Document:

Exhibit 10.1

SEPARATION AGREEMENT

                       This
separation agreement (the “Separation Agreement”) is made as of the
20th day of December, 2006 by Gary R. Shivers (the “Executive”) and
Marlin Business Services Corp. (the “Company”).

                       WHEREAS,
the Executive and the Company have entered into an Employment Agreement (the
“Employment Agreement”), dated as of October 14, 2003; and

                       WHEREAS,
the Executive’s employment with and service to the Company shall end
effective as of January 31, 2007 (the “Separation Date”);
and

                       WHEREAS,
the Executive shall resign his positions as an officer and director of the
Company and its subsidiaries effective the date hereof; and

                       WHEREAS,
the Executive’s separation is amicable and on mutually satisfactory terms;
and

                       WHEREAS,
the Company and the Executive desire to enter into this Separation Agreement on
the terms set forth herein.

                       NOW
THEREFORE, intending to be legally bound and for good and valid consideration,
the sufficiency of which is hereby acknowledged, the Executive and the Company
agree as follows:

	
  
1.
  	
  
SEVERANCE BENEFITS.
  

                        The
Company shall pay and provide the Executive severance benefits as
follows:

          (a)         In
satisfaction of any outstanding obligations to the Executive under the
Employment Agreement and recognizing that a material portion of the following
payment is being made in consideration for the Executive’s continued
obligations to comply with the covenants as set forth in Section 4 of this
Separation Agreement, the Company shall pay the Executive as follows
(collectively the “Separation Payment”): 

                       (i)          pay
the Executive as an employee for the period from the date hereof through the
Separation Date at the Executive’s current salary rate of $11,346.15 per
two-week pay period (pro rated for any portion thereof) and in accordance with
the Company’s normal payroll practices;

                       (ii)         pay
the Executive a lump sum amount of $365,500.00 on August 1, 2007;

                       (iii)        pay
the Executive at the rate of $28,810.59 per two-week pay period (pro rated for
any portion thereof) and in accordance with the Company’s normal payroll
practices for the period from August 1, 2007 through the eighteen (18) month
anniversary of the Separation Date;

                       (iv)        make
two payments to the Executive each in the amount of $5,831.68, upon the
presentation to the Company of written evidence of the Executive’s payment
of the April 2007 and April 2008 annual disability insurance premium;

                       (v)        make
one payment to the Executive in the amount of $1,935.46, upon the presentation
to the Company of written evidence of the Executive’s payment of the
December 2007 annual life insurance premium; and

                       (vi)        pay
on behalf of Executive, or reimburse the Executive for, the equivalent
Company-paid portion of the monthly premium due in order to provide the
Executive from the Separation Date until twenty-four (24) months after the
Separation Date with participation in, or substantially comparable benefits to,
the Company’s healthcare, vision, dental and prescription drug plans, so
that the percentage of the cost to the Executive of such coverage is no greater
than the percentage of the cost to an employee of the Company during the same
period, provided and to the extent that Executive timely and properly elects to
continue participation in such plans under COBRA, and to the extent that
Executive timely and properly elects to continue participation in such plans
after the 18-month COBRA period.

          (b)         The
Executive acknowledges and agrees that the Separation Payment as well as the
other provisions of this Separation Agreement shall be in full and complete
satisfaction of the following: (i) all amounts due and payable as salary,
incentive bonus, severance or otherwise under the terms of the Employment
Agreement; provided, that in addition to the Separation Payment, the Executive
will receive his salary, in accordance with the Company’s normal payroll
practices, for the period between the date for which his salary was last paid by
the Company and the Separation Date; (ii) the Company’s agreement to
provide healthcare coverage or other benefits for the Executive; (iii) all
rights to participate in any plans for employees or executives; (iv) accrued but
unused vacation through the Separation Date; (v) any other similar amounts or
benefits payable to the Executive pursuant to the Employment Agreement or
otherwise, and (vi) compensation or benefits for any notice period under the
Employment Agreement.

          (c)         18,365
shares of the Company’s Common Stock (the “Common Shares”) that
were previously granted to the Executive but as of the Separation Date remain
subject to vesting shall vest immediately at the Separation Date and all
restrictions on the sale of such Common Shares shall lapse, other than those
that may be imposed by federal or state securities laws, and the certificates
representing such shares shall, to the extent permitted by applicable federal or
state securities laws, be unlegended.  Prior to the delivery of such Common
Shares but no later than two weeks after the Separation Date, the Executive
shall satisfy all applicable income tax withholding required under federal,
state or local law in respect of the vesting of and lapse of restrictions on
such Common Shares.

          (d)          At
the Separation Date, the Executive has outstanding options to purchase 183,581
Common Shares, of which 148,080 are exercisable and 35,501 are unvested. 
Pursuant to this Separation Agreement, the 35,501 unvested options shall become
exercisable as of the Separation Date; 138,390 shares subject to such options
shall remain exercisable by the Executive through and including the 90th day
after the Separation Date, and 45,191 shares subject to such options shall
remain exercisable by the Executive through and including the second anniversary
of the Separation Date.

2

          (e)          The
Company will reimburse the Executive for any bona fide business expenses
incurred by the Executive prior to the Separation Date in accordance with the
Company’s usual policy for such reimbursements, provided that an itemized
list of such expenses incurred prior to the Separation Date is submitted in
writing by the Executive for reimbursement within one week after the Separation
Date.

          (f)          As
soon as administratively practicable following the Separation Date, if requested
by the Executive, the Company will take reasonable action to cause the plan
administrator to facilitate the Executive’s request (after completion of
the required documentation by the Executive) for a transfer of the
Executive’s 401(k) account (or the balance thereof) into another such
account or another retirement savings plan, as applicable, designated by the
Executive.

          (g)          The
Company will indemnify, defend and hold the Executive harmless from and against
all liabilities, losses or damages, including but not limited to all attorneys
fees, litigation expenses, verdicts, judgments or settlements, with respect to
claims against the Executive arising from his acts or omissions while an officer
and director of the Company to the same extent as the indemnification provided
to then-current officers and directors pursuant to the Company’s articles
of incorporation and bylaws.  Additionally, from the Separation Date until
twenty-four (24) months after the Separation Date, the Company shall maintain
directors and officers insurance coverage for the Executive covering his acts or
omissions while an officer and director of the Company on a basis no less
favorable to him than the coverage provided to then-current officers and
directors of the Company.

          (h)          The
Executive understands and agrees that the Company shall not be responsible for
paying or reimbursing the costs and expenses of the Executive related to the
negotiation of this Separation Agreement.

          (i)          All
payments required to be made, and benefits required to be provided, by the
Company to the Executive under this Separation Agreement shall be subject to the
withholding of such amounts, if any, relating to tax, excise tax and other
payroll deductions as the Company may reasonably determine it should withhold
pursuant to any applicable law or regulation.

	
  
2.
  	
  
TERMINATION OF EMPLOYMENT AGREEMENT; RESIGNATION FROM BOARD OF   DIRECTORS AND OFFICER POSITIONS.
  

          (a)         Upon
the execution of this Separation Agreement, the Employment Agreement shall be
terminated in its entirety, and neither the Executive nor the Company, shall
have any further rights, duties or obligations with respect to the employment or
service of Executive by the Company.  This Separation Agreement sets forth
the entire agreement of the Company and the Executive with respect to the
subject matter hereof.  

          (b)         Upon
the execution of this Separation Agreement, the Executive shall resign,
effective as of the date hereof, from the Company’s Board of Directors and
all officer positions he holds with the Company and its subsidiaries by
executing the Letter of Resignation attached hereto as Exhibit A,
provided, that the Executive shall remain an employee of the Company through and
until the Separation Date.  The Executive also acknowledges that, as of the
date hereof, he has no rights with respect to appointment, observation or
similar rights with respect to any governing body of the Company.  The
Executive agrees to execute and deliver to the Company such other assignments,
agreements and other documents as the Company may reasonably request for the
purpose of transferring his responsibilities as a director and officer of the
Company and otherwise carrying out the intent of this Separation
Agreement.

3

	
  
3.
  	
  
RETURN OF COMPANY PROPERTY; POST-SEPARATION COMMUNICATIONS.
  

          (a)         The
Executive confirms that he has returned, or prior to the Separation Date will
return, all Company property, including without limitation, the Executive’s
cellular phone, corporate credit card, building access cards and laptop
computer.  In addition, prior to the Separation Date the Company will
arrange to retrieve and return to the Executive any personal information or data
maintained or stored by the Executive in the Company’s computer databases
(such as personal contact information in Outlook).

          (b)         Following
the Separation Date, the Executive shall no longer have access to e-mail or
other computer systems or telephone systems of the Company.  The Company
agrees that, for a period of six (6) months following the Separation Date, it
shall forward all personal e-mails and correspondence to the Executive after
they have been reviewed by the Company.  

          (c)         Following
the Separation Date, the Executive shall forward to the Company all
correspondence that he receives addressed to the Company.  All such
correspondence shall be forwarded as expeditiously as possible, but in no case
more than three (3) business days following receipt thereof.

	
  
4.
  	
  
CONFIDENTIALITY; NO COMPETITION; NONSOLICITATION.
  

          (a)         Definitions. 
The following terms shall have the following meanings when used in this Section
4 or elsewhere in this Separation Agreement:

                       (i)          “Business”
shall mean the “small ticket” (i.e., $1 to $250,000 ticket size)
equipment leasing business and any other business activities engaged in by the
Company or any Affiliate as a substantial line of business within one (1) year
prior to the Separation Date, including, without limitation, (A) factoring for
businesses under $100 million in annual sales, (B) business term loans to
businesses with less than $25 million in annual sales, (C) selling, providing or
charging for insurance on leased equipment, and (D) lease brokering and
syndication.

                       (ii)          “Competitive
Position” shall mean (A) the Executive’s direct or indirect equity
ownership or control of any entity engaged in the Business (except as provided
in the next sentence), or (B) an employment, consulting, partnership, advisory,
directorship, agency, promotional or independent contractor relationship between
the Executive and a person, firm, corporation, partnership or profit or
non-profit business or organization (“Person”) engaged, wholly or in
part, in the Business, in the United States or Canada.  Notwithstanding the
foregoing, the Executive’s direct or indirect ownership, solely as a
passive investment, of equity securities of any entity that is required to file
periodic reports with the U.S. Securities and Exchange Commission under Section
13 or 15(d) of the Securities Exchange Act of 1934, as amended, the securities
of which corporation are listed on any securities exchange, quoted on the
National Association of Securities Dealers Automated Quotation System or traded
in the over-the-counter market, shall not constitute a “Competitive
Position” if the Executive is not a controlling person of, or a member of a
group that controls, the entity and the Executive does not, directly or
indirectly, own five percent (5%) or more of any class of securities of the
entity.

4

                       (iii)         “Confidential
Information” shall mean non-public information (including but not
necessarily limited to Trade Secrets) disclosed to the Executive or known by the
Executive as a consequence of, or through his relationship with, the Company,
about the Customers, employees (including compensation paid to other employees
or other terms of employment), operations, processes, products, inventions,
business methods, principals, marketing methods, costs, prices, contractual
relationships, regulatory status, trade secrets, public relations methods,
organization, procedures or finances, including, without limitation, information
of or relating to customer lists of the Company and its Affiliates. 

                       (iv)          “Customer”
shall mean any actual customer (including vendors, brokers and end users) or
client of the Company or any Affiliate during the one (1) year time period
preceding the Separation Date and any actively solicited prospective customer of
the Company or any Affiliate during that same time period.

                       (v)           “Restricted
Territory” shall mean the United States and Canada. 

                       (vi)          “Trade
Secret” shall mean information or data (including, but not limited to,
confidential business information, technical or non-technical data, formulas,
patterns, compilations, programs, devices, methods, techniques, drawings,
processes, financial data, financial plans, product plans, lists of actual or
potential customers or suppliers) that: (a) derives economic value, actual or
potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use; and (b) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy. 

                       (vii)         “Affiliates”
shall mean any partnership, joint venture, limited liability company or
corporation that, directly or indirectly through one or more intermediaries
Controls, or is Controlled by, or is under common Control with, any
person.  The term “Control” includes, without limitation,
the possession, directly or indirectly, of the power to direct the management
and policies of a corporation, partnership, joint venture or limited liability
company, whether through the ownership of voting securities, by contract or
otherwise.

          (b)        Limitations
on Competition.  In consideration of the rights and benefits the
Executive will receive under this Separation Agreement, from the date of this
Separation Agreement through the date that is eighteen (18) months after the
Separation Date, the Executive shall not, directly or indirectly, alone or in
conjunction with any other Person accept or take a Competitive Position. 
During such period, this covenant shall bind the Executive only with respect to
the Executive’s activities in the Restricted Territory or with respect to
any business entity that is engaged in the Business in the Restricted
Territory.

5

          (c)         Confidentiality. 
Except to the extent required by law, the Executive shall not, directly or
indirectly, alone or in conjunction with any other Person, (i) disclose,
publish, disseminate or otherwise communicate, in oral, written, electronic or
other format, any Confidential Information of the Company or any Affiliate to
any Person unaffiliated with the Company, or (ii) use, copy or reproduce any
Confidential Information.  On or prior to the Separation Date, the
Executive shall return to the Company all Confidential Information in possession
or control that is in written, electronic or other non-oral form (together with
all copies or duplicates thereof, including computer files), including, without
limitation, any document, record, notebook, computer program or similar
repository of or containing any such Confidential Information. 
Notwithstanding the foregoing, the Executive shall not be obligated to treat as
confidential, or return to the Company any embodiments of Confidential
Information that (i) is accessible to the public generally (except where such
accessibility resulted from unauthorized disclosure), or (ii) is lawfully
disclosed to the Executive by a third party.  The duration of the
obligations set forth in this Section 4(c) shall begin on the Separation Date
and shall end on the fifth (5th) anniversary of the Separation Date,
except with respect to any Confidential Information that constitutes a Trade
Secret, in which case the obligations shall continue for as long as the
underlying Confidential Information continues to meet the definition of Trade
Secret.

          (d)         Non-Solicitation
of Company Customers.  Also in consideration of the rights and benefits
he will receive under this Separation Agreement, from the date of this
Separation Agreement through the date that is eighteen (18) months after the
Separation Date, the Executive shall not, directly or indirectly, alone or in
conjunction with any other Person, solicit, divert or appropriate (or attempt to
do so) any Customer for the purpose of providing the Customer with, or having
the Customer provided with, services or products that directly compete with
those offered by the Company or any Affiliate.

          (e)         Non-Solicitation
of Company Personnel.  Also in consideration of the rights and benefits
he will receive under this Separation Agreement, from the date of this
Separation Agreement through the date that is twenty-four (24) months after the
Separation Date, the Executive shall not, directly or indirectly, alone or in
conjunction with any other Person, (a) hire any Person who was an employee of
the Company or any Affiliate at the Separation Date or (b) encourage or solicit
any employee, consultant, advisor, director, supplier or independent contractor
of the Company to terminate or lessen that Person’s affiliation with the
Company or any Affiliate or to violate the terms of any agreement or
understanding between that Person and the Company or any Affiliate.

          (f)         Acknowledgments. 
The Executive acknowledges that: (i) the purpose of the covenants in this
Section 4 (the “Protective Covenants”) is to protect the Confidential
Information of the Company, to protect the Company from unfair competition; and
(ii) the scope of the Protective Covenants is reasonable in light of the
irreparable harm to the Company that could result if the Executive were to
engage in conduct prohibited by the Protective Covenants and in light of the
substantial rights and benefits that the Executive will receive under this
Separation Agreement.  The Executive also acknowledges that the Company
shall have the right in its sole discretion to waive the Executive’s
compliance with any Protective Covenant on a case-by-case basis.  No such
waiver shall be effective unless it is specific and is in writing. 
Additionally, the Executive acknowledges the receipt of good and adequate
consideration for the Protective Covenants and acknowledges that he can obtain
gainful employment without violation of the Protective Covenants.

6

          (g)         Injunctive
Relief and Enforcement; Partial Enforcement.  In the event of breach by
the Executive of a Protective Covenant, the Company shall be entitled to
institute legal proceedings to obtain damages for any such breach, or to enforce
the specific performance of this Separation Agreement by the Executive and to
enjoin the Executive from any further violation and to exercise such remedies
cumulatively or in conjunction with all other rights and remedies provided by
law.  The Executive acknowledges that money damages would be an
insufficient remedy for any breach by him of a Protective Covenant and that in
addition to all other remedies the Company shall be entitled to specific
performance and injunctive or other equitable relief for any such breach. 
In addition, in the event that any Protective Covenant shall be determined by
any court of competent jurisdiction to be unenforceable because it extends for
too long a period of time or to too broad a geographical area or too broad an
array of prohibited activities, it is the parties’ intent that the court
enforce the covenant at issue to the broadest extent possible within the
limitation of the law. Also, to the extent allowed by law, the Executive waives
the posting of any bond or security for a temporary restraining order,
preliminary injunction, or any other extraordinary relief that may be obtained
by the Company in connection with this Separation Agreement.

	
  
5.
  	
  
FILING WITH SECURITIES AND EXCHANGE COMMISSION.
  

                        The
Company will be solely responsible for making any filings or public disclosures
legally required concerning this Separation Agreement, including the filing of
this Separation Agreement with the Securities and Exchange Commission as an
exhibit to certain periodic and current reports under the Securities Exchange
Act of 1934, as amended.  The Executive acknowledges that the Company may
make such filings and disclosures and may file this Separation Agreement as the
Company deems necessary.

	
  
6.
  	
  
PRESS RELEASE.
  

                        The
Company and the Executive agree that the press release announcing the cessation
of the Executive’s employment shall be issued by the Company in the form
attached hereto as Exhibit B promptly after the execution of this
Separation Agreement.

	
  
7.
  	
  
RELEASE.
  

                        In
consideration for the Separation Payment to be made pursuant to this Separation
Agreement, the Executive hereby agrees as follows, and agrees to provide the
Separation Date Release in the form attached hereto as Exhibit
C:

          (a)         Release
and Covenant.  The Executive, of his own free will, voluntarily
releases and forever discharges the Company, its subsidiaries, Affiliates, their
officers, employees, agents, stockholders, successors and assigns (both
individually and in their official capacities with the Company) from, and
covenants not to sue or proceed against any of the foregoing on the basis of,
any and all past or present causes of action, suits, agreements or other claims
which the Executive, his dependents, relatives, heirs, executors,
administrators, successors and assigns has or have against the Company upon or
by reason of any matter arising out of his employment by the Company and the
cessation of said employment, and including, but not limited to, any alleged
violation of the Civil Rights Acts of 1964 and 1991, the Equal Pay Act of 1963,
the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of
1973, the Older Workers Benefit Protection Act of 1990, the Americans with
Disabilities Act of 1990, the Family and Medical Leave Act of 1993, and any
other federal or state law, regulation or ordinance, or public policy, contract
or tort law, having any bearing whatsoever on the terms and conditions or
cessation of his employment with the Company.  This release shall not,
however, constitute a waiver of any of the Executive’s rights or claims
under (i) this Separation Agreement, (ii) the terms of any employee benefit plan
of the Company in which the Executive is participating or (iii) the policies of
the Company with regard to business expense reimbursement.

7

          (b)         Due
Care.  The Executive acknowledges that he has received a copy of this
Separation Agreement prior to its execution and has been advised hereby of his
opportunity to review and consider this Separation Agreement for twenty-one (21)
days prior to its execution.  The Executive is hereby advised and
acknowledges that he has been advised to consult with an attorney prior to
executing this Separation Agreement.  The Executive enters into this
Separation Agreement having freely and knowingly elected, after due
consideration, to execute this Separation Agreement and to fulfill the promises
set forth herein.  This Separation Agreement shall be revocable by the
Executive during the 7-day period following its execution, and shall not become
effective or enforceable until the expiration of such 7-day period.  No
Separation Payments under this Separation Agreement shall be made before the
expiration of this 7-day period, and shall be forfeited by the Executive if he
exercises the right of revocation.  

          (c)         Reliance
by the Executive.  The Executive acknowledges that, in his decision to
enter into this Separation Agreement, he has not relied on any representations,
promises or agreements of any kind, including oral statements by representatives
of the Company, except as set forth in this Separation Agreement.

	
  
8.
  	
  
NOTICES.
  

                        All
notices and other communications hereunder shall be in writing or by written
telecommunication, and shall be deemed to have been duly given if delivered
personally or if sent by overnight courier or by certified mail, return receipt
requested, postage prepaid or sent by written telecommunication or telecopy, to
the relevant address set forth below, or to such other address as the recipient
of such notice or communication shall have specified in writing to the other
party hereto, in accordance with this Section 8.

8

	
  
If to the   Executive, to:
  
	
  
 
  
	
  
          218   Chestnut Street
  
	
  
          Haddonfield,   NJ  08033
  
	
  
 
  
	
  
          Copy   to:  Peter J. Weidman, Esq.
  
	
  
          The   Law Office of Peter J. Weidman
  
	
  
          600   West Germantown Pike, Suite 400
  
	
  
          Plymouth   Meeting, PA  19462
  
	
  
 
  
	
  
If to the   Company, to:
  
	
  
 
  
	
  
          Marlin   Business Services Corp.
  
	
            300   Fellowship Road
  
	
  
          Mt.   Laurel, NJ  08054
  
	
  
 
  
	
  
          Attn:   Chief Executive Officer
  
	
  
          Copy   to: General Counsel
  
	
  
 
  

	
  
9.
  	
  
SEVERABILITY.
  

                        The
invalidity or unenforceability of any provision or provisions of this Separation
Agreement shall not affect the validity or enforceability of any other provision
of this Separation Agreement, which shall remain in full force and effect;
provided, however, that if any one or more of the terms contained
in Section 4 shall for any reason be held to be excessively broad with
regard to time, duration, geographic scope or activity, that term shall not be
deleted but shall be reformed and constructed in a manner to enable it to be
enforced to the extent compatible with applicable law.

	
  
10.
  	
  
ASSIGNMENT.
  

                        This
Separation Agreement may not be assigned by the Executive.  Upon receipt of
the Executive’s prior written consent, which shall not be unreasonably
withheld, this Separation Agreement may be assigned by the Company to any direct
or indirect subsidiary or parent of the Company, or any successor (whether by
merger, consolidation, purchase or otherwise) to all or substantially all of the
stock, assets or business of the Company and this Separation Agreement shall be
binding upon and inure to the benefit of such successors and assigns.

                        If
the Executive dies while he is receiving payments or benefits under Section 1,
then all payments under Sections 1(a)(i), (ii) and (iii) shall continue to be
paid to his estate, and the Executive’s eligible dependents shall continue
to receive health, vision, dental and prescription drug benefits in accordance
with Section 1(a)(vi).

9

	
  
11.
  	
  
HEADINGS.
  

                        The
headings contained herein are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Separation
Agreement.

	
  
12.
  	
  
GOVERNING LAW.
  

                        This
Separation Agreement shall be governed and construed in accordance with the laws
of the State of New Jersey, without giving effect to principles of conflicts
law.

	
  
13.
  	
  
ENTIRE AGREEMENT.
  

                        This
Separation Agreement sets forth the entire understanding and supersedes all
prior and contemporaneous oral and written agreements between the parties
relating to the subject matter contained herein or therein, and merges all prior
and contemporaneous discussions between them.

10

                        IN
WITNESS WHEREOF, the Executive and the Company have executed this Separation
Agreement as of the day and year first above written.

	
  
MARLIN   BUSINESS SERVICES CORP.
  	
  
 
  	
  
GARY R.   SHIVERS
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
/s/ Daniel P. Dyer
  	
  
 
  	
  
/s/ Gary R. Shivers
  
	
   
  	
  

  	
  
 
  	
  

  
	
  
Name:
  	
  
Daniel P. Dyer
  	
  
 
  	
  
 
  
	
  
Title:
  	
  
Chief Executive Officer
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  

11

Exhibit A

Letter of Resignation

RESIGNATION AS OFFICER AND DIRECTOR

                    THE
UNDERSIGNED, intending to be legally bound hereby, does hereby resign, effective
December 20, 2006, as a member of the Board of Directors and as President of
Marlin Business Services Corp. and from any other official position the
undersigned holds (whether as an officer, director or otherwise) of Marlin
Business Services Corp. or any of its subsidiaries, although the undersigned
will remain an employee of Marlin Business Services Corp. through and until
January 31, 2007 pursuant to the Separation Agreement between the undersigned
and Marlin Business Services Corp. dated the date hereof.

                    IN
WITNESS WHEREOF, the undersigned has executed this Resignation this 20th day of
December, 2006.

	
  
 
  	
  
 
  
	
  
 
  	
  
/s/ Gary R. Shivers
  
	
  
 
  	
  

  
	
  
 
  	
  
Gary R.   Shivers
  

12

Exhibit B

MARLIN BUSINESS SERVICES CORP. ANNOUNCES MANAGEMENT REALIGNMENT

Mt. Laurel, NJ – December 21, 2006 -- Marlin Business Services Corp.
(NASDAQ: MRLN) today announced the resignation of President Gary Shivers. 
Mr. Shivers’ resignation as an officer and director of Marlin is effective
as of December 20, 2006, but he will remain employed by the Company through
January 31, 2007 to ensure a smooth transition.  Mr. Shivers, who served as
Marlin’s President since co-founding the Company in 1997, commented,
“I have enjoyed the time that I have spent at Marlin, working hard with the
employees and the other members of the management team to help Marlin grow from
a small, privately held start-up to a publicly traded financial services
company. This was a difficult decision for me, but I believe this is the right
time for me to step away from Marlin so I can pursue my outside interests. 
With the new product launches, I believe Marlin is positioned for continued
success.  It has been a privilege to be part of the Marlin
team.”

“The Company also is pleased to announce expanded roles for other members
of the senior management team”, said Chief Executive Officer Daniel P.
Dyer. “George Pelose, in his expanded role of Chief Operating Officer, will
now take responsibility for overseeing all aspects of the Company’s lease
financing business.  In addition, Lynne Wilson, Marlin’s Chief
Financial Officer, will assume additional reporting responsibility for our new
Factoring business unit.  I believe these changes provide the
organizational alignment needed to optimize the leasing business and to generate
meaningful results for the Factoring business”. 

George Pelose, who is also the Company’s General Counsel, has been an
integral part of the senior management team since joining Marlin in 1999 and has
played important roles in many aspects of the Company’s business. As
Marlin’s COO, Mr. Pelose will add the leasing Sales and Credit functions to
his existing reporting lines, which include Collections, Customer Service, Asset
Management, Insurance and Legal.   

In addition to the new Factoring business line, Lynne Wilson will remain
responsible for all accounting, treasury and financial analysis and reporting
aspects of the business.  She will also assume reporting responsibility for
the Human Resources department.  Dan Dyer, George Pelose and Lynne Wilson
will continue to serve as members of the Company’s Office of the
Chairman.

“I’d like to take this opportunity to personally thank Gary for all
his contributions to Marlin and his years of effort and dedication toward
Marlin’s success.  We will certainly miss Gary, and wish him all the
best.  I am extremely confident that our management team, dedicated
employee base and new organizational structure will drive the continued success
of Marlin’s core leasing business and will lead the charge into the new
Business Capital Loan and Factoring product lines.”

13

Exhibit C

SEPARATION DATE RELEASE

                    This
SEPARATION DATE RELEASE (this “Release”) is executed and delivered by
Gary R. Shivers (the “Executive”) to Marlin Business Services Corp., a
Pennsylvania corporation (the “Company”).

                    In
consideration of the agreement by the Company to provide the Executive with the
Severance Payment set forth in the Separation Agreement between the Executive
and the Company dated December 20, 2006 (the “Separation Agreement”),
the Executive hereby agrees as follows:

                    Section
1.  Release and Covenant.  The Executive, of his own free will,
voluntarily releases and forever discharges the Company, its subsidiaries,
Affiliates (as defined in the Separation Agreement), their officers, employees,
agents, stockholders, successors and assigns (both individually and in their
official capacities with the Company) from, and covenants not to sue or proceed
against any of the foregoing on the basis of, any and all past or present causes
of action, suits, agreements or other claims which the Executive, his
dependents, relatives, heirs, executors, administrators, successors and assigns
has or have against the Company upon or by reason of any matter arising out of
his employment by the Company and the cessation of said employment, and
including, but not limited to, any alleged violation of the Civil Rights Acts of
1964 and 1991, the Equal Pay Act of 1963, the Age Discrimination in Employment
Act of 1967, the Rehabilitation Act of 1973, the Older Workers Benefit
Protection Act of 1990, the Americans with Disabilities Act of 1990, the Family
and Medical Leave Act of 1993, and any other federal or state law, regulation or
ordinance, or public policy, contract or tort law, having any bearing whatsoever
on the terms and conditions or cessation of his employment with the
Company.  This Release shall not, however, constitute a waiver of any of
the Executive’s rights or claims under (i) the Separation Agreement, (ii)
the terms of any employee benefit plan of the Company in which the Executive is
participating or (iii) the policies of the Company with regard to business
expense reimbursement.

                    Section
2.  Due Care.  The Executive acknowledges that he has received
a copy of this Release prior to its execution and has been advised hereby of his
opportunity to review and consider this Release for twenty-one (21) days prior
to its execution.  The Executive is hereby advised and acknowledges
that he has been advised to consult with an attorney prior to executing this
Release.  The Executive enters into this Release having freely and
knowingly elected, after due consideration, to execute this Release and to
fulfill the promises set forth herein.  This Release shall be revocable by
the Executive during the 7-day period following its execution, and shall not
become effective or enforceable until the expiration of such 7-day period. 
No Separation Payments under the Separation Agreement shall be made before the
expiration of this 7-day period, and shall be forfeited by the Executive if he
exercises the right of revocation.  

                    Section 3.  Reliance by the Executive.  The Executive acknowledges that, in his decision to enter into this Release, he has not relied on any representations, promises or agreements of any kind, including oral statements by representatives of the Company, except as set forth in this Release and the Separation Agreement.

14

                    This SEPARATION DATE RELEASE is executed by the Executive and delivered to Company on January 31, 2007. 

	
  
 
  	
  
EXECUTIVE:
  
	
   
  	
   
  
	
   
  	
   
  
	
   
  	
  

  
	
   
  	
  Gary R.   Shivers
  

15EX-10.1

AMENDMENT NO. 5 TO CREDIT AND GUARANTY AGREEMENT

AMENDMENT NO. 5 TO CREDIT AND GUARANTY AGREEMENT (this “Amendment”), dated as of December 15,
2006, among Kraton Polymers LLC, a Delaware limited liability company (“Company”), each of the
Guarantors listed on the signature pages hereto, the Lenders party hereto, and UBS AG, Stamford
Branch (“UBS”), as administrative agent and collateral agent (“Agent”).

RECITALS

WHEREAS, Company, the Guarantors, the Lenders, Goldman Sachs Credit Partners L.P. and UBS
Securities LLC, as Lead Arrangers, and UBS, as Agent, entered into the Credit and Guaranty
Agreement dated as of December 23, 2003 (as amended pursuant to that certain Amendment No. 1 to
Credit and Guaranty Agreement dated as of March 4, 2004, that certain Amendment No. 2 to Credit and
Guaranty Agreement dated as of October 21, 2004, that certain Amendment No. 3 to Credit and
Guaranty Agreement dated as of February 16, 2006 and that certain Amendment No. 4 to Credit and
Guaranty Agreement dated as of May 12, 2006, and as further amended, restated supplemented or
otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, Company desires to (i) form a limited partnership organized under the laws of the
Netherlands (“New Holding Dutch CV”) of which Company will own, directly and/or indirectly
through one or more of its wholly-owned Domestic Subsidiaries all of the outstanding Capital Stock
(provided that New Holding Dutch CV will in any event have at least two partners), (ii) contribute
to the undivided community of property (onverdeelde goederenrechtelijke gemeenschap) created
pursuant to the formation documents for New Holding Dutch CV, 100% of the Capital Stock of Kraton
Polymers Holdings BV, a company organized under the laws of the Netherlands (“KP Holdings
BV”), and (iii) cause New Holding Dutch CV and Kraton Polymers U.S. LLC to enter into a
qualified cost sharing agreement substantially in principle in the form attached hereto as
Annex I (the actions described in clause (i) through (iii ) above are collectively referred
to herein as the “Restructuring”);

WHEREAS, Company, the Guarantors, the Requisite Lenders and Agent have agreed to amend and
waive certain provisions of the Credit Agreement, in each case, as provided herein.

NOW, THEREFORE, in consideration of the premises made hereunder, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

Section 1. Definitions. Unless otherwise expressly defined herein, all capitalized
terms used herein and defined in the Credit Agreement shall be used herein as so defined.

Section 2. Amendment to Section 1.1. Section 1.1 of the Credit Agreement is hereby
amended as follows:

(a) The definitions of each of the following new terms shall be inserted in alphabetical order
and shall read in their entirety as follows:

“Cost Sharing Agreement” means that certain qualified cost sharing agreement to be entered
into between New Holding Dutch CV and Kraton Polymers U.S. LLC substantially in the form of Exhibit
P.

“Fifth Amendment Effective Date” means December 15, 2006.

“KP Holdings BV” means Kraton Polymers Holdings BV, a company organized under the laws of the
Netherlands, 100% of the Capital Stock of which is (a) immediately prior the Restructuring, owned
by Company and (b) immediately after the Restructuring, owned for the account of New Holding Dutch
CV.

“New Holding Dutch CV” means a limited partnership organized under the laws of the Netherlands
of which Company will own, directly and/or indirectly through one or more of its wholly-owned
Domestic Subsidiaries all of the outstanding Capital Stock.

“Restructuring” means (i) the formation by Company, through two or more of its wholly-owned
Domestic Subsidiaries, of New Holding Dutch CV, (ii) the contribution by Company to the undivided
community of property (onverdeelde goederenrechtelijke gemeenschap) created pursuant to the
formation documents for New Holding Dutch CV of 100% of the Capital Stock of KP Holdings BV and
(iii) the execution of the Cost Sharing Agreement by the parties thereto.

Section 3. Amendment to Section 6.9. (i) Clause (f) of Section 6.9 of the Credit
Agreement is hereby amended by deleting the word “and” at the end of such provision and (ii) clause
(g) of Section 6.9 of the Credit Agreement is hereby amended by deleting the period at the end of
such provision and inserting the following: “; and (h) the Restructuring, including the
transactions contemplated by, or incidental to, the Cost Sharing Agreement.”

Section 4. Amendment to Section 6.12. (i) Clause (g) of Section 6.12 of the Credit
Agreement is hereby amended by deleting the word “and” at the end of such provision and (ii) clause
(h) of Section 6.12 of the Credit Agreement is hereby amended by deleting the period at the end of
such provision and inserting the following: “; and (i) any transaction necessary to effect the
Restructuring, including the transactions contemplated by, or incidental to, the Cost Sharing
Agreement as in effect on the Fifth Amendment Effective Date.”

Section 5. Amendment to Section 6.15. Clause (a) of Section 6.15 of the Credit
Agreement is hereby amended by inserting the words “or the Cost Sharing Agreement after the Fifth
Amendment Effective Date (except for any amendment, restatement, supplement or other modification
to, or waiver that does not adversely affect the interests of the Lenders in any material respect)”
after the words “Fourth Amendment Effective Date” in the fourth line thereof.

Section 6. Amendment to Article V. Article V of the Credit Agreement is hereby
amended by adding a new Section 5.13 as follows:

“5.13. Pledge of Shares of New Holding Dutch CV. On or prior to a date that is 90 days after
the Fifth Amendment Effective Date (or such extended period of up to 60 days as agreed to by the
Administrative Agent in its reasonable discretion), Company shall (i) take all actions and execute
and deliver all such documents, instruments, agreements and certificates necessary to grant to
(and, to the extent relevant under applicable law, to perfect) a First Priority Lien in favor of,
Collateral Agent, for the benefit of Secured Parties, under a deed of pledge governed by the laws
of the Netherlands in form and substance reasonably satisfactory to Collateral Agent, in the
Capital Stock of New Holding Dutch CV, in the form of a right of pledge (pandrecht) over 65% of
each financial claim from each holder of Capital Stock of New Holding Dutch CV under the formation
documents for New Holding Dutch CV and against all other holders of Capital Stock of New Holding
Dutch CV, including but not limited to entitlements in the undivided community of property
(onverdeelde goederenrechtelijke gemeenschap) of the New Holding Dutch CV, including but not
limited to its right to any (i) payments of profits, (ii) distribution of reserves, (iii)
liquidation proceeds, and (iv) any other payments or distributions, whether present or future,
whether actual or contingent      , to the extent permitted by applicable law.”

Section 7. Consent to the Restructuring. Pursuant to 10.05(a) of the Credit
Agreement, upon the effectiveness of this Amendment in accordance with Section 7 below, the Lenders
hereby (i) consent to the Restructuring and (ii) in connection with the Restructuring, consent to
the release, cancellation and termination of the pledge of the Capital Stock of KP Holdings BV made
by Company in favor of the Collateral Agent for the benefit of the Secured Parties, which the
parties hereto agree shall be so released, cancelled and terminated upon the effectiveness of this
Amendment.

Section 8. Conditions Precedent. This Amendment shall become effective upon
satisfaction of each of the following conditions precedent:

(a) Agent shall have received all of the following, in form and substance satisfactory to
Agent:

(i) Amendment Documents. This Amendment and each other instrument, document or
certificate required by Agent, duly executed and delivered by Company, the Guarantors, the
Requisite Lenders and any other Person in connection with this Amendment;

(ii) Cost Sharing Agreement. The Agent shall have received a fully executed or
conformed copy of the Cost Sharing Agreement; the Cost Sharing Agreement shall be in full force and
effect, shall include terms and provisions reasonably satisfactory to Agent and no provision
thereof shall have been modified or waived in any respect determined by Agent to be material
without the consent of Agent; and

(ii) Additional Information. Such additional documents, instruments and information
as Agent may reasonably request to effect the transactions contemplated hereby.

(b) After giving effect to this Amendment, the representations and warranties contained herein
and in the Credit Documents shall be true and correct in all material respects as of the date
hereof as if made on the date hereof (except for those which by their terms specifically refer to
an earlier date, in which case such representations and warranties shall have been true and correct
in all material respects as of such earlier date).

(c) All corporate proceedings taken in connection with the execution and delivery of this
Amendment and all other agreements, documents and instruments executed and/or delivered pursuant
thereto, and all legal matters incident thereto, shall be reasonably satisfactory to Agent.

(d) No Default or Event of Default shall have occurred and be continuing after giving effect
to this Amendment.

Section 9. Representations and Warranties. Company hereby represents and warrants to
Agent and the Lenders that, as of the date hereof and after giving effect to this Amendment, (a)
all representations and warranties set forth in the Credit Agreement and in any other Credit
Document are true and correct in all material respects as if made again on and as of such date
(except those, if any, which by their terms specifically relate only to an earlier date, in which
case such representations and warranties shall have been true and correct in all material respects
as of such earlier date), (b) no Default or Event of Default has occurred and is continuing, and
(c) the Credit Agreement (as amended by this Amendment), and all other Credit Documents are and
remain legal, valid, binding and enforceable obligations of the Credit Parties in accordance with
the terms thereof except as may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or limiting creditors’ rights generally or by equitable principles
(regardless of whether enforcement is sought in equity or at law).

Section 10. Survival of Representations and Warranties. All representations and
warranties made in this Amendment or any other Credit Document shall survive the execution and
delivery of this Amendment, and no investigation by Agent or the Lenders shall affect the
representations and warranties or the right of Agent and the Lenders to rely upon them. If any
representation or warranty made in this Amendment is false in any material respect as of the date
made or deemed made, then such shall constitute an Event of Default under the Credit Agreement.

Section 11. Reference to Agreement. Each of the Credit Documents, including the
Credit Agreement, and any and all other agreements, documents or instruments now or hereafter
executed and/or delivered pursuant to the terms hereof or pursuant to the terms of the Credit
Agreement as amended hereby, are hereby amended so that any reference in such Credit Documents to
the Credit Agreement, whether direct or indirect, shall mean a reference to the Credit Agreement as
amended hereby. This Amendment shall constitute a Credit Document under the Credit Agreement.

Section 12. Costs and Expenses. Company shall pay on demand all reasonable,
documented, out-of-pocket costs and expenses of Agent and the Lead Arrangers (including the
reasonable fees, costs and expenses of counsel to Agent) incurred in connection with the
preparation, execution and delivery of this Amendment.

Section 13. Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

Section 14. Execution. This Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this Amendment by telecopier
shall be effective as delivery of a manually executed counterpart of this Amendment. This
Amendment shall be binding upon each signatory hereto, its successors and assigns.

Section 15. Certain Waivers. Each of Company and each Guarantor hereby agrees that
neither Agent nor any Lender shall be liable under a claim of, and hereby waives any claim against
Agent and the Lenders based on, lender liability (including, but not limited to, liability for
breach of the implied covenant of good faith and fair dealing, fraud, negligence, conversion,
misrepresentation, duress, control and interference, infliction of emotional distress and
defamation and breach of fiduciary duties) as a result of the consents and amendments contained in
Sections 2 through 5 above and any discussions or actions taken or not taken by Agent or the
Lenders on or before the date hereof or the discussions conducted in connection therewith, or any
course of action taken by Agent or any Lender in response thereto or arising therefrom;
provided, that the foregoing waiver shall not include the waiver of any claims which are
based on the gross negligence or willful misconduct of Agent or any Lender or any of their
respective agents. This Section 15 shall survive the execution and delivery of this Amendment and
the other Credit Documents and the termination of the Credit Agreement.

Section 16. Limited Effect. This Amendment relates only to the specific matters
expressly covered herein, shall not be considered to be a waiver of any rights or remedies any
Lender may have under the Credit Agreement or under any other Credit Document, and shall not be
considered to create a course of dealing or to otherwise obligate in any respect any Lender to
execute similar or other amendments or grant any waivers under the same or similar or other
circumstances in the future.

Section 17. Ratification by Guarantors. Each of the Guarantors acknowledges that its
consent to this Amendment is not required, but each of the undersigned nevertheless does hereby
agree and consent to this Amendment and to the documents and agreements referred to herein. Each
of the Guarantors agrees and acknowledges that (i) notwithstanding the effectiveness of this
Amendment, such Guarantor’s Guaranty shall remain in full force and effect without modification
thereto and (ii) nothing herein shall in any way limit any of the terms or provisions of such
Guarantor’s Guaranty or any other Credit Document executed by such Guarantor (as the same may be
amended from time to time), all of which are hereby ratified, confirmed and affirmed in all
respects. Each of the Guarantors hereby agrees and acknowledges that no other agreement,
instrument, consent or document shall be required to give effect to this Section 17. Each of the
Guarantors hereby further acknowledges that Company, Agent and any Lender may from time to time
enter into any further amendments, modifications, terminations and/or waivers of any provisions of
the Credit Documents without notice to or consent from such Guarantor and without affecting the
validity or enforceability of such Guarantor’s Guaranty or giving rise to any reduction,
limitation, impairment, discharge or termination of such Guarantor’s Guaranty.

1

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

KRATON POLYMERS LLC

	 	 	 
	By:

	 	/s/ Joseph J. Waiter
	
 
	 	 
	Name:

Title:

	 	Joseph J. Waiter

Vice President and General Counsel

GUARANTORS:

POLYMER HOLDINGS LLC

ELASTOMERS HOLDINGS LLC

KRATON POLYMERS U.S. LLC

KRATON POLYMERS CAPITAL CORPORATION

	 	 	 
	By:

	 	/s/ Joseph J. Waiter
	
 
	 	 
	Name:

Title:

	 	Joseph J. Waiter

Vice President and General Counsel

AGENT:

UBS AG, STAMFORD BRANCH,

as Administrative Agent and as Lender

	 	 	 
	By:

	 	/s/ Irja R. Otsa
	
 
	 	 
	Name:

Title:

	 	Irja R. Otsa

Associate Director
	 
	 	 
	By:

	 	/s/ Mary E. Evans
	
 
	 	 
	Name:

Title:

	 	Mary E. Evans

Associate Director
	 
	 	 

2

ANNEX I

Form of Cost Sharing Agreement

RESEARCH AND DEVELOPMENT

COST SHARING AGREEMENT

This Research and Development Cost Sharing Agreement (the “Agreement”) is entered into
effective as of [December 30], 2006 (the “Effective Date”), by and between [Kraton Polymers U.S.
LLC, a Delaware company (“KP”); and [New Holding Dutch CV], a Dutch limited partnership organized
and existing under the laws of the Netherlands (“CV”).

RECITALS

WHEREAS, the parties are engaged in the business of designing, developing, manufacturing,
marketing, and selling products agreed by the Parties;

WHEREAS, the parties consider it beneficial that certain research and development activities
concerning technology to be developed and incorporated in such Products be conducted by the parties
for the benefit of each party;

WHEREAS, the parties recognize that other related third parties may purchase Products on arm’s
length terms and conditions;

WHEREAS, the parties desire to establish a structure whereby each party will share in the
research and development costs incurred on or after the Effective Date in order to further develop
the Existing Technology and to develop New Technology; and

WHEREAS, the parties intend to exploit the Intellectual Property rights, technology and other
intangible property rights developed in accordance with this Agreement in their respective
businesses;

NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth, the
parties agree to be legally bound as follows:

1. Definitions

1.1 Covered Research. “Covered Research” shall mean those research and development
activities identified in Exhibit A to this Agreement, as may be modified from time to time
by the parties.

1.2 Current Products. “Current Products” shall mean those specific products that
exist on the Effective Date which are proprietary products of KP and KP subsidiaries included in
the KP consolidated U.S. Federal income tax return and those specific products that exist on the
Effective Date which are proprietary products of CV and CV subsidiaries.

1.3 Existing Technology. “Existing Technology” shall mean and include any and all
Intellectual Property which exists as of the Effective Date which is owned by KP and/or CV, or
licensed from other parties by KP and/or CV with rights to sublicense, and which is involved in the
manufacture, use or sale of Current Products, or sublicense of Intellectual Property, or is
otherwise in existence on the Effective Date.

1.4 Future Products. “Future Products” shall mean those products (including modified
or improved Current Products) that incorporate New Technology developed by or for KP and CV after
the Effective Date pursuant to the terms of this Agreement.

1.5 Intellectual Property. “Intellectual Property” shall mean and include any and all
intellectual property or proprietary rights, including but not limited to copyright rights
(including rights in audiovisual works), moral rights, patent rights (including patent applications
and disclosures), rights of priority, mask work rights, trade secret rights, know-how,
technologies, procedures, processes, designs, inventions, discoveries, and any and all trademarks,
trade names and other marketing intangibles, recognized in any country or jurisdiction in the
world.

1.6 New Technology. “New Technology” shall mean and include any and all Intellectual
Property which does not exist as of the Effective Date and is developed as a result of Covered
Research.

1.7 Products. “Products” shall mean Current Products and Future Products.

1.8 Territory. “Territory” shall mean everywhere in the world except the United
States of America.

2. Ownership of New Technology

The parties agree that, with respect to all New Technology developed by or for either of them,
CV shall beneficially and exclusively own all rights, title and interest in and to such New
Technology in the Territory and KP shall beneficially and exclusively own all rights, title and
interest outside the Territory. [Notwithstanding the foregoing, KP and CV herewith grant to one
another a nonexclusive, royalty-free license to the New Technology, including the right to
sublicense, to make, have made, and reproduce Products and for use in researching and developing
New Technology and Future Products worldwide.] The parties further agree to execute such documents
and to perform such other acts as may be necessary or desirable to evidence or effectuate the
foregoing division of ownership rights. Legal title to New Technology shall be held by [KP].

3. Allocation of Research and Development Costs

3.1 Allocation Percentage. Research and Development Costs shall be calculated in
accordance with Section 4 below. Each party shall be responsible for paying a percentage of the
Research and Development Costs (the “Allocation Percentage”), which shall be based on the
respective reasonably anticipated benefits to each party from the New Technology expected to be
created. [The Allocation Percentage for each party shall be a fraction, the numerator of which is
that party’s current year gross margin from New Technology and Existing Technology and the
denominator of which is the current year combined gross margin of the parties from New Technology
and Existing Technology.]

3.2 [Gross Margin. For purposes of Section 3.1, gross margin shall mean all gross
revenues accrued by the parties from the sale, lease or license of any Product to non-affiliates,
less cost of goods sold recorded on the legal entity books of each company, without regard to any
revenue and cost of goods sold that is deferred for consolidated financial statement purposes
(e.g., for sales to distributors still in distributor inventory), and less sales or use, VAT, GST,
or similar taxes imposed on sales, transportation and insurance charges billed separately to
customers, and credits, allowances and returns granted to customers in the period in which such
credits, discounts, allowances or returns are actually allowed or granted. In the case of sales,
leases or licenses of Products by affiliates of KP or CV, gross margin shall include the gross
margin received by all such affiliates in a distribution chain. In the case of royalties received
from the license of New Technology or Existing Technology to affiliates, gross margin shall exclude
the royalties received but shall include the gross margin received by such affiliates from the
sale, lease or license of any Products sold by such affiliates to non-affiliates. In the case of
licenses of New Technology or Existing Technology to non-affiliates, gross margin shall include all
such royalties received.]

3.3 Computation of Payment. Each company’s Allocation Percentage, multiplied by total
Research and Development Costs, will be its total share. Each company’s actual Research and
Development Costs will be subtracted from the result of this calculation to determine each
company’s net cost sharing payment or reimbursement due.

3.4 Periodic Review and Adjustment. Each year the parties shall review, and when
appropriate, adjust the Allocation Percentages so that they continue to be based on the reasonably
anticipated benefits to each party. For purposes of the preceding sentence, adjustments may
include retroactive and/or prospective adjustments, as may be appropriate based on the parties’
determination.

4. Calculation of Research and Development Costs

4.1 General. The Research and Development Costs to be shared by the parties shall
consist of (i) Direct Costs, as defined in Section 4.2; and (ii) Indirect Costs, as defined in
Section 4.3, incurred by each party. All calculations shall be based on the calculations used by
KP.

4.2 Direct Costs. Direct Costs shall be those costs related directly to the research
and development of the New Technology. Examples of Direct Costs include, but are not necessarily
limited to, salaries, bonuses, other payroll costs and benefits, materials and supplies, and
consulting fees and fees paid under contract to persons other than KP subsidiaries included in the
KP consolidated U.S. Federal income tax return and CV subsidiaries that are disregarded for U.S.
Federal income tax purposes. In the case of KP subsidiaries included in the KP consolidated U.S.
Federal income tax return and CV subsidiaries that are disregarded for U.S. Federal income tax
purposes, Direct Costs shall exclude fees paid between such entities and include the costs incurred
by such entities related directly to the research and development of the New Technology.

4.3 Indirect Costs. Indirect Costs shall be those costs incurred by other departments
that benefit research or development activities. Examples of Indirect Costs include, but are not
necessarily limited to, occupancy costs, and the portion of overall corporate management expense
allocable to the research and development activities. Indirect Costs shall not include domestic or
foreign income taxes, interest expense, depreciation or amortization expense, or a charge for the
use or acquisition of intangible property.

4.4 Exclusions. Neither party shall be entitled to share in government subsidies
granted to another party, whether those subsidies take the form of direct payment of money, a
credit against tax liabilities, or some other form.

4.5 Stock-Based Compensation. For purposes of determining Research and Development
Costs, the parties agree to include stock-based compensation (as defined in United States Income
Tax Treasury Regulation Section 1.482-7(d)(2)(i) and (ii) (2003), as determined in accordance with
United States Income Tax Treasury Regulation Section 1.482-7(d)(2)(iii)(A)), to the extent that
such amounts are issued by [Polymers Holding LLC, a [Texas] corporation] and properly allocable to
Research and Development, and subject to Section 4.6.

4.6 Condition Subsequent. Stock-based compensation is being included in Research and
Development Costs pursuant to this Agreement solely in order to comply with Treas. Reg.
§ 1.482-7(d)(2) (2003). The parties acknowledge and agree that Treas. Reg. § 1.482-7(d)(2) (2003)
may be (a) held to be an invalid and arbitrary regulation by a final decision in a court of law
involving another taxpayer, including a U.S. Supreme Court decision, a decision by a U.S. Court of
Appeals of any Circuit upon denial of a writ of certiorari or lapse of time for filing such writ,
or a decision by a federal trial court upon lapse of time for filing a notice of appeal, or
(b) withdrawn by the Treasury Department (a “Triggering Event”). Within 90 days of a Triggering
Event, the parties shall refund as necessary among the parties an amount equal to the portion of
the cost sharing payments that were attributable to the inclusion of stock-based compensation
pursuant to Treas. Reg. §1.482-7(d)(2).

4.7 Records. Each party shall keep or cause to be kept complete and accurate records
pertaining to the manufacture, use and sale, license, rental or disposition of Products appropriate
to confirm all computations required by this Agreement. Each party shall make such records
available to the other party as may be reasonably requested. Each party may, at its own expense,
request an independent certified public accountant, selected by it and approved by the other party,
shall have access, at a place of the other party’s choosing during ordinary business hours, to such
records as may be reasonably requested. Neither the accountant nor the selected consultants shall
disclose to any information relating to the business of other party other than information relating
solely to the accuracy of the computations under this Agreement.

5. Payments of Allocated Research and Development Costs

Promptly after the close of each fiscal quarter, CV shall inform KP of any Research and
Development Costs incurred by CV during the immediately preceding fiscal quarter. KP shall
determine the amount that CV owes KP based on the Allocation Percentage according to Section 3. KP
shall notify CV of the amount owed by CV to KP hereunder for such quarter and CV shall pay such
amount within sixty (60) days of the end of the fiscal quarter. All payments shall be denominated
in U.S. dollars or euro equivalent, and shall be transferred in such manner as the parties may
mutually agree. Payments not made within sixty (60) days shall accrue interest at the short term
applicable federal rate as defined in § 1274(d) of the U.S. Internal Revenue Code of 1986, as
amended, compounded monthly until such amounts are paid.

6. Confidentiality

The New Technology contains confidential information of the parties (“Confidential
Information”). The parties agree to keep such Confidential Information confidential, and not to
disclose or make such available to any person, except persons who need to know such information to
carry out the intent of this Agreement. The parties agree that they will use the same level of
effort to protect such Confidential Information as they use to protect their own confidential
information of similar importance. The parties’ obligations under this section will not apply to
any information that: (i) was in the public domain at the time of communication or delivery of
such information to a party hereunder; (ii) becomes part of the public domain through no fault of
such party; (iii) was known to the receiving party prior to disclosure to it; (iv) is legally
obtained from a third party that is authorized to have or disclose such information; or (v) is
required to be disclosed by a governmental or judicial authority.

7. Disclaimer of Warranty

Neither party makes any warranty, express or implied, with respect to the Existing Technology
or the New Technology. EACH PARTY EXPRESSLY DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING
WITHOUT LIMITATION ANY WARRANTY OF OWNERSHIP, QUIET ENJOYMENT, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO THE EXISTING TECHNOLOGY OR THE NEW TECHNOLOGY.

8. Limitations of Liability

NEITHER PARTY HERETO WILL BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL, OR
INCIDENTAL DAMAGES ARISING OUT OF THE DEVELOPMENT, MANUFACTURE, USE, DISTRIBUTION, LICENSE OR SALE
OF THE EXISTING TECHNOLOGY OR THE NEW TECHNOLOGY, OR THE ACTIVITIES UNDERTAKEN BY IT PURSUANT TO
THIS AGREEMENT, WHETHER SUCH CLAIM ARISES IN TORT OR CONTRACT, OR ANY OTHER LEGAL THEORY,
REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY THEREOF.

9. Export Restrictions

The parties understand that implementation of this Agreement must conform with all applicable
laws and regulations relating to the transfer of technology and property rights from the United
States. The parties understand that KP is subject to regulation by agencies of the United States
government, including the United States Department of Commerce, which may prohibit export or
diversion to certain countries of the Existing Technology, the New Technology or Products. The
parties will not participate in any prohibited export or diversion.

10. Protection of Intellectual Property Rights

KP shall be primarily responsible for obtaining legal protection worldwide for all
Intellectual Property rights related to the New Technology (the “Worldwide Rights”). Any such
legal protection for the Worldwide Rights obtained shall be in the name of KP. If KP elects not to
obtain legal protection in any jurisdiction where CV believes such protection should be obtained,
then CV shall so inform KP in writing. If KP does not agree to promptly attempt to obtain such
protection, then CV may do so at its own cost, provided that such protection shall be in KP’s name
so long as KP takes any steps reasonably requested by CV to facilitate registration in KP’s name.
Any costs incurred by KP pursuant to this Section shall be allocated between the parties in
accordance with Sections 3 and 4 of this Agreement.

11. Relationship of the Parties

This Agreement is not intended to create a partnership or joint venture. CV and KP are
independent contractors and neither of them will be nor represent themselves to be the legal agent,
partner, joint venturer, or employee of the other party for any purpose. Neither party shall enter
into contracts in the name of, or otherwise bind, the other party with respect to matters covered
in this Agreement or otherwise. Neither party will be bound by, nor be liable to, any third person
for any act or any obligation or debt incurred by the other party, except to the extent
specifically agreed to in writing by the parties.

12. Term and Termination

This agreement shall continue in force until terminated as set forth herein. A party may
terminate its participation in this Agreement, by giving thirty days written notice to such effect
to the other party. Termination of this Agreement shall not affect a party’s ownership rights or
other rights in the New Technology, as described in Section 2 above. Sections 2, 6 through 11 and
13 shall survive termination of this Agreement.

13. General Provisions

13.1 Waiver. No term of this Agreement shall be waived and no breach excused by a
party unless such waiver or excuse is made in writing by such party. No consent, waiver or excuse
shall constitute a subsequent consent, waiver or excuse of a similar or different kind.

13.2 Integration and Modification. This is the entire Agreement between the parties
with respect to the subject matter hereof and may be modified only by a writing signed by the
parties.

13.3 Assignment. Neither party may assign, transfer or otherwise dispose of this
Agreement in whole or in part without the prior consent of the other party in writing, and such
consent will not be unreasonably withheld.

13.4 Severability. If any provision of this Agreement is determined to be
unenforceable by a court of competent jurisdiction, such provision shall be enforced to the maximum
extent possible and the remaining provisions of this Agreement shall remain in full force and
effect.

13.5 Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the [State of Texas], United States of America, as between residents of [Texas],
excluding those laws related to choice of laws and conflict of laws. Each party hereby consents to
the jurisdiction of the state and federal courts of [Texas].

13.6 Notice. Any notice to be provided hereunder shall be provided in accordance with
the provisions of Exhibit B to this Agreement, as may be modified from time to time by the
parties.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives.

Kraton Polymers U.S. LLC

By:      

Name: [     ]

Date:      

Place:      

Witness:     

New Holding Dutch CV

By:      

Name: [     ]

Date:      

Place:      

Witness:      

3

EXHIBIT A

COVERED RESEARCH

“Covered Research” shall mean all activities related to the research and development of
Intellectual Property conducted by or for the parties on or after the Effective Date, [except for
research and development activities conducted by or on behalf of      ]. Covered
Research shall include all research and development activities conducted by KP subsidiaries after
the Effective Date and during the period that they are included in the KP consolidated U.S. Federal
income tax return. Covered Research shall also include all research and development activities
conducted by CV subsidiaries after the Effective Date.

Kraton Polymers U.S. LLC

By:      

Name: [     ]

Date:      

Place:      

Witness:     

New Holding Dutch CV

By:      

Name: [     ]

Date:      

Place:      

Witness:      

4

EXHIBIT B

NOTICE PROVISIONS

Any notice to be provided shall be in English, and shall be provided by personal delivery or
express courier, and shall be deemed given when delivered or two days after deposit with the
express courier, respectively. All such notices shall be sent to the addresses specified below, or
such other address as a party may give in the manner set forth herein.

Kraton Polymers U.S. LLC

By:      

Name: [     ]

Date:      

Place:      

Witness:     

New Holding Dutch CV

By:      

Name: [     ]

Date:      

Place:      

Witness:      

5

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