Document:

Exhibit 10.141

    
      

    

     

    Exhibit
      10.141

    

    LEASE
      AGREEMENT

    

    This
      Lease,
      dated
      July 14, 2005 by and between:

    Dymond
      Development Company, LLC, a California Limited Liability
      Company
      ("Lessor") and Southwall
      Technologies, Inc., A California Corporation,
      ("Lessee"), is made with reference to the following facts:

    

    Lessor
      is
      the owner of a certain "Industrial Building" located at 2629B Terminal
      Boulevard, Mountain View, California, consisting of approximately 14,750 square
      feet and related parking facilities and landscaped areas, which property is
      legally describe on Exhibit "A" attached hereto and made a part
      hereof.

    

    Lessee
      desires to rent a portion of the industrial building and Lessor has agreed
      to
      lease the same to Lessee on the terms and conditions hereinafter set
      forth.

    

    NOW,
      THEREFORE, the parties agree as follows:

    

    
      	
              ARTICLE
                1.

            	
              DEMISED
                PREMISES AND COMMON AREAS

            

    

    

    1.01      
      Lessor
      does hereby lease to Lessee, and Lessee does hereby rent from Lessor, that
      portion of the Industrial Building located at 2629B Terminal Boulevard, Mountain
      View, California and consisting of approximately 9,750 square feet as shown
      on
      the drawing attached hereto as Exhibit "A" and made a part hereof, (the "Demised
      Premises"), together with the right to use the Common Areas of the Industrial
      Center as hereinafter describes. The parties hereby stipulate and agree that
      the
      Demised Premises constitutes 66.10% of the total leasable floor area of the
      Industrial Building.

    

    1.02      
      Lessee
      shall have the non-exclusive right to use the Common Areas of the able Common
      Areas of the Industrial Center, subject to any reasonable rules and regulations
      concerning such use as may be adopted from time to time by Lessor. The term
      "Common Areas" shall mean those areas adjacent to the Industrial Building
      provided and designated by Lessor for the general non-exclusive use by the
      occupants of the Industrial Building and their respective employees, customers
      and invitees, including parking areas, loading and unloading areas, trash areas,
      roadways, sidewalks, walkways, driveways, and landscaped areas. Lessor reserves
      the right of exclusive control and management of the Common Areas, including
      the
      right, in Lessor's sole discretion:

    

    
      	 	
              (a)

            	
              To
                make alterations or construct additional improvements within the
                Common
                Areas, so long as reasonable access to the demised Premises Remains
                available and so long as the conduct of Lessees business is not
                unreasonably interfered with.

            

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              (b)

            	
              To
                temporarily close any of the Common Areas for maintenance purposes,
                so
                long as reasonable access to the Demised Premises remains available,
                and
                so long as the conduct of Lessee's business is not unreasonably interfered
                with.

            

    

     

    
      	 	
              (c)

            	
              To
                use the Common Areas while engaged in making additional improvements,
                repairs or alterations to the Industrial Center, or any portion
                thereof.

            

    

    

    
      	
              ARTICLE
                2.

            	
              TERM

            

    

    

    2.01      
      The
      term
      of this Lease shall be a period of One
      (1) year,
      commencing on August 1 2005 ("Commencement Date"), and terminating on July
      31,
      2006, unless sooner terminated as provided herein ("Initial Term").

    

    2.02      
      If
      Lessor
      for any reason whatsoever, is unable to deliver possession of the Demised
      Premises to Lessee on the commencement date specified in Section 2.01 above,
      Lessor shall not be liable to Lessee for any loss or damage resulting therefrom,
      but in such event Lessee shall not be liable for rent or other sums due Lessor
      until possession of premises within 30 days of the commencement of the said
      term
      as specified above, this Lease may be declared void or voidable at option of
      Lessee.

    

    
      	
              ARTICLE
                3.

            	
              RENT

            

    

    

    3.01      
      Lessee
      shall pay to Lessor as Base Rent for the Demised Premises, in lawful money
      of
      the United States, payable in advance on or before the first day of each
      calendar month without any deduction, offset or demand, the following
      amounts:

    

    
      	
              MONTH

            	
              RENT

            	
              RENT/Sq.Ft.

            
	
              1-12

            	
              $5,655.00    
                per month

            	
              $
                0.58 NNN

            

    

    

    3.02      
      If
      the
      Commencement Date is not the first day of a calendar month, or if the
      Termination Date is not the last day or a calendar month, the monthly Base
      Rental for the fractional month shall be prorated on the basis of a thirty
      (30)
      day month.

    

    3.03      
      Lessee
      acknowledges the late payment of Base Rent and any other charges provided herein
      will cause Lessor to incur costs not contemplated by this Lease, the exact
      amount of such costs being extremely difficult and impracticable to determine.
      Such costs include, without limitation, processing and accounting charges,
      late
      charges that may be imposed on Lessor by the terms any encumbrances against
      the
      Industrial Building and penalties on delinquent tax payments. Lessee therefore
      agrees that if any installment of Base Rent or other charge payable by Lessee
      hereunder is not received by Lessor within fourteen (14) days after the same
      becomes due, Lessor shall be entitled to collect an additional sum equal to
      one
      and one-half percent (1.5%) of the delinquent payment for each month or fraction
      thereof that he Base Rent or other charge remains unpaid. Acceptance of any
      late
      charge shall not constitute a waiver of Lessee's default with respect to the
      overdue amount, nor prevent Lessor from exercising any other rights and remedies
      available to Lessor hereunder or provided by law.

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    
      	
              ARTICLE
                4.

            	
              SECURITY
                DEPOSIT

            

    

    

    4.01      
      Lessee
      has deposited with Lessor the sum of FIVE
      THOUSAND SIX HUNDRED
      FIFTY-FIVE
      AND 00/100 DOLLARS ($5,655.00)
      as and
      for a security deposit.

    

    4.02      
      If
      Lessee
      defaults with respect to any provision of this Lease, Lessor may use, apply
      or
      retain all or any part of the security deposit to cure such default or to
      compensate Lessor for all damages sustained by Lessor resulting from Lessee's
      default. If any portion of said deposit is so used or applied, Lessee shall
      within ten (10) days after receipt of written demand therefore, deposit cash
      with Lessor in an amount sufficient to restore the security deposit to its
      original amount, and Lessee's failure to do so shall constitute a material
      breach of this Lease. Lessor's obligations with respect to the security deposit
      are those of a debtor and not a trustee. Lessor shall not be required to
      segregate the security deposit as a separate fund and Lessee shall not be
      entitled to any interest thereon. If Lessee shall fully and faithfully perform
      every provision of this Lease, the security deposit or any balance thereof
      shall
      be returned to Lessee within ten (10) days after termination of the
      Lease.

    

    
      	
              ARTICLE
                5.

            	
              USE

            

    

    

    5.01      
      The
      Demised Premises shall be used and occupied by lessee
      solely for an office, distribution and warehouse and for no other or additional
      purpose without the prior written consent of Lessor.

    

    5.02      
      Lessee
      shall not use the Demised Premises or permit anything to be done in or about
      the
      Demised Premises which is prohibited by or will in any way conflict with any
      law, statute ordinance or governmental rule or regulation now in force or which
      may hereafter be in force, or which is prohibited by the
      standard form of fire insurance policy, or will in any way increase the existing
      rate of any fire or other insurance covering the Industrial Building or any
      of
      its contents, or cause any change or cancellation of such insurance. The
      judgment of any court of competent jurisdiction or the admission of Lessee
      in
      any action against Lessee, whether Lessor be a party thereto or not, that Lessee
      has violated any law, statute, ordinance or governmental rule, regulation or
      requirement with respect to the use of the Demised Premises, shall be conclusive
      of that fact as between
      Lessor and Lessee. Lessee shall not do or permit anything to
      be
      done in or about the Demised Premises which will in any way obstruct
      or interfere with the rights of other tenants in the Industrial
      Building, or injure or annoy them, or use or allow the Demised
      Premises to be used for any improper, immoral, unlawful or
      objectionable purpose, nor shall Lessee cause, maintain or permit any nuisance
      in, on or about the Demised Premises or commit
      or
      suffer to be committed any waste in, on or about the Demised
      Premises.

    

    
      
        
          
          

        

        
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              ARTICLE
                6.

            	
              LEASEHOLD
                IMPROVEMENTS

            

    

    

    6.01      
      Except
      as
      otherwise provided in Exhibit "B" contained herein,
      Lessor shall not be obligated to perform any alterations or improvements to
      the
      Demised Premises. Acceptance of the Demised
      Premises shall constitute an acknowledgement by Lessee that
      the
      Demised Premises are in good order, condition, and repair
      as
      of the date Lessee accepts possession of the Demised Premises.

    

    6.02      
      Except
      as
      expressly provided herein, Lessor shall have no
      obligation to make any alterations or improvements to the Demised
      Premises for the benefit of Lessee. Lessee acknowledges that
      neither Lessor nor anyone acting on Lessor's behalf has made any
      representation or warranty as to the suitability or fitness of
      the
      Demised Premises for the conduct of Lessee's business or for
      any
      other purpose.

    

    6.03      
      Notwithstanding
      anything contained in this Lease to the contrary,
      on the Commencement Date, the mechanical systems serving
      the Demised Premises, including the HVAC, electrical, plumbing
      and sewer, shall be in good operating condition.

    

    
      	
              ARTICLE
                7.

            	
              UTILITIES
                AND SERVICE

            

    

    

    7.01      
      Lessor
      shall provide at Lessors sole expense separate electricity
      and gas meters for the Demised Premises. Lessee shall establish
      its own account with the utility company to provide electricity
      and gas service to the Demised Premises and shall pay all
      fees
      and charges for such service directly to the utility company.

    

    7.02      
      Lessee
      shall pay, as additional rent, Lessee's pro-rata share
      the
      cost of the following utilities and services furnished to
      the
      Demised Premises, which pro-rata share shall be the proportion to which the
      Demised Premises bears to all other buildings
      which share the common areas.

     

    
      
        
          
          

        

        
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    (a)      
      22.05%
      of
      all water, sewer, and Common Area maintenance
      charges for the Industrial Center as billed to Lessee by
      Lessor, including but not limited to, landscape maintenance, lighting
      maintenance, utility charges, and parking lot sweeping. 

    

    (b)      
      Garbage
      collection charges attributable to the Demised Premises, as billed to Lessee
      by
      Lessor according to Lessee's actual usage thereof.

    

    The
      foregoing charges shall be due and payable to Lessor within ten (10) days after
      receipt of a billing therefor by Lessee, which billing shall contain evidence
      of
      the method by which Lessor calculated Lessee's use of water, sewer and common
      area maintenance
      service.

    

    7.03      
      Lessor
      shall maintain the Common Areas of the Industrial Building in good
      condition and repair, except for damage occasioned by negligence or willful
      misconduct of Lessee or Lessee's agents or invitees, which damage shall be
      promptly repaired by Lessor in a good and workman like fashion at Lessee's
      expense. Lessor shall have no obligation to provide janitorial service for
      the
      Demised Premises.

    

    7.04      
      Lessor
      shall not be in default hereunder or be liable for
      any
      damages directly or indirectly resulting from, nor shall the
      rent
      provided herein be abated by reason of Lessor's failure to furnish or delay
      in
      furnishing any utilities or services when such
      failure or delay is caused by accident, breakage, repairs, strikes,
      lockouts or other labor dispute, or by limitation, curtailment, rationing or
      restrictions on use of electricity, gas,
      water or other utility, or any other cause, similar or dissimilar, beyond the
      reasonable control of Lessor. Notwithstanding the above in the event said delay
      or failure continues
      for a period longer than ten (10) days, rent abate
      until said delay or failure is cured.

     

     

    
      	
              ARTICLE
                8.

            	
              INDEMNITY
                AMD INSURANCE

            

    

    

    8.01      
      Lessee
      hereby waives any and all claims against Lessor for
      damage to any property or injury to or death of any person in,
      upon
      or about the Demised Premises, arising at any time and from
      any
      cause except to the extent attributable to the negligence
      or willful misconduct of Lessor and/or Lessor's agents,
      employees, invitees and independent contractors. Lessee further
      expressly indemnifies and holds Lessor harmless from and against
      any and all third party claims, demands, causes of action,
      liabilities, costs or expenses, including attorney's fees, occasioned by or
      in
      any way connected with the use or misuse of the Demised Premises, or occasioned
      by any act or omission
      of Lessee and Lessee's agents, servants, employees, and invitees, except to
      the
      extent any such damage to any property or invitees,
      except to the extent any such damage to any property or injury
      to
      or death of any person is attributable to the negligence or willful misconduct
      of Lessor.

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    8.02      
      Lessee
      hereby agrees to maintain in full force and effect
      at
      all times during the term or this Lease, at Lessee's expense, a
      policy
      or
      policies of comprehensive general liability insurance, insuring against all
      liability of Lessee
      and Lessee's authorized representatives,
      agents
      and invitees arising out of or in connection with Lessee's use and occupancy
      of
      the Demised Premises and also insuring performance by Lessee of the indemnity
      provisions set forth in Section 8.01. The initial amount of such insurance
      shall
      be at least $2,000,000.00, and shall be subject to periodic increase based
      on
      inflation, recommendations by Lessor's insurance advisors, and other relevant
      factors. However, the amount of such general liability insurance shall not
      limit
      Lessee's liability to relieve Lessee of any obligations under is lease. The
      general liability insurance policy shall name Lessor
      as
      an insured party thereunder, and shall be endorsed to
      provide that no cancellation or reduction in coverage will be made
      without thirty (30) days prior written notice to Lessor. A copy of
      the
      policy or a certificate of insurance shall be furnished
      to Lessor.

    

    8.03      
      Lessor
      shall maintain in full force and effect a policy or
      policies covering loss or damage to the Industrial Building, to
      the
      extent of the replacement value thereof. . Such policy or policies
      shall
      provide protection against all perils included within the classification of
      fire, extended coverage, vandalism, malicious
      mischief, and any other perils (excluding flood and earthquake)
      which Lessor reasonably deems necessary. Lessor shall also
      maintain in full force and effect a rental income insurance policy,
      with loss payable to Lessor, in an amount equal to one year's
      gross rent from the
      Industrial Building, insurance shall
      also cover all real estate taxes and insurance costs for said
      period as they relate to the Industrial Building. Lessee shall
      pay
      to Lessor, as additional rent, an amount equal to 66.10% of the premiums paid
      by
      Lessor for the hazard and
      rental income
      insurance policies described herein as they pertain to the
      Demised Premises, such amount to be paid within ten (10) days after Lessee's
      receipt of a billing therefore from Lessor. Lessee shall be
      responsible for maintaining its own insurance covering the
      personal property, trade fixtures and removable leasehold
      improvements
      owned by
      Lessee and located upon the Demised Premises.

    

    8.04      
      Lessor
      and Lessee each hereby waive any and all rights of
      recovery against the other, or against the agents, employees or
      representatives of the other, on account of loss or damage to the
      property of the waiving party to the extent that such loss or
      damage
      is
      insured against under any insurance policies which either
      Lessor or Lessee may have in force at the time of such loss or damage. Lessee
      shall, upon obtaining the insurance required hereunder, give notice to the
      insurance carrier that the foregoing
      mutual waiver of subrogation is contained m this Lease and
      Lessee shall cause each insurance policy obtained by Lessee to provide that
      the
      insurance company waives all right of recovery by way of subrogation against
      either Lessor or Lessee in connection with any damage covered by such
      policy.

    

    
      
        
          
          

        

        
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              ARTICLE
                9.

            	
              REPAIRS
                AND MAINTENANCE

            

    

    

    9.01      
      Lessee
      shall, at all times during the term hereof and at Lessee's own expense, keep
      and
      maintain he Demised Premises and every part thereof I good condition and repair.
      Lessee hereby waives all rights to make repairs at the expense of Lessor or
      in
      lie thereof to vacate the Demised Premises as provided by California Civil
      Code
      Section 1942 or any other law, statute or ordinance now or hereafter in
      effect.

    

    9.02      
      The
      obligations of Lessee to maintain the Demised Premises shall not include the
      roof or structural components of the Industrial Building or any replacement
      of
      the air conditioning units or replacement of the compressor or heat exchanger
      within such units. Moreover, Lessor herby warrants to systems within the Demised
      Premises are in good operation condition and repair and Lessor will be
      responsible for any necessary repairs or replacements thereof, beyond normal
      maintenance, for a period of thirty (30) days form commencement of the lease
      term, provided such repair or replacement is not the result of any failure
      to
      maintain or any negligent act or omission by Lessee..

    

    
      	
              ARTICLE
                10.

            	
              TAXES
                AND ASSESSMENTS

            

    

    

    10.01      Lessee
      shall pay to Lessor as additional rent, 22.05% of all real property taxes levied
      or assessed against the Industrial Center during the Lease term, except that:
      

    

    (a)      
      Lessee
      shall pay 100% of any increase in real property taxes occasioned by a sale
      or
      transfer of the Industrial Building, or an ownership interest therein, resulting
      in a complete or partial reassessment of the property.

    

    (b)      
      Lessee
      shall not be charged for any increase in real property taxes occasioned by
      a
      sale or transfer of the Industrial Building, or an ownership interest therein,
      resulting in a complete or partial reassessment of the property.

    

    10.02      Payment
      by Lessee of the real property taxes referred to herein shall be made within
      ten
      (10) days after Lessor furnishes to Lessee a copy of the tax bill showing the
      total amount of property taxes levied or assessed against the Industrial
      Building, the amount thereof payable by Lessee, and the calculation utilized
      by
      Lessor to determine such amount. Billing shall be in two installments made
      by
      Lessor on or about February 1, and November 1, of each year of the
      Lease.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
        10.03      As
          used
          herein, the term "real property taxes" shall include any form of real estate
          tax
          or assessment, general, special ordinary or extraordinary, and any license
          fee,
          commercial rental tax, improvement bond or bonds, levy or tax imposed on
          the
          Industrial Building by any authority having the direct or indirect power
          to tax,
          including any city, state or federal agency or any school, sanitary, fire,
          street, drainage, or other improvement district. The term shall also include
          any
          tax, fee, levy assessment, or charge imposed by and taxing authority upon
          Lessor's right to receive, or the receipt of, rent or income from the Industrial
          Building, or against Lessor's business of leasing the Industrial Building.
          However, the term "real property taxes" does not include Lessor's federal
          or
          state personal income or franchise taxes.

        

        10.04      Lessee
          shall pay prior to delinquency all taxes levied or assessed against the
          trade
          fixtures, equipment, furnishings, and other personal property of Lessee
          located
          upon the Demised Premises. When possible, Lessee shall cause said trade
          fixtures, equipment, furnishings, and other personal property to be assessed
          and
          billed separately form the real property of Lessor. If any of Lessee's
          personal
          property shall be assessed with attributable to Lessee within ten (10)
          days
          after Lessor furnishes to Lessee a written statement describing the property
          in
          question and showing the amount of tax thereon payable by
          Lessee.

      

       

    

    
      	
              ARTICLE
                11.

            	
              ALTERATIONS
                AND IMPROVEMENTS

            

    

    

    11.01      Lessee
      shall not, without the prior written consent of Lessor (which consent shall
      not
      be unreasonably withheld), make any alterations, additions or improvement in,
      on
      or about he Demised Premises. As a condition to giving such consent, Lessor
      may
      require Lessee to provide Lessor a surety bond or other reasonable security
      satisfactory to Lessor to insure Lessor against mechanics' and materialmen's
      liens and to insure completion of the work.

    

    11.02      All
      alterations, additions and improvements, whether temporary
      or permanent in character, made by Lessee in, on or
      about
      the Demised Premises, except movable trade fixtures installed
      at the expense of Lessee, shall, in the absence or a written
      request by Lessor for their removal given at the time Lessor consents
      to the alteration, addition, or improvement, become
      the property of Lessor and shall remain upon and be surrendered
      with the Demised Premises at the termination or this Lease
      by
      lapse of time or otherwise without compensation to Lessee.

    

    
      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

     

    
      	
              ARTICLE
                12.

            	
              DAMAGE
                OR DESTRUCTION

            

    

    

    12.01      If
      the
      Demised Premises, are damaged, by fire or other casualty, Lessor shall forthwith
      repair and restore the same, provided such repairs can, in Lessor's opinion,
      be
      completed within thirty (30) days form the date the Demised Premises are
      damaged. In such event, this Lease shall remain in full force and effect, and
      the rent payable by Lessee shall be abated while the repairs are being made
      by
      the extent to which the Demised Premises are unusable by Lessee in the normal
      conduct of Lessee's business. In the event the repairs cannot be completed
      within thirty (30) days form the date the Demised Premises are damaged, and
      provided the damage affects the Demised Premises or Common Areas necessary
      to
      Lessee's use, Lessor shall give written notice of such fact to Lessee within
      five (5) days after the date on which the damage occurred and either Lessor
      Lessee may, within thirty (30) days after the giving of such notice, terminate
      this Lease.

    

    12.02      Notwithstanding
      the provisions of Section 12.01 above, Lessor shall have the option of
      terminating the Lease upon thirty (30) days written notice to Lessee of any
      of
      the following circumstances:

    

    (a)      
      Where
      the
      damage or destruction arises form a casualty or cause not covered by
      Lessor's insurance then in force.

    

    (b)      
      Where
      the
      building in which the Demised Premises are located in damaged or destroyed
      to
      the extent of 33-1/3 percent or more of the replacement cost thereof, whether
      the Demised Premises be injured or not.

    

    (c)      
      Where
      the
      repairs cannot be made by reason of any stature, ordinance, rule or regulation
      of any governmental authority.

    

    12.03      If
      Lessor
      is obligated or elects to repair any damage pursuant to this Article, Lessor
      shall not be required to repair or replace any improvements installed in the
      Demised Premises by or for Lessee, other than building standard tenant
      improvements made by Lessor, and Lessee shall, at Lessee's own option and
      expense, repair and restore Lessee's portion of such improvements.

    

    12.04      A
      total
      destruction of the Industrial Building in which the Demised Premises are located
      shall automatically terminate this Lease, and in such event, Lessor and Lessee
      shall have no further rights or obligations herein.

    

    12.05      Except
      as
      otherwise expressly provided in this Article, Lessee hereby waives the
      provisions of California Civil Code Sections 1932 (2) and 1933 (4).

    

    
      
        
          
          

        

        
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                ARTICLE
                  13.

              	
                CONDEMNATION

              

      

13.01      If
      all the Demised Premises or so much thereof is take by right of eminent domain,
      or purchase in lieu thereof, such that the Demised Premises, are in the
      reasonable opinion of Lessee, no longer reasonable suitable for Lessee's use,
      this Lease shall terminate as of the date that possession of the Demised
      Premises or part thereof is taken, and in such event, Lessor and Lessee shall
      have no further rights or obligations herein.

    

    13.02      If
      any
      part of the Demised Premises is taken and the remaining part thereof (after
      reconstruction of the then existing building) is reasonably suitable for
      Lessee's use, this Lease shall, as to the part taken and the rent payable
      hereunder shall be reduced in the same proportion that the floor area of the
      portion of the Demised Premises so take (less any addition thereto by reason
      of
      any reconstruction) bears to the original floor area of the Demised Premises
      immediately prior to the taking. Lessor shall, at Lessor's expense, within
      120
      days of the date all or a portion of the premises are taken, make all necessary
      repairs or alterations to restore the remaining Demised Premises to a complete
      architectural unit.

    

    13.03      No
      award
      for any partial or entire taking shall be apportioned and Lessee hereby assigns
      to Lessor all of Lessee's interest therein, except that Lessee shall be entitled
      to any portion of the award specifically designated as compensation for the
      taking of personal property belonging as compensation for the interruption
      of
      Lessee's business, for Lessee's moving costs and/or loss of goodwill suffered
      by
      Lessee. No temporary taking of the Demised Premises shall terminate this Lease.
      However, to the extent any such temporary taking is covered by any insurance
      policy procured by Lessor or Lessee hereunder, the Lessee shall have the right
      to abatement of rent hereunder. Any award recovered by Lessee and Lessor shall
      have no interest therein. Each party agrees to execute and deliver to the other
      all instruments and documents that may be required to implement the provisions
      of this Section.

    

    
      	
              ARTICLE
                14.

            	
              ASSIGNMENT
                AND SUBLETTING

            

    

    

    14.01      Lessee
      shall not voluntarily or by operation of law assign, transfer, mortgage, sublet,
      pledge, hypothecate or encumber all of any part of Lessee's interest in this
      Lease or in the Demised Premises or any part thereof, without Lessor's prior
      written consent and any attempt to do so without such consent being first had
      and obtained shall be wholly void and shall constitute a breach of this Lease.
      If Lessee is a corporation, or partnership any transfer of a controlling
      ownership interest in the stock of Lessee shall constitute an assignment
      hereunder.

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    14.02      If
      Lessee
      complies with the following conditions, Lessor shall not unreasonably withhold
      Lessor's consent to the assignment
      of this Lease or the subletting of the Demised Premises or any portion thereof.
      Lessee shall submit in writing to Lessor:

    

    
      
        (a)   The
          name
          and legal composition of the proposed Assignee or
          Sublessee;

      

    

    

    
      
        (b)   The
          terms
          and provisions of the proposed Assignment or Sublease;
          and

      

    

    

    
      
        (c)   Such
          financial information as Lessor may reasonably request concerning the proposed
          Assignee or Sublessee.

      

    

    

    14.03  No
      consent by Lessor to any assignment or subletting by Lessee shall relieve Lessee
      of any obligation to be performed by Lessee under this Lease, whether occurring
      before or after such consent, assignment or subletting. The consent by Lessor
      to
      any assignment or subletting shall not relieve Lessee from the obligation to
      obtain Lessor's express written consent to any other assignment or subletting.
      The acceptance or rent by Lessor from any other person shall not be deemed
      to be
      a waiver by Lessor of any provisions of this Lease or to be a consent to any
      assignment, subletting or other transfer. Consent to one assignment, subletting
      or other transfer shall not be deemed to constitute consent to any subsequent
      assignment, subletting or other transfer.

    

    
      	
              ARTICLE
                15.

            	
              TRANSFER
                OF LESSOR'S INTEREST

            

    

    

    15.01  Lessor
      shall have the right at any time to sell, transfer, assign, pledge, hypothecate
      or otherwise dispose of Lessor's interest in the Demised Premises and in this
      Lease. In the event of any such sale, transfer, assignment, pledge,
      hypothecation or other disposition, all obligations of Lessor hereunder shall
      devolve upon the transferee and Lessor shall be released and discharged from
      all
      further obligation or liability hereunder; provided, that Lessor shall be
      responsible for the Security Deposit and for any other funds in the hands of
      Lessor in which Lessee has an interest until such funds have been delivered
      to
      the transferee. Lessee agrees to attain to the transferee provided all of
      Lessor's obligations hereunder are assumed by the transferee in writing for
      the
      benefit of Lessee.

    

    
      	
              ARTICLE
                16.

            	
              MECHANICS'
                LIENS

            

    

    

    16.01  Lessee
      shall keep the Demised Premises free and clear of all mechanics' liens resulting
      from any construction work done by or for Lessee. Lessee shall have the right
      to
      contest the correctness or validity of any such lien if, immediately on demand
      by Lessor, Lessee procures and records a lien release bond issued by a
      corporation authorized to issue surety bonds in California in an amount equal
      to
      one and one-half (1-1/2) times the amount of the claim of lien or other security
      satisfactory to Lessor. If used, the bond shall meet the requirements of Section
      3143 of the California Civil Code and shall provide for the payment of any
      sum
      that the claimant may recover on the claim, together with costs of suit. Should
      Lessee fail to discharge any such lien or cause the same to be released within
      sixty (60) days from the date the lien is filed, Lessor may, without inquiring
      into the validity thereof, cause the same to be discharged and all amounts
      so
      expended by Lessor, together with reasonable attorney's fees and expenses,
      shall
      be paid by Lessee to Lessor as additional rent hereunder, together with interest
      thereon at the rate of ten percent (10%) per annum. Lessee shall give ten (10)
      days prior written notice to Lessor of the date on which any construction work
      will be commenced so as to afford Lessor the opportunity to post a notice of
      nonresponsibility.

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    
      	
              ARTICLE
                17.

            	
              ENTRY
                BY LESSOR

            

    

    

    17.01  Except
      for reasons of negligence or willful misconduct of Lessor, Lessor and Lessor's
      authorized representatives shall have the right to enter the Demised Premises
      at
      reasonable hours, after giving prior notice, for any of the following
      purposes:

    

    
      	 	
              (a)

            	
              To
                examine and inspect the Demised
                Premises;

            

    

    

    
      	 	
              (b)

            	
              To
                supply any service to be provided by Lessor to Lessee
                hereunder;

            

    

    

    
      	 	
              (c)

            	
              To
                perform any necessary maintenance or repairs that Lessor is required
                or
                permitted to perform hereunder;

            

    

    

    
      	 	
              (d)

            	
              To
                serve, post or keep posted any notices required or allowed under
                the
                provisions of this Lease;

            

    

    

    
      	 	
              (e)

            	
              To
                post "for sale" signs at any time during the term, to post "for rent"
                or
                "for lease" signs during the last on hundred twenty (120) days of
                the
                Lease term, or during any period while Lessee is in
                default;

            

    

    

    
      	 	
              (f)

            	
              To
                show the Demised Premises to prospective tenants, buyers, lenders
                or other
                persons at any time during the Lease
                term;

            

    

    

    
      	 	
              (g)

            	
              To
                do any other act or thing necessary for the safety or preservation
                of the
                Industrial Building.

            

    

    

    17.02  Lessee
      hereby waives any claim for damages for any injury or inconvenience to or
      interference with Lessee's Business, any loss of occupancy or quiet enjoyment
      of
      the Demised Premises or any other loss occasioned by Lessor's entry pursuant
      to
      Section 17.01, except for reasons of negligence or willful misconduct of Lessor
      and or Lessor's agents, employees, invites and independent contractors. Lessor
      shall at all times have and retain a key with which to unlock all of the doors
      in, on or about the Demised Premises (excluding Lessee's vaults, safes and
      other
      secured areas designated in writing by Lessee in advance); and Lessor shall
      have
      the right to use any and all means which Lessor may deem proper to open said
      doors in an emergency in order to obtain entry to the Demised Premises, and
      any
      entry to the Demised Premises obtained by Lessor by any of said means, or
      otherwise, shall not under any circumstances by construed or deemed to be a
      forcible or unlawful entry into or a detainer of the Demised Premises, or an
      eviction, actual or constructive, of Lessee from the Demised Premises, or any
      portion thereof.

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    
      	
              ARTICLE
                18.

            	
              DEFAULT
                BY LESSEE

            

    

    

    18.01  The
      occurrence of any one or more of the following events ("Events of Default")
      shall constitute a material default and breach of this Lease by
      Lessee:

    

    
      	 	
              (a)

            	
              Any
                failure by Lessee to pay any rental or any other sum required to
                be paid
                by Lessee hereunder, as and when the same becomes due and payable
                and
                within five (5) days of Lessee's receipt of Lessor's written notice
                that
                such rental or other sum is due.

            

    

    

    
      	 	
              (b)

            	
              Any
                failure by Lessee to observe and perform any other provision of this
                Lease
                to be observed or performed by Lessee, where such failure continues
                for
                ten (10) days after written notice thereof by Lessor to Lessee; provided,
                however, that if the nature of such default is such that it cannot
                reasonably be cured within such ten (10) day period, Lessee shall
                not be
                deemed to be in default if
                Lessee shall within such period commence such cure and thereafter
                diligently prosecute the same to
                completion.

            

    

    

    
      	 	
              (c)

            	
              The
                making by Lessee of any general assignment or general arrangement
                for the
                benefit of creditors; the filing by or against Lessee of a petition
                to
                have Lessee adjudged a bankrupt or a petition for reorganization
                or
                arrangement under any law relating to bankruptcy (unless, in the
                case of a
                petition filed against Lessee, the same is dismissed within ninety
                (90)
                days); the appointment of a trustee or receiver to take possession
                of
                substantially all of Lessee's interest in this Lease, where possession
                is
                not restored to Lessee within sixty (60) days; or the attachment,
                execution or other judicial seizure of substantially all of Lessee's
                assets located at the Demised Premises or of Lessee's interest in
                this
                Lease, where such seizure is not discharged within forty-five (45)
                days.

            

    

    
      

      
        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

    

    18.02  Any
      notice given under this Article shall specify the Event of Default and the
      applicable lease provisions, and shall demand that Lessee perform the provisions
      of this Lease, within the applicable period of time. No such notice shall be
      deemed a forfeiture or a termination of the Lease provided Lessee cures the
      default within the applicable period of time.

     

    
      	
              ARTICLE
                19.

            	
              LESSOR'S
                REMEDIES UPON DEFAULT

            

    

    

    19.01  Lessor
      shall have the following remedies upon the occurrence of an Event of Default,
      such remedies being cumulative and not exclusive and in addition to any other
      remedies available to Lessor as now or hereafter provided by law:

    

    
      	 	
              (a)

            	
              Lessor
                can continue this Lease in full force and effect, and the Lease will
                continue in effect as along as Lessor does not terminate Lessee's
                right to
                possession, and Lessor shall have the right to collect rent when
                due,
                irrespective of whether Lessee shall have abandoned the Demised Premises.
                During the period Lessee is in default, Lessor can enter the Demised
                Premises and relet them, or any part of them, to third parties for
                Lessee's account. Lessee shall be liable immediately to Lessor for
                all
                reasonable costs Lessor incurs in such reletting, including, without
                limitation, broker's commissions, expenses of remodeling the Demised
                Premises required by reletting, and like costs. Reletting can be
                for
                period shorter or longer than the remaining term of this Lease. Lessee
                shall pay to Lessor the rent specified in this Lease on the dates
                when the
                same becomes due, less the rent Lessor receives from any reletting.
                No act
                by Lessor allowed by this paragraph shall terminate this Lease unless
                Lessor notifies Lessee that Lessor elects to terminate this Lease.
                After
                Lessee's default and for as long as Lessor does not terminate Lessee's
                right to possession of the Demised Premises, Lessee shall have the
                right
                to assign or sublet Lessee's interest in this Lease pursuant to Article
                14, but Lessor's consent may be conditioned upon all defaults by
                Lessee
                being fully cured at the time of assignment or
                subletting.

            

    

    

    
      	 	
              (b)

            	
              Lessor
                can terminate Lessee's right to possession of the Demised Premises
                at any
                time during Lessee's default. No act by Lessor other than giving
                written
                notice to Lessee shall terminate this Lease. Acts of maintenance,
                efforts
                to relet the Demised Premises, or the appointment of a receiver on
                Lessor's initiative to protect Lessor's interest under this Lease
                shall
                not constitute a termination of Lessee's right to possession. On
                termination, Lessor has the right to recover from
                Lessee:

            

    

    

    
      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              (1)

            	
              The
                worth, at the time of the award, of the unpaid rent that has been
                earned
                at the time of termination of this Lease;
                plus

            

    

    

    
      	 	
              (2)

            	
              The
                worth, at the time of the award, of the amount by which the unpaid
                rent
                that would have been earned after the date of termination of this
                Lease
                until the time of award exceeds the amount of the loss of rent that
                Lessee
                proves could have been reasonably avoided;
                plus

            

    

    

    
      	 	
              (3)

            	
              The
                worth, at the time of the award, of the amount by which the unpaid
                rent
                for the balance of the term after the time of award exceeds the amount
                of
                the loss of rent that Lessee proves could have been reasonably avoided;
                plus

            

    

    

    
      	 	
              (4)

            	
              Any
                other amount, and court costs, necessary to compensate Lessor for
                all
                detriment proximately cause Lessee's
                default.

            

    

    

    "The
      worth, at the time of the award," as used in (1) and (2) above, is to computed
      by allowing interest at the rate of ten percent (10%) per annum from the date
      of
      default. "The worth, at the time of the award" as used in (3) above is to be
      computed by discounting the amount at the discount rate of the Federal Reserve
      Bank of San Francisco at the time of the award, plus one percent (1%). The
      term
      "rent," as used in this Article shall be deemed to include all monetary sums
      required to be paid by Lessee pursuant to the terms of this Lease.

    

    
      	
              ARTICLE
                20.

            	
              LESSOR'S
                RIGHT TO CURE DEFAULTS

            

    

    

    20.01  If
      Lessee
      shall fail to pay any sum of money, other than rent, required to be paid by
      Lessee here under, or shall fail to perform any other act on Lessee's part
      to be
      performed hereunder, and such failure shall continue for ten (10) days after
      notice thereof by Lessor, Lessor may, but shall not be obligated to do so,
      and
      without waiving or releasing Lessee from any obligations of Lessee, make such
      payment or perform any such other act on Lessee's part to be made or performed
      hereunder. All sums expended by Lessor, including necessary incidental costs,
      shall be deemed additional rent hereunder and shall by payable to Lessor
      immediately upon demand, together with interest thereon at the rate of ten
      percent (10%) per annum form the date of expenditure to the date of
      reimbursement.

    

    
      	
              ARTICLE
                21.

            	
              COSTS
                OF SUIT

            

    

    

    21.01  In
      the
      event legal action between Lessor and Lessee shall become necessary in order
      to
      enforce or interpret this Lease, or any provision contained herein, the
      prevailing party shall be entitled to recover all costs and expenses as may
      be
      incurred in connection therewith, including reasonable attorney's
      fees.

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

    21.02  Should
      Lessor, without fault on Lessor's part, be made a party to any litigation
      instituted by Lessee or by any third party against Lessee, or by or against
      any
      person holding under or using the Demised Premises by license of Lessee, or
      for
      the foreclosure of any lien for labor or materials furnished to or for Lessee
      or
      any such other person or otherwise arising out of or resulting from any act
      or
      transaction of Lessee or of any such other person, Lessee covenants to save
      and
      hold Lessor harmless from any judgment rendered against Lessor or the Demised
      Premises or any part thereof, and all costs and expenses, including reasonable
      attorney's fees, incurred by Lessor in connection with such
      litigation.

    

    
      	
              ARTICLE
                22.

            	
              SUBORDINATION

            

    

    

    22.01  In
      the
      event the holder of any deed of trust hereafter to be placed against the Demised
      Premises requires that this Lease be subordinate to any such encumbrance, this
      Lease shall be subordinate to that encumbrance if Lessor first obtains from
      the
      holder of the deed of trust a written Subordination, Non-Disturbance and
      attornment agreement providing that for so long as Lessee shall perform all
      of
      Lessee's duties and obligations hereunder, no foreclosure, deed given in lieu
      of
      foreclosure or sale under such deed of trust shall affect Lessee's rights under
      the Lease. Lessee shall attorn to any purchaser at any foreclosure sale, or
      to
      any grantee or transferee designated in any deed given in lieu of foreclosure.
      Lessee shall execute the written agreement and any other documents required
      by
      the holder of the deed of trust to accomplish the purposes of this Article
      and
      upon Lessee's failure or refusal to do so within five (5) days after demand,
      Lessee hereby appoints Lessor as Lessee's attorney-in-fact to execute such
      agreement or other documents for and on behalf of Lessee. The power of attorney
      granted herein shall be deemed to be coupled with an interest and to be
      irrevocable.

    

    
      	
              ARTICLE
                23.

            	
              ESTOPPEL
                CERTIFICATE

            

    

    

    23.01  Each
      party, within ten (10) days after written notice from the other, shall execute
      and deliver to the other, in recordable form, a certificate stating that this
      Lease is unmodified and in full force and effect, or in full force and effect
      as
      modified stating the modifications. The certificate also shall state the amount
      of monthly rent, the dates to which the rent has been paid in advance, the
      amount of any security deposit or prepaid rent, and shall further certify that
      there is no incurred default by the other party under the Lease, or specify
      such
      default, if any is claimed. Failure to deliver the certificate with the ten
      (10)
      days, shall be conclusive upon the party failing to deliver the certificate
      for
      the benefit of the party requesting the certificate, and any successor to the
      party requesting the certificate, that this Lease is in full force and effect
      and has not been modified except as may be represented by the party requesting
      the certificate, that there are no incurred defaults by the party requesting
      the
      certificate and that not more than one (1) month's rent has been paid in
      advance.

    

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    

    
      	
              ARTICLE
                24.

            	
              HOLDING
                OVER

            

    

    

    24.01  If
      Lessee
      remains in possession of all or any part of the Demised Premises after the
      expiration of the term hereof with the express or implied consent of Lessor,
      such tenancy shall be from month to month only, and not a renewal hereof or
      an
      extension for any further term and in such case rent shall be double the amount
      payable at the expiration of the term of this Lease and such month to month
      tenancy and other monetary sums due hereunder shall be subject to every other
      term, covenant and agreement contained herein.

    

    
      	
              ARTICLE
                25.

            	
              SURRENDER

            

    

    

    25.02  Upon
      the
      expiration or earlier termination of this Lease, Lessee shall surrender the
      Demised Premises in the same condition as received, ordinary wear and tear
      and
      damage by fire, earthquake, act of God or the elements alone excepted. Lessee
      shall remove all of Lessee's personal property and moveable trade fixtures
      and
      shall repair, at Lessee's expense, any damage to the Demised Premises or the
      Industrial Building cause by such removal, including, without limitation, repair
      of floors and patching and repainting of walls where required, all to Lessor's
      reasonable satisfaction. Any personal property or moveable trade fixtures not
      removed at the expiration or earlier termination of this Lease shall be pursuant
      to section 11.02 herein, and deemed abandoned by Lessee. If Lessor so elects,
      Lessee shall also remove any alterations or improvements installed by or for
      Lessee which would otherwise remain as part of the Demised Premises and Lessee
      shall restore the Demised Premises to their condition prior to such
      installation.

    

    25.02  Should
      Lessee fail to remove any personal property or movable trade fixtures, or fail
      to remove any alterations or improvements as requested by Lessor pursuant to
      section 11.02 herein, Lessee shall be liable to Lessor for any and all removal
      costs, transportation and storage expenses, and the cost of restoring the
      Demised Premises as required herein. Lessee shall indemnify Lessor against
      any
      loss, damage or liability resulting from delay by Lessee in so surrendering
      the
      Demised Premises, including, without limitation, any claims made by an
      succeeding tenants founded on such delay.

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    
      	
              ARTICLE
                26.

            	
              WAIVER

            

    

    

    26.01  No
      covenant, term or condition or the breach thereof shall be deemed waived, except
      by written consent of the party against whom the waiver is claimed, and any
      waiver of any covenant, term or condition shall not be deemed to be a waiver
      of
      any preceding or succeeding breach of the same or any other covenant, term
      or
      condition. Acceptance by Lessor of any performance by Lessee after the time
      the
      same shall have become due shall not constitute a waiver by Lessor of the breach
      or default of any covenant, term or condition unless otherwise expressly agreed
      to by Lessor in writing. The receipt and acceptance by Lessor of delinquent
      rent
      shall constitute only a waiver of timely payment for the particular rent payment
      involved.

    

    
      	
              ARTICLE
                27.

            	
              QUIET
                ENJOYMENT

            

    

    

     Lessor
      hereby covenants with lessee that upon payment by Lessee of the rent as
      aforesaid and upon observance and performance of the terms of this Lease by
      Lessee, Lessee shall peaceably hold and enjoy the Demised Premises for the
      term
      hereby demised without hindrance or interruption by Lessor or any person or
      person lawfully or equitable claiming by, through or under Lessor.

    

    
      	
              ARTICLE
                28.

            	
              NOTICES

            

    

    

    28.01  All
      notices or demands required or permitted to be given hereunder shall be in
      writing and shall be either personally served or mailed by certified mail,
      return receipt requested, to the other party at the following
      addresses:

    

    
      	
              DYMOND
                DEVELOPMENT COMPANY, LLC

            	
              SOUTHWALL
                TECHNOLOGIES, INC.

            
	 	 
	
              450
                FIRST STREET

            	
              2629B
                TERMINAL BOULEVARD

            
	
              LOS
                ALTOS,  CALIFORNIA 94022

            	
              MOUNTAIN
                VIEW,  CALIFORNIA
                94043

            

    

    

    28.02  Either
      party may change the foregoing address by giving notice to the other in the
      manner provided herein. Any notice sent by mail shall be deemed received on
      the
      second business day following the date of deposit of the notice in the United
      States Mail, with proper postage prepaid thereon.

    

    
      	
              ARTICLE
                29.

            	
              MISCELLANEOUS
                PROVISIONS

            

    

    

    29.01  Captions. The
      captions used in this Lease are for convenience only and shall not be deemed
      to
      be relevant in resolving any question of interpretation or construction of
      any
      provision contained herein.

    

    29.02  Entire
      Agreement. This
      Agreement constitutes the entire agreement between the parties and supersedes
      and cancels any prior agreements or understandings, whether written or oral.
      This Agreement can only be modified by a written amendment hereto executed
      by
      both parties.

    

    
      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

    

    [PAGE
      18 OF AGREEMENT MISSING]

     

    
      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

    

    arbitration
      by choosing three Real Estate Brokers; one (1) by Lessor, one (1) by Lesse
      and
      the third by the first two (2) Brokers. The decision of the three (3) Brokers
      will be binding upon Lessor and Lessee with regards to the "Fair Market Value".
      Lessee shall give Lessor written notice at least ninety (90) days prior to
      the
      expiration date of this Lease of Lessee's intention to exercise said option
      granted herein. In order for Lessee to avail itself of said option period,
      Lessee must have lived up to and observed the timely performance of all terms,
      covenants and conditions contained in the Lease Agreement. In any event,
      however, Lessee shall not be obligated to any renewal until after Lessee has
      been advised of the Fair Market Value determined above.

    

    IN
      WITNESS WHEREOF, Lessor
      and Lessee have executed this lease the day and year first above
      written.

    

    

    
      	
              LESSOR:

            	 	
              LESSEE:

            	 
	 	 	 	 
	
              DYMOND
                DEVELOPMENT COMPANY, LLC

            	
              SOUTHWALL
                TECHNOLOGIES, INC.

            
	 	 	 	 
	
              By

            	 
	
              /s/
                Mitell Kalai

            	 	
              By

            	 
	
              /s/
                S. Kamenski

            	 
	
              DATE

            	
              7/22/05

            	 	
              DATE

            	
              7/15/05

            	 

    

    

    

    
      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

     

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    Exhibit
      C to Lease

    Dated

    July
      12, 2005

    Between

    Dymond
      Development Company, LLC (Lessor)

    And

    Southwall
      Technologies, Inc. (Lessee)

    

    

    Lessor,
      at Lessor's sole cost and expense, agrees to perform the following tenant
      improvements for the benefit of Lessee as shown in Exhibit B attached
      herein:

    

    
      	 	
              1.

            	
              Remove
                the wire cage that is located in the warehouse
                area.

            

    

    

    
      	 	
              2.

            	
              Remove
                the existing storage room located on the rear wall of the warehouse
                area
                between two (2) roll up doors.

            

    

    

    
      	 	
              3.

            	
              Raise
                the existing light fixtures within the designated area, to a height
                of
                seventeen (17) feet.

            

    

    

    
      	 	
              4.

            	
              Remove
                three (3) existing walls and three (3) existing doors on the southwest
                side of the warehouse.

            

    

    

    
      	 	
              5.

            	
              Modify
                one (1) HVAC duct in the warehouse area as requested by Lessee in
                order
                for Lessee to gain the required clearance, which they will
                need.

            

    

    

    
      	 	
              6.

            	
              Remove
                existing HVAC ducts that are no longer necessary due to the removal
                of the
                storage room and the offices.

            

    

     

     

    20Tronox exhibit 10.17 2005

    
      

    

    Exhibit
      10.17

     

    CERTIFICATE

    

    

    I,
      the undersigned, Roger G. Addison, Secretary of TRONOX INCORPORATED, a Delaware
      corporation, do hereby certify that the attached is a full, true and correct
      copy of the Tronox Incorporated 2005 Long Term Incentive Plan (“Plan”), as
      approved by the corporation’s sole stockholder on November 16, 2005, at which
      time the Plan became effective.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and the seal of said corporation
      this 21st
      day of November, 2005.

    

    (SEAL)

    /s/
      Roger G.
      Addison              
 

    Roger
      G. Addison, Secretary

    

    

    STATE
      OF OKLAHOMA     )

                                                      
      )
      ss.

    COUNTY
      OF OKLAHOMA )

    

    On
      this 21st
      day of November, 2005, before me personally appeared Roger G. Addison to me
      known to be the individual described in and who executed the foregoing
      instrument, and he duly acknowledged to me that he executed the same and, being
      by me duly sworn, did depose and say that the statements therein contained
      are
      true.

    

    

    

    /s/
      Irla
      Brady                      

    Notary
      Public

    My
      Commission expires:

    (Seal)

    December
      14, 2007

    
 

     

    

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      

      

      

      

      

       

      

      TRONOX
        INCORPORATED 2005 LONG TERM INCENTIVE PLAN

       

       

       

       

       

      
 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      TRONOX
        INCORPORATED 2005 LONG TERM INCENTIVE PLAN

      

      

      TABLE
        OF CONTENTS

      

      

      
        	
                Article

              	 	
                Page

              
	 	 	 
	
                I

              	
                Purpose..................................................................................................... 

              	
                1

              
	 	 	 
	
                II

              	
                Definitions...................................................................................................

              	
                1

              
	 	 	 
	
                III

              	
                Administration...............................................................................................

              	
                3

              
	 	 	 
	
                IV

              	
                Eligibility......................................................................................................

              	
                5

              
	 	 	 
	
                V

              	
                Limitations
                  on Awards.....................................................................................

              	
                5

              
	 	 	 
	
                VI

              	
                Stock
                  Options...............................................................................................

              	
                6

              
	 	 	 
	
                VII

              	
                Stock
                  Appreciation
                  Rights................................................................................

              	
                8

              
	 	 	 
	
                VIII

              	
                Restricted
                  Stock............................................................................................

              	
                9

              
	 	 	 
	
                IX

              	
                Performance
                  Awards......................................................................................

              	
                9

              
	 	 	 
	
                X

              	
                Adjustment
                  Upon Changes in
                  Stock....................................................................

              	
                10

              
	 	 	 
	
                XI

              	
                Change
                  in
                  Control...........................................................................................

              	
                10

              
	 	 	 
	
                XII

              	
                Miscellaneous...............................................................................................

              	
                12

              
	 	 	 
	
                XIII

              	
                Amendment
                  and
                  Termination.............................................................................

              	
                13

              
	 	 	 
	
                XIV

              	
                Duration
                  of the Plan........................................................................................

              	
                14

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TRONOX
        INCORPORATED 2005
        LONG TERM INCENTIVE PLAN

      

      

      Article
        I

      

      Purpose

      

      The
        purpose of the Tronox Incorporated 2005 Long Term Incentive Plan (the "Plan")
        is
        to provide incentive opportunities for Non-Employee Directors and employees,
        and
        to align their personal financial interest with the Company's stockholders.
        The
        Plan includes provisions for stock options, stock appreciation rights,
        restricted stock and performance related awards.

      

      

      Article
        II

      

      Definitions

      

      	a)  	
              "Award"
                shall mean an award under the Plan of Options, SARs, Restricted Stock
                or a
                Performance Award.

            

      

      	b)  	
              "Board
                or Board of Directors"
                shall mean the Board of Directors of the
                Company.

            

      

      	c)  	
              "Cause"
                shall mean (i) the continued failure of the Employee to perform
                substantially all of his or her duties as an Employee (other than
                any such
                failure resulting from incapacity due to physical or mental
                illness); (ii)
                the willful engaging by the Employee in gross misconduct which is
                materially and demonstrably injurious to the Company; or (iii) the
                conviction of, or plea of guilty or nolo contendere to, a
                felony.

            

      

      	d)  	
              "Code"
                shall mean the Internal Revenue Code of 1986, as amended from time
                to
                time.

            

      

      	e)  	
              "Company"
                shall mean Tronox Incorporated and any successor corporation by merger
                or
                otherwise.

            

      

      	f)  	
              "Committee"
                shall mean the Board or a committee of the Board designated by the
                Board.
                The Committee shall be responsible for administering the Plan pursuant
                to
                Article III herein. 

            

      

      	g)  	
              "Employee"
                shall mean any person employed by the Company, a Subsidiary or Limited
                Liability Company on a full-time salaried basis, including officers
                thereof. The term "Employee" shall not include a person hired as
                an
                independent contractor, leased employee, consultant or a person otherwise
                designated by the Company at the time of hire as not eligible to
                participate in the Plan, even if such person is determined to be
                an
                "employee" by any governmental or judicial authority.
                

            

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      	h)  	
              "Fair
                Market Value"
                of Stock shall mean the average of the highest price and the lowest
                price
                at which Stock shall have been sold on the applicable date as reported
                in
                the Wall Street Journal as New York Stock Exchange Composite Transactions
                for that date. In the event that the applicable date is a date on
                which
                there were no such sales of Stock, the Fair Market Value of Stock
                on such
                date shall be the average of the highest price and the lowest price
                at
                which Stock shall have been sold on the last trading day preceding
                such
                date. Notwithstanding the foregoing, the “Fair Market Value” of Stock on
                the date the Company first offers shares of Stock in an initial public
                offering shall be equal to the initial public offering
                price.

            

      

      	i)  	
              "Incentive
                Stock Option"
                or "ISO"
                shall mean an Option which complies with the terms and conditions
                set
                forth in Section 422 of the Code and applicable regulations thereunder.
                Options designated as ISOs shall be interpreted and administered
                in order
                to comply with all the provisions of Section 422 of the Code and
                applicable regulations, including without limitation the requirement
                that
                the aggregate Fair Market Value (determined at the time the Option
                is
                granted) of Stock with respect to which ISOs are exercisable for
                the first
                time by an individual during a calendar year under all plans of the
                Company, any Subsidiary and any LLC shall not exceed $100,000.
                

            

      

      	j)  	
              "Indicators
                of Performance"
                shall mean the following criteria used by the Committee to establish
                a
                performance goal under Section 3.4: Pretax Income, Net Income, Earnings
                Per Share, Sales Volume, Revenue, Expenses, Return on Assets, Return
                on
                Equity, Return on Investment, Net Profit Margin, Operating Profit
                Margin,
                Cash Flow, Total Stockholder Return, Capitalization, Liquidity, Production
                Volume, Results of Customer Satisfaction Surveys and other measures
                of
                Quality, Safety, Productivity, Cost Management or Process
                Improvement.

            

      

      	k)  	
              "Limited
                Liability Company"
                or "LLC"
                shall mean any Limited Liability Company in which the Company or
                a
                Subsidiary owns fifty percent (50%) or more of the Limited Liability
                Company.

            

      

      	l)  	
              "Non-Employee
                Director" shall
                mean any person serving as a director of the Company who is not an
                employee of the Company.

            

      

      	m)  	
              "Option"
                or "Stock
                Option"
                shall mean a right granted under the Plan to an Optionee to purchase
                a
                stated number of shares of Stock at a stated exercise
                price.

            

      

      	n)  	
              "Optionee"
                shall mean an Employee or Non-Employee Director who has received
                a Stock
                Option granted under the Plan.

            

      

      	o)  	
              "Performance
                Award"
                shall mean an Award issued under Article
                IX.

            

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      	p)  	
              "Performance
                Period"
                shall mean a period established by the Committee of not less than
                one year
                during which performance shall be measured under a Performance
                Award.

            

      

      	q)  	
              "Restricted
                Stock"
                shall mean Stock which is issued pursuant to Article VIII of the
                Plan.

            

      

      	r)  	
              "Restriction
                Period"
                shall mean that period of time as determined by the Committee during
                which
                Restricted Stock is subject to such terms, conditions and restrictions
                as
                shall be assigned by the Committee.

            

      

      	s)  	
              "Retirement"
                shall mean retirement of an Employee after attaining age and service
                requirements of the Company pension plan in which the employee
                participates. For this purpose, "service" for U.S. Employees shall
                be
                measured under the rules for determining vesting service under the
                Company’s tax-qualified defined benefit plan for U.S. Employees.
                “Retirement” for Non-Employee Directors shall mean termination from
                service on the Board for any reason other than Total Disability or
                death.

            

      

      	t)  	
              "Stock"
                shall mean the class A common stock of the
                Company.

            

      

      	u)  	
              "Stock
                Appreciation Right"
                or "SAR"
                shall mean a right granted in accordance with Article VII of the
                Plan.

            

      

      	v)  	
              "Subsidiary"
                shall mean any corporation (other than the Company) in which the
                Company,
                a Subsidiary or a Limited Liability Company of the Company owns fifty
                percent (50%) or more of the total combined voting power of all classes
                of
                stock, provided that, with regard to Incentive Stock Options, "Subsidiary"
                shall have the meaning provided under Section 424(f) of the Code.
                

            

      

      	w)  	
              "Total
                Disability"
                and "Totally
                Disabled"
                shall have such meaning as that defined under the Company's group
                insurance plan covering total disability and determinations of Total
                Disability shall be made by the insurance company providing such
                coverage
                on the date on which the Employee, whether or not eligible for benefits
                under such insurance plan, becomes Totally Disabled. However, in
                the
                absence of such insurance plan or in the event the individual is
                a
                Non-Employee Director, the Committee shall make such
                determination.

            

      

      

      Article
        III

      

      Administration

      

      3.1 The
        Committee.
        The
        Plan shall be administered by the Committee. Subject to such approvals and
        other
        authority as the Board may reserve to itself from time to time, the Committee
        shall, consistent with the provisions of the Plan, from time to time establish
        such rules and regulations and appoint such agents as it deems appropriate
        for
        the proper administration of the Plan, and make such determinations under,
        and
        such interpretations of, and take such steps in connection with the Plan
        or the
        Awards as it deems necessary or advisable.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.2  Authority
        of the Committee.
        Subject to the provisions herein, the Committee shall have the full power
        (a) to
        determine the Employees and Non-Employee Directors who shall receive Awards
        under the Plan, (b) to determine the size and types of Awards to be issued
        under
        the Plan, (c) to determine the terms and conditions of such Awards in a manner
        consistent with the Plan, (d) to construe and interpret the Plan and any
        agreement or instrument entered into under the Plan, and resolve any ambiguities
        with respect to any of the terms and provisions hereof as written and as
        applied
        to the operation of the Plan, (e) to establish, amend or waive rules and
        regulations for the Plan's administration, and (f) to amend the terms and
        conditions of any outstanding Award to the extent such terms and conditions
        are
        within the sole discretion of the Committee as provided in the Plan and subject
        to the limitations and restrictions otherwise applicable under the Plan,
        including those contained in Article XIII which among other restrictions
        prohibit the repricing of options without further shareholder approval.
        Notwithstanding the foregoing, the Committee shall not amend an Award in
        a
        manner that would have a materially adverse effect on the grantee's rights
        or
        obligations under the Award without the consent of the grantee. 

      

      The
        Committee may take any action consistent with the terms of the Plan which
        the
        Committee deems necessary to comply with any laws or regulatory requirements
        of
        a foreign country or to avoid adverse tax consequences under any such law
        or
        requirements. Such actions may include modifying the terms and conditions
        governing any Awards, including issuing restricted stock units in lieu of
        Restricted Stock, or establishing any local country plans as sub-plans to
        this
        Plan, each of which may be attached as an appendix hereto.

      

      As
        permitted by law, the Committee may delegate its authority hereunder, including
        without limitation delegating to a Company officer the authority to issue
        Awards
        covering a specified number of shares of Stock to Employees who are not
        officers. 

      

      3.3  Decisions
        Binding.
        All
        determinations and decisions of the Committee as to any disputed question
        arising under the Plan or an Award, including questions of construction and
        interpretation, shall be final, binding and conclusive upon all
        parties.

      

      3.4  Awards
        Subject to Performance Goals.
        The
        Committee may determine that an Award shall be subject to the satisfaction
        of
        such performance goals as established by the Committee. As determined by
        the
        Committee, achievement of the performance goals may be measured (a)
        individually, alternatively or in any combination, (b) with respect to the
        Company, a subsidiary, division, business unit, product line, product, or
        any
        combination of the foregoing, or (c) on an absolute basis, or relative to
        a
        target, to a designated comparison group, to results in other periods, to
        an
        index, or to other external measures.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      In
        determining whether a performance goal is met, the Committee may exclude
        the
        impact of any event or occurrence which the Committee determines should
        appropriately be excluded, such as a restructuring or other nonrecurring
        charge,
        an event either not directly related to the operations of the Company or
        not
        within the reasonable control of the Company's management, or a change in
        accounting standards required by U. S. generally accepted accounting
        principles.

      

      For
        an
        Award that is subject to performance goals and that is intended to qualify
        as
        "performance-based compensation" under Section 162(m) of the Code, the following
        additional provisions shall apply: (a) the applicable performance goals will
        be
        based on one or more Indicators of Performance, (b) the Committee may adjust
        downwards, but not upwards, the amount payable pursuant to such Award upon
        attainment of the performance goals, (c) the Committee may not waive the
        achievement of the applicable performance goals except in the case of the
        death
        or disability of the grantee, or under such other conditions where such waiver
        will not jeopardize the treatment of other Awards as “performance-based
        compensation” under Section 162(m), and (d) the Award shall otherwise comply
        with the requirements of Section 162(m), or any successor provision
        thereto, and the regulations thereunder.

      

      3.5  Effect
        of Code Section 409A.
        To the
        extent that any Award under this plan is or may be considered to involve
        a
        nonqualified deferred compensation plan or deferral subject to Section 409A
        of
        the Code, the terms and administration of such Award shall comply with the
        provisions of such Section, applicable IRS guidance and good faith reasonable
        interpretations thereof and, to the extent necessary, shall be modified,
        replaced, or terminated in the discretion of the Committee.

      

      

      Article
        IV

      

      Eligibility

      

      Those
        Employees who, in the judgment of the Committee, may contribute to the
        profitability and growth of the Company, a Subsidiary, or Limited Liability
        Company and all Non-Employee Directors, shall be eligible to receive Awards
        under the Plan, provided that only Employees shall be eligible for grants
        of
        ISOs.

       

      

      Article
        V

      

      Limitations
        on Awards

      

      5.1   Limits
        on Issuance of Shares.
        The
        Stock to be distributed under the Plan may be either authorized and issued
        shares or unissued shares, including but not limited to shares held as treasury
        shares. The maximum number of shares of Stock which may be issued under the
        Plan
        shall be $6,060,000. The following additional limitations shall apply to
        the
        issuance of Stock under the Plan pursuant to various types of
        Awards:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

        
          	 	
                  Type
                    of Awards

                	
                  Maximum
                    Issuance

                
	 	 	 
	
                  (a)

                	
                  Restricted
                    Stock and Performance Awards

                  to
                    Employees

                	
                  1,500,000
                    shares

                
	 	 	 
	
                  (b)

                	
                  Stock
                    Options and Restricted Stock to

                  Non-Employee
                    Directors, but no more

                  than
                    125K shares of Restricted Stock

                	
                  250,000
                    shares

                
	 	 	 
	
                  (c)

                	
                  Incentive
                    Stock Options

                	
                  1,500,000
                    shares

                

        

      Any
        shares of Stock that are subject to an Award which for any reason lapses,
        is
        cancelled, or is terminated without the issuance of such shares shall again
        be
        available for Awards under the Plan. 

      

      5.2   Limits
        on Awards to Employees.
        No
        Employee shall be awarded, during the term of the Plan, (a) Restricted Stock
        covering more than 500,000 shares
        of Stock, or (b) Options and SARs covering more than 2,000,000 shares of
        Stock.
        No Employee shall be granted Performance Awards under Article IX during a
        calendar year that could result in a payment of more than $5,000,000 in cash
        and/or shares of Stock, based on the Fair Market Value of the Stock as of
        the
        first day of the performance period. 

      

      

      Article
        VI

      

      Stock
        Options

      

      6.1   Grant
        of Options.

      

      (a) The
        Committee may, at any time and from time to time, grant Options under the
        Plan
        to eligible Employees or Non-Employee Directors, for such numbers of shares
        and
        having such terms as the Committee shall designate, subject to the provisions
        of
        the Plan. The Committee will also determine the type of Option granted (e.g.,
        ISO, nonstatutory, other statutory Options as from time to time may be permitted
        by the Code) or a combination of various types of Options. The date on which
        an
        Option shall be granted shall be the date of the Committee's authorization
        of
        such grant. Any individual at any one time and from time to time may hold
        more
        than one Option granted under the Plan or under any other Stock plan of the
        Company.

      

      (b) Each
        Option shall be evidenced by a Stock Option Agreement in such form and
        containing such provisions consistent with the provisions of the Plan as
        the
        Committee from time to time shall approve.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.2   Exercise
        Price.
        The
        price at which shares of Stock may be purchased under an Option shall not
        be
        less than 100% of the Fair Market Value of the Stock on the date the Option
        is
        granted.

      

      6.3   Option
        Period.
        The
        period during which an Option may be exercised shall be determined by the
        Committee; provided, that such period will not be longer than ten years from
        the
        date on which the Option is granted in the case of ISOs, and ten years and
        one
        day in the case of other Options. The date or dates on which portion(s) of
        an
        Option may be exercised during the term of an Option shall be determined
        by the
        Committee and may vary from Option to Option. The Committee may also determine
        to accelerate the time at which portion(s) of an outstanding Option may be
        exercised. 

      

      6.4   Termination
        of Service.
        An
        Option shall terminate and may no longer be exercised three months after
        the
        Optionee ceases to be an Employee for any reason other than termination for
        Cause, Total Disability, death or Retirement. Unless an Employee's Stock
        Option
        Agreement provides otherwise, all Options shall terminate and may no longer
        be
        exercised upon an Optionee's termination for Cause. If an Employee's employment
        is terminated by reason of Total Disability or Retirement, all Options held
        by
        the Employee will vest and may be exercised within the period not to exceed
        the
        lesser of four years following such termination or the remaining term of
        the
        Option award. If the Optionee is an Employee and dies while in the employ
        of the
        Company, a Subsidiary or LLC, or within three months after the termination
        of
        such employment (except termination for Cause), the vesting provisions of
        an
        Option held by the Employee will lapse and such Option may, within the lesser
        of
        four years after the Optionee's death or the remaining term of the Option
        award,
        be exercised by the legal representative of the Optionee's estate, or if
        it has
        been distributed as part of the estate, by the person or persons to whom
        the
        Optionee's rights under the Option shall pass by will or by the applicable
        laws
        of descent and distribution. If a Non-Employee Director’s service is terminated
        due to Retirement or Total Disability, all Options held by the Non-Employee
        Director will vest and such Options may be exercised within the remainder
        of the
        Option's term. If a Non-Employee Director dies while in the service of the
        Company, all Options held by the Non-Employee Director will vest and such
        Options may be exercised within the remainder of the term of the Option by
        the
        legal representative of the Optionee's estate, or if it has been distributed
        as
        part of the estate, by the person or persons to whom the Optionee's rights
        under
        the Option shall pass by will or by the applicable laws of descent and
        distribution. In no event may an Option be exercised to any extent by anyone
        after the expiration or termination of the Option.

      

      6.5   Payment
        for Shares.

      

      To
        the
        extent permitted under applicable law and the relevant Stock Option Agreement,
        the exercise price of an Option shall be paid to the Company in full at the
        time
        of exercise at the election of the Optionee (1) in cash, (2) in shares of
        Stock
        having a Fair Market Value equal to the aggregate exercise price of the Option
        and satisfying such other requirements as may be imposed by the Committee,
        (3)
        partly in cash and partly in such shares of Stock, (4) to the extent permitted
        by the Committee, through the withholding of shares of Stock (which would
        otherwise be delivered to the Optionee) with an aggregate Fair Market Value
        on
        the exercise date equal to the aggregate exercise price of the Option or
        (5)
        through the delivery of irrevocable instructions to a broker to deliver promptly
        to the Company an amount equal to the aggregate exercise price of the Option.
        The Committee may limit the extent to which shares of Stock may be used in
        exercising Options. No Optionee shall have any rights to dividends or other
        rights of a stockholder with respect to shares of Stock subject to an Option
        until the Optionee has given written notice of exercise of the Option, paid
        in
        full for such shares of Stock and, if applicable, has satisfied any other
        conditions imposed by the Committee pursuant to the Plan.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Article
        VII

      

      Stock
        Appreciation Rights

      

      7.1   Grant.  An
        SAR shall represent a right to receive a payment in cash equal to the excess
        of
        the Fair Market Value of a specified number of shares of Stock on the date
        the
        SAR is exercised over an amount (the SAR exercise price) which shall be no
        less
        than the Fair Market Value of the shares on the date the SAR was granted
        (or the
        option price for SARs granted in tandem with an Option), as set forth in
        the
        applicable Award agreement. Each SAR shall be evidenced by an Award agreement
        that shall specify the SAR exercise price, the duration of the SAR, the number
        of shares of stock to which the SAR pertains, whether the SAR is granted
        in
        tandem with the grant of an Option or is freestanding, and such other provisions
        as the Committee shall determine. SARs shall be exercisable at such times
        and be
        subject to such restrictions and conditions as the Committee shall in each
        instance approve and which shall be set forth in the applicable Award agreement,
        which need not be the same for each grant of for each grantee. 

       

      7.2   Exercise.  
        SARs granted in tandem with the grant of an Option may be exercised for all
        or
        part of the shares of Stock subject to the related Option upon the surrender
        of
        the right to exercise the equivalent portion of the related Option. SARs
        granted
        in tandem with the grant of an Option may be exercised only with respect
        to the
        shares of Stock for which its related Option is then exercisable. SARs granted
        independently from the grant of an Option may be exercised upon the terms
        and
        conditions contained in the applicable Award agreement. 

       

      7.3   Termination.  The
        Award agreement for a SAR shall
        set
        forth the extent to which a grantee shall have the right to exercise an SAR
        following termination of the grantee's service. Such provisions shall be
        determined in the sole discretion of the Committee, need not be uniform among
        all SARs, and may reflect distinctions based on the reasons for termination.
        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Article
        VIII

      

      Restricted
        Stock

      

      8.1   Terms
        of Grant.
        At
        the time of making a grant of Restricted Stock or making payment of an Award
        in
        Restricted Stock to an Employee or Non-Employee Director, the Committee shall
        establish a Restriction Period and assign such terms, conditions and other
        restrictions to the Restricted Stock as it shall determine. 

      

      8.2   Restricted
        Stock - Rights.
        Restricted Stock will be represented by a Stock certificate registered in
        the
        name of the Restricted Stock recipient. Such certificate, accompanied by
        a
        separate duly endorsed stock power, shall be deposited with the Company.
        The
        recipient shall be entitled to receive dividends during the Restriction Period
        and shall have the right to vote such Restricted Stock and all other
        stockholder's rights, with the exception that (i) the recipient will not
        be
        entitled to delivery of the Stock certificate during the Restriction Period,
        (ii) the Company will retain custody of the Restricted Stock during the
        Restriction Period and (iii) a breach of the terms and conditions established
        by
        the Committee pursuant to the Award will cause a forfeiture of the Restricted
        Stock. The Committee may, in addition, prescribe additional restrictions,
        terms
        and conditions upon or to the Restricted Stock.

      

      8.3   Termination
        of Service.
        If an
        Employee or Non-Employee Director terminates service by reason of Total
        Disability, death or Retirement prior to the expiration of a Restriction
        Period
        for a grant of Restricted Stock, the Restriction Period will lapse and the
        shares will be delivered to the recipient. Unless the Committee provides
        otherwise, a termination of service for other reasons prior to the expiration
        of
        the applicable Restriction Period will result in the forfeiture of the
        Restricted Stock.

      

      8.4   Restricted
        Stock Agreement.
        Each
        grant of, or payment of an Award in, Restricted Stock shall be evidenced
        by a
        Restricted Stock Agreement in such form and containing such terms and conditions
        not inconsistent with the provisions of the Plan as the Committee from time
        to
        time shall approve.

      

      

      Article
        IX

      

      Performance
        Awards

      

      9.1   Eligibility
        for Awards.
        The
        Committee shall designate Employees as eligible to receive Performance Awards
        under the Plan and shall establish applicable Performance Periods and
        performance goals for any such Awards.

      

      9.2   Performance
        Awards.
        Performance Awards may be in the form of performance shares, which are units
        valued by reference to shares of Stock or performance units, which are units
        valued by reference to financial measures or property other than Stock, and
        shall be subject to such terms and conditions and other restrictions as the
        Committee shall assign. At the time of making grants of Performance Awards,
        the
        Committee shall establish such terms and conditions as it shall determine
        applicable to such Awards. Performance Awards may be paid out in cash, Stock,
        Restricted Stock, other property or a combination thereof. Recipients of
        Performance Awards are not required to provide consideration other than the
        rendering of service.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      9.3   Partial
        Performance Period Participation.
        Subject to applicable restrictions under Section 162(m) of the Code, the
        Committee shall determine the extent to which an Employee shall participate
        in a
        partial Performance Period because of becoming eligible after the beginning
        of
        such Performance Period. In the event an Employee terminates employment due
        to
        death, Total Disability or Retirement after completing at least one month
        of the
        Performance Period for an Award, such Employee shall be entitled to a pro
        rata
        portion of the Award if the applicable performance goals are met, payable
        in
        accordance with procedures established by the Committee. Unless the Committee
        provides otherwise, if an Employee terminates employment for any other reason
        prior to the end of a Performance Period for an Award, he shall not be entitled
        to any payment under the Award. 

      

      

      Article
        X

      

      Adjustment
        Upon Changes In Stock

      

      Subject
        to the limitations of Article XIII, the Committee shall appropriately adjust
        the
        number of shares or kind of Stock which may be issued pursuant to this Plan,
        the
        other limits on Stock issuable under the Plan under Article V, and the number
        of
        shares covered by, and the exercise price of, each outstanding Award, for
        any
        increase or decrease in the total number of issued and outstanding Stock
        (or
        change in kind) resulting from any change in the Stock through a merger,
        consolidation, reorganization, recapitalization, subdivision or consolidation
        of
        shares or other capital adjustment or the payment of a stock dividend or
        other
        increase or decrease (or change in kind) in such shares. In the event of
        any
        such adjustment, fractional shares shall be eliminated. 

      

      

      Article
        XI

      

      Change
        In Control

      

      Notwithstanding
        anything to the contrary in the Plan, in the event of a Change in
        Control:

      

      (i) If
        during a Restriction Period(s) applicable to Restricted Stock issued under
        the
        Plan, all restrictions imposed hereunder on such Restricted Stock shall lapse
        effective as of the date of the Change in Control; 

      

      (ii) If
        during a Performance Period(s) applicable to a Performance Award granted
        under
        the Plan, an Employee shall earn the number of performance shares or performance
        units which the Employee would have earned as if target performance under
        the
        Award was obtained; and 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (iii) Any
        outstanding Options or SARs that are not exercisable shall become exercisable
        effective as of the date of a Change in Control. If a grantee's employment
        or
        service is terminated within 24 months of the effective date of a Change
        in
        Control, to the extent that any Option or SAR was exercisable at the time
        of the
        grantee's termination, such Option or SAR may be exercised within four years
        following the date of termination or expiration of the Award if
        sooner.

      

      For
        purposes of the Plan, a "Change in Control" shall be deemed to have occurred
        if
        after the date the Company first offers shares of Stock in an initial public
        offering:

      

      (a) Any
        person ("Person") as defined in Section 3(a)(9) of the Securities Exchange
        Act
        of 1934, as amended (the "Exchange Act"), and as used in Section 13(d) and
        14(d)
        thereof, including a "group" as defined in Section 13(d) of the Exchange
        Act,
        but excluding the Company and any subsidiary and any employee benefit plan
        sponsored or maintained by the Company or any subsidiary (including any trustee
        of such plan acting as trustee), directly or indirectly, becomes the "beneficial
        owner" (as defined in Rule 13d-3 under the Exchange Act), of securities of
        the
        Company representing 25% or more of the combined voting power of the Company's
        then outstanding securities (other than indirectly as a result of the Company's
        redemption of its securities); or

      

      (b) The
        consummation of any merger or other business combination of the Company,
        sale of
        50% or more of the Company's assets, liquidation or dissolution of the Company
        or combination of the foregoing transactions (the "Transactions") other than
        a
        Transaction immediately following which the shareholder of the Company and
        any
        trustee or fiduciary of any Company employee benefit plan immediately prior
        to
        the Transaction own at least 60% of the voting power, directly or indirectly,
        of
        (A) the surviving corporation in any such merger or other business combination;
        (B) the purchaser or successor to the Company's assets; (C) both the surviving
        corporation and the purchaser in the event of any combination of Transactions;
        or (D) the parent company owning 100% of such surviving corporation, purchaser
        or both the surviving corporation and the purchaser, as the case may be;
        or

      

      (c) Within
        any twenty-four month period, the persons who were directors immediately
        before
        the beginning of such period (the "Incumbent Directors") shall cease (for
        any
        reason other than death) to constitute at least a majority of the Board or
        the
        board of directors of a successor to the Company. For this purpose, any director
        who was not a director at the beginning of such period shall be deemed to
        be an
        Incumbent Director if such director was elected to the Board by, or on the
        recommendation of or with the approval of, at least two-thirds of the directors
        who then qualified as Incumbent Directors (so long as such director was not
        nominated by a person who commenced or threatened to commence an election
        contest or proxy solicitation by or on behalf of a Person (other than the
        Board)
        or who has entered into an agreement to effect a Change in Control or expressed
        an intention to cause such a Change in Control); or

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)  A
        majority of the members of the Board of Directors in office immediately prior
        to
        a proposed transaction determine by a written resolution that such proposed
        transaction, if taken, will be deemed a Change in Control and such proposed
        transaction is consummated.

      

      The
        following events shall not constitute a Change in Control and shall not be
        considered in determining whether a Change in Control has occurred: (i) the
        sale
        or purchase of the Company’s common stock in connection with the initial public
        offering of such stock; (ii) the distribution to Kerr-McGee Corporation
        shareholders of the shares of the Company’s common stock that Kerr-McGee
        Corporation and its affiliates own subsequent to the completion of the initial
        public offering of such stock; or (iii) Kerr-McGee Corporation exchanging
        shares
        of the Company’s common stock that it owns subsequent to the completion of the
        initial public offering of such stock with its shareholders in return for
        shares
        of Kerr-McGee Corporation.

      

      

      

      Article
        XII

      

      Miscellaneous

      

      12.1   Effect
        on Other Plans.
        Except as otherwise required by law, no action taken under the Plan shall
        be
        taken into account in determining any benefits under any pension, retirement,
        thrift, profit sharing, group insurance or other benefit plan maintained
        by the
        Company or any Subsidiaries, unless such other plan specifically provides
        for
        such inclusion.

      

      12.2   Transfer
        Restrictions.
        Except as provided in Article XII, Section 12.3, no Award shall be transferable
        other than by will or the laws of descent and distribution. Any Option or
        SAR
        shall be exercisable (i) during the lifetime of the grantee, only by the
        grantee
        or, to the extent permitted by the Code, by an appointed guardian or legal
        representative of the grantee, and (ii) after death of the grantee, only
        by the
        grantee's legal representative or by the person who acquired the right to
        exercise such Option or SAR by bequest or inheritance or by reason of the
        death
        of the grantee.

      

      12.3   Transfer
        of Options.
        The
        Committee may, in its discretion, authorize all or a portion of the Options
        to  be granted to an
        Optionee to be on terms which permit transfer by such Optionee to an immediate
        family member of the Optionee who acquires the options from the Optionee
        through
        a gift or a domestic relations order. For purposes of this Article XII, Section
        12.3, "family member" includes any child, stepchild, grandchild, parent,
        stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
        son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive
        relationships, trusts for the exclusive benefit of these persons and any
        other
        entity owned solely by these persons, provided that the Stock Option Agreement
        pursuant to which such Options are granted must be approved by the Committee
        and
        must expressly provide for transferability in a manner consistent with this
        Section and provided further that subsequent transfers of transferred options
        shall be prohibited except those in accordance with Article XII, Section
        12.2.
        Following transfer, any such Options shall continue to be subject to the
        same
        terms and conditions as were applicable immediately prior to transfer. The
        events of termination of service of Article VI, Section 6.4 hereof shall
        continue to be applied with respect to the original Optionee, following which
        the options shall be exercisable by the Transferee only to the extent and
        for
        the periods specified in Article VI, Section 6.4.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      12.4   Withholding
        Taxes.
        The
        Company shall have the right to withhold from any settlement hereunder any
        federal, state, or local taxes required by law to be withheld, or require
        payment in the amount of such withholding. If settlement hereunder is in
        the
        form of Stock, such withholding may be satisfied by the withholding of shares
        of
        Stock by the Company, unless the grantee shall pay to the Company an amount
        sufficient to cover the amount of taxes required to be withheld, and such
        withholding of shares does not violate any applicable laws, rules or regulations
        of federal, state or local authorities.

      

      12.5   Transfer
        of Employment and Leave of Absence.
        Transfer of employment between the Company, a Subsidiary or Limited Liability
        Company, or between Limited Liability Companies and Subsidiaries shall not
        constitute termination of employment for the purpose of the Plan. Whether
        any
        leave of absence shall constitute termination of employment for the purposes
        of
        the Plan shall be determined in each case by the Committee.

      

      12.6   Administrative
        Expenses.
        All
        administrative expenses associated with the administration of the Plan shall
        be
        borne by the Company.

      

      12.7   Titles
        and Headings.
        The
        titles and headings of the articles in this Plan are for convenience of
        reference only and in the event of any conflict, the text of the Plan, rather
        than such titles or headings, shall control.

      

      12.8   No
        Guarantee of Continued Employment.
        No
        grant of an Award to an Employee under the Plan or any provisions thereof
        shall
        constitute any agreement for or guarantee of continued employment by the
        Company
        and no grant of an Award to a Non-Employee Director shall constitute any
        agreement for or guarantee of continuing as a Non-Employee Director.

      

      12.9   Proceeds.
        The
        proceeds received by the Company from the sale of Stock under the Plan shall
        be
        added to the general funds of the Company and shall be used for corporate
        purposes as the Board shall direct.

      

      12.10  Governing
        Law.
        The
        Plan shall be governed and construed in accordance with the laws of Delaware,
        except to the extent that federal law applies.

      

      12.11   Award
        Deferrals.
        Employees and non-employee directors who are eligible to participate in a
        deferred compensation plan may elect to defer receipt of amounts under an
        Award
        in accordance with the terms of the plan. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      Article
        XIII

      

      Amendment
        And Termination

      

      The
        Board may at any time terminate or amend this Plan in such respect as it
        shall
        deem advisable. Notwithstanding the foregoing, the Board may not, without
        further approval of the stockholders of the Company, amend the Plan in a
        manner
        that requires such approval under the rules of the New York Stock Exchange,
        the
        Code, or any other applicable law, including any amendment that materially
        increases the maximum number of shares of Stock issuable under the Plan or
        results in the repricing of Options. No amendment or termination of the Plan
        shall, without the consent of the grantee of an Award, have a materially
        adverse
        effect on the grantee’s rights or obligations under the Award. 

      

      

      Article
        XIV

      

      Duration
        Of The Plan

      

      The
        effective date of this Plan shall be November 16, 2005. If not sooner
        terminated by the Board, this Plan shall terminate on November 16, 2015.
        No
        Awards shall be made after the Plan has terminated. Awards granted before
        the
        termination of the Plan shall remain outstanding and the terms of the Plan
        shall
        continue to apply to such Awards.  

      

      

      

      

      

      TRONOX
        INCORPORATED 

      

      

      

      By:

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