Document:

Exhibit

Exhibit 10.4

[Form of 2020 Time-Based RSU Agreement]

CELANESE CORPORATION
2018 GLOBAL INCENTIVE PLAN 

TIME-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT 
DATED [Grant Date]

Pursuant to the terms and conditions of the Celanese Corporation 2018 Global Incentive Plan, you have been awarded Time-Based Restricted Stock Units, subject to the restrictions described in this Agreement. In addition to the information included in this Award Agreement, the Participant’s name and the number of Restricted Stock Units can be found in the Grant Summary located in the electronic stock plan award administration system maintained by the Company or its designee that contains a link to this Agreement (which summary information is set forth in the appropriate records of the Company authorizing such award).

2020 RSU Award

[Number of Shares Granted] Units

This grant is made pursuant to the Time-Based Restricted Stock Unit Award Agreement dated as of  [Grant Date], between Celanese and [Participant Name], which Agreement is attached hereto and made a part hereof.

Page 1

CELANESE CORPORATION
2018 GLOBAL INCENTIVE PLAN

TIME-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT

This Time-Based Restricted Stock Unit Award Agreement (the “Agreement”) is made and entered into as of [Grant Date] (the “Grant Date”), by and between Celanese Corporation, a Delaware corporation (the “Company”), and [Participant Name] (the “Participant”).  Capitalized terms used, but not otherwise defined, herein shall have the meanings ascribed to such terms in the Celanese Corporation 2018 Global Incentive Plan (as amended from time to time, the “2018 Plan”).
1.Time-Based RSU Award:  In order to encourage the Participant’s contribution to the successful performance of the Company, the Company hereby grants to the Participant as of the Grant Date, pursuant to the terms of the 2018 Plan and this Agreement, an award (the “Award”) of [Number of Shares Granted] time-based Restricted Stock Units (“RSUs”) representing the right to receive an equal number of Common Shares upon vesting.  The Participant hereby acknowledges and accepts such Award upon the terms and subject to the conditions, restrictions and limitations contained in this Agreement and the 2018 Plan. 

2.Time-Based Vesting:  Subject to Section 3 and Section 6 of this Agreement, <<Vest1>> RSUs shall vest on <<Vest1Date>>; <<Vest2>>  RSUs shall vest on <<Vest2Date>>; <<Vest3>> RSUs shall vest on <<Vest3Date>>, for a total of [Number of Shares Granted] RSUs1.  Each such date shall be referred to as a “Vesting Date”.  Each period between the Grant Date and a Vesting Date shall be referred to as a “Vesting Period”.

3.Effects of Certain Events Prior to Vesting:

(a)Upon the termination of the Participant’s employment by the Company without Cause or due to the Participant’s death or Disability (other than as provided in Section 3(c)), a prorated portion of the RSUs that remain unvested will vest in an amount equal to (i) the unvested RSUs in each Vesting Period multiplied by (ii) a fraction, the numerator of which is the number of complete and partial calendar months from the Grant Date to the date of termination without Cause or due to the Participant’s death or Disability, and the denominator of which is the number of complete and partial calendar months in each applicable Vesting Period, such product to be rounded up to the nearest whole number.  In any such case, such prorated number of unvested RSUs that vest in accordance with the preceding sentence will be subject to any applicable taxes under Section 7 upon such vesting, which may be rounded up in each case to avoid fractional shares.  In the case of termination of the Participant’s employment by the Company without Cause , the prorated RSUs will be settled in accordance with the provisions of Section 4 following the applicable Vesting Date(s).  In the case of termination of the Participant’s employment due to the Participant’s death or Disability and notwithstanding any provision of Section 4 to the contrary, the prorated RSUs will be settled as soon as administratively practicable (but in no event later than 2 1⁄2 months) after the date of such termination of employment due to death or Disability by delivery of a number of Common Shares equal to the number of such prorated RSUs.

	
				
	 
	 
	 
	 

	 
	 
	 
	 

	1 
	Utilize modified vesting schedule for persons that are Retirement eligible during the 3-year vesting cycle so that vesting events can also be FICA processing dates.

Page 2

The remaining unvested portion of the Award shall be immediately forfeited and cancelled without consideration as of the date of the Participant’s termination of employment without Cause or due to the Participant’s death or Disability.

If at any time on or before a Vesting Date the Company determines, in its sole discretion, that the Participant engaged in an act constituting Cause, the Participant’s employment shall be considered to have been terminated for Cause, and his or her Award shall be forfeited and cancelled without consideration pursuant to Section 3(d), regardless of whether the Participant’s termination initially was considered to have been without Cause.  In each such case, the provisions of Section 3(a) or 3(b) are inapplicable.
(b)Upon the termination of the Participant’s employment by the Company due to the Participant’s Retirement but under circumstances not amounting to Cause, then the Participant will continue to vest in the RSUs in accordance with the above vesting schedule.  To the extent permitted by applicable country, state or province law, as consideration for the vesting provisions upon Retirement contained in this Section 3(b), upon Retirement, the Participant shall enter into a departure and general release of claims agreement with the Company that includes two-year noncompetition and non-solicitation covenants in a form acceptable to the Company. 

(c)Notwithstanding any provision herein to the contrary, if the Participant’s employment with the Company is terminated by the Company in connection with a Qualifying Disposition, as determined by the Company in its sole discretion, other than for Cause, and regardless of whether the Participant [is then eligible for Retirement or] is offered employment with the acquiror or successor, then the entire unvested portion of the RSUs shall vest as of the date of such termination of employment and shall be settled as follows, subject to any applicable taxes under Section 7: 

(i) a prorated number of the unvested RSUs determined in accordance with the provisions of Section 3(a) had those provisions applied shall be settled in accordance with the provisions of Section 4 following the applicable Vesting Date(s); and 

(ii) the remaining number of the unvested RSUs shall be settled as soon as administratively practicable (but in no event later than 2 1⁄2 months) after the date of such termination of employment.

Notwithstanding the foregoing, in case of a termination of employment covered by this Section 3(c), if the Committee determines that the Participant has been offered employment with the acquiror or successor and in connection with that employment will receive a substitute award from the acquiror or successor with an equivalent (or greater) economic value and no less favorable vesting conditions as this Award, the Committee, in its sole discretion, may determine not to provide for the additional vesting under clause (ii) of Section 3(c).

(d)Upon the termination of the Participant’s employment for any other reason, the unvested portion of the Award shall be immediately forfeited and cancelled without consideration as of the date of the Participant’s termination of employment.

A Participant’s employment will be considered to have been terminated for Cause, and the Award forfeited and cancelled without consideration, if the Company determines, in its sole discretion, that the Participant engaged in an act constituting Cause at any time prior to a Vesting Date, regardless of whether the Participant’s termination initially was considered to have been without Cause.

Page 3

4.Settlement of RSUs:  Subject to Sections 3, 6 and 7 of this Agreement, the Company shall deliver to the Participant (or to a Company-designated brokerage firm or plan administrator) as soon as administratively practicable following the applicable Vesting Date (but in no event later than 2 1⁄2 months after the applicable Vesting Date), in complete settlement of all RSUs vesting on such Vesting Date, a number of Common Shares equal to the number of RSUs vesting on such Vesting Date.

5.Rights as a Stockholder:  The Participant shall have no voting, dividend or other rights as a stockholder with respect to the Award until the RSUs have vested and Common Shares have been delivered pursuant to this Agreement.

6.Change in Control; Dissolution: 

(a)Notwithstanding any other provision of this Agreement to the contrary, upon the occurrence of a Change in Control with respect to any unvested RSUs granted pursuant to this Agreement that have not previously been forfeited:

(1)    If (i) a Participant’s rights to the unvested portion of the Award are not adversely affected in connection with the Change in Control, or, if adversely affected, a substitute award with an equivalent (or greater) economic value and no less favorable vesting conditions is granted to the Participant upon the occurrence of a Change in Control, and (ii) the Participant’s employment is terminated by the Company (or its successor) without Cause within two years following the Change in Control, then the unvested portion of the Award (or, as applicable, the substitute award) shall immediately vest and a number of Common Shares equal to the number of unvested RSUs shall be delivered to the Participant within thirty (30) days following the date of termination, subject to the provisions of Section 7.
(2)    If a Participant’s right to the unvested portion of the Award is adversely affected in connection with the Change in Control and a substitute award is not made pursuant to Section 6(a)(1) above, then upon the occurrence of a Change in Control, the unvested portion of the Award shall immediately vest and a number of Common Shares equal to the number of unvested RSUs shall be delivered to the Participant within thirty (30) days following the Change in Control, subject to the provisions of Section 7; and
(b)Notwithstanding any other provision of this Agreement to the contrary, in the event of a corporate dissolution of the Company that is taxed under Section 331 of the Internal Revenue Code of 1986, as amended, then in accordance with Treasury Regulation Section 1.409A-3(j)(4)(ix)(A), this Agreement shall terminate and any RSUs granted pursuant to this Agreement that have not previously been forfeited shall immediately become Common Shares and shall be delivered to the Participant within thirty (30) days following such dissolution.

7.Income and Other Taxes:  The Company shall not deliver Common Shares in respect of any vested RSUs unless and until the Participant has made arrangements satisfactory to the Committee to satisfy applicable withholding tax obligations for US federal, state, and local income taxes (or the foreign counterpart thereof) and applicable employment taxes.   Unless otherwise permitted by the Committee, withholding shall be effectuated by withholding RSUs in connection with the vesting and/or settlement of RSUs.  Withholding shall be effected using the required statutory rates authorized by the U.S. Internal Revenue Service (for U.S. Participants) and applicable foreign counterparts; however, if the requirements of ASC Topic 718 (or any successor applicable equity accounting standard applicable to this Award) are changed, then the Company, at its discretion, may effectuate the withholding at the higher of (1) the required statutory rates authorized by the U.S. Internal Revenue Service (for U.S. Participants) and applicable foreign counterparts, or (2) a rate or method chosen by the Company consistent with ASC Topic 718 (or any successor 

Page 4

applicable equity accounting standard applicable to this Award) and the U.S. Internal Revenue Service withholding regulations or other applicable tax requirements, not to exceed maximum statutory rates.  The Participant acknowledges that the Company shall have the right to deduct any taxes required to be withheld by law in connection with the delivery of Common Shares issued in respect of any vested RSUs from any amounts payable by it to the Participant (including, without limitation, future cash wages).  The Participant acknowledges and agrees that amounts withheld by the Company for taxes may be less than amounts actually owed for taxes by the Participant in respect of the Award. Any vested RSUs shall be reflected in the Company’s records as issued on the respective dates of issuance set forth in this Agreement, irrespective of whether delivery of such Common Shares is pending the Participant’s satisfaction of his or her withholding tax obligations.

8.Securities Laws:  The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by the Participant or other subsequent transfers by the Participant of any Common Shares issued as a result of the vesting or settlement of the RSUs, including without limitation (a) restrictions under an insider trading policy, and (b) restrictions as to the use of a specified brokerage firm for such resales or other transfers.  Upon the acquisition of any Common Shares pursuant to the vesting or settlement of the RSUs, the Participant will make or enter into such written representations, warranties and agreements as the Company may reasonably request in order to comply with applicable securities laws or with this Agreement and the 2018 Plan.  All accounts in which such Common Shares are held or any certificates for Common Shares shall be subject to such stop transfer orders and other restrictions as the Company may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange or quotation system upon which the Common Shares are then listed or quoted, and any applicable federal or state securities law, and the Company may cause a legend or legends to be put on any such certificates (or other appropriate restrictions and/or notations to be associated with any accounts in which such Common Shares are held) to make appropriate reference to such restrictions.

9.Non-Transferability of Award:  The RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company; provided, that the Participant may designate a beneficiary, on a form provided by the Company, to receive any portion of the Award payable hereunder following the Participant’s death.

10.Other Agreements:  Subject to Sections 10(a) and 10(b) of this Agreement, this Agreement and the 2018 Plan constitute the entire understanding between the Participant and the Company regarding the Award, and any prior and/or contemporaneous agreements, understandings, representations, discussions, commitments or negotiations concerning the Award, whether written or oral, are superseded.  No oral statements or other prior written material not specifically incorporated into this Agreement, other than the 2018 Plan, shall be of any force or effect.

(a)The Participant acknowledges that as a condition to the receipt of the Award, the Participant: 
(1)    shall have delivered to the Company an executed copy of this Agreement; 
(2)    shall be subject to the Company’s stock ownership guidelines, to the extent applicable to the Participant; 
(3)    shall be subject to policies and agreements adopted by the Company from time to time, and applicable laws and regulations, requiring the repayment by the Participant of incentive compensation under certain circumstances, including that certain Celanese Corporation Incentive Compensation Recoupment Policy adopted by the Committee on 

Page 5

October 16, 2019 (collectively, "Clawback Policies"), without any further act or deed or consent of the Participant; and
(4)    shall have delivered to the Company an executed copy of the current form of Long-Term Incentive Claw-Back Agreement.  For purposes hereof, “Long-Term Incentive Claw-Back Agreement” means an agreement between the Company and the Participant associated with the grant of long-term incentives of the Company, which contains terms, conditions, restrictions and provisions regarding one or more of (i) noncompetition by the Participant with the Company, and its customers and clients; (ii) non-solicitation and non-hiring by the Participant of the Company’s employees, former employees or consultants; (iii) maintenance of confidentiality of the Company’s and/or clients’ information, including intellectual property; (iv) nondisparagement of the Company; and (v) such other matters deemed necessary, desirable or appropriate by the Company for such an agreement in view of the rights and benefits conveyed in connection with an award.
(b)The Participant acknowledges that if the Participant violates any of the terms or provisions of the Clawback Policies or the Long-Term Incentive Claw-Back Agreement, whether before or after termination of employment, then the Company will, to the fullest extent permitted by applicable law, (i) terminate the Participant’s rights in any unvested RSUs under this Award, and (ii) claw back (i.e., recover) all Common Shares previously issued under this Award.

(c)If the Participant is a non-resident of the U.S., there may be an addendum containing special terms and conditions applicable to awards in the Participant’s country.  The issuance of the Award to any such Participant is contingent upon the Participant executing and returning any such addendum in the manner directed by the Company.

11.Not a Contract for Employment; No Acquired Rights; Agreement Changes:  Nothing in the 2018 Plan, this Agreement or any other instrument executed in connection with the Award shall confer upon the Participant any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate the Participant’s employment at any time for any reason.  The grant of RSUs hereunder, and any future grant of awards to the Participant under the 2018 Plan, is entirely voluntary and at the complete and sole discretion of the Company. Neither the grant of these RSUs nor any future grant of awards by the Company shall be deemed to create any obligation to grant any further awards, whether or not such a reservation is expressly stated at the time of such grants. The Company has the right, at any time and for any reason, to amend, suspend or terminate the 2018 Plan; provided, however, that no such amendment, suspension, or termination shall adversely affect the Participant’s rights hereunder.

12.Severability:  In the event that any provision of this Agreement is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of this Agreement shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision.

13.Further Assurances:  Each party shall cooperate and take such action as may be reasonably requested by either party hereto in order to carry out the provisions and purposes of this Agreement.

14.Binding Effect:  The Award and this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns.

15.Electronic Delivery:  By executing this Agreement, the Participant hereby consents to the delivery of any and all information (including, without limitation, information required to be delivered to the Participant pursuant to applicable securities laws), in whole or in part, regarding the Company and its 

Page 6

subsidiaries, the 2018 Plan, and the Award via electronic mail, the Company’s or a plan administrator’s web site, or other means of electronic delivery.

16.Personal Data:  By accepting the Award under this Agreement, the Participant hereby consents to the Company’s use, dissemination and disclosure of any information pertaining to the Participant that the Company determines to be necessary or desirable for the implementation, administration and management of the 2018 Plan.

16.Governing Law:  The Award and this Agreement shall be interpreted and construed in accordance with the laws of the state of Delaware and applicable federal law.

17.Restricted Stock Units Subject to Plan:  By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the 2018 Plan and the 2018 Plan’s prospectus.  The RSUs and the Common Shares issued upon vesting of such RSUs are subject to the 2018 Plan, which is hereby incorporated by reference.  In the event of any conflict between any term or provision of this Agreement and a term or provision of the 2018 Plan, the applicable terms and provisions of the 2018 Plan shall govern and prevail. 

18.Validity of Agreement:  This Agreement shall be valid, binding and effective upon the Company on the Grant Date.  However, the Participant must accept this Agreement electronically pursuant to the online acceptance procedure established by the Company within ninety (90) days; otherwise the Company may, in its sole discretion, rescind the Award in its entirety.

19.Headings:  The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect.

20.Compliance with Section 409A of the Internal Revenue Code:  Notwithstanding any provision in this Agreement to the contrary, this Agreement will be interpreted and applied so that the Agreement does not fail to meet, and is operated in accordance with, the requirements of Section 409A of the Code.  The Company reserves the right to change the terms of this Agreement and the 2018 Plan without the Participant’s consent to the extent necessary or desirable to comply with the requirements of Code Section 409A.  Further, in accordance with the restrictions provided by Treasury Regulation Section 1.409A-3(j)(2), any subsequent amendments to this Agreement or any other agreement, or the entering into or termination of any other agreement, affecting the RSUs provided by this Agreement shall not modify the time or form of issuance of the RSUs set forth in this Agreement. In addition, if the Participant is a “specified employee” within the meaning of Code Section 409A, as determined by the Company, any payment made in connection with the Participant’s separation from service shall not be made earlier than six (6) months and one day after the date of such separation from service to the extent required by Code Section 409A.

22.Definitions:  The following terms shall have the following meanings for purposes of this Agreement, notwithstanding any contrary definition in the 2018 Plan:

(a)“Cause” means, as determined by the Company in its sole discretion, (i) the Participant’s willful failure to perform the Participant’s duties to the Company (other than as a result of total or partial incapacity due to physical or mental illness) for a period of 30 days following written notice by the Company to the Participant of such failure, (ii) the Participant’s conviction of, or a plea of nolo contendere to, (x) a felony under the laws of the United States or any state thereof or any similar criminal act in a jurisdiction outside the United States or (y) a crime involving moral turpitude, (iii) the Participant’s willful malfeasance or willful misconduct which is demonstrably injurious to the Company or its affiliates, (iv) any act of fraud by the Participant, (v) any violation 

Page 7

of the Company’s business conduct policy, (vi) any violation of the Company’s policies concerning harassment or discrimination by the Participant, (vii) the Participant’s conduct that causes harm to the business reputation of the Company or its affiliates, or (viii) the Participant’s breach of any confidentiality, intellectual property, noncompetition or non-solicitation provisions applicable to the Participant under the Long-Term Incentive Claw-Back Agreement or any other agreement between the Participant and the Company. “Cause”" shall be determined by the Company in its sole discretion, and such determination shall be final, binding, and conclusive on the Participant.

(b)“Change in Control” means:

(i)    Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this subparagraph, the following acquisitions shall not constitute a Change of Control:  (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, or (iv) any acquisition pursuant to a transaction that complies with clauses (A), (B) or (C) in paragraph (iii) of this definition; or
(ii)    Individuals who, as of the effective date of this Agreement, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the effective date of this Agreement whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or
(iii)    Consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common 

Page 8

Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or
(iv)    Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.
Notwithstanding the foregoing, if it is determined that an Award hereunder is subject to the requirements of Section 409A and the Change in Control is a “payment event” under Section 409A for such Award, the Company will not be deemed to have undergone a Change in Control unless the Company is deemed to have undergone a “change in control event” pursuant to the definition of such term in Section 409A.
(c)“Disability” has the same meaning as “Disability” in the Celanese Corporation 2008 Deferred Compensation Plan or such other meaning as determined by the Committee in its sole discretion, provided that in all events a “Disability” under this Agreement shall constitute a “disability” within the meaning of Treasury Regulation Section 1.409A-3(i)(4).

(d)“Qualifying Disposition” means a sale or other disposition by the Company or one or more subsidiaries of all or part of a business, business unit, segment or subsidiary in a stock, asset, merger or other similar transaction or combination thereof, and determined by the Committee to be a Qualifying Disposition.
(e)    “Retirement” of the Participant shall mean a voluntary separation from service on or after the date when the Participant is both 55 years of age and has ten years of service with the Company, as determined by the Company in its discretion based on payroll records.  Retirement shall not include voluntary separation from service in which the Company could have terminated the Participant’s employment for Cause.

[signature on following page]

Page 9

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer and the Participant has also executed this Agreement in duplicate.
	
					
	 
	CELANESE CORPORATION

	 
	 
	 

	 
	 
	 

	 
	 
	/s/ Lori J. Ryerkerk
	 

	 
	By:
	Lori J. Ryerkerk

	 
	 
	Chief Executive Officer and President

Page 10Exhibit

Exhibit 10.5

EXECUTIVE SEVERANCE BENEFITS PLAN
Originally effective July 2010
Amended September 11, 2012 (effective January 1, 2013)
 Amended February 6, 2013 (effective February 6, 2013)
Amended October 18, 2017 (effective October 18, 2017)
Amended February 5, 2020 (effective February 5, 2020)

Table of Contents
	
			
	 
	 
	Page

	 
	Executive Severance Benefits Plan Overview
	1

	 
	Who is Eligible
	1

	 
	Covered Severance Events
	1

	 
	How the Plan Works
	2

	 
	Severance Payment
	2

	 
	Continuation of Health Benefits
	3

	 
	Outplacement Services
	3

	 
	Conditions
	3

	 
	Employees Rehired After Receiving Benefits
	3

	 
	When Coverage Ends
	3

	 
	Claims and Appeals Process
	4

	 
	Celanese Americas Benefits Committee
	5

	 
	Ability to Amend or Terminate the Plan
	5

i

Executive Severance Benefits Plan Overview
The Executive Severance Benefits Plan provides a severance payment, continuation of health benefits, and other severance benefits to certain eligible executive employees of Celanese Americas LLC and its participating affiliated companies (“Celanese”).  Ineligible employees shall not receive severance benefits.
Celanese can, in certain circumstances and notwithstanding the provisions of this Plan, in its sole discretion, provide different or enhanced severance benefits to certain employees specified on an individual or group basis.  However, the granting of such benefits shall not mean that any other individual employee or group of employees is entitled to such benefits. 
Certain terms used in this Plan are defined in the Glossary in Appendix A.
Who is Eligible
The executive officers of Celanese (including the Chief Executive Officer ("CEO")), as well as those employees that have been designated by the CEO are eligible to participate in this Plan ("Eligible Employees").
You are not eligible to receive severance benefits under this Plan unless you are classified as an “employee” on the payroll records of Celanese, regardless of whether it is later determined that you are, or were, an “employee” of Celanese.
Enrollment in the Plan is automatic.
You are not eligible to participate in this Plan if you are eligible to receive severance benefits under any other plan or arrangement sponsored by Celanese except to the extent specifically set forth in such other plan or arrangement.
Covered Severance Events

 
If you are an Eligible Employee, you are entitled to "Severance Benefits" (defined below) if you have a "Covered Severance Event".  You have a Covered Severance Event if you are involuntarily terminated from active employment without Cause or if you resign for Good Reason.  
For purposes of the Plan, your termination is for Cause if you are terminated because of:
(i) your willful failure to perform your duties to Celanese (other than as a result of total or partial incapacity due to physical or mental illness) for a period of 30 days following written notice by Celanese to you of such failure; 
(ii) your conviction of, or a plea of nolo contendere to (x) a felony under the laws of the United States or any state thereof or any similar criminal act in a jurisdiction outside the United States or (y) a crime involving moral turpitude;
(iii) your willful malfeasance or willful misconduct which is demonstrably injurious to Celanese;
(iv) your material violation of Celanese’s code of conduct;
(v) your material violation of Celanese’s policies concerning harassment or discrimination;
(vi) your conduct that causes material harm to the business reputation of Celanese or its affiliates; or 
(vii) your breach of the provisions of any confidentiality, noncompetition or nonsolicitation obligation to which you are subject.
For purposes of the Plan, a resignation is for Good Reason upon the occurrence of one or more of the following:
(i) a reduction in base salary to a level that is less than 90% of the Eligible Employee's base salary immediately prior to the reduction; or

    1

(ii) a relocation of the Eligible Employee's principal place of business to a location greater than 50 miles from his or her current principal place of business; 
Provided, however, that the Eligible Employee must notify the Company of the event giving rise to Good Reason within 30 days of the occurrence of the event, and the Company shall have 30 days to correct such incident. If, upon the expiration of the 30-day correction period, the Company fails to correct the incident giving rise to Good Reason, then the Eligible Employee must resign from the Company within 30 days thereafter.
Eligible Employees who are involuntarily terminated for any other reason (e.g.  death, disability, retirement, termination for Cause), or who voluntarily terminate other than for Good Reason or retire, are not eligible to receive Severance Benefits under this Plan.
How the Plan Works
Eligible Employees who have had a Covered Severance Event are entitled to receive (i) a Severance Payment, (ii) continuation of health care benefits, (iii) a Supplemental Payment, and (iv) outplacement services (collectively, the "Severance Benefits"), all as further described below.
This Plan does not alter the terms of any grant of equity compensation to you.  Your rights with respect to any equity compensation grant are governed by the agreement(s) that establish the terms and conditions of your grant.
Severance Payment
Eligible Employees who have a Covered Severance Event will receive a "Severance Payment" upon the Eligible Employee’s termination of employment with Celanese and its affiliates, subject to the Eligible Employee's satisfaction of the "Conditions" set forth below.    (For this purpose, the termination of employment must constitute a “Separation from Service” as defined in Section 409A of 

 
the Internal Revenue Code.)
The Severance Payment is an amount equal to the Eligible Employee’s base annual salary in effect on the date of termination plus an amount equal to the executive’s target bonus for the year with a 1.0 personal modifier; provided, however, that for any "named executive officer" other than the CEO (determined under applicable SEC regulations), the Severance Payment shall be 150% of the base annual salary and target bonus, and for the CEO, the Severance Payment shall be 200% of the base annual salary and target bonus. The Severance Payment will be made as soon as practicable following the Eligible Employee’s  Separation from Service, but in no event later than December 31 of the year in which such Separation from Service occurs or, if later, the 15th day of the third month following such Separation from Service.  
In addition, the Eligible Employee will be entitled to a pro rata bonus payment for the year of termination (a “Supplemental Payment”).  The Supplemental Payment is an amount equal to the Eligible Employee’s target bonus payment for the year of termination multiplied by a fraction, the numerator of which is the number of days in the year of the Eligible Employee’s termination, up to and including the date of the Participant’s termination, and the denominator of which is 365 (or, 366, as applicable). The Supplemental Payment (1) shall be based on actual performance of Celanese for the year of termination (with a minimum of a 1.0 personal modifier) rather than target performance, and (2) instead of being paid at the same time as the Severance Payment, shall be paid at the same time annual bonuses are paid to other Eligible Employees who do not terminate employment during the year but in no event later than the 15th day of the third month of the year following such Separation from Service.  
For purposes of Section 409A of the Internal Revenue Code, the Severance Payment and the Supplemental Payment are intended to be a separate “payment” within the meaning of Treasury Regulation Section 1.409A-2(b)(2) and to be exempt from Section 409A of the Internal Revenue Code pursuant to Treasury Regulation Section 1.409A-1(b)(4).

    2

Any amounts that the Eligible Employee owes to Celanese will be deducted from the Eligible Employee’s Severance Payment.  As an additional condition to receiving the Severance Payment, the Plan Administrator may require the Eligible Employee to execute a written agreement that authorizes Celanese to deduct any amounts the Eligible Employee owes to Celanese prior to the payment of the Severance Payment under the Plan.
Continuation of Health Benefits
Eligible Employees who have a Covered Severance Event will be entitled to elect, under COBRA, to continue to participate in the medical and dental benefits under the Celanese Health and Welfare Benefits Program for a period of 18 months following the month of termination.
If the Eligible Employee elects to continue coverage of medical and dental benefits pursuant to COBRA under the Health and Welfare Benefits Program, Celanese will provide the Eligible Employee a monthly reimbursement payment for the COBRA premiums charged and paid for the first 12 months of COBRA coverage (or 18 months of coverage for the CEO) for the Eligible Employee and his or her dependents ("Continuation of Health Benefits"); provided that such monthly reimbursement will be paid following receipt of proof of payment for the COBRA premium in a form satisfactory to the Plan Administrator (defined below) and the Continuation of Health Benefits shall not be provided to the extent Celanese determines that it would result in any fine, penalty or violation of law for being a discriminatory benefit or otherwise.
For the next 6 months (i.e., for the 13th through 18th month following termination), the Eligible Employee must elect to continue coverage under COBRA and must pay the COBRA premium in order to continue to participate in the medical and dental benefits under the Health and Welfare Benefits Program.
Health coverage reimbursement payments will terminate earlier than 12 months (or 18 

 
months for the CEO) when the Eligible Employee becomes eligible to participate in any other employer-sponsored health plan.  The Eligible Employee must notify Celanese when he or she becomes eligible for any other employer-provided health care benefits.
Outplacement Services
Eligible Employees who have a Covered Severance Event will be entitled to receive outplacement services for a period of 12 months following Separation from Service with an outplacement firm selected by Celanese and subject to any limits as the company may determine.
Conditions
As a condition for receiving Severance Benefits under this Plan, you must (1) return all property of Celanese;(2) hold confidential any and all information concerning Celanese; (3) cooperate fully with Celanese; (4) execute and deliver such forms as required by Celanese; and (5) execute and deliver to Celanese a general claims release, restrictive covenants and cooperation agreement in the form provided to you by Celanese.  If you fail to fully comply with any of the obligations described in this paragraph, your benefits may be discontinued.
Employees Rehired After Receiving Benefits 
If you are a former employee and you are applying for rehire consideration, you will be considered with all other external candidates and have no guaranteed entitlement to a prior job classification, role, or rate of pay.  The position will reflect Celanese’s current evaluation of the position in the current organization structure.
If you are a former employee who is rehired after receiving benefits, you will not receive recognition of prior service in the determination of subsequent benefits, except to the extent provided by law.  Calculation of subsequent benefits will begin as of the date you are rehired as a Celanese employee.  Any prior service previously credited will not be 

    3

included for the purpose of the calculation of benefits entitlement after you are rehired.
All issues regarding the treatment of any service time since separation from employment are to be resolved by the Plan Administrator (as defined below) before an individual with prior service is rehired.
When Coverage Ends
Your participation in this Plan ends once you terminate from Celanese or when you are no longer an Eligible Employee.
Claims and Appeals Process
If you believe that you are entitled to benefits under the Plan, you must file a claim for benefits.  A claim for benefits must be made no later than one year following the date of your termination of employment with Celanese.  If you do not file a claim for benefits within one year of the date of your termination of employment with Celanese, you will not be entitled to any benefits under the Plan.
A claim for benefits is submitted to the Plan Administrator.  The Plan Administrator has the sole discretionary authority to approve or deny each claim.  In the event the Plan Administrator denies, in whole or in part, an initial claim for benefits by a participant or his beneficiary, the Plan Administrator will furnish notice of the adverse determination to you.
The notice will be forwarded to you within 90 days of receipt of the claim by the Plan Administrator.  However, in special circumstances, the Plan Administrator may extend the response period for up to an additional 90 days, and must notify you in writing of the extension, and will specify the reasons for the extension.  If for any reason you do not receive a response from the Plan Administrator within the time prescribed, the claim will be deemed denied.
Within 60 days of receipt of a notice of an adverse determination, you or your duly authorized representative may petition the 

 
Plan Administrator in writing for a full and fair review of the adverse determination (see address below for information on how to contact the Plan Administrator).  You or your duly authorized representative will have the opportunity to submit comments in writing, documents, records, and other relevant information to the Plan Administrator.  You will also have the right to be furnished, free of charge and upon request, reasonable access to, and copies of, all documents, records and other relevant information.  Relevant information includes any information that was submitted, considered or generated in the course of the decision regardless of whether such information was relied upon in making the benefit determination.  You may also request any information demonstrating that, where appropriate, the Plan is acting consistently with respect to other participants.
The Plan Administrator will review the denial and will take into account all documents, records, and other information submitted by you regardless of whether such information was submitted or considered in the initial determination.  The Plan Administrator will communicate its decision and provide an explanation to you in writing within 60 days of receipt of the petition.  However, in special circumstances, the Plan Administrator may extend the response period for up to an additional 60 days, in which event it will notify you in writing prior to the commencement of the extension and specify the reasons for the extension.  If for any reason, the written decision on review is not furnished within the time prescribed, the claim will be deemed denied on review.
The written notice of decision by the Plan Administrator will set forth:
		
	}
	The specific reasons for the adverse determination;

		
	}
	A specific reference to the pertinent Plan provisions on which the adverse determination is based;

		
	}
	A description of any additional information necessary for you to perfect the claim and an explanation of why such information is necessary.  In the case of a notification of an appealed claim, the notice will also 

    4

include a statement that you are entitled to receive reasonable access to and copies of all documents, records, and other relevant information with respect to the claim; and
		
	}
	A description of the Plan’s review procedures (or, in the case of a notification of an appealed claim, a description of any voluntary appeal procedures) and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under section 502 of ERISA following an adverse decision by the Plan Administrator.

Celanese Americas Benefits Committee 
The "Plan Administrator" is the Celanese Americas Benefits Committee.  The Benefits Committee has general responsibility and sole discretionary authority for administering the Plan and reviewing claims for benefits and appeals or denied claims.  Any determination by the Benefits Committee is final and conclusive and will not be overturned unless it is deemed to be arbitrary and capricious.  The Celanese Americas Benefits Committee can be contacted at:
Celanese Americas Benefits Committee
c/o Benefits Department
222 W. Las Colinas Blvd., Suite 900N
Irving, TX 75039
972-443-4000

Ability to Amend or Terminate the Plan 
Celanese retains the right to amend or terminate the Plan at any time, provided that any amendment or termination that prospectively reduces benefits shall not be effective earlier than 90 days after adoption.

    5

APPENDIX A
Glossary

Cause - See page 1 under “Covered Severance Events”

Celanese - Celanese Americas LLC and its participating affiliated companies, and any successor thereto

Continuation of Health Benefits - See page 3 under “Continuation of Health Benefits”

Covered Severance Event - See page 1 under “Covered Severance Events”

Good Reason - See pages 1 and 2 under "Covered Severance Events"

Eligible Employee - An employee of Celanese, designated to participate in the Plan by the CEO and in accordance with the terms of the Plan

ERISA - Employee Retirement Income Security Act of 1974, as amended

Health and Welfare Benefits Program - Celanese's health and welfare benefits coverage offered to active employees and COBRA recipients

Plan - This Celanese Americas Executive Severance Benefits Plan

Plan Administrator - Celanese Americas Benefits Committee

Plan Sponsor – Celanese Americas LLC, or any successor to Celanese Americas LLC thereto

Severance Payment – See Page 2 under “Severance Payment”

Severance Benefits - The Severance Payment and other benefits provided under this Plan, including a Supplemental Payment, Continuation of Health Benefits, and outplacement benefits

Supplemental Payment - a pro rata bonus payment for the year of termination, as described on Page 2 under "Severance Payment"

    6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}]]