Document:

Exhibit 10.2

 

Execution Version

 

TAX MATTERS AGREEMENT

 

by and among

 

HUNTSMAN CORPORATION

 

and

 

VENATOR MATERIALS PLC

 

Dated as of August 7, 2017

 

 

TAX MATTERS AGREEMENT

 

This TAX MATTERS AGREEMENT (this “Agreement”) is entered into as of August 7, 2017, by and among Huntsman Corporation, a Delaware corporation (“Huntsman”), and Venator Materials PLC, a public company limited by shares and incorporated under the laws of England and Wales (“Venator”), and is effective as of the Effective Date.  Each of Huntsman and Venator is sometimes referred to herein as a “party” and, collectively, the “parties.”

 

RECITALS

 

WHEREAS, the board of directors of Huntsman has determined that it is in the best interests of Huntsman and its shareholders that Venator operate the Pigments Business as a separate publicly-traded entity;

 

WHEREAS, prior to the IPO, Venator was an indirect, wholly-owned subsidiary of Huntsman;

 

WHEREAS, prior to and in preparation for the IPO, Huntsman and its subsidiaries completed an internal reorganization through a series of transactions, including taxable and nontaxable asset transfers, dividends, contributions and similar transactions in order to transfer the Pigments Business to Venator (the “Internal Reorganization”);

 

WHEREAS, on the Offering Date, ordinary shares of Venator will be sold to the public (the “IPO”);

 

WHEREAS, immediately after, and as a result of, the IPO, Venator ceased to be an indirect, wholly-owned subsidiary of Huntsman; and

 

WHEREAS, the parties wish to (a) provide for the payment of Tax Liabilities and entitlement to refunds thereof, (b) allocate responsibility for, and cooperation in, the filing of Tax Returns, and (c) provide for and agree on certain other matters relating to Taxes.

 

NOW, THEREFORE, in consideration of the mutual promises and undertakings contained herein and in any other document executed in connection with this Agreement, the parties agree as follows:

 

ARTICLE I
 DEFINITIONS; CERTAIN OPERATING CONVENTIONS

 

1.1                               For purposes of this Agreement, the following terms have the meanings set forth below:

 

“Additional Basis Tax Benefit” means, with respect to each Post-Offering Taxable Period, the excess, if any, of the Cumulative Adjusted Tax Liability over the Cumulative Actual Tax Liability.

 

“Affiliated Group” means an affiliated group of corporations, within the meaning of Section 1504(a) of the Code, or any similar group of entities as defined under corresponding 

 

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provisions of the laws of other jurisdictions, including the common parent corporation and any member of such group.  For the avoidance of doubt, Affiliated Group includes the group relief provisions, and all similar provisions, under the tax law, rules and regulations of the United Kingdom.  Huntsman shall be deemed and treated as if it were, (even where a “parent” is not required) the parent company of the United Kingdom Affiliated Group.

 

“Agreement” has the meaning set forth in the introductory paragraph of this Agreement.

 

“Audit” means any audit, assessment of Taxes, other examination by any Tax Authority, or proceeding or appeal of a proceeding relating to Taxes, whether administrative or judicial, including proceedings relating to competent authority determinations.

 

“Basis Increases” means any increases in the basis of the assets of the U.S. Pigments Business for U.S. federal income tax purposes resulting from (i) the Internal Reorganization and  from payments made pursuant to Section 2.7 and (ii) any immediate deduction resulting from payments made pursuant to Section 2.7.  For the avoidance of doubt, the Parties acknowledge that this will create an iterative gross-up calculation where a payment by Venator will create additional Basis Increases, which will create an additional payment, which will create additional Basis Increases and so on until the amount reaches a whole one dollar.

 

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

 

“Cumulative Actual Tax Liability” with respect to each taxable year, means the cumulative cash payments for U.S. federal income Taxes of the Venator Group for all taxable years beginning after the Internal Reorganization through the end of such taxable year.  Cumulative Actual Tax Liability shall be calculated within 30 days following the filing of the relevant U.S. income tax returns for the applicable taxable year.  To the extent there are amendments to a relevant income tax return of a Venator Group member or a Final Determination affecting the U.S. federal income Taxes of the Venator Group, such amendment or Final Determination shall be treated as changing the Cumulative Actual Tax Liability for the taxable year during which the amendment or Final Determination occurs.

 

“Cumulative Adjusted Tax Liability” with respect to each taxable year, means the cumulative hypothetical cash payments for U.S. federal income Taxes of the Venator Group for all taxable years beginning after the Internal Reorganization through the end of such taxable year (calculated using the same methods, elections, conventions, U.S. federal income tax rate and similar practices used on the relevant actual federal income tax returns) but without taking into account any Basis Increases.  To the extent there are amendments to a relevant income tax return of a Venator Group member or a Final Determination affecting the U.S. federal income Taxes of the Venator Group, such amendment or Final Determination shall be treated as changing the Cumulative Adjusted Tax Liability for the taxable year during which the amendment or Final Determination occurs.

 

“Directly Owned Huntsman Assets” means any assets associated with the Other Huntsman Businesses that were (i) sold, contributed, or otherwise transferred to Huntsman or any member of the Huntsman Group as part of the Internal Reorganization and (ii) treated for a 

 

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taxable period, or portion thereof, prior to the Internal Reorganization as directly owned by any member of the Venator Group for U.S. federal income and any other applicable Tax purposes.

 

“Directly Owned Venator Assets” means any assets associated with the Pigments Business that were (i) sold, contributed, or otherwise transferred to Venator or any member of the Venator Group as part of the Internal Reorganization and (ii) treated for a taxable period, or portion thereof, prior to the Internal Reorganization, as directly owned by any member of the Huntsman Group for U.S. federal income and any other applicable Tax purposes.

 

“Effective Date” has the meaning set forth in the Separation Agreement.

 

“Estimated Tax Installment Date” means the date on which an installment of any Taxes is required to be made.

 

“Filing Party” has the meaning set forth in Section 6.1.

 

“Final Determination” means the final resolution of cash Tax liability for any Tax Item or for the Tax Liability for any taxable period, by or as a result of (i) a final decision, judgment, decree or other order by any court of competent jurisdiction that can no longer be appealed; (ii) a final settlement with the IRS, a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of other jurisdictions, which resolves the entire Tax Liability for any taxable period; (iii) any allowance of a Tax Refund in respect of an overpayment of Tax, but only after the expiration of all periods  during which such refund or credit may be recovered by the jurisdiction imposing the Tax; or (iv) any other final resolution, including by reason of the expiration of the applicable statute of limitations or the execution of a pre-filing agreement with the IRS or other Tax Authority.

 

“Group Return” means (i) any Huntsman Group Return and (ii) any Venator Group Return.

 

“Huntsman” has the meaning set forth in the introductory paragraph of this Agreement.

 

“Huntsman Group” means the Affiliated Group of which Huntsman is the common parent corporation, and any corporation or other entity which may be, may have been or may become a member of such group from time to time, but excluding, from and after the Offering Date, any member of the Venator Group.

 

“Huntsman Group Return” means (i) any Tax Return with respect to any Taxes that is filed on a consolidated, combined, unitary or similar basis wherein Venator or any member of the Venator Group joins in the filing of such Tax Return (for any taxable period or portion thereof) with Huntsman or any member of the Huntsman Group and (ii) any Tax Return of Huntsman or any member of the Huntsman Group that includes any Tax Items attributable to any Directly Owned Venator Assets.

 

“Huntsman Separate Return” means any Tax Return of Huntsman or any member of the Huntsman Group that is not a Huntsman Group Return.

 

“Huntsman Taxes” has the meaning set forth in Section 2.2.

 

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“Huntsman Tax Refunds” has the meaning set forth in Section 2.6(a).

 

“Indemnifying Party” means any Person from which an Indemnified Party is seeking indemnification pursuant to the provisions of this Agreement.

 

“Indemnified Party” means any Person which is seeking indemnification from an Indemnifying Party pursuant to the provisions of this Agreement.

 

“Independent Firm” means an internationally or national recognized, as appropriate, law firm, in the event of a dispute regarding the interpretation of this Agreement, or an internationally or national recognized, as appropriate, accounting firm, in the event of a dispute regarding calculations made pursuant to this Agreement, in each case, mutually acceptable to Huntsman and Venator.

 

“Internal Reorganization” has the meaning set forth in the Recitals of this Agreement.

 

“IPO” has the meaning set forth in the Recitals of this Agreement.

 

“IRS” means the United States Internal Revenue Service.

 

“Offering Date” means the closing date of the IPO.

 

“Other Huntsman Businesses” means any businesses of Huntsman and its subsidiaries other than the Pigments Business.

 

“Payment Period” has the meaning set forth in Section 5.3.

 

“Person” means any individual, corporation, company, association, partnership, joint venture, limited liability company, joint stock company, trust, unincorporated organization, or other entity.

 

“Pigments Business” means the manufacturing of pigments and additives that improve performance and add color to everyday items, such as paints, inks, plastics, concrete, cosmetics, pharmaceuticals, and food.

 

“Post-Offering Taxable Period” means a taxable period or portion thereof that begins after the Offering Date.

 

“Pre-Offering Taxable Period” means a taxable period or portion thereof that ends on or before the Offering Date.

 

“Separation Agreement” means the Separation Agreement, as amended from time to time, by and between Huntsman and Venator dated as of the date hereof.

 

“Straddle Period” means any taxable period that begins on or before and ends after the Offering Date.

 

“Tax” or “Taxes” means all taxes, charges, fees, imposts, levies or other assessments, including all net income, gross receipts, capital, sales, use, gains, ad valorem, value added, 

 

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transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security, unemployment, excise, severance, stamp, occupation, property and estimated taxes, custom duties, fees, assessments and charges of any kind whatsoever, together with any interest and any penalties, fines, additions to tax or additional amounts imposed by any Tax Authority and includes any liability in respect of any of the foregoing that arises by operation of law.  For the avoidance of doubt, Tax or Taxes means all liabilities giving rise to a cash tax obligation in the year of Final Determination.

 

“Tax Authority” means the IRS and any other governmental authority responsible for the administration and collection of Taxes.

 

“Tax Item” means any item of income, gain, loss, deduction, expense, credit, or other attribute that may have the effect of increasing or decreasing any Tax Liability.

 

“Tax Liabilities” means all liabilities for Taxes.

 

“Tax Refund” means any refund or credit of any cash Taxes.

 

“Tax Returns” means any and all reports, returns, declaration forms and statements (including amendments thereto) filed or required to be filed with respect to Taxes, and any attachments thereto.

 

“Transfer Taxes” has the meaning set forth in Section 2.4.

 

“Treasury Regulations” means the regulations under the Code promulgated by the United States Department of the Treasury.

 

“Venator Group” means the Affiliated Group of which Venator will be the common parent corporation immediately after the Internal Reorganization and IPO, any predecessor to any such entity, and any corporation or other entity which may become a member of such group from time to time.  For the avoidance of doubt, the Venator Group will include any legal entity which is wholly-owned, directly or indirectly, by members of the Venator Group.

 

“Venator Group Return” means any Tax Return of Venator or any member of the Venator Group that includes any Tax Items attributable to any Directly Owned Huntsman Assets, but excluding, for the avoidance of doubt, any Huntsman Group Return.

 

“Venator Separate Return” means any Tax Return of Venator or any member of the Venator Group that is not a Venator Group Return.

 

“Venator Taxes” has the meaning set forth in Section 2.1.

 

“Venator Tax Refund” has the meaning set forth in Section 2.6(b).

 

1.2                               References; Construction.

 

(a)                                 Capitalized terms not otherwise defined in this Agreement have the meaning ascribed to them in the Separation Agreement.

 

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(b)                                 The words “hereof,” “herein,” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

(c)                                  The terms defined in the singular have a comparable meaning when used in the plural, and vice versa.

 

(d)                                 References to any “Article” or “Section,” without more, are to Articles and Sections to or of this Agreement.  Unless otherwise expressly stated, clauses beginning with the term “including” or similar words set forth examples only and in no way limit the generality of the matters thus exemplified.

 

ARTICLE II
 RESPONSIBILITY FOR TAXES; ALLOCATION

 

2.1                               Venator’s Responsibility For Taxes.  Venator will be responsible for, and will indemnify Huntsman and the members of the Huntsman Group against, any Venator Taxes.  “Venator Taxes” shall be determined in good faith by Huntsman and shall equal (a) any cash Taxes reflected on a Venator Separate Return, plus (b) the excess, if any, of (i) the cash Taxes reflected on any Group Return over (ii) the hypothetical cash Tax Liability that would have been shown on such Group Return if such Group Return had not included any Tax Items attributable to Venator, any member of the Venator Group, or any Directly Owned Venator Assets; provided, however, that “Tax Items” for purposes of this clause (ii) will not include Tax Items arising solely as a result of the Internal Reorganization.

 

2.2                               Huntsman’s Responsibility For Taxes.  Huntsman will be responsible for, and will indemnify Venator and the members of the Venator Group against, any Huntsman Taxes.  “Huntsman Taxes” shall be determined in good faith by Huntsman and shall equal (a) any cash Taxes reflected on a Huntsman Separate Return, plus (b) the excess, if any, of (i) the cash Taxes reflected on any Group Return, over (ii) the amount of such cash Taxes that are Venator Taxes.

 

2.3                               Computation of Venator Taxes and Huntsman Taxes.

 

(a)                                 Venator Taxes and Huntsman Taxes shall be calculated in connection with the filing of any relevant Tax Return, the amendment of any relevant Tax Return and the occurrence of any Final Determination.

 

(b)                                 At least fifteen (15) days prior to the filing of any Group Return (or at least fifteen (15) days prior to the filing of an amendment thereof), Huntsman shall provide Venator with a written calculation setting forth in reasonable detail the amount of any Venator Taxes with respect to such Group Return.  Venator will have the right to review and comment on such calculation, and shall be provided with reasonable access to any supporting documentation on request.  Any dispute with respect to such calculation will be resolved pursuant to Section 7.1.  If such dispute has not been resolved prior to the due date (including extensions) for filing such Tax Return (or amendment thereof), Venator will pay an amount equal to the Venator Taxes (as determined by Huntsman) to Huntsman and will be entitled to be reimbursed by Huntsman to the extent the dispute is resolved in Venator’s favor.

 

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(c)                                  Within 30 days following the amendment of any Group Return including Venator Taxes or the occurrence of a Final Determination affecting Venator Taxes, Huntsman shall provide Venator with a written revised calculation of Venator Taxes and within ten (10) days following the receipt thereof, Venator shall pay any additional Venator Taxes to Huntsman (or Huntsman shall pay to Venator any reduction in Venator Taxes previously paid pursuant to this Section 2.3). Any dispute with respect to such calculation will be resolved pursuant to Section 7.1.

 

(d)                                 For purposes of calculating Venator Taxes and Huntsman Taxes, (i) any compensation deductions relating to the issuance or vesting of Huntsman stock or the exercise of any Huntsman stock options shall be treated as relating to Huntsman Taxes, and (ii) any compensation deductions relating to the issuance or vesting of Venator stock or the exercise of any Venator stock options shall be treated as relating to Venator Taxes.

 

(e)                                  For the avoidance of doubt, to the extent that any amendment of any Tax Return or any Final Determination results in a change in the amount of any earnings and profits, previously taxed income, subpart F income inclusion or similar item, but does not result in a change in the Taxes reflected on any Group Return, such amendment or Final Determination shall not result in any payment obligation under Sections 2.1 and 2.2.  Further, subpart F income, if any, associated with the Internal Reorganization in a Pre-Offering Taxable Period shall be a Huntsman Tax irrespective of the Final Determination or amendments.

 

2.4                               Payment of Sales, Use or Similar Taxes.  Notwithstanding Sections 2.1 and 2.2, all sales, use, transfer, real property transfer, intangible, recordation, registration, documentary, stamp or similar Taxes applicable to, or resulting from the Internal Reorganization or from the sale of Venator shares in connection with the IPO (“Transfer Taxes”) will be borne one hundred percent (100%) by Huntsman.  Notwithstanding anything in this Article II to the contrary, the party required by applicable law shall remit payment for any Transfer Taxes and duly and timely file any Tax Returns required to be filed with respect to such Transfer Taxes, subject to any indemnification rights of Venator pursuant to this Section 2.4, which shall be paid by Huntsman in accordance with Section 5.1.  Venator, Huntsman, and their respective affiliates will cooperate in (a) determining the amount of such Transfer Taxes, (b) providing all requisite exemption certificates, and (c) preparing and timely filing any and all required Tax Returns for or with respect to such Transfer Taxes with any and all appropriate Tax Authorities.

 

2.5                               Carrybacks.

 

(a)                                 The carryback of any loss, credit, or other Tax Item from any Post-Offering Taxable Period shall be in accordance with the provisions of the Code and Treasury Regulations (and any applicable state, local or foreign laws).

 

(b)                                 Subject to Section 2.5(d), in the event that any member of the Venator Group realizes any loss, credit or other Tax Item in a Post-Offering Taxable Period of such member, such member may elect to carry back such Tax Item to a Pre-Offering Taxable Period or a Straddle Period of Huntsman or the Huntsman Group.  Huntsman shall cooperate with Venator and such member in amending the relevant Tax Return or seeking any Tax Refund from the appropriate Tax Authority that reasonably would result from such carryback (including by 

 

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filing an amended Tax Return), at Venator’s cost and expense.  To the extent not reflected in an adjustment to Venator Taxes pursuant to Sections 2.1 and 2.3, Venator shall be entitled to any Tax Refund that is directly and exclusively attributable to such carryback, and Huntsman shall be entitled to any Tax Refund to which Venator is not entitled pursuant to this Section 2.5(b).

 

(c)                                  Subject to Section 2.5(d), in the event that any member of the Huntsman Group realizes any loss, credit or other Tax Item in a Post-Offering Taxable Period of such member, such member may elect to carry back such loss, credit or other Tax Item to a Pre-Offering Taxable Period or a Straddle Period of such member.  Venator shall cooperate with Huntsman and such member in seeking from the appropriate Tax Authority any Tax Refund that reasonably would result from such carryback (including by filing an amended Tax Return), at Huntsman’s cost and expense.  To the extent not reflected in an adjustment to Huntsman Taxes pursuant to Sections 2.2 and 2.3, Huntsman shall be entitled to any Tax Refund resulting from such carryback.

 

(d)                                 Except as otherwise provided by applicable law, if any Tax Item of Huntsman or Venator would be eligible to be carried back or carried forward to the same Pre-Offering Taxable Period (had such carryback been the only carryback to such taxable period), any Tax Refund resulting therefrom shall be allocated between Huntsman and Venator proportionately based on the relative amounts of the Tax Refunds to which Huntsman and Venator, respectively, would have been entitled.

 

2.6                               Refunds.

 

(a)                                 Tax Refunds for Huntsman’s Account.  Huntsman shall be entitled to receive and retain all Tax Refunds with respect to any Huntsman Taxes (“Huntsman Tax Refunds”).  If Venator or any member of the Venator Group receives a Tax Refund (or any reduction in Tax Liability by means of offset or otherwise) constituting a Huntsman Tax Refund, within 15 days of receipt of such Huntsman Tax Refund, Venator shall pay to Huntsman an amount that is equal to the Huntsman Tax Refund, plus any interest paid by the applicable Tax Authority with respect to such Huntsman Tax Refund, less any Taxes payable by Venator or any Venator Group member in connection with the receipt of such Huntsman Tax Refund.

 

(b)                                 Tax Refunds for Venator’s Account.  Venator shall be entitled to receive and retain all Tax Refunds with respect to any Venator Taxes (“Venator Tax Refunds”).  If Huntsman or any member of the Huntsman Group receives a Tax Refund (or any reduction in Tax Liability by means of offset or otherwise) constituting a Venator Tax Refund, within 15 days of receipt of such Venator Tax Refund, Huntsman shall pay to Venator an amount that is equal to the Venator Tax Refund, plus any interest paid by the applicable Tax Authority with respect to such Venator Tax Refund, less any Taxes payable by Huntsman or any Huntsman Group member in connection with the receipt of such Venator Tax Refund.  For the avoidance of doubt, to the extent that any adjustments or carrybacks result in an increase in the amount of foreign tax credits available for use for U.S. federal income tax purposes by any member of the Huntsman Group, such increased utilization will not be treated as a refund or offset for purposes of this Section 2.6.

 

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(c)                                  To the extent the amount of any Tax Refund is reduced by a Tax Authority or a Tax proceeding, such reduction shall be allocated to the party to which such Tax Refund was allocated pursuant to this Section 2.6.

 

2.7                               Payment of Additional Basis Tax Benefits.

 

(a)                                 Within 10 days following the determination of the Cumulative Actual Tax Liability of the Venator Group for each Post-Offering Taxable Period ending on or before December 31, 2028, Venator shall deliver to Huntsman a schedule calculating the Additional Basis Tax Benefit, if any, along with reasonable supporting documentation with respect to such calculation (such schedule to be delivered even if the Additional Basis Tax Benefit is zero).  Any dispute with respect to such calculation will be resolved pursuant to Section 7.1.

 

(b)                                 With respect to each Post-Offering Taxable Period ending on or before December 31, 2028 in which there is an Additional Basis Tax Benefit, within 30 days following the delivery of the schedule described in Section 2.7(a) for such Post-Offering Taxable Period, (i) if the Additional Basis Tax Benefit on such schedule is greater than the Additional Basis Tax Benefit on the schedule delivered under Section 2.7(a) with respect to the immediately preceding Post-Offering Taxable Period (which, for the first Post-Offering Taxable Period shall be deemed to be zero), then Venator shall pay to Huntsman an amount equal to such increase, or (ii) if the Additional Basis Tax Benefit on such schedule is less than the Additional Basis Tax Benefit delivered with respect to the immediately preceding Post-Offering Taxable Period, then Huntsman shall pay to Venator an amount equal to such decrease.

 

ARTICLE III
 PREPARATION AND FILING OF TAX RETURNS

 

3.1                               Preparation of Tax Returns — Huntsman’s Responsibility.

 

(a)                                 Huntsman will prepare or cause to be prepared, and will file or cause to be filed, (i) all Group Returns and (ii) all Huntsman Separate Returns.

 

(b)                                 Subject to Section 2.4, Huntsman will have the right, with respect to any Tax Return described in Section 3.1(a), to determine: (i) the manner in which such Tax Return will be prepared and filed, including the method of accounting, positions, conventions, and principles of taxation to be used and the manner in which any Tax Item will be reported; (ii) whether any extensions may be requested; (iii) the elections that will be made by Huntsman, any member of the Huntsman Group, Venator, or any member of the Venator Group on such Tax Return; (iv) whether any amended Tax Returns will be filed; (v) whether any claims for refund will be made; (vi) whether any refunds will be paid by way of refund or credited against any liability for the related Tax; and (vii) whether to retain outside firms to prepare or review such Tax Returns.

 

(c)                                  Huntsman shall provide Venator with a copy of any Tax Return that includes Venator, any member of the Venator Group, or any Directly Owned Venator Assets promptly upon the filing of such Tax Returns.

 

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3.2                               Preparation of Tax Returns — Venator’s Responsibility.

 

(a)                                 Venator will prepare or cause to be prepared, and will file or cause to be filed, all Venator Separate Returns.

 

(b)                                 Venator will have the right, with respect to any Tax Return described in Section 3.2(a), to determine: (i) the manner in which such Tax Return will be prepared and filed, including the method of accounting, positions, conventions, and principles of taxation to be used and the manner in which any Tax Item will be reported; (ii) whether any extensions may be requested; (iii) the elections that will be made by Venator or any member of the Venator Group on such Tax Return; (iv) whether any amended Tax Returns will be filed; (v) whether any claims for refund will be made; (vi) whether any refunds will be paid by way of refund or credited against any liability for the related Tax; and (vii) whether to retain outside firms to prepare or review such Tax Returns.

 

3.3                               Agent.  Subject to the other applicable provisions of this Agreement, Venator hereby irrevocably designates, and agrees to cause each member of the Venator Group to so designate, Huntsman as its sole and exclusive agent and attorney-in-fact to take such action (including execution of documents) as Huntsman, in its sole discretion, may deem appropriate in any and all matters (including Audits) relating to any Tax Return described in Section 3.1(a).

 

3.4                               Manner of Tax Return Preparation.  Unless otherwise required by applicable law, the parties hereby agree to prepare and file all Tax Returns for any Pre-Offering Taxable Period and any Straddle Period in a manner consistent with past practice regarding such preparation and filings.  All Tax Returns shall be filed on a timely basis (taking into account applicable extensions) by the party responsible for filing such Tax Returns under this Agreement.

 

3.5                               Amended Returns and Claims.  Except as expressly provided herein, without the prior written consent of Huntsman, no formal or informal claim or request shall be filed with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes with respect to any Group Return, including (i) any amended Tax Return claiming an adjustment to the Taxes as reported on such Group Tax Return or, if applicable, as previously adjusted, (ii) any claim for equitable recoupment or other offset, and (iii) any claim for refund or credit of Taxes previously paid.

 

3.6                               Payment of Tax Liability.  The party responsible for filing a Tax Return under Article III will be responsible for paying to the relevant Tax Authority the entire amount of the Tax Liability reflected on such Tax Return; provided, however, that the party liable for such Tax Liability pursuant to Article II shall pay the Taxes for which it is liable to the filing party as set forth in Article V.

 

ARTICLE IV
 COVENANTS

 

4.1                               Tax Assistance and Cooperation.

 

(a)                                 Cooperation.  Huntsman and Venator will each cooperate fully (and each will cause its respective affiliates to cooperate fully) with all reasonable requests from the other party in connection with the preparation and filing of Tax Returns, claims for refund and Audits concerning issues or other matters covered by this Agreement.  The party requesting assistance 

 

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hereunder shall reimburse the other for reasonable out-of-pocket expenses incurred in providing such assistance.  Such cooperation will include, without limitation:

 

(i)                                     the retention until the expiration of the applicable statute of limitations, and extensions, if any, thereof, and the provision upon request, of Tax Returns, books, records (including information regarding ownership and income Tax basis of property), documentation and other information relating to any Tax Returns, including accompanying schedules, related work papers, and documents relating to rulings or other determinations by Tax Authorities;

 

(ii)                                  the execution of any document that may be necessary or reasonably helpful in connection with any Audit, or the filing of a Tax Return or refund claim by a member of the Huntsman Group or the Venator Group, including certification, to the best of a party’s knowledge, of the accuracy and completeness of the information it has supplied; and

 

(iii)                               the use of the party’s reasonable best efforts to obtain any documentation that may be necessary or reasonably helpful in connection with any of the foregoing.  Each party will make its employees and facilities available on a reasonable and mutually convenient basis in connection with the foregoing matters.

 

(b)                                 Failure to Perform.  If a party fails to comply with any of its obligations set forth in Section 4.1(a) upon reasonable request and notice by the other party, and such failure results in the imposition of additional Taxes, the nonperforming party will be liable in full for such additional Taxes.

 

(c)                                  Retention of Records.  A party intending to dispose of documentation of Huntsman (or any Huntsman affiliate) or Venator (or any Venator affiliate), including without limitation, books, records, Tax Returns and all supporting schedules and information relating thereto prior to the expiration of the statute of limitations (including any waivers or extensions thereof) of the taxable year or years to which such documentation relates, shall provide written notice to the other party describing the documentation to be destroyed or disposed of sixty (60) business days prior to taking such action.  The other party may arrange to take delivery of the documentation described in the notice at its expense during the succeeding sixty (60) day period.

 

ARTICLE V
 PAYMENTS

 

5.1                               Payments.  Not later than thirty (30) days following the provision of the Venator Tax or Huntsman Tax computation to Venator as provided in Section 2.3, or a Tax Return relating to Transfer Taxes filed by the Venator Group in accordance with Section 2.4, Venator will pay Huntsman or Huntsman will pay Venator, as appropriate, any payment required to be made pursuant to Article II.

 

5.2                               Treatment of Payments.  Unless otherwise required by any Final Determination, Huntsman agrees (and shall cause the Huntsman Group) and Venator agrees (and shall cause the Venator Group) to treat any payments made between parties pursuant to this Agreement as adjustments to the liabilities assumed (or deemed assumed) or consideration transferred in 

 

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connection with the acquisition by Venator as part of the Internal Reorganization of the portion of the Pigments Business to which the payment relates.

 

5.3                               Interest.  Payments pursuant to this Agreement that are not made within the period prescribed in this Agreement (the “Payment Period”) and that are not otherwise setoff against amounts owed by one party to the other party will bear interest for the period from and including the date immediately following the last date of the Payment Period through and including the date of payment at a per annum rate equal to the applicable rate for large corporate underpayments set forth in Section 6621(c) of the Code.  Such interest will be payable at the same time as the payment to which it relates and will be calculated on the basis of a year of 365 days and the actual number of days for which due.

 

ARTICLE VI
 AUDITS AND TAX PROCEEDINGS

 

6.1                               In General.  Except as otherwise provided in this Agreement, the party filing a Tax Return (the “Filing Party”) will have the exclusive right, in its sole discretion, to control, contest, and represent the interests of Huntsman, any member of the Huntsman Group, Venator, and any member of the Venator Group in any Audit relating to such Tax Return and to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any such Audit.  The Filing Party’s rights will extend to any matter pertaining to the management and control of an Audit, including execution of waivers, choice of forum, scheduling of conferences and the resolution of any Tax Item.  Any costs incurred in handling, settling, or contesting an Audit will be borne by the Filing Party.

 

6.2                               Notice.  As soon as practicable after a party receives a written notice from a Tax Authority of a proposed adjustment to a Tax Item for a Pre-Offering Taxable Period or a Straddle Period (irrespective of whether such proposed adjustment would reasonably be expected to give rise to an indemnification obligation or other liability (including a liability for Tax) under this Agreement), such party shall notify the other party of such proposed adjustment, and thereafter shall promptly forward to the other party copies of notices and material communications with any Tax Authority relating to such proposed adjustment; provided, however, that the failure to provide such notice will not release the Indemnifying Party from any of its obligations under this Agreement except to the extent that such Indemnifying Party is materially prejudiced by such failure.

 

ARTICLE VII
 MISCELLANEOUS

 

7.1                               Dispute Resolution.  In the event that Huntsman and Venator disagree as to the amount or calculation of any payment to be made under this Agreement, or the interpretation or application of any provision under this Agreement, the parties will attempt in good faith to resolve such dispute.  If such dispute is not resolved within ninety (90) business days following the commencement of the dispute, Huntsman and Venator will jointly retain an Independent Firm, reasonably acceptable to both parties, to resolve the dispute; provided, however, that in order to pursue any such dispute resolution under this Section 7.1, the owing party shall either (a) first pay to the owed party, or place in an escrow reasonably satisfactory to the owed party 

 

12

 

pending resolution of such dispute, an amount equal to the payment which is the subject of such dispute, or (b) deliver to the owed party a written opinion of an independent law or accounting firm reasonably acceptable to both parties, substantially to the effect that with respect to such dispute the owing party is more likely than not to prevail in its entirety in the dispute resolution proceeding.  The Independent Firm will act as an arbitrator to resolve all points of disagreement and its decision will be final and binding upon all parties involved.  Following the decision of the Independent Firm, Huntsman and Venator will each take or cause to be taken any action necessary to implement the decision of the Independent Firm.  The fees and expenses relating to the Independent Firm will be borne by the party that does not prevail in the dispute resolution proceeding.

 

7.2                               Governing Law; Waiver of Trial by Jury.

 

(a)                                 This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of any choice of laws principles, including all matters of validity, construction, effect, enforceability, performance and remedies.

 

(b)                                 THE PARTIES EXPRESSLY WAIVE AND FOREGO ANY RIGHT TO TRIAL BY JURY.

 

7.3                               Changes in Law.  Any reference to a provision of the Code or a law of another jurisdiction will include a reference to any applicable successor provision or law.  If, due to any change in applicable law or regulations or their interpretation by any court of law or other governing body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any transaction contemplated thereby becomes impracticable or impossible, the parties hereto will use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision.

 

7.4                               Confidentiality.  Each party will hold and cause its directors, officers, employees, advisors and consultants to hold in strict confidence, unless compelled to disclose by judicial or administrative process or, in the opinion of its counsel, by other requirements of law, all information (other than any such information relating solely to the business or affairs of such party) concerning the other parties hereto furnished to it by such other party or its representatives pursuant to this Agreement (except to the extent that such information can be shown to have been (a) in the public domain through no fault of such party, (b) later lawfully acquired from other sources not known to be under a duty of confidentiality by the party to which it was furnished, or (c) independently developed), and each party will not release or disclose such information to any other Person, except its directors, officers, employees, auditors, attorneys, financial advisors, bankers and other consultants who will be advised of and agree to be bound by the provisions of this Section 7.4.  Each party will be deemed to have satisfied its obligation to hold confidential information concerning or supplied by the other party if it exercises the same care as it takes to preserve confidentiality for its own similar information.

 

13

 

7.5                               Amendment, Modification, or Termination.  This Agreement may be amended, modified, supplemented or terminated only by a written agreement signed by all of the parties hereto.

 

7.6                               Term/Time Limit for Claims.  This Agreement shall commence on the date hereof and shall continue in effect until otherwise agreed to in writing by Huntsman and Venator, or their successors; provided, however, this Agreement otherwise shall terminate 90 days after the expiration of the statute of limitations with respect to all the Group Returns, Huntsman Separate Returns and Venator Separate Returns addressed in this Agreement.  Notwithstanding the forgoing, this Agreement shall not terminate until all obligations and liabilities of the parties arising under this Agreement have been paid in full, including payments under Section 2.7.

 

7.7                               Notices.  All notices and other communications required or permitted to be given hereunder shall be in writing and will be deemed given upon (a) a transmitter’s confirmation of a receipt of a facsimile transmission (but only if followed by confirmed delivery of a standard overnight courier the following business day or if delivered by hand the following business day), (b) confirmed delivery of a standard overnight courier or when delivered by hand or (c) the expiration of five business days after the date mailed by certified or registered mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other addresses for a party as may be specified by like notice):

 

If to Huntsman or any member of the Huntsman Group, to:

 

Huntsman Corporation

10003 Woodloch Forest Drive

The Woodlands, Texas 77380

Attention: General Counsel

 

If to Venator or any member of the Venator Group, to:

 

Venator Materials PLC

10001 Woodloch Forest Drive

The Woodlands, Texas 77380

Attention: General Counsel

 

or to such other address as any party hereto may have furnished to the other parties by a notice in writing in accordance with this Section 7.7.

 

7.8                               Complete Agreement.  This Agreement, with the other transaction agreements and other documents referred to herein, constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all previous negotiations, commitments and writings with respect to such subject matter as well as any prior tax sharing agreements or arrangements between a member of the Huntsman Group, on the one hand, and a member of the Venator Group, on the other hand.  In the case of any conflict between the terms of this Agreement and the terms of the Separation Agreement or any other transaction agreement, the terms of this Agreement will be applicable.

 

14

 

7.9                               Interpretation.  The Article and Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the parties hereto and should not in any way affect the meaning or interpretation of this Agreement.

 

7.10                        Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 

7.11                        Successors and Assigns; No Third-Party Beneficiaries.  This Agreement and all of the provisions hereof will be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns, but neither this Agreement nor any of the rights, interests and obligations hereunder may be assigned by any party hereto without the prior written consent of the other parties.  This Agreement is solely for the benefit of Huntsman and Venator and their respective subsidiaries, affiliates, successors and assigns, and is not intended to confer upon any third parties any rights or remedies hereunder.

 

7.12                        Authorization.  Each of Huntsman and Venator hereby represents and warrants that it has the power and authority to execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such party, that this Agreement constitutes a legal, valid and binding obligation of each such party and that the execution, delivery and performance of this Agreement by such party does not contravene or conflict with any provision of law or of its charter or bylaws or any agreement, instrument or order binding on such party.

 

7.13                        Arbitration.  To the extent any dispute under this Agreement cannot be resolved pursuant to Section 7.1, Huntsman and Venator shall resolve such dispute pursuant to the arbitration provisions set forth in Article IV of the Separation Agreement.

 

7.14                        Waiver of Jury Trial.  Each of the parties hereto irrevocably and unconditionally waives all right to trial by jury in any litigation, claim, action, suit, arbitration, inquiry, proceeding, investigation or counterclaim (whether based in contract, tort or otherwise) arising out of or relating to this Agreement or the actions of the parties hereto in the negotiation, administration, performance and enforcement thereof.

 

7.15                        Waivers.  Except as provided in this Agreement, no action taken pursuant to this Agreement, including any investigation by or on behalf of any party, will be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement.  The waiver by any party hereto of a breach of any provision hereunder will not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereunder.

 

7.16                        Specific Performance.  The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms hereof and that the parties will be entitled to specific performance of the terms hereof, in addition to any other remedy at law or in equity.

 

7.17                        Setoff.  All payments to be made by any party under this Agreement may be netted against payments due to such party under this Agreement, but otherwise shall be made without setoff, counterclaim or withholding, all of which are hereby expressly waived.

 

15

 

7.18                        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 other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and will 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.

 

7.19                        Effective Date.  This Agreement is effective as of the Effective Date.

 

[Signature Page Follows]

 

16

 

IN WITNESS WHEREOF, each of the parties has caused this Tax Matters Agreement to be executed on its behalf by its officers thereunto duly authorized, all as of the day and year first written above.

 

	
 
    	
HUNTSMAN   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kevin   C. Hardman
    
	
 
    	
Name:
    	
Kevin C.   Hardman
    
	
 
    	
Title:
    	
Vice   President, Tax
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VENATOR MATERIALS   PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kurt   D. Ogden
    
	
 
    	
Name:
    	
Kurt D.   Ogden
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    

 

[Signature Page to Tax Matters Agreement]Exhibit 10.3

 

Execution Version

 

 

 

EMPLOYEE MATTERS AGREEMENT

 

BY AND BETWEEN

 

HUNTSMAN CORPORATION

 

AND

 

VENATOR MATERIALS PLC

 

DATED AS OF AUGUST 7, 2017

 

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I
    
	
DEFINITIONS
    
	
 
    	
 
    	
 
    
	
Section 1.1
    	
Definitions
    	
1
    
	
Section 1.2
    	
Interpretation
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    
	
GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
    
	
 
    	
 
    	
 
    
	
Section 2.1
    	
General Principles
    	
8
    
	
Section 2.2
    	
Service Credit
    	
10
    
	
Section 2.3
    	
Plan Administration
    	
10
    
	
Section 2.4
    	
Retention of Venator Group Plans
    	
11
    
	
Section 2.5
    	
No Duplication or Acceleration of   Benefits
    	
11
    
	
Section 2.6
    	
No Expansion of Participation
    	
11
    
	
Section 2.7
    	
Venator Group Decisions
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    
	
ASSIGNMENT OF EMPLOYEES
    
	
 
    	
 
    	
 
    
	
Section 3.1
    	
Active Employees
    	
11
    
	
Section 3.2
    	
Employment Law Obligations
    	
14
    
	
Section 3.3
    	
Employee Records
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    
	
EQUITY AND LONG-TERM INCENTIVE AWARDS
    
	
 
    	
 
    	
 
    
	
Section 4.1
    	
General Principles
    	
16
    
	
Section 4.2
    	
Equity Award Treatment
    	
17
    
	
Section 4.3
    	
Section 16(b) of the   Securities Exchange Act; Code Sections 162(m) and 409A
    	
20
    
	
Section 4.4
    	
Liabilities for Settlement of   Awards
    	
20
    
	
Section 4.5
    	
Form S-8
    	
20
    
	
Section 4.6
    	
Tax Reporting and Withholding for   Awards
    	
20
    
	
Section 4.7
    	
Approval of Venator New Equity   Plan
    	
21
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    
	
BONUS AND SHORT-TERM INCENTIVE PLANS
    
	
 
    	
 
    	
 
    
	
Section 5.1
    	
Establishment of Venator   Short-Term Incentive Plans
    	
21
    
	
Section 5.2
    	
Treatment of Short-Term   Incentives for Year of IPO
    	
21
    
	
Section 5.3
    	
Plan Liabilities
    	
21
    

 

i

 

	
ARTICLE VI
    
	
QUALIFIED DEFINED BENEFIT PLANS
    
	
 
    	
 
    	
 
    
	
Section 6.1
    	
Retention of Venator Group   Defined Benefit Plans
    	
22
    
	
Section 6.2
    	
Huntsman Defined Benefit Plans
    	
22
    
	
Section 6.3
    	
Huntsman Europe BVBA Belgium
    	
22
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    
	
QUALIFIED DEFINED CONTRIBUTION PLANS
    
	
 
    	
 
    	
 
    
	
Section 7.1
    	
Establishment of the Venator   401(k) Plan
    	
23
    
	
Section 7.2
    	
Venator Employee Account Balances
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    
	
NONQUALIFIED DEFERRED COMPENSATION PLANS
    
	
 
    	
 
    	
 
    
	
Section 8.1
    	
Establishment of Venator Deferred   Compensation Plans
    	
23
    
	
Section 8.2
    	
Liability and Responsibility
    	
24
    
	
 
    	
 
    	
 
    
	
ARTICLE IX
    
	
WELFARE PLANS
    
	
 
    	
 
    	
 
    
	
Section 9.1
    	
Establishment of Venator Welfare   Plans
    	
24
    
	
Section 9.2
    	
Special Provisions Relating to Post-Retirement   Welfare Plans
    	
24
    
	
Section 9.3
    	
Transitional Matters Under   Venator Welfare Plans
    	
25
    
	
Section 9.4
    	
Benefit Elections and   Designations and Continuity of Benefits
    	
25
    
	
Section 9.5
    	
Insurance Contracts
    	
27
    
	
Section 9.6
    	
Third-Party Vendors
    	
27
    
	
 
    	
 
    	
 
    
	
ARTICLE X
    
	
WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION
    
	
 
    	
 
    	
 
    
	
Section 10.1
    	
Venator Workers’ and Unemployment   Compensation
    	
28
    
	
Section 10.2
    	
Assignment of Contribution Rights
    	
28
    
	
Section 10.3
    	
Collateral
    	
28
    
	
Section 10.4
    	
Cooperation
    	
28
    
	
 
    	
 
    	
 
    
	
ARTICLE XI
    
	
SEVERANCE
    
	
 
    	
 
    	
 
    
	
Section 11.1
    	
Establishment of Venator   Severance Program
    	
28
    
	
Section 11.2
    	
Liability for Severance
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE XII
    
	
BENEFIT ARRANGEMENTS AND OTHER MATTERS
    
	
 
    	
 
    	
 
    
	
Section 12.1
    	
Accrued Time Off
    	
29
    
	
Section 12.2
    	
Leaves of Absence
    	
29
    

 

ii

 

	
Section 12.3
    	
Restrictive Covenants in   Employment and Other Agreements
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE XIII
    
	
GENERAL PROVISIONS
    
	
 
    	
 
    	
 
    
	
Section 13.1
    	
Preservation of Rights to Amend
    	
29
    
	
Section 13.2
    	
Confidentiality
    	
29
    
	
Section 13.3
    	
Administrative   Complaints/Litigation
    	
30
    
	
Section 13.4
    	
Reimbursement and Indemnification
    	
30
    
	
Section 13.5
    	
Costs of Compliance with   Agreement
    	
31
    
	
Section 13.6
    	
Fiduciary Matters
    	
31
    
	
Section 13.7
    	
Entire Agreement
    	
31
    
	
Section 13.8
    	
Binding Effect; No Third-Party   Beneficiaries; Assignment
    	
31
    
	
Section 13.9
    	
Amendment; Waivers
    	
31
    
	
Section 13.10
    	
Remedies Cumulative
    	
32
    
	
Section 13.11
    	
Notices
    	
32
    
	
Section 13.12
    	
Counterparts
    	
32
    
	
Section 13.13
    	
Severability
    	
32
    
	
Section 13.14
    	
Governing Law; Waiver of Trial by   Jury
    	
32
    
	
Section 13.15
    	
Dispute Resolution
    	
32
    
	
Section 13.16
    	
Performance
    	
33
    
	
Section 13.17
    	
Construction
    	
33
    
	
Section 13.18
    	
Effect if IPO Does Not Occur
    	
33
    

 

iii

 

EMPLOYEE MATTERS AGREEMENT

 

This EMPLOYEE MATTERS AGREEMENT, made and entered into as of August 7, 2017 to be effective as of the Effective Date, is by and between Huntsman Corporation, a Delaware corporation (“Huntsman”), and Venator Materials PLC, a public company limited by shares and incorporated under the laws of England and Wales (“Venator”). Huntsman and Venator are also referred to in this Agreement individually as a “Party” and collectively as the “Parties.”  Capitalized terms used herein not otherwise defined shall have the respective meanings assigned to them in Section 1.1.

 

R E C I T A L S

 

WHEREAS, the Huntsman Board has determined that the separation (the “Separation”) and eventual IPO of the Venator Business is in the best interests of Huntsman, Venator and the Huntsman shareholders;

 

WHEREAS, concurrently herewith, Huntsman and Venator will enter into the Separation and Distribution Agreement, dated as of the date hereof (the “Separation Agreement”), in connection with the Separation;

 

WHEREAS, the Separation Agreement also provides for the execution and delivery of certain other agreements, including this Agreement, in order to facilitate and provide for the Separation and IPO of Venator; and

 

WHEREAS, in order to ensure an orderly transition under the Separation Agreement, it will be necessary for the Parties to allocate between them Assets, Liabilities and responsibilities with respect to certain employee compensation and benefit plans and programs, and certain other employment-related matters.

 

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.1                                    Definitions.  As used in this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“Adjusted Huntsman RSUs” has the meaning set forth in Section 4.2(e).

 

“Affiliate” has the meaning set forth in the Separation Agreement.

 

“Agreement” means this Employee Matters Agreement, together with all Schedules hereto and all amendments, modifications, and changes hereto entered into pursuant to Section 13.9.

 

1

 

“Ancillary Agreements” has the meaning set forth in the Separation Agreement.

 

“ASC 718” means Accounting Standards Codification Topic 718, Compensation — Stock Compensation, or any successor accounting standard.

 

“Assets” has the meaning set forth in the Separation Agreement.

 

“Benefit Management Records” has the meaning set forth in Section 3.3(b).

 

“Benefit Plan” means any contract, agreement, policy, practice, program, plan, trust, commitment or arrangement (whether written or unwritten) providing for benefits, perquisites or compensation of any nature to any Employee, or to any family member, dependent, or beneficiary of any Employee, including pension plans, thrift plans, supplemental pension plans and welfare plans, and contracts, agreements, policies, practices, programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits, change in control protections or benefits, travel and accident, life, disability and accident insurance, tuition reimbursement, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences and holidays.

 

“COBRA” means the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et seq. of ERISA and at Section 4980B of the Code.

 

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

 

“Collective Bargaining Agreements” has the meaning set forth in Section 3.1(i).

 

“Defined Benefit Transfer Date” has the meaning set forth in Section 6.3.

 

“Dividend Accounts” has the meaning set forth in Section 4.2(f).

 

“Effective Date” has the meaning set forth in the Separation Agreement.

 

“Employee” means any Huntsman Group Employee, Former Huntsman Group Employee or Venator Group Employee.

 

“Employee Transfer Date” means the legal Employee transfer date, which may differ among and between certain groups of Employees, but which is expected to be on or around May 1, 2017.

 

“Equity Award Ratio” means the ratio (as expressed as a quotient) determined by dividing the Huntsman VWAP by the Venator VWAP.

 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Former Huntsman Group Employees” means all former employees of the Huntsman Group.

 

“Former Venator Group Employees” means all former employees of the Venator Group.

 

2

 

“FSA Participation Period” has the meaning set forth in Section 9.4(b).

 

“HIPAA” means the U.S. Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations promulgated thereunder and any similar foreign, state, provincial or local Law.

 

“HSA Participation Period” has the meaning set forth in Section 9.4(c).

 

“Huntsman” has the meaning set forth in the preamble to this Agreement.

 

“Huntsman Benefit Plan” means any Benefit Plan sponsored or maintained by a member of the Huntsman Group immediately prior to the Plan Transfer Date or Employee Transfer Date, as applicable, other than any Benefit Plan sponsored or maintained exclusively by a member of the Venator Group.

 

“Huntsman Common Stock” means a share of Huntsman’s common stock, par value $0.01.

 

“Huntsman Deferred Compensation Plan” means the Amended and Restated Huntsman Supplemental Savings Plan, as amended.

 

“Huntsman Defined Benefit Plans” means all Benefit Plans sponsored by one or more members of the Huntsman Group that are subject to Title IV of ERISA, other than the Venator Group Defined Benefit Plans.

 

“Huntsman Defined Contribution Plans” means all Benefit Plans sponsored by one or more members of the Huntsman Group that provide retirement benefits that are subject to Code Section 401(a), but not Title IV of ERISA, or applicable analogous foreign jurisdiction laws.

 

“Huntsman Director” means any individual who is a non-employee member of the Board of Directors of Huntsman immediately prior to the Effective Date.

 

“Huntsman Entity” means any member of the Huntsman Group.

 

“Huntsman Equity Plans” means the Huntsman Stock Incentive Plan, the Huntsman Corporation 2016 Stock Incentive Plan, and any other plan or agreement sponsored or maintained by Huntsman as of the Effective Date pursuant to which equity or other long-term incentive awards are or may be granted (in each case, as amended from time to time).

 

“Huntsman Europe BVBA Belgium” means the defined benefit plan maintained by a member of the Huntsman Group for the benefit of both Huntsman Group Employees and Venator Group Employees.

 

“Huntsman Group” has the meaning set forth in the Separation Agreement.

 

“Huntsman Group Employees” has the meaning set forth in Section 3.1(b).

 

3

 

“Huntsman LTI Awards” means the Huntsman Options, the Huntsman Phantom Shares, the Huntsman Restricted Stock and the Huntsman Restricted Stock Units.

 

“Huntsman Option” means an award granted to a Venator Group Employee pursuant to the Huntsman Equity Plans providing the holder with an option to purchase a share of Huntsman Common Stock.

 

“Huntsman Phantom Shares” means an award granted to a Venator Group Employee pursuant to the Huntsman Equity Plans providing the holder with a phantom share of Huntsman Common Stock, whether designed to be settled in cash or shares of Huntsman Common Stock.

 

“Huntsman Restricted Stock” means an award granted to a Venator Group Employee pursuant to the Huntsman Equity Plans providing the holder with a restricted share of Huntsman Common Stock.

 

“Huntsman Restricted Stock Unit” or “Huntsman RSU” means an award granted to a Venator Group Employee pursuant to the Huntsman Equity Plans providing the holder with a restricted stock unit based on Huntsman Common Stock, whether designed to be settled in cash or shares of Huntsman Common Stock, and whether subject to time-based or performance-based vesting conditions.

 

“Huntsman Retiree Medical Plan” means the Welfare Plan sponsored or maintained by any one or more members of the Huntsman Group as of immediately prior to the Plan Transfer Date or Employee Transfer Date, as applicable, for the benefit of retired employees of the Huntsman Group.

 

“Huntsman Salary Deferral Plan” means the defined contribution plan sponsored by the members of the Huntsman Group.

 

“Huntsman Short-Term Incentive Plans” means those short-term incentive plans sponsored by the members of the Huntsman Group.

 

“Huntsman VWAP” means the volume weighted average price of Huntsman Common Stock for a ten (10) trading day period, starting with the opening of trading on the eleventh (11th) trading day prior to the Venator Trading Day to the closing of trading on the last trading day prior to the Venator Trading Day.

 

“Huntsman Welfare Plan” means any Welfare Plan sponsored or maintained by any one or more members of the Huntsman Group as of immediately prior to the Plan Transfer Date or Employee Transfer Date, as applicable, other than the Huntsman Retiree Medical Plan.

 

“IPO” means the initial public offering of Venator Ordinary Shares pursuant to a registration statement on Form S-1 to be filed with the Securities and Exchange Commission.

 

“Law” has the meaning set forth in the Separation Agreement.

 

“Liabilities” has the meaning set forth in the Separation Agreement.

 

4

 

“Party” or “Parties” has the meaning set forth in the preamble to this Agreement.

 

“Person” has the meaning set forth in the Separation Agreement.

 

“Plan Transfer Date” means that date that Venator will establish and/or accept transfer of each of the Venator Benefit Plans, which date may differ among and between such Venator Benefit Plans, but which is expected to be on or around July 1, 2017.

 

“Separation” has the meaning set forth in the recitals to this Agreement.

 

“Separation Agreement” has the meaning set forth in the recitals to this Agreement.

 

“Subsidiary” has the meaning set forth in the Separation Agreement.

 

“Transfer Documents” has the meaning set forth in the Separation Agreement.

 

“U.S.” means the United States of America.

 

“Venator” has the meaning set forth in the preamble to this Agreement.

 

“Venator 401(k) Plan” has the meaning set forth in Section 7.1.

 

“Venator Benefit Plan” means any Benefit Plan sponsored or maintained by a member of the Venator Group immediately following the Plan Transfer Date or Employee Transfer Date, as applicable.

 

“Venator Business” has the meaning set forth in the Separation Agreement.

 

“Venator Deferred Compensation Beneficiaries” has the meaning set forth in Section 8.1.

 

“Venator Deferred Compensation Plan” has the meaning set forth in Section 8.1.

 

“Venator Director” means any individual who is a non-employee member of the Board of Directors of Venator immediately after the Effective Date.

 

“Venator Entity” means any member of the Venator Group.

 

“Venator Europe BVBA Belgium” has the meaning set forth in Section 6.3.

 

“Venator Europe BVBA Belgium Participants” has the meaning set forth in Section 9.4(b).

 

“Venator FSA” has the meaning set forth in Section 9.4(b).

 

“Venator Group” has the meaning forth in the Separation Agreement.

 

5

 

“Venator Group Defined Benefit Plan” means each Benefit Plan sponsored by one or more members of the Venator Group solely for the benefit of Venator Employees that is subject to Title IV of ERISA, other than the Huntsman Defined Benefit Plans.

 

“Venator Group Employees” has the meaning set forth in Section 3.1(a).

 

“Venator HSA” has the meaning set forth in Section 9.4(c).

 

“Venator LTI Awards” means the Venator Options and Venator Restricted Stock Units.

 

“Venator New Equity Plan” means the plan adopted by Venator, in accordance with Section 4.7, under which the Venator LTI Awards described in Article IV shall be issued.

 

“Venator Options” has the meaning set forth in Section 4.2(b).

 

“Venator Ordinary Shares” has the meaning set forth in the Separation Agreement.

 

“Venator Pension Assets” has the meaning set forth in Section 6.3.

 

“Venator Restricted Stock Unit” or “Venator RSU” has the meaning set forth in Section 4.2(c).

 

“Venator Retiree Welfare Plan” has the meaning set forth in Section 9.2.

 

“Venator Retiree Welfare Plan Participants” has the meaning set forth in Section 9.2.

 

“Venator Short-Term Incentive Plans” has the meaning set forth in Section 5.1.

 

“Venator Trading Day” means the first day of public trading of the Ordinary Shares on the New York Stock Exchange, which is expected to be on or around August 3, 2017.

 

“Venator VWAP” means the volume weighted average price of Venator Ordinary Shares for the ten (10) trading day period, starting with the opening of trading on the Venator Trading Day to the closing of trading on the tenth (10th) day of public trading of the Ordinary Shares.

 

“Venator Welfare Plan Participants” has the meaning set forth in Section 9.1.

 

“Venator Welfare Plans” has the meaning set forth in Section 9.1.

 

“WARN” means the U.S. Worker Adjustment and Retraining Notification Act, as amended, and the regulations promulgated thereunder, and any applicable foreign, state, provincial or local Law equivalent.

 

“Welfare Plan” means, where applicable, a “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental, vision, and mental health and substance abuse), disability benefits, or life, accidental death and disability, and business travel insurance, pre-tax premium conversion benefits, dependent care 

 

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assistance programs, employee assistance programs, paid time off programs, contribution funding toward a health savings account or flexible spending accounts.

 

Section 1.2                                    Interpretation.  In this Agreement, unless the context clearly indicates otherwise:

 

(a)                                 words used in the singular include the plural and words used in the plural include the singular;

 

(b)                                 if a word or phrase is defined in this Agreement, its other grammatical forms, as used in this Agreement, shall have a corresponding meaning;

 

(c)                                  reference to any gender includes the other gender and the neuter;

 

(d)                                 the words “include,” “includes” and “including” shall be deemed to be followed by the words without limitation”;

 

(e)                                  the words “shall” and “will” are used interchangeably and have the same meaning;

 

(f)                                   the word “or” shall have the inclusive meaning represented by the phrase “and/or”;

 

(g)                                  relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means “through and including”;

 

(h)                                 whenever this Agreement refers to a number of days, such number shall refer to calendar days;

 

(i)                                     accounting terms used herein have the meanings historically ascribed to them by Huntsman and its Subsidiaries, including Venator for this purpose, in its and their internal accounting and financial policies and procedures in effect immediately prior to the date of this Agreement;

 

(j)                                    reference to any Article, Section or Schedule means such Article or Section of, or such Schedule to, this Agreement, as the case may be, and references in any Section or definition to any clause means such clause of such Section or definition;

 

(k)                                 the words “this Agreement,” “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision of this Agreement;

 

(l)                                     the term “commercially reasonable efforts” means efforts which are commercially reasonable to enable a Party, directly or indirectly, to satisfy a condition to or otherwise assist in the consummation of a desired result and which do not require the performing Party to expend funds or assume Liabilities other than expenditures and Liabilities which are customary and reasonable in nature and amount in the context of a series of related transactions similar to the IPO;

 

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(m)                             reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and not prohibited by this Agreement;

 

(n)                                 reference to any Law (including statutes and ordinances) means such Law (including any and all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;

 

(o)                                 references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement; a reference to such Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates following the IPO and any reference to a third party shall be deemed to mean a Person who is not a Party or an Affiliate of a Party;

 

(p)                                 if there is any conflict between the provisions of the main body of this Agreement and the Schedules hereto, the provisions of the main body of this Agreement shall control unless explicitly stated otherwise in such Schedule;

 

(q)                                 unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the U.S.;

 

(r)                                    the titles to Articles and headings of Sections contained in this Agreement, in any Schedule and exhibit and in the table of contents to this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement; and

 

(s)                                   any portion of this Agreement obligating a Party to take any action or refrain from taking any action, as the case may be, shall mean that such Party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as the case may be.

 

ARTICLE II
 GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

 

Section 2.1                                    General Principles.

 

(a)                                 Cessation of Participation in Huntsman Benefit Plans by Venator Group Employees.  Each member of the Huntsman Group and each member of the Venator Group shall take any and all reasonable action as shall be necessary or appropriate so that active participation in the Huntsman Benefit Plans by all Venator Group Employees shall terminate in connection with the Plan Transfer Date (or such later Employee Transfer Date) as and when provided under this Agreement (or, if not specifically provided under this Agreement, as of the Effective Date).

 

(b)                                 Certain Obligations of the Huntsman Group.  Except as otherwise provided in this Agreement, effective as of the Plan Transfer Date (or such later Employee Transfer Date), one or more members of the Venator Group (as determined by Venator) shall assume or continue the sponsorship of, and no member of the Huntsman Group shall have any 

 

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further Liability with respect to or under, the following agreements, obligations and Liabilities, and Venator shall indemnify each member of the Huntsman Group, and the officers, directors, and employees of each member of the Huntsman Group, and hold them harmless with respect to such agreements, obligations or Liabilities:

 

(i)                                     any and all individual agreements entered into between any member of the Huntsman Group or Venator Group and any Venator Group Employee;

 

(ii)                                  any and all agreements entered into between any member of the Huntsman Group or Venator Group and any individual who is a consultant or an independent contractor providing services primarily for the benefit of the Venator Business;

 

(iii)                               any and all collective bargaining agreements, collective agreements and trade union or works council agreements entered into between any member of the Huntsman Group or Venator Group and any labor union, trade union, works council or other representative of Venator Group Employees;

 

(iv)                              any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), commissions, bonuses, payment owed for any vacation or paid time off entitlement and any other compensation or benefits payable to or on behalf of any Venator Group Employees on or after the Employee Transfer Date, without regard to when such wages, salaries, incentive compensation, commissions, bonuses, or other compensation or benefits are or may have been earned;

 

(v)                                 any and all Liabilities and other obligations relating to any Benefit Plan that is sponsored, maintained or contributed to exclusively by a member or members of the Venator Group or for the benefit of one or more Venator Group Employees (whether or not such Liabilities relate to Venator Group Employees);

 

(vi)                              any and all expenses and obligations related to relocation, repatriation, transfers or similar items incurred by or owed to any Venator Group Employees that have not been paid prior to the Employee Transfer Date;

 

(vii)                           any and all immigration-related, visa, work application or similar rights, obligations and Liabilities related to any Venator Group Employees;

 

(viii)                        any employment tax, superannuation, employment insurance, pension plan or similar Liabilities incurred or owed with respect to Venator Group Employees; and

 

(ix)                              any and all Liabilities and obligations whatsoever with respect to claims made by, on behalf of, or with respect to any Venator Group Employees or independent contractors providing services primarily for the Venator Business including any such Liability or obligation in connection with any labor or employment practice, workers’ compensation claims, labor or employment Laws, employee benefit plan, program or policy not otherwise expressly retained or assumed by any member of the Huntsman Group pursuant to this Agreement, including such Liabilities relating to 

 

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actions or omissions of or by any member of the Venator Group or any officer, director, employee or agent thereof on or prior to the Effective Date.

 

(c)                                  Certain Obligations of the Huntsman Group.  Except as otherwise provided in this Agreement, effective as of the Plan Transfer Date (or such later Employee Transfer Date), no member of the Venator Group shall have any further Liability for, and Huntsman shall indemnify each member of the Venator Group, and the officers, directors, and employees of each member of the Venator Group, and hold them harmless with respect to any and all Liabilities and obligations whatsoever with respect to, claims made by or with respect to any Huntsman Group Employees and Former Huntsman Group Employees in connection with any employee benefit plan, program or policy not otherwise retained or assumed by any member of the Venator Group pursuant to this Agreement, including such Liabilities relating to actions or omissions of or by any member of the Huntsman Group or any officer, director, employee or agent thereof on, prior to or after the Effective Date.

 

Section 2.2                                    Service Credit.

 

(a)                                 Service for Participation, Eligibility, Vesting, and Benefit Level Purposes.  Except as otherwise provided in any other provision of this Agreement, the Venator Benefit Plans shall, and Venator shall cause each member of the Venator Group to, recognize each Venator Group Employee’s full service credit for purposes of participation, eligibility, vesting and determination of level of benefits under any Venator Benefit Plan for such Venator Group Employee’s service with any member of the Huntsman Group on or prior to the Employee Transfer Date, to the same extent such service would be credited if it had been performed for a member of the Venator Group.

 

(b)                                 Evidence of Prior Service.  Notwithstanding anything to the contrary, but subject to applicable Law, upon reasonable request by one Party to the other Party, the first Party will provide to the other Party copies of any records available to the first Party to document such service, plan participation and membership of such Employees and cooperate with the first Party to resolve any discrepancies or obtain any missing data for purposes of determining benefit eligibility, participation, vesting and determination of level of benefits with respect to any Employee.

 

Section 2.3                                    Plan Administration.

 

(a)                                 Transition Services.  The Parties acknowledge that the Huntsman Group or the Venator Group may provide administrative services for certain of the other Party’s benefit programs for a transitional period under the terms of a transition services agreement. The Parties agree to enter into a business associate or comparable agreement (if required by HIPAA or other applicable health information or privacy Laws) in connection with such transition services agreement.

 

(b)                                 Participant Elections and Beneficiary Designations.  All participant elections and beneficiary designations made under any Huntsman Benefit Plan with respect to which Assets or Liabilities are transferred or allocated to plans maintained by a member of the Venator Group in accordance with this Agreement shall continue in effect under the applicable 

 

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Venator Benefit Plan, including deferral, investment and payment form elections, dividend elections, coverage options and levels, beneficiary designations and the rights of alternate payees under qualified domestic relations orders, to the extent allowed by applicable Law.

 

Section 2.4                                    Retention of Venator Group Plans.  In the event any Benefit Plan is sponsored, maintained or contributed to exclusively by a member or members of the Venator Group or exclusively for the benefit of one or more Venator Group Employees, from and after the Plan Transfer Date, Venator shall cause a member of the Venator Group to assume or retain sponsorship of such Benefit Plan and all Liabilities relating thereto (whether or not such Liabilities relate to Venator Group Employees).

 

Section 2.5                                    No Duplication or Acceleration of Benefits.  Notwithstanding anything to the contrary in this Agreement, the Separation Agreement or any Transfer Document, no participant in the Venator Benefit Plans shall receive benefits that duplicate benefits provided by the corresponding Huntsman Benefit Plan or arrangement. Furthermore, unless expressly provided for in this Agreement, the Separation Agreement or in any Transfer Document or required by applicable Law, no provision in this Agreement shall be construed to create any right to accelerate vesting or entitlements to any compensation or Benefit Plan on the part of any Huntsman Group Employee, Former Huntsman Group Employee, Huntsman Director, Venator Director, Venator Group Employee or Former Venator Group Employee.

 

Section 2.6                                    No Expansion of Participation.  Unless otherwise expressly provided in this Agreement, as otherwise determined or agreed to by Huntsman and Venator, as required by applicable Law, or as explicitly set forth in a Venator Benefit Plan, a Venator Group Employee shall be entitled to participate in the Venator Benefit Plans only to the extent that such Employee was entitled to participate in the corresponding Huntsman Benefit Plan or Benefit Plan sponsored by a member of the Venator Group as in effect as of the Plan Transfer Date (or such later Employee Transfer Date), with it being the intent of the Parties that this Agreement does not result in any expansion of the number of Venator Group Employees participating or the participation rights therein that they had prior to the Employee Transfer Date.

 

Section 2.7                                    Venator Group Decisions.  Notwithstanding anything to the contrary within this Agreement, Venator shall be responsible for all liabilities associated with severance or other benefit obligations for any Employee if such liabilities arise due to Venator or a Venator Entity failing to hire, failing to accept the transfer of, or otherwise preventing the employment of any Employee that was scheduled to become a Venator Group Employee but for whom Venator determines shall not become a Venator Group Employee.

 

ARTICLE III

 

ASSIGNMENT OF EMPLOYEES

 

Section 3.1                                    Active Employees.

 

(a)                                 Venator Group Employees.  Except as otherwise set forth in this Agreement, effective as of the Employee Transfer date, the employment of each individual (i) who is employed by Venator as of immediately prior to the Employee Transfer Date or (ii) 

 

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whose employment duties are to be exclusively related to the Venator Business immediately following the Employee Transfer Date (collectively, the “Venator Group Employees”) shall continue with a member of the Venator Group or shall be assigned and transferred to a member of the Venator Group (in each case, with such member as determined by Venator). Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation, if any, as may be necessary to reflect such assignments and transfers.

 

(b)                                 Huntsman Group Employees.  Except as otherwise set forth in this Agreement, the employment of each individual who is employed by a member of the Huntsman Group and is not a Venator Group Employee (collectively, the “Huntsman Group Employees”) shall continue with a member of the Huntsman Group or shall be assigned and transferred to a member of the Huntsman Group (in each case as determined by Huntsman). Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation, if any, as may be necessary to reflect such assignments and transfers.

 

(c)                                  Delayed Transfer Employees.  The Parties agree that the Employee Transfer Date for certain groups of Employees will differ and may occur subsequent to the relevant Plan Transfer Date and/or the Effective Date.  Notwithstanding anything to the contrary in this Agreement, any Employee whose transfer to the Venator Group is delayed will be treated as a Huntsman Group Employee for all purposes of this Agreement until their actual Employee Transfer Date.  Upon and following each Employee’s Employee Transfer Date, such Employee will be treated as a Venator Group Employee for all purposes of this Agreement.

 

(d)                                 At-Will Status.  Notwithstanding the above or any other provision of this Agreement, nothing in this Agreement shall create any obligation on the part of any member of the Huntsman Group or any member of the Venator Group to (i) continue the employment of any Employee or permit the return from a leave of absence for any period following the date of this Agreement or the Employee Transfer Date (except as required by applicable Law) or (ii) change the employment status of any Employee from “at will” (or any similar concept within a non-U.S. jurisdiction) to the extent such Employee is an “at will” employee (or similar status within a non-U.S. jurisdiction) under applicable Law.

 

(e)                                  Separation from Service.  Except as set forth on a schedule to be agreed upon by the Parties, the Parties acknowledge and agree that the IPO and the assignment, transfer or continuation of the employment of Employees as contemplated by this Section 3.1(e), (i) shall not be deemed a “separation from service” (as defined in Section 409A of the Code) of any Employee for purposes of this Agreement or any Benefit Plan of any member of the Huntsman Group or any member of the Venator Group but (ii) shall, with respect to Venator Group Employees and for purposes of the Huntsman Defined Contribution Plans, constitute a “severance from employment” (as described in Section 401(k)(2)(B) of the Code).

 

(f)                                   Not a Change of Control/Change in Control.  The Parties acknowledge and agree that neither the consummation of the IPO nor any transaction in connection with the IPO shall be deemed a “change of control,” “change in control,” or term of similar import for purposes of any Benefit Plan of any member of the Huntsman Group or any member of the Venator Group.

 

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(g)                                  Payroll Issues and Related Tax Matters.  Huntsman, or an appropriate Huntsman Entity, shall bear responsibility for payroll taxes, fringe benefit tax obligations, proper withholding, document distribution and reporting to the appropriate governmental authorities for each Huntsman Group Employee. With respect to the portion of the 2017 calendar year prior to the applicable Employee Transfer Date for each Venator Group Employee, Huntsman, or an appropriate Huntsman Entity, shall bear responsibility for payroll taxes, fringe benefit tax obligations, proper withholding, document distribution and reporting to the appropriate governmental authorities for each Venator Group Employee, including, without limitation, providing a Form W-2 to the applicable Venator Group Employees that are also Former Huntsman Employees following the end of the year in which the IPO occurs. With respect to the portion of the 2017 calendar year that begins on and after the applicable Employee Transfer Date for each Venator Group Employee, Venator, or an appropriate Venator Entity, shall bear responsibility for payroll taxes, fringe benefit tax obligations, proper withholding, document distribution and reporting to the appropriate governmental authorities for each Venator Group Employee.   The Parties agree that neither Venator nor an applicable Venator Entity will be treated as a “successor employer” of Huntsman or an applicable Huntsman Entity. Unless otherwise required by applicable Law, the entity for which the relevant employee is currently employed or, if such individual is not currently employed by Huntsman or Venator, was most recently employed at the time of the vesting, exercise, disqualifying disposition, payment or other relevant taxable event, as appropriate, in respect of equity awards and other compensation shall be entitled to claim any income tax deduction in respect of such equity awards and other compensation on its respective tax return associated with such event. Unless otherwise prohibited by applicable Law, any members of the Huntsman Group and the Venator Group may enter into separate reimbursement agreements regarding income tax deductions if the Parties mutually agree that the deduction should have gone to an entity other than the entity that received the income tax deduction on its respective tax return.

 

(h)                                 Employment Contracts; Expatriate Obligations.  Effective as of the Employee Transfer Date, Venator will assume and honor, or will cause a member of the Venator Group to assume and honor, any agreements to which any Venator Group Employee is party with any Huntsman Entity, including any (i) employment contract, executive agreement, offer letter, indemnification or consulting agreement, (ii) retention, severance or change of control arrangement or (iii) expatriate or relocation contract or arrangement (including agreements and obligations regarding repatriation, relocation, equalization of taxes and living standards in the host country).

 

(i)                                     Collective Bargaining Agreements.  Schedule 3.1(i) sets forth a list of collective bargaining agreements, collective agreements, trade union or works council agreements and any other contractual or other obligation to a labor union, trade union, works council or other representative of any Venator Group Employee relating to the Venator Group Employees in effect on the date of this Agreement (collectively, the “Collective Bargaining Agreements”). Prior to the Plan Transfer Date, Huntsman and Venator will take or cause to be taken all actions necessary (if any) to cause a Venator Entity to continue sponsorship of the Collective Bargaining Agreements. Huntsman and Venator shall cooperate in submitting and completing any required successor employer application, or similar application or notice, in order to effectuate any such assignment. Nothing in this Agreement is intended to alter the provisions of any Collective Bargaining Agreement or modify in any way the obligations owed 

 

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to the Employees covered by any such agreement. The Huntsman Group shall have no Liability for or under any collective bargaining agreements, collective agreements, multiemployer plans, pension and welfare plans and arrangements, labor union, trade union or works council agreements that related to the Venator Business and which were entered into with any member of the Huntsman Group, any union, works council, or representative of any Venator Group Employee, and such agreements, plans, and arrangements (if any) shall, to the extent permitted under applicable Law and their respective terms, be assigned from the applicable Huntsman Entity to Venator (or a Venator Entity designated by Venator) effective as of the Plan Transfer Date and Venator shall cooperate in submitting and completing any required successor employer application, or similar application or notice, in order to effectuate any such assignment.

 

Section 3.2                                    Employment Law Obligations.

 

(a)                                 WARN.  (i)  Huntsman shall be responsible for providing any necessary WARN notice and satisfying WARN obligations (or such other requirements under applicable Law) with respect to any termination of employment of any Huntsman Group Employee that occurs after the Effective Date, and (ii) Venator shall be responsible for providing any necessary WARN notice and satisfying WARN obligations (or such other requirements under applicable Law) with respect to any termination of employment of any Venator Group Employee that occurs after the Employee Transfer Date.

 

(b)                                 Compliance With Employment Laws. With respect to the time period occurring on and after the Effective Date, each member of the Huntsman Group shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply with employment-related Laws and requirements relating to the employment of Huntsman Group Employees and the treatment of any applicable Former Huntsman Group Employees in respect of their employment.  Each member of the Venator Group shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply with employment-related Laws and requirements relating to the employment of Venator Group Employees on or after the Employee Transfer Date.

 

Section 3.3                                    Employee Records.

 

(a)                                 Sharing of Information.  Subject to any limitations imposed by applicable Law, Huntsman and Venator (acting directly or through members of the Huntsman Group or the Venator Group, respectively) shall provide to the other and their respective agents and vendors all information reasonably necessary for the Parties to perform their respective duties under this Agreement. The Parties also hereby agree to enter into any business associate arrangements that may be required for the sharing of any information pursuant to this Agreement to comply with the requirements of HIPAA (or other applicable Law).

 

(b)                                 Transfer of Personnel Records and Authorization.  Subject to any limitations imposed by applicable Law, as soon as administratively feasible following the Employee Transfer Date, Huntsman shall transfer and assign to Venator all personnel records, all immigration documents, including I-9 forms and work authorizations, all payroll deduction authorizations and elections, whether voluntary or mandated by Law, including but not limited to 

 

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W-4 forms and deductions for benefits under the applicable Venator Benefit Plans and all absence management records, Family and Medical Leave Act and employee leave records, insurance beneficiary designations, flexible spending account enrollment confirmations, attendance, and return to work information (“Benefit Management Records”).  Subject to any limitations imposed by applicable Law, Huntsman, however, may retain originals of, copies of, or access to Benefit Management Records as long as necessary to provide services to Venator (acting pursuant to the Transition Services Agreement).  Venator will use Benefit Management Records for lawful purposes only, including calculation of withholdings from wages and personnel management.  It is understood that following the IPO, Huntsman records so transferred and assigned may be maintained by Venator (acting directly or through one of its Subsidiaries) pursuant to Venator’s applicable records retention policy.

 

(c)                                  Access to Records.  To the extent not inconsistent with this Agreement and any applicable Laws, reasonable access to Employee-related records after the Employee Transfer Date will be provided to members of the Huntsman Group and members of the Venator Group pursuant to the terms and conditions of Article VII of the Separation Agreement. In addition, notwithstanding anything to the contrary, Venator shall provide Huntsman with reasonable access to those records necessary for its administration of any plans or programs on behalf of Huntsman Group Employees and Former Huntsman Group Employees after the IPO as permitted by any applicable Laws. Huntsman shall also be permitted to retain copies of all restrictive covenant agreements with any Venator Group Employee in which any member of the Huntsman Group has a valid business interest. In addition, Huntsman shall provide Venator with reasonable access to those records necessary for its administration of any plans or programs on behalf of Venator Group Employees after the applicable Employee Transfer Date or Plan Transfer Date as permitted by any applicable Laws. Venator shall also be permitted to retain copies of all restrictive covenant agreements with any Huntsman Group Employee or Former Huntsman Group Employee in which any member of the Venator Group has a valid business interest.

 

(d)                                 Maintenance of Records.  With respect to retaining, destroying, transferring, sharing, copying and permitting access to all Employee-related information, Huntsman and Venator shall comply with all applicable Laws and shall indemnify and hold harmless each other from and against any and all Liability, claims, actions, and damages that arise from a failure (by the indemnifying party or its Subsidiaries or their respective agents) to so comply with all applicable Laws applicable to such information.

 

(e)                                  No Access to Computer Systems or Files.  Except as set forth in the Separation Agreement, any Transfer Document or pursuant to any other agreement reached between the Parties, generally no provision of this Agreement shall give (i) any member of the Huntsman Group direct access to the computer systems or other files, records or databases of any member of the Venator Group or (ii) any member of the Venator Group direct access to the computer systems or other files, records or databases of any member of the Huntsman Group, unless specifically permitted by the owner of such systems, files, records or databases.

 

(f)                                   Confidentiality.  The provisions of this Section 3.3(f) shall be in addition to, and not in derogation of, the provisions of the Separation Agreement governing confidential information, including Section 7.7 of the Separation Agreement. Except as otherwise set forth in this Agreement, all records and data relating to Employees shall, in each case, be subject to the 

 

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confidentiality provisions of the Separation Agreement and any other applicable agreement and applicable Law.

 

(g)                                  Cooperation.  Each Party shall use commercially reasonable efforts to cooperate to share, retain, and maintain data and records that are necessary or appropriate to further the purposes of this Section 3.3(g) and for each Party to administer its respective Benefit Plans to the extent consistent with this Agreement and applicable Law, and each Party agrees to cooperate as long as is reasonably necessary to further the purposes of this Section 3.3(g). Except as provided under any Transfer Document, no Party shall charge another Party a fee for such cooperation.

 

ARTICLE IV
 EQUITY AND LONG-TERM INCENTIVE AWARDS

 

Section 4.1                                    General Principles.

 

(a)           Additional Actions.  Huntsman and Venator shall take any and all reasonable actions as shall be necessary and appropriate to further the provisions of this Article IV, including, to the extent practicable, providing written notice or similar communication to each individual who holds one or more awards granted under any of the Huntsman Equity Plans informing such individual of (i) the actions contemplated by this Article IV with respect to such awards and (ii) whether (and during what time period) any “blackout” period shall be imposed upon holders of awards granted under any of the Huntsman Equity Plans during which time awards may not be exercised or settled, as the case may be.

 

(b)                                 Service Recognition; Change of Control.  From and after the IPO, (i) a grantee who has outstanding awards under one or more of the Huntsman Equity Plans and/or replacement awards under the Venator New Equity Plan shall be considered to have been employed by (or otherwise providing services to) the applicable plan sponsor before and after the IPO for purposes of (x) vesting and (y) determining the date of termination of employment (or any other applicable service relationship) as it applies to any such award and (ii) for purposes of determining whether any “change of control” has occurred with respect to any Huntsman LTI Award or Venator LTI Award, (x) a “change of control” shall only be deemed to have occurred for purposes of any award that is governed by the Huntsman Equity Plans upon a “change of control” of Huntsman and (y) a “change of control” shall only be deemed to have occurred for purposes of any award that is governed by the Venator New Equity Plan upon a “change of control” of Venator.

 

(c)                                  Consistency with Applicable Laws.  No award described in this Article IV, whether outstanding or to be issued, adjusted, substituted or cancelled by reason of or in connection with the IPO, shall be adjusted, settled, cancelled, or exercisable, until in the judgment of the administrator of the applicable plan or program such action is consistent with all applicable Laws, including federal securities Laws and any foreign jurisdiction rules and regulations that may be applicable to the award or to the holder thereof. Any period of exercisability will not be extended on account of a period during which such an award is not exercisable pursuant to the preceding sentence.

 

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(d)                                 ASC 718.  The adjustment or conversion of Huntsman LTI Awards pursuant to this Article IV is intended to be effectuated in a manner so as to result in each adjusted Huntsman LTI Award or Venator LTI Award, as applicable, having an aggregate “fair value” and an “intrinsic value” (in each case, within the meaning of ASC 718 and determined in accordance therewith), as of immediately following the IPO, that shall not be materially greater than the fair value and intrinsic value of the related Huntsman LTI Award immediately prior to the IPO.

 

(e)                                  Section 409A of the Code.  The adjustment or conversion of Huntsman LTI Awards shall be effectuated in a manner that is intended to avoid the imposition of any penalty or other taxes on the holders thereof pursuant to Section 409A of the Code.

 

Section 4.2                                    Equity Award Treatment.

 

(a)                                 Vested Huntsman Options.  Each Huntsman Option that is vested but not yet exercised immediately prior to the Venator Trading Day shall continue to be exercisable for Huntsman Common Stock, subject to the same terms and conditions set forth in the Huntsman Equity Plans and as provided in any individual award agreement governing such Huntsman Option; provided, however, that from and after the Venator Trading Day, the vesting of each Huntsman Option shall be determined based upon continued service with the Venator Group rather than the Huntsman Group.

 

(b)                                 Unvested Huntsman Options.  Each holder of a Huntsman Option that is unvested immediately prior to the Venator Trading Day shall, upon the Venator Trading Day, have their rights to the Huntsman Option cancelled and the participants rights under each such Huntsman Option shall be converted into the right to receive a stock option award granted pursuant to the Venator New Equity Plan with respect to Venator Ordinary Shares (the “Venator Options”).  The number of Venator Options to be granted to each applicable participant shall be determined by multiplying the number of Huntsman Common Stock subject to the Huntsman Option by the Equity Award Ratio (rounded to the nearest whole share of Venator Ordinary Shares).  The exercise price of each new Venator Option shall be determined by dividing the exercise price of the original Huntsman Option by the Equity Award Ratio, rounded up to the nearest whole cent. Each Venator Option described in the preceding sentences shall be subject to the same terms and conditions after the Venator Trading Day as the terms and conditions applicable to the corresponding Huntsman Option immediately prior to the Venator Trading Day, including vesting restrictions and the original term of the award; provided, however, that from and after the Venator Trading Day, the vesting and exercisability of each Venator Option shall be determined based upon continued service with the Venator Group rather than the Huntsman Group.

 

(c)                                  Huntsman Phantom Shares.  Each holder of a Huntsman Phantom Share that is outstanding and unvested immediately prior to the Venator Trading Day shall, upon the Venator Trading Day, have their rights to the Huntsman Phantom Share cancelled and the participants rights under each such Huntsman Phantom Share shall be converted into the right to receive a restricted stock unit award granted pursuant to the Venator New Equity Plan with respect to Venator Ordinary Shares (the “Venator Restricted Stock Unit” or “Venator RSU”). The number of Venator RSUs to be granted to each applicable participant shall be determined by 

 

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multiplying the number of Huntsman Common Stock subject to the Huntsman Phantom Share by the Equity Award Ratio (rounded to the nearest whole share of Venator Ordinary Shares).  Each Venator RSU described in the preceding sentences shall be subject to the same terms and conditions after the Venator Trading Day as the terms and conditions applicable to the corresponding Huntsman Phantom Share immediately prior to the Venator Trading Day, including vesting restrictions; provided, however, that from and after the Venator Trading Day, the vesting of each Venator RSU shall be determined based upon continued service with the Venator Group rather than the Huntsman Group, and provided, further, however, that in the event that applicable laws and regulations of the United Kingdom require that an award granted pursuant to the Venator New Equity Plan must be accompanied by a nil or nominal payment for such award by the participant, or such award must be settled in cash rather than Venator Common Stock, Venator shall design the applicable Venator RSUs in a matter that complies with such a requirement.

 

(d)                                 Huntsman Restricted Stock.  Each holder of Huntsman Restricted Stock that is outstanding and unvested immediately prior to the Venator Trading Day shall, upon the Venator Trading Day, have their rights to the Huntsman Restricted Stock cancelled and the participants rights under each such Huntsman Restricted Stock shall be converted into the right to receive a Venator Restricted Stock Unit. The number of Venator RSUs to be granted to each applicable participant shall be determined by multiplying the number of Huntsman Common Stock subject to the Huntsman Restricted Stock by the Equity Award Ratio (rounded to the nearest whole share of Venator Ordinary Shares).  Each Venator RSU described in the preceding sentences shall be subject to the same terms and conditions after the Venator Trading Day as the terms and conditions applicable to the corresponding Huntsman Restricted Stock immediately prior to the Venator Trading Day, including vesting restrictions; provided, however, that from and after the Venator Trading Day, the vesting of each Venator RSU shall be determined based upon continued service with the Venator Group rather than the Huntsman Group, and provided, further, however, that in the event that applicable laws and regulations of the United Kingdom require that an award granted pursuant to the Venator New Equity Plan must be accompanied by a nil or nominal payment for such award by the participant, or such award must be settled in cash rather than Venator Common Stock, Venator shall design the applicable Venator RSUs in a matter that complies with such a requirement.

 

(e)                                  Huntsman Restricted Stock Units.  Each holder of a Huntsman RSU that is outstanding and unvested immediately prior to the Venator Trading Day shall, upon the Venator Trading Day, have their rights to the Huntsman RSU cancelled and the participants rights under each such Huntsman RSU shall be converted into the right to receive a Venator Restricted Stock Unit. The number of Venator RSUs to be granted to each applicable participant shall be determined by multiplying the number of Huntsman Common Stock subject to the Huntsman RSU by the Equity Award Ratio (rounded to the nearest whole share of Venator Ordinary Shares); provided, however, that in the event that the Huntsman RSU was subject to one or more performance conditions immediately prior to the Venator Trading Day, the target number of Huntsman Common Stock subject to the Huntsman RSU shall first be adjusted by the performance factor actually achieved immediately prior to the Venator Trading Day to determine the number of Huntsman RSUs that are deemed to be “earned” immediately prior to the Venator Trading Day (the “Adjusted Huntsman RSUs”), and the number of Venator RSUs to be granted to each applicable participant shall then be determined by multiplying the number of Huntsman 

 

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Common Stock subject to the Adjusted Huntsman RSU by the Equity Award Ratio (rounded to the nearest whole share of Venator Ordinary Shares).   Each Venator RSU described in the preceding sentences shall be subject to the same terms and conditions after the Venator Trading Day as the terms and conditions applicable to the corresponding Huntsman RSU immediately prior to the Venator Trading Day; provided, however, that in the event that the original Huntsman RSUs were subject to one or more performance conditions prior to the conversions described in this paragraph, the corresponding new Venator RSU shall not be subject to any performance conditions from and after the Venator Trading Day, and provided, further, however, that from and after the Venator Trading Day, the time-based vesting conditions of each Venator RSU shall be determined based upon continued service with the Venator Group rather than the Huntsman Group, and provided, further, however, that in the event that applicable laws and regulations of the United Kingdom require that an award granted pursuant to the Venator New Equity Plan must be accompanied by a nil or nominal payment for such award by the participant, or such award must be settled in cash rather than Venator Common Stock, Venator shall design the applicable Venator RSUs in a matter that complies with such a requirement.

 

(f)                                   Accrued Dividends.  To the extent that any Huntsman LTI Award has accrued dividends or dividend equivalent rights that had not yet been paid out or otherwise settled immediately prior to the Venator Trading Day (the “Dividend Accounts”), Venator shall keep a bookkeeping account or accounts equal to the Dividend Account amount applicable to each individual that was the holder of a cancelled Huntsman LTI Award and recipient of a related Venator LTI Award.   The Dividend Accounts shall be subject to the same terms and conditions, including vesting and forfeiture provisions, that were applicable to the original Huntsman LTI Award to which such Dividend Account relates; provided, however, that from and after the Venator Trading Day, the time-based vesting conditions that were applicable to the original Huntsman LTI Award to which the Dividend Account relates shall be determined based upon continued service with the Venator Group rather than the Huntsman Group. Huntsman shall transfer the cash amount of such Dividend Accounts to Venator or the appropriate member of the Venator Group immediately following the time or times at which the Dividend Accounts become eligible to be settled and Venator or an applicable member of the Venator Group settles such Dividend Accounts, and Huntsman and Venator shall cooperate to ensure the timely transfer and receipt of the necessary funds.  For purposes of clarity, the termination of any Huntsman LTI Award that occurs solely as a result of the conversion of the holder’s rights into a Venator LTI Award as described in this Section 4.2 shall not result in the forfeiture of the related Dividend Account.

 

(g)                                  Other Legal and Administrative Matters.  Notwithstanding the conversion terms set forth in the remainder of this Section 4.2, Venator or an appropriate member of the Venator Group shall have the authority pursuant to the Venator New Equity Plan to modify the terms and conditions of any Venator LTI Award if the plan administrator of the Venator New Equity Plan determines that it is necessary or advisable in order to comply with any foreign legal, securities or administrative issues that impact the Venator LTI Awards, provided that such a modification does not result in the violation of any U.S.-based Laws or regulations.

 

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Section 4.3                                    Section 16(b) of the Securities Exchange Act; Code Sections 162(m) and 409A.

 

(a)                                 Section 16(b) of the Securities Exchange Act.  By approving the adoption of this Agreement, the respective Boards of Directors of each of Huntsman and Venator intend to exempt from the short-swing profit recovery provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended, by reason of the application of Rule 16b-3 thereunder, all acquisitions and dispositions of equity incentive awards by directors and officers of each of the Huntsman Group and the Venator Group, and the respective Boards of Directors of Huntsman and Venator also intend expressly to approve, in respect of any equity-based award, the use of any method for the payment of an exercise price and the satisfaction of any applicable tax withholding (specifically including the actual or constructive tendering of shares in payment of an exercise price and the withholding of award shares from delivery in satisfaction of applicable tax withholding requirements) to the extent such method is permitted under the applicable Huntsman Equity Plan, Venator New Equity Plan and award agreement.

 

(b)                                 Code Sections 162(m) and 409A.  Notwithstanding anything in this Agreement to the contrary (including the treatment of supplemental and deferred compensation plans, outstanding long-term incentive awards and annual incentive awards as described herein), Huntsman and Venator agree to negotiate in good faith regarding the need for any treatment different from that otherwise provided herein to ensure that (i) a federal income tax deduction for the payment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation is, to the extent prescribed under the terms of the applicable plan and award agreement, not limited by reason of Section 162(m) of the Code, and (ii) the treatment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation does not cause the imposition of a penalty tax under Section 409A of the Code.

 

Section 4.4                                    Liabilities for Settlement of Awards.  Except as provided for pursuant to Section 4.6, from and after the Venator Trading Day (a) Huntsman shall be responsible for all Liabilities associated with Huntsman LTI Awards, including any exercise, share delivery, registration or other obligations related to the exercise, vesting or settlement of the Huntsman LTI Awards and (b) Venator shall be responsible for all Liabilities associated with Venator LTI Awards, including any exercise, share delivery, registration or other obligations related to the exercise, vesting or settlement of the Venator LTI Awards.

 

Section 4.5                                    Form S-8.  Prior to or as soon as reasonably practicable after the Venator Trading Day and subject to applicable Law, Venator shall prepare and file with the Securities and Exchange Commission a registration statement on Form S-8 (or another appropriate form) registering under the Securities Act of 1933, as amended, the offering of a number of shares of Venator Ordinary Shares at a minimum equal to the number of shares subject to the Venator LTI Awards.  Venator shall use commercially reasonable efforts to cause any such registration statement to be kept effective (and the current status of the prospectus or prospectuses required thereby to be maintained) as long as any Venator LTI Awards remain outstanding.

 

Section 4.6                                    Tax Reporting and Withholding for Awards.  Huntsman (or one of its Subsidiaries) will be responsible for all income, payroll, or other tax reporting related to income 

 

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of Huntsman Group Employees from equity-based and other long-term incentive awards outstanding pursuant to the Huntsman Equity Plans, and Venator (or one of its Subsidiaries) will be responsible for all income, payroll, or other tax reporting related to income of Venator Group Employees from equity-based and other long-term incentive awards granted under the Huntsman Equity Plans and the Venator New Equity Plan. Further, Huntsman (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings for Huntsman Group Employees who hold equity-based and other long-term incentive awards outstanding pursuant to the Huntsman Equity Plans to each applicable taxing authority, and Venator (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings for Venator Group Employees who hold equity-based and other long-term incentive awards granted under the Huntsman Equity Plans and the Venator New Equity Plan to each applicable taxing authority.  Huntsman and Venator acknowledge and agree that the Parties will cooperate with each other and with third-party providers to effectuate withholding and remittance of taxes, as well as required tax reporting, in a timely, efficient, and appropriate manner.

 

Section 4.7                                    Approval of Venator New Equity Plan.  Not later than the Venator Trading Day, Venator shall, or shall have caused an appropriate Huntsman Entity or Venator Entity to, have adopted the Venator New Equity Plan.

 

ARTICLE V
 BONUS AND SHORT-TERM INCENTIVE PLANS

 

Section 5.1                                    Establishment of Venator Short-Term Incentive Plans.  Not later than the Effective Date, Venator shall, or shall cause another Venator Entity to, adopt one or more plans that will provide annual bonus and short-term cash incentive compensation opportunities for Venator Group Employees (the “Venator Short-Term Incentive Plans”).

 

Section 5.2                                    Treatment of Short-Term Incentives for Year of IPO.  From and after the Effective Date, Venator Group Employees shall cease participation in the annual bonus and short-term cash incentive compensation opportunities under the Huntsman Short-Term Incentive Plans and shall, for the avoidance of doubt, not be entitled to any benefits thereunder for the year in which the IPO occurs.  With respect to the year in which the IPO occurs, Venator shall, or shall cause another Venator Entity to, provide each Venator Group Employee who participated in a Huntsman Short-Term Incentive Plan and otherwise meets all service-based and other requirements to receive an award under a Venator Short-Term Incentive Plan, with an annual bonus payment under the appropriate Venator Short-Term Incentive Plan. The annual bonus payments under the Venator Short-Term Incentive Plan for the year in which the IPO occurs shall be calculated based on criteria to be determined and established by the Venator Group.

 

Section 5.3                                    Plan Liabilities.  For the avoidance of doubt, (a) the Venator Group shall be solely responsible for funding, paying, and discharging all obligations relating to any annual cash incentive awards that any Venator Group Employee or Former Venator Group Employee is eligible to receive under any Venator Group annual bonus and other short-term incentive compensation plans with respect to payments made beginning at or after the Effective Date, including the Venator Short-Term Incentive Plans, even though such annual incentive awards may relate to the full calendar year in which the IPO occurs, and no member of the Huntsman Group shall have any obligations with respect thereto, and (b) the Huntsman Group shall be 

 

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solely responsible for funding, paying, and discharging all obligations relating to any annual cash incentive awards that any Huntsman Group Employee or Former Huntsman Group Employee is eligible to receive under any Huntsman annual bonus and other short-term incentive compensation plans with respect to payments made beginning at or after the Effective Date, including the Huntsman Short-Term Incentive Plans, and no member of the Venator Group shall have any obligations with respect thereto.

 

ARTICLE VI
 QUALIFIED DEFINED BENEFIT PLANS

 

Section 6.1                                    Retention of Venator Group Defined Benefit Plans.  On or prior to the Plan Transfer Date, Venator shall take all actions necessary (if any) to provide for the retention by the applicable Venator Entity of the sponsorship of each Venator Group Defined Benefit Plan.  Except as expressly set forth in Section 6.2, from and after the Plan Transfer Date (a) the Venator Group shall be solely responsible for (and shall indemnify and hold harmless the Huntsman Group from) all Liabilities and obligations pursuant to the Venator Group Defined Benefit Plans (regardless of whether such Liabilities relate to a Venator Group Employee, Huntsman Group Employee or Former Huntsman Group Employee) and (b) Huntsman Group Employees shall cease active participation in all Venator Group Defined Benefit Plans.

 

Section 6.2                                    Huntsman Defined Benefit Plans.  On or prior to the Plan Transfer Date, Venator Group Employees shall cease active participation in all Huntsman Defined Benefit Plans, and shall not accrue credit for any purposes under the Huntsman Defined Benefit Plans with respect to service with the Venator Group after the Plan Transfer Date.  The applicable Huntsman Entities shall retain sponsorship of the Huntsman Defined Benefit Plans, and each Huntsman Defined Benefit Plan shall retain all Liabilities with respect to all benefits accrued thereunder (including with respect to Venator Group Employees).

 

Section 6.3                                    Huntsman Europe BVBA Belgium.  On or prior to the Plan Transfer Date, Venator shall, or shall cause another Venator Entity to, establish a defined benefit pension plan to provide retirement benefits to Venator Group Employees who were participants in the Huntsman Europe BVBA Belgium (such new defined benefit pension plan at Venator to be called, the “Venator Europe BVBA Belgium” and such Venator Group Employees, the “Venator Europe BVBA Belgium Participants”).  Venator shall be responsible for taking all necessary, reasonable, and appropriate action to establish, maintain, and administer the Venator Europe BVBA Belgium so that it satisfies all requirements under applicable Law. Venator (acting directly or through members of the Venator Group) shall be responsible for any and all Liabilities (including Liability for funding) and other obligations with respect to the Venator Europe BVBA Belgium.  As soon as practicable following the establishment of the Venator Europe BVBA Belgium, Huntsman shall, or shall cause the appropriate Huntsman Entity to, cause the transfer of all Assets held for purposes of providing benefits pursuant to the Huntsman Europe BVBA Belgium (the “Venator Pension Assets”) for Venator Europe BVBA Belgium Participants to Venator (the “Defined Benefit Transfer Date”) in accordance with applicable Law.  Through and including the Defined Benefit Transfer Date, Huntsman shall remain primarily responsible for causing benefits due under the Huntsman Europe BVBA Belgium through such date to be paid, with any such benefits paid reducing the Venator Pension Assets.  In connection with the transfer of Venator Pension Assets, the Parties (each acting directly or 

 

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through their respective Affiliates) shall, to the extent necessary, file any necessary regulatory documentation regarding the transfer of Venator Pension Assets.

 

ARTICLE VII
 QUALIFIED DEFINED CONTRIBUTION PLANS

 

Section 7.1                                    Establishment of the Venator 401(k) Plan.  On or prior to the Plan Transfer Date, Venator shall, or shall cause another Venator Entity to, establish a qualified defined contribution plan and trust for the benefit of Venator Group Employees who were eligible to participate in the Huntsman Salary Deferral Plan (the “Venator 401(k) Plan”), which provides for a cash or deferred arrangement under Section 401(k) of the Code.  Venator shall be responsible for taking all necessary, reasonable, and appropriate action to establish, maintain, and administer the Venator 401(k) Plan so that such plan is qualified under Section 401(a) of the Code and that the related trust thereunder is exempt under Section 501(a) of the Code.  Venator (acting directly or through its Affiliates) shall be responsible for any and all Liabilities and other obligations with respect to the Venator 401(k) Plan.

 

Section 7.2                                    Venator Employee Account Balances.

 

(a)                                 Venator or the appropriate Venator Entity shall cause the Venator 401(k) Plan to accept the plan-to-plan transfer of Venator Group Employees’ accounts from the Huntsman Salary Deferral Plan (including any notes representing participant loans).  Venator Group Employees’ accounts from the Huntsman Salary Deferral Plan will be mapped over from the Huntsman Salary Deferral Plan to the same investments under the Venator 401(k) Plan.

 

(b)                                 As soon as practicable following the Plan Transfer Date, any account balances for Venator Group Employees under any Huntsman Defined Contribution Plan maintained for Employees in Canada will be distributed in a lump sum cash payment in accordance with applicable law.

 

ARTICLE VIII
 NONQUALIFIED DEFERRED COMPENSATION PLANS

 

Section 8.1                                    Establishment of Venator Deferred Compensation Plans.  On or prior to the Effective Date, Venator shall, or shall cause another Venator Entity to, establish and adopt one or more deferred compensation plans (the “Venator Deferred Compensation Plan”) to provide each Venator Group Employee who was eligible to participate in the Huntsman Deferred Compensation Plan as of immediately prior to the Effective Date (the “Venator Deferred Compensation Beneficiaries”) benefits following the Effective Date.  As of the Effective Date, the Venator Group Employees shall no longer participate in the Huntsman Deferred Compensation Plan.  The Parties agree that the employment of a Venator Deferred Compensation Beneficiary that becomes a participant in the Venator Deferred Compensation Plan at the Effective Date shall not be considered to have terminated (and, for the avoidance of doubt, such Venator Deferred Compensation Beneficiary shall not be deemed to have incurred a “separation from service”) as a result of the IPO or the transfer of employment from Huntsman (or a Huntsman Entity) to Venator (or a Venator Entity), and such employment shall only be considered to terminate for purposes of the applicable Venator Deferred Compensation Plans 

 

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when the employment of such Venator Deferred Compensation Beneficiary with the Venator Group terminates in accordance with the terms of the applicable Venator Deferred Compensation Plan and applicable Laws.  The Parties agree that any Venator Deferred Compensation Beneficiary that does not become a participant in the Venator Deferred Compensation Plan at the Effective Date, for purposes of the Huntsman Deferred Compensation Plan, shall be deemed to have terminated (and, for the avoidance of doubt, such individual shall be deemed to have incurred a “separation from service”) as a result of the IPO or the transfer of employment from Huntsman (or a Huntsman Entity) to Venator (or a Venator Entity), as applicable, and will receive a distribution(s) from the Huntsman Deferred Compensation Plan according to the terms of the plan.

 

Section 8.2                                    Liability and Responsibility.  The Liabilities in respect of Venator Deferred Compensation Beneficiaries under the Huntsman Deferred Compensation Plans shall be assumed by the member of the Venator Group which sponsors the applicable Venator Deferred Compensation Plan, effective as of the Effective Date. Venator shall have sole responsibility for the administration of the Venator Deferred Compensation Plans and the payment of benefits thereunder to or on behalf of Venator Group Employees, and no member of the Huntsman Group shall have any liability or responsibility therefor. Huntsman shall have sole responsibility for the administration of the Huntsman Deferred Compensation Plans and the payment of benefits thereunder to or on behalf of Huntsman Group Employees and Former Venator Group Employees, and no member of the Venator Group shall have any liability or responsibility therefor.

 

ARTICLE IX
 WELFARE PLANS

 

Section 9.1                                    Establishment of Venator Welfare Plans.  On or prior to the Plan Transfer Date, Venator shall, or shall cause another Venator Entity to, establish and adopt Welfare Plans (the “Venator Welfare Plans”) which will provide welfare benefits to each Venator Group Employee who participate in any of the Huntsman Welfare Plans (and their eligible spouses and dependents, as the case may be) (collectively, the “Venator Welfare Plan Participants”). Coverage and benefits under the Venator Welfare Plans shall then be provided to the Venator Welfare Plan Participants on an uninterrupted basis under the newly established Venator Welfare Plans.  Venator Welfare Plan Participants shall cease to be eligible for coverage under the Huntsman Welfare Plans on the Plan Transfer Date or such later Employee Transfer Date. For the avoidance of doubt, Venator Welfare Plan Participants shall not participate in any Huntsman Welfare Plans once eligible under the Venator Welfare Plan, and Huntsman Group Employees and Former Huntsman Group Employees shall not participate in any Venator Welfare Plans at any time.

 

Section 9.2                                    Special Provisions Relating to Post-Retirement Welfare Plans.  On or prior to the Plan Transfer Date, Venator shall, or shall cause another Venator Entity to, establish and adopt a Welfare Plan (the “Venator Retiree Welfare Plan”), which will provide post-retirement welfare benefits to each Venator Group Employee who is eligible to participate in the Huntsman Retiree Medical Plan (and their eligible spouses and dependents, as the case may be) (collectively, the “Venator Retiree Welfare Plan Participants”).

 

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Section 9.3                                    Transitional Matters Under Venator Welfare Plans.

 

(a)                                 Liability for Claims Incurred.  Huntsman, a member of the Huntsman Group, or the applicable Huntsman Welfare Plan shall be liable for all claims for benefits (other than flexible spending accounts) by Venator Welfare Plan Participants under the Huntsman Welfare Plans arising out of claims incurred on or prior to the Plan Transfer Date (or such later Employee Transfer Date).  Venator or a member of the Venator Group shall be liable for all other Welfare Plan coverages for Venator Welfare Plan Participants under any Welfare Plan for which Huntsman, a member of the Huntsman Group or the applicable Huntsman Welfare Plan is not expressly liable, as set forth above.

 

(b)                                 Credit for Deductibles and Other Limits. With respect to each Venator Welfare Plan Participant, each Venator Welfare Plan will give credit for the plan year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs) for any amount paid, number of services obtained or provider visits by such Venator Welfare Plan Participant toward deductibles, out-of-pocket maximums, limits on number of services or visits, or other similar limitations to the extent such amounts are taken into account under the corresponding Huntsman Welfare Plan. For purposes of any lifetime maximum benefit limit payable to a Venator Welfare Plan Participant under any Venator Welfare Plan, the Venator Welfare Plan will recognize any expenses paid or reimbursed by a Huntsman Welfare Plan with respect to such participant prior to the Plan Transfer Date (or such later Employee Transfer Date) to the same extent such expense payments or reimbursements would be recognized in respect of an active plan participant under the applicable Huntsman Welfare Plan.

 

(c)                                  COBRA.  On and after the Plan Transfer Date (or such later Employee Transfer Date), Venator shall assume all Liabilities and other obligations under COBRA (and shall provide any required coverage under the Venator Welfare Plans) with respect to all Venator Group Employees (and, in either case, their qualifying beneficiaries) who have a COBRA qualifying event (as defined in Section 4980B of the Code) on or after the Plan Transfer Date (or such later Employee Transfer Date).

 

Section 9.4                                    Benefit Elections and Designations and Continuity of Benefits.

 

(a)                                 Benefit Elections and Designations.  From and after the Plan Transfer Date, Venator or the appropriate Venator Entity shall cause each Venator Welfare Plan to recognize and give effect to all elections and designations (including all coverage and contribution elections and beneficiary designations) made by each Venator Welfare Plan Participant under, or with respect to, the corresponding Huntsman Welfare Plan for the plan year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs). Notwithstanding the foregoing, nothing in this Section 9.4(a) will prohibit Venator from soliciting or causing the solicitation of new election forms or beneficiary designations from Venator Welfare Plan Participants to be effective under the Venator Welfare Plan as of the Plan Transfer Date or any time thereafter.

 

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(b)                                 Additional Details Regarding Flexible Spending Accounts. Pursuant to Section 9.1, on or prior to the Plan Transfer Date, Venator shall, or shall cause another Venator Entity to, establish and adopt Venator Welfare Plans which will provide health care flexible spending account and dependent care flexible spending account benefits to Venator Welfare Plan Participants (each a “Venator FSA”).

 

(i)                                     It is the intention of the Parties that all activity under a Venator Welfare Plan Participant’s flexible spending account with Huntsman for the plan year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs) be treated instead as activity under the corresponding Venator FSA. Accordingly, (x) any period of participation by a Venator Welfare Plan Participant in a Huntsman flexible spending account during the plan year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs) (the “FSA Participation Period”) will be deemed a period when the Venator Welfare Plan Participant participated in the corresponding Venator FSA; (y) all expenses incurred during the FSA Participation Period will be deemed incurred while the Venator Welfare Plan Participant’s coverage was in effect under the corresponding Venator FSA; and (z) all elections and reimbursements made with respect to an FSA Participation Period under a Huntsman flexible spending account will be deemed to have been made with respect to the corresponding Huntsman FSA.

 

(ii)                                  If the aggregate reimbursement payouts made to Venator Welfare Plan Participants prior to the Plan Transfer Date (or such later Employee Transfer Date) from the applicable Huntsman Welfare Plan flexible spending accounts during the plan year in which the IPO occurs are less than the aggregate accumulated contributions to such accounts made by such Venator Welfare Plan Participants prior to the Plan Transfer Date for such plan year, Huntsman shall cause an amount equal to the amount by which such contributions are in excess of such reimbursement payouts to be transferred to Venator (or a Venator Entity designated by Venator) by wire transfer of immediately available funds as soon as practicable, but in no event later than 45 days, following the Plan Transfer Date (or later Employee Transfer Date).

 

(iii)                               Notwithstanding anything to the contrary in this Section 9.4(b), on and after the Plan Transfer Date (or later Employee Transfer Date), the Venator Group shall assume, and cause the appropriate Venator FSA to be solely responsible for, all claims by Venator Welfare Plan Participants under the applicable Huntsman Welfare Plan flexible spending accounts that were incurred in the plan year in which the IPO occurs (or such later Employee Transfer Date occurs), whether incurred prior to, on, or after the Plan Transfer Date, that have not been paid in full as of the Plan Transfer Date (or later Employee Transfer Date).

 

(c)                                  Additional Details Regarding Health Savings Accounts. Pursuant to Section 9.1, on or prior to the Plan Transfer Date, Venator shall, or shall cause another Venator Entity to, establish and adopt Venator Welfare Plans which will provide health savings account benefits to Venator Welfare Plan Participants. To the extent any Venator Welfare Plan provides or constitutes a health savings account (each a “Venator HSA”), such Venator Welfare Plan shall 

 

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be effective as of the Plan Transfer Date. It is the intention of the Parties that all activity under a Venator Welfare Plan Participant’s health savings account with Huntsman for the year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs) be treated instead as activity under the corresponding Venator HSA.  Accordingly, (i) any period of participation by a Venator Welfare Plan Participant in a Huntsman health savings account during the year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs) (the “HSA Participation Period”) will be deemed a period when the Venator Welfare Plan Participant participated in the corresponding Venator HSA; (ii) all expenses incurred during the HSA Participation Period will be deemed incurred while the Venator Welfare Plan Participant’s coverage was in effect under the corresponding Venator HSA; and (iii) all elections and reimbursements made with respect to an HSA Participation Period under a Huntsman health savings account will be deemed to have been made with respect to the corresponding Venator HSA.

 

(d)                                 Waiver of Conditions or Restrictions.  Unless prohibited by applicable Law or a Collective Bargaining Agreement, the Venator Welfare Plans will waive all limitations as to preexisting conditions, exclusions, service conditions, waiting period limitations or evidence of insurability requirements that would otherwise be applicable to the Venator Welfare Plan Participant following the Plan Transfer Date (or such later Employee Transfer Date) to the extent that such participant had previously satisfied such limitation under the corresponding Huntsman Welfare Plan.

 

Section 9.5                                    Insurance Contracts.  To the extent any Huntsman Welfare Plan is funded through the purchase of an insurance contract or is subject to any stop loss contract, Huntsman and Venator will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for Venator (except for design changes and to the extent changes are required under applicable state insurance Laws or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both Huntsman and Venator for a reasonable term. Neither Party shall be liable for failure to obtain such insurance contracts, pricing discounts, or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 9.5.

 

Section 9.6                                    Third-Party Vendors.  Except as provided below, to the extent any Huntsman Welfare Plan is administered by a third-party vendor, Huntsman and Venator will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for Venator (except for changes agreed to by the Parties) and to maintain any pricing discounts or other preferential terms for both Huntsman and Venator for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 9.6.

 

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ARTICLE X
 WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION

 

Section 10.1                             Venator Workers’ and Unemployment Compensation.  Effective as of the Employee Transfer Date, the Venator Entity employing each Venator Group Employee shall have (and, to the extent it has not previously had such obligations, such Venator Entity shall assume) the obligations for all claims and Liabilities relating to workers’ compensation and unemployment compensation benefits for all Venator Group Employees employed by that Venator Entity. Prior to the Employee Transfer Date, Venator, acting through the Venator Entity employing each Venator Group Employee, will be responsible for (a) obtaining workers’ compensation insurance, including providing all collateral required by the insurance carriers and providing all notices to Venator Group Employees required by applicable workers’ compensation Laws and (b) establishing new or transferred unemployment insurance employer accounts, policies and claims handling contracts with the applicable government agencies. To the extent that such unemployment insurance coverage cannot be either assigned to or obtained by Venator or a Venator Entity, in respect of unemployment claims and Liabilities otherwise to be assumed by Venator or a Venator Entity pursuant to this Section 10.1, Huntsman shall remain primarily liable for such claims and Liabilities, but Venator shall indemnify and hold harmless Huntsman for any such claims and Liabilities. If the preceding sentence applies, then at one or more mutually agreed upon dates, Huntsman shall determine in good faith the present value of such claims and Liabilities and Venator shall reimburse Huntsman for that amount.

 

Section 10.2                             Assignment of Contribution Rights.  Huntsman will transfer and assign (or cause another member of the Huntsman Group to transfer and assign) to a member of the Venator Group all rights to seek contribution or damages from any applicable third party (such as a third party who aggravates an injury to a worker who makes a workers’ compensation claim) with respect to any workers’ compensation claim for which Venator is responsible pursuant to this Article X.

 

Section 10.3                             Collateral.  From and after the Effective Date, Venator (acting directly or through a member of the Venator Group) shall be responsible for providing all collateral required by insurance carriers in connection with workers’ compensation claims for which Liability is allocated to the Venator Group under this Article X.

 

Section 10.4                             Cooperation.  Venator and Huntsman shall use commercially reasonable efforts to provide that workers’ compensation and unemployment insurance costs are not adversely affected for either of them by reason of the IPO.

 

ARTICLE XI
 SEVERANCE

 

Section 11.1                             Establishment of Venator Severance Program.  On or prior to the Plan Transfer Date, Venator shall, or shall cause another Venator Entity to, establish and adopt one or more severance plans, policies or arrangements at such levels and subject to such terms as Venator determines in its reasonable discretion.  As of the Plan Transfer Date (or such later Employee Transfer Date), the Venator Group Employees shall no longer participate in any severance plan, policy or program of the Huntsman Group.

 

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Section 11.2                             Liability for Severance.  As of the Plan Transfer Date (or such later Employee Transfer Date), Huntsman shall have no Liability or obligation under any Huntsman Group severance plan or policy with respect to Venator Group Employees.

 

ARTICLE XII
 BENEFIT ARRANGEMENTS AND OTHER MATTERS

 

Section 12.1                             Accrued Time Off.  Venator shall recognize and assume all Liability for all unused vacation, holiday, sick leave, flex days, personal days and paid-time off and other time-off benefits with respect to Venator Group Employees which accrued prior to the applicable Employee Transfer Date.

 

Section 12.2                             Leaves of Absence.  Venator will continue to apply the appropriate leave of absence policies applicable to inactive Venator Group Employees who are on an approved leave of absence as of the Employee Transfer Date. Leaves of absence taken by Venator Group Employees prior to the Employee Transfer Date shall be deemed to have been taken as employees of a member of the Venator Group.

 

Section 12.3                             Restrictive Covenants in Employment and Other Agreements.  To the fullest extent permitted by the agreements described in this Section 12.3 and applicable Law, Huntsman shall assign, or cause an applicable member of the Huntsman Group to assign (including through notification to employees, as applicable), to Venator or a member of the Venator Group, as designated by Venator, all agreements containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the Huntsman Group and a Venator Group Employee, with such assignment to be effective as of the Plan Transfer Date (or later Employee Transfer Date). To the extent that assignment of such agreements is not permitted, effective as of the Plan Transfer Date (or later Employee Transfer Date), each member of the Venator Group shall be considered to be a successor to each member of the Huntsman Group for purposes of, and a third-party beneficiary with respect to, all agreements containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the Huntsman Group and a Venator Group Employee, such that each member of the Venator Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations of the Venator Group; provided, however, that in no event shall Huntsman be permitted to enforce such restrictive covenant agreements against Venator Group Employees for action taken in their capacity as employees of a member of the Venator Group.

 

ARTICLE XIII
 GENERAL PROVISIONS

 

Section 13.1                             Preservation of Rights to Amend.  The rights of each member of the Huntsman Group and each member of the Venator Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement.

 

Section 13.2                             Confidentiality.  Each Party agrees that any information conveyed or otherwise received by or on behalf of a Party in conjunction herewith that is not otherwise public 

 

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through no fault of such Party is confidential and is subject to the terms of the confidentiality provisions set forth herein and in the Separation Agreement.

 

Section 13.3                             Administrative Complaints/Litigation.  Except as otherwise provided in this Agreement, from and after the Effective Date, Venator shall assume, and be solely liable for, the handling, administration, investigation, and defense of actions, including ERISA, occupational safety and health, employment standards, union grievances, wrongful dismissal, discrimination or human rights, and unemployment compensation claims asserted at any time against Huntsman or any member of the Huntsman Group by (a) any Venator Group Employee (including any dependent or beneficiary of any such Employee), (b) any consultant or independent contractor who provided or provides services primarily for the benefit of the Venator Business or (c) any other person to the extent such actions or claims otherwise arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant, or otherwise) to or with respect to the business activities of any member of the Venator Group.  Clause (c) of the preceding sentence to the contrary notwithstanding, to the extent that any such legal action is brought by a Huntsman Group Employee or Former Huntsman Group Employee and relates to employment or the provision of services with respect to both the business activities of a member of the Venator Group and the business activities of a member of the Huntsman Group (excluding the Venator Group), reasonable costs and expenses incurred by the Parties in responding to such legal action shall be allocated among the Parties based upon the relative levels of service provided between the Venator Business and the businesses of the Huntsman Group other than the Venator Business.  Further notwithstanding the foregoing, to the extent that any legal action relates to a putative or certified class of plaintiffs, which includes both Huntsman Group Employees (or Former Huntsman Group Employees) and Venator Group Employees and such action involves employment or benefit plan related claims, reasonable costs and expenses incurred by the Parties in responding to such legal action shall be allocated among the Parties equitably in proportion to a reasonable assessment of the relative proportion of Employees included in or represented by the putative or certified plaintiff class. The procedures contained in the indemnification and related litigation cooperation provisions of the Separation Agreement shall apply with respect to each Party’s indemnification obligations under this Section 13.3.

 

Section 13.4                             Reimbursement and Indemnification.  To the extent provided for under this Agreement, each Party agrees to reimburse the other Party, within 30 days of receipt from the other Party of reasonable verification, for all costs and expenses which the other Party may incur on its behalf as a result of any of the respective Huntsman Benefit Plans and Venator Benefit Plans and, as contemplated by Article XI, any termination or severance payments or benefits. All Liabilities retained, assumed, or indemnified against by Venator pursuant to this Agreement, and all Liabilities retained, assumed, or indemnified against by Huntsman pursuant to this Agreement, shall in each case be subject to the indemnification provisions of the Separation Agreement. Notwithstanding anything to the contrary, (i) no provision of this Agreement shall require any member of the Venator Group to pay or reimburse to any member of the Huntsman Group any benefit-related cost item that a member of the Venator Group has paid or reimbursed to any member of the Huntsman Group prior to the Plan Transfer Date, and (ii) no provision of this Agreement shall require any member of the Huntsman Group to pay or reimburse to any member of the Venator Group any benefit-related cost item that a member of 

 

30

 

the Huntsman Group has paid or reimbursed to any member of the Venator Group prior to the Plan Transfer Date.

 

Section 13.5                             Costs of Compliance with Agreement.  Except as otherwise provided in this Agreement or any other Transfer Document, each Party shall pay its own expenses in fulfilling its obligations under this Agreement.

 

Section 13.6                             Fiduciary Matters.  Huntsman and Venator each acknowledge that actions required to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good-faith determination (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility.

 

Section 13.7                             Entire Agreement.  This Agreement, together with the documents referenced herein (including the Separation Agreement, the Transfer Documents and the plans and agreements referenced herein), constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof.  Any conflicts between the provisions of this Agreement and the Separation Agreement (and the agreements referenced therein) or any Transfer Document shall be addressed in the manner set forth in Section 8.6 of the Separation Agreement.

 

Section 13.8                             Binding Effect; No Third-Party Beneficiaries; Assignment.  This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon any third parties any remedy, claim, Liability, reimbursement, cause of action, or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent contractor or any other individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other Party.

 

Section 13.9                             Amendment; Waivers.  No change or amendment may be made to this Agreement except by an instrument in writing signed on behalf of each of the Parties. Any Party may, at any time, (i) extend the time for the performance of any of the obligations or other acts of the other Party, (ii) waive any inaccuracies in the representations and warranties of the other Party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance by the other Party with any of the agreements, covenants, or conditions contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the Party to be bound thereby. No failure or delay on the part of any Party in the exercise of any 

 

31

 

right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant, or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercises thereof or of any other right.

 

Section 13.10                      Remedies Cumulative.  All rights and remedies existing under this Agreement or the Schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

Section 13.11                      Notices.  Unless otherwise expressly provided herein, all notices, claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed to be duly given: (i) when personally delivered, (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt is executed or the letter is refused by the addressee or its agent, (iii) if sent by overnight courier which delivers only upon the executed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the addressee or its agent, or (iv) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause (i), (ii) or (iii)), addressed to the attention of the addressee’s General Counsel at the address of its principal executive office or to such other address or facsimile number for a Party as it shall have specified by like notice.

 

Section 13.12                      Counterparts.  This Agreement, including the Schedules hereto and the other documents referred to herein, may be executed in multiple counterparts, each of which when executed shall be deemed to be an original but all of which together shall constitute one and the same agreement.

 

Section 13.13                      Severability.  If any provision of this Agreement or the application thereof to any Person or circumstance is determined by an arbitrator or court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof or thereof, or the application of such provision to Persons, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

 

Section 13.14                      Governing Law; Waiver of Trial by Jury.

 

(a)                                 This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of any choice of laws principles, including all matters of validity, construction, effect, enforceability, performance and remedies.

 

(b)                                 THE PARTIES EXPRESSLY WAIVE AND FOREGO ANY RIGHT TO TRIAL BY JURY.

 

Section 13.15                      Dispute Resolution.  The procedures set forth in Article IV of the Separation Agreement shall apply to any dispute, controversy or claim (whether sounding in contract, tort or otherwise) that arises out of or relates to this Agreement, any breach or alleged breach hereof, the transactions contemplated hereby (including all actions taken in furtherance of 

 

32

 

the transactions contemplated hereby on or prior to the date hereof), or the construction, interpretation, enforceability, or validity hereof. EACH OF THE PARTIES HERETO (A) UNCONDITIONALLY CONSENTS TO AND ACCEPTS HARRIS COUNTY, TEXAS AND MONTGOMERY COUNTY, TEXAS AS THE EXCLUSIVE JURISDICTIONS AND VENUES FOR ALL COURT AND ARBITRATION PROCEEDINGS CONTEMPLATED BY ARTICLE IV OF THE SEPARATION AGREEMENT AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT OR AWARD RENDERED THEREBY; (B) IRREVOCABLY WAIVES ANY OBJECTION SUCH PARTY MAY NOW HAVE OR HEREAFTER HAS AS TO THE VENUE OF ANY SUCH PROCEEDING, INCLUDING WITHOUT LIMITATION THAT SUCH LOCATION IS AN INCONVENIENT FORUM; AND (C) AGREES THAT A FINAL JUDGMENT OR AWARD IN A DISPUTE MAY BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

 

Section 13.16                      Performance.  Each of Huntsman and Venator shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any member of the Huntsman Group and any member of the Venator Group, respectively. The Parties each agree to take such further actions and to execute, acknowledge, and deliver, or to cause to be executed, acknowledged, and delivered, all such further documents as are reasonably requested by the other for carrying out the purposes of this Agreement or of any document delivered pursuant to this Agreement. The Parties also agree that by executing this Agreement, any actions that an authorized officer of any member of the Huntsman Group or the Venator Group, as applicable, that have been taken prior to the execution of this Agreement will be deemed to be ratified and approved by the Parties as approved actions taken in furtherance of this Agreement.

 

Section 13.17                      Construction.  This Agreement shall be construed as if jointly drafted by the Parties and no rule of construction or strict interpretation shall be applied against any Party.

 

Section 13.18                      Effect if IPO Does Not Occur.  Notwithstanding anything in this Agreement to the contrary, if the Separation Agreement is terminated prior to the Effective Date or the IPO is not otherwise consummated, then this Agreement shall be of no further force and effect.

 

[Signature Page Follows]

 

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

 

	
 
    	
HUNTSMAN   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ R.W.   Rogers
    
	
 
    	
Name:
    	
R.W.   Rogers
    
	
 
    	
Title:
    	
Senior   Vice President, Global Human Resources
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VENATOR MATERIALS   PLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Simon   Turner
    
	
 
    	
Name:
    	
Simon   Turner
    
	
 
    	
Title:
    	
President   and Chief Executive Officer
    

 

 

SCHEDULE 3.1(i) COLLECTIVE BARGAINING AGREEMENTS

 

Schedule 3.1(i)

 

	
Country
    	
 
    	
Site
    	
 
    	
Name of Agreement
    
	
Finland
    	
 
    	
Pori
    	
 
    	
Kemian Perusteollisuuden Työehtosopimus
    
	
Finland
    	
 
    	
Pori
    	
 
    	
Kemianalan Toimihenkilösopimus
    
	
Finland
    	
 
    	
Pori
    	
 
    	
Kemianteollisuuden ylempien toimihenkilöiden pöytäkirja
    
	
France
    	
 
    	
Calais
    	
 
    	
The Collective agreement of the Union of Chemical   Industries-France
    
	
France
    	
 
    	
Comines
    	
 
    	
The Collective agreement of the Union of Chemical   Industries-France
    
	
Germany
    	
 
    	
 
    	
 
    	
Labour agreement for the Chemical industry
    
	
Germany
    	
 
    	
Ibbenbüren (IBB)
    	
 
    	
Manteltarifvertrag Chemische Industrie Westfalen
    
	
Germany
    	
 
    	
Schwarzheide (SCH)
    	
 
    	
Manteltarifvertrag Chemische Industrie Ost
    
	
Germany
    	
 
    	
Duisburg
    	
 
    	
Manteltarifvertrag Chemische Industrie Nordrhein
    
	
Germany
    	
 
    	
Duisburg (DUI)
    	
 
    	
Manteltarifvertrag Chemische Industrie Nordrhein
    
	
Italy
    	
 
    	
Scarlino
    	
 
    	
Contratto Collettivo Nazionale di Lavoro per gli addetti   all’industria chimica, chimico-farmaceutica, delle fibre chimiche e dei   settori abrasivi, lubrificanti e GPL
    
	
Italy
    	
 
    	
Scarlino
    	
 
    	
Contratto Collettivo di Lavoro Dirigenti di Aziende produttrici   di beni e servizi
    
	
Italy
    	
 
    	
Scarlino
    	
 
    	
Contratto Integrativo Aziendale 2017-2019 Stabilimento di   Scarlino
    
	
Italy
    	
 
    	
Turin
    	
 
    	
The Italian National Contract for the Chemical business
    
	
Italy
    	
 
    	
Turin
    	
 
    	
The Italian National Contract for Executives
    
	
Spain
    	
 
    	
Huelva
    	
 
    	
Convenio colectivo de Huntsman P&A Spain
    
	
United Kingdom
    	
 
    	
Birtley
    	
 
    	
Voluntary recognition agreement between Huntsman pigments (UK)   limited and GMB and UNITE
    
	
United Kingdom
    	
 
    	
Greatham
    	
 
    	
Huntsman Tioxide- Trade union recognition and collective   bargaining agreement- Unite
    
	
United Kingdom
    	
 
    	
Kidsgrove
    	
 
    	
Voluntary recognition agreement between Huntsman pigments (UK)   limited and GMB
    
	
United States
    	
 
    	
Beltsville
    	
 
    	
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,   Allied Industrial and Service Workers International Union (AFL-CIO-CLC) Local   12328
    
	
United States
    	
 
    	
Los Angeles
    	
 
    	
General Teamsters, Airline, Aerospace and Allied Employees,   Warehousemen, Drivers, Construction, Rock and Sand Local 986
    
	
United States
    	
 
    	
St Louis
    	
 
    	
International Union, United Automobile, Aerospace and   Agricultural Implement Workers of America (UAW) Local 282
    

 

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