Document:

Amendment 2 to Management Consulting Agreement

 
Exhibit 10.43

 
AMENDMENT NO. 2,
dated as of January 1, 2003 (this “Amendment”), to the Management Consulting Agreement, dated November 14, 2000, as amended by Amendment No. 1 thereto dated March 15, 2002 (the “Management Consulting Agreement”), by
and between RESOLUTION PERFORMANCE PRODUCTS LLC, a Delaware corporation (the “Company”), and APOLLO MANAGEMENT IV, L.P., a Delaware limited partnership (“Apollo”). 
 
WHEREAS, the Company continues to desire to avail
itself of Apollo’s expertise pursuant to the Management Consulting Agreement with respect to Apollo’s rendering certain management consulting and advisory services related to the business and affairs of the Company and its respective
subsidiaries and affiliates and the review and analysis of certain financial and other transactions; 
 
WHEREAS, Apollo and the Company agree that it is in their respective best interests to enter into this Amendment whereby, for the
consideration specified herein, Apollo will continue to provide such services as an independent consultant to the Company. 
 
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the Company and Apollo agree as follows:

 
1.    Amendment
to Management Consulting Agreement.    Section 4 of the Management Consulting Agreement is hereby amended in its entirety to read as follows: 
 
“As consideration for Apollo’s agreement to render the services set forth in
Section 3(a) of this Agreement and as compensation for any such services rendered by Apollo, the Company agrees to pay to Apollo an annual fee of $750,000.00, payable in advance in equal quarterly installments of $187,500.00 (the “Quarterly
Fee”) no later than the forty-fifth (45th) day of each fiscal quarter (the “Payment Date”)
(or, if such date is not a business day, on the next business day thereafter); provided, however, that during 2003, the Company shall have no obligation to pay, and Apollo hereby waives receipt of, the Quarterly Fee so long as the LTM Adjusted
EBITDA (as defined below) for the twelve month period ending on the last day of each fiscal quarter immediately preceding a Payment Date during 2003 is less than $116 million (such waived fee, the “Waived Quarterly Fee”); provided,
further however, that notwithstanding the preceding proviso, in the event the LTM Adjusted EBITDA for the twelve month period ending on the last day of any fiscal quarter immediately preceding any Payment Date during 2003 (such day, the “Fee
Adjustment Date”) is $116 million or more, the Company shall pay to Apollo (i) the Quarterly Fee from and after the Fee Adjustment Date in accordance with this Section 4 and (ii) 110% of all Waived Quarterly Fees to date. For purposes of
this Agreement, “LTM Adjusted EBITDA” shall be determined in accordance with the Company’s historical practices. In addition, the Company agrees to pay Apollo an advisory fee of $1,050,000.00 (i) immediately prior to the consummation
of a Realization Event (as defined in the 2000 Stock Option Plan of Resolution Performance Products 

 
Inc., the
Company’s corporate parent (“RPP Inc.”)) or (ii) at such time as Apollo and its Affiliates ceases to own in the aggregate at least 50% of the outstanding shares of common stock of RPP Inc. calculated on a fully diluted basis.

 
Upon presentation by Apollo to
the Company of such documentation as may be reasonably requested by the Company, the Company shall reimburse Apollo for all out-of-pocket expenses, including, without limitation, legal fees and expenses, and other disbursements incurred by Apollo,
its Affiliates or any of its Affiliates’ directors, officers, employees or agents in the performance of Apollo’s obligations hereunder, whether incurred on or prior to the date hereof, including, without limitation, out-of-pocket expenses
incurred in connection with the transactions contemplated by the MSA and each of the documents referred to therein. 
 
Nothing in this Agreement shall have the effect of prohibiting Apollo or any of its Affiliates from receiving from the
Company or any of its subsidiaries or Affiliates any other fees, including any fee payable pursuant to Section 6. 
 
Reference is made to the Credit Agreement to be entered into at or prior to the consummation of the transactions
contemplated by the MSA (as amended, restated, modified or supplemented and in effect from time to time, the “Credit Agreement”), among the Company, RPP Inc., RPP Capital Corporation, Resolution Nederland B.V., Salomon Smith Barney
Inc., Morgan Guaranty Trust Company of New York, and Morgan Stanley Senior Funding, Inc. Any portion of the fees payable to Apollo under this Agreement which the Company is prohibited from paying to Apollo under the Credit Agreement, shall be
deferred, shall accrue and shall be payable at the earliest time permitted under the Credit Agreement or upon the payment in full of all obligations under the Credit Agreement. The Company shall notify Apollo if the Company shall be unable to pay
any fees pursuant to the Credit Agreement on each date on which the Company would otherwise make a payment of fees under this Agreement to Apollo.” 
 
2.     Effectiveness.    This Amendment shall become effective as of the date
hereof. 
 
3.    No Other Amendments.    Except as expressly set forth herein, the Management Consulting Agreement remains in full force and effect in accordance with its terms and
nothing contained herein shall be deemed to be a waiver, amendment, modification or other change of any term, condition or provision of the Management Consulting Agreement. 
 
4.    References to the Management Consulting
Agreement.    From and after the date hereof, all references in the Management Consulting Agreement and any other documents to the Management Consulting Agreement shall be deemed to be references to the Management
Consulting Agreement after giving effect to this Amendment. 
 
5.    Headings.    The headings used herein are for convenience of reference only and shall not affect the construction of, nor shall they be taken into consideration in
interpreting, this Amendment. 
 
6.    Counterparts.    This Amendment may be executed in any number of separate counterparts, each of which shall be an original and all of which taken together shall
constitute 
 

2 

 
one and the same instrument.
Facsimile counterpart signatures to this Amendment shall be acceptable and binding. 
 
7.    Applicable Law.    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK (WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW). 
 
[SIGNATURE PAGES FOLLOW] 
 
 

3 

 
IN WITNESS
WHEREOF, the parties have duly executed this Amendment as of the date first above written. 
 
 

	  RESOLUTION PERFORMANCE
  PRODUCTS LLC

	
	  By:
	  	  /s/    MARVIN O. SCHLANGER    

	  	  	  Name:    Marvin O. Schlanger
  Title:      Chairman and Chief Executive Officer

 
 
 
 

	  APOLLO MANAGEMENT IV, L.P.

	
	  By:
	  	  /s/    SCOTT M. KLEINMAN    

	  	  	  Name:    Scott M. Kleinman
  Title:      PrincipalAmendment 2 to Employment Agreement - Schlanger

 
Exhibit
10.44 
 
AMENDMENT NO.
2, dated as of January 1, 2003 (this “Amendment”), to the Employment Agreement dated November 14, 2000, as amended by Amendment No. 1 thereto dated March 15, 2002 (the “Employment Agreement”), by and between
RESOLUTION PERFORMANCE PRODUCTS LLC, a Delaware limited liability company (the “Company”) and MARVIN O. SCHLANGER (“Executive”). 
 
WHEREAS, Executive and the Company desire to amend Executive’s Employment Agreement with respect
to Executive’s compensation, to be effective on and after January 1, 2003, as specifically set forth in this Amendment. 
 
NOW, THEREFORE, it is therefore hereby agreed by and between the parties as follows: 
 
1.    Compensation and
Benefits. 
 
A.    Sections 3(a) and (b) of Executive’s Employment Agreement are hereby amended in their entirety to read as follows: 
 
“(a)   Base Salary.    The Company shall pay
Executive a base salary (the “Base Salary”) at the annual rate of $150,000, provided that if the LTM Adjusted EBITDA (as defined below) for the twelve month period ending on the last day of any fiscal quarter during 2003 (such day,
the “Salary Adjustment Date”) equals $116 million or more, the Base Salary shall be payable at the annual rate of $300,000 from and after the Salary Adjustment Date, and the Company shall pay to Executive 110% of the amount paid to
Executive as Base Salary from January 1, 2003 to the Salary Adjustment Date. In the event of Executive’s death, long-term disability, retirement, or a Realization Event (as defined in the 2000 Stock Option Plan of Resolution Performance
Products Inc.) prior to the earlier of (i) the Salary Adjustment Date and (ii) January 1, 2004 (any such event, a “Special Event”), the Company shall pay to Executive a lump sum amount (to be considered pensionable wages) equal to
100% of the amount paid to Executive as Base Salary from January 1, 2003 to the date of the Special Event. Notwithstanding the foregoing, on January 1, 2004, Executive’s Base Salary shall be payable at the annual rate of $300,000. The Base
Salary (and other amounts payable in accordance with this paragraph (a)) shall be payable in accordance with the ordinary payroll practices of the Company and shall be subject to increase as determined by the compensation committee of the Board of
Managers of the Company (the “Compensation Committee”). For purposes of this Agreement, “LTM Adjusted EBITDA” shall be determined in accordance with the Company’s historical practices. 
 
(b)  Bonus.    In addition to the Base Salary, Executive shall be entitled to receive a cash bonus (the “Bonus”) with respect to each fiscal year; provided that Executive
is employed by the Company on the last day of such fiscal year. The Bonus shall be based on the Company’s achievement of certain operating and/or financial goals 

 
to be
established by the Compensation Committee, with an annual target bonus amount equal to 100% of Executive’s highest Base Salary during the term of Executive’s employment under this Agreement.” 
 
B. Section 4(c) of Executive’s Employment
Agreement is hereby amended in its entirety to read as follows: 
 
“(c)  Termination other than for Cause or Termination for Good Reason.    If Executive’s employment is terminated by the Company other than for Cause or
Executive terminates his employment for Good Reason, in each case, prior to the Termination Date, Executive shall be entitled to receive (i) within a reasonable time after the date of termination, the Termination Payments and any bonus for the year
of termination payable if and at such time and level as is generally paid by the Company and (ii) in lieu of any other cash compensation provided for herein but not in substitution for compensation already paid or earned, payable in accordance with
the Company’s customary payroll practices, for a period equal to the greater of (x) 12 months following the date of termination and (y) the period between the date of termination and the Termination Date, an amount equal to Executive’s
highest Base Salary during the term of Executive’s employment under this Agreement.” 
 
2.    Effectiveness.    This Amendment shall become effective as of the date hereof. 
 
3.    No Other
Amendments.    Except as expressly set forth herein, Executive’s Employment Agreement remains in full force and effect in accordance with its terms and nothing contained herein shall be deemed to be a waiver,
amendment, modification or other change of any term, condition or provision of Executive’s Employment Agreement. 
 
4.    References to the Employment Agreement.    From and after the date
hereof, all references in the Employment Agreement and any other documents to the Employment Agreement shall be deemed to be references to the Employment Agreement after giving effect to this Amendment. 
 
5.    Headings.    The headings used herein are for convenience of reference only and shall not affect the construction of, nor shall they be taken into consideration in
interpreting, this Amendment. 
 
6.    Counterparts.    This Amendment may be executed in any number of separate counterparts, each of which shall be an original and all of which taken together shall
constitute one and the same instrument. Facsimile counterpart signatures to this Amendment shall be acceptable and binding. 
 
7.    Applicable Law.    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW). 
 
[SIGNATURE PAGES FOLLOW] 
 

 
IN WITNESS
WHEREOF, the parties have duly executed this Amendment as of the date first above written. 
 
 

	  RESOLUTION PERFORMANCE PRODUCTS LLC

	
	  By:
	  	  /S/    JEFFREY M.
NODLAND        

	  	  	  Name:    Jeffrey M. Nodland
  Title:      President and Chief Operating Officer

	
	  /S/    MARVIN O.
SCHLANGER        

	  Name:    Marvin O. Schlanger

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