EXHIBIT 10.2

 

Huntsman Corporation
500 Huntsman Way
Salt Lake City, Utah 84108

December 14, 2008

BY FACSIMILE

Hexion Parties
c/o Hexion Specialty Chemicals, Inc.
180 East Broad Street
Columbus, OH 43215
Facsimile: (614) 225-7495
Attention: William Carter

Apollo Parties
c/o Apollo Management VI, L.P.

9 West 57th Street, 43rd Floor
New York, New York 10019
Facsimile: (212) 515-3288
Attention: Joshua Harris and Scott Kleinman
 
 
Ladies and Gentlemen:

This letter memorializes our agreement as of the Effective Date of the
Settlement Agreement and Release dated December 14, 2008 between and among the
Huntsman Parties, the Hexion Parties, and the Apollo Parties (capitalized terms
not otherwise defined in this letter are used as defined in the Settlement
Agreement and Release), that Huntsman shall pay the Apollo Parties an amount in
cash equal to 20% of the value of any cash and noncash consideration that is in
excess of $500 million ($500,000,000) that Huntsman may obtain or receive in
settlement in connection with any claims made by Huntsman against the Banks
arising from or relating to the Merger Agreement, the Transactions referred to
therein (including but not limited to the Financing), and related matters, such
claims including but not limited to the Texas Action Against the Banks (the
“settlement”), after Huntsman first recovers its attorneys’ fees, costs, and
expenses in making that claim; provided, however, that:

             (1)      in no circumstance shall the aggregate amount of any
payments owed by Huntsman to the Apollo Parties under this letter exceed $425
million ($425,000,000);   (2)      in the event trial commences in the Texas
Action Against the Banks, any interest on the part of the Apollo Parties shall
terminate immediately, and Huntsman shall not owe any portion of any subsequent
recovery to the Apollo Parties under this letter; and

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         (3)        in the event that Huntsman or any of its subsidiaries issues
a security or debt instrument to any of the Banks in connection with the
settlement, the amount of consideration deemed to be obtained or received by
Huntsman in connection therewith shall be the excess of any of the value of the
consideration provided by the Banks over the value of the security or debt
instrument issued.

For the purposes of this letter, the value of (1) any consideration consisting
of securities listed on a national securities exchange or traded on the NASDAQ
shall be equal to the average closing price per share of such security as
reported on such exchange or NASDAQ for the 10 trading days prior to the date of
settlement; and (2) any other form of noncash consideration shall be the full
market value of that noncash consideration as determined by a nationally
recognized independent investment banking firm mutually selected, within three
business days after the Huntsman Parties advise the Apollo Parties of the
settlement, by the Huntsman Parties and the Apollo Parties, which determination
shall be made by such investment banking firm within 15 business days after the
date of their engagement. The determination of the investment banking firm shall
be binding upon the parties.

Payment in full of all amounts due to Huntsman under the Settlement Agreement is
a condition precedent to the obligation to pay any sums of money pursuant to
this letter for the benefit of the Huntsman Parties and if such condition
precedent is not met prior to April 1, 2009, this letter shall terminate. The
obligations of this letter are also separate and severable, in their entirety,
from the Settlement Agreement. The Huntsman Parties shall not challenge in any
way the validity or enforceability of this letter or any provision thereof. In
the event that this letter or any provision hereof is invalid or unenforceable,
or fails for any reason, it shall have no effect on the validity or
enforceability of the Settlement Agreement.

The provisions of the Settlement Agreement relating to Choice of Law and
Jurisdiction shall also apply to this letter.

This letter may be executed simultaneously or in actual or telecopied
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same letter.

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           Please countersign below to indicate your acceptance of these terms.

Very truly
yours,                                                                                                        
HUNTSMAN CORPORATION    By:                /s/ Peter R. Huntsman        
Name:     Peter R. Huntsman  Title:        President and Chief Executive
Officer 

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      /s/  Jon M. Huntsman            Jon M. Huntsman 

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      /s/  Peter R. Huntsman         Peter R. Huntsman 

AGREED AND ACCEPTED, DECEMBER 14, 2008:

HEXION SPECIALTY CHEMICALS,
INC.                                                            
By:          /s/ Craig O. Morrison                      Name:  Craig O. Morrison
         Title:     President and Chief Executive Officer     HEXION LLC     
By:           /s/ Craig O. Morrison                      Name:  Craig O.
Morrison          Title:     President and Chief Executive Officer

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NIMBUS MERGER SUB INC.                                                    
                By:        /s/   Craig O. Morrison                      
 Name:    Craig O. Morrison              Title:       President and Chief
Executive Officer             /s/   Craig O. Morrison               Craig O.
Morrison                  APOLLO INVESTMENT FUND IV, L.P.                       
   By: Apollo Advisors IV, L.P., its general                     partner       
             By: Apollo Capital Management IV, Inc., its     
              general partner                             By:       /s/  John J.
Suydam                                          Name:   John J. Suydam    
                      Title:      Vice President                 APOLLO OVERSEAS
PARTNERS IV, L.P.                     By: Apollo Advisors IV, L.P., its
managing                     partner                     By: Apollo Capital
Management IV, Inc., its                     general partner           
           By:       /s/  John J. Suydam                   
                      Name:   John J. Suydam    
                      Title:      Vice President    

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APOLLO INVESTMENT FUND VI, L.P.                   By:   Apollo Advisors VI,
L.P., its general                     partner                   By:   Apollo
Capital Management VI, LLC,                     its general partner           
                  By:        /s/  John J. Suydam                               
                        Name:   John J. Suydam    
                        Title:      Vice President                 APOLLO
OVERSEAS PARTNERS VI, L.P.                   By:   Apollo Advisors VI, L.P.,   
                  its managing general partner                  By:   Apollo
Capital Management VI, LLC,                     its general partner           
                   By:        /s/  John J. Suydam          
                        Name:   John J. Suydam    
                        Title:      Vice President           APOLLO OVERSEAS
PARTNERS      (DELAWARE) VI, L.P.                   By:   Apollo Advisors VI,
L.P.,                     its general partner                   By:   Apollo
Capital Management VI, LLC,                     its general partner           
                    By:        /s/  John J. Suydam          
                        Name:   John J. Suydam    
                        Title:      Vice President    

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APOLLO OVERSEAS PARTNERS                            (DELAWARE 892) VI, L.P.     
             By:  Apollo Advisors VI, L.P.,                      its general
partner                     By:  Apollo Capital Management VI, LLC,   
                  its general partner                         By:        /s/ 
John J. Suydam                                     Name:  John J. Suydam  
                            Title     Vice President           APOLLO OVERSEAS
PARTNERS    (GERMANY) VI, L.P.                   By:  Apollo Advisors VI, L.P., 
                    its managing general partner                  By:  Apollo
Capital Management VI, LLC,                      its general partner       
                 By:        /s/  John J. Suydam        
                            Name:  John J. Suydam  
                            Title:     Vice President       APOLLO INVESTMENT
FUND V, L.P.                   By:  Apollo Advisors V, L.P.,   
                  its general partner                   By:  Apollo Capital
Management V, Inc.,                      its general partner       
                 By:        /s/  John J. Suydam        
                            Name:  John J. Suydam  
                            Title:     Vice President  

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APOLLO OVERSEAS PARTNERS V, L.P.                   By:  Apollo Advisors V,
L.P.,                    its managing general partner                  By: 
Apollo Capital Management V, Inc.,                    its general partner       
                     By:        /s/  John J. Suydam          
                         Name:  John J. Suydam                           
                         Title:     Vice President           APOLLO NETHERLANDS
PARTNERS V(A),      L.P.                   By:  Apollo Advisors V, L.P.,     
              its managing general partner                  By:  Apollo Capital
Management V, Inc.,                    its general partner           
                 By:        /s/  John J. Suydam          
                         Name:  John J. Suydam    
                         Title:     Vice President           APOLLO NETHERLANDS
PARTNERS V(B),      L.P.                   By:  Apollo Advisors V, L.P.,     
              its managing general partner                  By:  Apollo Capital
Management V, Inc.,                    its general partner           
                  By:        /s/  John J. Suydam          
                         Name:  John J. Suydam    
                         Title:     Vice President    

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APOLLO GERMAN PARTNERS V                             GMBH & CO., KG           
       By:  Apollo Advisors V, L.P.,                    its managing limited
partner                  By:  Apollo Capital Management V, Inc.,     
              its general partner                             By:        /s/ 
John J. Suydam                                    Name:   John J. Suydam    
                         Title:      Vice President                 APOLLO
ADVISORS IV, L.P.                   By:  Apollo Capital Management IV, Inc.,
its                    general partner                                  
By:        /s/  John J. Suydam                                    Name:   John
J. Suydam                              Title:      Vice President              
  APOLLO MANAGEMENT IV, L.P.                   By:  Apollo Management, L.P., its
general                    partner                   By:  Apollo Management GP,
LLC, its                    general partner                            
By:        /s/  John J. Suydam                                    Name:   John
J. Suydam                              Title:      Vice President          
APOLLO ADVISORS V, L.P.                   By:  Apollo Capital Management V,
Inc., its                    general partner           
                 By:        /s/  John J. Suydam          
                         Name:   John J. Suydam    
                         Title:      Vice President    

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APOLLO MANAGEMENT V, L.P.                                              By:  AIF
V Management, LLC, its general                       partner                   
         By:        /s/  John J. Suydam          
                         Name:  John J. Suydam    
                         Title:     Vice President           APOLLO ADVISORS VI,
L.P.                            By:  Apollo Capital Management VI, LLC,     
                 its general partner                             By:        /s/ 
John J. Suydam                                    Name:  John J. Suydam    
                         Title:     Vice President           APOLLO MANAGEMENT
VI, L.P.                            By:  AIF VI Management, LLC,     
                 its general partner                             By:        /s/ 
John J. Suydam                                    Name:  John J. Suydam    
                         Title:     Vice President           APOLLO MANAGEMENT,
L.P.                            By:  Apollo Management GP, LLC,     
                 its general partner                             By:        /s/ 
John J. Suydam                                    Name:  John J. Suydam    
                         Title:     Vice President    

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APOLLO GLOBAL MANAGEMENT, LLC                          By:    AGM Management,
LLC, its Manager                             By:    BRH Holdings GP, Ltd., its
Sole                                Member                       By:        /s/ 
John J. Suydam                                    Name:  John J. Suydam    
                         Title:     Vice President                /s/  Leon
Black                                            Leon Black               /s/ 
Joshua J. Harris      Joshua J. Harris     

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