Document:

Exhibit

Exhibit 10.6
NEWFIELD EXPLORATION COMPANY
2017 OMNIBUS INCENTIVE PLAN

NOTICE OF CASH-SETTLED RESTRICTED STOCK UNIT AWARD
    
	
		
	 
	Awardee

	Date of Agreement:
	_________, 20__

	Vesting Dates:
	100% Vested at Grant Date

	Number of Cash-Settled Restricted Stock Units:
	________________

	Awardee Position Type on Date of Agreement:
	[Officer]

Newfield Exploration Company, a Delaware corporation (the “Company”), previously granted you Cash-Settled Restricted Stock Units on [February 10, 2016 and/or February 11, 2015], pursuant to a Cash-Settled Restricted Stock Unit Award Agreement and the Terms and Conditions attached thereto, as amended (collectively, the “Prior Agreements”), and you and the Company agree that you intend to retire on [•] (the “Retirement Date”).  In connection therewith, the Company is entering into this arrangement with you on the Date of Agreement set forth above, whereby the Compensation & Management Development Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) hereby awards to you, the above-named Awardee, a number of fully vested cash-settled Restricted Stock Units set forth above (the “Cash-Settled RSUs”), effective as of, and immediately prior to, the Retirement Date (the “Grant Date”), on the terms and conditions of the Newfield Exploration Company 2017 Omnibus Incentive Plan, as it may be amended or restated from time to time (the “Plan”), the attached Terms and Conditions (the “Terms and Conditions”), and this Notice of Cash-Settled Restricted Stock Unit Award (the “Notice”).  Each Cash-Settled RSU represents the right to receive a cash payment equal to the Fair Market Value of a share of the Company’s common stock, $0.01 par value per share (the “Common Stock”), on the applicable Payment Date.  By entering into this arrangement, you are being given the opportunity to receive an award of additional fully vested Cash-Settled RSUs to which you are not otherwise entitled pursuant to the terms of the Prior Agreements.  If your employment terminates prior to the Retirement Date, then the grant of Cash-Settled RSUs hereunder shall not become effective, and the Cash-Settled RSUs shall be null and void.  
In signing below, and in accepting this award of Cash-Settled RSUs, you are expressly agreeing to the confidentiality provisions contained within Section 3 of the Terms and Conditions and to the forfeiture conditions contained within Sections 3 and 4 of the Terms and Conditions.  You acknowledge and agree that you are making such agreement knowingly and voluntarily after reviewing and considering the Terms and Conditions, including Sections 3 and 4 thereof.  
The Company shall pay to you, at the time of payment and subject to the other conditions provided in this Notice and the attached Terms and Conditions (including Sections 3 and 4), an amount in cash equal

to the Fair Market Value of one share of the Common Stock on the applicable Payment Date in exchange for each such Cash-Settled RSU and thereafter you shall have no further rights with respect to such Cash-Settled RSU.
Except as otherwise set forth in the Terms and Conditions, the Cash-Settled RSUs may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of by you (other than by will or the applicable laws of descent and distribution). Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation of this Notice or the Terms and Conditions shall be void and the Company shall not be bound thereby.  
Capitalized terms that are not defined herein shall have the meaning ascribed to such terms in the Plan or the Terms and Conditions.
In accepting the award of Cash-Settled RSUs you accept and agree to be bound by all the terms and conditions of the Plan, this Notice and the Terms and Conditions.  A copy of the Plan will be furnished to you upon request.

IN WITNESS WHEREOF, the Committee has caused this Notice to be duly executed by an authorized officer of the Company, and Awardee has executed this Notice, all as of the date first above written.
NEWFIELD EXPLORATION COMPANY

By:_________________________________________        
Name:
Title:       

AWARDEE
                        
_____________________________________________________        
[Awardee]

NEWFIELD EXPLORATION COMPANY
2017 OMNIBUS INCENTIVE PLAN

TERMS AND CONDITIONS
		
	1.
	DEFINITIONS.  For purposes of these Terms and Conditions (the “Terms and Conditions”), the following terms shall have the indicated meanings: 

1.1    “Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such specified Person and, if such specified Person is a natural person, the immediate family members of such specified Person. “Control” (including the terms “controlled by” and “under common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee or executor, as general partner or manager, by contract or otherwise, including the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar body governing the affairs of such Person.

1.2    “Company Business” means the acquisition or development of, or exploration for, crude oil or natural gas or any rights in, or with respect to, crude oil or natural gas within the Territory.

1.3    “Company Group” means the Company and, as applicable, its direct and indirect subsidiaries.  

1.4    “Competitive Activity” means directly or indirectly carrying on or engaging in the Company Business (other than on behalf of any member of the Company Group), including by owning an interest in, managing, operating, joining, participating in or otherwise becoming an officer, director, employee, advisor or consultant of, any entity engaged in the Company Business, in a capacity in which you have the same, similar or expanded responsibilities or duties as you had on behalf of any member of the Company Group within the 12 months prior to the date that you are no longer employed or engaged by any member of the Company Group; provided, however, that it shall not be “Competitive Activity” for you to (i) own solely as an investment and when taken together with the ownership, directly or indirectly, of all of your Affiliates, up to 5% of any class of securities of any Person if such securities are listed on any national securities exchange or traded on the Nasdaq Stock Market, provided that neither you nor your Affiliates has the power, directly or indirectly, to control or direct the management or affairs of any such entity or is involved in the management of such entity, (ii) own securities issued by the Company, (iii) provide services solely as a non-employee director of any entity or organization (including, for the avoidance of doubt, an entity engaged in the Company Business) as long as, in the course of providing such services, you do not use or disclose Confidential Information, or (iv) provide services for any entity or organization (including, for the avoidance of doubt, an entity engaged in the Company Business) as approved in writing by the Committee.  

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1.5    “Confidential Information” means all confidential, proprietary, competitively valuable or non-public information, designs, ideas, concepts, improvements, product developments, discoveries and inventions, whether patentable or not, that are or have been conceived, made, developed or acquired by or disclosed to you, individually or in conjunction with others, during the period that you are or have been employed or engaged by any member of the Company Group (whether during business hours or otherwise and whether on Company premises or otherwise) that relate to any member of the Company Group’s businesses or properties, products or services (including all such information relating to drilling programs or wells drilled by the Company Group, reserves data, technical data, including seismic, geological, geophysical and engineering information, prospect or trend data and maps, potential, proposed or completed acquisitions, mergers, or other purchases or sales of oil and gas properties or seismic or other data or technology, financial information, including historical, current, and projected financial results, unless publicly announced, strategic plans or changes in the Company Group’s operations, liquidity, borrowings, security offerings, security repurchases or redemptions, or changes in previously disclosed financial information, computer programs or program code developed by the Company Group, legal matters (including matters relating to litigation), corporate opportunities, operations, future plans, methods of doing business, business plans, strategies for developing business and market share, research, financial and sales data, pricing terms, evaluations, opinions, interpretations, acquisition prospects, the identity of customers or their requirements, the identity of key contacts within customers’ organizations or within the organization of acquisition prospects, non-public lists of employees, employee applications, summaries of employee qualifications, employee compensation, employee matters, customer or marketing and merchandising decisions, techniques and strategies, prospective names and marks).  For purposes of these Terms and Conditions, Confidential Information shall not include any information that (i) is or becomes generally available to the public other than as a result of your public use, disclosure, or fault, (ii) was available to you on a non-confidential basis before its disclosure to you by the Company Group; or (iii) becomes available to you on a non-confidential basis from a source other than a member of the Company Group, so long as such source is not bound by a confidentiality agreement or otherwise prohibited from transmitting the information by a contractual, legal or fiduciary obligation. 

1.6    “Person” means any individual, partnership, corporation, limited liability company, trust, incorporated or unincorporated organization or association or other legal entity of any kind.

1.7    “Prohibited Customer Solicitation” means (other than on behalf of any member of the Company Group) directly or indirectly, soliciting, causing to be solicited, interfering with any member of the Company Group’s relationship with, or endeavoring to entice away from any member of the Company Group, any Person or Affiliate who was or is a material customer or material supplier of, or who has maintained a material business relationship with, any member of the Company Group and with whom or which you had personal contact, or about whom or which you obtained Confidential Information, during your employment or affiliation with the Company Group.

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1.8    “Prohibited Employee Solicitation” means directly or indirectly, individually or through or on behalf of another Person, soliciting, hiring, recruiting, attempting to hire or recruit, contacting with a view to the engagement or employment of, or encouraging or inducing the termination of employment or engagement of, any person who is an officer, employee, consultant, director or contractor of the Company or any other member of the Company Group and with whom you had personal contact or who directly or indirectly reported to you during your employment or engagement with the Company or any other member of the Company Group.

1.9    “Term” means the period commencing on the date that you are no longer employed by any member of the Company Group and ending on the date that is 24 months after such date.

1.10    “Territory” means those geographic areas within any Canadian province or United States county in which any member of the Company Group, as of the date that you are no longer employed or engaged by any member of the Company Group, (i) is engaged in the Company Business; or, (ii) is considering engaging in the Company Business (as evidenced by submission of a specific, written proposal to the Board or the Chief Executive Officer of the Company during the six-month period ending on the date you are no longer employed or engaged by any member of the Company Group); and (iii) any county contiguous to a county described in clause (i) or (ii) of this Section 1.10.

1.11    “Trade Secrets” means: (i) all information and materials that satisfy the definition of a “trade secret” pursuant to the definitions applied by the Texas Uniform Trade Secrets Act or the federal Defend Trade Secrets Act; or (ii) to the extent not addressed by the definitions referenced in clause (i), all Confidential Information and all other non-public information and materials with respect to the conduct or details of the business conducted by any member of the Company Group, including a formula, pattern, compilation, program, device, method, technique, process, data, financial or strategic information or plans, or list of actual or potential customers or suppliers, that (a) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and (b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

		
	2.
	PAYMENT OF CASH-SETTLED RSUS.  Payment in respect of Cash-Settled RSUs shall be made as soon as practicable, but no later than 60 days following: 

[If 3 vesting dates remain:]
	
			
	Payment Dates:
	Cash-Settled RSUs Payable:

	 
	[Vesting Date 1]
	1/3 of Cash-Settled RSUs

	 
	[Vesting Date 2]
	1/3 of Cash-Settled RSUs

	 
	[Vesting Date 3]
	1/3 of Cash-Settled RSUs

[If 2 vesting dates remain:]
	
			
	Payment Dates:
	Cash-Settled RSUs Payable:

	 
	[Vesting Date 1]
	50% of Cash-Settled RSUs 

	 
	[Vesting Date 2]
	50% of Cash-Settled RSUs

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[If 1 vesting date remains:]
	
			
	Payment Date:
	Cash-Settled RSUs Payable:

	 
	[Vesting Date 1]
	100% of Cash-Settled RSUs

As provided in the Notice of Cash-Settled Restricted Stock Unit Award to which these Terms and Conditions are attached (the “Notice”), payment in settlement of Cash-Settled RSUs shall be made in the form of cash in an amount equal to the Fair Market Value of one share of the Common Stock on the applicable Payment Date in exchange for each Cash-Settled RSU, subject to compliance with the requirements of Sections 3 and 4 of these Terms and Conditions, as applicable, and satisfaction of applicable withholding and other taxes as provided in Section 5.  Notwithstanding any other provision of the Notice or these Terms and Conditions to the contrary (but subject to the terms of Sections 3 and 4 below), (i) if you die following the Grant Date and before receiving all payments in respect of the Cash-Settled RSUs, then all remaining payments in respect of the Cash-Settled RSUs shall be made as soon as practicable (but no later than 60 days) following the date of your death, or (ii) if a Change in Control of the Company that qualifies as a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of the Nonqualified Deferred Compensation Rules, occurs following the Grant Date and before you have received all payments in respect of the Cash-Settled RSUs, then all remaining payments in respect of the Cash-Settled RSUs shall be made as soon as practicable (but no later than 60 days) following the date of such Change in Control, in each case, without regard to the remaining Payment Date(s) scheduled to occur following the date of your death or of such Change in Control, as applicable.  For the avoidance of doubt, cash payment(s) in respect of the Cash-Settled RSUs and your right to retain any cash payment received in settlement thereof are subject to compliance with the requirements set forth in Sections 3 and 4 of these Terms and Conditions.  
		
	3.
	PROTECTION OF CONFIDENTIAL INFORMATION. 

3.1    Access to Information. In the course of your employment or engagement with the Company Group and in the performance of your duties on behalf of the Company Group, you have been provided with, and you will continue to be provided with, and have access to, Confidential Information. 

3.2    Nondisclosure. You agree to preserve and protect the confidentiality of all Trade Secrets both prior to and after the date that you are no longer employed or engaged by any member of the Company Group. Except as expressly permitted by this Section 3, you will not disclose, divulge or furnish to any other Person or use for your own or any other Person’s benefit any Trade Secrets, other than as necessary and authorized in the course of your employment or engagement with any member of the Company Group and for the Company Group’s business purposes. 

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3.3    Security. You shall follow all Company Group policies and protocols regarding the physical security of all documents and other material constituting or containing Trade Secrets (regardless of the medium on which any Trade Secret is stored).  

3.4    Return of Property.  Upon the date that you are no longer employed or engaged by any member of the Company Group, and at any other time upon request of the Company, you shall promptly surrender, and deliver to the Company all documents, files (including electronically stored information) and all copies thereof and all other materials of any nature containing or pertaining to all Trade Secrets in your possession, custody and control and you shall not retain any such documents or other materials.  Within 10 days of any such request, you shall certify to the Company in writing that you have returned to the Company all such documents and materials.

3.5    Consequences of Breach.  Notwithstanding any other provision of these Terms and Conditions or the Notice, if it is determined by the Committee in its sole and absolute discretion that you have violated any of the terms of Section 3 of these Terms and Conditions, whether before or after the date that you are no longer employed or engaged by any member of the Company Group, then your right to receive any cash payments in respect of Cash-Settled RSUs or any other payment or benefit provided to you under the Notice or these Terms and Conditions, to the extent still outstanding at that time, shall be completely forfeited.  Such remedy shall be in addition to all other remedies available to each member of the Company Group, at law and equity.  For the avoidance of doubt, the Company and each other member of the Company Group shall be entitled to obtain a temporary or permanent injunction or other equitable relief to prevent or enjoin your breach or threatened breach of this Section 3 and shall be entitled to specifically enforce this Section 3, without proof of actual damages or the necessity of posting a bond or other security as a prerequisite to obtaining equitable relief. You agree not to dispute or resist any such application for relief on the basis that the Company or any other member of the Company Group has an adequate remedy at law or that damage arising from such non-performance or breach is not irreparable. 

3.6    Disclosures Pursuant to Law or Legal Process; Permitted Disclosures.  Notwithstanding the foregoing provisions of Section 3 of these Terms and Conditions, you may make disclosures for the purpose of complying with any applicable laws or regulatory requirements or that you are legally compelled to make by subpoena, civil investigative demand, order of a court of competent jurisdiction, or similar process, or otherwise by law.  Nothing herein will prevent you from: (i) making a good faith report of possible violations of applicable law to any governmental agency or entity; or (ii) making disclosures that are protected under the whistleblower provisions of applicable law.  An individual (including you) shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition, an individual who files a lawsuit for retaliation by an employer of reporting a suspected violation of law

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may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (X) files any document containing the trade secret under seal; and (Y) does not disclose the trade secret, except pursuant to court order.

3.7    Survival.  For the avoidance of doubt, the terms of this Section 3 shall survive the termination of your employment or engagement with the Company Group, regardless of the reason for such termination.

		
	4.
	CONSEQUENCES OF CERTAIN COMPETITION AND SOLICITATION FOLLOWING QUALIFIED RETIREMENT

4.1    Consequences for Engaging in Certain Activities Following a Qualified Retirement.  You agree that your rights to: (i) receive any cash payments or any other payment or benefit provided to you under the Notice or these Terms and Conditions with respect to the Cash-Settled RSUs; and (ii) retain the cash payments or any other payment or benefit received by you pursuant to the Notice or these Terms and Conditions with respect to the Cash-Settled RSUs, are expressly conditioned upon your promise that, during the Term, you shall not engage in: (x) any Competitive Activity in the Territory, (y) any Prohibited Customer Solicitation in the Territory, or (z) any Prohibited Employee Solicitation. 

4.2    Disclosure of Business Activities.  You agree that, during the Term, you will: (a) inform the Company in writing of any business activity in which you engage or are materially planning to engage that relates to the acquisition or development of, or exploration for, crude oil or natural gas or any rights in, or with respect to, crude oil or natural gas; and (b) if you are unsure of whether the pursuit of a particular business opportunity would involve engaging in business within the Territory, you will make a written request to the Company to clarify whether the applicable geographic area related to the business opportunity is within the Territory.  Any notices or requests under this Section 4.2 should be directed to the Company’s General Counsel.  

4.3    Right to Cancellation and Recovery. You specifically acknowledge and agree that the Company has granted you the Cash-Settled RSUs described in the Notice to reward you for your future efforts and loyalty to the Company Group, and that the Cash-Settled RSUs provided to you give you the opportunity to participate in the potential future appreciation of the Company and further align your interests with the long-term interests of the Company Group.  Accordingly, in the event that, during the Term, you engage in any of the activities described in parts (x), (y), or (z) of Section 4.1, then the Company may: (i) refuse to pay or deliver any cash payments in respect of the Cash-Settled RSUs that would otherwise be paid on or in connection with all remaining Payment Dates specified herein that are scheduled to occur following the date you engage in such prohibited activity, and such Cash-Settled RSUs shall become automatically null and void; and (ii) recover from you, and you shall pay to the Company, an amount equal to the aggregate cash payments previously received by you in settlement of the Cash-Settled RSUs.  If you do not pay any such amount over to

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the Company within 20 days of demand, such amount may thereafter bear interest at the maximum rate permitted by law and you may be liable for all of the Company’s costs of collection, including reasonable legal fees.  
		
	5.
	TAX WITHHOLDING.  

5.1    Withholding.  Payments in settlement of Cash-Settled RSUs under Section 2 above are subject to the Company’s collection of all applicable federal, state, local and foreign tax withholding obligations of the Company.  Unless alternative arrangements are elected by you and permitted by the Committee, in order to satisfy obligations for the payment of withholding taxes and other tax obligations related to the Cash-Settled RSUs, the Company shall withhold from any amounts payable to you in settlement of Cash-Settled RSUs hereunder or from any cash or stock remuneration or other payment then or thereafter payable to you any tax required to be withheld by reason of such taxable income, wages or compensation, including shares of Common Stock sufficient to satisfy the withholding obligation. 

5.2    Early Tax Payments.  To the extent permitted by the Nonqualified Deferred Compensation Rules, payments may be made to you with respect to Cash-Settled RSUs prior to the applicable scheduled Payment Date(s) provided in Section 2, on a pro-rata basis in respect of each scheduled Payment Date, if, as determined by the Committee in its sole discretion, it would be necessary to pay employment or other taxes imposed upon the Cash-Settled RSUs prior to the scheduled Payment Date, including (i) the Federal Insurance Contributions Act (FICA) tax imposed under Sections 3121(a) and 3121(v)(2) of the Code (the “FICA Amount”), and (ii) the income tax at source on wages imposed under Section 3401 of the Code or the corresponding withholding provisions of applicable state, local or foreign tax laws as a result of the payment of the FICA Amount and the additional income tax at source on wages attributable to the pyramiding of Section 3401 of the Code wages and taxes (together with the FICA Amount, the “Taxes”). For purposes of determining the amount of such Taxes, you will be considered to pay federal income taxes at the highest individual rate in effect in the year in which the Taxes will be paid.

		
	6.
	NON-TRANSFERABILITY. None of the Cash-Settled RSUs, the Notice, or these Terms and Conditions is transferable by you other than by will or by the laws of descent and distribution.

		
	7.
	CAPITAL ADJUSTMENTS AND REORGANIZATIONS.  The existence of the Cash-Settled RSUs shall not affect in any way the right or power of the Company or its stockholders to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding.

		
	8.
	CASH-SETTLED RSUs DO NOT AWARD ANY RIGHTS OF A STOCKHOLDER.  You shall not have the voting rights or any of the other rights, powers or privileges of a holder of the Common Stock with respect to the Cash-Settled RSUs that are awarded hereby.    

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	9.
	NO ADVICE REGARDING CASH-SETTLED RSUs.  You acknowledge and agree that (a) you are not relying upon any written or oral statement or representation of or from any member of the Company Group, or any member of the Company Group’s respective employees, directors, officers, fiduciaries, trustees, attorneys or agents (collectively, the “Company Parties”) regarding the tax effects associated with your receipt and holding and the settlement of the Cash-Settled RSUs, and (b) in deciding to accept the Cash-Settled RSUs, you are relying on your own judgment and the judgment of the professionals of your choice with whom you have consulted.  You hereby release, acquit and forever discharge the Company Parties from all actions, causes of action, suits, debts, obligations, liabilities, claims, damages, losses, costs and expenses of any nature whatsoever, known or unknown, on account of, arising out of, or in any way related to the tax effects associated with your receipt and holding and the settlement of the Cash-Settled RSUs.

		
	10.
	EMPLOYMENT RELATIONSHIP.  Records of the Company or other members of the Company Group regarding your period of service, termination of employment, separation from service and the reason(s) therefor, and other matters shall be conclusive for all purposes hereunder, unless determined by the Company to be incorrect.

		
	11.
	FURNISH INFORMATION.  You agree to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirements imposed upon the Company or any other member of the Company Group by or under any applicable statute or regulation.  

		
	12.
	NOT AN EMPLOYMENT AGREEMENT.  The Notice and these Terms and Conditions are not an employment agreement, and no provision of the Notice or these Terms and Conditions shall be construed or interpreted to create an employment or other service relationship between you and any member of the Company Group or guarantee the right to remain employed or engaged by any member of the Company Group for any specified term.

		
	13.
	LIMIT OF LIABILITY.  Under no circumstances will any member of the Company Group be liable for any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any Person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan.  No member of the Company Group and no member of the Board shall be liable for any act, omission or determination taken or made in good faith with respect to the Notice, the Terms and Conditions or the Cash-Settled RSUs granted thereunder.

		
	14.
	EXECUTION OF RECEIPTS AND RELEASES.  Any payment of cash or other property to you, or to your legal representative, heir, legatee or distributee, in accordance with the provisions hereof, shall, to the extent thereof, be in full satisfaction of all claims of such Persons hereunder.  The Company may require you or your legal representative, heir, legatee or distributee, as a condition precedent to

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such payment to execute a release of claims and receipt therefor in such form as it shall determine. 

		
	15.
	FUNDING.  You shall have no right, title, or interest whatsoever in or to any assets of the Company or any investments that the Company may make to aid it in meeting its obligations under the Notice and the Terms and Conditions.  Your right to receive payments under the Notice and the Terms and Conditions shall be no greater than the rights of an unsecured general creditor of the Company.

		
	16.
	NO GUARANTEE OF INTERESTS.  The Board and the Company do not guarantee the Common Stock of the Company underlying the Cash-Settled RSUs from loss or depreciation.

		
	17.
	SUCCESSORS.  These Terms and Conditions and the Notice shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Company, its successors and assigns.

		
	18.
	SEVERABILITY.  If any provision (or part thereof) of these Terms and Conditions or the Notice is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions (or parts thereof) hereof, but such provision (or part thereof) shall be fully severable and these Terms and Conditions and the Notice shall be construed and enforced as if the illegal or invalid provision (or part thereof) had never been included. The parties agree to cooperate in any revision of the Notice or these Terms and Conditions that may be necessary to meet the requirements of the law. The parties further agree that a court may revise any provision of the Notice or these Terms and Conditions to render the Notice or these Terms and Conditions enforceable to the maximum extent possible.  

		
	19.
	GOVERNING LAW.  All questions arising with respect to the provisions of these Terms and Conditions and the Notice shall be determined by application of the laws of Delaware, without giving any effect to any conflict of law provisions thereof, except to the extent Delaware state law is preempted by federal law.  The Company is incorporated in Delaware and Delaware has a substantial relationship to the Company and the issuance of the award provided pursuant to the Notice and these Terms and Conditions.  There is a reasonable basis for this choice of Delaware law, as Delaware law is well known to the Company and well-developed with respect to the subject matters of the Notice and these Terms and Conditions.  Further, the designation of Delaware law and the interpretation and application of these Terms and Conditions and the Notice consistent with principles of Delaware law assures uniformity, certainty, and predictability in the application of the Plan through which the Cash-Settled RSUs are granted.    

		
	20.
	CONSENT TO JURISDICTION AND VENUE.  You hereby consent and agree that the state courts located in Montgomery County, Texas and the United States District Court for the Southern District of Texas each shall have personal jurisdiction and proper and exclusive venue with respect to any dispute between you and the Company arising in connection with the Cash-Settled RSUs, these Terms

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and Conditions, or the Notice.  In any dispute with the Company, you will not raise, and you hereby expressly waive, any objection or defense to such jurisdiction as an inconvenient forum.    

		
	21.
	AMENDMENT.  Except as provided in Section 18, these Terms and Conditions and the Notice may be amended or waived by the Committee in writing at any time (including for the avoidance of doubt, any provisions of Section 3 or 4 or any related definitions); provided, that no such amendment shall adversely affect the Cash-Settled RSUs in any material way, without your written consent.  

		
	22.
	ELECTRONIC DELIVERY AND ACCEPTANCE.  The Company may, in its sole discretion, decide to deliver any documents related to the Cash-Settled RSUs or future awards that may be granted under the Plan, if any, by electronic means or to request that you consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and, if requested, to participate in the Plan through an online or electronic system established and maintained by the Company or another third party designated by the Company.  

		
	23.
	SECTION 409A COMPLIANCE.  Notwithstanding any provisions of the Notice or these Terms and Conditions to the contrary, all provisions of the Notice and these Terms and Conditions are intended to comply with the Nonqualified Deferred Compensation Rules, or an exemption therefrom, and shall be interpreted, construed and administered in accordance with such intent.  Any payments under the Notice or these Terms and Conditions that may be excluded from the Nonqualified Deferred Compensation Rules (due to qualifying as a short-term deferral or otherwise) shall be excluded from the Nonqualified Deferred Compensation Rules to the maximum extent possible.  No payment shall be made under the Notice or these Terms and Conditions if such payment would give rise to taxation under the Nonqualified Deferred Compensation Rules to any person, and any amount payable under such provisions shall be paid on the earliest date permitted with respect to such provision by the Nonqualified Deferred Compensation Rules and not before such date.  Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under the Notice and these Terms and Conditions are exempt from, or compliant with, the Nonqualified Deferred Compensation Rules and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by you on account of non-compliance with the Nonqualified Deferred Compensation Rules.  

		
	24.
	CLAWBACK.  This award shall be subject to the clawback provisions set forth in Section 9(l) of the Plan.

		
	25.
	MISCELLANEOUS.  The Notice is awarded pursuant to and is subject to all of the terms and conditions of the Plan (including any amendments thereto) and these Terms and Conditions.  In the event of a conflict between these Terms and Conditions, the Plan and the Notice, the Plan provisions will control.  The term “you” and “your” refer to the Awardee named in the Notice.  Capitalized terms that are not defined herein shall have the meanings ascribed to such terms in the Plan or the Notice.

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	26.
	INTERPRETATION.  Titles and headings to Sections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof.  Unless the context requires otherwise, all references herein to an agreement, instrument or other document shall be deemed to refer to such agreement, instrument or other document as amended, supplemented, modified and restated from time to time to the extent permitted by the provisions thereof.  The word “or” as used herein is not exclusive and is deemed to have the meaning “and/or.”  The words “herein”, “hereof”, “hereunder” and other compounds of the word “here” shall refer to the entire Notice, Plan and Terms and Conditions and not to any particular provision hereof. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter.

11Exhibit

VENATOR OUTSIDE DIRECTORS 
ELECTIVE DEFERRAL PLAN
This Elective Deferral Plan of Venator Materials PLC is effective as of November 14, 2017 except as otherwise provided in this Plan.
ARTICLE I
NAME

1.1    Name.  The Plan shall be known as the “Venator Outside Directors Elective Deferral Plan” and is hereinafter sometimes referred to as the “Plan.”
ARTICLE II
PURPOSE
2.1    Purpose.  This Plan has been created for the primary purpose of providing outside directors of the Employer with the ability to defer the receipt of director fees.
ARTICLE III
DEFINITIONS
When used herein, the following words shall have the meanings indicated, unless the context clearly indicates otherwise:
3.1    Account.  The word “Account” shall mean the Deferral Account described in Section 5.1.
3.2    Beneficiary.  The word “Beneficiary” shall mean the person or persons entitled to receive benefits upon the death of a Director under this Plan.
3.3    Code.  The word “Code” shall mean the Internal Revenue Code of 1986, as amended.
3.4    Code Section 409A.  The words “Code Section 409A” means Code Section 409A, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.
3.5    Commencement Date.  The words “Commencement Date” shall mean the Termination Date of the Director, provided, however, if the Director is a Specified Employee as of the Termination Date, then the Commencement Date shall be the date that is six months after the Termination Date.
(a)    “Specified Employee” means a Director who as of the Termination Date of the Director is considered a Key Employee of the Employer or a Related Employer, any stock of which is publicly traded (whether on an established market or otherwise) as of the Termination Date.

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(b)    A Director is considered a “Key Employee” for the entire 12 month period beginning on an April 1 (this April 1 is referred to herein as the applicable effective date) if the Director meets the requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii) (applying the applicable regulations thereunder but disregarding Code Section 416(i)(5)) at any time during the 12-month period ending on the December 31 immediately preceding the applicable effective date.  For example, if the Director met the applicable requirements of Code Section 416(i) listed above at any time during the 2017 calendar year, then for the 12 month period beginning April 1, 2018 the Director will be considered a Key Employee.
(c)    “Related Employer” means with respect to the Employer (i) a corporation which is a member of a controlled group of corporations (within the meaning of Code Section 1563(a) determined without regard to Section 1563(a)(4) and (e)(3)(C) thereof) with the Employer, and (i) any trade or business (whether or not incorporated) which is under common control (as defined in Code Section 414(c) and regulations thereunder) with the Employer. 
3.6    Deferral Account.  The words “Deferral Account” shall mean the account maintained on the books of the Employer as described in Section 5.1.
3.7    Director.  The word “Director” shall mean an Eligible Person who has become a participant in the Plan.
3.8    Directors Fees.  The words “Directors Fees” with respect to a Director shall mean the total amount payable in cash to the Director for services as a member or committee member of the Board of Directors of the Employer.
3.9    Effective Date.  The “Effective Date” of this Plan shall be November 14, 2017.
3.10    Eligible Person. The words “Eligible Person” shall mean any member of the Board of Directors of the Employer receiving Directors Fees who is not an employee of the Employer or any of its affiliates.
3.11    Employer.  The word “Employer” shall mean Venator Materials PLC or any successor thereof, if its successor shall adopt this Plan.
3.12    Plan.  The word “Plan” shall mean the Elective Deferral Plan set forth in and by this document, as the same may be amended from time to time.
3.13    Plan Administrator.  The words “Plan Administrator” shall mean the person or committee designated by the Employer to administer this Plan.  In the absence of an effective designation, it shall mean the Employer.
3.14    Plan Year.  The words “Plan Year” shall mean the calendar year.
3.15    Termination Date.  The words “Termination Date” mean the date as of which the Plan Administrator reasonably determines that no further personal services to the Employer or any Affiliate, whether as a director, an employee or otherwise, will be provided by the Director, determined in accordance with Code Section 409A. For purposes of this determination, the Director 

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shall be treated as continuing to provide personal services for purposes of this Plan during the period up to six months that the Director is on military leave, sick leave or other bona fide leave of absence, or treated as continuing to provide personal service during the entire period of such leave if the Director retains the right to reemployment under applicable law or by contract at the end of such leave.
(a)    “Affiliate” means (i) a corporation which is a member of a controlled group of corporations (within the meaning of Code Section 1563(a) determined without regard to Sections 1563(a)(4) and (e)(3)(C) thereof) which includes the Employer, provided that the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” in Code Section I563(a)(1), and (i) any trade or business (whether or not incorporated) which is under common control (as defined in Code Section 414(c) as modified by Section 415(h) thereof and regulations thereunder) with the Employer.
3.16    Unforeseeable Emergency.  The words “Unforeseeable Emergency” of a Director shall mean a severe financial hardship to the Director resulting from an illness or accident of the Director, the spouse of the Director, the beneficiary of the Director or a dependent of the Director (as defined in Code Section 152, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)), loss of the Director’s property due to casualty, the imminent foreclosure of or eviction from Director’s primary residence, the need to pay medical expenses or prescription drug medications, the need to pay for funeral expenses of a spouse, beneficiary or dependent, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Director that is determined by the Plan Administrator to be an “unforeseeable emergency” within the meaning of Code Section 409A(a)(2)(B)(ii).
ARTICLE IV
ELIGIBILITY
4.1    Participation.  Each Eligible Person shall be eligible to participate in this Plan as of the first day of the month coincident with or immediately following the date he or she becomes an Eligible Person.  A Director shall cease to be eligible to make further elective deferrals under this Plan at such time as the Director ceases to be an Eligible Person.
4.2    Elections.    A Director may make an election once each Plan Year to defer receipt of all or a portion of the Directors Fees payable to the Director with respect to the Plan Year and such election may not be modified during the Plan Year.  The election for a Plan Year must be made prior to the beginning of the Plan Year.  Notwithstanding the foregoing, an individual who first becomes an Eligible Person during a Plan Year may make an election within 30 days of the date the Eligible Person became a member of the Board of Directors, which election shall apply with respect to Directors Fees payable with respect to such Plan Year under rules established by the Plan Administrator.  An election shall be in writing and shall conform to the applicable rules and procedures established by the Plan Administrator
Notwithstanding the foregoing restrictions on the modification of elections, the deferral elections of a Director who elects under Section 6.5 to receive a distribution upon an Unforeseeable Emergency shall be cancelled as of the date of the election under Section 6.5.  The cancellation 

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shall be applicable to fees payable for the balance of the year following the cancellation.  Following a cancellation, no further elections of deferral may be made with respect to Director Fees payable during that year.
ARTICLE V 
ACCOUNTS
5.1    Establishment and Determination of Elective Account.  The Employer shall establish an Elective Deferral Account on its books for each Director. The Deferral Account balance of a Director shall be credited with each of the following:
(a)    Elective Deferral Contribution.  The Employer shall credit to the Deferral Account of the Director the amount specified by the election of the Director under Section 4.2 at the time the Directors Fees would otherwise have been paid to the Director.  The Director Fees actually paid to the Director for the period by the Employer shall be reduced by the amount credited to the Deferral Account under this Section 5.1(a).
(b)    Earnings.  As of the end of each month, and as of the date the benefit is payable under Article VI, the Employer shall adjust the Deferral Account of a Director under rules established by the Plan Administrator to reflect the increase or decrease that would have been incurred by the account since the last day of the preceding month if the account had been invested for the applicable period in the investments selected in advance by the Director from those made available by the Plan Administrator, or to the extent no selection has properly been made, by adjusting the account to reflect the increase or decrease that would have been incurred by the account for the applicable period if the account had been invested for the applicable period in the fixed income fund selected in its sole discretion by the Plan Administrator.  The Plan Administrator shall prescribe such rules as it deems necessary or appropriate regarding the adjustments to the Deferral Accounts to reflect the timing of investment elections made by the Director and the timing of amounts being credited or debited to the Deferral Accounts.
The Deferral Account balance of a Director shall be debited with the amount paid to or on behalf of the Director under this Plan.
5.2    Statement of Accounts.  The Plan Administrator shall provide to each Director within 120 days after the close of each Plan Year, a statement in such form as the Plan Administrator selects setting forth the balance, if any, in the Deferral Account of the Director as of the last day of the Plan Year just ended.
5.3    Accounting Device Only.  The Deferral Account shall be utilized solely as a device for the measurement and determination of the amounts to be paid to the Director under this Plan.  The Deferral Account shall not constitute or be treated as a trust fund of any kind.
ARTICLE VI 
PAYMENT OF ACCOUNTS

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6.1    Benefit Payment.  A Director shall be entitled to a payment equal to the amount credited to his or her Deferral Account as of the Commencement Date.  The payment shall commence to be paid within 60 days of the Commencement Date on a date selected by the Plan Administrator in its sole discretion.
6.2    Form of Payment.  Subject to Section 6.3, the amount due the Director shall be paid in one of the following forms as selected by the Director in writing in his or her initial election form:
(a)    a single cash lump sum payment; or
(b)    installments over a period of three years; or
(c)    installments over a period of five years; or
(d)    installments over a period of ten years.
Notwithstanding the foregoing, in the event the amount credited to the Deferral Account at the Commencement Date does not exceed the limit of Code Section 402(g)(1)(B), determined as of the Commencement Date, such benefits shall be paid in the form of a single lump sum payment to the Director without regard to the form of payment elected by the Director.
In the event payment is made in installments, the Deferral Account used to measure the amount due the Director shall continue to be adjusted for earnings under rules prescribed by the Plan Administrator as provided in Section 5.1(b).  In the event no form of payment is elected, the amount due the Director shall be paid in a form of a single lump sum payment.
6.3    Change in Form of Payment.  A Director may change his or her election of the form of payment for a Commencement Date to another form available under Section 6.2 only as allowed pursuant to Code Section 409A(a)(4)(C) and the regulations promulgated thereunder, by submitting a written election form to the Plan Administrator; provided
(a)    such election shall not be effective for a Commencement Date that occurs within 12 months from the date the election form was received by the Plan Administrator; and
(b)    if the Commencement Date is on account of a separation from service, notwithstanding other provisions of this Plan, the payment or payments to which the Director is entitled shall not commence to be paid to the Director until 5 years from the date that the payment or payments would otherwise have commenced if the election to change the form of payment had not been made.
6.4    Payment to Beneficiary.  In the event a Director dies before receiving his or her full benefit under this Plan, the Employer shall pay any remaining amount due on behalf of the Director hereunder to the Beneficiary of the Director. Such payment shall be in the form of a single cash payment. The payment shall be paid within 60 days following the date of death on a date selected by the Plan Administrator in its sole discretion.  A Director may designate a Beneficiary on the form prescribed by and delivered to the Plan Administrator.  If no Beneficiary is properly 

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designated under this Plan, then the Beneficiary shall be the spouse of the Director, if living.  If there is no Beneficiary after application of the foregoing provisions of this Section, then the payment shall be made to the estate of the Director.  If under these rules the benefits are payable to the estate of the Director, and either the Plan Administrator cannot locate a qualified representative of the deceased Director’s estate, or if administration of the estate is not otherwise required, the Plan Administrator in its discretion may make the distribution to the deceased Director’s heirs at law, determined in accordance with the law of the State of the Director’s domicile in effect as of the date of the Director’s death.
6.5    Distribution in Event of Unforeseeable Emergency.  Prior to the Commencement Date, a Director may request a distribution of all or a portion of the amount credited to his or her Deferral Account in the event of an Unforeseeable Emergency. The Plan Administrator shall determine, in a non-discriminatory manner, whether a Director has an Unforeseeable Emergency.  The amount of the distribution shall be limited to the amounts reasonably necessary to satisfy the emergency need as determined by the Plan Administrator applying the provisions of the applicable regulations under Code Section 409A (including taking into account the tax costs of the distribution and the amounts available from other sources of the Director).
6.6    Discretionary Distribution for Taxes.  The Plan is intended to comply with the provisions of Code Section 409A.  In the event the Plan fails to meet the requirements of Code Section 409A, the Plan Administrator may, in the Plan Administrator’s sole discretion, distribute to the affected Director(s) the amount(s) such Director(s) are required to include in income as a result of such failure of the Plan to comply with Code Section 409A.  In the event of such a distribution, the affected Director(s)’s benefits hereunder shall be adjusted to reflect the value of the amount so distributed. At the discretion of the Plan Administrator, the amount necessary to pay the: (a) Federal Insurance Contributions Act tax imposed under Code Sections 3101, 3121(a) and 3121(v)(2) (the “FICA Amount”), and/or (a) Railroad Retirement Act tax imposed under Code Sections 3201, 3211, 3231(e)(1) and 3231(e)(8) (the “RRTA Amount”) on compensation deferred under the Plan, may be distributed to the affected Director and the benefits of such Director hereunder shall be adjusted to reflect the value of the amount so distributed. Additionally, in its discretion, the Plan Administrator may provide for the distribution to the affected Director of the amount necessary to pay the income tax at source on wages imposed under Code Section 3401 or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of the distribution of the FICA Amount or RRTA Amount, and to pay the additional income tax at source on wages attributable to the pyramiding Code Section 3401 wages and taxes.  In no event however, shall the total amount distributed pursuant to this paragraph to a particular Director with respect to the Director’s deferrals under the Plan exceed the aggregate of the FICA Amount and the RRTA Amount with respect to such deferrals, and the income tax withholding related to such FICA Amount or RRTA Amount.  The benefits of such Director hereunder shall be adjusted to reflect the value of the amount so distributed.
ARTICLE VII
ADMINISTRATION OF THE PLAN

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7.1    Plan Administration.  The Plan Administrator shall have the authority to interpret the Plan and issue such administrative procedures as it deems appropriate.  The Plan Administrator shall have the duty and responsibility of maintaining records, making the requisite calculations and disbursing the payments hereunder.  The Plan Administrator's interpretations, determinations, regulations and calculations shall be final and binding on all persons and parties concerned.
7.2    Amendment and Termination.  The Employer may amend or terminate the Plan at any time, provided, however, that (a) no such amendment or termination shall adversely affect the benefit to which a Director is entitled under Article VI prior to the date of such amendment or termination unless the change is necessary to keep the Plan in compliance with the applicable provisions of the law, including Code Section 409A, and (a) no such amendment or termination shall cancel or revoke an election made by the Director under Section 4.2 for the year in which the amendment or termination occurs prior to the end of that year unless to do so is determined by the Employer in good faith not to cause the Plan to fail to comply with Code Section 409A. In the event of a termination of the Plan, benefits shall be retained under the terms of the Plan until the Director reaches his or her Commencement Date under the Plan; provided, however, the Employer may elect to make distribution earlier to the Director if the Employer determines in good faith that such distribution does not cause the Plan to fail to comply with Code Section 409A.  The liabilities of this Plan relating to a Director may in the discretion of the Employer be transferred to another plan or program of the Employer, provided that the Employer determines in good faith that the transfer and the provisions of the plan or program receiving the transfer applicable to the transfer do not result in any change to the benefits being transferred that would cause those benefits to be subject to income taxation under the Code prior to distribution to the Director.
Except as otherwise expressly provided in other sections of this Plan, the payment of any benefits under the Plan may not be accelerated, including upon the amendment or termination of the Plan, except in a manner that the Employer determines in good faith does not cause the Plan to fail to comply with Code Section 409A.
7.3    Payments.  The Employer will pay all benefits arising under this Plan.  There shall be deducted from each payment any federal, state or local withholding or taxes or charges which may be required under applicable law as determined by the Employer.
7.4    Non-assignability of Benefits.  The benefits payable hereunder or the right to receive future benefits under the Plan may not be anticipated, alienated, pledged, encumbered, or subjected to any charge or legal process, and if any attempt is made to do so, or a person eligible for any benefits becomes bankrupt, the earnings under the Plan of the person affected may be terminated by the Plan Administrator which, in its sole discretion, may cause the same to be held or applied for the benefit of one or more of the dependents of such person or make any other disposition of such benefits that it deems appropriate.
7.5    Status of Plan.  Nothing contained herein shall be construed as providing for assets to be held in trust or escrow or any other form of asset segregation for the Director or for any other person or persons to whom benefits are to be paid pursuant to the terms of this Plan, the Director's only right hereunder being the right to receive the benefits set forth herein.  To the extent any person 

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acquires a right to receive benefits under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Employer.
7.6    Reports and Records.  The Plan Administrator and those to whom the Plan Administrator has delegated duties under the Plan shall keep records of all their proceedings and actions and shall maintain books of account, records, and other data as shall be necessary for the proper administration of the Plan and for compliance with applicable law.
7.7    Finances.  The costs of the Plan shall be borne by the Employer.  The rights of the Director (or of his or her Beneficiary) to benefits under the Plan shall be solely those of an unsecured general creditor of the Employer.  Any assets acquired by or held by the Employer shall not be deemed to be held as security for the performance of the obligations of the Employer under this Plan.
7.8    Nonguarantee of Position.  Nothing contained in this Plan shall be construed as a right of any Director to be continued in his or her position as a member of the Board of Directors.
7.9    Applicable Law.  All questions pertaining to the construction, validity and effect of the Plan shall be determined in accordance with the laws of the United States and to the extent not pre-empted by such laws, by the laws of the State of Utah.
7.10    Headings.  The headings of Sections and Articles in this Plan are for convenience purposes only and shall in no way control or be used in the interpretation of the content of the Sections or Articles or this Plan as a whole.
7.11    Number and Gender.  Where the context requires, the singular shall include the plural and the plural shall include the singular, and any gender shall include both other genders.
Dated this 14th day of November 2017.
	
	
	VENATOR MATERIALS PLC

	 

	By:  /s/ Russ R. Stolle

	Name:  Russ R. Stolle

	Title:  Senior Vice President, General Counsel and

	Chief Compliance Officer

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