37 Life Saving Rules (LSR) – Implication Of Violation

(Clause No. 37 OF General Conditions of Contract)

37.1 Definition of Life Saving Rules.

For purposes of this Agreement, the term “Life Saving Rules” means the following rules of INEOS
Styrolution as may be amended from time to time:

 No consumption or being under the influence of alcohol or drugs on company property;

 No smoking outside dedicated smoking areas;

 No work on live equipment/machines to commence without authorization;

 Safety critical devices/interlocks must not be disabled or overridden without authorization;

 Persons working at height must use proper fall protection;

 No entry to confined space without authorization and gas test;

 Lifting & Hoisting - No unauthorized person to enter –the defined danger zone where objects can fall.

37.2 Adherence to Life Saving Rules.

When entering, leaving or on the Plant Site, Contractor and each Subcontractor including their
employees (collectively “Contractor”), shall comply with all Life Saving Rules, which shall, for purposes
of this Agreement, be deemed to be a part of the Plant Regulations and shall be the minimum standard
of performance required. Contractor shall immediately report any violation of the Plant Regulations to
a Company Representative of INEOS Styrolution. Unless INEOS Styrolution otherwise consents in
writing, the Contractor shall ensure that every subcontract entered into pursuant to this Agreement, by
such Contractor shall include all provisions contained in this Article.

37.3 Violation of Life Saving Rules.

The Contractor acknowledges and agrees that in the event of a violation or failure to comply in whole
or in part with a Life Saving Rule, the damages payable for each violation, shall be equivalent to 2.5%
of the aggregate amount paid or payable under this Agreement, (in either case, the “Liquidated
Damages Amount”).

Accordingly, in the event of any such violation, the Contractor shall pay, and INEOS Styrolution shall
accept, an amount equal to the Liquidated Damages Amount as liquidated damages. INEOS
Styrolution may deduct from any payment due to the Contractor any Liquidated Damages Amounts
due and owing to INEOS Styrolution from the Contractor. The payment of any Liquidated Damages
Amount is not intended to, and shall not be construed to,

(a) diminish or impair any other rights of INEOS Styrolution hereunder or under applicable Law
(including the right of INEOS Styrolution to terminate this Agreement and all outstanding Work
Authorizations pursuant to paragraph (d) below); or (b) exclude any other Claims, Liabilities or
Losses (including claims for death, personal injury or negligence) for which Contractor is liable
hereunder, including any Claims, Liabilities or Losses under paragraph (b) below and the Liquidated
Damages Amount shall not relieve the Contractor from its obligations to complete the Work, or from
any other duties, obligations or responsibilities under this Agreement or under applicable Law. The
Parties irrevocably agree that: (i) the Liquidated Damages Amount is reasonable and is a genuine
pre-estimate of the loss and damages that INEOS Styrolution would sustain in the event of the
Contractor’s failure to comply with the Life Saving Rules; and (ii) the Liquidated Damages Amount
shall be payable on demand without requiring any proof of actual loss or damages caused by such
breach or violation by the Contractor.
(b) In addition, in the event of a violation in whole or in part with a Life Saving Rule, all Work will
immediately stop (excluding any Work that cannot be stopped in a safe manner, which Work will
stop as soon as such Work stoppage can be safely put into effect upon INEOS’ formal instructions)
and a safety stand down will occur. INEOS Styrolution and Contractor will jointly discuss and agree
on the essential staff and workers that should remain on the Plant Site during the work stoppage
and Contractor shall perform a complete housekeeping during the scheduled Work stoppage to
eliminate any hazards. The stoppage of Work will be for as long as INEOS Styrolution determines
as will be necessary to allow for a full and complete investigation of the incident and completion of
the other items required under this paragraph (b). A Company Representative will communicate the
timing of the work stoppage and safety stand down to the Contractor. The Contractor shall schedule
the attendance of all relevant workers at the safety stand down, at which a Company Representative
will explain the nature of the violation and a Safety Representative will lead a discussion of the
actions that will be implemented to prevent recurrence of the violation of the Life Saving Rule and
provide re-training on the Life Saving Rules. Any such work stoppage, safety stand down and re-
training shall be at the sole cost and expense of the Contractor.

(c) The Contractor shall immediately remove from the Plant Site any of its employees or contracted
parties including agents, who are in violation of a Life Saving Rule.

(d) Notwithstanding anything to the contrary contained in this Agreement, this Agreement or any Work
Authorization may be terminated by INEOS Styrolution if the Contractor, violates any Life Saving
Rule or INEOS Styrolution otherwise deems, in its sole discretion, that Contractor’s safety, security,
health or environmental performance is inadequate.