribution” in the Offering Circular. The indemnity agreement set forth in this Section 8(b) shall be in addition to any liabilities that each Initial Purchaser may otherwise have. 

(c) Notifications and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 8 of
notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under Section 8(a) or Section 8(b), notify the indemnifying party in writing of the
commencement thereof; provided that the failure to so notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party under Section 8(a) or Section 8(b) except to the extent that it has been
materially prejudiced by such failure (through the forfeiture of substantive rights and defenses) and shall not relieve the indemnifying party from any liability that the indemnifying party may have to an indemnified party other than under
Section 8(a) 

  
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or Section 8(b). In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying
party will be entitled to participate in and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from
such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of such action
and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under Section 8(a) or Section 8(b) for any legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (it being understood, however, that the indemnifying party shall not
be liable for the expenses of more than one separate counsel (together with local counsel (in each jurisdiction)), which shall be selected by the Representatives (in the case of counsel representing the Initial Purchasers or their related persons),
representing the indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice
of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party. 

(d) Settlements. The indemnifying party under this Section 8 shall not be liable for any settlement of any proceeding effected
without its written consent, which will not be unreasonably withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim,
damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of
counsel as contemplated by this Section 8, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after
receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request or disputed in good faith the indemnified party’s entitlement to
such reimbursement prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened
action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an
unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (ii) does not include any statements as to or any findings of fault, culpability or failure to act
by or on behalf of any indemnified party. 

  
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 9. Contribution. If the indemnification provided for in Section 8 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party shall contribute to the aggregate
amount paid or payable by such indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, from the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the
other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Issuers and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the
offering of the Securities pursuant to this Agreement (before deducting expenses) received by the Issuers, and the total discount received by the Initial Purchasers bear to the aggregate initial offering price of the Securities. The relative fault
of the Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by the Issuers and the Guarantors, on the one hand, or the Initial Purchasers, on the other hand, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. 
 The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 8 hereof, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or
defending any action or claim. The provisions set forth in Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 9; provided, however, that no
additional notice shall be required with respect to any action for which notice has been given under Section 8 hereof for purposes of indemnification. 

The Company, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this
Section 9 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this
Section 9. 
 Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to contribute any amount in
excess of the discount received by such Initial Purchaser in connection with the Securities distributed by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11 of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to 

  
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contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective commitments as set forth opposite their names in Schedule A hereto. For purposes of
this Section 9, each director, officer and employee of an Initial Purchaser and each person, if any, who controls an Initial Purchaser within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act shall
have the same rights to contribution as such Initial Purchaser, and each director officer and employee of the Issuers or any Guarantor, and each person, if any, who controls the Issuers or any Guarantor with the meaning of the Securities Act and the
Exchange Act shall have the same rights to contribution as the Issuers and the Guarantors. 
 10. Agreement to
Cooperate. 
 (x) At least two business days in advance of the Closing Date, in connection with any issuance of
Securities pursuant to Section 3 of this Agreement and (y) after the Closing Date and until the Cooperation Termination Date (as defined below) upon the written request of the Initial Purchasers (or the Initial Purchasers’ affiliates)
holding a majority in aggregate principal amount of the Securities then held by the Initial Purchasers as of the date such notice is sent (the “Requisite Initial Purchasers”) (it being understood that your obligations hereunder
(i) shall continue at all times prior to February 15, 2016 and (ii) up to two additional times as specified in such written request thereafter each for a period of up to 45 days), you agree that you shall: 

(a) (x) use commercially reasonable efforts to, on or before the date on which the financial statements included in the Offering Circular or
the most recently delivered Updated Offering Circular (as defined below) would no longer be sufficiently recent to meet the requirements of Rule 3-12 of Regulation S-X under the Securities Act for a registered offering of debt securities by the
Company, and (y) if not delivered prior thereto in accordance with the foregoing clause (x), in any case, on or before each of (A) the date 45 days after the end of each fiscal quarter (other than the fiscal quarter ended on
December 31, 2015), (B) the date 90 days after the end of the fiscal quarter ending on December 31, 2015 (each such date, a “Delivery Date”), provide to the Initial Purchasers an updated version of the Offering
Circular (or a supplement thereto) (as so amended, supplemented or updated from time to time in accordance with the terms hereof, the “Updated Offering Circular”) in a form customary for a Rule 144A offering and in form and content
consistent with the Offering Circular (including all financial statements, pro forma financial statements, business and other financial data of the type required in a registered offering by Regulation S-X and Regulation S-K under the Securities Act
(other than (i) Rule 3-10 of Regulation S-X and (ii) information of the type not contained in the Offering Circular, and otherwise subject to exceptions customary for private placements pursuant to Rule 144A promulgated under the
Securities Act) or that would be necessary for the Initial Purchasers to receive customary (for high yield debt securities) “comfort” (including “negative assurance” comfort) from independent accountants in connection with the
offering of the Securities, and, in the case of the annual financial statements, the auditors’ reports thereon); such Updated Offering Circular shall be complete and correct in all material respects and not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made; 

(b) upon written notice from the Requisite Initial Purchasers (each a “Sale Date”), use commercially reasonable efforts to
provide the Initial Purchasers on each date to be 

  
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specified by them on which an offer and resale is to be consummated or is reasonably expected to be consummated to the extent the following items are determined by the Requisite Initial
Purchasers in good faith to be necessary or customary in light of the contemplated manner of sale: 
 (i) for each fiscal
year end, customary “flash numbers” of the Parent and Arizona to be included in a customary “Recent Developments” section of an offering document, including revenue and Adjusted EBITDA and which such flash numbers shall be
provided, (1) with such flash numbers for fiscal year 2015 being provided no later than January 21, 2016 and (2) with such flash numbers for fiscal year 2016 being provided no later than January 31, 2017; 

(ii) opinion and negative assurance letters, as the case may be, consistent in all respects with those set forth in
Section 5 of this Agreement and dated such Sale Date; 
 (iii) (A) a “comfort” letter dated such Sale Date
with respect to the Parent and the Updated Offering Circular, from KPMG and addressed to the Initial Purchasers, such letter or letters to be in the forms previously negotiated with KPMG (as appropriately updated) and (B) a “comfort”
letter dated such Sale Date with respect to Arizona and the Updated Offering Circular, from Deloitte and addressed to the Initial Purchasers, such letter or letters to be in the forms previously negotiated with Deloitte (as appropriately updated);

 (iv) a certificate of an executive officer of the Issuers and a principal financial or accounting officer of the Issuers
dated as of such Sale Date and consistent in all respects with the certificate of the Issuers to be delivered pursuant to Section 5(f) (provided that references therein to the Closing Date shall be to such Sale Date and that references therein
to the Offering Circular shall include or replace, as the case may be, any Updated Offering Circular); and 
 (v) (A) a
certificate of the Chief Financial Officer of the Parent dated as of such Sale Date and consistent in all respects with the certificate of the Chief Financial Officer of the Parent to be delivered pursuant to Section 5(j) (provided that
references therein to the Closing Date shall be to such Sale Date and that references therein to the Offering Circular shall include or replace, as the case may be, any Updated Offering Circular) and (B) a certificate of the Chief Financial
Officer of Arizona dated as of such Sale Date and consistent in all respects with the certificate of the Chief Financial Officer of Arizona to be delivered pursuant to Section 5(j) (provided that references therein to the Closing Date shall be
to such Sale Date and that references therein to the Offering Circular shall include or replace, as the case may be, any Updated Offering Circular); 

(c) using commercially reasonable efforts to assist the Initial Purchasers in their marketing efforts for the resale of Securities by
(i) providing to the Initial Purchasers and their counsel all information they reasonably request to update due diligence to each Delivery Date and each Sale Date, including making representatives of the Issuers and the Guarantors available to
participate in “bringdown” due diligence calls with the Initial Purchasers and their counsel on or reasonably prior to each Delivery Date and each Sale Date and (ii) making representatives of the Issuers and the Guarantors available
to participate in a roadshow and in in-person meetings and conference calls with prospective investors upon the reasonable request of the Initial Purchasers; 

  
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 (d) to the extent not previously completed on or before the Closing Date, (i) use
commercially reasonable efforts to qualify or register all or any part of the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Initial Purchasers may reasonably request and to comply with such laws and
continue such qualifications, registrations and exemptions so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Securities, (ii) using all
commercially reasonable efforts to cause the Securities to become eligible for deposit at DTC (in book entry form) prior to the initial issuance thereof, including by filing with DTC an appropriately executed letter of representations and any
required riders and (iii) using commercially reasonable efforts to obtain “CUSIP” and “ISIN” numbers and ratings from each of Moody’s and S&P for the Securities; 

(e) furnish to each Initial Purchaser and to counsel for the Initial Purchasers as many copies of each Updated Offering Circular and any
amendments and/or supplements thereto as they may reasonably request; 
 (f) subject to the provisions of Section 10(a) and
Section 10(g), not make any amendment or supplement to an Updated Offering Circular (other than a result of filing of reports required to be filed under the Exchange Act) or otherwise distribute or refer to any written communication that shall
be reasonably disapproved by one or more Initial Purchasers holding a majority of the Securities then held by the Initial Purchasers after reasonable notice thereof; and 

(g) if, at any time prior to completion of the resale of all the Securities by the Initial Purchasers (as determined by one or more Initial
Purchasers holding a majority of the outstanding Securities then held by the Initial Purchasers), any event occurs or information becomes known that, in the reasonable judgment of the Issuers or any of the Guarantors or in the opinion of counsel for
the Initial Purchasers, should be set forth in the Offering Circular or any Updated Offering Circular, so that Offering Circular or any Updated Offering Circular, as then amended or supplemented, does not include any untrue statement of material
fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary to amend or supplement the Offering Circular or any Updated
Offering Circular in order to comply with any law, the Issuers and the Guarantors will forthwith prepare an appropriate amendment or supplement thereto, and will expeditiously furnish to the Initial Purchasers and dealers a reasonable number of
copies thereof. 
 The provisions set forth in this Section 10 shall terminate on the earlier of (A) last day of the fourth full
fiscal quarter following the Closing Date and (B) the date that the Initial Purchasers no longer hold any Securities (such earlier date, the “Cooperation Termination Date”). 

Additionally, if the Initial Purchasers market any Securities after February 15, 2016, the Initial Purchasers agree to pay (A) all
reasonable and documented fees and expenses of the Issuers’ and the Guarantors’ independent public or certified public accountants and other advisors, (B) all reasonable and documented costs and expenses incurred in connection with
the preparation, 

  
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printing, filing, shipping and distribution of the pricing term sheet and Updated Offering Circular (including financial statements and exhibits), and all amendments and supplements thereto, and
any other transaction documents and (C) all reasonable and documented attorneys’ fees and expenses and travel and roadshow expenses incurred by the Issuers, the Guarantors and the Initial Purchasers; provided that the Initial Purchasers
will not be required to reimburse the Issuers for any of their out of pocket expenses (other than travel and roadshow costs) in the aggregate pursuant to this paragraph for accounting, printing and legal costs in excess of $500,000. 

11. Termination of this Agreement. Prior to the Closing Date, this Agreement may be terminated by the Representatives by notice given
to the Issuers if at any time: (i) trading or quotation in any of the Issuers’ or any Guarantor’s securities shall have been suspended or limited by the Commission or by the NYSE, or trading in securities generally on either the
Nasdaq Stock Market or the NYSE shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any such quotation system or stock exchange by the Commission or the Financial Industry Regulatory Authority,
Inc.; (ii) a general banking moratorium shall have been declared by any of federal or New York or Delaware authorities; (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or
calamity, or any change in the U.S. or international financial markets, or any substantial change or development involving a prospective substantial change in U.S. or international political, financial or economic conditions, as in the judgment of
the Representatives is material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities in the manner and on the terms described in the Offering Circular or to enforce contracts for the
sale of securities; or (iv) in the judgment of the Representatives, there shall have occurred any change, or any development or event involving a prospective change, in the condition (financial or otherwise), results of operations, business,
properties or prospects of the Parent and its subsidiaries taken as a whole which, is material and adverse and makes it impractical or inadvisable to proceed with the offering or delivery of the Securities on the terms and in the manner contemplated
in the Offering Circular. Any termination pursuant to this Section 11 shall be without liability on the part of (i) the Issuers or any Guarantor to any Initial Purchaser, except that the Issuers and the Guarantors shall be obligated to
reimburse the expenses of the Initial Purchasers pursuant to Sections 4 and 6 hereof, (ii) any Initial Purchaser to the Issuers, or (iii) any party hereto to any other party except that the provisions of Sections 8 and 9 hereof
shall at all times be effective and shall survive such termination. 
 12. Representations and Indemnities to Survive Delivery. The
respective indemnities, agreements, representations, warranties and other statements of the Issuers, the Guarantors, their respective officers and the several Initial Purchasers set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation made by or on behalf of any Initial Purchaser, the Issuers, any Guarantor or any of their partners, officers or directors or any controlling person, as the case may be, and will survive delivery of
and payment for the Securities sold hereunder and any termination of this Agreement. 
 13. Notices. All communications hereunder
shall be in writing and shall be mailed, hand delivered, couriered or facsimiled and confirmed to the parties hereto as follows: 
 If to
the Initial Purchasers: 
 Credit Suisse Securities (USA) LLC 

Eleven Madison Avenue 
 New York,
New York 10010 
 Attention: LCD-IBD 

  
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 with a copy (which shall not constitute notice) to: 

Latham & Watkins LLP 

885 Third Ave. 
 New York, NY
10022 
 Facsimile: (212) 751-4864 

Attention: Peter Labonski 
 If to
the Issuers or the Guarantors: 
 Kraton Performance Polymers, Inc. 

15710 John F. Kennedy Boulevard, Suite 300, 

Houston, Texas 77032 
 Facsimile:
(281) 504-4700 
 Attention: General Counsel 

with a copy (which shall not constitute notice) to: 

Cleary Gottlieb Steen & Hamilton LLP 

One Liberty Plaza 
 New York, NY
10006 
 Facsimile: (212) 225-3999 

Attention: Duane McLaughlin 
 and

 Baker Botts L.L.P. 
 910
Louisiana Street 
 Houston, Texas 77002 

Facsimile: (713) 229-1522 

Attention: Timothy Taylor 
 Any
party hereto may change the address or facsimile number for receipt of communications by giving written notice to the others. 
 14.
Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the indemnified parties referred to in Sections 8 and 9 hereof, and in each case their respective successors, and no
other person will have any right or obligation hereunder. The term “successors” shall not include any Subsequent Purchaser or other purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such purchase.

  
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 15. Authority of the Representative. Any action by the Initial Purchasers hereunder may be
taken by the Representatives on behalf of the Initial Purchasers, and any such action taken by the Representatives shall be binding upon the Initial Purchasers. 

16. Partial Unenforceability. The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not
affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such
minor changes (and only such minor changes) as are necessary to make it valid and enforceable. 
 17. Governing Law Provisions. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF. 

18. Consent to Jurisdiction; Waiver of Jury Trial. Any legal suit, action or proceeding arising out of or based upon this Agreement or
the transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts of the United States located in the City and County of New York or the courts of the State of New York in each case located in
the City and County of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for suits, actions, or proceedings instituted in regard to the enforcement of a
judgment of any Specified Court in a Related Proceeding, as to which such jurisdiction is non-exclusive) of the Specified Courts in any Related Proceeding. Service of any process, summons, notice or document by mail to such party’s address set
forth above shall be effective service of process for any Related Proceeding brought in any Specified Court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any Related Proceeding in the Specified Courts and
irrevocably and unconditionally waive and agree not to plead or claim in any Specified Court that any Related Proceeding brought in any Specified Court has been brought in an inconvenient forum. The parties hereby irrevocably waive, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. 

19. Default of One or More of the Several Initial Purchasers. If any one or more of the several Initial Purchasers shall fail or refuse
to purchase the Securities that it or they have agreed to purchase hereunder on the Closing Date, and the aggregate number of the Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does
not exceed 10% of the aggregate number of the Securities to be purchased on such date, the other Initial Purchasers shall be obligated, severally, in the proportions that the number of the Securities set forth opposite their respective names on
Schedule A hereto bears to the aggregate number of the Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other proportions as may be specified by the Initial Purchasers with the consent of the
non-defaulting Initial Purchasers, to purchase the Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase on the Closing Date. If any one or more of the Initial Purchasers shall fail or
refuse to purchase Securities and the aggregate number of the Securities with respect to which such default occurs exceeds 10% of the aggregate number of the Securities to be purchased on the Closing Date, and arrangements satisfactory to the
Initial Purchasers and the Issuers for the purchase of such Securities are not made within 48 hours after 

  
 31 

 
such default, this Agreement shall terminate without liability of any party to any other party except that the provisions of Sections 4, 6, 8 and 9 hereof shall at all times be effective and
shall survive such termination. In any such case either the Initial Purchasers or the Issuers shall have the right to postpone the Closing Date, as the case may be, but in no event for longer than seven days in order that the required changes, if
any, to the Offering Circular or any other documents or arrangements may be effected. 
 As used in this Agreement, the term
“Initial Purchaser” shall be deemed to include any person substituted for a defaulting Initial Purchaser under this Section 19. Any action taken under this Section 19 shall not relieve any defaulting Initial Purchaser from
liability in respect of any default of such Initial Purchaser under this Agreement. 
 20. No Advisory or Fiduciary Responsibility.
Each of the Issuers and the Guarantors acknowledges and agrees that: (i) the purchase and sale of the Securities pursuant to this Agreement, including the determination of the offering price of the Securities and any related discounts and
commissions, is an arm’s-length commercial transaction between the Issuers and the Guarantors, on the one hand, and the several Initial Purchasers, on the other hand, and the Issuers and the Guarantors are capable of evaluating and
understanding and understand and accept the terms, risks and conditions of the transactions contemplated by this Agreement; (ii) in connection with each transaction contemplated hereby and the process leading to such transaction each Initial
Purchaser is and has been acting solely as a principal and is not the agent or fiduciary of the Issuers, the Guarantors or their respective affiliates, stockholders, creditors or employees or any other party; (iii) no Initial Purchaser has
assumed or will assume an advisory or fiduciary responsibility in favor of the Issuers and the Guarantors with respect to any of the transactions contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser has
advised or is currently advising the Issuers and the Guarantors on other matters) or any other obligation to the Issuers and the Guarantors except the obligations expressly set forth in this Agreement; (iv) the several Initial Purchasers and
their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Issuers and the Guarantors, and the several Initial Purchasers have no obligation to disclose any of such interests by
virtue of any fiduciary or advisory relationship; and (v) the Initial Purchasers have not provided any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby, and the Issuers and the Guarantors have
consulted their own legal, accounting, regulatory and tax advisors to the extent they deemed appropriate. 
 The Company and the Guarantors
hereby waive and release, to the fullest extent permitted by law, any claims that the Issuers and the Guarantors may have against the several Initial Purchasers with respect to any breach or alleged breach of fiduciary duty. 

In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial
Purchasers are required to obtain, verify and record information that identifies their respective clients, including the Parent and its subsidiaries, which information may include the name and address of their respective clients, as well as other
information that will allow the Initial Purchasers to properly identify their respective clients. 
 21. General Provisions. This
Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral 

  
 32 

 
agreements, understandings and negotiations with respect to the subject matter hereof. This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the
same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by telecopier, facsimile or other electronic transmission (i.e., a “pdf” or
“tif”) shall be effective as delivery of a manually executed counterpart thereof. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit. The section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement. 

  
 33 

 If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Issuers the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms. 

 

			
	Very truly yours,
	
	Kraton Polymers LLC
		
	By:	 	 /s/ Stephen E. Tremblay

	Name:	 	Stephen E. Tremblay
	Title:	 	Executive Vice President and Chief Financial Officer
	
	Kraton Polymers Capital Corporation
		
	By:	 	 /s/ Stephen E. Tremblay

	Name:	 	Stephen E. Tremblay
	Title:	 	Executive Vice President and Chief Financial Officer
	
	as Issuers
	
	Kraton Performance Polymers, Inc.
		
	By:	 	 /s/ Stephen E. Tremblay

	Name:	 	Stephen E. Tremblay
	Title:	 	Executive Vice President and Chief Financial Officer
	
	Elastomers Holdings LLC
		
	By:	 	 /s/ Stephen E. Tremblay

	Name:	 	Stephen E. Tremblay
	Title:	 	Executive Vice President and Chief Financial Officer
	
	Kraton Polymers U.S. LLC
		
	By:	 	 /s/ Stephen E. Tremblay

	Name:	 	Stephen E. Tremblay
	Title:	 	Executive Vice President and Chief Financial Officer
	
	as Guarantors

  
 [Signature Page to
Purchase Agreement] 

 The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as of
the date first above written. 
  

			
	CREDIT SUISSE SECURITIES (USA) LLC
	         Acting on behalf of itself

        and as the Representative of

        the several Initial Purchasers

		
	By:	 	 /s/ Jonathan Singer

	Name:	 	Jonathan Singer
	Title:	 	Managing Director

  
 [Signature Page to
Purchase Agreement] 

			
	NOMURA SECURITIES INTERNATIONAL, INC.
	         Acting on behalf of itself

        and as the Representative of

        the several Initial Purchasers

		
	By:	 	 /s/ Lee Olive

	Name:	 	Lee Olive
	Title:	 	Managing Director

  
 [Signature Page to
Purchase Agreement] 

			
	DEUTSCHE BANK SECURITIES INC.
	         Acting on behalf of itself

        and as the Representative of

        the several Initial Purchasers

		
	By:	 	 /s/ Ralph Totoonchie

	Name:	 	Ralph Totoonchie
	Title:	 	Director
		
	By:	 	 /s/ Alex Barth

	Name:	 	Alex Barth
	Title:	 	Managing Director

  
 [Signature Page to
Purchase Agreement] 

 SCHEDULE A 
  

					
	 Initial Purchasers
	  	Aggregate Principal
Amount of Securities to
be Purchased	 
	 Credit Suisse Securities (USA) LLC
	  	$	231,000,000	  
	 Nomura Securities International, Inc.
	  	 	110,000,000	  
	 Deutsche Bank Securities Inc.
	  	 	99,000,000	  
		
	 Total
	  	$	440,000,000	  

 SCHEDULE B-1 

Kraton Subsidiaries 
  

			
	 	  	Jurisdiction of Organization
	 Kraton Polymer Capital Corporation
	  	Delaware
	 Elastomers Holdings LLC
	  	Delaware
	 KRATON Polymers U.S. LLC
	  	Delaware

 SCHEDULE B-2 

Arizona Subsidiaries 
  

			
	 	  	Jurisdiction of Organization
	 AZ Chem US Inc.
	  	Delaware
	 AZ Chem Intermediate Inc.
	  	Delaware
	 AZ Chem US Holdings Inc.
	  	Delaware
	 Arizona Chemical Company, LLC
	  	Delaware

 EXHIBIT A-1 

FORM OF OPINION OF CGSH 

(See Attached) 

  
 Exhibit A-1-1 

 EXHIBIT A-2 

FORM OF OPINION OF BAKER BOTTS 

(See Attached) 

  
 Exhibit A-2-1 

 Exhibit B-1 

FORM OF OPINION PARAGRAPHS OF JAMES L. SIMMONS, ESQ. 

(See Attached) 

  
 Exhibit B-1 

 Exhibit B-2 

FORM OF OPINION PARAGRAPHS OF DICK STUYFZAND, ESQ. 

(See Attached) 

  
 Exhibit B-2 

 ANNEX I 

Resale Pursuant to Regulation S. Each Initial Purchaser understands that: 

Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the Securities in the United States or to, or for the
benefit or account of, a U.S. Person (other than a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its distribution at any time and (ii) otherwise until 40 days after the later of the
commencement of the offering of the Securities pursuant hereto and the Closing Date, other than in accordance with Regulation S or another exemption from the registration requirements of the Securities Act. Such Initial Purchaser agrees that,
during such 40-day restricted period, it will not cause any advertisement with respect to the Securities (including any “tombstone” advertisement) to be published in any newspaper or periodical or posted in any public place and will not
issue any circular relating to the Securities, except such advertisements as are permitted by and include the statements required by Regulation S. 

Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Securities by it to any distributor, dealer or person receiving a
selling concession, fee or other remuneration during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such distributor, dealer or person receiving a selling concession, fee or other remuneration a
confirmation or notice to substantially the following effect: 
 “The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and may not be offered and sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of your distribution at any time or
(ii) otherwise until 40 days after the later of the date the Securities were first offered to persons other than distributors in reliance upon Regulation S and the Closing Date, except in either case in accordance with Regulation S under
the Securities Act (or in accordance with Rule 144A under the Securities Act or to accredited investors in transactions that are exempt from the registration requirements of the Securities Act), and in connection with any subsequent sale by you
of the Securities covered hereby in reliance on Regulation S under the Securities Act during the period referred to above to any distributor, dealer or person receiving a selling concession, fee or other remuneration, you must deliver a notice
to substantially the foregoing effect. Terms used above have the meanings assigned to them in Regulation S under the Securities Act.” 

  
 Annex I-1 

 ANNEX II 

FORM OF PURCHASE AGREEMENT JOINDER 

January 6, 2016 

CREDIT SUISSE SECURITIES (USA) LLC 

NOMURA SECURITIES INTERNATIONAL, INC. 

DEUTSCHE BANK SECURITIES INC. 

     As Representatives of the Initial Purchasers 

c/o Credit Suisse Securities (USA) LLC 
 Eleven Madison Avenue

 New York, New York 10010 
 Ladies and Gentlemen: 

Reference is made to the purchase agreement (the “Purchase Agreement”), dated as of January 5, 2016, initially by and
among Kraton Polymers LLC, a Delaware limited liability company (the “Company”), Kraton Polymers Capital Corporation, a Delaware corporation (the “Co-Issuer” and, together with the Company, the
“Issuers”), the guarantors named therein and you, as representatives of the several purchasers (the “Initial Purchasers”), concerning the purchase of the Securities (as defined in the Purchase Agreement) by the
several Initial Purchasers from the Issuers. Capitalized terms used herein but not defined shall have the meanings assigned to such terms in the Purchase Agreement. 

Each of the parties hereto agree that this letter agreement is being executed and delivered in connection with the issue and sale of the
Securities pursuant to the Purchase Agreement and as an inducement to the Initial Purchasers to purchase the Securities thereunder. 
 1.
Joinder. Each of the parties hereto hereby acknowledges that it has received and reviewed a copy of the Purchase Agreement and all other documents it deems necessary to review in order to enter into this Joinder Agreement, and acknowledges
and hereby agrees to join and become a party to the Purchase Agreement and to be bound by the terms, conditions, covenants, agreements, representations, warranties, acknowledgements and other provisions of the Purchase Agreement with all attendant
rights, duties and obligations stated therein (including without limitation, the obligations of an indemnifying party thereunder), with the same force and effect as if originally named therein, as a Guarantor, and, as if such party executed the
Purchase Agreement on the date thereof and perform all obligations and duties required of a Guarantor pursuant to the Purchase Agreement. 

  
 Annex II-1 

 2. Representations, Warranties and Agreements. Each of the parties hereto represents and
warrants to, and agrees with, the Initial Purchasers on and as of the date hereof that: 
 (a) it has corporate, limited liability company
or other power and authority to execute, deliver and perform its obligations under this letter agreement, and all corporate or limited liability company action required to be taken by it for the due and proper authorization, execution, delivery and
performance of this letter agreement and the consummation of the transactions contemplated hereby has been duly and validly taken; this letter agreement has been duly authorized, executed and delivered by such party; and 

(b) the representations, warranties and agreements of such party set forth in the Purchase Agreement are true and correct on and as of the
date hereof. 
 3. Full Force and Effect of Purchase Agreement. This letter agreement does not cancel, extinguish, limit or otherwise
adversely affect any right or obligation of the parities under the Purchase Agreement. The parties hereto acknowledge and agree that all of the provisions of the Purchase Agreement shall remain in full force and effect. 

4. REPRESENTATIONS AND INDEMNITIES TO SURVIVE. THE RESPECTIVE AGREEMENTS, REPRESENTATIONS, WARRANTIES, AND OTHER STATEMENTS OF THE
COMPANY OR ITS OFFICERS AND OF THE INITIAL PURCHASERS SET FORTH IN OR MADE PURSUANT TO THIS LETTER AGREEMENT WILL REMAIN IN FULL FORCE AND EFFECT, REGARDLESS OF ANY INVESTIGATION MADE BY OR ON BEHALF OF THE INITIAL PURCHASERS OR THE ISSUERS, AND
WILL SURVIVE DELIVERY OF AND PAYMENT FOR THE SECURITIES. 
 5. Governing Law. This letter agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to contracts made and to be performed within the State of New York. The parties hereto each hereby waive any right to trial by jury in any action, proceeding or counterclaim
arising out of or relating to this letter agreement. 
 6. Counterparts. This letter agreement may be signed in one or more
counterparts (which may be delivered in original form or telecopier), each of which when so executed shall constitute an original and all of which together shall constitute one and the same instrument. 

7. Amendments. No amendment or waiver of any provision of this letter agreement, nor any consent or approval to any departure
therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 
 8. Headings. The
section headings used herein are for convenience only and shall not affect the construction hereof. 
 [Signature Pages Follow] 

  
 Annex II-2 

 If the foregoing is in accordance with your understanding of our agreement, please indicate your
acceptance of this letter agreement by signing in the space provided below, whereupon this letter agreement will become a binding agreement among you and the several Initial Purchasers in accordance with its terms as of the date first written above.

  

			
	Very truly yours,
	
	[ADDITIONAL GUARANTORS]
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Annex II-3 

 The foregoing Joinder Agreement is hereby confirmed and accepted by the Initial Purchasers as of
the date first above written. 
  

			
	CREDIT SUISSE SECURITIES (USA) LLC
	         Acting on behalf of itself

        and as the Representative of

        the several Initial Purchasers

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	NOMURA SECURITIES INTERNATIONAL, INC.
	         Acting on behalf of itself

        and as the Representative of

        the several Initial Purchasers

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	DEUTSCHE BANK SECURITIES INC.
	         Acting on behalf of itself

        and as the Representative of

        the several Initial Purchasers

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Annex II-4EXHIBIT 10.1

 

FORM
CHANGE OF CONTROL EMPLOYMENT AGREEMENT FOR TOM HILL, JOHN McPHERSON, MICHAEL MILLS AND STAN BASS

 

CHANGE OF CONTROL EMPLOYMENT
AGREEMENT, dated as of the 1st day of January, 2016, (this “Agreement”), by
and between, Vulcan Materials Company, a New Jersey corporation (the “Company”), and [Name of Executive]
(the “Executive”).

 

WHEREAS, the Company
has previously entered into a Change of Control and non-Competition Agreement with the Executive dated as of [Date of Previous
Agreement] (the “Prior Agreement”);

 

WHEREAS, the Board of
Directors of the Company (the “Board”) continues to believe that it is in the best interests of the Company
and its shareholders to assure that the Company will have the continued dedication of the Executive, notwithstanding the possibility,
threat or occurrence of a Change of Control (as defined herein) and that it is imperative to diminish the inevitable distraction
of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control, to encourage
the Executive’s full attention and dedication to the Company in the event of any threatened or pending Change of Control,
to provide the Executive with compensation and benefits arrangements upon a Change of Control that ensure that the compensation
and benefits expectations of the Executive will be satisfied and provide the Executive with compensation and benefits arrangements
that are competitive with those of other corporations

 

WHEREAS, in order to
accomplish these objectives, the Board has determined to enter into this Agreement, which shall supersede and replace the Prior
Agreement effective as of the day first written above.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

Section 1.          Certain
Definitions.

 

(a)          “Effective
Date” means the first date during the Change of Control Period (as defined herein) on which a Change of Control occurs.
Notwithstanding anything in this Agreement to the contrary, if (A) the Executive’s employment with the Company is terminated
by the Company, (B) the Date of Termination is prior to the date on which a Change of Control occurs, and (C) it is reasonably
demonstrated by the Executive that such termination of employment (i) was at the request of a third party that has taken steps
reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control,
then for all purposes of this Agreement, the “Effective Date” means the date immediately prior to such Date of Termination.

 

(b)          “Change
of Control Period” means the period commencing on the date hereof and ending on the third anniversary of the date hereof;
provided, however, that, commencing on the date one year after the date hereof, and on each annual anniversary of
such date (such date and each annual anniversary thereof, the “Renewal Date”), unless previously terminated,
the Change of Control Period shall be automatically extended so as to terminate three years from such Renewal Date, unless, at
least 60 days prior to the Renewal Date, the Company shall give notice to the Executive that the Change of Control Period shall
not be so extended.

 

     

     

    

 

(c)          “Affiliated
Entity” means any entity controlled by, controlling or under common control with the Company.

 

(d)          “Change
of Control” means the first to occur of the following:

 

(1)         The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then-outstanding shares
of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power
of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this Section 1(d)(1), the
following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company; (ii) any
acquisition by the Company; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any Affiliated Entity; or (iv) any acquisition by any entity pursuant to a transaction which complies with
clauses (i), (ii) and (iii) of Section 1(d)(3); or

 

(2)         Individuals
who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date
hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board; or

 

(3)         Consummation
of a reorganization, merger or consolidation or similar corporate transaction involving the Company or any of its subsidiaries,
a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of
another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case, unless,
following such Business Combination, (i) all or substantially all of the individuals and entities that were the beneficial
owners, respectively, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares
of common stock (or, for a noncorporate entity, equivalent securities) and the combined voting power of the then-outstanding voting
securities entitled to vote generally in the election of directors (or, for a noncorporate entity, equivalent governing body),
as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a
result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through
one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination,
of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (ii) no Person
(excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or
such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively,
the then-outstanding shares of common stock (or, for a noncorporate entity, equivalent securities) of the entity resulting from
such Business Combination or the combined voting power of the then-outstanding voting securities of such entity except to the extent
that such ownership existed prior to the Business Combination, and (iii) at least a majority of the members of the board of
directors (or, for a noncorporate entity, equivalent governing body) of the entity resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing
for such Business Combination; or

 

    	2 

     

    

 

(4)         Approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company.

 

Section 2.          Employment
Period. The Company hereby agrees to continue the Executive in its employ, subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the second anniversary of the Effective Date (the “Employment
Period”). The Employment Period shall terminate upon the Executive’s termination of employment for any reason.

 

Section
3.          Terms of Employment. (a) Position and
Duties. (1) During the Employment Period, (A) the Executive’s position (including status, offices, titles and
reporting requirements), authority, duties and responsibilities shall be at least commensurate in all respects with the most
significant of those held, exercised and assigned at any time during the 120-day period immediately preceding the Effective
Date, (B) the Executive’s services shall be performed at the office where the Executive was employed immediately
preceding the Effective Date or at any other location less than 35 miles from such office, and (C) the Executive shall
not be required to travel on Company business to a substantially greater extent than required during the 120-day
period immediately prior to the Effective Date. During the Employment Period, and excluding any periods of vacation and sick
leave to which the Executive is entitled, the Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to
the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period, it shall not be a violation of this Agreement for the Executive to (A) serve
on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at
educational institutions, and (C) manage personal investments, so long as such activities do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. It
is expressly understood and agreed that, to the extent that any such activities have been conducted by the Executive prior to
the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the
Executive’s responsibilities to the Company.

 

    	3 

     

    

 

(b)          Compensation.
(1) Base Salary. During the Employment Period, the Executive shall receive an annual base salary (the “Annual
Base Salary”) at an annual rate at least equal to 12 times the highest monthly base salary paid or payable, including
any base salary that has been earned but deferred, to the Executive by the Company and the Affiliated Entities in respect of the
one-year period immediately preceding the month in which the Effective Date occurs. The Annual Base Salary shall be paid at such
intervals as the Company pays executive salaries generally. During the Employment Period, the Annual Base Salary shall be reviewed
at least annually, beginning no more than 12 months after the last salary increase awarded to the Executive prior to the Effective
Date. Any increase in the Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this
Agreement. The Annual Base Salary shall not be reduced after any such increase and the term “Annual Base Salary” shall
refer to the Annual Base Salary as so increased.

 

(2)         Annual
Bonus. In addition to Annual Base Salary, the Executive shall be awarded, for each fiscal year ending during the Employment
Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the greater of (A) the average of
the Executive’s bonuses under the Company’s Management Incentive Plan, or any comparable bonus under any predecessor
or successor plan (the “Bonus Plan”), for the last three full fiscal years prior to the Effective Date (or such
shorter period of employment of the Executive) and (B) the Executive’s annual bonus under the Bonus Plan, determined
based on the target annual bonus percentage in effect with respect to the Executive immediately prior to the Change of Control
for the fiscal year in which the Change of Control occurs or, if no such target annual bonus percentage has been established for
such year, the target annual bonus percentage established for the fiscal year ending immediately prior to the Effective Date (such
higher amount, the “Recent Annual Bonus”). For purposes of any determinations hereunder, any bonus amounts shall
be annualized in the event that the Executive was not employed by the Company for the whole of any such fiscal year and, to the
extent relevant to such determination, shall be based on the Executive’s Annual Base Salary. Each such Annual Bonus shall
be paid no later than two and a half months after the end of the fiscal year for which the Annual Bonus is awarded, unless the
Executive shall elect to defer the receipt of such Annual Bonus pursuant to an arrangement that meets the requirements of Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(3)         Long-Term
Cash and Equity Incentives, Savings and Retirement Plans. During the Employment Period, the Executive shall be entitled
to participate in all long-term cash incentive, equity incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and the Affiliated Entities, but in no event shall such plans, practices,
policies and programs provide the Executive with incentive opportunities (measured with respect to both regular and special incentive
opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities,
in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company and the Affiliated Entities
for the Executive under such plans, practices, policies and programs as in effect at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date
to other peer executives of the Company and the Affiliated Entities.

 

    	4 

     

    

 

(4)         Welfare
Benefit Plans. During the Employment Period, the Executive and/or the Executive’s family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided
by the Company and the Affiliated Entities (including, without limitation, medical, prescription, dental, disability, employee
life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other
peer executives of the Company and the Affiliated Entities, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits that are less favorable, in the aggregate, than the most favorable of such plans, practices,
policies and programs in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives
of the Company and the Affiliated Entities.

 

(5)         Expenses.
During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred
by the Executive in accordance with the most favorable policies, practices and procedures of the Company and the Affiliated Entities
in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable
to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and the Affiliated
Entities.

 

(6)         Fringe
Benefits. During the Employment Period, the Executive shall be entitled to fringe benefits, including, without limitation,
tax and financial planning services, payment of club dues and, if applicable, use of an automobile and payment of related expenses,
in accordance with the most favorable plans, practices, programs and policies of the Company and the Affiliated Entities in effect
for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive,
as in effect generally at any time thereafter with respect to other peer executives of the Company and the Affiliated Entities.

 

(7)         Office
and Support Staff. During the Employment Period, the Executive shall be entitled to an office or offices of a size and
with furnishings and other appointments, and to personal secretarial and other assistance, at least equal to the most favorable
of the foregoing provided to the Executive by the Company and the Affiliated Entities at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as provided generally at any time thereafter with respect
to other peer executives of the Company and the Affiliated Entities.

 

(8)         Vacation.
During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies,
programs and practices of the Company and the Affiliated Entities as in effect for the Executive at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter
with respect to other peer executives of the Company and the Affiliated Entities.

 

Section 4.          Termination
of Employment. (a) Death or Disability. The Executive’s employment shall terminate automatically if
the Executive dies during the Employment Period. If the Company determines in good faith that the Disability (as defined herein)
of the Executive has occurred during the Employment Period (pursuant to the definition of “Disability”), it may give
to the Executive written notice, in accordance with Section 11(b), of its intention to terminate the Executive’s employment.
In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such
notice by the Executive (the “Disability Effective Date”); provided that, within the 30 days after such
receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. “Disability”
means the absence of the Executive from the Executive’s duties with the Company on a full-time basis for 180 consecutive
business days as a result of incapacity due to mental or physical illness that is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative.

 

    	5 

     

    

 

(b)          Cause.
The Company may terminate the Executive’s employment during the Employment Period with or without Cause. “Cause”
means:

 

(1)         the
willful and continued failure of the Executive to perform substantially the Executive’s duties (as contemplated by Section
3(a)(1)(A)) with the Company or any Affiliated Entity (other than any such failure resulting from incapacity due to physical or
mental illness or following the Executive’s delivery of a Notice of Termination for Good Reason), after a written demand
for substantial performance is delivered to the Executive by the Board, or if the Company is not the ultimate parent corporation
of the Affiliated Entities and is not publicly traded, the board of directors of the ultimate parent of the Company (the “Applicable
Board”), which specifically identifies the manner in which the Board believes that the Executive has not substantially
performed the Executive’s duties; or

 

(2)         the
willful engaging by the Executive in illegal conduct which is materially and demonstrably injurious to the Company.

 

For purposes of this provision, no act
or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best
interests of the Company. Any act, or failure to act, based upon (A) authority given pursuant to a resolution duly adopted
by the Applicable Board, (B) the instructions of the Chief Executive Officer or another executive officer of the Company or
(C) the advice of counsel for the Company, shall be conclusively presumed to be done, or omitted to be done, by the Executive
in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be
for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters of the entire membership of the Applicable Board (excluding the Executive, if the Executive
is a member of the Applicable Board) at a meeting of the Applicable Board called and held for such purpose (after reasonable notice
is provided to the Executive and the Executive is given an opportunity, together with counsel for the Executive, to be heard before
the Applicable Board), finding that, in the good faith opinion of the Applicable Board, the Executive is guilty of the conduct
described in Section 4(b)(1) or 4(b)(2), and specifying the particulars thereof in detail.

 

(c)          Good
Reason. The Executive’s employment may be terminated during the Employment Period by the Executive for Good Reason
or by the Executive voluntarily without Good Reason. “Good Reason” means actions taken by the Company resulting
in a material negative change in the employment relationship. For these purposes, a “material negative change in the employment
relationship” shall include, without limitation:

 

(1)         a
reduction of the Executive’s Annual Base Salary;

 

    	6 

     

    

 

(2)         a
material breach of Section 3(b) of this Agreement, which shall include, without limitation, a material reduction in the Executive’s
(i) Annual Bonus from the Recent Annual Bonus, (ii) target or maximum Annual Bonus opportunity, (iii) annual long-term incentive
compensation (cash and equity awards), including target or maximum incentive opportunity, or (iv) retirement, welfare, fringe
and other benefits provided or made available to the Executive, in the case of each of clauses (ii) through (iv), from those
contemplated by Section 3(b) of this Agreement;

 

(3)         a
material diminution in the Executive’s authority, duties or responsibilities from those contemplated by Section 3(a) of this
Agreement or a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required
to report from those in effect immediately prior to the Effective Date, including, without limitation, and where relevant, a requirement
that the Executive report to an officer or employee instead of reporting directly to the Board of the Company (or if the Company
is a subsidiary of another entity, its ultimate parent);

 

(4)         a
change in the geographic location at which the Executive must perform services of more than 35 miles from the location the Executive
was required to perform services immediately prior to the Effective Date;

 

(5)         a
material diminution in the budget over which the Executive retains authority from that in effect immediately prior to the Effective
Date; or

 

(6)         any
other action or inaction that constitutes a material breach by the Company of this Agreement, including any failure by the Company
to comply with and satisfy Section 10(c).

 

In order to invoke a
termination for Good Reason, the Executive shall provide written notice to the Company of the existence of one or more of the conditions
described in clauses (1) through (6) within 90 days following the Executive’s knowledge of the initial existence of
such condition or conditions, specifying in reasonable detail the conditions constituting Good Reason, and the Company shall have
30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition.
In the event that the Company fails to remedy the condition constituting Good Reason during the applicable Cure Period, the Executive’s
“separation from service” (within the meaning of Section 409A of the Code) must occur, if at all, within 180 days following
such Cure Period in order for such termination as a result of such condition to constitute a termination for Good Reason. The Executive’s
mental or physical incapacity following the occurrence of an event described above in clauses (1) through (6) shall not affect
the Executive’s ability to terminate employment for Good Reason and the Executive’s death following delivery of a Notice
of Termination for Good Reason shall not affect the Executive’s estate’s entitlement to severance payments benefits
provided hereunder upon a termination of employment for Good Reason.

 

    	7 

     

    

 

(d)          Notice
of Termination. Any termination of employment by the Company for Cause, or by the Executive for Good Reason, shall be communicated
by a Notice of Termination to the other party hereto given in accordance with Section 11(b). “Notice of Termination”
means a written notice that (1) indicates the specific termination provision in this Agreement relied upon, (2) to the extent applicable,
sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated, and (3) if the Date of Termination (as defined herein) is other than the date of receipt
of such notice, specifies the Date of Termination (which Date of Termination shall be not more than 30 days after the giving of
such notice except in the case of a termination for Good Reason, notice shall be not more than 90 days before the termination date)
(subject to the Company’s right to cure in the case of a resignation for Good Reason). The failure by the Executive or the
Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause
shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive’s or the Company’s respective rights hereunder.

 

(e)          Date
of Termination. “Date of Termination” means (1) if the Executive’s employment is terminated by
the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or such later date
specified in the Notice of Termination, as the case may be, (2) if the Executive’s employment is terminated by the Company
other than for Cause or Disability, the date on which the Company notifies the Executive of such termination, (3) if the Executive
resigns without Good Reason, the date on which the Executive notifies the Company of such termination, and (4) if the Executive’s
employment is terminated by reason of death or Disability, the date of death of the Executive or the Disability Effective Date,
as the case may be. In no event shall the Date of Termination occur until the Executive experiences a “separation from service”
within the meaning of Section 409A of the Code, and the date on which such separation from service takes place shall be the “Date
of Termination.”

 

Section 5.          Obligations
of the Company upon Termination. (a) By the Executive for Good Reason; By the Company Other Than for Cause, Death
or Disability. If, during the Employment Period, the Company terminates the Executive’s employment other than for
Cause, Death or Disability or the Executive terminates employment for Good Reason:

 

(1)         the
Company shall pay to the Executive, in a lump sum payment in cash within 30 days after the Date of Termination equal to the aggregate
of the following amounts:

 

(A)         the
sum of (i) the Executive’s Annual Base Salary through the Date of Termination, (ii) any Annual Bonus earned by
the Executive for a prior award period, (iii) any accrued and unused vacation pay or other paid time off, and (iv) any
business expenses incurred by the Executive that are unreimbursed as of the Date of Termination, in each case to the extent not
theretofore paid (the sum of the amounts described in clauses (i), (ii), (iii) and (iv) shall be hereinafter referred to as
the “Accrued Obligations”); provided that, notwithstanding the foregoing, in the case of clauses (i)
and (ii), if the Executive has made an irrevocable election under any deferred compensation arrangement subject to Section 409A
of the Code to defer any portion of the Annual Base Salary or Annual Bonus described in clause (i) or (ii) above, then for all
purposes of this Section 5 (including, without limitation, Sections 5(b) through 5(d)), such deferral election, and the terms of
the applicable arrangement shall apply to the same portion of the amount described in such clauses (i) or (ii), and such portion
shall not be considered as part of the “Accrued Obligations” but shall instead be an “Other Benefit” (as
defined below);

 

    	8 

     

    

 

(B)         the
product of (i) the higher of (a) the Annual Bonus under the Bonus Plan for the full fiscal year in which the Date of
Termination occurs, determined based on actual individual and corporate performance through the Date of Termination, and (b) the
Recent Annual Bonus and (ii) a fraction, the numerator of which is the number of days in the current fiscal year through the
Date of Termination, and the denominator of which is the total number of days in the applicable fiscal year in which the Date of
Termination occurs (the “Pro Rata Bonus”), subject to any applicable deferral election on the same basis as
set forth in the proviso to Section 5(a)(1)(A);

 

(C)         the
amount equal to the product of (i) three (3) and (ii) the sum of (a) the Executive’s Annual Base Salary and
(b) the higher of (x) the annual bonus under the Bonus Plan for the full fiscal year in which the Date of Termination
occurs, determined based on actual individual and corporate performance through the Date of Termination, and (y) the Recent
Annual Bonus; and

 

(D)         an
amount equal to the additional Company contributions, including matching contributions, profit sharing and discretionary contributions,
that would have been made on the Executive’s behalf to the Company’s 401(k) Plan or any successor plan (the “401(k)
Plan”) (assuming continued participation on the same basis as immediately prior to the Effective Date), plus the additional
amount of any contributions the Executive would have received under the Unfunded Supplemental Benefit Plan or its successor plan
or any other excess or supplemental retirement plan in which the Executive participates (together, the “SERP”)
as a result of contribution limitations in the 401(k) Plan, if the Executive’s employment continued for three (3) years after
the Date of Termination (the “Benefit Continuation Period”), assuming for this purpose that the Executive’s
compensation during the Benefit Continuation Period is the Executive’s Annual Base Salary and Recent Annual Bonus and that
the Company’s matching contributions are determined pursuant to the applicable provisions of the 401(k) Plan and the SERP,
as in effect during the 12-month period immediately prior to the Effective Date.

 

    	9 

     

    

 

(2)         Healthcare
Benefits. For the Benefit Continuation Period, or such longer period as may be provided by the terms of the appropriate
plan, program, practice or policy, the Company shall continue to provide to the Executive and/or the Executive’s eligible
dependents healthcare benefits at least equal to those that would have been provided to them if the Executive’s employment
had not been terminated, under and in accordance with the healthcare plans provided by the Company and the Affiliated Entities
prior to the Effective Date (including, without limitation, medical, prescription, dental, vision plans and programs) or, if more
favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company
and the Affiliated Entities and their eligible dependents; provided, however, that if the Executive becomes reemployed
with another employer and is eligible to receive healthcare benefits under another employer-provided plan, the healthcare benefits
provided hereunder shall be secondary to those provided under such other plan during such applicable period of eligibility. The
Benefit Continuation Period shall run concurrently with the period for providing continuation coverage under the group health plans
of the Company and the Affiliated Entities, as described in Section 4980B of the Code. For purposes of determining eligibility
(but not the time of commencement of benefits) of the Executive for retiree benefits pursuant to such plans, practices, programs
and policies, the Executive shall be considered to have remained employed during the Benefit Continuation Period and to have retired
on the last day of such period.

 

(3)         Automobile.
Upon the Date of Termination, the Executive shall have the right and option to purchase the automobile which the Company was providing
to the Executive immediately prior to the Date of Termination in accordance with the Company’s practice for retiring employees
as in effect immediately prior to the Effective Date (provided that, to the extent such option results in a benefit that
is includable in the Executive’s gross income for federal income tax purposes, such purchase must occur no later than the
15th day of the third month following the end of the Executive’s taxable year in which the Date of Termination occurs).

 

(4)         Outplacement
Services. The Company shall, at its sole expense as incurred, provide the Executive with outplacement services, the scope
and provider of which shall be selected by the Executive in the Executive’s sole discretion; provided that the aggregate
cost of such services shall not exceed $50,000.

 

(5)         Other
Benefits. Except as otherwise set forth in the last sentence of Section 6, to the extent not theretofore paid or provided,
the Company shall timely pay or provide to the Executive any Other Benefits (as defined in Section 6) in accordance with the terms
of the underlying plans or agreements.

 

(b)          Death.
If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period, the Company
shall provide the Executive’s estate or beneficiaries with the Accrued Obligations, the Pro Rata Bonus and the timely payment
or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement. The Accrued Obligations
and the Pro Rata Bonus shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within
30 days of the Date of Termination, subject to any applicable deferral election as contemplated by Sections 5(a)(1)(A) and (B).
With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this Section 5(b) shall
include, without limitation, and the Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least
equal to the most favorable benefits provided by the Company and the Affiliated Entities to the estates and beneficiaries of peer
executives of the Company and the Affiliated Entities under such plans, programs, practices and policies relating to death benefits,
if any, as in effect with respect to other peer executives and their beneficiaries at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive’s estate and/or the Executive’s beneficiaries,
as in effect on the date of the Executive’s death with respect to other peer executives of the Company and the Affiliated
Entities and their beneficiaries.

 

    	10 

     

    

 

(c)          Disability.
If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Period, the
Company shall provide the Executive with the Accrued Obligations, the Pro Rata Bonus and the timely payment or delivery of the
Other Benefits in accordance with the terms of the underlying plans or agreements, and shall have no other severance obligations
under this Agreement. The Accrued Obligations and the Pro Rata Bonus shall be paid to the Executive in a lump sum in cash within
30 days of the Date of Termination, subject to any applicable deferral election as contemplated by Sections 5(a)(1)(A) and (B).
With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this Section 5(c) shall
include, and the Executive shall be entitled after the Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and the Affiliated Entities to disabled executives and/or
their families in accordance with such plans, programs, practices and policies relating to disability, if any, as in effect generally
with respect to other peer executives and their families at any time during the 120-day period immediately preceding the Effective
Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and the Affiliated Entities and their families.

 

(d)          Cause;
Other Than for Good Reason. If the Executive’s employment is terminated for Cause during the Employment Period, the
Company shall provide the Executive with the Accrued Obligations and the timely payment or delivery of the Other Benefits and shall
have no other severance obligations under this Agreement. If the Executive voluntarily terminates employment during the Employment
Period, excluding a termination for Good Reason, the Company shall provide to the Executive the Accrued Obligations, the Pro Rata
Bonus and the timely payment or delivery of the Other Benefits and shall have no other severance obligations under this Agreement.
In such case, all the Accrued Obligations and, if applicable, the Pro Rata Bonus shall be paid to the Executive in a lump sum in
cash within 30 days of the Date of Termination, subject to any applicable deferral election as contemplated by Sections 5(a)(1)(A)
and (B).

 

Section 6.          Non-exclusivity
of Rights. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in
any plan, program, policy or practice provided by the Company or the Affiliated Entities and for which the Executive may qualify,
or, subject to Section 11(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any other
contract or agreement with the Company or the Affiliated Entities. Amounts that are vested benefits or that the Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any other contract or agreement with the Company or the Affiliated
Entities at or subsequent to the Date of Termination, including amounts credited to the Executive’s account under the Executive
Deferred Compensation Plan or any successor plan (“Other Benefits”), shall be payable in accordance with such
plan, policy, practice or program or contract or agreement, except as explicitly modified by this Agreement. Without limiting the
generality of the foregoing, the Executive’s resignation under this Agreement with or without Good Reason, shall in no way
affect the Executive’s ability to terminate employment by reason of the Executive’s “retirement” under,
or to be eligible to receive benefits under, any compensation and benefits plans, programs or arrangements of the Company or the
Affiliated Entities, including, without limitation, any retirement or pension plans or arrangements or substitute plans adopted
by the Company, the Affiliated Entities or their respective successors, and any termination which otherwise qualifies as Good Reason
shall be treated as such even if it is also a “retirement” for purposes of any such plan. Notwithstanding the foregoing,
if the Executive receives payments and benefits pursuant to Section 5(a) of this Agreement, the Executive shall not be entitled
to any severance pay or benefits under any severance plan, program or policy of the Company and the Affiliated Entities, unless
otherwise specifically provided therein in a specific reference to this Agreement.

 

    	11 

     

    

 

Section 7.          Full
Settlement; Legal Fees. The Company’s obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action that the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of
this Agreement, and except as specifically provided in Section 5(a)(2), such amounts shall not be reduced whether or not the Executive
obtains other employment. The Company agrees to pay as incurred (within 10 days following the Company’s receipt of an invoice
from the Executive), at any time from the Change of Control through the Executive’s remaining lifetime (or, if longer, through
the 20th anniversary of the Change of Control) to the full extent permitted by law, all legal fees and expenses that the Executive
may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of
the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus, in each
case, interest on any delayed payment at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code (“Interest”)
based on the rate in effect for the month in which such legal fees and expenses were incurred.

 

Section 8.          Certain
Reduction of Payments.

 

(a)          Anything
in this Agreement to the contrary notwithstanding, in the event the Accounting Firm (as defined below) shall determine that receipt
of all Payments (as defined below) would subject the Executive to the excise tax under Section 4999 of the Code, the Accounting
Firm shall determine whether to reduce any of the Payments paid or payable pursuant to this Agreement (the “Agreement
Payments”) so that the Parachute Value (as defined below) of all Payments, in the aggregate, equals the Safe Harbor Amount
(as defined below). The Agreement Payments shall be so reduced only if the Accounting Firm determines that the Executive would
have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced. If the
Accounting Firm determines that the Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement
Payments were so reduced, the Executive shall receive all Agreement Payments to which the Executive is entitled hereunder.

 

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(b)          If
the Accounting Firm determines that aggregate Agreement Payments should be reduced so that the Parachute Value of all Payments,
in the aggregate, equals the Safe Harbor Amount, the Company shall promptly give the Executive notice to that effect and a copy
of the detailed calculation thereof. All determinations made by the Accounting Firm under this Section 8 shall be binding
upon the Company and the Executive and shall be made as soon as reasonably practicable and in no event later than 15 days following
the Date of Termination. For purposes of reducing the Agreement Payments so that the Parachute Value of all Payments, in the aggregate,
equals the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. The reduction
of the amounts payable hereunder, if applicable, shall be made by reducing the Agreement Payments and benefits that have a Parachute
Value as follows: Section 5(a)(4); Section 5(a)(1)(D); and Section 5(a)(1)(C), in each case, beginning with payments or benefits
that constitute deferred compensation and reducing first those that are to be paid or provided the farthest in time, based on the
Accounting Firm’s determination. All reasonable fees and expenses of the Accounting Firm shall be borne solely by the Company.

 

(c)          To
the extent requested by the Executive, the Company shall cooperate with the Executive in good faith in valuing, and the Accounting
Firm shall take into account the value of, services provided or to be provided by the Executive (including, without limitation,
the Executive’s agreeing to refrain from performing services pursuant to a covenant not to compete or similar covenant, before,
on or after the date of a change in ownership or control of the Company (within the meaning of Q&A-2(b) of the final regulations
under Section 280G of the Code), such that payments in respect of such services may be considered reasonable compensation
within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or
exempt from the definition of the term “parachute payment” within the meaning of Q&A-2(a) of the final regulations
under Section 280G of the Code in accordance with Q&A-5(a) of the final regulations under Section 280G of the Code.

 

(d)          The
following terms shall have the following meanings for purposes of this Section 8:

 

(i)          “Accounting
Firm” shall mean a nationally recognized certified public accounting firm or other professional organization that is
a certified public accounting firm recognized as an expert in determinations and calculations for purposes of Section 280G
of the Code that is selected by the Company prior to a Change of Control for purposes of making the applicable determinations hereunder
and is reasonably acceptable to the Executive, which firm shall not, without the Executive’s consent, be a firm serving as
accountant or auditor for the individual, entity or group effecting the Change of Control.

 

(ii)         “Net
After-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4)
of the Code) of a Payment net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code
and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and
under state and local laws which applied to the Executive’s taxable income for the immediately preceding taxable year, or
such other rate(s) as the Accounting Firm determines to be likely to apply to the Executive in the relevant tax year(s).

 

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(iii)        “Parachute
Value” of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G
of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of
the Code, as determined by the Accounting Firm for purposes of determining whether and to what extent the excise tax under Section 4999
of the Code will apply to such Payment.

 

(iv)        “Payment”
shall mean any payment, benefit or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of
the Code) to or for the benefit of the Executive, whether paid, payable or provided pursuant to this Agreement or otherwise.

 

(v)         “Safe
Harbor Amount” shall mean 2.99 times the Executive’s “base amount,” within the meaning of Section 280G(b)(3)
of the Code.

 

Section 9.          Confidential
Information. The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or the Affiliated Entities, and their respective businesses, which information,
knowledge or data shall have been obtained by the Executive during the Executive’s employment by the Company or the Affiliated
Entities and which information, knowledge or data shall not be or become public knowledge (other than by acts by the Executive
or representatives of the Executive in violation of this Agreement). After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or
legal process (including in connection with any government investigation), communicate or divulge any such information, knowledge
or data to anyone other than the Company and those persons designated by the Company. In no event shall an asserted violation of
the provisions of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

 

Section 10.         Successors.

 

(a)          This
Agreement is personal to the Executive, and, without the prior written consent of the Company, shall not be assignable by the Executive
other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by
the Executive’s legal representatives.

 

(b)          This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Except as provided in Section
10(c), without the prior written consent of the Executive, this Agreement shall not be assignable by the Company.

 

(c)          The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such succession had taken place. “Company”
means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees
to perform this Agreement by operation of law or otherwise.

 

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Section 11.         Miscellaneous.

 

(a)          This
Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without reference to principles
of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or their respective successors
and legal representatives.

 

(b)          All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

if to the
Executive:

 

At the most recent address on
file at the Company.

 

if to the
Company:

 

Vulcan Materials Company

P.O. Box 385014

Birmingham, Alabama 35238-5014

Attention: General Counsel

 

or to such other address as either party
shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually
received by the addressee.

 

(c)          The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

 

(d)          The
Company may withhold from any amounts payable under this Agreement such United States federal, state or local or foreign taxes
as shall be required to be withheld pursuant to any applicable law or regulation.

 

(e)          The
Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure
to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive
to terminate employment for Good Reason pursuant to Sections 4(c)(1) through 4(c)(6), shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement.

 

(f)          The
Executive and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Executive
and the Company, the employment of the Executive by the Company is “at will” and, subject to Section 1(a), the Executive’s
employment may be terminated by either the Executive or the Company at any time prior to the Effective Date, in which case the
Executive shall have no further rights under this Agreement. From and after the Effective Date, this Agreement shall supersede
the Prior Agreement.

 

    	15 

     

    

 

(g)          Grantor
Trust. The Company may establish a trust with a bank trustee, for the purpose of paying benefits under this Agreement.
If so established, the trust shall be a grantor trust subject to the claims of the Company’s creditors and may, immediately
prior to a Change of Control, be funded in cash, common stock of the Company or such other assets as the Company deems appropriate
with an amount equal to 100 percent of the aggregate benefits payable under this Agreement, assuming that the Executive incurred
a termination of employment entitling such Executive to the benefits under Section 5, or such lesser amount as the Company
shall determine prior to the Change of Control; provided, however, that the trust shall not be funded with respect
to the Executive if the funding thereof would result in taxable income to the Executive by reason of Section 409A(b) of the
Code; and provided, further, that in no event shall any trust assets at any time be located or transferred outside
of the United States, within the meaning of Section 409A(b) of the Code. Notwithstanding the establishment of any such trust,
the Executive’s rights hereunder will be solely those of a general unsecured creditor.

 

Section 12.         Section
409A of the Code.

 

(a)          General.
The obligations under this Agreement are intended to comply with the requirements of Section 409A of the Code or an exemption or
exclusion therefrom and shall in all respects be administered in accordance with Section 409A of the Code. Any payments that qualify
for the “short-term deferral” exception, the separation pay exception or another exception under Section 409A of the
Code shall be paid under the applicable exception to the maximum extent permissible. For purposes of the limitations on nonqualified
deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate
payment of compensation for purposes of applying the exclusion under Section 409A of the Code for short-term deferral amounts,
the separation pay exception or any other exception or exclusion under Section 409A of the Code. In no event may the Executive,
directly or indirectly, designate the calendar year of any payment under this Agreement. All payments to be made upon a termination
of employment under this Agreement may only be made upon a “separation from service” under Section 409A of the Code
to the extent necessary in order to avoid the imposition of penalty taxes on the Executive pursuant to Section 409A of the Code.

 

(b)          Reimbursements
and In-Kind Benefits. Notwithstanding anything to the contrary in this Agreement, all reimbursements and in-kind benefits
provided under this Agreement that constitute nonqualified deferred compensation subject to Section 409A of the Code shall be made
in accordance with the requirements of Section 409A of the Code, including, without limitation, where applicable, the requirement
that (i) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply
later than the Executive’s remaining lifetime (or if longer, through the 20th anniversary of the date hereof; (ii) the amount
of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible
for reimbursement, or in-kind benefits to be provided, in any other calendar year; (iii) the reimbursement of an eligible fees
and expenses shall be made no later than the last day of the calendar year following the year in which the applicable fees and
expenses were incurred; provided that the Executive shall have submitted an invoice for such fees and expenses at least
10 days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred; and
(iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

    	16 

     

    

 

(c)          Delay
of Payments. Notwithstanding anything herein to the contrary, if the Executive is considered a “specified employee”
for purposes of Section 409A of the Code (as determined in accordance with the methodology established by the Company as in effect
on the Date of Termination), any payment or benefit that constitutes nonqualified deferred compensation within the meaning of Section
409A of the Code that is otherwise due to the Executive under this Agreement during the six-month period immediately following
such Executive’s separation from service (as determined in accordance with Section 409A of the Code) on account of such Executive’s
separation from service shall be accumulated and paid to such Executive with Interest (based on the rate in effect for the month
in which the Executive’s separation from service occurs) on the first business day of the seventh month following the Executive’s
separation from service (the “Delayed Payment Date”), to the extent necessary to avoid penalty taxes or accelerated
taxation pursuant to Section 409A of the Code. If the Executive dies during the postponement period, the amounts and entitlements
delayed on account of Section 409A of the Code shall be paid to the personal representative of the Executive’s estate on
the first to occur of the Delayed Payment Date or 30 calendar days after the date of the Executive’s death.

 

Section 13.         Survivorship.
Upon the expiration or other termination of this Agreement or the Executive’s employment, the respective rights and obligations
of the parties hereto shall survive to the extent necessary to carry out the intentions of the parties under this Agreement.

 

IN WITNESS WHEREOF, the
Executive has hereunto set the Executive’s hand and, pursuant to the authorization from the Board, the Company has caused
these presents to be executed in its name on its behalf, all as of the day and year first above written.

 

	 	[SIGNATURES]

 

    	17

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