Document:

Exhibit 10.53 2005

    
      
        

      

    

    Exhibit
      10.53

     

    Execution
      Copy

    

    Tax
      Sharing Agreement,
      dated as of November 28, 2005 (the “Agreement”), between Kerr-McGee Corporation,
      a Delaware corporation (“Distributing”) and Tronox Incorporated (“Tronox”), a
      Delaware corporation. To the extent not defined herein, all defined terms shall
      have the same meaning as in the Master Separation Agreement (as hereinafter
      defined). 

    
      

    

     

    INTRODUCTION

     

    WHEREAS,
      as of the date hereof, Distributing is the common parent of an affiliated group
      of domestic corporations, including Tronox, which has elected to file
      consolidated federal income tax returns;

     

    WHEREAS,
      the board of directors of Distributing has determined that it would be in the
      best interests of Distributing and its shareholders to separate the Tronox
      Business (as hereinafter defined) from Distributing;

     

    WHEREAS,
      the boards of directors of Distributing and Kerr-McGee Worldwide Corporation
      have determined to contribute to Tronox Worldwide LLC certain entities engaged
      in the Tronox Business and to contribute Tronox Worldwide LLC to Tronox (the
      “Contribution”);

     

    WHEREAS,
      the board of directors of Distributing expects to distribute (the
“Distribution”) all the outstanding shares of Class B common stock of Tronox to
      the shareholders of Distributing;

     

    WHEREAS,
      prior to the Distribution, Tronox will issue to the public shares of Class
      A
      common stock of Tronox which, when issued, will constitute all of the
      outstanding shares of Tronox’s Class A common stock (the “IPO”);

     

    WHEREAS,
      Distributing and Tronox intend that the Contribution qualify as a tax-free
      transfer under Sections 368(a)(1)(D) of the Internal Revenue Code of 1986,
      as
      amended (the “Code”), and the Distribution qualify as a pro rata or non-pro rata
      tax-free distribution under Sections 355 and 368(a)(1)(D) of the
      Code;

     

    WHEREAS,
      it is appropriate and desirable to set forth the principles and responsibilities
      of the parties to this Agreement regarding (i) future adjustments with respect
      to Taxes, Tax Contests and other related Tax matters and (ii) current Tax
      liabilities that arise as a result of the activities of the parties prior to
      the
      IPO and restructuring activities undertaken to implement the separation and
      Distribution;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements contained
      herein, the parties hereby agree as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE I

     

    DEFINITIONS

     

    The
      following terms shall have the following meanings (such meanings to apply
      equally to both the singular and the plural forms of the terms defined). All
      section references are to this Agreement unless otherwise stated.

     

    “Claims
      Court Litigation”
      means the litigation that is currently pending in the United States Court of
      Federal Claims, docket number 05-5T relating to the question of capitalization
      versus deductibility of certain environmental clean-up expenditures with respect
      to the contamination of the refining sites in Cushing and Cleveland,
      Oklahoma.

     

    “Claims
      Court Related Tax Adjustment”
      means, with respect to any Pre-Deconsolidation Period, and as computed
      separately for each Tax, the net increase in each such Tax equal to the sum
      of
      all adjustments made after the Deconsolidation Date with respect to each such
      Tax for each such Pre-Deconsolidation Period that are made pursuant to a Final
      Determination in a Tax Contest involving the same or similar factual and legal
      issues that are at issue in the Claims Court Litigation.

     

    “Claims
      Court Related Tax Benefit”
      means (i) 100% of any Tax refund received in the Claims Court Litigation or
      any
      Tax Contest related to a Pre-Deconsolidation Period involving the same or
      similar factual and legal issues that are at issue in the Claims Court
      Litigation and (ii) any deduction, amortization, exclusion from income, or
      other
      allowance (including a loss or reduced gain recognized upon a sale of an asset)
      that actually reduces in cash the amount of Tax that a member of the Tronox
      Group would have been required to pay in a Post-Deconsolidation Period (or
      actually increases in cash the amount of any Tax refund to which a member of
      the
      Tronox Group would have been entitled in a Post-Deconsolidation Period) in
      the
      absence of any basis increase resulting from a Final Determination in the Claims
      Court Litigation or in a Tax Contest related to a Pre-Deconsolidation Period
      involving the same or similar factual and legal issues that are at issue in
      the
      Claims Court Litigation. 

     

    “Code”
      means the Internal Revenue of Code of 1986, as amended.

     

    “Combined
      Tax”
      means any income or franchise Tax (whether measured by income or capital)
      payable to any state, local or foreign taxing jurisdiction in which any member
      of the Tronox Group has filed or will file a Return with a member of the
      Distributing Group on an affiliated, consolidated, combined or unitary basis
      with respect to such Tax.

     

    “Combined
      Tax Return”
      means any Return with respect to a Combined Tax.

     

    “Controlling
      Party”
      means, except as provided for in Section 4.06 hereof, Distributing or any other
      member of the Distributing Group, or Tronox or any other member of the Tronox
      Group, as the case may be, that filed or, if no Return has been filed, was
      required to file, a Return that is subject to a Tax Contest, or any successor
      and/or assign of any of the foregoing, provided
      that
      any Combined Tax Return filed by Kerr-McGee Worldwide Corporation with a Taxing
      Authority in Mississippi shall be deemed to be a Return filed by Tronox and
      therefore Tronox shall be the Controlling Party with respect to any Tax Contest
      related to any such Return. For the avoidance of doubt, with the exception
      of
      Returns filed in Mississippi and subject to Section 4.06 hereof, the company
      that actually filed any Federal Tax Return or Combined Tax Return (or any
      successor or assign of such company) shall be the Controlling
      Party.

     

    
      
        
        

      

      
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    “Credit
      Facility”
      means the Credit Agreement dated as of November 28, 2005 among Tronox, Tronox
      Worldwide LLC, Lehman Brothers Inc., Credit Suisse, ABN AMRO N.V., JPMorgan
      Chase Bank, N.A., Citicorp North America Inc. and the lenders that are parties
      thereto.

     

    “Deconsolidation
      Date”
      means, for purposes of this Agreement, the last date on which Distributing
      and
      Tronox are permitted to file Returns on a consolidated or combined basis,
      determined on a Tax jurisdiction by Tax jurisdiction basis.

     

    “Distributing
      Business”
      means the businesses conducted by Distributing and its subsidiaries other than
      the Tronox Business.

     

    “Distributing
      Consolidated Group”
      means Distributing and each direct and indirect subsidiary, including members
      of
      the Tronox Group, that is eligible to join Distributing or any other member
      of
      the Distributing Group in the filing of a consolidated Federal Tax Return or
      a
      Combined Tax Return.

     

    “Distributing
      Group”
      means, at any time, Distributing and each of its direct and indirect
      subsidiaries other than those subsidiaries that are members of the Tronox
      Group.

     

    “Distributing
      Tax Adjustment”means,
      with respect to any taxable period or portion thereof, and as computed
      separately for each Tax, the net increase in each such Tax equal to the sum
      of
      all adjustments made pursuant to a Final Determination after the Deconsolidation
      Date with respect to each such Tax for each such taxable period or portion
      thereof that are attributable to the Distributing Business; provided,
      however,
      that any adjustment comprising a Restructuring Adjustment shall not be
      considered in determining the amount of any Distributing Tax
      Adjustment. 

     

    “Distributing
      Tax Benefit”means,
      with respect to any taxable period or portion thereof, and as computed
      separately for each Federal Tax and Combined Tax, the net decrease in each
      Tax
      equal to the sum of all adjustments made pursuant to a Final Determination
      after
      the Deconsolidation Date with respect to each such Tax for each such taxable
      period or portion thereof that are attributable to the Distributing Business;
      provided,
      however,
      that the amount of any Distributing Tax Benefit shall not exceed the amount
      that
      the actual Tax liability for the Tronox Group for the relevant taxable period
      is
      actually reduced by the adjustments made pursuant to such Final Determination;
      provided further, however,
      that any adjustment comprising a Restructuring Adjustment shall not be
      considered in determining the amount of any Distributing Tax
      Benefit.
      For purposes of the foregoing, if an adjustment that would otherwise constitute
      a Distributing Tax Benefit is not considered a Distributing Tax Benefit because
      the Tax liability of the Tronox Group is not actually reduced as a result of
      such adjustment, such adjustment shall be carried-forward and shall constitute
      a
      Distributing Tax Benefit at the time (and to the extent) that the Tax liability
      of the Tronox Group is actually reduced as a result of such prior adjustment.
      For purposes of determining when an adjustment described in the preceding
      sentence actually reduces the Tax liability of the Tronox Group, the Tronox
      Group shall be deemed to use all Tax Assets of the Tronox Group prior to such
      adjustment.

     

    
      
        
        

      

      
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    “Distribution
      Date”
      means the date on which the Distribution is effected.

     

    “Federal
      Tax”
      means any Tax imposed under Subtitle A of the Code with respect to which any
      member of the Tronox Group has filed or will file a consolidated Return with
      a
      member of the Distributing Group.

     

    “Federal
      Tax Return”
      means any Return with respect to a Federal Tax.

     

    “Final
      Determination”
      means (i) a decision, judgment, decree or other order by any court of competent
      jurisdiction, which has become final and is either no longer subject to appeal
      or for which a determination not to appeal has been made, (ii) a closing
      agreement made under Section 7121 of the Code or any comparable provision of
      state, local or foreign law, (iii) a final disposition by any Taxing Authority
      of a claim for refund or (iv) any other written agreement relating to an
      adjustment between any Taxing Authority and any Controlling Party the execution
      of which is final and prohibits such Taxing Authority or the Controlling Party
      from seeking any further legal or administrative remedies with respect to such
      adjustment.

     

    “Group”
      means the Distributing Group or the Tronox Group, as the context
      requires.

     

    “Independent
      Third Party”
      means a nationally recognized law firm or any of the following firms or their
      successors: Ernst & Young, KPMG, Deloitte & Touche and
      PricewaterhouseCoopers.

     

    “Interested
      Party”
      means, except as provided in Section 4.06 hereof, Distributing or Tronox
      (including any successor and/or assign of any of the foregoing), as the case
      may
      be, to the extent (i) such person or a member of such person’s Group is not a
      Controlling Party with respect to a Tax Contest and (ii) such person or a member
      of such person’s Group (A) may be liable for, or required to make, any indemnity
      payment, reimbursement, tax sharing payment or other payment pursuant to this
      Agreement with respect to such Tax Contest or (B) may be entitled to receive
      any
      indemnity payment, reimbursement, tax sharing payment or other payment pursuant
      to this Agreement with respect to such Tax Contest.

     

    “Master
      Separation Agreement”means
      the Master Separation Agreement, dated as of November 28, 2005, among
      Distributing, Kerr-McGee Worldwide Corporation and Tronox.

     

    “Post-Deconsolidation
      Period”
      shall mean (i) a taxable period that begins after the Deconsolidation Date
      and
      (ii) the portion beginning after the Deconsolidation Date of any taxable period
      that includes (but does not end on) the Deconsolidation Date.

     

    “Pre-Deconsolidation
      Period”
      means (i) any taxable period that ends on or before the close of the
      Deconsolidation Date and (ii) the portion ending on the close of the
      Deconsolidation Date of any taxable period that includes (but does not end
      on)
      the Deconsolidation Date.

     

    “Restructuring
      Adjustment”
      means, with respect to any taxable period or portion thereof, and as computed
      separately for each Tax, the net increase in each such Tax equal to the sum
      of
      all adjustments made pursuant to a Final Determination with respect to each
      such
      Tax for each such taxable period or portion thereof that are attributable to
      any
      Restructuring Transaction. 

     

    
      
        
        

      

      
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    “Restructuring
      Transaction”
      means any transaction undertaken to effectuate the separation of Distributing’s
      existing businesses into two independent businesses other than (i) the
      Distribution, (ii) the IPO and (iii) the entering into of the Credit Facility,
      including any pledges of collateral thereunder.

     

    “Restructuring
      Tax”
      means any Tax incurred as a result of any Restructuring Transaction which in
      the
      judgment of the parties is currently required to be taken into account in
      determining the tax liability of any member of the Distributing Group or Tronox
      Group for any Pre-Deconsolidation Period.

     

    “Return”
      means any report of Taxes due, any claims for refund of Taxes paid, any
      information return with respect to Taxes, or any other similar report,
      statement, declaration, or document required to be filed under the Code or
      other
      Tax Law, including any attachments, exhibits, or other materials submitted
      with
      any of the foregoing, and including any amendments or supplements to any of
      the
      foregoing.

     

    “Tax”
      means any income, gross income, gross receipts, profits, capital, capital stock,
      franchise, withholding, payroll, social security, workers compensation,
      unemployment, disability, real property, property, ad valorem, stamp, excise,
      severance, occupation, service, sales, use, license, lease, transfer, import,
      export, value added, alternative minimum, estimated or other similar tax
      (including any fee, assessment, or other charge in the nature of or in lieu
      of
      any tax) imposed by any governmental entity or political subdivision thereof,
      and any interest, penalties, additions to tax, or additional amounts in respect
      of the foregoing.

     

    “Tax
      Asset”
      means any net operating loss, net capital loss, investment tax credit, foreign
      tax credit, charitable deduction or any other loss, credit or tax attribute
      that
      could be carried forward or back to reduce any Tax liability (including, without
      limitation, deductions and credits relating to alternative minimum
      taxes).

     

    “Taxing
      Authority”
      means, with respect to any Tax, the governmental entity or political subdivision
      thereof that imposes such Tax, and the agency (if any) charged with the
      collection of such Tax for such entity or subdivision.

     

    “Tax
      Contest”
      means an audit, review, examination, assessment, deficiency or any other
      administrative or judicial proceeding with the purpose or effect of
      redetermining any Taxes (including any administrative or judicial review of
      any
      claim for refund).

     

    “Tax
      Packages”
      mean one or more packages of information that are (i) reasonably necessary
      for
      the purpose of preparing Returns of the Distributing Consolidated Group with
      respect to any tax period in which the information is relevant, and (ii)
      completed in all material respects in accordance with the standards that
      Distributing has established for its subsidiaries.

     

    “Tiwest
      JV Entities”
      means the Tiwest Joint Venture, Tiwest Sales Pty. Ltd. and Tiwest Pty.
      Ltd.

     

    
      
        
        

      

      
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    “Transition
      Services Agreement”
      means the Transition Services Agreement, dated as of November 28, 2005, among
      Distributing, Kerr-McGee Worldwide Corporation and Tronox.

     

    “Tronox
      Business”
      means the business of producing and marketing inorganic industrial chemicals
      (including titanium dioxide pigment) and heavy minerals conducted by the Tronox
      Group, together with the businesses previously conducted by members of the
      Tronox Group.

     

    “Tronox
      Combined Tax Liability”
      means, with respect to any taxable year, except with respect to any Combined
      Tax
      Return filed in a Combined Add-Up State (as defined below) an amount determined,
      on a Combined Tax Return by Combined Tax Return basis, by dividing the total
      Combined Tax liability reflected on such Return into two segments in proportion
      to the Distributing Group’s and the Tronox Group’s relative contribution, if
      any, to the apportionment factor relevant to such Combined Tax liability. For
      purposes of the foregoing, the Distributing Group’s and the Tronox Group’s
      relative contribution, if any, to an apportionment factor shall be determined
      by
      Distributing in good faith and in a manner consistent with the past practices
      of
      Distributing and Tronox that have been used in determining apportionment
      factors. In the case of any jurisdiction in which Combined Taxes are calculated
      by first determining the taxable income (or loss) of each member of the combined
      group and then adding each separate company calculation to determine the group’s
      total Combined Tax liability (a “Combined Add-Up State”), the amount of the
      Tronox Combined Tax Liability with respect to such jurisdiction shall be
      calculated based on the product of the Tronox Group’s income or loss and the
      separate apportionment factors (property, payroll and sales) for each member
      of
      the Tronox Group, unless such amount is determined pursuant to another
      allocation method mandated by a specific jurisdiction. For purposes of the
      preceding sentence, the apportionment factors shall be determined for each
      taxable period.

     

    “Tronox
      Federal Tax Liability”
      means, with respect to any taxable year, the sum of the Tronox Group’s Federal
      Tax liability and any interest, penalties and other additions to Tax for such
      taxable year, computed as if the Tronox Group were not and never were part
      of
      the Distributing Consolidated Group, but rather were a separate affiliated
      group
      of corporations filing a consolidated United States federal income tax return
      pursuant to Section 1501 of the Code; provided,
      however,
      that transactions between members of the Tronox Group and members of the
      Distributing Group shall, so long as Tronox is a member of the Distributing
      Consolidated Group, be reflected in accordance with the consolidated return
      regulations governing intercompany transactions. Such computation shall be
      made
      (i) without regard to the income, deductions (including net operating loss
      and
      capital loss deductions) and credits in any year of any member of the
      Distributing Group, (ii) by taking into account any Tax Asset of the Tronox
      Group, (iii) with regard to net operating loss and capital loss carryforwards
      and carrybacks and minimum tax credits from earlier years of the Tronox Group,
      but without regard to any such carryforwards from a Tax period (or portion
      thereof) ending on or before the date hereof and arising solely due to treating
      the Tronox Group as if it were never part of the Distributing Consolidated
      Group, (iv) as though the highest rate of tax specified in Section 11(b) of
      the
      Code were the only rate set forth in that section of the Code, (v) reflecting
      positions, elections and accounting methods used by Distributing in preparing
      the relevant Federal Tax Return for the Distributing Consolidated Group and
      (vi)
      as though Tronox Worldwide LLC were a corporation rather than a disregarded
      entity for all taxable periods. For purposes of the foregoing, the Tronox
      Federal Tax Liability shall not include any Restructuring Taxes.

     

    
      
        
        

      

      
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    “Tronox
      Group”
      means (i) prior to the Contribution, (A) Tronox Worldwide LLC and each of its
      direct and indirect subsidiaries, (B) KM (Luxembourg) Holdings Sarl and its
      direct and indirect subsidiaries, (C) Kerr-McGee B.V. and its subsidiary, (D)
      Kerr-McGee Finance (Curacao) N.V., (E) KM Denmark International ApS and its
      direct and indirect subsidiaries and (F) the Tiwest JV Entities and (ii) after
      the Contribution, Tronox and each of its direct and indirect subsidiaries and
      the Tiwest JV Entities. 

     

    “Tronox
      Tax Adjustment”
      means, with respect to any taxable period or portion thereof, and as computed
      separately for each Tax, the net increase in each such Tax equal to the sum
      of
      all adjustments made pursuant to a Final Determination after the Deconsolidation
      Date with respect to each such Tax for each such taxable period or portion
      thereof that are attributable to the Tronox Business; provided,
      however,
      that any adjustment comprising a Restructuring Adjustment shall not be
      considered in determining the amount of any Tronox Tax Adjustment. 

     

    “Tronox
      Tax Benefit”
      means, with respect to any taxable period or portion thereof, and as computed
      separately for each Federal Tax and Combined Tax, the net decrease in each
      such
      Tax equal to the sum of all adjustments made pursuant to a Final Determination
      after the Deconsolidation Date with respect to each such Tax for each such
      taxable period or portion thereof that are attributable to the Tronox Business;
      provided,
      however,
      that the amount of any Tronox Tax Benefit shall not exceed the amount that
      the
      actual Tax liability for the Distributing Consolidated Group for the relevant
      taxable period is actually reduced by the adjustments made pursuant to such
      Final Determination; provided further,
      however,
      that any adjustment comprising a Restructuring Adjustment shall not be
      considered in determining the amount of any Tronox Tax Benefit. For purposes
      of
      the foregoing, if an adjustment that would otherwise constitute a Tronox Tax
      Benefit is not considered a Tronox Tax Benefit because the Tax liability of
      the
      Distributing Consolidated Group is not actually reduced as a result of such
      adjustment, such adjustment shall be carried-forward and shall constitute a
      Tronox Tax Benefit at the time (and to the extent) that the Tax liability of
      the
      Distributing Consolidated Group is actually reduced as a result of such prior
      adjustment. For purposes of determining when an adjustment described in the
      preceding sentence actually reduces the Tax liability of the Distributing
      Consolidated Group, the Distributing Consolidated Group shall be deemed to
      use
      all Tax Assets of the Distributing Group prior to such adjustment.

     

    ARTICLE II

     

    ADMINISTRATIVE
      AND COMPLIANCE MATTERS

     

    SECTION 2.01  Sole
      Tax Sharing Agreement.
      Any and all existing tax sharing agreements or arrangements, written or
      unwritten, between any member of the Distributing Group and any member of the
      Tronox Group shall be terminated as of the date of this Agreement. As of the
      date of this Agreement, neither the members of the Distributing Group nor the
      members of the Tronox Group shall have any further rights or liabilities under
      any such pre-existing tax sharing agreement or arrangement, and this Agreement
      shall be the sole tax sharing agreement or arrangement between the members
      of
      the Distributing Group and the members of the Tronox Group.

     

    
      
        
        

      

      
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    SECTION 2.02  Designation
      as Agent.
      Each member of the Tronox Group hereby irrevocably authorizes and designates
      Distributing as its agent, coordinator and administrator for the purpose of
      taking any and all actions (including the execution of waivers of applicable
      statutes of limitations) necessary or incidental to (i) the filing of any
      Federal Tax or Combined Tax Return (including any amended Return), (ii) the
      claiming of any refund, credit or offset of Federal Tax or Combined Tax (even
      where an item or Tax Asset giving rise to any such refund, credit or offset
      arises in a Post-Deconsolidation Period), (iii) the control of any proceeding
      and (iv) the making of any payments to, or collecting refunds from, any Taxing
      Authority, in each case relating only to Federal Taxes or Combined Tax for
      any
      Pre-Deconsolidation Period. Distributing covenants to Tronox that it shall
      be
      responsible to see that all such administrative matters relating thereto shall
      be handled promptly and appropriately. 

     

    
      	SECTION 2.03  	
              Pre-Deconsolidation
                Period Returns

            

    

     

    a)  Preparation
      of Returns.
      Distributing shall prepare, in accordance with applicable law, the Federal
      Tax
      Return and Combined Tax Returns of the Distributing Consolidated Group for
      all
      Pre-Deconsolidation Periods. Distributing shall have the right with respect
      to
      such Returns to determine (i) the manner in which such Returns shall be prepared
      and filed, including, without limitation, the manner in which any item of
      income, gain, loss, deduction or credit shall be reported, (ii) whether any
      extensions should be requested and (iii) the elections that will be made by
      any
      member of the Distributing Group or the Tronox Group. Distributing shall consult
      with representatives of Tronox in exercising its rights set forth in the
      preceding sentence. Any Return with respect to a Pre-Deconsolidation Period,
      other than the Federal Tax Return and Combined Tax Returns, shall be prepared
      by
      the party required to file such Return under applicable law.

     

    b)  Delivery
      of Tax Packages.
      No later than July 15, 2006, Tronox shall prepare and deliver to Distributing
      Tax Packages that include information of the Tronox Group for any taxable period
      in which a member of the Tronox Group files Federal Tax Returns or Combined
      Tax
      Returns with a member of the Distributing Group, provided
      that if any Combined Tax Return is required to be filed (taking into account
      available extensions) on or prior to September 15, 2006, Tronox shall prepare
      and deliver Tax Packages to Distributing no later than 60 days prior to the
      due
      date for filing such Return.

     

    c)  Allocation.
      Distributing may, at its option, elect and Tronox shall join Distributing (if
      necessary) in electing to ratably allocate items (other than extraordinary
      items) of the Tronox Group in accordance with the relevant provisions of
      Treasury Regulation Section 1.1502-76 and any comparable provision of state,
      local or foreign law. If Distributing exercises its option to make such an
      election, each member of the Tronox Group shall provide a statement stating
      its
      consent to such election as required under applicable regulations.

     

    d)  Post-Deconsolidation
      Period Returns of the Tronox Group.
      Subject to the provisions of the Transition Services Agreement, Tronox shall
      be
      solely responsible for the preparation and filing of the Returns of the Tronox
      Group for all Post-Deconsolidation Periods that begin after the Deconsolidation
      Date.

     

    
      
        
        

      

      
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    SECTION 2.04  Cooperation
      and exchange of information.
      In addition to Tronox’s obligation pursuant to Section 2.03(b) hereof,
      Distributing, on the one hand, and Tronox, on the other, will provide each
      other
      with such cooperation and information as either of them reasonably may request
      of the other in (i) filing any Return, amended return or claim for refund,
      (ii)
      determining a liability for Taxes or a right to a refund of Taxes or (iii)
      participating in or conducting any audit or other proceeding in respect of
      Taxes. Such cooperation and information shall include providing copies of
      relevant Returns or portions thereof, together with accompanying schedules
      and
      related work papers and documents relating to rulings or other determinations
      by
      Tax Authorities. Each party shall make its employees available on a mutually
      convenient basis to provide explanations of any documents or information
      provided hereunder. Any information obtained under this Section 2.04 shall
      be kept confidential, except as may be otherwise necessary in connection with
      the filing of returns or claims for refund or in conducting an audit or other
      proceeding. Distributing shall retain
      (or cause to be retained) all books and records with respect to Tax matters
      pertinent to any member of the Tronox Group relating to any Pre-Deconsolidation
      Period until the expiration of the relevant statutory period of limitations
      for
      the assessment of Tax, provided that Distributing shall consult with Tronox
      prior to destroying any such books and records and shall offer Tronox the
      opportunity to retain any such books and records after such date.

     

    ARTICLE III

     

    TAX
      SHARING

     
SECTION
    3.01     
Intentionally Omitted.

     

    SECTION 3.02  Tax
      Sharing.
      

     

    a)  Deconsolidation
      Payment.
      On
      or prior to the Deconsolidation Date, an intercompany payable shall be owed
      by
      Tronox to Distributing (the “Intercompany Estimated Tax Payable”) in an amount
      equal to the sum of the Tronox Federal Tax Liability and the Tronox Combined
      Tax
      Liability for the portion of any taxable period that includes but does not,
      with
      respect to Distributing or any other member of the Distributing Group, end
      on
      the Deconsolidation Date, in both cases as estimated by Distributing in its
      sole, good-faith discretion. The Intercompany Estimated Tax Payable shall be
      subject to the treatment of intercompany obligations provided for pursuant
      to
      Section 2.4(b) of the Master Separation Agreement.

     

    b)  Pro
      Forma Returns.
      On the date that is five (5) business days prior to the due date for the
      Distributing Consolidated Group’s 2005 consolidated federal income tax return,
      including extensions, Distributing shall deliver to Tronox a pro forma federal
      income tax return (the “2005 Pro Forma Federal Tax Return”) of the Tronox Group
      reflecting the Tronox Federal Tax Liability for the portion of such taxable
      year
      in which members of the Tronox Group were included in the Distributing
      Consolidated Group. On the date that is five (5) business days prior to the
      due
      date for each Combined Tax Return, including extensions, for any taxable period
      that includes, but does not, with respect to Distributing or any member of
      the
      Distributing Group, end on the Deconsolidation Date, Distributing shall deliver
      to Tronox the relevant pro forma Combined Tax Return (each a “Pro Forma Combined
      Tax Return” and together with the 2005 Pro Forma Federal Tax Return, the “Pro
      Forma Returns”) of the Tronox Group reflecting the relevant Tronox Combined Tax
      Liability for the portion of such taxable period in which members of the Tronox
      Group were included in the Distributing Consolidated Group with respect to
      such
      Combined Tax. Distributing shall prepare the Pro Forma Returns taking into
      account elections, methods of accounting and positions with respect to specific
      items that are consistent with those to be made by Distributing for purposes
      of
      the Federal Tax Returns and Combined Tax Returns.

     

    
      
        
        

      

      
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    c)  True-Up
      Payment.
      On or before the later of (i) the date Distributing (or whichever member of
      the
      Distributing Group or the Tronox Group is responsible for filing such Return,
      if
      not Distributing) files its last Combined Tax Return for each taxable period
      that includes but, with respect to Distributing or any other member of the
      Distributing Group, does not end on the Deconsolidation Date or (ii) the date
      Distributing files its Federal Tax Return for the 2005 taxable year, Tronox
      shall pay to Distributing, or Distributing shall pay to Tronox, as appropriate,
      an amount equal to the difference, if any, between (A) the aggregate of the
      Tronox Federal Tax Liability and the Tronox Combined Tax Liabilities reflected
      on the Pro Forma Returns and (B) the amount of the Intercompany Estimated Tax
      Payable. 

     

    d)  Tax
      Assets.
      If a Pro Forma Return reflects a Tax Asset of a member of the Tronox Group
      that
      may under applicable law be used to reduce a Federal Tax or a Combined Tax
      of
      the Distributing Group for any Pre-Deconsolidation Period, Distributing shall
      pay to Tronox an amount equal to the actual Tax savings produced by such Tronox
      Group Tax Asset at the time such Tax savings is realized by the Distributing
      Group. The amount of any such Tax savings shall be an amount of any refund
      actually received from a Taxing Authority or the reduction in Taxes payable
      to a
      Taxing Authority as compared to the Taxes that would have been payable to a
      Taxing Authority in the absence of such Tronox Group Tax Asset.

     

    SECTION
      3.03    Audit Payments.

     

    a)  Except
      as provided in Section 3.03(c) hereof, Tronox shall be liable for, and shall
      indemnify and hold harmless any member of the Distributing Group against, any
      and all Tronox Tax Adjustments for any Pre-Deconsolidation Period with respect
      to any Return of any member of the Distributing Group or the Tronox Group.
      Except as provided in Section 3.03(c) hereof, Tronox shall be entitled to
      receive, and shall be paid by Distributing, the amount of any Tronox Tax Benefit
      for any Pre-Deconsolidation Period with respect to any Return of any member
      of
      the Distributing Group.

     

    b)  Distributing
      shall be liable for, and shall indemnify and hold harmless any member of the
      Tronox Group against, any and all Distributing Tax Adjustments for any
      Pre-Deconsolidation Period with respect to any Return of any member of the
      Distributing Group or the Tronox Group. Distributing shall be entitled to
      receive, and shall be paid by Tronox, the amount of any Distributing Tax
      Benefits for any Pre-Deconsolidation Period with respect to any Return of any
      member of the Tronox Group.

     

    c)  Notwithstanding
      Section 3.03(a) hereof, Distributing shall be liable for, and shall indemnify
      and hold harmless any member of the Tronox Group against, any and all Claims
      Court Related Tax Adjustments. Notwithstanding Section 3.03(a) hereof,
      Distributing shall be entitled to receive, and, to the extent reflected on
      any
      Return of any member of the Tronox Group, shall be paid by Tronox, the amount
      of
      any Claims Court Related Tax Benefits. For purposes of the preceding sentence
      as
      it applies to a Claims Court Related Tax Benefit described in clause (ii) of
      the
      definition thereof, Tronox and the other members of the Tronox Group shall
      be
      deemed to use all other deductions, amortizations, exclusions from income or
      other allowances (to the extent that such deductions, amortizations, exclusions
      from income or other allowances are entitled to be used under applicable law)
      prior to the use of any Claims Court Related Tax Benefit in respect of which
      Tronox is required to pay Distributing hereunder.

     

    
      
        
        

      

      
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    d)  Notwithstanding
      anything herein to the contrary, for purposes of this Section 3.03, in the
      case
      of an adjustment for any Pre-Deconsolidation Period relating to any state or
      local income or franchise Tax that is filed on a Combined Return (other than
      any
      Combined Tax Return filed in a Combined Add-Up State), the amount of any Tronox
      Tax Adjustment, Tronox Tax Benefit, Distributing Tax Adjustment or Distributing
      Tax Benefit shall be determined on a Combined Return-by-Combined Return basis
      as
      follows:

     

    
      	(i)  	
              Audit
                adjustments resulting in a net increase or net decrease in Tax liability
                (a “Tax Adjustment” or “Tax Benefit” respectively) shall be divided into
                two segments in proportion to the Distributing Group’s and the Tronox
                Group’s relative contribution, if any, to the apportionment factor
                relevant to such Tax Adjustment or Tax Benefit, as the case may be,
                with
                each such segment referred to as the “Distributing segment” and the
                “Tronox segment” for purposes of this Section 3.03(d). For purposes of
                this Section 3.03(d), each of the Distributing Group’s and the Tronox
                Group’s relative contribution, if any, to an apportionment factor shall
                be
                determined (by Distributing in good faith) (A) in a manner consistent
                with
                the past practices of Distributing and Tronox that have been used
                in
                determining apportionment factors and (B) by taking into account
                and
                giving effect to all adjustments reflected in a Final Determination
                with
                respect to the relevant state or local income or franchise Tax for
                the
                taxable period or portion thereof that is at issue. Accordingly,
                the
                apportionment factor allocation methodology will be applied to the
                Net Tax
                Liability Payable or Net Tax Refund Receivable (as defined below)
                in
                determining the total amount of the Distributing segment and the
                Tronox
                segment. For purposes of the preceding sentence, “Net Tax Liability
                Payable” or “Net Tax Refund Receivable” shall mean the amount specified in
                the Final Determination issued by the applicable state or local Taxing
                Authority after both giving effect to utilization of tax credits
                and net
                operating losses and taking into account any adjustments to apportionment
                factors, federal taxable income and state modifications to federal
                taxable
                income. In the event that the Final Determination reflects both
                adjustments to the overall apportionment factor and to state taxable
                income, the Distributing Group’s and the Tronox Group’s respective share,
                if any, of the Net Tax Liability Payable or Net Tax Refund Receivable
                shall be calculated as follows: (I) first, by taking the revised
                state Tax
                liability as reflected in the Final Determination (i.e., the state
                tax
                liability as originally filed (including any prior revisions) modified
                by
                all of the adjustments reflected in the Final Determination) and
                multiplying it by the respective Distributing Group’s and Tronox Group’s
                share of the overall apportionment factor as revised per such Final
                Determination in order to determine the Distributing Group’s and the
                Tronox Group’s revised share of the state Tax liability (for purposes of
                this calculation, the Distributing Group’s and the Tronox Group’s share of
                the revised overall apportionment factor will be a percentage determined
                by dividing each Group’s revised individual factor by the revised overall
                apportionment factor); (II) second, by taking the state Tax liability
                prior to revision by the Final Determination and multiplying it by
                the
                respective Distributing Group’s and Tronox Group’s share of the overall
                apportionment factor prior to revision by such Final Determination
                in
                order to determine the Distributing Group’s and the Tronox Group’s share
                of the state Tax liability prior to the revisions made by such Final
                Determination (for purposes of this calculation, the Distributing
                Group’s
                and the Tronox Group’s share of the overall apportionment factor prior to
                its revision by the Final Determination will be a percentage determined
                by
                dividing each Group’s individual factor prior to the Final Determination
                by the overall apportionment factor prior to its revision by the
                Final
                Determination); and (III) third, the difference between items (I)
                and (II)
                shall constitute the Distributing Group’s and/or the Tronox Group’s share
                of the Net Tax Liability Payable or the Net Tax Refund Receivable
                resulting from the adjustments made pursuant to the Final Determination
                (and thus determine the relative amounts of the Distributing segment
                or
                the Tronox segment).

            

    

     

    
      
        
        

      

      
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      	(ii)  	
              The
                Tronox Tax Adjustment or Tronox Tax Benefit shall be equal to the
                amount
                of the Tronox segment.

            

    

     

    
      	(iii)  	
              The
                Distributing Tax Adjustment or Distributing Tax Benefit shall be
                equal to
                the amount of the Distributing
                segment.

            

    

     

    SECTION 3.04  Restructuring
      Taxes and Adjustments
      The Distributing Group shall be liable for 100% of any Restructuring Tax and
      any
      Restructuring Adjustment provided that the Distributing Group’s aggregate
      liability for such Restructuring Taxes and Restructuring Adjustments shall
      not
      exceed $17 million (after which the Tronox Group shall be liable for 100% of
      any
      Restructuring Tax and Restructuring Adjustment). If Tronox or another member
      of
      the Tronox Group is required under applicable law to pay any Restructuring
      Tax
      or Restructuring Adjustment which is the liability of the Distributing Group
      pursuant to this Section 3.04, Tronox shall, upon written notice to
      Distributing, be entitled to a payment equal to the portion of such
      Restructuring Tax or Restructuring Adjustment paid by Tronox or other member
      of
      the Tronox Group to the applicable Taxing Authority that is the liability of
      the
      Distributing Group pursuant to this Section 3.04. If Distributing or another
      member of the Distributing Group is required under applicable law to pay any
      Restructuring Tax or Restructuring Adjustment which is the liability of the
      Tronox Group pursuant to this Section 3.04, Distributing shall, upon written
      notice to Tronox, be entitled to a payment equal to the portion of such
      Restructuring Tax or Restructuring Adjustment paid by Distributing or other
      member of the Distributing Group to the applicable Taxing Authority that is
      the
      liability of the Tronox Group pursuant to this Section 3.04.

     

    SECTION 3.05  Non-Income
      Taxes.
      In the case of any Return related to Taxes (other than income or franchise
      Taxes) in which one or more members of the Distributing Group file with one
      or
      members of the Tronox Group (each such Return, a “Joint Return”) with respect to
      a Pre-Deconsolidation Period, the Distributing Group shall be liable for the
      Taxes reflected on any such Joint Return attributable to the Distributing
      Business and the Tronox Group shall be liable for the Taxes reflected on such
      Joint Returns attributable to the Tronox Business. In the event that the portion
      of such Taxes attributable to a particular business cannot be determined, then
      the Distributing Group shall be liable for such Taxes.

     

    
      
        
        

      

      
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    SECTION 3.06  Deductions
      Related to Options and Restricted Stock.
      For any and all taxable years ending on or after the Deconsolidation Date,
      Tronox shall pay to Distributing the “deemed tax benefit” attributable to all
      deductions Tronox is entitled to claim after the Deconsolidation Date in respect
      of exercises of compensatory stock options to acquire Distributing stock and
      the
      vesting of Distributing restricted stock (or dividends paid on Distributing
      restricted stock), in each case that are held by employees (or former employees)
      of any member of the Tronox Group. For purposes of the foregoing, the “deemed
      tax benefit” referred to in the previous sentence shall conclusively be the
      total amount of the available deduction for any such exercise or vesting
      multiplied by 36%. Tronox shall pay the “deemed tax benefit” amount to
      Distributing no later than the due date for filing Tronox’s federal income Tax
      Return for the year in which any such deduction is eligible to be claimed on
      such Return.

     

    ARTICLE IV

     

    TAX
      CONTESTS

     

    SECTION 4.01  Notification
      of Tax Contests.
      The Controlling Party shall promptly notify all Interested Parties of (a) the
      commencement of any Tax Contest pursuant to which such Interested Parties may
      be
      required to make or entitled to receive an indemnity payment, reimbursement,
      tax
      sharing payment or other payment pursuant to this Agreement and (b) as required
      and specified in Section 4.04 hereof, any Final Determination made with respect
      to any Tax Contest pursuant to which such Interested Parties may be required
      to
      make, or entitled to receive, any indemnity payment, reimbursement, tax sharing
      payment or other payment pursuant to this Agreement. The failure of a
      Controlling Party to promptly notify any Interested Party as specified in the
      preceding sentence shall not relieve any such Interested Party of any liability
      and/or obligation which it may have to the Controlling Party under this
      Agreement except to the extent that the Interested Party was actually materially
      prejudiced by such failure, and in no event shall such failure relieve the
      Interested Party from any other liability or obligation which it may have to
      the
      Controlling Party.

     

    SECTION 4.02  Tax
      Contest Settlement Rights.
      The Controlling Party shall have the sole right to contest, litigate, compromise
      and settle any adjustment that is made or proposed in a Tax Contest without
      obtaining the prior consent of any Interested Party; provided,
      however,
      that, unless waived by the parties in writing, the Controlling Party shall,
      in
      connection with any proposed or assessed adjustment in a Tax Contest for which
      an Interested Party may be required to make, or entitled to receive, an
      indemnity payment, reimbursement, tax sharing payment or other payment pursuant
      to this Agreement (a) keep all Interested Parties informed in a timely manner
      of
      all actions taken or proposed to be taken by the Controlling Party and (b)
      timely provide all such Interested Parties with copies of any correspondence
      or
      filings submitted to any Taxing Authority or judicial authority, in each case
      in
      connection with any contest, litigation, compromise or settlement relating
      to
      any such adjustment in a Tax Contest. The failure of a Controlling Party to
      take
      any action as specified in the preceding sentence with respect to an Interested
      Party shall not relieve any such Interested Party of any liability and/or
      obligation which it may have to such Controlling Party under this Agreement
      except to the extent that the Interested Party was actually materially
      prejudiced by such failure, and in no event shall such failure relieve the
      Interested Party from any other liability or obligation which it may have to
      such Controlling Party. The Controlling Party may, at its sole discretion,
      take
      into account any suggestions made by an Interested Party with respect to such
      contest, litigation, compromise or settlement of any adjustment in a Tax
      Contest. All costs of any Tax Contest shall be borne by the Controlling Party;
      provided,
      however,
      that (x) any costs related to an Interested Party’s attendance at any meeting
      with a Taxing Authority or hearing or proceeding before any judicial authority
      pursuant to Section 4.03 hereof and (y) the costs of any legal or other
      representatives retained by an Interested Party in connection with any Tax
      Contest that is subject to the provisions of this Agreement shall, in each
      case,
      be borne by such Interested Party.

     

    
      
        
        

      

      
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    SECTION 4.03  Tax
      Contest Participation.
      Unless waived by the parties in writing, the Controlling Party shall provide
      an
      Interested Party with written notice reasonably in advance of, and such
      Interested Party shall have the right to attend, any formally scheduled meetings
      with Taxing Authorities or hearings or proceedings before any judicial
      authorities in connection with any contest, litigation, compromise or settlement
      of any proposed or assessed adjustment that is the subject of any Tax Contest
      pursuant to which such Interested Party may be required to make, or entitled
      to
      receive, an indemnity payment, reimbursement, tax sharing payment or other
      payment pursuant to this Agreement. In addition, unless waived by the parties
      in
      writing, the Controlling Party shall provide each such Interested Party with
      draft copies of any correspondence or filings to be submitted to any Taxing
      Authority or judicial authority with respect to such adjustments for such
      Interested Party’s review and comment. The Controlling Party shall provide such
      draft copies reasonably in advance of the date that they are to be submitted
      to
      the Taxing Authority or judicial authority and the Interested Party shall
      provide comments, if any, with respect thereto within a reasonable time before
      such submission. The failure of a Controlling Party to provide any notice,
      correspondence or filing as specified in this Section 4.03 to an Interested
      Party shall not relieve any such Interested Party of any liability and/or
      obligation which it may have to the Controlling Party under this Agreement
      except to the extent that the Interested Party was actually materially
      prejudiced by such failure, and in no event shall such failure relieve the
      Interested Party from any other liability or obligation which it may have to
      the
      Controlling Party.

     

    SECTION 4.04  Tax
      Contest Waiver.
      

     

    a)  The
      Controlling Party shall promptly provide written notice (the “Controlling Party
      Notice”), sent postage prepaid by United States mail, certified mail, return
      receipt requested, to all Interested Parties in a Tax Contest (i) that a Final
      Determination has been made with respect to such Tax Contest and (ii)
      enumerating the amount of (A) if the Interested Party is Distributing or any
      member of the Distributing Group, the Distributing Tax Adjustment or
      Distributing Tax Benefit or (B) if the Interested Party is Tronox or any member
      of the Tronox Group, the Tronox Tax Adjustment or Tronox Tax Benefit.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    b)  Within
      ninety (90) days after an Interested Party receives the notice described in
      Section 4.04(a) hereof from the Controlling Party, such Interested Party shall
      execute a written statement giving notice to the Controlling Party (i) that
      the
      Interested Party agrees with the computations set forth in the Controlling
      Party
      Notice except with respect to those adjustments computations that, in the good
      faith judgment of the Interested Party, it disagrees with and has specifically
      enumerated its disagreement with, including the amount of such disagreement,
      in
      the statement (each such disagreed computation hereinafter referred to as a
      “Disputed Adjustment”) and (ii) that the Interested Party thereby waives its
      right to a determination by an Independent Third Party pursuant to Section
      4.05
      hereof with respect to all computations to which it agrees with its share (this
      statement referred to as the “Interested Party Notice”). For the avoidance of
      doubt, in the Interested Party Notice, the Interested Party may set forth its
      disagreement with the absolute amount of any adjustment set forth in the
      Controlling Party Notice as well as the amount of any Distributing Tax
      Adjustment, Distributing Tax Benefit, Tronox Tax Adjustment or Tronox Tax
      Benefit contained in the Controlling Party Notice. The failure of an Interested
      Party to provide the Interested Party Notice to the Controlling Party within
      the
      ninety (90) day period specified in the preceding sentence shall be deemed
      to
      conclusively indicate that such Interested Party agrees with the computations
      set forth in the Controlling Party and that such Interested Party waives its
      right to a determination by an Independent Third Party with respect to all
      such
      computations pursuant to Section 4.05 hereof. The Controlling Party or the
      Interested Party, as the case may be, shall pay as specified in Article III
      hereof, the amount, if any, of any Distributing Tax Adjustment, Distributing
      Tax
      Benefit, Tronox Tax Adjustment or Tronox Tax Benefit that is not a Disputed
      Adjustment to the appropriate party.

     

    c)  During
      the ninety (90) day period immediately following the Controlling Party’s receipt
      of the Interested Party Notice, the Controlling Party and the Interested Party
      shall in good faith confer with each other to resolve any disagreement over
      each
      Disputed Adjustment that was specifically enumerated in such Interested Party
      Notice. At the end of such ninety (90) day period, unless otherwise extended
      in
      writing by mutual consent of the parties, the Interested Party shall be deemed
      to agree with all Disputed Adjustments that were specifically enumerated in
      the
      Interested Party Notice and waive its right to a determination by an Independent
      Third Party pursuant to Section 4.05 hereof with respect to all such Disputed
      Adjustments unless, and to the extent that, at any time during such ninety
      (90)
      day (or extended) period, either the Controlling Party or the Interested Party
      has given the other party written notice that it is seeking a determination
      by
      an Independent Third Party pursuant to Section 4.05 hereof regarding the
      propriety of any such Disputed Adjustment. If the Disputed Adjustments are
      not
      referred to an Independent Third Party, then the Controlling Party or the
      Interested Party, as the case may be, shall pay as specified in Article III
      hereof, the amount, if any, of any Distributing Tax Adjustment, Distributing
      Tax
      Benefit, Tronox Tax Adjustment or Tronox Tax Benefit (as adjusted pursuant
      to
      any agreement between the parties reached during the ninety (90) day period
      described in this Section 4.04(c)) to the appropriate party.

     

    SECTION
      4.05     Tax Contest Dispute
      Resolution.

     

    a)  In
      the event that either a Controlling Party or an Interested Party has given
      the
      other party written notice as required under Section 4.04(c) hereof that it
      is
      seeking a determination by an Independent Third Party pursuant to this Section
      4.05 with respect to any Disputed Adjustment that was enumerated in an
      Interested Party Notice, then the parties shall, within ten (10) days after
      a
      party has received such notice, jointly select an Independent Third Party to
      make such determination. In the event that the parties cannot jointly agree
      on
      an Independent Third Party within such ten (10) day period, then the Controlling
      Party and the Interested Party shall each immediately select an Independent
      Third Party and the Independent Third Parties so selected by the parties shall
      jointly select, within ten (10) days of their selection, another Independent
      Third Party.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    b)  In
      making its determination as to the propriety of any Disputed Adjustment, the
      Independent Third Party elected pursuant to Section 4.05(a) hereof shall assume
      that the Interested Party is not required or entitled under applicable law
      to be
      a member of any consolidated return. In addition, the Independent Third Party
      shall make its determination according to the following procedure:

     

    (i)  The
      Independent Third Party shall analyze each Disputed Adjustment for which a
      determination is sought pursuant to this Section 4.05 on a stand-alone basis
      to
      determine whether the actual outcome reached with respect to such Disputed
      Adjustment as reflected in the Final Determination of the Tax Contest was fair
      and appropriate taking into account the following exclusive criteria: (A) the
      facts relating to such adjustment, (B) the applicable law, if any, with respect
      to such adjustment, (C) the position of the applicable Taxing Authority with
      respect to compromise, settlement or litigation of such adjustment, (D) the
      strength of the factual and legal arguments made by the Controlling Party in
      reaching the outcome with respect to such adjustment as reflected in the Final
      Determination of the Tax Contest and (E) the strength of the factual and legal
      arguments being made by the Interested Party for the alternative outcome being
      asserted by such Interested Party (including the availability of fact,
      information and documentation to support such alternative outcome). Based on
      this analysis, the Independent Third Party shall determine what is the fair
      and
      appropriate outcome (hereinafter referred to as the “Ultimate Determination”)
      with respect to each such adjustment.

     

    (ii)  The
      Interested Party shall only be entitled to modification of its share of a
      Disputed Adjustment under this Section 4.05 if either (A) the amount that would
      be paid by the Interested Party under the Ultimate Determination with respect
      to
      such Disputed Adjustment is less than 80% of the amount that would be paid
      by
      the Interested Party with respect to the Disputed Adjustment as set forth in
      the
      Controlling Party Notice or (B) the amount that would be received by the
      Interested Party under the Ultimate Determination with respect to such Disputed
      Adjustment is more than 120% of the amount that the Interested Party would
      receive with respect to such Disputed Adjustment as set forth in the Controlling
      Party Notice. If an Interested Party is entitled to modification of its share
      of
      any Disputed Adjustment under the preceding sentence, the amount the Interested
      Party is entitled to receive, or is required to pay, as the case may be, with
      respect to such Disputed Adjustment shall be equal to the amount of the Ultimate
      Determination of such Disputed Adjustment.

     

    c)  Any
      determination made or notice given by an Independent Third Party pursuant to
      this Section 4.05 shall be (i) in writing, (ii) made within sixty (60) days
      following the selection of the Independent Third Party unless such period is
      otherwise extended by the mutual consent of the parties and (iii) final and
      binding upon the parties. The costs of any Independent Third Party shall be
      borne equally by the parties. The Controlling Party and the Interested Party
      shall provide the Independent Third Party with such information or documentation
      as may be appropriate or necessary in order for such Independent Third Party
      to
      make the determination requested of it. Upon issuance of an Independent Third
      Party’s notice under this Section 4.05, the Controlling Party or the Interested
      Party, as the case may be, shall pay as specified in Article III hereof, the
      amount, if any, of the Distributing Tax Adjustment, Distributing Tax Benefit,
      Tronox Tax Adjustment or Tronox Tax Benefit as a determined pursuant to the
      provisions of this Section 4.05 to the appropriate party.

     

    
      
        
        

      

      
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    SECTION
      4.06     Current
      Litigation

     

    a)  Notwithstanding
      anything in this Article IV or in the definitions of “Controlling Party” and
“Interested Party” to the contrary, Distributing shall be the Controlling Party
      and Tronox shall be an Interested Party with respect to the Claims Court
      Litigation.

     

    b)  Notwithstanding
      anything in this Article IV or in the definitions of “Controlling Party” and
“Interested Party” to the contrary, for any taxable year after 1996 that is part
      of the Pre-Deconsolidation Period, if a Tax Contest involving the same or
      similar factual and legal issues that are at issue in the Claims Court
      Litigation arises, Distributing shall be the Controlling Party and Tronox shall
      be an Interested Party.

     

    SECTION
      4.07   Costs and Expenses.  The
      costs and expenses of a Controlling Party and an Interested Party in controlling
      or participating in ( as applicable) a Tax Contest shall be borne by the party
      incurring such costs and expenses.

     

    ARTICLE V

     

    REPRESENTATIONS
      AND COVENANTS

     

    
      	SECTION 5.01  	
              Representations.

            

    

     

    a)  Tronox
      Representations.
      Tronox and each member of the Tronox Group represent as of the date hereof
      and
      as of the Distribution Date that there is no plan or intention to (i) liquidate,
      merge or consolidate Tronox or to liquidate, merge or consolidate any member
      of
      the Tronox Group conducting an active trade or business relied upon, or to
      be
      relied upon, in connection with the Distribution, with any other person
      subsequent to the Distribution, (ii) sell or otherwise dispose of any assets
      of
      Tronox or any member of the Tronox Group subsequent to the Distribution other
      than in the ordinary course of business, (iii) unify or otherwise reclassify
      or
      recapitalize the two classes of Tronox stock (iv) take any other action
      inconsistent with the information and representations furnished to Covington
      & Burling in connection with the opinion to be delivered by Covington &
Burling with respect to certain federal income tax consequences of the
      Distribution and (v) enter into any negotiations, agreements or arrangements
      with respect to transactions or events (including capital contributions,
      acquisitions or stock issuances, but not including the Distribution or stock
      issuances in connection with the performance of services by any officer,
      director or employee of Tronox or any member of the Tronox Group other than
      any
      officer, director or employee who owns 5% or more of any class of Tronox stock)
      that may cause the Distribution to be treated as part of a plan or series of
      related transactions pursuant to which one or more persons acquire, directly
      or
      indirectly, Tronox stock representing a “50-percent or greater interest” within
      the meaning of Section 355(d)(4) of the Code. For purposes of determining
      whether any transaction may be treated as part of a plan or series of related
      transactions pursuant to which one or more persons acquire, directly or
      indirectly, Tronox stock representing a “50-percent or greater interest” within
      the meaning of Section 355(d)(4) of the Code, Tronox stock issued on the
      Deconsolidation Date (and any other shares of Tronox stock issued in connection
      with the initial public offering of Tronox) shall be aggregated with any Tronox
      stock issued or acquired in connection with any such transaction or events
      together
      with any Tronox stock issued or acquired in connection with all other such
      transactions or events subsequent to the Deconsolidation Date.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    b)  Distributing
      Representations.
      Distributing represents as of the date hereof and as of the Distribution Date
      that there is no plan or intention to take any action inconsistent with the
      information and representations furnished to Covington & Burling in
      connection with the opinion to be delivered by Covington & Burling with
      respect to certain federal income tax consequences of the
      Distribution.

     

    c)  Distributing
      and Tronox Representations.
      Each of Distributing and Tronox respectively represent as of the date hereof
      and
      as of the Distribution Date that neither Distributing nor Tronox respectively
      (as applicable) is aware of any present plan or intention by the current
      shareholders of Distributing to sell, exchange, transfer by gift or otherwise
      dispose of any of their stock or securities in Distributing or Tronox subsequent
      to the Distribution.

     

    
      	SECTION 5.02  	
              Covenants.

            

    

     

    a)  Tronox
      Covenants.
      Tronox covenants to Distributing that (i) from the date herof until the end
      of
      the two-year period following the Distribution Date, neither Tronox nor any
      member of the Tronox Group conducting an active trade or business relied upon
      in
      connection with the Distribution will liquidate, merge or consolidate with
      any
      other person, (ii) from the date hereof until the end of the two-year period
      following the Distribution Date, Tronox LLC shall not (and Tronox shall cause
      Tronox LLC to not) sell, exchange, distribute or otherwise dispose of more
      than
      20% of its assets that were used directly by Tronox LLC on the Distribution
      Date
      in the active conduct of the Tronox Business, (iii) following the
      Deconsolidation Date, Tronox will, for a minimum of two years following the
      Distribution Date, continue the active conduct of the Tronox Business, (iv)
      Tronox will not, nor will it permit any member of the Tronox Group to, take
      any
      action inconsistent with the information and representations furnished to
      Covington & Burling in connection with the opinion to be delivered by
      Covington & Burling with respect to certain federal income tax consequences
      of the Distribution, (v) from the date hereof until the end of the five year
      period following the Distribution, Tronox will not unify or otherwise reclassify
      or recapitalize the two classes of Tronox stock outstanding on the
      Deconsolidation Date and (vi) from the date hereof until the end of the two
      year
      period following the Distribution Date, Tronox will not enter into any
      transaction or make any change in equity structure (including capital
      contributions, acquisitions, redemptions or stock issuances, but not including
      the Distribution or stock issuances in connection with the performance of
      services by any officer, director or employee of Tronox or any member of the
      Tronox Group other than any officer, director or employee who owns 5% or more
      of
      any class of Tronox stock) that may cause the Distribution to be treated as
      part
      of a plan or series of related transactions pursuant to which one or more
      persons acquire, directly or indirectly, Tronox stock representing a “50-percent
      or greater interest” within the meaning of Section 355(d)(4) of the Code at the
      time of such transaction or change in equity structure. For purposes of
      determining whether any transaction may be treated as part of a plan or series
      of related transactions pursuant to which one or more persons acquire, directly
      or indirectly, Tronox stock representing a “50-percent or greater interest”
within the meaning of Section 355(d)(4) of the Code, Tronox stock issued on
      the
      Deconsolidation Date (and any other shares of Tronox stock issued in connection
      with the initial public offering of Tronox) shall be aggregated with any Tronox
      stock issued or acquired in connection with any such transaction or events
      together with any Tronox stock issued or acquired in connection with all other
      such transactions or events subsequent to the Deconsolidation Date.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    b)  Exceptions.
      Notwithstanding the foregoing covenants contained in Section 5.02(a) hereof,
      Tronox shall be permitted to take an action inconsistent with Section 5.02(a),
      if, prior to taking such action, Tronox provides notification to Distributing
      of
      its plans with respect to such action, and promptly responds to any inquiries
      by
      Distributing following such notification, and either:

     

    (i)  Tronox
      obtains a ruling with respect to the action from the Internal Revenue Service
      or
      other applicable Taxing Authority that is reasonably satisfactory to
      Distributing on a basis of facts and representations consistent with the facts
      at the time of such action, that such action will not result in the Distribution
      being taxable to Distributing or its shareholders, or

     

    (ii)  Tronox
      obtains an opinion reasonably acceptable to Distributing of an independent
      nationally recognized tax counsel acceptable to Distributing, on a basis of
      facts and representations consistent with the facts at the time of such action,
      that such action will not result in the Distribution being taxable to
      Distributing or its shareholders

     

    ARTICLE VI

     

    INDEMNITY

     

    SECTION 6.01  Tronox
      Indemnity.
      In addition to any Tax sharing payment required to be made by Tronox or any
      member of the Tronox Group pursuant to the provisions of Article III hereof,
      Tronox and each member of the Tronox Group will jointly and severally indemnify
      Distributing and the members of the Distributing Group against and hold them
      harmless from:

     

    
      	a)  	
              except
                in the case of any Restructuring Tax or Restructuring Adjustment,
                any Tax
                liability of the Tronox Group which relates to a Post-Deconsolidation
                Period;

            

    

     

    
      	b)  	
              in
                the case of a Restructuring Tax or Restructuring Adjustment, any
                Tax which
                is the liability of Tronox Group pursuant to Section 3.04
                hereof;

            

    

     

    c)  any
      Tax or other liability or damage resulting from a breach by Tronox or any member
      of the Tronox Group of any representation or covenant made by Tronox or any
      member of the Tronox Group herein; and

     

    d)  all
      liabilities, costs, expenses (including, without limitation, reasonable expenses
      of investigation and attorney’s fees and expenses), losses, damages,
      assessments, settlements or judgments arising out of or incident to the
      imposition, assessment or assertion of any Tax liability or damage described
      in
      (a), (b) or (c), including those incurred in the contest in good faith in
      appropriate proceeding relating to the imposition, assessment or assertion
      of
      any such Tax, liability or damage.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    SECTION 6.02  Distributing
      Indemnity.
      In addition to any Tax sharing payment required to be made by Distributing
      or
      any member of the Distributing Group pursuant to the provisions of Article
      III
      hereof, Distributing and each member of the Distributing Group will jointly
      and
      severally indemnify Tronox and each member of the Tronox Group against and
      hold
      them harmless from:

     

    a)  except
      in the case of any Restructuring Tax or Restructuring Adjustment, any Tax
      liability of the Distributing Group which relates to a Post-Deconsolidation
      Period and any Tax liability resulting from the Distribution, other than any
      such liabilities described in Section 6.01(a);

     

    b)  in
      the case of a Restructuring Tax or Restructuring Adjustment, any Tax which
      is
      the liability of Distributing Group pursuant to Section 3.04
      hereof;

     

    c)  any
      Tax liability of the Distributing Consolidated Group with respect to a
      Pre-Deconsolidation Period, other than Taxes, including any Tronox Tax
      Adjustments, for which Tronox or any member of the Tronox Group is required
      to
      reimburse Distributing pursuant to the provisions of Article III
      hereof;

     

    d)  any
      Tax, or other liability or damage resulting from a breach by Distributing or
      any
      member of the Distributing Group of any representation or covenant made by
      Distributing herein; and

     

    e)  all
      liabilities, costs, expenses (including, without limitation, reasonable expenses
      of investigation and attorney’s fees and expenses), losses, damages,
      assessments, settlements or judgments arising out of or incident to the
      imposition, assessment or assertion of any Tax liability or damage described
      in
      (a), (b), (c) or (d), including those incurred in the contest in good faith
      in
      appropriate proceeding relating to the imposition, assessment or assertion
      of
      any such Tax, liability or damage.

     

    ARTICLE VII

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION 7.01  Tax
      Characterization of Payments.
      For all Tax purposes, and notwithstanding any other provision of this Agreement,
      to the extent permitted by applicable law, the parties hereto shall treat any
      payment made pursuant to this Agreement as a capital contribution or dividend
      distribution, as the case may be, immediately before the Deconsolidation Date
      and, accordingly, as not includible in the taxable income of the recipient.
      If
      any payment under this Agreement is not permitted to be so treated (because,
      for
      example, the payment relates to an event occurring after the Deconsolidation
      Date) or as a result of a Final Determination it is determined that the receipt
      or accrual of any payment made under this Agreement is taxable to the recipient
      of such payment, the party making the payment shall pay to the recipient an
      amount equal to any increase in the income Taxes of the recipient as a result
      of
      receiving the payment (grossed up to take into account such payment, if
      applicable).

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    SECTION 7.02  Payment.
      All payments to be made hereunder shall be made in immediately available funds.
      Except as otherwise provided, all payments required to be made pursuant to
      this
      Agreement shall be due 30 days after the receipt of notice of such payment
      or,
      where no notice is required, 30 days after the fixing of liability or the
      resolution of a dispute. Payments shall be deemed made when received. Any
      payment that is not made when due shall bear interest at a rate equal to the
      published one-month LIBOR rate plus 2% per annum for each day until
      paid.

     

    SECTION 7.03  Joint
      and Several Liability of Group Members.
      Each member of the Distributing Group shall be jointly and severally liable
      for
      the obligations of each other member of the Distributing Group hereunder. Each
      member of the Tronox Group shall be jointly and severally liable for the
      obligations of each other member of the Tronox Group hereunder. 

     

    SECTION 7.04  Performance.
      Distributing agrees and acknowledges that Distributing shall be responsible
      for
      the performance of the obligations of each member of the Distributing Group
      hereunder applicable to such member. Tronox agrees and acknowledges that Tronox
      shall be responsible for the performance by each member of the Tronox Group
      of
      the obligations hereunder applicable to such member.

     

    SECTION 7.05  Notices.
      All notices or other communications under this Agreement shall be in writing
      (including by telecopy) and shall be deemed to be duly given or made when
      delivered, or, in the case of telecopy, when received, addressed as follows
      or
      to such other address as may be hereafter notified by the respective
      party:

    

      
        	
                To
                  Distributing:

              	
                Kerr-McGee
                  Corporation

                Kerr-McGee
                  Worldwide Corporation

                Kerr-McGee
                  Center

                123
                  Robert S. Kerr Avenue

                Oklahoma
                  City, Oklahoma 73102

                Facsimile: 405-270-3649

                Attention: General
                  Counsel

                 

              
	
                    
                  with
                  a copy to:

              	
                Covington
                  & Burling

                1330
                  Avenue of the Americas

                New
                  York, New York 10019

                Facsimile:
                  212-841-1010

                Attention:
                  Scott F. Smith

                 

              
	
                To
                  Tronox:

              	
                Tronox
                  Incorporated

                123
                  Robert S. Kerr Avenue

                Oklahoma
                  City, Oklahoma 73102

                Facsimile: 405-270-4504

                Attention: Chief
                  Executive Officer

                 

              
	
                    
                  with
                  a copy to:

              	
                Tronox
                  Incorporated

                123
                  Robert S. Kerr Avenue

                Oklahoma
                  City, Oklahoma 73102

                Facsimile:
                  405-270-4101

                Attention:
                  General Counsel

              

      

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	SECTION 7.06  	
              Governing
                Law.

            

    

     

    This
      Agreement shall be governed by the laws applicable to contracts entered into
      and
      to be performed within the State of New York.

     

    
      	SECTION 7.07  	
              Jurisdiction.

            

    

     

    Each
      party agrees to submit itself exclusively to the personal jurisdiction of any
      New York court in the event any dispute arises out of this Agreement or any
      of
      the transactions contemplated by this Agreement and agrees that it will not
      attempt to deny or defeat such personal jurisdiction or venue by motion or
      other
      request for leave from any such New York court. Each party further agrees that
      service of any process, summons, notice or document by U.S. registered mail
      to
      such party’s respective address set forth above shall be effective service of
      process for any action, suit or proceeding in New York with respect to any
      matters to which it has submitted to jurisdiction in this Section
      7.07.

     

    
      	SECTION 7.08  	
              Waiver
                of jury trial.

            

    

     

    Each
      party waives, to the fullest extent permitted by applicable law, any right
      it
      may have to a trial by jury in respect of any dispute arising out of this
      Agreement.

     

    
      	SECTION 7.09  	
              Entire
                Agreement.

            

    

     

    This
      Agreement embodies the entire understanding between the parties relating to
      its
      subject matter and supersedes and terminates all prior agreements and
      understandings among the parties with respect to such matters. No promises,
      covenants or representations of any kind, other than those expressly stated
      herein, have been made to induce any party to enter into this Agreement. This
      Agreement shall not be modified or terminated except by a writing duly signed
      by
      each of the parties hereto, and no waiver of any provisions of this Agreement
      shall be effective unless in a writing duly signed by the party sought to be
      bound. If, and to the extent, the provisions of this Agreement conflict with
      the
      Master Separation Agreement, or any other agreement entered into in connection
      with the Distribution, the provisions of this Agreement shall
      control.

     

    
      	SECTION 7.10  	
              Assignment;
                Binding Effect.

            

    

     

    Except
      as otherwise set forth herein, this Agreement shall be binding upon and inure
      to
      the benefit of the parties hereto and their respective successors and permitted
      assigns; provided,
      however,
      that no party hereto or thereto may assign its respective rights or delegate
      its
      respective obligations under this Agreement without the express prior written
      consent of the other party hereto or thereto (such consent not to be
      unreasonably withheld or delayed).

     

    
      	SECTION 7.11  	
              Counterparts.

            

    

     

    This
      Agreement may be executed in three or more counterparts, each of which shall
      be
      deemed to be an original, but all of which together shall constitute one and
      the
      same.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      	SECTION 7.12  	
              Severability.

            

    

     

    If
      any provision of this Agreement or the application of any such provision to
      any
      person or circumstances shall be held invalid, illegal, or unenforceable in
      any
      respect by a court of competent jurisdiction, such invalidity, illegality,
      or
      unenforceability shall not affect any other provision hereof.

     

    
      	SECTION 7.13  	
              Headings.

            

    

     

    Headings
      of sections in this Agreement are inserted for convenience of reference only
      and
      are not intended to be a part of or to affect the meaning or interpretation
      of
      this Agreement.

     

    
      	SECTION 7.14  	
              Survival.

            

    

     

    Notwithstanding
      anything in this Agreement to the contrary, the provisions of this Agreement
      shall survive until the expiration of the applicable statutes of limitations
      (giving effect to any waiver, mitigation or extension thereof).

     

    

     

    
      
        
          
            

          

        

        
        

      

      
        23

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, each of the parties has caused this Agreement to be executed
      by
      its respective duly authorized officer as of the date first set forth
      above.

     

    
      	 	
              KERR-MCGEE
                CORPORATION

            
	 	 
	 	
              By
                /s/ Robert M. Wohleber

            
	 	
              Name:
                Robert M. Wohleber

            
	 	
              Title:
                Senior Vice President and CFO

            
	 	 
	 	 
	 	
              TRONOX
                INCORPORATED

            
	 	 
	 	
              By
                /s/ Thomas W. Adams

            
	 	
              Name:
                Thomas W. Adams

            
	 	
              Title:
                Chief Executive OfficerExhibit 10.54 2005

    
      
        

      

    

    Exhibit
      10.54

     

    Execution
      Copy

     

    TRANSITION
      SERVICES AGREEMENT (this “Agreement”),
      dated November 28, 2005, among Kerr-McGee Corporation, a Delaware
      corporation (the “Parent”),
      Kerr-McGee Worldwide Corporation, a Delaware corporation (“Worldwide”),
      and Tronox Incorporated, a Delaware corporation (the “Tronox”).

     

    INTRODUCTION

     

    The
      Board of Directors of Parent (the “Board”)
      has determined that it is in the best interests of Parent and its stockholders
      to transfer certain existing businesses of Parent and its subsidiaries to
      Tronox.

     

    In
      order to ensure an orderly transition of the such businesses to Tronox, as
      described in the Master Separation Agreement (as defined below), each party
      desires to provide to the other the services described herein for a transitional
      period.

     

    The
      parties hereby agree as follows:

     

    

    Section 1.                                           
      Definitions.  
      For purposes of this Agreement, the following terms shall have the meanings
      set
      forth or as referenced below:

    

    “Affiliate”
      has the meaning given such term in the Master Separation Agreement.

     

    “Closing
      Date”
      has the meaning given such term in the Master Separation Agreement.

     

    “Governmental
      Authorities”
      has the meaning given such term in the Master Separation Agreement.

     

    “Group”
      means either the Parent Group or the Tronox Group, as the context
      requires.

     

    “Information”
      has the meaning given such term in the Master Separation Agreement.

     

     “Liabilities”
      has the meaning given such term in the Master Separation Agreement.

     

     “Master
      Separation Agreement”
      means the Master Separation Agreement, dated as of the date hereof, by and
      among
      Kerr-McGee Corporation, Kerr-McGee Worldwide Corporation and Tronox
      Incorporated.

     

    “Providing
      Party”
      means, with respect to any Service, the party providing such
      Service.

     

    “Parent
      Group”
      has the meaning given such term in the Master Separation Agreement.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Receiving
      Party”
      means, with respect to any Service, the party receiving such
      Service.

     

    “Separation”
      means, with respect to any Service, the separation, duplication, installation
      or
      substitution of the subject matter of such Service as utilized by the Receiving
      Party as of the Closing Date (unless another date is expressly provided for
      with
      respect to a particular Service), such that the Receiving Party is reasonably
      able to provide for itself or through alternative service providers the benefits
      of such subject matter in a sustainable manner substantially similar to that
      provided to, or on behalf of, the Receiving Party as of the Closing Date (unless
      another date is expressly provided for with respect to a particular
      Service).

     

    “Service
      Costs”
      means, with respect to each Service provided under the terms and subject to
      the
      conditions of this Agreement, an amount equal to the sum of such of the
      following items as may apply:

     

    (i)                                    
      the fully burdened labor costs incurred by the Providing Party in respect of
      the
      individual employees of such Providing Party who are engaged in the provision
      of
      such Service without management fee (as applicable to the individual and/or
      the
      Service) for the portion of their work time engaged in the provision of such
      Service;

     

    (ii)                                 
      the costs charged to the Providing Party by a third party provider in connection
      with such Service;

     

    (iii)                              
      the out-of-pocket and other expenses (other than expenses included in Transition
      Costs and the costs charged under item (i) above) incurred by the Providing
      Party in connection with such Service;

     

    (iv)                             
      taxes (other than Transfer Taxes) as set forth in
      Section 9(e) incurred by the Providing Party in connection with such
      Service; and

     

    (v)                                
      any costs expressly included as Service Costs in this Agreement, including
      costs
      as set forth in Section 3.7 of Exhibit A.

     

    “Transfer
      Taxes”
      means all recordation, transfer, documentary, excise, sales, value added, use,
      stamp, conveyance or other similar taxes, duties or governmental charges, and
      all recording or filing fees or similar costs, imposed or levied by reason
      of,
      in connection with or attributable to the Separation of any
      Service.

     

    “Transition
      Costs”
      means the one-time, initial set up, costs and expenses that are incurred by
      Parent Group in order to initiate the process of obtaining the Separation of
      any
      Service as contemplated by (and subject to) the terms and conditions of this
      Agreement and the costs of obtaining and, if applicable, modifying any
      contractual rights described in Section 6(c) of this Agreement,
      including such costs and expenses incurred prior to the date hereof by the
      Providing Party in preparation for the provision of the Services (for the
      avoidance of doubt, Transition Costs shall not include any annual or recurring
      fees, including without limitation, license fees, or any maintenance fees,
      support services fees, subscription fees or other costs relating to ongoing
      use).

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Tronox
      Group”
      has the meaning given such term in the Master Separation Agreement.

     

    Section 2.                                           
      Certain Transferred Personnel. 
      Parent hereby acknowledges and agrees that the individuals listed on
      Schedule 2
      are identified as prospective Tronox Individuals (as such term is defined in
      the
      Employee Benefits Agreement (as defined in the Master Separation Agreement))
      each of whom may become, if not already, employees of the Tronox Group as of
      the
      Closing Date.  Each party agrees that, for a period of  one year after
      the Closing Date, neither party nor its respective Affiliates shall recruit,
      offer employment to, hire or engage as a consultant any Person who is an
      employee of the other party immediately after the Closing Date;
      provided
      that the foregoing provision will not prohibit any general solicitation of
      employment not specifically directed toward employees of either Group or the
      soliciting or hiring of any individual who terminated his or her own employment
      with any member of the other Group or whose employment was terminated by any
      member of the other Group prior to such solicitation or hiring.

    

    Section 3.                                           
      Services.

     

    (a)                                 
      Except as otherwise provided herein, on the terms and subject to the conditions
      set forth herein, Parent shall provide, or cause one or more members of its
      Group to provide, the Tronox Group with each of the services listed
      on
      Exhibit A
      and Tronox shall provide, or cause one or more members of its Group to provide,
      the Parent Group with each of the services listed on
      Exhibit B
      (each service listed on
      Exhibit A
      or
      Exhibit B
      being a “Service”
      and, collectively, the “Services”),
      in each case beginning on the“Start
      Date”
      set forth on
      Exhibit A
      or
      Exhibit B
      for such Service and ending on the earlier of (i) the“End
      Date”
      set forth on
      Exhibit A
      or
      Exhibit B
      for such Service, (ii) the termination of this Agreement, or (iii) the
      termination of such Service pursuant to Section 11(b) (each such
      duration, a “Service
      Term”).
      For the avoidance of doubt, it is understood that services included as
“Services” may include, subject to the terms and conditions of this Agreement,
      the transfer and installation of certain hardware, software, related licenses
      and applications, and other items as set forth on
      Exhibit A,
      Exhibit B
      or
      pursuant to the Master Separation Agreement.

     

    (b)                                
      Subject to the provisos set forth in this Section 3(b), the Transition
      Costs incurred by the Parent Group in connection with Separation of the Services
      to be provided to the Tronox Group shall be borne 100% by the Parent Group
      and
      such Transition Costs shall not be included in the calculation of Service Costs
      payable by the Tronox Group for such Services;
      provided,
      however,
      that, with respect to each line item set forth in
      Exhibit C,
      in no event shall Parent Group have any obligation to incur any Transition
      Costs
      in excess of the specific amount allocated to each such line item set forth
      on
      Exhibit C
      (with respect to each line item on
      Exhibit C,
      the “Per
      Line Maximum Amount of Transition Costs”)
      and in no event in an aggregate amount in excess of $11 million;
      provided, further,
      that any Transition Costs in excess of the applicable Per Line Maximum Amount
      of
      Transition Costs shall be borne 100% by Tronox Group.  All Transfer Taxes
      incurred in connection with the Separation of the Services shall be borne 100%
      by the Parent Group, subject to Section 9(e).  Such Transition Costs
      shall not be included in the calculation of Service Costs payable by the Tronox
      Group for such Services.

     

    (c)                                 
      It is understood and agreed amongst the parties that, notwithstanding any
      provision to the contrary in this Agreement, the Providing Party shall have
      no
      obligation whatsoever to upgrade systems, invest in product enhancements or
      increase staffing, capacity, functionality, reliability or any other aspect
      of
      any Service beyond the level that exists as of the date hereof with respect
      to
      any Service.

    

     

    
      
        
        

      

      
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    (d)                                
      Notwithstanding anything to the contrary contained herein, during the Term,
      a
      Receiving Party may from time to time request that a Providing Party provide
      special services or projects in addition to the Services, and (subject to the
      mutual agreement of the parties hereto) such Providing Party shall make
      commercially reasonable efforts to provide such additional services or
      projects.  If such Providing Party agrees to provide such additional
      services or projects, the parties shall negotiate in good faith to establish
      the
      terms (including, without limitation, price) for providing such additional
      services or projects and, following agreement on such terms,
      Exhibit A
      or
      Exhibit B
      hereof shall be amended, as applicable, to include such additions.

    

     

    Section 4.                                           
      Standards of Performance; Level of Services. 

     

    (a)                                 
      Each Providing Party, with respect to any Service, shall perform such Service
      exercising the same degree of care, at the same general level and at the same
      general degree of accuracy and responsiveness, in each case as it exercises
      in
      performing the same or similar services for its own account, with priority
      equal
      to that provided to its own businesses and members of its
      Group. 

     

    (b)                                
      In
      no event shall any party, as Receiving Party with respect to any Service, be
      entitled to increase its use of such Service above that level of use specified
      in the exhibit related thereto without the prior written consent of the
      Providing Party.  Notwithstanding anything to the contrary in this
      Agreement, the Providing Party shall not be required to provide the Receiving
      Party with levels of such Service above the levels that existed prior to the
      date hereof or with the advantage of systems, equipment, facilities, training,
      services or improvements procured, obtained or made after the date
      hereof. 

     

    (c)                                 
      Notwithstanding anything to the contrary contained herein, the Providing Party
      with respect to any Service may, but is not required to, make changes from
      time
      to time in the manner in which such Service is provided if (i) the
      Providing Party is making similar changes in the manner in which such Service
      is
      provided to it and members of its own Group, (ii) the Providing Party
      furnishes to the Receiving Party substantially the same notice the Providing
      Party provides to members of its own Group with respect to such changes, and
      (iii) such changes shall not create a substantial risk of a material
      disruption of the Receiving Party’s business or of the Receiving Party’s
      incurring a material loss or liability.

     

    (d)                                
      Each Group shall nominate a representative to act as the primary contact person
      for the provision of all of the Services (the “Service
      Coordinators”). 
      The initial Service Coordinators shall be Kenneth Crouch for the Parent Group
      and Mary Mikkelson for the Tronox Group.  Each party shall notify the other
      party in writing of any change in the Service Coordinators.  The parties
      agree that all communications relating to the provision of the Services shall
      be
      directed to the Service Coordinators.

     

    (e)                                 
      In
      order to monitor, coordinate and facilitate implementation of the terms and
      conditions of this Agreement, the parties shall establish (i) a“Steering
      Committee”
      consisting of at least one (1) senior manager from each of Parent Group and
      Tronox Group and whereby each such Group is equally represented and
      (ii) an“Operating
      Committee”
      consisting,

     

    

    

    

    
      
        
        

      

      
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    as
      necessary, of
      one (1) representative of each of Parent Group and Tronox Group from each
      functional area that is the subject of Exhibits A and B (for such time as
      Service Terms within such functional areas are in effect).  The Steering
      Committee shall provide general oversight of the terms and conditions of this
      Agreement and shall work in good faith to resolve any disputes arising under
      this Agreement as set forth under Section 7. The Operating Committee shall
      be responsible for the day-to-day operations related to the implementation
      of
      the terms and conditions of this Agreement and the exhibits hereto.  The
      initial Steering Committee representatives shall be (i) for the Parent
      Group, Al Harris, Fran Heartwell and John M. Rauh and (ii) for Tronox
      Group, Tom Adams, Mary Mikkelson and Robert Y. Brown.  The initial
      Operating Committee representatives shall be (i) for the Parent Group, Ray
      Gonzales, Steve Miller and Ron McCauley and (ii) for Tronox Group, Mark
      Meadors, Candace Kahle, Melody Walke, Bill Snider and Cliff Dolton.  The
      initial Steering Committee and Operating Committee representatives shall not
      be
      changed by either Group on less than ten (10) days’ prior written notice to
      the Service Coordinator of the other Group. The Steering Committee and Operating
      Committee representatives shall meet at least monthly (or more frequently if
      needed) during the Term of this Agreement; provided, the members of the
      Steering Committee and the Operating Committee may participate in meetings
      of
      such committees by means of conference telephone, videoconferencing or other
      communications equipment by means of which all persons participating in the
      meeting can hear each other. The Steering Committee and Operating Committee
      representative for each Group shall stay reasonably apprised of the activities
      of the employees, agents and contractors of such Group who are providing or
      receiving the Services in order to maximize efficiency in the provision and
      receipt of the Services. Actions of the Steering Committee shall require the
      approval of Steering Committee representatives from each of the Parent Group
      and
      the Tronox Group.

     

    Section 5.                                           
      Resources. 
      In connection with the Services, the Receiving Party shall make reasonably
      available for consultation with the Providing Party those retained employees
      and
      consultants or other service providers of the Receiving Party reasonably
      necessary for the effective provision of such Services.

     

    Section 6.                                           
      Third Parties.

     

    (a)                                 
      The Providing Party with respect to a particular Service shall make reasonably
      available such personnel, facilities, equipment, systems and management as
      are
      required to provide such Service.  Subject to Section 4, the Providing
      Party shall have the right to designate which such resources it shall assign
      to
      perform such Service and shall have the right to remove and replace any such
      resources at any time or designate any other members of its Group or a third
      party provider to perform such Service;
      provided, however,
      that (i) the Providing Party shall use commercially reasonable efforts to
      prevent the disruption to the Receiving Party in the transition of the Service
      to different resources or another provider and (ii) with respect to
      Services that are not currently outsourced by a Providing Party to a third
      party, any substitution of a third party provider in connection with the
      provision of such Service shall be subject to the approval of the Steering
      Committee.  Notwithstanding the foregoing, each Providing Party shall
      remain solely responsible, in accordance with the terms of this Agreement,
      for
      the performance of any Service it is required to provide hereunder.

     

    (b)                                
      With respect to Services that are currently outsourced by Parent Group to third
      parties, Parent Group shall reasonably assist the Tronox Group in seeking to
      cause such third parties to provide such Services to the Tronox Group.  In
      the event Parent Group is not able

    
 

    

    

    
      
        
        

      

      
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    to
      secure the agreement of any third parties to provide Services to the Tronox
      Group, Parent Group shall reasonably assist the Tronox Group in seeking to
      obtain substantially similar services from another source on substantially
      similar terms and conditions as those currently being provided.

    

    (c)                                 
      If, and to the extent, required, the Tronox Group, on the one hand, and the
      Parent Group, on the other hand, shall cooperate in good faith in seeking to
      obtain any required transfer or assignment agreements or any other agreements
      necessary to transfer contractual rights of the Parent Group, that existed
      immediately prior to the Closing Date, to receive services or license software,
      to the extent (i) such agreements or rights are necessary for the provision
      of Services to the Tronox Group and (ii) such rights were utilized by the
      Tronox Group prior to the Closing Date.  Such agreements shall be in the
      name or for the benefit of the applicable member, or members, of the Tronox
      Group.  The cooperation required hereunder shall be included in the Service
      to which it is related.  For the avoidance of doubt, the parties agree and
      acknowledge that a Providing Party shall not be liable under this Agreement
      for
      any annual or recurring fees, including without limitation license fees, or
      any
      maintenance fees, support services fees, subscription fees or other costs
      relating to ongoing use by a Receiving Party stemming from a transfer to such
      Receiving Party pursuant to a Service hereunder.

     

    (d)                                
      A
      Providing Party shall not enter into any agreement or contract with any third
      party to provide any Services hereunder pursuant to which the Receiving Party
      would remain obligated to such third party upon the conclusion of this Agreement
      without such Receiving Party’s prior written consent, such consent not to be
      unreasonably withheld, delayed or conditioned.

     

    (e)                                 
      Without prejudice to the obligations of the Parent Group under
      Section 3(b) and Exhibit C of this Agreement, the Receiving Party
      shall be solely responsible for acquiring or otherwise obtaining all assets
      and
      rights for third party services not otherwise obtained as a result of the
      expenditure of such Transition Costs, including without limitation, hardware,
      software, information systems and other materials and third party services,
      reasonably necessary in connection with the Separation of any Service as
      contemplated by this Agreement.

     

    Section 7.                                           
      Good Faith Cooperation; Dispute Resolution.

     

    (a)                                 
      The parties shall cooperate in good faith in all matters relating to the
      provision and receipt of the Services.  Such cooperation shall include
      exchanging information, providing access to personnel, equipment, office space,
      electronic systems and other property, performing true-ups and adjustments
      and
      obtaining all consents, licenses, sublicenses or approvals necessary to permit
      each party to perform its obligations hereunder.

     

    (b)                                
      In
      the event of a dispute under this Agreement, either Group may give notice to
      the
      other Group requesting that the Steering Committee in good faith try to resolve
      (but without any obligation to resolve) such dispute.  Not later than 10
      days after said notice, each Group shall submit to the other Group a written
      statement setting forth such Group’s description of the dispute and of the
      respective positions of the Groups on such dispute and such Group’s recommended
      resolution and the reasons why such Group feels its recommended resolution
      is
      fair and equitable in light of the terms and spirit of this Agreement. 
Such statements represent part of a good-faith effort to resolve a dispute
      and
      as such, no statements prepared by a Group

    
 

    

    

    
      
        
        

      

      
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    pursuant
      to this Section 7 may be introduced as evidence or used as an admission
      against interest in any arbitral or judicial resolution of such
      dispute.

     

    (c)                                 
      If
      the dispute continues unresolved for a period of five days (or such longer
      period as the Steering Committee may otherwise agree upon) after the
      simultaneous exchange of such written statements, then the Steering Committee
      shall promptly commence good-faith negotiations to resolve such dispute but
      without any obligation to resolve it.  The initial negotiating meeting may
      be conducted by teleconference.

     

    (d)                                
      Not later than seven days after the commencement of good-faith negotiations
      under Section 7(c) above:  (i) if the Steering Committee
      renders an agreed resolution on the matter in dispute, then both Groups shall
      be
      bound thereby; and (ii) if the Steering Committee does not render an agreed
      resolution, then the dispute shall be submitted for resolution pursuant to
      Section 7(e).

     

    (e)                                 
      Disputes arising under this Agreement and not resolved by the Steering Committee
      within seven days under clause (i) of Section 7(d) shall be
      submitted in writing to an appropriate executive officer of each party. 
The executive officers shall attempt to resolve any dispute submitted to them
      for resolution in accordance with this Section 7(e) through
      consultation and negotiation, within 30 days after such submittal (or such
      longer period as may be mutually agreed by the parties).  The executive
      officers may request the assistance of an independent mediator if they believe
      that such a mediator would be of assistance to the efficient resolution of
      the
      dispute.

     

    (f)                                   
      Subject to Section 11(c), during the course of resolution of any dispute,
      the rights and obligations of the parties under this Agreement, including with
      respect to the subject matter of such dispute, shall continue.

     

    (g)                                
      If
      the parties fail to resolve any dispute pursuant to this Section 7, then
      the provisions of Section 18 shall apply.

     

    Section 8.                                           
      Exceptions to Providing Party’s Obligation to Perform.

     

    (a)                                 
      The Providing Party with respect to any Service shall not be required to provide
      such Service to the extent the performance of such Service would require the
      Providing Party to violate any applicable Law or would result in the breach
      of
      any software license or other Contract with a Person not a member of the
      Providing Party’s Group.  If the Providing Party with respect to any
      Service reasonably determines that it is unable to provide such Service in
      accordance with the terms hereof, the parties shall cooperate to determine
      the
      best alternative approach.  Until such alternative approach is found or the
      problem is otherwise resolved to the satisfaction of the parties, the Providing
      Party shall use commercially reasonable efforts to continue to provide such
      Service. To the extent the parties agree upon an alternative approach that
      requires payment of amounts above and beyond what the Receiving Party is
      required to pay under this Agreement for such Service, such excess amounts
      shall
      be borne by the Receiving Party, or as otherwise agreed by the
      parties.

     

    (b)                                
      Notwithstanding anything to the contrary contained herein,

     

    

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (i)                                    
      if
      the Receiving Party (A) elects to decommission, replace, modify or change
      its information technology or communications systems or any other aspect of
      its
      business relationship relating to a Service in a manner that prevents the
      Providing Party from providing such Service as required hereunder (in the
      understanding that the Receiving Party shall provide the Providing Party with
      five (5) Business Days prior notice of any such election), or
      (B) fails to acquire the hardware, software, information systems or other
      materials or third party services reasonably necessary for the Separation of
      any
      Service pursuant to Section 6(e) of this Agreement and such failure
      prevents the Providing Party from providing such Service as required hereunder,
      then, in each case, the Providing Party shall have no liability whatsoever
      with
      respect to the effectiveness or quality of such Service and, following five
      (5) Business Days prior written notice to the Receiving Party, shall be
      excused from the performance of such Service;

     

    (ii)                                 
      if
      the Tronox Group is unable, despite the reasonable assistance of the Parent
      Group in accordance with Section 6(b) of this Agreement and the good
      faith cooperation of the Parent Group in accordance with
      Section 7(a) of this Agreement, to secure the agreement of third
      parties with whom Parent Group has outsourced certain Services to provide such
      Services to the Tronox Group, the Parent Group shall have no liability
      whatsoever with respect to the effectiveness or quality of any Service that
      is
      prevented, hindered, or delayed thereby and, following five (5) Business
      Days prior written notice to the Receiving Party, shall be excused from the
      performance of such Service; and

     

    (iii)                              
      if
      the Tronox Group is unable, despite the good faith cooperation of the Parent
      Group in accordance with Sections 6(c) and 7(a) of this Agreement, to
      obtain any required transfer or assignment agreements or any other agreements
      necessary to transfer contractual rights of the Parent Group, that existed
      immediately prior to the Closing Date, the Parent Group shall have no liability
      whatsoever with respect to the effectiveness or quality of any Service that
      is
      prevented, hindered, or delayed thereby and, following five (5) Business
      Days prior written notice to the Receiving Party, shall be excused from the
      performance of such Service; and

     

    (iv)                             
      the Parent Group may suspend performance and the Tronox Group’s access to
      information technology or communications systems used by the Parent Group if,
      in
      the Parent Group’s reasonable judgment, the integrity, security or performance
      of such systems, or any data stored thereon, is being or is likely to be
      jeopardized by the activities of any member of the Tronox Group, its employees,
      agents, representatives or contractors.

     

    Section 9.                                           
      Payment and Audit Rights.

     

    (a)                                 
      Generally. 
      In consideration of each Service provided hereunder, during the Term of this
      Agreement, the Receiving Party shall pay the Providing Party, on a monthly
      basis, an amount equal to the Service Costs attributable to the Services
      provided by the Providing Party during the prior month period.  Upon a
      material reduction in the Services to be provided to the Receiving Party by
      the
      Providing Party (through Separation), such payment amounts shall be
      commensurately reduced.  With respect to any particular Service, if any,
      requiring additional payment by the Receiving Party, the Receiving Party shall
      pay the Providing Party in accordance with the specifications set forth on
      the
      exhibit describing such Service.  To the extent that during

     

    

    

    

    
      
        
        

      

      
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    the
      Term of this Agreement the parties mutually agree to modify, amend, delete
      or
      add to the Services, the parties shall cooperate to determine in good faith
      an
      equitable adjustment to the amounts paid by the Receiving Party to the Providing
      Party.

     

    (b)                                
      Invoices. 
      With respect to the Services actually provided, the Providing Party shall
      invoice the Receiving Party on a monthly basis for all amounts due the Providing
      Party hereunder with respect to such Services. For the avoidance of doubt,
      it is
      hereby understood that, unless mutually agreed in writing amongst the parties
      hereto, amounts due hereunder shall consist solely of Service Costs. Such
      invoices shall be accompanied by a reasonable accounting of all invoiced
      amounts, all third party invoices and receipts related to such invoiced amounts
      and such other supporting documentation as may be reasonably requested by the
      Receiving Party.

     

    (c)                                 
      Payment. 
      Each party shall pay the other party for any properly invoiced amounts within
      30
      days of receipt of the invoice and other information required by
      Section 9(b);
      provided, however,
      that if such paying party shall have a bona fide dispute with the amount
      invoiced, then such paying party shall pay only the undisputed amount at such
      time and the parties shall seek to resolve such dispute in accordance with
      Section 7 of this Agreement. All payments hereunder shall be made by
      deposit of United States Dollars in the requisite amount to such bank account
      as
      the party receiving such payment may from time to time designate by notice
      to
      the paying party.  Late payments of undisputed amounts shall bear interest
      at the published one-month LIBOR Rate plus 2% per annum.

     

    (d)                                
      Audit Rights. 
      With respect to a particular Service, the Receiving Party shall have the right
      to audit the financial and other records of the Providing Party and any member
      of the Providing Party’s Group related to the provision of such Service, the
      systems and undertakings (including testing protocols) used to provide such
      Service and the incurrence of Transition Costs;
      provided,
      however,
      that such right to audit shall exist only for so long as such financial or
      other
      records are retained by the Providing Party under its records retention policies
      or practices;
      provided, further, that
      such financial and other records shall be retained for a minimum of two years
      after the termination of this Agreement.  If any such audit reveals any
      excess amounts paid by the Receiving Party, the Providing Party shall, promptly
      after receipt of the results of such audit, (a) pay to the Receiving Party
      any such excess amounts, with interest from the date of payment due at the
      published one-month LIBOR Rate plus 2% per annum, and (b) if such excess
      amounts represent more than 2% of the total amount actually owed under this
      Agreement with respect to such Service, reimburse the Receiving Party for the
      reasonable out-of-pocket cost of such audit.

     

    (e)                                 
      Taxes. 
      Any taxes (other than Transfer Taxes) assessed on the provision of any Service
      hereunder shall be included in the Service Costs of such Services.

    

    Section 10.                                     
      Confidentiality.

     

    (a)                                 
      With respect to any Service, the Receiving Party with respect thereto agrees
      that (i) all software, hardware or data store, procedures and materials
      provided to such Receiving Party by or on behalf of the Providing Party in
      connection with such Service are solely for the use of the Receiving Party
      and
      members of its Group solely for purposes of using such Services during the
      Term
      (provided that benefits received by third parties in the ordinary course of
      business conducted with a Receiving Party shall not be subject to
      this
      Section 10);
      (ii) title to

     

    

    

    

    
      
        
        

      

      
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    any
      software, hardware or data store or any other intellectual property or
      proprietary right of any kind used in performing such Service shall, as between
      such Receiving Party and the Providing Party, remain in the Providing Party;
      (iii) such Receiving Party shall not copy, modify, reverse engineer,
      decompile, distribute or in any way alter or make derivative works of any
      software, hardware or data store used in performing such Service without the
      Providing Party’s prior written consent, and (iv) such Receiving Party
      shall comply with any and all usage guidelines pertaining to any Service and
      provided by or on behalf of a Providing Party, including without limitation,
      any
      and all usage guidelines pertaining to software, data, or other intellectual
      property or proprietary rights. Notwithstanding the foregoing, (x) the hardware
      and software licenses set forth in Schedules 2.2(j), 2.2(k) and 2.2(l) shall
      not
      be subject to this Section 10(a) (and the Tronox Group shall be solely
      responsible for complying with all terms and conditions applicable to such
      hardware and software licenses) and (y) any software, hardware, data store,
      procedures or materials purchased for the Receiving Party pursuant to
      Section 3(b) of this Agreement in connection with the Separation of a
      Service or the independent functionality of the Receiving Party, and any assets
      acquired or purchased by a Receiving Party for its own account, shall not be
      subject to this Section 10(a).

     

    (b)                                
      Each party shall use the other party’s data solely to exercise its rights or
      perform its obligations, as applicable, under this Agreement.  No party
      shall sell, assign, lease, disseminate or otherwise dispose of any of the other
      party’s data received or accessed as a consequence of the receipt or performance
      of Services pursuant to this Agreement.  No party shall possess or assert
      any property interest in, or any lien, security interest or other right against
      or to, any of the other party’s data, and each party shall afford to the other
      party’s data the same level of security that is afforded to its own data. 
Nothing in this Agreement or in the performance or use of the Services hereunder
      shall be deemed to transfer, assign or otherwise convey any rights, title or
      interests in or to any intellectual property or proprietary rights of one party
      to the other party;
      provided, however,
      each party shall grant to the other party a non-exclusive, limited purpose,
      non-transferable, non-assignable, non-sublicenseable license to any intellectual
      property set forth in
      Schedule 2.2(m)
      of
      Exhibit A and any software interfaces owned exclusively and developed
      in-house by the Providing Party and used to provide Services hereunder
      (collectively, the “Licensed
      Intellectual Property”),
      to the extent such intellectual property license is necessary, in the case
      of a
      Receiving Party, to utilize the Services in accordance with this Agreement,
      and
      in the case of a Providing Party, such license is necessary to perform its
      obligations under this Agreement, which license shall terminate on the earlier
      of the date (x) the party granting such license shall no longer have the right
      to license such Licensed Intellectual Property as contemplated herein, and
      (y)
      the recipient of such license ceases to use such Licensed Intellectual Property
      in connection with the Services described in this Agreement in the manner
      expressly contemplated and described in this Agreement. Each party expressly
      reserves all rights, title and interests in and to its intellectual property
      that are not licensed in accordance with this Agreement.   Each party
      shall not possess or assert any interest in or any lien or security interest
      or
      other right against or to any of the other party’s intellectualproperty beyond
      any licenses granted pursuant to this Agreement.  Notwithstanding any other
      provision of this Agreement, each party shall be free to use for itself and
      for
      others, in any manner, the general knowledge, skill or experience acquired
      by
      that party in the course of the performance of this Agreement, including using
      that knowledge for any present or future customer or other business
      partner.

    
 

    

    

    
      
        
        

      

      
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    (c)                                 
      The parties hereto acknowledge that, pursuant to the mutual provision of
      Services or as a result of the transfer of certain business operations and
      assets (including information technology, software and hardware) contemplated
      by
      the Master Separation Agreement, each Group shall possess or have access
      (intentionally or inadvertently) to information that belongs to the other Group
      or has commercial value in that other Group’s business, and is not in the public
      domain, including information relating to its customers, suppliers, finances,
      operations, facilities and markets (“Confidential
      Information”). 
      Neither Group shall disclose, use, sell, assign, lease or otherwise dispose
      of
      the other Group’s Confidential Information, except as otherwise expressly
      permitted by this Agreement or the Master Separation Agreement. A Providing
      Party hereunder shall not, and shall use its commercially reasonable efforts
      to
      ensure that Providing Party’s employees, contractors and other agents do not use
      the Services to access any of a Receiving Party’s Confidential Information that
      is outside the scope of the Service provided.  Nothing in this
      Section 10(c) shall be construed as obligating any party hereto to
      disclose its Confidential Information to any other party, or as granting to
      or
      conferring on another party, expressly or by implication, any rights or license
      to its Confidential Information, provided that the parties acknowledge that,
      in
      order to perform the Services, a Providing Party shall have custody of and
      usage
      of certain of a respective Receiving Party’s Confidential Information and each
      party hereby grants to each other party acting as a Providing Party to it the
      right to do so in accordance with this Agreement.

     

    (d)                                
      Notwithstanding Section 10(c), Information is not Confidential Information
      to the extent that: (i) the Information is or becomes publicly available
      through no fault of the party which received the Information from the other
      party, (ii) the same Information is rightfully in the possession of a party
      prior to receipt of that Information from another party;
      provided, however
      that Tronox Group Information or data that is in the Parent Group’s possession
      prior to the Closing Date and is otherwise Confidential Information of the
      Tronox Group shall be Confidential Information, (iii) the same Information
      is independently developed (without the use of another party’s Confidential
      Information) by the party which received that information from such other party,
      or (iv) the same Information becomes available to a party on a
      non-confidential basis from a source other than another party hereto, which
      source, to the knowledge of the disclosing party, is not prohibited from
      disclosing that information by a legal, contractual or fiduciary obligations
      to
      the party about whom such Information pertains.

     

    (e)                                 
      Notwithstanding Section 10(c), a party hereto shall not have violated the
      terms of this Section 10 for disclosing Confidential
      Information:

     

    (i)                                    
      to
      third parties performing services required under this Agreement where (A) 
use of that Confidential Information by that third party is authorized under
      this Agreement; or (B) disclosure is reasonably necessary or typically
      occurs in the natural course of the third party’s duties;
      provided,
      in each case,
      that
      the third party has executed a written confidentiality agreement under which
      the
      third party is obligated to maintain the confidentiality of the Confidential
      Information in a manner substantially equivalent to this Agreement;

     

    (ii)                                 
      in
      order to comply with any applicable Laws,
      provided that
      as
      soon as practicable and legally permitted the disclosing party shall notify
      the
      party whose Confidential Information was or is to be disclosed of the disclosure
      or possible disclosure under this subsection; or

    
 

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (iii)                              
      to
      the disclosing party’s independent auditors under an obligation of
      confidentiality.

    

    Section 11.                                     
      Term.

     

    (a)                                 
      The term of this Agreement (the“Term”)
      shall commence on the date hereof, and, unless earlier terminated in accordance
      with Section 11(b), shall continue until the first anniversary of the
      Closing Date.  This agreement may only be extended by written agreement of
      the parties as evidenced by the signature of authorized representatives of
      such
      parties.

     

    (b)                                
      Notwithstanding the foregoing, the commencement dates and, if sooner than the
      first anniversary of the Closing Date, the termination dates of any Service
      shall be as set forth in the applicable exhibit;
      provided, however, that
      where such dates are not specified in the exhibits, the term of a Service shall
      coincide with the term of this Agreement;
      provided, further,
      that the Receiving Party with respect to any Service may terminate the term
      of
      such Service upon thirty (30) days notice to the Providing Party.

     

    (c)                                 
      Notwithstanding anything to the contrary set forth in this Agreement, if any
      party hereto defaults in any of its material obligations with respect to a
      Service hereunder, and such default is not cured within 30 days after the
      resolution, pursuant to Section 7, of a dispute entered as a result of such
      default, the party not in default shall be entitled, without prejudice to any
      of
      its other rights conferred on it by this Agreement, and in addition to any
      other
      remedies available to it by law or in equity, to terminate its obligations
      with
      respect to such Service.

     

    Section 12.                                     
      Consequences of Termination.

     

    (a)                                 
      Termination or expiration of this Agreement for any reason shall be without
      prejudice to any rights that shall have accrued to the benefit of a party prior
      to such termination or expiration.  Such termination, relinquishment, or
      expiration shall not relieve a party from obligations that are expressly
      indicated to survive the termination or expiration of this
      Agreement.

     

    (b)                                
      Upon termination or expiration of this Agreement, each party, at the request
      of
      the other, shall return all relevant records and materials in its possession
      or
      control containing or comprising the other party’s Information and to which the
      returning party does not retain rights hereunder (except one copy of which
      may
      be retained in such files for archival purposes).

     

    Section 13.                                     
      Disclaimer of Warranties. 
      EACH PARTY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS, STATUTORY AND IMPLIED,
      INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
      PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, QUIET ENJOYMENT, NO ENCUMBRANCES,
      SYSTEM INTEGRATION, ACCURACY, WORKMANLIKE EFFORT AND WARRANTIES ARISING THROUGH
      COURSE OF DEALING OR USAGE OF TRADE.  NEITHER PARTY MAKES ANY
      REPRESENTATIONS OR WARRANTIES AS TO THE QUALITY, SUITABILITY, AVAILABILITY,
      RELIABILITY, SECURITY, PERFORMANCE OR ADEQUACY OF THE SERVICES.

    
 

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Section 14.                                     
      Damages. 
      NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, EXCEPT AS EXPRESSLY
      SET FORTH HEREIN, NO PARTY HERETO SHALL BE LIABLE TO ANY OTHER PARTY HERETO
      (INCLUDING ITS RESPECTIVE HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS OR ASSIGNS,
      AS THE CASE MAY BE, HEREUNDER) FOR ANY LOSSES THAT ARE NOT REASONABLY
      FORESEEABLE OR ANY DAMAGES FOR THE LOSS OF PROFITS, BUSINESS, ANTICIPATED
      SAVINGS, GOODWILL, OR THE LOSS OF OR DAMAGE TO DATA OR ANY OTHER INCIDENTAL,
      CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR
      ITS
      TERMINATION OR ANY TRANSACTION CONTEMPLATED BY THIS AGREEMENT, WHETHER FOR
      BREACH OF REPRESENTATION OR WARRANTY OR COVENANT OR OTHER AGREEMENT OR ANY
      OBLIGATION ARISING THEREFROM OR OTHERWISE, WHETHER LIABILITY IS ASSERTED IN
      CONTRACT OR TORT (INCLUDING GROSS NEGLIGENCE, NEGLIGENCE AND STRICT PRODUCT
      LIABILITY) AND REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE
      POSSIBILITY OF ANY SUCH LOSS OR DAMAGE.  EACH PARTY HERETO HEREBY WAIVES
      ANY CLAIMS THAT THESE EXCLUSIONS DEPRIVE SUCH PARTY OF AN ADEQUATE
      REMEDY.

     

    Section 15.                                     
      Indemnification.
      The Providing Party with respect to a particular Service shall not have any
      liability to the Receiving Party with respect thereto for the furnishing of
      or
      failure to furnish such Service hereunder, including for Liabilities arising
      out
      of the gross negligence or willful misconduct of the Providing Party or a member
      of its Group.  The Receiving Party shall indemnify, defend and hold
      harmless the Providing Party and each of its Affiliates and each of their
      respective officers, directors, employees, stockholders, agents and
      representatives (each an “Indemnitee”)
      in respect of all Liabilities related to, arising from, asserted against or
      associated with any Service.

     

    Section 16.                                     
      Subrogation. 
      If any liability arises from the performance of any Service hereunder by a
      third
      party contractor, the Receiving Party with respect to such Service shall be
      subrogated to such rights, if any, as the Providing Party may have against
      such
      third party contractor.

     

    Section 17.                                     
      Counterparts; Entire Agreement.

     

    (a)                                 
      This Agreement may be executed in one or more counterparts, all of which shall
      be considered one and the same agreement, and shall become effective when one
      or
      more counterparts have been signed by each of the parties and delivered to
      the
      other party.

     

    (b)                                
      This Agreement, and the exhibits and schedules hereto, contain the entire
      agreement between the parties with respect to the subject matter hereof,
      supersede all previous agreements, negotiations, discussions, writings,
      understandings, commitments and conversations with respect to such subject
      matter and there are no agreements or understandings between the parties other
      than those set forth or referred to herein or therein.

    
 

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    Section 18.                                     
      Governing Law; Jurisdiction; Jury Trial Waiver.

     

    (a)                                 
      This Agreement shall be governed by, and construed in accordance with, the
      laws
      of the State of New York without giving effect to principles of conflicts of
      laws thereof.

     

    (b)                                
      Each of the parties hereto (i) consents to submit itself to the personal
      jurisdiction of the United States District Court for the Southern District
      of
      New York or the Supreme Court of The State of New York, New York County in
      the
      event any dispute arises out of this Agreement or any of the transactions
      contemplated hereby, (ii) agrees that it will not attempt to deny or defeat
      such personal jurisdiction by motion or other request for leave from any such
      court, and (iii) agrees that it will not bring any action relating to this
      agreement or any of the transactions contemplated hereby in any court other
      than
      the United States District Court for the Southern District of New York or the
      Supreme Court of the State of New York, New York County.

     

    (c)                                 
      EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL
      BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT
      OR
      BY THE TRANSACTIONS CONTEMPLATED HEREBY.

     

    Section 19.                                     
      Assignability. 
      This Agreement shall be binding upon and inure to the benefit of the parties
      hereto, and their respective successors and permitted assigns;
      provided,
      however,
      that, without prejudice to the provisions of Section 6 of this Agreement,
      no party hereto may assign its respective rights or delegate its respective
      obligations under this Agreement without the express prior written consent
      of
      the other parties hereto, except that any party may assign any of its rights
      or
      obligations under this Agreement to any member of its Group without the prior
      written consent of the other party.

     

    Section 20.                                     
      Third Party Beneficiaries.

     

    (a)                                 
      Except for the indemnification rights under this Agreement of any Indemnitee
      in
      its capacity as such, (a) the provisions of this Agreement are solely for
      the benefit of the parties hereto and are not intended to confer upon any other
      any rights or remedies hereunder and (b) there are no third party
      beneficiaries of this Agreement and this shall not provide any third person
      with
      any remedy, claim, liability, reimbursement, claim of action or other right
      in
      excess of those existing without reference to this Agreement.

     

    (b)                                
      Unless otherwise expressly provided herein (other than in the ordinary course
      of
      business of the Receiving Party), (i) each Service shall be provided solely
      for the benefit of the applicable Receiving Party and members of its Group
      and
      (ii) no party may sell, transfer, assign or otherwise use the Services
      provided to it hereunder or its right to receive such Services, in whole or
      in
      part, for the benefit of any Person other than a member of its
      Group.

     

    Section 21.                                     
      Notices. 
      All notices or other communications under this Agreement shall be in writing
      (including by telecopy) and shall be deemed to be duly given or made when
      delivered, or, in the case of telecopy, when received, addressed as follows
      or
      to such other address as may be hereafter notified by the respective
      party:

    
 

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

     

    
      	
              To
                Parent or any

              member
                of the

              Parent
                Group:

            	
               

            	
              Kerr-McGee
                Corporation

              Kerr-McGee
                Worldwide Corporation

              Kerr-McGee
                Center

              123
                Robert S. Kerr Avenue

              Oklahoma
                City, Oklahoma 73102

              Facsimile:   405-270-3649

              Attention:   General
                Counsel

            
	
               

            	
               

            	
               

            
	
              with
                a copy to:

            	
               

            	
              Covington &
                Burling

              1330
                Avenue of the Americas

              New
                York, New York 10019

              Facsimile:   212-841-1010

              Attention:   Scott
                F. Smith

            
	
               

            	
               

            	
               

            
	
              To
                Tronox or any

              member
                of the

              Tronox
                Group:

            	
               

            	
              Tronox
                Incorporated

              123
                Robert S. Kerr Avenue

              Oklahoma
                City, Oklahoma 73102

              Facsimile:   405-270-4504

              Attention:   Chief
                Executive Officer

            
	
               

            	
               

            	
               

            
	
              with
                a copy to:

            	
               

            	
              Tronox
                Incorporated

              123
                Robert S. Kerr Avenue

              Oklahoma
                City, Oklahoma 73102

              Facsimile:   405-270-4101

              Attention:   General
                Counsel

            

    

     

    Section 22.                                     
      Independent Contractor.  At
      all times during the term of this Agreement, the Providing Party shall be
      an  independent contractor in providing the Services hereunder with the
      sole right to supervise, manage, operate, control and direct the performance
      of
      the Services and the sole obligation to employ, compensate and manage its
      employees and business affairs.  Nothing contained in this Agreement shall
      be deemed or construed to create a partnership or joint venture, to create
      the
      relationships of employee/employer or principal/agent, or otherwise create
      any
      liability whatsoever of any party with respect to the indebtedness, Liabilities,
      obligations or actions of the other party or any of its respective officers,
      directors, employees, stockholders, agents or representatives, or any other
      person or entity.

     

    Section 23.                                     
      Severability. 
      If any provision of this Agreement or the application thereof to any Person
      or
      circumstance is determined by a court of competent jurisdiction to be invalid,
      void or unenforceable, the remaining provisions hereof, or the application
      of
      such provision to Persons or circumstances or in jurisdictions other than those
      as to which it has been held invalid or unenforceable, shall remain in full
      force and effect and shall in no way be affected, impaired or invalidated
      thereby, so long as the economic or legal substance of the transactions
      contemplated hereby is not affected in any manner adverse to any party. Upon
      such determination, the parties shall negotiate in good faith in an effort
      to
      agree upon such a suitable and equitable provision to effect the original intent
      of the parties.

     

    Section 24.                                     
      Force Majeure. 
      The Providing Party shall not be in default hereunder by reason of any failure
      or delay in the performance of its obligations hereunder where such failure
      or
      delay is due to any cause beyond its control, including strikes, labor disputes,
      civil

    
 

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    disturbances,
      riot, rebellion, invasion, epidemic, hostilities, war, embargo, natural
      disaster, acts of God, flood, fire, sabotage, accident, delay in transportation,
      loss and destruction of property, intervention by Governmental Authorities,
      change in laws, regulations or orders, other events or any other circumstances
      or causes beyond the Providing Party’s control. In the event that any Providing
      Party reasonably expects a failure or delay in the performance of its
      obligations hereunder, such Providing Party shall promptly notify the Receiving
      Party of such expectation and shall set forth in such notice, if practicable,
      such Providing Party’s reasonable estimate of the nature, extent and duration of
      such expected failure or delay. Notwithstanding anything to the contrary
      contained herein, any Providing Party that experiences any shortage,
      interruption, delay inadequacy or limitation in the availability of any of
      the
      Services (by reason of force majeure or otherwise) and is unable to fulfill
      the
      Receiving Party’s requirements for those Services shall ensure that the
      Receiving Party is treated no less favorably than any member of the Providing
      Party’s Group in the allocation by the Providing Party between such Group
      members and the Receiving Party of such affected Services.

     

    Section 25.                                     
      Headings. 
      The article, section and paragraph headings contained in this Agreement are
      for reference purposes only and shall not affect in any way the meaning or
      interpretation of this Agreement.

     

    Section 26.                                     
      Survival. 
      The provisions of Sections 9, 10 (other than the licenses granted thereunder),
      as well as the related provisions of Sections 12 through 28, shall survive
      the expiration or earlier termination of this Agreement for any reason
      whatsoever.

     

    Section 27.                                     
      Amendments. 
      No provisions of this Agreement shall be deemed waived, amended, supplemented
      or
      modified by any party, unless such waiver, amendment, supplement or modification
      is in writing and signed by the authorized representative of the party against
      whom it is sought to enforce such waiver, amendment, supplement or
      modification.

     

    Section 28.                                     
      Interpretation. 
      Words in the singular shall be held to include the plural and vice versa and
      words of one gender shall be held to include the other genders as the context
      requires. The terms “hereof”, “herein”, and “herewith” and words of similar
      import shall, unless otherwise stated, be construed to refer to this
      Agreement  as a whole (including all of the Schedules and Exhibits hereto)
      and not to any particular provision of this Agreement. Article, Section,
      Exhibit and Schedule references are to the Articles, Sections,
      Exhibits and Schedules to this Agreement unless otherwise specified. The word
      “including” and words of similar import when used in this Agreement shall mean
“including, without limitation,” unless the context otherwise requires or unless
      otherwise specified. The word “or” shall not be exclusive.

    
 

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, each of the parties has caused this Agreement to be duly
      executed and delivered as of the day and year first above written.

     

    
      	
               

            	
              KERR-MCGEE
                CORPORATION

            
	
               

            	
               

            
	
               

            	
              By:

            	
              /s/
                Robert M. Wohleber

            	
               

            
	
               

            	
              Name:
                Robert M. Wohleber

            
	
               

            	
              Title:
                Senior Vice President and Chief Financial Officer

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              KERR-MCGEE
                WORLDWIDE CORPORATION

            
	
               

            	
               

            
	
               

            	
              By:

            	
              /s/
                Robert M. Wohleber

            	
               

            
	
               

            	
              Name:
                Robert M. Wohleber

            
	
               

            	
              Title:
                Senior Vice President and Chief Financial Officer

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              TRONOX
                INCORPORATED

            
	
               

            	
               

            
	
               

            	
              By:

            	
              /s/
                Thomas W. Adams

            	
               

            
	
               

            	
              Name:
                Thomas W. Adams

            
	
               

            	
              Title:
                Chief Executive Officer

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