Document:

cc-ex101_89.htm

Exhibit 10.1

EXECUTION VERSION

 

MEMORANDUM OF UNDERSTANDING

This binding memorandum of understanding (together with the exhibits hereto, this “MOU”) is made and entered into this 22nd day of January, 2021, by and among The Chemours Company (“Chemours”), Corteva, Inc. (“Corteva”), E. I. du Pont de Nemours and Company (“EID”) and DuPont de Nemours, Inc. (f/k/a DowDuPont Inc.) (“DuPont”).  “Party” or “Parties” means Chemours, DuPont, EID or Corteva, individually or collectively, as the case may be. 

WHEREAS, Chemours and EID entered into a Separation Agreement, dated as of June 26, 2015, as amended by that certain Amendment Number 1, dated as of August 24, 2017 (the “Separation Agreement”);

WHEREAS, on July 1, 2015, EID completed the spin-off to its stockholders of Chemours (the “Spin-Off”);

WHEREAS, DuPont is a Delaware corporation formed in 2015 for the purpose of effecting an all-stock merger of equals transactions between The Dow Chemical Company (“Historical Dow”) and EID. Effective August 31, 2017, pursuant to the merger of equals transaction contemplated by the Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017, Historical Dow and EID each merged with subsidiaries of DuPont and, as a result, Historical Dow and EID became subsidiaries of DuPont;

WHEREAS, on May 13, 2019, Chemours filed suit in the Delaware Court of Chancery against EID, Corteva and DuPont (EID, Corteva and DuPont, the “Defendants”) in the lawsuit captioned The Chemours Company v. DowDuPont Inc. et al., C.A. No. 2019-0351-SG (Del. Ch.) (the “Delaware Matter”) seeking a declaratory judgment that Chemours’ indemnity obligations to EID, Corteva and DuPont, collectively, should be limited to the “high-end (maximum) realistic exposures” referenced in materials prepared in connection with the Spin-Off, or, in the alternative, requiring the return of the $3.91 billion dividend Chemours paid to EID in connection with the Spin-Off;

WHEREAS, on June 1, 2019, DuPont completed the separation of its agriculture business through the spin-off of Corteva in accordance with that certain Separation and Distribution Agreement, dated as of April 1, 2019 by and among DuPont, Dow, Inc. and Corteva, and as a result of which, Corteva and EID ceased to be subsidiaries of DuPont;

WHEREAS, on March 30, 2020, the Court of Chancery granted the Defendant’s motion to dismiss the Delaware Matter in favor of arbitration;

WHEREAS, Chemours filed a notice of appeal on April 17, 2020;

WHEREAS, on December 15, 2020, the Supreme Court of the State of Delaware affirmed the judgment of the Court of Chancery;

WHEREAS, the dispute at issue in the Delaware Matter and certain other related disputes are also the subject of a confidential binding arbitration (the “Arbitration”); 

 

 

 

WHEREAS, this MOU sets forth the principal terms and conditions on which Chemours, on behalf of itself and the other Chemours Indemnitees (as defined herein), DuPont, on behalf of itself and any and all other New DuPont Indemnitees (as defined herein) and Corteva, on behalf of itself and any and all other Corteva Indemnitees (as defined herein and which includes EID)  have agreed to settle, pursuant to and subject to the further terms of this MOU, any and all past or present claims, demands, proceedings, complaints, defenses, suits, damages, disputes, debts, controversies, rights, losses, obligations, liabilities, interest, attorneys’ fees, fines, fees, penalties, costs, expenses, representations, promises, rights of action and causes of action, contractual, extracontractual or otherwise, of whatever kind or nature, in law or equity, by statute or otherwise, whether known or unknown, suspected or unsuspected, anticipated or unanticipated, in each case, whether through ignorance, oversight, error, negligence or through no fault whatsoever (collectively, “Claims”), that (x) in the case of Chemours and the other Chemours Indemnitees, are Chemours Settled Claims (as defined herein) as against any of the DuPont Released Parties (as defined herein) and (y) in the case of DuPont and the other New DuPont Indemnitees and Corteva and the other Corteva Indemnitees, are DuPont Settled Claims (as defined herein) as against any of the Chemours Released Parties (as defined herein); and

WHEREAS, concurrently herewith, certain Parties are entering into a settlement with the plaintiffs in the matter captioned In Re: E. I. du Pont de Nemours and Company C-8 Personal Injury Litigation, Multidistrict Litigation 2433, Southern District of Ohio;

 

NOW THEREFORE, and in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

	
1.
	
Binding Nature; Definitive Agreements.  The Parties acknowledge and agree that the terms and conditions contained in this MOU, including the term sheet set forth on Exhibit A hereto, are intended to constitute a binding agreement (collectively, the “Settlement”), containing all essential business and legal terms and conditions necessary and sufficient to memorialize the Settlement as contemplated hereby, notwithstanding that the Parties intend to enter into one or more formal definitive agreement(s) memorializing the Settlement that may contain other negotiated terms not inconsistent with this MOU (the “Definitive  Agreement(s)”). The Parties will cooperate in good faith to enter into the Definitive Agreement(s)  prior to February 28, 2021.  In the event that such Definitive Agreement(s) is not executed by the Parties prior to February 28, 2021, this MOU, including the obligation to enter into the Definitive Agreement(s), shall remain binding and in full force and effect on the Parties and their successors and permitted assigns in accordance with the terms hereof.  During the term of this MOU or the Definitive Agreement(s), in the event of any inconsistency between the terms of this MOU or the Definitive Agreement(s), on one hand, and the terms of the Separation Agreement, on the other hand, the MOU or the Definitive Agreement(s), as applicable, shall control.

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2.
	
Resolution of the Arbitration. Within 3 Business Days of the date hereof, all Parties in the Arbitration shall request that the tribunal in the Arbitration enter a proposed Confidential Final Consent Award in the form attached as Exhibit C (the “Award”), provided, however, that (a) the Parties shall withdraw the request and shall not be bound by the Award if the tribunal makes any change to it (except as agreed by the Parties), (b) this MOU shall remain binding on the Parties whether or not the tribunal enters the Award and (c) in the event the Award is not entered and the Parties withdraw their request to enter the Award, the Parties agree to voluntarily dismiss all claims and counterclaims with prejudice within 2 Business Days of the withdrawal of the request and to inform the AAA of the Parties' respective decisions to dismiss all claims and counterclaims with prejudice.

	
3.
	
Mutual Release and Dismissal; Covenant Not to Sue. 

(a)Release by Chemours.  In exchange for the Defendants’ agreement to the terms contained herein, Chemours, on behalf of itself and the other Chemours Indemnitees (collectively, the “Chemours Releasing Parties,” and together with the DuPont Releasing Parties, the “Releasors”), hereby irrevocably and unconditionally releases, relinquishes and discharges the New DuPont Indemnitees and the Corteva Indemnitees (the “DuPont Released Parties”) from any and all past, present and future Chemours Settled Claims that the Chemours Releasing Parties have or may have. 

(b)Release by DuPont and Corteva.  In exchange for Chemours’ agreement to the terms contained herein, DuPont, on behalf of itself and the other New DuPont Indemnitees, and Corteva, on behalf of itself and the other Corteva Indemnitees (together with DuPont and the New DuPont Indemnitees, the “DuPont Releasing Parties”), hereby irrevocably and unconditionally releases, relinquishes and discharges the Chemours Indemnitees (the “Chemours Released Parties,” and, together with the DuPont Released Parties, the “Released Parties”) from any and all past, present and future DuPont Settled Claims that the DuPont Releasing Parties have or may have.

(c)Unknown Facts.  The Parties hereby acknowledge that they may hereafter discover facts different from, or in addition to, those which they now claim or believe to be true with respect to the Claims released herein, the recitals, or any facts related to any matter whatsoever between the Parties, and agree that this MOU shall be and remain effective in all respects notwithstanding the discovery of such different or additional facts. 

(d)No Discussions or Communications with Third Parties.  The Parties, on behalf of themselves and their respective Indemnitees, hereby covenant and agree that they shall not have discussions or communications with third parties regarding any Chemours Settled Claims or any DuPont Settled Claims (or any of the underlying facts or details about them) that are inconsistent with Sections 4, 9 or 12.

(e)Chemours Covenant Not to Sue. Subject to Section 5, Chemours hereby fully and forever COVENANTS NOT TO SUE AND NOT TO COMMENCE ARBITRATION PROCEEDINGS AGAINST, and agrees to cause each of the other 

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Chemours Indemnitees not to sue or commence arbitration proceedings against, any of the DuPont Released Parties with respect to any Chemours Settled Claim. Without limitation to the foregoing sentence, Chemours hereby fully and forever COVENANTS NOT TO SUE (as opposed to commencing arbitration proceedings against), and agrees to cause each of the other Chemours Indemnitees not to sue (as opposed to commencing arbitration proceedings against), any of the DuPont Released Parties with respect to (i) any and all Claims arising out of or relating to any actions or inactions with respect to the Spin-Off and (ii) any and all Claims arising out of or relating to the Separation Agreement, including with respect to the interpretation, performance, nonperformance, or breach thereof.  It being understood that this Section 3(e) shall not be construed as to prohibit a lawsuit brought solely to enforce an arbitration award obtained in accordance with Article VIII of the Separation Agreement. Each DuPont Released Party may plead this MOU as a complete bar to any claim or defense brought in derogation of this covenant.

(f)DuPont Covenant Not to Sue. Subject to Section 5, DuPont hereby fully and forever COVENANTS NOT TO SUE AND NOT TO COMMENCE ARBITRATION PROCEEDINGS AGAINST, and agrees to cause each of the other New DuPont Indemnitees not to sue or commence arbitration proceedings against, any of the Chemours Released Parties with respect to any DuPont Settled Claim. Without limitation to the foregoing sentence, DuPont hereby fully and forever COVENANTS NOT TO SUE (as opposed to commencing arbitration proceedings against), and agrees to cause each of the other New DuPont Indemnitees not to sue (as opposed to commencing arbitration proceedings against), any of the Chemours Released Parties with respect to (i) any and all Claims arising out of or relating to any actions or inactions with respect to the Spin-Off and (ii) any and all Claims arising out of or relating to the Separation Agreement, including with respect to the interpretation, performance, nonperformance, or breach thereof.  It being understood that this Section 3(f) shall not be construed as to prohibit a lawsuit brought solely to enforce an arbitration award obtained in accordance with Article VIII of the Separation Agreement.  Each Chemours Released Party may plead this MOU as a complete bar to any claim or defense brought in derogation of this covenant.

(g)Corteva Covenant Not to Sue. Subject to Section 5, Corteva hereby fully and forever COVENANTS NOT TO SUE AND NOT TO COMMENCE ARBITRATION PROCEEDINGS AGAINST, and agrees to cause each of the other Corteva Indemnitees not to sue and or commence arbitration proceedings against, any of the Chemours Released Parties with respect to any DuPont Settled Claim. Without limitation to the foregoing sentence, Corteva hereby fully and forever COVENANTS NOT TO SUE (as opposed to commencing arbitration proceedings against), and agrees to cause each of the other Corteva Indemnitees not to sue (as opposed to commencing arbitration proceedings against), any of the Chemours Released Parties with respect to (i) any and all Claims arising out of or relating to any actions or inactions with respect to the Spin-Off and (ii) any and all Claims arising out of or relating to the Separation Agreement, including with respect to the interpretation, performance, nonperformance, or breach thereof.  It being understood that this Section 3(g) shall not be construed as to prohibit a lawsuit brought solely to enforce 

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an arbitration award obtained in accordance with Article VIII of the Separation Agreement.   Each Chemours Released Party may plead this MOU as a complete bar to any claim or defense brought in derogation of this covenant.

(h)Prior EID Affiliates.  If a past affiliate of EID, DuPont, or Corteva that is not a Releasor asserts a Claim against a Chemours Released Party that constitutes a DuPont Settled Claim and would be released hereunder if such affiliate were a Releasor, DuPont and Corteva covenant and agree that they will defend, indemnify, hold harmless such Chemours Released Party from any and all Liabilities or Indemnifiable Losses with respect to such Claim; provided, however, DuPont and Corteva shall not be required to indemnify such Chemours Released Party in the event that the Claim made by a past affiliate of EID, DuPont or Corteva that is not a Releasor results from a third party claim made against such past affiliate of EID, DuPont or Corteva that is not a Releasor for a matter within Qualified Spend and any such Liabilities or Indemnifiable Losses incurred in connection with such Claim shall constitute Qualified Spend.

(i)Prior Chemours Affiliates.  If a past affiliate of Chemours that both is not a Releasor and either was an affiliate of Chemours upon the Spin-Off or first became an affiliate of Chemours following the Spin-Off asserts a Claim against a DuPont Released Party that constitutes a Chemours Settled Claim and would be released hereunder if such affiliate were a Releasor, Chemours covenants and agrees that it will defend, indemnify, hold harmless such DuPont Released Party from any and all Liabilities or Indemnifiable Losses with respect to such Claim; provided, however, Chemours shall not be required to indemnify such DuPont Released Party in the event that the Claim made by a past affiliate of Chemours that is not a Releasor results from a third party claim made against such past affiliate of Chemours that is not a Releasor for a matter within Qualified Spend and any such Liabilities or Indemnifiable Losses incurred in connection with such Claim shall constitute Qualified Spend.

(j)Claim Over.  Each Released Party agrees that, if any Releasor asserts a Claim  relating to the Released Claims against any person or entity that is not an applicable Released Entity (a “non-Released Entity”) and such non-Released Entity in turn asserts a Claim against any Released Entity relating to the same on the basis of contribution, indemnity or other claim-over on any theory (a “Claim-Over”), such Releasor shall reduce its Claim and any judgment or settlement it may obtain against such non-Released Entity by whatever amount or percentage is necessary to extinguish such Claim-Over under applicable law.  Each Releasor, with respect to any proceeding to which it is a party, shall consent to and join in, and with respect to all other proceedings shall consent to, any motion by any Released Party to dismiss any Claim-Over on the grounds that this MOU constitutes a release of, moots or otherwise bars any such Claim-Over.

(k)Non-Party Settlement.  To the extent that on or after the date when this MOU is executed any Releasor settles any Claims it may have against any non-Released Entity relating to the Released Claims and provides a release to such non-party or non-

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parties (a “Non-Party Settlement”), such Releasor will include in the Non-Party Settlement a release from such non-Released Entity in favor of the applicable Released Entities (in a form equivalent to the releases contained herein) of any Claims relating to the Released Claims on the basis of contribution, indemnity, or other claim-over on any theory under which such Released Entities may be liable to pay any part of such Non-Party Settlement or may otherwise be liable to such non-Released Entity.

	
4.
	
Confidentiality. 

(a)The Parties agree that the terms and conditions of this MOU, the terms and conditions of all settlement offers or counteroffers, and all non-publicly disclosed facts, information, documents, and/or details about the Delaware Matter, the Arbitration, the Chemours Settled Claims, the DuPont Settled Claims, and the Separation Agreement shall remain confidential to the fullest extent permissible under the law and shall not be disclosed without written consent of each of the other Parties, except: (i) the disclosure contemplated by Section 9, (ii) to the extent required by law, court order, subpoena, civil investigative demand, administrative rule, regulation, or reporting standard; (iii) to the Parties’ directors, officers, employees, affiliates, attorneys, insurers, auditors, accountants, trustees, and/or advisors on a need-to-know basis in the reasonable judgment of the disclosing Party, and only after each such person or entity to whom disclosure is to be made has been informed of the confidentiality terms of this MOU; or (iv) if necessary in the reasonable judgment of the disclosing Party, to enforce, defend, or litigate any actual or potential Third Party Claim or provision of this MOU or the Definitive Agreement(s).

(b)In the event that a Party becomes aware that disclosure may be required pursuant to the foregoing clause (ii) of Section 4(a) (a “Required Disclosure”), the Party shall give the other Parties prior written notice with respect to such potential Required Disclosure as soon as practicable upon becoming aware of the reasonable possibility of such Required Disclosure to give the non-disclosing Party the opportunity to seek a protective order.  Notice need not be given in matters involving all Parties, and notice of the fact of and basis for the Required Disclosure shall be sufficient (i.e., a Party does not have to report on activities to comply with the Required Disclosure), provided that such Party provides sufficient detail regarding the proposed timing of the Required Disclosure to enable the other Parties to seek a protective order.

	
5.
	
Claims Arising From and Related to this MOU.  Nothing in this MOU shall be construed to release any Party from any Claims arising out of or resulting from the terms of this MOU or relating to the performance of a Party’s obligations pursuant to this MOU, including any subsequent breach of this MOU by any Party.

	
6.
	
Entire Agreement.  This MOU and the Separation Agreement constitutes the entire agreement between the Parties concerning the subject matter of this MOU and supersedes all prior negotiations, discussions, understandings, representations, or agreements of any sort whatsoever, whether oral or written, relating thereto.  

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7.
	
Definitions. Capitalized terms used in this MOU and not otherwise defined herein shall have the meanings given to them in Exhibit B. 

	
8.
	
No Other Changes; Effect of Amendment. Except as set forth in this MOU, all of the terms of the Separation Agreement shall remain in full force and effect.

	
9.
	
Publicity and Public Filings. On or prior to January 25, 2021, each of the Parties shall make a filing on Form 8-K with the SEC, which shall include as exhibits thereto this MOU (including Exhibit A) and a mutually agreed press release and summary (the “Agreed Materials”) of the material terms and conditions of this MOU. Each Party will have a reasonable opportunity to review and comment on the other terms of each other Party’s filing on Form 8-K to the extent related to this MOU. From and after the date hereof, unless otherwise permitted by Section 4, neither Party shall issue any other press release relating to the subject matter of this MOU, or make any other public statement, that is inconsistent with the content of the Agreed Materials, in each case, without the prior written consent of the other Parties, and shall not issue any such press release or make any such public statement prior to obtaining such consent. Without limitation to the foregoing, the Parties shall give each other a reasonable opportunity to review and comment upon the portion of any press release, talking points or public statement that references this MOU or any of its provisions, and each Party shall consider in good faith any such comments made by any other Party.  For the avoidance of doubt, any Party may make additional consistent disclosure regarding the MOU for explanatory purposes that is deemed necessary by such Party, subject only to the other Party’s opportunity to review as set forth herein (which shall be deemed to have been satisfied if the other Party shall have previously reviewed and consented, in accordance with the terms hereof, to materials substantially the same in substantive content as such disclosure in circumstances that are substantially the same).  Notwithstanding the foregoing, any Party may publicly disclose information to the extent required by law, court order, subpoena, civil investigative demand, administrative rule, regulation, or reporting standard without liability hereunder; provided that such Party comply with Section 4(b) of this MOU and shall give the other Parties a reasonable opportunity to review and comment upon such disclosure and shall consider in good faith any such comments made by any other Party.

	
10.
	
Incorporation of Miscellaneous Provisions. The terms and conditions of Article VIII (subject to and as modified by the terms of this MOU, including the provisions included under “Dispute Resolution” in Exhibit A hereto) and Sections 10.3, 10.8, 10.9, 10.14, 10.16, 10.17, 10.19, 10.20, 10.22 and 10.23 of the Separation Agreement are hereby incorporated herein, mutatis mutandis.

	
11.
	
Third Party Beneficiaries.  Each New DuPont Indemnitee, each Corteva Indemnitee and each Chemours Indemnitee is an express third party beneficiary of Section 3 of this MOU, and shall be entitled to enforce the provisions of Section 3 of this MOU as if it was a party hereto. Other than each New DuPont Indemnitee, each Corteva Indemnitee and each Chemours Indemnitee as set forth in the immediately preceding sentence, this MOU is 

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solely for the benefit of, and is only enforceable by, the Parties and their permitted successors and assigns and should not be deemed to confer upon third parties any remedy, benefit, claim, liability, reimbursement, claim of Action or other right of any nature whatsoever, in excess of those existing without reference to this MOU.

	
12.
	
No Support or Inducement of Third Party Claims. Subject to Sections 4 and 9 hereof and the following sentence, each of the Parties hereby covenants and agrees that it shall not support or induce a Third Party Claim against any other Party (or such other Party’s Indemnitees) related to or arising out of any of the Claims released under Section 3.  Nothing herein shall restrict the Parties from defending or preparing to defend against actual or potential Third Party Claims, complying with the terms of the Separation Agreement, complying with a subpoena or civil investigative demand, or communicating with governmental and regulatory bodies regarding the subject matter hereof in a manner consistent with the terms of the Settlement. 

 

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IN WITNESS WHEREOF, the Parties or their authorized agents or representatives are executing this MOU as of the day and year first written above.

The Chemours Company

By:  /s/ Mark P. Vergnano
Name:  Mark P. Vergnano
Title:  President and Chief Executive Officer

 

[Signature Page to Memorandum of Understanding]

 

 

 

 

 

 

E. I. du Pont de Nemours and Company

By:  /s/ Thomas A. Warnock
Name:  Thomas A. Warnock
Title:  Associate General Counsel, Corporate Affairs

Corteva, Inc.

By:  /s/ Thomas A. Warnock
Name:  Thomas A. Warnock
Title:  Associate General Counsel, Corporate Affairs

 

[Signature Page to Memorandum of Understanding]

 

 

 

 

 

 

DuPont de Nemours, Inc.

By:  /s/ Erik T. Hoover
Name:  Erik T. Hoover
Title:  Senior Vice President and General Counsel

 

[Signature Page to Memorandum of Understanding]

 

 

 

 

 

 

Exhibit A

 

	
Key Term
	
Terms and Conditions

	
Contemplated Definitive Agreement(s)
	
•Omnibus Settlement Agreement between Chemours, Corteva, EID and DuPont

•Amendment No 2. to Separation Agreement between Chemours and EID

•References to the Definitive Agreement(s) in this Exhibit A shall be to this MOU until such time as the Definitive Agreement(s) is executed.

	
Termination Date
	
Subject to the terms under the heading “Termination and Effect of Breach” below, the arrangements set forth in the Definitive Agreement(s) terminate upon the earlier to occur of (i) December 31, 2040, (ii) the day on which the aggregate amount of Qualified Spend is equal to $4,000,000,000 or (iii) the termination of the Definitive Agreement(s) otherwise in accordance with the terms under the heading “Termination and Effect of Breach” below.  

	
Order of Spend
	
Starting on the date of this MOU and ending on the Termination Date (as defined above), (x) Chemours shall bear 50% of any Qualified Spend and (y) DuPont and Corteva shall bear 50% of any Qualified Spend.  DuPont’s and Corteva’s share of Qualified Spend shall not exceed $2,000,000,000 in the aggregate.

	
Establishment of Escrow Account and Funding 
	
The Parties will establish an escrow account no later than February 15, 2021 with Citibank (or such other financial institution upon which the Parties agree) (the “Escrow Agent”) in accordance with the principles below. The parties will negotiate an Escrow Agreement that is substantially in the form attached as Exhibit D to this MOU no later than February 15, 2021.

•The escrow account will be maintained by the Escrow Agent.  Funds deposited in the escrow account shall be deposited by the Parties free and clear of all liens and shall be invested solely in cash and cash equivalents (defined in accordance with U.S. GAAP).  Any disagreements as to the terms of the escrow agreement shall be resolved in good faith.

•No later than each of September 30, 2021 and September 30, 2022, Chemours shall deposit $100,000,000 into the escrow account and DuPont and Corteva shall together deposit $100,000,000 in the aggregate into the escrow account.

•No later than September 30 of each subsequent year through and including 2028, Chemours shall deposit $50,000,000 into the escrow account and DuPont and Corteva shall together deposit $50,000,000 in the aggregate into the escrow account.

•Deferred Funding: 

▪Any Party can defer funding in any year (excluding year 1) provided that:  (1) any amount deferred is repaid ratably over the shorter of (a) the succeeding five (5) years or (b) the succeeding years through year 8; and (2) (a) in the case of Chemours, no more than $100mm in total can be deferred under this provision, (b) in the case of DuPont, no more than $58mm can be deferred under this provision and (3) in the case of Corteva, no more than $42mm can be deferred under this provision (any such deferred amounts, a “Borrowed Escrow Payment”).

▪If the Parties’ aggregate out-of-pocket spend (i.e. not from escrow) in last twelve months is greater than $200mm provided that each deferred payment be paid into the escrow fund ratably over the shorter of (a) the succeeding five (5) years or (b) the succeeding years through year 10 (any such amount, a “Deferred Escrow Payment”).

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Key Term
	
Terms and Conditions

	
Allocation of DuPont/Corteva Funding and Payment Obligations
	
•Amounts to be funded by DuPont and Corteva pursuant to the terms of the Definitive Agreement(s), whether escrow deposits or funding in respect of Qualified Spend, shall be allocated between DuPont and Corteva as set forth in the Letter Agreement, which provides that: 

▪DuPont shall bear fifty percent (50%) of DuPont’s and Corteva’s combined 50% share of escrow deposits or funding in respect of Qualified Spend, up to an aggregate amount of $300,000,000 (e.g., 50% being up to $150,000,000) and Corteva shall bear fifty percent (50%) of DuPont’s and Corteva’s 50% share of escrow deposits or funding in respect of Qualified Spend, up to an aggregate amount of $300,000,000 (e.g., 50% being up to $150,000,000).

▪For any amount to be funded by DuPont and Corteva pursuant to the terms of the Definitive Agreement(s) in excess of the $300,000,000 aggregate amount specified in the immediately preceding bullet, DuPont shall bear seventy-one (71%) of DuPont’s and Corteva’s 50% share of escrow deposits or funding in respect of Qualified Spend and Corteva shall bear twenty-nine (29%) of DuPont’s and Corteva’s 50% share of escrow deposits or funding in respect of Qualified Spend. 

• All funding obligations, whether escrow deposits or funding in respect of Qualified Spend, are several (and not joint and several) as to each Party.  Chemours shall be entitled to enforce such provisions with respect to such allocation and DuPont’s and Corteva’s payment of their respective shares.

	
Withdrawals from Escrow Account
	
•Subject to exception below, no withdrawals from the escrow account before year six. 

▪Escrow funds can be used to fund mutually agreed upon 3rd party settlements in excess of $125mm. 

•Starting with year 6, withdrawals can only be made to fund Qualified Spend if the Parties’ aggregate Qualified Spend in that particular year is greater than $200mm.

•Starting with year 11, the amounts in the escrow account can be used to fund any Qualified Spend.

•In the event any Party shall have, prior to the Termination Date, delivered any Pending Escrow Claim (as defined herein), the amount asserted by such Party in respect of such Pending Escrow Claim (the “Reserve Amount”) shall be reserved in the escrow account prior to resolution of such Pending Escrow Claim.  Any Reserve Amounts held in the escrow account related to any Pending Escrow Claim brought prior to the Termination Date shall continue to be held in the escrow account until such Pending Escrow Claim has been resolved or otherwise mutually released.  Upon the resolution of any Pending Escrow Claim, if any, in accordance with the terms of the Definitive Agreement(s), the Parties shall be required to, and shall instruct, the escrow agent to deliver to the pertinent Party or each Party (according to its applicable percentage based on the relative percent of the escrow account funded) as set forth in the instructions, the lesser of (i) the amount payable to such Party in connection with such resolved Pending Escrow Claim and (ii) the balance of the escrow account (other than Reserve Amounts) at such time; provided, however, in the event that the pertinent Party or each Party (according to its applicable percentage based on the relative percent of the escrow account funded) receives only the balance of the escrow account at such time pursuant to clause (ii) and at such time, a Party is under an obligation to make payments to the escrow account in respect of either a Deferred Escrow Payment, a Borrowed Escrow Payment or a Replenishment Escrow Payment, then the Parties shall instruct the Escrow Agent to deliver to the pertinent Party or each Party (according to its applicable percentage based on the relative percent of the escrow account funded) the balance owed to such Party or each such Party in connection with the resolved Pending Escrow Claim immediately following such time that the other Party deposits a payment in respect of such Deferred Escrow Payment, a Borrowed Escrow Payment or a Replenishment Escrow Payment.  

•For the avoidance of doubt, any Escrowed Funds that remain in escrow as of the date set forth in clause (i) or (ii) under the heading “Termination Date” shall revert to the Party that deposited them (along with the proportionate share of the interest) and any Escrow Funds that remain in escrow as of the date set forth in clause (iii) under the heading “Termination Date” shall be distributed as set forth under the heading “Termination and Effect of Breach”.

•In the event the Parties agree to use available escrow funds to fund a settlement, or there is otherwise Qualified Spend for which Escrowed Funds are available under the terms of the Definitive Agreement(s), the Parties shall be required to, and shall, deliver a joint written instruction to the Escrow Agent instructing such agent to distribute the funds as set forth in such instruction.  Upon any termination of the Definitive Agreement(s) in accordance with its terms, the Parties shall be required to, and shall, promptly deliver a joint written instruction to the Escrow Agent instructing the Escrow Agent to distribute the funds in accordance with the terms of the Definitive Agreement(s).

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Key Term
	
Terms and Conditions

	
Escrow Account Replenishment
	
If on December 31, 2028, the balance of the escrow account (including interest) is equal to or less than $700 million after giving effect to acceleration and payment of any Deferred Escrow Payment (the “Funding Condition”), Chemours shall make 50% of the deposits and DuPont and Corteva (such amount to be allocated between DuPont and Corteva as set forth in the section entitled “Allocation of DuPont/Corteva Funding and Payment Obligations”) shall make 50% of the deposits necessary to restore the balance of the escrow account to $700mm. The deposits shall be made by Chemours and DuPont/Corteva in five consecutive annual equal installments commencing on September 30, 2029 following the occurrence of the Funding Condition, unless the annual installment would exceed $60mm by Chemours, on the one hand, or DuPont/Corteva in the aggregate, on the other hand, in which case, the deposits shall be made by Chemours and DuPont/Corteva in six consecutive annual equal installments commencing on September 30, 2029 following the occurrence of the Funding Condition.  

Solely for illustrative purposes:

•If on December 31, 2028, the escrow account has $100 million in the aggregate, then (i) Chemours shall deposit $60 million into the escrow account on September 30 of each of 2029, 2030, 2031, 2032 and 2033 (for an aggregate contribution of $300 million over five years) and (ii) DuPont and Corteva shall together deposit $60 million in the aggregate into the escrow account on September 30 of each of 2029, 2030, 2031, 2032 and 2033 (for an aggregate contribution of $300 million over five years).

•If on December 31, 2028, the escrow account has $50 million in the aggregate then  (i) Chemours shall deposit $54,166,666.67 into the escrow account on September 30 of each of 2029, 2030, 2031, 2032, 2033 and 2034 (for an aggregate contribution of $325 million over six years) and (ii) DuPont and Corteva shall together deposit $54,166,666.67 in the aggregate into the escrow account on September 30 of each of 2029, 2030, 2031, 2032, 2033 and 2034 (for an aggregate contribution of $325 million over six years).

A-3

 

 

 

	
Key Term
	
Terms and Conditions

	
Terms of Settlements
	
Prior to the Termination Date, all settlements to the extent they resolve matters within Qualified Spend shall require, to the maximum extent permitted by law, the mutual consent of all Parties.  The Parties will each act reasonably in determining whether to consent.  

	
Management
	
The management and defense of Third-Party Claims shall be as provided in the Separation Agreement except as follows.

•The Parties shall form a committee (the “Shared Liability Claim Committee”) consisting of one representative from each of DuPont, Corteva and Chemours and during the term of the Definitive Agreement(s), the Shared Liability Claim Committee shall  review, discuss and determine all matters delegated to the Shared Liability Claim Committee as set forth below. The Shared Liability Claim Committee shall meet at least once every calendar quarter (either in person, telephonically or by other electronic means). Each of Chemours, DuPont and Corteva shall have 1 vote. Any action by the Shared Liability Claim Committee shall require unanimous approval, except that, (i) with respect to remediation decisions regarding previously agreed to remediation plans at an operating site owned by one of the Parties, that Party’s vote shall be dispositive (provided, that such decisions are consistent with that Party’s past practice) and (ii) with respect to new remediation plans and subsequent decisions in respect of those remediation plans, consent shall not be unreasonably withheld, conditioned or delayed. A Party’s approval will be deemed given if not denied within a reasonable period of time (taking into account the exigencies of the decision) after the matter is raised with the Shared Liability Claim Committee.  

•Each Party shall deliver to the other Parties and the Shared Liability Claim Committee, promptly (and in any event within five (5) Business Days) after the Party’s receipt thereof, copies of all notices and documents (including court papers, to the extent not already received by the other Party(ies) or not publicly available) received by such Party relating to matters reasonably expected to be delegated to the Shared Liability Claim Committee as set forth below. 

•In the event that Shared Liability Claim Committee is not able to agree with respect to any such decision that has been delegated to the Shared Liability Claim Committee (the “Committee Vote”), the dispute shall be escalated for resolution to the General Counsels of each of Chemours, DuPont and Corteva. In the event that the General Counsels are not able to reach unanimous agreement (Chemours shall have 1 vote and DuPont and Corteva shall together have 1 vote) with respect to any such decision that has been delegated to the Shared Liability Claim Committee, the dispute shall be escalated for unanimous resolution to the Chief Executive Officers of each of Chemours, DuPont and Corteva (Chemours shall have 1 vote and DuPont and Corteva shall together have 1 vote).

•Prior to the Termination Date, to the extent a Third-Party Claim alleges matters within Qualified Spend (except as provided in the next bullet), Chemours shall conduct the management and defense of the Claim, provided that (i) Chemours’ choice of outside legal counsel, other professionals and experts, strategic direction of the litigation or remediation, material litigation or remediation decisions and budgeting shall require approval of the Shared Liability Claim Committee, (ii) the Parties shall keep each other reasonably informed as to the status of the litigation or remediation, (iii) DuPont/Corteva may assume the management and defense of the Claim if Chemours does not conduct the management or defense with reasonable diligence or if the Claim seeks injunctive, equitable or other relief other than monetary damages that exclusively impacts DuPont or Corteva, and (iv) potential settlement shall be governed by “Terms of Settlements” above.  Defense costs incurred in management and defense under this bullet shall be part of Qualified Spend.

•Prior to the Termination Date, to the extent a Third-Party Claim both alleges matters within Qualified Spend and is brought by a governmental entity against EID, DuPont and/or Corteva but not against Chemours and alleges a criminal violation, DuPont and/or Corteva shall conduct the management and defense of the Claim, provided that (i) the choice of outside legal counsel, other professionals and experts, strategic direction of the litigation, material litigation decisions and budgeting shall require approval of the Shared Liability Claim Committee, (ii) the Parties shall keep each other reasonably informed as to the status of the litigation, (iii) Chemours may assume the management and defense of the Claim if DuPont/Corteva does not conduct the management or defense with reasonable diligence, and (iv) potential settlement shall be governed by “Terms of Settlements” above.  Defense costs incurred in management and defense under this bullet shall be part of Qualified Spend.

•To the extent a Third-Party Claim is brought against EID, DuPont or Corteva regarding the construct of the Spin-Off or any subsequent spin or transaction undertaken by DuPont or Corteva (including, without limitation, for fraudulent transfer or Claims under any statute), EID, DuPont and/or Corteva, as applicable, shall conduct the management and defense of such Claim (or, if the Claim alleges both matters within Qualified Spend and matters regarding the construct of the Spin-Off or any subsequent spin or transaction undertaken by DuPont or Corteva (including, without limitation, for fraudulent transfer or Claims under any statute), only the portion of such Claim regarding the construct of the Spin-Off or any subsequent spin or transaction undertaken by DuPont or Corteva (including, without limitation, for fraudulent transfer or Claims under any statute)), Chemours shall not be entitled to participation rights in such management and defense hereunder, and the defense costs shall not be part of Qualified Spend except as provided in the penultimate bullet under the heading “Qualified Spend.”

•The Parties will cooperate to develop mutually acceptable litigation management guidelines in respect of litigation consistent with the foregoing and to revisit those guidelines over the term of the Settlement.

•For the avoidance of doubt, except in the case of the Committee Vote, as between Corteva and DuPont, the SDA (as defined in the Letter Agreement) and the Letter Agreement shall govern the rights and obligations as between Corteva and DuPont as it relates to management of these matters; provided that (x) if DuPont is a breaching Party and as a result of such breach (A) the Definitive Agreement(s) are terminated solely with respect to DuPont or (B) DuPont is otherwise not entitled to exercise any veto, approval or other consent rights under the Definitive Agreement(s) (including its vote on the Shared Liability Claim Committee), in each case, as provided below under Termination and Effect of Breach, then, while the Definitive Agreement(s) remain in effect for Corteva, DuPont shall no longer be the “Managing Party” pursuant to the terms of the Letter Agreement and SDA solely with respect to any matter within the scope of the Definitive Agreements(s) and shall not be entitled to exercise any veto, approval or other consent rights pursuant to the terms of the Letter Agreement and SDA for any matter within the scope of the Definitive Agreements(s) (including its vote on the Shared Liability Claim Committee), (y) if DuPont is subject to any voluntary or involuntary bankruptcy or insolvency proceedings, Corteva shall exercise such rights and (z) if Corteva is a breaching Party and as a result of such breach (A) the Definitive Agreement(s) are terminated solely with respect to Corteva or (B) Corteva is otherwise not entitled to exercise any veto, approval or other consent rights under the Definitive Agreement(s) (including its vote on the Shared Liability Claim Committee), in each case as provided below under Termination and Effect of Breach, then, while the Definitive Agreement(s) remain in effect for DuPont, Corteva shall not be entitled to exercise any veto, approval or other consent rights (including its vote on the Shared Liability Claim Committee) pursuant to the terms of the Letter Agreement and SDA for any matter within the scope of the Definitive Agreements(s).

A-4

 

 

 

	
Key Term
	
Terms and Conditions

	
Cooperation
	
Every three years during the term of the Settlement and at the end of the term, the Chief Executive Officers, General Counsels and Lead Independent Directors of each of Chemours, DuPont and Corteva shall meet and confer in good faith regarding any remaining legacy PFAS Liabilities in light of each such Party’s current financial conditions at the time, provided that no such Party shall be obligated to agree to any specific amendment or modification of the Definitive Agreement(s) based on any such meeting.

	
Dispute Resolution
	
Non-released claims under the Separation Agreement and claims under the Definitive Agreement(s) may be brought exclusively by confidential arbitration; provided that in the arbitration proceedings (a) the arbitrators shall have authority with respect to breach of the Definitive Agreement(s) to award all relief set forth under “Termination and Effect of Breach” below, and (b) solely with respect to indemnification claims regarding non-PFAS liabilities, Chemours may raise as a question whether, with respect to any particular claim, indemnification for punitive damages, penalties, or fines awarded to or assessed by a third party is invalid as a matter of law or public policy and the arbitrator(s) shall have authority to award that relief if they agree with Chemours’s position. 

A-5

 

 

 

	
Key Term
	
Terms and Conditions

	
Termination and Effect of Breach
	
A.  Breach of funding obligations or covenant not to sue.  If a Party breaches (i) its escrow-funding obligations, (ii) its covenant not to sue in any material respect, or (iii) its funding obligation in respect of Qualified Spend in any material respect, the following shall apply.

•If such breach is by Chemours, DuPont and Corteva (by mutual agreement) will have the right (but not the obligation) to terminate the Definitive Agreement(s).  If DuPont and Corteva exercise such right, effective on the Termination Date (as set forth in subsection C hereof) they shall recoup all funds in the escrow account (including those contributed by Chemours).  Such funds will be distributed to DuPont and Corteva (x) first, up to the aggregate amount funded into the escrow account by DuPont and Corteva combined, in accordance with their applicable percentages of contribution (subject to appropriate adjustment to take into account any Deferred Escrow Payment or any Borrowed Escrow Payment) and (y) then, for any remaining excess amounts, 50/50.

•If such breach is by Corteva, (i) Chemours and DuPont (by mutual agreement) will have the right (but not the obligation) to terminate the Definitive Agreement(s) in whole and (ii) Chemours and DuPont (by mutual agreement) will have the right (but not the obligation) to terminate the Definitive Agreement(s) solely with respect to Corteva (in the latter case Chemours and DuPont shall continue to have their respective rights and obligations under the Definitive Agreement(s) with respect to each other).  If Chemours and DuPont exercise such right to terminate the Definitive Agreement(s) wholly, effective on the Termination Date (as set forth in subsection C hereof) Chemours and DuPont shall (x) each recoup their respective contributions remaining in the escrow account and (y) recoup Corteva’s contribution remaining in the escrow account, with such amount distributed to Chemours and DuPont respectively in proportion to their respective contributions to the escrow account. 

•If such breach is by DuPont, (i) Chemours and Corteva (by mutual agreement) will have the right (but not the obligation) to terminate the Definitive Agreement(s) in whole and (ii) Chemours and Corteva (by mutual agreement) will have the right (but not the obligation) to terminate the Definitive Agreement(s) solely with respect to DuPont (in the latter case Chemours and Corteva shall continue to have their respective rights and obligations under the Definitive Agreement(s) with respect to each other).  If Chemours and Corteva exercise such right to terminate the Definitive Agreement(s) wholly, effective on the Termination Date (as set forth in subsection C hereof) Chemours and Corteva shall (x) each recoup their respective contributions remaining in the escrow account and (y) recoup DuPont’s contribution remaining in the escrow account, with such amount distributed to Chemours and Corteva respectively in proportion to their respective contributions to the escrow account.  

•If both DuPont and Corteva are in breach, Chemours will have the right, but not the obligation to terminate the Definitive Agreement(s) with respect to both DuPont and Corteva (without the consent of either DuPont or Corteva). If Chemours exercises such right to terminate the Definitive Agreement(s) as to both DuPont and Corteva, effective on the Termination Date (as set forth in subsection C hereof) Chemours shall recoup all amounts remaining in the escrow account.

•If such breach is of an escrow-funding obligation or funding obligation in respect of Qualified Spend, the breaching Party shall have five (5) Business Days to cure following the non-breaching Party’s delivery of written notice of such breach to the breaching party (which notice the non-breaching Party must provide before any arbitration seeking establishment of a termination right may be brought).

•The foregoing rights to termination and to distribution of the funds in the escrow account shall not be the Parties’ sole remedy in the event of such a breach. 

oThe Parties will have all remedies available under applicable law or principles of equity for such a breach, including specific performance.

oIn addition, in the event of any Willful Breach by a Party, upon a final and binding arbitration award confirming that such breach was a Willful Breach and the right to terminate existed (though was not exercised), during the remainder of the term of the Definitive Agreements, such Party shall bear 125% of its initial applicable percentage of any remaining Qualified Spend. In such case, the other Parties applicable percentages shall be reduced on a pro rata basis. In the event the Definitive Agreement(s) is terminated for such Willful Breach, then any damages shall be computed on the foregoing basis.

oIn the event that a Party commits a second Willful Breach (upon a final and binding arbitration award confirming that such breach was a Willful Breach and the right to terminate existed (though was not exercised)), during the remainder of the term of the Definitive Agreements, such Party shall bear 150% of its initial applicable percentage of any remaining Qualified Spend. In such case, the other Parties applicable percentages shall be reduced on a pro rata basis. In the event the Definitive Agreement(s) is terminated for such Willful Breach, then any damages shall be computed on the foregoing basis. 

o“Willful Breach” means an act or omission (including a failure to cure circumstances) taken or omitted to be taken that the breaching party intentionally takes (or intentionally fails to take) and knows (or reasonably should have known) would constitute a material breach of its escrow-funding obligations or its funding obligation in respect of Qualified Spend.

•In any recoupment of escrow under this Section A, the interest follows the principal.

B.  Other breaches.  If a Party breaches a provision of the Definitive Agreement(s) other than the provisions described in Section A above, the non-breaching Parties will have all remedies available under applicable law or principles of equity for such a breach, including specific performance.

C.  Process and Effect of Termination for Breach.  The following shall apply with respect to breaches under Section A and any other claim for termination due to breach if available under applicable law or principles of equity for such a breach.

•No termination shall be effective unless and until (a) there is a final and binding arbitration award confirming that the Party at issue has the right to terminate the Definitive Agreement(s) (the date of such award being the Termination Date) and (b) solely in the case of a breaching Party’s failure to fund an escrow-funding obligation or funding obligation in respect of Qualified Spend as the result of a good-faith dispute about such obligation, the breaching Party has not cured its breach within five (5) Business Days of the Termination Date.  The Parties shall continue to have their respective rights and obligations under the Definitive Agreement(s) until such time.

•In the event a Party elects not to exercise a right to terminate the Definitive Agreement(s), the breaching Party, in addition to any other remedy hereunder, shall (upon a final and binding arbitration award confirming that the right to terminate existed) not be entitled to exercise any approval, veto or other consent rights under the Definitive Agreement(s), including in respect of any settlement or release of funds from the escrow account or with respect to the management and defense of any claims or matters involving Qualified Spend (including its vote on the Shared Liability Claim Committee); provided that, solely in the case of a breaching Party’s failure to fund an escrow-funding obligation or funding obligation in respect of Qualified Spend as the result of a good-faith dispute about such obligation, the breaching Party shall retain its approval, veto and other consent rights if it cures its breach within five (5) Business Days of such final and binding arbitration award.

•In the event of termination for breach and effective on the Termination Date:

oIf the breaching Party is Chemours, (i) DuPont and Corteva shall have no further funding obligations under the Definitive Agreement(s), (ii) all liability for PFAS Liabilities shall be governed by the Separation Agreement, and (iii) all Parties shall continue to be bound by its releases under Section 3.

oIf the breaching Party is DuPont or Corteva (the “Breaching D/CTV”) and the Definitive Agreement(s) is terminated by mutual agreement of Chemours and whichever of DuPont or Corteva is not the breaching Party (the “Non-Breaching D/CTV”) solely with respect to the Breaching D/CTV, (i) Chemours and the Non-Breaching D/CTV shall remain entitled to enforce the funding obligations of the Breaching D/CTV under the Definitive Agreement, (ii) each Party shall continue to be bound by its releases under Section 3 and (iii) Chemours shall continue to bear its 50% share of Qualified Spend hereunder, the Non-Breaching D/CTV shall continue to bear its applicable percentage share of Qualified Spend hereunder, and the Breaching D/CTV’s applicable percentage share of Qualified Spend shall be shared by Chemours and the Non-Breaching D/CTV in proportion to their respective percentage shares of Qualified Spend (with any amounts recovered from the Breaching D/CTV with respect to its share of such Qualified Spend then shared by Chemours and the Non-Breaching D/CTV in the same proportion).

oIf the breaching Party is one of DuPont or Corteva and Chemours and the Non-Breaching D/CTV elect to terminate the Definitive Agreement(s) wholly, (i) Chemours and the Non-Breaching D/CTV shall have no further funding obligations under the Definitive Agreement(s), (ii) all PFAS Liabilities shall be governed by the Separation Agreement and (iii) all Parties shall continue to be bound by its releases under Section 3.

oIf the breaching Party is both DuPont and Corteva and the Definitive Agreement(s) is terminated in whole by Chemours, (i) Chemours shall be entitled to enforce DuPont and Corteva’s respective funding obligations under the Definitive Agreement(s), (ii) all PFAS Liabilities shall be governed by the Separation Agreement and (iii) all Parties shall continue to be bound by its releases under Section 3.

oSections 3 through 12 of this MOU shall survive the Termination Date.

D. Effect of Termination Not for Breach.  

 

 

•Following termination under clauses (i)-(ii) of the section entitled Termination Date, all liability for Chemours Liabilities shall be governed by the Separation Agreement (with the DuPont Group and the Corteva Group to have no economic responsibility therefor), except (a) as provided in subsection (b) under “Dispute Resolution” below, (b) that Chemours retains the right to assert the Claims excluded from Chemours Settled Claims in clauses (i)-(v) of that definition to the extent so excluded and (c) the Parties retain all rights under provisions of this MOU or the Definitive Agreement(s) that survive the Termination Date.  

•Upon the Termination Date, the Parties shall comply with the provisions under the heading of “Cooperation” above.

 

•Sections 3 through 12 of this MOU shall survive the Termination Date.

 

A-6

 

 

 

	
Key Term
	
Terms and Conditions

	
Qualified Spend
	
“Qualified Spend” shall mean: 

•All “PFAS Liabilities”, which shall mean any and all claims of harm including but not limited to environmental, commercial and/or personal harm alleged to be related to the manufacture, marketing, design, sale, distribution, supply or use of per and poly fluoroalkyl substances (“PFAS”), regardless of site or product, except to the extent they resulted from the post July 1, 2015 conduct of any Party (or any of its respective Indemnitees). 

 

•Qualified Spend includes:

▪all Indemnifiable Losses, including punitive damages, to the extent relating to, arising out of, by reason of or otherwise in connection with PFAS Liabilities (including any mutually agreed upon settlements).

▪any costs or amounts to abate, remediate, financially assure, defend, settle or otherwise pay for all pre-July 1, 2015 PFAS Liabilities or exposure, regardless of when those liabilities are manifested. Includes NRD claims associated with PFAS Liabilities. 

▪fines and/or penalties from governmental agencies for legacy EID PFAS emissions or discharges prior to the Spin-Off

▪GenX, except for the following:

(1)(a) To the extent that any Claim arises primarily as a result of exposure to GenX and (b) such Claim alleges GenX exposure from sources other than emissions or discharges from any sites transferred in connection with the Spin-Off that on or prior to the Spin-Off date produced GenX or used GenX imported from such a site (such a Claim for purposes of the Definitive Agreement(s), a “Not Site-Related GenX Claim”), it will be presumed that such Claim, for purposes of the Definitive Agreement(s) alone, did not arise from conduct pre-July 1, 2015 and hence is not within Qualified Spend.  For the avoidance of doubt, the parties are unaware of any such Claims as of the date of this MOU.  

(2)To the extent any Claim arises that meets clause (a) but not clause (b) of the first sentence of the clause (1) of this paragraph (such Claim alleges GenX exposure from emissions or discharges from any sites transferred in connection with the Spin-Off that on or prior to the Spin-Off date produced GenX or used GenX imported from such a site (such Claim for purposes of the Definitive Agreement(s), a “Site-Related GenX Claim”)), it will be presumed that such Claim, for purposes of the Definitive Agreement(s) alone, arises from conduct pre-July 1, 2015 and hence is within Qualified Spend.  

(3)A Party may contest the presumptions set forth in clauses (1) and (2) of this paragraph as to a particular Claim, and whether a Claim is primarily from exposure to GenX and/or is either a Site-Related GenX Claim or a Not Site-Related GenX Claim, by demonstrating that the facts of the case are to the contrary.  

(4)In the event of a good-faith dispute about the extent to which any such particular Claim falls within Qualified Spend, any such disputed portion of such Claim shall be treated as Qualified Spend for purposes of determining and sharing Qualified Spend hereunder unless and until there is a final and binding arbitration decision that such disputed portion of such Claim is not within Qualified Spend (in which case there will be recoupment of amounts incorrectly contributed).  

(5)Solely for purposes of this paragraph, “GenX exposure”, “exposure to GenX” and any similar phrase referring to GenX exposure shall be understood to refer to any exposure to, presence of, release of, or contamination by, GenX.

 

•Qualified Spend does not include: 

▪Amounts spent prior to the date of this MOU.

▪Any non-PFAS related spend

▪PFAS Liabilities that are not Chemours Liabilities under the Separation Agreement.  In the event of a good-faith dispute about whether particular PFAS Liabilities are Qualified Spend or Chemours Liabilities under the Separation Agreement, the PFAS Liabilities in question shall be treated as Qualified Spend for purposes of determining and sharing of Qualified Spend hereunder unless and until there is a final and binding arbitration decision that they are not Qualified Spend or Chemours Liabilities and are Liabilities of either the DuPont Group or Corteva Group (in which case there will be recoupment of amounts incorrectly contributed).  

▪GenX to the extent excluded by virtue of the fourth bullet under “Qualified Spend includes:”

▪Excluded Capex (defined as any cost that extends the useful life, increases capacity, and/or reduce or prevent contamination from future operations).  For the avoidance of doubt, expenditures falling within Qualified Spend that do not meet the foregoing definition of Excluded Capex shall be included in Qualified Spend even if they meet the accounting definition of Capex or are treated as Capex by the Party for accounting purposes.

▪Fines/penalties under the New Jersey Industrial Site Recovery Act (ISRA) (for sake of clarity: DuPont/Corteva to pay ISRA fines/penalties directed to EID, Corteva or DuPont without indemnification from Chemours (such amount to be allocated between DuPont and Corteva  as set forth in the section entitled “Allocation of DuPont/Corteva Funding and Payment Obligations”), and Chemours to pay all costs of any bonds required under ISRA for a remediation funding source with respect to the sites assigned to it under the Separation Agreement).

 

▪Claims/fines/penalties regarding the construct of the Spin-Off (including fraudulent transfer; provided, for the avoidance of doubt, if a Claim seeks recovery for both PFAS Liabilities themselves and matters regarding the construct of the Spin-Off, only the portion of such Claim regarding the construct of the Spin-Off shall be excluded from Qualified Spend), or any subsequent spin or transaction undertaken by DuPont or Corteva.  Exception: if DuPont, Corteva, EID, or Chemours, as applicable, prevails (i.e. wins a judgment or obtains an involuntary dismissal that is upheld) defeating a fraudulent transfer claim regarding the Spin-Off, defense costs of such prevailing party will be part of Qualified Spend in that particular matter.

▪For the avoidance of doubt and without limitation of the foregoing, as among the Parties, DuPont and Corteva shall be responsible for paying all Liabilities and other Indemnifiable Losses relating to or arising out of third party Claims regarding the construct of the Spin-Off  (to the extent not for recovery for PFAS Liabilities themselves) or any subsequent spin or transaction undertaken by DuPont or Corteva, regardless of how such Liabilities or Indemnifiable Losses (or the underlying Claims) are denominated (including, without limitation, fraudulent transfer, punitive damages, penalties, fines or Claims under any statute).  Chemours shall have no economic responsibility for any such Liabilities or Indemnifiable Losses, whether through indemnification or otherwise.  Notwithstanding the foregoing, Chemours shall be responsible for paying all costs of any bonds required under ISRA for a remediation funding source with respect to the sites assigned to it under the Separation Agreement, and for paying its share of Qualified Spend under the circumstances set forth in the exception in the preceding bullet.  For the avoidance of doubt, as among the Parties, nothing in this bullet shall affect the allocation of financial responsibility for PFAS Liabilities themselves under the Separation Agreement or the Definitive Agreement(s).

 

The Parties shall cooperate for payment of their respective shares of Qualified Spend.  Each Party will be required to prepare and submit to each other Party a quarterly statement of Qualified Spend, including (x) a calculation of the amount (if any) to be disbursed by the Escrow Agent in accordance with the terms of the Definitive Agreement(s) (any such claim, a “Pending Escrow Claim”) and (y) a calculation of the amount (if any) for which the other Parties are responsible under the terms of the Definitive Agreement(s); provided, however, that if a Party pays more than $5 million in Qualified Spend before a quarter ends, it may submit to the other Party(ies) an interim statement prior to the end of the quarter for more prompt reimbursement within 30 days (on account of the quarterly statement), but provided further that a Party may not submit an interim statement for prompt reimbursement more than once per quarter. The Definitive Agreement(s) will include provisions for certification and reasonable audit.

A-7

 

 

 

	
Key Term
	
Terms and Conditions

	
Tax Matters
	
To the extent a Party realizes any tax benefit in cash or a reduction in taxes otherwise payable, measured on a “with and without basis,” from any Qualified Spend or other cost or expense that is the subject of  the sharing arrangement in this MOU, it will be shared with the other Parties in proportion to the Parties’ respective contributions, with the Definitive Agreement(s) to set forth the mechanism for doing so.  The Parties, with the assistance of their respective tax advisors, will prepare and enter into a side letter, in connection with entering into the Definitive Agreement(s), to set forth the methodology and process to calculate any such tax benefits.

A-8

 

 

 

	
Key Term
	
Terms and Conditions

	
Ohio MDL
	
DuPont and Corteva will pay the first $25M of the settlement and then the remainder will be split 50/50 between Chemours, on one hand, and DuPont and Corteva, on the other hand.  Amounts paid in the settlement do not count against the $4,000,000,000 aggregate amount under the Definitive Agreement(s) or any Party’s share thereof.

The first $25M and the 50% allocated to DuPont and Corteva shall be allocated between DuPont and Corteva as set forth in the section entitled “Allocation of DuPont/Corteva Funding and Payment Obligations”.  

 

A-9

 

 

 

 

Exhibit B

Certain Definitions

1.“Action” shall have the meaning set forth in the Separation Agreement.

2.“Affiliates” shall have the meaning set forth in the Separation Agreement.

3.“Business Day” shall have the meaning set forth in the Separation Agreement.

4.“Chemours Group” shall have the meaning set forth in the Separation Agreement.

5.“Chemours Indemnitees “ shall mean each member of the Chemours Group and each of their respective Affiliates from and after the date hereof and each member of the Chemours Group’s and such Affiliates’ respective present, former and future directors, officers, employees, members, shareholders, fiduciaries, representatives, agents and predecessors and each of their successors and assigns and all persons acting by, through, under, or in concert with any of them..

6.“Chemours Liabilities” shall have the meaning set forth in the Separation Agreement.

7.“Chemours Settled Claims” shall mean:

(a)any Claim set forth in that Verified First Amended Complaint filed by Chemours in the Court of Chancery of the State of Delaware on August 14, 2019 (the “Complaint”), any other similar Claims arising out of or resulting from (i) the facts recited by Chemours in the Complaint or otherwise set forth in the Complaint or (ii) the process and manner in which EID structured or conducted the Spin-Off, and any other Claims that challenge the Spin-Off or the assumption of Chemours Liabilities by Chemours and the allocation thereof, except for Claims described in clauses (i), (iii) and (v) below; 

(b)Claims regarding the Chemours Group’s responsibility for Chemours Liabilities under the Separation Agreement (including regarding the allocation of financial responsibility for PFAS Liabilities under the Separation Agreement), except for Claims described in clauses (i), (ii), (iv) and (v) below;

(c)solely with respect to PFAS Liabilities (as defined in this MOU), Claims that Corteva and DuPont are not “DuPont Indemnitees” under the Separation Agreement for purposes of the terms of the Separation Agreement;

(d)solely with respect to PFAS Liabilities (as defined in this MOU), Claims that punitive damages, penalties or fines awarded to or assessed by a third party are not Indemnifiable Losses, except for Claims described in clause (iv) below; 

(e)Claims that the Separation Agreement, or any of its terms, is not valid or enforceable or should not be valid or enforceable (including as to Chemours Liabilities and DuPont Liabilities), except for Claims described in clauses (i) and (v) below; 

B-1

 

 

 

(f)Claims for indemnification of, or that Chemours is otherwise not required to bear, Liabilities and other Indemnifiable Losses paid by Chemours (or any of its  Indemnitees) prior to the date of this MOU to the extent arising from the Delaware Matter or PFAS Liabilities; and 

(g)Claims by any Chemours Indemnitee that this MOU, or any of its terms, is not valid or enforceable or should not be valid or enforceable or does not govern such  Chemours Indemnitee's rights and obligations with respect to matters that are the subject of this MOU.

Notwithstanding the foregoing, to the extent enumerated above within subparagraphs (a)-(g), Chemours Settled Claims do not include:

(i)Claims described in Section 5 of this MOU;

(ii) Claims to enforce rights under the Separation Agreement, or regarding breaches of the Separation Agreement after the date of the MOU; 

(iii)Claims pursuant to the Separation Agreement to indemnification after the date of the MOU for matters that are not the subject of this MOU (e.g. Chemours suffers an Indemnifiable Loss which results from a DuPont Retained Liability); 

(iv)Claims that the facts and circumstances of a particular Indemnifiable Loss result in it not constituting a Chemours Liability; and

(v)as to non-PFAS Liabilities, Claims that indemnification for punitive damages, penalties or fines awarded to or assessed by a third party is invalid as a matter of law or public policy with respect to any particular claim.

8.“Corteva Group” shall mean (i) Corteva, (ii) EID and (iii) each Person that (x) is a direct or indirect Subsidiary of Corteva and/or EID or (y) becomes a Subsidiary of Corteva and/or EID after the date hereof.

9.“Corteva Indemnitees” shall mean each member of the Corteva Group (including EID) and each of their respective Affiliates from and after the date hereof and each member of the Corteva Group’s and such Affiliates’ respective present and former directors, officers, employees, members, shareholders, fiduciaries, representatives, agents and predecessors and each of their successors and assigns and all persons acting by, through, under, or in concert with any of them, except, for the avoidance of doubt, the Chemours Indemnitees and the New DuPont Indemnitees.

10.“DuPont Group” shall mean (i) DuPont and (ii) each Person that is a direct or indirect Subsidiary of DuPont or becomes a Subsidiary of DuPont after the date hereof.

11.“DuPont Retained Liabilities” shall have the meaning set forth in the Separation Agreement.

12. “DuPont Settled Claims” shall mean:

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(a)Claims arising out of or resulting from the filing of the Delaware Matter, including that the filing of the Delaware Matter by Chemours constituted a breach of the Separation Agreement; 

 

(b)Claims for indemnification of, or that DuPont and Corteva are otherwise not required to bear, Liabilities and other Indemnifiable Losses paid by DuPont or Corteva (or any of their respective Indemnitees) prior to the date of this MOU to the extent arising from the Delaware Matter or PFAS Liabilities; 

 

(c)Claims for indemnification of, or that DuPont and Corteva are otherwise not required to bear, Liabilities and other Indemnifiable Losses to the extent relating to Third-Party Claims, fines or penalties regarding the construct of the Spin-Off (including, without limitation, for fraudulent transfer and under ISRA) or any subsequent spin or transaction undertaken by DuPont or Corteva (whether such Liabilities or other Indemnifiable Losses arise before or after the term of this MOU) (but excluding, for the avoidance of doubt, PFAS Liabilities); and

 

(d) Claims by any New DuPont Indemnitee or Corteva Indemnitee that this MOU, or any of its terms, is not valid or enforceable or should not be valid or enforceable or does not govern such New DuPont Indemnitee's or Corteva Indemnitee's rights and obligations with respect to matters that are the subject of this MOU.

 

Notwithstanding the foregoing, DuPont Settled Claims do not include Claims described in Section 5 of this MOU or Claims for Chemours to contribute its share of Qualified Spend for defense costs for particular fraudulent transfer claims as set forth in both the penultimate and final bullets under Qualified Spend in Exhibit A and for Chemours to pay all costs of any bonds required under ISRA.

13.“New DuPont Indemnitees” shall mean each member of the DuPont Group and each of their respective Affiliates from and after the date hereof and each member of the DuPont Group’s and such Affiliates’ respective present and former directors, officers, employees, members, shareholders, fiduciaries, representatives, agents and predecessors and each of their successors and assigns and all persons acting by, through, under, or in concert with any of them, except, for the avoidance of doubt, the Chemours Indemnitees and the Corteva Indemnitees.

14.“Indemnifiable Losses” shall have the meaning set forth in the Separation Agreement.

15.“Liabilities” shall have the meaning set forth in the Separation Agreement.

16.“Person” shall have the meaning set forth in the Separation Agreement.

17.“Subsidiary” shall have the meaning set forth in the Separation Agreement.

18.“Third Party Claim” shall have the meaning set forth in the Separation Agreement.

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Exhibit C

Form of Confidential Final Consent Award

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Exhibit D

Form of Escrow Agreement

D-1Document

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“Agreement”) is entered into on January 22, 2021 with an effective date of January 1, 2021 (the “Effective Date”) between AGNC Mortgage Management, LLC, a Delaware limited liability company (the “Company”), and Bernice Bell (the “Executive”), and supersedes and replaces in its entirety that certain Employment Agreement, entered into between the Company and the Executive, effective as of January 1, 2019, as amended (the “Prior Agreement”).
W I T N E S S E T H:
WHEREAS, the Company is currently engaged through its affiliates in the business of, among other things, managing mortgage real estate investment trusts, which invest in (a) agency securities for which the principal and interest payments are guaranteed by U.S. Government agencies and U.S. Government-sponsored entities, (b) non-agency securities and/or (c) other mortgage related investments; and
WHEREAS, the Executive has received and will continue to receive specific trade secrets and confidential information, training and the benefit of established customer relationships relating to the businesses of the Company, which trade secrets and confidential information, training and access to established customer relationships are necessary to enable the Executive to perform the Executive’s duties and to receive future compensation, and the Executive has played and will continue to play a significant role in the development and management of the businesses of the Company; and
WHEREAS, it is in the interests of the Company that the Executive’s services continue to be available to the Company; and
WHEREAS, the Company and the Executive are parties to the Prior Agreement; and
WHEREAS, the parties wish to amend and restate the Prior Agreement in its entirety; and
WHEREAS, it is a condition to the Executive’s continued employment by the Company that the Executive execute and deliver this Agreement, and in order to induce the Executive to continue the Executive’s employment, the Company has agreed to provide the Executive with the rights and benefits described more fully herein.
NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained herein, and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree to enter into this Agreement as follows:
1.Definitions; Interpretations.  For purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, the following terms shall have the following respective meanings:

(a)“AGNC” shall mean AGNC Investment Corp. and its successors and assigns.
(b)“Base Salary” shall have the meaning specified in subparagraph 4(a).
(c)“Board” shall mean the Board of Directors of AGNC.
(d)“Change of Control” shall have the meaning set forth in the Equity Plan, including the relevant provisions of Section 17 of the Equity Plan, as of the Effective Date.
(e)“Code” shall mean the Internal Revenue Code of 1986, as amended.
(f)“Company Managed Fund” shall mean (i) AGNC and (ii) any other entity for which the Company or a subsidiary of the Company serves as investment manager or in a substantially similar capacity pursuant to a written agreement.  
(g)“Company’s Business” shall mean:
(i) any business activity that would be the same or competitive with any business activity engaged in by AGNC, the Company or any of their subsidiaries or any Company Managed Fund during the term of the Executive’s employment; and
(ii) the provision of management, advisory or other investment services to mortgage real estate investment trusts or any other investment vehicles that engage primarily in the acquisition, trading, sales, financing, investment or management of mortgage-backed securities or other real estate assets.
(h)“Compensation Committee” shall mean the Compensation and Corporate Governance Committee of the Board.
(i)“Compensation Committee Charter” shall mean the AGNC Investment Corp. Compensation and Corporate Governance Committee Charter, as may be in effect from time to time.
(j)“Disability” shall mean a physical or mental condition of the Executive that, in the good faith judgment of the Company, prevents the Executive from being able to perform the services required under this Agreement and that results in the Executive becoming eligible for long-term disability benefits (if such benefits are provided by the Company).  If any dispute arises as to whether a Disability has occurred, or whether a Disability has ceased and the Executive is able to resume duties, then such dispute shall be referred to a licensed physician, at the request of either the Executive or the Company.  The Executive shall submit to such examinations and provide information as such physician may request and the determination of such physician as to the Executive’s physical or mental condition shall be binding and conclusive on the parties.  The Company shall pay the cost of any such physician and examination.
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(k)“Equity Plan” shall mean the AGNC Investment Corp. 2016 Equity and Incentive Compensation Plan, as approved by the Board on October 18, 2016, as amended from time to time, and any successor plan thereto.
(l)“Good Reason” shall mean any of the following, which occur without the Executive’s express written consent: (i) a material diminution of the Executive’s authority, duties or responsibilities with the Company, (ii) a material breach by the Company of any material provision of this Agreement, or (iii) a relocation of the Executive’s principal office to a location that is in excess of 50 miles from Bethesda, Maryland.  The Executive must provide written notice to the Company within 90 days of the initial existence of a condition that constitutes Good Reason as defined herein and the Company shall have 30 days after receipt of any such notice to remedy the condition.  If the Company timely remedies such condition, such condition shall not constitute Good Reason.  The Executive may not terminate the Executive’s employment hereunder for Good Reason more than six months after the initial existence of one (or more) of the conditions that constitutes Good Reason.
(m) “Person” shall mean and include an individual, a partnership, a joint venture, a corporation, a trust and an unincorporated organization.
(n)“Restricted Territory” shall mean: 
(i) the world; and
(ii) North America; and
(iii) the United States; and
(iv) Maryland.
(o)“Section 280G” shall mean Section 280G of the Code and the regulations thereunder.
(p)“Section 409A” shall mean Section 409A of the Code and the regulations thereunder.
(q)“Termination For Cause” shall be deemed to exist if Executive: (i) commits or engages in an act of fraud, embezzlement, sexual harassment, dishonesty or theft in connection with Executive’s duties for the Company; (ii) is convicted of, or pleads nolo contendere with respect to, an act of criminal misconduct, involving any financial crime or an act of moral turpitude; (iii) engages in an act of gross negligence or willful failure to perform in any material respect Executive’s duties or responsibilities to the Company (other than as a result of ill health or disability); and/or (iv) materially breaches or violates the Company’s employment policies, including its Code of Ethics; provided, however, that prior to any termination for cause under clauses (iii) or (iv) of 
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this paragraph, Executive will have been given written notice of such matter from the Company’s Chief Executive Officer and a 15 day period to correct any such matter.  
(r)“Termination For Good Reason” shall mean the Executive’s termination of the Executive’s employment with the Company as a result of Good Reason.
(s)“Termination Without Cause” shall mean the termination by the Company of the Executive’s employment with the Company for any reason other than a termination for Disability or a Termination For Cause and shall not include the Company’s giving notice pursuant to subparagraph 5(a) that the Employment Period shall not be extended.
(t)“Voluntary Termination” shall mean the Executive’s termination of the Executive’s employment with the Company for any reason, other than a Termination For Good Reason.
In this Agreement, unless a clear contrary intention appears, (a) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular paragraph or subparagraph, (b) reference to any paragraph or subparagraph means such paragraph or subparagraph hereof, (c) the words “including” (and with correlative meaning “include”) means including, without limiting the generality of any description preceding such term, and (d) where any provision of this Agreement refers to action to be taken by a specific party, or which such party is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such party.  The paragraph and subparagraph headings herein are for convenience only and shall not affect the construction hereof.
2.Employment.  The Company agrees to continue to employ the Executive, and the Executive agrees to accept such continued employment with the Company, in each case on the terms and conditions set forth in this Agreement for the period beginning on the Effective Date and ending as provided in paragraph 5 hereof (the “Employment Period”).  Notwithstanding anything in this Agreement to the contrary, the Executive shall be an at-will employee of the Company and the Executive or the Company may terminate the Executive’s employment with the Company for any reason or no reason at any time, subject to the terms and conditions hereof, including any obligations the Company may have pursuant to paragraph 6 hereof.
3.Positions and Duties.
(a)During the Employment Period, the Executive shall serve as the Senior Vice President and Chief Financial Officer of the Company.  As such, the Executive shall have the responsibilities and authorities customary for persons holding such positions and such other duties as may be reasonably designated to Executive by the President of the Company or an executive of comparable seniority as designated by the Company. 
(b)During the Employment Period, the Executive shall (i) report directly to the President of the Company and (ii) observe and comply with all lawful policies, directions and instructions of the President of the Company or the Board that are 
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consistent with this paragraph 3.  At the Company’s request and instruction, Executive shall, in lieu of reporting to the President, instead report to and receive instruction from an executive of the Company with comparable seniority.
(c)During the Employment Period, the Executive shall (i) devote substantially all of the Executive’s business time, attention, skill and efforts to the faithful and efficient performance of the Executive’s duties hereunder (except for permitted vacation periods and reasonable periods of illness or other incapacity) and (ii) not accept employment with any Person other than with the Company.  Notwithstanding the foregoing, the Executive may engage in the following activities so long as they do not interfere in any material respect with the performance of the Executive’s duties and responsibilities hereunder: (A) serve on corporate (if approved by the Board, such approval not to be unreasonably withheld), civic, religious, educational or charitable boards or committees or (B) manage the Executive’s personal investments.
(d)During the Employment Period, the Executive shall perform the Executive’s duties and responsibilities principally in the Bethesda, Maryland area. 
4.Compensation and Benefits.
(a)Base Salary.  For services rendered by the Executive under this Agreement during the Employment Period, the Company shall pay to the Executive an annual base salary (“Base Salary”), evenly paid twice a month or on such other schedule as salaried employees of the Company are generally and regularly compensated.  During the Employment Period from the Effective Date through the term of this Agreement, the Base Salary shall be at the rate of no less than $500,000 per year.  With respect to periods commencing on and after January 1, 2022, the Compensation Committee, in consultation with the Chief Executive Officer, shall review the Executive’s Base Salary from time to time and may, in its sole discretion, increase it; provided that the Base Salary shall not be lowered from the rate of $500,000.
(b)Annual Cash Bonus.  With respect to each calendar year during the Employment Period, the Executive shall be eligible to earn an annual cash bonus. The actual annual bonus will be the product of the target value (the “Target Annual Bonus Amount”) and a factor based on the level of achievement of specified performance measures and goals set by the Compensation Committee (with, subject to the Compensation Committee Charter, input from the Chief Executive Officer) for such calendar year (the “Annual Performance Goals”). The factor is expected to be above 1.0 for above plan performance and below 1.0 if performance is below expectations or corporate goals are not fully met. Performance below a defined threshold level may result in no bonus payment for such measure. For the calendar year 2021 bonus to be paid in 2022, and for each calendar year thereafter, the Target Annual Bonus Amount shall be no less than 200% of the Executive’s Base Salary. The Compensation Committee (with, subject to the Compensation Committee Charter, input from the Chief Executive Officer), in its reasonable judgment and no later than ninety (90) days after the beginning of each calendar year, shall determine the weightings of each performance measure and the 
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threshold, target and maximum for each performance goal, which in aggregate will comprise the “Corporate Scorecard” for that calendar year. Executive’s Annual Performance Goals may be a combination of the “corporate scorecard” and individual contributions of the Executive, and, the weighting thereof, as well as performance versus this criteria, shall be determined by the Compensation Committee (with, subject to the Compensation Committee Charter, input from the Chief Executive Officer), in its reasonable judgment. To the extent that specified performance measures and goals apply to other executives of the Company, the threshold, target and maximum levels associated with such specified performance measures and goals will apply to the Executive in the same manner as they apply to such other executives. Subject to the provisions of paragraph 6, the Executive must be employed on the date on which the annual cash bonus is paid in order to receive payment of any such annual cash bonus pursuant to this subparagraph 4(b). Any annual cash bonus earned pursuant to this subparagraph 4(b) shall be paid to the Executive by March 15 of the calendar year following the calendar year to which such annual cash bonus relates.
(c)Long-Term Incentive Awards.  Beginning in the first quarter of calendar year 2021, and during the first quarter of each calendar year of the Employment Period thereafter, Executive shall be eligible to receive long-term incentive award(s), subject to approval by the Board, as part of the Company’s long-term incentive program applicable to other executives (the “Target Annual LTIA”). Beginning in the calendar year 2021 and beyond, such grants shall have an aggregate target fair value equal to no less than 220% of Executive’s Base Salary for the corresponding calendar year (initially set at $1,100,000). Annual grants will be comprised of a combination of 50% “Performance-Based Awards” that shall vest based upon the achievement of certain specified performance metrics (as determined by the Compensation Committee in its reasonable judgment) (the “Performance-Based Metrics”) measured over a multi-year performance period with the amount of shares and the associated performance targets specified at or before the grant date of the award, and 50% time-based awards that shall vest based on continued service over a multi-year period. If the Performance-Based Metrics are exceeded (as determined by the Compensation Committee in its reasonable judgment), the Executive may earn up to 200% of the target number of shares underlying the Performance-Based Award. Notwithstanding the foregoing, each Target Annual LTIA shall be subject to approval by the Board and to the terms and conditions of the Equity Plan and the applicable award agreement(s) to be entered into between AGNC and the Executive, which shall be consistent with the terms hereof.  
(d)Vacation.  During the Employment Period, the Executive shall be entitled to 25 days of paid vacation during each calendar year.
(e)Other Benefits.  During the Employment Period, the Executive shall be entitled to receive all employee benefits, fringe benefits and other perquisites that may be offered by the Company to its senior employees as a group, including, without limitation, participation by the Executive and, where applicable, the Executive’s dependents, in the various employee benefit plans or programs (including, without limitation, retirement 
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plans, stock plans, health plans, life insurance, parking and disability insurance but excluding, except as hereinafter provided in subparagraph 6(b), 6(c) or 6(d), any severance pay program or policy of AGNC, the Company or any of their subsidiaries) generally provided to senior employees of the Company, subject to meeting the eligibility requirements with respect to each of such benefit plans or programs.  However, nothing in this subparagraph 4(e) shall be deemed to prohibit the applicable plan sponsor from making any changes in any of the plans, programs or benefits described herein, provided such changes apply to all similarly situated senior employees.
(f)Clawback Policy.  The Executive agrees that performance-based incentive compensation awarded or paid by AGNC or the Company to the Executive (whether in cash or equity) shall be subject to the clawback policy of the Company in effect as of the Effective Date, including as it may be amended from time to time in order to comply with the final rules or regulations adopted by the U.S. Securities and Exchange Commission and the Nasdaq Stock Market that implement the incentive-based compensation recovery requirements set forth in Section 10D of the Securities Exchange Act of 1934, as added by Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and any other applicable legal requirements or listing standards that may be enacted and in effect from time to time (the “Clawback Rules”) or as otherwise may be amended or adopted in good faith by the Board for the Company’s employees.  Such clawback policy, as it may be amended or adopted, will trigger the forfeiture or recoupment of the Executive’s performance-based incentive compensation (and such other compensation covered by the Clawback Rules or determined by the Board in good faith and specified in such policy) if the performance-based incentive compensation (or other compensation) is of the type covered by the Clawback Rules or such clawback policy for employees as adopted by the Board in good faith and (i) in the event that AGNC is required to prepare an accounting restatement due to AGNC’s material noncompliance with any financial reporting requirement under U.S. federal securities laws, provided that such forfeiture or recoupment shall be limited to the portion of applicable compensation that would not have been awarded or paid to the Executive for or in respect of such restated fiscal year had such financial statements been accurate (as reasonably determined by the Board in accordance with the Clawback Rules), (ii) in such other circumstances as may be required to comply with the Clawback Rules, in which case such forfeiture or recoupment shall be limited to the portion of the applicable compensation required to be forfeited/recouped under the Clawback Rules, or (iii) in such other circumstances and in such amount as the Board may determine in good faith as specified in such policy.
(g)Stock Ownership Guidelines.  The Executive agrees that all shares of common stock of AGNC owned by the Executive shall be subject to any applicable stock ownership guidelines that may be reasonably implemented by the Board from time to time.
5.Employment Period.
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(a)Except as hereinafter provided, the Employment Period shall continue until, and shall end on, the second anniversary of the Effective Date (such date, the “Expiration Date”); provided, however, that on each day following the Effective Date, the Expiration Date shall be extended to the second anniversary of such date.  Notwithstanding the preceding sentence, the Board or the Executive may terminate the Employment Period at any time by providing prior written notice that such daily extensions of the Expiration Date shall be discontinued, in which case the Expiration Date shall be the second anniversary of the date on which such notice is provided.
(b)Notwithstanding subparagraph 5(a) above, the Employment Period shall end early upon the first to occur of any of the following events:
(i) the Executive’s death;
(ii) the Board’s termination of the Executive’s employment due to Disability;
(iii) a Termination For Cause;
(iv) a Termination Without Cause; 
(v) a Termination For Good Reason; or
(vi) a Voluntary Termination.
6.Post-Employment Payments.
(a)At the end of the Executive’s employment for any reason, the Executive shall cease to have any rights to salary, expense reimbursements or other benefits, except that (to the extent applicable) the Executive shall be entitled to (i) any Base Salary which has been earned but is unpaid as of the end of the Employment Period, which shall be paid by the Company to the Executive on the first payroll date following the Executive’s termination of employment, (ii) any annual cash bonus that has been earned for a prior calendar year pursuant to subparagraph 4(b) but is unpaid, which shall be paid by the Company to the Executive by March 15 of the calendar year in which the Executive’s termination of employment occurs (but only if the termination is not a Termination For Cause or a Voluntary Termination), (iii) any reimbursable expenses which have been incurred but are unpaid as of the end of the Employment Period, which shall be paid by the Company to the Executive in accordance with the Company’s applicable reimbursement policies, (iv) any plan benefits which by their terms extend beyond termination of the Executive’s employment (but only to the extent provided in any benefit plan in which the Executive has participated as an employee of the Company and excluding, except as hereinafter provided in subparagraph 6(b), 6(c) or 6(d), any severance pay program or policy of AGNC, the Company or any of their subsidiaries) and (v) any benefits to which the Executive is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”).  In addition, subject to subparagraph 6(f), the Executive shall be entitled to the additional 
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amounts described in subparagraph 6(b), 6(c) or 6(d), in the circumstances described in such subparagraphs.  Moreover, subject to subparagraph 6(f), unless otherwise expressly agreed to by the parties, if the Executive’s employment is terminated by the Company following the end of the Employment Period (for any reason other than a reason that would have constituted a Termination For Cause had such termination of employment occurred during the Employment Period), then the Executive shall be entitled to the severance provided under any severance policy or arrangement of AGNC, the Company or their affiliates that is applicable to the Executive at the time of such termination but shall be no less than six (6) months of targeted cash compensation (salary plus targeted cash bonus).  
(b)If the Employment Period ends early pursuant to subparagraph 5(b) on account of a Termination Without Cause or a Termination For Good Reason (except in circumstances in which subparagraph 6(c) would apply), the Executive shall be entitled to receive the following:
(i) The greater of any amounts under any applicable severance policy or arrangement of AGNC, the Company or their affiliates applicable to the Executive at the time of such termination or an amount equal to the product of (A) 1.0, multiplied by (B) the sum of (x) the Executive’s Base Salary at the time of such termination of employment, plus (y) the Target Annual Bonus Amount for the calendar year in which such termination of employment occurs, which shall be paid by the Company to the Executive in equal installments over the 12-month period following such termination of employment in accordance with the Company’s normal payroll practices; 
(ii) an amount equal to the product of (A) the annual cash bonus the Executive would have been entitled to receive pursuant to subparagraph 4(b) if Executive had remained employed through December 31 of the calendar year in which such termination of employment occurs (as determined by the Compensation Committee but assuming that the Executive achieved all qualitative and subjective metrics of the Annual Performance Goals at their target level), multiplied by (B) a fraction (x) the numerator of which is the number of days that the Executive remained employed during the calendar year in which such termination of employment occurs and (y) the denominator of which is 365 (the “Assumed Pro Rata Bonus”), which shall be paid by the Company to the Executive in a single lump sum by March 15 of the calendar year following the calendar year in which such termination of employment occurs;
(iii)(A) if the Executive (or any of Executive’s eligible dependents) elects continuation coverage under the Company’s medical, dental and/or vision plans pursuant to COBRA, reimbursement for the Executive’s (and any such eligible dependent’s) COBRA premium payments (provided such reimbursement does not result in any taxes or penalties for the Company) until the earlier of (x) the Executive’s eligibility for any such coverage under another employer’s or any 
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other medical plan or (y) the date that is twelve (12) months following such termination of employment (such period, the “COBRA Period”), with each such COBRA reimbursement being made by the Company to the Executive within thirty (30) days following the payment of any such COBRA premiums by the Executive (and any such eligible dependent) (the “COBRA Reimbursements”); or (B) if the Executive (or any of Executive’s eligible dependents) elects continuation coverage under the Company’s medical, dental and/or vision plans pursuant to COBRA but the COBRA Reimbursements would result in taxes or penalties for the Company, monthly cash payments, with each such monthly cash payment being equal to the Executive’s (and any such eligible dependent’s) monthly COBRA premium payments during the COBRA Period, which shall be paid by the Company to the Executive on the first payroll date of each month following the month with respect to which the Executive’s (and any such eligible dependent’s) monthly COBRA premiums were paid during the COBRA Period (the “Substitute Payments”); and 
(iv) acceleration of any outstanding unvested awards under the Equity Plan, subject to and in accordance with the applicable award agreement(s) to be entered into between AGNC and the Executive.
(c)If the Employment Period ends early pursuant to subparagraph 5(b) on account of a Termination Without Cause or a Termination For Good Reason, and such termination of employment occurs within twenty-four (24) months after a Change of Control, the Executive shall be entitled to receive the following:
(i) the greater of any amounts under any applicable severance policy or arrangement of AGNC, the Company or their affiliates applicable to the Executive at the time of such termination or an amount equal to the product of (A) 1.5, multiplied by (B) the sum of (x) the Executive’s Base Salary at the time of such termination of employment, plus (y) the Target Annual Bonus Amount for the calendar year in which such termination of employment occurs, which shall be paid by the Company to the Executive in a lump sum on the first payroll date following the 60th day after such termination of employment;
(ii) an amount equal to the product of (A) the Target Annual Bonus Amount for the calendar year in which such termination of employment occurs, multiplied by (B) a fraction (x) the numerator of which is the number of days that the Executive remained employed during the calendar year in which such termination of employment occurs and (y) the denominator of which is 365, which shall be paid by the Company to the Executive in a single lump sum by March 15 of the calendar year following the calendar year in which such termination of employment occurs;
(iii) the COBRA Reimbursements or the Substitute Payments (each as defined in subparagraph 6(b)(iii)), as applicable; provided, however, that the COBRA Period shall continue until the earlier of (A) the Executive’s eligibility for any 
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such coverage under another employer’s or any other medical plan or (B) the date that is eighteen (18) months following such termination of employment; and
(iv) acceleration of any outstanding unvested awards under the Equity Plan, subject to and in accordance with the applicable award agreement(s) to be entered into between AGNC and the Executive.
(d)If the Employment Period ends early at any time pursuant to subparagraph 5(b) on account of the Executive’s death or Disability, the Executive (or in the event of the Executive’s death, Executive’s estate or eligible dependents, as applicable) shall be entitled to receive the following:
(i) the Assumed Pro Rata Bonus, which shall be paid by the Company to the Executive (or to Executive’s estate) in a single lump sum by March 15 of the calendar year following the calendar year in which such termination of employment occurs;
(ii) the COBRA Reimbursements or the Substitute Payments (each as defined in subparagraph 6(b)(iii)), as applicable (provided that in the event of the Executive’s death, the COBRA Reimbursements or the Substitute Payments, as applicable, shall be paid to the Executive’s eligible dependents); and
(iii) acceleration of any outstanding unvested awards under the Equity Plan, subject to and in accordance with the applicable award agreement(s) to be entered into between AGNC and the Executive.
(e)Any payment, reimbursement or benefit under the last sentence of subparagraph 6(a) or subparagraph 6(b), 6(c) or 6(d) that is not made or provided during the period following the Executive’s termination of employment because the Executive (or, if applicable, Executive’s estate) has not executed the release described in subparagraph 6(f) shall be paid to the Executive in a single lump sum (or shall be provided to the Executive) on the first payroll date following the 60th day after such termination of employment; provided that the Executive (or, if applicable, Executive’s estate) executes and does not revoke the release in accordance with the requirements of subparagraph 6(f).
(f)Notwithstanding anything herein to the contrary, the Executive (or, if applicable, Executive’s estate) shall not be entitled to receive any payment, reimbursement or benefit under the last sentence of subparagraph 6(a) or subparagraph 6(b), 6(c) or 6(d) hereof unless (i) prior to the 60th day following such termination of employment, the Executive (or, if applicable, Executive’s estate) executes a standard release of all claims, known or unknown, arising on or before the date of the release, against AGNC, the Company and their subsidiaries and their directors, managers, officers, employees and affiliates, in a standard form of release provided by the Board and agreed to by the Executive (which release shall not impose any further obligations, covenants or duties on the Executive), and (ii) any applicable revocation period has 
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expired prior to the 60th day following such termination of employment without the Executive (or, if applicable, Executive’s estate) revoking such release.
7.Confidential Information; Non-Competition; Intellectual Property.
(a)Confidential Information.
(i) The Executive recognizes that the services to be performed by the Executive hereunder are special, unique and extraordinary and that, by reason of such employment with the Company, the Executive has acquired and will continue to acquire Confidential Information (as defined below) concerning the operation of the Company, the use or disclosure of which would cause the Company substantial loss and damages which could not be readily calculated and for which no remedy at law would be adequate.  Accordingly, the Executive agrees that the Executive will not (directly or indirectly) at any time, whether during or after the Executive’s employment hereunder, (A) knowingly use for an improper personal benefit any Confidential Information that the Executive may learn or has learned by reason of the Executive’s employment with the Company or (B) disclose any such Confidential Information to any Person except (1) in the performance of the Executive’s obligations to the Company hereunder, (2) as required by applicable law, (3) in connection with the enforcement of the Executive’s rights under this Agreement, (4) in connection with any disagreement, dispute or litigation (pending or threatened) between the Executive and the Company or (5) with the prior written consent of the Board.  As used herein, “Confidential Information” includes information with respect to the operation and performance of the Company and the Company Managed Funds, their investments, portfolio companies, products, services, facilities, product methods, research and development, trade secrets and other intellectual property, systems, patents and patent applications, procedures, manuals, confidential reports, product price lists, customer lists, financial information, business plans, prospects or opportunities (including, as applicable, all of the foregoing information regarding the Company’s and/or the Company Managed Funds’ past, current and prospective portfolio companies); provided, however, that such term shall not include any information that (x) is or becomes generally known or available other than as a result of a disclosure by the Executive or (y) is or becomes known or available to the Executive on a nonconfidential basis from a source (other than the Company) that, to the Executive’s knowledge, is not prohibited from disclosing such information to the Executive by a legal, contractual, fiduciary or other obligation to the Company.
(ii) The Executive confirms that all Confidential Information is the exclusive property of the Company.  All business records, papers and documents kept or made by the Executive while employed by the Company relating to the business of the Company shall be and remain the property of the Company at all times.  Upon the request of the Company at any time, the Executive shall promptly 
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deliver to the Company, and shall retain no copies of, any written materials, records and documents made by the Executive or coming into the Executive’s possession while employed by the Company concerning the business or affairs of the Company other than personal materials, records and documents (including notes and correspondence) of the Executive not containing proprietary information relating to such business or affairs.  Notwithstanding the foregoing, the Executive shall be permitted to retain copies of, or have access to, all such materials, records and documents relating to any disagreement, dispute or litigation (pending or threatened) between the Executive and the Company.
    (iii)    The U.S. Defend Trade Secrets Act of 2016 (“DTSA”) provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition, the DTSA provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

(b)Non-Competition; Non-Solicitation.  
(i) The Executive agrees that (A) during the term of Executive’s employment with the Company and, (B) during the 12-month period following the termination of Executive’s employment with the Company for any reason (the “Non-Competition Period”) within the Restricted Territory, the Executive shall not, directly or indirectly, engage or participate in, prepare or set up, assist or have any interest in any person, partnership, corporation, firm, association or other business organization, entity or enterprise, whether as an officer, employee, director, partner, stockholder, consultant or otherwise, that engages in the Company’s Business.  Notwithstanding the foregoing, (x) the Executive shall not be precluded from purchasing or owning, directly or beneficially, as a passive investment, two percent (2%) or less of any class of publicly traded securities if Executive does not actively participate in or control, directly or indirectly, any investment or other decisions with respect to such entity, and (y) if the Board terminates the Executive’s employment following the end of the Employment Period (for any reason other than a reason that would have constituted a Termination For Cause had such termination of employment occurred during the Employment Period), then solely for purposes of this subparagraph 7(b)(i), the 
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“Non-Competition Period” shall be the 3-month period following such termination of the Executive’s employment.
(ii) During  the Non-Competition Period, the Executive shall not, directly or indirectly:
(1)offer to hire, divert, entice away, solicit or in any other manner persuade, or attempt to do any of the foregoing (each, a “Solicitation”), for any person who is an officer, employee, consultant or board member of the Company or any Company Managed Fund to accept employment or an engagement with a third party or engage in a Solicitation with respect to any person or entity who is, or was, at any time within six months prior to the Solicitation, an officer, employee, agent or consultant of the Company or any Company Managed Fund to work for a third party engaged in the Company’s Business or to engage in any of the activities hereby prohibited with respect to the Executive under this subparagraph 7(b)(ii);
(2)solicit, divert, entice away or in any other manner persuade, or attempt to do any of the foregoing, on (1) any actual or prospective customer of or investor in the Company or any Company Managed Fund to become a customer of or investor in any third party engaged in the Company’s Business or (2) any customer or investor to cease doing business with the Company or any Company Managed Fund; or
(3)make any statements or perform any acts intended to advance the interest of any person engaged in or proposing to engage in the Company’s Business in any way that is intended to injure the interests of the Company or any Company Managed Fund.
(c)Intellectual Property.  The Executive agrees that during the term of the Executive’s employment with the Company, and for a period of 12 months following the termination of the Executive’s employment for any reason, any and all inventions, discoveries, innovations, writings, domain names, improvements, trade secrets, designs, drawings, business processes, secret processes and know-how, whether or not patentable or a copyright or trademark, which the Executive may create, conceive, develop or make, either alone or in conjunction with others and related or in any way connected with the Company, its strategic plans, products, processes, apparatus or business now or hereafter carried on by the Company (collectively, “Inventions”), shall be fully and promptly disclosed to the Company and shall be the sole and exclusive property of the Company (as the Board shall determine) as against the Executive or any of the Executive’s assignees.  Regardless of the status of the Executive’s employment by the Company, the Executive and the Executive’s heirs, assigns and representatives hereby assigns, or shall promptly assign, to the Company any and all right, title and interest in and to such 
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Inventions made during the term of the Executive’s employment by the Company.  There are no Inventions with respect to the Company conceived of, developed or made by the Executive before the Effective Date which have not been disclosed to and assigned to the Company.  The Executive further agrees that at the request of and without charge to the Company, but at the Company’s expense, the Executive shall execute a written assignment of any Inventions to the Company and shall assign to the Company any application for letters patent or for trademark registration made thereon, and to any common-law or statutory copyright therein; and the Executive shall do whatever may be necessary or desirable to enable the Company to secure any patent, trademark, copyright, or other property right therein in the United States of America and in any foreign country, and any division, renewal, continuation, or continuation in part thereof, or for any reissue of any patent issues thereon.  In the event that the Company is unable, after reasonable effort, and in any event after 10 business days, to secure the Executive’s signature on a written assignment to the Company of any application for letters patent or to any common-law statutory copyright or other property right therein, whether because of the Executive’s physical or mental incapacity or for any other reason whatsoever, the Executive irrevocably designates and appoints the Chief Executive Officer of the Company as Executive’s attorney-in-fact to act on Executive’s behalf to execute and file any such application and to do all other lawfully permitted acts to further the prosecution and issuance of such letters patent, copyright or trademark.
(d)Remedies.  
(i) The Executive acknowledges that a breach of any of the covenants contained in this paragraph 7 may result in material irreparable injury to the Company for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of such a breach, any payments or benefits remaining under the terms of this Agreement shall cease and the Company shall be entitled to obtain a temporary restraining order or a preliminary or permanent injunction restraining the Executive from engaging in activities prohibited by this paragraph 7 or such other relief as may be required to specifically enforce any of the covenants contained in this paragraph 7.
(ii) The period of time during which the restrictions set forth in this paragraph 7 will be in effect will be extended by the length of time during which the Executive is in breach of the terms of those provisions as determined by any court of competent jurisdiction on the Company’s application for injunctive relief.
(e)Communication of Contents of Agreement.  While employed by the Company and for twelve (12) months thereafter, the Executive shall communicate the contents of this paragraph 7 to any Person that the Executive intends to be employed by, associated with or represent.
(f)The Company.  For purposes of this paragraph 7, the Company shall include AGNC and any and all direct and indirect subsidiary, parent, affiliated, or related 
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companies of the Company for which the Executive worked or had responsibility at the time of termination of the Executive’s employment and at any time during the 2-year period prior to such termination. 
8.Non-Disparagement.  
(a)The Executive agrees that Executive shall not talk about or otherwise communicate to any third parties in a malicious, disparaging or defamatory manner regarding AGNC, the Company or any of their subsidiaries or any aspect of Executive’s employment with the Company.  Further, the Executive shall not make or authorize to be made any written or oral statement that may disparage or damage the reputation of AGNC, the Company or any of their subsidiaries.  The Company shall instruct its senior executives and members of the Board not to talk about or otherwise communicate to any third parties outside of AGNC, the Company or any of their subsidiaries in a malicious, disparaging or defamatory manner regarding the Executive or any aspect of Executive’s employment with the Company, and the Company shall not make or authorize to be made any written or oral statement to any third parties outside of AGNC, the Company or any of their subsidiaries that may disparage or damage the reputation of the Executive. 
(b)Notwithstanding anything in this Agreement to the contrary, nothing in the Agreement prohibits or will be interpreted or construed to prohibit Executive from reporting any possible violation of federal law or regulation to any governmental agency or entity, including but not limited to the U.S. Department of Justice or the Securities and Exchange Commission, or providing testimony to or communicating with such agency or entity in the course of its investigation, or from making any other disclosures that are protected under the whistleblower provisions of federal law and regulation.  Any such reports, testimony or disclosures do not require Executive to provide notice or receive the authorization or consent of the Company or the Board.  
9.Survival.  Subject to any limits on applicability contained therein, paragraphs 6, 7, 8, 9, 10, 11, 21 and 22 hereof shall survive and continue in full force in accordance with their terms notwithstanding any termination of the Employment Period.
10.Taxes.  AGNC, the Company or any of their subsidiaries shall withhold from all payments due to the Executive all applicable taxes (federal, state or other) that it is required to withhold therefrom unless the Executive has otherwise paid (or made other arrangements satisfactory) to AGNC, the Company or any of their subsidiaries, as applicable, the amount of such taxes.  Notwithstanding any other provision of this Agreement, none of AGNC, the Company or any of their subsidiaries shall be obligated to guarantee any particular tax result for the Executive with respect to any payment or benefit provided to the Executive by AGNC, the Company or any of their subsidiaries (whether pursuant to this Agreement or otherwise), and the Executive shall be responsible for any taxes imposed on the Executive with respect to any such payment.  For the avoidance of doubt, in no event shall any provision of this Agreement (including, without limitation, paragraph 21 or 22) be construed to require AGNC, the Company or any of their subsidiaries to provide any gross-up for the tax consequences of any provision 
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under this Agreement or any payment or benefit provided to the Executive by AGNC, the Company or any of their subsidiaries (whether pursuant to this Agreement or otherwise).
11.No Mitigation or Offset.  The provisions of this Agreement are not intended to, nor shall they be construed to, require that the Executive mitigate the amount of any payment provided for in this Agreement by seeking or accepting other employment, nor shall the amount of any payment provided for in this Agreement be reduced by any compensation earned by the Executive as the result of employment by another employer or otherwise.  Without limitation of the foregoing, the Company’s obligations to make the payments to the Executive required under this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set off, counterclaim, recoupment, defense or other claim, right or action that the Company may have against the Executive.
12.Assignability.  The obligations of the Executive hereunder are personal and may not be assigned or delegated by the Executive or transferred in any manner whatsoever, nor are such obligations subject to involuntary alienation, assignment or transfer.  The Company shall have the right to assign this Agreement and to delegate all rights, duties and obligations hereunder as provided in paragraph 15.
13.Notices.  All notices and all other communications provided for in the Agreement shall be in writing and addressed (a) if to the Company, (i) at its principal office address or such other address as it may have designated by written notice to the Executive for purposes hereof, directed to the attention of the Board with a copy to the Chief Executive Officer of the Company or (ii) to the company electronic mail address of the Chief Executive Officer of the Company and (b) if to the Executive, (i) at the Executive’s residence address on the records of the Company or to such other address as the Executive may have designated to the Company in writing for purposes hereof or (ii) to the Executive’s company electronic mail address.  Each such notice or other communication shall be deemed to have been duly given when (A) delivered or mailed by United States registered mail, return receipt requested, postage prepaid or (B) when electronic evidence of electronic mail transmission is received, except that any notice of change of address shall be effective only upon receipt.
14.Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.
15.Successors; Binding Agreement.  This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributes, devisees and legatees.  If the Executive should die while any amounts would be payable to the Executive hereunder if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee or other designee or, if there be no such designee, to the Executive’s estate.
16.Amendments and Waivers.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and 
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signed by the Executive and the Board.  No waiver by either party hereto at any time of any breach by the Executive or the Company of, or in compliance with, any condition or provision of this Agreement to be performed by the Executive or the Company, as applicable, shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
17.Complete Agreement.  (a) This Agreement embodies the complete agreement and understanding between the parties with respect to the subject matter hereof and (b) this Agreement supersedes and preempts any prior understandings, agreements or representations by or between the Executive and AGNC, the Company and any of their subsidiaries, written or oral (including, without limitation, the Prior Agreement), which may have related to the subject matter hereof in any way.
18.Counterparts.  This Agreement may be executed in one or more counterparts (including electronically transmitted counterparts), each of which shall be deemed to be an original, but all of which together will constitute one and the same instrument.
19.Choice of Law.  This Agreement shall be governed by, and construed in accordance with, the internal, substantive laws of the State of Maryland.  The Company and the Executive agree that the state and federal courts located in the State of Maryland shall have jurisdiction in any action, suit or proceeding based on or arising out of this Agreement and the Company and the Executive hereby: (a) submit to the personal jurisdiction of such courts, (b) consent to service of process in connection with any action, suit or proceeding and (c) waive any other requirement (whether imposed by statute, rule of court or otherwise) with respect to personal jurisdiction, venue or service of process.
20.Indemnification and D&O Insurance.  The Executive will be provided indemnification and mandatory advancement of expenses to the maximum extent permitted by AGNC’s, the Company’s and their subsidiaries’ and affiliates’ Articles of Incorporation or Bylaws, with such indemnification to be on terms determined by the Board or the applicable board of directors or managers, or any of their committees, but on terms no less favorable than provided to any other executive officer or director of such entities.  AGNC and the Company shall maintain customary directors and officers insurance coverage for the Executive’s benefit on the same basis as such coverage is maintained for the benefit of AGNC’s and the Company’s other executive officers and directors (including former executive officers and directors).
21.Section 409A.
(a)The parties intend for this Agreement to either comply with, or be exempt from, Section 409A, and all provisions of this Agreement shall be interpreted and applied accordingly.  If any compensation or benefits provided by this Agreement may result in the application of Section 409A, the Company shall, subject to the Executive’s prior written approval, modify the Agreement in the least restrictive manner necessary in order to exclude such compensation from the definition of “deferral of compensation” within the meaning of Section 409A or in order to comply with the provisions of Section 409A and without any diminution in the value of the payments or benefits to the Executive.  
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Each payment or reimbursement under this Agreement shall be considered a separate payment and not one of a series of payments for purposes of Section 409A.  Any payments or reimbursements of any expenses provided for under this Agreement shall be made in accordance with Treas. Reg. §1.409A-3(i)(1)(iv).
(b)To the extent that any payment or benefit pursuant to this Agreement constitutes a “deferral of compensation” subject to Section 409A (after taking into account to the maximum extent possible any applicable exemptions) (a “409A Payment”) and is treated as payable upon Separation from Service, then, if on the date of the Executive’s Separation from Service, the Executive is a Specified Employee, to the extent required for the Executive not to incur additional taxes pursuant to Section 409A, no such 409A Payment shall be made to the Executive prior to the earlier of (i) six (6) months after the Executive’s Separation from Service or (ii) the date of the Executive’s death.  Should this paragraph 21 result in payments or benefits to the Executive at a later time than otherwise would have been made under this Agreement, on the first day any such payments or benefits may be made without incurring additional tax pursuant to Section 409A, the Company shall make such payments and provide such benefits as provided for in this Agreement.  For purposes of this paragraph 21, the terms “Specified Employee” and “Separation from Service” shall have the meanings ascribed to them in Section 409A.  The parties intend that the phrase “termination of employment” and words and phrases of similar import used in this Agreement means a Separation From Service with the Company and its subsidiaries.
22.Section 280G.  In the event that any payments, distributions, benefits or entitlements of any type payable or provided by AGNC, the Company or any of their subsidiaries to the Executive, whether or not payable in connection with this Agreement or upon a termination of employment (“Payments”), (i) constitute “parachute payments” within the meaning of Section 280G, and (ii) but for this paragraph 22 would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Payments shall be reduced to such lesser amount (the “Reduced Amount”) that would result in no portion of the Payments being subject to the Excise Tax; provided, however, that such Payments shall not be so reduced if a nationally recognized accounting firm selected by the Board in good faith (the “Accountants”) determines that without such reduction, the Executive would be entitled to receive and retain, on a net after-tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code, federal, state and local income taxes, social security and Medicare taxes and all other applicable taxes, determined by applying the highest marginal rate under Section 1 of the Code and under state and local tax laws which applied (or is likely to apply) to the Executive’s taxable income for the tax year in which the transaction which causes the application of Section 280G occurs, or such other rate(s) as the Accountants determine to be likely to apply to the Executive in the relevant tax year(s) in which any of the Payments are expected to be made), an amount that is greater than the amount, on a net after-tax basis, that the Executive would be entitled to retain upon receipt of the Reduced Amount.  Unless the Board and the Executive otherwise agree in writing, any determination required under this paragraph 22 shall be made in good faith by the Accountants in a timely manner and shall be binding on the parties absent manifest error.  In the event of a reduction of Payments hereunder, the Payments 
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shall be reduced in the order determined by the Accountants that results in the greatest economic benefit to the Executive in a manner that would not result in subjecting the Executive to additional taxation under Section 409A.  For purposes of making the calculations required by this paragraph 22, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code and other applicable legal authority.  The Board and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably require in order to make a determination under this paragraph 22, and the Company shall bear the cost of all fees charged by the Accountants in connection with any calculations contemplated by this paragraph 22.  To the extent requested by the Executive, the Company shall cooperate with the Executive in good faith in valuing, and the Accountants shall value, services to be provided by the Executive (including the Executive refraining from performing services pursuant to a covenant not to compete) before, on or after the date of the transaction which causes the application of Section 280G such that Payments in respect of such services may be considered to be “reasonable compensation” within the meaning of Section 280G.  Notwithstanding the foregoing, if the transaction which causes the application of Section 280G occurs at a time during which Section 2(a)(i) of Q&A-6 of Treasury Regulation Section 1.280G would apply to the Executive, upon the request of the Executive, the Company shall use reasonable efforts to obtain the vote of equity holders described in Q&A-7 of Treasury Regulation Section 1.280G.
[SIGNATURES ON FOLLOWING PAGE]

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

AGNC MORTGAGE MANAGEMENT, LLC

									
	By:	/s/ Peter Federico	
	Name:	Peter Federico	
	Title:	President and Chief Operating Officer	
			

									
	EXECUTIVE	
			
	/s/ Bernice Bell	
	Bernice Bell

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