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EXHIBIT 10.3    
    

        FORM OF TAX SHARING AGREEMENT, dated as of                        
(the "Agreement"), between Kerr-McGee Corporation, a Delaware corporation ("Distributing")
and Tronox Incorporated ("Tronox"), a Delaware corporation. To the extent not defined herein, all defined terms shall have the same meaning as in the Master Separation Agreement (as hereinafter
defined). 

Introduction

        WHEREAS,
as of the date hereof, Distributing is the common parent of an affiliated group of domestic corporations, including Tronox, which has elected to file consolidated federal income
tax returns; 

        WHEREAS,
the board of directors of Distributing has determined that it would be in the best interests of Distributing and its shareholders to separate the Tronox Business (as hereinafter
defined) from Distributing; 

        WHEREAS,
the boards of directors of Distributing and Kerr-McGee Worldwide Corporation have determined to contribute to Tronox Worldwide LLC certain entities engaged in the
Tronox Business and to contribute Tronox Worldwide LLC to Tronox (the "Contribution"); 

        WHEREAS,
the board of directors of Distributing expects to distribute (the "Distribution") all the outstanding shares of Class B common stock of Tronox to the shareholders of
Distributing; 

        WHEREAS,
prior to the Distribution, Tronox will issue to the public shares of Class A common stock of Tronox which, when issued, will constitute all of the outstanding shares of
Tronox's Class A common stock (the "IPO"); 

        WHEREAS,
Distributing and Tronox intend that the Contribution qualify as a tax-free transfer under Sections 368(a)(1)(D) of the Internal Revenue Code of 1986, as amended (the
"Code"), and the Distribution qualify as a pro rata or non-pro rata tax-free distribution under Sections 355 and 368(a)(1)(D) of the Code; 

        WHEREAS,
it is appropriate and desirable to set forth the principles and responsibilities of the parties to this Agreement regarding (i) future adjustments with respect to Taxes,
Tax Contests and other related Tax matters and (ii) current Tax liabilities that arise as a result of the activities of the parties prior to the IPO and restructuring activities undertaken to
implement the separation and Distribution; 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereby agree as follows: 

ARTICLE
I 

DEFINITIONS

        The
following terms shall have the following meanings (such meanings to apply equally to both the singular and the plural forms of the terms defined). All section references are to this
Agreement unless otherwise stated. 

        "Claims Court Litigation" means the litigation that is currently pending in the United States Court of Federal Claims, docket number
05-5T relating to the question of capitalization versus deductibility of certain environmental clean-up expenditures with respect to the contamination of the refining sites in
Cushing and Cleveland, Oklahoma. 

        "Claims Court Related Tax Adjustment" means, with respect to any Pre-Deconsolidation Period, and as computed separately for
each Tax, the net increase in each such Tax equal to the sum of all adjustments made after the Deconsolidation Date with respect to each such Tax for each such Pre-Deconsolidation Period
that are made pursuant to a Final Determination in a Tax Contest involving the same or similar factual and legal issues that are at issue in the Claims Court Litigation. 

 

        "Claims Court Related Tax Benefit" means (i) 100% of any Tax refund received in the Claims Court Litigation or any Tax Contest
related to a Pre-Deconsolidation Period involving the same or similar factual and legal issues that are at issue in the Claims Court Litigation and (ii) any deduction, amortization,
exclusion from income, or other allowance (including a loss or reduced gain recognized upon a sale of an asset) that actually reduces in cash the amount of Tax that a member of the Tronox Group would
have been required to pay in a Post-Deconsolidation Period (or actually increases in cash the amount of any Tax refund to which a member of the Tronox Group would have been entitled in a
Post-Deconsolidation Period) in the absence of any basis increase resulting from a Final Determination in the Claims Court Litigation or in a Tax Contest related to a
Pre-Deconsolidation Period involving the same or similar factual and legal issues that are at issue in the Claims Court Litigation. 

        "Code" means the Internal Revenue of Code of 1986, as amended. 

        "Combined Tax" means any income or franchise Tax (whether measured by income or capital) payable to any state, local or foreign taxing
jurisdiction in which any member of the Tronox Group has filed or will file a Return with a member of the Distributing Group on an affiliated, consolidated, combined or unitary basis with
respect to such Tax. 

        "Combined Tax Return" means any Return with respect to a Combined Tax. 

        "Controlling Party" means, except as provided for in Section 4.06 hereof, Distributing or any other member of the Distributing
Group, or Tronox or any other member of the Tronox Group, as the case may be, that filed or, if no Return has been filed, was required to file, a Return that is subject to a Tax Contest, or any
successor and/or assign of any of the foregoing, provided that any Combined Tax Return filed by Kerr-McGee Worldwide Corporation with a
Taxing Authority in Mississippi shall be deemed to be a Return filed by Tronox and therefore Tronox shall be the Controlling Party with respect to any Tax Contest related to any such Return. For the
avoidance of doubt, with the exception of Returns filed in Mississippi and subject to Section 4.06 hereof, the company that actually filed any Federal Tax Return or Combined Tax Return (or any
successor or assign of such company) shall be the Controlling Party. 

        "Deconsolidation Date" means, for purposes of this Agreement, the first date on which Distributing and Tronox are no longer permitted to
file Returns on a consolidated or combined basis, determined on a Tax jurisdiction by Tax jurisdiction basis. 

        "Distributing Business" means the businesses conducted by Distributing and its subsidiaries other than the Tronox Business. 

        "Distributing Consolidated Group" means Distributing and each direct and indirect subsidiary, including members of the Tronox Group, that
is eligible to join Distributing or any other member of the Distributing Group in the filing of a consolidated Federal Tax Return or a Combined Tax Return. 

        "Distributing Group" means, at any time, Distributing and each of its direct and indirect subsidiaries other than those subsidiaries that
are members of the Tronox Group. 

        "Distributing Tax Adjustment" means, with respect to any taxable period or portion thereof, and as computed separately for each Tax, the
net increase in each such Tax equal to the sum of all adjustments made pursuant to a Final Determination after the Deconsolidation Date with respect to each such Tax for each such taxable period or
portion thereof that are attributable to the Distributing Business; provided, however, that any
adjustment comprising a Restructuring Adjustment shall not be considered in determining the amount of any Distributing Tax Adjustment. 

        "Distributing Tax Benefit" means, with respect to any taxable period or portion thereof, and as computed separately for each Federal Tax
and Combined Tax, the net decrease in each Tax equal to the sum of all adjustments made pursuant to a Final Determination after the Deconsolidation Date with respect to each such Tax for each such
taxable period or portion thereof that are attributable to the Distributing Business; provided, however, that the amount of any Distributing Tax Benefit
shall not exceed 

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the
amount that the actual Tax liability for the Tronox Group for the relevant taxable period is actually reduced by the adjustments made pursuant to such Final Determination;  provided further, however,
that any adjustment comprising a Restructuring Adjustment shall not be considered in determining the amount of any
Distributing Tax Benefit. For purposes of the foregoing, if an adjustment that would otherwise constitute a Distributing Tax Benefit is not considered a Distributing Tax Benefit because the Tax
liability of the Tronox Group is not actually reduced as a result of such adjustment, such adjustment shall be carried-forward and shall constitute a Distributing Tax Benefit at the time (and to the
extent) that the Tax liability of the Tronox Group is actually reduced as a result of such prior adjustment. For purposes of determining when an adjustment described in the preceding sentence actually
reduces the Tax liability of the Tronox Group, the Tronox Group shall be deemed to use all Tax Assets of the Tronox Group prior to such adjustment. 

        "Distribution Date" means the date on which the Distribution is effected. 

        "Federal Tax" means any Tax imposed under Subtitle A of the Code with respect to which any member of the Tronox Group has filed or will
file a consolidated Return with a member of the Distributing Group. 

        "Federal Tax Return" means any Return with respect to a Federal Tax. 

        "Final Determination" means (i) a decision, judgment, decree or other order by any court of competent jurisdiction, which has
become final and is either no longer subject to appeal or for which a determination not to appeal has been made, (ii) a closing agreement made under Section 7121 of the Code or any
comparable provision of state, local or foreign law, (iii) a final disposition by any Taxing Authority of a claim for refund or (iv) any other written agreement relating to an adjustment
between any Taxing Authority and any Controlling Party the execution of which is final and prohibits such Taxing Authority or the Controlling Party from seeking any further legal or administrative
remedies with respect to such adjustment. 

        "Group" means the Distributing Group or the Tronox Group, as the context requires. 

        "Independent Third Party" means a nationally recognized law firm or any of the following firms or their successors: Ernst & Young,
KPMG, Deloitte & Touche and PricewaterhouseCoopers. 

        "Interested Party" means, except as provided in Section 4.06 hereof, Distributing or Tronox (including any successor and/or assign
of any of the foregoing), as the case may be, to the extent (i) such person or a member of such person's Group is not a Controlling Party with respect to a Tax Contest and (ii) such
person or a member of such person's Group (A) may be liable for, or required to make, any indemnity payment, reimbursement, tax sharing payment or other payment pursuant to this Agreement with
respect to such Tax Contest or (B) may be entitled to receive any indemnity payment, reimbursement, tax sharing payment or other payment pursuant to this Agreement with respect to such Tax
Contest. 

        "Master Separation Agreement" means the Master Separation Agreement, dated as of            , among Distributing,
Kerr-McGee Worldwide Corporation and Tronox. 

        "Post-Deconsolidation Period" shall mean (i) a taxable period that begins after the Deconsolidation Date and
(ii) the portion beginning after the Deconsolidation Date of any taxable period that includes (but does not end on) the Deconsolidation Date. 

        "Pre-Deconsolidation Period" means (i) any taxable period that ends on or before the close of the Deconsolidation Date
and (ii) the portion ending on the close of the Deconsolidation Date of any taxable period that includes (but does not end on) the Deconsolidation Date. 

        "Restructuring Adjustment" means, with respect to any taxable period or portion thereof, and as computed separately for each Tax, the net
increase in each such Tax equal to the sum of all adjustments made pursuant to a Final Determination with respect to each such Tax for each such taxable period or portion thereof that are attributable
to any Restructuring Transaction. 

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        "Restructuring Transaction" means any transaction undertaken to effectuate the separation of Distributing's existing businesses into two
independent businesses other than the Distribution. 

        "Restructuring Tax" means any Tax incurred as a result of any Restructuring Transaction which in the judgment of the parties is currently
required to be taken into account in determining the tax liability of any member of the Distributing Group or Tronox Group for any Pre-Deconsolidation Period. 

        "Return" means any report of Taxes due, any claims for refund of Taxes paid, any information return with respect to Taxes, or any other
similar report, statement, declaration, or document required to be filed under the Code or other Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing,
and including any amendments or supplements to any of the foregoing. 

        "Tax" means any income, gross income, gross receipts, profits, capital, capital stock, franchise, withholding, payroll, social security,
workers compensation, unemployment, disability, real property, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added,
alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or political subdivision
thereof, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

        "Tax Asset" means any net operating loss, net capital loss, investment tax credit, foreign tax credit, charitable deduction or any other
loss, credit or tax attribute that could be carried forward or back to reduce any Tax liability (including, without limitation, deductions and credits relating to alternative minimum taxes). 

        "Taxing Authority" means, with respect to any Tax, the governmental entity or political subdivision thereof that imposes such Tax, and the
agency (if any) charged with the collection of such Tax for such entity or subdivision. 

        "Tax Contest" means an audit, review, examination, assessment, deficiency or any other administrative or judicial proceeding with the
purpose or effect of redetermining any Taxes (including any administrative or judicial review of any claim for refund). 

        "Tax Packages" mean one or more packages of information that are (i) reasonably necessary for the purpose of preparing Returns of
the Distributing Consolidated Group with respect to any tax period in which the information is relevant, and (ii) completed in all material respects in accordance with the standards that
Distributing has established for its subsidiaries. 

        "Tiwest JV Entities" means the Tiwest Joint Venture, Tiwest Sales Pty. Ltd. and Tiwest Pty. Ltd. 

        "Transition Services Agreement" means the Transition Services Agreement, dated as of            , among Distributing,
Kerr-McGee Worldwide Corporation and Tronox. 

        "Tronox Business" means the business of producing and marketing inorganic industrial chemicals (including titanium dioxide pigment) and
heavy minerals conducted by the Tronox Group, together with the businesses previously conducted by members of the Tronox Group. 

        "Tronox Combined Tax Liability" means, with respect to any taxable year, except with respect to any Combined Tax Return filed in a
Combined Add-Up State (as defined below) an amount determined, on a Combined Tax Return by Combined Tax Return basis, by dividing the total Combined Tax liability reflected on such Return
into two segments in proportion to the Distributing Group's and the Tronox Group's relative contribution, if any, to the apportionment factor relevant to such Combined Tax liability. For purposes of
the foregoing, the Distributing Group's and the Tronox Group's relative contribution, if any, to an apportionment factor shall be determined by Distributing in good faith and in a manner consistent
with the past practices of Distributing and Tronox that have been used in determining apportionment factors. In the case of any jurisdiction in which Combined Taxes are calculated by first determining
the taxable income 

4

 

(or
loss) of each member of the combined group and then adding each separate company calculation to determine the group's total Combined Tax liability (a "Combined Add-Up State"), the
amount of the Tronox Combined Tax Liability with respect to such jurisdiction shall be calculated based on the product of the Tronox Group's income or loss and the separate apportionment factors
(property, payroll and sales) for each member of the Tronox Group, unless such amount is determined pursuant to another allocation method mandated by a specific jurisdiction. For purposes of the
preceding sentence, the apportionment factors shall be determined for each taxable period. 

        "Tronox Federal Tax Liability" means, with respect to any taxable year, the sum of the Tronox Group's Federal Tax liability and any
interest, penalties and other additions to Tax for such taxable year, computed as if the Tronox Group were not and never were part of the Distributing Consolidated Group, but rather were a separate
affiliated group of corporations filing a consolidated United States federal income tax return pursuant to Section 1501 of the Code; provided,  however,
 that transactions between members of the Tronox Group and members of the Distributing Group shall, so long as Tronox is a member of the
Distributing Consolidated Group, be reflected in accordance with the consolidated return regulations governing intercompany transactions. Such computation shall be made (i) without regard to
the income, deductions (including net operating loss and capital loss deductions) and credits in any year of any member of the Distributing Group, (ii) by taking into account any Tax Asset of
the Tronox Group in accordance with Section 3.02(d) hereof, (iii) with regard to net operating loss and capital loss carryforwards and carrybacks and minimum tax credits from earlier
years of the Tronox Group, but without regard to any such carryforwards from a Tax period (or portion thereof) ending on or before the date hereof and arising solely due to treating the Tronox Group
as if it were never part of the Distributing Consolidated Group, (iv) as though the highest rate of tax specified in Section 11(b) of the Code were the only rate set forth in that
section of the Code, (v) reflecting positions, elections and accounting methods used by Distributing in preparing the relevant Federal Tax Return for the Distributing Consolidated Group and
(vi) as though Tronox Worldwide LLC were a corporation rather than a disregarded entity for all taxable periods. For purposes of the foregoing, the Tronox Federal Tax Liability shall not
include any Restructuring Taxes. 

        "Tronox Group" means (i) prior to the Contribution, (A) Tronox Worldwide LLC and each of its direct and indirect
subsidiaries, (B) KM (Luxembourg) Holdings Sarl and its direct and indirect subsidiaries, (C) Kerr-McGee B.V. and its subsidiary, (D) Kerr-McGee Finance
(Curacao) N.V., (E) KM Denmark International ApS and its direct and indirect subsidiaries and (F) the Tiwest JV Entities and (ii) after the Contribution, Tronox and each of its
direct and indirect subsidiaries and the Tiwest JV Entities. 

        "Tronox Tax Adjustment" means, with respect to any taxable period or portion thereof, and as computed separately for each Tax, the net
increase in each such Tax equal to the sum of all adjustments made pursuant to a Final Determination after the Deconsolidation Date with respect to each such Tax for each such taxable period or
portion thereof that are attributable to the Tronox Business; provided, however, that any adjustment
comprising a Restructuring Adjustment shall not be considered in determining the amount of any Tronox Tax Adjustment. 

        "Tronox Tax Benefit" means, with respect to any taxable period or portion thereof, and as computed separately for each Federal Tax and
Combined Tax, the net decrease in each such Tax equal to the sum of all adjustments made pursuant to a Final Determination after the Deconsolidation Date with respect to each such Tax for each such
taxable period or portion thereof that are attributable to the Tronox Business; provided, however, that the amount of any Tronox Tax Benefit shall not
exceed the amount that the actual Tax liability for the Distributing Consolidated Group for the relevant taxable period is actually reduced by the adjustments made pursuant to such Final
Determination; provided further, however, that any adjustment comprising a Restructuring Adjustment shall not be considered in determining the amount of
any Tronox Tax Benefit. For purposes of the foregoing, if an adjustment that would otherwise constitute a Tronox Tax Benefit is not considered a Tronox Tax Benefit because the Tax liability of the
Distributing Consolidated Group is not actually reduced as a result of such adjustment, such adjustment shall be carried-forward and shall constitute a Tronox Tax Benefit at the time (and to the
extent) that the Tax liability of the Distributing 

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Consolidated
Group is actually reduced as a result of such prior adjustment. For purposes of determining when an adjustment described in the preceding sentence actually reduces the Tax liability of
the Distributing Consolidated Group, the Distributing Consolidated Group shall be deemed to use all Tax Assets of the Distributing Group prior to such adjustment. 

ARTICLE
II 

ADMINISTRATIVE
AND COMPLIANCE MATTERS 

SECTION
2.01    Sole Tax Sharing Agreement.    Any and all existing tax sharing agreements or arrangements, written or unwritten,
between any member of the Distributing Group and any member of the Tronox Group shall be terminated as of the date of this Agreement. As of the date of this Agreement, neither the members of the
Distributing Group nor the members of the Tronox Group shall have any further rights or liabilities under any such pre-existing tax sharing agreement or arrangement, and this Agreement
shall be the sole tax sharing agreement or arrangement between the members of the Distributing Group and the members of the Tronox Group. 

SECTION
2.02    Designation as Agent.    Each member of the Tronox Group hereby irrevocably authorizes and designates Distributing
as its agent, coordinator and administrator for the purpose of taking any and all actions (including the execution of waivers of applicable statutes of limitations) necessary or incidental to
(i) the filing of any Federal Tax or Combined Tax Return (including any amended Return), (ii) the claiming of any refund, credit or offset of Federal Tax or Combined Tax (even where an
item or Tax Asset giving rise to any such refund, credit or offset arises in a Post-Deconsolidation Period), (iii) the control of any proceeding and (iv) the making of any
payments to, or collecting refunds from, any Taxing Authority, in each case relating only to Federal Taxes or Combined Tax for any Pre-Deconsolidation Period. Distributing covenants to
Tronox that it shall be responsible to see that all such administrative matters relating thereto shall be handled promptly and appropriately. 

SECTION
2.03    Pre-Deconsolidation Period Returns.    

a)    Preparation of Returns.    Distributing shall prepare, in accordance with applicable law, the Federal Tax Return and Combined
Tax Returns of the Distributing Consolidated Group for all Pre-Deconsolidation Periods. Distributing shall have the right with respect to such Returns to determine (i) the manner in
which such Returns shall be prepared and filed, including, without limitation, the manner in which any item of income, gain, loss, deduction or credit shall be reported, (ii) whether any
extensions should be requested and (iii) the elections that will be made by any member of the Distributing Group or the Tronox Group. Distributing shall consult with representatives of Tronox
in exercising its rights set forth in the preceding sentence. Any Return with respect to a Pre-Deconsolidation Period, other than the Federal Tax Return and Combined Tax Returns, shall be
prepared by the party required to file such Return under applicable law. 

b)    Delivery of Tax Packages.    No later than July 15, 2006, Tronox shall prepare and deliver to Distributing Tax Packages
that include information of the Tronox Group for any taxable period in which a member of the Tronox Group files Federal Tax Returns or Combined Tax Returns with a member of the Distributing Group,  provided that if any Combined Tax Return is required to be filed (taking into account available extensions) on or prior to September 15, 2006,
Tronox shall prepare and deliver Tax Packages to Distributing no later than 60 days prior to the due date for filing such Return. 

c)    Allocation.    Distributing may, at its option, elect and Tronox shall join Distributing (if necessary) in electing to ratably
allocate items (other than extraordinary items) of the Tronox Group in accordance with the relevant provisions of Treasury Regulation Section 1.1502-76 and any comparable provision
of state, local or foreign law. If Distributing exercises its option to make such an election, each member of the Tronox Group shall provide a statement stating its consent to such election as
required under applicable regulations. 

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d)    Post-Deconsolidation Period Returns of the Tronox Group.    Subject to the provisions of the Transition Services
Agreement, Tronox shall be solely responsible for the preparation and filing of the Returns of the Tronox Group for all Post-Deconsolidation Periods that begin after the Deconsolidation
Date. 

SECTION
2.04    Cooperation and exchange of information.    In addition to Tronox's obligation pursuant to Section 2.03(b)
hereof, Distributing, on the one hand, and Tronox, on the other, will provide each other with such cooperation and information as either of them reasonably may request of the other in
(i) filing any Return, amended return or claim for refund, (ii) determining a liability for Taxes or a right to a refund of Taxes or (iii) participating in or conducting any audit
or other proceeding in respect of Taxes. Such cooperation and information shall include providing copies of relevant Returns or portions thereof, together with accompanying schedules and related work
papers and documents relating to rulings or other determinations by Tax Authorities. Each party shall make its employees available on a mutually convenient basis to provide explanations of any
documents or information provided hereunder. Any information obtained under this Section 2.04 shall be kept confidential, except as may be otherwise necessary in connection with the filing of
returns or claims for refund or in conducting an audit or other proceeding. Distributing shall retain (or cause to be retained) all books and records with respect to Tax matters pertinent to any
member of the Tronox Group relating to any Pre-Deconsolidation Period until the expiration of the relevant statutory period of limitations for the assessment of Tax, provided that
Distributing shall consult with Tronox prior to destroying any such books and records and shall offer Tronox the opportunity to retain any such books and records after such date. 

ARTICLE
III 

TAX
SHARING 

SECTION
3.01    Intentionally Omitted.    

SECTION
3.02    Tax Sharing.    

a)    Deconsolidation Payment.    Prior to the Deconsolidation Date, Tronox shall make a distribution to Distributing (the
"Estimated Tax Sharing Payment") in an amount equal to the sum of the Tronox Federal Tax Liability and the Tronox Combined Tax Liability for the portion of any taxable period that includes but does
not, with respect to Distributing or any other member of the Distributing Group, end on the Deconsolidation Date, in both cases as estimated by Distributing in its sole, good-faith
discretion, less any prior tax sharing payments made by any member of the Tronox Group to any member of the Distributing Group in respect of estimated Tax payments made for such taxable period. 

b)    Pro Forma Returns.    On the date that is five (5) business days prior to the due date for the Distributing
Consolidated Group's 2005 consolidated federal income tax return, including extensions, Distributing shall deliver to Tronox a pro forma federal income tax return (the "2005 Pro Forma Federal Tax
Return") of the Tronox Group reflecting the Tronox Federal Tax Liability for the portion of such taxable year in which members of the Tronox Group were included in the Distributing Consolidated Group.
On the date that is five (5) business days prior to the due date for each Combined Tax Return, including extensions, for any taxable period that includes, but does not, with respect to
Distributing or any member of the Distributing Group, end on the Deconsolidation Date, Distributing shall deliver to Tronox the relevant pro forma Combined Tax Return (each a "Pro Forma Combined Tax
Return" and together with the 2005 Pro Forma Federal Tax Return, the "Pro Forma Returns") of the Tronox Group reflecting the relevant Tronox Combined Tax Liability for the portion of such taxable
period in which members of the Tronox Group were included in the Distributing Consolidated Group with respect to such Combined Tax. Distributing shall prepare the Pro Forma Returns taking into account
elections, methods of accounting and positions with respect to specific items that are consistent with those to be made by Distributing for purposes of the Federal Tax Returns and Combined Tax
Returns. 

c)    True-Up Payment.    On or before the later of (i) the date Distributing (or whichever member of the
Distributing Group or the Tronox Group is responsible for filing such Return, if not Distributing) files its 

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last
Combined Tax Return for each taxable period that includes but, with respect to Distributing or any other member of the Distributing Group, does not end on the Deconsolidation Date or
(ii) the date Distributing files its Federal Tax Return for the 2005 taxable year, Tronox shall pay to Distributing, or Distributing shall pay to Tronox, as appropriate, an amount equal to the
difference, if any, between (A) the aggregate of the Tronox Federal Tax Liability and the Tronox Combined Tax Liabilities reflected on the Pro Forma Returns and (B) the Estimated Tax
Sharing Payment. 

d)    Tax Assets.    If a Pro Forma Return reflects a Tax Asset of a member of the Tronox Group that may under applicable law be
used to reduce a Federal Tax or a Combined Tax of the Distributing Group for any Pre-Deconsolidation Period, Distributing shall pay to Tronox an amount equal to the actual Tax savings
produced by such Tronox Group Tax Asset at the time such Tax savings is realized by the Distributing Group. The amount of any such Tax savings shall be an amount of any refund actually received from a
Taxing Authority or the reduction in Taxes payable to a Taxing Authority as compared to the Taxes that would have been payable to a Taxing Authority in the absence of such Tronox Group Tax Asset. 

SECTION
3.03    Audit Payments.    

a)    Except
as provided in Section 3.03(c) hereof, Tronox shall be liable for, and shall indemnify and hold harmless, any member of the Distributing Group against any and all Tronox
Tax Adjustments for any Pre-Deconsolidation Period with respect to any Return of any member of the Distributing Group or the Tronox Group. Except as provided in Section 3.03(c)
hereof, Tronox shall be
entitled to receive, and shall be paid by Distributing, the amount of any Tronox Tax Benefit for any Pre-Deconsolidation Period with respect to any Return of any member of the Distributing
Group. 

b)    Distributing
shall be liable for, and shall indemnify and hold harmless, any member of the Tronox Group against any and all Distributing Tax Adjustments for any
Pre-Deconsolidation Period with respect to any Return of any member of the Distributing Group or the Tronox Group. Distributing shall be entitled to receive, and shall be paid by Tronox,
the amount of any Distributing Tax Benefits for any Pre-Deconsolidation Period with respect to any Return of any member of the Tronox Group. 

c)    Notwithstanding
Section 3.03(a) hereof, Distributing shall be liable for, and shall indemnify and hold harmless, any member of the Tronox Group against any and all Claims Court
Related Tax Adjustments. Notwithstanding Section 3.03(a) hereof, Distributing shall be entitled to receive, and, to the extent reflected on any Return of any member of the Tronox Group, shall
be paid by Tronox, the amount of any Claims Court Related Tax Benefits. For purposes of the preceding sentence as it applies to a Claims Court Related Tax Benefit described in clause (ii) of
the definition thereof, Tronox and the other members of the Tronox Group shall be deemed to use all other deductions, amortizations, exclusions from income or other allowances (to the extent that such
deductions, amortizations, exclusions from income or other allowances are entitled to be used under applicable law) prior to the use of any Claims Court Related Tax Benefit in respect of which Tronox
is required to pay Distributing hereunder. 

d)    Notwithstanding
anything herein to the contrary, for purposes of this Section 3.03, in the case of an adjustment for any Pre-Deconsolidation Period relating to any
state or local income or franchise Tax that is filed on a Combined Return (other than any Combined Tax Return filed in a Combined Add-Up State), the amount of any Tronox Tax Adjustment,
Tronox Tax Benefit, Distributing Tax Adjustment or Distributing Tax Benefit shall be determined on a Combined Return-by-Combined Return basis as follows: 

	(i)
	Audit
adjustments resulting in a net increase or net decrease in Tax liability (a "Tax Adjustment" or "Tax Benefit" respectively) shall be divided into two segments in
proportion to the Distributing Group's and the Tronox Group's relative contribution, if any, to the apportionment factor relevant to such Tax Adjustment or Tax Benefit, as the case may be, with each
such segment referred to as the "Distributing segment" and the "Tronox segment" for purposes of this Section 3.03(d). For purposes of this Section 3.03(d), each of the Distributing
Group's and the Tronox Group's relative contribution, if any, to an apportionment factor shall be determined (by 

8

 

Distributing
in good faith) (A) in a manner consistent with the past practices of Distributing and Tronox that have been used in determining apportionment factors and (B) by taking into
account and giving effect to all adjustments reflected in a Final Determination with respect to the relevant state or local income or franchise Tax for the taxable period or portion thereof that is at
issue. Accordingly, the apportionment factor allocation methodology will be applied to the Net Tax Liability Payable or Net Tax Refund Receivable (as defined below) in determining the total amount of
the Distributing segment and the Tronox segment. For purposes of the preceding sentence, "Net Tax Liability Payable" or "Net Tax Refund Receivable" shall mean the amount specified in the Final
Determination issued by the applicable state or local Taxing Authority after both giving effect to utilization of tax credits and net operating losses and taking into account any adjustments to
apportionment factors, federal taxable income and state modifications to federal taxable income. In the event that the Final Determination reflects both adjustments to the overall apportionment factor
and to state taxable income, the Distributing Group's and the Tronox Group's respective share, if any, of the Net Tax Liability Payable or Net Tax Refund Receivable shall be calculated as follows:
(I) first, by taking the revised state Tax liability as reflected in the Final Determination (i.e., the state tax liability as originally filed (including any prior revisions) modified by all
of the adjustments reflected in the Final Determination) and multiplying it by the respective Distributing Group's and Tronox Group's share of the overall apportionment factor as revised per such
Final Determination in order to determine the Distributing Group's and the Tronox Group's revised share of the state Tax liability (for purposes of this calculation, the Distributing Group's and the
Tronox Group's share of the revised overall apportionment factor will be a percentage determined by dividing each Group's revised individual factor by the revised overall apportionment factor);
(II) second, by taking the state Tax liability prior to revision by the Final Determination and multiplying it by the respective Distributing Group's and Tronox Group's share of the overall
apportionment factor prior to revision by such Final Determination in order to determine the Distributing Group's and the Tronox Group's share of the state Tax liability prior to the revisions made by
such Final Determination (for purposes of this calculation, the Distributing Group's and the Tronox Group's share of the overall apportionment factor prior to its revision by the Final Determination
will be a percentage determined by dividing each Group's individual factor prior to the Final Determination by the overall apportionment factor prior to its revision by the Final Determination); and
(III) third, the difference between items (I) and (II) shall constitute the Distributing Group's and/or the Tronox Group's share of the Net Tax Liability Payable or the Net Tax
Refund Receivable resulting from the adjustments made pursuant to the Final Determination (and thus determine the relative amounts of the Distributing segment or the Tronox segment). 

	(ii)
	The
Tronox Tax Adjustment or Tronox Tax Benefit shall be equal to the amount of the Tronox segment.

	(iii)
	The
Distributing Tax Adjustment or Distributing Tax Benefit shall be equal to the amount of the Distributing segment. 

SECTION
3.04    Restructuring Taxes and Adjustments.    The Distributing Group shall be liable for 100% of any Restructuring Tax and
any Restructuring Adjustment provided that the Distributing Group's aggregate liability for such Restructuring Taxes and Restructuring Adjustments shall not exceed $17 million (after which the
Tronox Group shall be liable for 100% of any Restructuring Tax and Restructuring Adjustment). If Tronox or another member of the Tronox Group is required under applicable law to pay any Restructuring
Tax or Restructuring Adjustment which is the liability of the Distributing Group pursuant to this Section 3.04, Tronox shall, upon written notice to Distributing, be entitled to a payment equal
to the portion of such Restructuring Tax or Restructuring Adjustment paid by Tronox or other member of the Tronox Group to the applicable Taxing Authority that is the liability of the Distributing
Group pursuant to this Section 3.04. If Distributing or another member of the Distributing Group is required under applicable 

9

 

law
to pay any Restructuring Tax or Restructuring Adjustment which is the liability of the Tronox Group pursuant to this Section 3.04, Distributing shall, upon written notice to Tronox, be
entitled to a payment equal to the portion of such Restructuring Tax or Restructuring Adjustment paid by Distributing or other member of the Distributing Group to the applicable Taxing Authority that
is the liability of the Tronox Group pursuant to this Section 3.04. 

SECTION
3.05    Non-Income Taxes.    In the case of any Return related to Taxes (other than income or franchise Taxes)
in which one or more members of the Distributing Group file with one or members of the Tronox Group (each such Return, a "Joint Return") with respect to a Pre-Deconsolidation Period, the
Distributing Group shall be liable for the Taxes reflected on any such Joint Return attributable to the Distributing Business and the Tronox Group shall be liable for the Taxes reflected on such Joint
Returns attributable to the Tronox Business. In the event that the portion of such Taxes attributable to a particular business cannot be determined, then the Distributing Group shall be liable for
such Taxes. 

SECTION
3.06    Deductions Related to Options and Restricted Stock.    For any and all taxable years ending on or after the
Deconsolidation Date, Tronox shall pay to Distributing the "deemed tax benefit" attributable to all deductions Tronox is entitled to claim after the Deconsolidation Date in respect of exercises of
compensatory stock options to acquire Distributing stock and the vesting of Distributing restricted stock (or dividends paid on Distributing restricted stock), in each case that are held by employees
(or former employees) of any member of the Tronox Group. For purposes of the foregoing, the "deemed tax benefit" referred to in the previous sentence shall conclusively be the total amount of the
available deduction for any such exercise or vesting multiplied by 36%. Tronox shall pay the "deemed tax benefit" amount to Distributing no later than the due date for filing Tronox's federal income
Tax Return for the year in which any such deduction is eligible to be claimed on such Return. 

10

  

 
 

ARTICLE IV    
    
    TAX CONTESTS    

SECTION
4.01    Notification of Tax Contests.    The Controlling Party shall promptly notify all Interested Parties of
(a) the commencement of any Tax Contest pursuant to which such Interested Parties may be required to make or entitled to receive an indemnity payment, reimbursement, tax sharing payment or
other payment pursuant to this Agreement and (b) as required and specified in Section 4.04 hereof, any Final Determination made with respect to any Tax Contest pursuant to which such
Interested Parties may be required to make, or entitled to receive, any indemnity payment, reimbursement, tax sharing payment or other payment pursuant to this Agreement. The failure of a Controlling
Party to promptly notify any Interested Party as specified in the preceding sentence shall not relieve any such Interested Party of any liability and/or obligation which it may have to the Controlling
Party under this Agreement except to the extent that the Interested Party was actually materially prejudiced by such failure, and in no event shall such failure relieve the Interested Party from any
other liability or obligation which it may have to the Controlling Party. 

SECTION
4.02    Tax Contest Settlement Rights.    The Controlling Party shall have the sole right to contest, litigate, compromise
and settle any adjustment that is made or proposed in a Tax Contest without obtaining the prior consent of any Interested Party; provided,  however, that,
unless waived by the parties in writing, the Controlling Party shall, in connection with any proposed or assessed adjustment in a Tax
Contest for which an Interested Party may be required to make, or entitled to receive, an indemnity payment, reimbursement, tax sharing payment or other payment pursuant to this Agreement
(a) keep all Interested Parties informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party and (b) timely provide all such Interested Parties with
copies of any correspondence or filings submitted to any Taxing Authority or judicial authority, in each case in connection with any contest, litigation, compromise or settlement relating to any such
adjustment in a Tax Contest. The failure of a Controlling Party to take any action as specified in the preceding sentence with respect to an Interested Party shall not relieve any such Interested
Party of any liability and/or obligation which it may have to such Controlling Party under this Agreement except to the extent that the Interested Party was actually materially prejudiced by such
failure, and in no event shall such failure relieve the Interested Party from any other liability or obligation which it may have to such Controlling Party. The Controlling Party may, at its sole
discretion, take into account any suggestions made by an Interested Party with respect to such contest, litigation, compromise or settlement of any adjustment in a Tax Contest. All costs of any Tax
Contest shall be borne by the Controlling Party; provided, however, that (x) any costs related to
an Interested Party's attendance at any meeting with a Taxing Authority or hearing or proceeding before any judicial authority pursuant to Section 4.03 hereof and (y) the costs of any
legal or other representatives retained by an Interested Party in connection with any Tax Contest that is subject to the provisions of this Agreement shall, in each case, be borne by such Interested
Party. 

SECTION
4.03    Tax Contest Participation.    Unless waived by the parties in writing, the Controlling Party shall provide an
Interested Party with written notice reasonably in advance of, and such Interested Party shall have the right to attend, any formally scheduled meetings with Taxing Authorities or hearings or
proceedings before any judicial authorities in connection with any contest, litigation, compromise or settlement of any proposed or assessed adjustment that is the subject of any Tax Contest pursuant
to which such Interested Party may be required to make, or entitled to receive, an indemnity payment, reimbursement, tax sharing payment or other payment pursuant to this Agreement. In addition,
unless waived by the parties in writing, the Controlling Party shall provide each such Interested Party with draft copies of any correspondence or filings to be submitted to any Taxing Authority or
judicial authority with respect to such adjustments for such Interested Party's review and comment. The Controlling Party shall provide such draft copies reasonably in advance of the date that they
are to be submitted to the Taxing Authority or judicial authority and the Interested Party shall provide comments, if any, with respect thereto 

11

 

within
a reasonable time before such submission. The failure of a Controlling Party to provide any notice, correspondence or filing as specified in this Section 4.03 to an Interested Party
shall not relieve any such Interested Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Interested Party was
actually materially prejudiced by such failure, and in no event shall such failure relieve the Interested Party from any other liability or obligation which it may have to the Controlling Party. 

SECTION
4.04    Tax Contest Waiver.    

a)    The
Controlling Party shall promptly provide written notice (the "Controlling Party Notice"), sent postage prepaid by United States mail, certified mail, return receipt requested, to
all Interested Parties in a Tax Contest (i) that a Final Determination has been made with respect to such Tax Contest and (ii) enumerating the amount of (A) if the Interested
Party is Distributing or any member of the Distributing Group, the Distributing Tax Adjustment or Distributing Tax Benefit or (B) if the Interested Party is Tronox or any member of the Tronox
Group, the Tronox Tax Adjustment or Tronox Tax Benefit. 

b)    Within
ninety (90) days after an Interested Party receives the notice described in Section 4.04(a) hereof from the Controlling Party, such Interested Party shall execute
a written statement giving notice to the Controlling Party (i) that the Interested Party agrees with the computations set forth in the Controlling Party Notice except with respect to those
adjustments computations that, in the good faith judgment of the Interested Party, it disagrees with and has specifically enumerated its disagreement with, including the amount of such disagreement,
in the statement (each such disagreed computation hereinafter referred to as a "Disputed Adjustment") and (ii) that the Interested Party thereby waives its right to a determination by an
Independent Third Party pursuant to Section 4.05 hereof with respect to all computations to which it agrees with its share (this statement referred to as the "Interested Party Notice"). For the
avoidance of doubt, in the Interested Party Notice, the Interested Party may set forth its disagreement with the absolute amount of any adjustment set forth in the Controlling Party Notice as well as
the amount of any Distributing Tax Adjustment, Distributing Tax Benefit, Tronox Tax Adjustment or Tronox Tax Benefit contained in the Controlling Party Notice. The failure of an Interested Party to
provide the Interested Party Notice to the Controlling Party within the ninety (90) day period specified in the preceding sentence shall be deemed to conclusively indicate that such Interested
Party agrees with the computations set forth in the Controlling Party and that such Interested Party waives its right to a determination by an Independent Third Party with respect to all such
computations pursuant to Section 4.05 hereof. The Controlling Party or the Interested Party, as the case may be, shall pay as specified in Article III hereof, the amount, if any, of any
Distributing Tax Adjustment, Distributing Tax Benefit, Tronox Tax Adjustment or Tronox Tax Benefit that is not a Disputed Adjustment to the appropriate party. 

c)    During
the ninety (90) day period immediately following the Controlling Party's receipt of the Interested Party Notice, the Controlling Party and the Interested Party shall in
good faith confer with each other to resolve any disagreement over each Disputed Adjustment that was specifically enumerated in such Interested Party Notice. At the end of such ninety (90) day
period, unless otherwise extended in writing by mutual consent of the parties, the Interested Party shall be deemed to agree with all Disputed Adjustments that were specifically enumerated in the
Interested Party Notice and waive its right to a determination by an Independent Third Party pursuant to Section 4.05 hereof with respect to all such Disputed Adjustments unless, and to the
extent that, at any time during such ninety (90) day (or extended) period, either the Controlling Party or the Interested Party has given the other party written notice that it is seeking a
determination by an Independent Third Party pursuant to Section 4.05 hereof regarding the propriety of any such Disputed Adjustment. If the Disputed Adjustments are not referred to an
Independent Third Party, then the Controlling Party or the Interested Party, as the case may be, shall pay as specified in Article III hereof, the amount, if any, of any Distributing Tax
Adjustment, Distributing Tax Benefit, Tronox Tax Adjustment or Tronox Tax Benefit (as adjusted pursuant to any agreement between the parties reached during the ninety (90) day period described
in this Section 4.04(c)) to the appropriate party. 

12

 

SECTION
4.05    Tax Contest Dispute Resolution.    

a)    In
the event that either a Controlling Party or an Interested Party has given the other party written notice as required under Section 4.04(c) hereof that it is seeking a
determination by an Independent Third Party pursuant to this Section 4.05 with respect to any Disputed Adjustment that was enumerated in an Interested Party Notice, then the parties shall,
within ten (10) days after a party has received such notice, jointly select an Independent Third Party to make such determination. In the event that the parties cannot jointly agree on an
Independent Third Party within such ten (10) day period, then the Controlling Party and the Interested Party shall each immediately select an Independent Third Party and the Independent Third
Parties so selected by the parties shall jointly select, within ten (10) days of their selection, another Independent Third Party. 

b)    In
making its determination as to the propriety of any Disputed Adjustment, the Independent Third Party elected pursuant to Section 4.05(a) hereof shall assume that the
Interested Party is not required or entitled under applicable law to be a member of any consolidated return. In addition, the Independent Third Party shall make its determination according to the
following procedure: 

        (i)    The
Independent Third Party shall analyze each Disputed Adjustment for which a determination is sought pursuant to this Section 4.05 on a stand-alone basis to
determine whether the actual outcome reached with respect to such Disputed Adjustment as reflected in the Final Determination of the Tax Contest was fair and appropriate taking into account the
following exclusive criteria: (A) the facts relating to such adjustment, (B) the applicable law, if any, with respect to such adjustment, (C) the position of the applicable Taxing
Authority with respect to compromise, settlement or litigation of such adjustment, (D) the strength of the factual and legal arguments made by the Controlling Party in reaching the outcome with
respect to such adjustment as reflected in the Final Determination of the Tax Contest and (E) the strength of the factual and legal arguments being made by the Interested Party for the
alternative outcome being asserted by such Interested Party (including the availability of fact, information and documentation to support such alternative outcome). Based on this analysis, the
Independent Third Party shall determine what is the fair and appropriate outcome (hereinafter referred to as the "Ultimate Determination") with respect to each such adjustment. 

        (ii)   The
Interested Party shall only be entitled to modification of its share of a Disputed Adjustment under this Section 4.05 if either (A) the amount that
would be paid by the Interested Party under the Ultimate Determination with respect to such Disputed Amount is less than 80% of the amount that would be paid by the Interested Party with respect to
the Disputed Adjustment as set forth in the Controlling Party Notice or (B) the amount that would be received by the Interested Party under the Ultimate Determination with respect to such
Disputed Adjustment is more than 120% of the amount that the Interested Party would receive with respect to such Disputed Adjustment as set forth in the Controlling Party Notice. If an Interested
Party is entitled to modification of its share of any Disputed Adjustment under the preceding sentence, the amount the Interested Party is entitled to receive, or is required to pay, as the case may
be, with respect to such Disputed Adjustment shall be equal to the amount of the Ultimate Determination of such Disputed Adjustment. 

c)    Any
determination made or notice given by an Independent Third Party pursuant to this Section 4.05 shall be (i) in writing, (ii) made within sixty (60) days
following the selection of the Independent Third Party unless such period is otherwise extended by the mutual consent of the parties and (iii) final and binding upon the parties. The costs of
any Independent Third Party shall be borne equally by the parties. The Controlling Party and the Interested Party shall provide the Independent Third Party with such information or documentation as
may be appropriate or necessary in order for such Independent Third Party to make the determination requested of it. Upon issuance of an Independent Third Party's notice under this
Section 4.05, the Controlling Party or the Interested Party, as the case may be, shall pay as specified in Article III hereof, the amount, if any, of the Distributing Tax Adjustment,
Distributing Tax 

13

 

Benefit,
Tronox Tax Adjustment or Tronox Tax Benefit as a determined pursuant to the provisions of this Section 4.05 to the appropriate party. 

SECTION
4.06    Current Litigation.    

a)    Notwithstanding
anything in this Article IV or in the definitions of "Controlling Party" and "Interested Party" to the contrary, Distributing shall be the Controlling Party and
Tronox shall be an Interested Party with respect to the Claims Court Litigation. 

b)    Notwithstanding
anything in this Article IV or in the definitions of "Controlling Party" and "Interested Party" to the contrary, for any taxable year after 1996 that is part of
the Pre-Deconsolidation Date Period, if a Tax Contest involving the same or similar factual and legal issues that are at issue in the Claims Court Litigation arises, Distributing shall be
the Controlling Party and Tronox shall be an Interested Party. 

SECTION
4.07    Costs and Expenses.    The costs and expenses of a Controlling Party and an Interested Party in controlling or
participating in (as applicable) a Tax Contest shall be borne by the party incurring such costs and expenses. 

 
 

ARTICLE V    
    
    REPRESENTATIONS AND COVENANTS    

SECTION
5.01    Representations.    

a)    Tronox Representations.    Tronox and each member of the Tronox Group represent as of the date hereof and as of the
Distribution Date that there is no plan or intention to (i) liquidate, merge or consolidate Tronox or to liquidate, merge or consolidate any member of the Tronox Group conducting an active
trade or business relied upon, or to be relied upon, in connection with the Distribution, with any other person subsequent to the Distribution, (ii) sell or otherwise dispose of any assets of
Tronox or any member of the Tronox Group subsequent to the Distribution other than in the ordinary course of business, (iii) unify or otherwise reclassify or recapitalize the two classes of
Tronox stock (iv) take any other action inconsistent with the information and representations furnished to Covington & Burling in connection with the opinion to be delivered by
Covington & Burling with respect to certain federal income tax consequences of the Distribution and (v) enter into any negotiations, agreements or arrangements with respect to
transactions or events (including capital contributions, acquisitions or stock issuances, but not including the Distribution or stock issuances in connection with the performance of services by any
officer, director or employee of Tronox or any member of the Tronox Group other than any officer, director or employee who owns 5% or more of any class of Tronox stock) that may cause the Distribution
to be treated as part of a plan or series of related transactions pursuant to which one or more persons acquire, directly or indirectly, Tronox stock representing a "50-percent or greater
interest" within the meaning of Section 355(d)(4) of the Code. For purposes of determining whether any transaction may be treated as part of a plan or series of related transactions pursuant to
which one or more persons acquire, directly or indirectly, Tronox stock
representing a "50-percent or greater interest" within the meaning of Section 355(d)(4) of the Code, Tronox stock issued on the Deconsolidation Date (and any other shares of Tronox
stock issued in connection with the initial public offering of Tronox) shall be aggregated with any Tronox stock issued in connection with any such transaction or events. 

b)    Distributing Representations.    Distributing represents as of the date hereof and as of the Distribution Date that there is
no plan or intention to take any action inconsistent with the information and representations furnished to Covington & Burling in connection with the opinion to be delivered by
Covington & Burling with respect to certain federal income tax consequences of the Distribution. 

c)    Distributing and Tronox Representations.    Each of Distributing and Tronox respectively represent as of the date hereof and
as of the Distribution Date that neither Distributing nor Tronox respectively (as 

14

 

applicable)
is aware of any present plan or intention by the current shareholders of Distributing to sell, exchange, transfer by gift or otherwise dispose of any of their stock or securities in
Distributing or Tronox subsequent to the Distribution. 

SECTION
5.02    Covenants.    

a)    Tronox Covenants.    Tronox covenants to Distributing that (i) from the date herof until the end of the
two-year period following the Distribution Date, neither Tronox nor any member of the Tronox Group conducting an active trade or business relied upon in connection with the Distribution
will liquidate, merge or consolidate with any other person, (ii) from the date hereof until the end of the two-year period following the Distribution Date, Tronox LLC shall not (and
Tronox shall cause Tronox LLC to not) sell, exchange, distribute or otherwise dispose of more than 20% of its assets that were used directly by Tronox LLC on the Distribution Date in the active
conduct of the Tronox Business, (iii) following the Deconsolidation Date, Tronox will, for a minimum of two years following the Distribution Date, continue the active conduct of the Tronox
Business, (iv) Tronox will not, nor will it permit any member of the Tronox Group to, take any action inconsistent with the information and representations furnished to Covington &
Burling in connection with the opinion to be delivered by Covington & Burling with respect to certain federal income tax consequences of the Distribution, (v) from the date hereof until
the end of the five year period following the Distribution, Tronox will not unify or otherwise reclassify or recapitalize the two classes of Tronox stock outstanding on the Deconsolidation Date and
(vi) from the date hereof until the end of the two year period following the Distribution Date, Tronox will not enter into any transaction or make any change in equity structure (including
capital contributions, acquisitions, redemptions or stock issuances, but not including the Distribution or stock issuances in connection with the performance of services by any officer, director or
employee of Tronox or any member of the Tronox Group other than any officer, director or employee who owns 5% or more of any class of Tronox stock) that may cause the Distribution to be treated as
part of a plan or series of related transactions pursuant to which one or more persons acquire, directly or indirectly, Tronox stock representing a "50-percent or greater interest" within
the meaning of Section 355(d)(4) of the Code at the time of such transaction or change
in equity structure. For purposes of determining whether any transaction may be treated as part of a plan or series of related transactions pursuant to which one or more persons acquire, directly or
indirectly, Tronox stock representing a "50-percent or greater interest" within the meaning of Section 355(d)(4) of the Code, Tronox stock issued on the Deconsolidation Date (and
any other shares of Tronox stock issued in connection with the initial public offering of Tronox) shall be aggregated with any Tronox stock issued in connection with any such transaction or events. 

b)    Exceptions.    Notwithstanding the foregoing covenants contained in Section 5.02(a) hereof, Tronox shall be permitted
to take an action inconsistent with Section 5.02(a), if, prior to taking such action, Tronox provides notification to Distributing of its plans with respect to such action, and promptly
responds to any inquiries by Distributing following such notification, and either: 

(i)    Tronox
obtains a ruling with respect to the action from the Internal Revenue Service or other applicable Taxing Authority that is reasonably satisfactory to Distributing on a basis of
facts and representations consistent with the facts at the time of such action, that such action will not result in the Distribution being taxable to Distributing or its shareholders, or 

(ii)    Tronox
obtains an opinion reasonably acceptable to Distributing of an independent nationally recognized tax counsel acceptable to Distributing, on a basis of facts and
representations consistent with the facts at the time of such action, that such action will not result in the Distribution being taxable to Distributing or its shareholders 

15

 

 
 

ARTICLE VI    
    
    INDEMNITY    

SECTION
6.01    Tronox Indemnity.    In addition to any Tax sharing payment required to be made by Tronox or any member of the
Tronox Group pursuant to the provisions of Article III hereof, Tronox and each member of the Tronox Group will jointly and severally indemnify Distributing and the members of the Distributing
Group against and hold them harmless from: 

a)    except
in the case of any Restructuring Tax or Restructuring Adjustment, any Tax liability of the Tronox Group which relates to a Post-Deconsolidation Period; 

b)    in
the case of a Restructuring Tax or Restructuring Adjustment, any Tax which is the liability of Tronox Group pursuant to Section 3.04 hereof; 

c)    any
Tax or other liability or damage resulting from a breach by Tronox or any member of the Tronox Group of any representation or covenant made by Tronox or any member of the Tronox
Group herein; and 

d)    all
liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorney's fees and expenses), losses, damages, assessments, settlements or
judgments arising out of or incident to the imposition, assessment or assertion of any Tax liability or damage described in (a), (b) or (c), including those incurred in the contest in good
faith in appropriate proceeding relating to the imposition, assessment or assertion of any such Tax, liability or damage. 

SECTION
6.02    Distributing Indemnity.    In addition to any Tax sharing payment required to be made by Distributing or any member
of the Distributing Group pursuant to the provisions of Article III hereof, Distributing and each member of the Distributing Group will jointly and severally indemnify Tronox and each member of
the Tronox Group against and hold them harmless from: 

a)    except
in the case of any Restructuring Tax or Restructuring Adjustment, any Tax liability of the Distributing Group which relates to a Post-Deconsolidation Period and any
Tax liability resulting from the Distribution, other than any such liabilities described in Section 6.01(a); 

b)    in
the case of a Restructuring Tax or Restructuring Adjustment, any Tax which is the liability of Distributing Group pursuant to Section 3.04 hereof; 

c)    any
Tax liability of the Distributing Consolidated Group with respect to a Pre-Deconsolidation Period, other than Taxes, including any Tronox Tax Adjustments, for which
Tronox or any member of the Tronox Group is required to reimburse Distributing pursuant to the provisions of Article III hereof; 

d)    any
Tax, or other liability or damage resulting from a breach by Distributing or any member of the Distributing Group of any representation or covenant made by Distributing herein; and 

e)    all
liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorney's fees and expenses), losses, damages, assessments, settlements or
judgments arising out of or incident to the imposition, assessment or assertion of any Tax liability or damage described in (a), (b), (c) or (d), including those incurred in the contest in good
faith in appropriate proceeding relating to the imposition, assessment or assertion of any such Tax, liability or damage. 

 
 

ARTICLE VII    
    
    MISCELLANEOUS PROVISIONS    

SECTION
7.01    Tax Characterization of Payments.    For all Tax purposes, and notwithstanding any other provision of this
Agreement, to the extent permitted by applicable law, the parties hereto shall treat any payment made pursuant to this Agreement as a capital contribution or dividend distribution, as the case may be,
immediately before the Deconsolidation Date and, accordingly, as not includible in the taxable income of the recipient. If any payment under this Agreement is not permitted to be so treated (because, 

16

 

for
example, the payment relates to an event occurring after the Deconsolidation Date) or as a result of a Final Determination it is determined that the receipt or accrual of any payment made under
this Agreement is taxable to the recipient of such payment, the party making the payment shall pay to the recipient an amount equal to any increase in the income Taxes of the recipient as a result of
receiving the payment (grossed up to take into account such payment, if applicable). 

SECTION
7.02    Payment.    All payments to be made hereunder shall be made in immediately available funds. Except as otherwise
provided, all payments required to be made pursuant to this Agreement shall be due 30 days after the receipt of notice of such payment or, where no notice is required, 30 days after the
fixing of liability or the resolution of a dispute. Payments shall be deemed made when received. Any payment that is not made when due shall bear interest at a rate equal to            for
each
day until paid. 

SECTION
7.03    Joint and Several Liability of Group Members.    Each member of the Distributing Group shall be jointly and
severally liable for the obligations of each other member of the Distributing Group hereunder. Each member of the Tronox Group shall be jointly and severally liable for the obligations of each other
member of the Tronox Group hereunder. 

SECTION
7.04    Performance.    Distributing agrees and acknowledges that Distributing shall be responsible for the performance of
the obligations of each member of the Distributing Group hereunder applicable to such member. Tronox agrees and acknowledges that Tronox shall be responsible for the performance by each member of the
Tronox Group of the obligations hereunder applicable to such member. 

SECTION
7.05    Notices.    All notices or other communications under this Agreement shall be in writing (including by telecopy) and
shall be deemed to be duly given or made when delivered, or, in the case of telecopy, when received, addressed as follows or to such other address as may be hereafter notified by the respective party: 

	To Distributing:	 	Kerr-McGee Corporation

Kerr-McGee Worldwide Corporation

Kerr-McGee Center

123 Robert S. Kerr Avenue

Oklahoma City, Oklahoma 73102

Facsimile: 405-270-3649

Attention: General Counsel
	 	
with a copy to:	
 	

Covington & Burling

1330 Avenue of the Americas

New York, New York 10019

Facsimile: 212-841-1010

Attention: Scott F. Smith
	

To Tronox:	
 	

Tronox Incorporated

123 Robert S. Kerr Avenue

Oklahoma City, Oklahoma 73102

Facsimile: 405-270-3649

Attention: Chief Executive Officer
	 	
with a copy to:	
 	

Tronox Incorporated

123 Robert S. Kerr Avenue

Oklahoma City, Oklahoma 73102

Facsimile: 405-270-3649

Attention: General Counsel

17

 

SECTION
7.06    Governing Law.    

        This
Agreement shall be governed by the laws applicable to contracts entered into and to be performed within the State of New York. 

SECTION
7.07    Jurisdiction.    

        Each
party agrees to submit itself exclusively to the personal jurisdiction of any New York court in the event any dispute arises out of this Agreement or any of the transactions
contemplated by this Agreement and agrees that it will not attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such New York court. Each party
further agrees that service of any process, summons, notice or document by U.S. registered mail to such party's respective address set forth above shall be effective service of process for any action,
suit or proceeding in New York with respect to any matters to which it has submitted to jurisdiction in this Section 7.07. 

SECTION
7.08    Waiver of jury trial.    

        Each
party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any dispute arising out of this Agreement. 

SECTION
7.09    Entire Agreement.    

        This
Agreement embodies the entire understanding between the parties relating to its subject matter and supersedes and terminates all prior agreements and understandings among the
parties with respect to such matters. No promises, covenants or representations of any kind, other than those expressly stated herein, have been made to induce any party to enter into this Agreement.
This Agreement shall not be modified or terminated except by a writing duly signed by each of the parties hereto, and no waiver of any provisions of this Agreement shall be effective unless in a
writing duly signed by the party sought to be bound. If, and to the extent, the provisions of this Agreement conflict with the Master Separation Agreement, or any other agreement entered into in
connection with the Distribution, the provisions of this Agreement shall control. 

SECTION
7.10    Assignment; Binding Effect.    

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

SECTION
7.11    Counterparts.    

        This
Agreement may be executed in three or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same. 

SECTION
7.12    Severability.    

        If
any provision of this Agreement or the application of any such provision to any person or circumstances shall be held invalid, illegal, or unenforceable in any respect by a court of
competent jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision hereof. 

SECTION
7.13    Headings.    

        Headings
of sections in this Agreement are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 

SECTION
7.14    Survival.    

        Notwithstanding
anything in this Agreement to the contrary, the provisions of this Agreement shall survive until the expiration of the applicable statutes of limitations (giving effect
to any waiver, mitigation or extension thereof). 

18

 

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

	 	 	KERR-MCGEE CORPORATION
	

 	
 	

By	
 	

    

	 	 	Name:	 	 
	 	 	Title:	 	 
	

 	
 	

TRONOX INCORPORATED
	

 	
 	

By	
 	

    

	 	 	Name:	 	 
	 	 	Title:	 	 

[SIGNATURE PAGE TO TAX SHARING AGREEMENT] 

19

QuickLinks

EXHIBIT 10.3

ARTICLE IV TAX CONTESTS

ARTICLE V REPRESENTATIONS AND COVENANTS

ARTICLE VI INDEMNITY

ARTICLE VII MISCELLANEOUS PROVISIONSQuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.4    
    

 

FORM OF  

 EMPLOYEE BENEFITS AGREEMENT  

 BY AND BETWEEN  

 KERR-McGEE CORPORATION  

 AND  

 TRONOX INCORPORATED  

 DATED AS OF                        , 2005  

 

  

 TABLE OF CONTENTS  

	Article 1. Definitions and Construction	 	2
	

 	
 	

1.01.	
 	

Definitions.	
 	

2
	 	 	1.02.	 	Construction.	 	8
	
Article 2. General Principles	
 	

8
	

 	
 	

2.01.	
 	

Assumption of Liabilities.	
 	

8
	 	 	2.02.	 	Participation in Kerr-McGee Employee Benefit Plans.	 	8
	 	 	2.03.	 	Establishment and Maintenance of Tronox Employee Benefit Plans.	 	9
	 	 	2.04.	 	Terms of Participation in Tronox Employee Benefit Plans.	 	10
	 	 	2.05.	 	Allocation of Costs.	 	10
	
Article 3. Terms of Employment and Compensation	
 	

11
	

 	
 	

3.01.	
 	

Salary and Base Pay.	
 	

11
	 	 	3.02.	 	Incentive Awards.	 	11
	 	 	3.03.	 	Severance.	 	12
	 	 	3.04.	 	Success Bonus Program.	 	12
	 	 	3.05.	 	2005 Retention Program.	 	12
	
Article 4. Defined Benefit Retirement Plans	
 	

12
	

 	
 	

4.01.	
 	

Establishment of Mirror Retirement Plan and Trust.	
 	

12
	 	 	4.02.	 	Assumption of Pension Plan Liabilities.	 	12
	 	 	4.03.	 	Transfer of Assets.	 	12
	 	 	4.04.	 	Pension Plan Transfer Amount.	 	13
	
Article 5. Defined Contribution Retirement Plans	
 	

13
	

 	
 	

5.01.	
 	

Establishment of SIP and Trust	
 	

13
	 	 	5.02.	 	Vesting in Kerr-McGee SIP.	 	14
	 	 	5.03.	 	Acceptance of Rollovers.	 	14
	 	 	5.04.	 	Maintenance of Universal Life Policy.	 	14
	
Article 6. Health and Welfare Plans	
 	

14
	

 	
 	

6.01.	
 	

Establishment of Health and Welfare Plans.	
 	

14
	 	 	6.02.	 	Health and Welfare Plans.	 	14
	 	 	6.03.	 	Special Rule for HCSA and DCSA Plans.	 	15
	 	 	6.04.	 	Vendor Contracts.	 	15
	 	 	6.05.	 	Disability Plans.	 	16
	 	 	6.06.	 	Life Insurance Plans.	 	16
	 	 	6.07.	 	COBRA.	 	16
	 	 	6.08.	 	Leave of Absence Programs and FMLA.	 	17
	 	 	6.09.	 	Kerr-McGee Workers' Compensation Program.	 	17
	 	 	6.10.	 	Kerr-McGee Employee Assistance Program.	 	17
	 	 	6.11.	 	Unemployment Insurance Tax Management Program.	 	17
	 	 	6.12.	 	Administration.	 	18
	 	 	6.13.	 	UMWA Combined Benefit Fund.	 	18
	 	 	6.14.	 	Medicare Part B Reimbursements.	 	18
	 	 	6.15.	 	Reimbursements by Kennecott.	 	18
	 	 	6.16.	 	Application of Article 6 to Tronox Entities.	 	18
	 	 	 	 	 	 	 

	
Article 7. Stock-Based Compensation	
 	

18
	

 	
 	

7.01.	
 	

Establishment of Plan.	
 	

18
	 	 	7.02.	 	Stock Options.	 	18
	 	 	7.03.	 	Restricted Stock.	 	19
	
Article 8. Executive Benefits	
 	

19
	

 	
 	

8.01.	
 	

Establishment of Plans.	
 	

19
	 	 	8.02.	 	Kerr-McGee Benefits Restoration Plan.	 	19
	 	 	8.03.	 	Rabbi Trust.	 	20
	 	 	8.04.	 	Continuity Agreements.	 	20
	 	 	8.05.	 	Code Section 162(m).	 	20
	
Article 9. Miscellaneous Benefits	
 	

20
	

 	
 	

9.01.	
 	

Service Award Program.	
 	

20
	 	 	9.02.	 	Other Welfare Plans.	 	21
	
Article 10. Non-U.S. Employees and Employee Benefit Plans	
 	

22
	

 	
 	

10.01.	
 	

In General.	
 	

22
	 	 	10.02.	 	Stock Opportunity Grants.	 	22
	 	 	10.03.	 	Stock Options—Foreign Plans.	 	22
	
Article 11. General and Administrative Provisions	
 	

23
	

 	
 	

11.01.	
 	

Actuarial and Accounting Methodologies and Assumptions.	
 	

23
	 	 	11.02.	 	Sharing of Participant Information.	 	23
	 	 	11.03.	 	Reporting, Disclosure, and Communications to Participants.	 	23
	 	 	11.04.	 	Non-Termination of Employment, No Third-Party Beneficiaries.	 	24
	 	 	11.05.	 	Plan Audits.	 	24
	 	 	11.06.	 	Beneficiary Designations.	 	25
	 	 	11.07.	 	Cooperation in Requests for Rulings and DOL Opinions.	 	25
	 	 	11.08.	 	Fiduciary Matters.	 	25
	 	 	11.09.	 	Collective Bargaining.	 	25
	 	 	11.10.	 	Consent of Third Parties.	 	26
	 	 	11.11.	 	General Obligations as Plan Sponsors.	 	26
	 	 	11.12.	 	Adjustments to Plan Transfers.	 	26
	
Article 12. Miscellaneous	
 	

27
	

 	
 	

12.01.	
 	

Effect If Distribution Does Not Occur.	
 	

27
	 	 	12.02.	 	Relationship of Parties.	 	27
	 	 	12.03.	 	Affiliates.	 	27
	 	 	12.04.	 	Disputes.	 	27
	 	 	12.05.	 	Governing Law; Jurisdiction; Jury Trial Waiver.	 	27
	
Schedule I	
 	

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

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

FORM OF EMPLOYEE BENEFITS AGREEMENT  

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

RECITALS  

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

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

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

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

   ARTICLE 1. DEFINITIONS AND CONSTRUCTION  

	1.01.
	 Definitions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2

 

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

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

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

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

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

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

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

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

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

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

3

 

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

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

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

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

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

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

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

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

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

	(gg)
	Non-U.S. Benefit Plans.    Non-U.S. Benefit Plans, when immediately preceded by
"Kerr-McGee," means the employee benefit plans listed on Schedule II. When immediately preceded by "Tronox," Non-U.S. Plans means employee benefit plans to be
established by Tronox pursuant to 

4

 

Section 2.03
that correspond to the Kerr-McGee Non-U.S. Benefit Plans to the extent such Kerr-McGee Non-U.S. Benefit Plans provide benefits to
Tronox Individuals. 

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

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

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

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

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

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

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

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

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

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

	(rr)
	Rabbi Trust.    Rabbi Trust, when immediately preceded by "Kerr-McGee," means the rabbi trust established by
Kerr-McGee Corporation. When immediately preceded by "Tronox," Rabbi Trust 

5

 

means
the grantor trust to be established by Tronox pursuant to Section 8.03 that corresponds to the Kerr-McGee rabbi trust. 

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

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

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

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

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

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

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

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

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

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

6

 

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

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

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

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

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

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

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

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

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

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

7

 

	1.02.
	 Construction.

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

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

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

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

ARTICLE 2. GENERAL PRINCIPLES  

	2.01.
	 Assumption of Liabilities.

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

	2.02.
	 Participation in Kerr-McGee Employee Benefit Plans.

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

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

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

8

 

Entity
shall cease to be a Participating Company in the Kerr-McGee Stock Plans as of the date as of which the adjustments called for by Article 7 have been made. 

	2.03.
	 Establishment and Maintenance of Tronox Employee Benefit Plans.

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

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

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

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

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

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

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

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

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

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

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

9

 

	2.04.
	 Terms of Participation in Tronox Employee Benefit Plans.

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

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

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

	2.05.
	 Allocation of Costs.

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

10

   ARTICLE 3. TERMS OF EMPLOYMENT AND COMPENSATION  

	3.01.
	Salary and Base Pay.

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

	3.02.
	Incentive Awards.

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

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

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

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

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

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

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

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

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

11

 

	3.03.
	Severance.

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

	3.04.
	Success Bonus Program.

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

	3.05.
	2005 Retention Program.

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

ARTICLE 4. DEFINED BENEFIT RETIREMENT PLANS  

	4.01.
	Establishment of Mirror Retirement Plan and Trust.

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

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

	4.02.
	Assumption of Pension Plan Liabilities.

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

	4.03.
	Transfer of Assets.

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

	(a)
	The Initial Pension Transfer.    The initial pension transfer shall be in an amount equal to at least ninety percent (90%) of
Kerr-McGee's reasonable best estimate on the Offering Date of the 

12

 

Pension
Transfer Amount. Kerr-McGee shall transfer or cause to be transferred the amount of the initial pension transfer from the Kerr-McGee Pension Trust to the Tronox Pension
Trust on the first day after the Distribution Date on which the New York Stock Exchange is open for business (the "First Transfer Date"). 

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

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

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

	4.04.
	Pension Plan Transfer Amount.

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

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

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

ARTICLE 5. DEFINED CONTRIBUTION RETIREMENT PLANS  

	5.01.
	Establishment of SIP and Trust.

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

Before
the expiration of the applicable remedial amendment period, Tronox shall file, or shall cause to be filed, an application for a determination from the IRS that the Tronox SIP and the related
trust are qualified within the meaning of sections 401(a) and 501(a) of the Code, respectively. Tronox shall 

13

 

timely
make, or cause to be made, any modifications to the Tronox SIP and related trust required by the IRS as a condition of receiving a favorable determination. 

	5.02.
	Vesting in Kerr-McGee SIP.

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

	5.03.
	Acceptance of Rollovers.

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

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

	5.04.
	Maintenance of Universal Life Policy.

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

ARTICLE 6. HEALTH AND WELFARE PLANS  

	6.01.
	Establishment of Health and Welfare Plans.

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

	6.02.
	Health and Welfare Plans.

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

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

14

 

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

 

	6.03.
	Special Rule for HCSA and DCSA Plans.

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

	6.04.
	Vendor Contracts.

	(a)
	Third-Party ASO Contracts.

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

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

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

	(1)
	At
Tronox's request, Kerr-McGee shall use its reasonable best efforts to cause all HMOs, PPOs, and Expatriate Carriers that provide medical services under the
Kerr-McGee Health Plans in existence as of the date of this Agreement to provide coverage to employees and retirees of Tronox on terms that are substantially similar to the terms and
conditions of the letter agreement between Kerr-McGee and such carrier ("HMO Agreement"), in each case, from the Distribution Date until December 31, 2006, or such other date on
which the parties 

15

 

may
agree. Such terms and conditions shall include the financial and termination provisions of the HMO Agreements. The request of Tronox as described above shall be deemed Tronox's authorization of
Kerr-McGee to act on its behalf to extend to Tronox the terms and conditions of the HMO Agreements. Tronox shall use its reasonable best efforts to cooperate with Kerr-McGee in
such efforts, and Tronox shall not perform any act, including discussing any alternative arrangements with any third-party that would prejudice Kerr-McGee's efforts. 

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

 

	6.05.
	Disability Plans.

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

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

 

	6.06.
	Life Insurance Plans.

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

	6.07.
	COBRA.

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

16

 
	6.08.
	Leave of Absence Programs and FMLA.

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

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

 

	6.09.
	Kerr-McGee Workers' Compensation Program.

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

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

 

	6.10.
	Kerr-McGee Employee Assistance Program.

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

	6.11.
	Unemployment Insurance Tax Management Program.

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

17

 
	6.12.
	Administration.

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

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

 

	6.13.
	UMWA Combined Benefit Fund.

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

	6.14.
	Medicare Part B Reimbursements.

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

	6.15.
	Reimbursements by Kennecott.

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

	6.16.
	Application of Article 6 to Tronox Entities.

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

ARTICLE 7. STOCK-BASED COMPENSATION  

	7.01.
	Establishment of Plan.

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

	7.02.
	Stock Options.

	(a)
	Vested Options.    Except as otherwise provided in this Article 7, to the extent that a Transferred Individual is
holding an Award consisting of a Kerr-McGee Option that is vested and outstanding as of the Close of the Distribution Date, that Transferred Individual shall be treated as 

18

 

experiencing
a separation from service from, or otherwise terminating employment with, Kerr-McGee. Any such Option shall expire unless it is exercised within the time provided in the
Option itself. 

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

 

	7.03.
	Restricted Stock.

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

ARTICLE 8. EXECUTIVE BENEFITS  

	8.01.
	Establishment of Plans.

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

	8.02.
	Kerr-McGee Benefits Restoration Plan.

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

19

 
	8.03.
	Rabbi Trust.

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

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

 

	8.04.
	Continuity Agreements.

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

	8.05.
	Code Section 162(m).

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

Article 9. Miscellaneous Benefits  

	9.01.
	Service Award Program.

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

	(b)
	Tronox
and the Tronox Entities may provide to their employees service anniversary merchandise bearing the name and/or logo of Kerr-McGee ordered by Kerr-McGee
before the date of this Agreement and delivered under the Tronox Service Award Program to Transferred Individuals 

20

 

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

	9.02.
	Other Welfare Plans.

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

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

21

  

 
 

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

	10.01.
	In General.  

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

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

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

	10.02.
	Stock Opportunity Grants.  

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

	10.03.
	Stock Options—Foreign Plans.  

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

22

 
 
 

ARTICLE 11. GENERAL AND ADMINISTRATIVE PROVISIONS    
    

	11.01.
	Actuarial and Accounting Methodologies and Assumptions.  

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

	11.02.
	Sharing of Participant Information.  

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

	11.03.
	Reporting, Disclosure, and Communications to Participants.  

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

23

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

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

	11.05.
	Plan Audits.

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

	(b)
	Audit Rights with Respect to Information Provided.

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

24

 

review
a draft of the audit findings and to comment on those findings in writing within ten business days after receiving such draft. 

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

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

 

	11.06.
	Beneficiary Designations.  

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

	11.07.
	Cooperation in Requests for Rulings and DOL Opinions.  

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

	11.08.
	Fiduciary Matters.  

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

	11.09.
	Collective Bargaining.

	(a)
	A
Kerr-McGee Entity is a party to a Labor Agreement between Kerr-McGee Pigments (Savannah), Inc., Savannah, GA Plant and District No. 96,
International Association of Machinists and Aerospace Workers (affiliated with AFL-CIO), dated May 12, 2003 (the "Labor 

25

 

Agreement").
The Labor Agreement settles certain terms and conditions of employment for represented employees of this Kerr-McGee Entity. The Labor Agreement continues for one year periods
beginning on May 1 of each year unless either party provides at least 60 days advance written notice of its intent to terminate the agreement at the end of the then-current
term. (The current term of the Agreement expires on April 30, 2006.) 

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

 

	11.10.
	Consent of Third Parties.  

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

	11.11.
	General Obligations as Plan Sponsors.  

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

	11.12.
	Adjustments to Plan Transfers.  

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

26

 
 
 

ARTICLE 12. MISCELLANEOUS    
    

	12.01.
	Effect If Neither Distribution nor Exchange Occurs.  

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

	12.02.
	Relationship of Parties.  

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

	12.03.
	Affiliates.  

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

	12.04.
	Disputes.  

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

	12.05.
	Governing Law; Jurisdiction; Jury Trial Waiver.

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

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

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

27

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

	 	 	KERR-McGEE CORPORATION
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	Executive Vice President
	

 	
 	

TRONOX INCORPORATED
	

 	
 	

By:	

 	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 

  

 
 

SCHEDULE I
  KERR-McGEE U.S. EMPLOYEE BENEFIT PLANS, POLICIES, AND PROGRAMS    
    

	1.
	Kerr-McGee
Corporation (Active Employees) Health and Protection Plan

	2.
	Kerr-McGee
Corporation Retiree Health and Protection Plan

	3.
	Kerr-McGee
Pigments (Savannah) Inc., Personal Protection Plan

	4.
	Kerr-McGee
Corporation Involuntary Termination Plan for U.S. Non-Bargaining Employees

	5.
	Kerr-McGee
Pigments (Savannah), Inc. 2004 Involuntary Severance Plan for Bargaining Unit Employees

	6.
	Kerr-McGee
Corporation Savings Investment Plan—Restatement 2005

	7.
	Kerr-McGee
Corporation Retirement Plan

	8.
	Kerr-McGee
Corporation Benefits Restoration Plan

	9.
	Kerr-McGee
Corporation Chemical Division Nonqualified Retirement Plan

	10.
	Kerr-McGee
Corporation Annual Incentive Compensation Plan

	11.
	Kerr-McGee
Corporation Performance Share Plan*

	12.
	Kerr-McGee
Corporation 2005 Long Term Incentive Plan**

	13.
	Kerr-McGee
Corporation SCORE Compensation Program

	14.
	Kerr-McGee
Corporation 2005 Special Involuntary Termination Plan for U.S. Non-Bargaining Employees

	15.
	Kerr-McGee
Corporation 2005 Retention Program dated April 1, 2005

	16.
	Kerr-McGee
Corporation 2005 Success Bonus Program dated April 1, 2005

	17.
	Kerr-McGee
Corporation Continuity Agreements with Key Employees

	18.
	UMWA
Combined Benefit Fund (no plan document)

	19.
	Medicare
Part B Premiums paid for 43 former Southwest Refining employees (no plan document) 

	*
	The
Kerr-McGee Performance Share Plan has been terminated, but there remain outstanding awards granted under this plan.

	**
	This
is the current long term incentive plan. There are predecessor incentive plans that have been terminated, but which have outstanding awards. 

Schedule I-1

  

 
 

SCHEDULE II
  KERR-McGEE NON-U.S. EMPLOYEE BENEFIT PLANS, POLICIES, AND PROGRAMS    
    

	Australia Plans:	Kerr-McGee Western Australia PLC Superannuation Plan

2002 Long Term Incentive Sub-Plan
	
Austria Plans:	

Basic Pension Plan (Victoria—pension scheme)

Accident Insurance

Sickness / Medical / Long Term Care Insurance
	
Belgium Plans:	

Plannen Leven en Overlijden, Bediendenpersoneel (Retirement & Death in service of salaried employees including managers)

Plannen Leven en Overlijden, Arbeiderspersoneel (Retirement & Death in service for hourly employees)

Plannen Leven en Overlijden, Kaderpersoneel (Supplementary Plan for Retirement & Death benefits while in service for managers)

Overeenkomst Invaliditeitsrente (Disability Insurance)

Plan Gezondheidszorgen-de Kaders (Medical Plan for managers)

Plan Gezondheidszorgen-Bedienden en Arbeiders (Medical Plan for salaried and hourly employees)

Europ Assistance (Travel Assistance and Repatriation for selected managers)

Accident Insurance for salaried and hourly employees
	
Germany Plans:	

Betriebliche Grundrente (Basic Pension Plan—Former Bayer Employees)

Betriebliche Grundversorgung (Basic Pension Plan—KM Employees joining after 3-31-98)

Betriebliche Zusatzrente (Supplementary Pension Plan—Former Bayer Employees)

Betriebliche Zusatzversorgung (Supplementary Pension Plan—KM Employees joining after 3-31-98)

Einzelvertragliche Penslonszuasage (Individual Pension Promise for key managers)

Unfallversicherung (Accident Insurance)

Krankenversicherung (Sickness/Medica/Long Term Care Insurance)

Sterbageldversicherung (Funeral Insurance—i.e. death benefit)

Gnbadenquartelzahlungen (Special Death Benefits for salary continuation on death in service)

Vermogenswirksmeleistung (Savings Benefit)

Altersteilzeit (Partial Retirement)

Vorruhestand (Special Retirement Bridge Benefit)

2002 Long Term Incentive Sub-Plan
	
Italy Plans:	

Basic Pension Plan (Fonte—pension scheme)

Accident Insurance

Sickness / Medical / Long Term Care Insurance

Schedule II-1

 

	Netherlands Plans:	Billiton—regeling (extra pension plan: if employed before January 1, 1976)

Pensioenregeling (Pension Plan)

Regaling Vervroegd Uittreden (Early Retirement Plan-VUT)

Spaarregelingen (Saving Plans)

Wao Excedent Regaling (Disability Excedent Insurance)

Wao Hiaatverzekering (Disability Gap Insurance)

Collectieve Ziektekostenverzekering (Medical Costs Insurance)

Dienstreisverzekering (Business Trip Insurance)

Collectieve Ongevallen Verzekering (Collective Incident Insurance)

Anw Hiaatverzekering (Widow/Orphan Gap Insurance)

2002 Long Term Incentive Sub-Plan
	
Singapore Plans:	

Group Term Life Insurance

Group Personal Accident Insurance

Group Hospital & Surgical Insurance

Group Travel Insurance
	
Switzerland Plans:	

Retirement Plan

Accident and Salary Continuance Insurance

2002 Long Term Incentive Sub-Plan
	
UK Plans:	

Private Patients Plan (PPP)

Kerr-McGee North Sea (U.K.) Limited Pension Scheme

Final salary scheme

Additional Voluntary contributions

Death in Service cover

Spouse/Dependant cover

Kerr-McGee North Sea (U.K.) Limited Permanent Health Insurance

Kerr-McGee North Sea (U.K.) Limited Share Scheme

Schedule II-2

QuickLinks

EXHIBIT 10.4

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

ARTICLE 11. GENERAL AND ADMINISTRATIVE PROVISIONS

ARTICLE 12. MISCELLANEOUS

SCHEDULE I KERR-McGEE U.S. EMPLOYEE BENEFIT PLANS, POLICIES, AND PROGRAMS

SCHEDULE II KERR-McGEE NON-U.S. EMPLOYEE BENEFIT PLANS, POLICIES, AND PROGRAMS

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