Document:

Exhibit 10.51 2005

    
      
        

      

    

    Exhibit
      10.51

     

    Execution
      Copy

     

    Master
      Separation Agreement (this
      “Agreement”),
      dated as of November 28, 2005 (the “Effective
      Date”),
      among Kerr-McGee Corporation, a Delaware corporation (“Parent”),
      Kerr-McGee Worldwide Corporation, a Delaware corporation (“Worldwide”),
      and Tronox Incorporated, a Delaware corporation (“Tronox”). 

    
      

    

     

    INTRODUCTION

     

    Parent
      is engaged in two distinct businesses, an oil and gas exploration and production
      business and a chemical business. Each business is owned by a separate chain
      of
      subsidiaries owned indirectly by Parent. Parent’s United States domestic
      chemical business is held by a chain of subsidiaries, the parent entity of
      which
      is Tronox Worldwide LLC (formerly Kerr-McGee Chemical Worldwide LLC and herein
      referred to as “TWLLC”).
      The non-domestic chemical business, the parents of which are Kerr-McGee B.V.,
      KM
      Denmark International ApS, Kerr-McGee Finance (Curacao) and KM (Luxembourg)
      Holdings S.a.r.l., have been contributed into TWLLC prior to the Effective
      Date.
      TWLLC is a wholly-owned subsidiary of Worldwide. The parent entity of the oil
      and gas exploration and production business is a separate corporation whose
      parent entity is also Worldwide. The chemical business has no current ownership
      interest in the companies that comprise the oil and gas exploration and
      development business and the oil and gas exploration and development business
      has no current ownership interest in the companies that comprise the chemical
      business.

     

    TWLLC,
      through its predecessor, has been in business since 1929, and has operated
      a
      number of chemical and other businesses including the current chemical business.
      TWLLC owns the chemical business and also certain contingent assets and
      contingent liabilities.

     

    The
      Board of Directors of Parent (the “Board”)
      has determined that it is in the best interests of Parent and its stockholders
      to separate the chemical business and the oil and gas exploration and production
      business from their common ownership by Parent, and has authorized the
      separation through an initial public offering, a spin-off or a split-off of
      the
      chemical business, or a combination of some or all of these transactions
      (collectively, the “Separation”).
      To effect the Separation, Parent has formed Tronox as a new holding company
      to
      hold the limited liability company membership interests in TWLLC (the
“Membership
      Interests”)
      and to issue a limited number of its shares for its own account in the Initial
      Public Offering (as defined below).

     

    In
      connection with the Separation, Parent has agreed to provide certain financial
      support to Tronox in the form of reimbursement of certain environmental costs
      (such reimbursement, together with the contribution of the Membership Interests,
      the cancellation of inter-company indebtedness, and the other rights and
      benefits provided to Tronox under the Ancillary Agreements, are herein referred
      to as the “Contribution”).
      Concurrently with the Initial Public Offering, Tronox expects to raise up to
      $550,000,000 principal amount of debt through a bank financing (excluding the
      Revolving Credit Facility) and issuance of bonds (the “Concurrent
      Financings”).
      Parent currently intends, after the Initial Public Offering, to distribute
      (in
      one or more transactions or offerings) to holders of shares of Parent Common
      Stock, the shares of Tronox Class B Common Stock then owned directly or
      indirectly by Parent (the “Distribution”)
      or offer to exchange such shares of Tronox Class B Common Stock for shares
      of
      Parent Common Stock (the “Exchange”)
      or a combination thereof. The Contribution is intended to qualify as a tax-free
      reorganization under Section 368(a)(1)(D) of the Code (as defined below) and
      the
      Distribution or the Exchange (or combination thereof) are intended to qualify
      as
      a pro rata or non-pro rata tax-free distribution under Sections 355 and
      368(a)(1)(D) of the Code (as defined below).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    All
      or a substantial portion of the net proceeds of the Initial Public Offering
      and
      Concurrent Financings will be distributed by Tronox to Worldwide and by
      Worldwide to Parent in a distribution described in Section 361(b)(1)(A) of
      the
      Code (as defined below). Parent intends to use such proceeds to satisfy
      third-party obligations of Parent. 

     

    Parent,
      Worldwide and Tronox wish to set forth the principal corporate transactions
      required to effect the Contribution, the Initial Public Offering and the
      Distribution or Exchange and certain other matters relating to the
      Separation.

     

    Accordingly,
      the parties hereby agree as follows:

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.1.  Definitions. For
      purposes of this Agreement, the following terms shall have the meanings set
      forth or as referenced below:

     

    “Acquired
      Business”
      has the meaning set forth in Section 11.2(b)(ii). 

     

    “Acquisition
      Transaction”
      has the meaning set forth in Section 11.2(b)(iii).

     

    “Action”
      means any demand, action, suit, countersuit, arbitration, inquiry, proceeding
      or
      investigation by or before any federal, state, local, foreign or international
      Governmental Authority or any arbitration or mediation tribunal.

     

    “Affiliate”
      of any Person means any Person that directly, or indirectly through one or
      more
      intermediaries, controls, is controlled by, or is under common control with
      such
      Person. For the purposes of this definition only, “control” refers to the
      possession, directly or indirectly, of the power to direct the management or
      policies of a Person, whether through the ownership of voting securities or
      other interests, by contract or otherwise. 

     

    “Agent”
      means the distribution or exchange agent to be appointed by Parent to distribute
      to Parent’s stockholders all of the shares of Tronox Class B Common Stock held
      by Parent or a member of Parent’s Group pursuant to the Exchange or
      Distribution.

     

    “Agreement”
      has the meaning given such term in the preamble to this Agreement.

     

    “Ancillary
      Agreements”
      means, collectively, the Tax Sharing Agreement, the Employee Benefits Agreement,
      the Transition Services Agreement, the Transitional License Agreement and the
      Registration Rights Agreement.

     

    “Annual
      Financial Statements”
      has the meaning set forth in Section 6.1(e).

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    “Assets”
      means assets, properties and rights (including goodwill and rights arising
      under
      Contracts, including, without limitation, insurance policies), wherever located
      (including in the possession of vendors, other Persons or elsewhere), whether
      real, personal or mixed, tangible or intangible or contingent, in each case
      whether or not recorded or reflected or required to be recorded or reflected
      on
      the books and records or financial statements of any Person.

     

    “Assignment,
      Assumption and Indemnity Agreement”
      means the Assignment, Assumption and Indemnity Agreement, dated as of December
      31, 2002, between TWLLC and Kerr-McGee Oil & Gas Corporation, a copy of
      which is attached as Exhibit A to this Agreement. 

     

    “Board”has
      the meaning set forth in the Introduction.

     

    “Business
      Day”
      means a day other than a Saturday, a Sunday or a day on which banking
      institutions located in the City of New York are closed.

     

    “Business
      Guarantees”has
      the meaning set forth in Section 2.7(a).

     

    “Claim
      Notice”
      has the meaning set forth in Section 5.3(a). 

     

    “Claimed
      Amount”
      has the meaning set forth in Section 5.3(a).

     

    “Closing
      Date”
      means the date on which any shares of Tronox Class A Common Stock are sold
      to
      the Underwriters pursuant to the Firm Offering in accordance with the terms
      of
      the Underwriting Agreement.

     

    “Code”
      means the Internal Revenue Code of 1986, as amended.

     

    “Commission”
      means the U.S. Securities and Exchange Commission.

     

    “Competitive
      Business”
      has the meaning set forth in the Section 11.2(a). 

     

    “Concurrent
      Financings”
      has the meaning set forth in the Introduction.

     

    “Consents”
      means any consents, waivers or approvals from, or notification requirements
      to,
      any third parties. 

     

    “Contracts”
      means any contract, agreement, lease, license, instrument or other commitment
      that is binding on any Person or any part of its property under applicable
      law.

     

    “Contribution”
      has the meaning set forth in the Introduction.

     

    “Controlling
      Party”
      has the meaning set forth in Section 5.3(e).

     

    “Distribution”
      has the meaning set forth in the Introduction.

     

    “Effective
      Date”
      has the meaning given such term in the preamble to this Agreement.

     

    “Employee
      Benefits Agreement”
      means the Employee Benefits Agreement, dated as of the date hereof, between
      Parent and Tronox.

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

    “Environmental
      Law”
      means all foreign, federal, state, provincial and local statutes, codes,
      regulations, rules, orders, ordinances or other laws relating to the protection,
      preservation or conservation of the environmental and natural resources, as
      in
      effect from time to time.

     

    “Environmental
      Remediation Costs”
      means the actual costs, including, with respect to a site associated with any
      Former Operation, the reasonable and documented internal allocated costs of
      Tronox’s Safety and Environmental Affairs unit, provided that such internal
      allocated costs are calculated in a manner consistent with past practice with
      respect to such Former Operation and are of the type that has historically
      been
      charged against the reserve established for such Former Operation, incurred
      and
      paid after the Closing Date by any member of the Tronox Group in connection
      with
      (i) the investigation of the physical circumstances surrounding a site
      associated with a Former Operation or (ii) the clean-up, governmental response,
      removal or remediation required by any Environmental Laws at a site associated
      with a Former Operation, in either case arising out of, or related to (x) the
      presence, Release or threatened Release of any Hazardous Substance occurring
      prior to the Closing Date, or (y) any circumstance occurring prior to the
      Closing Date forming the basis of any violation or alleged violation of, or
      any
      liability under, any Environmental Law.

     

    “Environmental
      Studies”has
      the meaning set forth in Section 2.5(f).

     

    “Exchange”
      has the meaning set forth in the Introduction.

     

    “Exchange
      Act”
      means the Securities Exchange Act of 1934, as amended, together with the rules
      and regulations promulgated thereunder.

     

    “Existing
      Stock”
      means the 10,000 shares of stock of Tronox held, on the date hereof, by
      Worldwide.

     

    “Financial
      Statements”
      means, collectively, the Annual Financial Statements and the Quarterly Financial
      Statements.

     

    “Firm
      Offering”
      has the meaning set forth in Section 3.1(b).

     

    “Former
      Operation”
      means any business, commercial activity or operation previously conducted by
      or
      on behalf of the Tronox Group or their predecessors, but discontinued prior
      to
      the Effective Date and no longer so conducted, at a site currently or formerly
      owned or operated by, or where any Release may have occurred as a result of
      any
      act or omission of, any member of the Tronox Group or any of their
      predecessors.

     

    “GAAP”
      means U.S. generally accepted accounting principles, consistently
      applied.

     

    “Governmental
      Approvals”
      means any notices, reports or other filings to be made, or any consents,
      registrations, approvals, permits or authorizations to be obtained from, any
      Governmental Authority.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    “Governmental
      Authority”
      means any federal, state, local, foreign or international court, governmental,
      department, commission, board, bureau, agency, official or other regulatory,
      administrative or governmental authority.

     

    “Group”
      means either the Tronox Group or the Parent Group, as the context
      requires.

     

    “Hazardous
      Substance”
      means any and all hazardous and toxic substances, wastes or materials, any
      pollutants, contaminants, or dangerous materials or any other similar substances
      or materials that are included under or regulated by any Environmental
      Law.

     

    “Indebtedness”
      means the aggregate principal amount of total liabilities (whether long-term
      or
      short-term) for borrowed money (including capitalized leases) of any Group
      collectively, as determined for purposes of its financial statements prepared
      in
      accordance with GAAP, but excluding, with respect to the Tronox Group, the
      Concurrent Financings and the Revolving Credit Facility.

     

    “Indemnified
      Party”
      has the meaning set forth in Section 5.3(a).

     

    “Indemnitees”
      means either the Tronox Indemnitees or the Parent Indemnitees, as the context
      requires.

     

    “Information”
      means information, whether or not patentable or copyrightable, in written,
      oral,
      electronic or other tangible or intangible forms, stored in any medium,
      including studies, reports, records, books, contracts, insurance policies,
      instruments, surveys, discoveries, ideas, concepts, know-how, techniques,
      designs, specifications, drawings, blueprints, diagrams, models, prototypes,
      samples, flow charts, data, computer data, disks, diskettes, tapes, computer
      programs or other software, marketing plans, customer names, communications
      by
      or to attorneys (including attorney-client privileged communications), memos
      and
      other materials prepared by attorneys or under their direction (including
      attorney work product), and other technical, financial, employee or business
      information or data.

     

    “Initial
      Public Offering”
      has the meaning set forth in Section 3.1(b).

     

    “IPO
      Registration Statement”
      means the registration statement on Form S-1 (Commission File No. 333-125574),
      as filed by Tronox with the Commission on June 6, 2005, together with all
      amendments and supplements thereto.

     

    “KMIIL”
      has the meaning set forth in Section 2.6(c).

     

    “Liabilities”
      means any and all obligations, liabilities and commitments of any nature,
      whether known or unknown, express or implied, absolute or contingent, due or
      to
      become due.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

    “Lowest
      Cost Response”
      means a compliance activity or an investigation, cleanup, remediation, removal
      action or response activity that (i) is the minimum level required by, and
      complies with, applicable Environmental Laws (including, without limitation,
      applicable voluntary clean-up and comparable programs of Governmental
      Authorities where compliance activity is otherwise required); (ii) is acceptable
      to Governmental Authorities to the extent approval is required; (iii) is
      consistent with and would not violate any currently existing agreement binding
      on Tronox or any member of the Tronox Group with any Governmental Entity or
      other third party obligating Tronox or any member of the Tronox Group to
      undertake or pay for remediation; (iv) is consistent with and does not
      unreasonably interfere with the continued use of any property in a manner
      consistent with the use of such property as of the Closing Date; and (v) is
      intended to achieve the lowest financial cost as compared with other potential
      response activities meeting the qualifications set forth herein.

     

    “Membership
      Interests”
      has the meaning set forth in the Introduction.

     

    “Net
      Reimbursable Cost”
      means any Environmental Remediation Cost net of any Third Party
      Recovery.

     

    “Non-controlling
      Party”
      has the meaning set forth in Section 5.3(e).

     

    “NYSE”
      means the New York Stock Exchange, Inc.

     

    “Offering
      Expenses”
      has the meaning given to such term in Section 3.5(a).

     

    “Parent”
      has the meaning given such term in the preamble to this Agreement.

     

    “Parent
      Annual Statements”
      has the meaning set forth in Section 7.1(b).

     

    “Parent
      Common Stock”
      means the common stock, $1.00 par value per share, of Parent.

     

    “Parent
      Group”
      means Parent and each Person (other than any member of the Tronox Group) that
      is
      an Affiliate of Parent immediately after the Closing Date.

     

    “Parent
      Guarantees”
      has the meaning set forth in Section 2.7.

     

    “Parent
      Indemnitees”
      has the meaning set forth in Section 5.1.

     

    “Parent
      Insurance Policies”
      has the meaning set forth in Section 2.6(c).

     

    “Parent
      Obtained Contract”
      means any Contract to which any member of the Parent Group is a party relating
      to the businesses and operations currently conducted by members of the Tronox
      Group.

     

    “Parent
      Public Filings”
      has the meaning set forth in Section 6.6(a).

     

    “Parent’s
      Auditors”
      has the meaning set forth in Section 7.1(b).

     

    “Person”
      means an individual, sole proprietorship, partnership, limited partnership,
      limited liability partnership, corporation, limited liability company, business
      trust, joint stock company, trust, unincorporated association, joint venture,
      or
      other similar entity or organization and any Governmental
      Authority.

     

    “Prospectus”
      means each preliminary, final or supplemental prospectus forming a part of
      the
      IPO Registration Statement.

     

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

    “Quarterly
      Financial Statements”
      has the meaning set forth in Section 6.1(d).

     

    “Quarterly
      Meeting”
      has the meaning set forth in Section 2.5(e).

     

    
    

    “Registration
      Rights Agreement”
      means the Registration Rights Agreement, dated as of the date hereof, between
      Tronox and Parent.

     

    “Reimbursement
      Request”
      has the meaning set forth in Section 2.5(b).

     

    “Release”
      means any spill, emission, leaking, pumping, injection, deposit, disposal,
      discharge, dispersal, leaching, emanation or migration of any Hazardous
      Substance in, into, onto or through the environment (including ambient air,
      surface water, ground water, soils, land surface, subsurface strata, workplace
      or structure).

     

            
 
“Representative”
      means, with respect to any Person, any of such Person’s directors, officers,
      employees, agents, consultants, advisors, accountants or attorneys.

     

    “Reserve
      Amount”
      has the meaning set forth in Section 2.5(a).

     

    “Revolving
      Credit Facility”
      means the $250 million revolving credit facility to be entered into on the
      Closing Date by Tronox, TWLLC, Lehman Commercial Paper Inc., Credit Suisse
      First
      Boston and the lenders party thereto.

     

    “Section
      355 Transaction”
      has the meaning set forth in Section 3.3(a)(iv).

     

    “Securities
      Act”
      means the Securities Act of 1933, as amended, together with the rules and
      regulations promulgated thereunder.

     

    “Separation”has
      the meaning set forth in the Introduction.

     

    “Separation
      Date”means
      the date on which any transactions that constitute the Separation (including
      the
      Section 355 Transaction ) are completed.

     

              
      “Subsidiary”
      of any Person means any corporation or other organization whether incorporated
      or unincorporated of which at least a majority of the securities or interests
      having by the terms thereof ordinary voting power to elect at least a majority
      of the board of directors or others performing similar functions with respect
      to
      such corporation or other organization is directly or indirectly owned or
      controlled by such Person; provided,
      however
      that
      no Person that is not directly or indirectly wholly owned by any other Person
      shall be a Subsidiary of such other Person unless such other Person controls,
      or
      has the right, power or ability to control, that Person. 

     

    “Substitute
      Guarantees”has
      the meaning set forth in Section 2.7(a).

     

    “Tax”
      has the meaning set forth in the Tax Sharing Agreement.

     

    “Tax
      Benefit”
      has the meaning set forth in Section 5.4(d).

     

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

    “Tax
      Control”
      means the definition of “control” set forth in Section 368(c) of the
      Code.

     

    “Tax
      Sharing Agreement”
      means the Tax Sharing Agreement, dated as of the date hereof, between Parent
      and
      Tronox.

     

    “Third
      Party Claim”has
      the meaning set forth in Section 5.3(d).

     

    “Third
      Party Recovery”
      means, with respect to an Environmental Remediation Cost, the actual amount
      recovered (or, if such amount has not yet been recovered, Tronox’s reasonable
      and good faith estimate of the amount that will be recovered) by any member
      of
      the Tronox Group (i) from any Potentially Responsible Parties (as such term
      is
      defined in regulations and judicial decisions construing and applying the
      Comprehensive Environmental Response, Compensation and Liability Act) or other
      parties who may be obligated for indemnity or contribution under other
      applicable law (in each case other than any member of the Parent Group), (ii)
      from any Governmental Authority, and (iii) under any applicable insurance
      policies maintained by any member of the Tronox Group or previously issued
      to
      such member’s predecessor in interest.

     

    “Transition
      Services Agreement”
      means the Transition Services Agreement, dated as of the date hereof, between
      Parent and Tronox.

     

    “Transitional
      License Agreement”
      means the Transitional License Agreement, dated as of the date hereof, between
      Worldwide and Tronox.

     

    “Tronox”
      has the meaning given such term in the preamble to this Agreement. 

     

    “Tronox
      Affiliate”
      means any Person other than Worldwide or Parent that directly, or indirectly
      through one or more intermediaries, controls, is controlled by, or is under
      common control with Tronox and which is consolidated with Tronox for financial
      reporting purposes. For the purposes of this definition only, “control”
      refers to the possession, directly or indirectly, of the power to direct the
      management or policies of a Person, whether through the ownership of voting
      securities or other interests, by contract or otherwise.

     

    “Tronox
      Class A Common Stock”
      means the Class A Common Stock, $0.01 par value per share, of
      Tronox.

     

    “Tronox
      Class B Common Stock”
      means the Class B Common Stock, $0.01 par value per share, of
      Tronox.

     

    “Tronox
      Common Stock”
      means the Tronox Class A Common Stock and the Tronox Class B Common Stock.
      

     

    “Tronox
      Group”
      means Tronox, each Subsidiary of Tronox immediately after the Closing Date,
      Tiwest Pty. Ltd., Tiwest Sales Pty. Ltd., and the Tiwest Joint Venture and
      each
      other Person that is controlled directly or indirectly by Tronox immediately
      after the Closing Date.

     

    “Tronox
      Indemnitees”
      has the meaning set forth in Section 5.2.

     

    
      
        
        

      

      
        -
          8
          -

        
          

        

      

      
        
        

      

    

    “Tronox
      Insured Loss”has
      the meaning set forth in Section 2.6(c).

     

    “Tronox
      Public Documents”
      has the meaning set forth in Section 6.3(a).

     

    “Tronox
      Voting Stock”
      has the meaning set forth in Section 8.1.

     

    “Tronox’s
      Auditors”
      has the meaning set forth in Section 7.1(a). 

     

    “TWLLC”has
      the meaning set forth in the Introduction.

     

    “Underwriters”
      means the managing underwriters for the Initial Public Offering as identified
      in
      the IPO Registration Statement.

     

    “Underwriting
      Agreement”
      has the meaning set forth in Section 3.1(b).

     

    ARTICLE
      II

    THE
      CONTRIBUTION

     

    Section
      2.1.  Transfer
      of Membership Interests.
      Unless otherwise provided in this Agreement, on the Closing Date, Worldwide
      will, and Parent will cause Worldwide to, assign, transfer and convey to Tronox
      all of Worldwide’s right, title and interest in and to the Membership Interests,
      and Tronox will receive and accept from Worldwide all of Worldwide’s right,
      title and interest in and to such Membership Interests.
      The transfer of the Membership Interests and the rest of the Contribution shall
      be in exchange for (i) the conversion of the Existing Stock into 22,889,431
      shares of Tronox Class B Common Stock, which will be the only shares of Tronox
      Class B Common Stock outstanding, (ii) the payment of the net proceeds of the
      Initial Public Offering and the Concurrent Financings pursuant to Section 3.5
      and the payment, if any, of cash balances in excess of $40 million pursuant
      to
      Section 2.4(a), and (iii) the covenants and agreements of Tronox set forth
      herein and in each of the Ancillary Agreements.

     

    Section
      2.2.  Deliveries.
      In furtherance of the assignment, transfer and conveyance of the Membership
      Interests, unless otherwise provided in this Agreement or any other Ancillary
      Agreement, on the Closing Date, the parties will execute and deliver, and they
      will cause their respective Subsidiaries to execute and deliver: (a) each
      Ancillary Agreement to which it is a party and (b) such instruments of transfer,
      conveyance and assignment as, and to the extent necessary or convenient to
      evidence the transfer, conveyance and assignment to Tronox of all of Worldwide’s
      right, title and interest in and to the Membership Interests.

     

    Section
      2.3.  Shared
      Contracts. (a)
      Except as otherwise provided in this Agreement or any Ancillary Agreement,
      prior
      to the Closing Date Parent shall, or shall cause other members of the Parent
      Group to, use its commercially reasonable efforts to assign to Tronox (or one
      or
      more members of the Tronox Group, as appropriate) any rights or benefits
      relating to the business and operations currently conducted by members of the
      Tronox Group under any Parent Obtained Contract. In the event the foregoing
      assignment is not made, at the written request of Tronox, Parent will, and
      will
      cause other members of the Parent Group to, to the extent permitted by the
      applicable Parent Obtained Contract and applicable law, use its commercially
      reasonable efforts to otherwise make such benefits and rights available to
      Tronox or applicable members of the Tronox Group. The applicable members of
      the
      Tronox Group will assume and discharge (or promptly reimburse Parent for) the
      obligations and liabilities under the relevant Parent Obtained Contracts
      associated with the benefits and rights assigned to or otherwise made available
      to them under this Section 2.3(a).

     

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

    (b)  The
      parties’ rights and obligations pursuant to this Section 2.3 will terminate upon
      the earliest to occur of (i) the Separation Date, (ii) the termination of this
      Agreement, and (iii) with respect to any Parent Obtained Contract in particular,
      such time that the arrangement pursuant to this Section 2.3 is no longer
      permitted thereunder.

     

    Section
      2.4.  Cash
      and Inter-Company Indebtedness. (a)
      At the closing of the Firm Offering, any
      cash balances of the Tronox Group in excess of $40 million will, at the election
      of Parent, be paid to Worldwide in partial consideration for the transfer of
      the
      Membership Interests.

     

    (b)  On
      the Closing Date, an amount equal to the aggregate amount of indebtedness owed
      by members of the Tronox Group to members of the Parent Group, net of the
      aggregate amount of indebtedness owed by members of the Parent Group to members
      of the Tronox Group, shall be deemed equity in Tronox and shall thereafter
      form
      a part of the continuing equity of Tronox.

     

    Section
      2.5.  Reimbursement
      of Certain Environmental Remediation Costs.
      (a)
      Following the Closing Date, Parent shall, or shall cause one or more members
      of
      the Parent Group to, reimburse Tronox for 50% of Net Reimbursable Costs incurred
      and paid after the Closing Date with
      respect to any Former Operation; provided,
      however
      that Parent shall not be obligated to reimburse Tronox for any Net Reimbursable
      Costs until the Environmental Remediation Costs with respect to an individual
      site associated with any Former Operation exceed the Reserve Amount (as defined
      below) by more than $200,000, after which the entire amount of such Net
      Reimbursable Costs with respect to such individual Former Operation site in
      excess of the Reserve Amount shall be subject to reimbursement under this
      Section 2.5(a).
      Notwithstanding anything to the contrary set forth herein, Parent’s obligation
      to reimburse Tronox under this Section 2.5 shall in no event exceed an aggregate
      amount of $100,000,000. “Reserve Amount” means the amount listed under the
      heading “Reserve Amount” opposite the name of any site associated with a Former
      Operation on Schedule 2.5(a), it being understood and agreed that the Reserve
      Amount for any site associated with any Former Operation not listed on Schedule
      2.5(a) shall be deemed to be $0. 

     

    (b)  Within
      60 days following payment by a member of the Tronox Group of any Environmental
      Remediation Cost that is subject to reimbursement under Section 2.5(a), Tronox
      shall provide Parent with a written notice (a “Reimbursement
      Request”)
      of the Net Reimbursable Cost that identifies (i) the total amount and nature
      of
      the Environmental Remediation Cost, (ii) the site associated with a Former
      Operation to which such cost relates, and (iii) the actual or estimated amount
      of the related Third Party Recovery; provided,
      however,
      that no delay on the part of Tronox in providing a Reimbursement Request to
      Parent shall relieve Parent of its obligations under Section 2.5 except to
      the
      extent Parent is materially prejudiced by such delay. Such Reimbursement Request
      shall be delivered together with a certification by an officer of Tronox that
      such cost constitutes an Environmental Remediation Cost subject to reimbursement
      under Section 2.5(a) and that any estimated Third Party Recovery was prepared
      in
      good faith and is based on reasonable assumptions. Parent will have 60 days
      from
      receipt of any Reimbursement Request to either pay the amount of the Net
      Reimbursable Cost reflected in the Reimbursement Request or give notice of
      dispute pursuant to Article X. Any amounts owed by Parent and not paid within
      such 60-day period (including any disputed amounts that are finally determined
      to be owed to Tronox) shall bear interest from the date such payment was due
      at
      the published one-month LIBOR rate plus 2% per annum. To the extent that the
      actual amount of any Third Party Recovery, once finally determined and collected
      by Tronox is (A) greater than the estimated amount of such Third Party Recovery
      included in any Reimbursement Request, then Tronox shall promptly pay to Parent
      50% of the amount of such excess, or (B) less than the estimated amount of
      such
      Third Party Recovery included in any Reimbursement Request, then Parent shall
      promptly pay to Tronox 50% of the amount of such shortfall. Parent shall have
      the right to audit the financial records of Tronox (and members of the Tronox
      Group) in connection with, and Tronox will reasonably cooperate and assist
      Parent in, determining the validity of any costs or the amount of any actual
      or
      estimated Third Party Recovery reflected in a Reimbursement Request. If any
      such
      audit reveals any excess amounts paid by Parent, Tronox shall, promptly after
      receipt of the results of such audit, (a) pay to Parent any such excess amounts,
      with interest from the date of payment due at the published one-month LIBOR
      rate
      plus 2% per annum, and (b) if such excess amounts represent more than
      $1,000,000, reimburse Parent for the reasonable out-of-pocket cost of such
      audit.

     

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    (c)  At
      Parent’s request, Tronox shall, and shall cause Tronox and members of the Tronox
      Group to, use their commercially reasonable efforts to pursue in good faith
      any
      claim that would reasonably be expected to result in a Third Party
      Recovery.

     

    (d)  Parent’s
      reimbursement obligation under Section 2.5(a) shall not apply to any
      Environmental Remediation Costs (i) that are incurred in connection with any
      conditions resulting from events or occurrences occurring wholly or primarily
      after the Closing Date, (ii) to the extent such costs are caused, contributed
      to, or increased by activities or operations conducted by Tronox, any member
      of
      the Tronox Group, or any third party acting at the direction or under the
      control of Tronox or any member of the Tronox Group, with respect to a Former
      Operation after the Closing Date, (iii) that are incurred as a consequence
      of a
      change in use of a particular site associated with any Former Operation after
      the Closing Date, (iv) that consist of third party tort claims (including costs
      of litigation) or administrative or civil fines or penalties, or (v) that exceed
      the Lowest Cost Response. Parent’s obligation under Section 2.5(a) shall only
      apply to Environmental Remediation Costs that are incurred and paid by a member
      of the Tronox Group within seven years of the Closing Date, and that are
      presented to Parent pursuant to Section 2.5(b) within 60 days
      thereafter.

     

    (e)  To
      assist in determining Parent’s reimbursement obligation under Section 2.5(a), at
      least once per calendar quarter following the Closing Date and until such time
      as Parent’s obligations under Section 2.5(a) terminate, and in any event prior
      to delivery of reserve estimates and changes in reserves for each Former
      Operation required by Section 2.5(g)(i) for such quarter, representatives of
      Tronox and Parent shall meet (either in person or via teleconference) to discuss
      remediation activities with respect to Former Operations, reserve estimates
      and
      matters giving rise to changes in reserves (such meeting, the “Quarterly
      Meeting”).
      Such representatives of each party shall include at least three individuals
      having expertise in law, accounting or environmental affairs. From time to
      time
      between each Quarterly Meeting, Tronox shall keep Parent reasonably informed
      of
      any material changes in any remediation activities with respect to Former
      Operations, and shall otherwise, upon the written request of Parent, (i) provide
      to Parent copies of any material documents relating to such activities
      (including any response, remediation or corrective action proposals, reports,
      notices of violations, claims, communications or other information), (ii) make
      available from time to time during normal business hours, and in such a manner
      as to not interfere with the business of the Tronox Group, any employees,
      consultants, accountants and attorneys with knowledge of such activities and
      (iii) provide Parent and its representatives reasonable access to any site
      associated with any Former Operation that is owned or controlled by Tronox.
      Notwithstanding the foregoing, Parent shall not be required to reimburse any
      member of the Tronox Group with respect to an individual site associated with
      any Former Operation if any member of the Tronox Group, without the prior
      written consent of Parent, makes, agrees to make, or proposes to make any
      material change in the scope or conduct of any existing response, removal,
      remediation or other corrective action plan or project that (i) is with respect
      to a site associated with a Former Operation listed on Schedule 2.5(a), (ii)
      results in an increase in any Reserve Amount by $2,500,000 or more, or (iii)
      relates to any site associated with a Former Operation for which no reserve
      has
      been previously established and for which substantial planning, cooperation
      and
      consultation between Parent and Tronox would be reasonably expected.

     

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

    (f)  Until
      Parent’s reimbursement obligation under Section 2.5(a) terminates, Tronox shall
      manage all remediation activities with respect to Former Operations in a manner
      consistent with past practice. In furtherance and not in limitation of the
      preceding sentence, Parent shall not be required to reimburse any member of
      the
      Tronox Group for any Environmental Remediation Costs with respect to an
      individual site associated with any Former Operation if: 

     

    (i)  Tronox
      or any member of the Tronox Group takes any affirmative action to solicit from
      any third party, including any Governmental Authority, any change in use of
      such
      site or any proceeding, order or other mandate to conduct any remedial action
      at
      such site unless Tronox or such member of the Tronox Group has an obligation
      under applicable Environmental Laws to take such action, and Tronox so informs
      Parent in advance in writing; 

     

    (ii)  Tronox
      shall not have obtained the written consent of Parent, which consent will not
      be
      unreasonably withheld or delayed more than 14 days following receipt of Tronox’s
      written request, prior to any Phase II, Phase III or any other environmental
      studies, surveys, or investigations that include testing and sampling
      (collectively “Environmental
      Studies”),
      being conducted by or on behalf of any member of the Tronox Group with respect
      to any site associated with any Former Operation, unless such action is required
      by a Governmental Authority, in which case Tronox will give Parent prompt
      advance written notice of all such Environmental Studies proposed to be
      conducted. Parent or its representatives shall be provided the opportunity
      to
      review and monitor and be present at any such Environmental Studies and Tronox
      shall provide to Parent, at Parent’s cost, copies of all such Environmental
      Studies and all information obtained in connection with such Environmental
      Studies;

     

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

    (iii)  Tronox
      or any member of the Tronox Group or their representatives or any third party
      under its or their direction or control conducts any construction, demolition,
      excavation, remodeling or other physical change that requires ground disruption
      to the property at any site associated with any Former Operation, without
      Parent’s prior written consent, which consent will not unreasonably be withheld
      or delayed more than 14 days following receipt of Tronox’s written request,
      unless such action is reasonably required to repair or maintain the structural
      integrity or operational condition of the facilities located at such sites,
      in
      which case (A) Tronox will give Parent prompt advance written notice of such
      action, (B) Parent or its representatives shall be provided the opportunity
      to
      review, monitor and be present at any such activities with respect to such
      sites
      (so long as such presence does not interfere with the normal conduct of Tronox’s
      business), and (C) Tronox shall provide Parent, at Parent’s cost with copies of
      any information obtained in connection with such actions which may relate to
      Parent’s obligations under this Section 2.5; and

     

    (iv)  Tronox
      does not use its commercially reasonable efforts to conduct any Environmental
      Studies, construction, demolition, excavation, remodeling and management of
      any
      such Former Operation in a manner that will not materially increase any
      Environmental Remediation Costs.

     

    (g)  Until
      Parent’s reimbursement obligations under Section 2.5(a) terminate, Tronox shall:

     

    (i)  no
      later than eight Business Days following the end of each fiscal quarter, provide
      Parent with reserve estimates and changes in reserves for each Former Operation
      (in substantially the same form as such information is generally reported to
      Parent by members of the Tronox Group as of the date of this Agreement);
and
      

     

    (ii)  as
      soon as reasonably practicable, and in any event no later than (x) the earlier
      of (A) 10 Business Days prior to the date on which Tronox is required to file
      a
      Form 10-Q or other document containing Quarterly Financial Statements with
      the
      Commission for each of Tronox’s first three fiscal quarters in each fiscal year
      and (B) 10 Business Days prior to the date on which Parent has notified Tronox
      that Parent intends to file its Form 10-Q or other document containing quarterly
      financial statements with the Commission or (y) the earlier of (A) 12 Business
      Days prior to the date on which Tronox is required to file a Form 10-K or other
      document containing its Annual Financial Statements with the Commission and
      (B)
      12 Business Days prior to the date on which Parent has notified Tronox that
      Parent intends to file its Form 10-K or other document containing Annual
      Financial Statements with the Commission, Tronox will deliver to Parent drafts
      of any discussion or analysis of contingent obligations to pay Environmental
      Remediation Costs contained in any consolidated financial statements of the
      Tronox Group for such period. 

     

    (h)  Other
      than with respect to obligations of members of the Parent Group under this
      Agreement, any Ancillary Agreement, or the Assignment, Assumption and Indemnity
      Agreement, Tronox, on behalf of itself and each member of the Tronox Group,
      hereby waives, releases and covenants not to bring or aid, and shall indemnify
      and hold Parent and each member of the Parent Group harmless from and against,
      any investigation, inquiry, action, demand, Liability, claim, lawsuit or any
      other type of administrative or judicial action, whether known or unknown,
      actual or contingent, accrued or unaccrued, against Parent or any member of
      the
      Parent Group that Tronox or member of the Tronox Group, or
      any of their respective predecessors or successors,
      may now or hereafter hold, which arises from or relates to the operation or
      violation of any Environmental Law or regulation, whether now existing or later
      enacted, in respect to the present or former assets, properties or operations
      of
      Tronox, the Tronox Group, or any of their respective predecessors or
      successors.

     

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

    (i)  Notwithstanding
      anything to the contrary in this Agreement, the parties hereto acknowledge
      and
      agree that the provisions of this Section 2.5 concerning Parent’s entitlement to
      receive notice and information, to review, monitor and oversee, or to provide
      consent operate solely for the purpose of determining whether Parent is
      obligated to provide reimbursement for Net Reimbursable Costs pursuant to
      Section 2.5(a). The members of the Tronox Group shall have the exclusive right
      and responsibility (x) to direct, control, manage, and participate in
the
      investigation of the physical circumstances surrounding any site associated
      with
      any Former Operation or the clean-up, governmental response, removal or
      remediation required by any Environmental Laws at any such site and (y) to
      ensure compliance with Environmental Laws at any site associated with any Former
      Operation, affected by this Section 2.5 only insofar as determining whether
      the
      resulting Environmental Remediation Costs shall be subject to reimbursement
      by
      Parent.
      Nothing in this Section 2.5 shall be construed as requiring or allowing Parent
      to direct, control, manage, or participate in the investigation of any such
      site
      or to ensure compliance with Environmental Law at any such site.

     

    (j)  Notwithstanding
      anything to the contrary in this Agreement, the parties hereto acknowledge
      and
      agree that the provisions of this Sections 2.5 are solely for the benefit of
      the
      Parent Group on the one hand and the Tronox Group on the other hand, and are
      not
      intended, and shall not create, any third party beneficiary rights in or to
      any
      other Person.

     

    Section
      2.6.  Insurance
      Matters.
      (a) Except
      as expressly provided in this Section 2.6, the Parent Insurance Policies will
      remain in full force and effect through either (at Parent’s option) (i) the
      Separation Date or (ii) the renewal date of any such Parent Insurance Policy,
      at
      which time, future coverage thereunder will be discontinued with respect to
      the
      Tronox Group. Notwithstanding the foregoing, for so long as any personal
      property of members of the Tronox Group is covered under Parent’s policy with
      Oil Insurance Limited, in the event of an occurrence that involves physical
      damage to property of both the Parent Group and the Tronox Group, the limit
      of
      insurance under such policy will be allocated based on the proportion that
      the
      value of each Group’s loss bears to the total.

     

    (b)  On
      or prior to the Closing Date, Tronox shall have in effect, and for a period
      of
      six years following the Closing Date, Tronox will maintain in effect, directors’
and officers’ liability insurance policies (“D&O
      Policies”)
      as follows:

     

    (i)  D&O
      Policies with coverage limits of not less than $50 million with respect to
      wrongful acts occurring prior to the Closing Date. Tronox shall provide that
      Parent is named on a codefendant basis under such D&O Policies.

     

    (ii)  D&O
      Policies with coverage limits of not less than $50 million with respect to
      wrongful acts occurring on or after the Closing Date. Until the Separation
      Date,
      Tronox shall provide that Parent is named on a codefendant basis under such
      D&O Policies.

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

    The
      D&O Policies shall contain terms and conditions that are not materially less
      favorable, subject to commercial availability, to the officers and directors
      covered by such policies than those D&O Policies maintained by Parent or
      members of the Parent Group as of the date of this Agreement. For a period
      of
      six years following the Closing Date, Tronox shall, to the fullest extent
      permitted under applicable law or under the Tronox’s Certificate of
      Incorporation or Bylaws, indemnify and hold harmless, each present and former
      director and officer of Tronox and of each member of the Tronox Group against
      any costs or expenses (including attorneys’ fees), judgments, fines, losses,
      claims, damages, liabilities and amounts paid in settlement in connection with
      any claim, action, suit, proceeding or investigation, whether civil, criminal,
      administrative, arbitral or investigative, arising out of or pertaining to
      any
      action or omission occurring prior to the Closing Date, or arising out of or
      pertaining to the transactions contemplated by this Agreement. 

     

    (c)  Effective
      as of the Separation Date, Parent shall, or shall cause its Affiliates to,
      use
      its commercially reasonable efforts to cause to be transferred to Tronox or
      a
      member of the Tronox Group, to the extent permitted under the relevant Parent
      Insurance Policies and applicable law and to the extent that such transfer
      would
      not impair in any material respect Parent’s rights under such policies, any
      claim, chose in action or other right Parent has to insurance coverage or
      insurance proceeds under any Parent Insurance Policy other than D&O Policies
      with respect to any loss, liability, claim, damage or expense of any member
      of
      the Tronox Group (including products and current and former employees and
      directors thereof) of any of their respective predecessors and arising out
      of
      occurrences prior to the Separation Date (a “Tronox
      Insured Loss”).
      To the extent the transfer of such claim, chose in action or right referred
      to
      in the preceding sentence does not occur, upon the reasonable request of Tronox,
      Parent shall, and shall cause its Affiliates to, use its commercially reasonable
      efforts to promptly assist Tronox in tendering claims for any Tronox Insured
      Losses to the applicable insurers under the Parent Insurance Polices and to
      provide Tronox with the proceeds of claims made by or with respect to such
      Tronox Insured Losses subject to the self-insured limits and deductibles under
      the applicable policy. Upon request of Tronox, Parent or its Affiliates shall
      provide historical loss information with respect to any insurance policies
      that
      cover the assets, businesses, operations, employees, officers and directors
      of
      members of the Tronox Group or their predecessors. Parent shall cause KM
      International Insurance Ltd (“KMIIL”)
      to promptly make payments as received from and approved by reinsurers of KMIIL
      (as appropriate) with respect to all reported claims made by or on behalf of
      members of the Tronox Group. Subsequent to the Closing Date and to the extent
      consistent with the provisions of this Section 2.6, Tronox assumes
      responsibility for the administration and adjustment of all Tronox Insured
      Losses. “Parent
      Insurance Policies”
      means any current or historic insurance policy covering the assets, businesses,
      operations, employees, officers or directors of both (A) the Parent and (B)
      any
      member of the Tronox Group, or any of their predecessors.

     

    (d)  Tronox
      does hereby, for itself and each other member of the Tronox Group, agree that
      no
      member of the Parent Group or any Parent Indemnitee shall have any Liability
      whatsoever as a result of the insurance policies and practices of Parent and
      its
      Affiliates as in effect at any time prior to the Closing Date, including as
      a
      result of the level or scope of any such insurance, the creditworthiness of
      any
      insurance carrier, the terms and conditions of any policy, the adequacy or
      timeliness of any notice to any insurance carrier with respect to any claim
      or
      potential claim or otherwise.

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

    (e)  

     

    Section
      2.7.  Guarantees
      and Sureties.
      (a)
      Tronox acknowledges that Parent or its Affiliates have entered into various
      arrangements in which Parent or its Affiliates issued or made available
      guarantees, sureties, bonds, letters of credit or similar instruments or are
      the
      primary obligors on other agreements, in any such case to support or facilitate
      the business transactions of members of the Tronox Group (the “Business
      Guarantees”).
      It is understood that none of such Business Guarantees shall continue after
      the
      Separation Date. On or as promptly as practicable following the Closing Date,
      but in no event later than the Separation Date, Tronox shall obtain replacements
      for such Business Guarantees or will either terminate the business transactions
      or programs of the Tronox Group supported or facilitated by such Business
      Guarantees or arrange for itself or one of its Subsidiaries to be substituted
      as
      the primary obligor thereto (collectively, the “Substitute
      Guarantees”).

     

    (b)  On
      or before the Closing Date, Parent shall cause Tronox and the other members
      of
      the Tronox Group to be unconditionally released from any guarantees, sureties,
      bonds or other contractual obligations relating to the Liabilities of Parent
      or
      the Parent Group (collectively, “Parent
      Guarantees”),
      with no further obligations thereunder.

     

    Section
      2.8.  Representations
      or Warranties.
      (a) Parent
      represents and warrants to Tronox that Worldwide has good and valid title to
      the
      Membership Interests, free and clear of all security interests, mortgages,
      liens, pledges, charges or other encumbrances of any kind. 

     

    (b)  Tronox
      (on behalf of itself and each member of the Tronox Group) acknowledges and
      agrees that, except as expressly set forth in this Agreement or any Ancillary
      Agreement, no member of the Parent Group is making any representations or
      warranties to Tronox of any nature, either express or implied, including
      regarding any Assets or business of the Tronox Group, the Parent Obtained
      Contracts, or Parent Insurance Policies. 

     

    ARTICLE
      III

    THE
      INITIAL PUBLIC OFFERING

     

    Section
      3.1.  General. (a)
      Subject to the conditions hereof, the parties shall use their commercially
      reasonable efforts to consummate the Initial Public Offering. Tronox shall
      file
      such amendments or supplements to the IPO Registration Statement as may be
      necessary in order to cause the same to become and remain effective as required
      by applicable law or by the Underwriters, including filing such amendments
      to
      the IPO Registration Statement as may be required by the Underwriting Agreement,
      the Commission or applicable securities laws. Parent and Tronox shall also
      cooperate in preparing, filing with the Commission and causing to become
      effective a registration statement registering the Tronox Class A Common Stock
      under the Exchange Act, and any registration statements or amendments thereof
      that are required to reflect the establishment of, or amendments to, any
      employee benefit and other plans necessary or appropriate in connection with
      the
      Initial Public Offering, the Section 355 Transaction or the other transactions
      contemplated by this Agreement and the Ancillary Agreements.

     

    (b)  Parent
      and Tronox have entered into an underwriting agreement with the Underwriters
      (the “Underwriting
      Agreement”)
      pursuant to which Tronox has (a) agreed to sell an aggregate of 17,480,000
      shares of Tronox Class A Common Stock to the Underwriters (the “Firm
      Offering”),
      and (b) granted the Underwriters an option to purchase up to an additional
      2,622,000 shares of Tronox Class A Common Stock (the “Over-Allotment
      Option”
      and, with the Firm Offering, the “Initial
      Public Offering”).
      Each party shall comply with its obligations under the Underwriting
      Agreement.

     

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

    (c)  Tronox
      shall use its commercially reasonable efforts to take all such action as may
      be
      necessary or appropriate under state securities and blue sky laws of the United
      States (and any comparable laws under any foreign jurisdictions) in connection
      with the Initial Public Offering.

     

    (d)  Tronox
      shall prepare, file and use its commercially reasonable efforts to seek to
      make
      effective an application for listing of the Tronox Class A Common Stock issued
      in the Initial Public Offering on the NYSE.

     

    (e)  Tronox
      shall participate in the preparation of materials and presentations as Parent
      and the Underwriters shall deem necessary or desirable in connection with the
      Initial Public Offering.

     

    (f)  Tronox
      will cooperate in all respects with Parent in connection with the pricing of
      the
      Tronox Class A Common Stock to be issued in the Initial Public Offering and
      the
      timing of the Initial Public Offering and will, at Parent’s request, promptly
      take any and all actions necessary or desirable to consummate the Initial Public
      Offering as contemplated by the IPO Registration Statement and the Underwriting
      Agreement.

     

    Section
      3.2.  Use
      of Proceeds.
      The net proceeds of the Initial Public Offering will be used by Tronox as
      described in Section 3.5 hereof and the IPO Registration Statement in the
      section entitled “Use of Proceeds.”

     

    Section
      3.3.  Conditions
      Precedent to Consummation of the Initial Public Offering. (a) The
      closing of each of the Firm Offering and the sale of Tronox Class A Common
      Stock
      upon any exercise of the Over-Allotment Option shall be conditioned on the
      satisfaction, or waiver by Parent in its sole and absolute discretion, of the
      following conditions:

     

    (i)  The
      IPO Registration Statement shall have been declared effective by the Commission
      and there shall be no stop-order in effect with respect thereto and no
      proceeding for that purpose shall have been instituted by the Commission.

     

    (ii)  The
      actions and filings with regard to state securities and blue sky laws of the
      United States (and any comparable laws under any foreign jurisdictions)
      referenced in Section 3.1(c) shall have been taken and, where applicable, have
      become effective or been accepted.

     

    (iii)  The
      Tronox Class A Common Stock to be issued in the Firm Offering or in connection
      with the exercise of the Over-Allotment Option, as applicable, shall have been
      accepted for listing on the NYSE, on official notice of issuance.

     

    (iv)  Parent
      shall be satisfied in its sole and absolute discretion that the Distribution
      or
      Exchange or combination thereof (the “Section
      355 Transaction”)
      should qualify as a pro rata or non-pro rata tax-free distribution for federal
      income tax purposes under Sections 355 and 368(a)(1)(D) of the Internal Revenue
      Code.

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

    (v)  No
      order, injunction or decree issued by any court or agency of competent
      jurisdiction or other legal restraint or prohibition preventing the consummation
      of the Contribution or the Initial Public Offering or any of the other
      transactions contemplated by this Agreement or any Ancillary Agreement shall
      be
      in effect.

     

    (vi)  This
      Agreement shall not have terminated. 

     

    (vii)  The
      Concurrent Financings will have occurred on terms and with lenders acceptable
      to
      Parent.

     

    (viii)  With
      respect to the Firm Offering only, the aggregate cash balance of the Tronox
      Group shall be at least $40 million.

     

    (ix)  Each
      Ancillary Agreement shall have been executed and delivered by each of the
      parties thereto.

     

    (x)  Such
      other actions as Parent may, based upon the advice of counsel, reasonably
      request to be taken prior to the closing of the Firm Offering or the sale of
      Tronox Class A Common Stock upon any exercise of the Over-Allotment Option
      in
      order to assure the successful completion of the Initial Public Offering and
      the
      other transactions contemplated by this Agreement shall have been
      taken.

     

    (b)  The
      foregoing conditions are for the sole benefit of Parent and shall not give
      rise
      to or create any duty on the part of Parent to waive or not waive such
      conditions or in any way limit Parent’s right to terminate this Agreement as set
      forth in Section 12.1 or alter the consequences of any such termination from
      those specified in such Section. Any determination made by Parent prior to
      the
      closing of the Firm Offering or the sale of any Tronox Class A Common Stock
      upon
      the exercise of the Over-Allotment Option concerning the satisfaction or waiver
      of any or all of the conditions set forth in this Section 3.3 shall be
      conclusive.

     

    Section
      3.4.  Tronox
      Common Stock.
      Prior to the Closing Date, Parent and Tronox shall each take all actions
      (including, without limitation, such actions that are required to effect the
      adoption by Tronox of an amended and restated certificate of incorporation)
      that
      Parent determines, in its sole discretion, may be required to provide for the
      conversion of the Existing Stock into a number of shares of Tronox Class B
      Common Stock such that Worldwide possesses Tax Control of Tronox at all times
      before, at the time of, and immediately following the closing of each of the
      Firm Offering and the sale of Tronox Class A Common Stock upon any exercise
      of
      the Over-Allotment Option.

     

    Section
      3.5.  Proceeds
      of Concurrent Financings and Initial Public Offering.
      (a)
      As partial consideration for the Contribution, unless otherwise agreed by
      Parent, Tronox shall distribute to Worldwide all cash proceeds received by
      Tronox and TWLLC from the Concurrent Financings, the Firm Offering
      and the exercise, if any, of the Over-Allotment Option, net of attorneys’ fees,
      investment banking fees, accountants’ fees, underwriting discounts and
      commissions and other fees and expenses (“Offering
      Expenses”)
      actually incurred in connection therewith, as follows:

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

    (i)  On
      the Closing Date, Tronox shall distribute to Worldwide an amount equal to $762.9
      million, which the parties agree is the amount of cash proceeds to be received
      by Tronox and TWLLC on the Closing Date from the Concurrent Financings and
      the
      Firm Offering, net of estimated Offering Expenses related thereto (the
“Estimated
      Closing Date Expenses”).
      No later than 45 days following the Closing Date, the parties shall review
      the
      amount of Offering Expenses actually incurred in connection with the Concurrent
      Financings and the Firm Offering. If the amount of Estimated Closing Date
      Expenses exceeds the amount of Offering Expenses actually incurred, Tronox
      shall
      distribute to Worldwide an amount equal to such excess. If the amount of
      Offering Expenses actually incurred exceeds the amount of Estimated Closing
      Date
      Expenses, Parent shall cause Worldwide to pay Tronox an amount equal to such
      excess.

     

    (ii)  Upon
      the closing of any sale of Tronox Class A Common Stock pursuant to the exercise
      of the Over-Allotment Option, Tronox shall distribute to Worldwide the cash
      proceeds received by Tronox from such sale, net of estimated Offering Expenses
      related thereto, as reasonably determined by Tronox (the “Estimated
      Over-Allotment Expenses”).
      No later than 30 days following the closing of any such sale, the parties shall
      review the amount of Offering Expenses actually incurred in connection with
      the
      exercise of the Over-Allotment Option. If the amount of Estimated Over-Allotment
      Expenses exceeds the amount of Offering Expenses actually incurred, Tronox
      shall
      distribute to Worldwide an amount equal to such excess. If the amount of
      Offering Expenses actually incurred exceeds the amount of Estimated
      Over-Allotment Expenses, Parent shall cause Worldwide to pay Tronox an amount
      equal to such excess. 

     

    (b)  Worldwide
      shall distribute all proceeds received from Tronox pursuant to this Section
      3.5
      to Parent as soon as reasonably practicable following receipt.

     

    ARTICLE
      IV

    THE
      SEPARATION

     

    Section
      4.1.  The
      Separation.
      Parent will, in its sole and absolute discretion, determine all terms of the
      Separation, including, without limitation, the form, structure and terms of
      any
      transactions or offerings to effect any Section 355 Transaction and the timing
      of and conditions to such transactions. Parent may, at any time and from time
      to
      time until the completion of the Separation, modify or change the terms of
      any
      proposed Section 355 Transaction, including, without limitation, by accelerating
      or delaying the timing of the consummation of all or part of either such
      transactions. Tronox shall cooperate with Parent in all respects to accomplish
      the Separation and shall, at Parent’s direction, promptly take any and all
      actions necessary or desirable to effect the Separation, including, without
      limitation, the registration under the Securities Act and the Exchange Act
      of
      Tronox Class B Common Stock on an appropriate registration form or forms to
      be
      designated by Parent. Parent shall select any investment bank or manager engaged
      in connection with any Section 355 Transaction, as well as any financial
      printer, solicitation or exchange agent and financial, legal, accounting and
      other advisors for Parent; provided,
      however,
      that nothing herein shall prohibit Tronox from engaging (at its own expense)
      its
      own financial, legal, accounting (to the extent permitted by Article VII) and
      other advisors in connection with any Section 355 Transaction.

     

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

    Section
      4.2.  Actions
      Prior to the Separation. (a)
      Parent and Tronox shall prepare and mail, prior to the Separation Date, to
      the
      holders of Parent Common Stock, such information concerning Tronox, the
      transactions constituting the Separation and such other matters as Parent shall
      reasonably determine and as may be required by law. Parent and Tronox shall
      prepare, and Tronox shall, to the extent required under applicable law, file
      with the Commission, any such documentation that Parent determines is necessary
      or desirable to effect the Exchange or Distribution and Parent and Tronox shall
      each use its commercially reasonable efforts to obtain all necessary approvals
      from the Commission with respect thereto as soon as practicable.

     

    (b)  Tronox
      shall take all such action as may be necessary or appropriate under the
      securities or blue sky laws of the United States (and any comparable laws under
      any foreign jurisdiction) in connection with the Section 355 Transaction or
      otherwise in connection with the Separation.

     

    (c)  Tronox
      shall prepare and file, and shall use its commercially reasonable efforts to
      have approved, an application for the listing of the Tronox Class B Common
      Stock
      on the NYSE.

     

    (d)  Tronox
      shall take all reasonable steps necessary or desirable to cause the conditions
      set forth in Section 4.3 to be satisfied and to effect any Section 355
      Transaction.

     

    Section
      4.3.  Conditions
      to the Exchange or Distribution. (a)
      The consummation of the Section 355 Transaction shall be conditioned on the
      satisfaction, or waiver by Parent in its sole and absolute discretion, of the
      following conditions: 

    (i)  The
      receipt by Parent, in form and substance satisfactory to it, of an opinion
      of
      tax counsel to the effect that, among other things, the Section 355 Transaction
      should qualify as a tax-free distribution for federal income tax purposes under
      Sections 355 and 368(a)(1)(D) of the Internal Revenue Code and such other
      matters as it will determine to be necessary or advisable in its sole and
      absolute discretion.

     

    (ii)  The
      receipt of any Governmental Approvals and material Consents necessary to
      consummate the Section 355 Transaction, which Governmental Approvals and
      Consents will be in full force and effect.

     

    (iii)  No
      order, injunction, decree or regulation issued by any court or agency of
      competent jurisdiction or other legal restraint or prohibition preventing the
      consummation of the Section 355 Transaction will be in effect and no other
      event
      outside the control of Parent will have occurred or failed to occur that
      prevents the consummation of the Section 355 Transaction.

     

    
      
        
        

      

      
        -
          20
          -

        
          

        

      

      
        
        

      

    

    (iv)  The
      actions and filings necessary or appropriate under applicable securities laws
      in
      connection with the Section 355 Transaction will have been taken or made, and,
      where applicable, will have become effective or been accepted.

     

    (v)  The
      Tronox Class B Common Stock to be distributed in the Section 355 Transaction
      will have been accepted for listing on the NYSE, subject to official notice
      of
      issuance.

     

    (b)  The
      foregoing conditions are for the sole benefit of Parent and shall not give
      rise
      to or create any duty on the part of Parent or the Board to waive or not waive
      such conditions or in any way limit Parent’s right to terminate this Agreement
      as set forth in Section 12.1 or alter the consequences of any such termination
      from those specified in such Section. Any determination made by the Board prior
      to the Section 355 Transaction concerning the satisfaction or waiver of any
      or
      all of the conditions set forth in this Section 4.3 shall be
      conclusive.

     

    Section
      4.4.  Certain
      Stockholder Matters. (a)
      Subject to Section 4.3, Tronox and Parent, as the case may be, will provide
      to
      the Agent all share certificates and any information required in order to
      complete the Section 355 Transaction. 

     

    (b)  From
      and after the Section 355 Transaction and until the Tronox Class B Common Stock
      is duly transferred in accordance with applicable law, Tronox shall regard
      the
      Persons entitled to receive such Tronox Class B Common Stock in such transaction
      as record holders of Tronox Class B Common Stock in accordance with the terms
      of
      such transaction without requiring any action on the part of such Persons.
      Tronox agrees that, subject to any transfers of such stock, (i) each such holder
      will be entitled to receive all dividends payable on, and exercise all voting
      rights, and all other rights and privileges with respect to, the shares of
      Tronox Class B Common Stock then held by such holder, and (ii) each such holder
      will be entitled to receive one or more certificates representing, or other
      evidence of ownership of, the shares of Tronox Class B Common Stock then held
      by
      such holder. Parent will cooperate, and will instruct the Agent and Parent’s
      transfer agent to cooperate, with Tronox and Tronox’s transfer agent, and Tronox
      will cooperate, and will instruct its transfer agent to cooperate, with Parent
      and the Agent, in connection with all aspects of the Section 355 Transaction
      and
      all other matters relating to the issuance and delivery of certificates
      representing, or other evidence of ownership of, the shares of Tronox Class
      B
      Common Stock to be distributed to the holders of Parent Common Stock in
      connection with such transaction. Following any Section 355 Transaction, Parent
      shall promptly, but in no event later than two Business Days thereafter,
      instruct the Agent or Parent’s transfer agent to deliver to Tronox’s transfer
      agent true, correct and complete copies of the stock and transfer records
      reflecting the holders of the Parent Common Stock entitled to receive shares
      of
      the Tronox Class B Common Stock.

     

    ARTICLE
      V

    INDEMNIFICATION

     

    Section
      5.1.  Indemnification
      by Tronox.
      Subject to the provisions hereof, Tronox shall indemnify, defend and hold
      harmless Parent, each member of the Parent Group and each of their respective
      past and present directors, officers and employees, and each of the heirs,
      executors, successors and assigns of any of the foregoing (collectively, the
      “Parent
      Indemnitees”),
      from and against any and all Liabilities relating to, arising out of or
      resulting from any of the following items (without duplication):

     

    
      
        
        

      

      
        -
          21
          -

        
          

        

      

      
        
        

      

    

    (i)  all
      Retained Liabilities (as defined in the Assignment, Assumption and Indemnity
      Agreement); 

     

    (ii)  any
      and all Liabilities (other than with respect to obligations of, or Liabilities
      expressly and specifically assumed by, any member of the Parent Group pursuant
      to this Agreement, any Ancillary Agreement or the Assignment, Assumption and
      Indemnity Agreement) to the extent arising out of or relating to (A) any
      businesses, operations or Assets currently or previously conducted or owned
      by
      any member of the Tronox Group or any of their predecessors, in each case,
      whether such Liabilities arise or accrue prior to, on or after the Effective
      Date; (B) any business
      conducted by any member of the Tronox Group at any time after the Effective
      Date; and (C) all obligations of the Tronox Group under or pursuant to this
      Agreement, any Ancillary Agreement or any other instrument entered into in
      connection herewith or therewith; 

     

    (iii)  any
      breach by Tronox or any member of the Tronox Group of any covenant in this
      Agreement, the Employee Benefits Agreement, the Transitional License Agreement
      or the Registration Rights Agreement; 

     

    (iv)  any
      Business Guarantees that are not replaced with Substitute Guarantees, or with
      respect to which Parent or any member of the Parent Group has any liability
      or
      obligation after the Closing Date; and

     

    (v)  with
      respect to the IPO Registration Statement, the Prospectus or any registration
      statement or other document related to the Section 355 Transaction, any untrue
      statement or alleged untrue statement of a material fact therein, or omission
      or
      alleged omission to state a material fact therein, which is necessary to make
      the statements contained therein not misleading, in any case to the extent
      relating to the Tronox Group.

     

    Section
      5.2.  Indemnification
      by Worldwide.
      Subject to the provisions hereof, Worldwide shall indemnify, defend and hold
      harmless Tronox, each member of the Tronox Group and each of their respective
      directors, officers and employees, and each of the heirs, executors, successors
      and assigns of any of the foregoing (collectively, the “Tronox
      Indemnitees”),
      from and against any and all Liabilities of the Tronox Indemnitees relating
      to,
      arising out of or resulting from any of the following items (without
      duplication):

     

    (i)  all
      Assumed Liabilities (as defined in the Assignment, Assumption and Indemnity
      Agreement); 

     

    (ii)  any
      breach by Parent or any member of the Parent Group of any covenant in this
      Agreement, the Employee Benefits Agreement, the Transitional License Agreement
      or the Registration Rights Agreement; and

     

    (iii)  any
      Parent Guarantees with respect to which Tronox or any member of the Tronox
      Group
      has any liability or obligation after the Closing Date.

     

    
      
        
        

      

      
        -
          22
          -

        
          

        

      

      
        
        

      

    

    Section
      5.3.  Claim
      Procedure. (a)
      A
      party that seeks indemnity under this Article V (an “Indemnified
      Party”)
      will promptly give written notice (a “Claim
      Notice”)
      to the party from whom indemnification is sought (an “Indemnifying
      Party”),
      whether the Liabilities sought arise from matters solely between the parties
      or
      from Third-Party Claims. The Claim Notice must contain (i) a description and,
      if
      known, estimated amount (the “Claimed
      Amount”)
      of any Liabilities incurred or reasonably expected to be incurred by the
      Indemnified Party, (ii) a reasonable explanation of the basis for the Claim
      Notice to the extent of facts then known by the Indemnified Party, and (iii)
      a
      demand for payment of those Liabilities. No delay or deficiency on the part
      of
      the Indemnified Party in so notifying the Indemnifying Party will relieve the
      Indemnifying Party of any liability or obligation hereunder except to the extent
      of any Liabilities caused by or arising out of such failure.

     

    (b)  Within
      30 days after delivery of a Claim Notice, the Indemnifying Party will deliver
      to
      the Indemnified Party a written response in which the Indemnifying Party will
      either: (i) agree that the Indemnified Party is entitled to receive all of
      the
      Claimed Amount and, in which case, the Indemnifying Party will pay the Claimed
      Amount in accordance with a payment and distribution method reasonably
      acceptable to the Indemnified Party; or (ii) dispute that the Indemnified Party
      is entitled to receive all or any portion of the Claimed Amount.

     

    (c)  In
      the event that the Indemnifying Party disputes all or any portion of the Claimed
      Amount, as soon as practicable but in no event later than 10 days after the
      receipt of the notice referenced in Section 5.3(b)(ii), the parties will begin
      the process to resolve the matter in accordance with the dispute resolution
      provisions of Article X hereof. Upon ultimate resolution thereof, the parties
      will take such actions as are reasonably necessary to comply with such agreement
      or instructions. 

     

    (d)  In
      the event that the Indemnified Party receives notice or otherwise learns of
      the
      assertion by a Person who is not a member of either Group of any claim or the
      commencement of any Action (collectively, a “Third-Party
      Claim”)
      with respect to which the Indemnifying Party may be obligated to provide
      indemnification under this Article V, the Indemnified Party will promptly give
      written notification to the Indemnifying Party of the Third-Party Claim. Such
      notification will be accompanied by reasonable supporting documentation
      submitted by such third party (to the extent then in the possession of the
      Indemnified Party) and will describe in reasonable detail (to the extent known
      by the Indemnified Party) the facts constituting the basis for such Third-Party
      Claim and the amount of the claimed Liabilities; provided,
      however,
      that no delay or deficiency on the part of the Indemnified Party in so notifying
      the Indemnifying Party will relieve the Indemnifying Party of any Liability
      or
      obligation hereunder except to the extent of any Liabilities caused by or
      arising out of such failure.

     

    (e)  Within
      20 days after delivery of such notification, the Indemnifying Party may, upon
      written notice thereof to the Indemnified Party, assume control of the defense
      of such Third-Party Claim with counsel reasonably satisfactory to the
      Indemnified Party. During any period in which the Indemnifying Party has not
      so
      assumed control of such defense, the Indemnified Party will control such
      defense. The party not controlling such defense (the “Non-controlling
      Party”)
      may participate therein at its own expense; provided,
      however,
      that if the Indemnifying Party assumes control of such defense and the
      Indemnified Party concludes, upon the written opinion of counsel, that the
      Indemnifying Party and the Indemnified Party have conflicting interests or
      different defenses available with respect to such Third-Party Claim, the
      reasonable fees and expenses of counsel to the Indemnified Party will be
      considered Liabilities for purposes of this Agreement. The party controlling
      such defense (the “Controlling
      Party”)
      will keep the Non-controlling Party reasonably advised of the status of such
      Third-Party Claim and the defense thereof and will consider in good faith
      recommendations made by the Non-controlling Party with respect thereto. The
      Non-controlling Party will furnish the Controlling Party with such Information
      as it may have with respect to such Third-Party Claim (including copies of
      any
      summons, complaint or other pleading which may have been served on such party
      and any written claim, demand, invoice, billing or other document evidencing
      or
      asserting the same) and will otherwise cooperate with and assist the Controlling
      Party in the defense of such Third-Party Claim. 

     

    
      
        
        

      

      
        -
          23
          -

        
          

        

      

      
        
        

      

    

    (f)  The
      Indemnifying Party will not agree to any settlement of, or the entry of any
      judgment arising from, any such Third-Party Claim without the prior written
      consent of the Indemnified Party, which consent will not be unreasonably
      withheld or delayed; provided,
      however,
      that the consent of the Indemnified Party will not be required if (A) the
      Indemnifying Party agrees in writing to pay any amounts payable pursuant to
      such
      settlement or judgment, (B) such settlement or judgment includes a full,
      complete and unconditional release of the Indemnified Party from further
      Liability and (C) the Indemnifying Party reasonably determines that such
      settlement or judgment will not subject the Indemnified Party to the risk of
      an
      enhanced penalty in any future Action similar to the applicable Third-Party
      Claim. The Indemnified Party will not agree to any settlement of, or the entry
      of any judgment arising from, any such Third-Party Claim without the prior
      written consent of the Indemnifying Party, which consent will not be
      unreasonably withheld or delayed. 

     

    Section
      5.4.  Limitations. (a)
      The amount of any Liabilities for which indemnification is provided under this
      Agreement will be net of any Tax Benefit and any amounts actually recovered
      by
      the Indemnified Party from any third Person (including, without limitation,
      amounts actually recovered under insurance policies) with respect to such
      Liabilities. Any Indemnifying Party hereunder will be subrogated to the rights
      of the Indemnified Party upon payment in full of the amount of the relevant
      indemnifiable Liabilities. An insurer who would otherwise be obligated to pay
      any claim will not be relieved of the responsibility with respect thereto or,
      solely by virtue of the indemnification provision hereof, have any subrogation
      rights with respect thereto. If any Indemnified Party recovers an amount from
      a
      third Person in respect of Liabilities for which indemnification is provided
      in
      this Agreement after the full amount of such indemnifiable Liabilities has
      been
      paid by an Indemnifying Party or after an Indemnifying Party has made a partial
      payment of such indemnifiable Liabilities and the amount received from the
      third
      Person exceeds the remaining unpaid balance of such indemnifiable Liabilities,
      then the Indemnified Party will promptly remit to the Indemnifying Party the
      excess (if any) of (I) the sum of the amount theretofore paid by such
      Indemnifying Party in respect of such indemnifiable Liabilities plus the amount
      received from the third Person in respect thereof, less
      (II)
      the full amount of such indemnifiable Liabilities and any previously unpaid
      or
      unreimbursed expenses (including reasonable attorney’s fees) incurred by such
      Indemnified Party in collecting such amount from such third Person.

     

    (b)  Any
      indemnification payment made under this Agreement and any payment made by
      Worldwide to Tronox pursuant to Section 3.5(a) will be characterized for Tax
      purposes as a contribution or distribution made prior to the completion of
      the
      Firm Offering or payment of an assumed or retained liability, as
      applicable.

     

    
      
        
        

      

      
        -
          24
          -

        
          

        

      

      
        
        

      

    

    (c)  Notwithstanding
      anything to the contrary in Section 5.1 or Section 5.2, indemnification with
      respect to Taxes shall be governed exclusively by the Tax Sharing
      Agreement.

     

    (d)  Worldwide’s
      and Tronox’s indemnity obligations under Sections 5.1 and 5.2 of this Agreement
      shall be reduced to reflect any Tax Benefit (as defined below) realized, in
      the
      year in which the indemnity payment is required to be made or in any prior
      year,
      by the Indemnified Party or any of its Affiliates. To the extent that the claim
      with respect to which an indemnity obligation arises has not given rise to
      a Tax
      Benefit in a prior year or in the year in which the indemnity payment is to
      be
      made, but gives rise to a Tax Benefit in a later year, the Indemnified Party
      shall pay to the Indemnifying Party the amount of such Tax Benefit. For purposes
      of this Agreement, “Tax
      Benefit”
      means any deduction, amortization, exclusion from income or other allowance
      that
      actually reduces in cash the amount of Tax Parent,
      Tronox or their respective Affiliates (as applicable)
      would have been required to pay (or actually increases in cash the amount of
      Tax
      refund to which Parent, Tronox or their respective Affiliates (as applicable)
      would have been entitled) in the absence of the item giving rise to the
      indemnity claim. For purposes of determining the amount of any payment due
      to an
      Indemnified Party pursuant to this Section 5.4(d), Parent, Tronox and their
      respective Affiliates shall be deemed to use all other deductions,
      amortizations, exclusions from income or other allowances (to the extent that
      such deductions, amortizations, exclusions from income or other allowances
      are
      entitled to be used under applicable Tax law) prior to the use of any Tax
      Benefits in respect of which the Indemnifying Party is obligated to pay the
      Indemnified Party hereunder.

     

    (e)  NOTWITHSTANDING
      ANY OTHER PROVISION OF THIS AGREEMENT OR ANY ANCILLARY AGREEMENT TO THE
      CONTRARY, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS GROUP MEMBERS BE LIABLE
      FOR ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE
      DAMAGES OR LOST PROFITS SUFFERED BY AN INDEMNIFIED PARTY, HOWEVER CAUSED AND
      ON
      ANY THEORY OF LIABILITY, IN CONNECTION WITH ANY DAMAGES ARISING HEREUNDER OR
      THEREUNDER; PROVIDED,
      HOWEVER,
      THAT TO THE EXTENT AN INDEMNIFIED PARTY IS REQUIRED TO PAY ANY SPECIAL,
      INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST
      PROFITS TO A PERSON WHO IS NOT A MEMBER OF EITHER GROUP IN CONNECTION WITH
      A
      THIRD-PARTY CLAIM, SUCH DAMAGES WILL CONSTITUTE DIRECT DAMAGES AND NOT SUBJECT
      TO THE LIMITATION SET FORTH IN THIS SECTION 5.4(e).  

     

    Section
      5.5.  Production
      of Witnesses and Documents.
      If an Indemnifying Party chooses to defend or to seek to compromise or settle
      any Third-Party Claim, the other party shall use its commercially reasonable
      efforts to make available to such Indemnifying Party, upon written request,
      the
      former, current and future directors, officers, employees, other personnel
      and
      agents of the members of its respective Group as witnesses and any books,
      records or other documents within its control or which it otherwise has the
      ability to make available, to the extent that any such person (giving
      consideration to business demands of such directors, officers, employees, other
      personnel and agents) or books, records or other documents may reasonably be
      required in connection with such defense, settlement or compromise, or such
      prosecution, evaluation or pursuit, as the case may be, and shall otherwise
      cooperate in such defense, settlement or compromise, or such prosecution,
      evaluation or pursuit, as the case may be.

     

    
      
        
        

      

      
        -
          25
          -

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI

    FINANCIAL
      PROCEDURES, CONTROLS AND REPORTING

     

    Section
      6.1.  Financial
      Information. (a)
      (i) Tronox will, and will cause each other member of the Tronox Group to,
      maintain, as of and after the Effective Date, disclosure controls and procedures
      and internal control over financial reporting as defined in Exchange Act Rule
      13a-15; (ii) Tronox will cause each of its principal executive and principal
      financial officers to sign and deliver certifications to Tronox’s periodic
      reports and will include the certifications in Tronox’s periodic reports, as and
      when required pursuant to Exchange Act Rule 13a-14 and Item 601 of Regulation
      S-K of the Commission; (iii) Tronox will cause its management to evaluate
      Tronox’s disclosure controls and procedures and internal control over financial
      reporting (including any change in internal control over financial reporting)
      as
      and when required pursuant to Exchange Act Rule 13a-15; (iv) Tronox will
      disclose in its periodic reports filed with the Commission information
      concerning Tronox management’s responsibilities for and evaluation of Tronox’s
      disclosure controls and procedures and internal control over financial reporting
      (including, without limitation, the annual management report and attestation
      report of Tronox’s independent auditors relating to internal control over
      financial reporting) as and when required under Items 307 and 308 of Regulation
      S-K and other applicable Commission rules; and (v) without limiting the general
      application of the foregoing, Tronox will, and will cause each other member
      of
      the Tronox Group to, maintain as of and after the Effective Date internal
      systems and procedures that will provide reasonable assurance that (A) the
      Financial Statements are reliable and timely prepared in accordance with GAAP
      and applicable law, (B) all transactions of members of the Tronox Group are
      recorded as necessary to permit the preparation of the Financial Statements,
      (C)
      the receipts and expenditures of members of the Tronox Group are authorized
      at
      the appropriate level within Tronox, and (D) unauthorized use or disposition
      of
      the assets of any member of the Tronox Group that could have material effect
      on
      the Financial Statements is prevented or detected in a timely manner.

     

    (b)  Tronox
      will, and will cause each member of the Tronox Group to, maintain a fiscal
      year
      that commences and ends on the same calendar days as Parent’s fiscal year
      commences and ends, and to maintain monthly accounting periods that commence
      and
      end on the same calendar days as Parent’s monthly accounting periods commence
      and end. 

     

    (c)  No
      later than eight Business Days after the end of each of Tronox’s monthly
      accounting periods following the Effective Date, Tronox will deliver to Parent
      a
      consolidated income statement and balance sheet for Tronox for such period
      in
      such format and detail as Parent may request, and no later than 12 Business
      Days
      after the end of each of Tronox’s fiscal quarters following the Effective Date,
      Tronox will deliver to Parent a consolidated statement of cash flows for Tronox
      for such period in such format and detail as Parent may request.

     

    
      
        
        

      

      
        -
          26
          -

        
          

        

      

      
        
        

      

    

    (d)  As
      soon as practicable, and in any event no later than the earlier of (x) 10
      Business Days prior to the date on which Tronox is required to file a Form
      10-Q
      or other document containing Quarterly Financial Statements with the Commission
      for each of Tronox’s first three fiscal quarters in each fiscal year and (y) 10
      Business Days prior to the date on which Parent has notified Tronox that Parent
      intends to file its Form 10-Q or other document containing quarterly financial
      statements with the Commission, Tronox will deliver to Parent drafts of the
      following: 

     

    (i)  the
      consolidated financial statements of the Tronox Group (and notes thereto) for
      such periods and for the period from the beginning of the current fiscal year
      to
      the end of such quarter, setting forth in each case in comparative form for
      each
      such fiscal quarter of Tronox the consolidated figures (and notes thereto)
      for
      the corresponding quarter and periods of the previous fiscal year and all in
      reasonable detail and prepared in accordance with Article 10 of Regulation
      S-X
      and GAAP, and 

     

    (ii)  a
      discussion and analysis by Tronox’s management of the Tronox Group’s financial
      condition and results of operations for such fiscal period, including, without
      limitation, an explanation of any material period-to-period change and any
      off-balance sheet transactions, all in reasonable detail and prepared in
      accordance with Item 303(b) and 305 of Regulation S-K; 

     

     provided,
      however,
      that Tronox will deliver such information at such earlier time upon Parent’s
      written request with 30 days’ notice resulting from Parent’s determination to
      accelerate the timing of the filing of its financial statements with the
      Commission. The information set forth in (i) and (ii) above is referred to
      in
      this Agreement as the “Quarterly
      Financial Statements.”
      No later than the earlier of (x) three Business Days prior to the date Tronox
      publicly files the Quarterly Financial Statements with the Commission or
      otherwise makes such Quarterly Financial Statements publicly available or (y)
      three Business Days prior to the date on which Parent has notified Tronox that
      Parent intends to file Parent’s quarterly financial statements with the
      Commission, Tronox will deliver to Parent the final form of its quarterly report
      on Form 10-Q and certifications thereof by Tronox’s principal executive and
      financial officers in substantially the forms required under Commission rules
      for periodic reports and in form and substance satisfactory to Parent;
provided,
      however,
      that Tronox may continue to revise such quarterly report on Form 10-Q prior
      to
      the filing thereof in order to make corrections and non-substantive changes
      which corrections and changes will be delivered by Tronox to Parent as soon
      as
      practicable, and in any event within eight hours thereafter; provided,
      further,
      that Parent’s and Tronox’s financial Representatives will actively consult with
      each other regarding any changes (whether or not substantive) which Tronox
      may
      consider making to its quarterly report on Form 10-Q and related disclosures
      during the three Business Days immediately prior to any anticipated filing
      with
      the Commission, with particular focus on any changes which would have an effect
      upon Parent’s financial statements or related disclosures. In addition to the
      foregoing, no quarterly report on Form 10-Q or any other document that refers,
      or contains information not previously publicly disclosed with respect to the
      ownership of Tronox by Parent, the separation of Tronox from Parent or the
      Exchange or Distribution will be filed with the Commission or otherwise made
      public by any Tronox Group member without the prior written consent of Parent.
      Notwithstanding anything to the contrary in this Section 6.1(d), Tronox will
      use
      its commercially reasonable efforts to file its quarterly report on Form 10-Q
      with the Commission on the same date that Parent files Parent’s quarterly
      financial statements with the Commission unless otherwise required by applicable
      law. 

     

    (e)  As
      soon as practicable, and in any event no later than 

     

    
      
        
        

      

      
        -
          27
          -

        
          

        

      

      
        
        

      

    

    (i)  the
      earlier of (x) 15 Business Days prior to the date on which Tronox is required
      to
      file a Form 10-K or other document containing its Annual Financial Statements
      with the Commission and (y) 15 Business Days prior to the date on which Parent
      has notified Tronox that Parent intends to file its Form 10-K or other document
      containing annual financial statements with the Commission, Tronox will deliver
      to Parent (A) any financial and other information and data with respect to
      the
      Tronox Group and their business, properties, financial position, results of
      operations and prospects as is reasonably requested by Parent in connection
      with
      the preparation of Parent’s financial statements and annual report on Form 10-K
      and (B) a discussion and analysis by Tronox’s management of the Tronox Group’s
      financial condition and results of operations for such year, including, without
      limitation, an explanation of any material period-to-period change and any
      off-balance sheet transactions, all in reasonable detail and prepared in
      accordance with Items 303(a) and 305 of Regulation S-K; and

     

    (ii)  the
      earlier of (x) 7 Business Days prior to the date on which Tronox is required
      to
      file a Form 10-K or other document containing its Annual Financial Statements
      with the Commission and (y) 7 Business Days prior to the date on which Parent
      has notified Tronox that Parent intends to file its Form 10-K or other document
      containing annual financial statements with the Commission, Tronox will deliver
      to Parent, drafts of the consolidated financial statements of the Tronox Group
      (and notes thereto) for such year, setting forth in each case in comparative
      form the consolidated figures (and notes thereto) for the previous fiscal years
      and all in reasonable detail and prepared in accordance with Regulation S-X
      and
      GAAP.

     

    The
      information set forth in (i) and (ii) above is referred to in this Agreement
      as
      the “Annual
      Financial Statements.”
      Tronox will deliver to Parent all revisions to such drafts as soon as any such
      revisions are prepared or made. No later than the earlier of (A) five Business
      Days prior to the date Tronox publicly files the annual report on Form 10-K
      with
      the Commission or otherwise makes such annual report on Form 10-K publicly
      available or (B) five Business Days prior to the date on which Parent has
      notified Tronox that Parent intends to file the Parent Annual Statements (as
      defined below) with the Commission, Tronox will deliver to Parent the final
      form
      of its annual report on Form 10-K and certifications thereof by Tronox’s
      principal executive and financial officers in substantially the forms required
      under Commission rules for periodic reports and in form and substance
      satisfactory to Parent; provided,
      however,
      that Tronox may continue to revise such annual report on Form 10-K prior to
      the
      filing thereof in order to make corrections and non-substantive changes which
      corrections and changes will be delivered by Tronox to Parent as soon as
      practicable, and in any event within eight hours thereafter; provided,
      further,
      that Parent and Tronox financial Representatives will consult actively with
      each
      other regarding any changes (whether or not substantive) which Tronox may
      consider making to its annual report on Form 10-K and related disclosures during
      the three Business Days immediately prior to any anticipated filing with the
      Commission, with particular focus on any changes which would have an effect
      upon
      Parent’s financial statements or related disclosures. In addition to the
      foregoing, no annual report on Form 10-K or any other document that refers,
      or
      contains information not previously publicly disclosed with respect, to the
      ownership of Tronox by Parent, the separation of Tronox from Parent or the
      Exchange or Distribution will be filed with the Commission or otherwise made
      public by any Tronox Group member without the prior written consent of Parent.
      In any event, Tronox will deliver to Parent, no later than three days prior
      to
      the date on which Parent has notified Tronox that Parent intends to file the
      Parent Annual Statements with the Commission, the final form of the annual
      report on Form 10-K accompanied by an opinion on the annual financial statements
      included therein by Tronox’s independent certified public accountants.
      Notwithstanding anything to the contrary in this Section 6.1(e), Tronox will
      use
      its commercially reasonable efforts to file its Annual Financial Statements
      with
      the Commission on the same date that Parent files the Parent Annual Statements
      with the Commission unless otherwise required by applicable law. 

     

    
      
        
        

      

      
        -
          28
          -

        
          

        

      

      
        
        

      

    

    (f)  Tronox
      will deliver to Parent all Quarterly and Annual Financial Statements of each
      Tronox Affiliate that is itself required to file financial statements with
      the
      Commission or otherwise make such financial statements publicly available,
      with
      such financial statements to be provided in the same manner and detail and
      on
      the same time schedule as those financial statements of Tronox required to
      be
      delivered to Parent pursuant to this Section 6.1. 

     

    (g)  With
      reasonable promptness, Tronox will deliver to Parent such additional financial
      and other information and data with respect to the Tronox Group and their
      business, properties, financial positions, results of operations and prospects
      as from time to time may be reasonably requested by Parent.

     

    Section
      6.2.  Conformity
      with Parent Financial Presentation.
      All information provided by any Tronox Group member to Parent or filed with
      the
      Commission pursuant to Section 6.1(a) through (g) inclusive will be consistent
      in terms of detail and otherwise with Parent’s policies with respect to the
      application of GAAP and practices in effect on the Effective Date with respect
      to the provision of such financial information by such Tronox Group member
      to
      Parent (and, where appropriate, as presently presented in financial reports
      to
      the Board), with such changes therein as may be requested by Parent from time
      to
      time consistent with changes in such accounting principles and practices.

     

    Section
      6.3.  Tronox
      Reports Generally.
      Each Tronox Group member that files information with the Commission will deliver
      to Parent the following: 

     

    (a)  substantially
      final drafts, as soon as the same are prepared, of (x) all reports, notices
      and
      proxy and information statements to be sent or made available by such Tronox
      Group member to its respective security holders, (y) all regular, periodic
      and
      other reports to be filed or furnished under Sections 13, 14 and 15 of the
      Exchange Act (including Reports on Forms 10-K, 10-Q and 8-K and Annual Reports
      to Stockholders), and (z) all registration statements and prospectuses to be
      filed by such Tronox Group member with the Commission or any securities exchange
      pursuant to the listed company manual (or similar requirements) of such exchange
      (collectively, the documents identified in clauses (x), (y) and (z) are referred
      to in this Agreement as “Tronox
      Public Documents”),
      and 

     

    (b)  as
      soon as practicable, but in no event later than four Business Days (other than
      with respect to 8-Ks) prior to the earliest of the dates the same are printed,
      sent or filed, current drafts of all such Tronox Public Documents and, with
      respect to 8-Ks, as soon as practicable, but in no event later than two Business
      Days prior to the earliest of the dates the same are printed, sent or
      filed;

     

    
      
        
        

      

      
        -
          29
          -

        
          

        

      

      
        
        

      

    

    provided,
      however,
      that, in each case, Tronox may continue to revise such Tronox Public Documents
      prior to the filing thereof in order to make corrections and non-substantive
      changes which corrections and changes will be delivered by Tronox to Parent
      as
      soon as practicable, and in any event within eight hours thereafter;
provided,
      further,
      that Parent and Tronox financial Representatives will consult actively with
      each
      other regarding any changes (whether or not substantive) which Tronox may
      consider making to any of its Tronox Public Documents and related disclosures
      prior to any anticipated filing with the Commission, with particular focus
      on
      any changes which would have an effect upon Parent’s financial statements or
      related disclosures. In addition to the foregoing, no Tronox Public Document
      or
      any other document which refers, or contains information not previously publicly
      disclosed with respect, to the ownership of Tronox by Parent, the separation
      of
      Tronox from Parent or the Exchange or Distribution will be filed with the
      Commission or otherwise made public by any Tronox Group member without the
      prior
      written consent of Parent. 

     

    Section
      6.4.  Budgets
      and Financial Projections.
      Tronox will, as promptly as practicable, deliver to Parent copies of all annual
      and other budgets and financial projections (consistent in terms of format
      and
      detail and otherwise required by Parent) relating to Tronox on a consolidated
      basis and will provide Parent an opportunity to meet with management of Tronox
      to discuss such budgets and projections. 

     

    Section
      6.5.  Press
      Releases and Similar Information.
      Tronox and Parent will consult with each other as to the timing of their annual
      and quarterly earnings releases and any interim financial guidance for a current
      or future period and will give each other the opportunity to review the
      information therein relating to the Tronox Group and to comment thereon. Parent
      and Tronox will make reasonable efforts to issue their respective annual and
      quarterly earnings releases at approximately the same time on the same date.
      No
      later than eight hours prior to the time and date that a party intends to
      publish its regular annual or quarterly earnings release or any financial
      guidance for a current or future period, such party will deliver to the other
      party copies of substantially final drafts of all press releases and other
      statements to be made available by any member of that party’s Group to employees
      of any member of that party’s Group or to the public concerning any matters that
      could be reasonably likely to have a material financial impact on the earnings,
      results of operations, financial condition or prospects of any Tronox Group
      member. In addition, prior to the issuance of any such press release or public
      statement that meets the criteria set forth in the preceding two sentences,
      the
      issuing party will consult with the other party regarding any changes (other
      than typographical or other similar minor changes) to such substantially final
      drafts. Immediately following the issuance thereof, the issuing party will
      deliver to the other party copies of final drafts of all press releases and
      other public statements. 

     

    Section
      6.6.  Cooperation
      on Parent Filings. (a)
      Tronox will cooperate fully, and cause Tronox’s Auditors to cooperate fully,
      with Parent to the extent requested by Parent in the preparation of Parent’s
      public earnings or other press releases, Quarterly Reports on Form 10-Q, Annual
      Reports to Stockholders, Annual Reports on Form 10-K, any Current Reports on
      Form 8-K and any other proxy, information and registration statements, reports,
      notices, prospectuses and any other filings made by Parent with the Commission,
      any national securities exchange or otherwise made publicly available
      (collectively, the “Parent
      Public Filings”).

     

    
      
        
        

      

      
        -
          30
          -

        
          

        

      

      
        
        

      

    

    (b)  Tronox
      agrees to provide to Parent all information that Parent reasonably requests
      in
      connection with any Parent Public Filings or that, in the judgment of Parent’s
      legal department, is required to be disclosed or incorporated by reference
      therein under any law, rule or regulation. Tronox will provide such information
      in a timely manner on the dates requested by Parent (which may be earlier than
      the dates on which Tronox otherwise would be required hereunder to have such
      information available) to enable Parent to prepare, print and release all Parent
      Public Filings on such dates as Parent will determine but in no event later
      than
      as required by applicable law. Tronox will use its commercially reasonable
      efforts to cause Tronox’s Auditors to consent to any reference to them as
      experts in any Parent Public Filings required under any law, rule or regulation.
      

     

    (c)  If
      and to the extent requested by Parent, Tronox diligently and promptly will
      review all drafts of such Parent Public Filings and prepare in a diligent and
      timely fashion any portion of such Parent Public Filing pertaining to Tronox.
      

     

    (d)  Prior
      to any printing or public release of any Parent Public Filing, an appropriate
      executive officer of Tronox will, if requested by Parent, certify that the
      information relating to any Tronox Group member or the business conducted by
      any
      Tronox Group member in such Parent Public Filing is accurate, true, complete
      and
      correct in all material respects. 

     

    (e)  Unless
      required by law, rule or regulation, Tronox will not release publicly any
      financial or other information which conflicts with the information with respect
      to any Tronox Group member or the business conducted by any Tronox Group member
      that is included in any Parent Public Filing without Parent’s prior written
      consent. Prior to the release or filing thereof, Parent will provide Tronox
      with
      a draft of any portion of a Parent Public Filing containing information relating
      to the Tronox Group and will give Tronox an opportunity to review such
      information and comment thereon; provided,
      that Parent will determine in its sole and absolute discretion the final form
      and content of all Parent Public Filings.

     

    Section
      6.7.  Termination
      of Article VI.
      The provisions of this Article VI shall apply for as long as Parent is required
      to consolidate the results of operations and financial position of Tronox and
      any other members of the Tronox Group or to account for its investment in Tronox
      under the equity method of accounting (determined in accordance with GAAP and
      consistent with Commission reporting requirements).

     

    ARTICLE
      VII

    AUDITORS
      AND ACCOUNTING

     

    Section
      7.1.  Auditors
      and Audits; Annual Statements and Accounting. (a) Unless
      required by law, Tronox will not select a different accounting firm than Ernst
      & Young LLP (or its affiliate accounting firms) (unless so directed by
      Parent in accordance with a change by Parent in its accounting firm) to serve
      as
      its (and the Tronox Affiliates’) independent certified public accountants
      (“Tronox’s
      Auditors”)
      without Parent’s prior written consent (which will not be unreasonably
      withheld); provided,
      however,
      that, to the extent any such Tronox Affiliates are currently using a different
      accounting firm to serve as their independent certified public accountants,
      such
      Tronox Affiliates may continue to use such accounting firm provided such
      accounting firm is reasonably satisfactory to Parent.

     

    
      
        
        

      

      
        -
          31
          -

        
          

        

      

      
        
        

      

    

    (b)  Tronox
      will use its commercially reasonable efforts to enable Tronox’s Auditors to
      complete their audit such that they will date their opinion on the Annual
      Financial Statements on the same date that Parent’s independent certified public
      accountants (“Parent’s
      Auditors”)
      date their opinion on Parent’s audited annual financial statements (the
“Parent
      Annual Statements”),
      and to enable Parent to meet its timetable for the printing, filing and public
      dissemination of the Parent Annual Statements, all in accordance with Article
      VI
      hereof and as required by applicable law. 

     

    (c)  Tronox
      will provide to Parent on a timely basis all information that Parent reasonably
      requires to meet its schedule for the preparation, printing, filing, and public
      dissemination of the Parent Annual Statements in accordance with Article VI
      hereof and as required by applicable law. Without limiting the generality of
      the
      foregoing, Tronox will provide all required financial information with respect
      to the Tronox Group to Tronox’s Auditors in a sufficient and reasonable time and
      in sufficient detail to permit Tronox’s Auditors to take all steps and perform
      all reviews necessary to provide sufficient assistance to Parent’s Auditors with
      respect to information to be included or contained in the Parent Annual
      Statements. 

     

    (d)  Tronox
      will authorize Tronox’s Auditors to make available to Parent’s Auditors both the
      personnel who performed, or are performing, the annual audit of Tronox and
      work
      papers related to the annual audit of Tronox, in all cases within a reasonable
      time prior to Tronox’s Auditors’ opinion date, so that Parent’s Auditors are
      able to perform the procedures they consider necessary to take responsibility
      for the work of Tronox’s Auditors as it relates to Parent’s Auditors’ report on
      Parent’s statements, all within sufficient time to enable Parent to meet its
      timetable for the printing, filing and public dissemination of the Parent Annual
      Statements. 

     

    (e)  If
      Parent determines in good faith that there may be some inaccuracy in a Tronox
      Group member’s financial statements or deficiency in a Tronox Group member’s
      internal accounting controls or operations that could materially impact Parent’s
      financial statements, at Parent’s request, Tronox will provide Parent’s internal
      auditors with access to the Tronox Group’s books and records so that Parent may
      conduct reasonable audits relating to the financial statements provided by
      Tronox under this Agreement as well as to the internal accounting controls
      and
      operations of the Tronox Group. 

     

    Section
      7.2.  Notice
      of Changes. Subject
      to Section 7.1, Tronox will give Parent as much prior notice as reasonably
      practicable of any proposed determination of, or any significant changes in,
      Tronox’s accounting estimates or accounting principles from those in effect on
      the Effective Date. Tronox will consult with Parent and, if requested by Parent,
      Tronox will consult with Parent’s Auditors with respect thereto. Tronox will not
      make any such determination or changes without Parent’s prior written consent if
      such a determination or a change would be sufficiently material to be required
      to be disclosed in Tronox’s or Parent’s financial statements as filed with the
      Commission or otherwise publicly disclosed therein. 

     

    Section
      7.3.  Accounting
      Changes Requested by Parent. Notwithstanding
      Section 7.2 above, Tronox will make any changes in its accounting estimates
      or
      accounting principles that reasonably are requested by Parent in order for
      Tronox’s accounting practices and principles to be consistent with those of
      Parent.

     

    
      
        
        

      

      
        -
          32
          -

        
          

        

      

      
        
        

      

    

    Section
      7.4.  Special
      Reports of Deficiencies or Violations. Tronox
      will report in reasonable detail to Parent the following events or circumstances
      promptly after any executive officer of Tronox or any member of the Tronox
      Board
      of Directors becomes aware of such matter: 

     

    (a)  all
      significant deficiencies and material weaknesses in the design or operation
      of
      internal control over financial reporting which are reasonably likely to
      adversely affect Tronox’s ability to record, process, summarize and report
      financial information; 

     

    (b)  any
      fraud, whether or not material, that involves management or other employees
      who
      have a significant role in Tronox’s internal control over financial reporting;

     

    (c)  any
      illegal act within the meaning of Section 10A(b) and (f) of the Exchange Act;
      and 

     

    (d)  any
      report of a material violation of law that an attorney representing any Tronox
      Group member has formally made to any officers or directors of Tronox pursuant
      to the Commission’s attorney conduct rules (17 C.F.R. Part 205).

     

    Section
      7.5.  Termination
      of Article VII.
      The provisions of this Article VII shall apply for as long as Parent is required
      to consolidate the results of operations and financial position of Tronox and
      any other members of the Tronox Group or to account for its investment in Tronox
      under the equity method of accounting (determined in accordance with GAAP and
      consistent with Commission reporting requirements).

     

    ARTICLE
      VIII

    CORPORATE
      GOVERNANCE

     

    Section
      8.1.  Stockholder
      Voting Rights.
      For as long as the Parent Group owns beneficially shares representing at least
      a
      majority of the total voting power of all classes of the then outstanding shares
      of capital stock of Tronox entitled to vote generally in the election of
      directors (the “Tronox
      Voting Stock”),
      then the Amended and Restated Certificate of Incorporation and By-laws of Tronox
      shall provide that: 

     

    (i)  any
      director or the entire Tronox Board of Directors may be removed from office
      at
      any time with or without cause, but only by the affirmative vote of the holders
      of at least a majority of the total voting power of the Tronox Voting
      Stock;

     

    (ii)  any
      vacancies on the Tronox Board of Directors caused by an action of the
      stockholders shall be filled by the affirmative vote of the holders of at least
      a majority of the total voting power of the Tronox Voting Stock;

     

    (iii)  the
      affirmative vote of the holders of at least a majority of the total voting
      power
      of the Tronox Voting Stock shall be required to alter, amend or repeal any
      provision of the Certificate of Incorporation or the Bylaws (as each may be
      amended from time to time) of Tronox;

     

    (iv)  any
      action required or permitted to be taken at any annual or special meeting of
      Tronox stockholders may be taken without a meeting, without prior notice and
      without a vote, if a consent in writing, setting forth the action so taken,
      shall be signed by the holders of outstanding capital stock having not less
      than
      the minimum number of votes that would be necessary to authorize or take such
      action at a meeting at which all shares of capital stock entitled to vote
      thereon were present and voted; and

     

    
      
        
        

      

      
        -
          33
          -

        
          

        

      

      
        
        

      

    

    (v)  special
      meetings of Tronox stockholders may be called by Parent.

     

    Section
      8.2.  Corporate
      Governance. (a)
      Tronox will not, without the prior written consent of Parent (which Parent
      may
      withhold in its sole and absolute discretion), take, or cause to be taken,
      directly or indirectly, any action, including making or failing to make any
      election under the law of any state, which has the effect, directly or
      indirectly, of restricting or limiting the ability of Parent freely to sell,
      transfer, assign, pledge or otherwise dispose of shares of Tronox Class B Common
      Stock or would restrict or limit the rights of any transferee of Parent as
      a
      holder of Tronox Class B Common Stock. Without limiting the generality of the
      foregoing, Tronox will not, without the prior written consent of Parent (which
      Parent may withhold in its sole and absolute discretion), take any action,
      or
      take any action to recommend to its stockholders any action, which would, among
      other things, limit the legal rights of, or deny any benefit to, Parent as
      a
      Tronox stockholder either (i) solely as a result of the amount of Tronox Class
      B
      Common Stock owned by Parent or (ii) in a manner not applicable to Tronox
      stockholders generally. 

     

    (b)  Tronox
      shall not, without the prior written consent of Parent (which it may withhold
      in
      its sole and absolute discretion), issue any shares of Tronox capital stock
      or
      any rights, warrants or options to acquire Tronox capital stock (including,
      without limitation, securities convertible into or exchangeable for Tronox
      capital stock), if after giving effect to such issuances and considering all
      of
      the shares of Tronox capital stock acquirable pursuant to such rights, warrants
      and options to be outstanding on the date of such issuance (whether or not
      then
      exercisable), Parent would own directly or indirectly less than (i) a majority
      of the outstanding shares of Tronox Common Stock (on a fully-diluted basis)
      or
      (ii) 80% of the total voting power of all classes of the then outstanding Tronox
      Voting Stock; provided
      that the restriction contained in Section 8.2(b)(i) shall not apply to any
      shares of Tronox Common Stock or any options to acquire Tronox Common Stock
      issued to directors, officers or employees of Tronox in connection with the
      performance of services unless, after giving effect to such issuance, any such
      director, officer or employee would own 5% or more of the outstanding shares
      of
      Tronox Common Stock (on a fully diluted basis). Tronox shall not, without the
      prior written consent of Parent (which it may withhold in its sole discretion
      and absolute discretion) issue any share of non-voting capital stock of
      Tronox.

     

    (c)  To
      the extent that Parent is a party to any agreements that provide that certain
      actions or inactions of Parent Affiliates (which for purposes of such agreement
      includes any member of the Tronox Group) may result in Parent being in breach
      of
      or in default under such agreements and Parent has advised Tronox of the
      existence, and has furnished Tronox with copies, of such agreements (or the
      relevant portions thereof), Tronox will not take or fail to take, as applicable,
      and Tronox will cause the other members of the Tronox Group not to take or
      fail
      to take, as applicable, any actions that reasonably could result in Parent
      being
      in breach of or in default under any such agreement. The parties acknowledge
      and
      agree that from time to time Parent may in good faith (and not solely with
      the
      intention of imposing restrictions on Tronox pursuant to this covenant) enter
      into additional agreements or amendments to existing agreements that provide
      that certain actions or inactions of Parent Subsidiaries or Affiliates
      (including, for purposes of this Section 8.2(c), members of the Tronox Group)
      may result in Parent being in breach of or in default under such agreements.
      In
      such event, provided Parent has notified Tronox of such additional agreements
      or
      amendments to existing agreements, Tronox will not thereafter take or fail
      to
      take, as applicable, and Tronox will cause the other members of the Tronox
      Group
      not to take or fail to take, as applicable, any actions that reasonably could
      result in Parent being in breach of or in default under any such additional
      agreements or amendments to existing agreements. Parent acknowledges and agrees
      that Tronox will not be deemed in breach of this Section 8.2(c) to the extent
      that, prior to being notified by Parent of an additional agreement or an
      amendment to an existing agreement pursuant to this Section 8.2(c), a Tronox
      Group member already has taken or failed to take one or more actions that would
      otherwise constitute a breach of this Section 8.2(c) had such action(s) or
      inaction(s) occurred after such notification; provided,
      that Tronox does not, after notification by Parent, take any further action
      or
      fail to take any action that contributes further to such breach or default.
      Tronox agrees that any Information provided to it pursuant to this Section
      8.2(c) will constitute Information that is subject to Tronox’s obligations under
      Article IX of this Agreement.

     

    
      
        
        

      

      
        -
          34
          -

        
          

        

      

      
        
        

      

    

    (d)  The
      provisions of this Section 8.2 shall apply for so long as the Parent Group
      owns
      beneficially shares representing at least a majority of total voting power
      of
      the Tronox Voting Stock; provided
      that the provisions of Section 8.2(b) shall apply for so long as Parent or
      Worldwide owns a majority of the Tronox Common Stock.

     

    Section
      8.3.  Charter,
      Bylaws and other Governance Documents.
      At or prior to the Closing Date, Parent and Tronox each shall take all actions
      that may be required to provide for the adoption by Tronox of the Amended and
      Restated Certificate of Incorporation of Tronox, substantially in the form
      attached as Exhibit B, the Amended and Restated Bylaws of Tronox, substantially
      in the form attached as Exhibit C and the Rights Agreement of Tronox,
      substantially in the form attached as Exhibit D.

     

    Section
      8.4.  Incurrence
      of Indebtedness. (a)
      Tronox covenants and agrees that after the consummation of the Initial Public
      Offering and through the Separation Date, Tronox will not, and Tronox will
      not
      permit any other member of the Tronox Group to, without Parent’s prior written
      consent (which Parent may withhold in its sole and absolute discretion),
      directly or indirectly, incur any Indebtedness. 

     

    (b)  Tronox
      hereby covenants and agrees that, for so long as Tronox constitutes a
“subsidiary,” as such term is defined, any Contract pursuant to which any member
      of the Parent Group is a party with respect to Indebtedness incurred by Parent
      or any member of the Parent Group, Tronox will not, and Tronox will not permit
      any other member of the Tronox Group to, without Parent’s prior written consent
      (which Parent may withhold in its sole and absolute discretion), create, incur,
      assume or suffer to exist any Indebtedness if the incurrence of such
      Indebtedness would cause Parent to be in breach of or in default under such
      Contract the existence of which Parent has advised Tronox and of which Parent
      has furnished Tronox a copy, or if the incurrence of such Tronox Indebtedness
      would be reasonably likely to adversely impact the credit rating of any
      Indebtedness of Parent. 

     

    (c)  In
      order to implement this Section 8.4, Tronox will notify Parent in writing at
      least 45 days prior to the time it or any other member of the Tronox Group
      contemplates incurring any Indebtedness and will either (i) demonstrate to
      Parent’s satisfaction that this Section 8.4 will not be violated by such
      proposed Indebtedness or (ii) obtain Parent’s prior written consent to the
      incurrence of such proposed Indebtedness. Any such written notification from
      Tronox to Parent will include documentation of any existing Indebtedness of
      the
      Tronox Group and estimated Indebtedness of the Tronox Group after giving effect
      to such proposed incurrence of such Indebtedness. Parent will have the right
      to
      verify the accuracy of such information and Tronox will cooperate fully with
      Parent in such effort (including, without limitation, by providing Parent with
      access to the working papers and underlying documentation related to any
      calculations used in determining such information).

     

    
      
        
        

      

      
        -
          35
          -

        
          

        

      

      
        
        

      

    

    ARTICLE
      IX

    EXCHANGE
      OF INFORMATION; CONFIDENTIALITY; COOPERATION IN ACTIONS

     

    Section
      9.1.  Agreement
      for Exchange of Information; Archives. (a)
      Each of Parent and Tronox, on behalf of its respective Group, agrees to provide,
      or cause to be provided, to the other Group, at any time before or after the
      Separation Date, as soon as reasonably practicable after written request
      therefor, any Information in the possession or under the control of such
      respective Group which the requesting party reasonably needs (i) to comply
      with
      reporting, disclosure, filing or other requirements imposed on the requesting
      party (including under applicable securities or tax laws) by a Governmental
      Authority having jurisdiction over the requesting party, (ii) for use in any
      other judicial, regulatory, administrative, tax or other proceeding or in order
      to satisfy audit, accounting, claims, regulatory, litigation, tax or other
      similar requirements, in each case other than claims or allegations that one
      party to this Agreement has against the other, or (iii) subject to the foregoing
      clause (ii), to comply with its obligations under this Agreement or any
      Ancillary Agreement; provided,
      however,
      that in the event that any party determines that any such provision of
      Information could be commercially detrimental, violate any law or agreement,
      or
      waive any attorney-client privilege, the parties shall take all reasonable
      measures to permit the compliance with such obligations in a manner that avoids
      any such harm or consequence.

     

    (b)  After
      the Closing Date, each of the Parent Group on the one hand, and the Tronox
      Group
      on the other hand, shall provide to such other Group reasonable access during
      regular business hours (as in effect from time to time) to Information that
      relates to the business and operations of such Group that are located in
      archives retained or maintained by such other Group. Each Group may, at their
      own expense, obtain copies of, and shall have reasonable access to, such
      Information for bona fide business purposes.

     

    Section
      9.2.  Ownership
      of Information.
      Any Information owned by one Group that is provided to a requesting party
      pursuant to Section 9.1 shall be deemed to remain the property of the providing
      party. Unless specifically set forth herein or in any Ancillary Agreement,
      nothing contained in this Agreement shall be construed as granting or conferring
      rights of license or otherwise in any such Information.

     

    Section
      9.3.  Compensation
      for Providing Information.
      The party requesting Information agrees to reimburse the other party for the
      reasonable out-of-pocket costs paid to third parties, if any, of creating,
      gathering and copying such Information, to the extent that such costs are
      incurred for the benefit of the requesting party. Except as may be otherwise
      specifically provided elsewhere in this Agreement or in any Ancillary Agreement,
      such costs shall be computed in accordance with the providing party’s standard
      methodology and procedures.

     

    
      
        
        

      

      
        -
          36
          -

        
          

        

      

      
        
        

      

    

    Section
      9.4.  Record
      Retention.
      To facilitate the possible exchange of Information pursuant to this Article
      IX
      and other provisions of this Agreement and the Ancillary Agreements after the
      Separation Date, the parties agree to use their commercially reasonable efforts
      to retain all Information in their respective possession or control on the
      Separation Date in accordance with the policies of Parent as in effect on the
      Closing Date or such other policies as may be reasonably adopted by the
      appropriate party after the Closing Date. No party will destroy, or permit
      any
      members of its Group to destroy, any Information that the other party may have
      the right to obtain pursuant to this Agreement prior to the third anniversary
      of
      the date hereof without first using its commercially reasonable efforts to
      notify the other party of the proposed destruction and giving the other party
      the opportunity to take possession of such information prior to such
      destruction; provided,
      however,
      that in the case of any Information relating to Taxes, employee benefits or
      any
      Environmental Law, such period shall be extended to the expiration of the
      applicable statute of limitations (giving effect to any extensions
      thereof).

     

    Section
      9.5.  Limitations
      of Liability.
      No party shall have any liability to any other party in the event that any
      Information exchanged or provided pursuant to this Agreement that is an estimate
      or forecast, or that is based on an estimate or forecast, is found to be
      inaccurate in the absence of willful misconduct by the party providing such
      Information. No party shall have any liability to any other party if any
      Information is destroyed after commercially reasonable efforts have been taken
      by such party to comply with the provisions of Section 9.4.

     

    Section
      9.6.  Other
      Agreements Providing for Exchange of Information.
      The rights and obligations granted under this Article IX are subject to any
      specific limitations, qualifications or additional provisions on the sharing,
      exchange, retention or confidential treatment of Information set forth in any
      Ancillary Agreement.

     

    Section
      9.7.  Confidentiality. (a)
      Subject to Section 9.8, each of Parent and Tronox, on behalf of itself and
      each
      member of its respective Group, agrees to hold, and to cause its respective
      directors, officers, employees, agents, accountants, counsel and other advisors
      and representatives to hold, in strict confidence, with at least the same degree
      of care that applies to Parent's confidential and proprietary information
      pursuant to policies in effect as of the Closing Date, all Information
      concerning each such other Group that is either in its possession (including
      Information in its possession prior to the date hereof, the Closing Date or
      the
      Separation Date) or furnished by any such other Group or its respective
      directors, officers, employees, agents, accountants, counsel and other advisors
      and representatives at any time pursuant to this Agreement, any Ancillary
      Agreement or otherwise, and shall not use any such Information other than for
      such purposes as shall be expressly permitted hereunder or thereunder, except,
      in each case, to the extent that such Information has been (i) in the public
      domain through no fault of such party or any member of such party’s Group or any
      of their respective directors, officers, employees, agents, accountants, counsel
      and other advisors and representatives, (ii) later lawfully acquired from other
      sources by such party (or any member of such party's Group) which sources are
      not themselves bound by a confidentiality obligation, or (iii) independently
      generated without reference to any proprietary or confidential Information
      of
      the other party.

     

    
      
        
        

      

      
        -
          37
          -

        
          

        

      

      
        
        

      

    

    (b)  Each
      party agrees not to release or disclose, or permit to be released or disclosed,
      any such Information to any other Person, except its directors, officers,
      employees, agents, accountants, counsel and other advisors and representatives
      who need to know such Information (who shall be advised of their obligations
      hereunder with respect to such Information), except in compliance with Section
      9.8. Without limiting the foregoing, when any Information is no longer needed
      for the purposes contemplated by this Agreement or any Ancillary Agreement,
      each
      party will promptly after request of the other party either return to the other
      party all Information in a tangible form (including all copies thereof and
      all
      notes, extracts or summaries based thereon) or certify to the other party that
      it has destroyed such Information (and such copies thereof and such notes,
      extracts or summaries based thereon).

     

    (c)  In
      furtherance and not in limitation of the obligations set forth in this Section
      9.7, each of Parent and Tronox shall, and shall cause members of their
      respective Group to, remove and destroy any hard drives or other electronic
      data
      storage devices from any computer or server that is reasonably likely to contain
      Information that is protected by this Section 9.7 and that is transferred or
      sold to a third party or otherwise disposed of following the Closing Date.
      

     

    Section
      9.8.  Protective
      Arrangements.
      In the event that any party or any member of its Group either determines on
      the
      advice of its counsel that it is required to disclose any Information pursuant
      to applicable law or receives any demand under lawful process or from any
      Governmental Authority to disclose or provide Information of any other party
      (or
      any member of any other party's Group) that is subject to the confidentiality
      provisions hereof, such party shall notify the other party prior to disclosing
      or providing such Information and shall cooperate at the expense of the
      requesting party in seeking any reasonable protective arrangements requested
      by
      such other party. Subject to the foregoing, the Person that received such
      request may thereafter disclose or provide Information to the extent required
      by
      such law (as so advised by counsel) or by lawful process or such Governmental
      Authority.

     

    Section
      9.9.  Cooperation
      with respect to Actions.
      (a)
      Without limiting the foregoing, the parties shall cooperate and consult to
      the
      extent reasonably necessary with respect to any Actions. Without limiting any
      provision of this Section, each of the parties agrees to cooperate, and to
      cause
      each member of its respective Group to cooperate, with each other in the defense
      of any infringement or similar claim with respect any intellectual property
      and
      shall not claim to acknowledge, or permit any member of its respective Group
      to
      claim to acknowledge, the validity or infringing use of any intellectual
      property of a third Person in a manner that would hamper or undermine the
      defense of such infringement or similar claim.

     

    (b)  In
      connection with any matter contemplated by this Section 9.9, the parties will
      enter into a mutually acceptable joint defense agreement so as to maintain,
      to
      the extent practicable, any applicable attorney-client privilege or work product
      immunity of any member of any Group.

     

    
      
        
        

      

      
        -
          38
          -

        
          

        

      

      
        
        

      

    

    (c)  After
      the Closing Date, except in the case of an adversarial Action by one party
      against another party, each party hereto shall use its commercially reasonable
      efforts to make available to each other party, upon written request, the former,
      current and future directors, officers, employees, other personnel and agents
      of
      the members of its respective Group as witnesses and any books, records or
      other
      documents within its control or which it otherwise has the ability to make
      available, to the extent that any such person (giving consideration to business
      demands of such directors, officers, employees, other personnel and agents)
      or
      books, records or other documents may reasonably be required in connection
      with
      any Action in which the requesting party may from time to time be involved,
      regardless of whether such Action is a matter with respect to which
      indemnification may be sought hereunder. The requesting party shall bear all
      costs and expenses in connection therewith.

     

    ARTICLE
      X

    DISPUTE
      RESOLUTION

     

    Section
      10.1.  Disputes.
      The parties shall attempt to finally resolve any claim, controversy, or dispute
      arising out of or relating to this Agreement, or the threatened, alleged or
      actual breach or default thereof by either party, as hereinafter set forth.
      The
      resolution procedures shall be invoked when either party sends a written notice
      to the other party of the occurrence of a claim, controversy or dispute, or
      of
      the threatened, alleged or actual breach of this Agreement. The notice shall
      describe the nature of the dispute and the party’s position with respect to such
      dispute. The parties shall expeditiously schedule consultations or a meeting
      between knowledgeable representatives designated by each party in an effort
      to
      resolve the dispute informally. Such consultations or meetings shall in no
      event
      occur later than 10 days after delivery of the written notice by a party under
      this Section 10.1. If the parties are unable to resolve the dispute within
      15
      days after consultations commence, the dispute shall be submitted in writing
      to
      an appropriate executive officer of each party. The executive officers shall
      attempt to resolve any dispute submitted to them for resolution in accordance
      with this Section 10.1 through consultation and negotiation, within 30 days
      after such submittal (or such longer period as may be mutually agreed by the
      parties). The executive officers may request the assistance of an independent
      mediator if they believe that such a mediator would be of assistance to the
      efficient resolution of the dispute.

     

    ARTICLE
      XI

    OTHER
      OBLIGATIONS OF THE PARTIES

     

    Section
      11.1.  Further
      Assurances. (a)
      In addition to the actions specifically provided for elsewhere in this
      Agreement, each of the parties hereto shall use its commercially reasonable
      efforts, prior to, on and after the Closing Date, to take, or cause to be taken,
      all actions, and to do, or cause to be done, all things, reasonably necessary,
      proper or advisable under applicable laws, regulations and agreements to
      consummate and make effective the transactions contemplated by this Agreement
      and the Ancillary Agreements.

     

    (b)  Without
      limiting the foregoing, prior to, on and after the Closing Date, each party
      hereto shall cooperate with the other party, and without any further
      consideration, but at the expense of the requesting party, to execute and
      deliver, or use its commercially reasonable efforts to cause to be executed
      and
      delivered, all instruments, including instruments of conveyance, assignment
      and
      transfer, and to make all filings with, and to obtain all Consents of, any
      Governmental Authority or any other Person under any permit, license, agreement,
      indenture or other instrument (including any Consents or Governmental
      Approvals), and to take all such other actions as such party may reasonably
      be
      requested to take by any other party hereto from time to time, consistent with
      the terms of this Agreement and the Ancillary Agreements, in order to effectuate
      the provisions and purposes of this Agreement and the Ancillary Agreements
      and
      the other transactions contemplated hereby and thereby.

     

    
      
        
        

      

      
        -
          39
          -

        
          

        

      

      
        
        

      

    

    Section
      11.2.  Restrictions
      on Business Activities.
      (a)
      For the period beginning on the Separation Date and ending on the fourth
      anniversary of the Separation Date, Parent agrees that neither it nor any member
      of the Parent Group will engage in, directly, by joint venture, or otherwise,
      or
      be the owner of a business entity that primarily engages in, the manufacture
      and
      sale of titanium dioxide pigment (such business, a “Competitive
      Business”).

     

    (b)  The
      restrictions contained in Section 11.2 shall not:

     

    (i)  prohibit
      Parent or any member of the Parent Group from holding less than 5% of the
      outstanding capital stock of any publicly traded corporation; 

     

    (ii)  prohibit
      or otherwise restrict Parent or any member of the Parent Group from acquiring
      an
      interest, by joint venture, merger or other business combination, in a business
      (the “Acquired
      Business”)
      that includes a Competitive Business so long as the aggregate revenues derived
      by the Competitive Business included in the Acquired Business during the four
      most recently completed fiscal quarters for such Acquired Business prior to
      the
      date on which the definitive agreement for the acquisition of the Acquired
      Business is entered into do not exceed 10% of the aggregate revenues derived
      by
      the Acquired Business during such four fiscal quarters;

     

    (iii)  be
      deemed to apply to any Person that is not a member of the Parent Group at the
      time of the entering into a transaction contemplated by clauses (A), (B) or
      (C)
      of this clause (iii) that (A) acquires the capital stock or other equity
      securities of Parent or any member of the Parent Group, (B) acquires all or
      substantially all of the assets of Parent or any member of the Parent Group,
      or
      (C) consummates any merger, consolidation, business combination, share exchange,
      reorganization or similar transaction involving Parent or any member of the
      Parent Group, in each case where
      immediately after giving effect to such transaction such Person or Person’s
      stockholders own more than 50% of the outstanding shares of common stock or
      economic interests of the surviving, resulting, successor or purchasing entity
      (each of clauses (A)-(C) being an “Acquisition
      Transaction”);
      or

     

    (iv)  be
      deemed to apply to Parent if Parent is the subject of the Acquisition
      Transaction or any member of the Parent Group if such member is the subject
      of
      the Acquisition Transaction.

     

    ARTICLE
      XII

    MISCELLANEOUS

     

    Section
      12.1.  Termination.
      This Agreement and each Ancillary Agreement may be terminated at any time prior
      to the Closing Date by and in the sole discretion of the Parent without the
      approval of Tronox, in which case neither Parent or Worldwide on the one hand,
      nor Tronox on the other hand, will have any liability to the other hereunder.
      The obligations of the parties under Article IV (including the completion of
      the
      Separation and the Section 355 Transaction) may be terminated if, at any time
      after the Effective Date, Parent determines, in its sole and absolute
      discretion, that the Separation would not be in the best interests of Parent
      or
      its stockholders.

     

    
      
        
        

      

      
        -
          40
          -

        
          

        

      

      
        
        

      

    

    Section
      12.2.  Counterparts;
      Entire Agreement; Corporate Power. (a)
      This Agreement and each Ancillary Agreement may be executed in one or more
      counterparts, all of which shall be considered one and the same agreement,
      and
      shall become effective when one or more counterparts have been signed by each
      of
      the parties and delivered to the other party. 

     

    (b)  This
      Agreement and the Ancillary Agreements, and the exhibits, annexes and appendices
      hereto and thereto, contain the entire agreement between the parties with
      respect to the subject matter hereof, supersede all previous agreements,
      negotiations, discussions, writings, understandings, commitments and
      conversations with respect to such subject matter and there are no agreements
      or
      understandings between the parties other than those set forth or referred to
      herein or therein. 

     

    (c)  Each
      of the parties represents to the other that: (i) it has the requisite corporate
      or other power and authority and has taken all corporate or other action
      necessary in order to execute, deliver and perform each of this Agreement and
      each other Ancillary Agreement to which it is a party and to consummate the
      transactions contemplated hereby and thereby; and (ii) this Agreement and each
      Ancillary Agreement to which it is a party has been duly executed and delivered
      by it and constitutes a valid and binding agreement of it enforceable in
      accordance with the terms thereof, subject to applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting creditors’ rights
      generally and general equity principles. 

     

    Section
      12.3.  Governing
      Law; Jurisdiction; Jury Trial Waiver. (a)
      This Agreement shall be governed by, and construed in accordance with, the
      laws
      of the State of New York without giving effect to principles of conflicts of
      laws thereof.

     

    (b)  Each
      of the parties hereto (i) consents to submit itself to the personal jurisdiction
      of the United States District Court for the Southern District of New York or
      the
      Supreme Court of The State of New York, New York County in the event any dispute
      arises out of this Agreement or any of the transactions contemplated hereby,
      (ii) agrees that it will not attempt to deny or defeat such personal
      jurisdiction by motion or other request for leave from any such court, and
      (iii)
      agrees that it will not bring any action relating to this agreement or any
      of
      the transactions contemplated hereby in any court other than the United States
      District Court for the Southern District of New York or the Supreme Court of
      the
      State of New York, New York County.

     

    (c)  EACH
      OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL
      BY
      JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
      THE
      ANCILLARY AGREEMENTS OR BY THE TRANSACTIONS CONTEMPLATED HEREBY OR
      THEREBY.

     

    
      
        
        

      

      
        -
          41
          -

        
          

        

      

      
        
        

      

    

    Section
      12.4.  Assignment.
      Except
      as otherwise set forth herein or in any Ancillary Agreement, this Agreement
      and
      each Ancillary Agreement shall be binding upon and inure to the benefit of
      the
      parties hereto and thereto, respectively, and their respective successors and
      permitted assigns; provided,
      however,
      that no party hereto or thereto may assign its respective rights or delegate
      its
      respective obligations under this Agreement or any Ancillary Agreement (unless
      expressly provided therein) without the express prior written consent of the
      other party hereto or thereto (such consent not to be unreasonably withheld
      or
      delayed).

     

    Section
      12.5.  Third
      Party Beneficiaries.
      Except for the indemnification rights under this Agreement of any Parent
      Indemnitee or Tronox Indemnitee in their respective capacities as such, (a)
      the
      provisions of this Agreement and each Ancillary Agreement are solely for the
      benefit of the parties hereto and are not intended to confer upon any other
      any
      rights or remedies hereunder and (b) there are no third party beneficiaries
      of
      this Agreement or any Ancillary Agreement and neither this Agreement nor any
      Ancillary Agreement shall provide any third person with any remedy, claim,
      liability, reimbursement, claim of action or other right in excess of those
      existing without reference to this Agreement or any Ancillary Agreement.

     

    Section
      12.6.  Notices.
      Except as otherwise set forth in any Ancillary Agreement, all notices or other
      communications under this Agreement or any Ancillary Agreement shall be in
      writing (including by telecopy) and shall be deemed to be duly given or made
      when delivered, or, in the case of telecopy, when received, addressed as follows
      or to such other address as may be hereafter notified by the respective
      party:

     

    
      	
              To
                Parent or Worldwide:

            	
              Kerr-McGee
                Corporation

              Kerr-McGee
                Worldwide Corporation

              Kerr-McGee
                Center

              123
                Robert S. Kerr Avenue

              Oklahoma
                City, Oklahoma 73102

              Facsimile: 405-270-3649

              Attention: General
                Counsel

               

            
	
              with
                a copy to:

            	
              Covington
                & Burling

              1330
                Avenue of the Americas

              New
                York, New York 10019

              Facsimile: 212-841-1010

              Attention: Scott
                F. Smith 

               

            
	
              To
                Tronox:

            	
              Tronox
                Incorporated

              123
                Robert S. Kerr Avenue

              Oklahoma
                City, Oklahoma 73102

              Facsimile: 405-270-4504

              Attention: Chief
                Executive Officer

               

            
	
              with
                a copy to:

            	
              Tronox
                Incorporated

              123
                Robert S. Kerr Avenue

              Oklahoma
                City, Oklahoma 73102

              Facsimile: 405-270-4101

              Attention: General
                Counsel

            

    

    

    
      
        
        

      

      
        -
          42
          -

        
          

        

      

      
        
        

      

    

    Section
      12.7.  Severability.
      If any provision of this Agreement or any Ancillary Agreement or the application
      thereof to any Person or circumstance is determined by a court of competent
      jurisdiction to be invalid, void or unenforceable, the remaining provisions
      hereof or thereof, or the application of such provision to Persons or
      circumstances or in jurisdictions other than those as to which it has been
      held
      invalid or unenforceable, shall remain in full force and effect and shall in
      no
      way be affected, impaired or invalidated thereby, so long as the economic or
      legal substance of the transactions contemplated hereby or thereby, as the
      case
      may be, is not affected in any manner adverse to any party. Upon such
      determination, the parties shall negotiate in good faith in an effort to agree
      upon such a suitable and equitable provision to effect the original intent
      of
      the parties. 

     

    Section
      12.8.  Force
      Majeure.
      No party shall be deemed in default of this Agreement or any Ancillary Agreement
      to the extent that any delay or failure in the performance of its obligations
      under this Agreement or any Ancillary Agreement results from any cause beyond
      its reasonable control, such as acts of God, acts of civil or military
      authority, embargoes, epidemics, war, terrorism, riots, insurrections, fires,
      explosions, earthquakes, floods, unusually severe weather conditions, labor
      problems or unavailability of parts, or, in the case of computer systems, any
      failure in electrical or air conditioning equipment. In the event of any such
      excused delay, the time for performance shall be extended for a period equal
      to
      the time lost by reason of the delay. 

     

    Section
      12.9.  Publicity.
      Prior to the Exchange or Distribution, each of Parent and Tronox shall consult
      with each other prior to issuing any press releases or otherwise making public
      statements with respect to the Initial Public Offering, the Exchange or
      Distribution or any of the other transactions contemplated hereby and prior
      to
      making any filings with any Governmental Authority with respect thereto.

     

    Section
      12.10.  Expenses.
      Except as expressly set forth in this Agreement or in any Ancillary Agreement,
      all third party fees, costs and expenses paid or incurred (a) in connection
      with
      the Contribution or the Initial Public Offering will be paid by Tronox, and
      (b)
      in connection with the Section 355 Transaction will be paid by
      Parent.

     

    Section
      12.11.  Headings.
      The article, section and paragraph headings contained in this Agreement and
      in
      the Ancillary Agreements are for reference purposes only and shall not affect
      in
      any way the meaning or interpretation of this Agreement or any Ancillary
      Agreement. 

     

    Section
      12.12.  Survival
      of Covenants.
      Except as expressly set forth in any Ancillary Agreement, the covenants,
      representations and warranties contained in this Agreement and each Ancillary
      Agreement, and liability for the breach of any obligations contained herein,
      shall survive the Separation Date and shall remain in full force and effect.
      

     

    Section
      12.13.  Waivers
      of Default.
      Waiver by any party of any default by the other party of any provision of this
      Agreement or any Ancillary Agreement shall not be deemed a waiver by the waiving
      party of any subsequent or other default, nor shall it prejudice the rights
      of
      the other party.

     

    
      
        
        

      

      
        -
          43
          -

        
          

        

      

      
        
        

      

    

    Section
      12.14.  Specific
      Performance.
      In the event of any actual or threatened default in, or breach of, any of the
      terms, conditions and provisions of this Agreement or any Ancillary Agreement,
      the party or parties who are or are to be thereby aggrieved shall have the
      right
      to specific performance and injunctive or other equitable relief of its rights
      under this Agreement or such Ancillary Agreement, in addition to any and all
      other rights and remedies at law or in equity, and all such rights and remedies
      shall be cumulative. The parties agree that the remedies at law for any breach
      or threatened breach, including monetary damages, are inadequate compensation
      for any loss and that any defense in any action for specific performance that
      a
      remedy at law would be adequate is waived. Any requirements for the securing
      or
      posting of any bond with such remedy are waived. 

     

    Section
      12.15.  Amendments.
      No provisions of this Agreement or any Ancillary Agreement shall be deemed
      waived, amended, supplemented or modified by any party, unless such waiver,
      amendment, supplement or modification is in writing and signed by the authorized
      representative of the party against whom it is sought to enforce such waiver,
      amendment, supplement or modification. 

     

    Section
      12.16.  Interpretation.
      Words in the singular shall be held to include the plural and vice versa and
      words of one gender shall be held to include the other genders as the context
      requires. The terms “hereof”, “herein”, and “herewith” and words of similar
      import shall, unless otherwise stated, be construed to refer to this Agreement
      (or the applicable Ancillary Agreement) as a whole (including all of the
      Schedules, Exhibits and Appendices hereto and thereto) and not to any particular
      provision of this Agreement (or such Ancillary Agreement). Article, Section,
      Exhibit, Schedule, Annex, and Appendix references are to the Articles, Sections,
      Exhibits, Schedules and Appendices to this Agreement (or the applicable
      Ancillary Agreement) unless otherwise specified. The word “including” and words
      of similar import when used in this Agreement (or the applicable Ancillary
      Agreement) shall mean “including, without limitation,” unless the context
      otherwise requires or unless otherwise specified. The word “or” shall not be
      exclusive.

     

      

     

    
      
        
          
            

          

          

        

        
        

      

      
        -
          44
          -

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, each of the parties has caused this Agreement to be executed
      by
      its respective duly authorized officer as of the date first set forth
      above.

     

    

      
        	 	
                KERR-McGEE
                  CORPORATION

              
	 	 
	 	
                By:/s/
                  Robert M. Wohleber

              
	 	
                Name:
                  Robert M. Wohleber

              
	 	
                Title:
                  Senior Vice President and CFO

              
	 	 
	 	 
	 	
                KERR-McGEE
                  WORLDWIDE CORPORATION

              
	 	 
	 	
                By:/s/
                  Robert M. Wohleber

              
	 	
                Name:
                  Robert M. Wohleber

              
	 	
                Title:
                  Senior Vice President and CFO

              
	 	 
	 	 
	 	
                TRONOX
                  INCORPORATED

              
	 	 
	 	
                By:
                  /s/ Thomas W. Adams

              
	 	
                Name:
                  Thomas W. Adams

              
	 	
                Title:
                  Chief Executive OfficerExhibit 10.52 2005

    
      

    

    Exhibit
      10.52

     

    Execution
      Copy

     

     

     

    
      
        

      

    

    

    EMPLOYEE
      BENEFITS AGREEMENT

    

    

    

    BY
      AND BETWEEN

    

    

    

    KERR-McGEE
      CORPORATION

    

    AND

    

    TRONOX
      INCORPORATED

    

    

    DATED
      AS OF November 28, 2005

     

    
      
        

      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
            

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

    
      	
               

              Article
                1. Definitions and Construction

               

            	
               

              2

               

            
	
              1.01.

            	
              Definitions

            	
              2

            
	
              1.02.

            	
              Construction

            	
              9

            
	
               

              Article
                2. General Principles

               

            	
               

              10

               

            
	
              2.01.

            	
              Assumption
                of Liabilities

            	
              10

            
	
              2.02.

            	
              Participation
                in Kerr-McGee Employee Benefit Plans

            	
              10

            
	
              2.03.

            	
              Establishment
                and Maintenance of Tronox Employee Benefit Plans

            	
              11

            
	
              2.04.

            	
              Terms
                of Participation in Tronox Employee Benefit Plans

            	
              12

            
	
              2.05.

            	
              Allocation
                of Costs

            	
              13

            
	
               

              Article
                3. Terms of Employment and Compensation

               

            	
               

              14

               

            
	
              3.01.

            	
              Salary
                and Base Pay

            	
              14

            
	
              3.02.

            	
              Incentive
                Awards

            	
              14

            
	
              3.03.

            	
              Severance

            	
              15

            
	
              3.04.

            	
              Success
                Bonus Program

            	
              15

            
	
              3.05.

            	
              2005
                Retention Program

            	
              15

            
	
               

              Article
                4. Defined Benefit Retirement Plans

               

            	
               

              16

               

            
	
              4.01.

            	
              Establishment
                of Mirror Retirement Plan and Trust

            	
              16

            
	
              4.02.

            	
              Assumption
                of Pension Plan Liabilities

            	
              16

            
	
              4.03.

            	
              Transfer
                of Assets

            	
              16

            
	
              4.04.

            	
              Pension
                Plan Transfer Amount

            	
              17

            
	
               

              Article
                5. Defined Contribution Retirement Plans

               

            	
               

              18

               

            
	
              5.01.

            	
              Establishment
                of SIP and Trust

            	
              18

            
	
              5.02.

            	
              Vesting
                in Kerr-McGee SIP

            	
              18

            
	
              5.03.

            	
              Acceptance
                of Rollovers

            	
              18

            
	
              5.04.

            	
              Maintenance
                of Universal Life Policy

            	
              18

            
	
               

              Article
                6. Health and Welfare Plans

               

            	
               

              19

               

            
	
              6.01.

            	
              Establishment
                of Health and Welfare Plans

            	
              19

            
	
              6.02.

            	
              Health
                and Welfare Plans

            	
              19

            
	
              6.03.

            	
              Special
                Rule for HCSA and DCSA Plans

            	
              19

            
	
              6.04.

            	
              Vendor
                Contracts

            	
              20

            
	
              6.05.

            	
              Disability
                Plans

            	
              21

            
	
              6.06.

            	
              Life
                Insurance Plans

            	
              21

            
	
              6.07.

            	
              COBRA

            	
              21

            
	
              6.08.

            	
              Leave
                of Absence Programs and FMLA

            	
              22

            
	
              6.09.

            	
              Kerr-McGee
                Workers’ Compensation Program

            	
              22

            
	
              6.10.

            	
              Kerr-McGee
                Employee Assistance Program

            	
              22

            
	
              6.11.

            	
              Unemployment
                Insurance Tax Management Program

            	
              23

            
	
              6.12.

            	
              Administration

            	
              23

            
	
              6.13.

            	
              UMWA
                Combined Benefit Fund

            	
              23

            
	
              6.14.

            	
              Medicare
                Part B Reimbursements

            	
              23

            
	
              6.15.

            	
              Reimbursements
                by Kennecott

            	
              23

            
	
              6.16.

            	
              Application
                of Article 6 to Tronox Entities

            	
              23

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

              Article
                7. Stock-Based Compensation

               

            	
               

              25

               

            
	
              7.01.

            	
              Establishment
                of Plan

            	
              25

            
	
              7.02.

            	
              Stock
                Options

            	
              25

            
	
              7.03.

            	
              Restricted
                Stock

            	
              25

            
	
               

              Article
                8. Executive Benefits

               

            	
               

              26

               

            
	
              8.01.

            	
              Establishment
                of Plans

            	
              26

            
	
              8.02.

            	
              Kerr-McGee
                Benefits Restoration Plan

            	
              26

            
	
              8.03.

            	
              Rabbi
                Trust

            	
              26

            
	
              8.04.

            	
              Continuity
                Agreements

            	
              26

            
	
              8.05.

            	
              Code
                Section 162(m)

            	
              27

            
	
               

              Article
                9. Miscellaneous Benefits

               

            	
               

              28

               

            
	
              9.01.

            	
              Service
                Award Program

            	
              28

            
	
              9.02.

            	
              Other
                Welfare Plans

            	
              28

            
	
               

              Article
                10. Non-U.S. Employees and Employee Benefit Plans

               

            	
               

              29

               

            
	
              10.01.

            	
              In
                General

            	
              29

            
	
              10.02.

            	
              Stock
                Opportunity Grants

            	
              29

            
	
              10.03.

            	
              Stock
                Options—Foreign Plans

            	
              29

            
	
               

              Article
                11. General and Administrative Provisions

               

            	
               

              30

               

            
	
              11.01.

            	
              Actuarial
                and Accounting Methodologies and Assumptions

            	
              30

            
	
              11.02.

            	
              Sharing
                of Participant Information

            	
              30

            
	
              11.03.

            	
              Reporting,
                Disclosure, and Communications to Participants

            	
              30

            
	
              11.04.

            	
              Non-Termination
                of Employment, No Third-Party Beneficiaries

            	
              31

            
	
              11.05.

            	
              Plan
                Audits

            	
              31

            
	
              11.06.

            	
              Beneficiary
                Designations

            	
              33

            
	
              11.07.

            	
              Cooperation
                in Requests for Rulings and DOL Opinions

            	
              33

            
	
              11.08.

            	
              Fiduciary
                Matters

            	
              33

            
	
              11.09.

            	
              Collective
                Bargaining

            	
              33

            
	
              11.10.

            	
              Consent
                of Third Parties

            	
              33

            
	
              11.11.

            	
              General
                Obligations as Plan Sponsors

            	
              34

            
	
              11.12.

            	
              Adjustments
                to Plan Transfers

            	
              34

            
	
               

              Article
                12. Miscellaneous

               

            	
               

              35

               

            
	
              12.01.

            	
              Effect
                If Neither Distribution nor Exchange Occurs

            	
              35

            
	
              12.02.

            	
              Relationship
                of Parties

            	
              35

            
	
              12.03.

            	
              Affiliates

            	
              35

            
	
              12.04.

            	
              Disputes

            	
              35

            
	
              12.05.

            	
              Arbitration

            	
              35

            
	 	 	 
	 Schedule
              I Kerr-McGee
              U.S. Employee Benefit Plans, Programs, and Policies	 
	 	 
	 Schedule
              II Kerr-McGee
              Non-U.S. Employee Benefit Plans, Programs, and Policies	 

    

    

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EMPLOYEE
      BENEFITS AGREEMENT

     

    This
      EMPLOYEE BENEFITS AGREEMENT, dated as of November 28, 2005, is by and between
      Kerr-McGee and Tronox. Capitalized terms used in this Agreement (other than
      the
      formal names of Kerr-McGee Plans and related trusts of Kerr-McGee) and not
      otherwise defined shall have the respective meanings assigned to them in
Article
      1
      of
      this Agreement or as assigned to them in the Principal Agreement.

     

    RECITALS

     

    WHEREAS,
      the Board of Directors of Kerr-McGee has determined that it is in the best
      interests of Kerr-McGee and its stockholders to separate Kerr-McGee’s existing
      business into two independent businesses;

     

    WHEREAS,
      in order to separate Kerr-McGee’s existing business into two independent
      businesses, Kerr-McGee and Tronox have entered into the Master Separation
      Agreement among Kerr-McGee Corporation, Kerr-McGee Worldwide Corporation and
      Tronox Incorporated, dated as of the same date as this Agreement (the “Principal
      Agreement”), and certain other agreements that will govern matters relating to
      the separation, the Distribution or Exchange, and the relationship of Kerr-McGee
      and Tronox and their respective Subsidiaries following the Distribution or
      Exchange; and

     

    WHEREAS,
      pursuant to the Principal Agreement, Kerr-McGee and Tronox have agreed to enter
      into this Agreement allocating assets, liabilities, and responsibilities with
      respect to certain employee compensation and benefit plans and programs between
      them.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements, provisions and covenants
      contained in this Agreement, the parties, intending to be legally bound, agree
      as follows:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      1.   DEFINITIONS
      AND CONSTRUCTION

     

    1.01.  Definitions. 

     

    For
      purposes of this Agreement the following terms shall have the following
      meanings:

     

    
      	(a)  	
              Agreement. 
                Agreement means this Employee Benefits Agreement, including all the
                Schedules and Exhibits hereto.

            

    

     

    
      	(b)  	
              Article.
                Article means an Article of this
                Agreement.

            

    

     

    
      	(c)  	
              Award.
                Award means an award under a Stock Plan, a Short Term Incentive Plan,
                or a
                Non-U.S. Benefit Plan.

            

    

     

    
      	(d)  	
              Benefits
                Restoration Plan.
                Benefits Restoration Plan, when immediately preceded by “Kerr-McGee,”
                means the Kerr-McGee Corporation Benefits Restoration Plan. When
                immediately preceded by “Tronox,” Benefits Restoration Plan means the
                non-qualified retirement plan to be established by Tronox pursuant
                to
                Section 2.03
                that corresponds to the defined benefit portion of the Kerr-McGee
                Benefits
                Restoration Plan.

            

    

     

    
      	(e)  	
              Cafeteria
                Plan. Cafeteria
                Plan, when immediately preceded by “Kerr-McGee,” means the cafeteria plan
                component of the Kerr-McGee Health and Protection Plan, which includes
                the
                HCSA and the DCSA. When immediately preceded by “Tronox,” cafeteria plan
                means the plan that may be established by Tronox pursuant to Section
                2.03
                that corresponds to the Kerr-McGee Cafeteria
                Plan.

            

    

     

    
      	(f)  	
              Change
                In Control.
                Change in Control means the occurrence, on or after the Offering
                Date and
                before the Close of the Distribution Date, of a “Change in Control” as
                such term is defined in either the (1) Kerr-McGee Corporation 2005
                Long
                Term Incentive Plan as amended through the date of this Agreement
                or
                (2) Tronox Incorporated 2005 Long Term Incentive
                Plan.

            

    

     

    
      	(g)  	
              Close
                of the Distribution Date.
                Close of the Distribution Date means 11:59:59 P.M., Eastern Standard
                Time
                or Eastern Daylight Time (whichever shall then be in effect), on
                the
                Distribution Date.

            

    

     

    
      	(h)  	
              COBRA. 
                COBRA means the continuation coverage requirements for “group health
                plans” under Title X of the Consolidated Omnibus Budget Reconciliation Act
                of 1985, as amended, and as codified in Code section 4980B and ERISA
                sections 601 through 608.

            

    

     

    
      	(i)  	
              Code.
                Code means the Internal Revenue Code of 1986, as amended, or any
                successor
                federal income tax law. Reference to a specific Code provision also
                includes any proposed, temporary, or final regulation or other guidance
                of
                general applicability in force under that
                provision.

            

    

     

    
      	(j)  	
              DCSA.
                DCSA,
                when immediately preceded by “Kerr-McGee,” means the dependent care
                spending account component of the Kerr-McGee Cafeteria Plan. When
                immediately preceded by “Tronox,” DCSA means the plan to be established by
                Tronox pursuant to Section 2.03
                that corresponds to the Kerr-McGee
                DCSA.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	(k)  	
              Disability
                Plans. Disability
                Plans, when immediately preceded by “Kerr-McGee,” means the short term
                disability and long term disability components of the Kerr-McGee
                Health
                and Protection Plan and the Kerr-McGee Pigments (Savannah), Inc.
                Personal
                Protection Plan. When immediately preceded by “Tronox,” Disability Plans
                means the plans to be established by Tronox pursuant to Section
                2.03
                that correspond to the respective Kerr-McGee Disability
                Plans.

            

    

     

    
      	(l)  	
              Distribution
                Date.
                Distribution Date means the date on which the Distribution or Exchange
                (both as defined in the Principal Agreement)
                occurs.

            

    

     

    
      	(m)  	
              DOL. 
                DOL means the U.S. Department of
                Labor.

            

    

     

    
      	(n)  	
              EAP.
                EAP,
                when immediately preceded by “Kerr-McGee,” means the employee assistance
                component of the Kerr-McGee Health and Protection Plan and the Kerr-McGee
                Pigments (Savannah), Inc. Personal Protection Plan. When immediately
                preceded by “Tronox,” EAP means the plans to be established by Tronox
                pursuant to Section 2.03
                that correspond to the Kerr-McGee
                EAP.

            

    

     

    
      	(o)  	
              Employee
                Benefit Plans.
                Employee Benefit Plans, when immediately preceded by “Kerr-McGee,” means
                the Kerr-McGee Retirement Plan, the Kerr-McGee SIP, the Kerr-McGee
                Stock
                Plans, the Kerr-McGee Executive Benefit Plans, the Kerr-McGee Short
                Term
                Incentive Plans, the Kerr-McGee Health and Welfare Plans, the Kerr-McGee
                Other Benefit Programs, and the Kerr-McGee Non-U.S. Benefit Plans.
                When
                immediately preceded by “Tronox,” Employee Benefit Plans means the Tronox
                Retirement Plan, the Tronox SIP, the Tronox Stock Plans, the Tronox
                Executive Benefit Plans, the Tronox Short Term Incentive Plans, the
                Tronox
                Health and Welfare Plans, the Tronox Other Benefit Programs, and
                the
                Tronox Non-U.S. Benefit Plans. 

            

    

     

    
      	(p)  	
              ERISA.
                ERISA means the Employee Retirement Income Security Act of 1974,
                as
                amended. Reference to a specific provision of ERISA also includes
                any
                proposed, temporary, or final regulation or other guidance of general
                applicability in force under that
                provision.

            

    

     

    
      	(q)  	
              Executive
                Benefit Plans.
                Executive Benefit Plans, when immediately preceded by “Kerr-McGee,” means
                the Kerr-McGee Benefits Restoration Plan and the Kerr-McGee Corporation
                Chemical Division Nonqualified Retirement Plan. When immediately
                preceded
                by “Tronox,” Executive Benefit Plans means the non-qualified retirement
                plans to be established by Tronox pursuant to Section 2.03
                that correspond to the defined benefit portion of the Kerr-McGee
                Benefits
                Restoration Plan and to the Kerr-McGee Corporation Chemical Division
                Nonqualified Retirement Plan.

            

    

     

    
      	(r)  	
              FMLA. 
                FMLA means the Family and Medical Leave Act of 1993, as
                amended.

            

    

     

    
      	(s)  	
              HCSA.
                HCSA,
                when immediately preceded by “Kerr-McGee,” means the health care spending
                account component of the Kerr-McGee Cafeteria Plan. When immediately
                preceded by “Tronox,” HCSA means the plan to be established by Tronox
                pursuant to Section 2.03
                that corresponds to the Kerr-McGee
                HCSA.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	(t)  	
              Health
                and Welfare Plans.
                Health and Welfare Plans, when immediately preceded by “Kerr-McGee,” means
                the Kerr-McGee Health and Protection Plan, the Kerr-McGee Retiree
                Health
                and Protection Plan, the Kerr-McGee Pigments (Savannah), Inc. Personal
                Protection Plan, and the Kerr-McGee Other Welfare Plans. When immediately
                preceded by “Tronox,” Health and Welfare Plans means the health and
                welfare plans to be established by Tronox pursuant to Section 2.03
                that correspond to the Kerr-McGee Health and Welfare
                Plans.

            

    

     

    
      	(u)  	
              Health
                Plans. Health
                Plans, when immediately preceded by “Kerr-McGee,” means the medical,
                dental, and vision components of the Kerr-McGee Health and Protection
                Plan, the Kerr-McGee Retiree Health and Protection Plan, and the
                Kerr-McGee Pigments (Savannah), Inc. Personal Protection Plan. When
                immediately preceded by “Tronox,” Health Plans means the medical, dental,
                and vision plans to be established by Tronox pursuant to Section
                2.03
                that correspond to the Kerr-McGee Health
                Plans.

            

    

     

    
      	(v)  	
              HMO.
                HMO means a health maintenance organization that provides benefits
                under
                the Kerr-McGee Health Plans or the Tronox Health
                Plans.

            

    

     

    
      	(w)  	
              Immediately
                after the Distribution Date.
                Immediately after the Distribution Date means 12:00 A.M., Eastern
                Standard
                Time or Eastern Daylight Time (whichever shall then be in effect),
                on the
                day after the Distribution Date.

            

    

     

    
      	(x)  	
              IPO.
                IPO means the initial public offering by Tronox of shares of Tronox
                Common
                Stock pursuant to the IPO Registration
                Statement.

            

    

     

    
      	(y)  	
              IRS.
                IRS means the Internal Revenue
                Service.

            

    

     

    
      	(z)  	
              Kerr-McGee.
                Kerr-McGee means Kerr-McGee Corporation, a Delaware
                corporation.

            

    

     

    
      	(aa)  	
              Kerr-McGee
                Entity.
                Kerr-McGee Entity means any entity that is, at the relevant time,
                controlled, directly or indirectly, by Kerr-McGee, other than, after
                the
                Close of the Distribution Date, Tronox or any Tronox
                Entity.

            

    

     

    
      	(bb)  	
              Kerr-McGee
                Stock Value. 
                Kerr-McGee Stock Value means a price for Kerr-McGee Common Stock
                on the
                Distribution Date, or, if such date is not a trading day on the NYSE,
                on
                the next preceding day that was a trading day on the NYSE, calculated
                using a methodology to be determined by Kerr-McGee. Notwithstanding
                the
                foregoing, if an adjustment is required under Article
                7
                with respect to a Change in Control, Kerr-McGee Stock Value shall
                mean the
                closing price on the NYSE for Kerr-McGee Common Stock on the Offering
                Date.

            

    

     

    
      	(cc)  	
              Leave
                of Absence Programs. 
                Leave of Absence Programs, when immediately preceded by “Kerr-McGee,”
                means the Kerr-McGee Sick Leave and Extended Sick Leave Policies,
                Vacation
                Policy, Personal Leave Policy, Jury Duty Policy, Military Leave Program,
                Kerr-McGee Funeral Leave Program, and other similar programs offered
                from
                time to time under the personnel policies and practices of Kerr-McGee
                or a
                Kerr-McGee Entity. When immediately preceded by “Tronox,” Leave of Absence
                Programs means the programs to be established by Tronox pursuant
                to
                Section 2.03
                that correspond to the respective Kerr-McGee Leave of Absence
                Programs.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	(dd)  	
              Life
                Insurance Plans. Life
                Insurance Plans, when immediately preceded by “Kerr-McGee,” means (1) the
                accidental death and dismemberment insurance, business travel accident
                insurance, dependent life insurance, and group term life insurance
                components of the Kerr-McGee Health and Protection Plan, (2) the
                group
                term life insurance component of the Kerr-McGee Retiree Health and
                Protection Plan, and (3) the accidental death and dismemberment and
                group
                term life insurance components of the Kerr-McGee Pigments (Savannah),
                Inc.
                Personal Protection Plan. When immediately preceded by “Tronox,” Life
                Insurance Plans means the plans, if any, to be established by Tronox
                pursuant to Section 2.03
                that correspond to the Kerr-McGee Life Insurance
                Plans.

            

    

     

    
      	(ee)  	
              Material
                Feature.
                Material Feature means any feature of an Employee Benefit Plan that
                could
                reasonably be expected to be of material importance to the sponsoring
                employer or the participants and beneficiaries of the Employee Benefit
                Plan, which could include, depending on the type and purpose of the
                particular Employee Benefit Plan, the class or classes of employees
                eligible to participate in such Employee Benefit Plan, the nature,
                type,
                form, source, and level of benefits provided by the employer under
                such
                Employee Benefit Plan and the amount or level of contributions, if
                any,
                required to be made by participants (or dependents or beneficiaries)
                or
                the employer to such Employee Benefit
                Plan.

            

    

     

    
      	(ff)  	
              Non-Employee
                Director.
                Non-Employee Director, when immediately preceded by “Kerr-McGee,” means a
                member of Kerr-McGee’s Board of Directors who is not an employee of
                Kerr-McGee, a Kerr-McGee Entity, Tronox, or a Tronox Entity. When
                immediately preceded by “Tronox,” Non-Employee Director means a member of
                Tronox’s Board of Directors who is not an employee of Kerr-McGee, a
                Kerr-McGee Entity, Tronox or a Tronox
                Entity.

            

    

     

    
      	(gg)  	
              Non-U.S.
                Benefit Plans. Non-U.S.
                Benefit Plans, when immediately preceded by “Kerr-McGee,” means the
                employee benefit plans listed on Schedule II. When immediately preceded
                by
                “Tronox,” Non-U.S. Plans means employee benefit plans to be established by
                Tronox pursuant to Section 2.03
                that correspond to the Kerr-McGee Non-U.S. Benefit Plans to the extent
                such Kerr-McGee Non-U.S. Benefit Plans provide benefits to Tronox
                Individuals.

            

    

     

    
      	(hh)  	
              Offering
                Date. 
                Offering Date means the Closing Date (as defined in the Principal
                Agreement). 

            

    

     

    
      	(ii)  	
              Option.
                Option, when immediately preceded by “Kerr-McGee,” means an option to
                purchase Kerr-McGee Common Stock (including any tandem stock appreciation
                right). When immediately preceded by “Tronox,” Option means an option to
                purchase Tronox Common Stock (including any tandem stock appreciation
                right), in each case pursuant to a Stock
                Plan.

            

    

     

    
      	(jj)  	
              Other
                Benefit Programs. Other
                Benefit Programs, when immediately preceded by “Kerr-McGee,” means the
                Leave of Absence Programs, Service Award Program, Education Gift
                Matching
                Program, Automobile/Homeowners Insurance Program, Death Benefit Policy,
                and any other payroll practice, program, or policy available to Kerr-McGee
                employees. When immediately preceded by “Tronox,” Other Benefit Programs
                means the plans to be established by Tronox pursuant to Section
                2.03
                that correspond to Leave of Absence Programs, Service Award Program,
                Education Gift Matching Program, Automobile/Homeowners Insurance
                Program,
                Death Benefit Policy, or other payroll practice, program, or policy
                available to Kerr-McGee employees.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	(kk)  	
              Other
                Welfare Plans. Other
                Welfare Plans, when immediately preceded by “Kerr-McGee,” means the
                Kerr-McGee Long Term Care Program and the Kerr-McGee Educational
                Assistance Program, regardless of whether such plans are subject
                to ERISA.
                When immediately preceded by “Tronox,” Other Welfare Plans means the
                welfare plans, if any, to be established by Tronox pursuant to Section
                2.03
                that correspond to the Kerr-McGee Long Term Care Program and the
                Kerr-McGee Educational Assistance Program,
                respectively.

            

    

     

    
      	(ll)  	
              Participating
                Company.
                Participating Company means, with respect to a particular Employee
                Benefit
                Plan, (1) Kerr-McGee, (2) any Kerr-McGee Entity that Kerr-McGee has
                approved for participation in, and which is participating in, such
                Employee Benefit Plan sponsored by Kerr-McGee, and (3) any entity
                that by the terms of such an Employee Benefit Plan, participates
                in such
                Employee Benefit Plan or has employees who, by the terms of such
                Employee
                Benefit Plan, participate in or are covered by such Employee Benefit
                Plan.

            

    

     

    
      	(mm)  	
              Pension
                Transfer Amount.
                Pension Transfer Amount is defined in Section 4.04.

            

    

     

    
      	(nn)  	
              Pension
                Trust.
                Pension Trust, when immediately preceded by “Kerr-McGee,” means the trust
                that is exempt from taxation under Code section 501(a) that holds
                the
                assets of the Kerr-McGee Retirement Plan and forms a part of the
                Kerr-McGee Retirement Plan. When immediately preceded by “Tronox,” Pension
                Trust means the trust that is exempt from taxation under Code section
                501(a) that holds the assets of the Tronox Retirement Plan and forms
                a
                part of the Tronox Retirement Plan.

            

    

     

    
      	(oo)  	
              Principal
                Agreement.
                Principal Agreement is defined in the second recital of this
                Agreement.

            

    

     

    
      	(pp)  	
              QDRO.
                QDRO means a domestic relations order which qualifies under Code
                section
                414(p) and ERISA section 206(d) and which creates or recognizes an
                alternate payee’s right to, or assigns to an alternate payee, all or a
                portion of the benefits payable to a participant under any of the
                Kerr-McGee Retirement Plans or the Kerr-McGee Savings
                Plan.

            

    

     

    
      	(qq)  	
              QMCSO.
                QMCSO means a medical child support order that qualifies under section
                609(a) of ERISA and that creates or recognizes the existence of an
                alternate recipient’s right to, or assigns to an alternate recipient the
                right to, receive benefits for which a participant or beneficiary
                is
                eligible under a Kerr-McGee Health
                Plan.

            

    

     

    
      	(rr)  	
              Rabbi
                Trust.
                Rabbi Trust, when immediately preceded by “Kerr-McGee,” means the rabbi
                trust established by Kerr-McGee Corporation. When immediately preceded
                by
                “Tronox,” Rabbi Trust means the grantor trust to be established by Tronox
                pursuant to Section 8.03
                that corresponds to the Kerr-McGee rabbi
                trust.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	(ss)  	
              Ratio.
                Ratio means the amount obtained by dividing the Kerr-McGee Stock
                Value by
                the Tronox Stock Value; provided, however, that, in determining the
                Ratio,
                adjustments may be made to minimize the independent, determinable
                and
                verifiable effects of events other than the Distribution or Exchange
                on
                the Kerr-McGee Stock Value and the Tronox Stock
                Value.

            

    

     

    
      	(tt)  	
              Retirement
                Plan.
                Retirement Plan, when immediately preceded by “Kerr-McGee,” means the
                Kerr-McGee Corporation Retirement Plan. When immediately preceded
                by
                “Tronox,” Retirement Plan means the tax-qualified defined benefit
                retirement plan to be established by Tronox pursuant to Section
                2.03
                that corresponds to the Kerr-McGee Retirement
                Plan.

            

    

     

    
      	(uu)  	
              Section.
                Section means a section of this
                Agreement.

            

    

     

    
      	(vv)  	
              Short
                Term Incentive Plans.
                Short Term Incentive Plans, when immediately preceded by “Kerr-McGee,”
                means the Kerr-McGee 2002 Annual Incentive Compensation Plan and
                the
                Kerr-McGee SCORE Compensation Program (effective 2003). When immediately
                preceded by “Tronox,” Short Term Incentive Plans means the plans to be
                established by Tronox pursuant to Section 2.03
                that correspond to the Kerr-McGee 2002 Annual Incentive Compensation
                Plan
                and the Kerr-McGee SCORE Compensation Program (effective
                2003).

            

    

     

    
      	(ww)  	
              SIP.
                SIP, when immediately preceded by “Kerr-McGee,” means the Kerr-McGee
                Corporation Savings Investment Plan. When immediately preceded by
                “Tronox,” SIP means the tax-qualified defined contribution retirement plan
                to be established by Tronox pursuant to Section 2.03
                that corresponds to the Kerr-McGee
                SIP.

            

    

     

    
      	(xx)  	
              Stock
                Plans.
                Stock Plans, when immediately preceded by “Kerr-McGee,” means the
                Kerr-McGee Corporation 2005 Long Term Incentive Plan, the Kerr-McGee
                Corporation 2002 Long Term Incentive Plan, the Kerr-McGee Corporation
                2000
                Long Term Incentive Plan, the Kerr-McGee Corporation 1998 Long Term
                Incentive Plan, and the Kerr-McGee Corporation Long Term Incentive
                Plan
                (adopted in 1987 and restated in 1995), and such other stock-based
                incentive plans that have been assumed by Kerr-McGee by reason of
                merger,
                acquisition, or otherwise, each as amended through the date of this
                Agreement. Stock Plans shall also be deemed to include the stock
                award
                plans of companies acquired by (1) Tronox or a Tronox Entity after
                the
                date of this Agreement and before the Close of the Distribution Date,
                if
                Tronox or the Tronox Entity assumes those plans and (2) Kerr-McGee
                or a
                Kerr-McGee Entity after the date of this Agreement and before the
                Close of
                the Distribution Date, if Kerr-McGee or the Kerr-McGee Entity assumes
                those plans. When immediately preceded by “Tronox,” Stock Plans means the
                stock award plans to be established by Tronox pursuant to Section
                2.03.

            

    

     

    
      	(yy)  	
              Transferred
                Individual.
                Transferred Individual means any Tronox Individual other than (1)
                any
                Tronox Individual who became an employee of Kerr-McGee or a Kerr-McGee
                Entity after the latest date on which he was a Tronox Individual
                and
                before the Close of the Distribution Date or (2) any Tronox Individual
                who
                is a Transferred Non-U.S. Individual.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	(zz)  	
              Transferred
                Non-U.S. Individual. 
                A Transferred Non-U.S. Individual is a Tronox Individual who was
                last
                employed before the Close of the Distribution Date by Kerr-McGee
                or a
                Kerr-McGee Entity located outside of the U.S.

            

    

     

    
      	(aaa)  	
              Tronox.
                Tronox means Tronox Incorporated, and, with respect to periods before
                the
                Offering Date, the chemical division of
                Kerr-McGee.

            

    

     

    
      	(bbb)  	
              Tronox
                Committee.
                Tronox Committee means the Executive Compensation Committee of the
                Tronox
                Board of Directors, or such other committee as is appointed to administer
                the provisions of the Tronox Stock
                Plans.

            

    

     

    
      	(ccc)  	
              Tronox
                Entity.
                Tronox Entity means any entity or business unit (1) that is, at the
                relevant time, a subsidiary of Tronox or is otherwise controlled,
                directly
                or indirectly, by Tronox or (2) that is or has been controlled by
                Kerr-McGee, directly or indirectly, and involved in the chemical,
                refining, coal, offshore contract drilling, or nuclear business units.
                

            

    

     

    
      	(ddd)  	
              Tronox
                Individual.
                Tronox Individual means any individual who
                is—

            

    

     

    
      	(1)  	
              on
                the Offering Date, actively employed by (A) Tronox, (B) a Tronox
                Entity,
                or (C) Kerr-McGee Shared Services Company, LLC, and, in the case
                of
                subsection (C), is on
                a list of individuals to be assigned to Tronox on the Offering
                Date,

            

    

     

    
      	(2)  	
              not
                actively employed by Tronox or a Tronox Entity on the Offering Date
                and
                (A) on the Offering Date, is receiving benefits under a Kerr-McGee
                Leave
                of Absence Program or a Kerr-McGee Disability Plan and (B) according
                to the human resources records of Kerr-McGee, was actively employed
                by (i)
                Tronox, (ii) a Tronox Entity, (iii) Kerr-McGee Shared Services Company,
                LLC, or (iv) the Kerr-McGee Technology Center and, in the case of
                subsections (iii) and (iv), is on
                a list of individuals to be assigned to Tronox on the Offering
                Date,
                immediately before beginning to receive benefits under a Kerr-McGee
                Leave
                of Absence Program or the Kerr-McGee Disability
                Plan,

            

    

     

    
      	(3)  	
              hired
                by Tronox or a Tronox Entity on or after the Offering Date and before
                the
                Close of the Distribution Date, or

            

    

     

    
      	(4)  	
              on
                the Offering Date, a former employee of Kerr-McGee, a Kerr-McGee
                Entity,
                Tronox, or a Tronox Entity whose last employment with Kerr-McGee
                or a
                Kerr-McGee Entity before the Offering Date was, according to the
                human
                resources records of Kerr-McGee, (A) with Tronox or a Tronox Entity
                or (B)
                with Kerr-McGee Shared Services, LLC, or the Kerr-McGee Technology
                Center
                and, in the case of this subsection (B), is on
                a list of individuals to be assigned to Tronox on the Offering
                Date.

            

    

     

    An
      alternate payee under a QDRO, an alternate recipient under a QMCSO, a
      beneficiary or a covered dependent, in each case of an individual described
      in
      Section 1.01(ddd)(1)
      through (4)
      shall
      also be a Tronox Individual with respect to that employee’s benefit under the
      applicable Plans. Such an alternate payee, alternate recipient, beneficiary,
      or
      covered dependent shall not otherwise be considered a Tronox Individual with
      respect to his or her own benefits under any Plan(s) unless he or she is a
      Tronox Individual by virtue of his employment with Tronox or a Tronox Entity.
      

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	(eee)  	
              Tronox
                Stock Value.
                Tronox Stock Value means a price for Tronox Common Stock on the
                Distribution Date or, if such date is not a trading day on the NYSE,
                on
                the next preceding day that was a trading day on the NYSE, calculated
                using a methodology to be determined by Kerr-McGee. Notwithstanding
                the
                foregoing, if an adjustment is required under Article
                7
                with respect to a Change in Control, Tronox Stock Value shall mean
                the
                price at which shares of Tronox Common Stock are offered to purchasers
                in
                the IPO.

            

    

     

    
      	(fff)  	
              U.S.
                U.S. means the 50 states comprising the United States of America,
                territories thereof, and the District of
                Columbia.

            

    

     

    
      	(ggg)  	
              WCP.
                WCP, when immediately preceded by “Kerr-McGee,” means the Kerr-McGee
                Workers’ Compensation Program, comprised of the various arrangements
                established by Kerr-McGee or a Kerr-McGee Entity to comply with the
                workers’ compensation requirements of the states in which Kerr-McGee and
                its Affiliates conduct business. When immediately preceded by “Tronox,”
                WCP means the Tronox Workers’ Compensation Program to be established by
                Tronox to administer Tronox WCP Claims (as defined in Section 6.09).

            

    

     

    1.02.  Construction.

     

    For
      purposes of this Agreement, unless the contrary is clearly indicated by the
      context, 

     

    
      	(a)  	
              the
                use of the masculine gender shall also include within its meaning
                the
                feminine and vice versa,

            

    

     

    
      	(b)  	
              the
                use of the singular shall also include within its meaning the plural
                and
                vice versa, and

            

    

     

    
      	(c)  	
              the
                word “include” shall mean to include without
                limitation.

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    ARTICLE
      2.  GENERAL
      PRINCIPLES

     

    2.01.  Assumption
      of Liabilities.

     

    Except
      as otherwise provided in this Agreement or in the Principal Agreement, Tronox
      hereby agrees, as of the dates set forth herein, to assume and pay, perform,
      fulfill, and discharge, or to cause a Tronox Employee Benefit Plan to assume,
      pay, perform, fulfill, and discharge, in accordance with their respective terms,
      all liabilities (regardless of when or where such liabilities arose or arise
      or
      were or are incurred) to or relating to Transferred Individuals, under or with
      respect to the employee compensation programs and Employee Benefit Plans, to
      the
      extent relating to, arising out of, or resulting from future, present, or former
      employment with Tronox, a Tronox Entity, Kerr-McGee, or a Kerr-McGee Entity
      (including all liabilities under Kerr-McGee Employee Benefit Plans and Tronox
      Employee Benefit Plans).

     

    2.02.  Participation
      in Kerr-McGee Employee Benefit Plans.

     

    
      	(a)  	
              In
                General.
                Effective as of the Offering Date and subject to the terms and conditions
                of this Agreement, Tronox shall be a Participating Company in the
                Kerr-McGee Employee Benefit Plans (other than, with respect to Awards
                granted after the Offering Date, the Stock Plans) in effect as of
                the
                Offering Date. Each Tronox Entity that is, as of the Offering Date,
                a
                Participating Company in any of such Kerr-McGee Employee Benefit
                Plans
                shall continue as such. Effective as of any date on or after the
                Offering
                Date and before the Close of the Distribution Date, a Tronox Entity
                not
                described in the preceding sentence may, at its request and with
                the
                consent of Kerr-McGee (which shall not be unreasonably withheld),
                become a
                Participating Company in any or all of the Kerr-McGee Employee Benefit
                Plans. Without Kerr-McGee’s consent, neither Tronox nor any Tronox Entity
                shall become a Participating Company in any such Kerr-McGee Employee
                Benefit Plan on or after the Offering
                Date.

            

    

     

    
      	(b)  	
              Obligations
                as Participating Company.
                With respect to its participation in the Kerr-McGee Employee Benefit
                Plans, Tronox shall perform, and shall cause each other Tronox Entity
                that
                is a Participating Company in any Kerr-McGee Employee Benefit Plan
                to
                perform, the duties of a Participating Company as set forth in the
                applicable Employee Benefit Plan document and related administrative
                procedures, including: (1) assisting in the administration of claims,
                to
                the extent requested by the claims administrator of the applicable
                Kerr-McGee Employee Benefit Plan; (2) cooperating fully with benefit
                personnel and benefit vendors; (3) preserving the confidentiality of
                all financial arrangements Kerr-McGee has or may have with any vendors,
                claims administrators, trustees or any other entity or individual
                with
                whom Kerr-McGee has entered into an agreement relating to the Kerr-McGee
                Employee Benefit Plans; and (4) preserving the confidentiality of
                participant health information (including health information in relation
                to FMLA leaves).

            

    

     

    
      	(c)  	
              Termination
                of Participating Company Status.
                Tronox and each Tronox Entity shall cease to be a Participating Company
                in
                the Kerr-McGee Employee Benefit Plans at the Close of the Distribution
                Date, except to the extent the parties agree to continue Tronox or
                any
                Tronox Entity as a Participating Company in a Kerr-McGee Employee
                Benefit
                Plan after that date. Notwithstanding the foregoing, in the event
                of a
                Change in Control, Tronox and each Tronox Entity shall cease to be
                a
                Participating Company in the Kerr-McGee Stock Plans as of the date
                as of
                which the adjustments called for by Article
                7
                have been made.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    2.03.  Establishment
      and Maintenance of Tronox Employee Benefit Plans.

     

    Effective
      as of the Offering Date, Tronox shall adopt, or cause to be adopted, the Tronox
      Stock Plans for the benefit of Tronox Individuals and other current and future
      employees of Tronox and the Tronox Entities. Effective Immediately after the
      Distribution Date, Tronox shall adopt, or cause to be adopted, the remaining
      Tronox Employee Benefit Plans for the benefit of Transferred Individuals and
      other current and future employees (and Non-Employee Directors) of Tronox and
      the Tronox Entities. 

     

    The
      Tronox Employee Benefit Plans, as in effect immediately after their effective
      dates, need not be substantially similar in any respect to the corresponding
      Kerr-McGee Employee Benefit Plans as in effect immediately before the effective
      dates of the Tronox Employee Benefit Plans, except as follows:

     

    
      	(a)  	
              Defined
                Benefit Retirement Plans.
                Tronox shall establish the Tronox Retirement Plan, which shall be
                substantially similar in all Material Features to the Kerr-McGee
                Retirement Plan. In addition, Tronox shall establish the Tronox Benefits
                Restoration Plan, which shall be substantially similar in all Material
                Features to the defined benefit portion of the Kerr-McGee Benefits
                Restoration Plan. Tronox may, but is not required to, establish a
                plan
                that mirrors the defined contribution portion of the Kerr-McGee Benefits
                Restoration Plan.

            

    

     

    
      	(b)  	
              Health
                Plans.
                The Tronox Health Plans shall be substantially similar in all Material
                Features to the Kerr-McGee Health Plans, except that the participants’
                share of any premium payments may differ from the payment levels
                of
                participants in the Kerr-McGee Health Plans (except as provided below
                with
                respect to the provision of health benefits to retirees and their
                spouses
                and dependents).

            

    

     

    
      	(c)  	
              Leave
                of Absence Programs. The
                Tronox Leave of Absence Programs shall not cause any Transferred
                Individual to forfeit any accrued vacation or leave that is transferred
                to
                Tronox or a Tronox Entity from Kerr-McGee or a Kerr-McGee Entity
                that
                could not be forfeited under the applicable Kerr-McGee Leave of Absence
                Program. 

            

    

     

    
      	(d)  	
              Non-U.S.
                Benefit Plans.
                Tronox shall establish Non-U.S. Benefit Plans to the extent provided
                in
                Article
                10.

            

    

     

    
      	(e)  	
              Incentive
                Awards.
                Tronox shall establish incentive plans to the extent provided in
                Section
                3.02.

            

    

     

    
      	(f)  	
              DCSA
                and HCSA Plans.
                Tronox shall establish a DCSA Plan and an HCSA Plan for the remainder
                of
                the calendar year in which the Distribution Date occurs to the extent
                provided in Section 6.03.

            

    

     

    
      	(g)  	
              Disability
                Plans.
                Tronox shall establish Disability Plans to the extent provided in
                Section
                6.05.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Nothing
      in this Agreement is intended to prohibit Tronox or any Tronox Entity from
      amending or terminating any Tronox Employee Benefit Plan at any time after
      the
      Close of the Distribution Date, provided that: (a) any such amendment or
      termination is permitted by law (including under section 411(d)(6) of the Code
      or section 204(g) of ERISA), (b) the Material Features of the Tronox Health
      Plans and Life Insurance Plans that apply to retirees (regardless of whether
      the
      retiree retires before the Close of the Distribution Date) or their spouses
      or
      dependents shall not be amended before the third anniversary of the Distribution
      Date, (c) any such amendment or termination complies with Tronox’s obligations
      to contribute to the UMWA Combined Benefit Fund and to provide Medicare Part
      B
      reimbursements as required by Sections 6.13
      and
6.14,
      and
      (d) any such amendment or termination is permitted by any applicable
      collective bargaining agreement.

     

    Those
      Tronox Stock Plans as to which shareholder approval is required shall be adopted
      by Tronox and approved by a Kerr-McGee Entity as sole shareholder of Tronox,
      before their effective dates. 

     

    2.04.  Terms
      of Participation in Tronox Employee Benefit Plans.

     

    The
      Tronox Employee Benefit Plans shall be, with respect to Tronox Individuals,
      in
      all respects the successors in interest to, and shall not provide benefits
      that
      duplicate benefits provided by, the corresponding Kerr-McGee Employee Benefit
      Plans. Kerr-McGee and Tronox shall agree on methods and procedures to prevent
      Tronox Individuals and Transferred Individuals from receiving duplicative
      benefits from the Kerr-McGee Employee Benefit Plans and the Tronox Employee
      Benefit Plans. 

     

    With
      respect to Transferred Individuals, each Tronox Employee Benefit Plan that
      is
      effective on the Offering Date (in the case of the Stock Plans) or the
      Distribution Date (in the case of all Employee Benefit Plans other than the
      Stock Plans) shall provide that all service, all compensation and all other
      benefit-affecting determinations that, immediately before their effective dates,
      were recognized under the corresponding Kerr-McGee Employee Benefit Plan shall,
      as of the Offering Date or Distribution Date (as applicable), receive full
      recognition, credit, and validity and be taken into account under such Tronox
      Employee Benefit Plan to the same extent as if they occurred under such Tronox
      Employee Benefit Plan, except to the extent that duplication of benefits would
      result.

     

    The
      provisions of this Agreement for the transfer of assets from certain trusts
      relating to Kerr-McGee Employee Benefit Plans (including Non-U.S. Benefit Plans)
      to the corresponding trusts relating to Tronox Employee Benefit Plans (including
      Non-U.S. Benefit Plans) are based upon the understanding of the parties that
      each such Tronox Employee Benefit Plan will assume all liabilities of the
      corresponding Kerr-McGee Employee Benefit Plan to or relating to Transferred
      Individuals, as provided for in this Agreement. If any such liabilities are
      not
      effectively assumed by the appropriate Tronox Employee Benefit Plan and are
      retained by the corresponding Kerr-McGee Employee Benefit Plan, then the amount
      of assets transferred to the trust relating to such Tronox Employee Benefit
      Plan
      from the trust relating to the corresponding Kerr-McGee Employee Benefit Plan
      shall be recomputed, as set forth below but taking into account the retention
      of
      such liabilities by such Kerr-McGee Employee Benefit Plan, and assets shall
      be
      transferred by the trust relating to such Tronox Employee Benefit Plan to the
      trust relating to such Kerr-McGee Employee Benefit Plan so as to place each
      such
      trust in the position it would have been in, had the initial asset transfer
      been
      made in accordance with such recomputed amount of assets.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    2.05.  Allocation
      of Costs.

     

    Between
      the Offering Date and the Close of the Distribution Date, all Kerr-McGee
      Employee Benefit Plans will be administered by employees of Kerr-McGee or a
      Kerr-McGee Entity, and Tronox or a Tronox Entity shall reimburse Kerr-McGee
      or
      the appropriate Kerr-McGee Entity for their ratable share of such costs.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      3.   TERMS
      OF EMPLOYMENT AND COMPENSATION

     

    3.01.  Salary
      and Base Pay.

     

    Until
      the Distribution Date, Tronox and any Tronox Entity shall continue to use
      existing salary or pay structures for Transferred Individuals and Transferred
      Non-U.S. Individuals. However, nothing in this Agreement shall prohibit Tronox
      or any Tronox Entity from modifying the existing salary or pay structures
      prospectively in any manner Tronox or the Tronox Entity deems appropriate after
      the Distribution Date.

     

    3.02.  Incentive
      Awards.

     

    
      	(a)  	
              2005
                Short Term Incentive Awards.
                For the 2005 calendar year (or such later year during which the Offering
                Date occurs), Awards under the Kerr-McGee Short Term Incentive Plans
                for
                Transferred Individuals shall be divided as
                follows:

            

    

     

    
      	(1)  	
              The
                performance targets and Award amounts in effect as of the Offering
                Date
                shall be prorated for the portion of 2005 that occurs between January
                1,
                2005, and the Offering Date. Kerr-McGee, in its discretion, shall
                determine the extent to which these prorated performance targets
                were
                achieved. Kerr-McGee shall ensure that Tronox receives an amount
                sufficient to fund the prorated portion of the 2005 Awards on the
                earlier
                to occur of (A) the Distribution Date or (B) the date on which Tronox
                makes payment to the Transferred Individual in connection with such
                Awards. 

            

    

     

    
      	(2)  	
              Tronox
                and the Tronox Entities shall establish appropriate performance targets
                and Award amounts that shall be in effect for the portion of 2005
                that
                occurs between the Offering Date and December 31, 2005. Tronox or
                the
                applicable Tronox Entity, in its discretion, shall determine the
                extent to
                which the performance targets were achieved.

            

    

     

    
      	(3)  	
              Tronox
                shall pay to each Transferred Individual both (A) the portion of
                his 2005
                Award prorated for the period from January 1, 2005 to the Offering
                Date,
                and (B) the portion of his 2005 Award prorated for the period from
                the
                Offering Date to December 31, 2005, in a single payment at the time
                specified under the applicable Short Term Incentive
                Plan.

            

    

     

    
      	(b)  	
              Long
                Term Performance Awards with Performance Cycles that Include
                2005.
                For any performance cycles that include the 2005 calendar year (or
                such
                later year during which the Offering Date occurs), 

            

    

     

    
      	(1)  	
              Kerr-McGee
                shall pay, in accordance with its terms, all, or any portion of,
                a
                performance unit Award that is held by a Transferred Individual and
                that
                is no longer outstanding on the Distribution Date under the Kerr-McGee
                Stock Plans.

            

    

     

    
      	(2)  	
              All,
                or any portion of, a performance unit Award that is held by a Transferred
                Individual and that is outstanding on the Distribution Date under
                the
                Kerr-McGee Stock Plans shall be
                canceled.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	(3)  	
              Tronox
                shall provide to each Transferred Individual a long term performance
                Award
                (in the form of restricted stock and/or stock options) that is equal
                in
                value to the value of the forfeited portion of any Award as described
                in
                Section 3.02(b)(2).
                As soon as practicable following the Offering Date, Kerr-McGee shall
                notify Tronox of the value of the portion of any Award that will
                be
                forfeited pursuant to this Section 3.02(b),
                with such value being determined by calculating total shareholder
                return
                and associated payout as if the entire performance cycle ended on
                the
                Offering Date.

            

    

     

    
      	(c)  	
              Compliance
                with Section 409A of the Code.
                To the extent practicable, all incentive Awards shall be paid in
                such a
                manner as to avoid the adverse consequences of section 409A of the
                Code.
                

            

    

     

    3.03.  Severance.

     

    Tronox
      or the applicable Tronox Entity shall provide severance benefits to any
      Transferred Individual whose employment with Tronox or a Tronox Entity is
      terminated (other than for cause) after the Close of the Distribution Date
      and
      before the first anniversary of the Distribution Date that are at least as
      great
      as the severance benefits that such individual would have received had his
      employment been terminated as a direct result of the transaction consummated
      on
      the Distribution Date. 

     

    3.04.  Success
      Bonus Program.

     

    Kerr-McGee
      shall
      be responsible for and shall retain all liabilities under the Kerr-McGee
      Corporation 2005 Success Bonus Program and shall provide for full payment of
      all
      bonuses owed under such program as soon as practicable after a Transferred
      Individual becomes entitled to such payment.

     

    3.05.  2005
      Retention Program.

     

    Effective
      as of the Distribution Date, Tronox shall assume and be solely responsible
      for
      all unpaid liabilities to or relating to Transferred Individuals under the
      Kerr-McGee Corporation 2005 Retention Program and shall provide for full payment
      of all bonuses owed under such program as soon as feasible following the
      expiration of the retention period required under such program. As soon as
      practicable after Tronox or a Tronox Entity pays any award under the Kerr-McGee
      Corporation 2005 Retention Program to a Transferred Individual, Kerr-McGee
      shall
      reimburse Tronox for the full amount of such payment multiplied by a fraction,
      the numerator of which is the total number of days from and including April
      1,
      2005 until the Offering Date, and the denominator of which is the total number
      of days from and including April 1, 2005 until the date the award is payable
      under such program. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      4.   DEFINED
      BENEFIT RETIREMENT PLANS

     

    4.01.  Establishment
      of Mirror Retirement Plan and Trust.

     

    Effective
      Immediately after the Distribution Date, Tronox shall establish, or cause to
      be
      established, a Retirement Plan and Pension Trust qualified in accordance with
      Code section 401(a), and exempt from taxation under Code section 501(a).

     

    Before
      the expiration of the applicable remedial amendment period under Code section
      401(b), Tronox shall file, or shall cause to be filed, an application for a
      determination from the IRS that the Tronox Retirement Plan and the Tronox
      Pension Trust are qualified within the meaning of sections 401(a) and 501(a)
      of
      the Code, respectively. Tronox shall timely make, or cause to be made, any
      modifications to the Tronox Retirement Plan and the Tronox Pension Trust
      required by the IRS as a condition of issuing a favorable
      determination.

     

    4.02.  Assumption
      of Pension Plan Liabilities.

     

    Immediately
      after the Distribution Date, all liabilities relating to Transferred Individuals
      under the Kerr-McGee Retirement Plan shall cease to be liabilities of the
      Kerr-McGee Retirement Plan and shall be transferred to and assumed by the Tronox
      Retirement Plan. 

     

    
      	4.03.  	
              Transfer
                of Assets.

            

    

     

    Assets
      shall be transferred from the Kerr-McGee Pension Trust to the Tronox Pension
      Trust in connection with the assumption by the Tronox Retirement Plan of
      liabilities relating to Transferred Individuals under the Kerr-McGee Retirement
      Plan in two stages, an initial pension transfer and a final pension transfer,
      as
      described below:

     

    
      	(a)  	
              The
                Initial Pension Transfer.
                The initial pension transfer shall be in an amount equal to at least
                ninety percent (90%) of Kerr-McGee’s reasonable best estimate on the
                Offering Date of the Pension Transfer Amount. Kerr-McGee shall transfer
                or
                cause to be transferred the amount of the initial pension transfer
                from
                the Kerr-McGee Pension Trust to the Tronox Pension Trust on the first
                day
                after the Distribution Date on which the New York Stock Exchange
                is open
                for business (the “First Transfer Date”).

            

    

     

    
      	(b)  	
              The
                Final Pension Transfer.
                On a date agreed upon by Kerr-McGee and Tronox that is no later than
                six
                months after the Distribution Date, or on such later date as they
                may
                agree (the “Final Transfer Date”), (A) Kerr-McGee shall transfer or cause
                to be transferred from the Kerr-McGee Pension Trust to the Tronox
                Pension
                Trust assets of the Kerr-McGee Retirement Plan in an amount equal
                to the
                excess, if any, of the Pension Transfer Amount over the amount transferred
                as of the First Transfer Date, or (B) Tronox shall transfer or cause
                to be
                transferred from the Tronox Pension Trust to the Kerr-McGee Pension
                Trust
                assets of the Tronox Retirement Plan, in an amount equal to the excess,
                if
                any, of the amount transferred as of the First Transfer Date over
                the
                Pension Transfer Amount.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    The
      amount to be transferred as of the Final Transfer Date shall be adjusted by
      (A)
      the aggregate amount of any pension benefit payments made by the Kerr-McGee
      Pension Trust on behalf of the Tronox Pension Trust (and by the aggregate amount
      of any pension benefit payments made by the Tronox Pension Trust on behalf
      of
      the Kerr-McGee Pension Trust) before the Final Transfer Date, and to reflect
      data corrections and computational refinements, and (B) interest calculated
      from
      the First Transfer Date at a rate equal to the London InterBank Offered Rate
      (LIBOR) plus 2 percent per year. 

     

    On
      or
      before the Final Transfer Date, Kerr-McGee shall provide Tronox with a copy
      of
      the actuarial reports relating to the determination of the Pension Transfer
      Amount, together with a written certification of the Pension Transfer Amount
      prepared by the enrolled actuary for the Kerr-McGee Retirement
      Plan.

     

    
      	4.04.  	
              Pension
                Plan Transfer Amount.

            

    

     

    
      	(a)  	
              Except
                as provided in Section 4.04(b),
                “Pension Transfer Amount” shall mean the amount equal to the projected
                benefit obligation for Transferred Individuals under such plan as
                of the
                Close of the Distribution Date (using the actuarial methods and
                assumptions used to value the plan on a termination basis).
                

            

    

     

    
      	(b)  	
              Notwithstanding
                the foregoing provisions of this Article
                4,
                in no event shall the Pension Transfer Amount be less than the minimum
                required transfer amount for Transferred Individuals determined in
                accordance with the terms of the Kerr-McGee Retirement Plan and the
                requirements of section 414(l) of the
                Code.

            

    

     

    
      	(c)  	
              For
                purposes of determining all actuarial liabilities required under
                this
                Section 4.04,
                active and inactive employee data shall be based on the census data
                as of
                the Distribution Date and not the census data as of the Offering
                Date.
                

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      5.   DEFINED
      CONTRIBUTION RETIREMENT PLANS

     

    5.01.  Establishment
      of SIP and Trust

     

    Effective
      Immediately after the Distribution Date, Tronox shall establish, or cause to
      be
      established, a SIP and related trust qualified under Code section 401(a), exempt
      from taxation under Code section 501(a), and forming part of the Tronox
      SIP.

     

    Before
      the expiration of the applicable remedial amendment period, Tronox shall file,
      or shall cause to be filed, an application for a determination from the IRS
      that
      the Tronox SIP and the related trust are qualified within the meaning of
      sections 401(a) and 501(a) of the Code, respectively. Tronox shall timely make,
      or cause to be made, any modifications to the Tronox SIP and related trust
      required by the IRS as a condition of receiving a favorable
      determination.

     

    5.02.  Vesting
      in Kerr-McGee SIP.

     

    As
      of
      the Close of the Distribution Date, Kerr-McGee shall amend, or shall cause
      the
      amendment of, the Kerr-McGee SIP to provide that every Transferred Individual
      shall be fully vested in his account in the Kerr-McGee SIP to the extent such
      unvested amount has not been forfeited before the Close of the Distribution
      Date.

     

    5.03.  Acceptance
      of Rollovers. 

     

    Effective
      Immediately after the Distribution Date, the Tronox SIP shall accept the
      rollover of all or any portion of the vested account balance (including any
      outstanding participant loans) of any Transferred Individual who is a
      participant in the Kerr-McGee SIP and who properly completes the necessary
      forms
      to request such a rollover, provided that the Tronox SIP shall not be required
      to accept the rollover of any shares of Kerr-McGee Common Stock held in a
      participant’s Kerr-McGee SIP account. The Tronox SIP shall be solely responsible
      for all liabilities to or relating to Transferred Individuals under the
      Kerr-McGee SIP to the extent such Transferred Individuals roll over their
      account balances from the Kerr-McGee SIP to the Tronox SIP.

     

    Effective
      no later than Immediately after the Distribution Date, Tronox shall enter into
      agreements satisfactory to Kerr-McGee related to such rollovers, the maintenance
      of the necessary participant records, the appointment of an initial trustee
      under the Tronox SIP, and the engagement of an initial recordkeeper under the
      Tronox SIP. 

     

    5.04.  Maintenance
      of Universal Life Policy.

     

    Tronox
      shall assume the individual universal life insurance policies into which certain
      Transferred Individuals who participate in the Kerr-McGee SIP are entitled
      to
      contribute and shall maintain such policies under the same terms as are in
      effect under the Kerr-McGee SIP on the Distribution Date. 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      6.  HEALTH
      AND WELFARE PLANS

     

    6.01.  Establishment
      of Health and Welfare Plans.

     

    Effective
      Immediately after the Distribution Date, Tronox shall establish, or cause to
      be
      established, Tronox Health and Welfare Plans.

     

    6.02.  Health
      and Welfare Plans.

     

    
      	(a)  	
              The
                Kerr-McGee Health and Welfare Plans shall provide coverage, subject
                to the
                provisions of such plans, for Transferred Individuals otherwise covered
                under the Kerr-McGee Health and Welfare Plans for any claim incurred
                by
                such Transferred Individuals before the Close of the Distribution
                Date
                (regardless of whether the claim is actually presented to Kerr-McGee
                or
                the Kerr-McGee Health and Welfare Plan for payment before the Close
                of the
                Distribution Date). Tronox or the appropriate Tronox Entity shall
                reimburse Kerr-McGee or the Kerr-McGee Health and Welfare Plans for
                any
                claims, expenses, costs, or other expenditures incurred by Kerr-McGee
                or
                the Kerr-McGee Health and Welfare Plans in providing such coverage
                for
                Transferred Individuals to the same extent Tronox or the applicable
                Tronox
                Entity would have reimbursed Kerr-McGee or the Kerr-McGee Health
                and
                Welfare Plan had the IPO not
                occurred.

            

    

     

    
      	(b)  	
              Tronox
                shall cause its Health and Welfare Plans to recognize and maintain
                all
                coverage and contribution elections made by Transferred Individuals
                under
                the Kerr-McGee Health and Welfare Plans. Tronox shall apply such
                elections
                under its Health and Welfare Plans for the remainder of the period
                or
                periods for which the elections are by their terms applicable.
                

            

    

     

    
      	(c)  	
              Tronox
                shall also cause its Health and Welfare Plans to recognize and give
                credit
                for (1) all amounts applied by Transferred Individuals under the
                Kerr-McGee Health and Welfare Plans to deductibles, out-of-pocket
                maximums, and other applicable benefit coverage limits with respect
                to
                which such expenses have been incurred during the calendar year in
                which
                the Distribution Date occurs and (2) all benefits paid to, or received
                by,
                Transferred Individuals under the Kerr-McGee Health and Welfare Plans,
                in
                either case, for purposes of determining when such persons have received
                the maximum benefits, including lifetime maximum benefits, provided
                under
                its Health and Welfare Plans.

            

    

     

    6.03.  Special
      Rule for HCSA and DCSA Plans.

     

    To
      the
      extent any Transferred Individual contributed to an account under the Kerr-McGee
      HCSA Plan or DCSA Plan during the calendar year in which the Distribution Date
      occurs, Kerr-McGee shall transfer, as soon as practicable after the Distribution
      Date, to the corresponding Tronox Health and Welfare Plan the account balances
      of the Transferred Individual for such calendar year under the Kerr-McGee HCSA
      Plan or DCSA Plan, regardless of whether the account balance is positive or
      negative.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    6.04.  Vendor
      Contracts.

     

    
      	(a)  	
              Third-Party
                ASO Contracts.

            

    

     

    
      	(1)  	
              At
                Tronox’s request, Kerr-McGee shall use its reasonable best efforts to
                cause each third-party administrator that operates pursuant to an
                administrative services only contract that relates to any of the
                Kerr-McGee Health and Welfare Plans (an “ASO Contract”) in existence as of
                the date of this Agreement to enter into an agreement with Tronox
                with
                substantially similar terms and conditions. Such terms and conditions
                shall include the financial and termination provisions, performance
                standards, methodology, auditing policies, quality measures, reporting
                requirements and target claims. The request by Tronox for Kerr-McGee
                to
                negotiate such ASO Contracts shall be deemed to be the authorization
                by
                Tronox of Kerr-McGee to act on its behalf to extend to Tronox the
                terms
                and conditions of the ASO Contracts. Tronox shall use its reasonable
                best
                efforts to cooperate with Kerr-McGee in such efforts, and Tronox
                shall not
                perform any act, including discussing any alternative arrangements
                with
                any third party, that would prejudice Kerr-McGee’s
                efforts.

            

    

     

    
      	(2)  	
              If
                it becomes reasonably likely that Kerr-McGee will not be successful
                in
                negotiating contract language that will permit compliance with this
                Section 6.04(a),
                Kerr-McGee shall so notify Tronox promptly, and after such notification,
                Tronox shall be released from the restriction contained in the last
                sentence of Section 6.04(a)(1).
                In such case, Kerr-McGee may offer a contingency plan for the
                administration of the portion of the Kerr-McGee Health and Welfare
                Plans
                affected by the unavailability of such ASO Contract, including, if
                possible, an offer by the third-party administrator under the relevant
                ASO
                Contract of its services under a separate contract with Tronox, with
                terms
                and conditions as similar as practicable to those of the ASO Contract
                with
                Kerr-McGee. Tronox shall, effective Immediately after the Distribution
                Date, either adopt its own contingency plan or the contingency plan
                established by Kerr-McGee for such
                arrangement.

            

    

     

    
      	(b)  	
              Insured
                HMO/PPO/Expatriate Carrier
                Agreements.

            

    

     

    
      	(1)  	
              At
                Tronox’s request, Kerr-McGee shall use its reasonable best efforts to
                cause all HMOs, PPOs, and Expatriate Carriers that provide medical
                services under the Kerr-McGee Health Plans in existence as of the
                date of
                this Agreement to provide coverage to employees and retirees of Tronox
                on
                terms that are substantially similar to the terms and conditions
                of the
                letter agreement between Kerr-McGee and such carrier (“HMO Agreement”), in
                each case, from the Distribution Date until December 31, 2006, or
                such
                other date on which the parties may agree. Such terms and conditions
                shall
                include the financial and termination provisions of the HMO Agreements.
                The request of Tronox as described above shall be deemed Tronox’s
                authorization of Kerr-McGee to act on its behalf to extend to Tronox
                the
                terms and conditions of the HMO Agreements. Tronox shall use its
                reasonable best efforts to cooperate with Kerr-McGee in such efforts,
                and
                Tronox shall not perform any act, including discussing any alternative
                arrangements with any third-party that would prejudice Kerr-McGee’s
                efforts.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	(2)  	
              Tronox
                shall have the sole discretion to determine which HMOs, PPOs, or
                Expatriate Carriers to offer to the participants in the Tronox Health
                Plans Immediately after the Distribution
                Date.

            

    

     

    6.05.  Disability
      Plans.

     

    
      	(a)  	
              At
                Tronox’s request, Kerr-McGee shall use its reasonable best efforts to
                cause the insurance carriers that provide coverage under the Kerr-McGee
                Disability Plans in existence as of the date of this Agreement to
                provide
                coverage for the employees of Tronox and Tronox Entities on terms
                that are
                substantially similar to the terms and conditions of the letter agreement
                between Kerr-McGee and such insurance carrier (“Disability Agreement”), in
                each case, from the Distribution Date until December 31, 2006, or
                such
                other date on which the parties may agree. Such terms and conditions
                shall
                include the financial and termination provisions of the Disability
                Agreements. The request of Tronox as described above shall be deemed
                Tronox’s authorization of Kerr-McGee to act on its behalf to negotiate the
                extension to Tronox of the terms and conditions of the Disability
                Agreements. Tronox shall use its reasonable best efforts to cooperate
                with
                Kerr-McGee in such efforts, and Tronox shall not perform any act,
                including discussing any alternative arrangements with any third-party
                that would prejudice Kerr-McGee’s
                efforts.

            

    

     

    
      	(b)  	
              As
                of the Distribution Date, a portion of the Kerr-McGee Disability
                Plans
                shall be transferred to Tronox to create the Tronox Disability Plan.
                Kerr-McGee and Tronox shall use their reasonable best efforts to
                replace
                the Disability Agreements with two groups of separate letter agreements
                with the insurance carriers reflecting the division of the Kerr-McGee
                Disability Plans between Kerr-McGee and Tronox.

            

    

     

    6.06.  Life
      Insurance Plans.

     

    At
      Tronox’s request, Kerr-McGee shall use its reasonable best efforts to cause the
      insurance carrier that provides coverage under the Kerr-McGee Life Insurance
      Plans to provide coverage for employees and retirees under the Tronox Life
      Insurance Plans effective Immediately after the Distribution Date on terms
      that
      are substantially similar to those provided under the Kerr-McGee Life Insurance
      Plans. 

     

    6.07.  COBRA.

     

    Through
      the Close of the Distribution Date, Kerr-McGee shall be solely responsible
      for
      administering compliance with the health care continuation coverage requirements
      of COBRA and the Kerr-McGee Health and Welfare Plans with respect to Tronox
      Individuals, and Tronox and the Tronox Entities shall be responsible for filing
      all necessary employee change notices with respect to their respective employees
      in accordance with applicable Kerr-McGee policies and procedures. Effective
      Immediately after the Distribution Date, Tronox shall be solely responsible
      for
      providing health care continuation coverage under COBRA with respect to any
      Transferred Individual (regardless of whether such Transferred Individual first
      became eligible for COBRA coverage at any time before the Close of the
      Distribution Date), including any Transferred Individual who became eligible
      for
      COBRA in connection with a Change in Control.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    6.08.  Leave
      of Absence Programs and FMLA.

     

    
      	(a)  	
              Effective
                Immediately after the Distribution Date: (1) Tronox shall honor,
                and shall
                cause each Tronox Entity to honor, all terms and conditions of leaves
                of
                absence which have been granted to any Transferred Individual under
                a
                Kerr-McGee Leave of Absence Program or FMLA before the Close of the
                Distribution Date by Kerr-McGee, a Kerr-McGee Entity, Tronox, or
                a Tronox
                Entity, including such leaves that are to commence after the Distribution
                Date; (2) Tronox and each Tronox Entity shall be solely responsible
                for administering leaves of absence and compliance with FMLA with
                respect
                to their employees; and (3) Tronox and each Tronox Entity shall recognize
                all periods of service of Transferred Individuals with Kerr-McGee
                or a
                Kerr-McGee Entity, as applicable, to the extent such service is recognized
                by Kerr-McGee for the purpose of eligibility for leave entitlement
                under
                the Kerr-McGee Leave of Absence Programs and FMLA; provided that
                no
                duplication of benefits shall be required by the
                foregoing.

            

    

     

    
      	(b)  	
              As
                soon as administratively practicable after the Close of the Distribution
                Date, Kerr-McGee shall provide to Tronox copies of all records pertaining
                to the Kerr-McGee Leave of Absence Programs and FMLA with respect
                to all
                Transferred Individuals to the extent such records have not been
                provided
                previously to Tronox or a Tronox
                Entity.

            

    

     

    6.09.  Kerr-McGee
      Workers’ Compensation Program.

     

    
      	(a)  	
              Administration
                of Claims. Effective
                Immediately after the Distribution Date, Tronox shall be responsible
                for
                the administration of all claims that are, or have been, incurred
                under
                the Kerr-McGee WCP before the Distribution Date by Tronox Individuals
                (“Tronox WCP Claims”). Tronox shall discharge its responsibility by
                securing insurance coverage or, to the extent Legally Permissible
                (as
                defined below), securing a self-insurance certificate in one or more
                states. For purposes of this Section 6.09(a),
                “Legally Permissible” shall be determined on a state-by-state basis, and
                shall mean that administration of Tronox WCP Claims by Tronox is
                permissible under the applicable state’s workers’ compensation laws
                (taking into account all relevant facts, including that Tronox may
                have a
                self-insurance certificate in that
                state).

            

    

     

    
      	(b)  	
              Cooperation.
                Each party shall fully cooperate with the other with respect to the
                administration and reporting of Tronox WCP Claims and the transfer
                of the
                administration of any Tronox WCP Claims to Tronox as determined under
                this
                Section 6.09.
                Upon the request of Tronox, Kerr-McGee will make reasonable efforts
                to
                support any application Tronox may make for a self-insurance certificate
                in one or more states.

            

    

     

    6.10.  Kerr-McGee
      Employee Assistance Program.

     

    As
      of
      the Close of the Distribution Date, the Kerr-McGee Employee Assistance Program
      shall cease to have any responsibility to provide employee assistance services
      for any Transferred Individuals.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    6.11.  Unemployment
      Insurance Tax Management Program.

     

    At
      Tronox’s request, Kerr-McGee shall use its reasonable best efforts to cause its
      unemployment insurance tax management vendor and any successor thereto to enter
      into an agreement with Tronox to provide unemployment insurance tax management
      under substantially similar terms and conditions to the terms and conditions
      of
      the agreement between Kerr-McGee and the vendor from Immediately after the
      Distribution Date through December 31, 2006, or such other date on which the
      parties may agree. These efforts shall substantially conform to the guidelines
      set forth in Section 6.04(a)
      as if
      such agreements were ASO Contracts. Kerr-McGee shall use its reasonable best
      efforts to cause such agreements to provide that Tronox’s participation shall
      include administration of all unemployment compensation claims of Transferred
      Individuals, regardless of whether such claims were filed before, on, or after
      the Distribution Date.

     

    6.12.  Administration.

     

    
      	(a)  	
              Health
                and Welfare Plan Subrogation Recovery.
                After the Distribution Date, Kerr-McGee and Tronox shall pay to each
                other
                any amounts recovered from time to time through subrogation or otherwise
                for claims that are paid or payable by the other party (as provided
                in
                Section 6.02).

            

    

     

    
      	(b)  	
              Exchange
                of Historical Data.
                Kerr-McGee acknowledges that Tronox shall have access to medical
                claims
                and eligibility data for Tronox Individuals through the Close of
                the
                Distribution Date. Kerr-McGee will allow Tronox to make written requests
                for this historical data to the extent permitted by
                law.

            

    

     

    6.13.  UMWA
      Combined Benefit Fund.

     

    On
      the
      Distribution Date, Tronox shall assume all liability for payments due to the
      UMWA Combined Benefit Fund with respect to Transferred Individuals. Kerr-McGee
      and Tronox shall cooperate in taking all steps necessary to effectuate this
      assumption of liability.

     

    6.14.  Medicare
      Part B Reimbursements.

     

    On
      the
      Distribution Date, Tronox shall assume all liability to reimburse 43 former
      Southwest Refining employees for Medicare Part B premiums.

     

    6.15.  Reimbursements
      by Kennecott.

     

    Beginning
      on the Distribution Date, Tronox shall be entitled to receive all payments
      from
      Kennecott Energy and Coal Company designated as reimbursements for the provision
      of medical coverage to Transferred Individuals. Kerr-McGee and Tronox shall
      cooperate in taking all steps necessary to effectuate this
      entitlement.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    6.16.   
      Application of Article 6 to Tronox
      Entities. 

     

    Any
      reference in this Article
      6
      to
“Tronox” shall include a reference to a Tronox Entity when and to the extent
      Tronox has caused the Tronox Entity to (a) become a party to a vendor contract,
      group insurance contract, or HMO letter agreement associated with a Tronox
      Health and Welfare Plan, (b) become a self-insured entity for the purposes
      of
      one or more Tronox Health and Welfare Plans, (c) assume all or a portion of
      the
      liabilities or administrative responsibilities for benefits which arose before
      the Close of the Distribution Date under a Kerr-McGee Health and Welfare Plan
      and which were expressly assumed by Tronox pursuant to the terms of this
      Agreement, or (d) take any other action, extend any coverage, assume any other
      liability or fulfill any other responsibility that Tronox would otherwise be
      required to take under the terms of this Article
      6,
      unless it is clear from the context that the particular reference is not
      intended to include a Tronox Entity. In all such instances in which a reference
      in this Article
      6
      to
“Tronox” includes a reference to a Tronox Entity, Tronox shall be responsible to
      Kerr-McGee for ensuring that the Tronox Entity complies with the applicable
      terms of this Agreement and the Transferred Individuals allocated to such Tronox
      Entity shall have the same rights and entitlements to benefits under the
      applicable Tronox Health and Welfare Plans that the Transferred Individual
      would
      have had if he or she had instead been allocated to Tronox.

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    ARTICLE
      7.   STOCK-BASED
      COMPENSATION

     

    7.01.  Establishment
      of Plan.

     

    Effective
      Immediately after the Offering Date, Tronox shall establish, or cause to be
      established, a Stock Plan as provided in Section 2.03.

     

    7.02.  Stock
      Options. 

     

    
      	(a)  	
              Vested
                Options.
                Except as otherwise provided in this Article
                7,
                to the extent that a Transferred Individual is holding an Award consisting
                of a Kerr-McGee Option that is vested and outstanding as of the Close
                of
                the Distribution Date, that Transferred Individual shall be treated
                as
                experiencing a separation from service from, or otherwise terminating
                employment with, Kerr-McGee. Any such Option shall expire unless
                it is
                exercised within the time provided in the Option itself.
                

            

    

     

    
      	(b)  	
              Unvested
                Options. Except
                as otherwise provided in this Article
                7,
                the Executive Compensation Committee of Kerr-McGee’s Board of Directors
                and the Tronox Committee shall cause each Award consisting of a Kerr-McGee
                Option to the extent unvested and outstanding as of the Distribution
                Date
                and held by a Transferred Individual to be adjusted, effective as
                of the
                Distribution Date, by substitution of a Tronox Option under a Tronox
                Stock
                Plan. Each such Tronox Option shall provide for the purchase of a
                number
                of shares of Tronox Common Stock equal to the number of shares of
                Kerr-McGee Common Stock subject to the corresponding Kerr-McGee Option
                as
                of the Distribution Date, multiplied by the Ratio, with fractional
                shares
                rounded down to the nearest whole share. The per-share exercise price
                of
                such Tronox Option shall equal the per-share exercise price of the
                corresponding Kerr-McGee Option as of the Distribution Date, divided
                by
                the Ratio, rounded to the nearest hundredth of a cent. Each such
                Tronox
                Option shall otherwise have the same terms and conditions as were
                applicable to the corresponding Kerr-McGee Option as of the Distribution
                Date, except that references to Kerr-McGee, and to Kerr-McGee Entities,
                shall be amended to refer to Tronox and to Tronox Entities.

            

    

     

    7.03.  Restricted
      Stock. 

     

    The
      Tronox Committee shall cause each Award that consists of restricted shares
      of
      Kerr-McGee Common Stock that is outstanding as of the Distribution Date and
      is
      held by a Transferred Individual to be adjusted, effective as of the
      Distribution Date, by substitution of a new award under a Tronox Stock Plan
      consisting of a number of restricted shares of Tronox Common Stock equal to
      the
      number of restricted shares of Kerr-McGee Common Stock constituting such Award
      as of the Distribution Date multiplied by the Ratio, with fractional shares
      rounded down. Each such adjusted Award shall otherwise have the same terms
      and
      conditions as were applicable to the corresponding Kerr-McGee Award as of the
      Distribution Date, except that references to Kerr-McGee and Kerr-McGee Entities
      shall be amended to refer to Tronox and Tronox Entities. In the event of a
      Change in Control, the adjustments and substitution provided for herein shall
      be
      made as of the Distribution Date with respect to the awards outstanding on
      the
      day before the Change in Control and held by Tronox Individuals, based on the
      Ratio. 

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    ARTICLE
      8.   EXECUTIVE
      BENEFITS

     

    8.01.  Establishment
      of Plans.

     

    Effective
      Immediately after the Distribution Date, Tronox and the Tronox Entities shall
      assume and be solely responsible for all liabilities to or relating to
      Transferred Individuals under the defined benefit portion of the Kerr-McGee
      Benefits Restoration Plan and under the Kerr-McGee Corporation Chemical Division
      Nonqualified Retirement Plan. 

     

    8.02.  Kerr-McGee
      Benefits Restoration Plan.

     

    Tronox
      shall establish a plan that mirrors the defined benefits portion of the
      Kerr-McGee Benefits Restoration Plan in all Material Features. Immediately
      after
      the Distribution Date, all liabilities relating to Transferred Individuals
      under
      the defined benefit portion of the Kerr-McGee Benefits Restoration Plan shall
      cease to be liabilities of Kerr-McGee or any Kerr-McGee Entity and shall be
      assumed by Tronox or a Tronox Entity, as appropriate.

     

    8.03.  Rabbi
      Trust. 

     

    
      	(a)  	
              Establishment
                of Mirror Rabbi Trust. Effective
                no later than Immediately after the Distribution Date, Tronox shall
                establish, or cause to be established, the Tronox Rabbi Trust as
                a grantor
                trust, which shall, unless otherwise determined by the Tronox Committee,
                be substantially similar in all Material Features to the Kerr-McGee
                Rabbi
                Trust. Tronox shall appoint as trustee under the Tronox Rabbi Trust
                the
                then-current trustee of the Kerr-McGee Rabbi
                Trust.

            

    

     

    
      	(b)  	
              Funding
                of Tronox Rabbi Trust.
                As soon as practicable after the Close of the Distribution Date,
                Kerr-McGee shall determine the amount of the liabilities under the
                Kerr-McGee Executive Benefit Plans that are payable from the Kerr-McGee
                Rabbi Trust as of the Distribution Date and the amount of such liabilities
                attributable to Transferred Individuals. Kerr-McGee shall then transfer
                to
                the trustee of the Tronox Rabbi Trust an amount equal to the projected
                benefit obligation of liabilities attributable to Transferred Individuals,
                to the extent such liabilities are funded under the Kerr-McGee Rabbi
                Trust
                as of the Distribution Date (the “Rabbi Trust Transfer Amount”). Assets
                shall be transferred from Kerr-McGee to the Tronox Rabbi Trust in
                a manner
                similar to that used to transfer the assets from the Kerr-McGee Pension
                Trust to the Tronox Pension Trust described in Section
                4.03.

            

    

     

    8.04.  Continuity
      Agreements.

     

    Effective
      as of the Offering Date, Tronox shall enter into Continuity Agreements with
      certain of its officers and key employees. These Continuity Agreements shall
      be
      similar in all Material Features to the Continuity Agreements that Kerr-McGee
      has in effect with its officers and key employees, as appropriate, as of the
      Offering Date. Neither the offering nor the Distribution (or Exchange), as
      contemplated by the Principal Agreement, shall entitle any Transferred
      Individual to any payments under a Continuity Agreement with Kerr-McGee or
      Tronox.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    8.05.  Code
      Section 162(m).

     

    Notwithstanding
      any other provision of this Article
      8,
      Kerr-McGee and the Executive Compensation Committee of Kerr-McGee’s Board of
      Directors and Tronox and the Tronox Committee may modify the procedures for
      approval and payment of compensation under Article
      8
      to
      persons who are “covered employees” for purposes of Code section 162(m), to the
      extent they reasonably determine that modifications are necessary and desirable
      to preserve the deductibility of compensation paid to such employees; provided,
      however, that no such modification shall reduce the compensation payable to
      such
      employees below the amount that would have been paid had there been no
      Distribution or Exchange.

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    ARTICLE
      9.  MISCELLANEOUS
      BENEFITS

     

    9.01.  Service
      Award Program.

     

    
      	(a)  	
              Before
                the Close of the Distribution Date, at the request of Tronox, Kerr-McGee
                shall use its reasonable best efforts to cause the vendor that provides
                service anniversary merchandise related to the Kerr-McGee Service
                Award
                Program as of the date of this Agreement to enter into a contract
                with
                Tronox and the Tronox Entities to provide service anniversary merchandise
                under similar terms and conditions to the terms and conditions of
                the
                contract between Kerr-McGee and the vendor effective Immediately
                after the
                Distribution Date. These efforts shall substantially conform with
                the
                guidelines set forth in Section 6.04(a)
                as if the service anniversary merchandise vendor contract were an
                ASO
                Contract.

            

    

     

    
      	(b)  	
              Tronox
                and the Tronox Entities may provide to their employees service anniversary
                merchandise bearing the name and/or logo of Kerr-McGee ordered by
                Kerr-McGee before the date of this Agreement and delivered under
                the
                Tronox Service Award Program to Transferred Individuals and other
                employees and former employees of Tronox and the Tronox Entities
                whose
                service anniversary occurs on or before December 31, 2005 (or such
                other
                date on which the parties shall agree), subject to the terms and
                conditions of any separate agreement between Kerr-McGee and Tronox
                regarding the use of the corporate names, logos, service marks, and
                other
                intellectual property of Kerr-McGee and a Kerr-McGee Entity. No service
                anniversary merchandise bearing the corporate name and/or logo of
                Kerr-McGee shall be delivered to any Transferred Individuals or other
                employees and former employees of Tronox and the Tronox Entities
                with
                respect to a service anniversary after December 31, 2005 (or such
                other
                date on which the parties shall agree), without the express written
                consent of Kerr-McGee.

            

    

     

    9.02.  Other
      Welfare Plans.

     

    Any
      Transferred Individual who is enrolled in a course that is being reimbursed
      through the Kerr-McGee Corporation Educational Assistance Program as of the
      Distribution Date shall be provided with continued reimbursement without
      interruption for such course to the extent provided under the Kerr-McGee
      Corporation Educational Assistance Program. If Tronox does not sponsor an
      Employee Benefit Plan that reimburses such Transferred Individual, Kerr-McGee’s
      plan shall provide the continued reimbursement as provided under the Kerr-McGee
      Corporation Educational Assistance Program, but Tronox shall reimburse
      Kerr-McGee for all liabilities relating to, arising out of or resulting from
      such on-going course after the Distribution Date. 

     

    This
      Agreement shall not affect any insurance contract providing coverage for long
      term care purchased by Transferred Individual through the Kerr-McGee Long Term
      Care Program prior to the Distribution Date. As of the Distribution Date, Tronox
      shall have no obligation to permit Transferred individuals to purchase long
      term
      care coverage through payroll deductions.

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    ARTICLE
      10.   NON-U.S.
      EMPLOYEES AND EMPLOYEE BENEFIT PLANS

     

    10.01.  In
      General.

     

    The
      provisions of Section 3.01 regarding salary and base pay shall apply with
      respect to Transferred Individuals and Transferred Non-U.S.
      Individuals.

     

    Kerr-McGee
      and Tronox intend that, to the fullest extent permitted by applicable law,
      the
      Kerr-McGee Non-U.S. Benefit Plans listed on Schedule II (other than the
      Kerr-McGee Plans listed as “U.K. Plans” on Schedule II), to the extent not
      sponsored by Tronox or a Tronox Entity, shall be transferred to Tronox or the
      applicable Tronox Entity on the Distribution Date, and neither Kerr-McGee nor
      any Kerr-McGee Entity shall have any liability with respect to such plans
      Immediately after the Distribution Date. To the extent such a transfer is not
      permitted by applicable law, Kerr-McGee and Tronox shall negotiate a resolution
      that results in Kerr-McGee, the Kerr-McGee Entities, Tronox, and the Tronox
      Entities being in the economic position they would have been in had the transfer
      been legally permitted.

     

    With
      respect to any liabilities to Transferred Non-U.S. Individuals other than those
      set forth in the two preceding paragraphs of this Section 10.01,
      Kerr-McGee and Tronox shall negotiate a resolution that results in Kerr-McGee
      and the Kerr-McGee Entities ceasing to have any liabilities as of the
      Distribution Date.

     

    10.02.  Stock
      Opportunity Grants.

     

    The
      Tronox Committee shall cause each Award that consists of stock opportunity
      grants relating to shares of Kerr-McGee Common Stock that is outstanding as
      of
      the Distribution Date and is held by a Transferred Individual to be adjusted,
      effective as of the Distribution Date, by substitution of a new award under
      a
      Tronox Stock Plan consisting of a number of stock opportunity grants or
      restricted stock units relating to shares of Tronox Common Stock equal to the
      number of stock opportunity grants of Kerr-McGee Common Stock constituting
      such
      Award as of the Distribution Date multiplied by the Ratio, with fractional
      shares rounded down. Each such adjusted Award shall otherwise have the same
      terms and conditions as were applicable to the corresponding Kerr-McGee Award
      as
      of the Distribution Date, except that references to Kerr-McGee and Kerr-McGee
      Entities shall be amended to refer to Tronox and Tronox Entities and dividend
      equivalent payments, if any, shall be payable after the Distribution Date with
      reference to dividends on Tronox Common Stock. In the event of a Change in
      Control, the adjustments and substitution provided for herein shall be made
      as
      of the Distribution Date with respect to the awards outstanding on the day
      before the Change in Control and held by Tronox Individuals, based on the Ratio.
      

     

    10.03.  Stock
      Options—Foreign Plans. 

     

    Subject
      to applicable law in non-U.S. jurisdictions, outstanding awards shall be
      adjusted with the aim of achieving equivalent treatment as described in
Article
      7.
      

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    ARTICLE
      11.   GENERAL
      AND ADMINISTRATIVE PROVISIONS

     

    11.01.  Actuarial
      and Accounting Methodologies and Assumptions.

     

    For
      purposes of this Agreement, unless specifically indicated otherwise: (a) all
      actuarial methodologies and assumptions used for a particular Employee Benefit
      Plan shall (except to the extent otherwise determined by Kerr-McGee and Tronox
      to be reasonable or necessary) be substantially the same as those used in the
      actuarial valuation of that Employee Benefit Plan used to determine minimum
      funding requirements under ERISA section 302 and Code section 412 for 2004,
      or,
      if such Employee Benefit Plan is not subject to such minimum funding
      requirements, used to determine Kerr-McGee’s deductible contributions under Code
      section 419A or, if such Plan is not subject to Code section 419A, the
      assumptions used to prepare Kerr-McGee’s audited financial statements for fiscal
      2004, as the case may be; and (b) the value of plan assets shall be the value
      established for purposes of audited financial statements of the relevant plan
      or
      trust for the period ending on the date as of which the valuation is to be
      made.
      Tronox liabilities relating to, arising out of or resulting from the status
      of
      Tronox and the Tronox Entities as Participating Companies in Kerr-McGee Health
      and Welfare Plans, as provided for in Section 2.02
      and
      all accruals relating thereto shall be determined by Kerr-McGee using actuarial
      assumptions and methodologies (including with respect to demographics, medical
      trends, and other relevant factors) determined by Kerr-McGee in a manner
      consistent with Kerr-McGee’s practice as in effect on the Distribution Date and
      in conformance with the generally accepted actuarial principles promulgated
      by
      the American Academy of Actuaries, the Code, ERISA, and/or generally accepted
      accounting principles, as applicable, in each case as interpreted by Kerr-McGee
      consistent with its past practice. Except as otherwise contemplated by this
      Agreement or as required by law, all determinations as to the amount or
      valuation of any assets of or relating to any Kerr-McGee Employee Benefit Plan
      (whether or not such assets are being transferred to a Tronox Employee Benefit
      Plan) shall be made pursuant to procedures to be established by the parties
      before the Distribution Date.

     

    11.02.  Sharing
      of Participant Information.

     

    Kerr-McGee
      and Tronox shall share, Kerr-McGee shall cause each applicable Kerr-McGee Entity
      to share, and Tronox shall cause each applicable Tronox Entity to share, with
      each other and their respective agents and vendors (without obtaining releases)
      all participant information necessary for the efficient and accurate
      administration of each of the Kerr-McGee Employee Benefit Plans and the Tronox
      Employee Benefit Plans during the respective transition periods applicable
      to
      such Employee Benefit Plans, as permitted by applicable law, and with respect
      to
      each of the Kerr-McGee Health and Welfare Plans and Tronox Health and Welfare
      Plans, Kerr-McGee and Tronox and their respective authorized agents shall,
      subject to applicable laws on confidentiality, be given reasonable and timely
      access to, and may make copies of, all information relating to the subjects
      of
      this Agreement in the custody of the other party, to the extent necessary for
      such administration.

     

    11.03.  Reporting,
      Disclosure, and Communications to Participants.

     

    While
      Tronox is a Participating Company in the Kerr-McGee Employee Benefit Plans,
      Tronox shall take, and shall cause each other applicable Tronox Entity to take,
      all actions necessary or appropriate to facilitate the distribution of all
      Kerr-McGee Employee Benefit Plan-related communications and materials to
      employees, participants and beneficiaries, including summary plan descriptions
      and related summaries of material modification, summary annual reports, and
      notices for the Kerr-McGee Employee Benefit Plans. Tronox shall pay Kerr-McGee
      the cost relating to the copies of all such documents provided to Tronox. Tronox
      shall assist, and Tronox shall cause each other applicable Tronox Entity to
      assist, Kerr-McGee in complying with all reporting and disclosure requirements
      of ERISA, including the preparation of Form 5500 annual reports for the
      Kerr-McGee Employee Benefit Plans, where applicable.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    11.04.  Non-Termination
      of Employment, No Third-Party Beneficiaries.

     

    No
      provision of this Agreement or the Principal Agreement shall be construed to
      create any right, or accelerate entitlement, to any compensation or benefit
      whatsoever on the part of any Tronox Individual or Transferred Individual or
      other future, present or former employee of Kerr-McGee, a Kerr-McGee Entity,
      Tronox, or a Tronox Entity under any Kerr-McGee Plan or Tronox Employee Benefit
      Plan or otherwise. Without limiting the generality of the foregoing: (a) neither
      the IPO, the Distribution (or Exchange) nor the termination of the Participating
      Company status of Tronox or a Tronox Entity shall cause any employee to be
      deemed to have incurred a termination of employment or layoff which entitles
      such individual to the commencement of benefits under any of the Kerr-McGee
      Employee Benefit Plans, any of the Tronox Plans, or any of the Individual
      Agreements; and (b) except as expressly provided in this Agreement, nothing
      in
      this Agreement shall preclude Tronox, at any time after the Close of the
      Distribution Date, from amending, merging, modifying, terminating, eliminating,
      reducing, or otherwise altering in any respect any Tronox Employee Benefit
      Plan,
      any benefit under any Plan or any trust, insurance policy or funding vehicle
      related to any Tronox Employee Benefit Plan.

     

    11.05.  Plan
      Audits.

     

    
      	(a)  	
              Audit
                Rights with Respect to the Allocation or Transfer of Plan
                Assets.
                The determination of the Pension Transfer Amount and the allocation
                of
                Pension Plan assets and liabilities pursuant to Section 4.02
                and the determination and transfer of assets from Kerr-McGee pursuant
                to
                Section 8.03,
                may be audited on behalf of both Kerr-McGee and Tronox by a consulting
                firm to be determined jointly by Kerr-McGee and Tronox. The scope
                of such
                audit shall be limited to the accuracy of the final data relied upon
                and
                the accuracy of the computation and adherence to the methodology
                specified
                in this Agreement and, except as set forth in the last sentence of
                this
                Section 11.05(a),
                such audit shall not be binding on the parties. The auditing firm
                shall
                provide its report to both Kerr-McGee and Tronox. No other audit
                shall be
                conducted with respect to the transfer or allocation of plan assets.
                The
                costs of such audit shall be shared proportionately to the asset
                split
                between Kerr-McGee and Tronox, or, at each company’s discretion and to the
                extent allocable thereto, by their respective Retirement Plans. To
                the
                extent such audit recommends a change to the value of assets allocated
                to
                any Tronox Plan of less than 0.25% of the amount originally determined
                by
                Kerr-McGee’s actuaries under each of Sections 4.02
                and 8.03,
                as applicable to each transfer, the original determination shall
                be
                binding on the parties and shall not be subject to the dispute resolution
                process provided under the Principal Agreement. To the extent such
                audit
                recommends such a change of 0.25% or more, any unresolved dispute
                between
                the parties as to whether and how to make any change in response
                to such
                recommendation shall be subject to the dispute resolution process
                provided
                under the Principal Agreement.

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    
      	(b)  	
              Audit
                Rights with Respect to Information
                Provided.

            

    

     

    
      	(1)  	
              Each
                of Kerr-McGee and Tronox, and their respective duly authorized
                representatives, shall have the right to conduct audits with respect
                to
                all information provided to it by the other party. The party conducting
                the audit (the “Auditing Party”) shall have the sole discretion to
                determine the procedures and guidelines for conducting audits and
                the
                selection of audit representatives under this Section 11.05(b);
                provided, that audits with respect to the allocation or transfer
                of plan
                assets and liabilities shall be subject only to Section 11.05(a).
                The Auditing Party shall have the right to make copies of any records
                at
                its expense, subject to the confidentiality provisions set forth
                in the
                Principal Agreement, which are incorporated by reference herein.
                The party
                being audited shall provide the Auditing Party’s representatives with
                reasonable access during normal business hours to its operations,
                computer
                systems, and paper and electronic files, and provide workspace to
                its
                representatives. After any audit is completed, the party being audited
                shall have the right to review a draft of the audit findings and
                to
                comment on those findings in writing within ten business days after
                receiving such draft.

            

    

     

    
      	(2)  	
              The
                Auditing Party’s audit rights under this Section 11.05(b)
                shall include the right to audit, or participate in an audit facilitated
                by the party being audited, of any subsidiaries and affiliates of
                the
                party being audited and of any benefit providers and third parties
                with
                whom the party being audited has a relationship, or agents of such
                party,
                to the extent any such persons are affected by or addressed in this
                Agreement (collectively, the “Non-parties”). The party being audited
                shall, upon written request from the Auditing Party, provide an individual
                (at the Auditing Party’s expense) to supervise any audit of a Non-party.
                The Auditing Party shall be responsible for supplying, at the Auditing
                Party’s expense, additional personnel sufficient to complete the audit
                in
                a reasonably timely manner. The responsibility of the party being
                audited
                shall be limited to providing, at the Auditing Party’s expense, a single
                individual at each audited site for purposes of facilitating the
                audit.

            

    

     

    
      	(c)  	
              Audit
                Rights Regarding Vendor Contracts. From
                the Offering Date through the Distribution Date, Kerr-McGee and Tronox
                and
                their duly authorized representatives shall have the right to conduct
                joint audits with respect to any vendor contracts that relate to
                the
                Kerr-McGee Employee Benefit Plans. The scope of such audits shall
                encompass the review of all correspondence, account records, claim
                forms,
                canceled drafts (unless retained by the bank), provider bills, medical
                records submitted with claims, billing corrections, vendors’ internal
                corrections of previous errors and any other documents or instruments
                relating to the services performed by the vendor under the applicable
                vendor contracts. Kerr-McGee and Tronox shall agree on the performance
                standards, audit methodology, auditing policy and quality measures
                and
                reporting requirements relating to the audits described in this Section
                11.05
                and the manner in which costs incurred in connection with such audits
                will
                be shared.

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    11.06.  Beneficiary
      Designations.

     

    All
      beneficiary designations made by Transferred Individuals for Kerr-McGee Employee
      Benefit Plans shall be transferred to and be in full force and effect under
      the
      corresponding Tronox Employee Benefit Plans until such beneficiary designations
      are replaced or revoked by the Transferred Individual who made the beneficiary
      designation.

     

    11.07.  Cooperation
      in Requests for Rulings and DOL Opinions.

     

    Tronox
      shall cooperate fully with Kerr-McGee on any issue relating to the transactions
      contemplated by this Agreement for which Kerr-McGee elects to seek a
      determination letter or private letter ruling from the IRS or an advisory
      opinion or other guidance from the DOL. Kerr-McGee shall cooperate fully with
      Tronox with respect to any request for a determination letter or private letter
      ruling from the IRS or advisory opinion other guidance from the DOL with respect
      to any of the Tronox Employee Benefit Plans relating to the transactions
      contemplated by this Agreement.

     

    11.08.  Fiduciary
      Matters.

     

    Kerr-McGee
      and Tronox each acknowledges that actions required to be taken pursuant to
      this
      Agreement may be subject to fiduciary duties or standards of conduct under
      ERISA
      or other applicable law, and no party shall be deemed to be in violation of
      this
      Agreement if it fails to comply with any provisions hereof based upon its good
      faith determination that to do so would violate such a fiduciary duty or
      standard.

     

    11.09.  Collective
      Bargaining.

     

    
      	(a)  	
              A
                Kerr-McGee Entity is a party to a Labor Agreement between Kerr-McGee
                Pigments (Savannah), Inc., Savannah, GA Plant and District No. 96,
                International Association of Machinists and Aerospace Workers (affiliated
                with AFL-CIO), dated May 12, 2003 (the “Labor Agreement”). The Labor
                Agreement settles certain terms and conditions of employment for
                represented employees of this Kerr-McGee Entity. The Labor Agreement
                continues for one year periods beginning on May 1 of each year unless
                either party provides at least 60 days advance written notice of
                its
                intent to terminate the agreement at the end of the then-current
                term.
                (The current term of the Agreement expires on April 30,
                2006.)

            

    

     

    
      	(b)  	
              As
                of the Distribution Date, Tronox or a Tronox Entity shall assume
                the
                Kerr-McGee Entity’s rights and obligations under the Labor Agreement. To
                the extent that any provisions of this Agreement are inconsistent
                with the
                Labor Agreement, the provisions of the Labor Agreement shall
                prevail.

            

    

     

    11.10.  Consent
      of Third Parties.

     

    If
      any
      provision of this Agreement is dependent on the consent of any third party
      (such
      as a vendor) and such consent is withheld, Kerr-McGee and Tronox shall use
      their
      reasonable best efforts to implement the applicable provisions of this Agreement
      to the full extent practicable. If any provision of this Agreement cannot be
      implemented due to the failure of such third party to consent, Kerr-McGee and
      Tronox shall negotiate in good faith to implement the provision in a mutually
      satisfactory manner. The phrase “reasonable best efforts” as used herein shall
      not be construed to require the incurrence of any non-routine or unreasonable
      expense or liability or the waiver of any right.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    11.11.  General
      Obligations as Plan Sponsors.

     

    Kerr-McGee
      and Tronox, respectively, shall continue to administer, or cause to be
      administered, in accordance with their terms and applicable law, their
      respective Employee Benefit Plans and shall have the sole discretion and
      authority to interpret their respective Employee Benefit Plans as set forth
      therein.

     

    11.12.  Adjustments
      to Plan Transfers.

     

    In
      the
      event of transfers of employment status, or corrections to data, calculations
      or
      methods used to calculate any liabilities or assets transferred to the trust
      relating to a Tronox Employee Benefit Plan from the trust relating to the
      corresponding Kerr-McGee Employee Benefit Plan that occur before December 31,
      2006, such liabilities and assets shall be recomputed so as to place each such
      trust in the position it would have been in, had the initial asset transfer
      been
      made in accordance with such recomputed amount of assets. Any such adjustments
      to amounts transferred pursuant to this Agreement from a Kerr-McGee Employee
      Benefit Plan or trust thereunder to a Tronox Employee Benefit Plan or a trust
      thereunder shall be made between such Employee Benefit Plans or trusts. If
      an
      employee assigned to either Tronox or Kerr-McGee is not correctly reported
      on
      the records of any Employee Benefit Plan, any liability arising from such error
      shall be the responsibility of the employer of the individual on the date such
      error is identified, or of a Employee Benefit Plan sponsored by such employer.
      Determinations of what entity employs or employed a particular individual shall
      be made by reference to the applicable legal entity and/or other appropriate
      accounting code, to the extent possible.

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    ARTICLE
      12.   MISCELLANEOUS

     

    12.01.  Effect
      If Neither Distribution nor Exchange Occurs.

     

    If
      neither the Distribution nor the Exchange occurs, then all actions and events
      that are, under this Agreement, to be taken or occur effective as of the Close
      of the Distribution Date, Immediately after the Distribution Date, or otherwise
      in connection with the Distribution or Exchange, shall not be taken or occur
      except to the extent specifically agreed by Tronox and Kerr-McGee.

     

    12.02.  Relationship
      of Parties.

     

    Nothing
      in this Agreement shall be deemed or construed by the parties or any third
      party
      as creating the relationship of principal and agent, partnership or joint
      venture between the parties, it being understood and agreed that no provision
      contained herein, and no act of the parties, shall be deemed to create any
      relationship between the parties other than the relationship set forth
      herein.

     

    12.03.  Affiliates.

     

    Each
      of
      Kerr-McGee and Tronox shall cause to be performed, and hereby guarantees the
      performance of, all actions, agreements and obligations set forth in this
      Agreement to be performed by a Kerr-McGee Entity or a Tronox Entity,
      respectively.

     

    12.04.  Disputes. 

     

    The
      parties shall attempt to finally resolve any claim, controversy, or dispute
      arising out of or relating to this Agreement, or the threatened, alleged or
      actual breach or default thereof by either party, as hereinafter set forth.
      The
      resolution procedures shall be invoked when either party sends a written notice
      to the other party of the occurrence of a claim, controversy or dispute, or
      of
      the threatened, alleged or actual breach of this Agreement. The notice shall
      describe the nature of the dispute and the party’s position with respect to such
      dispute. The parties shall expeditiously schedule consultations or a meeting
      between knowledgeable representatives designated by each party in an effort
      to
      resolve the dispute informally. Such consultations or meetings shall in no
      event
      occur later than 10 days after delivery of the written notice by a party under
      this Section 12.04.
      If
      the parties are unable to resolve the dispute within 15 days after consultations
      commence, the dispute shall be submitted in writing to an appropriate executive
      officer of each party. The executive officers shall attempt to resolve any
      dispute submitted to them for resolution in accordance with this Section
12.04
      through consultation and negotiation, within 30 days after such submittal (or
      such longer period as may be mutually agreed by the parties). The executive
      officers may request the assistance of an independent mediator if they believe
      that such a mediator would be of assistance to the efficient resolution of
      the
      dispute.

     

    12.05.  Arbitration. 

     

    If
      the
      parties are unable resolve any claim, controversy or dispute arising out of
      or
      relating to this Agreement, or the breach hereof, pursuant to the provisions
      of
      Section 12.04,
      then
      such claim, controversy or dispute, shall be settled by arbitration administered
      by the American Arbitration Association in New York City before a single
      arbitrator selected by mutual agreement of the parties under its Commercial
      Arbitration Rules, and judgment on the award rendered by the arbitrator may
      be
      entered in any court having jurisdiction thereof.

     

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Employee Benefits Agreement to
      be
      duly executed as of the day and year first above written.

     

    
      	 	
              KERR-McGEE
                CORPORATION

            
	 	 
	 	
              By:
                /s/ Robert
                M. Wohleber

            
	 	
              Name: Robert
                M. Wohleber

            
	 	
              Title: Senior
                Vice President and CFO

            
	 	 
	 	 
	 	
              TRONOX
                INCORPORATED

            
	 	 
	 	
              By:
                /s/ Thomas W. Adams

            
	 	
              Name: Thomas
                W. Adams

            
	 	
              Title: Chief
                Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]