Exhibit 10.15
CONFIDENTIAL TREATMENT REQUESTED
UNDER
C.F.R. SECTIONS 200.80(b)(4), 200.83 AND
230.406.
**** INDICATES OMITTED MATERIAL THAT IS
THE
SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST
FILED SEPARATELY WITH THE COMMISSION.
THE OMITTED MATERIAL HAS BEEN FILED
SEPARATELY WITH THE COMMISSION.
AMENDED AND
RESTATED
PURIFIED WET PHOSPHORIC ACID
SUPPLY AGREEMENT
This Agreement made this 23rd day of
March, 2000, by and between Rhodia Inc., a Delaware corporation
(“ Rhodia ”), and PCS Purified Phosphates, a
Virginia general partnership formerly known as Albright &
Wilson Company (“ Partnership ”).
W I T N E S S E T
H:
WHEREAS, on July 29, 1988, Albright
& Wilson Americas Division of Tenneco Canada, Inc., an Ontario
corporation (“ A&W Canada ”), and
Partnership entered into a Purified Wet Phosphoric Acid Supply
Agreement dated of even date (as amended from time to time since
that date, the “ 1988 Agreement ”);
and
WHEREAS, Albright & Wilson
Americas Limited, a Canadian corporation (“ A&W
Ltd. ”), is a successor to A&W Canada under the 1988
Agreement and, thus, A&W Ltd. and Partnership are parties to
the 1988 Agreement; and
WHEREAS, PCS Phosphate Company,
Inc., a Delaware corporation, formerly known as Texasgulf Inc.
(“ PCSP ”), Albright & Wilson Americas,
Inc., an affiliate of A&W Ltd. (“ A&W Inc.
”), Partnership, and PCS Industrial Products, Inc., a
Delaware corporation (“ PCSA ”), and Rhodia,
have entered into a Distribution and Sale Agreement, dated as of
March 23, 2000 (the “ Distribution and Sale Agreement
”), pursuant to which, among other things, Partnership has
agreed to distribute certain assets of Partnership to A&W Inc.
and A&W Inc. has agreed to sell its entire interest in
Partnership to PCSP as provided therein; and
WHEREAS, in connection with the
transactions contemplated by the Distribution and Sale Agreement
and in order to satisfy a condition to the obligations of
Partnership under the Distribution and Sale Agreement, Rhodia and
Partnership desire to enter into this Agreement to effect various
further amendments to, and to restate, the 1988 Agreement, and to
designate Rhodia as the purchaser thereunder.
NOW, THEREFORE, for and in
consideration of the premises and the mutual covenants herein set
forth, Rhodia and Partnership hereby amend and restate the 1988
Agreement in its entirety and agree as follows:
1. Purchase and Sale;
Specifications .
1.1 Partnership shall sell and
deliver, and Rhodia shall purchase and receive, during the term
hereof, low alkali purified wet phosphoric acid (“ Low
Alkali Product ”), low alkali low sulfate purified wet
phosphoric acid (“ Low Sulfate Product ”) and
high alkali purified wet phosphoric acid (“ High Alkali
Product ”; each of Low Alkali Product, Low Sulfate
Product
and High Alkali Product sometimes
referred to herein as a “Product”, and, collectively,
the “Products”) in the quantities and subject to the
terms and conditions hereinafter set forth.
1.2 Except as set forth in Section
1.3 hereof, the Products shall conform with the specifications
described in Exhibit A attached hereto. Partnership’s
analyses at point of transfer shall govern unless shown to be in
error. A list of Partnership’s analytical procedures used for
Products is attached hereto as Exhibit B. Partnership shall obtain
analyses of all Products transferred and shall provide Rhodia a
Certificate of Analysis with each transfer of the Products. In the
event that Low Alkali Product or Low Sulfate Product shall not
conform with any new Food Chemicals Codex standard, then upon sixty
(60) days advance written notice to Partnership, Rhodia may elect
to reduce or temporarily eliminate shipment and minimum purchases
of the affected Products or any portions thereof under this
Agreement, such notice indicating (i) the date on which any change
in shipment and/or purchases shall occur and (ii) the volume of the
applicable affected Product which Rhodia elects to purchase, until
such time as the Partnership again offers products hereunder
conforming with such standards. If Partnership subsequently
notifies Rhodia that the affected Products then meet the minimum
applicable Food Chemicals Codex standards and that no change in
Product pricing is required hereunder, within sixty (60) days of
such notice, Rhodia shall renew its purchase of Products at those
then applicable levels set forth in Exhibit C. If Partnership
advises Rhodia that an increased price for Products will be
required to compensate Partnership for capital expenditures or
increased operating costs, the parties shall negotiate in good
faith as to such new prices and volumes for Product. If no
agreement is reached within nine (9) months of Partnership’s
notice, either party shall have the right to terminate this
Agreement as to the affected volumes of Low Alkali Product and/or
Low Sulfate Product upon not less than six (6) months notice.
Except to the extent Rhodia declines to purchase Improved Products
as set forth in Section 1.3 below, each type of Product sold
hereunder shall be of Partnership’s typical
quality.
1.3 The parties recognize that
Partnership may develop materials from time to time that are
capable of being substituted for one or more of the Products. In
the event that Partnership develops any such materials and
constructs or modifies facilities so as to be capable of
manufacturing such materials, then Partnership shall provide Rhodia
with a written notice of (i) the specifications for such materials
and (ii) the Food Chemicals Codex applicable to such materials (in
each such case, such grade of material is referred to hereinafter
as the “ Improved Product ”). Within three (3)
months following receipt of any such notice from Partnership,
Rhodia shall notify Partnership in writing as to whether Rhodia
intends to purchase Improved Product in substitution for a
particular type of Product. The parties agree to negotiate with one
another in good faith to determine the amount of an adjustment, if
any, to be made to the pricing terms hereunder, the volume of the
Improved Product to be purchased and any other provisions of this
Agreement that shall be modified. In the event that the parties are
unable to reach agreement regarding a mutually acceptable amendment
to this Agreement concerning such Improved Product within six (6)
months following the date that Partnership notified Rhodia under
this Section 1.3, neither party shall thereafter have any
obligation hereunder to purchase or supply the applicable Improved
Product.
2
2. Term . The term of this
Agreement shall be for the period commencing on the date of this
Agreement and ending on July 29, (****) (the “ Initial
Term ”), and thereafter shall be extended without further
action of the parties for additional terms of (****) years (each an
“ Additional Term ”) upon the expiration of the
Initial Term or any Additional Term; provided, however, that
upon not less than twenty-four (24) months’ prior written
notice to the other party hereto, either party may cause this
Agreement to terminate upon the expiration of the Initial Term or
any Additional Term thereafter.
3. Price and Terms
.
3.1 Rhodia shall pay to Partnership
in U.S. Dollars a price per short ton (“st”) of
P 2 O 5 contained in Product F.O.B. at the
Aurora Plant determined as follows:
|
|
(i)
|
The initial
price for Low Alkali Product is $(****);
|
|
|
(ii)
|
The initial
price for Low Sulfate Product is $(****); and
|
|
|
(iii)
|
The initial
price for High Alkali Product is $(****).
|
The price for each of the Low Alkali Product,
Low Sulfate Product and High Alkali Product shall be adjusted
during the term of this Agreement in accordance with the provisions
set forth on Exhibit C attached hereto.
As used herein, “ Contract
Year ” means a calendar year commencing January 1 during
the term of this Agreement, except that the first such period shall
commence upon the date of this Agreement and terminate on December
31, 2000. As used herein “ Contract Quarter ”
means a period of three (3) consecutive months, beginning January
1, April 1, July 1, or October 1, except that the first such period
shall commence upon the date of this Agreement and end on the day
prior to the start of the first full Contract Quarter.
3.2 On or before the September 30th
prior to the commencement of each Contract Year (as defined in
Section 3.1), Partnership shall give Rhodia written notice of its
estimate of the price for each Product for such Contract Year. On
or prior to June 30 of the next following Contract Year,
Partnership shall determine the actual price for each Product
purchased, and to be purchased by Rhodia during such Contract Year
(based upon the calculations set forth in Exhibit C) and shall
invoice or credit Rhodia for the difference, if any, between such
actual price and the amount previously invoiced at the estimated
prices to Rhodia for such Contract Year. For the remainder of such
Contract Year, Partnership shall invoice Rhodia for the actual
price for the Products as so determined.
3.3 Partnership shall invoice Rhodia
for payment with respect to each shipment of Product hereunder, and
the terms of payment for all Products purchased hereunder shall be
net thirty (30) calendar days from date of the invoice.
3
3.4 Partnership shall keep and
maintain true and accurate records as may be necessary to verify
volumes delivered and indices tracked as bases for prices charged
to Rhodia under this Agreement. If Rhodia disputes any of the
amounts charged hereunder, Partnership shall allow representatives
of Rhodia immediate and full access (including the rights of
physical inspection and to make copies) to such records and such
other information maintained by Partnership as may be necessary for
the verification of such amounts. Partnership and Rhodia shall use
their best efforts to resolve such dispute within 45 calendar days
after the relevant invoice date.
3.5 If it is determined that there
has been an overcharge, then Partnership shall immediately refund
the overcharge received by it to Rhodia or, if such amount has not
been previously paid, Rhodia shall pay to Partnership the correct
amount owed to Partnership. If it is determined that there has been
an undercharge, Rhodia shall immediately pay the undercharge to
Partnership plus any additional amounts not previously paid
hereunder.
3.6 Notwithstanding anything to the
contrary contained in this Section 3, with respect to any Contract
Year after the (****) Contract Year hereunder, if Rhodia notifies
Partnership of a bona fide opportunity, and provides a copy thereof
in writing (showing all terms of the offer, including the offering
party), under which Rhodia is to purchase a quantity of phosphoric
acid of a quality equal to or better than a specific Product
manufactured by Partnership at a price F.O.B. rail car customs
cleared U.S. East Coast port that, giving effect to all conditions
of such offer, is at least ten percent (10%) less than the price
per short ton then in effect under this Agreement for the relevant
Product (the “ Lower Offer ”), Partnership shall
have the option to meet the Lower Offer within fifteen (15)
calendar days after notification by Rhodia, for the same annual
quantity as that to which the Lower Offer relates. In the event
that Partnership does not elect to meet the Lower Offer, then (i)
Rhodia shall be released from its obligation hereunder to purchase
the annual volume of the Lower Offer up to an amount equal to the
lesser of (a) (****) short tons of the Product or (b) (****) short
tons of the Product minus the sum of all then effective
Released Quantities and Met Quantities (both as hereinafter
defined), and (ii) the portion of each type of Product required to
be purchased by Rhodia as set forth in Exhibit C shall be
proportionately reduced to equal the result of multiplying the
annual amount of such Product which Rhodia is required to purchase
as set forth in Exhibit C times a fraction, the numerator of which
is the total annual number of short tons of all Product required to
be purchased as set forth in Exhibit C minus the Released Quantity
and the denominator of which is (****). “ Released
Quantity ” means the annual quantity of short tons of
Product that Rhodia has been released from its obligation to
purchase hereunder pursuant to a Lower Offer presented to
Partnership by Rhodia in accordance with this Section, “
Met Quantity ” means the annual quantity of short tons
of Product for which Partnership has reduced the purchase price
hereunder pursuant to a Lower Offer presented to Partnership by
Rhodia in accordance with this Section. With respect to all
Released Quantities hereunder, such right to purchase from such
third party must be exercised in writing by Rhodia within sixty
(60) calendar days and shall be effective twelve (12) months after
Partnership’s receipt of Rhodia’s notice of the Lower
Offer in accordance with the notice provisions set forth herein. In
the event that Rhodia shall accept any Lower Offer from such third
party pursuant to the terms hereof, then, upon the expiration of
the contract or other arrangement entered into pursuant to such
Lower Offer, Rhodia shall revert to
4
the purchase of quantities of
Product from Partnership, at the then effective price hereunder,
which Rhodia was required to purchase prior to application of this
Section. In the event that Partnership elects to meet the Lower
Offer, then (i) Partnership shall sell to Rhodia on an annual basis
the quantity of Product as to that which the Lower Offer relates,
up to an annual amount equal to the lesser of (a) (****) short tons
of the Product or (b) (****) short tons of the Product minus
the sum of all then effective Released Quantities and Met
Quantities at the price per short ton in the applicable Lower Offer
(the “Met Price ”) for the term specified in the
Lower Offer (the “Met Term” ), and (ii) the Met
Price shall remain in effect with respect to the Met Quantity for
the entirety of the Met Term despite any subsequent Lower Offer
received by Rhodia that contains a price per short ton less than
the Met Price. Upon the expiration of the applicable Met Term,
Rhodia shall revert to the purchase of Product from Partnership at
such price that Rhodia was required to pay prior to adjustment
under this Section. Rhodia shall be entitled to present subsequent
Lower Offers to Partnership under this Section so