Document:

Exhibit 4.2

 

FORM OF

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”), dated as of                , 2017, is entered into by and between Venator Materials PLC, an England and Wales public limited company (the “Company”), Huntsman International LLC, a Delaware limited liability company, and Huntsman (Holdings) Netherlands B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands (the “Initial Holders” and, together with the Company, the “Parties”).

 

WHEREAS, in connection with, and in consideration of, the transactions contemplated by the Company’s Registration Statement on Form S-1 (File No. 333-217753), the Initial Holders have requested, and the Company has agreed to provide, registration rights with respect to the Registrable Securities (as hereinafter defined) as set forth in this Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each party hereto, the Parties hereby agree as follows:

 

1.                                      Definitions.  As used in this Agreement, the following terms have the meanings indicated:

 

“Affiliate” means, with respect to any specified Person, a Person that directly or indirectly Controls or is Controlled by, or is under common Control with, such specified Person.

 

“Agreement” has the meaning set forth in the preamble.

 

“Automatic Shelf Registration Statement” means an “automatic shelf registration statement” as defined under Rule 405.

 

“Blackout Period” has the meaning set forth in Section 3(o).

 

“Board” means the board of directors of the Company.

 

“Business Day” means any day other than a Saturday, Sunday, any federal holiday or any other day on which banking institutions in the State of Texas or the State of New York are authorized or required to be closed by law or governmental action.

 

“Commission” means the Securities and Exchange Commission or any other federal agency then administering the Securities Act or Exchange Act.

 

“Company” has the meaning set forth in the preamble.

 

“Company Securities” means any equity interest of any class or series in the Company.

 

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“Control” (including the terms “Controls,” “Controlled by” and “under common Control with”) means the possession, direct or indirect, of the power to (a) direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise or (b) vote 10% or more of the securities having ordinary voting power for the election of directors of a Person.

 

“Demand Notice” has the meaning set forth in Section 2(a)(i).

 

“Demand Registration” has the meaning set forth in Section 2(a)(i)

 

“Effective Date” means the time and date that a Registration Statement is first declared effective by the Commission or otherwise becomes effective.

 

“Effectiveness Period” has the meaning set forth in Section 2(a)(ii).

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.

 

“Holder” means (a) each of the Initial Holders until the Initial Holders cease to hold any Registrable Securities, (b) any Affiliate of an Initial Holder if such Affiliate holds Registrable Securities and until such Affiliate ceases to hold any Registrable Securities and (c) any holder of Registrable Securities to whom registration rights conferred by this Agreement have been transferred in compliance with Section 8(e) hereof. For the avoidance of doubt, for purposes of this Agreement, the Company and the Initial Holders shall not be considered Affiliates of each other.

 

“Holder Indemnified Persons” has the meaning set forth in Section 6(a).

 

“Initial Holders” has the meaning set forth in the preamble.

 

“Initiating Holder” means the Holder delivering the Demand Notice or the Underwritten Offering Notice, as applicable.

 

“Lock-Up Period” has the meaning set forth in the underwriting agreement entered into by the Company in connection with the initial underwritten public offering of Ordinary Shares.

 

“Losses” has the meaning set forth in Section 6(a).

 

“Material Adverse Change” means (a) any general suspension of trading in, or limitation on prices for, securities on any national securities exchange or in the over-the-counter market in the United States; (b) the declaration of a banking moratorium or any suspension of payments in respect of banks in the United States; (c) a material outbreak or escalation of armed hostilities or other international or national calamity involving the United States or the declaration by the United States of a national emergency or war or a change in national or international financial, political or economic conditions; or (d) any event, change, circumstance or effect that is or is reasonably likely to be materially adverse to the business, properties, assets, liabilities, condition (financial or otherwise),

 

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operations, results of operations or prospects of the Company and its subsidiaries taken as a whole.”Minimum Amount” has the meaning set forth in Section 2(a)(i).

 

“Ordinary Shares” means the ordinary shares, par value $0.32 per share, of the Company.

 

“Parties” has the meaning set forth in the preamble.

 

“Person” means an individual, corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, estate, trust, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Piggyback Registration” has the meaning set forth in Section 2(c)(i).

 

“Piggyback Registration Notice” has the meaning set forth in Section 2(c)(i).

 

“Piggyback Registration Request” has the meaning set forth in Section 2(c)(i).

 

“Proceeding” means any action, claim, suit, proceeding or investigation (including a preliminary investigation or partial proceeding, such as a deposition) pending or, to the knowledge of the Company, to be threatened.

 

“Prospectus” means the prospectus included in a Registration Statement (including a prospectus that includes any information previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A, Rule 430B or Rule 430C promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Registration Expenses” has the meaning set forth in Section 5.

 

“Registrable Securities” means the Shares; provided, however, that Registrable Securities shall not include:  (a) any Shares that have been registered under the Securities Act and disposed of pursuant to an effective Registration Statement or otherwise transferred to a Person who is not entitled to the registration and other rights hereunder; (b) any Shares that have been sold or transferred by the Holder thereof pursuant to Rule 144 (or any similar provision then in force under the Securities Act) and the transferee thereof does not receive “restricted securities” as defined in Rule 144; and (c) any Shares that cease to be outstanding (whether as a result of repurchase and cancellation, conversion or otherwise).

 

“Registration Statement” means a registration statement of the Company in the form required to register under the Securities Act and other applicable law for the resale of the Registrable Securities in accordance with the intended plan of distribution of each Holder included therein, and including any Prospectus, amendments and supplements to

 

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each such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Requested Underwritten Offering” has the meaning set forth in Section 2(b).

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act.

 

“Rule 405” means Rule 405 promulgated by the Commission pursuant to the Securities Act.

 

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act.

 

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Selling Expenses” means all underwriting discounts and selling commissions applicable to the sale of Registrable Securities.

 

“Shares” means all Ordinary Shares held by the Holders (whether owned as of the date of this agreement or acquired after the date hereof) and any other equity interests of the Company or equity interests in any successor of the Company issued in respect of such shares by reason of or in connection with any share dividend, share split, combination, reorganization, recapitalization, conversion to another type of entity or similar event involving a change in the capital structure of the Company.

 

“Shelf Registration Statement” means a Registration Statement of the Company filed with the Commission on Form S-3 (or any successor form or other appropriate form under the Securities Act) for an offering to be made on a continuous or delayed basis pursuant to Rule 415 (or any similar rule that may be adopted by the Commission) covering the Registrable Securities, as applicable.

 

“Suspension Period” has the meaning set forth in Section 8(b).

 

“Trading Market” means the principal national securities exchange on which Registrable Securities are listed.

 

“Underwritten Offering” means an underwritten offering of Ordinary Shares for cash (whether a Requested Underwritten Offering or in connection with a public offering of Ordinary Shares by the Company, shareholders or both), excluding an offering relating solely to an employee benefit plan, an offering relating to a transaction on Form S-4 or S-8 or an offering on any registration statement form that does not permit secondary sales.

 

“Underwritten Offering Notice” has the meaning set forth in Section 2(b).

 

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“Underwritten Offering Piggyback Notice” has the meaning set forth in Section 2(c)(ii).

 

“Underwritten Offering Piggyback Request” has the meaning set forth in Section 2(c)(ii).

 

“Underwritten Piggyback Offering” has the meaning set forth in Section 2(c)(ii).

 

“VWAP”  means, as of a specified date and in respect of Registrable Securities, the volume weighted average price for such security on the Trading Market for the five trading days immediately preceding, but excluding, such date.

 

“WKSI” means a “well known seasoned issuer” as defined under Rule 405.

 

Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms; (b) references to Sections refer to sections of this Agreement; (c) the terms “include,” “includes,” “including” and words of like import shall be deemed to be followed by the words “without limitation”; (d) the terms “hereof,” “hereto,” “herein” or “hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement; (e) unless the context otherwise requires, the term “or” is not exclusive and shall have the inclusive meaning of “and/or”; (f) defined terms herein will apply equally to both the singular and plural forms and derivative forms of defined terms will have correlative meanings; (g) references to any law or statute shall include all rules and regulations promulgated thereunder, and references to any law or statute shall be construed as including any legal and statutory provisions consolidating, amending, succeeding or replacing the applicable law or statute; (h) references to any Person include such Person’s successors and permitted assigns; and (i) references to “days” are to calendar days unless otherwise indicated.

 

2.                                      Registration.

 

(a)                                 Demand Registration.

 

(i)                                     At any time after the expiration of the Lock-Up Period, the Initial Holders (or any transferee to which an Initial Holder has transferred in accordance with Section 8(e) rights under this Section 2(a)(i)) shall have the option and right, exercisable by delivering a written notice to the Company (a “Demand Notice”), to require the Company to, pursuant to the terms of and subject to the limitations contained in this Agreement, prepare and file with the Commission a Registration Statement registering the offering and sale of the number and type of Registrable Securities on the terms and conditions specified in the Demand Notice, which may include sales on a delayed or continuous basis pursuant to Rule 415 pursuant to a Shelf Registration Statement (a “Demand Registration”).  The Demand Notice must set forth the number of Registrable Securities that the Initiating Holder intends to include in such Demand Registration and the intended methods of disposition thereof.  Notwithstanding anything to the contrary herein, in no event shall the Company be required to effectuate a Demand Registration unless the Registrable Securities of the Holders to be included therein after compliance

 

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with Section 2(a)(ii) have an aggregate value of at least $25 million based on the VWAP (the “Minimum Amount”) as of the date of the Demand Notice.

 

(ii)                                  Within five Business Days (or if the Registration Statement will be a Shelf Registration Statement, within two Business Days) after the receipt of the Demand Notice, the Company shall give written notice of such Demand Notice to all Holders and, within 30 days after receipt of the Demand Notice (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case, within 90 days thereof), shall, subject to the limitations of this Section 2(a), file a Registration Statement in accordance with the terms and conditions of the Demand Notice, which Registration Statement shall cover all of the Registrable Securities that the Holders shall in writing request to be included in the Demand Registration (such request to be given to the Company within three Business Days (or if the Registration Statement will be a Shelf Registration Statement, within one Business Day) after receipt of notice of the Demand Notice given by the Company pursuant to this Section 2(a)(ii)).  The Company shall use reasonable best efforts to cause such Registration Statement to become and remain effective under the Securities Act until the earlier of (A) 180 days (or five years if a Shelf Registration Statement is requested) after the Effective Date or (B) the date on which all Registrable Securities covered by such Registration Statement have been sold (the “Effectiveness Period”); provided, however, that such period shall be extended for a period of time equal to the period the Holders refrain from selling any securities included in such Registration Statement at the request of an underwriter of the Company or the Company pursuant to this Agreement.

 

(iii)                               Subject to the other limitations contained in this Agreement, the Company is not obligated hereunder to effect (A) a Demand Registration within 90 days after the closing of any Underwritten Offering, (B) more than a total of eight Demand Registrations for which an Initial Holder (or any transferee thereof in accordance with Section 8(e)) is the Initiating Holder and (C) a subsequent Demand Registration pursuant to a Demand Notice if a Registration Statement covering all of the Registrable Securities held by the Initiating Holder shall have become and remains effective under the Securities Act and is sufficient to permit offers and sales of the number and type of Registrable Securities on the terms and conditions specified in the Demand Notice in accordance with the intended timing and method or methods of distribution thereof specified in the Demand Notice.  No Demand Registration shall be deemed to have occurred for purposes of this Section 2(a)(iii) if the Registration Statement relating thereto does not become effective or is not maintained effective for its entire Effectiveness Period, in which case the Initiating Holder shall be entitled to an additional Demand Registration in lieu thereof.  Further, a Demand Registration shall not constitute a Demand Registration of the Initiating Holder for purposes of this Section 2(a)(iii) if, as a result of Section 2(a)(vi), there is included in the Demand Registration less than the lesser of (x) Registrable Securities of the Initiating Holder having a VWAP measured on the effective date of the related Registration Statement of $25 million and (y) two-thirds of the number of Registrable Securities the Initiating Holder set forth in the applicable Demand Notice.

 

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(iv)                              A Holder may withdraw all or any portion of its Registrable Securities included in a Demand Registration from such Demand Registration at any time prior to the effectiveness of the applicable Registration Statement.  Upon receipt of a notice from the Initiating Holder that the Initiating Holder is withdrawing all of its Registrable Securities from the Demand Registration or a notice from a Holder to the effect that the Holder is withdrawing an amount of its Registrable Shares such that the remaining amount of Registrable Shares to be included in the Demand Registration is below the Minimum Amount, the Company shall cease all efforts to secure effectiveness of the applicable Registration Statement.  Such registration nonetheless shall be deemed a Demand Registration with respect to the Initiating Holder for purposes of Section 2(a)(iii) unless (A) the Initiating Holder shall have paid or reimbursed the Company for its pro rata share of all reasonable and documented out-of-pocket fees and expenses incurred by the Company in connection with the withdrawn registration of such Registrable Securities (based on the number of securities the Initiating Holder sought to register, as compared to the total number of securities included in such Demand Registration) or (B) the withdrawal is made following the occurrence of a Material Adverse Change or pursuant to the Company’s request for suspension pursuant to Section 3(o).

 

(v)                                 The Company may include in any such Demand Registration other Company Securities for sale for its own account or for the account of any other Person, subject to Section 2(a)(vi) and Section 2(c)(iii).

 

(vi)                              In the case of a Demand Registration not being underwritten, if the Initiating Holder advises the Company that in its reasonable opinion the aggregate number of securities requested to be included exceeds the number that can be included without being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, the Company shall include in such Demand Registration only that number of securities that in the reasonable opinion of the Initiating Holder will not have such adverse effect, with such number to be allocated as follows: (A) first, pro-rata among all Holders (including the Initiating Holder) that have requested to participate in such Demand Registration based on the relative number of Registrable Securities then held by each such Holder, (B) second, if there remains availability for additional securities to be included in such Demand Registration, the Company, and (C) third, if there remains availability for additional securities to be included in such Demand Registration, any other holders entitled to participate in such Demand Registration, if applicable, based on the relative number of securities such holder is entitled to include in such Demand Registration.

 

(vii)                           Subject to the limitations contained in this Agreement, the Company shall effect any Demand Registration on such appropriate registration form of the Commission (A) as shall be selected by the Company and (B) as shall permit the disposition of the Registrable Securities in accordance with the intended method or methods of disposition specified in the Demand Notice; provided that if the Company becomes, and is at the time of its receipt of a Demand Notice, a WKSI, the Demand Registration for any offering and selling of Registrable Securities shall be effected pursuant to an Automatic Shelf Registration Statement, which shall be on Form S-3 or any equivalent or successor form under the Securities Act (if available to the Company).

 

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If at any time a Registration Statement on Form S-3 is effective and a Holder provides written notice to the Company that it intends to effect an offering of all or part of the Registrable Securities included on such Registration Statement, the Company will amend or supplement such Registration Statement as may be necessary in order to enable such offering to take place.

 

(viii)                        Without limiting Section 3, in connection with any Demand Registration pursuant to and in accordance with this Section 2(a), the Company shall (A) promptly prepare and file or cause to be prepared and filed (1) such additional forms, amendments, supplements, prospectuses, certificates, letters, opinions and other documents, as may be necessary or advisable to register or qualify the securities subject to such Demand Registration, including under the securities laws of such jurisdictions as the Holders shall reasonably request; provided, however, that no such qualification shall be required in any jurisdiction where, as a result thereof, the Company would become subject to general service of process or to taxation or qualification to do business in such jurisdiction solely as a result of registration and (2) such forms, amendments, supplements, prospectuses, certificates, letters, opinions and other documents as may be necessary to apply for listing or to list the Registrable Securities subject to such Demand Registration on the Trading Market and (B) do any and all other acts and things that may be reasonably necessary or appropriate or reasonably requested by the Holders to enable the Holders to consummate a public sale of such Registrable Securities in accordance with the intended timing and method or methods of distribution thereof.

 

(ix)                              In the event a Holder transfers Registrable Securities included on a Registration Statement and such Registrable Securities remain Registrable Securities following such transfer, at the request of such Holder, the Company shall amend or supplement such Registration Statement as may be necessary in order to enable such transferee to offer and sell such Registrable Securities pursuant to such Registration Statement; provided that in no event shall the Company be required to file a post-effective amendment to the Registration Statement unless (A) such Registration Statement includes only Registrable Securities held by the Holder, Affiliates of the Holder or transferees of the Holder or (B) the Company has received written consent therefor from a Person for whom Registrable Securities have been registered on (but not yet sold under) such Registration Statement, other than the Holder, Affiliates of the Holder or transferees of the Holder.

 

(b)                                 Requested Underwritten Offering.  Any Holder then able to effectuate a Demand Registration pursuant to the terms of Section 2(a) (or who has previously effectuated a Demand Registration pursuant to Section 2(a) but has not engaged in an Underwritten Offering in respect of such Demand Registration) shall have the option and right, exercisable by delivering written notice to the Company of its intention to distribute Registrable Securities by means of an Underwritten Offering (an “Underwritten Offering Notice”), to require the Company, pursuant to the terms of and subject to the limitations of this Agreement, to effectuate a distribution of any or all of such Holder’s Registrable Securities by means of an Underwritten Offering pursuant to a new Demand Registration or pursuant to an effective Registration Statement covering such Registrable Securities (a “Requested Underwritten Offering”); provided, that if the Requested Underwritten Offering is pursuant to a new Demand Registration,

 

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then the Registrable Securities of such Initiating Holder requested to be included in such Requested Underwritten Offering have an aggregate value of at least equal to the Minimum Amount as of the date of such Underwritten Offering Notice, and if the Requested Underwritten Offering is pursuant to an effective Demand Registration, then the Registrable Securities of such Initiating Holder requested to be included in such Requested Underwritten Offering have an aggregate value at least equal to 25 percent of the Minimum Amount as of the date of such Underwritten Offering Notice.  The Underwritten Offering Notice must set forth the number of Registrable Securities that the Initiating Holder intends to include in such Requested Underwritten Offering. The managing underwriter or managing underwriters of a Requested Underwritten Offering shall be designated by the Company; provided, however, that such designated managing underwriter or managing underwriters shall be reasonably acceptable to the Holders.  Notwithstanding the foregoing, the Company is not obligated to effect a Requested Underwritten Offering within 90 days after the closing of an Underwritten Offering. Any Requested Underwritten Offering (other than the first Requested Underwritten Offering made in respect of a prior Demand Registration) shall constitute a Demand Registration of the Initiating Holder for purposes of Section 2(a)(iii) (it being understood that if requested concurrently with a  Demand Registration then, together, such Demand Registration and Requested Underwritten Offering shall count as one Demand Registration); provided, however, that a Requested Underwritten Offering shall not constitute a Demand Registration of the Initiating Holder for purposes of Section 2(a)(iii) if, as a result of Section 2(c)(iii)(A), the Requested Underwritten Offering includes less than the lesser of (i) Registrable Securities of the Initiating Holder having a VWAP measured on the effective date of the related Registration Statement of $25 million and (ii) two-thirds of the number of Registrable Securities the Initiating Holder set forth in the applicable  Underwritten Offering Notice.

 

(c)                                  Piggyback Registration and Piggyback Underwritten Offering.

 

(i)                                     If the Company shall at any time propose to file a registration statement under the Securities Act with respect to an offering of Ordinary Shares (other than a registration statement on Form S-4, Form S-8 or any successor forms thereto or filed solely in connection with an exchange offer or any employee benefit or dividend reinvestment plan and other than a Demand Registration), whether or not for its own account, then the Company shall promptly notify all Holders of such proposal reasonably in advance of (and in any event at least five Business Days, except if the registration statement will be a Shelf Registration Statement, at least two Business Days, before) the anticipated filing date (the “Piggyback Registration Notice”).  The Piggyback Registration Notice shall offer Holders the opportunity to include for registration in such registration statement the number of Registrable Securities as they may request in writing (a “Piggyback Registration”).  The Company shall use commercially reasonable efforts to include in each such Piggyback Registration such Registrable Securities for which the Company has received written requests for inclusion therein (“Piggyback Registration Request”) within three Business Days or, if the Piggyback Registration will be on a Shelf Registration Statement, within one Business Day, after sending the Piggyback Registration Notice.  Each Holder shall be permitted to withdraw all or part of such Holder’s Registrable Securities from a Piggyback Registration by giving written notice to the Company of its request to withdraw; provided that (A) such request must be made in writing prior to the effectiveness of such registration statement and (B) such withdrawal

 

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shall be irrevocable and, after making such withdrawal, a Holder shall no longer have any right to include Registrable Securities in the Piggyback Registration as to which such withdrawal was made.  Any withdrawing Holder shall continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of Ordinary Shares, all upon the terms and conditions set forth herein.

 

(ii)                                  If the Company shall at any time propose to conduct an Underwritten Offering (including a Requested Underwritten Offering), whether or not for its own account, then the Company shall promptly notify all Holders of such proposal reasonably in advance of (and in any event at least five Business Days, except if the Underwritten Offering will be made pursuant to a Shelf Registration Statement, at least two Business Days, before) the commencement of the offering, which notice shall set forth the principal terms and conditions of the issuance, including the proposed offering price or range of offering prices (if known), the anticipated filing date of the related registration statement (if applicable) and the number of Ordinary Shares that are proposed to be registered (the “Underwritten Offering Piggyback Notice”).  The Underwritten Offering Piggyback Notice shall offer Holders the opportunity to include in such Underwritten Offering (and any related registration, if applicable) the number of Registrable Securities as they may request in writing (an “Underwritten Piggyback Offering”); provided, however, that in the event that the Company proposes to effectuate the subject Underwritten Offering pursuant to an effective Shelf Registration Statement other than an Automatic Shelf Registration Statement, only Registrable Securities of Holders which are subject to an effective Shelf Registration Statement may be included in such Underwritten Piggyback Offering.  The Company shall use commercially reasonable efforts to include in each such Underwritten Piggyback Offering such Registrable Securities for which the Company has received written requests for inclusion therein (“Underwritten Offering Piggyback Request”) within three Business Days or, if such Underwritten Piggyback Offering will be made pursuant to a Shelf Registration Statement, within one Business Day after sending the Underwritten Offering Piggyback Notice.  Each Holder shall be permitted to withdraw all or part of such Holder’s Registrable Securities from an Underwritten Piggyback Offering at any time prior to the effectiveness of the applicable registration statement, and such Holder shall continue to have the right to include any Registrable Securities in any subsequent Underwritten Offerings, all upon the terms and conditions set forth herein.

 

(iii)                               If the managing underwriter or managing underwriters of an Underwritten Offering advise the Company and the Holders that in their reasonable opinion that the inclusion of all of the Holders’ Registrable Securities requested for inclusion in the subject Underwritten Offering (and any related registration, if applicable) (and any other Ordinary Shares proposed to be included in such offering) exceeds the number that can be included without being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, the Company shall include in such Underwritten Offering (and any related registration, if applicable) only that number of Ordinary Shares proposed to be included in such Underwritten Offering (and any related registration, if applicable) that, in the reasonable opinion of the managing underwriter or managing underwriters, will not have

 

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such adverse effect, with such number to be allocated as follows:  (A) in the case of a Requested Underwritten Offering, (1) first, pro-rata among all Holders (including the Initiating Holder) that have requested to include Registrable Securities in such Underwritten Offering based on the relative number of Registrable Securities then held by each such Holder, (2) second, if there remains availability for additional Ordinary Shares to be included in such Underwritten Offering, the Company, and (3) third, if there remains availability for additional Ordinary Shares to be included in such Underwritten Offering, any other holders entitled to participate in such Underwritten Offering, if applicable, based on the relative number of Ordinary Shares then held by each such holder; and (B) in the case of any other Underwritten Offerings, (x) first, to the Company, (y) second, if there remains availability for additional Ordinary Shares to be included in such Underwritten Offering, pro-rata among all Holders desiring to include Registrable Securities in such Underwritten Offering based on the relative number of Registrable Securities then held by each such Holder, and (z) third, if there remains availability for additional Ordinary Shares to be included in such registration, pro-rata among any other holders entitled to participate in such Underwritten Offering, if applicable, based on the relative number of Ordinary Shares then held by each such holder.  If any Holder disapproves of the terms of any such Underwritten Offering, such Holder may elect to withdraw therefrom by written notice to the Company and the managing underwriter(s) delivered on or prior to the time of the commencement of such offering.  Any Registrable Securities withdrawn from such underwriting shall be excluded and withdrawn from the registration.

 

(iv)                              The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2(c) at any time in its sole discretion whether or not any Holder has elected to include Registrable Securities in such Registration Statement.  The Registration Expenses of such withdrawn registration shall be borne by the Company in accordance with Section 4 hereof.

 

3.                                      Registration and Underwritten Offering Procedures.  The procedures to be followed by the Company and each Holder electing to sell Registrable Securities in a Registration Statement pursuant to this Agreement, and the respective rights and obligations of the Company and such Holders, with respect to the preparation, filing and effectiveness of such Registration Statement and the effectuation of any Underwritten Offering, are as follows:

 

(a)                                 In connection with a Demand Registration, the Company will, at least three Business Days prior to the anticipated filing of the Registration Statement and any related Prospectus or any amendment or supplement thereto (other than, after effectiveness of the Registration Statement, any filing made under the Exchange Act that is incorporated by reference into the Registration Statement), (i) furnish to such Holders copies of all such documents prior to filing and (ii) use commercially reasonable efforts to address in each such document when so filed with the Commission such comments as such Holders reasonably shall propose prior to the filing thereof.

 

(b)                                 In connection with a Piggyback Registration, Underwritten Piggyback Offering or a Requested Underwritten Offering, the Company will, at least three Business Days (or in the case of a Shelf Registration Statement or an offering that will be made pursuant to a

 

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Shelf Registration Statement, at least one Business Day) prior to the anticipated filing of any initial Registration Statement that identifies the Holders and any related Prospectus or any amendment or supplement thereto (other than amendments and supplements that do not materially alter the previous disclosure or do nothing more than name Holders and provide information with respect thereto), as applicable, furnish to such Holders copies of any such Registration Statement or related Prospectus or amendment or supplement thereto that identify the Holders and any related Prospectus or any amendment or supplement thereto (other than amendments and supplements that do not materially alter the previous disclosure or do nothing more than name Holders and provide information with respect thereto).  The Company will also  use commercially reasonable efforts to address in each such document when so filed with the Commission such comments as such Holders reasonably shall propose prior to the filing thereof.

 

(c)                                  The Company will use commercially reasonable efforts to as promptly as reasonably practicable (i) prepare and file with the Commission such amendments, including post-effective amendments, and supplements to each Registration Statement and the Prospectus used in connection therewith as may be necessary under applicable law to keep such Registration Statement continuously effective with respect to the disposition of all Registrable Securities covered thereby for its Effectiveness Period and, subject to the limitations contained in this Agreement, prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities held by the Holders; (ii) cause the related Prospectus to be amended or supplemented by any required prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; and (iii) respond to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably practicable provide such Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to such Holders as selling shareholders but not any comments that would result in the disclosure to such Holders of material and non-public information concerning the Company.

 

(d)                                 The Company will comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statements and the disposition of all Registrable Securities covered by each Registration Statement.

 

(e)                                  The Company will notify such Holders who are included in a Registration Statement as promptly as reasonably practicable: (i)(A) when a Prospectus or any prospectus supplement or post-effective amendment to a Registration Statement in which such Holder is included has been filed; (B) when the Commission notifies the Company whether there will be a “review” of the applicable Registration Statement and whenever the Commission comments in writing on such Registration Statement (in which case the Company shall provide true and complete copies thereof and all written responses thereto to each of such Holders that pertain to such Holders as selling shareholders); and (C) with respect to each applicable Registration Statement or any post-effective amendment thereto, when the same has been declared effective; (ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to such Registration Statement or Prospectus or for additional information that pertains to such Holders as sellers of Registrable Securities; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of such Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings

 

12

 

for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided, however, that no notice by the Company shall be required pursuant to this clause (v) in the event that the Company either promptly files a prospectus supplement to update the Prospectus or a Form 8-K or other appropriate Exchange Act report that is incorporated by reference into the Registration Statement, which in either case, contains the requisite information that results in such Registration Statement no longer containing any untrue statement of material fact or omitting to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading).

 

(f)                                   The Company will use commercially reasonable efforts to avoid the issuance of or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as promptly as reasonably practicable, or if any such order or suspension is made effective during any Blackout Period or Suspension Period, as promptly as reasonably practicable after such Blackout Period or Suspension Period is over.

 

(g)                                  During the Effectiveness Period, the Company will furnish to each such Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Holder (including those incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the Company will not have any obligation to provide any document pursuant to this clause that is available on the Commission’s EDGAR system.

 

(h)                                 The Company will promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) authorized by the Company for use and each amendment or supplement thereto as such Holder may reasonably request during the Effectiveness Period.  Subject to the terms of this Agreement, including Section 8(b), the Company consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

 

(i)                                     The Company will cooperate with such Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free of all restrictive legends indicating that the Registrable Securities are unregistered or unqualified for resale under

 

13

 

the Securities Act, Exchange Act or other applicable securities laws, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder may request in writing.  In connection therewith, if required by the Company’s transfer agent, the Company will promptly, after the Effective Date of the Registration Statement, cause an opinion of counsel as to the effectiveness of the Registration Statement to be delivered to and maintained with its transfer agent, together with any other authorizations, certificates and directions required by the transfer agent which authorize and direct the transfer agent to issue such Registrable Securities without any such legend upon sale by the Holder of such Registrable Securities under the Registration Statement.

 

(j)                                    Upon the occurrence of any event contemplated by Section 3(e)(v), as promptly as reasonably practicable, the Company will prepare a supplement or amendment, including a post-effective amendment, if required by applicable law, to the affected Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(k)                                 With respect to Underwritten Offerings, (i) the right of any Holder to include such Holder’s Registrable Securities in an Underwritten Offering shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein, (ii) each Holder participating in such Underwritten Offering agrees to enter into an underwriting agreement in customary form and sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Persons entitled to select the managing underwriter or managing underwriters hereunder and (iii) each Holder participating in such Underwritten Offering agrees to complete and execute all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents customarily and reasonably required under the terms of such underwriting arrangements.  The Company hereby agrees with each Holder that, in connection with any Underwritten Offering in accordance with the terms hereof, it will negotiate in good faith and execute all indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, including using all commercially reasonable efforts to procure customary legal opinions, auditor “comfort” letters.

 

(l)                                     For a reasonable period prior to the filing of any Registration Statement and throughout the Effectiveness Period, the Company will make available, upon reasonable notice at the Company’s principal place of business or such other reasonable place, for inspection during normal business hours by a representative or representatives of the selling Holders, the managing underwriter or managing underwriters and any attorneys or accountants retained by such selling Holders or underwriters, all such financial and other information and books and records of the Company, and cause the officers, employees, counsel and independent certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary (and in the case of counsel, not violate an attorney-client privilege in such counsel’s reasonable belief) to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that any information that is not generally publicly available at

 

14

 

the time of delivery of such information shall be kept confidential by such Persons unless disclosure of such information is required by court or administrative order or, in the opinion of counsel to such Person, law, in which case, such Person shall be required to give the Company written notice of the proposed disclosure prior to such disclosure and, if requested by the Company, assist the Company in seeking to prevent or limit the proposed disclosure.

 

(m)                             In connection with any Requested Underwritten Offering, the Company will use commercially reasonable efforts to cause appropriate officers and employees to be available, on a customary basis and upon reasonable notice, to meet with prospective investors in presentations, meetings and road shows.

 

(n)                                 Each Holder agrees to furnish to the Company any other information regarding the Holder and the distribution of such securities as the Company reasonably determines is required to be included in any Registration Statement or any Prospectus or prospectus supplement relating to an Underwritten Offering.

 

(o)                                 Notwithstanding any other provision of this Agreement, the Company shall not be required to file a Registration Statement (or any amendment thereto) or effect a Requested Underwritten Offering (or, if the Company has filed a Shelf Registration Statement and has included Registrable Securities therein, the Company shall be entitled to suspend the offer and sale of Registrable Securities pursuant to such Registration Statement) for a period of up to 60 days if (i) the Board determines that a postponement is in the best interest of the Company and its shareholders generally due to a pending transaction involving the Company (including a pending securities offering by the Company), (ii) the Board determines such registration would render the Company unable to comply with applicable securities laws or (iii) the Board determines such registration would require disclosure of material information that the Company has a bona fide business purpose for preserving as confidential (any such period, a “Blackout Period”); provided, however, that in no event shall any Blackout Period together with any Suspension Period exceed an aggregate of 120 days in any 12-month period.

 

(p)                                 In connection with an Underwritten Offering, the Company shall use all commercially reasonable efforts to provide to each Holder named as a selling securityholder in any Registration Statement a copy of any auditor “comfort” letters or customary legal opinions, in each case that have been provided to the managing underwriter or managing underwriters in connection with the Underwritten Offering, not later than the Business Day prior to the effective date of such Registration Statement.

 

4.                                      No Inconsistent Agreements; Additional Rights.  The Company shall not hereafter enter into, and is not currently a party to, any agreement with respect to its securities that is inconsistent in any material respect with, or superior to, the rights granted to the Holders by this Agreement.

 

5.                                      Registration Expenses.  All Registration Expenses incident to the Parties’ performance of or compliance with their respective obligations under this Agreement or otherwise in connection with any Demand Registration, Requested Underwritten Offering, Piggyback Registration or Underwritten Piggyback Offering (in each case, excluding any Selling Expenses) shall be borne by the Company, whether or not any Registrable Securities are sold

 

15

 

pursuant to a Registration Statement.  “Registration Expenses” shall include, without limitation, (i) all registration and filing fees (including fees and expenses (A) with respect to filings required to be made with the Trading Market and (B) in compliance with applicable state securities or “Blue Sky” laws), (ii) any stamp and other duties and share and other transfer taxes, if any, payable in connection with the offer and sale of Ordinary Shares, (iii) printing expenses (including expenses of printing certificates for Company Securities and of printing Prospectuses if the printing of Prospectuses is reasonably requested by a Holder of Registrable Securities included in the Registration Statement), (iv) messenger, telephone and delivery expenses, (v) fees and disbursements of counsel, auditors and accountants for the Company, (vi) Securities Act liability insurance, if the Company so desires such insurance, (vii) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, (viii) the reasonable fees and expenses of one law firm of national standing selected by the Holders owning the majority of the Registrable Securities to be included in any such registration or offering and (ix) all expenses relating to marketing the sale of the Registrable Securities, including expenses related to conducting a “road show.”  In addition, the Company shall be responsible for all of its expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including expenses payable to third parties and including all salaries and expenses of their officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on the Trading Market.

 

6.                                      Indemnification.

 

(a)                                 The Company shall indemnify and hold harmless each Holder, its Affiliates and each of their respective officers and directors and any agent thereof (collectively, “Holder Indemnified Persons”), to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, joint or several, costs (including reasonable costs of preparation and reasonable attorneys’ fees) and expenses, judgments, fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Holder Indemnified Person may be involved, or is threatened to be involved, as a party or otherwise, under the Securities Act or otherwise (collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which any Registrable Securities were registered, in any preliminary prospectus (if the Company authorized the use of such preliminary prospectus prior to the Effective Date), or in any summary or final prospectus or free writing prospectus (if such free writing prospectus was authorized for use by the Company) or in any amendment or supplement thereto (if used during the period the Company is required to keep the Registration Statement current), or arising out of, based upon or resulting from the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances in which they were made, not misleading; provided, however, that the Company shall not be liable to any Holder Indemnified Person to the extent that any such claim arises out of, is based upon or results from an untrue or alleged untrue statement or omission or alleged omission made in such Registration Statement, such preliminary, summary or final prospectus or free writing prospectus or such amendment or supplement, in reliance upon and in conformity with written information furnished to the

 

16

 

Company by or on behalf of such Holder Indemnified Person or any underwriter specifically for use in the preparation thereof.  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.  This indemnity shall be in addition to any liability the Company may otherwise have and shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder Indemnified Person or any indemnified party and shall survive the transfer of such securities by such Holder.  Notwithstanding anything to the contrary herein, this Section 6 shall survive any termination or expiration of this Agreement indefinitely.

 

(b)                                 In connection with any Registration Statement in which a Holder participates, such Holder shall, severally and not jointly, indemnify and hold harmless the Company, its Affiliates and each of their respective officers, directors and any agent thereof, to the fullest extent permitted by applicable law, from and against any and all Losses as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any such Registration Statement, in any preliminary prospectus (if used prior to the Effective Date of such Registration Statement), or in any summary or final prospectus or free writing prospectus or in any amendment or supplement thereto (if used during the period the Company is required to keep the Registration Statement current), or arising out of, based upon or resulting from the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances in which they were made, not misleading, but only to the extent that the same are made in reliance and in conformity with information relating to the Holder furnished in writing to the Company by such Holder for use therein.  This indemnity shall be in addition to any liability such Holder may otherwise have and shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any indemnified party. In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the proceeds received by such Holder from the sale of the Registrable Securities giving rise to such indemnification obligation

 

(c)                                  Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim or there may be reasonable defenses available to the indemnified party that are different from or additional to those available to the indemnifying party, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party.  If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld).  An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party there may be one or more legal or equitable defenses available to such indemnified party that are in addition to or may conflict with those available to another indemnified party with respect to such claim.  Failure to give prompt written notice shall not release the indemnifying party from its obligations hereunder.

 

17

 

(d)                                 If the indemnification provided for in this Section 6 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any Losses referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other, in connection with the untrue or alleged untrue statement of a material fact or the omission to state a material fact that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, that in no event shall any contribution by a Holder hereunder exceed the net proceeds from the offering received by such Holder.

 

7.                                      Facilitation of Sales Pursuant to Rule 144.  To the extent it shall be required to do so under the Exchange Act, the Company shall timely file the reports required to be filed by it under the Exchange Act or the Securities Act (including the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144), and shall take such further action as any Holder may reasonably request, all to the extent required from time to time to enable the Holders to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144.  Upon the request of any Holder in connection with that Holder’s sale pursuant to Rule 144, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements.

 

8.                                      Miscellaneous.

 

(a)                                 Remedies.  In the event of actual or potential breach by the Company of any of its obligations under this Agreement, each Holder, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement.  The Company agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

(b)                                 Discontinued Disposition.  Each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in clauses (ii) through (v) of Section 3(e), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the supplemental Prospectus or amended Registration Statement as contemplated by Section 3(j) or until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement (a “Suspension Period”).  The Company may provide appropriate stop orders to enforce the provisions of this Section 8(b).

 

18

 

(c)                                  Amendments and Waivers.  No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and Holders that hold a majority of the Registrable Securities as of the date of such waiver or amendment; provided, that any waiver or amendment that would have a disproportionate adverse effect on a Holder relative to the other Holders shall require the consent of such Holder.  The Company shall provide prior notice to all Holders of any proposed waiver or amendment.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any Party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(d)                                 Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail as specified in this Section 8(d) prior to 5:00 p.m. in the time zone of the receiving party on a Business Day, (ii) the Business Day after the date of transmission, if such notice or communication is delivered via facsimile or electronic mail as specified in this Agreement later than 5:00 p.m. in the time zone of the receiving party on any date, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight courier service or (iv) upon actual receipt by the Party to whom such notice is required to be given.  The address for such notices and communications shall be as follows:

 

	
 
    	
If   to the Company:
    	
 
    	
Venator   Materials PLC
    
	
 
    	
 
    	
 
    	
Attention:   Russ R. Stolle
   10001 Woodloch Forest Drive

The   Woodlands, TX 77380
   E-mail: russ_stolle@venatorcorp.com
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
With   copy to:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Vinson &   Elkins L.L.P.
   Attention: Jeffery B. Floyd
   1001 Fannin Street, Suite 2500
   Houston, Texas 77002
   E-mail: jfloyd@velaw.com
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
If   to any Person who is then the registered Holder:
    	
 
    	
To   the address of such Holder as indicated on the signature page of this   Agreement or, if different, as it appears in the applicable register for the   Registrable Securities or as may be designated in writing by such Holder in   accordance with this Section 8(d).
    

 

(e)                                  Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators, successors, legal representatives and permitted assigns.  Except as provided in this Section 8(e), this Agreement, and any rights or obligations hereunder, may not be assigned without the prior written consent of the Company and the Holders.  Notwithstanding anything in the foregoing to

 

19

 

the contrary, the rights of a Holder pursuant to this Agreement with respect to all or any portion of its Registrable Securities may be assigned without such consent (but only with all related obligations) with respect to such Registrable Securities (and any Registrable Securities issued as a dividend or other distribution with respect to, in exchange for or in replacement of such Registrable Securities) by such Holder to a transferee of such Registrable Securities; provided (i) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the Registrable Securities with respect to which such registration rights are being assigned and (ii) such transferee or assignee agrees in writing to be bound by and subject to the terms set forth in this Agreement.  The Company may not assign its rights or obligations hereunder without the prior written consent of the Holders.

 

(f)                                   No Third Party Beneficiaries.  Nothing in this Agreement, whether express or implied, shall be construed to give any Person, other than the parties hereto or their respective successors and permitted assigns, any legal or equitable right, remedy, claim or benefit under or in respect of this Agreement.

 

(g)                                  Execution and Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement.  In the event that any signature is delivered by facsimile or electronic mail transmission, such signature shall create a valid binding obligation of the Party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such signature delivered by facsimile or electronic mail transmission were the original thereof.

 

(h)                                 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York.  Each of the Parties irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in in the Borough of Manhattan in the City of New York and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served on each Party anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.  Each of the Parties irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  EACH OF THE PARTIES HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

(i)                                     Cumulative Remedies.  The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

(j)                                    Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and

 

20

 

the Parties shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the Parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(k)                                 Entire Agreement.  This Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior contracts or agreements with respect to the subject matter hereof and the matters addressed or governed hereby, whether oral or written.

 

(l)                                     Termination.  Except for Section 6, this Agreement shall terminate as to any Holder, when all Registrable Securities held by such Holder no longer constitute Registrable Securities.

 

[Signature page follows.]

 

21

 

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

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
VENATOR   MATERIALS PLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HOLDER:
    
	
 
    	
 
    
	
 
    	
HUNTSMAN   INTERNATIONAL LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
10003   Woodloch Forest Drive
    
	
 
    	
The   Woodlands, TX 77380
    
	
 
    	
Attention:
    
	
 
    	
E-mail:
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
HOLDER:
    
	
 
    	
 
    
	
 
    	
HUNTSMAN   (HOLDINGS) NETHERLANDS B.V.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
10003   Woodloch Forest Drive
    
	
 
    	
The   Woodlands, TX 77380
    
	
 
    	
Attention:
    
	
 
    	
E-mail:
    

 

Signature Page to Registration Rights AgreementExhibit 10.3

 

 

 

FORM OF

 

EMPLOYEE MATTERS AGREEMENT

 

BY AND BETWEEN

 

HUNTSMAN CORPORATION

 

AND

 

VENATOR MATERIALS PLC

 

DATED AS OF       , 2017

 

 

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I
    
	
DEFINITIONS
    
	
 
    
	
Section 1.1
    	
 
    	
Definitions
    	
 
    	
1
    
	
Section 1.2
    	
 
    	
Interpretation
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II
    
	
GENERAL PRINCIPLES FOR ALLOCATION   OF LIABILITIES
    
	
 
    
	
Section 2.1
    	
 
    	
General Principles
    	
 
    	
8
    
	
Section 2.2
    	
 
    	
Service Credit
    	
 
    	
10
    
	
Section 2.3
    	
 
    	
Plan Administration
    	
 
    	
10
    
	
Section 2.4
    	
 
    	
Retention of VMC Group Plans
    	
 
    	
10
    
	
Section 2.5
    	
 
    	
No Duplication or Acceleration of Benefits
    	
 
    	
11
    
	
Section 2.6
    	
 
    	
No Expansion of Participation
    	
 
    	
11
    
	
Section 2.7
    	
 
    	
VMC Group Decisions
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III
    
	
ASSIGNMENT OF EMPLOYEES
    
	
 
    
	
Section 3.1
    	
 
    	
Active Employees
    	
 
    	
11
    
	
Section 3.2
    	
 
    	
Employment Law Obligations
    	
 
    	
14
    
	
Section 3.3
    	
 
    	
Employee Records
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV
    
	
EQUITY AND LONG-TERM INCENTIVE   AWARDS
    
	
 
    
	
Section 4.1
    	
 
    	
General Principles
    	
 
    	
16
    
	
Section 4.2
    	
 
    	
Equity Award Treatment
    	
 
    	
17
    
	
Section 4.3
    	
 
    	
Section 16(b) of the Securities Exchange Act; Code   Sections 162(m) and 409A
    	
 
    	
19
    
	
Section 4.4
    	
 
    	
Liabilities for Settlement of Awards
    	
 
    	
20
    
	
Section 4.5
    	
 
    	
Form S-8
    	
 
    	
20
    
	
Section 4.6
    	
 
    	
Tax Reporting and Withholding for Awards
    	
 
    	
20
    
	
Section 4.7
    	
 
    	
Approval of VMC New Equity Plan
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE V
    
	
BONUS AND SHORT-TERM INCENTIVE   PLANS
    
	
 
    
	
Section 5.1
    	
 
    	
Establishment of VMC Short-Term Incentive Plans
    	
 
    	
21
    
	
Section 5.2
    	
 
    	
Treatment of Short-Term Incentives for Year of IPO
    	
 
    	
21
    
	
Section 5.3
    	
 
    	
Plan Liabilities
    	
 
    	
21
    

 

i

 

	
ARTICLE VI 
    
	
QUALIFIED DEFINED BENEFIT PLANS
    
	
 
    
	
Section 6.1
    	
 
    	
Retention of VMC Group Defined Benefit Plans
    	
 
    	
21
    
	
Section 6.2
    	
 
    	
Huntsman Defined Benefit Plans
    	
 
    	
22
    
	
Section 6.3
    	
 
    	
Huntsman Europe BVBA Belgium
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VII
    
	
QUALIFIED DEFINED CONTRIBUTION   PLANS
    
	
 
    
	
Section 7.1
    	
 
    	
Establishment of the VMC 401(k) Plan
    	
 
    	
22
    
	
Section 7.2
    	
 
    	
VMC Employee Account Balances
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VIII
    
	
NONQUALIFIED DEFERRED   COMPENSATION PLANS
    
	
 
    
	
Section 8.1
    	
 
    	
Establishment of VMC Deferred Compensation Plans
    	
 
    	
23
    
	
Section 8.2
    	
 
    	
Liability and Responsibility
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IX
    
	
WELFARE PLANS
    
	
 
    
	
Section 9.1
    	
 
    	
Establishment of VMC Welfare Plans
    	
 
    	
24
    
	
Section 9.2
    	
 
    	
Special Provisions Relating to Post-Retirement Welfare Plans
    	
 
    	
24
    
	
Section 9.3
    	
 
    	
Transitional Matters Under VMC Welfare Plans
    	
 
    	
24
    
	
Section 9.4
    	
 
    	
Benefit Elections and Designations and Continuity of Benefits
    	
 
    	
25
    
	
Section 9.5
    	
 
    	
Insurance Contracts
    	
 
    	
26
    
	
Section 9.6
    	
 
    	
Third-Party Vendors
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE X
    
	
WORKERS’ COMPENSATION AND   UNEMPLOYMENT COMPENSATION
    
	
 
    
	
Section 10.1
    	
 
    	
VMC Workers’ and Unemployment Compensation
    	
 
    	
27
    
	
Section 10.2
    	
 
    	
Assignment of Contribution Rights
    	
 
    	
27
    
	
Section 10.3
    	
 
    	
Collateral
    	
 
    	
27
    
	
Section 10.4
    	
 
    	
Cooperation
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE XI 
    
	
SEVERANCE
    
	
 
    
	
Section 11.1
    	
 
    	
Establishment of VMC Severance Program
    	
 
    	
28
    
	
Section 11.2
    	
 
    	
Liability for Severance
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE XII
    
	
BENEFIT ARRANGEMENTS AND OTHER   MATTERS
    
	
 
    
	
Section 12.1
    	
 
    	
Accrued Time Off
    	
 
    	
28
    
	
Section 12.2
    	
 
    	
Leaves of Absence
    	
 
    	
28
    

 

ii

 

	
Section 12.3
    	
 
    	
Restrictive Covenants in Employment and Other Agreements
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE XIII
    
	
GENERAL PROVISIONS
    
	
 
    
	
Section 13.1
    	
 
    	
Preservation of Rights to Amend
    	
 
    	
29
    
	
Section 13.2
    	
 
    	
Confidentiality
    	
 
    	
29
    
	
Section 13.3
    	
 
    	
Administrative Complaints/Litigation
    	
 
    	
29
    
	
Section 13.4
    	
 
    	
Reimbursement and Indemnification
    	
 
    	
30
    
	
Section 13.5
    	
 
    	
Costs of Compliance with Agreement
    	
 
    	
30
    
	
Section 13.6
    	
 
    	
Fiduciary Matters
    	
 
    	
30
    
	
Section 13.7
    	
 
    	
Entire Agreement
    	
 
    	
30
    
	
Section 13.8
    	
 
    	
Binding Effect; No Third-Party Beneficiaries; Assignment
    	
 
    	
30
    
	
Section 13.9
    	
 
    	
Amendment; Waivers
    	
 
    	
31
    
	
Section 13.10
    	
 
    	
Remedies Cumulative
    	
 
    	
31
    
	
Section 13.11
    	
 
    	
Notices
    	
 
    	
31
    
	
Section 13.12
    	
 
    	
Counterparts
    	
 
    	
31
    
	
Section 13.13
    	
 
    	
Severability
    	
 
    	
31
    
	
Section 13.14
    	
 
    	
Governing Law
    	
 
    	
32
    
	
Section 13.15
    	
 
    	
Dispute Resolution
    	
 
    	
32
    
	
Section 13.16
    	
 
    	
Performance
    	
 
    	
32
    
	
Section 13.17
    	
 
    	
Construction
    	
 
    	
32
    
	
Section 13.18
    	
 
    	
Effect if IPO Does Not Occur
    	
 
    	
32
    

 

iii

 

EMPLOYEE MATTERS AGREEMENT

 

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

 

R E C I T A L S

 

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

 

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

 

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

 

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

 

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

 

ARTICLE I
 DEFINITIONS

 

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

 

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

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“VMC VWAP” means the volume weighted average price of VMC Ordinary Shares for a ten (10) trading day period, starting with the opening of trading on the first (1st) trading day following the Effective Time to the closing of trading on the tenth (10th) trading day following the Effective Time.

 

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

 

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

 

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

 

“Welfare Plan” means, where applicable, a “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental, vision, and mental health and substance abuse), disability benefits, or life, accidental death and disability, and business travel insurance, pre-tax premium conversion benefits, dependent care assistance programs, employee assistance programs, paid time off programs, contribution funding toward a health savings account or flexible spending accounts.

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

ARTICLE II
 GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

 

Section 2.1                                    General Principles.

 

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

 

(b)                                 Certain Obligations of the Huntsman Group.  Except as otherwise provided in this Agreement, effective as of the Plan Transfer Date (or such later Employee Transfer Date), one or more members of the VMC Group (as determined by VMC) shall assume or continue the sponsorship of, and no member of the Huntsman Group shall have any further Liability with respect to or under, the following agreements, obligations and Liabilities, and VMC shall indemnify each member of the Huntsman Group, and the officers, directors, and employees of each member of the Huntsman Group, and hold them harmless with respect to such agreements, obligations or Liabilities:

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(c)                                  Certain Obligations of the Huntsman Group.  Except as otherwise provided in this Agreement, effective as of the Plan Transfer Date (or such later Employee Transfer Date), no member of the VMC Group shall have any further Liability for, and Huntsman shall indemnify each member of the VMC Group, and the officers, directors, and employees of each member of the VMC Group, and hold them harmless with respect to any and all Liabilities and obligations whatsoever with respect to, claims made by or with respect to any 

 

9

 

Huntsman Group Employees and Former Huntsman Group Employees in connection with any employee benefit plan, program or policy not otherwise retained or assumed by any member of the VMC Group pursuant to this Agreement, including such Liabilities relating to actions or omissions of or by any member of the Huntsman Group or any officer, director, employee or agent thereof on, prior to or after the Effective Time.

 

Section 2.2                                    Service Credit.

 

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

 

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

 

Section 2.3                                    Plan Administration.

 

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

 

(b)                                 Participant Elections and Beneficiary Designations.  All participant elections and beneficiary designations made under any Huntsman Benefit Plan with respect to which Assets or Liabilities are transferred or allocated to plans maintained by a member of the VMC Group in accordance with this Agreement shall continue in effect under the applicable VMC Benefit Plan, including deferral, investment and payment form elections, dividend elections, coverage options and levels, beneficiary designations and the rights of alternate payees under qualified domestic relations orders, to the extent allowed by applicable Law.

 

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

 

10

 

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

 

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

 

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

 

ARTICLE III

 

ASSIGNMENT OF EMPLOYEES

 

Section 3.1                                    Active Employees.

 

(a)                                 VMC Group Employees.  Except as otherwise set forth in this Agreement, effective as of the Employee Transfer date, the employment of each individual (i) who is employed by VMC as of immediately prior to the Employee Transfer Date or (ii) whose employment duties are to be exclusively related to the VMC Business immediately following the Employee Transfer Date (collectively, the “VMC Group Employees”) shall continue with a member of the VMC Group or shall be assigned and transferred to a member of the VMC Group (in each case, with such member as determined by VMC). Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation, if any, as may be necessary to reflect such assignments and transfers.

 

(b)                                 Huntsman Group Employees.  Except as otherwise set forth in this Agreement, the employment of each individual who is employed by a member of the Huntsman Group and is not a VMC Group Employee (collectively, the “Huntsman Group Employees”) shall continue with a member of the Huntsman Group or shall be assigned and transferred to a

 

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member of the Huntsman Group (in each case as determined by Huntsman). Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation, if any, as may be necessary to reflect such assignments and transfers.

 

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

 

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

 

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

 

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

 

(g)                                  Payroll Issues and Related Tax Matters.  Huntsman, or an appropriate Huntsman Entity, shall bear responsibility for payroll taxes, fringe benefit tax obligations, proper withholding, document distribution and reporting to the appropriate governmental authorities for each Huntsman Group Employee. With respect to the portion of the 2017 calendar year prior to the applicable Employee Transfer Date for each VMC Group Employee, Huntsman, or an appropriate Huntsman Entity, shall bear responsibility for payroll taxes, fringe benefit tax obligations, proper withholding, document distribution and reporting to the appropriate governmental authorities for each VMC Group Employee, including, without limitation, providing a Form W-2 to the applicable VMC Group Employees that are also Former Huntsman Employees following the end of the year in which the IPO occurs. With respect to the portion of the 2017 calendar year that begins on and after the applicable Employee Transfer Date for each

 

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VMC Group Employee, VMC, or an appropriate VMC Entity, shall bear responsibility for payroll taxes, fringe benefit tax obligations, proper withholding, document distribution and reporting to the appropriate governmental authorities for each VMC Group Employee.   The Parties agree that neither VMC nor an applicable VMC Entity will be treated as a “successor employer” of Huntsman or an applicable Huntsman Entity. Unless otherwise required by applicable Law, the entity for which the relevant employee is currently employed or, if such individual is not currently employed by Huntsman or VMC, was most recently employed at the time of the vesting, exercise, disqualifying disposition, payment or other relevant taxable event, as appropriate, in respect of equity awards and other compensation shall be entitled to claim any income tax deduction in respect of such equity awards and other compensation on its respective tax return associated with such event. Unless otherwise prohibited by applicable Law, any members of the Huntsman Group and the VMC Group may enter into separate reimbursement agreements regarding income tax deductions if the Parties mutually agree that the deduction should have gone to an entity other than the entity that received the income tax deduction on its respective tax return.

 

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

 

(i)                                     Collective Bargaining Agreements.  Schedule 3.1(i) sets forth a list of collective bargaining agreements, collective agreements, trade union or works council agreements and any other contractual or other obligation to a labor union, trade union, works council or other representative of any VMC Group Employee relating to the VMC Group Employees in effect on the date of this Agreement (collectively, the “Collective Bargaining Agreements”). Prior to the Plan Transfer Date, Huntsman and VMC will take or cause to be taken all actions necessary (if any) to cause a VMC Entity to continue sponsorship of the Collective Bargaining Agreements. Huntsman and VMC shall cooperate in submitting and completing any required successor employer application, or similar application or notice, in order to effectuate any such assignment. Nothing in this Agreement is intended to alter the provisions of any Collective Bargaining Agreement or modify in any way the obligations owed to the Employees covered by any such agreement. The Huntsman Group shall have no Liability for or under any collective bargaining agreements, collective agreements, multiemployer plans, pension and welfare plans and arrangements, labor union, trade union or works council agreements that related to the VMC Business and which were entered into with any member of the Huntsman Group, any union, works council, or representative of any VMC Group Employee, and such agreements, plans, and arrangements (if any) shall, to the extent permitted under applicable Law and their respective terms, be assigned from the applicable Huntsman Entity to VMC (or a VMC Entity designated by VMC) effective as of the Plan Transfer Date and VMC shall cooperate in submitting and completing any required successor employer application, or similar application or notice, in order to effectuate any such assignment.

 

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Section 3.2                                    Employment Law Obligations.

 

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

 

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

 

Section 3.3                                    Employee Records.

 

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

 

(b)                                 Transfer of Personnel Records and Authorization.  Subject to any limitations imposed by applicable Law, as soon as administratively feasible following the Employee Transfer Date, Huntsman shall transfer and assign to VMC all personnel records, all immigration documents, including I-9 forms and work authorizations, all payroll deduction authorizations and elections, whether voluntary or mandated by Law, including but not limited to W-4 forms and deductions for benefits under the applicable VMC Benefit Plans and all absence management records, Family and Medical Leave Act and employee leave records, insurance beneficiary designations, flexible spending account enrollment confirmations, attendance, and return to work information (“Benefit Management Records”).  Subject to any limitations imposed by applicable Law, Huntsman, however, may retain originals of, copies of, or access to Benefit Management Records as long as necessary to provide services to VMC (acting pursuant to the Transition Services Agreement).  VMC will use Benefit Management Records for lawful purposes only, including calculation of withholdings from wages and personnel management.  It is understood that following the IPO, Huntsman records so transferred and assigned may be maintained by VMC (acting directly or through one of its Subsidiaries) pursuant to VMC’s applicable records retention policy.

 

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

 

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

 

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

 

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

 

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

 

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ARTICLE IV
 EQUITY AND LONG-TERM INCENTIVE AWARDS

 

Section 4.1                                    General Principles.

 

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

 

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

 

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

 

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

 

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

 

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Section 4.2                                    Equity Award Treatment.

 

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

 

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

 

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

 

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

 

(e)                                  Huntsman Restricted Stock Units.  Each holder of a Huntsman RSU that is outstanding and unvested immediately prior to the Effective Time shall, upon the Effective Time, have their rights to the Huntsman RSU cancelled and the participants rights under each such Huntsman RSU shall be converted into the right to receive a VMC Restricted Stock Unit. The number of VMC RSUs to be granted to each applicable participant shall be determined by multiplying the number of Huntsman Common Stock subject to the Huntsman RSU by the Equity Award Ratio (rounded to the nearest whole share of VMC Ordinary Shares); provided, however, that in the event that the Huntsman RSU was subject to one or more performance conditions immediately prior to the Effective Time, the target number of Huntsman Common Stock subject to the Huntsman RSU shall first be adjusted by the performance factor actually achieved immediately prior to the Effective Time to determine the number of Huntsman RSUs that are deemed to be “earned” immediately prior to the Effective Time (the “Adjusted Huntsman RSUs”), and the number of VMC RSUs to be granted to each applicable participant shall then be determined by multiplying the number of Huntsman Common Stock subject to the Adjusted Huntsman RSU by the Equity Award Ratio (rounded to the nearest whole share of VMC Ordinary Shares).   Each VMC RSU described in the preceding sentences shall be subject to the same terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding Huntsman RSU immediately prior to the Effective Time; provided, however, that in the event that the original Huntsman RSUs were subject to one or more performance conditions prior to the conversions described in this paragraph, the corresponding new VMC RSU shall not be subject to any performance conditions from and after the Effective Time, and provided, further, however, that from and after the Effective Time, the time-based vesting conditions of each VMC RSU shall be determined based upon continued service with the VMC Group rather than the Huntsman Group, and provided, further, however, that in the event that applicable laws and regulations of the United Kingdom require that an award granted pursuant to the VMC New Equity Plan must be accompanied by a nil or nominal payment for such award by the participant, or such award must be settled in cash rather than VMC Common Stock, VMC shall design the applicable VMC RSUs in a matter that complies with such a requirement.

 

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

 

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

 

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

 

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

 

(b)                                 Code Sections 162(m) and 409A.  Notwithstanding anything in this Agreement to the contrary (including the treatment of supplemental and deferred compensation plans, outstanding long-term incentive awards and annual incentive awards as described herein), Huntsman and VMC agree to negotiate in good faith regarding the need for any treatment 

 

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different from that otherwise provided herein to ensure that (i) a federal income tax deduction for the payment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation is, to the extent prescribed under the terms of the applicable plan and award agreement, not limited by reason of Section 162(m) of the Code, and (ii) the treatment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation does not cause the imposition of a penalty tax under Section 409A of the Code.

 

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

 

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

 

Section 4.6                                    Tax Reporting and Withholding for Awards.  Huntsman (or one of its Subsidiaries) will be responsible for all income, payroll, or other tax reporting related to income of Huntsman Group Employees from equity-based and other long-term incentive awards outstanding pursuant to the Huntsman Equity Plans, and VMC (or one of its Subsidiaries) will be responsible for all income, payroll, or other tax reporting related to income of VMC Group Employees from equity-based and other long-term incentive awards granted under the Huntsman Equity Plans and the VMC New Equity Plan. Further, Huntsman (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings for Huntsman Group Employees who hold equity-based and other long-term incentive awards outstanding pursuant to the Huntsman Equity Plans to each applicable taxing authority, and VMC (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings for VMC Group Employees who hold equity-based and other long-term incentive awards granted under the Huntsman Equity Plans and the VMC New Equity Plan to each applicable taxing authority.  Huntsman and VMC acknowledge and agree that the Parties will cooperate with each other and with third-party providers to effectuate withholding and remittance of taxes, as well as required tax reporting, in a timely, efficient, and appropriate manner.

 

Section 4.7                                    Approval of VMC New Equity Plan.  Not later than the Effective Time, VMC shall, or shall have caused an appropriate Huntsman Entity or VMC Entity to, have adopted the VMC New Equity Plan.

 

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ARTICLE V
 BONUS AND SHORT-TERM INCENTIVE PLANS

 

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

 

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

 

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

 

ARTICLE VI
 QUALIFIED DEFINED BENEFIT PLANS

 

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

 

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

 

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

 

ARTICLE VII
 QUALIFIED DEFINED CONTRIBUTION PLANS

 

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

 

Section 7.2                                    VMC Employee Account Balances.

 

(a)                                 VMC or the appropriate VMC Entity shall cause the VMC 401(k) Plan to accept the plan-to-plan transfer of VMC Group Employees’ accounts from the Huntsman Salary 

 

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Deferral Plan (including any notes representing participant loans).  VMC Group Employees’ accounts from the Huntsman Salary Deferral Plan will be mapped over from the Huntsman Salary Deferral Plan to the same investments under the VMC 401(k) Plan.

 

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

 

ARTICLE VIII
 NONQUALIFIED DEFERRED COMPENSATION PLANS

 

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

 

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

 

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ARTICLE IX
 WELFARE PLANS

 

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

 

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

 

Section 9.3                                    Transitional Matters Under VMC Welfare Plans.

 

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

 

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

 

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

 

Section 9.4            Benefit Elections and Designations and Continuity of Benefits.

 

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

 

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

 

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

 

(ii)           If the aggregate reimbursement payouts made to VMC Welfare Plan Participants prior to the Plan Transfer Date (or such later Employee Transfer Date) from the applicable Huntsman Welfare Plan flexible spending accounts during the plan year in which the IPO occurs are less than the aggregate accumulated contributions to such accounts made by such VMC Welfare Plan Participants prior to the Plan Transfer 

 

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Date for such plan year, Huntsman shall cause an amount equal to the amount by which such contributions are in excess of such reimbursement payouts to be transferred to VMC (or a VMC Entity designated by VMC) by wire transfer of immediately available funds as soon as practicable, but in no event later than 45 days, following the Plan Transfer Date (or later Employee Transfer Date).

 

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

 

(c)           Additional Details Regarding Health Savings Accounts. Pursuant to Section 9.1, on or prior to the Plan Transfer Date, VMC shall, or shall cause another VMC Entity to, establish and adopt VMC Welfare Plans which will provide health savings account benefits to VMC Welfare Plan Participants. To the extent any VMC Welfare Plan provides or constitutes a health savings account (each a “VMC HSA”), such VMC Welfare Plan shall be effective as of the Plan Transfer Date. It is the intention of the Parties that all activity under a VMC Welfare Plan Participant’s health savings account with Huntsman for the year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs) be treated instead as activity under the corresponding VMC HSA.  Accordingly, (i) any period of participation by a VMC Welfare Plan Participant in a Huntsman health savings account during the year in which the IPO occurs (or in the case of an Employee Transfer Date subsequent to the IPO, for the plan year in which the applicable Employee Transfer Date occurs) (the “HSA Participation Period”) will be deemed a period when the VMC Welfare Plan Participant participated in the corresponding VMC HSA; (ii) all expenses incurred during the HSA Participation Period will be deemed incurred while the VMC Welfare Plan Participant’s coverage was in effect under the corresponding VMC HSA; and (iii) all elections and reimbursements made with respect to an HSA Participation Period under a Huntsman health savings account will be deemed to have been made with respect to the corresponding VMC HSA.

 

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

 

Section 9.5            Insurance Contracts.  To the extent any Huntsman Welfare Plan is funded through the purchase of an insurance contract or is subject to any stop loss contract, Huntsman and VMC will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for VMC (except for design changes and to the extent changes are 

 

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required under applicable state insurance Laws or filings by the respective insurers) and to maintain any pricing  discounts or other preferential terms for both Huntsman and VMC for a reasonable term. Neither Party shall be liable for failure to obtain such insurance contracts, pricing discounts, or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 9.5.

 

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

 

ARTICLE X
 WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION

 

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

 

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

 

Section 10.3          Collateral.  From and after the Effective Time, VMC (acting directly or through a member of the VMC Group) shall be responsible for providing all collateral required 

 

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by insurance carriers in connection with workers’ compensation claims for which Liability is allocated to the VMC Group under this Article X.

 

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

 

ARTICLE XI
 SEVERANCE

 

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

 

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

 

ARTICLE XII
 BENEFIT ARRANGEMENTS AND OTHER MATTERS

 

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

 

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

 

Section 12.3          Restrictive Covenants in Employment and Other Agreements.  To the fullest extent permitted by the agreements described in this Section 12.3 and applicable Law, Huntsman shall assign, or cause an applicable member of the Huntsman Group to assign (including through notification to employees, as applicable), to VMC or a member of the VMC Group, as designated by VMC, all agreements containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the Huntsman Group and a VMC Group Employee, with such assignment to be effective as of the Plan Transfer Date (or later Employee Transfer Date). To the extent that assignment of such agreements is not permitted, effective as of the Plan Transfer Date (or later Employee Transfer Date), each member of the VMC Group shall be considered to be a successor to each member of the Huntsman Group for purposes of, and a third-party beneficiary with respect to, all agreements containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the Huntsman Group and a VMC Group Employee, 

 

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such that each member of the VMC Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations of the VMC Group; provided,  however, that in no event shall Huntsman be permitted to enforce such restrictive covenant agreements against VMC Group Employees for action taken in their capacity as employees of a member of the VMC Group.

 

ARTICLE XIII
 GENERAL PROVISIONS

 

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

 

Section 13.2          Confidentiality.  Each Party agrees that any information conveyed or otherwise received by or on behalf of a Party in conjunction herewith that is not otherwise public through no fault of such Party is confidential and is subject to the terms of the confidentiality provisions set forth herein and in the Separation Agreement.

 

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

 

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

 

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

 

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

 

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

 

Section 13.8          Binding Effect; No Third-Party Beneficiaries; Assignment.  This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon any third parties any remedy, claim, Liability, reimbursement, cause of action, or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions 

 

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of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent contractor or any other individual associated therewith shall be regarded  for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other Party.

 

Section 13.9          Amendment; Waivers.  No change or amendment may be made to this Agreement except by an instrument in writing signed on behalf of each of the Parties. Any Party may, at any time, (i) extend the time for the performance of any of the obligations or other acts of the other Party, (ii) waive any inaccuracies in the representations and warranties of the other Party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance by the other Party with any of the agreements, covenants, or conditions contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the Party to be bound thereby. No failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant, or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercises thereof or of any other right.

 

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

 

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

 

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

 

Section 13.13       Severability.  If any term or other provision of this Agreement or the Schedules attached hereto is determined by a non-appealable decision by a court, administrative agency, or arbitrator to be invalid, illegal, or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the court, administrative agency, or arbitrator shall interpret this Agreement so as to effect the original 

 

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intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement  is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

 

Section 13.14       Governing Law.  This Agreement (and any claims or disputes arising out of or related hereto or thereto or to the transactions contemplated hereby and thereby or to the inducement of any Party to enter herein and therein, whether for breach of contract, tortious conduct, or otherwise and whether predicated on common law, statute, or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware irrespective of the choice of laws principles of the State of Delaware, including all matters of validity, construction, effect, enforceability, performance, and remedies.

 

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

 

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

 

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

 

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

 

[Signature Page Follows]

 

32

 

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

 

	
 
    	
HUNTSMAN   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VENATOR MATERIALS   PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

SCHEDULE 3.1(i) COLLECTIVE BARGAINING AGREEMENTS

 

Schedule 3.1(i)

 

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

 

S-1

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