Document:

Prepared by R.R. Donnelley Financial -- EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

SETTLEMENT AGREEMENT 

Table of Contents 
  

							
	PREAMBLE	  	 	1	  
		
	RECITALS	  	 	2	  
			
	1.	  	Definitions	  	 	7	  
			
	2.	  	Lodging, Stay, Settlement Process, Termination, and Effective Date	  	 	17	  
			
	3.	  	Payment of Settlement Proceeds and Exchange of Other Consideration	  	 	23	  
			
	4.	  	Mutual Releases and Covenants Not to Sue	  	 	25	  
			
	5.	  	Representations of the Parties	  	 	34	  
			
	6.	  	Affirmative Covenants	  	 	36	  
			
	7.	  	Entire Agreement	  	 	40	  
			
	8.	  	Effect if Void	  	 	40	  
			
	9.	  	Confidentiality	  	 	41	  
			
	10.	  	Remedies	  	 	41	  
			
	11.	  	Reservation of Rights	  	 	42	  
			
	12.	  	Notice	  	 	44	  
			
	13.	  	Miscellaneous	  	 	46	  

 PREAMBLE 

THIS SETTLEMENT AGREEMENT (the “Agreement” or “Settlement Agreement”) is made on April 3,
2014, by and among (1) the Anadarko Litigation Trust (the “Litigation Trust”), by and through its authorized representative and trustee, John C. Hueston (the “Litigation Trustee”), not
individually but solely in his representative capacity as Litigation Trustee; (2) the United States of America, in its capacity as plaintiff-intervenor in the Adversary Proceeding (as defined below) pursuant to its Complaint-in-Intervention (as
defined below), and acting for and on behalf of the United States Environmental Protection Agency (“U.S. EPA”), the United States Department of Agriculture, acting through the United States Forest Service (the
“Forest Service”), the United States Department of the Interior (“DOI”), acting through the Fish and Wildlife Service and the Bureau of Land Management, the United States Department of Commerce, acting
through the National Oceanic and Atmospheric Administration (“NOAA”), the United States Department of Defense, including the United States Department of the Army, United States Army Corps of Engineers, United States
Department of the Navy, and United States Department of the Air Force (“DOD”), and the Nuclear Regulatory Commission (“NRC”); and (3) Anadarko Petroleum Corporation, Kerr-McGee Corporation,
Anadarko US Offshore Corporation (f/k/a Kerr-McGee Oil & Gas Corporation), Kerr-McGee Worldwide Corporation, KM Investment Corporation (improperly named as Kerr-McGee Investment Corporation in the Second Amended Adversary Complaint (as
defined below)), Kerr-McGee Shared Services Company LLC, Kerr-McGee Credit LLC1, and Kerr-McGee Stored Power Company LLC (collectively, “Anadarko,” and each individually an
“Anadarko Entity”). 
  

	1 	Kerr-McGee Credit LLC was dissolved in 2007. At the time of dissolution, Kerr-McGee Worldwide Corporation was its sole member. 

 RECITALS 

A. On January 12, 2009, Tronox Incorporated and certain of its affiliates (collectively, the “Debtors”) commenced
chapter 11 cases (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). On November 30, 2010, the Bankruptcy Court confirmed
the Debtors’ First Amended Joint Plan of Reorganization (as defined below) (the “Plan”). On February 14, 2011, the Plan became effective. 

B. In the Chapter 11 Cases, the United States, other governmental entities, and other Persons filed Proofs of Claim (as defined below) against
the Debtors on account of, among other things, alleged environmental claims, obligations, and/or liabilities at certain of the Covered Sites (as defined below) (as to such Proofs of Claims filed by the United States and other governmental entities,
the “Bankruptcy Environmental Claims,” and as to such Proofs of Claim filed by other Persons, the “Bankruptcy Indirect Environmental Claims”). Various tort claimants filed Proofs of Claim
against the Debtors on account of alleged tort liabilities, including for personal injury and property damage (the “Bankruptcy Tort Claims” and, together with the Bankruptcy Environmental Claims and the Bankruptcy Indirect
Environmental Claims, the “Bankruptcy Claims”). The Bankruptcy Claims were (or will be) resolved or addressed pursuant to the Plan and related agreements, including the Environmental Settlement Agreement (as defined below),
the Cimarron Environmental Response Trust Agreement, the Multistate Environmental Response Trust Agreement, the Nevada Environmental Response Trust Agreement, the Savannah Environmental Response Trust Agreement, the West Chicago Environmental
Response Trust Agreement, and the Tort Claims Trust Agreement (each as 

  
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defined below and collectively, but excluding the Plan and the Environmental Settlement Agreement, the “Environmental and Tort Trust Agreements”), and the Litigation Trust
Agreement (as defined below), and other prior proceedings of the Bankruptcy Court. 
 C. There are two complaints against Anadarko currently
being jointly litigated in Tronox Inc., et al. v. Kerr-McGee Corporation, et al. (In re Tronox Inc.), Adv. Proc. No. 09-01198 (Bankr. S.D.N.Y.): 

(i) the Second Amended Adversary Complaint (the “Second Amended Adversary Complaint”), originally commenced during
the Chapter 11 Cases by certain of the Debtors but assigned and transferred to, and currently prosecuted by, the Litigation Trust for the benefit of its beneficiaries (including the United States) pursuant to the Plan, the Litigation Trust
Agreement, and the Environmental Settlement Agreement, and which, at the time of trial, asserted claims including: actual fraudulent transfer under Bankruptcy Code §§ 544(b) and 550(a); constructive fraudulent transfer under Bankruptcy
Code §§ 544(b) and 550(a); constructive fraudulent transfer under Bankruptcy Code §§ 548 and 550(a); breach of fiduciary duty; equitable subordination; and equitable disallowance; and which originally asserted claims for civil
conspiracy, aiding and abetting fraudulent conveyance, unjust enrichment, disallowance of claims pursuant to § 502(d) of the Bankruptcy Code, and disallowance of contingent indemnity claims pursuant to § 502(e)(1)(B) of the Bankruptcy
Code; and 
 (ii) the Complaint-In-Intervention (the “Complaint-in-Intervention”) filed by the United States,
asserting claims under the FDCPA (as defined below). 
 D. The Plan, Litigation Trust Agreement, and Environmental Settlement Agreement
assigned, as provided in the Confirmation Order (as defined below) (including, but not limited to, 

  
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paragraphs 126, 127 and 131) and the Litigation Trust Agreement (including, but not limited to, sections 2(a)(iii), 2(a)(viii), 2(b) and 4(b)(iv)), all of the Debtors’ respective rights and
interests in the Adversary Proceeding (as defined below, but excluding the Complaint-in-Intervention) and any claim or cause of action of the Debtors related thereto, whether or not asserted in the Adversary Proceeding, to the Litigation Trust for
the benefit of the entities listed in Section 1(d) of the Litigation Trust Agreement, which include the Tort Claims Trust (the “Tort Claims Trust”), the Cimarron Environmental Response Trust (“Cimarron
Trust”), the Multistate Environmental Response Trust (the “Multistate Trust”), the Nevada Environmental Response Trust (the “Nevada Trust”), the Savannah Environmental Response Trust
(“Savannah Trust”) (the Tort Claims Trust, Cimarron Trust, Multistate Trust, Nevada Trust and Savannah Trust, along with the West Chicago Environmental Response Trust (“West Chicago Trust”), are
hereafter, collectively, the “Environmental and Tort Trusts” and each individually an “Environmental and Tort Trust”), and certain governmental entities that had asserted Bankruptcy Environmental
Claims against the Debtors (collectively, “Litigation Trust Beneficiaries” and each individually a “Litigation Trust Beneficiary”). Pursuant to the Plan, Litigation Trust Agreement, Environmental
Settlement Agreement, and Environmental and Tort Trust Agreements (other than the West Chicago Environmental Response Trust Agreement), the Litigation Trust Beneficiaries and beneficiaries of the Environmental and Tort Trusts (together with the
Litigation Trust Beneficiaries, the “Beneficiaries” and each individually a “Beneficiary”) are entitled to have paid, on account of their Bankruptcy Environmental Claims and Bankruptcy Tort Claims,
specified allocations (the “Distribution Scheme”) of a share of the net proceeds of any recovery from the Adversary Proceeding, the principal allocation of which involves payment of approximately 88% of the net proceeds of
any recovery on account of Bankruptcy Environmental Claims and payment of 

  
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approximately 12% of the net proceeds of any recovery on account of Bankruptcy Tort Claims, with subsidiary allocations on account of the Bankruptcy Environmental Claims and Bankruptcy Tort
Claims governed by the Environmental Settlement Agreement, Litigation Trust Agreement, and the Environmental and Tort Trust Agreements (other than the West Chicago Environmental Response Trust Agreement). 

E. The Bankruptcy Claims and the Adversary Proceeding relate to, among other things, tort claims and environmental claims, causes of action
and obligations asserted against the Debtors in respect of the Covered Sites (as defined below). As and to the extent described more fully in the Environmental Settlement Agreement, the Distribution Scheme provides that approximately 88% of the net
proceeds generated from the Adversary Proceeding will be distributed to trusts created to conduct Environmental Actions at one or more Covered Sites and to federal, state, or tribal governments in satisfaction of claims for costs previously expended
or to be expended at Covered Sites or for Environmental Actions expected to be performed at Covered Sites. 
 F. On May 8, 2012, the
Bankruptcy Court held that Anadarko Petroleum Corporation was entitled to summary judgment dismissing it from the Adversary Proceeding. The other Anadarko Entities (“Anadarko Trial Defendants”) remained subject to the claims
in the Adversary Proceeding. An order has not yet been entered reflecting the dismissal of Anadarko Petroleum Corporation with prejudice. 

G. From May 15, 2012 to September 13, 2012, the Bankruptcy Court held trial with respect to claims against the Anadarko Trial
Defendants. 
 H. On December 12, 2013, the Bankruptcy Court issued its Memorandum Opinion, After Trial (the
“Decision”), finding the Anadarko Trial Defendants liable under the Second 

  
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Amended Adversary Complaint for actual and constructive fraudulent conveyances, but not liable for breach of fiduciary duty. The Bankruptcy Court requested and has received further briefing on
issues respecting the amount of damages. The Decision is not a final judgment and, to date, the Bankruptcy Court has not issued a final judgment. 

I. This Agreement represents a compromise and settlement of disputed claims, asserted and unasserted. In the absence of this Agreement,
Anadarko would exercise its rights to seek further review and/or appeal in connection with the Adversary Proceeding. 
 J. On
August 11, 2009, Anadarko filed Proofs of Claim (as defined below) against the Debtors, which it subsequently amended on September 11, 2009 and September 11, 2010. Also, on January 13, 2014, Kerr-McGee Corporation, pursuant to
the Decision, filed a claim under section 502(h) of the Bankruptcy Code on behalf of itself and the other Anadarko Trial Defendants. 
 K.
The Parties agree to settle, compromise and resolve their disputes related to the Adversary Proceeding, including the Trust Derivative Claims as if such Trust Derivative Claims were already asserted and now pending against the Anadarko Released
Parties, and to address other matters, as and to the extent provided herein. 
 L. This Agreement will settle, compromise, resolve and close
the Adversary Proceeding and settle, compromise, resolve and extinguish the Trust Derivative Claims, any claims that were asserted or that could have been asserted in the Second Amended Adversary Complaint, and the claims asserted in the
Complaint-in-Intervention and the claims that could have been asserted in the Complaint-in-Intervention relating to the subject matter of the Adversary Proceeding, together and on a global basis, to the extent provided herein. 

  
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 M. This Agreement is fair and reasonable and in the public interest, and is an appropriate means
of resolving these matters as it, among other things, will enable the investigation, remediation, cleanup, and recovery of natural resource damages and other compensation with respect to Covered Sites as and to the extent provided by the
Distribution Scheme, and provide for payment on account of Bankruptcy Tort Claims as and to the extent provided by the Distribution Scheme, and as and to the extent provided herein. 

NOW THEREFORE, without any final adjudication of any issue of fact or law, in consideration of the mutual promises and covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, by their attorneys and/or authorized officials, hereby agree as follows: 

AGREEMENT 
 1.
Definitions. 
 1.1. “9019 Recommendation Motion” shall have the meaning set forth in Section 2.3.3.

 1.2. “Adversary Proceeding” shall mean the adversary proceeding pending in the Bankruptcy Court captioned
Tronox Incorporated, et al. v. Anadarko Petroleum Corporation, et al., Adversary Proceeding No. 09-01198 (ALG), including the claims asserted in the Second Amended Adversary Complaint, all claims and/or remedies that a Debtor transferred
to the Litigation Trust that were asserted or could have been asserted in this adversary proceeding, and the claims asserted in the Complaint-in-Intervention and that could have been asserted in the Complaint-in-Intervention relating to the subject
matter of this adversary proceeding. 
 1.3. “AEA” shall mean the Atomic Energy Act of 1954, 42 U.S.C. § 2011
et seq. 

  
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 1.4. “Affiliate” shall have the meaning given to such term in 11 U.S.C.
§ 101(2), except that for an entity that is not a debtor in a bankruptcy case, this definition shall be construed as if it were. 

1.5. “Agreement” or “Settlement Agreement” shall have the meaning set forth in the preamble
hereto. 
 1.6. “Anadarko” and “Anadarko Entity” shall have the meanings set forth in the
preamble hereto. 
 1.7. “Anadarko Covenant Parties” shall mean Anadarko and Anadarko’s successors, their
affiliates and predecessors (listed on Schedule 1), assigns, and all of their past, present and future directors, officers, managers, members and employees, but only to the extent that the alleged liability of such successor, affiliate,
predecessor, assign, director, officer, manager, member, or employee is based on its status as and in its capacity as a successor, affiliate, predecessor, assign, director, officer, manager, member or employee of Anadarko. 

1.8. “Anadarko Party” shall mean any entity included under either Section 1.7 or 1.9. 

1.9. “Anadarko Released Parties” shall mean Anadarko and each of its Affiliates, and each of their respective
predecessors, successors, and assigns, all of their past, present, and future officers, directors, employees, managers, members, agents, attorneys and other representatives. 

1.10. “Anadarko Trial Defendants” shall have the meaning set forth in Recital F. 

1.11. “Approval Motion” and “Approval Order” shall have the meanings set forth in
Section 2.3.3. 

  
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 1.12. “Assignment Agreement” shall mean the agreement entitled
“Assignment Agreement” dated as of December 31, 2002 between Kerr-McGee Chemical Worldwide LLC and Kerr-McGee Oil & Gas Corporation. 

1.13. “Assignment, Assumption, and Indemnity Agreement” shall mean the agreement entitled “Assignment,
Assumption, and Indemnity Agreement” dated as of December 31, 2002 between Kerr-McGee Chemical Worldwide LLC and Kerr-McGee Oil & Gas Corporation. 

1.14. “Bankruptcy Claims” shall have the meaning set forth in Recital B. 

1.15. “Bankruptcy Code” shall mean title 11 of the U.S. Code, 11 U.S.C. §§ 101-1532, as hereinafter
amended. 
 1.16. “Bankruptcy Court” shall have the meaning set forth in Recital A. 

1.17. “Bankruptcy Environmental Claims” and “Bankruptcy Tort Claims” shall have the meanings
set forth in Recital B. 
 1.18. “Beneficiaries” shall have the meaning set forth in Recital D. 

1.19. “Business Day” and “Business Days” shall mean any day other than a Saturday, Sunday or
other day on which banks in New York City are authorized or required by law to close. 
 1.20. “CAA” shall mean the
Clean Air Act, 42 U.S.C. § 7401 et seq., as hereinafter amended. 
 1.21. “CERCLA” shall mean the
Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601-9675, as hereinafter amended. 
 1.22.
“Chapter 11 Cases” shall have the meaning set forth in Recital A. 
 1.23. “Cimarron Environmental
Response Trust Agreement” shall mean the Environmental Response Trust Agreement entered into by and among the Debtors, the Cimarron 

  
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Trustee, and certain other entities, an execution copy of which was approved by the Bankruptcy Court on February 14, 2011 [Case No. 09-10156 (ALG), Dkt. No. 2812]. This term shall
also include all schedules, exhibits and attachments thereto. 
 1.24. “Cimarron Trust” shall have the meaning set
forth in Recital D. 
 1.25. “Complaint-in-Intervention” shall have the meaning set forth in Recital C. 

1.26. “Confirmation Order” shall mean the Findings of Fact, Conclusions of Law and Order Confirming The First Amended
Joint Plan of Reorganization of Tronox Incorporated et al. Pursuant to Chapter 11 of the Bankruptcy Code (Case No. 09-10156, Dkt. No. 2567). 

1.27. “Covered Sites” shall mean any and all Sites (i) listed in Attachments A-1, A-2, A-3, A-4, B, D, and E of
the Environmental Settlement Agreement, (ii) referenced in the Tort Claims Trust Agreement, including all schedules and attachments thereto, (iii) which were the subject of any Bankruptcy Claim, or (iv) listed in Appendix 4 to the
Written Direct of Dr. Neil Ram (Adv. Proc. Dkt. No.417-9). 
 1.28. “CWA” shall mean the Clean Water Act, 33
U.S.C. §§ 1251-1387, as hereinafter amended. 
 1.29. “Debtors” shall have the meaning set forth in
Recital A and shall include Tronox Incorporated; Tronox Luxembourg S.ar.l; Cimarron Corporation; Southwestern Refining Company, Inc.; Transworld Drilling Company; Triangle Refineries, Inc.; Triple S, Inc.; Triple S Environmental Management
Corporation; Triple S Minerals Resources Corporation; Triple S Refining Corporation; Tronox LLC; Tronox Finance Corp.; Tronox Holdings, Inc.; Tronox Pigments (Savannah) Inc.; and Tronox Worldwide LLC. 

1.30. “Decision” shall have the meaning set forth in Recital H. 

  
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 1.31. “Defendants” shall mean any and all of the defendants named in the
Second Amended Adversary Complaint or the Anadarko Entities named as defendants in the Complaint-in-Intervention or both. 
 1.32.
“Distribution Scheme” shall have the meaning set forth in Recital D. 
 1.33. “District
Court” shall mean the United States District Court for the Southern District of New York. 
 1.34.
“DOD” shall have the meaning set forth in the preamble hereto. 
 1.35. “DOI” shall have the
meaning set forth in the preamble hereto. 
 1.36. “E&P Business” shall have the meaning provided in the
Assignment Agreement and the Assignment, Assumption, and Indemnity Agreement. 
 1.37. “Effective Date” shall have
the meaning set forth in Section 2.4.1. 
 1.38. “Environmental Actions” shall have the meaning given to such
term in the Environmental Settlement Agreement, except that (i) the following words are omitted from the first sentence of that definition: “that occur after the Effective Date and,” (ii) the last sentence is deleted in its
entirety, and (iii) the term is not limited to the Sites identified in that definition; provided further that Environmental Actions at a Site include those relating to releases of hazardous substances from a portion of the Site and all areas
affected by migration of such substances from the Site. 
 1.39. “Environmental and Tort Trusts” shall have the
meaning set forth in the Recital D. 
 1.40. “Environmental and Tort Trust Agreements” shall have the meaning set
forth in Recital B. 
 1.41. “Environmental Motion” shall have the meaning set forth in Section 2.3.2. 

  
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 1.42. “Environmental Settlement Agreement” shall mean the Consent Decree
and Environmental Settlement Agreement entered into by and among the Debtors, the United States, and certain other entities, which was approved by the Bankruptcy Court on January 26, 2011 [Case No. 09-10156 (ALG), Dkt. No. 2747], as
amended by the First Amendment to Consent Decree and Environmental Settlement Agreement, which was approved by the Bankruptcy Court on February 14, 2011 [Case No. 09-10156 (ALG), Dkt. No. 2812]. This term shall also include all
schedules, exhibits and attachments thereto. 
 1.43. “Execution” shall be deemed to have occurred upon delivery of
all executed signature pages to all Parties. 
 1.44. “FDCPA” shall mean Subchapter D of the Federal Debt Collection
Procedures Act, 28 U.S.C. §§ 3301-3308, as hereinafter amended. 
 1.45. “Final” shall have the meaning
set forth in Section 2.3.5. 
 1.46. “Forest Service” shall have the meaning set forth in the preamble hereto.

 1.47. “Initial Settlement Amount” shall have the meaning set forth in Section 3.1. 

1.48. “Interest” shall have the meaning set forth in Section 3.3. 

1.49. “Litigation Trust” and “Litigation Trustee” shall have the meanings set forth in the
preamble hereto. 
 1.50. “Litigation Trust Agreement” shall mean the Anadarko Litigation Trust Agreement entered
into by and among the Debtors, the Litigation Trustee, the United States, certain of the Litigation Trust Beneficiaries, and certain other entities, an execution copy of which was approved by the Bankruptcy Court on February 14, 2011 [Case
No. 09-10156 (ALG), Dkt. No. 2812]. This term shall also include all schedules, exhibits and attachments thereto. 

  
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 1.51. “Litigation Trust Beneficiaries” shall have the meaning set forth
in Recital D. 
 1.52. “Lodging Date” shall mean the date this Agreement is lodged with the Bankruptcy Court in
accordance with Section 2.1. 
 1.53. “Multistate Environmental Response Trust Agreement” shall mean the
Environmental Response Trust Agreement entered into by and among the Debtors, the Multistate Trustee, and certain other entities, an execution copy of which was approved by the Bankruptcy Court on February 14, 2011 [Case No. 09-10156
(ALG), Dkt. No. 2812]. This term shall also include all schedules, exhibits and attachments thereto. 
 1.54. “Multistate
Trust” shall have the meaning set forth in Recital D. 
 1.55. “Nevada Environmental Response Trust
Agreement” shall mean the Environmental Response Trust Agreement entered into by and among the Debtors, the Nevada Trustee, and certain other entities, an execution copy of which was approved by the Bankruptcy Court on February 14,
2011 [Case No. 09-10156 (ALG), Dkt. No. 2812]. This term shall also include all schedules, exhibits and attachments thereto. 

1.56. “Nevada Trust” shall have the meaning set forth in Recital D. 

1.57. “NOAA” shall have the meaning set forth in the preamble hereto. 

1.58. “NRC” shall have the meaning set forth in the preamble hereto. 

1.59. “NRD” shall mean damages or costs incurred as a result of any injury to, destruction of, loss of, or loss of use
of natural resources, as defined in 33 U.S.C. § 2701(20) and as used in 42 U.S.C. 9607(f), or in any other comparable federal law, including any and all natural resource damages assessment costs and restoration actions. 

  
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 1.60. “OPA” shall mean the Oil Pollution Act of 1990, 33 U.S.C.
§§ 2701-2762, as hereinafter amended. 
 1.61. “Parties” shall mean the Litigation Trust, the United
States on behalf of U.S. EPA, DOD, DOI (on behalf of the Bureau of Land Management and the Fish and Wildlife Service), the Forest Service, NOAA, and NRC, and each Anadarko Entity. 

1.62. “Party” shall mean any one of the Parties described in Section 1.61. 

1.63. “Payment Date” shall have the meaning set forth in Section 3.1. 

1.64. “Person” shall mean any individual, corporation, partnership, limited partnership, association, joint stock
company, estate, legal representative, trust, unincorporated association, government, tribe, tribal nation, political subdivision, department, instrumentality or agency thereof, and any other business or legal entity. 

1.65. “Plan” shall mean the Debtors’ First Amended Joint Plan of Reorganization, as attached as an exhibit to the
Bankruptcy Court’s Findings of Fact, Conclusions of Law and Order Confirming the First Amended Joint Plan of Reorganization [Case No. 09-10156 (ALG), Dkt. No. 2567]. 

1.66. “Plan Effective Date” shall mean February 14, 2011. 

1.67. “Proof of Claim” shall mean any proof of claim, or writing with similar effect, filed in the Chapter 11 Cases,
whether timely filed or not, pursuant to section 501 of the Bankruptcy Code, Federal Rule of Bankruptcy Procedure 3001, and/or any order of the Bankruptcy Court in the Chapter 11 Cases. 

1.68. “RCRA” shall mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901-6992k, as hereinafter
amended. 

  
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 1.69. “Reorganized Debtors” shall have the meaning given to such term in
the Plan. 
 1.70. “Report and Recommendation” shall have the meaning set forth in Section 2.3.3. 

1.71. “SDWA” shall mean the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., as hereinafter amended.

 1.72. “Savannah Environmental Response Trust Agreement” shall mean the Environmental Response Trust Agreement
entered into by and among the Debtors, the Savannah Trustee, and certain other entities, an execution copy of which was approved by the Bankruptcy Court on February 14, 2011 [Case No. 09-10156 (ALG), Dkt. No. 2812]. This term shall
also include all schedules, exhibits and attachments thereto. 
 1.73. “Savannah Trust” shall have the meaning set
forth in Recital D. 
 1.74. “Second Amended Adversary Complaint” shall mean the complaint referred to in Recital C.

 1.75. “Settlement Proceeds” shall have the meaning set forth in Section 3.1. 

1.76. “Settlement Approval Process” shall have the meaning set forth in Section 2.2. 

1.77. “Site” shall mean “facility,” as that term is defined in CERCLA Section 101(9), 42 U.S.C.
§ 9601(9), as hereinafter amended. 
 1.78. “Stay” shall have the meaning set forth in Section 2.2.

 1.79. “Tort Claims Trust” shall have the meaning set forth in Recital D. 

1.80. “Tort Claims Trust Agreement” shall mean the Tronox Incorporated Tort Claims Trust Agreement entered into by and
among Tronox Incorporated, Garretson Resolution 

  
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Group, Inc., solely in its capacity as Tort Claims Trustee, and Wilmington Trust Company, solely in its capacity as Delaware Trustee, as amended [which are filed at Case No. 09-01198 (ALG),
Dkt. No. 634]. This term shall also include all schedules, exhibits and attachments thereto. 
 1.81. “Trust Advisory
Board” shall have the meaning given to such term in the Litigation Trust Agreement. For the avoidance of doubt, members of the Trust Advisory Board as of the date of this Agreement are the Garretson Resolution Group, Inc., Greenfield
Environmental Multistate Trust LLC, Le Petomane XXVII, Inc., Karen Cordry, Kathleen A. Roberts, and Pamela Esterman. 
 1.82.
“Trust Derivative Claims” shall mean any and all claims and/or remedies that are held and/or controlled by, and which were or could have been asserted by, the Litigation Trust against any Anadarko Released Party, seeking
relief or recovery arising from harm to any Debtor or any Debtor’s estate, based on any legal theory including, without limitation, such claims and/or remedies under federal or state law, statutory or common law, in equity or otherwise, arising
out of or in any way related to (i) the Adversary Proceeding; (ii) the Chapter 11 Cases; (iii) the Bankruptcy Claims; (iv) the Covered Sites; and/or (v) any Anadarko Released Party’s ownership, management, operation,
status, tenure, conduct, omission, action or inaction at any time as a stockholder, affiliate, owner, partner, member, manager, director, officer, employee, servant, agent, representative, attorney, creditor, successor, assign or other relationship
with a Debtor and/or any of its predecessors, in each case, including, without limitation, such claims and/or remedies that are actions, causes of action, lawsuits, suits, claims, counterclaims, cross-claims, liabilities, interests, judgments,
obligations, rights, demands, debts, damages, losses, grievances, promises, remedies, liens, attachments, garnishments, prejudgment and post-judgment interest, costs and expenses (including attorneys’ fees and costs incurred or to be incurred),
including Unknown Claims to the 

  
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maximum extent allowed under the law, whether pled or unpled, fixed or contingent, choate or inchoate, matured or unmatured, foreseen or unforeseen, accrued or unaccrued, past, present or future
for fraudulent transfer, fraudulent conveyance, preference, turnover, breach of fiduciary duty, negligence, gross negligence, mismanagement, civil conspiracy, aiding and abetting, unjust enrichment, constructive trust, equitable subordination,
equitable disallowance, agency, joint venture, alter ego, corporate veil piercing, usurpation of corporate opportunity, successor liability, breach of contract, fraud, intentional, reckless or negligent misrepresentation, contribution, indemnity,
and all other such claims and/or remedies. 
 1.83. “Unknown Claims” shall mean any and all claims that the owner of
the claim is not aware of or does not suspect to exist for any reason. 
 1.84. “United States” shall mean the
United States of America and each department, agency, and instrumentality of the United States. 
 1.85. “U.S. EPA”
shall have the meaning set forth in the preamble hereto. 
 1.86. “West Chicago Environmental Response Trust
Agreement” shall mean the Environmental Response Trust Agreement entered into by and among the Debtors, the West Chicago Trustee, and certain other entities, an execution copy of which was approved by the Bankruptcy Court on
February 14, 2011 [Case No. 09-10156 (ALG), Dkt. No. 2812]. This term shall also include all schedules, exhibits and attachments thereto. 

2. Lodging, Stay, Settlement Process, Termination, and Effective Date. 

2.1. Lodging of Agreement. Within ten (10) Business Days of the date of Execution of this Agreement by all Parties hereto, the
United States shall lodge this Agreement with the Bankruptcy Court and, as soon as practicable thereafter, submit for publication a notice for public comment in the Federal Register regarding this Agreement. 

  
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 2.2. Stay. Contemporaneously with the lodging of this Agreement with the Bankruptcy Court,
the Litigation Trust, the United States, and Anadarko shall jointly seek from the Bankruptcy Court a stay (the “Stay”) of the Adversary Proceeding to allow for implementation of this Agreement (the “Settlement
Approval Process”), which Stay shall remain in place until either (i) the termination of this Agreement or (ii) dismissal with prejudice of the Adversary Proceeding in accordance with Section 6.5, whichever occurs first.

 2.3. Approval Motions, Public Comment, Rule 9019. 

2.3.1. The United States, in its discretion, may terminate this Agreement if the public comments regarding this Agreement, following notice
in the Federal Register, disclose facts or considerations that indicate that this Agreement is inappropriate, improper or inadequate, by providing a notice of termination to all Parties in accordance with Section 12. 

2.3.2. Promptly after the close of the public comment period, if the United States determines not to terminate this Agreement, the United
States shall file in the Bankruptcy Court a motion (the “Environmental Motion”) (i) seeking a report and recommendation recommending approval of this Agreement pursuant to the applicable fairness standards
with respect to the covenants not to sue under environmental law, which report and recommendation the Parties will request to be contained in the same report and recommendation sought by the 9019 Recommendation Motion (as defined below), and
(ii) requesting oral argument. 
 2.3.3. Within ten (10) Business Days after Execution of this Agreement by all Parties hereto,
the Litigation Trust and Anadarko shall file in the Bankruptcy Court a motion, together with one or more supporting affidavits, (the “9019 Recommendation Motion”) (substantially in the form attached hereto as Exhibit
A, which shall include a form of dismissal 

  
 18 

 
with prejudice) pursuant to Federal Rule of Bankruptcy Procedure 9019 and other applicable law (i) seeking a report and recommendation recommending approval of the settlement embodied by
this Agreement pursuant to the applicable fairness standards under Federal Rule of Bankruptcy Procedure 9019 and other applicable law, which report and recommendation the parties will request to be contained in the same report and recommendation
sought by the Environmental Motion (the combined report and recommendation sought by the Environmental Motion and the 9019 Recommendation Motion, the “Report and Recommendation”), and (ii) requesting a hearing in
connection with the 9019 Recommendation Motion, which hearing the Parties shall request to take place simultaneously with any oral argument on the Environmental Motion. Promptly after the Bankruptcy Court issues a Report and Recommendation which
recommends entry of an order by the District Court approving this Agreement, the Litigation Trust and Anadarko shall seek approval of the Report and Recommendation by the District Court, consistent and in compliance with the District Court’s
Amended Standing Order of Reference, 12 Misc. 00032 (S.D.N.Y. Jan. 31, 2012), by filing a motion (the “Approval Motion”) or taking such other actions as may be necessary to request that the District Court review and approve
the Report and Recommendation and issue an order (the “Approval Order”) (substantively identical to the form attached hereto as Exhibit B) approving the Report and Recommendation and determining that this Agreement
meets the applicable fairness standards under Federal Rule of Bankruptcy Procedure 9019 and the applicable fairness standards with respect to the covenants not to sue under environmental law. Without limiting the foregoing, the proposed Approval
Order submitted to the District Court shall include: 
  

	 	(a)	findings of fact and conclusions of law determining that notice of this Agreement has been complete and adequate; 

  
 19 

	 	(b)	a determination that the terms of this Agreement are fair, just and appropriate; 

  

	 	(c)	 an injunction pursuant to, inter alia, 28 U.S.C. § 1651, § 105(a) of the Bankruptcy Code and Bankruptcy Rules 7001 and 7065,
permanently enjoining (i) any Debtor(s), (ii) any creditor of any Debtor who filed or could have filed a claim in the Chapter 11 Cases, (iii) any other Person whose claim (A) in any way arises from or is related to the Adversary
Proceeding, (B) is a Trust Derivative Claim, or (C) is duplicative of a Trust Derivative Claim, and (iv) any Person acting or purporting to act as an attorney for any of the preceding from asserting against any Anadarko Released Party
(I) any Trust Derivative Claims or (II) any claims that are duplicative of Trust Derivative Claims, whether or not held or controlled by the Litigation Trust, or whether or not the Litigation Trust could have asserted such claims against any
Anadarko Released Party; provided, however, that such Approval Order shall also include the following language: “The injunction herein shall not apply to or bar the following: (i) any criminal liability; (ii) any liability arising
under Title 26 of the United States Code (Internal Revenue Code) or state tax laws; (iii) any liability arising under federal or state securities laws; (iv) any action to enforce a covenant not to sue, release, or agreement not to seek
reimbursement contained in the Settlement Agreement; (v) any liability that an Anadarko Released Party might have that does not arise from or through a liability of a Debtor; (vi) any liability of an Anadarko Released Party due to its
status or acts or omissions since November 28, 2005 as a/an (A) owner, (B) operator, (C) discharger, (D) lessee, (E) permittee, (F) licensee, (G) person in charge,

  
 20 

	 	
(H) holder of a right of use and easement, (I) arranger for disposal or treatment, (J) transporter, or (K) person who generates, handles, transports, treats, stores or
disposes of solid or hazardous waste; and (vii) any liability relating to the E&P Business or the stored power or battery business (including, but not limited to, as owned or operated by U.S. Avestor LLC and Kerr-McGee Stored Power Company
LLC2), and (viii) any liability that any Anadarko Released Party retained, received or assumed pursuant to the Assignment Agreement or Assignment, Assumption, and Indemnity Agreement. For the
avoidance of doubt, to the extent that a liability of an Anadarko Released Party excluded from the injunction herein by the preceding sentence would be a liability for which such Anadarko Released Party would be jointly and severally liable with
others, including but not limited to one or more Debtors or Reorganized Debtors, under applicable law, nothing in this injunction is intended to alter any such applicable principles of joint and several liability where otherwise provided by law. The
injunction herein further does not apply to the Litigation Trust and the United States, which are providing releases and covenants not to sue in the Settlement Agreement.” 

Subject to Section 2.3.1, the United States shall file statements in support of this Agreement in the Bankruptcy Court and the District Court. 

2.3.4. Anadarko shall serve the 9019 Recommendation Motion (and, if applicable, the Approval Motion) on the Litigation Trust Beneficiaries
and all other Persons 
  

	2 	Provided, however, that as it relates to Kerr-McGee Stored Power Company LLC, Section 2.3.3(c)(vii) is applicable only to the extent that such liability, if any,
relates to or arises from the stored power or battery business.

  
 21 

 
currently or previously appearing on the most recent version of the Bankruptcy Court’s Rule 2002 service list and on the service list in the Adversary Proceeding. Anadarko may supplement
this service with such additional service or publication it deems appropriate. Anadarko shall be solely responsible for all fees and costs incurred in providing the notice described in this Section 2.3.4. 

2.3.5. For the purpose of this Agreement, any court order (including the Approval Order) becomes “Final” when it is
no longer subject to appeal, rehearing, reconsideration, or petition for certiorari because (i) the time for all such appeals, motions for rehearing or reconsideration, and petitions for certiorari has expired, (ii) no appeal, motion for
rehearing or reconsideration, or petition for certiorari is pending in the District Court, the Court of Appeals for the Second Circuit or the U.S. Supreme Court with respect to such order, and (iii) all issues, if any, remanded to a court with
respect to such order have been addressed in an order on remand that is itself Final. 
 2.4. Effective Date. 

2.4.1. The effective date of this Agreement is the date on which an Approval Order entered by the District Court approving the Report and
Recommendation recommending approval of this Agreement becomes Final (the “Effective Date”). Promptly thereafter, Anadarko shall serve a notice that this Agreement has become effective on the Persons listed in the first
sentence of Section 2.3.4 and, in Anadarko’s discretion, on any additional Persons. Anadarko shall be solely responsible for all fees and costs incurred in providing the foregoing notices. 

2.4.2. This Agreement shall become effective on the Effective Date, except for Sections 2.1, 2.2, 2.3, 2.5, 5, 6.1, 6.3, 7, 8, 9, 10, 11, 12,
and 13 of this Agreement, 

  
 22 

 
which Sections shall, subject to Section 2.3.1, become effective upon Execution of this Agreement by all Parties. 

2.5. Termination. 

2.5.1. In the event that an order denying the Environmental Motion, the 9019 Recommendation Motion, or the Approval Motion (if applicable)
becomes Final, or in the event that the United States exercises its right to terminate this Agreement under Section 2.3.1, then this Agreement shall terminate and be null and void (except that Sections 8 and 9 shall survive termination of this
Agreement), and each of the Parties’ respective interests, rights, remedies and defenses shall be fully restored without prejudice. 

2.5.2. Upon termination of this Agreement, the Stay will terminate. 

3. Payment of Settlement Proceeds and Exchange of Other Consideration. 

3.1. No later than two (2) Business Days after the Effective Date (the “Payment Date”), Anadarko shall cause Five
Billion One Hundred Fifty Million Dollars ($5,150,000,000.00) (the “Initial Settlement Amount”) in cash plus Interest thereon from the Lodging Date as provided in Section 3.3 (collectively, the “Settlement
Proceeds”), to be timely paid to the Litigation Trust by wire transfer(s) of immediately available funds pursuant to wire instructions, which shall be provided to Anadarko by the Litigation Trust at least ten (10) Business Days in
advance of the Payment Date. 
 3.2. Anadarko and the Litigation Trust agree that the Initial Settlement Amount represents a principal sum
of $3,980,665,791.37 and 6% simple interest per annum thereon from May 12, 2009 until the Lodging Date. The United States has not agreed that the Settlement Proceeds are allocable to principal and/or interest, and the United States is not bound
by the designation in this Agreement of allocations of the Settlement Proceeds to principal and/or interest. 

  
 23 

 3.3. For the purpose of Section 3.1, “Interest” shall be calculated
by multiplying the Initial Settlement Amount by the applicable interest rate for each interest period. The interest rate to be used commencing on the Lodging Date and for the first 180 days thereafter shall be 1.50%. Thereafter, the interest rate
shall be the sum of the One Month London Interbank Offered Rate (“One Month LIBOR”)3 plus 1.50% as in effect from time to time for each one month interest period commencing
on the 181st day after the Lodging Date. All interest shall be computed without compounding. 

3.4. The payment of the Settlement Proceeds as contemplated in Section 3.1 hereof and the releases and other consideration provided
herein to the Litigation Trust are in full, complete, and final satisfaction and payment of any and all claims and causes of action of the Litigation Trust against the Anadarko Released Parties that are released in Section 4.1 in this
Agreement, including any entitlement to legal fees and costs through the Payment Date. The covenants not to sue and other consideration provided herein to the United States are in full, complete, and final satisfaction and payment of any and all
claims and causes of action of the United States against the Anadarko Covenant Parties to the extent that the United States has provided covenants not to sue in Sections 4.2.1.1 through 4.2.1.7 herein, subject to the reservations thereto and terms
of this Agreement, in each case, including any entitlement of the United States to legal fees and costs incurred through the Payment Date. For avoidance of doubt, nothing herein compromises legal entitlements (if any) to any legal fees and costs
incurred in connection with any action to enforce or compel compliance with this Agreement after the Payment Date. 
  

	3 	“LIBOR” means the rate appearing on Reuters Screen “LIBOR01” Page as of 11:00 A.M. London time, two Business Days prior to the date of such interest period, as the annualized rate for the offering of
United States Dollar deposits with a maturity of thirty days. In the event that such LIBOR01 rate does not appear on such page (or otherwise on such screen) the LIBOR rate shall be determined by reference to such other comparable Reuters Screen
providing a public LIBOR rate. 

  
 24 

 3.5. The Litigation Trust shall have the sole responsibility and obligation to cause the
Settlement Proceeds to be allocated and distributed to the Litigation Trust Beneficiaries consistent with the Litigation Trust Agreement. 

4. Mutual Releases and Covenants Not to Sue. 

4.1. Releases. 
 4.1.1.
Releases by Litigation Trust. Upon the payment required by Section 3.1, and effective on the Payment Date without further action by any Party, the Litigation Trust hereby fully, finally, and forever irrevocably releases, discharges,
extinguishes, and covenants not to sue, seek an injunction, or take administrative action against any Anadarko Released Party, from and against any and all manner of actions, causes of action, lawsuits, suits, claims, counterclaims, cross-claims,
indemnification claims, contribution claims, liabilities, interests, judgments, obligations, rights, demands, debts, damages, losses, grievances, promises, remedies, liens, attachments, garnishments, prejudgment interest, costs and expenses
(including attorneys’ fees and costs incurred or to be incurred) in law, equity or otherwise, of whatever kind or nature (including Unknown Claims), whether pled or unpled, fixed or contingent, choate or inchoate, matured or unmatured, foreseen
or unforeseen, accrued or unaccrued past, present or future, that are held and/or controlled by the Litigation Trust and then existing or thereafter arising out of, accruing from or relating to (i) the Chapter 11 Cases (including the Bankruptcy
Claims), (ii) the Adversary Proceeding, (iii) the Covered Sites, or (iv) the Trust Derivative Claims. 

  
 25 

 4.1.2 Releases by Anadarko. 

4.1.2.1 Releases by Anadarko. Upon the payment required by Section 3.1, and effective on the Payment Date without further action
by any Party, Anadarko hereby fully, finally, and forever irrevocably releases, discharges, extinguishes, and covenants not to sue the Litigation Trustee, the Litigation Trust and each of its past, present, and future employees, agents, managers,
attorneys and other representatives, including but not limited to the current and future Litigation Trustee and current and future members of the Trust Advisory Board, from and against any and all manner of actions, causes of action, lawsuits,
suits, claims, counterclaims, cross-claims, indemnification claims, contribution claims, liabilities, interests, judgments, obligations, rights, demands, debts, damages, losses, grievances, promises, remedies, liens, attachments, garnishments,
prejudgment interest, costs and expenses (including attorneys’ fees and costs incurred or to be incurred) in law, equity or otherwise, of whatever kind or nature (including Unknown Claims), fixed or contingent, choate or inchoate, matured or
unmatured, foreseen or unforeseen, accrued or unaccrued past, present or future, then existing or thereafter arising out of, accruing from or relating to (i) the Chapter 11 Cases (including the Bankruptcy Claims), (ii) the Adversary
Proceeding, (iii) the Covered Sites, or (iv) the Trust Derivative Claims or claims, if any, which are duplicative of such Trust Derivative Claims, whether or not held or controlled by the Litigation Trust, or whether or not the Litigation
Trust could have asserted such claims against any Anadarko Released Party. 
 4.1.2.2 Claim for Reimbursement And Other Rights.
Effective on the Payment Date, and without further action by any Party, Anadarko releases, discharges, extinguishes and waives any claim for reimbursement of the Settlement Proceeds against any other Party, any Beneficiary, or the Environmental and
Tort Trusts. For the avoidance of doubt, the release 

  
 26 

 
contained in this section includes a release of any claim that Anadarko has or may have against any other Party, any Beneficiary, or the Environmental and Tort Trusts to offset or reduce the
funds recovered in the Adversary Proceeding, including but not limited to any claim pursuant to § 502(h) of the Bankruptcy Code. Notwithstanding the above, in the event that any Beneficiary (other than the United States) or any
Environmental and Tort Trust asserts claims or causes of action against the Anadarko Covenant Parties or Anadarko Released Parties that have been enjoined by the Approval Order, the Anadarko Covenant Parties and Anadarko Released Parties retain all
of their rights and defenses against such claims, including but not limited to any right of setoff and recoupment from such Beneficiary or Environmental and Tort Trust. 

4.1.2. With respect to any and all claims released hereby, each of the Parties providing releases stipulates and agrees that, upon the date
the releases provided in Sections 4.1.1 and 4.1.2 hereof become effective, the Parties providing releases shall be deemed to have expressly waived and relinquished, to the fullest extent permitted by law, any and all provisions, rights, and benefits
conferred by law or statute, whether federal, state, municipal, local, tribal, foreign or other, or principle of common law, which is similar, comparable, or equivalent to California Civil Code §1542, which provides: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 4.1.3. It is the
intention of the Parties providing releases that, notwithstanding the provisions of California Civil Code § 1542 or any similar provisions, rights and benefits conferred by law, and notwithstanding the possibility that the Parties providing
releases or their counsel may discover or gain a more complete understanding of the facts, events 

  
 27 

 
or law that, if presently known or fully understood, would have affected the decision to enter into this Agreement, any and all release of claims, including Unknown Claims, shall be fully,
finally, and forever settled. Each of the Parties providing releases acknowledges that the inclusion of Unknown Claims herein was separately bargained for and was a key and material element of this Agreement. 

4.2. Covenants Not to Sue. 

4.2.1. Covenants by United States. 

4.2.1.1. Derivative Claims. The United States on behalf of U.S. EPA, DOD, DOI, the Forest Service, NOAA, and NRC, and for purposes of
this Agreement only, agrees, accepts and recognizes that (i) the Litigation Trust owns, controls and has the exclusive right to settle and compromise the Trust Derivative Claims; (ii) the United States on behalf of U.S. EPA, DOD, DOI, the
Forest Service, NOAA, and NRC does not own, control or have the right to settle and compromise the Trust Derivative Claims; and (iii) following the Litigation Trust’s settlement and release of the Trust Derivative Claims, the United States
on behalf of U.S. EPA, DOD, DOI, the Forest Service, NOAA, and NRC will have no right, standing or ability to assert, prosecute, recover or make any demand with respect to the Trust Derivative Claims. For the purpose of this paragraph, the term
“Trust Derivative Claims” shall not be construed to include the claims asserted in the Complaint-in-Intervention. 
 4.2.1.2
Common Law and FDCPA Claims. Upon the payment required by Section 3.1, and effective on the Payment Date without further action by any Party, and except as specifically provided in Section 11 (Reservation of Rights), the United States
(on behalf of U.S. EPA, DOD, DOI, the Forest Service, NOAA, and NRC) covenants not to sue or assert any common law civil claims or causes of action against the Anadarko Covenant 

  
 28 

 
Parties for any claims that are Trust Derivative Claims relating to (1) the Covered Sites, including Environmental Actions at the Covered Sites, (2) the United States’ Proofs of
Claim, (3) the Bankruptcy Claims, (4) the Chapter 11 Cases, (5) the Adversary Proceeding, or (6) claims, if any, which are duplicative of such Trust Derivative Claims, whether or not held or controlled by the Litigation Trust, or
whether or not the Litigation Trust could have asserted such claims against any Anadarko Released Party. Additionally, upon the payment required by Section 3.1, and effective on the Payment Date without further action by any Party, and except
as specifically provided in Section 11 (Reservation of Rights), the United States covenants not to sue or assert a claim or cause of action against the Anadarko Covenant Parties under the FDCPA, including, without limitation, the claims
asserted in the Complaint-In-Intervention, to recover on a debt that is an environmental liability at a Covered Site where such claim or cause of action arises from the transactions at issue in this case. 

4.2.1.3. Statutory and Regulatory Claims and Causes of Action – U.S. EPA. Upon the payment required by Section 3.1, and
effective on the Payment Date without further action by any Party, and except as specifically provided in Section 11 (Reservation of Rights), the United States on behalf of the U.S. EPA covenants not to sue or assert any civil claims or causes
of action or to take administrative action against the Anadarko Covenant Parties pursuant to CERCLA, RCRA, CWA, SDWA, OPA and CAA with respect to Covered Sites, including but not limited to any such civil claims, causes of action or administrative
actions relating to: (1) any and all costs of Environmental Actions (including NRD), (2) the United States’ Proofs of Claim, (3) the Bankruptcy Claims, (4) the Chapter 11 Cases, and/or (5) the Adversary Proceeding. 

  
 29 

 4.2.1.4. Statutory and Regulatory Claims and Causes of Action – Forest Service. Upon
the payment required by Section 3.1, and effective on the Payment Date without further action by any Party, and except as specifically provided in Section 11 (Reservation of Rights), the United States on behalf of the Forest Service
covenants not to sue or assert any civil claims or causes of action or to take administrative actions against the Anadarko Covenant Parties pursuant to CERCLA with respect to Covered Sites, including but not limited to any such civil claims, causes
of action or administrative action relating to: (1) any and all costs of Environmental Actions (including NRD), (2) the United States’ Proofs of Claim, (3) the Bankruptcy Claims, (4) the Chapter 11 Cases, and/or (5) the
Adversary Proceeding. 
 4.2.1.5. Statutory and Regulatory Claims and Causes of Action – NRC. Upon the payment required by
Section 3.1, and effective on the Payment Date without further action by any Party, and except as specifically provided in Section 11 (Reservation of Rights), the United States on behalf of NRC covenants not to sue or assert any civil
claims or causes of action or to take administrative actions against the Anadarko Covenant Parties pursuant to the AEA with respect to Covered Sites, including but not limited to any such civil claims, causes of action or administrative action
relating to: (1) any and all costs of Environmental Actions under the AEA, (2) the United States’ Proofs of Claim, (3) the Bankruptcy Claims, (4) the Chapter 11 Cases, and/or (5) the Adversary Proceeding. 

4.2.1.6. Statutory and Regulatory Claims and Causes of Action – DOD. Upon the payment required by Section 3.1, and effective
on the Payment Date without further action by any Party, and except as specifically provided in Section 11 (Reservation of Rights), the United States on behalf of DOD covenants not to sue or assert any civil claims or causes of action or to
take administrative actions against Anadarko pursuant to CERCLA with 

  
 30 

 
respect to the sites identified on Schedule 2-A, including but not limited to any such civil claims, causes of action or administrative action relating to: (1) any and all costs of
Environmental Actions (excluding NRD), (2) the United States’ Proofs of Claim, (3) the Bankruptcy Claims, and (4) the Chapter 11 Cases, and/or (5) the Adversary Proceeding. For the avoidance of doubt, the covenant not to sue
provided by this Section 4.2.1.6 does not cover NRD. This covenant extends only to Anadarko and does not extend to any third parties (including without limitation Anadarko Covenant Parties other than Anadarko, National Coating Corporation and
the Massachusetts Institute of Technology). The United States on behalf of DOD specifically reserves any and all rights it may have to bring actions against potentially responsible parties other than Anadarko, as well as any defenses it may have
with respect to any claims and causes of action brought against it. 
 4.2.1.7. Statutory and Regulatory Claims and Causes of Action
– DOI and NOAA. Upon the payment required by Section 3.1, and effective on the Payment Date without further action by any Party, and except as specifically provided in Section 11 (Reservation of Rights), the United States on
behalf of DOI and NOAA covenants not to sue or assert any civil claims or causes of action or to take administrative action against the Anadarko Covenant Parties pursuant to CERCLA, OPA, and CWA with respect to the sites identified on Schedule
2-B, including but not limited to any such civil claims, causes of action or administrative actions relating to: (1) any and all costs of Environmental Actions (including NRD), (2) the United States’ Proofs of Claim, (3) the
Bankruptcy Claims, (4) the Chapter 11 Cases, and/or (5) the Adversary Proceeding. 
 4.3. Covenant Not to Sue by Anadarko.

 4.3.1. Upon the payment required by Section 3.1, and effective on the Payment Date without further action by any Party, Anadarko
covenants not to sue the United 

  
 31 

 
States, any Beneficiary, or the Environmental and Tort Trusts for any offset or reduction of the recovery in the Adversary Proceeding, including but not limited to any claim pursuant to
§ 502(h) of the Bankruptcy Code, and covenants not to sue and waives any claim for reimbursement of the Settlement Proceeds against the United States, any Beneficiary, or the Environmental and Tort Trusts. 

4.3.2. Upon the payment required by Section 3.1, and effective on the Payment Date without further action by any Party, Anadarko
covenants not to sue or assert any civil claims or causes of action against the United States, any Beneficiary, or the Environmental and Tort Trusts with respect to the Covered Sites, including but not limited to any claims under the Bankruptcy
Code, any direct or indirect claim for reimbursement from the Superfund (established pursuant to the Internal Revenue Code, 26 U.S.C. § 9507), through CERCLA Sections 106(b)(2), 107, 111, 112, 113, 42 U.S.C. §§ 9606(b), 9607, 9611,
9612, 9613, RCRA, or any other provision of law; any claims and causes of action against the United States, any Beneficiary, or the Environmental and Tort Trusts, including any of their, departments, agencies or instrumentalities pursuant to
Section 107 or 113 of CERCLA, 42 U.S.C. §§ 9607, 9613, or any claim for reimbursement of the Settlement Proceeds; any claims or causes of action arising out of the response activities at such Covered Sites; and any claims relating to
(1) the Covered Sites, including Environmental Actions at the Covered Sites, (2) the United States’ Proofs of Claim, (3) the Bankruptcy Claims, (4) the Chapter 11 Cases, (5) the Adversary Proceeding or (6) the
Trust Derivative Claims or claims, if any, which are duplicative of such Trust Derivative Claims, whether or not held or controlled by the Litigation Trust, or whether or not the Litigation Trust could have asserted such claims against any Anadarko
Released Party. Nothing in this 

  
 32 

 
Agreement shall be construed to constitute preauthorization of a claim within the meaning of Section 111 of CERCLA, 42 U.S.C. § 9611 or 40 C.F.R. § 300.700(d). 

4.3.3. Notwithstanding Sections 4.1.2.1, 4.1.2.2, 4.3.1, and 4.3.2, in the event that any Beneficiary (other than the United States) or any
of the Environmental and Tort Trusts assert claims or causes of action against the Anadarko Covenant Parties or Anadarko Released Parties that have been enjoined by the Approval Order, the Anadarko Covenant Parties and Anadarko Released Parties
retain all of their rights and defenses against such claims, including but not limited to any right of setoff and recoupment from such Beneficiary or Environmental and Tort Trust. 

4.4. Contribution Protection. 

4.4.1. The Parties agree that upon the Approval Order becoming Final, this Agreement will constitute a judicially approved settlement for
purposes of Section 113(f)(2) of CERCLA, and that Anadarko is entitled, as of the Payment Date and upon the payment required by Section 3.1, to protection from contribution actions or claims as provided by Section 113(f)(2) of CERCLA,
42 U.S.C. §§ 9613(f)(2), or as otherwise provided by law for matters addressed in this Agreement. 
 4.4.2. For purposes of
Section 4.4.1, the matters addressed are as follows: (i) all Environmental Actions (other than NRD) taken or to be taken, and all costs incurred or to be incurred, by the United States or any potentially responsible party, at or in
connection with the Covered Sites and all areas affected by migration of hazardous substances from the Covered Sites, and (ii) NRD claims, including but not limited to restoration and assessment costs, asserted by the United States on behalf of
DOI or NOAA at any of the sites identified on Schedule 2-B. 

  
 33 

 
Matters addressed in this Agreement do not include any matters that are the subject of the reservations of rights set forth in Section 11. 

4.5. Transferred Contribution Rights. To the extent that any of the Debtors or the Debtor’s estates transferred any contribution
rights to the Litigation Trust pursuant to the Plan and the Environmental and Tort Trust Agreements, the Litigation Trust shall not pursue such contribution rights against third-parties where such third-party could reasonably be expected to assert a
claim against the Anadarko Covenant Parties or Anadarko Released Parties in connection therewith; provided, however, that if the Litigation Trust does pursue any such claim against a third-party, and such third-party asserts a claim against an
Anadarko Covenant Party or Anadarko Released Party, the Litigation Trust shall immediately transfer and assign such contribution rights to the Anadarko Party against whom the claim is being asserted. 

4.6. Non-Waiver. Nothing herein shall be construed as a release or waiver by any Party of any other Party’s obligations or
agreements under this Agreement, or of any claims arising out of, resulting from or related to a breach of this Agreement by any Party. 

5. Representations of the Parties. 

5.1. Each of the Parties separately represents and warrants to each of the other Parties that, subject to Section 2.3.1, it has the
requisite power and authority to (a) enter into this Agreement, (b) provide covenants not to sue and/or release the claims (including Unknown Claims) it is providing covenants for and/or releasing pursuant to this Agreement and
(c) perform the obligations imposed on it by this Agreement in accordance with the terms and conditions of this Agreement. 
 5.2. Each
of the Parties separately represents and warrants to each of the other Parties that the execution of, and the performance of the obligations contemplated by, this 

  
 34 

 
Agreement has been approved by duly authorized representatives of the Party. Without limiting the foregoing, the Litigation Trustee represents that his authorization is evidenced by a true and
complete copy of the Litigation Trust’s resolution attached hereto as Exhibit C. Without limiting the foregoing, each Anadarko Entity represents that its authorization is evidenced by a true and complete copy of its resolution attached
hereto as Exhibit D. 
 5.3. Each of the Parties separately represents and warrants to each of the other Parties that it has
expressly authorized its undersigned representative to execute this Agreement on the Party’s behalf as its duly authorized agent. 

5.4. Each of the Parties other than the United States separately represents and warrants to each of the other Parties that (i) this
Agreement has been thoroughly negotiated and analyzed by each Party and/or its counsel and has been executed and delivered in good faith, pursuant to arm’s-length negotiations, and for good and valuable consideration, (ii) it is not
relying upon any statements, understandings, representations, expectations, or agreements other than those expressly set forth in this Agreement (including all of its exhibits and schedules), (iii) it has had the opportunity to be represented
and advised by legal counsel in connection with this Agreement, which Agreement it makes voluntarily and of its own choice and not under coercion or duress, (iv) it has made its own investigation of the facts and is relying upon its own
knowledge and the advice of its counsel, and (v) it knowingly waives any and all claims that this Agreement was induced by any misrepresentation or non-disclosure. 

5.5. This Agreement shall be binding upon and will inure to the benefit of each of the Parties and its successors in interest, heirs,
executors and/or administrators. 
 5.6. The Litigation Trust represents and warrants that its entry into this Agreement complies with the
Litigation Trust Agreement, including, but not limited to, 

  
 35 

 
Section 4(c) thereof. 
 5.7. The Litigation Trust further represents and
warrants that the Litigation Trust succeeded to, as and after the Plan Effective Date, any and all claims against the Anadarko Released Parties related to the claims, issues and subject matter of the Adversary Proceeding which were held, owned
and/or controlled by one or more Debtors before the Plan Effective Date, and that the Litigation Trust has not since the Plan Effective Date sold, assigned, transferred, encumbered, hypothecated, abandoned, conveyed or otherwise disposed of any
claims received by the Litigation Trust from Debtors pursuant to the Plan, all of which are being settled, compromised and released herein. 

5.8. The Parties agree and stipulate that each Party is relying upon these representations and warranties in entering into this Agreement.
Furthermore, the Parties agree that these representations and warranties are a material inducement to entering into this Agreement. These representations and warranties shall survive the Execution of this Agreement indefinitely without regard to
statutes of limitations. 
 5.9. To the extent that these representations and warranties are made by the United States, they are made
subject to the results of the public comment process and the right of the United States to terminate this Agreement after the public comment period as provided in Section 2.3.1. 

6. Affirmative Covenants. 

6.1. Effectuation of Agreement. Each Party other than the United States agrees to take such steps and to execute any documents as may
be reasonably necessary or proper to effectuate this Agreement and to preserve its validity and enforceability and to refrain from taking any actions that are inconsistent therewith. In the event that any action or proceeding of any type

  
 36 

 
whatsoever is commenced or prosecuted by any Person not a Party hereto in any court, administrative proceeding or other venue to invalidate, violate or prevent the validity, enforcement, or
carrying out of all or any of the provisions of this Agreement or to object to the motions seeking the Stay or the Report and Recommendation or the Approval Motion (if applicable) (including without limitation the injunctive provision therein), or
to appeal, reverse or vacate the entry of the Stay, Report and Recommendation or Approval Order, each Party other than the United States mutually agrees, represents, warrants, and covenants to cooperate fully in opposing such action or proceeding.
This obligation shall only continue as long as the Litigation Trust exists as a state law entity. 
 6.2. Cooperation. 

6.2.1. The Litigation Trust represents, warrants, covenants and agrees that it will, within five (5) Business Days of any request made
by Anadarko, cooperate with and support Anadarko’s efforts to enforce the Approval Order; provided, however, that Anadarko shall not request, and the Litigation Trust shall not be required to comply with a request for, cooperation or support in
seeking to have a court determine whether a claim is a Trust Derivative Claim, or a claim which is duplicative of such Trust Derivative Claim, whether or not held or controlled by the Litigation Trust, or whether or not the Litigation Trust could
have asserted such claims against any Anadarko Released Party, or otherwise enjoined by the Approval Order if the Litigation Trust reasonably and in good faith believes that Anadarko’s legal position with respect to such characterization lacks
a good faith basis. This obligation of cooperation and support shall continue as long as the Litigation Trust exists as a state law entity. 

6.2.2. Anadarko will pay the Litigation Trust’s attorneys’ fees and costs actually incurred in cooperating and supporting
Anadarko’s efforts as set forth in Section 

  
 37 

 6.2.1, and Anadarko further acknowledges and agrees that (a) any request by Anadarko that the Litigation
Trustee provide cooperation as specified in Section 6.2.1 shall be in writing and directed to the Litigation Trustee, and such request also must be reasonable, precise and definite, so that the nature and extent of the cooperation sought by
Anadarko is clearly specified to the Litigation Trustee; (b) the attorneys’ fees for the Litigation Trustee, and others assisting the Litigation Trustee who work at the Litigation Trustee’s law firm, shall be calculated using the
then-applicable billing rates for such persons, and Anadarko acknowledges that the applicable billing rates for the Litigation Trustee, and any other attorneys, legal assistants, clerks and other timekeepers who work at the Litigation Trustee’s
law firm vary, and the law firm adjusts these rates from time to time (typically in each new calendar year); (c) if Anadarko seeks cooperation from the Litigation Trustee, then Anadarko shall pay the Litigation Trustee an evergreen retainer
deposit of $100,000.00 (one-hundred thousand dollars) to secure payment of the Litigation Trustee’s attorney’s fees and costs, the Litigation Trustee shall be entitled to apply the evergreen retainer deposit to the balance due on
Litigation Trustee’s bills for any cooperation performed pursuant to this paragraph, Anadarko shall replenish the evergreen retainer deposit so that the minimum deposit required by the Litigation Trustee ($100,000.00) is maintained so long as
the specific matter is open, and the Litigation Trustee shall return any unearned fees upon conclusion of the requested cooperation; and (d) the Litigation Trustee does not control and is not responsible for the decisions and actions of any
other person or entity, including without limitation any other Party and any Beneficiary. 
 6.3. Reasonable Best Efforts. All
Parties other than the United States shall use reasonable best efforts in connection with the Settlement Approval Process, including to obtain entry of the Stay, the Report and Recommendation and the Approval Order. 

  
 38 

 6.4. Documents. All Parties shall, within thirty (30) days of the Effective Date,
substantially comply with the requirements of paragraph 21 of the Agreed Protective Order (Case No. 09-10156, Dkt. No. 248) and paragraph 10(d) of the Second Agreed Protective Order (Case No. 09-10156, Dkt. No. 2626); provided,
however, that nothing in this Section 6.4 is intended to prevent a Party from seeking a further protective order from the Bankruptcy Court seeking relief from such obligations, as permitted by paragraph 20 of the Agreed Protective Order and
paragraph 10(c) of the Second Agreed Protective Order; and provided further that, to the extent that paragraph 21 of the Agreed Protective Order is limited in its application to the United States by the Order respecting the Agreed Protective Order
entered by the Court on August 12, 2009 [Case No. 09-10156, Dkt. No. 622], such limitations continue to apply. 
 6.5.
Dismissal of Adversary Proceeding. Within five (5) Business Days after the Payment Date and the payment required by Section 3.1, the Litigation Trust and the United States shall timely commence taking in good faith and diligence all
steps necessary to cause the Adversary Proceeding to be dismissed with prejudice, including filing (if necessary) a motion with the Bankruptcy Court seeking dismissal with prejudice. 

6.6. Settlement Proceeds. The Parties agree that the Settlement Proceeds and other consideration provided by Anadarko herein will
resolve the Adversary Proceeding on the terms stated herein, with approximately 88% of the net proceeds distributed pursuant to the Distribution Scheme as and to the extent set forth in the Litigation Trust Agreement, Environmental Settlement
Agreement and the Environmental and Tort Trust Agreements for the benefit of trusts created to conduct Environmental Actions at one or more Covered Sites and to federal, state, or tribal governments in satisfaction of claims for costs previously
expended, or to be expended, at Covered Sites or for Environmental Actions expected to be performed at Covered Sites, and 

  
 39 

 
approximately 12% of the net proceeds distributed to the Tort Trust on account of Bankruptcy Tort Claims. 

7. Entire Agreement. This Agreement (and the exhibits and schedules hereto) constitutes a single integrated written contract that
expresses the entire agreement and understanding between and among the Parties with respect to matters that are the subject of this Agreement; provided, however, that nothing herein shall modify the Environmental Settlement Agreement, the
Environmental and Tort Trust Agreements, the Litigation Trust Agreement, or the Plan. This Agreement supersedes all prior communications, settlements, and understandings among the Parties and their representatives regarding the matters addressed by
this Agreement. Except as explicitly set forth in this Agreement, there are no representations, warranties, promises, statements, or inducements, whether oral, written, expressed, or implied, that in any way affect or condition the validity of this
Agreement or alter or supplement its terms. If the facts or law related to the subject matter of this Agreement are found hereafter to be other than is now believed by any of the Parties, then each of them expressly accepts and assumes the risk of
such possible difference of fact or law and agrees that this Agreement nonetheless shall be and remain effective according to its terms. 

8. Effect if Void. 
 8.1.
In the event that this Agreement shall be determined, by a Final order of a court of competent jurisdiction, to be null and void, this Agreement shall be of no force whatsoever except with respect to the provisions contained in this Section 8
and Section 9. 
 8.2. Each of the Parties agrees that, in the event this Agreement becomes null and void, no statement made by or on
behalf of any Party (including by its counsel) in connection with the negotiation of this Agreement, or the terms of this Agreement, including any exhibits, schedules 

  
 40 

 
and appendices thereto, as well as drafts thereof, whether or not any such statements would otherwise be confidential, shall be used by any Party or Person in any future proceeding as a purported
admission or concession with respect to any factual or legal contention or position, or of the validity of any claim or defense to any claim. 

9. Confidentiality. Settlement negotiations leading up to the Execution of this Agreement and all related discussions and negotiations
are confidential and shall be deemed to fall within the protection afforded to compromises and to offers to compromise by Rule 408 of the Federal Rules of Evidence and any similar local rules and state law provisions, as well as being subject to all
applicable protections provided by statutes or laws relating to the confidentiality, exemption from discovery, and inadmissibility into evidence in any legal, court, regulatory, or administrative proceedings of statements, communications, and
documents relating to the mediation of the Adversary Proceeding. Except as necessary in Anadarko’s, the United States’ or the Litigation Trustee’s discretion in the Settlement Approval Process, negotiations or discussions associated
with this Agreement shall be inadmissible in any action or proceeding for purposes of establishing any rights, duties, or obligations of the Parties, except in an action or proceeding to enforce or for breach of the terms of this Agreement, or
pursuant to an order of any court of competent jurisdiction. Notwithstanding anything to the contrary, this Agreement will not be interpreted to prohibit the United States from disclosing otherwise confidential information if such disclosure is
compelled in a judicial proceeding, required by law, or otherwise reasonably required in the exercise of a non-discretionary government duty or obligation. 

10. Remedies. The Parties agree that each Party’s sole remedy for breach of this Agreement shall be the remedy of specific
performance; provided, however, that the Litigation Trust and the United States reserve their rights to seek damages for any failure by Anadarko to 

  
 41 

 
pay the Settlement Proceeds. 
 11. Reservation of Rights. 

11.1. The settlement embodied by this Agreement shall not in any way prejudice the rights of the Anadarko Released Parties to seek
contribution, indemnity, reimbursement and/or insurance against or from a Person that is not a Party, not one of the Environmental and Tort Trusts, or not a Beneficiary. 

11.2. The mutual releases and covenants not to sue set forth in Section 4 do not pertain to any matters or Persons other than those
expressly specified therein. The United States reserves, and this Agreement is without prejudice to, all rights against the Anadarko Covenant Parties and the Anadarko Released Parties with respect to all matters other than those for which
covenants are specifically provided in Sections 4.2.1.1 through 4.2.1.7. Except as expressly provided herein, the United States also specifically reserves and this Agreement is without prejudice to: (i) any criminal liability; (ii) any
liability arising under Title 26 of the United States Code (Internal Revenue Code) or state tax laws; (iii) any liability arising under federal or state securities laws; (iv) any action to enforce the terms of this Agreement; (v) any
liability that the Anadarko Covenant Parties might have that does not arise from or through a liability of a Debtor; (vi) any liability of an Anadarko Covenant Party due to its status or acts or omissions since November 28, 2005 as a/an
(A) owner, (B) operator, (C) discharger, (D) lessee, (E) permittee, (F) licensee, (G) person in charge, (H) holder of a right of use and easement, (I) arranger for disposal or treatment,
(J) transporter, or (K) person who generates, handles, transports, treats, stores or disposes of solid or hazardous waste; and (vii) any liability relating to the E&P Business or the stored power or battery business (including,
but not limited to, as owned or operated by U.S. Avestor LLC and Kerr-McGee Stored Power Company 

  
 42 

 
LLC4), and (viii) any liability that any Anadarko Covenant Party retained, received or assumed pursuant to the Assignment Agreement or
Assignment, Assumption, and Indemnity Agreement. For the avoidance of doubt, to the extent that a reserved liability of an Anadarko Covenant Party referred to in subparts (i)-(vii) would be a liability for which such Anadarko Covenant Party
would be jointly and severally liable with others, including but not limited to one or more Debtors or Reorganized Debtors, under applicable law, nothing in this Agreement is intended to alter any such applicable principles of joint and several
liability where otherwise provided by law. 
 11.3. In the event that an Anadarko Covenant Party that is not a signatory hereto brings an
action against the United States relating to the Covered Sites or any Trust Derivative Claim or a claim, if any, which is duplicative of such Trust Derivative Claim, whether or not held or controlled by the Litigation Trust or whether or not the
Litigation Trust could have asserted such claims against any Anadarko Released Party, any covenant with respect to such Covered Site or the subject matter of such Trust Derivative Claim or other such claim which is duplicative provided by the United
States to such Anadarko Covenant Party shall be null and void and have no force or effect. 
 11.4. Anadarko reserves, and this Agreement is
without prejudice to, all rights against the United States with respect to (a) all matters other than those set forth in Section 4.3, and (b) any action to enforce its rights under the terms of this Agreement. In addition,
Anadarko’s covenant not to sue under Section 4.3 shall not apply in the event that the United States brings a cause of action or issues an order pursuant to the reservations set forth in Section 11, but only to the extent that
Anadarko’s claims and causes of action arise from the same response action, response 
  

 

	4 	Provided, however, that as it relates to Kerr-McGee Stored Power Company LLC, Section 11.2 (vii) is applicable only to the extent that such liability, if any, relates to or arises from the stored power or
battery business.

  
 43 

 
costs, damages or other relief that the United States is seeking pursuant to the applicable reservations. 

11.5. The United States and Anadarko reserve all claims, demands, and causes of action, either judicial or administrative, past or future, in
law or equity, which they may have against all other Persons for any matter arising at or relating in any manner to the Covered Sites, and/or claims addressed, released, or with respect to which covenants not to sue have been provided herein. 

11.6. Nothing in this Agreement shall be deemed to limit the authority of the United States or any State to take response or natural resource
assessment action under Section 104 of CERCLA, 42 U.S.C. § 9604, or any other applicable federal or state environmental laws, or to alter the applicable legal principles governing judicial review of any action taken by the United States or
a State pursuant to that authority. Nothing in this Agreement shall be deemed to limit the information-gathering authority of the United States or a State under Sections 104 and 122 of CERCLA, 42 U.S.C. §§ 9604 and 9622, or any other
applicable federal or state environmental laws, or to excuse Anadarko from any disclosure or notification requirements imposed by CERCLA or any other applicable federal or state environmental laws. 

11.7. For the avoidance of doubt, none of the covenants not to sue or releases provided herein relate to or affect any liability that any
Anadarko Released Party or Anadarko Covenant Party may have in connection with In re: Oil Spill by the Oil Rig Deepwater Horizon in the Gulf Of Mexico, on April 20, 2010, MDL No. 2179 (E.D.La.). 

12. Notice. Any and all notices to be provided pursuant to this Agreement shall be in writing and sent by electronic mail and also sent
by overnight delivery service. Such notices 

  
 44 

 
shall be sent to the individuals listed below, or to such other individuals as the respective party may designate in writing from time to time: 

For Anadarko: 

Anadarko Petroleum Corporation 

Office of the General Counsel 

1201 Lake Robbins Drive 
 The
Woodlands, TX 77380 
  

			
	cc:	  	Jennifer Gadd Edwards
		  	Amanda M. McMillian
		  	David J. Owens
		  	Robert K. Reeves

 For the Litigation Trust and the Litigation Trustee: 

John C. Hueston, Litigation Trustee 

Irell & Manella LLP 

1800 Avenue of the Stars 
 Suite
900 
 Los Angeles, CA 90067 
  

			
	cc:	  	David J. Zott, P.C.
		  	Jeffrey J. Zeiger
		  	Kirkland & Ellis LLP
		  	300 North LaSalle
		  	Chicago, IL 60654

 For the United States: 

Robert Yalen, AUSA 
 U.S.
Attorney’s Office – SDNY 
 86 Chambers St., 3rd Floor 

New York, NY 10028 
 and 

Chief, Environmental Enforcement Section 

Environment and Natural Resources Division 

U.S. Department of Justice 

P.O. Box 7611 Washington, DC 20044 

Ref. DOJ File No. 90-11-3-09688 

  
 45 

 and 

Craig Kaufman 

Attorney-Advisor 
 U.S.
Environmental Protection Agency 
 William Jefferson Clinton Building 

1200 Pennsylvania Avenue, N.W. 

Washington, DC 20460 
 13.
Miscellaneous. 
 13.1. Except as expressly provided herein, this Agreement cannot be amended, altered, or modified except by a
written agreement duly executed by each and every then-existing Party or its successors or assigns. 
 13.2. The Bankruptcy Court and
District Court shall retain jurisdiction to resolve (or recommend resolution to the extent that the Bankruptcy Court does not have final order authority) disputes in connection with, and to enforce, this Agreement. 

13.3. Except as otherwise provided, this Agreement shall be governed by, and construed in accordance with, the laws of the State of New York
excluding the laws applicable to conflicts or choice of law, except to the extent that federal law preempts. 
 13.4. This Agreement has
been negotiated by each of the Parties and/or their respective legal counsel, and legal or equitable principles that might require the construction of this Agreement or any of its provisions against the Party responsible for drafting this Agreement
shall not apply in any construction or interpretation of this Agreement. 
 13.5. This Agreement may be executed in counterpart originals,
all of which, when so executed and taken together, shall be deemed an original and all of which shall constitute one and the same instrument, provided, however, that if an attorney, or purported authorized official for a party, is executing on
behalf of a client or a Party, then such attorney, or purported authorized official, hereby represents to all parties that he or she has the power to bind such client or Party. 

  
 46 

 
Each counterpart may be delivered by facsimile or email (as a pdf attachment), and a faxed or emailed signature shall have the same force and effect as an original signature. 

13.6. Nothing in this Agreement shall be construed as a consent by Anadarko to final order authority of the Bankruptcy Court or any admission
or consent by any other Party that the Bankruptcy Court does not have final order authority. 
 13.7. Except to the extent expressly set
forth herein, including without limitation any covenant not to sue or release provided herein and any agreement not to seek reimbursement provided herein, nothing in this Agreement shall be construed to create any third-party beneficiary rights.
Notwithstanding the preceding sentence, to the extent that a covenant not to sue, release or agreement not to seek reimbursement provided herein to a Person that is not a Party, such covenant not to sue, release, or agreement not to seek
reimbursement shall inure to the benefit of such Person and its successors in interest, heirs, executors and/or administrators. 
 13.8. If,
for any reason, any provision of this Agreement is determined, by a Final order of a court of competent jurisdiction entered subsequent to the Effective Date, to be invalid or unenforceable or violative of any applicable law or regulation, such
provision shall be automatically reformed to embody the essence of that provision to the maximum extent permitted by law, and this Agreement shall be construed, performed and enforced as if the reformed provision had been included in this Agreement
at inception; provided, however, that the United States must approve any such modification to this Agreement. 
 13.9. The captions and
headings in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof. 

  
 47 

 13.10. No course of dealing or delay or omission on the part of any Party in exercising any right
under this Agreement shall operate as a waiver thereof or otherwise be prejudicial thereto. 
 13.11. Nothing herein is intended to modify
the Environmental Settlement Agreement, Environmental and Tort Trust Agreements, the Litigation Trust Agreement, the Plan, or the Confirmation Order. 

SIGNATURES ARE ON THE FOLLOWING PAGES 

  
 48 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above. 

 

			
	Anadarko Litigation Trust, by and through its Trustee and authorized representative, John C. Hueston
		
		 	 /s/ John C. Hueston

 
					
	Anadarko Petroleum Corporation
		
	By:	 	 /s/ R. A. Walker

		 	Name:	 	R. A. Walker
		 	Title:	 	Chairman, President and Chief Executive Officer
	
	Kerr-McGee Corporation
		
	By:	 	 /s/ Robert K. Reeves

		 	Name:	 	Robert K. Reeves
		 	Title:	 	Executive Vice President
	
	Anadarko US Offshore Corporation (f/k/a Kerr-McGee Oil & Gas Corporation)
		
	By:	 	 /s/ Robert K. Reeves

		 	Name:	 	Robert K. Reeves
		 	Title:	 	Executive Vice President
	
	Kerr-McGee Worldwide Corporation
		
	By:	 	 /s/ Robert K. Reeves

		 	Name:	 	Robert K. Reeves
		 	Title:	 	Executive Vice President
	
	KM Investment Corporation
		
	By:	 	 /s/ Robert K. Reeves

		 	Name:	 	Robert K. Reeves
		 	Title:	 	Executive Vice President
	
	Kerr-McGee Shared Services Company LLC
		
	By:	 	 /s/ Robert K. Reeves

		 	Name:	 	Robert K. Reeves
		 	Title:	 	Executive Vice President

 
					
	Kerr-McGee Stored Power Company LLC
		
	By:	 	 /s/ Robert K. Reeves

		 	Name:	 	Robert K. Reeves
		 	Title:	 	Executive Vice President

 
					
		 	FOR THE UNITED STATES OF AMERICA:
			
		 		 	PREET BHARARA
		 		 	United States Attorney
		 		 	for the Southern District of New York
		
	By:	 	 /s/ Robert W. Yalen

		 	Name:	 	Robert William Yalen
		 	Title:	 	Assistant United States Attorney
		 		 	86 Chambers Street, Third Floor
		 		 	New York, NY 10007
		
	By:	 	 /s/ Robert G. Dreher

		 	Name:	 	Robert G. Dreher
		 	Title:	 	Acting Assistant Attorney General
		 		 	Environment and Natural Resources Division
		 		 	U.S. Department of Justice
		
	By:	 	 /s/ Katherine M. Kane

		 	Name:	 	 Alan S. Tenenbaum

		 	Title:	 	National Bankruptcy Coordinator
		 		 	Katherine M. Kane
		 		 	Frederick S. Phillips
		 		 	Senior Attorneys
			
		 		 	Marcello Mollo
		 		 	Erica H. Pencak
		 		 	Trial Attorneys
		 		 	Environmental Enforcement Section
		 		 	Environment and Natural Resources Division
		 		 	U.S. Department of Justice
		 		 	P.O. Box 7611
		 		 	Ben Franklin Station
		 		 	Washington, DC 20044

 FOR THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY: 

 

							
				
	Date: 4/3/14	 		 		 	/s/ Cynthia Giles
		 		 		 	CYNTHIA GILES
		 		 		 	Assistant Administrator for Enforcement and Compliance Assurance
		 		 		 	U.S. Environmental Protection Agency
		 		 		 	
				
	Date: 4/2/14	 		 		 	/s/ Craig Kaufman
		 		 		 	CRAIG KAUFMAN
		 		 		 	Attorney-Advisor
		 		 		 	U.S. Environmental Protection Agency
		 		 		 	William Jefferson Clinton Building
		 		 		 	1200 Pennsylvania Avenue, N.W.
		 		 		 	Washington, DC 20460
		 		 		 	
				
	Date: 4/2/14	 		 		 	/s/ Lynne Davies
		 		 		 	LYNNE DAVIES
		 		 		 	Attorney-Advisor
		 		 		 	U.S. Environmental Protection Agency
		 		 		 	William Jefferson Clinton Building
		 		 		 	1200 Pennsylvania Avenue, N.W.
		 		 		 	Washington, DC 20460

 Tronox and U.S. v. Anadarko Petroleum Corp. (In re: Tronox Inc.), Adv. Pro. 09-1198 

 EXHIBIT A 

FORM OF 9019 RECOMMENDATION MOTION 

[Attached] 

 Objection Deadline: [        ] 

Hearing Date and Time: [TBD] 
 COUNSEL OF
RECORD LISTED ON 
 SIGNATURE BLOCK 

UNITED STATES BANKRUPTCY COURT 
 SOUTHERN DISTRICT
OF NEW YORK 

					
	In re	  	)	  	
		  	)	  	Chapter 11
	TRONOX INCORPORATED, et al.,	  	)	  	Case No. 09-10156 (ALG)
		  	)	  	Jointly Administered
	 Reorganized Debtors.
	  	)	  	
	 	  	)	  	
		  	)	  	
	 TRONOX INCORPORATED,
 TRONOX WORLDWIDE
LLC
 f/k/a Kerr-McGee Chemical Worldwide LLC,

and TRONOX LLC f/k/a Kerr-McGee
 Chemical LLC,1
	  	)
 )
 )

)
 )
	  	
		  	)	  	
	 Plaintiffs,
	  	)	  	
		  	)	  	
	 v.
	  	)	  	Adversary Proceeding No. 09-01198 (ALG)
		  	)	  	
	KERR-McGEE CORPORATION, et al.,	  	)	  	
		  	)	  	
	 Defendants.
	  	)	  	
	 	  	)	  	

  

	1 	Pursuant to the Anadarko Litigation Trust Agreement, which was approved by the Court on February 14, 2011 (Dkt. No. 2812), the Anadarko Litigation Trust was appointed as the representative of each of the
Plaintiff Debtors’ estates, as that term is used in section 1123(b)(3)(B) of the Bankruptcy Code, with the power and right to prosecute this matter. By the same agreement and Order, the Anadarko Litigation Trust was “deemed
substituted” for the Debtor Plaintiffs in this matter “as the party in such litigation.” 

					
	 	  	)	  	
	THE UNITED STATES OF AMERICA,	  	)	  	
		  	)	  	
	 Plaintiff-Intervenor,
	  	)	  	
		  	)	  	
	 v.
	  	)	  	
		  	)	  	
	 TRONOX, INC.,
 TRONOX WORLDWIDE LLC,

TRONOX LLC,
 KERR-MCGEE CORPORATION, and

ANADARKO PETROLEUM
 CORPORATION,
	  	)
 )
 )

)
 )

)
	  	
		  	)	  	
	 Defendants.
	  	)	  	
	 	  	)	  	

 NOTICE OF JOINT MOTION OF PLAINTIFF ANADARKO LITIGATION TRUST 

AND DEFENDANTS SEEKING A REPORT AND RECOMMENDATION 

RECOMMENDING APPROVAL OF THE SETTLEMENT AGREEMENT RESOLVING 

THE ADVERSARY PROCEEDING AND ISSUANCE OF AN INJUNCTION  

ENJOINING CERTAIN PERSONS FROM ASSERTING CERTAIN CLAIMS 

PLEASE TAKE NOTICE of the attached motion (the “Motion”) of the Anadarko Litigation Trust (the “Litigation
Trust”), as successor to Debtors Tronox Incorporated, Tronox Worldwide LLC, and Tronox LLC in the above-captioned adversary proceeding, and Anadarko Petroleum Corporation, Kerr-McGee Corporation, Kerr-McGee Oil & Gas
Corporation (n/k/a Anadarko US Offshore Corporation), Kerr-McGee Worldwide Corporation, KM Investment Corporation (improperly named as Kerr-McGee Investment Corporation), Kerr-McGee Credit LLC,2
Kerr-McGee Shared Services Company LLC and Kerr-McGee Stored Power Company LLC (collectively, “Anadarko”), respectfully requesting that the Court issue a report and recommendation recommending (A) approval of the
Settlement Agreement between the 
  

	2 	Kerr-McGee Credit LLC was dissolved in 2007. At the time of dissolution, Kerr-McGee Worldwide Corporation was its sole member. 

  
 2 

 
Anadarko Litigation Trust, the United States of America,3 and Anadarko resolving the above-captioned adversary proceeding, and (B) the
issuance of an injunction enjoining the assertion against any Anadarko Released Party of (1) any Trust Derivative Claims or (2) any claims which are duplicative of such Trust Derivative
Claims.4 
 PLEASE TAKE FURTHER NOTICE that objections to the Motion, if any,
shall be in writing, shall conform to the Federal Rules of Bankruptcy Procedure and the Local Rules of the Bankruptcy Court for the Southern District of New York, shall set forth the name of the objecting party, the basis for the objection and the
specific grounds thereof, shall be filed with the Bankruptcy Court electronically in accordance with General Order M-242 (which can be found at www.nysb.uscourts.gov) by registered users of the Bankruptcy Court’s case filing system and by all
other parties in interest, on a 3.5 inch disk, preferably in Portable Document Format (PDF), WordPerfect, or any other Windows-based word processing format (with two hard copies delivered directly to Chambers), and shall be served upon: Jeffrey J.
Zeiger, Kirkland & Ellis LLP, 300 N. LaSalle, Chicago, IL 60654; John C. Hueston, Litigation Trustee, Irell & Manella LLP, 1800 Avenue of the Stars, Suite 900, Los Angeles, CA 90067; Thomas Lotterman, Bingham McCutchen LLP, One
Federal Street, Boston, MA 02110; Melanie Gray, Winston & Strawn LLP, 1111 Louisiana Street, 25th Floor, Houston, TX 77002; and Kenneth Klee, Klee, Tuchin, Bogdanoff & Stern LLP, 1999 Avenue of the Stars, 39th Floor, Los Angeles,
CA 90067, so as to be so filed and received by no later than [             2014] at [4:00] p.m. (Prevailing Eastern Time) (the “Objection Deadline”). 

 

	3 	The Settlement Agreement is subject to a public comment process by the United States. Although the United States is not a party to this Motion, it is a signatory to the Settlement Agreement. 

	4 	A copy of the Settlement Agreement is attached to the Motion as Exhibit A. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Settlement Agreement. The Motion
summarizes the terms of the Settlement Agreement. In the event of any conflict between this summary and the Settlement Agreement, the Settlement Agreement shall control. 

  
 3 

 PLEASE TAKE FURTHER NOTICE that only those responses or objections that are timely filed, served
and received will be considered. 
 PLEASE TAKE FURTHER NOTICE that any objecting parties are required to attend the hearing and that
failure to appear may result in relief being granted upon default. 
  

							
	 New York, New York
 Dated: April
    , 2014
	 		 		 	Respectfully submitted,
		 		 		 	/s/ Draft
				
		 		 		 	 David J. Zott, P.C. (admitted pro hac vice)

Andrew A. Kassof, P.C. (AK 7079)
 Jeffrey J. Zeiger (admitted
pro hac vice)
 James R.P. Hileman (admitted pro hac vice)

Kirkland & Ellis LLP
 300 North LaSalle

Chicago, Illinois 60654-3406
 Telephone: (312) 862-2000

Facsimile: (312) 862-2200
  

Counsel for the Anadarko Litigation Trust
  

John C. Hueston, Litigation Trustee
 Irell & Manella LLP

1800 Avenue of the Stars, Suite 900
 Los Angeles, California
90067
 Telephone: (310) 277-1010
 Facsimile: (310) 203-7199

 
 Anadarko Litigation Trustee

 
 /s/ Draft

 
 Melanie Gray (admitted pro hac vice)

Lydia Protopapas (LP 8089)
 Jason W. Billeck (admitted pro hac
vice)
 Winston & Strawn LLP
 1111 Louisiana Street, 25th
Floor
 Houston, TX 77002-5242
 Telephone: (713) 651-2600

Facsimile: (713) 651-2700

  
 4 

							
		 		 		 	 P. Sabin Willett (admitted pro hac vice)

Thomas R. Lotterman (admitted pro hac vice)

James J. Dragna (admitted pro hac vice)

Bingham McCutchen LLP

One Federal Street

Boston, MA 02110-1726

Telephone: (617) 951-8000

Facsimile: (617) 951-8736
  

Gregory Silbert (GS 0033)

Weil, Gosthal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Telephone: (212) 310-8000

Facsimile: (212) 310-8007
  

Kenneth N. Klee (KK 5910)

David M. Stern (admitted pro hac vice)

Klee, Tuchin, Bogdanoff & Stern LLP

1999 Avenue of the Stars, 39th Floor

Los Angeles, CA 90067

Telephone: (310) 407-4000

Facsimile: (310) 407-9090
  

Counsel for Defendants

  
 5 

 CERTIFICATE OF SERVICE 

I hereby certify that on the     th day of         , 2014, a true and correct copy
of the foregoing was served on [            ]: 

  
 6 

 COUNSEL OF RECORD LISTED ON 

SIGNATURE BLOCK 
 UNITED STATES BANKRUPTCY COURT

 SOUTHERN DISTRICT OF NEW YORK 

					
	  
 In re
	 	)	  	
		 	)	  	Chapter 11
	TRONOX INCORPORATED, et al.,	 	)	  	Case No. 09-10156 (ALG)
		 	)	  	Jointly Administered
	 Reorganized Debtors.
	 	)	  	
	  
	 	)	  	
		 	)	  	
	 TRONOX INCORPORATED,
TRONOX WORLDWIDE LLC

f/k/a Kerr-McGee Chemical Worldwide LLC,

and TRONOX LLC f/k/a Kerr-McGee
 Chemical LLC,1
	 	)
 )
 )

)
 )
	  	
		 	)	  	
	 Plaintiffs,
	 	)	  	
		 	)	  	
	 v.
	 	)	  	Adversary Proceeding No. 09-01198 (ALG)
		 	)	  	
	KERR-McGEE CORPORATION, et al.,	 	)	  	
		 	)	  	
	 Defendants.
	 	)	  	
	  
	 	)	  	

  

	1 	Pursuant to the Anadarko Litigation Trust Agreement, which was approved by the Court on February 14, 2011 (Dkt. No. 2812), the Anadarko Litigation Trust was appointed as the representative of each of the
Plaintiff Debtors’ estates, as that term is used in section 1123(b)(3)(B) of the Bankruptcy Code, with the power and right to prosecute this matter. By the same agreement and Order, the Anadarko Litigation Trust was “deemed
substituted” for the Debtor Plaintiffs in this matter “as the party in such litigation.” 

					
	  
	 	)	  	 
	THE UNITED STATES OF AMERICA,	 	)	  	
		 	)	  	
	 Plaintiff-Intervenor,
	 	)	  	
		 	)	  	
	v.	 	)	  	
		 	)	  	
	 TRONOX, INC.,
 TRONOX WORLDWIDE LLC,

TRONOX LLC,
 KERR-MCGEE CORPORATION, and

ANADARKO PETROLEUM
 CORPORATION,
	 	)
 )
 )

)
 )

)
	  	
		 	)	  	
	 Defendants.
	 	)	  	
	  
	 	)	  	

 JOINT MOTION OF PLAINTIFF ANADARKO LITIGATION TRUST AND 

DEFENDANTS SEEKING A REPORT AND RECOMMENDATION RECOMMENDING 

APPROVAL OF THE SETTLEMENT AGREEMENT RESOLVING THE 

ADVERSARY PROCEEDING AND ISSUANCE OF AN INJUNCTION 

ENJOINING CERTAIN PERSONS FROM ASSERTING CERTAIN CLAIMS 

The Anadarko Litigation Trust (the “Litigation Trust”), as successor to Debtors Tronox Incorporated, Tronox Worldwide
LLC, and Tronox LLC in the above-captioned adversary proceeding,2 and Anadarko Petroleum Corporation, Kerr-McGee Corporation, Anadarko US Offshore Corporation (f/k/a Kerr-McGee Oil & Gas
Corporation), Kerr-McGee Worldwide Corporation, KM Investment Corporation (improperly named as Kerr-McGee Investment Corporation), Kerr-McGee Credit LLC,3 Kerr-McGee Shared Services Corporation,

  

	2 	Pursuant to the Anadarko Litigation Trust Agreement, which was approved by the Court on February 14, 2011 (Dkt. No. 2812), the Anadarko Litigation Trust was appointed as the representative of each of the
Plaintiff Debtors’ estates, as that term is used in section 1123(b)(3)(B) of the Bankruptcy Code, with the power and right to prosecute this matter. By the same agreement and Order, the Anadarko Litigation Trust was “deemed
substituted” for the Debtor Plaintiffs in this matter “as the party in such litigation.” 

	3 	Kerr-McGee Credit LLC was dissolved in 2007. At the time of dissolution, Kerr-McGee Worldwide Corporate was its sole member. 

  
 2 

 
and Kerr-McGee Stored Power Company LLC (collectively, “Anadarko,” and each individually an “Anadarko Entity”)4 by their undersigned counsel, hereby move the Court to issue a report and recommendation pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure (I) approving the Settlement Agreement
(the “Settlement Agreement”),5 dated [            , 2014], by and among (1) the Litigation Trust,
(2) the United States of America (the “United States”),6 in its capacity as plaintiff-intervenor in the Adversary Proceeding pursuant to its Complaint-in-Intervention
and acting for and on behalf of: 
  

	 	•	 	the United States Environmental Protection Agency (“U.S. EPA”), 

  

	 	•	 	the United States Department of Agriculture, acting through the United States Forest Service (the “Forest Service”), 

 

	 	•	 	the United States Department of the Interior (“DOI”), acting through the Fish and Wildlife Service and the Bureau of Land Management, 

 

	 	•	 	the United States Department of Commerce, acting through the National Oceanic and Atmospheric Administration (“NOAA”), 

 

	 	•	 	the United States Department of Defense, including the United States Department of the Army, United States Army Corps of Engineers, United States Department of the Navy, and United States Department of the Air Force
(“DOD”), and 

  

	 	•	 	the Nuclear Regulatory Commission (“NRC”); 

 and (3) Anadarko, and (II)
recommending that the District Court issue an injunction pursuant to, inter alia, 28 U.S.C. §§ 1367 & 1651, § 105(a) of the Bankruptcy Code and Bankruptcy Rules 7001 and 7065, enjoining certain persons from asserting certain
claims against any Anadarko Released Party as described more fully below and in the Settlement Agreement. 
  

	4 	On May 8, 2012, the Court held that Anadarko Petroleum Corporation was entitled to summary judgment dismissing it from the Adversary Proceeding, but as of the date hereof has not issued a dismissal order.

	5 	A copy of the Settlement Agreement is attached to the Motion as Exhibit A. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Settlement Agreement. The Motion summarizes
the terms of the Settlement Agreement. In the event of any conflict between this summary and the Settlement Agreement, the Settlement Agreement shall control. 

	6 	Although the United States is not a party to this Motion, it is a signatory to the Settlement Agreement. 

  
 3 

 In support of this motion, the Litigation Trust and Anadarko respectfully state: 

PRELIMINARY STATEMENT 

1. Following years of litigation, the Litigation Trust, the United States, and Anadarko have reached a settlement that resolves the Adversary
Proceeding and provides cash funding to the direct and indirect beneficiaries of the Litigation Trust on account of their Bankruptcy Environmental Claims and Bankruptcy Tort Claims. The Settlement Agreement provides for the Litigation Trust to
receive Five Billion One Hundred Fifty Million Dollars ($5,150,000,000.00) plus interest in cash, the net proceeds of which will be distributed to the Litigation Trust Beneficiaries in accordance with the Distribution Scheme and related provisions
as set out in the Litigation Trust Agreement, in order to resolve the Adversary Proceeding on the terms stated in the Settlement Agreement and as described below. The Settlement Agreement removes the inherent uncertainty and litigation risk present
in the Adversary Proceeding and any potential appeals for all Parties, and, to the extent provided by the Distribution Scheme, will enable the investigation, remediation, cleanup, and recovery of natural resource damages and other compensation with
respect to certain environmental sites, and provide for payment on account of Bankruptcy Tort Claims. 
 2. The United States has lodged the
Settlement Agreement with the Bankruptcy Court and promptly will publish a notice for public comment thereon in the Federal Register. After the close of the public comment period, and subject to its rights to terminate the Settlement Agreement based
on public comments received, the United States promptly will file a separate motion with this Court seeking findings in the Report and Recommendation sought by this Motion recommending approval of the Settlement Agreement under applicable
environmental law (the “Environmental Motion”). 

  
 4 

 BACKGROUND 

3. On January 12, 2009, Tronox Incorporated and certain of its affiliates (collectively, the “Debtors”) commenced
chapter 11 cases (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). On November 30, 2010, the Bankruptcy Court confirmed
the Debtors’ First Amended Joint Plan of Reorganization (the “Plan”). On February 14, 2011, the Plan became effective. 

4. In the Chapter 11 Cases, the United States, other governmental entities, and other Persons filed Proofs of Claim against the Debtors on
account of, among other things, alleged environmental claims, obligations, and/or liabilities at certain of the Covered Sites (as to such Proofs of Claims filed by the United States and other governmental entities, the “Bankruptcy
Environmental Claims,” and as to such Proofs of Claim filed by other Persons, the “Bankruptcy Indirect Environmental Claims”). Various tort claimants filed Proofs of Claim against the Debtors on account of
alleged tort liabilities, including for personal injury and property damage (the “Bankruptcy Tort Claims” and, together with the Bankruptcy Environmental Claims and the Bankruptcy Indirect Environmental Claims, the
“Bankruptcy Claims”). The Bankruptcy Claims were (or will be) resolved or addressed pursuant to the Plan and related agreements, including the Environmental Settlement Agreement, the Cimarron Environmental Response Trust
Agreement, the Multistate Environmental Response Trust Agreement, the Nevada Environmental Response Trust Agreement, the Savannah Environmental Response Trust Agreement, the West Chicago Environmental Response Trust Agreement, and the Tort Claims
Trust Agreement (collectively, but excluding the Plan and the Environmental Settlement Agreement, the “Environmental and Tort Trust Agreements”), and the Litigation Trust Agreement, and other prior proceedings of the
Bankruptcy Court. 

  
 5 

 5. There are two complaints against Anadarko currently being jointly litigated in the Adversary
Proceeding: 
  

	 	(i)	the Second Amended Adversary Complaint, originally commenced during the Chapter 11 Cases by certain of the Debtors but assigned and transferred to, and currently prosecuted by, the Litigation Trust for the benefit of
its beneficiaries (including the United States) pursuant to the Plan, the Litigation Trust Agreement, and the Environmental Settlement Agreement, and which, at the time of trial, asserted claims including: actual fraudulent transfer under Bankruptcy
Code §§ 544(b) and 550(a); constructive fraudulent transfer under Bankruptcy Code §§ 544(b) and 550(a); constructive fraudulent transfer under Bankruptcy Code §§ 548 and 550(a); breach of fiduciary duty; equitable
subordination; and equitable disallowance; and which originally asserted claims for civil conspiracy, aiding and abetting fraudulent conveyance, unjust enrichment, disallowance of claims pursuant to § 502(d) of the Bankruptcy Code, and
disallowance of contingent indemnity claims pursuant to § 502(e)(1)(B) of the Bankruptcy Code; and 

  

	 	(ii)	the Complaint-in-Intervention filed by the United States, asserting claims under the Federal Debt Collection Procedures Act, 28 U.S.C. §§ 3301-3308 (the “FDCPA”). 

6. The Plan, Litigation Trust Agreement, and Environmental Settlement Agreement assigned, as provided in the Confirmation Order (including,
but not limited to, paragraphs 126, 127 and 131) and the Litigation Trust Agreement (including, but not limited to, sections 2(a)(iii), 2(a)(viii), 2(b) and 4(b)(iv)), all of the Debtors’ respective rights and interests in the Adversary
Proceeding (but excluding the Complaint-in-Intervention) and any claim or cause of action of the Debtors related thereto, whether or not asserted in the Adversary Proceeding, to the Litigation Trust for the benefit of the entities listed in
Section 1(d) of the Litigation Trust Agreement, which include the Tort Claims Trust (the “Tort Claims Trust”), the Cimarron Environmental Response Trust (“Cimarron Trust”), the Multistate
Environmental Response Trust (the “Multistate Trust”), the Nevada Environmental Response Trust (the “Nevada Trust”), the Savannah Environmental Response Trust (“Savannah Trust”)
(the Tort Claims Trust, Cimarron 

  
 6 

 
Trust, Multistate Trust, Nevada Trust and Savannah Trust, along with the West Chicago Environmental Response Trust (“West Chicago Trust”), are hereafter, collectively, the
“Environmental and Tort Trusts” and each individually an “Environmental and Tort Trust”), and certain governmental entities that had asserted Bankruptcy Environmental Claims against the Debtors
(collectively, “Litigation Trust Beneficiaries” and each individually a “Litigation Trust Beneficiary”). Pursuant to the Plan, Litigation Trust Agreement, Environmental Settlement Agreement, and
Environmental and Tort Trust Agreements (other than the West Chicago Environmental Response Trust Agreement), the Litigation Trust Beneficiaries and beneficiaries of the Environmental and Tort Trusts (together with the Litigation Trust
Beneficiaries, the “Beneficiaries” and each individually a “Beneficiary”) are entitled to have paid, on account of their Bankruptcy Environmental Claims and Bankruptcy Tort Claims, specified
allocations (the “Distribution Scheme”) of a share of the net proceeds of any recovery from the Adversary Proceeding, the principal allocation of which involves payment of approximately 88% of the net proceeds of any recovery
on account of Bankruptcy Environmental Claims and payment of approximately 12% of the net proceeds of any recovery on account of Bankruptcy Tort Claims, with subsidiary allocations on account of the Bankruptcy Environmental Claims and Bankruptcy
Tort Claims governed by the Environmental Settlement Agreement, Litigation Trust Agreement, and the Environmental and Tort Trust Agreements (other than the West Chicago Environmental Response Trust Agreement). 

7. The Bankruptcy Claims and the Adversary Proceeding relate to, among other things, tort claims and environmental claims, causes of action
and obligations asserted against the Debtors in respect of the Covered Sites. As and to the extent described more fully in the Environmental Settlement Agreement, the Distribution Scheme provides that approximately 88%

  
 7 

 
of the net proceeds generated from the Adversary Proceeding will be distributed to trusts created to conduct Environmental Actions at one or more Covered Sites and to federal, state, or tribal
governments in satisfaction of claims for costs previously expended or to be expended at Covered Sites or for Environmental Actions expected to be performed at Covered Sites. 

8. The Parties agree to settle, compromise and resolve the Adversary Proceeding, including the Trust Derivative Claims as if such Trust
Derivative Claims were already asserted and now pending against the Anadarko Released Parties, and to address other matters, as and to the extent provided in the Settlement Agreement. The Settlement Agreement represents a compromise and settlement
of disputed claims, asserted and unasserted. In the absence of this settlement, Anadarko would seek further review and/or appeal in connection with the Adversary Proceeding. The Settlement Agreement will settle, compromise, resolve and close the
Adversary Proceeding and settle, compromise, resolve, and extinguish the Trust Derivative Claims, any claims that were asserted or that could have been asserted in the Second Amended Adversary Complaint, the claims asserted in the
Complaint-in-Intervention, and the claims that could have been asserted in the Complaint-in-Intervention relating to the subject matter of the Adversary Proceeding, together and on a global basis to the extent provided in the Settlement Agreement.

 ADVERSARY PROCEEDING 

9. On May 12, 2009, certain of the Debtors commenced the Adversary Proceeding against certain of the Anadarko Entities. [Adv. Dkt.
No. 1] On May 21, 2009, the United States filed its Motion to Intervene, seeking to assert claims under the FDCPA. [Adv. Dkt. No. 5] The Court granted the United States’ motion and, on June 17, 2009, the United States filed
its Complaint-in-Intervention against certain of the Anadarko Entities. [Adv. Dkt. No. 25] 

  
 8 

 10. On July 31, 2009, Anadarko filed a motion to dismiss the Debtors’ Adversary
Complaint. [Adv. Dkt. No. 45]. In an opinion issued March 31, 2010, and an order issued on April 30, 2010, the Court granted Anadarko’s motion to dismiss with respect to Counts IV, V, VI, VII, VIII, IX, X, XI, and the
Debtors’ request for punitive damages. [Adv. Dkt. Nos. 117 & 125]. Count VII was dismissed with prejudice, and Counts VIII through XI were dismissed without prejudice to renewal in connection with the claims allowance process. The
Court denied the Motion with respect to Counts I, II, and III, and dismissed Counts IV (breach of fiduciary duty), V (aiding and abetting breach of fiduciary duty), and VI (civil conspiracy) without prejudice and with leave to replead. 

11. On July 31, 2009, Anadarko filed its Motion to Dismiss the Government’s Complaint-in-Intervention asserting, inter alia,
that the United States lacked standing to assert fraudulent transfer claims that are property of the Debtors’ estate, and the United States’ fraudulent transfer claims were barred by the statute of limitations. [Adv. Dkt. No. 47] On
October 20, 2009, the Court issued an Order Staying Defendants’ Motion to Dismiss the Government’s Complaint-in-Intervention. [Adv. Dkt. No. 72]. 

12. On February 7, 2011, the Debtors filed their Second Amended Adversary Complaint, adding certain Kerr-McGee subsidiaries as
defendants. [Adv. Dkt. No. 223]. 
 13. On May 27, 2011, the Court entered its Order Denying in Part and Granting In Part
Defendants’ Motion to Dismiss Counts IV, V, and VI of the Second Amended Adversary Complaint, dismissing Counts V and VI with prejudice. [Adv. Dkt. No. 233]. 

14. On August 31, 2011, Plaintiff filed its Motion for Partial Summary Judgment Regarding Plaintiff’s Recovery Under
Section 550(a) of the Bankruptcy Code (the “550 Motion”). [Adv. Dkt. No. 257]. On September 30, 2011, Anadarko filed its Response to the 550 Motion and a Cross-Motion for Partial Summary Judgment Limiting
Plaintiffs’ Potential Damage Award Pursuant to Sections 544, 548 and 550(a) of the Bankruptcy Code. [Adv. Dkt. No. 268]. 

  
 9 

 15. On January 20, 2012, the Bankruptcy Court denied Anadarko’s cross-motion for
partial summary judgment and granted the 550 Motion in part. [Adv. Dkt. No. 295]. 
 16. On February 24, 2012, Anadarko filed its
Motion for Partial Summary Judgment Seeking Dismissal of (I) Constructive Fraudulent Transfer Claims Involving Transfers Made By Tronox LLC; (II) Anadarko Petroleum Corporation as a Subsequent Transferee With Respect To All Alleged Fraudulent
Transfers; and (III) All Actual and Constructive Fraudulent Transfer Claims Protected By Section 546(e) of the Bankruptcy Code (the “Motion for Partial Summary Judgment”). [Adv. Dkt. No. 307]. 

17. On May 8, 2012, the Bankruptcy Court held that Anadarko Petroleum Corporation was entitled to summary judgment dismissing it from the
Adversary Proceeding. The other Anadarko Entities (“Anadarko Trial Defendants”) remained subject to the claims in the Adversary Proceeding. An order has not yet been entered reflecting the dismissal of Anadarko Petroleum
Corporation with prejudice. 
 18. In the May 4, 2012 Joint Pretrial Order, Plaintiffs stipulated to dismissal of all constructive
fraudulent transfer claims involving transfers made by Tronox LLC and therefore the Court was not required to rule on that portion of Anadarko’s Motion for Partial Summary Judgment. [Adv. Dkt. No. 383]. 

19. On March 2, 2012, Anadarko filed its Notification of Lack of Consent to Final Adjudication of Fraudulent Transfer Claims and Notice
of Motion for Leave Regarding Fiduciary Duty Claim stating that Anadarko did not consent to final order authority of the Bankruptcy Court to enter a final order in the Adversary Proceeding. [Adv. Dkt. No. 308]. 

  
 10 

 20. On March 7, 2012, Anadarko filed its Motion for an Order Confirming that Defendants Have
Preserved the Defense Codified by Section 546(e) of the Bankruptcy Code or, In the Alternative, for Leave to Amend Their Answer to the Second Amended Adversary Complaint to Include Such Defense. [Adv. Dkt. No. 310]. 

21. From May 15, 2012 to September 13, 2012, the Court held trial with respect to claims against the Anadarko Trial Defendants. On
December 12, 2013, the Court issued its Memorandum Opinion, After Trial (the “Decision”), finding the Anadarko Trial Defendants liable under the Second Amended Adversary Complaint for actual and constructive fraudulent
conveyances, but not liable for breach of fiduciary duty. The Court requested and has received further briefing on issues respecting the amount of damages. [Adv. Dkt. No. 622] The Decision is not a final judgment and the Bankruptcy Court has
not issued a final judgment. 
 22. On January 13, 2014, Kerr-McGee Corporation, pursuant to the Decision, filed a claim under section
502(h) of the Bankruptcy Code on behalf of itself and the other Anadarko Trial Defendants. [Adv. Dkt. No. 623] The Litigation Trust filed objections to this 502(h) claim on February 12, 2014. [Adv. Dkt. No. 624] Anadarko also
previously filed Proofs of Claim against the Debtors on August 11, 2009, which it subsequently amended on September 11, 2009 and September 11, 2010. 

JURISDICTION AND CHAPTER 11 CASES 

23. This Court has jurisdiction to consider this motion pursuant to 28 U.S.C. §§ 157 and 1334. The Parties to the Settlement
Agreement have agreed that this Court should treat this motion as a related matter for purposes of 28 U.S.C. § 157. Venue is proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409. The statutory predicate for the relief
requested herein is Bankruptcy Rule 9019. 

  
 11 

 24. This Court has the power to issue a report and recommendation approving the Settlement
Agreement.7 Amended Standing Order of Reference, 12 Misc. 00032 (S.D.N.Y. Jan. 31, 2012). 

25. This Court has expressly retained exclusive jurisdiction over all matters arising out of, or related to, the Chapter 11 Cases,
including jurisdiction to (i) “adjudicate, decide or resolve any motions, adversary proceedings (including the Anadarko Litigation), contested or litigated matters, Causes of Action and any other matters, and grant or deny any applications
involving a Tronox Debtor that may be pending on the Effective Date,” and (ii) “hear and determine disputes arising in connection with the interpretation, implementation or enforcement of the Plan or the Confirmation Order, including
disputes arising under agreements, documents or instruments executed in connection with the Plan.” Plan, Article XI [Bankr. Dkt. No. 2567]; see also Findings of Fact, Conclusions of Law and Order Confirming the First Amended Joint
Plan of Reorganization [Bankr. Dkt. No. 2567] at ¶ 159). Hence, this Court’s jurisdiction extends to this motion and encompasses the issuance of a Report and Recommendation approving the terms of the Settlement Agreement and
recommending the issuance of an injunction by the District Court as set forth herein. 
 26. On June 13, 2013, the Court issued
its Final Decree Pursuant To Section 350(a) of the Bankruptcy Code and Bankruptcy Rule 3022 Closing Chapter 11 Cases [Bankr. Dkt. No. 2979], which closed all of the Chapter 11 Cases other than that of Tronox Incorporated, and provides that
“the Court shall retain jurisdiction over any matter pending in Tronox’s chapter 11 cases, including the Anadarko Litigation. The parties in the Anadarko Litigation may raise any issues related to the Anadarko Litigation in the pending
adversary proceeding (Adv. Proc. No. 09-01198 (ALG)) and in connection with the case of Tronox Incorporated without the need to reopen any closed cases.” 

 

	7 	By submitting this motion, Defendants do not abandon, forfeit, or otherwise waive any argument that this Court lacks authority to enter judgment on any claim against them. 

  
 12 

 THE SETTLEMENT AGREEMENT AND PERMANENT INJUNCTION 

27. The Litigation Trust, along with the United States, vigorously pursued the claims asserted in the Adversary Proceeding. After mediation
and extensive good-faith efforts pre-trial, during trial, and post-trial to resolve these claims, the settlement embodied by the Settlement Agreement was reached. The Settlement Agreement, which is attached in its entirety as Exhibit A hereto,
includes the following provisions:8 
  

	 	(a)	The United States, in its discretion, may terminate the Settlement Agreement if the public comments regarding the Settlement Agreement, following notice in the Federal Register, disclose facts or considerations that
indicate that the Settlement Agreement is inappropriate, improper, or inadequate. 

  

	 	(b)	The Effective Date of the Settlement Agreement shall not occur until after the following have occurred: 

  

	 	1.	the Bankruptcy Court shall issue a Report and Recommendation recommending the approval of the Settlement Agreement and the issuance of an injunction enjoining certain persons from asserting Trust Derivative Claims and
claims that are duplicative of Trust Derivative Claims; 

  

	 	2.	the U.S. District Court for the Southern District of New York shall issue an order approving the Report and Recommendation and enjoining the Trust Derivative Claims and claims that are duplicative of Trust Derivative
Claims as described herein and in the Settlement Agreement; and 

  

	 	3.	the District Court’s Approval Order shall become Final. The Effective Date of the Settlement Agreement is the date on which such Approval Order becomes Final. 

 

	 	(c)	No later than two (2) Business Days after the Effective Date (the “Payment Date”), Anadarko shall cause Five Billion One Hundred Fifty Million Dollars ($5,150,000,000.00) in cash plus
interest thereon from the Lodging Date as provided in Sections 3.1 and 3.3 (collectively, the “Settlement Proceeds”), to be timely paid to the Litigation Trust by wire transfer(s) of immediately available funds. The
Litigation Trust shall have the sole responsibility and obligation to cause the Settlement Proceeds to be allocated and distributed to the Litigation Trust Beneficiaries consistent with the Litigation Trust Agreement. 

 
  

	8 	To the extent there is any conflict between the terms of the Settlement Agreement and the summary of its terms in this motion, the Settlement Agreement controls. 

  
 13 

	 	(d)	Within five (5) Business Days following receipt of the Settlement Proceeds, the Litigation Trustee and the United States shall commence taking all steps necessary to cause the Adversary Proceeding to be dismissed
with prejudice. 

  

	 	(e)	As set forth more completely in Section 4.1.1, upon the payment of the Settlement Proceeds, the Litigation Trust fully, finally, and forever irrevocably releases any Anadarko Released Party from and against any and
all claims that are held and/or controlled by the Litigation Trust and then existing or thereafter arising out of, accruing from or relating to (i) the Chapter 11 Cases (including the Bankruptcy Claims), (ii) the Adversary Proceeding,
(iii) the Covered Sites, or (iv) the Trust Derivative Claims. 

  

	 	(f)	As set forth more completely in Section 4.1.2.1, upon the payment of the Settlement Proceeds, Anadarko fully, finally, and forever irrevocably releases the Litigation Trustee, the Litigation Trust, and each of its
past, present and future employees, agents, managers, attorneys and other representatives, including but not limited to the current and future Litigation Trustee and current and future members of the Trust Advisory Board, from and against any and
all claims then existing or thereafter arising out of, accruing from or relating to (i) the Chapter 11 Cases (including the Bankruptcy Claims), (ii) the Adversary Proceeding, (iii) the Covered Sites, or (iv) the Trust Derivative
Claims or claims, if any, which are duplicative of Trust Derivative Claims, whether or not held or controlled by the Litigation Trust, or whether or not the Litigation Trust could have asserted such claims against any Anadarko Released Party.

  

	 	(g)	As set forth more completely in Sections 4.2.1.1 through 4.2.1.7 of the Settlement Agreement, upon the payment of the Settlement Proceeds, the United States covenants not to sue the Anadarko Covenant Parties or, in the
case of 4.2.1.6, Anadarko for certain common law claims that are Trust Derivative Claims and certain statutory claims with respect to Covered Sites. 

  

	 	(h)	As set forth more completely in Section 4.3.1, upon the payment of the Settlement Proceeds, Anadarko covenants not to sue the United States, any Beneficiary, or the Environmental and Tort Trusts for any offset or
reduction of the recovery in the Adversary Proceeding, including but not limited to any claim pursuant to § 502(h) of the Bankruptcy Code, and covenants not to sue and waives any claim for reimbursement of the Settlement Proceeds against
the United States, any Beneficiary, or the Environmental and Tort Trusts. 

  

	 	(i)	As set forth more completely in Section 4.3.2, upon the payment of the Settlement Proceeds, Anadarko covenants not to sue or assert any civil claims or causes of action against the United States, any Beneficiary,
or the Environmental and Tort Trusts with respect to the Covered Sites. 

  
 14 

	 	(j)	As set forth more completely in Section 4.4, the Parties agree that, upon the Approval Order becoming Final, the Settlement Agreement will constitute a judicially approved settlement for purposes of
Section 113(f)(2) of CERCLA, and that Anadarko is entitled, upon payment of the Settlement Proceeds, to protection from contribution actions or claims as provided by Section 113(f)(2), of CERCLA, 42 U.S.C. §§ 9613(f)(2), or as
otherwise provided by law for matters addressed in the Settlement Agreement. 

  

	 	(k)	As set forth more completely in Section 4.5, to the extent that any of the Debtors or the Debtor’s estates transferred any contribution rights to the Litigation Trust pursuant to the Plan and the Environmental
and Tort Trust Agreements, the Litigation Trust shall not pursue such contribution rights against third-parties where such third-party could reasonably be expected to assert a claim against the Anadarko Covenant Parties or Anadarko Released Parties
in connection therewith; provided, however, that if the Litigation Trust does pursue any such claim against a third-party, and such third-party asserts a claim against an Anadarko Covenant Party or Anadarko Released Party, the Litigation Trust shall
immediately transfer and assign such contribution rights to the Anadarko Party against whom the claim is being asserted. 

  

	 	(l)	Subject to certain limitations set forth in Section 6.2, the Litigation Trust agrees to cooperate with and support Anadarko’s efforts to enforce the Approval Order. 

 

	 	(m)	The Bankruptcy Court and District Court shall retain jurisdiction to resolve (or recommend resolution to the extent that the Bankruptcy Court does not have final order authority) disputes in connection with, and to
enforce, the Settlement Agreement. 

  

	 	(n)	In the event that the Settlement Agreement shall be determined, by a Final order of a court of competent jurisdiction, to be null and void, the Settlement Agreement shall be of no force whatsoever except with respect to
the provisions contained in Sections 8 and 9. 

 28. As part of the Settlement Agreement, the Parties are seeking a Report and
Recommendation recommending issuance of a permanent injunction as follows: “Pursuant to 28 U.S.C. §§ 1367 & 1651, § 105(a) of the Bankruptcy Code and Bankruptcy Rules 7001 and 7065, (i) any Debtor(s), (ii) any
creditor of any Debtor who filed or could have filed a claim in the Chapter 11 Cases, (iii) any other Person whose claim (A) in any way arises from or is related to the Adversary Proceeding, (B) is a Trust Derivative Claim, or
(C) is duplicative of a Trust Derivative Claim, and (iv) any Person acting or purporting to act as an attorney for any of the 

  
 15 

 
preceding is hereby permanently enjoined from asserting against any Anadarko Released Party (I) any Trust Derivative Claims or (II) any claims that are duplicative of Trust Derivative
Claims, whether or not held or controlled by the Litigation Trust, or whether or not the Litigation Trust could have asserted such claims against any Anadarko Released Party. The injunction herein shall not apply to or bar the following:
(i) any criminal liability; (ii) any liability arising under Title 26 of the United States Code (Internal Revenue Code) or state tax laws; (iii) any liability arising under federal or state securities laws; (iv) any action to
enforce a covenant not to sue, release, or agreement not to seek reimbursement contained in the Settlement Agreement; (v) any liability that an Anadarko Released Party might have that does not arise from or through a liability of a Debtor;
(vi) any liability of an Anadarko Released Party due to its status or acts or omissions since November 28, 2005 as a/an (A) owner, (B) operator, (C) discharger, (D) lessee, (E) permittee, (F) licensee,
(G) person in charge, (H) holder of a right of use and easement, (I) arranger for disposal or treatment, (J) transporter, or (K) person who generates, handles, transports, treats, stores or disposes of solid or hazardous
waste; and (vii) any liability relating to the E&P Business or the stored power or battery business (including, but not limited to, as owned or operated by U.S. Avestor LLC and Kerr-McGee Stored Power Company LLC9 ), and (viii) any liability that any Anadarko Released Party retained, received or assumed pursuant to the Assignment Agreement or Assignment, Assumption, and Indemnity Agreement. For the
avoidance of doubt, to the extent that a liability of an Anadarko Released Party excluded from the injunction herein by the preceding sentence would be a liability for which such Anadarko Released Party would be jointly and severally liable with
others, including but not limited to one or more Debtors or Reorganized Debtors, under applicable law, nothing in this injunction is 

 

	9 	Provided, however, that as it relates to Kerr-McGee Stored Power Company LLC, subpart (vii) is applicable only to the extent that such liability, if any, relates to or arises from the stored power or battery
business. 

  
 16 

 intended to alter any such applicable principles of joint and several liability where otherwise provided by law.
The injunction herein does not apply to the Litigation Trust and the United States, which are providing releases and covenants not to sue in the Settlement Agreement.” 

29. In an effort to provide broad notice of the Settlement Agreement and requested injunction, Anadarko has agreed to serve this motion on the
Litigation Trust Beneficiaries and all other Persons currently or previously appearing on the most recent version of the Bankruptcy Court’s Rule 2002 service list and on the service list in the Adversary Proceeding. Anadarko may supplement this
service with such additional service or publication it deems appropriate. Anadarko shall be solely responsible for all fees and costs incurred in providing the aforementioned notices. 

ARGUMENT 
 The
Settlement Agreement Should Be Approved Under Bankruptcy Rule 9019 
  

	I.	The Controlling Legal Standard Under Bankruptcy Rule 9019 

 30. This Court has the power
to recommend approval of the Settlement Agreement. Bankruptcy Rule 9019(a) provides, in pertinent part, “[o]n motion by the trustee and after notice and a hearing, the court may approve a compromise or settlement.” Fed. R. Bankr. P.
9019(a). See In re Key3Media Grp., Inc., 336 B.R. 87, 92 (Bankr. D. Del. 2005) (approving a post-confirmation settlement of fraudulent transfer claims under Rule 9019). 

31. The decision to approve a particular compromise lies within the sound discretion of the bankruptcy court. See Nellis v. Shugrue,
165 B.R. 115, 123 (S.D.N.Y. 1994); In re Drexel Burnham Lambert Grp., Inc. 134 B.R. 493, 505 (Bankr. S.D.N.Y. 1991). Discretion may be exercised by the court “in light of the general public policy favoring settlements.” In re
Hibbard Brown & Co., 217 B.R. 41, 46 (Bankr. S.D.N.Y. 1998). A proposed compromise and settlement implicates the issue of whether it is “fair and equitable, and in the best interest of the [debtor’s]

  
 17 

 
estate.” In re Best Prods., Co., 168 B.R. 35, 50 (Bankr. S.D.N.Y. 1994) (internal citations omitted). A settlement must not “fall below the lowest point in the range of
reasonableness.” Vaughn v. Drexel Burnham Lambert Grp., Inc. (In re Drexel Burnham Lambert Grp., Inc.), 134 B.R. 499, 505 (Bankr. S.D.N.Y. 1991); see also Cosoff v. Rodman (In re W.T. Grant Co.), 699 F.2d 599, 608 (2d Cir.
1983); In re Spielfogel, 211 B.R. 133, 144 (Bankr. E.D.N.Y. 1997). 
 32. The following factors are considered in determining
whether a settlement should be approved: (i) the probability of success in litigation, with due consideration for the uncertainty in fact and law; (ii) the complexity and likely duration of the litigation and any attendant expense,
inconvenience, and delay; (iii) the proportion of creditors who do not object to, or who affirmatively support, the proposed settlement; and (iv) the extent to which the settlement is truly the product of arm’s-length bargaining and
not the product of fraud or collusion. See Protective Comm. for Indep. Stockholders of TMT Trailer Ferry, Inc. v. Anderson, 390 U.S. 414, 424 (1968); In re Iridium Operating LLC, 478 F.3d 452, 462 (2d Cir. 2007); In re Drexel
Burnham Lambert Grp., Inc., 960 F.2d 285, 292 (2d Cir. 1992); In re Ionosphere Clubs, Inc., 156 B.R. 414, 428 (S.D.N.Y. 1993); In re Ashford Hotels, Ltd., 226 B.R. 797, 804 (Bankr. S.D.N.Y. 1998); In re Best Prods.
Co., 168 B.R. at 50. 
 33. A court must “evaluate ... all ... factors relevant to a fair and full assessment of the wisdom
of the proposed compromise.” TMT Trailer, 390 U.S. at 424-25. A court need not conduct a full independent investigation. In re Drexel Burnham Lambert Grp., Inc., 134 B.R. at 496. “[T]he bankruptcy judge does not have
to decide the numerous questions of law and fact .... The court need only canvass the settlement to determine whether it is within the accepted range of reasonableness.” Nellis, 165 B.R. at 123 (internal citations omitted). 

  
 18 

 34. The court may give weight to the “informed judgments of the ... debtor-in- possession
and their counsel that a compromise is fair and equitable, and consider the competency and experience of counsel who support the compromise.” In re Drexel Burnham Lambert Grp., Inc., 134 B.R. at 505 (internal citations omitted);
see also In re Purofied Down Prods. Corp., 150 B.R. 519, 522 (S.D.N.Y. 1993); accord Ashford Hotels, Ltd., 226 B.R. at 802 (“Significantly, that test does not contemplate that [the court] substitute [its] judgment for the
Trustee’s, but only that [the court] test his choice for reasonableness.... If the Trustee chooses one of two reasonable choices, [the court] must approve that choice, even if, all things being equal, [the court] would have selected the
other.”). In order to evaluate the necessary facts, a court may rely on the opinion of the trustees, settlement parties and professionals. In re Chemtura Corp., 439 B.R. 561, 594 (Bankr. S.D.N.Y. 2010); see also In re Best Prods.
Co., 168 B.R. at 50. 
 35. There is no requirement that “the value of the compromise ... be dollar-for-dollar the equivalent of
the claim.” In re Ionosphere Clubs, Inc., 156 B.R. at 427. 
  

	II.	The Settlement Agreement Meets the Legal Standard Established Under Rule 9019 

 36. The
Settlement Agreement represents an integrated and comprehensive resolution of highly complex and disputed claims. Anadarko, the Litigation Trust, and the United States have comprehensively analyzed and considered the issues relating to the Adversary
Proceeding and the releases and covenants not to sue granted in the Settlement Agreement, and, for the United States, subject to the public comment process, have concluded that, in light of the numerous benefits of the Settlement Agreement, the
settlement embodied therein is fair and equitable and represents a reasonable resolution of highly complex issues. 

  
 19 

 37. Absent this settlement, all Parties face inherent and significant litigation risk and costs.
The Settlement Agreement also enables Anadarko, the Litigation Trust, and the United States to avoid the risks and costs associated with an extended period of potential appellate review of the Decision and other rulings by the Bankruptcy Court.
Continued appellate litigation would likely take years and substantial expenditures to fully prosecute, with no certainty of recovery by the Litigation Trust or United States, much less any certainty of a greater recovery than that provided under
the Settlement Agreement without all of the attendant delay of payment. 
 38. By contrast, if the Settlement Agreement is approved, the
Litigation Trust will receive, within a relatively short time-frame, a substantial recovery of Five Billion One Hundred Fifty Million Dollars ($5,150,000,000.00) plus Interest in cash, the net proceeds of which will be distributed to the
Beneficiaries on account of their Bankruptcy Environmental Claims and Bankruptcy Tort Claims in accordance with the Distribution Scheme. 

39. Anadarko, the Litigation Trust, and the United States expended considerable resources and time negotiating the Settlement Agreement and
have made material concessions in order to reach an agreement. In entering into the Settlement Agreements, they have assessed the probability of success in the Adversary Proceeding, and considered the contested legal and factual issues in dispute in
consultation with their attorneys. 
 40. Finally, the Parties have negotiated the Settlement Agreements at arm’s length to reach a
fair resolution of their disputes. The settlement is not the product of fraud or collusion. The Parties have all been represented by competent and experienced professionals. Significant resources have been invested by the Parties in evaluating the
Settlement Agreement. The Settlement Agreement is the product of well-informed judgment and satisfies the standards for approval. 

  
 20 

 41. Accordingly, Anadarko and the Litigation Trust submit that the Settlement Agreement is well
within the range of reasonableness and should be approved by the Court. 
 The Injunction Should Be Approved 

 

	III.	An Injunction Under Section 105(a) is Warranted and Necessary 

 42. The Litigation
Trust and Anadarko seek a recommendation that the District Court enter a narrowly tailored injunction as set forth above, without which the settlement embodied by the Settlement Agreement will not occur. 

43. This Court has subject matter jurisdiction to recommend issuance of the injunction because the claims that the Parties seek to enjoin are
derivative claims which the Litigation Trust has “exclusive standing” to assert in the first instance. Secs. Inv. Protection Corp. v. Bernard L. Madoff Inv. Secs. LLC, 429 B.R. 423, 430 (Bankr. S.D.N.Y. 2010). 

44. Pursuant to 28 U.S.C. § 1334(b), District Courts (and therefore Bankruptcy Courts) have original jurisdiction over civil proceedings
“arising under” and “arising in” and “related to” cases under title 11. 28 U.S.C. § 1334(b); see also In re Adelphia Commc’ns Corp., 2006 WL 1529357, at *6 (Bankr. S.D.N.Y. June 5, 2006).
“Related to” jurisdiction to enjoin a third party dispute exists where the subject of the third party dispute is property of the estate or the dispute would have an effect on the estate. In re Johns-Manville Corp., 517 F.3d 52, 65
(2d Cir. 2008), vacated & remanded on other grounds, 557 U.S. 137, 129 S.Ct. 2195, 174 L.Ed.2d 99 (2009), aff’g in part & rev’g in part, 600 F.3d 135 (2d Cir. 2010); In re Delta Airlines, Inc., 374
B.R. 516, 525 (S.D.N.Y. 2007). 
 45. The Second Circuit has recently affirmed an injunction of duplicative or derivative claims by a
Bankruptcy Court similar to the one sought herein. In In re Bernard L. Madoff Inv. Securities LLC, the Second Circuit upheld a permanent injunction issued by the Bankruptcy Court barring duplicative or derivative claims in connection with a
settlement 

  
 21 

 
between the trustee and the defendants of fraudulent transfer claims. 740 F.3d 81 (2d. Cir. 2014). The Second Circuit agreed with the lower courts that certain putative class actions were barred
as duplicative and derivative of claims asserted in the trustee’s complaint. The Second Circuit stated: “We have defined so-called ‘derivative claims’ in the context of bankruptcy as ones that ‘arise[ ] from harm done to the
estate’ and that ‘seek [ ] relief against third parties that pushed the debtor into bankruptcy.’ In assessing whether a claim is derivative, we inquire into the factual origins of the injury and, more importantly, into the nature of
the legal claims asserted. While a derivative injury is based upon ‘a secondary effect from harm done to [the debtor],’ an injury is said to be ‘particularized’ when it can be ‘directly traced to [the third party’s]
conduct.’” Id. at 89 (internal citations omitted); see also In re Dewey & LeBoeuf LLP, 478 B.R. 627, 644-45 (Bankr. S.D.N.Y. 2012) (approving a settlement with former partners of a law firm with a related injunction
against derivative claims). 
 46. The parties request an injunction nearly identical to that upheld by the Second Circuit in In re
Madoff. Like the injunction that was upheld there, the injunction sought herein, “by its own terms, is limited to third party claims based on derivative or duplicative liability or claims that could have been brought by the Trustee against
the” released parties. In re Madoff, 740 F.3d at 89. Subject to certain limitations, the Parties seek the issuance of an injunction enjoining “(i) any Debtor(s), (ii) any creditor of any Debtor who filed or could have filed a
claim in the Chapter 11 Cases, (iii) any other Person whose claim (A) in any way arises from or is related to the Adversary Proceeding, (B) is a Trust Derivative Claim, or (C) is duplicative of a Trust Derivative Claim, and
(iv) any Person acting or purporting to act as an attorney for any of the preceding is hereby permanently enjoined from asserting against any Anadarko Released Party (I) any Trust Derivative Claims or (II) any claims that are duplicative
of such Trust 

  
 22 

 
Derivative Claims, whether or not held or controlled by the Litigation Trust, or whether or not the Litigation Trust could have asserted such claims against any Anadarko Released Party.”
(See Ex. A) “Insofar as such claims are truly duplicative or derivative, they undoubtedly have an effect on the bankruptcy estate and, thus, are subject to the Bankruptcy Court’s jurisdiction.” In re Madoff, 740 F.3d at
89.10 
 47. In addition to the above authorities, the proposed injunction is
consistent with the injunction entered by the Court in In re Dreier LLP, which excluded from the scope of the injunction actions where there was an independent basis on which to bring suit. 429 B.R. 112, 132-34 (Bankr. S.D.N.Y. 2010),
aff’d, 2010 WL 3835179, at *4-5 (S.D.N.Y. Sept. 10, 2010) (upholding injunction and endorsing pro rata distribution for similarly situated victims of a Ponzi scheme). The court in In re Dreier LLP addressed jurisdiction in the context of
derivative claims. Marc S. Dreier, who was the sole equity partner of Dreier LLP, committed fraud against his clients by selling them sham promissory notes. Id. at *117. GSO, an investment manager for certain purchasers of notes, transferred
over a hundred million dollars to Dreier LLP accounts. Id. at *119-20. After the fraud was discovered, Dreier and Dreier LLP filed bankruptcy cases. In an effort to settle potential avoidance actions against GSO, the Chapter 11 Trustee and
Chapter 7 Trustee, along with GSO, entered into a settlement agreement, whereby GSO would contribute over $10 million of value to the debtors’ estates in exchange for a release and injunction against 

 

	10 	In addition, because the derivative claims included in the requested injunction are property of the estate, the Trustee has “exclusive standing” to assert such causes of action. Sec. Investor Prof. Corp. v.
Bernard L. Madoff Inc. Sec. LLC, 429 B.R. 423, 430-31 (Bankr. S.D.N.Y. 2010); McHale v. Alvarez (In re The 1031 Tax Grp., LLC), 397 B.R. 670, 679 (Bankr. S.D.N.Y. 2008); Goldin v. Primavera Familienstiftung, Tag
Assocs. Ltd. (In re Granite Partners L.P.), 194 B.R. 318, 324-25 (Bankr. S.D.N.Y. 1996). The Second Circuit has stated that “[i]f a claim is a general one, with no particularized injury arising from it, and if that claim could be brought by
any creditor of the debtor, the trustee is the proper person to assert the claim, and the creditors are bound by the outcome of the trustee’s action.” Sec. Investor Prot. Corp., 429 B.R. at 4303 (quoting St. Paul Fire &
Marine Ins. Co. v. PepsiCo, Inc., 884 F.2d 688, 701 (2d Cir. 1989)); see also In re Emoral, Inc. 740 F.3d 875, 880 (3d. Cir. 2014) (discussing whether a cause of action belongs to the estate, and stating that “state law causes of
action for successor liability, just as for alter ego and veil-piercing causes of action, are properly characterized as property of the bankruptcy estate.”). 

  
 23 

 
third-party claims. Id. at *120. The court first found that it “plainly” had jurisdiction to bar general creditors of the estates from seeking to recover their claims from the
funds transferred by Dreier LLP to GSO. Id. at *131-32. The court relied on the principles stated in FDIC v. Hirsch (In re Colonial Realty Co.), 980 F.2d 125 (2d Cir. 1992), which recognized that the automatic stay barred an action by
the FDIC to recover property that the debtor had transferred before bankruptcy, and Keene Corp. v. Coleman (In re Keene Corp.), 164 B.R. 844, 850 (Bankr. S.D.N.Y. 1994), which held that a bankruptcy trustee alone has standing to maintain
avoidance actions. Id. at *131-32. Based on these principles, the Court reasoned, the bankruptcy court could permanently enjoin “derivative” creditor claims on avoidance funds because “[a]bsent that power, the Trustees will be
hampered in their ability to pursue and ultimately settle fraudulent transfer claims from a transferee fearful of paying twice for the same transfer—once on the Trustees’ claim and a second time on the derivative claim.” Id. at
*132 (citing SEC v. Drexel Burnham Lambert Grp., Inc. (In re Drexel Lambert Grp., Inc.), 960 F.2d 285, 293 (2d Cir. 1992).11 An injunction is appropriate to avoid the re-litigation of
claims asserted on behalf of all creditors of the Debtors that have been resolved by the Litigation Trust, particularly where the Litigation Trustee has resolved those claims in a manner that provides substantial funding to creditors on account of
their Bankruptcy Environmental Claims and Bankruptcy Tort Claims in accordance with the Distribution Scheme embodied in the Court-approved Plan and Environmental and Tort Trust Agreements. 

 
  

	11 	The Court in Dreier went on to determine that the injunction sought exceeded the Court’s jurisdiction for reasons not applicable in this case. Following that decision, the Dreier trustee filed a renewed motion for
approval of the settlement agreement with a more tailored injunction. By order dated June 8, 2010, the Court approved the settlement and entered the injunction sought by the Dreier trustee [Case No. 08-15051 (SMB) ECF No. 610].

  
 24 

 48. If Derivative Claims were allowed to be asserted, claimants would be permitted to side-step
the jurisdiction of this Court, and the mechanisms and compromises approved in the Plan, Litigation Trust Agreement, and the Environmental and Tort Trust Agreements. Permitting parties with claims derivative of those owned and settled by the
Litigation Trust to prosecute such claims would also create the potential for double recovery. 
 49. The injunction is narrowly tailored,
applying only with respect to those claims that are derivative of the claims owned by the Litigation Trust or duplicative of such claims. Given the fact that the injunction and releases are “narrowly drawn and are necessary to prevent
relitigation of precisely the claims that were negotiated and resolved by the Settlement Agreement,” In re Delta Airlines, Inc., 374 B.R. at 526, this Court has the authority to grant the injunction sought. 

NOTICE 
 50. Notice
of this motion has been or will be given to the Litigation Trust Beneficiaries and all other Persons currently or previously appearing on the most recent version of the Bankruptcy Court’s Rule 2002 service list and the service list in the
Adversary Proceeding. Although Anadarko may supplement this service with such additional service or publication as it deems appropriate, the Litigation Trust and Anadarko submit that no other or further notice need be given and respectfully requests
that the Court find that such notice is proper and sufficient. 
 NO PRIOR REQUEST 

51. No previous request for the relief sought herein has been made to this or to any other Court. 

  
 25 

 CONCLUSION AND RELIEF SOUGHT 

52. The Litigation Trust and Anadarko submit that the Agreement should be approved for two principal reasons: (a) to avoid further
lengthy and burdensome litigation, and (b) because it represents a reasonable compromise of the claims in the Adversary Proceeding and provides substantial funding to the Litigation Trust, the net proceeds of which will be paid to the
Beneficiaries on account of their Bankruptcy Environmental Claims and Bankruptcy Tort Claims. Accordingly, because the Settlement is well within the “range of reasonableness” and confers a substantial benefit on the estate, the Litigation
Trust and Anadarko respectfully request that the Court: 
  

	 	(i)	grant the Motion and issue the Report and Recommendation recommending approval of the Agreement and the issuance of the permanent injunction as set forth herein; and 

 

	 	(ii)	schedule a hearing on the Motion, which hearing the parties respectfully request to take place at the same time as any oral argument on the Environmental Motion. 

  
 26 

			
	 New York, New York
 Dated: April
    , 2014
	  	 Respectfully submitted,
  

/s/ Draft
  

		  	 David J. Zott, P.C. (admitted pro hac vice)

Andrew A. Kassof, P.C. (AK 7079)
 Jeffrey J. Zeiger (admitted
pro hac vice)
 James R.P. Hileman (admitted pro hac vice)

Kirkland & Ellis LLP
 300 North LaSalle

Chicago, Illinois 60654-3406
 Telephone: (312) 862-2000

Facsimile: (312) 862-2200
  

Counsel for the Anadarko Litigation Trust
  

John C. Hueston, Litigation Trustee
 Irell & Manella LLP

1800 Avenue of the Stars, Suite 900
 Los Angeles, California
90067
 Telephone: (310) 277-1010
 Facsimile: (310) 203-7199

 
 Anadarko Litigation Trustee

 
 /s/ Draft

 
 Melanie Gray (admitted pro hac vice)

Lydia Protopapas (LP 8089)
 Jason W. Billeck (admitted pro hac
vice)
 Winston & Strawn LLP
 1111 Louisiana Street, 25th
Floor
 Houston, TX 77002-5242
 Telephone: (713) 651-2600

Facsimile: (713) 651-2700
  

P. Sabin Willett (admitted pro hac vice)
 Thomas R. Lotterman
(admitted pro hac vice)
 James J. Dragna (admitted pro hac vice)

Bingham McCutchen LLP
 One Federal Street

Boston, MA 02110-1726
 Telephone: (617) 951-8000

Facsimile: (617) 951-8736

  
 27 

			
		
		  	 Gregory Silbert (GS 0033)
 Weil, Gosthal &
Manges LLP
 767 Fifth Avenue
 New York, NY 10153

Telephone: (212) 310-8000
 Facsimile: (212) 310-8007

 
 Kenneth N. Klee (KK 5910)

David M. Stern (admitted pro hac vice)
 Klee, Tuchin, Bogdanoff
& Stern LLP
 1999 Avenue of the Stars, 39th Floor
 Los
Angeles, CA 90067
 Telephone: (310) 407-4000
 Facsimile: (310)
407-9090
  
 Counsel for Defendants

  
 28 

 CERTIFICATE OF SERVICE 

I hereby certify that on the     th day of         , 2014, a true and correct copy
of the foregoing was served on [            ]: 

 EXHIBIT A 

Settlement Agreement 

 EXHIBIT B 

Form of Dismissal with prejudice 

 EXHIBIT B 

FORM OF APPROVAL ORDER 

[Attached] 

 UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 
  

					
	  
	  	)	  	
			
	 TRONOX INCORPORATED, TRONOX

WORLDWIDE LLC f/k/a Kerr-McGee Chemical
 Worldwide LLC, and TRONOX
LLC f/k/a
 Kerr-McGee Chemical LLC,
  

Plaintiffs,
 v.

 
 KERR-MCGEE CORPORATION, KERR-MCGEE

OIL & GAS CORPORATION, KERR-MCGEE
 WORLDWIDE CORPORATION,
KERR-MCGEE INVESTMENT CORPORATION, KERR-MCGEE
 CREDIT LLC, KERR-MCGEE SHARED SERVICES COMPANY LLC, and KERR-MCGEE STORED

POWER COMPANY LLC,
  

Defendants.
	  	)
 )
 )

)
 )

)
 )

)
 )

)
 )

)
 )

)
 )

)
 )

)
	  	 Case No.
                            
  

Adv. Pro. No. 09-01198 (ALG)
  

			
	 THE UNITED STATES OF AMERICA,

 
 Plaintiff-Intervenor,

v.
  

TRONOX, INC., TRONOX WORLDWIDE LLC,
 TRONOX LLC, KERR-MCGEE
CORPORATION,
 and ANADARKO PETROLEUM CORPORATION,
  

Defendants.
	  	)
 )
 )

)
 )

)
 )

)
 )

)
 )

)
	  	

 ORDER APPROVING REPORT AND RECOMMENDATION OF THE BANKRUPTCY COURT RECOMMENDING APPROVAL OF SETTLEMENT
AGREEMENT RESOLVING ADVERSARY PROCEEDING AND ISSUANCE OF AN INJUNCTION ENJOINING CERTAIN PERSONS FROM ASSERTING CERTAIN CLAIMS  

Upon the Report and Recommendation issued by the United States Bankruptcy Court for the Southern District of New York on
[            ,] 2014 (the “Report and Recommendation”) recommending approval of the Settlement Agreement dated April
[            ,] 

 
2014 (the “Settlement Agreement”)1 and the issuance of an injunction enjoining certain persons from asserting certain
claims; the Court having considered the Report and Recommendation and all objections (the “Objections”) and responses thereto; it further appearing that approval of the Report and Recommendation is appropriate based upon the
entire record before this Court, including the hearing on [            , 2014] in response to any Objections; and after due deliberation and sufficient cause appearing therefor, the Court
hereby makes the following findings of fact and conclusions of law:2 

FINDINGS OF FACT 

A. On January 12, 2009, Tronox Incorporated and certain of its affiliates (collectively, the “Debtors”) commenced chapter 11
cases (the “Chapter 11 Cases”) in the Bankruptcy Court. On November 30, 2010, the Bankruptcy Court confirmed the Debtors’ Plan. On February 14, 2011, the Plan became effective. 

B. In the Chapter 11 Cases, the United States, other governmental entities, and other Persons filed Proofs of Claim against the Debtors on
account of, among other things, alleged environmental claims, obligations, and/or liabilities at certain of the Covered Sites (as to such Proofs of Claim filed by the United States and other governmental entities, the “Bankruptcy
Environmental Claims,” and as to such Proofs of Claim filed by other Persons, the “Bankruptcy Indirect Environmental Claims”). Various tort claimants filed Proofs of Claim 

 

	1 	A copy of the Report and Recommendation is annexed hereto as Exhibit A. A copy of the Settlement Agreement is annexed hereto as Exhibit B. All capitalized terms not otherwise defined herein
shall have the meanings ascribed to them in the Settlement Agreement. This Order summarizes the Settlement Agreement, including certain of its terms. In the event of any conflict between the summary in this Order and the Settlement Agreement, the
Settlement Agreement shall control unless this Order expressly provides otherwise. 

	2 	The findings and conclusions set forth herein constitute the Court’s findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52. To the extent any of the following findings of fact
constitute conclusions of law, they are adopted as such. To the extent that any of the following conclusions of law constitute findings of fact, they are adopted as such. 

 

  
 2 

 
against the Debtors on account of alleged tort liabilities, including for personal injury and property damage (the “Bankruptcy Tort Claims” and, together with the
Bankruptcy Environmental Claims and the Bankruptcy Indirect Environmental Claims, the “Bankruptcy Claims”). The Bankruptcy Claims were (or will be) resolved or addressed pursuant to the Plan and related agreements, including
the Environmental Settlement Agreement, the Cimarron Environmental Response Trust Agreement, the Multistate Environmental Response Trust Agreement, the Nevada Environmental Response Trust Agreement, the Savannah Environmental Response Trust
Agreement, the West Chicago Environmental Response Trust Agreement, and the Tort Claims Trust Agreement (collectively, but excluding the Plan and the Environmental Settlement Agreement, the “Environmental and Tort Trust
Agreements”), and the Litigation Trust Agreement, and other prior proceedings of the Bankruptcy Court. 
 C. There are two
complaints against Anadarko currently being jointly litigated in Tronox Inc., et al. v. Kerr-McGee Corporation, et al. (In re Tronox Inc.), Adv. Proc. No. 09-01198 (Bankr. S.D.N.Y.): 

 

	 	(i)	the Second Amended Adversary Complaint, originally commenced during the Chapter 11 Cases by certain of the Debtors but assigned and transferred to, and currently prosecuted by, the Litigation Trust for the benefit of
its beneficiaries (including the United States) pursuant to the Plan, the Litigation Trust Agreement, and the Environmental Settlement Agreement, and which, at the time of trial, asserted claims including: actual fraudulent transfer under Bankruptcy
Code §§ 544(b) and 550(a); constructive fraudulent transfer under Bankruptcy Code §§ 544(b) and 550(a); constructive fraudulent transfer under Bankruptcy Code §§ 548 and 550(a); breach of fiduciary duty; equitable
subordination; and equitable disallowance; and which originally asserted claims for civil conspiracy, aiding and abetting fraudulent conveyance, unjust enrichment, disallowance of claims pursuant to § 502(d) of the Bankruptcy Code, and
disallowance of contingent indemnity claims pursuant to § 502(e)(1)(B) of the Bankruptcy Code; and 

  

	 	(ii)	the Complaint-In-Intervention filed by the United States, asserting claims under the Federal Debt Collection Procedures Act, 28 U.S.C. §§ 3301-3308. 

  
 3 

 D. The Plan, Litigation Trust Agreement, and Environmental Settlement Agreement assigned, as
provided in the Confirmation Order and the Litigation Trust Agreement, all of the Debtors’ respective rights and interests in the Adversary Proceeding (excluding the Complaint-In-Intervention), which includes any claims or causes of action of
the Debtors related to the Adversary Proceeding, whether or not asserted in the Adversary Proceeding, to the Litigation Trust for the benefit of the entities listed in Section 1(d) of the Litigation Trust Agreement, which include the Tort
Claims Trust (the “Tort Claims Trust”), the Cimarron Environmental Response Trust (“Cimarron Trust”), the Multistate Environmental Response Trust (the “Multistate Trust”), the
Nevada Environmental Response Trust (the “Nevada Trust”), the Savannah Environmental Response Trust (“Savannah Trust”) (the Tort Claims Trust, Cimarron Trust, Multistate Trust, Nevada Trust and
Savannah Trust, along with the West Chicago Environmental Response Trust (“West Chicago Trust”), are hereafter, collectively, the “Environmental and Tort Trusts” and each individually an
“Environmental and Tort Trust”), and certain governmental entities that had asserted Bankruptcy Environmental Claims against the Debtors (collectively, “Litigation Trust Beneficiaries”). Pursuant to
the Plan, Litigation Trust Agreement, Environmental Settlement Agreement, and Environmental and Tort Trust Agreements (other than the West Chicago Environmental Response Trust Agreement), the Litigation Trust Beneficiaries and beneficiaries of the
Environmental and Tort Trusts (together with the Litigation Trust Beneficiaries, the “Beneficiaries”) are entitled to have paid, on account of their Bankruptcy Environmental Claims and Bankruptcy Tort Claims, specified
allocations (the “Distribution Scheme”) of a share of the net proceeds of any recovery from the Adversary Proceeding, the principal allocation of which involves payment of approximately 88% of the net

  
 4 

 
proceeds of any recovery on account of Bankruptcy Environmental Claims and payment of approximately 12% of the net proceeds of any recovery on account of Bankruptcy Tort Claims, with subsidiary
allocations on account of the Bankruptcy Environmental Claims and Bankruptcy Tort Claims governed by the Environmental Settlement Agreement, Litigation Trust Agreement, and the Environmental and Tort Trust Agreements (other than the West Chicago
Environmental Response Trust Agreement). Further, the Litigation Trust Agreement provides that the proceeds of any settlement or other resolution of the Complaint-in-Intervention would be treated as if they were funds obtained on the Second Amended
Adversary Complaint by the Litigation Trust. 
 E. From May 15, 2012 to September 13, 2012, the Bankruptcy Court held trial with
respect to claims against the Anadarko Trial Defendants. On December 12, 2013, the Bankruptcy Court issued its Memorandum Opinion, After Trial (the “Decision”), finding the Anadarko Trial Defendants liable under the
Second Amended Adversary Complaint for actual and constructive fraudulent conveyances, but not liable for breach of fiduciary duty. The Bankruptcy Court requested and received further briefing on issues respecting the amount of damages. The Decision
is not a final judgment and the Bankruptcy Court did not enter final judgment. 
 F. Before the proceedings in front of the Bankruptcy Court
concluded, the Parties entered into the Settlement Agreement on April [    ], 2014, which resolves the Adversary Proceeding and provides for releases, covenants not to sue, and the issuance of an injunction by this Court
enjoining certain persons from asserting Trust Derivative Claims and any claims that are duplicative of such Trust Derivative Claims. 

  
 5 

 G. On April [    ], 2014, the United States lodged the Settlement Agreement
with the Bankruptcy Court. On April [    ], 2014, the United States published a notice for public comment thereon in the Federal Register. [The comment period expired on May [    ], 2014 and did not disclose
any facts or considerations that indicate that the Settlement Agreement is inappropriate, improper, or inadequate.] 
 H. On April
[    ], 2014, the Litigation Trust and Anadarko filed a motion (the “9019 Recommendation Motion”) with the Bankruptcy Court, seeking the Report and Recommendation. [On [    ,] 2014, the
United States filed the Environmental Motion with the Bankruptcy Court. The Bankruptcy Court held a hearing on [    ,] 2014 to consider the 9019 Recommendation Motion and Environmental Motion, and issued its Report and
Recommendation on [    ,] 2014.] 
 I. [The Report and Recommendation found, inter alia, that: 

 

	 	•	 	Proper, timely, adequate and sufficient notice of the 9019 Recommendation Motion was provided, and no other or further notice need be given. 

 

	 	•	 	The Settlement Agreement settles, compromises, resolves and closes the Adversary Proceeding and settles, compromises, resolves, and extinguishes the Trust Derivative Claims, any claims that were asserted or that could
have been asserted in the Second Amended Adversary Complaint, and the claims asserted in the Complaint-in-Intervention and the claims that could have been asserted in the Complaint-in-Intervention relating to the subject matter of the Adversary
Proceeding, together and on a global basis to the extent provided in the Settlement Agreement. 

  
 6 

	 	•	 	Pursuant to the Settlement Agreement, within two Business Days after the Effective Date, Anadarko shall cause to be paid to the Litigation Trust
[$            ] plus Interest from the Lodging Date as set forth in Sections 3.1 and 3.3 of the Settlement Agreement by wire transfer of immediately available funds. The Litigation Trust
shall cause the Settlement Proceeds to be allocated and distributed to the Litigation Trust Beneficiaries consistent with the Litigation Trust Agreement. 

  

	 	•	 	The Litigation Trust succeeded to, as of and after the Plan Effective Date, any and all claims against the Anadarko Released Parties3 related to the claims, issues
and subject matter of the Adversary Proceeding which were held, owned and/or controlled by one or more Debtors before the Plan Effective Date. Since the Plan Effective Date, the Litigation Trust has not sold, assigned, transferred, encumbered,
hypothecated, abandoned, conveyed or otherwise disposed of any claims received by the Litigation Trust from Debtors pursuant to the Plan. 

  

	 	•	 	The Settlement Agreement is fair, reasonable and consistent with environmental law. 

  

	 	•	 	The Settlement Agreement falls well above the lowest point in the range of reasonableness, is fair, reasonable and equitable and is in the best interests of the Parties and the Beneficiaries, and therefore meets the
standards for approval under Bankruptcy Rule 9019. 

  

 

	3 	As set forth in Section 1.9 of the Settlement Agreement, “Anadarko Released Parties” shall mean Anadarko Petroleum Corporation, Kerr-McGee Corporation, Anadarko US Offshore Corporation
(f/k/a Kerr-McGee Oil & Gas Corporation), Kerr-McGee Worldwide Corporation, KM Investment Corporation, Kerr-McGee Shared Services Company LLC, Kerr-McGee Credit LLC, and Kerr-McGee Stored Power Company LLC, each of their Affiliates, and
each of their respective predecessors, successors, and assigns, all of their past, present, and future officers, directors, employees, managers, members, agents, attorneys and other representatives. 

  
 7 

	 	•	 	 The following permanent injunction should be issued by the District Court: “Pursuant to 28 U.S.C. §§ 1367 & 1651, §
105(a) of the Bankruptcy Code and Bankruptcy Rules 7001 and 7065, (i) any Debtor(s), (ii) any creditor of any Debtor who filed or could have filed a claim in the Chapter 11 Cases, (iii) any other Person whose claim (A) in any way
arises from or is related to the Adversary Proceeding, (B) is a Trust Derivative Claim, or (C) is duplicative of a Trust Derivative Claim, and (iv) any Person acting or purporting to act as an attorney for any of the preceding is
hereby permanently enjoined from asserting against any Anadarko Released Party (I) any Trust Derivative Claims or (II) any claims that are duplicative of Trust Derivative Claims, whether or not held or controlled by the Litigation Trust, or
whether or not the Litigation Trust could have asserted such claims against any Anadarko Released Party. The injunction herein shall not apply to or bar the following: (i) any criminal liability; (ii) any liability arising under Title 26
of the United States Code (Internal Revenue Code) or state tax laws; (iii) any liability arising under federal or state securities laws; (iv) any action to enforce a covenant not to sue, release, or agreement not to seek reimbursement
contained in the Settlement Agreement; (v) any liability that an Anadarko Released Party might have that does not arise from or through a liability of a Debtor; (vi) any liability of an Anadarko Released Party due to its status or acts or
omissions since November 28, 2005 as a/an (A) owner, (B) operator, (C) discharger, (D) lessee, (E) permittee, (F) licensee, (G) person 

  
 8 

	 	 
in charge, (H) holder of a right of use and easement, (I) arranger for disposal or treatment, (J) transporter, or (K) person who generates, handles, transports, treats, stores
or disposes of solid or hazardous waste; and (vii) any liability relating to the E&P Business or the stored power or battery business (including, but not limited to, as owned or operated by U.S. Avestor LLC and Kerr-McGee Stored Power
Company LLC4), and (viii) any liability that any Anadarko Released Party retained, received or assumed pursuant to the Assignment Agreement or Assignment, Assumption, and Indemnity Agreement.
For the avoidance of doubt, to the extent that a liability of an Anadarko Released Party excluded from the injunction herein by the preceding sentence would be a liability for which such Anadarko Released Party would be jointly and severally liable
with others, including but not limited to one or more Debtors or Reorganized Debtors, under applicable law, nothing in this injunction is intended to alter any such applicable principles of joint and several liability where otherwise provided by
law. The injunction herein does not apply to the Litigation Trust and the United States, which are providing releases and covenants not to sue in the Settlement Agreement.” 

CONCLUSIONS OF LAW 

1. This Court has subject matter jurisdiction to consider the Report and Recommendation and the relief recommended therein, including granting
the permanent injunction sought, in accordance with 28 U.S.C. §§ 157, 1334, 1367 and 1651 and the Amended Standing Order of Reference, 12 Misc. 00032 (S.D.N.Y. Jan. 31, 2012). 

 
  

	4 	Provided, however, that as it relates to Kerr-McGee Stored Power Company LLC, subpart (vii) is applicable only to the extent that such liability, if any, relates to or arises from the stored power or battery
business. 

  
 9 

 2. Venue of this case in this district is proper pursuant to 28 U.S.C. § 1409. 

3. Proper, timely, adequate and sufficient notice of the deadline for objections to the Report and Recommendation and the hearing thereon has
been given in accordance with Bankruptcy Rules 2002 and 9019. The foregoing notice constitutes good, appropriate and adequate and sufficient notice. 

4. [Discuss any objections received.] 

5. The Court has considered the probability of success in the Adversary Proceeding, including likely appeals, the complexity of the
litigation, and the attendant expense, inconvenience, and delay, and the paramount interests of the direct and indirect beneficiaries of the Litigation Trust, including the United States. In addition, the Court considered and credits the opinion of
the Litigation Trustee and Anadarko, and their respective counsel, in determining whether a settlement is fair and equitable. 
 6. The
Court concludes that the Settlement Agreement falls well above the lowest point in the range of reasonableness, is fair, reasonable and equitable and is in the best interests of the Parties and the Beneficiaries, and therefore meets the standards
for approval under Bankruptcy Rule 9019. 
 7. The Court concludes the Settlement Agreement is fair, reasonable and consistent with
environmental law. 
 8. The Settlement Agreement will confer a significant benefit on the Parties and the Beneficiaries and is in the
public interest. 

  
 10 

 9. An injunction pursuant to § 105(a) of the Bankruptcy Code, Bankruptcy Rules 7001 and
7065, and 28 U.S.C. §§ 1367 & 1651 is warranted and necessary as a matter of law. Issuance of the permanent injunction set forth below is necessary and appropriate to carry out the provisions of the Bankruptcy Code, to prevent any
entity other than the Litigation Trust from exercising control or possession over property of the estate which has been transferred to the Litigation Trust, and to avoid relitigation or litigation of claims that were or could have been asserted by
the Litigation Trustee on behalf of all creditors. 
 10. The injunction set forth herein is narrowly tailored and is necessary to
effectuate the settlement embodied by the Settlement Agreement.5 
 For all of the
foregoing reasons, it is hereby 
 ORDERED, that the Report and Recommendation is approved in its entirety and all Objections are overruled
in their entirety; and it is 
 ORDERED, that the Settlement Agreement is hereby approved in its entirety, and the parties to the Settlement
Agreement are authorized and directed to take such action as is necessary to effectuate the terms of the Settlement Agreement; and it is further 

ORDERED, that pursuant to pursuant to 28 U.S.C. §§ 1367 & 1651, § 105(a) of the Bankruptcy Code and Bankruptcy Rules
7001 and 7065, (i) any Debtor(s), (ii) any creditor of any Debtor who filed or could have filed a claim in the Chapter 11 Cases, (iii) any other Person whose claim (A) in any way arises from or is related to the Adversary
Proceeding, (B) is a Trust Derivative Claim, or (C) is duplicative of a Trust Derivative Claim, and (iv) any Person acting or purporting to act as an attorney for any of the preceding is hereby permanently enjoined from 

 

	5 	To the extent that Federal Rule of Bankruptcy Procedure 7065 applies, the injunction provided for in this Order satisfies subsection (d) thereof by setting forth the reasons for its issuance, the specific terms
thereof, and describes in reasonable detail the act or acts restrained or required. 

  
 11 

 
asserting against any Anadarko Released Party (I) any Trust Derivative Claims or (II) any claims that are duplicative of Trust Derivative Claims, whether or not held or controlled by the
Litigation Trust, or whether or not the Litigation Trust could have asserted such claims against any Anadarko Released Party. The injunction herein shall not apply to or bar the following: (i) any criminal liability; (ii) any liability
arising under Title 26 of the United States Code (Internal Revenue Code) or state tax laws; (iii) any liability arising under federal or state securities laws; (iv) any action to enforce a covenant not to sue, release, or agreement not to
seek reimbursement contained in the Settlement Agreement; (v) any liability that an Anadarko Released Party might have that does not arise from or through a liability of a Debtor; (vi) any liability of an Anadarko Released Party due to its
status or acts or omissions since November 28, 2005 as a/an (A) owner, (B) operator, (C) discharger, (D) lessee, (E) permittee, (F) licensee, (G) person in charge, (H) holder of a right of use and
easement, (I) arranger for disposal or treatment, (J) transporter, or (K) person who generates, handles, transports, treats, stores or disposes of solid or hazardous waste; and (vii) any liability relating to the E&P Business
or the stored power or battery business (including, but not limited to, as owned or operated by U.S. Avestor LLC and Kerr-McGee Stored Power Company LLC6), and (viii) any liability that any
Anadarko Released Party retained, received or assumed pursuant to the Assignment Agreement or Assignment, Assumption, and Indemnity Agreement. For the avoidance of doubt, to the extent that a liability of an Anadarko Released Party excluded from the
injunction herein by the preceding sentence would be a liability for which such Anadarko Released Party would be jointly and severally liable with others, including but not limited to one or more Debtors or Reorganized Debtors, under applicable law,
nothing in this injunction is intended to alter any such applicable principles of joint and several liability where otherwise provided by law. The injunction herein does not apply to the Litigation Trust and the United States, which are providing
releases and covenants not to sue in the Settlement Agreement; and it is further 
  

	6 	Provided, however, that as it relates to Kerr-McGee Stored Power Company LLC, subpart (vii) is applicable only to the extent that such liability, if any, relates to or arises from the stored power or battery
business. 

  
 12 

 ORDERED, that this Court and the Bankruptcy Court shall retain jurisdiction over any and all
disputes arising under or otherwise relating to this Order. 
 Dated: New York, New York 

[            ], 2014 

 

	
	  

	HONORABLE [            ]
	UNITED STATES DISTRICT JUDGE

  
 13 

 EXHIBIT C 

LITIGATION TRUST RESOLUTION 

[Attached] 

 EXHIBIT C 

CERTIFICATION OF THE LITIGATION TRUSTEE 

I, John C. Hueston, hereby certify that I am the duly appointed and acting Trustee of the Anadarko Litigation Trust (the
“Litigation Trust”). 
 I further hereby certify that on the
2nd day of April 2014, during a meeting of the Trust Advisory Board pursuant to Section 4(c)(i)(I) of the Litigation Trust Agreement, a majority of the five members of the Trust Advisory
Board (exclusive of the At-Large Member as provided in the Litigation Trust Agreement) voted to approve an agreement to settle and compromise the Adversary Proceeding, including the Trust Derivative Claims (as such terms are defined in the
Settlement Agreement), with Anadarko Petroleum Corporation, Kerr-McGee Corporation, Anadarko US Offshore Corporation (f/k/a Kerr-McGee Oil & Gas Corporation), Kerr-McGee Worldwide Corporation, KM Investment Corporation, Kerr-McGee Shared
Services Company LLC, Kerr-McGee Credit LLC, and Kerr-McGee Stored Power Company LLC (collectively, “Anadarko”). 

I further hereby certify that I am authorized to execute the Settlement Agreement on behalf of the Litigation Trust. 

 

			
	Dated: April 2nd, 2014	 	  
 /s/ John C. Hueston

John C. Hueston, as Trustee of the

		 	Anadarko Litigation Trust
		 	

 EXHIBIT D 

ANADARKO RESOLUTIONS 

[Attached] 

 ANADARKO PETROLEUM CORPORATION 

CERTIFICATE OF RESOLUTIONS 

I, Amanda M. McMillian, do hereby certify that I am a duly elected, qualified and acting Corporate Secretary of ANADARKO PETROLEUM
CORPORATION, a Delaware corporation (the “Company”). 
 I do hereby further certify that the following resolutions were duly
adopted by the Board of Directors (the “Board”) of the Company at a meeting duly called and held on the 2nd day of April 2014, and that said resolutions have not been revised, rescinded or revoked and remain in full force and effect as of
the date of this certificate: 
 APPROVAL OF SETTLEMENT AGREEMENT RELATED TO TRONOX ADVERSARY PROCEEDING 

WHEREAS, the Board believes that it is in the best interest of the Company and its stockholders to resolve current and
potential litigation and other claims (collectively, the “Claims”) made in the Tronox Adversary Proceeding currently pending in the U.S. Bankruptcy Court for the Southern District of New York; and 

WHEREAS, the Company has negotiated a resolution of the Claims with (1) the Anadarko Litigation Trust (the
“Litigation Trust”), by and through its authorized representative and trustee, John C. Hueston (the “Litigation Trustee”), not individually but solely in his representative capacity as Litigation
Trustee, and (2) the U.S. Government in its capacity as plaintiff-intervenor and acting for and on behalf of the U.S. Environmental Protection Agency, the U.S. Department of Agriculture (acting through the U.S. Forest Service), the U.S.
Department of the Interior (acting through the Fish and Wildlife Service and the Bureau of Land Management), the U.S. Department of Commerce (acting through the National Oceanic and Atmospheric Administration), the U.S. Department of Defense
(including the U.S. Department of the Army, U.S. Army Corps of Engineers, U.S. Department of the Navy, and U.S. Department of the Air Force), and the Nuclear Regulatory Commission (collectively, the “U.S.,” and together with the Litigation
Trust, the “Plaintiffs”), that would result in resolving their disputes related to the Tronox Adversary Proceeding, including Trust Derivative Claims (as such term is defined in the Agreement, which is defined below); and 

WHEREAS, the Board has reviewed and discussed with management the proposed Settlement Agreement by and among (1) the
Litigation Trust, (2) the U.S., and (3) Anadarko Petroleum Corporation, Kerr-McGee Corporation, Anadarko US Offshore Corporation (f/k/a Kerr-McGee Oil & Gas Corporation), Kerr-McGee Worldwide Corporation, KM Investment
Corporation, Kerr-McGee Shared Services Company LLC, Kerr-McGee Credit LLC1, and Kerr-McGee Stored Power Company LLC (the “Agreement”), a copy of which is attached hereto as Exhibit
A; and 
  

	1 	Kerr-McGee Credit LLC was dissolved in 2007. At the time of its dissolution, Kerr-McGee Worldwide Corporation was its sole member. They are referenced in the Settlement Agreement solely because they were named as a
defendant in the Adversary Proceeding. 

 WHEREAS, the Agreement contemplates, among other things, the payment by the
Company of Five Billion One Hundred Fifty Million Dollars ($5,150,000,000.00) in cash to Plaintiffs, plus Interest thereon from the Lodging Date (as such terms are defined in the Settlement Agreement) (collectively, the “Settlement
Payment”); and 
 WHEREAS, for purposes of these preambles and resolutions, the term “Authorized Persons”
shall mean, at any given time, each or any one or more of the Company’s duly elected (i) Chairman of the Board, (ii) President, (iii) Chief Executive Officer, (iv) any Executive Vice President, (v) any Senior Vice
President, and (vi) any Vice President. 
 NOW, THEREFORE, BE IT RESOLVED, that the Agreement, in the form substantially
as presented to and reviewed by this Board be, and hereby is, approved. 
 RESOLVED, that the Authorized Persons, acting
individually or together, be, and each of them hereby is, authorized and empowered, in the name and on behalf of the Company (and its subsidiaries, as necessary or appropriate) to execute the Agreement, with such modifications, amendments or
supplements as may be necessary, advisable or appropriate in the discretion of the Authorized Persons, the execution and delivery thereof by the Authorized Persons to conclusively evidence approval thereof by such Authorized Persons and the Board.

 RESOLVED, that the Authorized Persons acting individually or together be, and each of them hereby is, authorized and
empowered, in the name and on behalf of the Company (and its subsidiaries, as necessary or appropriate) to effectuate the payment of the Settlement Payment, with such funds coming from (1) the assets of the Company or its subsidiaries, and/or
(2) from funds drawn from the Company’s existing secured revolving credit facility. 
 RESOLVED, that the
Authorized Persons acting individually or together be, and each of them hereby is, authorized and empowered, in the name and on behalf of the Company, to (a) negotiate, execute and deliver any and all documents, instruments, financing
statements, agreements, amendments, authorizations, powers, certificates or similar items necessary or desirable in connection with the foregoing resolutions with 

 
such terms and provisions as the Authorized Persons shall determine to be necessary, advisable or appropriate, the execution and delivery thereof by the Authorized Persons to conclusively
evidence approval thereof by such Authorized Persons and the Board, and (b) perform the obligations and carry out the duties of the Company (and its subsidiaries, if any) thereunder. 

RESOLVED, that the Company and the Authorized Persons be, and each of them hereby is, authorized and empowered to execute,
deliver and carry out any present, continuing or future obligations under the Agreement referenced that may be required thereby, and to effect any necessary filing(s) with any and all appropriate regulatory authorities as may be required or as the
Authorized Persons may deem necessary, advisable or appropriate in order to carry out the purposes and intent of the foregoing resolutions. 

RESOLVED, that the Secretary or any Assistant Secretary of the Company be, and each of them hereby is, authorized and empowered
to certify and furnish copies of these resolutions or any other resolutions deemed to have been adopted pursuant hereto and statements as to the incumbency of the Company’s officers (under corporate seal if necessary) as may be requested, and
effect any necessary or desirable filings and/or disclosures (including a press release) with any and all appropriate governmental and/or regulatory authorities. 

RESOLVED, that all actions heretofore taken, or caused to be taken, by any officer, authorized employee and/or agent of the
Company in connection with the documents, transactions and actions contemplated by the foregoing resolutions be, and the same hereby are, approved, ratified and confirmed in all respects. 

[Signature page follows] 

 IN WITNESS WHEREOF, I have hereunto set my hand this 2nd day of April, 2014. 
  

	
	 /s/ Amanda M. McMillian

	Amanda M. McMillian
	Corporate Secretary

 KERR-MCGEE CORPORATION 

ANADARKO US OFFSHORE CORPORATION 

KERR-MCGEE WORLDWIDE CORPORATION 

KM INVESTMENT CORPORATION 

CERTIFICATE OF RESOLUTIONS 

I, Amanda M. McMillian, do hereby certify that I am the duly elected, qualified and acting Corporate Secretary of each of (a) Kerr-McGee
Corporation, a Delaware corporation, (b) Anadarko US Offshore Corporation, a Delaware corporation, (c) Kerr-McGee Worldwide Corporation, a Delaware corporation, and (d) KM Investment Corporation, a Nevada corporation (collectively,
the “Companies”). 
 I do hereby further certify that the following resolutions were duly adopted by the respective Boards of
Directors (the “Board”) of each of the Companies via written consent, and that said resolutions have not been revised, rescinded or revoked and remain in full force and effect as of the date of this certificate: 

APPROVAL OF SETTLEMENT AGREEMENT RELATED TO TRONOX ADVERSARY PROCEEDING 

WHEREAS, the Board believes that it is in the best interest of the Company and its stockholders to resolve current and
potential litigation and other claims (collectively, the “Claims”) made in the Tronox Adversary Proceeding currently pending in the U.S. Bankruptcy Court for the Southern District of New York; and 

WHEREAS, the Company has negotiated a resolution of the Claims with (1) the Anadarko Litigation Trust (the
“Litigation Trust”), by and through its authorized representative and trustee, John C. Hueston (the “Litigation Trustee”), not individually but solely in his representative capacity as Litigation
Trustee, and (2) the U.S. Government in its capacity as plaintiff-intervenor and acting for and on behalf of the U.S. Environmental Protection Agency, the U.S. Department of Agriculture (acting through the U.S. Forest Service), the U.S.
Department of the Interior (acting through the Fish and Wildlife Service and the Bureau of Land Management), the U.S. Department of Commerce (acting through the National Oceanic and Atmospheric Administration), the U.S. Department of Defense
(including the U.S. Department of the Army, U.S. Army Corps of Engineers, U.S. Department of the Navy, and U.S. Department of the Air Force), and the Nuclear Regulatory Commission (collectively, the “U.S.,” and together with the Litigation
Trust, the “Plaintiffs”), that would result in resolving their disputes related to the Tronox Adversary Proceeding, including Trust Derivative Claims (as such term is defined in the Agreement, which is defined below); and 

 WHEREAS, the Board has reviewed and discussed with management the proposed
Settlement Agreement by and among (1) the Litigation Trust, (2) the U.S., and (3) Anadarko Petroleum Corporation, Kerr-McGee Corporation, Anadarko US Offshore Corporation (f/k/a Kerr-McGee Oil & Gas Corporation), Kerr-McGee
Worldwide Corporation, KM Investment Corporation, Kerr-McGee Shared Services Company LLC, Kerr-McGee Credit LLC1, and Kerr-McGee Stored Power Company LLC (the “Agreement”), a copy of
which is attached hereto as Exhibit A; and 
 WHEREAS, the Agreement contemplates, among other things, the payment by
the Company of Five Billion One Hundred Fifty Million Dollars ($5,150,000,000.00) in cash to Plaintiffs, plus Interest thereon from the Lodging Date (as such terms are defined in the Settlement Agreement) (collectively, the “Settlement
Payment”); and 
 WHEREAS, for purposes of these preambles and resolutions, the term “Authorized Persons”
shall mean, at any given time, each or any one or more of the Company’s duly elected (i) Chairman of the Board, (ii) President, (iii) Chief Executive Officer, (iv) any Executive Vice President, (v) any Senior Vice
President, and (vi) any Vice President. 
 NOW, THEREFORE, BE IT RESOLVED, that the Agreement, in the form substantially
as presented to and reviewed by this Board be, and hereby is, approved. 
 RESOLVED, that the Authorized Persons, acting
individually or together, be, and each of them hereby is, authorized and empowered, in the name and on behalf of the Company (and its subsidiaries, as necessary or appropriate) to execute the Agreement, with such modifications, amendments or
supplements as may be necessary, advisable or appropriate in the discretion of the Authorized Persons, the execution and delivery thereof by the Authorized Persons to conclusively evidence approval thereof by such Authorized Persons and the Board.

 RESOLVED, that the Authorized Persons acting individually or together be, and each of them hereby is, authorized and
empowered, in the name and on behalf of the Company (and its subsidiaries, as necessary or appropriate) to effectuate the payment of the Settlement Payment, with such funds coming from (1) the assets of the Company or its subsidiaries, and/or
(2) from funds drawn from the Company’s existing secured revolving credit facility. 
  

	1 	Kerr-McGee Credit LLC was dissolved in 2007. At the time of its dissolution, Kerr-McGee Worldwide Corporation was its sole member. They are referenced in the Settlement Agreement solely because they were named as a
defendant in the Adversary Proceeding. 

 RESOLVED, that the Authorized Persons acting individually or together be, and
each of them hereby is, authorized and empowered, in the name and on behalf of the Company, to (a) negotiate, execute and deliver any and all documents, instruments, financing statements, agreements, amendments, authorizations, powers,
certificates or similar items necessary or desirable in connection with the foregoing resolutions with such terms and provisions as the Authorized Persons shall determine to be necessary, advisable or appropriate, the execution and delivery thereof
by the Authorized Persons to conclusively evidence approval thereof by such Authorized Persons and the Board, and (b) perform the obligations and carry out the duties of the Company (and its subsidiaries, if any) thereunder. 

RESOLVED, that the Company and the Authorized Persons be, and each of them hereby is, authorized and empowered to execute,
deliver and carry out any present, continuing or future obligations under the Agreement referenced that may be required thereby, and to effect any necessary filing(s) with any and all appropriate regulatory authorities as may be required or as the
Authorized Persons may deem necessary, advisable or appropriate in order to carry out the purposes and intent of the foregoing resolutions. 

RESOLVED, that the Secretary or any Assistant Secretary of the Company be, and each of them hereby is, authorized and empowered
to certify and furnish copies of these resolutions or any other resolutions deemed to have been adopted pursuant hereto and statements as to the incumbency of the Company’s officers (under corporate seal if necessary) as may be requested, and
effect any necessary or desirable filings and/or disclosures (including a press release) with any and all appropriate governmental and/or regulatory authorities. 

RESOLVED, that all actions heretofore taken, or caused to be taken, by any officer, authorized employee and/or agent of the
Company in connection with the documents, transactions and actions contemplated by the foregoing resolutions be, and the same hereby are, approved, ratified and confirmed in all respects. 

[Signature page follows] 

 IN WITNESS WHEREOF, I have hereunto set my hand this 2nd day of April, 2014. 
  

	
	KERR-MCGEE CORPORATION
	
	/s/ Amanda M. McMillian
	Amanda M. McMillian
	Corporate Secretary

  

	
	ANADARKO US OFFSHORE CORPORATION
	
	/s/ Amanda M. McMillian
	Amanda M. McMillian
	Corporate Secretary

  

	
	KERR-MCGEE WORLDWIDE CORPORATION
	
	/s/ Amanda M. McMillian
	Amanda M. McMillian
	Corporate Secretary

  

	
	KM INVESTMENT CORPORATION
	
	/s/ Amanda M. McMillian
	Amanda M. McMillian
	Corporate Secretary

 KERR-MCGEE SHARED SERVICES COMPANY LLC 

KERR-MCGEE STORED POWER COMPANY LLC 

CERTIFICATE OF RESOLUTIONS 

I, Amanda M. McMillian, do hereby certify that I am the duly elected, qualified and acting Corporate Secretary of each of (a) Kerr-McGee
Shared Services Company LLC, a Delaware limited liability company, and (b) Kerr-McGee Stored Power Company LLC, a Delaware limited liability company (collectively, the “Companies”). 

I do hereby further certify that the following resolutions were duly adopted by the respective Sole Member (the “Member”) of each of
the Companies via written consent, and that said resolutions have not been revised, rescinded or revoked and remain in full force and effect as of the date of this certificate: 

APPROVAL OF SETTLEMENT AGREEMENT RELATED TO TRONOX ADVERSARY PROCEEDING 

WHEREAS, the Member believes that it is in the best interest of the Company to resolve current and potential litigation and
other claims (collectively, the “Claims”) made in the Tronox Adversary Proceeding currently pending in the U.S. Bankruptcy Court for the Southern District of New York; and 

WHEREAS, the Company has negotiated a resolution of the Claims with (1) the Anadarko Litigation Trust (the
“Litigation Trust”), by and through its authorized representative and trustee, John C. Hueston (the “Litigation Trustee”), not individually but solely in his representative capacity as Litigation
Trustee, and (2) the U.S. Government in its capacity as plaintiff-intervenor and acting for and on behalf of the U.S. Environmental Protection Agency, the U.S. Department of Agriculture (acting through the U.S. Forest Service), the U.S.
Department of the Interior (acting through the Fish and Wildlife Service and the Bureau of Land Management), the U.S. Department of Commerce (acting through the National Oceanic and Atmospheric Administration), the U.S. Department of Defense
(including the U.S. Department of the Army, U.S. Army Corps of Engineers, U.S. Department of the Navy, and U.S. Department of the Air Force), and the Nuclear Regulatory Commission (collectively, the “U.S.,” and together with the Litigation
Trust, the “Plaintiffs”), that would result in resolving their disputes related to the Tronox Adversary Proceeding, including Trust Derivative Claims (as such term is defined in the Agreement, which is defined below); and 

WHEREAS, the Member has reviewed and discussed with management the proposed Settlement Agreement by and among (1) the
Litigation Trust, (2) the U.S., and (3) Anadarko Petroleum Corporation, Kerr-McGee Corporation, Anadarko US Offshore Corporation (f/k/a Kerr-McGee Oil & Gas Corporation), Kerr-McGee Worldwide Corporation,

 
KM Investment Corporation, Kerr-McGee Shared Services Company LLC, Kerr-McGee Credit LLC1, and Kerr-McGee Stored Power Company LLC (the
“Agreement”), a copy of which is attached hereto as Exhibit A; and 
 WHEREAS, the Agreement contemplates,
among other things, the payment by the Company of Company of Five Billion One Hundred Fifty Million Dollars ($5,150,000,000.00) in cash to Plaintiffs, plus Interest thereon from the Lodging Date (as such terms are defined in the Settlement
Agreement) (collectively, the “Settlement Payment”); and 
 WHEREAS, for purposes of these preambles and
resolutions, the term “Authorized Persons” shall mean, at any given time, each or any one or more of the Company’s duly elected (i) President, (ii) any Executive Vice President, (iii) any Senior Vice President, and
(iv) any Vice President. 
 NOW, THEREFORE, BE IT RESOLVED, that the Agreement, in the form substantially as presented
to and reviewed by the Member be, and hereby is, approved. 
 RESOLVED, that the Authorized Persons, acting individually or
together, be, and each of them hereby is, authorized and empowered, in the name and on behalf of the Company (and its subsidiaries, as necessary or appropriate) to execute the Agreement, with such modifications, amendments or supplements as may be
necessary, advisable or appropriate in the discretion of the Authorized Persons, the execution and delivery thereof by the Authorized Persons to conclusively evidence approval thereof by such Authorized Persons and the Member. 

RESOLVED, that the Authorized Persons acting individually or together be, and each of them hereby is, authorized and empowered,
in the name and on behalf of the Company (and its subsidiaries, as necessary or appropriate) to effectuate the payment of the Settlement Payment, with such funds coming from (1) the assets of the Company or its subsidiaries, and/or
(2) from funds drawn from the Company’s existing secured revolving credit facility. 
 RESOLVED, that the
Authorized Persons acting individually or together be, and each of them hereby is, authorized and empowered, in the name and on behalf of the Company, to (a) negotiate, execute and deliver any and all documents, instruments, financing
statements, agreements, amendments, authorizations, powers, certificates or similar items necessary or desirable in connection with the foregoing resolutions with 

 

	1 	Kerr-McGee Credit LLC was dissolved in 2007. At the time of its dissolution, Kerr-McGee Worldwide Corporation was its sole member. They are referenced in the Settlement Agreement solely because they were named as a
defendant in the Adversary Proceeding. 

 
such terms and provisions as the Authorized Persons shall determine to be necessary, advisable or appropriate, the execution and delivery thereof by the Authorized Persons to conclusively
evidence approval thereof by such Authorized Persons and the Member, and (b) perform the obligations and carry out the duties of the Company (and its subsidiaries, if any) thereunder. 

RESOLVED, that the Company and the Authorized Persons be, and each of them hereby is, authorized and empowered to execute,
deliver and carry out any present, continuing or future obligations under the Agreement referenced that may be required thereby, and to effect any necessary filing(s) with any and all appropriate regulatory authorities as may be required or as the
Authorized Persons may deem necessary, advisable or appropriate in order to carry out the purposes and intent of the foregoing resolutions. 

RESOLVED, that the Secretary or any Assistant Secretary of the Company be, and each of them hereby is, authorized and empowered
to certify and furnish copies of these resolutions or any other resolutions deemed to have been adopted pursuant hereto and statements as to the incumbency of the Company’s officers (under corporate seal if necessary) as may be requested, and
effect any necessary or desirable filings and/or disclosures (including a press release) with any and all appropriate governmental and/or regulatory authorities. 

RESOLVED, that all actions heretofore taken, or caused to be taken, by any officer, authorized employee and/or agent of the
Company in connection with the documents, transactions and actions contemplated by the foregoing resolutions be, and the same hereby are, approved, ratified and confirmed in all respects. 

[Signature page follows] 

 IN WITNESS WHEREOF, I have hereunto set my hand this 2nd day of April, 2014. 

 

			
	KERR-MCGEE SHARED
	SERVICES COMPANY LLC
	
	 /s/ Amanda M. McMillian

	Amanda M. McMillian	 	
	Corporate Secretary	 	
	
	 KERR-MCGEE STORED POWER

COMPANY LLC

	
	 /s/ Amanda M. McMillian

	Amanda M. McMillian
	Corporate Secretary

 SCHEDULE 1 

ANADARKO AFFILIATES AND PREDECESSORS 
  

					
	 Entity
	  	 Jurisdiction
	  	 Parent

	HS Partners, Inc.	  	California	  	Kerr-McGee Rocky Mountain Corporation
	Kerr-McGee Energy Services Corporation	  	Delaware	  	Kerr-McGee Rocky Mountain Corporation
	Kerr-McGee Foundation Corporation	  	Oklahoma	  	Kerr-McGee Shared Services Company LLC
	Kerr-McGee Gathering LLC	  	Colorado	  	Kerr-McGee Rocky Mountain Corporation
	Kerr-McGee L.P. Corporation	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Kerr-McGee Leasing Corporation	  	Delaware	  	Kerr-McGee Credit LLC
	Kerr-McGee Natural Gas, Inc.	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Kerr-McGee Oil & Gas Onshore LLC	  	Delaware	  	Kerr-McGee L.P. Corporation
	Kerr-McGee Oil & Gas Onshore LP	  	Delaware	  	Kerr-McGee Oil & Gas Onshore LLC
	Kerr-McGee Oil & Gas (Shelf) LLC	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Kerr-McGee Onshore Holding LLC	  	Delaware	  	WHL, Inc.
	Kerr-McGee Onshore LLC	  	Delaware	  	WHL, Inc.
	Kerr-McGee Rocky Mountain Corporation	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Kerr-McGee Rocky Mountain LLC	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Kerr-McGee Stored Power Corporation	  	Nevada	  	Kerr-McGee Stored Power Company LLC
	Kerr-McGee Worldwide Corporation	  	Delaware	  	Kerr-McGee Corporation
	KM Transportation Leasing Corporation	  	Delaware	  	Kerr-McGee Leasing Corporation
	KM-Insurance Company	  	Oklahoma	  	Kerr-McGee Shared Services Company LLC
	KM Land, LLC	  	Oklahoma	  	Kerr-McGee Shared Services Company LLC
	Oryx Crude Trading & Transportation Limited Partnership	  	Delaware	  	 Kerr-McGee L.P. Corporation
 Kerr-McGee Oil
& Gas Onshore LLC

	Oryx Crude Trading & Transportation, Inc.	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Oryx Development -II, L.P.	  	Delaware	  	Kerr-McGee Oil & Gas Onshore LP
	Oryx Development Limited Partnership	  	Delaware	  	Kerr-McGee Oil & Gas Onshore LP
	Oryx Energy Payroll Company	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Oryx Gas Marketing Company	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Oryx Gas Marketing Limited Partnership	  	Delaware	  	 Kerr-McGee L.P. Corporation
 Kerr-McGee Oil
& Gas Onshore LLC

	Oryx Pipeline Company	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Oryx Pipeline Limited Partnership	  	Delaware	  	 Kerr-McGee L.P. Corporation
 Kerr-McGee Oil
& Gas Onshore LLC

	Oryx Services Company	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	P&P Land Co.	  	Oklahoma	  	Kerr-McGee Chemical Worldwide, LLC

  
 5 

					
	Resource Gathering Systems, Inc.	  	California	  	Kerr-McGee Rocky Mountain Corporation
	Sendero Gas Pipeline, Inc.	  	Texas	  	Kerr-McGee Oil and Gas Onshore LP
	Southtech Exploration, L.L.C.	  	Delaware	  	Kerr-McGee Rocky Mountain Corporation (50%)
	Sun Offshore Gathering Company	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	Sun Offshore Gathering Limited Partnership	  	Delaware	  	 Kerr-McGee L.P. Corporation
 Kerr-McGee Oil
& Gas Onshore LLC

	Sun Pennsylvania Limited Partnership	  	Delaware	  	 Kerr-McGee L.P. Corporation
 Kerr-McGee Oil
& Gas Corporation

	US Avestor, LLC	  	Delaware	  	Kerr-McGee Stored Power Company LLC (50%)
	Walter & Westport International LLC	  	Colorado	  	Kerr-McGee Oil and Gas Onshore LP
	Westport Argentina LLC	  	Colorado	  	Kerr-McGee Oil and Gas Onshore LP
	Westport Canada LLC	  	Delaware	  	Kerr-McGee Oil and Gas Onshore LP
	Westport Field Services, L.L.C.	  	Delaware	  	Kerr-McGee (Nevada) LLC
	Westport Overriding Royalty LLC	  	Colorado	  	Kerr-McGee Oil and Gas Onshore LP
	White Shoal Pipeline Corporation	  	Delaware	  	 Kerr-McGee Oil & Gas Corporation
 Torch
Energy Marketing, Inc.
 Case-Pomeroy Oil Corporation

	Whitecap Pipeline Company, L.L.C.	  	Delaware	  	Kerr-McGee Oil & Gas Corporation
	WHL, Inc.	  	Delaware	  	Kerr-McGee Oil & Gas Corporation

  
 6 

 SCHEDULE 2-A 

U.S. COVERED SITES-DOD 

NON-NRD 
  

					
	 Colloquial Site Name
	  	 Full Site Name
	  	 Site Location

	Fireworks Site	  	National Fireworks Site, Hanover, MA	  	MA
	Henderson Site	  	Tronox LLC Henderson Facility	  	NV
	MMR Site	  	Massachusetts Military Reservation, Cape Cod, MA	  	MA

  
 7 

 SCHEDULE 2-B 

U.S. COVERED SITES- DOI and NOAA 

NRD 
  

					
	 COLLOQUIAL SITE NAME
	  	 FULL SITE NAME
	  	 SITE LOCATION

	Ambrosia Lake	  	 Rio Algom Mines and Quivira Mill Site, McKinley County, NM

Ambrosia Lake Facility, Grants, NM
	  	NM
	Beaumont	  	International Creosoting State Superfund Site, Beaumont, TX	  	TX
	Churchrock	  	Northeast Churchrock Quivira Mines (#1 and #1E), McKinley County, NM	  	NM
	Fireworks Site	  	National Fireworks Site, Hanover, MA	  	MA
	Hattiesburg	  	Former Gulf States Creosoting Site, Hattiesburg, MS	  	MS
	Jacksonville Ag Chem	  	Kerr-McGee Chemical LLC, Jacksonville, FL	  	FL
	Jericho	  	Stoller Chemical Site, Jericho, SC	  	SC
	Kress Creek	  	Kerr-McGee Kress Creek/West Branch DuPage River Site, DuPage County, IL	  	IL
	Manville	  	Federal Creosote Superfund Site, Manville, NJ	  	NJ
	Milwaukee	  	Moss-American Site, Milwaukee, WI	  	WI
	Navassa/Wilmington	  	Kerr-McGee Chem Corp Site, Navassa, NC	  	NC
	North Haven	  	 Schiavone Site, North Haven, CT
 Universal Drive
Site, North Haven, CT
	  	CT
	Rome	  	Success Drive Parcels/MGS Site, Rome, Oneida County, NY	  	NY
	Sandstone	  	Kettle River Company – Creosote Plant Site, Sandstone, Pine County, MN	  	MN
	Savannah	  	Kerr-McGee Pigments (Savannah) Inc., Savannah, GA	  	GA
	Searles Lake	  	 Searles Valley Minerals/Searles Lake, San Bernardino County, CA

Boiler Ash Site or Argus Boiler Ash Pile
 American Potash &
Chemical Corporation, Trona, CA
	  	CA
	Texarkana	  	 Tronox, Texarkana Facility and Associated Properties Located at 2513 Buchanan Road, Texarkana, TX

Kerr-McGee Chemical LLC, Forest Products Division, Texarkana, TX

Texarkana Wood Preserving Facility, Texarkana, TX
	  	TX

  
 8 

 SCHEDULE 2-B (CONT’D) 

U.S. COVERED SITES- DOI and NOAA 

NON-NRD 
  

					
	 SHORT SITE NAME
	  	 FULL SITE NAME
	  	 SITE LOCATION

	Bristol Mine	  	Bristol Mine, Pioche, NV	  	NV
			
	Caselton Mine	  	 Caselton Tailings Site, Lincoln County, NV

Kerr-McGee Caselton Site, Pioche, NV
	  	NV
	Spencer Mine	  	Spencer Mine, 13N 9W, McKinley County, NM	  	NM

  
 9Management Services Agreement

 Exhibit 10.1 

MANAGEMENT SERVICES AGREEMENT 

by and between 
 JERRY
ERWIN ASSOCIATES, INC. (d/b/a JEA SENIOR LIVING) 
 (Management Company) 

and 
 CHP LEGACY RANCH
TX TENANT CORP. 
 (Tenant) 

Legacy Ranch 
 4800
Briarwood Avenue 
 Midland, TX 79707 

March 28, 2013 

  
 - 1 - 

 MANAGEMENT SERVICES AGREEMENT 

THIS MANAGEMENT SERVICES AGREEMENT, is made as of the 28th day of March, 2014 (the “Effective Date”) by and between
CHP LEGACY RANCH TX TENANT CORP., a Delaware corporation (“Tenant”), and JERRY ERWIN ASSOCIATES, INC. (d/b/a JEA SENIOR LIVING) (hereinafter “Management Company”). 

WITNESSETH: 

WHEREAS, Landlord is the owner of that certain assisted living and Alzheimer’s Care facility known as “Legacy Ranch”
located at 4800 Briarwood Road, Midland, Texas 79707 (the “Facility”) and all of the furniture, furnishings, equipment and other personal property located at the Facility; and 

WHEREAS, Tenant and Landlord have entered into a lease agreement with respect to the Facility; and 

WHEREAS, Tenant wishes to engage Management Company, and Management Company wishes to provide certain services to Tenant during the
term of this Agreement, relating to the management of the Facility, on the terms and conditions set forth herein. 
 NOW, THEREFORE,
the parties hereto, intending to be legally bound, in consideration of the mutual provisions and covenants herein contained, agree as follows: 

ARTICLE 1. 
 1.1
Definitions. The following terms shall have the meanings set forth below when capitalized herein: 
 “Adjusted
NOI” means an amount equal to NOI less the FF&E Reserve Payment. 
 “Administrator” means such individual
employed by Management Company, at the expense of the Facility as an Operating Expense. The Administrator will be under the direct supervision of the Management Company, who is responsible for the daily management of the Facility. 

“Affiliate” means the following meaning: two entities are “Affiliates” if 

(a) one of the entities is a Subsidiary of the other entity; 

(b) both of the entities are Subsidiaries of the same entity; or 

(c) both of the entities are Controlled by the same Person. 

“Affiliated Agreements” means those certain Management Services Agreements by and between Manager and certain Affiliates of
Tenant dated of even date herewith and more particularly described on Schedule 1.1 attached hereto and by this reference made a part hereof. 

  
 1 

 “Agreement” means this Management Services Agreement, together with any
amendments hereto entered into by the parties from time to time. 
 “Budget” shall have the meaning set forth in
Section 2.5. 
 “Business Day” means any day other than a Saturday, Sunday or legal holiday in the State of
Texas. 
 “Capital Expenditures” means certain expenses for renovations, replacements, maintenance, alterations,
improvements or renewals to the Facility that are typically classified as capital expenditures in accordance with GAAP; provided however, the parties acknowledge and agree that unit turnover costs shall not be deemed to be Capital Expenditures. 

“Control” means: 

(a) the right to exercise, directly or indirectly, a majority of the votes which may be voted at a meeting of (i) the shareholders of the
corporation, in the case of a corporation, (ii) the shareholders of the general partner, in the case of a limited partnership, or (iii) the equity holders or other voting participants of a Person that is not a corporation or limited
partnership; or 
 (b) the right to elect or appoint, directly or indirectly, a majority of (i) the directors of the corporation, in
the case of a corporation, (ii) the directors of the general partner, in the case of a limited partnership, or (iii) a majority of the Persons who have the right to manage or supervise the management of the affairs and business of a Person
that is not a corporation or limited partnership, 
 (c) and “Controlled” has a corresponding meaning. 

“Effective Date” shall have the meaning set forth in the first paragraph of this Agreement. 

“Emergency and Evacuation Procedures” shall have the meaning set forth in Section 2.4. 

“Existing Manager Facilities” means Hudson Creek Alzheimer’s Special Care Center located at 2850 Coppercrest Drive in
Bryan, Texas and Cedar Ridge Alzheimer’s Special Care Center located at 2100 S. Lakeline Boulevard in Cedar Park, Texas. 

“Facility” shall have the meaning set forth in the recitals. 

“Facility Mortgage” means any mortgage or deed of trust secured by the Facility. 

“Facility Operational Materials” shall have the meaning set forth in Section 2.13. 

“Fiscal Year” means each calendar year during the Term. The period from the Effective Date through December 31, 2014
shall be the first Fiscal Year. 
 “Fixed Asset Supplies” means supply items necessary for the operation of the Facility.

 “FF&E Reserve” shall have the meaning set forth in Section 2.7. 

  
 2 

 “FF&E Reserve Payment” means the amount equal to $500 multiplied by the
total number of rental units on an annual basis (but prorated for any partial Fiscal Year during the Term), and increasing on each Increase Date by three percent (3%) over the FF&E Reserve Payment for the prior year, and as may be further
adjusted by Tenant and Management Company in connection with the required amounts set forth in the approved Budget pursuant to the terms of Section 2.5. 

“GAAP” means generally accepted accounting principles in the United States. 

“HIPAA” shall have the meaning set forth in Section 8.12. 

“Increase Date” means January 1st of each Fiscal Year, with the
first Increase Date being January 1, 2015. 
 “Inventories” means inventories as defined by GAAP and provisions in
storerooms, medical supplies, other merchandise intended for sale, mechanical supplies, stationery and other expenses, supplies and similar items. 

“Landlord” shall have the meaning set forth in the recitals. 

“Legal Requirements” means any (i) law, code, rule, ordinance or regulation applicable to Tenant, Management Company
and/or the Facility or the operation thereof; (ii) any order of any governmental authority having jurisdiction over Tenant, Management Company and/or the Facility or the operation thereof; and (iii) any law, code, rule, regulation,
bulletin, decision, ruling or opinion applicable to reimbursement by Medicare, Medicaid or any other governmental healthcare program for services or items rendered by the Facility. 

“Licenses” shall have the meaning set forth in Section 2.2. 

“Management Company” shall have the meaning set forth in the recitals. 

“Management Company Default” shall have the meaning set forth in Section 7.1. 

“Management Company Expenses” shall mean those expenses that, unless otherwise approved as a part of the Budget, or
otherwise approved by Tenant, shall be paid by Management Company without reimbursement by Tenant: 
 (i) any expenses for
Management Company’s corporate office physical plant, equipment or supplies; 
 (ii) any overhead expense of Management
Company incurred in its general offices or salaries of any non-Facility specific executive personnel of Management Company, but excluding Management Company personnel allocated to initiatives for the Facility such as additional marketing or special
capital projects as contained in the Budget or approved in writing by the Tenant; 
 (iii) salaries, wages, and expenses
allocable to any personnel for activities with regard to providing in-house accounting services; 

  
 3 

 (iv) any salaries, wages, and expenses for any corporate office personnel located
at the Facility; 
 (v) any computer time, equipment, payroll processing service or other expense used or incurred in
processing payroll as such expense relates to non-Facility specific Management Company personnel employed by the Management Company, the books and records of the Facility or in preparing any statements or reports (other than the annual audits, tax
returns and/or specialized reports required by outside agencies). Payroll processing charges relating to Management Company personnel who are employed at the Facility will be the responsibility of the Tenant. 

“Management Company Losses” shall have the meaning set forth in Section 8.1. 

“Management Fee” shall have the meaning set forth in Section 3.1. 

“Mortgagee” means the holder of any Facility Mortgage. 

“NOI” means Revenues less Operating Expenses. 

“Operating Account” shall have the meaning set forth in Section 2.7(a). 

“Operating Expenses” means any or all, as the context requires, of the following: (i) all costs and expenses incurred in
connection with the operation, management and maintenance of the Facility, including, without limitation, all administrative, financial reporting, and general expenses, expenses relating to employment of employees at the Facility (“at
cost” with no additional fee or mark-up including salaries, payroll taxes, benefits, cost of payroll, etc); (ii) advertising and business promotion expenses; (iv) Management Fees; (v) the cost of Inventories and Fixed Asset
Supplies consumed in the operation of the Facility; (vi) costs and expenses for preparation of claims and billing submissions and collection of Receivables and other monies; (vii) insurance costs; (viii) all real property and personal
property taxes and assessments; (ix) those costs and expenses that are expressly identified as Operating Expenses in this Agreement; (x) budgeted costs related to accounting software fees and Management Company’s server utilization
fees; (xi) costs incurred to prepare a unit for an incoming resident; (xiii) costs of maintenance and repairs not included in Capital Expenditures; (xiv) food; (xv) cost of compliance with Legal Requirements; (xvi) expenses
related to the provision of services including, except to the extent billed directly to the Resident, home health services; and (xvii) any other non-capital costs and expenses incurred in connection with the operation of the Facility or as are
specifically provided for elsewhere in this Agreement. Operating Expenses shall not include any Management Company Expenses or deductions for interest for property debt service, or depreciation or amortization, income, taxes, franchise taxes or
similar taxes, or rent payable from Tenant to Landlord pursuant to the lease for the Facility, or costs relating to the Landlord’s or Tenant’s ownership structure (all of which shall be paid directly by Landlord or Tenant, as the case may
be). 
 “Performance Threshold” means, for the first Fiscal Year (or partial Fiscal Year), Three Hundred Ten Thousand and
No/100 Dollars ($310,000.00) (which amount shall be prorated for any partial Fiscal Year); commencing in the second Fiscal Year and continuing for the remainder 

  
 4 

 
of the Term, for the applicable Fiscal Year an amount equal to eighty-five percent (85%) of the anticipated Net Operating Income set forth in the Approved Operating Budget for such Fiscal
Year. 
 “Person” means any natural person, firm, corporation, general or limited partnership, limited liability company,
association, joint venture, trust, estate, Governmental Authority or other legal entity, in each case whether in its own or a representative capacity. 

“Purchase and Sale Agreement” shall have the meaning set forth in the recitals. 

“Receivables” shall mean all billed and unbilled accounts receivable, trade receivables, work in progress, notes receivable
and other receivables arising out of or related to the Facility. 
 “Revenues” means, for the applicable period of time,
but without duplication, all gross revenues and receipts of every kind derived by or for the benefit of Tenant, Management Company or their affiliates from operating or causing the operation of the Facility and all departments and parts thereof,
determined in accordance with GAAP for each accounting period (with the exception of any pass-through fees), including, but not limited to: income from both cash and credit transactions (after reasonable deductions for rent concessions or rebates
given, paid or returned in ordinary course of obtaining Revenues, bad debt allowance, discounts for prompt or cash payments, refunds and credit card payment fees) from rental or subleasing of every kind; community fees; monthly occupancy fees;
healthcare fees and ancillary service fees received pursuant to various agreements with residents of the Facility; license, lease and concession fees and rentals, off premises catering, if any, and parking; income from vending machines; proceeds, if
any, from business interruption (but only to the extent it reimburses Tenant for lost income and not for additional or other expenses) or other loss of income insurance; club membership fees; income from food and beverage and catering sales;
wholesale and retail sales of merchandise (other than proceeds from the sale of furnishings, fixtures and equipment no longer necessary to the operation of the Facility); and service charges, to the extent not distributed to Facility employees as
gratuities; all determined in accordance with GAAP; provided, however, that Revenues shall not include the following: (i) management fees or reimbursements paid by Tenant to Management Company pursuant to this Agreement; (ii) gross
receipts of revenue generated by lessees, sublessees, licensees or concessionaires and not paid to Tenant, Management Company or their affiliates; (iii) gratuities to Facility employees; (iv) federal, state or municipal excise, sales,
occupancy, use or similar taxes collected directly from residents or guests of the Facility or included as part of the sales price of any goods or services; (v) proceeds of any insurance policy (except for loss of income insurance as provided
above) or condemnation or other taking; (vi) any proceeds from any sale of the Facility or any other capital transaction; (vii) proceeds of any financing or refinancing of any debt encumbering the Facility or any portion thereof; (viii);
proceeds from the disposition of furnishings, fixtures and equipment or any capital asset no longer necessary for the operation of the Facility; (ix) interest received or accrued with respect to amounts deposited in any operating or reserve
accounts of the Facility; (x) security deposits until such time as the same are applied to current fees due for services rendered for the Facility; (xi) awards of damages, settlement proceeds and other payments received by Tenant in
respect of any litigation other than litigation to collect fees due for services rendered from the Facility or otherwise compensating Tenant or Landlord for lost revenue; and (xii) payments under any policy of title insurance. Any community
fees or deposits or other amounts that are refunded to a resident shall be credited against Revenues during the month in which such refunds are made, if previously included in Revenues. 

  
 5 

 “Subsidiary” means, in respect of any Person: 

(a) any corporation of which more than 50% of the outstanding capital stock having ordinary voting power to elect the majority of the board of
directors of such corporation is at the time directly or indirectly owned by (i) such Person, (ii) such Person and one or more subsidiaries of such Person, or (iii) one or more subsidiaries of such Person; or 

(b) any limited or general partnership, joint venture, limited liability company or other entity as to which (i) such Person,
(ii) such Person and one or more of its subsidiaries, or (iii) one or more subsidiaries of such Person owns, more than a 50% ownership, equity or similar interest or has power to direct or cause the direction of management and policies, or
the power to elect the general partner or managing partner (or equivalent thereof), of such limited or general partnership, joint venture, limited liability company or other entity, as the case may be. 

“Tenant” shall have the meaning set forth in the first paragraph of this Agreement. 

“Tenant Default” shall have the meaning set forth in Section 7.2. 

“Tenant Losses” shall have the meaning set forth in Section 8.2. 

“Term” shall have the meaning set forth in Section 2.1. 

1.2 Recitals. The recitals set forth above are hereby incorporated as if set forth herein in their entirety. 

ARTICLE 2. 
 OPERATING
TERMS AND APPOINTMENT AND EMPLOYMENT OF MANAGEMENT COMPANY AS AGENT AND GENERAL MANAGEMENT COMPANY OF THE FACILITY 
 2.1
Term. The term of this Agreement shall commence on the Effective Date and shall continue for a period of five (5) years thereafter subject to earlier termination as set forth in Article 7 hereof (the “Term”). 

2.2 Employment of Management Company. Tenant hereby appoints Management Company as the sole and exclusive manager of the
Facility and subject to Tenant’s ultimate responsibilities as the holder of the Licenses (as defined below) and in accordance with all Legal Requirements, Management Company agrees to act as the manager of the Facility. In connection therewith,
Management Company shall supervise, direct and control the day to day business activities and management of the Facility and all phases of its management in the name of and on behalf of Tenant upon the terms and conditions hereinafter stated.
Management Company shall be responsible for managing the Facility in a professional, competent and business-like manner, in material compliance with all Legal Requirements and the terms and provisions of this Agreement. Management Company shall,
subject to compliance of Tenant with its obligations 

  
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hereunder, do all things as may be reasonably required to maintain and preserve all necessary licenses, permits, authorizations, certifications and approvals to operate the Facility so as to
comply with all applicable Legal Requirements (collectively, the “Licenses”); provided, however, and notwithstanding any other provisions of this Agreement to the contrary, Management Company shall not be required to expend its own
funds in performing any of its obligations herein other than general company matters of Management Company that would be a cost of doing business of Management Company even if this Agreement did not exist (such as maintaining its corporate status in
Washington, etc.) Except as provided for herein, Management Company makes no warranties, express or implied, and shall not assume any financial or other responsibilities in connection with its obligations hereunder and shall not be obligated to
contribute its own funds in connection with the management of the Facility. 
 2.3 Retention of Legal Ownership by Tenant.
Tenant shall at all times continue to exercise legal ownership and control over the assets and operations of the Facility, and Management Company shall perform its responsibilities as described in this Agreement as agent to Tenant in accordance with
written policies and directives adopted by Tenant. By entering into this Agreement, Tenant does not delegate to Management Company any of the powers, duties, and responsibilities vested in the Tenant by Legal Requirements, or by its Articles of
Organization or Operating Agreement. Management Company will propose written policies and directives from time to time for adoption by the Tenant. Tenant, may, according to the terms of this Agreement (i) direct Management Company to implement
existing policies and procedures at the Facility as approved by Management Company, (ii) consent to the adoption of policies and procedures at the Facility recommended by Management Company, or (iii) adopt as the policies and procedures of
the Facility the Tenant’s own proposals as approved by Management Company, subject to any limitations stated herein. Whenever this Agreement calls for the approval of Tenant, such approval shall be expressed in writing, which may be by email,
and executed by a duly authorized officer of Tenant. In the absence of any requirement for Tenant consent, then Management Company shall be entitled, to the extent permitted by Legal Requirements, to rely upon its business judgment, consistent with
the terms of this Agreement and the Budget, and act accordingly as agent for the Tenant. Notwithstanding anything herein to the contrary, Tenant shall have all the requisite power and authority to operate the Facility as required by Legal
Requirements. 
 2.4 Management Services to be Provided by Management Company. During the Term, Management Company shall, as
agent and on behalf of Tenant, manage all aspects of the day-to-day operation of the Facility. Management Company shall act in good faith and use its best reasonable efforts to perform its obligations hereunder. In connection therewith, to the
extent permitted by Legal Requirements and in accordance with the Budget, Management Company (either directly or through supervision of Management Company employees at the Facility): 

 

	 	(a)	 Select, employ, supervise, train and discharge as Facility employees, an adequate staff of housekeepers, maintenance, food service, activity, office
and other employees, including an Administrator (who may be replaced, from time to time), and promote, direct, assign and discharge all such employees at Management Company’s sole discretion. All costs and expenses relating to Facility
employees, including compensation and benefits, shall constitute an Operating Expense to be paid or reimbursed at 

  
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Management Company’s cost, without additional mark-up. Management Company shall provide for and maintain a basic employee training and testing program with objective standards for all
categories of employees which meets or exceeds all governmental and industry requirements for minimum levels of training and degrees of experience, all as specified in the employee, operating procedure or other similar manual for the Facility, and
will provide at least the State of Texas minimum required level of staffing for all categories of employees. Management Company shall provide for and maintain fidelity bonds and other appropriate protections with respect to any person with access to
funds belonging to the Facility. 

  

	 	(b)	Establish general salary scales, personnel policies and appropriate employee benefits for all Management Company employees. Employee benefits may include insurance benefits, incentive plans for key employees, and
holiday, vacation, personal leave and sick leave policy, consistent with the current policies of the Management Company; 

  

	 	(c)	Issue appropriate bills for services and materials furnished by the Facility and use its commercially reasonable efforts to collect Receivables and monies owed to the Facility; design and maintain customary accounting,
billing, resident and collection records; and prepare and file insurance, and any and all other necessary or desirable applications, reports and claims related to revenue production. All rates for services provided by Tenant and for the use of the
Facility, and any changes therein, shall be subject to approval through the Budget. Tenant expressly assigns, to the extent permitted by Legal Requirements, to Management Company the full right, power and authority as its agent to administer,
process and collect on Tenant’s behalf and in its name, all Receivables and monies owed to the Facility. Any and all refunds, volume discounts, rebates, reduced rates for timely payment, or other benefits derived from business done at, on or
through the Facility shall be credited to Tenant and not to Management Company; 

  

	 	(d)	Plan, supervise and conduct a program of regular maintenance and repair of the Facility. Management Company shall not make any additions to the Facility increasing or decreasing the square foot area, unit count, or
licensed bed capacity, without the prior written approval of Tenant. Management Company shall maintain a maintenance log of all repairs, replacements or improvements made to the Facility which are capitalized under generally accepted accounting
principles; 

  

	 	(e)	 Provide directly, or through contracts, all necessary services, food, beverages, cleaning and other supplies, equipment, furniture and furnishings for
the operation and maintenance of for the account of Tenant. Unless the consent of Tenant is otherwise obtained, all contracts or agreements entered into by Management Company for the account of the Tenant shall be for a term of one (1) year or
less (unless for an amount 

  
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of less than $10,000 in expected annual compensation for certain contracts that customarily have a term of more than one year (such as elevator maintenance contracts)) and be less than $25,000
(or $50,000, provided such contract may be terminated by Tenant without fee or penalty upon no more than thirty (30) days’ notice) in expected annual compensation, and shall provide for payments within the then current Budget. To the
extent permitted by Legal Requirements and the terms offered by vendors, Management Company will offer to the Facility the opportunity to participate in any group or volume purchasing contracts in which the Management Company may from time to time
participate wherein such participation by the Facility, in the sole opinion of Management Company, is deemed to be appropriate and practical, provided that if any such group or volume purchasing contract provides for an administrative fee payable to
Management Company or its Affiliates, (i) such administrative fee shall be first disclosed to Tenant before the Facility participates in such contract and (ii) Tenant shall have the right to disapprove the Facility’s participation in
such contract. The Facility shall receive, pro rata if applicable, the financial benefits of any purchasing contract concessions, discounts or rebates with respect to any such contracts in which it participates. Any contracts, the expense of which
is not provided for in the Budget, will be subject to the approval of the Tenant. 

  

	 	(f)	Administer, supervise and schedule resident and other services of the Facility as required under any residency agreement, including the provision of food, and other ancillary services; 

 

	 	(g)	Provide for the orderly payment of accounts payable, employee payroll, taxes, insurance premiums and all other customary obligations of the Facility, and timely file all applicable sales tax and/or personal property tax
returns for the Facility; 

  

	 	(h)	Institute standards and procedures for admitting and discharging residents, for charging residents for services and for collecting the charges from residents or third parties; 

 

	 	(i)	Furnish to the Facility any and all policy manuals needed for the operation of the Facility and propose revisions to said policy manuals as is needed from time to time to assure, to the best of Management Company’s
ability, that the Facility complies with all applicable Legal Requirements, provided that the foregoing does not constitute a guaranty of such compliance by Management Company. All manuals, procedures, guidelines, work product, and other materials
generated by Management Company, however, are and shall remain the physical and intellectual property of Management Company and shall remain the exclusive property of Management Company even upon the expiration or termination of this Agreement;

  
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	 	(j)	If requested by Tenant, procure, to the extent commercially available, the insurance set forth in Article 5 and Exhibit A or as may be required from time to time by a Mortgagee. 

 

	 	(k)	Negotiate and enter into, in the name of and on behalf of Tenant, such agreements, contracts and orders on a competitive price basis as it may deem necessary or advisable for the furnishing of services, concessions and
supplies for the operation and maintenance of the Facility, subject to the limitations set forth in Section 2.4(e). 

  

	 	(l)	Handle and settle all employee relations matters, provided however, that except as may be required by any Legal Requirements, without the prior participation and consent of Tenant, which may be withheld in its sole and
absolute discretion, Management Company shall not contact, recognize, initiate or respond formally to communication with any organized labor union regarding the Facility by any means including, without limitation, execution of any instrument which
recognizes any labor union with respect to Facility employees, any collective bargaining agreement, neutrality or any labor contract resulting therefrom non-voluntarily agree to collectively bargain with employees in any proposed bargaining unit at
the Facility; 

  

	 	(m)	Assist Tenant in obtaining or maintaining Licenses required by Legal Requirements for the operation of the Facility; 

  

	 	(n)	Maintain an accounting and internal control system using accounts and classifications consistent with those used in similar communities and as may be directed by Tenant from time to time, including suitable books and
records of control and accounts as are necessary or required in order to comply with all Legal Requirements; 

  

	 	(o)	Coordinate the provision of home health care and other ancillary services to residents of the Facility as Management Company may deem reasonable, necessary or desirable in connection with the management of the Facility;

  

	 	(p)	Prepare and present to on-site personnel written emergency and evacuation procedures for the protection, warning, and safe and timely evacuation of all residents, guests, invitees, and staff from the Facility (the
“Emergency and Evacuation Procedures”). Management Company agrees to consult with insurance carrier loss prevention consultants if so required by Tenant, and to change such Emergency and Evacuation Procedures if reasonably
recommended by them; provided, that the Emergency and Evacuation Procedures shall at all times comply with applicable governmental requirements. Management Company shall take such steps as it deems appropriate to assure the proper training of the
Management Company employees, and shall assure that all residents receive and are knowledgeable about such Emergency and Evacuation Procedures. 

  
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	 	(q)	Management Company shall take such action as shall be necessary to ensure that the Facility and the management thereof by Management Company comply in all material respects with all Legal Requirements applicable to the
Facility or the management thereof by Management Company, including any Legal Requirements applicable to assisted living communities owned by for-profit organizations. Each party shall promptly provide to the other party within 10 (ten) days after
receipt, all notices, reports or correspondence from governmental agencies that assert deficiencies or charges against the Facility or that otherwise relate to the suspension, revocation, or any other action adverse to any License, all plans of
correction submitted in response thereto and all correspondence relating thereto. 

  

	 	(r)	Management Company shall take such action as may be necessary to comply promptly with any and all orders, evaluations, reports, or other Legal Requirements or, with Tenant’s prior consent, appeal or otherwise
contest any action taken by any governmental agency against the Facility. In connection with any such appeal, Tenant shall adequately secure and protect the Management Company from loss, cost, damage or expense by bond or other means reasonably
satisfactory to Management Company in order to contest by proper legal proceedings the validity of any such Legal Requirement. Notwithstanding the foregoing, Tenant shall have no obligation to secure and protect Management Company from any loss,
cost, damage or expense that arises directly out of Management Company’s breach of any of its covenants under this Agreement. Tenant, after having given its written approval, shall cooperate with Management Company with regard to the contest,
and Tenant shall pay all reasonable attorneys’ fees incurred with regard to the contest from the Operating Accounts. Counsel for any such contest shall be selected by Management Company and approved by Tenant. Management Company shall, with the
consent of Tenant and at Tenant’s cost and expense, process all third party payment claims for the services provided at the Facility, including, without limitation, consent to the exhaustion of all applicable administrative proceedings or
procedures, adjustments and denials by governmental agencies or their fiscal intermediaries as third party payors. 

  

	 	(s)	To the extent modification of this Agreement is required to comply with Legal Requirements, Management Company and Tenant agree to make such modification to cause this Agreement to comply with all Legal Requirements.
Expenses incurred as the result of the noncompliance, cure and/or appeal shall be the responsibility of Tenant. Management Company, however, shall not take any action under this Section so long as Management Company has been informed that Tenant is
contesting, or has affirmed its intention to contest any such order or requirement, unless a failure to comply promptly with any such order or requirement would expose Management Company to civil or criminal liability. 

  
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	 	(t)	Management Company immediately shall deliver to Tenant copies of all notices received by it or received at the Facility from any Mortgagee. 

 

	 	(u)	Oversee all capital projects involving Capital Expenditures set forth in the Approved Capital Budget provided however that for any major capital improvement, addition, or replacement wherein the estimated cost exceeds
$10,000 or involves more than one contractor with whom Tenant must directly contract, the Manager or Tenant may identify and contract with an independent consultant to provide construction planning and supervision of any such major capital
improvement project or addition, or the Tenant may authorize the Management Company to provide these services on reasonable terms mutually agreed to in advance by Tenant and Management Company. Except as otherwise approved in writing by an officer
or authorized representative of Tenant, all Capital Expenditures shall be made only in accordance with an Approved Capital Budget. In the event of any emergency requiring prompt action for the protection and safety of the Facility or the residents
and staff therein, in which it is not practicable to obtain prior approval from the Tenant or a representative of the Tenant, Management Company shall be entitled to take any required or necessary action without Tenant’s prior approval.
Management Company shall provide a report to Tenant as soon as practicable outlining the emergency situation and the actions taken. 

  

	 	(v)	Management Company shall establish and maintain records and procedures to account for any resident funds deposited with the Facility. One or more “Resident Trust Accounts” shall be established in
accordance with the terms hereof and all disbursements therefrom and records and procedures relating thereto shall conform with the requirements of third party reimbursement, licensure and all other applicable requirements and the terms hereof.

  

	 	(w)	Management Company shall maintain adequate systems and procedures governed by written policies and procedures covering all aspects of its operational and fiscal processes and sufficient to ensure that the
Facility’s assets and business are safeguarded in all material respects. 

 2.5 Budget. 

 

	 	(a)	The Approved Operating Budget and Approved Capital Budget for Fiscal Year 2014 is attached hereto as Exhibit B. 

  
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	 	(b)	For each Fiscal Year thereafter, Management Company shall submit to Tenant, at least 60 days prior to the beginning of such Fiscal Year during the Term, an annual budget covering the operations of, and proposed Capital
Expenditures to be made with respect to, the Facility containing the following items: 

 (i) A capital
expenditure budget (the “Proposed Capital Budget”) setting forth, on an accrual basis, an estimate of the Capital Expenditures to be incurred for the Facility, on a monthly basis for the next Fiscal Year. Tenant may approve or
reject each proposed Capital Expenditure, except those required by Legal Requirements. All Capital Expenditures shall be paid from the FF&E Reserve; provided, however, that Capital Expenditures that do not qualify under the Facility Mortgage for
payment from the FF&E Reserve shall be paid for from the Operating Account. Notwithstanding anything herein to the contrary, if and as required pursuant to any Facility Mortgage, the Proposed Capital Budget shall generally provide for at least
$500 per unit of Capital Expenditures for the Facility to be expended from the FF&E Reserve on a rolling twelve (12) month basis; 

(ii) An operating budget (the “Proposed Operating Budget”) setting forth, on an accrual basis, an estimate of
the following items for the Facility, on a monthly basis for the next Fiscal Year: 
 (a) unit occupancy; 

(b) Revenues; 

(c) Operating Expenses, including the costs for repairs and maintenance not included in Capital Expenditures 

(d) expenditures for advertising, promotion, and personnel training programs to be undertaken by Management Company; and 

(e) Management Fees. 
  

	 	(c)	 Tenant shall approve or disapprove of the Proposed Operating Budget and Proposed Capital Budget in writing to Management Company, detailing the basis
for disapproval, within thirty (30) days after receipt. If Tenant does not approve or disapprove of the Proposed Operating Budget or Proposed Capital Budget within such thirty (30) day period then Tenant shall be deemed to have approved
the Proposed Operating Budget or Proposed Capital Budget, as applicable. If Tenant disapproves the Proposed Operating Budget or Proposed Capital Budget, Management Company will resubmit the Proposed Operating Budget or Proposed Capital Budget within
fifteen (15) days after initial rejection. Tenant shall approve or disapprove any such resubmitted Proposed Operating Budget or Proposed Capital Budget within fifteen (15) days of its receipt thereof. The Tenant shall not unreasonably
withhold its approval of any Proposed Operating Budget or Proposed Capital Budget submitted by the Management Company. The Operating Budget and the Capital Budget as so finally approved by Tenant shall constitute the “Approved Operating
Budget” and the “Approved Capital Budget”, respectively, for purposes 

  
 13 

	 	
hereof. The Approved Operating Budget and the Approved Capital Budget shall be known collectively as the “Budget” for purposes hereof. Should the budgeting process be delayed for
any reason, until such delay is resolved Management Company will manage the Facility under the prior Fiscal Year’s Budget adjusted for the change in the Consumer Price Index from the year, and adjusting for occupancy changes on a per resident
day basis, except for uncontrollable Operating Expenses (taxes, insurance, utilities, etc.), which shall be increased to reflect the actual increase in the cost of such Operating Expenses. 

 

	 	(d)	An Approved Operating Budget shall constitute authorization for Management Company to expend funds to manage the Facility pursuant to such Approved Operating Budget, and Management Company may do so without further
approval. Management Company shall use its best efforts to adhere to the Approved Operating Budget; provided, however, that Management Company may exceed the Approved Operating Budget for any given month provided the excess expenditure does not
exceed the greater of 10% or $10,000 for each operating expense functional line item of the Approved Operating Budget provided that aggregate Operating Expenses shall not exceed the total amount therefore set forth in the Operating Budget without
Tenant approval. 

  

	 	(e)	If at any time circumstances indicate that the Approved Operating Budget does not properly take into account the projected needs of the Facility, Management Company shall notify Tenant of the same and shall submit to
Tenant a proposed revision to the Approved Operating Budget which Tenant shall approve or disapprove within thirty (30) days after submission. If the proposed revision is disapproved by Tenant, Tenant and Management Company shall endeavor to
agree on a revised Approved Operating Budget. Once and if approved, Management Company’s authority as to any revised Approved Operating Budget is the same as that authorized for the original Approved Operating Budget. 

 

	 	(f)	The Approved Capital Budget shall constitute authorization for Management Company to make the Capital Expenditures contemplated thereby. If Management Company believes the purchase or installation of new or replacement
equipment or other capital items not contemplated by the Approved Capital Budget is or will be necessary or desirable, Management Company shall advise Tenant thereof, but shall cause such items to be purchased and installed only after obtaining the
prior written authorization of Tenant. 

 2.6 Reports to Tenant. 

 

	 	(a)	 During the Term, Management Company shall deliver to Tenant the following statements for the Facility prepared in accordance with GAAP applied
consistently from period to period (which shall be certified by an 

  
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officer of Management Company as being true and accurate in all material respects) by the fifteenth (15th) calendar day of the month,
except for the Rent Roll which shall be submitted within the fifth (5th) Business Day of the month, and except for those items set forth immediately below at Sections 2.6(a)(ii)
and 2.6(a)(x) which shall be submitted within the tenth (10th) calendar day of the month: 

(i) Balance sheet and income statement (in Microsoft Excel format or YARDI, to the extent compatible with Excel); 

(ii) Trial balance with 3 columns (balance forward, net debits/credit, and ending balance in Microsoft Excel format) 

(iii) Rent Roll; 

(iv) Report of daily census for the month; 

(v) Marketing report in a form used for such reports by the Manager internally; 

(vi) Twelve month rolling cash flow projection; 

(vii) Detail of Management Fee calculations; 

(viii) Capital Expenditure reconciliation to the Approved Capital Budget; 

(ix) Disclosure of any material communications with regulatory agencies and state surveys; 

(x) Reconciliation Statement that sets forth any activity in the equity account of Tenant resulting from additional deposits
into or withdrawals from the FF&E Reserve or the Operating Account by Tenant or one of its Affiliates, together with underlying documentation (including, but not limited to, invoices and contracts); 

(xi) Most recent sales tax and personal property tax filings, if and as applicable, with the monthly reporting submittals; and

 (xii) any other information relating to the Facility reasonably requested by Tenant. 

 

	 	(b)	As an Operating Expense, prepare the following reports consistent with GAAP (which reports shall be certified by an officer of Management Company as being true and accurate in all material respects) to be submitted to
Tenant within fifteen (15) days after the end of each calendar quarter (other than the item to be delivered pursuant to Section 2.6(b)(i) which is to be submitted within fifteen (15) days after the end of each February, May,
August and December); 

 (i) All balance sheet reconcilement; 

  
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 (ii) Check register from the first day of the subsequent month to search for
unrecorded liabilities; 
 (iii) Certification executed by the President of Management Company in the form attached hereto as
Exhibit C; and 
 (iv) Management Company will cooperate in providing other reports as reasonably requested by the
Tenant. 
 If due to extraordinary circumstances, Management Company identifies expenditures after the last day of the month which are in
fact properly chargeable to that month but which are not reflected on statements submitted pursuant to this Section, Management Company shall promptly notify Tenant of said expenditures, if material. All statements required by this Section shall be
prepared in accordance with GAAP. 
  

	 	(c)	As an Operating Expense, Management Company shall prepare the following final reports consistent with GAAP (which shall be certified by an officer of Management Company as being true and accurate in all material
respects) and management status reports of the Facility, to be submitted to Tenant within seventy-five (75) days after the end of each Fiscal Year: 

(i) Balance sheet and income statement; 

(ii) Revenues, Operating Expenses, and NOI; 

(iii) Calculations of Management Fee; 

(iv) Fixed asset additions; 

(v) Capital expense reconciliation to the Approved Capital Budget; 

(vi) Management Company will cooperate in providing other reports as reasonably requested by Tenant. 

 

	 	(d)	Management Company shall also provide any assistance as reasonably requested by the independent accountants for the Facility, selected by Tenant, in the preparation of audited financial statements for the Facility. Such
audited financial statements shall be prepared at Tenant’s expense in accordance with GAAP and delivered to Management Company and Tenant. 

  
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	 	(e)	Management Company shall also provide the following services related to the monthly and annual reports: 

(i) Management Company shall make available to Tenant for inspection and/or copying by Tenant upon request, all books, records
and financial data relating to the Facility in Management Company’s possession. Tenant shall notify the Management Company at least five (5) Business Days in advance of such inspection and shall conduct such inspection during mutually
agreeable business hours. 
 (ii) Management Company shall reasonably assist the Tenant and its accountants in preparing and
delivering to any lender any required monthly and annual reports. 
 (iii) Management Company shall provide Tenant annually
with information concerning any new competing community, and shall provide Tenant annually with any revisions to the Marketing Plan for the Facility, and an annual competitive analysis showing the Facility’s position in the market with a survey
of pertinent data of competing communities (to the extent requested by Tenant). 
 2.7 Bank Accounts and Cash Balance. 

 

	 	(a)	Management Company shall deposit all Revenues received into a separate, segregated bank account (the “Operating Account”) established in Tenant’s name at a bank approved by Tenant and Management
Company, and shall supervise the disbursements from the Operating Account on behalf of Tenant of such amounts and at such times as the same are required in Management Company’s reasonable business judgment, and in accordance with the provisions
of this Agreement. Management Company shall discharge such supervisory responsibilities in accordance with reasonable and customary business standards and practices. All Operating Expenses shall be paid out of the Operating Account. The Management
Fees shall be paid out of the Operating Account. Tenant and Management Company shall specify the signatory or signatories of Management Company required on all checks or other documents of withdrawal submitted by Management Company on the Operating
Account. Funds in the Operating Accounts shall not be commingled with any other funds controlled by Management Company, unless approved by Tenant and will be disbursed only in accordance with this Agreement and, from time to time, upon the specific
instructions of Tenant. Management Company shall not withdraw any monies from the Operating Account to pay any item other than Operating Expenses permitted pursuant to the Approved Operating Budget or the Approved Capital Budget, as applicable,
including the Management Fee and all amounts due Management Company or its affiliates pursuant to any other agreement in respect of the Facility, or any emergency expenses pursuant to Section 2.4 hereof. 

 

	 	(b)	 Landlord shall establish a reserve account (the “FF&E Reserve”) at a bank approved by Manager, such approval not to be
unreasonably withheld or delayed. Each month during the Term, Management Company shall 

  
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transfer into the FF&E Reserve an amount equal to one twelfth (1/12) of the FF&E Reserve Payment. Transfers into the FF&E Reserve shall be made on or before the fifteenth (15th) day of each month. Funds deposited into the FF&E Reserve shall be disbursed in accordance with the Approved Capital Budget. Manager and Tenant or Landlord shall each be signatories on the
FF&E Reserve, but the Landlord shall be the account holder and all funds contained therein shall be the property of Landlord. 

  

	 	(c)	All rights granted to Management Company under the terms of this Agreement, including the payment of Management Fees, are and shall be subordinate to the liens of lenders securing the current indebtedness of Tenant
(however, any Management Fees which are not paid due to the foregoing subordination provision shall accrue and Manager shall have the right to terminate this Agreement in accordance with the terms of Section 7.2(d)). 

 

	 	(d)	Tenant will maintain a minimum cash balance of $50,000 in the Operating Account. Tenant will also fund all reasonable cash requests of the Management Company to maintain the foregoing cash balance in the Operating
Account. Without limiting the foregoing, on the Effective Date, Tenant will fund the Operating Account with $50,000. 

 2.8
Licenses, Permits and Certification. 
  

	 	(a)	Management Company, as agent of Tenant, shall assist Tenant in its application for and maintenance, in Tenant’s name of all Licenses from all governmental agencies which have jurisdiction over the Tenant and
operation of the Facility. 

  

	 	(b)	Neither Tenant nor Management Company shall knowingly take any action or fail to take any action which could reasonably be expected to cause a governmental authority having jurisdiction over the operation of the
Facility to institute any proceeding to suspend, rescind or revoke any License. 

 2.9 Medicare. Tenant and
Landlord shall have the right, at all reasonable times during the usual business hours of the Facility, to audit, examine and make copies of books of account (including, without limitation, all books and patient records, billing records, business
records and any other records of all billings by or on behalf of Manager to any patient, third party payer and/or the United States Government or any of its agencies for services rendered at the Facility) maintained by Manager with respect to the
Facility. Such right may be exercised through any agent or employee designated by Tenant or by an independent public accountant designated by Tenant. Further, at the end of the Term of this Agreement, or upon other termination of this Agreement, as
provided herein, copies of all books and patient records, billing records, business records and any other records kept for the Facility, including all records kept on electronic media, and accounts and funds belonging to each Facility, are to be
promptly delivered to Tenant in a form readable by generally available software. 

  
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 In the event any audit conducted by Tenant or Landlord causes Tenant or Landlord to question any
amount billed by or on Manager’s behalf to any patient, third party payer and/or the United States Government or any agency thereof for services rendered at the Facility, Tenant or Landlord shall provide Manager with written notice of the
amounts in question. If Tenant, Landlord and Manager are unable to resolve such matters to Tenant and Landlord’s satisfaction within sixty (60) days after such written notice, Tenant and Landlord shall each have the right to bring
such amounts to the attention of the appropriate person, or the United States Government or the appropriate agency thereof, and Tenant shall have the right to terminate this Agreement on sixty (60) days written notice to Manager and
Landlord.
 Manager shall repay to any patient, third party payer and/or the United States of America or to the appropriate agency thereof,
any amounts received by Manager and not remitted to Tenant and which are finally determined to have been improperly billed by or on behalf of Manager for services rendered at the Facility (which amounts shall be a Facility Expense only to the extent
they were originally included in Gross Revenue), and Manager shall pay any interest, fines and penalties thereon. For purposes of this paragraph, an amount shall be finally determined to have been improperly billed if such determination has
been made by an agency of the United States of America or by a court of law, and such determination is not subject to further appeal. Manager will defend, indemnify and hold Tenant and Landlord (and any of their Affiliates, their respective
directors, officers, shareholders, employees and agents) harmless from and against any claims, losses, expenses, costs, suits, actions, proceedings, demands or liabilities (including, without limitation, interest, fines and penalties) that are
asserted against, or sustained or incurred by them and that arise out of allegations of improper billing by or on behalf of Manager to any patient, third party payer and/or the United States of America or any agency thereof for services rendered at
the Facility, whether or not such allegations are true. The scope of the foregoing indemnities includes any and all reasonable costs and expenses incurred during any investigation of or in any proceeding to defend any indemnified claim, or to
enforce the indemnity, or for any or all of such purposes. If Tenant or Landlord notifies Manager in writing of the terms of a proposed settlement of an indemnified claim that are acceptable to Tenant or Landlord, Manager agrees that it will
not unreasonably withhold or delay its approval of such settlement. The Manager’s obligations hereunder shall survive the termination of this Agreement. 

2.10 Quality Controls. Management Company shall activate and maintain on a continuing basis, a quality assurance program which
provides objective measurements of the quality of services provided at the Facility. In connection therewith, Management Company shall utilize such techniques (e.g. resident interviews and periodic inspections) as Management Company may reasonably
deem necessary to maintain the quality of the Facility. 
 2.11 Use of Management Company’s Personnel. Representatives of
Management Company shall visit the Facility as often as Management Company deems necessary. All out-of-pocket expenses arising from travel and lodging connected with such visitations shall be borne by the Management Company, except personnel that
float between properties and any travel beyond fifty (50) miles if such arrangement can be shown to reduce overall employment costs at the Facility and except that the actual cost of Management Company’s officers’ and employees’
air travel to or from the Facility shall be paid as an Operating Expense from the Operating Account; provided however, (i) no other incidental costs of Management Company’s officers’ 

  
 19 

 
and employees’ related to such travel, such as but not limited to the costs of ground travel, lodging and food, shall be an Operating Expense and (ii) in the event that the Management
Company’s officers’ or employees’ conduct business unrelated to the management of the Facility during such trip, then the Operating Expense for the air travel pursuant to this section shall be a portion of such costs representing a
reasonable and equitable allocation of such costs to the Facility. 
 2.12 Taxes. Any applicable income taxes of Tenant, any
federal, state or local taxes, assessments or other governmental charges imposed on the Facility are the obligations of Tenant, not of Management Company, and all of the foregoing, with the exception of any applicable income taxes (which shall be
paid directly by Tenant), shall be paid out of the Operating Account of the Facility. With the Tenant’s prior written consent, Management Company may, and at Tenant’s direction shall, contest the validity or amount of any such tax or
imposition on the Facility in the same manner as described in Section 2.4(a) hereof. Management Company, on behalf of Tenant, shall cause all Social Security and federal and state income tax withholding and other employee taxes related
to the Management Company’s employees which may be due and payable to be paid promptly from the Operating Account of the Facility before the payment of any other Operating Expenses therefrom. 

2.13 Information Regarding the Facility. Management Company shall maintain and provide to Tenant, upon Tenant’s request or
upon termination of this Agreement, a complete set of the following: 
  

	 	(a)	books and records of the Facility held by Management Company; 

  

	 	(b)	personal property relating to the Facility; 

  

	 	(c)	service contracts relating to the Facility; 

  

	 	(d)	all necessary records relating to the operation of the Facility and the personal property located at the Facility belonging to Tenant; 

 

	 	(e)	all licenses, permits, operating or occupancy certificates, employment contracts, service contracts, cooperation agreements, and transfer or transportation agreements, relating to the maintenance and operation of the
Facility; and 

  

	 	(f)	a copy of the Management Company’s documented crisis and/or disaster communication and management plan for the Facility in form and substance required by applicable Legal Requirements. 

Management Company shall be responsible for the due and proper maintenance of all items on the foregoing lists at the expense of Tenant. 

Management Company, upon request by the Tenant, will make available for review at the corporate offices of Management Company to the Tenant,
all facility operational materials, including policy and procedure manuals and standard operational materials and other similar materials. Management Company agrees to change any policy and/or procedure which violates

  
 20 

 
any Legal Requirement. In addition, if Tenant requests any other change, Management Company and Tenant will work together to revise such operational policies and procedures but will not be
required to implement changes which are based solely on business considerations. Any and all changes in the standard management program of the Management Company will be documented and clearly expressed in the “Policies and Procedures
Exceptions Manual” which will be maintained in the Facility. This Manual and the standard operational materials, together, will comprise the “Facility Operational Materials”. 

ARTICLE 3. 
 MANAGEMENT
FEE 
 3.1 Management Fee. Management Company shall receive five percent (5%) of the gross collected Revenues
received each month (“Management Fee”). The Management Fee for each month shall be paid to the Management Company from the Operating Account of the Facility no later than fifteen (15) days following the end of that month. 

ARTICLE 4. 
 OTHER
TRANSACTIONS WITH MANAGEMENT COMPANY OR ITS AFFILIATES 
 4.1 Transactions with Management Company and Its Affiliates.
Notwithstanding anything else herein contained, Management Company shall not, without the prior written consent of Tenant after full disclosure by Management Company of such affiliation and interest, cause Tenant to enter into any contract with
Management Company or any Affiliate thereof for services required to be provided by Management Company under this Agreement, or pay any amount to Management Company or its Affiliates, other than Management Fees described in Article 3 hereof, or
reimbursement of bona fide expenses to unrelated third parties. 
 ARTICLE 5. 

INSURANCE 
 5.1
Insurance. Management Company shall procure and maintain (or Tenant shall procure and maintain, at Tenant’s election), as an Operating Expense and with the prior written approval of Tenant, insurance as required and set forth in
Exhibit A to this Agreement. As of the Effective Date, Tenant or Landlord shall procure and maintain as an Operating Expense the property insurance required pursuant to this Agreement and Manager shall procure and maintain as an
Operating Expense the liability insurance required pursuant to this Agreement. The carrier and the amount of coverage of each policy of insurance shall be satisfactory to Tenant. Management Company shall be designated as a named insured with Tenant
included as an additional insured and/or loss payee under each insurance policy procured by Management Company. Tenant or Landlord may elect, in its sole discretion, to procure and maintain as an Operating Expense some or all insurance policies
required and set forth on Exhibit A, except for 

  
 21 

 
Management Company’s Workers’ Compensation, Employer’s Liability, and Professional Liability insurance policies, upon thirty (30) days written notice to Management Company. In
the event Tenant or Landlord elects to procure directly any of the required insurance policies, then Tenant or Landlord shall be the named insured under each policy and Management Company shall be named as an additional insured. 

ARTICLE 6. 

REPRESENTATIONS AND WARRANTIES 

6.1 Representations and Warranties of Tenant. Tenant makes the following representations and warranties which are material
representations and warranties upon which Management Company relied as an inducement to enter into this Agreement: 
  

	 	(a)	Status of Tenant. Tenant is a corporation duly organized and validly existing in good standing under the laws of the State of Delaware qualified in other jurisdictions where necessary in order to conduct its
business and has all necessary power to carry on its business as now being conducted, to operate its properties as now being operated, to carry on its contemplated business, to enter into this Agreement and to observe and perform its terms.

  

	 	(b)	Authority of Due Execution. Tenant has full power and authority to execute and deliver this Agreement and all related documents and to carry out the transactions contemplated herein; which actions will not with
the passing of time, the giving of notice, or both, result in a default under or a breach or violation of (i) the Tenant’s Articles of Organization or Operating Agreement; or (ii) any Legal Requirement, or any Facility Mortgage, note,
bond, indenture, agreement, lease, license, permit or other instrument or obligation to which Tenant is now a party or by which Tenant or any of its assets may be bound or affected. 

 

	 	(c)	Litigation. There is no litigation, claim, investigation, challenge or other proceeding pending or, to the knowledge of Tenant, threatened against Tenant, its properties or business which seeks to enjoin or
prohibit it from entering into this Agreement. 

 6.2 Representation and Warranties of Management Company.
Management Company makes the following representations and warranties which are material representations and warranties upon which Tenant relied as an inducement to enter this Agreement. 

 

	 	(a)	Status of Management Company. Management Company is an S-corp. duly organized and validly existing in good standing under the laws of the State of Washington and qualified to do business in the State of Texas,
and has all necessary power to carry on its business as now being conducted, to carry on its contemplated business, to enter into this Agreement and to observe and perform its terms. 

  
 22 

	 	(b)	Authority and Due Execution. Management Company has full power and authority to execute and to deliver this Agreement and all related documents and to carry out the transactions contemplated herein; which actions
will not with the passing of time, the giving of notice, or both, result in a default under or a breach or violation of (i) Management Company’s Articles of Incorporation or Bylaws, or (ii) any Legal Requirement, or any Facility
Mortgage, note, bond indenture, agreement, lease, license, permit or other instrument or obligation to which Management Company is now a party or by which Management Company or any of its assets may be bound or affected. This Agreement constitutes a
valid and binding obligation of Management Company, enforceable in accordance with its terms, except to the extent that is enforceability is limited by applicable bankruptcy, reorganization, insolvency, receivership or other laws of general
application or equitable principals related to or affecting the enforcement of creditor’s rights. 

  

	 	(c)	Litigation. There is no litigation, claim, investigation, challenge or other proceeding pending or, to the knowledge of Management Company, threatened against Management Company, its properties or business which
seeks to enjoin or prohibit it from entering into this Agreement. 

  

	 	(d)	Management Company is and shall at all times be an “eligible independent contractor” as defined in Section 856(d)(9) of the Internal Revenue Code of 1986, as amended from time to time (the
“Code”) (and taking into account the restrictions on ownership of the Management Company by shareholders of CHP Healthcare Properties, Inc., and restrictions on ownership of CHP Healthcare Properties, Inc., by owners of the
Management Company set forth in Section 856(d)(3)), and Management Company will and shall cause the Facility to be managed in such a manner so that it qualifies as a “qualified health care facility” within the meaning of
Section 856(e)(6)(D) of the Code at all times. In the event that Tenant reasonably concludes that the terms of this Agreement will have any effect as to cause the rent under Tenant’s lease of the Facility to fail to qualify as “rents
from real property” within the meaning of Section 856(d) of the Internal Revenue Code, Management Company hereby agrees to enter into an amendment to this Agreement as proposed by Tenant modifying such terms in such a way as to cause rent
under Tenant’s lease of the Facility to so qualify as “rent from real property” in the reasonable opinion of Tenant and its counsel; provided however, no such modifications shall affect the amount of Management Fees or the practical
realization of the rights and benefits of the Management Company hereunder. 

  

	 	(e)	Ownership of Management Company. Attached hereto as Schedule 6.2(e) is a true and accurate description of the ownership of the Management Company. 

  
 23 

 ARTICLE 7. 

TERMINATION 
 7.1
Tenant Termination. Tenant shall have the right to terminate this Agreement, without paying any fee or penalty, when and if one of the following events occur (hereinafter collectively referred to as “Management Company
Default”), after which Tenant shall have the right – but not the obligation – to declare a termination of this Agreement in accordance with the termination protocols set forth below: 

 

	 	(a)	appointment of a receiver or trustee to manage the assets of Management Company; 

  

	 	(b)	assignment for the benefit of creditors of the assets of Management Company; 

  

	 	(c)	suspension, termination or revocation of any material License, with no further opportunity to appeal or contest such suspension, termination or revocation; 

 

	 	(d)	Management Company’s gross negligence or willful misconduct; 

  

	 	(e)	any voluntary act of bankruptcy by Management Company, or any involuntary bankruptcy proceeding commenced against Management Company and not dismissed within sixty days of the commencement thereof; 

 

	 	(f)	Management Company’s breach of any provisions of this Agreement, where such breach has not been cured within thirty (30) days after the giving of written notice specifying the nature of the breach or such
longer period as may reasonably be required to diligently effect such cure; and/or 

  

	 	(g)	Any “Management Company Default” by Management Company under any of the Affiliated Agreements. 

7.2 Management Company Termination. Management Company shall have the right to terminate this Agreement without receiving any
fee or payment, if and when one of the following events occur (hereinafter “Tenant Default”), after which Management Company shall have the right – but not the obligation – to declare a termination of this Agreement in
accordance with the termination protocols set forth below: 
  

	 	(a)	appointment of a receiver or trustee to manage the assets of Tenant; 

  

	 	(b)	assignment for the benefit of creditors of the assets of Tenant, except Management Company shall agree to enter into any agreements which may be required on behalf of the Mortgagee in order for the Landlord to obtain
financing, so long as the Management Fees and other amounts due to Management Company set forth herein are not materially affected; 

  
 24 

	 	(c)	any voluntary act of bankruptcy by Tenant, or any involuntary proceeding commenced against Tenant and not dismissed within sixty days of the commencement thereof; 

 

	 	(d)	failure by Tenant to pay Management Company in accordance with Article 3 hereof within ten (10) calendar days after such amount becomes due; and/or 

 

	 	(e)	Tenant’s breach of any provision of this Agreement, where such breach has not been cured within thirty (30) days after the giving of written notice specifying the nature of the breach or such longer period as
may reasonably be required to diligently effect such cure. 

 7.3 Performance Termination. Commencing with the
expiration of Fiscal Year 2014, in the event that Adjusted NOI does not equal or exceed the Performance Threshold, then the Tenant shall have the option to terminate this Agreement by providing a ninety (90) day written notice to the Management
Company. To terminate this Agreement, Tenant must deliver written notice of such election to Management Company no later than sixty (60) days following Tenant’s receipt of the annual financial reports for such Fiscal Year. 

7.4 Notwithstanding anything else herein contained, neither party shall have the right to terminate this Agreement as a result of any of the
reasons set forth in Section 7.1(f) or in Section 7.2(e) above, if the event is caused by strikes, other labor disturbances, fires, windstorm, earthquake, arbitrary and capricious action by third party payors, war or other state of
national emergency, terrorism, or acts of God, in which the negligence of the party seeking to avoid termination is not a materially contributing factor to the occurrence of such event. 

7.5 At any time during the Term, Tenant shall have the right to terminate this Agreement for any reason or for no reason upon sixty
(60) days prior written notice to Management Company and payment to the Management Company, upon the effective date of such termination, of an amount equal to the lesser of (i) the average of the Management Fee for the prior three
(3) months multiplied by twenty-four (24) or (ii) the average of the Management Fee for the prior three (3) months multiplied by the number of months remaining in the Term. 

7.6 Tenant has the option to terminate this Agreement in the event Landlord sells the Facility to an unaffiliated third party who does not
elect to assume this Agreement, which termination shall require at least sixty (60) days prior written notice to Management Company. In such event, Tenant shall not be obligated to pay any fee or penalty as a result of such termination. 

7.7 Either party has the option to terminate this Agreement without payment of fee or penalty upon 30 days prior written notice to the other
upon the occurrence of either of the following events: 
  

	 	(a)	 The Facility or any material portion thereof is damaged or destroyed to the extent that in the written opinion of an independent architect or engineer
reasonably acceptable to both parties: (1) it is not practicable or desirable to rebuild, repair or restore the Facility to its condition immediately 

  
 25 

	 	
preceding such damage within a period of six months; or (2) the conduct of normal operations of the Facility is interrupted for a period of six months or more; or 

 

	 	(b)	Title to the temporary use of all or substantially all of the Facility is taken under the exercise of the power of eminent domain by the government authority or person, firm or corporation acting under governmental
authority which in the opinion of an independent architect or engineer reasonably acceptable to both parties, prevents or is likely to prevent the conduct of normal operations at the Facility for a period of at least six months. 

 

	 	(c)	If the termination occurs as a result of any of the events described in clause (a) of this Section 7.7, and if Tenant or any Affiliate thereof rebuilds, restores or otherwise rearranges the Facility and
recommences operations thereof, Tenant shall give Management Company the first option to manage the Facility under the same terms, conditions and fees as provided herein. 

7.8 Tenant, at the direction of a lender holding a first lien security instrument encumbering the Facility (“Lender”), or
Lender shall have the option to terminate this Agreement, without fee or penalty subject to the rights of the Management Company herein, upon ten (10) days’ prior written notice to the Management Company in connection with a foreclosure or
delivery of a deed in lieu that is related to any first lien security instrument held by Lender and encumbering the Facility, without any further obligation to the Management Company (except for any accrued management fees for previous periods which
have not been paid which shall be the obligation of Tenant but not Lender). 
 7.9 Automatic Termination. This Agreement shall
be deemed to be void ab initio in the event the Purchase and Sale Agreement terminates without Landlord acquiring the Facility. 
 7.10
Management Company’s Obligations After Termination or Expiration of Agreement. Upon the expiration or termination of this Agreement, Management Company shall, if requested: 

 

	 	(a)	deliver to Tenant, or such other person or persons designated by Tenant, copies of all books and records of the Facility and all funds in the possession of Management Company belonging to Tenant or received by
Management Company pursuant to the terms of this Agreement; 

  

	 	(b)	assign, transfer, or convey to Tenant, or such other person or persons designated by Tenant, all service contracts and personal property relating to or used in the operation and maintenance of the Facility, except any
personal property which was paid for and is owned by Management Company; and 

  

	 	(c)	remove, at Management Company’s expense, all signs that it may have placed at the Facility indicating that it is the Management Company of same and replace and restore the damage resulting therefrom.

  
 26 

 Upon any termination or the expiration pursuant to this Section, the obligations of the parties
hereto (except those specified as surviving) shall cease as of the date specified in the notice of termination, except that Management Company shall comply with the applicable provisions of this Section and shall be entitled to receive any and all
compensation which may be due Management Company hereunder through the effective date of such termination or expiration. 
 ARTICLE 8.

 MISCELLANEOUS COVENANTS 

8.1 Indemnification by Tenant. Subject to the limitations set forth in this Article 8, Tenant agrees to indemnify and hold
harmless Management Company against and with respect to any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties, and reasonable attorneys’ fees and
expenses, costs of litigation and costs of investigation (but not including any adjustments or credits expressly provided for in this Agreement) (together referred to as “Management Company Losses”): 

 

	 	(a)	resulting from any breach of a representation or warranty contained in Section 6.1 of this Agreement; 

  

	 	(b)	resulting from gross negligence or willful misconduct of Tenant in exercising its duties and responsibilities hereunder; 

  

	 	(c)	Tenant’s uncured breach of this Agreement; 

  

	 	(d)	arising out of or resulting from the ownership, operation, use or control of the Facility at any time during the Term, including without limitation, any and all liabilities which relate to events occurring during the
Term, except for those caused by or arising out of the gross negligence or willful misconduct of Management Company and except to the extent subject to Management Company’s indemnity of Tenant provided in Section 8.2 below;

  

	 	(e)	arising out of or resulting from any claim asserted by or on behalf of any Facility Employee for any act or omission occurring at any time during the Term, except for those caused by or arising out of the gross
negligence or willful misconduct of Management Company and except to the extent subject to Management Company’s indemnity of Tenant provided in Section 8.2 below; or 

 

	 	(f)	directly arising out of Landlord’s or Tenant’s failure to initiate Capital Expenditures previously requested by Management Company that results in personal injury of a resident of the Facility, provided that
Management Company’s gross negligence or willful misconduct was not a contributing factor with respect to such injury. 

  
 27 

 8.2 Indemnification by Management Company. Subject to the limitations set forth in
this Article 8, Management Company hereby agrees to indemnify and hold harmless Tenant at all times against and with respect to any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies,
including interest, penalties, and reasonable attorneys’ fees and expenses, costs of litigation and costs of investigation (but not including any adjustments or credits expressly provided for in this Agreement) (“Tenant
Losses”): 
  

	 	(a)	resulting from a material breach of a representation or warranty contained in Section 6.2 of this Agreement; 

  

	 	(b)	resulting from gross negligence or willful misconduct of Management Company in exercising its duties and responsibilities hereunder; or 

 

	 	(c)	Management Company’s uncured material breach of this Agreement. 

 8.3 Additional
Covenants of Management Company. Management Company hereby makes the additional covenants set forth in this Section, which are material covenants and upon which Tenant relies as an inducement to enter into this Agreement: 

 

	 	(a)	 Assignment. Management Company may not assign its rights and obligations hereunder without Tenant’s prior approval, which shall not be
unreasonably withheld as more particularly set forth in this Section 8.3(a). For purposes of this Section 8.3(a), a change in fifty percent (50%) or more in the ownership or control, whether direct or indirect, of
Management Company, shall be deemed to be an effective assignment of this Agreement requiring Tenant’s prior approval. Tenant shall consent to such an assignment or change in the ownership or control of Management Company in the event that the
proposed transferee or the transferee’s owners (collectively, the “Transferee”) meets the following criteria: (a) the Transferee has the financial capacity that equals or exceeds that which Management Company has as of the
date of this Agreement; (b) such Transferee is known to be of good character and in good standing in its current business dealings; (c) such Transferee is experienced in the senior living facility industry; and (d) has all licenses
and industry approvals that a manager must hold to manage the Facility. For purposes of clarification, it shall not be deemed unreasonable for Tenant to withhold consent to any such transfer if the Transferee lacks, in Tenant’s reasonable
opinion, (x) the financial wherewithal, (y) the character (which determination may be made, in whole or in part, based on Tenant’s or its Affiliate’s past dealings with the intended transferee), or (z) the quality and
relevant experience necessary to satisfy the obligations of Tenant hereunder. Any proposed transferee shall be required to provide adequate assurances to Tenant: (l) that Revenues shall not decline substantially after the date of such transfer;
(m) of the continuous operation of the Facility in strict accordance with the requirements of this Agreement; and (n) of such other matters as Tenant may reasonably require at the time of such transfer.

  
 28 

	 	
Notwithstanding the foregoing, any change in ownership or control that directly results from the death of any person with a controlling interest in Management Company shall not be subject to this
Section 8.3 provided that the individuals managing the day-to-day operations at the Facility remain substantially the same following the transfer of ownership or control and the new controlling person or owner satisfies the criteria
stated in items (x), (y), and (z) of this Section 8.3. Notwithstanding the foregoing, Management Company shall use commercially reasonable efforts to provide written notice to Tenant in the event that there is any change in the
ownership of Management Company, whether direct or indirect, regardless of whether such change constitutes a change of more than fifty percent (50%) of the direct or indirect ownership of Management Company, which notice shall be delivered no
later than five (5) Business Days following the effectuation of any such change. Management Company shall also provide Tenant with an updated organizational chart showing the direct and indirect ownership interests in and to Management
Company that is true, complete and correct within five (5) days of receipt of Tenant’s written request therefore. 

  

	 	(b)	Tenant Assignment. Management Company acknowledges and agrees that Tenant may assign its rights and obligations under this Agreement without prior approval of Management Company to an Affiliate of Tenant or to a
third party in connection with the sale of the Facility. 

  

	 	(c)	Transfer of Residents. Management Company agrees that it will not, as long as it manages for Tenant under this Agreement, without the prior written consent of the Tenant, encourage or solicit the transfer of any
resident of the Facility to another facility in which Management Company has an interest which is not owned by Tenant, except to one of the Existing Manger Facilities, but then only if the physical or medical condition of the resident indicates that
such a transfer would be appropriate. The Management Company may, however, freely discuss and not inhibit such a transfer when the original basis for the subject resident to be admitted to the Tenant’s Facility was to acquire temporary
accommodations until a room became available in another facility where the resident prefers to live. 

  

	 	(d)	 Non-Compete. Management Company hereby covenants and agrees that, for a period commencing on the Effective Date and ending one (1) year
following the expiration or earlier termination of this Agreement, Management Company shall not, and shall cause all of its Subsidiaries and Affiliates (each, a “Covered Person”) not to, either (1) Compete, directly or
indirectly, with the Facility by engaging, in any capacity, in operating or managing a senior living facility within five (5) driving miles of the Facility or (2) specifically solicit any employees of the Facility for employment at other
facilities owned or controlled by a Covered Person (provided nothing herein shall prevent a Covered Person from hiring any 

  
 29 

	 	
employee of the Facility who responds to a Covered Person’s advertisement or other notice that is not specifically targeted at employees of the Facility and nothing herein shall be deemed to
prohibit Manager from transferring employees between the Facility and one of the Existing Manager Facilities in the ordinary course of business). For purposes of this provision, “Compete” means (i) to, directly or indirectly,
conduct, facilitate, participate or engage in, or bid for or otherwise pursue a business, whether as a principal, sole proprietor, partner, stockholder, or agent of, or consultant to or manager for, any Person, or (ii) to, directly or
indirectly, have any ownership interest in any Person or business which conducts, facilitates, participates or engages in, or bids for or otherwise pursues a business, whether as a principal, sole proprietor, partner, stockholder, or agent of, or
consultant to or manager for, any such Person, in each case except as a passive investor with a non-controlling interest in such Person. Notwithstanding the foregoing, this Section 8.3(d) shall not apply to or in any way prohibit or
restrict any existing ownership interests or operations of a Covered Person as of the Effective Date, including but not limited to the Existing Manger Facilities. The parties recognize and acknowledge that a breach of this Section 8.3(d)
by Management Company or any of its Subsidiaries or Affiliates will cause irreparable and material loss and damage to Tenant and hereby consent to the granting by any court of competent jurisdiction of an injunction or other equitable relief,
without the necessity of posting a bond, cash or otherwise, and without the necessity of actual monetary loss being proved or Tenant’s establishing the inadequacy of any remedy at law, and order that the breach or threatened breach of such
provisions may be effectively restrained. The provisions of this Section 8.3(d) shall expressly survive the expiration or earlier termination of this Agreement. This provision, however, shall not apply following any termination of this
Agreement arising out of Section 7.2, Section 7.6 or if the Agreement is deemed void ab initio pursuant to Section 7.9. 

  

	 	(e)	 Non-Solicitation. Management Company agrees not to directly or indirectly solicit, divert or accept business from any customer, supplier,
distributor or manufacturer of or to the Facility to the detriment of Tenant or any Affiliate of Tenant, or otherwise interfere with the relationship between Tenant or any Affiliate of Tenant in connection with the Facility and any customer,
supplier, distributor or manufacturer of or to Tenant or any Affiliate of Tenant to the detriment of Tenant or any Affiliate of Tenant in connection with the Facility. The parties recognize and acknowledge that a breach of this
Section 8.3(e) by Management Company or any of its Subsidiaries or Affiliates will cause irreparable and material loss and damage to Tenant and hereby consent to the granting by any court of competent jurisdiction of an injunction or
other equitable relief, without the necessity of posting a bond, cash or otherwise, and without the necessity of actual monetary loss being proved or Tenant’s establishing the inadequacy of any remedy at law, and order that the breach or
threatened 

  
 30 

	 	
breach of such provisions may be effectively restrained. The provisions of and obligations under this Section 8.3(e) shall apply throughout the Term and shall expressly survive the
expiration or earlier termination of this Agreement for a period of one (1) year following such expiration or earlier termination. This provision, however, shall not apply following any termination of this Agreement arising out of
Section 7.2, Section 7.6 or if the Agreement is deemed void ab initio pursuant to Section 7.9. 

8.4 Additional Covenants of Tenant. Tenant hereby makes the additional covenants set forth in this Section, which are material
covenants and upon which Management Company relies as an inducement to enter into this Agreement: 
  

	 	(a)	Tenant will cooperate with Management Company in every reasonable respect and will furnish Management Company with all information required by it for the performance of its services hereunder and will permit Management
Company to examine and copy any data in the possession or control of Tenant affecting Management Company and/or operation of the Facility and will in every way cooperate with Management Company to enable Management Company to perform its services
hereunder. 

  

	 	(b)	Tenant will examine documents submitted by Management Company and render decisions pertaining thereto, when required, promptly to avoid unreasonable delay in the progress of Management Company’s work. Tenant agrees
that it will not unreasonably fail to execute and deliver all applications and other documents that may be deemed by Management Company to be necessary or proper to be executed by Tenant in connection with the Facility, subject to the limitations in
this Agreement with respect to the Budget and other rights of Tenant. 

  

	 	(c)	Tenant acknowledges that Management Company retains all ownership and other rights in all proprietary systems, manuals, materials, trade names, branding and other information, in whatever form, developed by Management
Company in the performance of its services hereunder (other than any trademarks, trade names or other intellectual property acquired by Tenant or Landlord in connection with the acquisition of the Facility), and nothing contained in this Agreement
shall be construed as a license or transfer of such information either during the Term or thereafter. Upon termination of this Agreement all such proprietary systems manuals, materials and other information in whatever form shall be removed from the
Facility by Management Company. 

  

	 	(d)	 Tenant shall comply with all Legal Requirements which are applicable to Tenant provided that Tenant, at its sole expense and without cost to
Management Company, shall have the right to contest by proper legal proceedings the validity, so far as applicable to it, of any such Legal Requirement, provided that such contest shall not result in a suspension of operations of the Facility.
Notwithstanding the foregoing, however, Tenant 

  
 31 

	 	
shall not be deemed to be in breach of the covenant contained in this clause (d) if Tenant’s failure to so comply is the result of a failure by Management Company to comply with any of
its obligations under this Agreement. 

 8.5 Binding Agreement. The terms, covenants, conditions, provisions and
agreements herein contained shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns. 
 8.6
Relationship of Parties. Nothing contained in this Agreement shall constitute or be construed to be or to create a partnership, joint venture or lease between Tenant and Management Company with respect to the Facility. Management
Company shall have no right or authority, express or implied, to commit or otherwise obligate Tenant in any manner whatsoever except to the extent specifically provided in this Agreement. 

8.7 Notices. 
  

	 	(a)	If Management Company shall desire the approval of Tenant to any matter, Management Company will give written notice by mail or email to Tenant that it requests such approval, specifying in the notice the matter as to
which approval is requested and reasonable detail respecting the matter. If Tenant shall not respond negatively in writing by mail or email and to the notice within 10 days after the sending thereof (unless some other period for response is
specified in this Agreement), Management Company may send a second such notice in such fashion to Tenant. If Tenant shall not respond negatively in writing by mail or email to the second notice within five days after the sending thereof (unless some
other period for response is specified in this Agreement), Tenant shall be deemed to have approved the matter referred to in the notice. Any provisions hereto to the contrary notwithstanding in emergency situations (as determined by Management
Company), Management Company shall not be required to seek or obtain Tenant’s approval for any actions or omissions which Management Company, in its sole judgment, deems necessary or appropriate to respond to such situations, provided
Management Company promptly thereafter reports such action or omission to Tenant in writing, by mail and by email. 

  
 32 

	 	(b)	All notices, demands and requests contemplated hereunder by either party to the other shall be in writing and shall be delivered by hand, transmitted by overnight courier or mailed, postage prepaid, registered or
certified mail, return receipt requested: 

  

	 	(i)	To Tenant, by addressing the same to: 

 CHP Legacy Ranch TX Tenant Corp. 

c/o CNL Healthcare Properties, Inc. 

CNL Center at City Commons 
 450
South Orange Avenue, 12th Floor 
 Orlando, Florida 32801-3736 

Attn: Holly J. Greer, Esq., SVP and General Counsel 

With a copy to: 
 Lowndes
Drosdick Doster Kantor and Reed, P.A. 
 215 North Eola Drive 

Post Office Box 2809 
 Orlando,
Florida 32802-2809 
 Attn: William T. Dymond, Jr., Esq. 
  

	 	(ii)	To Management Company, by addressing the same to: 

 JEA Senior Living 

12115 NE 99th Street, Suite 1800 

Vancouver, WA 98682 
 Attn: Cody
Erwin 
 With a copy to: 

Cherry Peterson Landry Albert LLP 

8350 N. Central Expressway, Suite 1500 

Dallas, Texas 75206 
 Attn:
Terry Landry, Esq. 
 or to such other address or to such other person as may be designated by notice given from time to time during the
Term by one party to the other. Any notice hereunder shall be deemed given three (3) days after mailing, if given by mailing in the manner provided above, or on the next Business Day following the date delivered or transmitted if given by hand
or overnight courier. 
 8.8 Entire Agreement: This Agreement contains the entire agreement between the parties hereto with
respect to the subject matter and no prior oral or written, and no contemporaneous oral representations or agreements between the parties with respect to the subject matter of this Agreement shall be of force and effect. Any additions, amendments or
modifications to this Agreement shall be of no force and effect unless in writing and signed by both Tenant and Management Company. 
 8.9
Governing Law. This Agreement has been executed and delivered in the State of Texas and all of the terms and provisions hereof and the rights and obligations of the parties hereto shall be construed and enforced in accordance with the
laws thereof. 

  
 33 

 8.10 Captions and Headings. The captions and headings throughout this Agreement are
for convenience and reference only, and the words contained therein shall in no way be held or deemed to define, limit, describe, explain, modify, amplify or add to the interpretation, construction or meaning of any provision of or the scope or
intent of this Agreement nor in any way affect this Agreement. 
 8.11 Non-Recourse Nature of Tenant’s Obligation.
Notwithstanding anything else herein contained, the obligations of Tenant hereunder shall be limited to its interest in the Facility and the revenues thereof and Receivables and accounts related thereto, and Management Company shall have no right to
proceed against any other assets of Tenant to satisfy any obligation of Tenant. No officer, director, or member of Tenant shall have any personal liability hereunder. 

8.12 HIPAA Compliance. The parties agree that, to the extent required by Legal Requirements, the services provided under this
Agreement will comply in all material respects with all federal and state-mandated regulations, rules, or orders applicable to the services provided herein, including but not limited to regulations promulgated under Title II, Subtitle F of the
Health Insurance Portability and Accountability Act (Public Law 104-91) (“HIPAA”). 
 8.13 Additional
Reports. In connection with Tenant’s responsibility to maintain effective internal controls over financial reporting and the Tenant’s requirements for complying with the Sarbanes Oxley Act of 2002, Management Company hereby agrees
to provide, as an Operating Expense, access and reasonable assistance as may be requested by Tenant that will allow Tenant to conduct activities necessary to satisfy its responsibilities, as previously outlined, including, without limitation, the
activities stipulated by the Public Company Accounting Oversight Board in its 2004-1, or other similarly promulgated guidance by other regulatory agencies. Management Company hereby agrees to provide, at Tenant’s request and as an Operating
Expense, (i) evidence of Management Company documented policies regarding “whistleblower” procedures and regarding the reporting of fraud or misstatements involving Facility financial reporting, and (ii) access for the Tenant to
conduct such procedures as Tenant reasonably considers necessary to make a determination that Management Company has maintained an effective system of internal controls over financial reporting. In addition to the foregoing, Management Company shall
provide Tenant with access to the books and records of the Facility in order to perform miscellaneous other internal audit procedures as deemed reasonably appropriate by Tenant. Notwithstanding the other terms, covenants and conditions of this
Section 8.13, the parties acknowledge and agree that Management Company shall have no responsibility or obligation with regard to Tenant’s obligations stipulated by the Public Company Accounting Oversight Board or under the Sarbanes
Oxley Act of 2002, except to comply with requests which may be made by Tenant under this Section 8.13. 
 (Signature Page to
Follow) 

  
 34 

 IN WITNESS WHEREOF, the parties hereto have executed, sealed and delivered this Agreement through
their duly authorized representatives, as of the day and year first above written. 
  

							
	TENANT:	 		 	 CHP LEGACY RANCH TX TENANT CORP., a

Delaware corporation

				
		 		 	By:	 	 /s/ Tracey B. Bracco

		 		 	Name:	 	Tracey B. Bracco
		 		 	Title:	 	Vice President
			
	MANAGEMENT COMPANY:	 		 	JERRY ERWIN ASSOCIATES, INC. (d/b/a JEA SENIOR LIVING), a Washington corporation
				
		 		 	By:	 	 /s/ W. Codi Erwin

		 		 	Name:	 	W. Codi Erwin
		 		 	Title:	 	Chief Operating Officer

 EXHIBIT A 

REQUIRED INSURANCE 

[Intentionally Omitted] 

EXHIBIT B 
 2014
Approved Operating Budget and Approved Capital Budget (attached) 
 [Intentionally Omitted] 

EXHIBIT C 

QUARTERLY CERTIFICATION 

[Intentionally Omitted] 

SCHEDULE 1.1 

AFFILIATED AGREEMENTS 

[Intentionally Omitted] 

SCHEDULE 6.2(E) 

MANAGEMENT COMPANY OWNERSHIP CHART 

[Intentionally Omitted]

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