Document:

Unassociated Document

    Exhibit
      10.4

    

    FORM
      OF THE INDEMNIFICATION AGREEMENT

    

    This
      Indemnification Agreement, dated as of the 23rd day of March, 2007 is made
      by
      and between WONDER AUTO TECHNOLOGY, INC., a Nevada corporation (the “Company”),
      and Larry Goldman/ David Murphy/ Lei Jiang, an independent director of the
      Company (the “Indemnitee”).

    

    RECITALS

    

    A. The
      Company and the Indemnitee recognize that the present state of the law is too
      uncertain to provide the Company's officers and directors with adequate and
      reliable advance knowledge or guidance with respect to the legal risks and
      potential liabilities to which they may become personally exposed as a result
      of
      performing their duties for the Company;

    

    B. The
      Company and the Indemnitee are aware of the substantial growth in the number
      of
      lawsuits filed against corporate officers and directors in connection with
      their
      activities in such capacities and by reason of their status as
      such;

    

    C. The
      Company and the Indemnitee recognize that the cost of defending against such
      lawsuits, whether or not meritorious, is typically beyond the financial
      resources of most officers and directors of the Company;

    

    D. The
      Company and the Indemnitee recognize that the legal risks and potential
      liabilities, and the threat thereof, associated with proceedings filed against
      the officers and directors of the Company bear no reasonable relationship to
      the
      amount of compensation received by the Company's officers and
      directors;

    

    E. The
      Company, after reasonable investigation prior to the date hereof, has determined
      that the liability insurance coverage available to the Company as of the date
      hereof is inadequate, unreasonably expensive or both. The Company believes,
      therefore, that the interest of the Company and its current and future
      shareholders would be best served by a combination of (i) such insurance as
      the
      Company may obtain pursuant to the Company’s obligations hereunder and (ii) a
      contract with its officers and directors, including the Indemnitee, to indemnify
      them to the fullest extent permitted by law (as in effect on the date hereof,
      or, to the extent any amendment may expand such permitted indemnification,
      as
      hereafter in effect) against personal liability for actions taken in the
      performance of their duties to the Company;

    

    F. Section
      78.7502 of the Nevada Revised Statutes empowers Nevada corporations to indemnify
      their officers and directors and further states that the indemnification
      provided by Section 78.7502 shall not be deemed exclusive of any other rights
      to
      which those seeking
      indemnification may be entitled under the articles of incorporation or any
      bylaw, agreement, vote of shareholders or disinterested directors or otherwise,
      both as to action in an official capacity and as to action in another capacity
      while holding such office; thus, Section 78.7502 does not by itself limit the
      extent to which the Company may indemnify persons serving as its officers and
      directors;

    

    G. The
      Company’s Articles of Incorporation and Bylaws authorize the indemnification of
      the officers and directors of the Company in excess of that expressly permitted
      by Section 78.7502;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    H. The
      Board
      of Directors of the Company has concluded that, to retain and attract talented
      and experienced individuals to serve as officers and directors of the Company
      and to encourage such individuals to take the business risks necessary for
      the
      success of the Company, it is necessary for the Company to contractually
      indemnify its officers and directors, and to assume for itself liability for
      expenses and damages in connection with claims against such officers and
      directors in connection with their service to the Company, and has further
      concluded that the failure to provide such contractual indemnification could
      result in great harm to the Company and its shareholders;

    

    I. The
      Company desires and has requested the Indemnitee to serve or continue to serve
      as a director or officer of the Company, free from undue concern for the risks
      and potential liabilities associated with such services to the Company;
      and

    

    J. The
      Indemnitee is willing to serve, or continue to serve, the Company, provided,
      and
      on the expressed condition, that he is furnished with the indemnification
      provided for herein.

    

    AGREEMENT

    

    NOW,
      THEREFORE, the Company and Indemnitee agree as follows:

    

    1. DEFINITIONS.

    

    (a) “EXPENSES”
      means, for the purposes of this Agreement, all direct and indirect costs of
      any
      type or nature whatsoever (including, without limitation, any fees and
      disbursements of Indemnitee’s counsel, accountants and other experts and other
      out-of-pocket costs) actually and reasonably incurred by the Indemnitee in
      connection with the investigation, preparation, defense or appeal of a
      Proceeding; provided, however, that Expenses shall not include judgments, fines,
      penalties or amounts paid in settlement of a Proceeding.

    

    (b) “PROCEEDING”
      means, for the purposes of this Agreement, any threatened, pending or completed
      action or proceeding, whether civil, criminal, administrative or investigative
      (including an action brought by or in the right of the Company) in which
      Indemnitee may be or may have been involved as a party or otherwise, by reason
      of the fact that Indemnitee is or was a director or officer of the Company,
      by
      reason of any action taken by her or of any inaction on her part while acting
      as
      such director or officer or by reason of the fact that he is or was serving
      at
      the request of the Company as a director, officer, employee or agent of another
      foreign or domestic corporation, partnership, joint venture, trust or other
      enterprise, or was a director or officer of the foreign or domestic corporation
      which was a predecessor corporation to the Company or of another enterprise
      at
      the request of such predecessor corporation, whether or not he is serving in
      such capacity at the time any liability or expense is incurred for which
      indemnification or reimbursement can be provided under this
      Agreement.

    

    2. AGREEMENT
      TO SERVE.

    

    Indemnitee
      agrees to serve or continue to serve as a director or officer of the Company
      to
      the best of her abilities at the will of the Company or under separate contract,
      if such contract exists, for so long as Indemnitee is duly elected or appointed
      and qualified or until such time as he tenders her resignation in writing.
      Nothing contained in this Agreement is intended to create in Indemnitee any
      right to continued employment. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. INDEMNIFICATION.

    

    (a) THIRD
      PARTY PROCEEDINGS. The Company shall indemnify Indemnitee against Expenses,
      judgments, fines, penalties or amounts paid in settlement (if the settlement
      is
      approved in advance by the Company) actually and reasonably incurred by
      Indemnitee in connection with a Proceeding (other than a Proceeding by or in
      the
      right of the Company) if Indemnitee acted in good faith and in a manner
      Indemnitee reasonably believed to be in the best interests of the Company,
      and,
      with respect to any criminal action or proceeding, had no reasonable cause
      to
      believe Indemnitee’s conduct was unlawful. The termination of any Proceeding by
      judgment, order, settlement, conviction, or upon a plea of NOLO CONTENDERE
      or
      its equivalent, shall not, of itself, create a presumption that Indemnitee
      did
      not act in good faith and in a manner which Indemnitee reasonably believed
      to be
      in the best interests of the Company, or, with respect to any criminal
      Proceeding, had no reasonable cause to believe that Indemnitee’s conduct was
      unlawful.

    

    (b) PROCEEDINGS
      BY OR IN THE RIGHT OF THE COMPANY. To the fullest extent permitted by law,
      the
      Company shall indemnify Indemnitee against Expenses and amounts paid in
      settlement, actually and reasonably incurred by Indemnitee in connection with
      a
      Proceeding by or in the right of the Company to procure a judgment in its favor
      if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed
      to be in the best interests of the Company and its shareholders. Notwithstanding
      the foregoing, no indemnification shall be made in respect of any claim, issue
      or matter as to which Indemnitee shall have been adjudged liable to the Company
      in the performance of Indemnitee’s duty to the Company and its shareholders
      unless and only to the extent that the court in which such action or proceeding
      is or was pending shall determine upon application that, in view of all the
      circumstances of the case, Indemnitee is fairly and reasonably entitled to
      indemnity for expenses and then only to the extent that the court shall
      determine.

    

    (c) SCOPE.
      Notwithstanding any other provision of this Agreement but subject to SECTION
      14(b), the Company shall indemnify the Indemnitee to the fullest extent
      permitted by law, notwithstanding that such indemnification is not specifically
      authorized by other provisions of this Agreement, the Company’s Articles of
      Incorporation, the Company’s Bylaws or by statute.

     

    4. LIMITATIONS
      ON INDEMNIFICATION.

    

    Any
      other
      provision herein to the contrary notwithstanding, the Company shall not be
      obligated pursuant to the terms of this Agreement: 

    

    (a) EXCLUDED
      ACTS. To indemnify Indemnitee for any acts or omissions or transactions from
      which a director may not be relieved of liability under applicable
      law;

    

    (b) EXCLUDED
      INDEMNIFICATION PAYMENTS. To indemnify or advance Expenses in violation of
      any
      prohibition or limitation on indemnification under the statutes, regulations
      or
      rules promulgated by any state or federal regulatory agency having jurisdiction
      over the Company.

    

    (c) CLAIMS
      INITIATED BY INDEMNITEE. To indemnify or advance Expenses to Indemnitee with
      respect to Proceedings or claims initiated or brought voluntarily by Indemnitee
      and not by way of defense, except with respect to proceedings brought to
      establish or enforce a right to indemnification under this Agreement or any
      other statute or law or otherwise as required under Section 78.7502 of the
      Nevada Revised Statutes, but such indemnification or advancement of Expenses
      may
      be provided by the Company in specific cases if the Board of Directors has
      approved the initiation or bringing of such suit;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d) LACK
      OF
      GOOD FAITH. To indemnify Indemnitee for any Expenses incurred by the Indemnitee
      with respect to any proceeding instituted by Indemnitee to enforce or interpret
      this Agreement, if a court of competent jurisdiction determines that each of
      the
      material assertions made by the Indemnitee in such proceeding was not made
      in
      good faith or was frivolous; 

    

    (e) INSURED
      CLAIMS. To indemnify Indemnitee for Expenses or liabilities of any type
      whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes
      or penalties, and amounts paid in settlement) which have been paid directly
      to
      or on behalf of Indemnitee by an insurance carrier under a policy of directors’
and officers’ liability insurance maintained by the Company or any other policy
      of insurance maintained by the Company or Indemnitee;

    

    (f) CLAIMS
      UNDER SECTION 16(b). To indemnify Indemnitee for Expenses and the payment of
      profits arising from the purchase and sale by Indemnitee of securities in
      violation of Section 16(b) of the Securities Exchange Act of 1934, as amended,
      or any similar successor statute. 

    

    5. DETERMINATION
      OF RIGHT TO INDEMNIFICATION.

    

    Upon
      receipt of a written claim addressed to the Board of Directors for
      indemnification pursuant to SECTION 3, the Company shall determine by any of
      the
      methods set forth in Section 78.751 of the Nevada Revised Statutes whether
      Indemnitee has met the applicable standards of conduct which makes it
      permissible under applicable law to indemnify Indemnitee. If a claim under
      SECTION 3 is not paid in full by the Company within ninety (90) days after
      such
      written claim has been received by the Company, the Indemnitee may at any time
      thereafter bring suit against the Company to recover the unpaid amount of the
      claim and, unless such action is dismissed by the court as frivolous or brought
      in bad faith, the Indemnitee shall be entitled to be paid also the expense
      of
      prosecuting such claim. The court in which such action is brought shall
      determine whether Indemnitee or the Company shall have the burden of proof
      concerning whether Indemnitee has or has not met the applicable standard of
      conduct.

    

    6. ADVANCEMENT
      AND REPAYMENT OF EXPENSES.

    

    Subject
      to SECTION 4 hereof, the Expenses incurred by Indemnitee in defending and
      investigating any Proceeding shall be paid by the Company in advance of the
      final disposition of such Proceeding within 30 days after receiving from
      Indemnitee the copies of invoices presented to Indemnitee for such Expenses,
      if
      Indemnitee shall provide an undertaking to the Company to repay such amount
      to
      the extent it is ultimately determined that Indemnitee is not entitled to
      indemnification. In determining whether or not to make an advance hereunder,
      the
      ability of Indemnitee to repay shall not be a factor. Notwithstanding the
      foregoing, in a proceeding brought by the Company directly, in its own right
      (as
      distinguished from an action bought derivatively or by any receiver or trustee),
      the Company shall not be required to make the advances called for hereby if
      the
      Board of Directors determines, in its sole discretion, that it does not appear
      that Indemnitee has met the standards of conduct which make it permissible
      under
      Applicable law to indemnify Indemnitee and the advancement of Expenses would
      not
      be in the best interests of the Company and its shareholders.

    

    7. PARTIAL
      INDEMNIFICATION.

    

    If
      the
      Indemnitee is entitled under any provision of this Agreement to indemnification
      or advancement by the Company of some or a portion of any Expenses or
      liabilities of any type whatsoever (including, but not limited to, judgments,
      fines, penalties, and amounts paid in settlement) incurred by him in the
      investigation, defense, settlement or appeal of a Proceeding, but is not
      entitled to indemnification or advancement of the total amount thereof, the
      Company shall nevertheless indemnify or pay advancements to the Indemnitee
      for
      the portion of such Expenses or liabilities to which the Indemnitee is entitled.
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8. NOTICE
      TO
      COMPANY BY INDEMNITEE.

    

    Indemnitee
      shall notify the Company in writing of any matter with respect to which
      Indemnitee intends to seek indemnification hereunder as soon as reasonably
      practicable following the receipt by Indemnitee of written notice thereof;
      provided, however, that any delay in so notifying the Company shall not
      constitute a waiver by Indemnitee of her rights hereunder. The written
      notification to the Company shall be addressed to the Board of Directors and
      shall include a description of the nature of the Proceeding and the facts
      underlying the Proceeding and be accompanied by copies of any documents filed
      with the court in which the Proceeding is pending. In addition, Indemnitee
      shall
      give the Company such information and cooperation as it may reasonably require
      and as shall be within Indemnitee’s power.

    

    9. MAINTENANCE
      OF LIABILITY INSURANCE.

    

    (a) Subject
      to SECTION 4 hereof, the Company hereby agrees that so long as Indemnitee shall
      continue to serve as a director or officer of the Company and thereafter so
      long
      as Indemnitee shall be subject to any possible Proceeding, the Company, subject
      to SECTION 9(B), shall use reasonable commercial efforts to obtain and maintain
      in full force and effect directors’ and officers’ liability insurance (“D&O
      Insurance”) which provides Indemnitee the same rights and benefits as are
      accorded to the most favorably insured of the Company’s directors, if Indemnitee
      is a director; or of the Company’s officers, if Indemnitee is not a director of
      the Company but is an officer.

    

    (b) Notwithstanding
      the foregoing, the Company shall have no obligation to obtain or maintain
      D&O Insurance if the Company determines in good faith that such insurance is
      not reasonably available, the premium costs for such insurance are
      disproportionate to the amount of coverage provided, the coverage provided
      by
      such insurance is limited by exclusions so as to provide an insufficient
      benefit, or the Indemnitee is covered by similar insurance maintained by a
      subsidiary or parent of the Company.

    

    (c) If,
      at
      the time of the receipt of a notice of a claim pursuant to SECTION 8 hereof,
      the
      Company has D&O Insurance in effect, the Company shall give prompt notice of
      the commencement of such Proceeding to the insurers in accordance with the
      procedures set forth in the respective policies. The Company shall thereafter
      take all necessary or desirable action to cause such insurers to pay, on behalf
      of the Indemnitee, all amounts payable as a result of such Proceeding in
      accordance with the terms of such policies. 

    

    10. DEFENSE
      OF CLAIM.

    

    In
      the
      event that the Company shall be obligated under SECTION 6 hereof to pay the
      Expenses of any Proceeding against Indemnitee, the Company, if appropriate,
      shall be entitled to assume the defense of such Proceeding, with counsel
      approved by Indemnitee, which approval shall not be unreasonably withheld,
      upon
      the delivery to Indemnitee of written notice of its election to do so. After
      delivery of such notice, approval of such counsel by Indemnitee and the
      retention of such counsel by the Company, the Company will not be liable to
      Indemnitee under this Agreement for any fees of counsel subsequently incurred
      by
      Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee
      shall have the right to employ her counsel in any such Proceeding at
      Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee
      has been previously authorized by the Company, or (B) Indemnitee shall have
      reasonably concluded that there may be a conflict of interest between the
      Company and the Indemnitee in the conduct of such defense or (C) the Company
      shall not, in fact, have employed counsel to assume the defense of such
      Proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the
      expense of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11. ATTORNEYS'
      FEES.

    

    In
      the
      event that Indemnitee or the Company institutes an action to enforce or
      interpret any terms of this Agreement, the Company shall reimburse Indemnitee
      for all of the Indemnitee's reasonable fees and expenses in bringing and
      pursuing such action or defense, unless as part of such action or defense,
      a
      court of competent jurisdiction determines that the material assertions made
      by
      Indemnitee as a basis for such action or defense were not made in good faith
      or
      were frivolous.

    

    12. CONTINUATION
      OF OBLIGATIONS.

    

    All
      agreements and obligations of the Company contained herein shall continue during
      the period the Indemnitee is a director or officer of the Company, or is or
      was
      serving at the request of the Company as a director, officer, fiduciary,
      employee or agent of another corporation, partnership, joint venture, trust
      or
      other enterprise, and shall continue thereafter so long as the Indemnitee shall
      be subject to any possible proceeding by reason of the fact that Indemnitee
      served in any capacity referred to herein.

    

    13. SUCCESSORS
      AND ASSIGNS.

    

    This
      Agreement establishes contract rights that shall be binding upon, and shall
      inure to the benefit of, the successors, assigns, heirs and legal
      representatives of the parties hereto.

    

    14. NON-EXCLUSIVITY.

    

    (a) The
      provisions for indemnification and advancement of expenses set forth in this
      Agreement shall not be deemed to be exclusive of any other rights that the
      Indemnitee may have under any provision of law, the Company’s Articles of
      Incorporation or Bylaws, the vote of the Company’s shareholders or disinterested
      directors, other agreements or otherwise, both as to action in her official
      capacity and action in another capacity while occupying her position as a
      director or officer of the Company.

    

    (b) In
      the
      event of any changes, after the date of this Agreement, in any applicable law,
      statute, or rule which expand the right of a Nevada corporation to indemnify
      its
      officers and directors, the Indemnitee’s rights and the Company’s obligations
      under this Agreement shall be expanded to the full extent permitted by such
      changes. In the event of any changes in any applicable law, statute or rule,
      which narrow the right of a Nevada corporation to indemnify a director or
      officer, such changes, to the extent not otherwise required by such law, statute
      or rule to be applied to this Agreement, shall have no effect on this Agreement
      or the parties’ rights and obligations hereunder.

    

    15. EFFECTIVENESS
      OF AGREEMENT.

    

    To
      the
      extent that the indemnification permitted under the terms of certain provisions
      of this Agreement exceeds the scope of the indemnification provided for in
      the
      Nevada Revised Statutes, such provisions shall not be effective unless and
      until
      the Company’s Articles of Incorporation authorize such additional rights of
      indemnification. In all other respects, the balance of this Agreement shall
      be
      effective as of the date set forth on the first page and may apply to acts
      of
      omissions of Indemnitee which occurred prior to such date if Indemnitee was
      an
      officer, director, employee or other agent of the Company, or was serving at
      the
      request of the Company as a director, officer, employee or agent of another
      corporation, partnership, joint venture, trust or other enterprise, at the
      time
      such act or omission occurred.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    16. SEVERABILITY.

    

    Nothing
      in this Agreement is intended to require or shall be construed as requiring
      the
      Company to do or fail to do any act in violation of applicable law. The
      Company’s inability, pursuant to court order, to perform its obligations under
      this Agreement shall not constitute a breach of this Agreement. The provisions
      of this Agreement shall be severable as provided in this SECTION 16. If this
      Agreement or any portion hereof shall be invalidated on any ground by any court
      of competent jurisdiction, then the Company shall nevertheless indemnify
      Indemnitee to the full extent permitted by any applicable portion of this
      Agreement that shall not have been invalidated, and the balance of this
      Agreement not so invalidated shall be enforceable in accordance with its
      terms.

    

    17.
      GOVERNING LAW.

    

    This
      Agreement shall be interpreted and enforced in accordance with the laws of
      the
      State of Nevada, without reference to its conflict of law principals. To the
      extent permitted by applicable law, the parties hereby waive any provisions
      of
      law which render any provision of this Agreement unenforceable in any respect.
      

    

    18. NOTICE.

    

    All
      notices, requests, demands and other communications under this Agreement shall
      be in writing and shall be deemed duly given (i) if delivered by hand and
      receipted for by the party addressee or (ii) if mailed by certified or
      registered mail with postage prepaid, on the third business day after the
      mailing date. Addresses for notice to either party are as shown on the signature
      page of this Agreement, or as subsequently modified by written
      notice.

    

    19. MUTUAL
      ACKNOWLEDGMENT.

    

    Both
      the
      Company and Indemnitee acknowledge that in certain instances, federal law or
      applicable public policy may prohibit the Company from indemnifying its
      directors and officers under this Agreement or otherwise. Indemnitee understands
      and acknowledges that the Company has undertaken or may be required in the
      future to undertake with the appropriate state or federal regulatory agency
      to
      submit for approval any request for indemnification, and has undertaken or
      may
      be required in the future to undertake with the Securities and Exchange
      Commission to submit the question of indemnification to a court in certain
      circumstances for a determination of the Company’s right under public policy to
      indemnify Indemnitee.

    

    20. COUNTERPARTS.

    

    This
      Agreement may be executed in one or more counterparts, each of which shall
      constitute an original.

    

    21. AMENDMENT
      AND TERMINATION.

    

    No
      amendment, modification, termination or cancellation of this Agreement shall
      be
      effective unless in writing signed by both parties hereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      year
      set forth above.

    

    
      

      
        	 	 	 
	 	WONDER
                AUTO
                TECHNOLOGY, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name: Qingjie
                Zhao
	 	Title: CEO
                and President

         

      

    

    
      
        	 	 	 
	 	INDEPENDENT
                DIRECTOR
	 
 	 
 	 
 
	 	By:Chemtura
      Corporation 2007 Management Incentive Program

    

    

    1. Establishment
      and Purpose.
      Pursuant
      to its authority under the 2005 Crompton Corporation Short-Term Incentive Plan
      (the “STIP”), and consistent with the purpose of the STIP as stated therein, the
      Committee hereby establishes the 2007 Chemtura Corporation Management Incentive
      Program (the “2007 MIP”). Unless otherwise defined herein, all capitalized terms
      shall have the meaning given to such terms in or pursuant to the STIP. The
      2007
      MIP provides each Participant with an opportunity to earn a variable
      compensation Award for the calendar year 2007 (the “2007 Performance Period”),
      based on the attainment of pre-established performance goals, as set forth
      herein (an “MIP Award”). As applicable, such MIP Awards are intended to qualify
      as “performance-based compensation” within the meaning of Section 162(m) of the
      Code.

    

    The
      Chemtura 2007 Management Incentive Program is based on a combination of
      individual and Business / Corporate performance. 

    

    For
      participants assigned to business groups, performance is tied to accomplishment
      of predetermined levels of Operating Income (OI), and corporate Net Income
      After
      Taxes (NIAT) relative to predetermined goals or goals that are revised in the
      course of the year by agreement (as permitted by regulation) due to changes
      in
      the business environment or business needs. Accomplishment of Operating Income
      relative to target will be rewarded on a scaled level. 

    

    The
      Business Groups are:

    

    Crop
      Protection

    Consumer
      Products

    Flame
      Retardants

    Performance
      Specialties

    Plastic
      Additives

    

    For
      individuals assigned to corporate groups, performance is tied to accomplishment
      of predetermined levels of Net Income After Taxes and accomplishment of a roll
      up of the five business Operating Income levels relative to predetermined goals
      or goals that are revised in the course of the year by agreement (as permitted
      by regulation) due to changes in the business environment or business needs.
      Accomplishment of Operating Income relative to target will be rewarded on a
      scaled level. Corporate Groups include: Strategy, New Business Development
&
Technology, Executive, Finance, Human Resources and Communications, Information
      Technology, Legal and Supply Chain Operations. In addition, L1 Executives,
      other
      than Business Heads, will also be considered participants in the Corporate
      Group. Attachment B includes a summary of the corporate and business group
      assignments and other features of the 2007 MIP design. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    2. Threshold
      Corporate Performance; Funding Pool.
      The
      Committee will authorize the payment of MIP awards from one funding pool. The
      amount of the funding pool will be determined based on the performance of the
      Business Groups and the Company. For the 2007 Performance Period, the amount
      of
      the Funding Pool will be based entirely on a multiple of pre-determined Business
      OI and Corporate NIAT targets for calendar year 2007 (as set forth on Attachment
      A, hereto). The amount of the Funding Pool shall be determined based on OI
      and
      NIAT up to a maximum of 2.1 times the dollar value of the aggregate Target
      Award
      (as defined below) for the Participants in the MIP. Charges to earnings,
      including but not limited to fines and penalties related to past: (i) antitrust
      events; (ii) environmental events; and/or (iii) corporate restructuring,
      including plant closures, sale or purchase of businesses and severance, will
      be
      excluded from OI and NIAT for purposes of determining whether and to what extent
      such OI and NIAT targets have been attained. The Committee shall have full
      discretion to set the level for inclusion or exclusion of such factors. To
      the
      extent applicable, the Committee, in determining the Company’s NIAT, shall use
      the information set forth in the Company's audited financial statements. For
      the
      business groups, no MIP Award, or portion thereof, will be paid unless the
      Business has OI and NIAT of at least the designated minimum threshold identified
      on Attachment A (the “Threshold Business / Corporate Performance”), regardless
      of whether Business / Corporate Performance Goals (as defined below) are met.
      For the corporate groups, no MIP Award or portion thereof, will be paid unless
      the OI and NIAT of at least the designated minimum threshold identified on
      Attachment A (the “Threshold Business / Corporate Performance”), regardless of
      whether Business / Corporate Performance Goals (as defined below) are met.
      The
      amount of the Funding Pool for the 2007 Performance Period shall be determined
      as set forth on Attachment B, as determined by the Committee for the 2007
      Performance Period. 

    

    CEO
      and Other Section 16 Participants

    

    For
      the
      CEO and each of the other Section 16 Participants, the starting point is the
      target defined as a percentage of base salary. The maximum multiplier for the
      CEO is 2.00 times. For the other Section 16 Participants, the maximum payout
      is
      2.00 times target. 

    

    Based
      on
      the funding formula above and demonstrated performance, the CEO will propose
      Business / Corporate bonus amounts for Chemtura’s Officers and his direct
      reports. The Committee will determine the CEO’s bonus and authorize bonuses for
      Chemtura Officers based on target of salary, OI roll up vs. target and NIAT
      results as determined above and their discretion up to the level previously
      agreed level of maximum payouts. 

    

    Other
      than Section 16 Participants

    

    Each
      Participant who is not a Section 16 Participant shall have a target percentage
      of base salary that is used to establish their Business / Corporate Target
      Award
      amount. The percentages of base salary will be adjusted up or down depending
      on
      the funding of the MIP Funding Pool. Corporate Compensation will sum all of
      the
      calculated results for all Participants and establish a multiplier up or down
      to
      ensure that no more than the authorized Funding Pool is spent in total.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3. Targeted
      Performance.
      A
      Participant’s “Target Award Percentage” is the percentage of the Participant’s
      base salary, set by the Committee, that the Participant would earn for the
      2007
      Performance Period if a targeted level of performance was attained for
      pre-established “Business / Corporate Performance Goals.” Such Performance Goals
      shall be established and communicated in accordance with the terms of STIP.
      The
      amount that a Participant is eligible to earn for the Performance 2007 based
      on
      the Target Award Percentage is his or her “Target Award.” Individuals who
      transfer to or from a corporate role or from one business to another during
      the
      plan year will have their funding targets prorated for the time spent in each
      area. 

    

    4. Individual
      Performance Goals.
      Each
      Participant will establish a single set of Individual Performance Goals,
provided,
      that,
      for any
      Award intended to be “qualified performance-based compensation,” the applicable
      Individual Performance Goals for any Performance Period shall be established
      in
      such a way as to satisfy the requirements of Section 162(m) of the Code. The
      emphasis will be on measurable and quantifiable goals and results. A detailed
      payout matrix showing the Business / Corporate Target Awards, and the minimum
      and maximum payout for each class of Participants based on performance relative
      to Business / Corporate Performance Goals shall be provided to each Participant
      at the time that Performance Goals are established for the applicable
      Performance Period. 

    

    5. Earning
      an Award.
      Subject
      to attaining the Threshold Business / Corporate Performance, the amount of
      a
      Participant’s Award may be increased above his or her Target Award based on the
      extent to which the level of attainment of the applicable Business / Corporate
      Performance Goals exceeds the target level for that Performance Period, as
      specified by the Committee at the time the Performance Goals are set for that
      Performance Period. An Award may also be reduced below the Target Award to
      the
      extent the level of achievement of the Performance Goals is below target, but
      at
      or above the minimum level for that Performance Period, as specified by the
      Committee at the time the Performance Goals are established. Notwithstanding
      anything else to the contrary herein, a Participant will not receive any MIP
      Award, or portion thereof, if the level of achievement of any Business /
      Corporate Performance Goal is below the minimum required to earn an Award for
      the applicable Performance Period, as specified by the Committee at the time
      the
      Performance Goals are established. The Committee may reduce or increase the
      amount of a payout otherwise to be made in connection with an Award but may
      not
      exercise its discretion to increase any such amount in connection with an Award
      that is intended to qualify as "performance-based compensation" as defined
      under
      Section 162(m) of the Code, or to increase an Award beyond the maximum Award
      established by the Committee at the time that Performance Goals are established.
      The Committee may consider other performance criteria in exercising such
      negative or positive discretion, to the extent permitted under Section 162(m)
      of
      the Code, including reducing the amount of an Award to offset the effect or
      impact of extraordinary and/or nonrecurring events during the 2007 Performance
      Period, as determined by the Committee in its sole discretion. The CEO will
      recommend Business / Corporate bonus amounts to the Committee for each of the
      other Section 16 Participants. 

    

    Once
      adjusted targets for each Business / Corporate outside of the Section 16 group
      are established, the adjusted targets will be subject to a Personal Performance
      Multiplier (PPM) that may be anywhere between .00 and 1.50 that will adjust
      the
      MIP payouts up or down based on Business / Corporate results and behaviors.
      The
      sum of all Personal Performance Multipliers for Chemtura cannot exceed the
      sum
      of the number of participants in MIP. This is to prevent an overspending of
      the
      funding pool authorized by the Compensation Committee. PPM’s will clearly
      correlate to performance ratings for 2007 work. Significant differentiation
      for
      Individual performance is anticipated. Expected ranges for each performance
      rating are:

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

      
        	
                Highest
                  Performance

              	
                1.20
                  to 1.50

              
	
                 Successful
                  Performance

              	
                 
                  .75 to 1.25

              
	
                Inconsistent
                  Performance

              	
                   
                  .50 to .75

              
	
                Unacceptable
                  Performance

              	
                 
                    .00 to
                  .50

              

      

    6. Changes
      to Targets or Performance Goals.
      To the
      extent not inconsistent with the requirements of Section 162(m) of the Code
      with
      respect to "qualified performance-based compensation," the Committee may at
      any
      time prior to the final determination of Awards: (i) change the Target Award
      Percentage of any Participant; (ii) assign a different Target Award Percentage
      to a Participant to reflect any change in the Participant's responsibility
      level
      or position during the course of the Performance Period; or (iii) change the
      Performance Goals of any Participant to reflect a change in corporate
      capitalization, such as a stock split or stock dividend, or a corporate
      transaction, such as a merger, consolidation, separation, reorganization or
      partial or complete liquidation, or to equitably reflect the occurrence of
      any
      extraordinary event, any change in applicable accounting rules or principles,
      any change in the Company's method of accounting, any change in applicable
      law,
      any change due to any merger, consolidation, acquisition, reorganization, stock
      split, stock dividend, combination of shares or other changes in the Company's
      corporate structure or shares, or any other change of a similar nature.

     

    7. Eligibility.
      The
      Committee shall designate Participants in the MIP in accordance with the terms
      of the STIP and as set forth herein. The Committee will delegate to the CEO
      authority to determine eligibility for participation in the Other Management
      Funding Pool. Each Participant must be an Eligible Employee as of January 1,
      2007, and be actively employed as of the scheduled payment date March 15, 2008.
      Exceptions may be granted to employees who are participating as of January
      1st
      of the
      Plan year, complete at least six months of employment during the Plan year,
      and
      then retire (defined as eligibility for an immediate non-discounted benefit
      under one of Chemtura’s pension plans or the attainment of a minimum of age 55
      and a minimum of 5 years service) or leave involuntarily (except for cause).
      Participants who retire and provide Chemtura with three months advanced written
      notice and individuals who terminate involuntarily not for cause after May
      1 of
      the plan year may be eligible for prorated payments. Participants who resign
      or
      are terminated for cause will forfeit eligibility for any payment under this
      program. 

    

    Any
      employee of the Company who is hired or is promoted into a MIP eligible
      position, as determined by the Committee after the beginning of the Plan year
      may be assigned prorated target incentives bases upon salary at eligibility
      and
      the number of months in the position provided they have a minimum of six months
      participation. 

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    8. Other
      Conditions.
      Participation in the MIP is in no way an employment agreement, and each
      employee’s employment by Chemtura remains, and shall continue to remain at will.
      Nothing in the MIP changes or in any way affects an employee’s right to resign
      his or her employment at any time, or Chemtura’s right to terminate such
      employee’s employment at any time. Notwithstanding anything else to the contrary
      herein, the CEO and the Vice President of Human Resources shall retain the
      discretion to adjust eligibility, targets or Business / Corporate performance
      goals for Business / Corporate whose funding is provided by the Other Management
      Funding Pool. 

    

    
      
        
        

      

      
        5

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