Document:

ex1016amendedandrestated

  #90914078v33         AMENDED AND RESTATED   EMPLOYEE MATTERS AGREEMENT  by and between    FMC CORPORATION    and    LIVENT CORPORATION    Dated as of February 4, 2019    

 

  i  #90914078v33   TABLE OF CONTENTS    PAGE  ARTICLE I  DEFINITIONS  Section 1.01.  Certain Definitions........................................................................................1  ARTICLE II  GENERAL ALLOCATION OF LIABILITIES; INDEMNIFICATION  Section 2.01.  Allocation of Employee-Related Liabilities ..................................................8  Section 2.02.  Indemnification .............................................................................................9  ARTICLE III  EMPLOYEES AND CONTRACTORS; EMPLOYMENT AND  COLLECTIVE BARGAINING AGREEMENTS  Section 3.01.  Transfers of Employment; Post-IPO Transfers ............................................9  Section 3.02.  Contractors .................................................................................................12  Section 3.03.  Assumption of Collective Bargaining Agreements; Labor Relations .........12  Section 3.04.  Assumption of Individual Lithium Employee Agreements and Lithium  Contractor Agreements ..............................................................................12  Section 3.05.  Assignment of Specified Rights ...................................................................13  ARTICLE IV  PLANS  Section 4.01.  Plan Participation .......................................................................................13  Section 4.02.  Adoption and Administration of Lithium Plans; Service Credit .................13  ARTICLE V  RETIREMENT PLANS  Section 5.01.  401(k) Plan..................................................................................................14  Section 5.02.  Non-U.S. Defined Contribution Plans ........................................................15  Section 5.03.  Parent U.S. Qualified Pension Plan ...........................................................15  Section 5.04.  Non-U.S. Pension Plans ..............................................................................16  Section 5.05.  Parent NQ Savings Plan .............................................................................16  Section 5.06.  Parent NQ Pension Plan .............................................................................17  ARTICLE VI  HEALTH AND WELFARE PLANS; PAID TIME OFF AND VACATION  Section 6.01.  Cessation of Participation in Parent H&W Plans; Participation in  Lithium H&W Plans ...................................................................................17  Section 6.02.  Assumption of Health and Welfare Plan Liabilities ...................................18  

 

ii  #90914078v33   Section 6.03.  Post-Retirement Health and Welfare Benefits ............................................19  Section 6.04.  Flexible Spending Account Plan Treatment ...............................................19  Section 6.05.  Workers’ Compensation Liabilities ............................................................19  Section 6.06.  Vacation and Paid Time Off .......................................................................19  Section 6.07.  COBRA and HIPAA ....................................................................................20  ARTICLE VII  INCENTIVE COMPENSATION  Section 7.01.  Cash Incentive and Cash Bonus Plans .......................................................20  ARTICLE VIII  TREATMENT OF OUTSTANDING EQUITY AWARDS  Section 8.01.  No Adjustments at the IPO ..........................................................................21  Section 8.02.  RSU and Banked PRSU Distribution Adjustments .....................................21  Section 8.03.  Unbanked PRSU Distribution Adjustments ................................................22  Section 8.04.  Stock Option Distribution Adjustments .......................................................24  Section 8.05.  Equity Award Adjustment Illustrations .......................................................25  Section 8.06.  Miscellaneous Terms and Actions; Tax Reporting and Withholding .........25  ARTICLE IX  PERSONNEL RECORDS; PAYROLL AND TAX WITHHOLDING  Section 9.01.  Personnel Records ......................................................................................28  Section 9.02.  Payroll; Tax Reporting and Withholding ...................................................28  ARTICLE X  NON-U.S. EMPLOYEES AND EMPLOYEE PLANS  Section 10.01.  Special Provisions for Employees and Employee Plans Outside of  the United States ........................................................................................28  ARTICLE XI  GENERAL AND ADMINISTRATIVE  Section 11.01.  Sharing of Participant Information ..........................................................29  Section 11.02.  Cooperation ..............................................................................................29  Section 11.03.  Notices of Certain Events..........................................................................29  Section 11.04.  No Third Party Beneficiaries ....................................................................30  Section 11.05.  Fiduciary Matters .....................................................................................30  Section 11.06.  Consent of Third Parties ...........................................................................30  Section 11.07.  Sponsored Employees ...............................................................................31  ARTICLE XII  DISPUTE RESOLUTION  Section 12.01.  General .....................................................................................................31  

 

iii  #90914078v33   ARTICLE XIII  MISCELLANEOUS  Section 13.01.  General .....................................................................................................31  Section 13.02.  Entire Agreement; References ..................................................................31  

 

    #90914078v33   AMENDED AND RESTATED EMPLOYEE MATTERS AGREEMENT  This AMENDED AND RESTATED EMPLOYEE MATTERS AGREEMENT,  dated as of February 4, 2019 is by and between FMC CORPORATION, a Delaware  corporation (“Parent”), and LIVENT CORPORATION, a Delaware corporation (the  “Company”).  R E C I T A L S  WHEREAS, Parent and the Company have entered into the Separation and  Distribution Agreement, dated as of October 15, 2018 (the “Separation and Distribution  Agreement”), pursuant to which Parent and the Company will effectuate the Transactions;  WHEREAS, as contemplated by the Separation and Distribution Agreement,  Parent and the Company previously entered into the Employee Matters Agreement (the  “Prior Agreement”), dated as of October 15, 2018 (the “Original Effective Date”), for  the purpose of allocating between them the Assets, Liabilities and responsibilities with  respect to certain employee matters (including employee compensation and benefit plans  and programs);   WHEREAS, Parent and the Company desire to amend and restate the Prior  Agreement as set forth herein, and this Agreement shall supersede and replace the Prior  Agreement in its entirety as if it were in effect as of the Original Effective Date;   WHEREAS, Parent and the Company have agreed that, except as otherwise  specifically provided herein, the general approach and philosophy underlying this  Agreement is to (a) allocate Assets, Liabilities and responsibilities to the Lithium Group  (as opposed to the Parent Group) to the extent they relate to current or former employees  and other service providers primarily related to the Lithium Assets or the Lithium Business  and (b) allocate Assets, Liabilities and responsibilities (other than those described in clause  (a) above) to the Parent Group (as opposed to the Lithium Group); and  WHEREAS, except as expressly set forth herein, this Agreement is not intended to  address the matters specifically and expressly covered by the Plan of Reorganization (as  defined in the Separation and Distribution Agreement).  NOW, THEREFORE, in consideration of the mutual agreements, provisions and  covenants contained in this Agreement, the parties, intending to be legally bound, hereby  agree as follows:  ARTICLE I  DEFINITIONS  Section 1.01. Certain Definitions.  For purposes of this Agreement, the following  terms shall have the following meanings; provided that capitalized terms used but not  otherwise defined in this Section 1.01 shall have the respective meanings ascribed to such  terms in the Separation and Distribution Agreement:  

 

  2  #90914078v33   “2018 Cash Bonuses” has the meaning set forth in Section 7.01 hereto.  “Adjusted Banked Parent PRSU” means any Banked Parent PRSU adjusted  pursuant to Section 8.02(b) or Section 8.02(c) hereto.  “Adjusted Company Stock Value” means the product of (a) the Company Stock  Value multiplied by (b) the Distribution Ratio.   “Adjusted Parent Awards” means, collectively, the Adjusted Parent Options, the  Adjusted Banked Parent PRSUs, the Adjusted Unbanked Parent PRSUs and the Adjusted  Parent RSUs.   “Adjusted Parent Option” means any Parent Option adjusted pursuant to Section  8.04(b) hereto.  “Adjusted Parent Post-Distribution Stock Value” means the amount equal to the  Parent Pre-Distribution Stock Value less the Adjusted Company Stock Value.  “Adjusted Parent RSU” means any Parent RSU adjusted pursuant to Section  8.02(b) or Section 8.02(c) hereto.  “Adjusted Unbanked Parent PRSU” means any Unbanked Parent PRSU adjusted  pursuant to Section 8.03(b) or Section 8.03(c) hereto.  “Agreement” means this Amended and Restated Employee Matters Agreement,  including all of the schedules and exhibits hereto, as may be amended from time to time in  accordance with its terms.   “Banked Parent PRSU” means any Parent PRSU (or portion thereof) for which  the applicable performance period has been completed as of the applicable date of  determination.  “Benefits Commencement Date” means (a) January 1, 2019 (in the case of U.S.  Lithium Participants) and (b) the Separation Date (in the case of Non-U.S. Lithium  Participants).    “Benefits Transition Period” has the meaning set forth in Section 5.01(c) hereto.  “COBRA” means the continuation coverage requirements for “group health plans”  under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as codified  in Section 4980B of the Code and Sections 601 through 608 of ERISA.   “Collective Bargaining Agreements” means any and all agreements,  memorandums of understanding, contracts, letters, side letters and contractual obligations  of any kind, nature and description, oral or written, that have been entered into between or  that involve or apply to any employer and any labor organization, union, employee  association, agency or employee committee or plan.  

 

  3  #90914078v33   “Company” has the meaning set forth in the preamble hereto.  “Company Stock Value” means the value of a share of Company Common Stock  that will be determined by the Parent Board (or an appropriate committee thereof), in its  sole discretion, in a manner intended to preserve the aggregate value of the applicable  outstanding equity awards.  “Distribution Effective Time” means the effective time of the Distribution.     “Delayed Transfer Employee” means any Lithium Inactive Employee, New  Lithium Employee, Transferred Lithium Employee or Sponsored Employee (to the extent  applicable).  “Delayed Transfer Period” has the meaning set forth in Section 3.01(b) hereto.   “Distribution Ratio” means the number of shares of Company Common Stock  distributed in the Distribution in respect of one share of Parent Common Stock.  “Employee Plan” means any (a) “employee benefit plan” as defined in Section 3(3)  of ERISA, (b) compensation, employment, consulting, severance, termination protection,  change in control, transaction bonus, retention or similar plan, agreement, arrangement,  program or policy or (c) other plan, agreement, arrangement, program or policy providing  for compensation, bonuses, profit-sharing, equity or equity-based compensation or other  forms of incentive or deferred compensation, vacation benefits, insurance (including any  self-insured arrangement), medical, dental, vision, prescription or fringe benefits, life  insurance, relocation or expatriate benefits, perquisites, disability or sick leave benefits,  employee assistance program, supplemental unemployment benefits or post-employment  or retirement benefits (including compensation, pension, health, medical or insurance  benefits), in each case whether or not written.  “ERISA” means the Employee Retirement Income Security Act of 1974, as  amended, together with the rules and regulations promulgated thereunder.  “Former Parent Employee” means each individual who, as of immediately prior  to the Distribution Effective Time, is a former employee of any member of the Parent  Group (other than any individual who was last actively employed primarily with respect to  the Lithium Assets or the Lithium Business).   “H&W Plan” means any Parent H&W Plan or Lithium H&W Plan.  “HIPAA” means the health insurance portability and accountability requirements  for “group health plans” under the Health Insurance Portability and Accountability Act of  1996, as amended, together with the rules and regulations promulgated thereunder.  “Lithium 401(k) Plan” means any Lithium Plan that is a defined contribution plan  intended to qualify under Section 401(a) of the Code.  

 

  4  #90914078v33   “Lithium Awards” means, collectively, the Lithium Options, the Lithium PRSUs  and the Lithium RSUs.  “Lithium Assumed Employee Liabilities” has the meaning set forth in Section  2.01(b) hereto.  “Lithium CBA” means any Collective Bargaining Agreement covering Lithium  Employees or Lithium Contractors, as applicable, as listed on Schedule I hereto.   “Lithium Change in Control” has the meaning set forth in Section 8.06(b) hereto.  “Lithium Contractor” means each individual independent contractor or consultant  who, as of the Separation Effective Time, primarily provides or provided services with  respect to the Lithium Assets or the Lithium Business.  “Lithium Employee” means each (a) individual who, as of the Separation  Effective Time, is (i) actively employed primarily with respect to the Lithium Assets or the  Lithium Business by any member of the Parent Group or the Lithium Group or (ii) (x) an  inactive employee (including any employee on short- or long-term  disability leave or other  authorized leave of absence) or (y) a former employee and, in each case, who was last  actively employed primarily with respect to the Lithium Assets or the Lithium Business by  any member of the Parent Group or the Lithium Group, (b) Transferred Lithium Employee  or (c) New Lithium Employee.  “Lithium Equity Plan” has the meaning set forth in Section 8.06(a) hereto.  “Lithium FSAs” has the meaning set forth in Section 6.04 hereto.  “Lithium H&W Plan” means any Lithium Plan that is (a) an “employee welfare  benefit plan” or “welfare plan” (as defined under Section 3(1) of ERISA) or (b) a similar  plan that is sponsored, maintained, administered, contributed to or entered into outside of  the United States. For the avoidance of doubt, Lithium FSAs are Lithium H&W Plans.   “Lithium Inactive Employee” has the meaning set forth in Section 3.01(b) hereto.  “Lithium NQ Savings Plan” has the meaning set forth in Section 5.05(a) hereto.  “Lithium Option” has the meaning set forth in Section 8.04(a) hereto.  “Lithium Participant” means any individual who is a Lithium Employee or  Lithium Contractor, and any beneficiary, dependent, or alternate payee of such individual,  as the context requires.  “Lithium Plan” means any Employee Plan that (a) is or was sponsored, maintained,  administered, contributed to or entered into by any member of the Lithium Group, whether  before, as of or after the Separation Date or (b) for which Liabilities transfer to any member  of the Lithium Group under this Agreement or pursuant to applicable Law as a result of the  Distribution.  

 

  5  #90914078v33   “Lithium PRSU” means each award of restricted share units with respect to  Company Common Stock granted under the Lithium Equity Plan pursuant to Section  8.03(b) that is subject to performance-based vesting conditions.   “Lithium RSU” has the meaning set forth in Section 8.02(a) hereto.  “Lithium Specified Rights” means any and all rights to enjoy, benefit from or  enforce any and all restrictive covenants, including covenants relating to non-disclosure,  non-solicitation, non-competition, confidentiality or Intellectual Property, applicable or  related, in whole or in part, to the Lithium Assets or the Lithium Business pursuant to any  Employee Plan covering or with any Lithium Employee or Lithium Contractor and to  which any member of the Lithium Group or Parent Group is a party; provided that, with  respect to any Intellectual Property existing, conceived, created, developed or reduced to  practice prior to the Separation Effective Time, the foregoing rights to enjoy, benefit from  or enforce any restrictive covenants related to Intellectual Property is limited to those  restrictive covenants related to Intellectual Property included in the Lithium Assets.  “New Lithium Employee” means any individual who is hired following the  Separation Effective Time to primarily provide services to the Lithium Assets or the  Lithium Business.  “Non-U.S. Lithium Participant” means any Lithium Participant who is not a U.S.  Lithium Participant.   “Parent” has the meaning set forth in the preamble hereto.  “Parent 401(k) Plan” means any Parent Plan that is a defined contribution plan  intended to qualify under Section 401(a) of the Code.  “Parent Awards” means, collectively, the Parent Options, the Banked Parent  PRSUs, the Unbanked Parent PRSUs and the Parent RSUs.   “Parent Bonus Plan” has the meaning set forth in Section 7.01 hereto.  “Parent CBA” means any Collective Bargaining Agreement covering Parent  Employees or Parent Contractors, as applicable.   “Parent Change in Control” has the meaning set forth in Section 8.06(b) hereto.  “Parent Contractor” means each individual independent contractor or consultant  (other than a Lithium Contractor) of any member of the Parent Group, or solely for  purposes of Article VIII, any non-employee director of the Parent Board.   “Parent Employee” means each individual who, as of the Separation Effective  Time, is (a) not a Lithium Employee and (b) either (i) actively employed by any member  of the Parent Group or (ii) (x) an inactive employee (including any employee on short- or  long-term disability leave or other authorized leave of absence) or (y) a former employee,  in each case, of any member of the Parent Group.  

 

  6  #90914078v33   “Parent Equity Plan” means the FMC Corporation Incentive Compensation and  Stock Plan.   “Parent Executive Severance Plan” means the FMC Corporation Executive  Severance Plan.  “Parent FSA” means any Parent Plan that is a flexible spending account for health  and dependent care expenses.  “Parent H&W Plan” means any Parent Plan that is (a) an “employee welfare  benefit plan” or “welfare plan” (as defined under Section 3(1) of ERISA) or (b) a similar  plan that is sponsored, maintained, administered, contributed to or entered into outside of  the United States.  For the avoidance of doubt, Parent FSAs are Parent H&W Plans.     “Parent NQ Pension Plan” means the FMC Corporation Salaried Employees’  Equivalent Retirement Plan.   “Parent NQ Savings Plan” means the FMC Corporation Non-Qualified Savings  and Investment Plan.  “Parent Option” means each option to acquire Parent Common Stock granted  under the Parent Equity Plan.   “Parent Participant” means any individual who is a Parent Employee or Parent  Contractor, and any beneficiary, dependent, or alternate payee of such individual, as the  context requires.  “Parent Plan” means any Employee Plan (other than a Lithium Plan) sponsored,  maintained, administered, contributed to or entered into by any member of the Parent  Group.  For the avoidance of doubt, no Lithium Plan is a Parent Plan.    “Parent Pre-Distribution Stock Value” means the value of a share of Parent  Common Stock that will be determined by the Parent Board (or an appropriate committee  thereof), in its sole discretion, in a manner intended to preserve the aggregate value of the  applicable outstanding equity awards.  “Parent PRSU” means each award of restricted share units with respect to Parent  Common Stock granted under the Parent Equity Plan subject to performance-based vesting  conditions.   “Parent Retained Employee Liabilities” has the meaning set forth in Section  2.01(a) hereto.  “Parent Retiree H&W Plan” means any Parent H&W Plan that provides or  promises any post-retirement health, medical or life insurance or similar benefits (whether  insured or self-insured).  

 

  7  #90914078v33   “Parent RSU” means each award of restricted share units with respect to Parent  Common Stock granted under the Parent Equity Plan (other than Parent PRSUs).   “Parent Specified Rights” means any and all rights to enjoy, benefit from or  enforce any and all restrictive covenants, including covenants relating to non-disclosure,  non-solicitation, non-competition, confidentiality or Intellectual Property, pursuant to any  Employee Plan covering or with any Lithium Employee, Lithium Contractor, Parent  Employee or Parent Contractor and to which any member of the Lithium Group or Parent  Group is a party (other than Lithium Specified Rights).  “Parent U.S. Qualified Pension Plan” means the FMC Corporation Employees’  Retirement Program, Salaried and Nonunion Hourly Employees’ Retirement Plan (Part I).  “Personnel Records” has the meaning set forth in Section 9.01 hereto.  “Separation Date” has the meaning set forth in the Separation and Distribution  Agreement.   “Separation Effective Time” means the closing of the IPO.   “Separation and Distribution Agreement” has the meaning set forth in the  recitals hereto.  “Sponsored Employee” means any Lithium Employee working on a visa or work  permit sponsored by Parent or a Parent Group member as of immediately prior to the  Separation Effective Time.  “Transferred Lithium Employee” means any individual who (a) did not become  a Lithium Employee effective on or before the Separation Effective Time and (b) Parent  and the Company mutually agree following the Separation Effective Time should have his  or her employment transferred from the Parent Group to the Lithium Group.  “UK Pension Plan” means the FMC Chemicals Pension Plan (together with all  obligations related thereto, including obligations associated with the winding-up of such  plan). For the avoidance of doubt, the UK Pension Plan is a Lithium Plan.    “Unbanked Parent PRSU” means any Parent PRSU (or portion thereof) for which  the applicable performance period has not been completed as of the applicable date of  determination.  “UK DC Plan” has the meaning set forth in Section 5.02(a) hereto.  “U.S. Lithium Employee” means any Lithium Employee who is employed (or, in  the case of former employees, last actively employed) in the United States.  “U.S. Lithium Participant” means any Lithium Participant employed or engaged  (or, in the case of former employees, individual independent contractors or consultants, last  actively employed or engaged, as applicable) in the United States.  

 

  8  #90914078v33   ARTICLE II  GENERAL ALLOCATION OF LIABILITIES; INDEMNIFICATION  Section 2.01. Allocation of Employee-Related Liabilities.  (a) Subject to the terms and conditions of this Agreement, effective as of the  Separation Effective Time, Parent shall, or shall cause the applicable member of the Parent  Group to, assume and retain, and no member of the Lithium Group shall have any further  obligation with respect to, any and all Liabilities (i) relating to, arising out of or in respect  of any Parent Participant or any Parent Plan, in each case, other than any Lithium Assumed  Employee Liabilities, or (ii) attributable to actions expressly specified to be taken by any  member of the Parent Group under this Agreement, in each case, (x) whether arising  before, on or after the Separation Date, (y) whether based on facts occurring before, on or  after the Separation Date and (z) irrespective of which Person such Liabilities are asserted  against or which Person such Liabilities attached to as a matter of applicable Law or  contract or (iii) expressly assumed or retained, as applicable, by any member of the Parent  Group pursuant to this Agreement (collectively, “Parent Retained Employee  Liabilities”).  For the avoidance of doubt, all Parent Retained Employee Liabilities are  Parent Liabilities for purposes of the Separation and Distribution Agreement.   (b) Subject to the terms and conditions of this Agreement, effective as of the  Separation Effective Time, the Company shall, or shall cause the applicable member of the  Lithium Group to, assume, and no member of the Parent Group shall have any further  obligation with respect to, any and all Liabilities (i) relating to, arising out of or in respect  of any Lithium Participant or any Lithium Plan or (ii) attributable to actions expressly  specified to be taken by any member of the Lithium Group under this Agreement, in each  case, (x) whether arising before, on or after the Separation Date, (y) whether based on facts  occurring before, on or after the Separation Date and (z) irrespective of which Person such  Liabilities are asserted against or which Person such Liabilities attached to as a matter of  applicable Law or contract (collectively, “Lithium Assumed Employee Liabilities”),  including without limitation:   (i) employment, separation or retirement agreements or arrangements  to the extent applicable to any Lithium Participant;   (ii) wages, salaries, incentive compensation, commissions, bonuses and  other compensation payable to any Lithium Participants, without regard to when  such wages, salaries, incentive compensation, equity compensation, commissions,  bonuses and other compensation are or may have been earned;   (iii) severance or similar termination-related pay or benefits applicable  to any Lithium Participant;   (iv) claims made by or with respect to any Lithium Participant in  connection with any employee benefit plan, program or policy, without regard to  when such claim is in respect of;   

 

  9  #90914078v33   (v) workers’ compensation and unemployment compensation benefits  for all Lithium Participants;   (vi) change in control, transaction bonus, retention and stay bonuses  payable to any Lithium Participants;   (vii) the Lithium CBAs;   (viii) any applicable Law (including ERISA and the Code) to the extent  related to participation by any Lithium Participant in any Employee Plan;   (ix) any Actions, allegations, demands, assessments, settlements or  judgments relating to or involving any Lithium Participant (including, without  limitation, those relating to labor and employment, wages, hours, overtime,  employee classification, hostile workplace, civil rights, discrimination, harassment,  affirmative action, work authorization, immigration, safety and health, information  privacy and security, workers’ compensation, continuation coverage under group  health plans, wage payment, hiring practice and the payment and withholding of  Taxes);    (x) any costs or expenses incurred in designing, establishing and  administering any Lithium Plans or payroll or benefits administration for Lithium  Participants;   (xi) the employer portion of any employment, payroll or similar Taxes  relating to any of the foregoing or any Lithium Participant; and  (xii) any Liabilities expressly assumed or retained, as applicable, by any  member of the Lithium Group pursuant to this Agreement.   For the avoidance of doubt, all Lithium Assumed Employee Liabilities are Lithium  Liabilities for purposes of the Separation and Distribution Agreement.  Section 2.02. Indemnification.  For the avoidance of doubt, the provisions of  Article VIII of the Separation and Distribution Agreement shall apply to and govern the  indemnification rights and obligations of the parties with respect to the matters addressed  by this Agreement.    ARTICLE III  EMPLOYEES AND CONTRACTORS; EMPLOYMENT AND  COLLECTIVE BARGAINING AGREEMENTS  Section 3.01. Transfers of Employment; Post-IPO Transfers.    (a) Effective as of or prior to the Separation Effective Time, (i) the employment  of each Lithium Employee, to the extent employed at such time, will be transferred to or  continued by, as applicable, a member of the Lithium Group and (ii) the employment of  each Parent Employee, to the extent employed at such time, will be continued by a member  

 

  10  #90914078v33   of the Parent Group.  Following the Separation Effective Time and prior to the Distribution  Effective Time, Parent and the Company shall cooperate in good faith to transfer the  employment of each Transferred Lithium Employee from the Parent Group to the Lithium  Group, and the parties shall use their reasonable best efforts to cause all such transfers of  employment to occur no later than the Distribution Effective Time; provided however, that  the parties agree and acknowledge that there may be a limited number of Transferred  Lithium Employees whose employment may not be transferred to the Lithium Group until  on or after the Distribution Effective Time, in which case the parties will mutually  cooperate to transfer the employment of such individuals to the Lithium Group as soon as  possible following the Distribution Effective Time and, unless as otherwise contemplated  in connection with the Transition Services Agreement, in no event later than the expiration  of the Delayed Transfer Period. For the avoidance of doubt, each Transferred Lithium  Employee shall be deemed to be a “Lithium Employee” for all purposes of the Agreement  following the applicable date of transfer of his or her employment from the Parent Group  to the Lithium Group.   (b) Notwithstanding anything to the contrary in this Agreement, each U.S.  Lithium Employee who, as of the Separation Effective Time, is (i) on an approved leave  of absence and (ii) receiving long-term or short-term disability benefits under a Parent  H&W Plan (each, a “Lithium Inactive Employee”) will continue to be employed by a  member of the Parent Group until such individual returns to active service.  Upon a Lithium  Inactive Employee’s return to active service, such Lithium Inactive Employee will be  transferred to a member of the Lithium Group (or, if such Lithium Inactive Employee  returns to active service following the Distribution Effective Time, the Company will make  an offer of employment to such Lithium Inactive Employee on terms and conditions of  employment consistent with (A)  this Agreement and (B)  the terms and conditions of  employment applicable to such Lithium Inactive Employee at such time); provided, that  such Lithium Inactive Employee returns to active service within 18  months following the  Separation Date (such period, the “Delayed Transfer Period”).  For the avoidance of  doubt, (x) effective on or before the Separation Effective Time, the employment of each  Lithium Employee (other than any Lithium Inactive Employee) who is on an approved  leave of absence (including parental, military or other authorized leave of absence) will  continue with or be transferred to, as applicable, the Lithium Group in accordance with  Section 3.01(a) and (y) all costs relating to any compensation, benefits, severance or other  employment-related costs in respect of Lithium Inactive Employees will constitute Lithium  Assumed Employee Liabilities.  (c) Any New Lithium Employees will be hired by a member of the Lithium  Group, and will be deemed to be a Lithium Employee for all purposes of this Agreement  from and after the applicable date of hire; provided that, to the extent any such individual  cannot be hired by a member of the Lithium Group prior to the Distribution Effective Time,  the parties will cooperate in good faith for such individual to be hired by a member of the  Parent Group and thereafter transferred to a member of the Lithium Group, effective as of  no later than the Distribution Effective Time.  For the avoidance of doubt, any New Lithium  Employee will be deemed to be a Lithium Employee for all purposes of this Agreement  following his or her applicable hire date (regardless of whether hired by a member of the  Lithium Group or a member of the Parent Group).  

 

  11  #90914078v33   (d) Each of the parties hereto agrees to execute, and to use their reasonable best  efforts to have the applicable employees execute, any such documentation or consents as  may be necessary or desirable to reflect or effectuate any such assignments or transfers  contemplated by this Section 3.01.  (e) Effective as of the Separation Effective Time, (i) the Company shall adopt or  maintain, and shall cause each member of the Lithium Group to adopt or maintain, leave  of absence programs and (ii) the Company shall honor, and shall cause each member of the  Lithium Group to honor, all terms and conditions of authorized leaves of absence which  have been granted to any Lithium Participant before the Separation Effective Time,  including such leaves that are to commence on or after the Separation Effective Time.  (f) In the event that the parties reasonably determine following the Separation  Effective Time that (i) any individual employed outside the United States who is not a  Lithium Employee has inadvertently become employed by a member of the Lithium Group  (due to the operation of transfer of undertakings or similar applicable Law), the parties  shall cooperate and take such actions as may be reasonably necessary in order to cause the  employment of such individual to be promptly transferred to a member of the Parent Group,  and Parent shall reimburse the applicable members of the Lithium Group for all  compensation, benefits and other employment-related costs incurred by the Lithium Group  members in employing and transferring such individuals or (ii) any individual employed  outside the United States who was intended to transfer to, and become employed by, a  member of the Lithium Group pursuant to the operation of transfer of undertakings or  similar applicable Law instead continues to be employed by the Parent Group, the parties  shall cooperate and take such actions as may be reasonably necessary in order to cause the  employment of such individual to be promptly transferred to a member of the Lithium  Group, and the Company shall reimburse the applicable members of the Parent Group for  all compensation, benefits and other employment-related costs incurred by Parent Group  members in employing and transferring such individuals.   (g) With respect to any employment agreements or restrictive covenant  agreements with Lithium Employees or Parent Employees to which a member of the  Lithium Group or a member of the Parent Group, respectively, is not a party, or which do  not otherwise transfer to a Lithium Group member or a Parent Group member, respectively,  by operation of applicable Law, the parties shall use reasonable best efforts to assign the  applicable employment agreement to a member of the Lithium Group or a member of the  Parent Group, as applicable, in the applicable jurisdiction, and the Company or Parent, as  applicable, shall, or shall cause a member of the Lithium Group or a member of the Parent  Group, respectively, to assume and perform such employment agreements in accordance  with their terms; provided, however, that this Section 3.01(g) shall not apply to (i) any  employment agreements with any Lithium Participants who are employed in a jurisdiction  outside of the United States in which the parties do not intend for such agreements to be  transferred to the Lithium Group or (ii) any executive severance agreements with any  Lithium Employees under the Parent Executive Severance Plan.  (h) Neither the Separation, the Distribution nor any assignment, transfer or  continuation of the employment of employees as contemplated by this Article III shall be  

 

  12  #90914078v33   deemed a termination of employment or service of any Lithium Participant or Parent  Participant for purposes of this Agreement or any Parent Plan or Lithium Plan (including,  for the avoidance of doubt, any individual employment, severance, change in control,  independent contractor, consulting or similar agreements).   (i) Except as provided in Section 8.06(h), with respect to any Delayed Transfer  Employee, references to “Separation Effective Time”, “Separation Date”, “Benefits  Commencement Date”, “Distribution Effective Time” and “Distribution Date” in this  Agreement, as applicable, shall in each case be deemed to refer to the date such Delayed  Transfer Employee commences employment with the Lithium Group, mutatis mutandis, if  later.   Section 3.02. Contractors.  With respect to any independent contractor or  consulting agreements with Lithium Contractors or Parent Contractors to which a Lithium  Group member or a Parent Group member, respectively, is not a party, or which do not  otherwise transfer to a Lithium Group member or a Parent Group member, respectively,  by operation of applicable Law, the parties shall use reasonable best efforts to assign the  applicable agreements to a member of the Lithium Group or a member of the Parent Group,  as applicable, in the applicable jurisdiction, and the Company or Parent, as applicable,  shall, or shall cause a member of the Lithium Group or a member of the Parent Group,  respectively, to assume and perform such independent contractor and consulting  agreements.  Section 3.03. Assumption of Collective Bargaining Agreements; Labor Relations.  (a) From and after the Separation Effective Time, the Company hereby agrees to  comply with and honor the Lithium CBAs and become, and fulfill its obligations as, a  successor employer to the applicable Parent Group member for all purposes under the  Lithium CBAs with respect to any Lithium Employee or Lithium Contractor, and the  Company assumes responsibility for, and Parent or the relevant member of the Parent  Group hereby ceases to be responsible for or to otherwise have any Liability in respect of,  the Lithium CBAs to the extent they pertain to any Lithium Employee or Lithium  Contractor.   (b) To the extent required by applicable Law, any Lithium CBA, Parent CBA or  any other Collective Bargaining Agreement, the parties shall cooperate and consult in good  faith to provide notice, engage in consultation, and take any similar action which may be  required on its part in connection with the IPO or Distribution.  Section 3.04. Assumption of Individual Lithium Employee Agreements and  Lithium Contractor Agreements.  From and after the Separation Effective Time, the  Company hereby agrees to comply with and honor any employment or services agreement  between any member of the Parent Group or the Lithium Group, as the case may be, on the  one hand, and any Lithium Employee or Lithium Contractor, on the other hand, and  assumes responsibility for, and, to the extent applicable, Parent or the relevant member of  the Parent Group hereby ceases to be responsible for or to otherwise have any Liability in  respect of, such agreements. For the avoidance of doubt, this Section 3.04 shall not apply  

 

  13  #90914078v33   to any executive severance agreements with any Lithium Employees under Parent’s  Executive Severance Plan.   Section 3.05. Assignment of Specified Rights.  To the extent permitted by  applicable Law and the applicable agreement, if any, effective as of the Separation  Effective Time, (i) Parent hereby assigns, to the maximum extent possible, on behalf of  itself and the Parent Group, the Lithium Specified Rights, to the Company and (ii) the  Company hereby assigns, to the maximum extent possible, on behalf of itself and the  Lithium Group, the Parent Specified Rights, to Parent.  ARTICLE IV  PLANS  Section 4.01. Plan Participation.  Except as otherwise expressly provided in this  Agreement, effective as of immediately prior to the applicable Benefits Commencement  Date, (a) (i) all Lithium Participants shall cease any participation in, and benefit accrual  under, Parent Plans and (ii)  all members of the Lithium Group shall cease to be  participating employers under the Parent Plans and, (b) to the extent applicable, (i) all  Parent Participants shall cease any participation in, and benefit accrual under, Lithium  Plans and (ii) all members of the Parent Group shall cease to be participating employers  under the Lithium Plans.  Prior to the Separation Date, Parent and the Company shall take  all actions necessary to effectuate the actions contemplated by this Section 4.01 and to  cause (A) the applicable Lithium Group member to assume or retain all Liabilities with  respect to each Lithium Plan and the applicable Parent Group member to assume or retain  all Liabilities with respect to each Parent Plan, in each case, effective as of the Separation  Effective Time and (B) all Assets of any Lithium Plan to be transferred to or retained by  the applicable Lithium Group member in the applicable jurisdiction and all Assets of any  Parent Plan to be transferred to or retained by the applicable Parent Group member in the  applicable jurisdiction, in each case, effective as of the Separation Effective Time.    Section 4.02. Adoption and Administration of Lithium Plans; Service Credit.    (a) To the extent necessary to comply with its obligations under this Agreement,  the Company or a member of the Lithium Group shall adopt, or cause to be adopted, at the  Company’s expense, Lithium Plans to be effective from and after the applicable Benefits  Commencement Date.  The Company expressly agrees to reimburse Parent for any and all  costs and expenses incurred by the Parent Group before the applicable Benefits  Commencement Date to design, establish or administer any Lithium Plan.  (b) For the avoidance of doubt, from and after the applicable Benefits  Commencement Date, the applicable member of the Lithium Group shall be responsible  for the administration of the applicable Lithium Plan, and no member of the Parent Group  shall have any Liability or obligation (including any administration obligation) with respect  to any Lithium Plans.  (c) From and after the applicable Benefits Commencement Date, for purposes of  determining eligibility to participate, vesting and benefit accrual under any Lithium Plan  

 

  14  #90914078v33   in which a Lithium Participant is eligible to participate on and following the applicable  Benefits Commencement Date, such Lithium Participant’s service with any member of the  Parent Group or the Lithium Group, as the case may be, prior to the applicable Benefits  Commencement Date shall be treated as service with the Lithium Group, to the extent  recognized by the Parent Group or the Lithium Group, as applicable, under an analogous  Parent Plan or Lithium Plan, as applicable, prior to the applicable Benefits Commencement  Date; provided, however, that such service shall not be recognized to the extent that such  recognition would result in any duplication of benefits.  ARTICLE V  RETIREMENT PLANS  Section 5.01. 401(k) Plan.   (a) Effective as of the Benefits Commencement Date, each Lithium Participant  who participates in the Parent 401(k) Plan as of immediately prior to the Benefits  Commencement Date (i) will cease active participation in the Parent 401(k) Plan and  (ii) will become eligible to participate in the Lithium 401(k) Plan. For the avoidance of  doubt, all  employee pre-tax deferrals and employer contributions with respect to the  Lithium Participants will be made to the Lithium 401(k) Plan on and following the Benefits  Commencement Date.  (b) Effective as of the Distribution Effective Time, each Lithium Participant will  become eligible to elect a distribution of his or her account balance under the Parent 401(k)  Plan, including a voluntary “rollover distribution” of such Lithium Participant’s eligible  account balance under the Parent 401(k) Plan (other than any participant loans) to either  the Lithium 401(k) Plan or an Individual Retirement Account (or, for the avoidance of  doubt, such Lithium Participant may otherwise continue to maintain his or her account  under the Parent 401(k) Plan in accordance with the terms of the Parent 401(k) Plan), as  determined by each such Lithium Participant; provided that any portion of such Lithium  Participant’s account balance under the Parent 401(k) Plan to be “rolled over” to the  Lithium 401(k) Plan must be done in the form of cash (i.e., no in-kind or Parent Common  Stock transfers will be permitted).  In the event that a Lithium Participant makes a voluntary  election to rollover such Lithium Participant’s account balance from the Parent 401(k) Plan  to the Lithium 401(k) Plan, the Company agrees to cause the Lithium 401(k) Plan to accept  such rollover, to the extent permitted by applicable Law.   (c) Subject to participant rollovers as provided for in Section 5.01(b) above, all  Liabilities under the Parent 401(k) Plan (whether relating to Parent Participants or Lithium  Participants), including with respect to participant loans, will be retained by Parent and will  constitute Parent Retained Employee Liabilities; provided that any and all costs, expenses  or Liabilities relating to participation by Lithium Participants in the Parent 401(k) Plan  during the period, if any, between the Separation Date and the Benefits Commencement  Date (the “Benefits Transition Period”) shall be assumed by the Lithium Group and  constitute Lithium Assumed Employee Liabilities, which shall be reimbursed by the  Company to the Parent Group in accordance with the terms of the Transition Services  

 

  15  #90914078v33   Agreement.  For the avoidance of doubt, there will be no trust-to-trust transfer of any Assets  or Liabilities from the Parent 401(k) Plan to the Lithium 401(k) Plan.  (d) From and after the Benefits Commencement Date, the applicable member of  the Lithium Group shall be responsible for the administration of the Lithium 401(k) Plan,  and no member of the Parent Group shall have any Liability or obligation (including any  administration obligation) with respect to the Lithium 401(k) Plan.    Section 5.02. Non-U.S. Defined Contribution Plans.    (a) Effective as of the Separation Effective Time, the Lithium Plan that is a  defined contribution plan maintained for the benefit of Non-U.S. Lithium Participants in  the United Kingdom (the “UK DC Plan”) will be retained by the Lithium Group in  accordance with its terms, and, for the avoidance of doubt, (i) all obligations in respect of  the UK DC Plan will be retained by the Lithium Group from and after the Separation  Effective Time and (ii) any Liabilities relating to or arising from the UK DC Plan will  constitute Lithium Assumed Employee Liabilities.  (b) Effective on or before the Separation Effective Time, each Non-U.S. Lithium  Participant who participates in a Parent Plan that is a statutory India Provident Fund shall  cease active participation in such plan and will become eligible to participate in a Lithium  Plan that is a statutory India Provident Fund.  Section 5.03. Parent U.S. Qualified Pension Plan.  (a) Effective as of the Benefits Commencement Date, each Lithium Participant  who participates in the Parent U.S. Qualified Pension Plan will cease active participation  in the Parent U.S. Qualified Pension Plan (including the accrual of any additional benefits  under the Parent U.S. Qualified Pension Plan).  (b) On and following the Benefits Commencement Date, each Lithium  Participant who participates in the Parent U.S. Qualified Pension Plan as of immediately  prior to the Benefits Commencement Date shall receive credit for his or her service with  the Lithium Group on and following the Benefits Commencement Date for purposes of  attaining “early retirement” eligibility under, and in accordance with the terms of, the  Parent U.S. Qualified Pension Plan.   (c) From and after the Distribution Effective Time, the terms of the Parent U.S.  Qualified Pension Plan will govern the terms of distributions, if any, of any benefits  payable under the Parent U.S. Qualified Pension Plan to any Lithium Participants.  (d) All Liabilities under the Parent U.S. Qualified Pension Plan (whether relating  to Parent Participants or Lithium Participants) will be retained by Parent and will constitute  Parent Retained Employee Liabilities; provided, however, that any and all costs, expenses  or Liabilities relating to participation by Lithium Participants in the Parent U.S. Qualified  Pension Plan during the Benefits Transition Period shall be assumed by the Lithium Group  and constitute Lithium Assumed Employee Liabilities, which shall be reimbursed by the  

 

  16  #90914078v33   Company to the Parent Group in accordance with the terms of the Transition Services  Agreement.   Section 5.04. Non-U.S. Pension Plans.   (a) Effective as of the Separation Effective Time, the UK Pension Plan will be  retained by the Lithium Group in accordance with its terms, and, for the avoidance of doubt,  any Liabilities arising from or relating to the UK Pension Plan will constitute Lithium  Assumed Employee Liabilities.  Without limiting the generality of Schedule 5.05 of the  Separation Agreement, as of and following the Separation Effective Time, the  Bromborough Indemnity Deed will remain in full force and effect in accordance with its  terms; provided that any and all Liabilities related to or arising under the Bromborough  Indemnity Deed shall constitute Lithium Assumed Employee Liabilities.  (b) Effective on or before the Separation Effective Time, (i) each Non-U.S.  Lithium Participant who participates in a Parent Plan that is an India Gratuity Plan or Japan  Retirement Allowance Plan will cease active participation in such plan and will become  eligible to participate in a corresponding Lithium Plan and (ii) (A) the Company shall, and  shall cause the applicable member of the Lithium Group to, assume all Liabilities under  such India Gratuity Plan and Japan Retirement Plan with respect to Non-U.S. Lithium  Participants, (B) Parent shall, and shall cause the applicable member of the Parent Group  to, transfer all such Liabilities to the applicable member of the Lithium Group, and (C) the  Parent Group shall have no further Liability or obligation (including any administration  obligation) with respect thereto.    Section 5.05. Parent NQ Savings Plan.   (a) Effective as of the Benefits Commencement Date, each Lithium Participant  who participates in the Parent NQ Savings Plan as of immediately prior to the Benefits  Commencement Date (i) will cease active participation in the Parent NQ Savings Plan and  (ii) will become eligible to participate in a corresponding Lithium non-qualified savings  and investment plan (the “Lithium NQ Savings Plan”).  For the avoidance of doubt, from  and after the Benefits Commencement Date, each Lithium Participant shall not actively  participate in or accrue any additional benefits under the Parent NQ Savings Plan.   (b) During the Benefits Transition Period, any and all costs, expenses or  Liabilities relating to participation by Lithium Participants in the Parent NQ Savings Plan  shall be assumed by the Lithium Group and constitute Lithium Assumed Employee  Liabilities, which shall be reimbursed by the Company to the Parent Group in accordance  with the terms of the Transition Services Agreement. Effective as of the Benefits  Commencement Date, (i) the Company shall, and shall cause the Lithium NQ Savings Plan  to, accept all Assets and assume all Liabilities under the Parent NQ Savings Plan with  respect to Lithium Participants, (ii) Parent shall, and shall cause the Parent NQ Savings  Plan to, transfer all such Assets and Liabilities to the Lithium NQ Savings Plan, and (iii)  the Parent NQ Savings Plan and the Parent Group shall have no further Liability or  obligation (including any administration obligation) with respect thereto.  The Parent NQ  

 

  17  #90914078v33   Savings Plan shall continue to be responsible for Liabilities in respect of Parent  Participants.   (c) On and following the Benefits Commencement Date, any effective deferral  elections made by a Lithium Participant with respect to amounts deferred by such Lithium  Participant under, and in accordance with the terms of, the Parent NQ Savings Plan prior  to the Benefits Commencement Date, shall remain in effect with respect to such amounts  in accordance with their terms.  (d) Lithium Participants shall receive credit under the Lithium NQ Savings Plan  for vesting, eligibility and benefit service for all service credited for those purposes under  the Parent NQ Savings Plan as of the Benefits Commencement Date as if that service had  been rendered to the Lithium Group.  (e) To the maximum extent permitted by Section 409A of the Code, a Lithium  Participant shall not be considered to have undergone a “separation from service” for  purposes of Section 409A of the Code and the Parent NQ Savings Plan solely by reason of  the Distribution, and, following the Distribution Effective Time, the determination of  whether a Lithium Participant has incurred a separation from service with respect to his or  her benefit in the Lithium NQ Savings Plan shall be based solely upon his or her  performance of services for the Lithium Group.   Section 5.06. Parent NQ Pension Plan.  (a) Effective as of the Benefits Commencement Date, each Lithium Participant  who participates in the Parent NQ Pension Plan as of immediately prior to the Distribution  Effective Time will cease active participation in the Parent NQ Pension Plan and will not  accrue any additional benefits thereunder.   (b) At and following the Distribution Effective Time, the terms of the Parent NQ  Pension Plan (and any applicable deferral elections thereunder) will govern the terms of  any distributions of account balances made to Lithium Participants participating in the  Parent NQ Pension Plan.  (c) All Liabilities under the Parent NQ Pension Plan (whether relating to Parent  Participants or Lithium Participants) will be retained by Parent and will constitute Parent  Retained Employee Liabilities; provided, however, that any and all costs, expenses or  Liabilities relating to participation by Lithium Participants in the Parent NQ Pension Plan  during the Benefits Transition Period be assumed by the Lithium Group and constitute  Lithium Assumed Employee Liabilities, which shall be reimbursed by the Company to the  Parent Group in accordance with the terms of the Transition Services Agreement.   ARTICLE VI  HEALTH AND WELFARE PLANS; PAID TIME OFF AND VACATION  Section 6.01. Cessation of Participation in Parent H&W Plans; Participation in  Lithium H&W Plans.    

 

  18  #90914078v33   (a) Without limiting the generality of Section 4.01, effective as of the applicable  Benefits Commencement Date, Lithium Participants shall cease to participate in the Parent  H&W Plans; provided that any participation in, and benefit accrual under, Parent H&W  Plans by Lithium Participants during the Benefits Transition Period shall be in accordance  with, and pursuant to, the terms and conditions of the Transition Services Agreement.   (b) Effective as of the applicable Benefits Commencement Date, the Company  shall cause Lithium Participants who participate in a Parent H&W Plan immediately prior  to the applicable Benefits Commencement Date to be automatically enrolled or offered  participation in a corresponding Lithium H&W Plan.  (c) To the extent applicable, the Company shall cause Lithium H&W Plans to  recognize and maintain all coverage and contribution elections made by Lithium  Participants under the corresponding Parent H&W Plans as of the applicable Benefits  Commencement Date and apply such elections under the applicable Lithium H&W Plan  for the remainder of the period or periods for which such elections are by their terms  applicable.    (d) Neither the transfer or other movement of employment or service from any  member of the Parent Group to any member of the Lithium Group at any time before the  applicable Benefits Commencement Date nor the Distribution shall constitute or be treated  as a “status change” under the Parent H&W Plans or the Lithium H&W Plans.  (e) Subject to the terms of the applicable Lithium H&W Plan and applicable  Law, the Company shall use its reasonable best efforts to waive all limitations as to  preexisting conditions, exclusions and waiting periods with respect to participation and  coverage requirements applicable to Lithium Participants under any Lithium H&W Plan in  which such Lithium Participants may be eligible to participate on or after the applicable  Benefits Commencement Date.  Section 6.02. Assumption of Health and Welfare Plan Liabilities.  Subject Section  6.03, effective as of the Separation Effective Time, all Liabilities relating to, arising out of,  or resulting from health and welfare coverage or claims incurred prior to, on or after the  Separation Effective Time by each Lithium Participant under the Parent H&W Plans shall  cease to be Liabilities of the Parent Group and shall be assumed by the Lithium Group and  deemed to be Lithium Assumed Employee Liabilities. Without limiting the generality of  the foregoing, subject to Section 6.03, any and all costs, expenses or Liabilities relating to  participation by Lithium Participants in the Parent H&W Plans during the Benefits  Transition Period shall be reimbursed by the Company to the Parent Group in accordance  with the terms of the Transition Services Agreement. For the avoidance of doubt, subject  to Section 6.03, (a) all Liabilities arising under (i) any Parent H&W Plan (other than a  Parent Retiree H&W Plan) with respect to Lithium Participants or (ii) any Lithium H&W  Plan and (b) all Liabilities arising out of, relating to or resulting from the cessation of a  Lithium Participant’s participation in any Parent H&W Plan (other than a Parent Retiree  H&W Plan) and transfer to a Lithium H&W Plan as set forth herein (including any Actions  or claims by any Lithium Participants related thereto) shall, in each case, be Lithium  Assumed Employee Liabilities.  

 

  19  #90914078v33   Section 6.03. Post-Retirement Health and Welfare Benefits.  Notwithstanding  anything to the contrary in Section 6.01 or Section 6.02, (a) effective as of the applicable  Benefits Commencement Date, all Lithium Participants shall cease to participate in, and  earn benefit service under, any Parent Retiree H&W Plan (provided that any Lithium  Participant who has elected to receive benefits under any applicable Parent Retiree H&W  Plan in accordance with the terms of such plan prior to the applicable Benefits  Commencement Date shall continue to participate in, and receive benefits under, such  Parent Retiree H&W Plan in accordance with the terms of such plan) and (b) all Liabilities  under the Parent Retiree H&W Plans (whether relating to Parent Participants or Lithium  Participants) will be retained by Parent and will constitute Parent Retained Employee  Liabilities.  Section 6.04. Flexible Spending Account Plan Treatment.  Effective as of the  applicable Benefits Commencement Date, the Company shall establish or designate  flexible spending accounts for health and dependent care expenses (the “Lithium FSAs”).   To the extent applicable, the parties shall take all actions reasonably necessary or  appropriate so that the account balances (positive or negative) under the Parent FSAs of  each Lithium Participant who has elected to participate therein in the year in which the  applicable Benefits Commencement Date occurs shall be transferred, effective as of the  applicable Benefits Commencement Date, from the Parent FSAs to the corresponding  Lithium FSAs.  The Lithium FSAs shall assume responsibility as of the applicable Benefits  Commencement Date for all outstanding dependent care and health care claims under the  Parent FSAs of each Lithium Participant for the year in which the applicable Benefits  Commencement Date occurs and shall assume the rights of and agree to perform the  obligations of the analogous Parent FSA from and after the applicable Benefits  Commencement Date.  The parties shall cooperate in good faith to provide that the  contribution elections of each such Lithium Participant as in effect immediately before the  applicable Benefits Commencement Date remain in effect under the Lithium FSAs from  and after the applicable Benefits Commencement Date.    Section 6.05. Workers’ Compensation Liabilities.  Unless as otherwise expressly  provided in the Separation and Distribution Agreement, effective as of the Separation  Effective Time, all workers’ compensation Liabilities relating to, arising out of, or resulting  from any claim by any Lithium Participant that result from an accident or from an  occupational disease, regardless of whether incurred before, on or after the Separation  Date, shall be assumed by the Company and shall constitute Lithium Assumed Employee  Liabilities. The parties shall cooperate with respect to any notification to appropriate  governmental agencies of the disposition and the issuance of new, or the transfer of  existing, workers’ compensation insurance policies and contracts governing the handling  of claims.  Section 6.06. Vacation and Paid Time Off.  Effective as of the Separation  Effective Time, the applicable Lithium Group member shall recognize and assume all  Liabilities with respect to vacation, holiday, sick leave, paid time off, floating holidays,  personal days and other paid time off with respect to Lithium Participants accrued on or  prior to the Separation Effective Time, and the Company shall credit each such Lithium  Participant with such accrual; provided, that if any such vacation or paid time off is required  

 

  20  #90914078v33   under applicable Law to be paid out to the applicable Lithium Participant in connection  with the Distribution, such payment will be made by the Company as of the Distribution  Date, and the Company will credit such Lithium Participant with unpaid vacation time or  paid time off in respect thereof; it being understood that any amount of vacation or paid  time off required to be paid out in connection with the Distribution shall constitute Lithium  Assumed Employee Liabilities.  Section 6.07. COBRA and HIPAA.    (a) The Parent Group shall administer the Parent Group’s compliance with the  health care continuation coverage requirements of COBRA, the certificate of creditable  coverage requirements of HIPAA and the corresponding provisions of the Parent H&W  Plans with respect to Lithium Participants who incur a COBRA “qualifying event”  occurring on or before the applicable Benefits Commencement Date entitling them to  benefits under a Parent H&W Plan; provided that, for the avoidance of doubt, any  Liabilities related thereto shall constitute Lithium Assumed Employee Liabilities.    (b) The Company shall be solely responsible for all Liabilities incurred pursuant  to COBRA and for administering, at the Company’s expense, compliance with the health  care continuation coverage requirements of COBRA, the certificate of creditable coverage  requirements of HIPAA, and the corresponding provisions of the Lithium H&W Plans with  respect to Lithium Participants who incur a COBRA “qualifying event” that occurs at any  time after the applicable Benefits Commencement Date entitling them to benefits under a  Lithium Plan.    (c) The parties agree that neither the Separation, the Distribution nor any  assignment or transfer of the employment or services of any employee or individual  independent contractor as contemplated under this Agreement shall constitute a COBRA  “qualifying event” for any purpose of COBRA.   ARTICLE VII  INCENTIVE COMPENSATION   Section 7.01. Cash Incentive and Cash Bonus Plans.  Each Lithium Participant  participating in any Parent Plan that is a cash bonus or cash incentive plan with respect to  the 2018 performance year (each, a “Parent Bonus Plan”) will remain eligible to receive  a cash bonus in respect of the 2018 performance year (the “2018 Cash Bonuses”) in  accordance with the terms of such applicable Parent Bonus Plan.  Any 2018 Cash Bonuses  payable to Lithium Participants under such Parent Bonus Plans will be paid by the  Company on behalf of Parent in accordance with the terms of the applicable Parent Bonus  Plan (including terms relating to the timing of payment), which such amounts shall  constitute Lithium Assumed Employee Liabilities; provided that Parent will reimburse  Lithium for the portion of the 2018 Cash Bonuses paid by the Company to Lithium  Participants that relates to the portion of the 2018 performance period that elapsed prior to  the Separation Date, which such amount to be reimbursed by Parent will constitute a Parent  Retained Employee Liability.   

 

  21  #90914078v33   ARTICLE VIII  TREATMENT OF OUTSTANDING EQUITY AWARDS  Section 8.01. No Adjustments at the IPO.  Except as may otherwise be provided  pursuant to the express terms of any Parent RSU, Parent PRSU or Parent Option, no  adjustments shall be made to any Parent RSU, Parent PRSU or Parent Option in connection  with the execution of this Agreement or the consummation of the IPO.    Section 8.02. RSU and Banked PRSU Distribution Adjustments.  (a) Effective as of the Distribution Effective Time, each Parent RSU and Banked  Parent PRSU that is outstanding as of immediately prior to the Distribution Effective Time  and held by a Lithium Participant shall be converted into an award of restricted share units  with respect to Company Common Stock (each, a “Lithium RSU”).  The number of shares  of Company Common Stock subject to such Lithium RSU shall be determined by the  Parent Board (or an appropriate committee thereof) in a manner intended to preserve the  value of such Parent RSU or Banked Parent PRSU, as applicable, by taking into account  the relative values of the Parent Pre-Distribution Stock Value and the Company Stock  Value, with any fractional shares rounded down to the nearest whole number of shares.   Each such Lithium RSU shall be subject to the same terms and conditions (including  vesting and payment schedules) as applicable to the corresponding Parent RSU or Banked  Parent PRSU, as applicable, as of immediately prior to the Distribution Effective Time.  (b) Effective as of the Distribution Effective Time, each Parent RSU and Banked  Parent PRSU that, in each case, (x) was granted prior to January 1, 2019, (y) is outstanding  as of immediately prior to the Distribution Effective Time and (z) is held by a Parent  Participant who is not a Former Parent Employee shall be converted into both an Adjusted  Parent RSU or Adjusted Banked Parent PRSU, as applicable, and a Lithium RSU, and each  such Adjusted Parent RSU, Adjusted Banked Parent PRSU and Lithium RSU shall be  subject to the same terms and conditions (including vesting and payment schedules) as  were applicable to the corresponding Parent RSU or Banked Parent PRSU as of  immediately prior to the Distribution Effective Time; provided that from and after the  Distribution Effective Time:   (i) the number of shares of Parent Common Stock subject to such  Adjusted Parent RSU or Adjusted Banked Parent PRSU, as applicable, shall be equal to  the number of shares of Parent Common Stock subject to the corresponding Parent RSU  or Banked Parent PRSU, as applicable, immediately prior to the Distribution Effective  Time; and  (ii) the number of shares of Company Common Stock subject to such  Lithium RSU shall be determined by the Parent Board (or an appropriate committee  thereof) in a manner intended, in combination with such Adjusted Parent RSU or Adjusted  Banked Parent PRSU, as applicable, to preserve the value of such Parent RSU or Banked  Parent PRSU, as applicable, by taking into account the Distribution Ratio relative to the  number of Parent RSUs or Banked Parent PRSUs, as applicable, with any fractional shares  rounded down to the nearest whole number of shares.  

 

  22  #90914078v33   (c) Effective as of the Distribution Effective Time, each Parent RSU and Banked  Parent PRSU that, in each case, (x) was granted on or after January 1, 2019, (y) is  outstanding as of immediately prior to the Distribution Effective Time and (z) held by a  Parent Participant who is not a Former Parent Employee shall be converted into an  Adjusted Parent RSU or Adjusted Banked Parent PRSU, as applicable.  The number of  shares of Parent Common Stock subject to such Adjusted Parent RSU or Adjusted Banked  Parent PRSU, as applicable, shall be determined by the Parent Board (or an appropriate  committee thereof)  in a manner intended to preserve the value of such Parent RSU or  Banked Parent PRSU, as applicable, by taking into account the relative values of the Parent  Pre-Distribution Stock Value and the Adjusted Parent Post-Distribution Stock Value, with  any fractional shares rounded down to the nearest whole number of shares.  Each such  Adjusted Parent RSU or Adjusted Banked Parent PRSU, as applicable, shall be subject to  the same terms and conditions (including vesting and payment schedules) as applicable to  the corresponding Parent RSU or Banked Parent PRSU, as applicable, as of immediately  prior to the Distribution Effective Time.  (d) Effective as of the Distribution Effective Time, each Parent RSU and Banked  Parent PRSU that is outstanding as of immediately prior to the Distribution Effective Time  and held by a Former Parent Employee shall be converted into an Adjusted Parent RSU or  Adjusted Banked Parent PRSU, as applicable.  The number of shares of Parent Common  Stock subject to such Adjusted Parent RSU or Adjusted Banked Parent PRSU, as  applicable, shall be determined by the Parent Board (or an appropriate committee thereof)  in a manner intended to preserve the value of such Parent RSU or Banked Parent PRSU,  as applicable, by taking into account the relative values of the Parent Pre-Distribution Stock  Value and the Adjusted Parent Post-Distribution Stock Value, with any fractional shares  rounded down to the nearest whole number of shares.  Each such Adjusted Parent RSU or  Adjusted Banked Parent PRSU, as applicable, shall be subject to the same terms and  conditions (including vesting and payment schedules) as applicable to the corresponding  Parent RSU or Banked Parent PRSU, as applicable, as of immediately prior to the  Distribution Effective Time.  Section 8.03. Unbanked PRSU Distribution Adjustments.    (a) Effective as of the Distribution Effective Time, each Unbanked Parent PRSU  that is outstanding as of immediately prior to the Distribution Effective Time and held by  a Lithium Participant shall be converted into a Lithium RSU.  The number of shares of  Company Common Stock subject to such Lithium RSU shall be determined by the Parent  Board (or an appropriate committee thereof) in a manner intended to preserve the target  value of such Unbanked Parent PRSU by taking into account the relative values of the  Parent Pre-Distribution Stock Value and the Company Stock Value, with any fractional  shares rounded down to the nearest whole number of shares.  Each such Lithium RSU shall  be subject to the same terms and conditions (including vesting and payment schedules) as  applicable to the corresponding Unbanked Parent PRSU as of immediately prior to the  Distribution Effective Time; provided, that each such Lithium RSU shall not be subject to  any performance-based vesting conditions and shall vest solely based on the continuous  service of the Lithium Participant with the Lithium Group.  

 

  23  #90914078v33   (b) Effective as of the Distribution Effective Time, each Unbanked Parent PRSU  granted prior to January 1, 2019 that is outstanding as of immediately prior to the  Distribution Effective Time and held by a Parent Participant who is not a Former Parent  Employee shall be converted into both an Adjusted Unbanked Parent PRSU and a Lithium  PRSU, and each such Adjusted Unbanked Parent PRSU and Lithium PRSU shall be subject  to the same terms and conditions (including vesting and payment schedules and  performance-based vesting conditions) as were applicable to the corresponding Unbanked  Parent PRSU as of immediately prior to the Distribution Effective Time; provided that  from and after the Distribution Effective Time:   (i) the target number of shares of Parent Common Stock subject to such  Adjusted Unbanked Parent PRSU shall be equal to the target number of shares of Parent  Common Stock subject to the corresponding Unbanked Parent PRSU immediately prior to  the Distribution Effective Time;  (ii) the number of shares of Company Common Stock subject to such  Lithium PRSU shall be determined by the Parent Board (or an appropriate committee  thereof) in a manner intended, in combination with such Adjusted Unbanked Parent PRSU,  to preserve the target value of such Unbanked Parent PRSU by taking into account the  Distribution Ratio relative to the number of Unbanked Parent PRSUs, with any fractional  shares rounded down to the nearest whole number of shares; and  (iii) the performance-based vesting conditions applicable to the Adjusted  Unbanked Parent PRSU and the Lithium PRSUs may be equitably adjusted by the Parent  Board (or an appropriate committee thereof) in accordance with their terms to reflect the  effect of the Distribution.   (c) Effective as of the Distribution Effective Time, each Unbanked Parent PRSU  granted on or after January 1, 2019 that is outstanding as of immediately prior to the  Distribution Effective Time and held by a Parent Participant who is not a Former Parent  Employee shall be converted into an Adjusted Unbanked Parent PRSU.  The number of  shares of Parent Common Stock subject to such Adjusted Unbanked Parent PRSU shall be  determined by the Parent Board (or an appropriate committee thereof) in a manner intended  to preserve the target value of such Unbanked Parent PRSU by taking into account the  relative values of the Parent Pre-Distribution Stock Value and the Adjusted Parent Post- Distribution Stock Value, with any fractional shares rounded down to the nearest whole  number of shares.  Each such Adjusted Unbanked Parent PRSU shall be subject to the same  terms and conditions (including vesting and payment schedules and performance-based  vesting conditions) as applicable to the corresponding Unbanked Parent PRSU as of  immediately prior to the Distribution Effective Time; provided that the performance-based  vesting conditions applicable to such Adjusted Unbanked Parent PRSUs may be equitably  adjusted by the Parent Board (or an appropriate committee thereof) in accordance with  their terms to reflect the effect of the Distribution.  (d) Effective as of the Distribution Effective Time, each Unbanked Parent PRSU  that is outstanding as of immediately prior to the Distribution Effective Time and held by  a Former Parent Employee shall be converted into an Adjusted Unbanked Parent PRSU.   

 

  24  #90914078v33   The number of shares of Parent Common Stock subject to such Adjusted Unbanked Parent  PRSU shall be determined by the Parent Board (or an appropriate committee thereof) in a  manner intended to preserve the target value of such Unbanked Parent PRSU by taking  into account the relative values of the Parent Pre-Distribution Stock Value and the Adjusted  Parent Post-Distribution Stock Value, with any fractional shares rounded down to the  nearest whole number of shares.  Each such Adjusted Unbanked Parent PRSU shall be  subject to the same terms and conditions (including vesting and payment schedules and  performance-based vesting conditions) as applicable to the corresponding Unbanked  Parent PRSU as of immediately prior to the Distribution Effective Time; provided that the  performance-based vesting conditions applicable to such Adjusted Unbanked Parent  PRSUs may be equitably adjusted by the Parent Board (or an appropriate committee  thereof) in accordance with their terms to reflect the effect of the Distribution.  Section 8.04. Stock Option Distribution Adjustments.   (a) Effective as of the Distribution Effective Time, each Parent Option, whether  vested or unvested, that is outstanding as of immediately prior to the Distribution Effective  Time and held by a Lithium Participant shall be converted into an option to acquire  Company Common Stock (each, a “Lithium Option”) and shall be subject to the same  terms and conditions (including vesting and expiration schedules) as applicable to the  corresponding Parent Option as of immediately prior to the Distribution Effective Time;  provided that from and after the Distribution Effective Time, the number of shares of  Company Common Stock subject to, and the exercise price per share of, such Lithium  Option shall be determined by the Parent Board (or an appropriate committee thereof) in a  manner intended to preserve the value of such Parent Option by taking into account (A)  the exercise price per share of such Parent Option and (B) the relative values of the Parent  Pre-Distribution Stock Value and the Company Stock Value, with any fractional shares  rounded down to the nearest whole number of shares and any exercise price rounded up to  the nearest whole cent.  (b) Effective as of the Distribution Effective Time, each Parent Option, whether  vested or unvested, that is outstanding as of immediately prior to the Distribution Effective  Time and held by a Parent Participant (including, for the avoidance of doubt, any Former  Parent Employee) shall be converted into an Adjusted Parent Option and shall be subject  to the same terms and conditions (including vesting and expiration schedules) as applicable  to the corresponding Parent Option as of immediately prior to the Distribution Effective  Time; provided that from and after the Distribution Effective Time, the number of shares  of Parent Common Stock subject to, and the exercise price per share of, such Adjusted  Parent Option shall be determined by the Parent Board (or an appropriate committee  thereof) in a manner intended to preserve the value of such Parent Option by taking into  account (A) the exercise price per share of such Parent Option and (B) the relative values  of the Parent Pre-Distribution Stock Value and the Adjusted Parent Post-Distribution Stock  Value, with any fractional shares rounded down to the nearest whole number of shares and  any exercise price rounded up to the nearest whole cent.  (c) Notwithstanding anything to the contrary in this Section 8.04, the exercise  price, the number of shares of Parent Common Stock or Company Common Stock, as  

 

  25  #90914078v33   applicable, and the terms and conditions of exercise applicable to any Adjusted Parent  Option or Lithium Option, as the case may be, shall be determined in a manner consistent  with the requirements of Section 409A of the Code.   Section 8.05. Equity Award Adjustment Illustrations.  For an illustration of the  transactions contemplated by Section 8.02, Section 8.03 and Section 8.04, see Exhibit A  hereto. For the avoidance of doubt, Exhibit A represents an illustration only, and the  principles set forth in Section 8.02, Section 8.03 and Section 8.04 shall govern the actual  treatment of outstanding Parent RSUs, Banked Parent PRSUs, Unbanked Parent PRSUs  and Parent Options.  Section 8.06. Miscellaneous Terms and Actions; Tax Reporting and Withholding.    (a) Effective as of the Separation Effective Time, the Company shall adopt an  equity incentive compensation plan for the benefit of eligible participants (the “Lithium  Equity Plan”). Prior to the Distribution Effective Time, each of Parent and the Company  shall take any actions necessary to give effect to the transactions contemplated by this  Article VIII, including, in the case of the Company, the reservation, issuance and listing of  shares of Company Common Stock as is necessary to effectuate the transactions  contemplated by this Article VIII. From and after the Distribution Effective Time, (i) the  Company shall retain the Lithium Equity Plan, and all Liabilities thereunder shall constitute  Lithium Assumed Employee Liabilities, and (ii) Parent shall retain the Parent Equity Plan,  and all Liabilities thereunder shall constitute Parent Retained Employee Liabilities. From  and after the Distribution Effective Time, all Adjusted Parent Awards, regardless of by  whom held, shall be granted under and subject to the terms of the Parent Equity Plan and  shall be settled by Parent, and all Lithium Awards, regardless of by whom held, shall be  granted under and subject to the terms of the Lithium Equity Plan and shall be settled by  the Company. Notwithstanding anything to the contrary in this Agreement (including  Section 2.02 or Section 11.04), (i) each Parent Participant shall have third-party beneficiary  rights with respect to his or her Parent Awards that are converted into Lithium Awards  pursuant to this Article VIII, including the right to bring any Action against the Company  relating to or arising from such Lithium Awards and, other than pursuant to clause (ii)  below, neither Parent nor any other member of the Parent Group shall have any right or  remedy with respect to any Parent Participant’s Parent Awards that are converted into  Lithium Awards pursuant to this Article VIII, and (ii) any and all Actions brought by or on  behalf of any Parent Participant, Lithium Participant (or any dependent or beneficiary  thereof) or any other Person in respect of or relating to any Parent Awards that are  converted into Lithium Awards pursuant to this Article VIII shall be the sole obligation  and responsibility of the Company, and the Company shall indemnify, defend and hold the  Parent Group harmless from and against any and all such Actions and any Liabilities  related thereto.   (b) From and after the Distribution Effective Time, for purposes of any Parent  Participant’s Parent Awards converted into Lithium Awards pursuant to this Article VIII,  (i) a Parent Participant’s employment with or service to the Parent Group shall be treated  as employment with and service to the Lithium Group and (ii) any reference to “cause”,  “good reason”, “disability”, “willful” or other similar terms applicable to such Lithium  

 

  26  #90914078v33   Awards shall be deemed to refer to the definitions of “cause”, “good reason”, “disability”,  “willful” or other similar terms set forth in the Parent Equity Plan. From and after the  Distribution Effective Time, (x) any reference to a “change in control,” “change of control”  or similar term applicable to any Adjusted Parent Award contained in any applicable award  agreement, employment or services agreement or the Parent Equity Plan shall be deemed  to refer to a “change in control,” “change of control” or similar term as defined in such  award agreement, employment or services agreement or the Parent Equity Plan (a “Parent  Change in Control”) and (y) any reference to a “change in control,” “change of control”  or similar term applicable to any Lithium Award contained in any applicable award  agreement, employment or services agreement or the Lithium Equity Plan shall be deemed  to refer to a “change in control,” “change of control” or similar term as defined in the  Lithium Equity Plan (a “Lithium Change in Control”); provided, however, with respect  to any Parent Awards held by Parent Participants that are converted into Lithium Awards  pursuant to this Article VIII, a Parent Change in Control shall also be treated as a Lithium  Change in Control. For the avoidance of doubt, the Distribution shall not, in and of itself,  be treated as either a Parent Change in Control or a Lithium Change in Control. Neither  the Separation, the Distribution nor any assignment, transfer or continuation of the  employment of employees as contemplated by Article III shall be deemed a termination of  employment or service of any Lithium Participant or Parent Participant or a Parent Change  in Control or Lithium Change in Control for purposes of the Parent Equity Plan or the  Lithium Equity Plan, or any Parent Award or Lithium Award outstanding thereunder,  respectively, and, without limiting the generality of the foregoing, to the extent Parent  determines it necessary or desirable, each Parent RSU, Parent PRSU or Parent Option, as  the case may be, shall be amended to expressly clarify the same.  (c) Unless otherwise required by applicable Law, (i) the applicable member of  the Lithium Group shall be responsible for all applicable income, payroll, employment and  other similar tax withholding, remittance and reporting obligations in respect of Lithium  Participants relating to any Lithium Awards and (ii) the applicable member of the Parent  Group shall be responsible for all applicable income, payroll, employment and other  similar tax withholding, remittance and reporting obligations in respect of Parent  Participants relating to any Adjusted Parent Awards or Lithium Awards. The parties shall  facilitate performance by the other party of its obligations hereunder by promptly remitting  amounts withheld in respect of any Adjusted Parent Awards or Lithium Awards, as  applicable, directly to the applicable Governmental Authority on such other party’s behalf  or to the other Party for remittance to such Governmental Authority. The parties will  cooperate and communicate 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.  (d) The Company shall be responsible for the settlement of cash dividend  equivalents on any Lithium Awards held by a Lithium Participant, and Parent shall be  responsible for the settlement of cash dividend equivalents on any Adjusted Parent Awards  or Lithium Awards held by a Parent Participant or Former Parent Employee; provided that,  with respect to Lithium Awards held by Parent Participants, prior to the date any such  settlement is due, the Company shall pay Parent in cash amounts required to settle any  dividend equivalents accrued following the Distribution Effective Time.   

 

  27  #90914078v33   (e) The Company shall prepare and file with the SEC a registration statement on  an appropriate form with respect to the shares of Company Common Stock subject to the  Parent Awards converted into Lithium Awards pursuant to this Article VIII and shall use  its reasonable best efforts to have such registration statement declared effective as soon as  practicable following the Distribution Effective Time and to maintain the effectiveness of  such registration statement covering such Lithium Awards (and to maintain the current  status of the prospectus contained therein) for so long as any Lithium Awards remain  outstanding.    (f) Prior to the Distribution Effective Time, each party shall take all such steps  as may be required to cause any dispositions of Parent Common Stock (including Parent  Awards or any other derivative securities with respect to Parent Common Stock) or  acquisitions of Company Common Stock (including Lithium Awards or any other  derivative securities with respect to Company Common Stock) resulting from the  Distribution or the transactions contemplated by this Agreement or the Separation and  Distribution Agreement by each individual who is subject to the reporting requirements of  Section 16(a) of the Exchange Act with respect to Parent or who are or will become subject  to such reporting requirements with respect to the Company to be exempt under Rule 16b- 3 promulgated under the Exchange Act. With respect to those individuals, if any, who,  subsequent to the Distribution Effective Time, are or become subject to the reporting  requirements under Section 16(a) of the Exchange Act, as applicable, the Company shall  administer any Parent Award converted into a Lithium Award pursuant to this Article VIII  in a manner that complies with Rule 16b-3 promulgated under the Exchange Act to the  extent such converted Parent Award complied with such rule prior to the Distribution  Effective Time.  (g) From and after the Distribution Effective Time, each of Parent and the  Company shall cooperate in good faith to facilitate the orderly administration of the  Lithium Awards held by Parent Participants, including, without limitation, the sharing of  information relating to a Parent Participant’s employment or service status with the Parent  Group, as well as other information relating to the vesting and forfeiture of Lithium  Awards, tax withholding and reporting and compliance with applicable Law.   (h) Notwithstanding anything to the contrary herein, with respect to any Delayed  Transferred Employees whose employment is not transferred to the Lithium Group on or  prior to the Distribution Effective Time, any Parent Awards held by such Delayed  Transferred Employees shall be adjusted as of the Distribution Effective Time in the  manner set forth in Sections 8.02(b), 8.02(c), 8.03(b), 8.03(c) and 8.04(b), as applicable,  and such awards shall not be further adjusted upon the date such Delayed Transferred  Employee’s employment is transferred to the Lithium Group.  (i) Without limiting the generality of Section 8.04(c), and notwithstanding  anything to the contrary herein, all adjustments to Parent Awards contemplated by this  Article VIII shall be made in accordance with the terms and conditions of the Parent Equity  Plan (including, without limitation, Section 4.02 of the Parent Equity Plan) and, to the  extent applicable, in a manner consistent with the requirements of Section 409A of the  Code.  

 

  28  #90914078v33   ARTICLE IX  PERSONNEL RECORDS; PAYROLL AND TAX WITHHOLDING  Section 9.01. Personnel Records.  To the extent permitted by applicable Law,  each of the Lithium Group and the Parent Group shall be permitted by the other to access  and retain copies of such records, data and other personnel-related information in any form  (“Personnel Records”) as may be necessary or appropriate to carry out their respective  obligations under applicable Law, the Separation and Distribution Agreement or any of the  Ancillary Agreements, and for the purposes of administering their respective employee  benefit plans and policies.  All Personnel Records shall be accessed, retained, held, used,  copied and transmitted in accordance with all applicable Laws, policies and agreements  between the parties hereto.  Section 9.02. Payroll; Tax Reporting and Withholding.   (a) Subject to the obligations of the parties as set forth in the Transition Services  Agreement, effective as of no later than the Separation Date, (i)  the members of the  Lithium Group shall be solely responsible for providing payroll services (including for any  payroll period already in progress) to the Lithium Employees and for any Liabilities with  respect to garnishments of the salary and wages thereof and (ii) the members of the Parent  Group shall be solely responsible for providing payroll services (including for any payroll  period already in progress) to the Parent Employees and for any Liabilities with respect to  garnishments of the salary and wages thereof.   (b) To the extent consistent with the terms of the Tax Matters Agreement, the  party that is responsible for making a payment hereunder shall be responsible for  (i)  making the appropriate withholdings, if any, attributable to such payments and  (ii)  preparing and filing all related required forms and returns with the appropriate  Governmental Authority.    (c) With respect to Lithium Employees, the parties shall (i) treat the Company  (or the applicable member of the Lithium Group) as a “successor employer” and Parent (or  the applicable member of the Parent Group) as a “predecessor,” within the meaning of  Sections 3121(a)(1) and 3306(b)(1) of the Code, for purposes of taxes imposed under the  U.S. Federal Unemployment Tax Act or the U.S. Federal Insurance Contributions Act, and  (ii)  cooperate and use reasonable best efforts to implement the alternate procedure  described in Section 5 of Revenue Procedure 2004-53.  ARTICLE X  NON-U.S. EMPLOYEES AND EMPLOYEE PLANS  Section 10.01. Special Provisions for Employees and Employee Plans Outside of  the United States.    (a) From and after the date hereof, to the extent not addressed in this Agreement,  the parties shall reasonably cooperate in good faith to effect the provisions of this  Agreement with respect to employees and employee-, compensation- and benefits-related  

 

  29  #90914078v33   matters outside of the United States (including Employee Plans covering non-U.S. Parent  Participants and Non-U.S. Lithium Participants), which in all cases shall be consistent with  the general approach and philosophy regarding the allocation of Assets and Liabilities (as  expressly set forth in the recitals to this Agreement).   (b) Without limiting the generality of Section 3.03(a), to the extent required by  applicable Law or the terms of any Lithium CBA or similar employee representative  agreement, Lithium or a member of the Lithium Group, as applicable, shall become a party  to the applicable collective bargaining, works council, or similar arrangements with respect  to Lithium Employees or Lithium Contractor located outside of the United States and shall  comply with all obligations thereunder from and after the Separation Effective Time.  ARTICLE XI  GENERAL AND ADMINISTRATIVE  Section 11.01. Sharing of Participant Information.  To the maximum extent  permitted under applicable Law, Parent and the Company shall share, and shall cause each  member of its respective Group to reasonably cooperate with the other party hereto to  (i) share, with each other and their respective agents and vendors all participant information  reasonably necessary for the efficient and accurate administration of each of the Parent  Plans and the Lithium Plans (including notifications regarding the termination of  employment or service of any Lithium Participant or Parent Participant to the extent  relevant to the administration of a Parent Plan or Lithium Plan, as the case may be), (ii)  facilitate the transactions and activities contemplated by this Agreement and (iii) resolve  any and all employment-related claims regarding Lithium Participants.  The Company and  its respective authorized agents shall, subject to applicable Laws, be given reasonable and  timely access to, and may make copies of, all information relating to the subjects of this  Agreement in the custody of the Parent Group, to the extent reasonably necessary for such  administration.  Parent Group members shall be entitled to retain copies of all Company  Books and Records relating to the subjects of this Agreement in the custody of the Parent  Group, subject to the terms of the Separation and Distribution Agreement and applicable  Law.  Section 11.02. Cooperation.  Following the date of this Agreement, the parties  shall, and shall cause their respective Subsidiaries to, to cooperate in good faith with  respect to any employee compensation or benefits matters that either party reasonably  determines require the cooperation of the other party in order to accomplish the objectives  of this Agreement (including, without limitation, relating to any audits by any  Governmental Authorities).  Section 11.03. Notices of Certain Events.  Each of the Company and Parent shall  promptly notify and provide copies to the other of:  (a) written notice from any Person  alleging that the approval or consent of such Person is or may be required in connection  with the transactions contemplated by this Agreement; (b) any written notice or other  communication from any Governmental Authority in connection with the transactions  contemplated by this Agreement or the Separation and Distribution Agreement; and (c) any  actions, suits, claims, investigations or proceedings commenced or, to its knowledge,  

 

  30  #90914078v33   threatened against, relating to or involving or otherwise affecting the Lithium Group or the  Parent Group, as the case may be, that relate to the consummation of the transactions  contemplated by this Agreement or the Separation and Distribution Agreement; provided  that the delivery of any notice pursuant to this Section 11.03 shall not affect the remedies  available hereunder to the party receiving such notice.  Section 11.04. No Third Party Beneficiaries.  Notwithstanding anything to the  contrary herein, nothing in this Agreement shall:  (a) create any obligation on the part of  any member of the Lithium Group or any member of the Parent Group to retain the  employment or services of any current or former employee, director, independent  contractor or other service provider; (b) be construed to create any right, or accelerate  entitlement, to any compensation or benefit whatsoever on the part of any future, present,  or former employee or service provider of any member of the Parent Group or the Lithium  Group (or any beneficiary or dependent thereof) under this Agreement, the Separation and  Distribution Agreement, any Parent Plan or Lithium Plan or otherwise; (c) preclude the  Company or any Lithium Group member (or, in each case, any successor thereto), at any  time after the Separation Effective Time, from amending, merging, modifying,  terminating, eliminating, reducing, or otherwise altering in any respect any Lithium Plan,  any benefit under any Lithium Plan or any trust, insurance policy, or funding vehicle  related to any Lithium Plan (in each case in accordance with the terms of the applicable  arrangement); (d) preclude Parent or any Parent Group member (or, in each case, any  successor thereto), at any time after the Separation Effective Time, from amending,  merging, modifying, terminating, eliminating, reducing, or otherwise altering in any  respect any Parent Plan, any benefit under any Parent Plan or any trust, insurance policy,  or funding vehicle related to any Parent Plan (in each case in accordance with the terms of  the applicable arrangement); or (e) except as otherwise expressly provided in Section  8.06(a), confer any rights or remedies (including any third-party beneficiary rights) on any  current or former employee or service provider of any member of the Parent Group or the  Lithium Group or any beneficiary or dependent thereof or any other Person.   Section 11.05. Fiduciary Matters.  Parent and the Company 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 11.06. Consent of Third Parties.  If any provision of this Agreement is  dependent on the consent of any third party (such as a vendor or Governmental Authority),  the parties shall cooperate in good faith and use reasonable best efforts obtain such consent,  and if such consent is not obtained, to implement the applicable provisions of this  Agreement to the full extent practicable.  If any provision of this Agreement cannot be  implemented due to the failure of such third party to consent, the parties shall negotiate in  good faith to implement the provision in a mutually satisfactory manner.  A party’s  

 

  31  #90914078v33   obligation to use its “reasonable best efforts” shall not require such party to take any action  to the extent it would reasonably be expected to (i) jeopardize, or result in the loss or waiver  of, any attorney-client or other legal privilege, (ii)  contravene any applicable Law or  fiduciary duty, (iii) result in the loss of protection of any Intellectual Property or other  proprietary information or (iv) incur any non-routine or unreasonable cost or expense.    Section 11.07. Sponsored Employees.  The parties shall, and shall cause their  respective Group members, to cooperate in good faith with each other and the applicable  Governmental Authorities with respect to the process of obtaining work authorization for  each Sponsored Employee to work with the Company or a Lithium Group member,  including but not limited to, petitioning the applicable Governmental Authorities for the  transfer of each Sponsored Employee’s (as well as any spouse or dependent thereof, as  applicable) visa or work permit, or the grant of a new visa or work permit, to any Lithium  Group member.  Any costs or expenses incurred with the foregoing shall constitute Lithium  Assumed Employee Liabilities.  In the event that it is not legally permissible for a  Sponsored Employee to continue work with the Lithium Group from and after the  Separation Effective Time, the parties shall reasonably cooperate to provide for the services  of such Sponsored Employee to be made available exclusively to the Lithium Group under  an employee secondment or similar arrangement, which any costs incurred by the Parent  Group (including those relating to compensation and benefits in respect of such Sponsored  Employee) shall constitute Lithium Assumed Employee Liabilities.  ARTICLE XII  DISPUTE RESOLUTION  Section 12.01. General.  The provisions of Section 9.03 of the Separation and  Distribution Agreement shall apply, mutatis mutandis, to all disputes, controversies, or  claims (whether arising in contract, tort, or otherwise) that may arise out of or relate to, or  arise under or in connection with, this Agreement or the transactions contemplated hereby.  ARTICLE XIII  MISCELLANEOUS  Section 13.01. General.  The provisions of Article IX of the Separation and  Distribution Agreement (other than Section 9.10 of the Separation and Distribution  Agreement) are hereby incorporated by reference into and deemed part of this Agreement  and shall apply, mutatis mutandis, as if fully set forth in this Agreement.   Section 13.02. Entire Agreement; References.  This Agreement shall supersede and  replace the Prior Agreement in its entirety. For the avoidance of doubt, any references to  the “Employee Matters Agreement” in the Separation and Distribution Agreement, the  Ancillary Agreements, the Lithium Equity Plan or any other agreement or arrangement  entered into by Parent or the Company shall be deemed references to this Agreement.    [Signature Page Follows] 

 

[Signature Page to Amended and Restated Employee Matters Agreement]  #90914078v33  IN WITNESS WHEREOF, the parties have caused this Agreement to be executed  by their duly authorized representatives as of the date first above written.  FMC CORPORATION  By:       /s/ Pierre Brondeau                         Name: Pierre Brondeau  Title: Chief Executive Officer  LIVENT CORPORATION  By:      /s/ Paul Graves                                      Name: Paul Graves  Title: Chief Executive Officer and  President  

 

  Schedule I-1  #90914078v33   SCHEDULE I  Lithium CBAs    Collective Bargaining Agreement by and between Minera del Altiplano S.A. and the  Mining Workers’ Association of Argentina    

 

  Exhibit A-1  #90914078v33   Exhibit A  Illustrations of Outstanding Equity Award TreatmentDocument

Exhibit 10.18

FMC Corporation

Amended and Restated 
 Executive Severance Agreement

THIS AMENDED AND RESTATED EXECUTIVE SEVERANCE AGREEMENT is made and entered into as of the 15th day of May, 2018 (the “Effective Date”) by and between FMC Corporation (hereinafter referred to as the “Company”) and Andrew D. Sandifer (hereinafter referred to as the “Executive”) (the “Agreement”).

WHEREAS, the Executive is currently a party to an Executive Severance Agreement with the Company dated November 6, 2012 (the “Prior Agreement”); and

WHEREAS, the Executive and the Company desire that this Agreement replace and supersede the Prior Agreement and all other prior executive severance agreements with the Company.

NOW THEREFORE, to assure the Company that it will have the continued dedication of the Executive and the availability of the Executive’s service notwithstanding the possibility, threat, or occurrence of a Change in Control of the Company, and to induce the Executive to remain in the employ of the Company, and for other good and valuable consideration, the Company and the Executive agree to the amendment and restatement of the Prior Agreement as follows:

Article 1. Establishment, Term, and Purpose

This Agreement is effective from the Effective Date and will continue in effect until December 31, 2015. On that date, and on each subsequent December 31st, the term of this Agreement will be extended automatically for one (1) additional year, unless the Committee delivers written notice six (6) months prior to such date to the Executive that this Agreement will not be extended. If timely notice not to extend is given, this Agreement will terminate at the end of the term, or extended term, then in progress.

However, in the event a Change in Control occurs during the original or any extended term, this Agreement will remain in effect for the longer of: (i) twenty-four (24) months beyond the end of the month in which such Change in Control occurred; and (ii) until all obligations of the Company hereunder have been fulfilled, and until all benefits required hereunder have been paid to the Executive.

Article 2.  Definitions

Whenever used in this Agreement, the following terms will have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized.

2.1    Affiliate means a corporation or other entity controlled by, controlling or under common control with the Company, including, without limitation, any corporation 

Exhibit 10.18

partnership, joint venture or other entity during any period in which at least a fifty percent (50%) voting or profits interest is owned, directly or indirectly, by the Company or any successor to the Company.

2.2    Base Salary means the salary of record paid to an Executive as annual salary, excluding amounts received under incentive or other bonus plans, whether or not deferred.

2.3    Beneficiary means the persons or entities designated or deemed designated by the Executive pursuant to Section 11.2 herein.

2.4    Board means the Board of Directors of the Company.

2.5    Cause means:

(a)    the Executive’s Willful and continued failure to substantially perform the Executive’s employment duties in any material respect (other than any such failure resulting from physical or mental incapacity or occurring after issuance by the Executive of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive that specifically identifies the manner in which the Company believes the Executive has failed to perform the Executive’s duties, and after the Executive has failed to resume substantial performance of the Executive’s duties on a continuous basis within thirty (30) calendar days of receiving such demand;

(b)    the Executive’s Willfully engaging in conduct (other than conduct covered under (a) above) which is demonstrably and materially injurious to the Company or an Affiliate; or

(c)    the Executive’s having been convicted of, or pleading guilty or nolo contendere to, a felony under federal or state law on or prior to a Change in Control.

2.6    Change in Control means the happening of any of the following events:

(a)    An acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); excluding, however, the following:  (A) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (D) any acquisition pursuant to a 

Exhibit 10.18

transaction which complies with Subsections (i), (ii) and (iii) of Subsection (c) of this Section 2.6;

(b)    A change in the composition of the Board such that the individuals who, as of the Effective Date, constitute the Board (such Board will be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section 2.6, that any individual who becomes a member of the Board subsequent to the Effective Date, whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) will be considered as though such individual were a member of the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board will not be so considered as a member of the Incumbent Board;

(c)    Consummation of a reorganization, merger or consolidation, sale or other disposition of all or substantially all of the assets of the Company, or acquisition by the Company of the assets or stock of another entity (“Corporate Transaction”); excluding, however, such a Corporate Transaction pursuant to which (i) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than sixty percent (60%) of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person (other than the Company, any employee benefit plan (or related trust) of the Company or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, twenty percent (20%) or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Corporate Transaction, and (iii) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or

Exhibit 10.18

(d)    The approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.
2.7    Code means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

2.8    Committee means the Compensation and Organization Committee of the Board or any other committee of the Board appointed to perform the functions of the Compensation and Organization Committee.

2.9    Company means FMC Corporation, a Delaware corporation, or any successor thereto as provided in Article 10 herein.

2.10    Date of Separation from Service means the date on which a Qualifying Termination occurs.

2.11    Disability means complete and permanent inability by reason of illness or accident to perform the duties of the occupation at which the Executive was employed when such disability commenced.

2.12    Exchange Act means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto.

2.13    Good Reason means, without the Executive’s express written consent, the occurrence of any one or more of the following:

(a)    The assignment of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities and status (including, without limitation, offices, titles and reporting requirements) as an employee of the Company (including, without limitation, any material change in duties or status as a result of the stock of the Company ceasing to be publicly traded or of the Company becoming a subsidiary of another entity), or a reduction or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities from the greatest of those in effect (i) immediately preceding the Company’s entry into any definitive agreement to conduct the Change in Control, or (ii) immediately preceding the Change in Control;

(b)    The Company’s requiring the Executive to be based at a location which is at least fifty (50) miles further from the Executive’s then current primary residence than such residence is from the office where the Executive is located at the time of the Change in Control, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business obligations;

(c)    A reduction by the Company in the Executive’s Base Salary;

(d)    A material reduction in the Executive’s level of participation in any of the Company’s short- and/or long-term incentive compensation plans, or employee 

Exhibit 10.18

benefit or retirement plans, policies, practices, or arrangements in which the Executive participates from the greatest of the levels in place:  (i) immediately preceding the Company’s entry into any definitive agreement to conduct the Change in Control, or (ii) immediately preceding the Change in Control;

(e)    The failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform this Agreement, as contemplated in Article 10 herein.

provided that any such event shall constitute Good Reason only if Executive notifies the Company in writing of such event within 90 days following the initial occurrence thereof, the Company fails to cure such event within 30 days after receipt from Executive of written notice thereof, and Executive resigns his employment within two years following the initial occurrence of such event.

The existence of Good Reason will not be affected by the Executive’s temporary incapacity due to physical or mental illness not constituting a Disability.

2.14    Notice of Termination means a written notice which indicates the specific termination provision in this Agreement relied upon, and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

2.15    Person has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as provided in Section 13(d).

2.16    Qualifying Termination means any of the events described in Section 3.2 herein, the occurrence of which triggers the payment of Severance Benefits hereunder.

2.17    Separation from Service means the Executive’s termination of employment with the Company, its Affiliates and with each member of the controlled group (within the meaning of Sections 414(b) or (c) of the Code) of which the Company is a member.  An Executive will not be treated as having a Separation from Service during any period the Executive’s employment relationship continues, such as a result of a leave of absence, and whether a Separation from Service has occurred shall be determined by the Committee (on a basis consistent with rules under Section 409A) after consideration of all the facts and circumstances, including whether either no further services are to be performed or there is a reasonably anticipated permanent and substantial decrease (e.g., 80% or more) in the level of services to be performed (and the related amount of compensation to be received for such services) below the level of services previously performed (and compensation previously received).

2.18    Severance Benefits means the payment of severance compensation as provided in Section 3.3 herein.

2.19    Trust means the Company grantor trust described in Article 6 of this Agreement.

Exhibit 10.18

2.20    Willful means any act or omission by the Executive that was in good faith and with a reasonable belief that the action or omission was in the best interests of the Company or its affiliates.  Any act or omission based upon authority given pursuant to a duly adopted Board resolution, or, upon the instructions of any senior officer of the Company, or based upon the advice of counsel for the Company will be conclusively presumed to be taken or omitted by the Executive in good faith and in the best interests of the Company and/or its affiliates.

Article 3.  Severance Benefits

3.1    Right to Severance Benefits.  The Executive will be entitled to receive the Severance Benefits from the Company if a Qualifying Termination occurs after a Change in Control and before the end of the twenty-fourth (24th) calendar month following the end of the month in which the Change in Control occurs.

The Executive will not be entitled to receive Severance Benefits if the Executive’s employment is terminated (i) for Cause, (ii) due to a voluntary termination without Good Reason, or (iii) due to death or Disability.

3.2    Qualifying Termination.  A Qualifying Termination shall occur if:

(a)    The Executive incurs a Separation from Service because of an involuntary termination of the Executive’s employment by the Company for reasons other than Cause, Disability or death; or

(b)    The Executive incurs a Separation from Service because of a voluntary termination by the Executive for Good Reason pursuant to a Notice of Termination delivered to the Company by the Executive.

3.3    Description of Severance Benefits.  In the event the Executive becomes entitled to receive Severance Benefits, as provided in Sections 3.1 and 3.2 herein, the Company will pay to the Executive (or in the event of the Executive’s death, the Executive’s Beneficiary) and provide him with the following at the time or times provided in Section 4.1 herein:

(a)    An amount equal to three (3) times the highest rate of the Executive’s annualized Base Salary in effect at any time up to and including the Date of Separation from Service.

(b)    An amount equal to three (3) times the Executive’s highest annualized target Management Incentive Award granted under the FMC Corporation Incentive Compensation and Stock Plan for any plan year up to and including the plan year in which the Executive’s Date of Separation from Service occurs.

(c)    An amount equal to the Executive’s unpaid Base Salary, and unused and accrued vacation pay, earned or accrued through the Date of Separation from Service.

Exhibit 10.18

(d)    Any Management Incentive Award otherwise payable (but for Executive’s separation) for the plan year in which the Executive’s Date of Separation from Service occurred, prorated through the Date of Separation from Service.

(e)    A continuation of the Company’s welfare benefits of life and accidental death and dismemberment, and disability insurance coverage for three (3) full years after the Date of Separation from Service.  These benefits will be provided to the Executive (and to the Executive’s covered spouse and dependents) at the same premium cost, and at the same coverage level, as in effect as of the date of the Change in Control.  The continuation of these welfare benefits will be discontinued prior to the end of the three (3) year period if the Executive has available substantially similar benefits at a comparable cost from a subsequent employer, as determined by the Committee.

(f)    For a period of three (3) full years following the Date of Separation from Service, the Company shall provide medical insurance for the Executive (and the Executive’s covered spouse and dependents) at the same premium cost, and at the same coverage level, as in effect as of the date of the Change in Control.  The continuation of this medical insurance will be discontinued prior to the end of the three (3) year period if the Executive has available substantially similar medical insurance at a comparable cost from a subsequent employer, as determined by the Committee.  The date that medical benefits provided in this paragraph cease to be provided under this paragraph will be the date of the Executive’s qualifying event for continuation coverage purposes under Code Section 4980B(f)(3)(B).

Awards granted under the FMC Corporation Incentive Compensation and Stock Plan, and other incentive arrangements adopted by the Company will be treated pursuant to the terms of the applicable plan. 

The aggregate benefits accrued by the Executive as of the Date of Separation from Service under the FMC Corporation Salaried Employees’ Retirement Program, the FMC Corporation Savings and Investment Plan, the FMC Corporation Salaried Employees’ Equivalent Retirement Plan, the FMC Corporation Non-Qualified Savings and Investment Plan and other savings and retirement plans sponsored by the Company will be distributed pursuant to the terms of the applicable plan.

In addition, for purposes of benefit calculation only under the Company’s nonqualified retirement plans with respect to benefits that have not been paid prior to such Change in Control, it will be assumed that the Executive’s employment continued following the Date of Separation from Service for three (3) full years (i.e., three (3) additional years of age and service credits will be added); provided, however, that for purposes of determining “final average pay” under such programs, the Executive’s actual pay history as of the Date of Separation from Service will be used.

3.4    Termination for Disability.  If the Executive’s employment is terminated due to Disability, the Executive will receive the Executive’s Base Salary through the Date of Separation from Service, and the Executive’s benefits will be determined in accordance with the Company’s disability, retirement, survivor’s benefits, insurance and other applicable plans and programs 

Exhibit 10.18

then in effect.  If the Executive’s employment is terminated due to Disability, he will not be entitled to the Severance Benefits described in Section 3.3.

3.5    Termination upon Death.  If the Executive’s employment is terminated due to death, the Executive’s benefits will be determined in accordance with the Company’s retirement, survivor’s benefits, insurance and other applicable programs of the Company then in effect.  If the Executive’s employment is terminated due to death, neither the Executive’s estate nor the Executive’s Beneficiary will be entitled to the Severance Benefits described in Section 3.3.

3.6    Termination for Cause, or Other Than for Good Reason.  Following a Change in Control of the Company, if the Executive’s employment is terminated either:  (a) by the Company for Cause; or (b) by the Executive (other than for Good Reason), the Company will pay the Executive an amount equal to the Executive’s Base Salary and accrued vacation through the Date of Separation from Service, at the rate then in effect, plus all other amounts to which the Executive is entitled under any plans of the Company, at the time such payments are due and the Company will have no further obligations to the Executive under this Agreement.

3.7    Notice of Termination.  Any termination of employment by the Company or by the Executive for Good Reason will be communicated by a Notice of Termination.

Article 4.  Form and Timing of Severance Benefits

4.1    Form and Timing.  Subject to Section 4.2 and 5.3:

(a)    the amounts payable under Sections 3.3(a), (b) and (c) will be paid in a lump sum on the 31st day following the Termination Date;

(b)    the amount payable under Section 3.3(d) will be paid in a lump sum at the same time that Management Incentive Awards are paid to employees generally for the year in which the Executive’s Separation from Service occurs, but in no event later than 2 1⁄2 months following the end of that year; and

(c)    the benefits due under Sections 3.3(e) and 3.3(f) will continue uninterrupted following the Executive’s Separation from Service (but will be discontinued if the requirements of Section 4.2 are not timely satisfied).

4.2    Release.  All rights, payments and benefits due to the Executive under Section 3.3 (other than Section 3.3(c)) shall be conditioned on the Executive’s execution of a general release of claims against the Company and its affiliates in a form reasonably prescribed by the Company and on that release becoming irrevocable within 30 days following the Termination Date.

Article 5.  Taxes and Tax Compliance

5.1    Withholding of Taxes.  The Company will be entitled to withhold from any amounts payable under this Agreement all taxes as it may believe are reasonably required to be withheld (including, without limitation, any United States federal taxes and any other state, city, or local taxes).

Exhibit 10.18

5.2    Section 409A Compliance.  Notwithstanding any other provision of this Agreement to the contrary, any payment that constitutes the deferral of compensation (within the meaning of Treas. Reg. § 1.409A-1(b)) that is otherwise required to be made to the Executive prior to the day after the date that is six months from the Date of Separation from Service shall be accumulated, deferred and paid in a lump sum to the Executive (with interest on the amount deferred from the Date of Separation from Service until the day prior to the actual payment at the federal short-term rate on the Date of Separation from Service) on the day after the date that is six months from the Date of Separation from Service; provided, however, if Executive dies prior to the expiration of such six month period, payment to the Executive’s Beneficiary shall be made as soon as practicable following the Executive’s death. Any reimbursements or in-kind benefits that constitute a deferral of compensation (within the meaning of Treas. Reg. § 1.409A1(b)) will be provided subject to the requirements of Treas. Reg. §§ 1.409A3(i)(1)(iv)(A)(3), (4) and (5).

Article 6.  Establishment of Trust

The Company has created a domestic Trust (which will be a grantor trust within the meaning of Sections 671-678 of the Code) for the benefit of the Executive and Beneficiaries.  The Trust has a Trustee selected by the Company, and has certain restrictions as to the Company’s ability to amend the Trust or cancel benefits provided thereunder.  Any assets contained in the Trust will, at all times, be specifically subject to the claims of the Company’s general creditors in the event of bankruptcy or insolvency.

At any time following the Effective Date hereof, the Company may, but is not obligated to, deposit assets in the Trust in an amount equal to or less than the aggregate Severance Benefits which may become due to the Executive under Sections 3.3 (a), (b), (c) and (d) of this Agreement.

As soon as practicable after the Company has knowledge that a Change in Control is imminent, but no later than the day immediately preceding the date of the Change in Control, the Company will deposit assets in such Trust in an amount equal to the estimated aggregate Severance Benefits which may become due to the Executive under Sections 3.3 (a), (b), (c) and (d) of this Agreement.  Such deposited amounts will be reviewed and increased, if necessary, every six (6) months following a Change in Control to reflect the Executive’s estimated aggregate Severance Benefits at such time.

Article 7.  The Company’s Payment Obligation

The Company’s obligation to make the payments and the arrangements provided for herein will be absolute and unconditional, and will not be affected by any circumstances, including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the Company may have against the Executive or anyone else.  All amounts payable by the Company hereunder will be paid without notice or demand.  Each and every payment made hereunder by the Company will be final, and the Company will not seek to recover all or any part of such payment from the Executive or from whomsoever may be entitled thereto, for any reasons whatsoever.

Exhibit 10.18

The Executive will not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Agreement, and the obtaining of any such other employment will in no event effect any reduction of the Company’s obligations to make the payments and arrangements required to be made under this Agreement, except to the extent provided in Sections 3.3(e) and (f) herein.  Notwithstanding anything in this Agreement to the contrary, if Severance Benefits are paid under this Agreement, no severance benefits under any program of the Company, other than benefits described in this Agreement, will be paid to the Executive.

Article 8.  Fees and Expenses

To the extent permitted by law, the Company will pay as incurred (within ten (10) days following receipt of an invoice from the Executive) all legal fees, costs of litigation, prejudgment interest, and other expenses incurred in good faith by the Executive as a result of the Company’s refusal to provide the Severance Benefits to which the Executive becomes entitled under this Agreement, or as a result of the Company’s contesting the validity, enforceability, or interpretation of this Agreement, or as a result of any conflict between the parties pertaining to this Agreement; provided, however, that the Company will reimburse the Executive only for such expenses arising out of litigation commenced within three years following the Executive’s Separation from Service.  Notwithstanding any other provision in this Article 8, the Company will reimburse the Executive only for expenses incurred prior to the end of the fifth year following the Executive’s Separation from Service.

Article 9.  Outplacement Assistance

Following a Qualifying Termination (as described in Section 3.2 herein), the Executive will be reimbursed by the Company for the costs of all reasonable outplacement services obtained by the Executive within the two (2) year period after the Date of Separation from Service; provided, however, that reimbursements must be made by the end of the third year following the Date of Separation from Service and the total reimbursement for such outplacement services will be limited to an amount equal to fifteen percent (15%) of the Executive’s Base Salary as of the Date of Separation from Service.

Article 10.  Successors and Assignment

10.1    Successors to the Company.  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) of all or substantially all of the business and/or assets of the Company or of any division or subsidiary thereof to expressly assume and agree to perform the Company’s obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform them if no such succession had taken place.

10.2    Assignment by the Executive.  This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees.  If the Executive dies while any amount would still be payable to him hereunder had he continued to live, all such amounts, unless otherwise provided herein, will be paid in accordance with the terms of this Agreement to the 

Exhibit 10.18

Executive’s Beneficiary.  If the Executive has not named a Beneficiary, then such amounts will be paid to the Executive’s devisee, legatee, or other designee, or if there is no such designee, to the Executive’s estate, and such designee, or the Executive’s estate will be treated as the Beneficiary hereunder.

Article 11.  Miscellaneous

11.1    Employment Status.  Except as may be provided under any other agreement between the Executive and the Company, the employment of the Executive by the Company is “at will,” and may be terminated by either the Executive or the Company at any time, subject to applicable law.

11.2    Beneficiaries.  The Executive may designate one or more persons or entities as the primary and/or contingent Beneficiaries of any Severance Benefits owing to the Executive under this Agreement.  Such designation must be in the form of a signed writing acceptable to the Committee.  The Executive may make or change such designations at any time.

11.3    Severability.  In the event any provision of this Agreement will be held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Agreement, and the Agreement will be construed and enforced as if the illegal or invalid provision had not been included.  Further, the captions of this Agreement are not part of the provisions hereof and will have no force and effect.

11.4    Modification.  No provision of this Agreement may be modified, waived, or discharged unless such modification, waiver, or discharge is agreed to in writing and signed by the Executive and by an authorized member of the Committee, or by the respective parties’ legal representatives and successors.

11.5    Applicable Law.  To the extent not preempted by the laws of the United States, the laws of the state of Delaware will be the controlling law in all matters relating to this Agreement.

11.6    Indemnification.  To the full extent permitted by law, the Company will, both during and after the period of the Executive’s employment, indemnify the Executive (including by advancing him expenses) for any judgments, fines, amounts paid in settlement and reasonable expenses, including any attorneys’ fees, incurred by the Executive in connection with the defense of any lawsuit or other claim to which he is made a party by reason of being (or having been) an officer, director or employee of the Company or any of its subsidiaries.  The Executive will be covered by director and officer liability insurance to the maximum extent that that insurance covers any officer or director (or former officer or director) of the Company.

IN WITNESS WHEREOF, the parties have executed this amended and restated Agreement on this 21st day of May, 2018.

Exhibit 10.18

									
	FMC Corporation     		Executive:
	By:  /s/ Kyle Matthews                       
		/s/ Andrew D. Sandifer                               

	            Kyle Matthews		
			
	Its:       Vice President		
	            Human Resources		
			
	Attest:

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