EXHIBIT 10.37
AMENDED AND RESTATED PARENT AGREEMENT AMONG LYONDELL, THE COMPANY, OCCIDENTAL,
OXY CH CORPORATION, OCCIDENTAL CHEMICAL CORPORATION, AND EQUISTAR
EXECUTION COPY
AMENDED AND RESTATED PARENT AGREEMENT
AMONG
OCCIDENTAL CHEMICAL CORPORATION,
OXY CH CORPORATION,
OCCIDENTAL PETROLEUM CORPORATION,
LYONDELL PETROCHEMICAL COMPANY,
MILLENNIUM CHEMICALS INC.
AND
EQUISTAR CHEMICALS, LP
TABLE OF CONTENTS
PAGE
APPENDICES
Appendix A List of Related Agreements
Appendix B Dispute Resolution Procedures
AMENDED AND RESTATED PARENT AGREEMENT
This Amended and Restated Parent Agreement (this "Agreement") is made as of
this 15th day of May, 1998 among Occidental Chemical Corporation, a New York
corporation ("OCC"), Oxy CH Corporation, a California corporation ("Oxy CH"),
Lyondell Petrochemical Company, a Delaware corporation ("Lyondell"), Millennium
Chemicals Inc., a Delaware corporation ("Millennium"), Occidental Petroleum
Corporation, a Delaware corporation ("OPC"), and Equistar Chemicals, LP, a
Delaware limited partnership (the "Partnership," and together with OCC, Oxy CH,
Lyondell, Millennium and OPC, the "Parties").
WHEREAS, except as provided in Section 3, OCC and Oxy CH, taken together and
jointly and severally, are the "Occidental Parent" for purposes of this
Agreement, and the Occidental Parent (except as provided in Section 3), Lyondell
and Millennium are each a "Parent" for purposes of this Agreement.
WHEREAS, Lyondell Petrochemical G.P. Inc. ("Lyondell GP") and Lyondell
Petrochemical L.P. Inc. ("Lyondell LP" and, together with Lyondell GP, the
"Lyondell Partner Subs") are both Delaware corporations and direct or indirect
wholly owned subsidiaries of Lyondell.
WHEREAS, Millennium Petrochemicals GP LLC ("Millennium GP") and Millennium
Petrochemicals LP LLC ("Millennium LP" and, together with Millennium GP, the
"Millennium Partner Subs") are both Delaware limited liability companies and
direct or indirect wholly owned subsidiaries of Millennium.
WHEREAS, PDG Chemical Inc. ("Occidental GP") and Occidental Petrochem
Partner 2, Inc. ("Occidental LP2") are both Delaware corporations and direct or
indirect wholly owned subsidiaries of Oxy CH; Occidental Petrochem Partner 1,
Inc. ("Occidental LP1" and, together with Occidental GP and Occidental LP2, the
"Occidental Partner Subs") is a Delaware corporation and a wholly owned
subsidiary of OCC; and Oxy CH and OCC are both direct or indirect wholly owned
subsidiaries of OPC.
WHEREAS, for purposes of this Agreement, the Occidental Partner Subs are the
Partner Subs of the Occidental Parent.
WHEREAS, pursuant to the terms of the Master Transaction Agreement dated as
of July 25, 1997 between Lyondell and Millennium (the "Initial Master
Transaction Agreement"), the Partnership was formed under the laws of the State
of Delaware pursuant to the Limited Partnership Agreement dated October 10, 1997
(the "Old Partnership Agreement"), with
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Lyondell GP and Millennium GP as the general partners and Lyondell LP and
Millennium LP as the limited partners of the Partnership.
WHEREAS, in connection with the closing of the transactions contemplated by
the Initial Master Transaction Agreement, Lyondell and Millennium entered into
the Parent Agreement with the Partnership dated as of December 1, 1997 (the
"Initial Parent Agreement"), providing for, among other things, certain
guarantees of performance by their respective Affiliated Obligors (as defined
therein) and for certain restrictions on the transfer of their respective
Partner Sub Stock (as defined therein);
WHEREAS, the Partnership, OPC, Lyondell and Millennium entered into a Master
Transaction Agreement dated May 15, 1998 (the "Second Master Transaction
Agreement"), providing for, among other things, the admission of the Occidental
Partner Subs as partners in the Partnership. The Occidental Partner Subs,
together with any other Affiliate of the Occidental Parent that is a party to
any of the Related Agreements (as defined herein), are referred to herein as the
"Occidental Affiliated Obligors." The Lyondell Partner Subs, together with any
other Affiliate of Lyondell that is a party to any of the Related Agreements,
are referred to herein as the "Lyondell Affiliated Obligors." The Millennium
Partner Subs, together with any other Affiliate of Millennium that is a party to
any of the Related Agreements, are referred to herein as the "Millennium
Affiliated Obligors." The Occidental Affiliated Obligors, the Lyondell
Affiliated Obligors and the Millennium Affiliated Obligors, collectively or
individually as the context may require, are referred to herein as the
"Affiliated Obligors." The Occidental Partner Subs, the Lyondell Partner Subs
and the Millennium Partner Subs, collectively or individually as the context may
require, are referred to herein as the "Partner Subs."
WHEREAS, in connection with the closing of the transactions effected
pursuant to the Initial Master Transaction Agreement and to be effected in
connection with the closing of the Second Master Transaction Agreement, the
Parents and certain of their respective Affiliates, have entered into or are
entering into various agreements and other legal documents, including the
Amended and Restated Limited Partnership Agreement of the Partnership dated as
of the date of this Agreement (the "Partnership Agreement"), the Agreement and
Plan of Merger and Asset Contribution dated as of the date of this Agreement
(the "Occidental Contribution Agreement") among the Partnership, the Occidental
Partner Subs and Oxy Petrochemicals Inc. ("OPI"), services agreements and other
asset contribution agreements, as applicable (including this Agreement, the
"Related Agreements"), each of which is integrally related to the capitalization
or operations of the Partnership and is listed on Appendix A hereto. The Related
Agreements (other than this Agreement) and any additional agreements that may
from time to time be added to Appendix A hereto by agreement of the Parents, as
they may in the future be amended, supplemented, restated or otherwise modified,
are referred to herein as the "Other Agreements". The Other Agreements to be
entered into in connection with the Second Master Transaction Agreement are
herein called the "Additional Other Agreements".
WHEREAS, the Parties desire to amend and restate the Initial Parent
Agreement in connection with the admission of the Occidental Partner Subs to the
Partnership and the closing of the other transactions contemplated by the Second
Master Transaction Agreement.
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WHEREAS, this Agreement is essential to the consummation of the closing
pursuant to the Second Master Transaction Agreement and the entering into and
effectiveness of the Additional Other Agreements and each of the parties to such
agreements is relying on this Agreement in connection with entering into each of
the Additional Other Agreements.
WHEREAS, this Agreement provides for the continuation of obligations and
restrictions set forth in the Initial Parent Agreement, which were essential to
the consummation of the closing pursuant to the Initial Master Transaction
Agreement and the entering into and effectiveness of the Other Agreements
entered into in connection therewith.
WHEREAS, each Parent is willing, solely for the benefit of the Beneficiaries
(as defined below in Section 1.11) and their successors and assigns, to
guarantee the performance by its Affiliated Obligors of certain of the
obligations of such Affiliated Obligors as set forth in this Agreement.
WHEREAS, each Parent is willing to subject the Partner Sub Stock (as defined
herein) to certain restrictions on transfer, as set forth in this Agreement.
WHEREAS, OPC is willing to (i) indemnify the Partnership from certain
potential liabilities that the Partnership would not otherwise be subject to but
for the merger of OPI with and into the Partnership, and (ii) agree to certain
other covenants in connection with the closing of the transactions contemplated
by the Second Master Transaction Agreement.
NOW THEREFORE, in, consideration of the foregoing and the mutual promises
and covenants of the Parties hereto, the Parties hereby agree as follows:
Each Parent hereby unconditionally, absolutely and irrevocably guarantees,
undertakes and promises to cause, as herein provided, the due and punctual
payment and the full and prompt performance by its Affiliated Obligors of all of
the amounts to be paid and all of the terms and provisions to be performed or
observed by or on the part of its Affiliated Obligors under the Other Agreements
in accordance with the terms thereof (all such terms and provisions as now or
hereafter in existence being collectively called the "Obligations") as follows:
in the event that its Affiliated Obligors shall fail in any manner whatsoever to
pay, perform or observe any of their Obligations, when and as the same shall be
required to be paid, performed or observed under the terms of the Other
Agreements, such Parent will itself duly and punctually pay, or fully and
promptly perform or observe, as the case may be, such Obligations, or cause the
same to be duly and punctually paid, or fully and promptly performed or
observed, in each case as if such Parent were itself the obligor with respect to
such Obligations under the Other Agreements. Insofar as this Section 1.1 relates
to the obligations of an Affiliated Obligor under the Partnership Agreement, no
Parent shall be required to make, or cause a Partner Sub to make, any
contribution to the Partnership that such Partner Sub is not otherwise required
to make pursuant to the terms of Section 2.3, 2.4, or 12.2(d)(ii) of the
Partnership Agreement. Insofar as this Section 1.1 applies to Other Agreements
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other than the Partnership Agreement, the term "Affiliated Obligors" will not
include the Partnership nor any partner in the Partnership in its capacity as
such. Notwithstanding the foregoing, this Section 1.1 shall not apply to
Obligations that are within the scope of Section 1.2.
Each Parent acknowledges that the Partnership Agreement sets forth
definitions of "Conflicted General Partner" and "Nonconflicted General
Partner," and provides that the Nonconflicted General Partners (whether one or
more) have certain exclusive rights to control the Partnership with respect
to any Conflict Circumstance (as defined in the Partnership Agreement); and
accordingly, without limiting the rights of its Partner Subs under Section
6.8 of the Partnership Agreement, and without prejudice to any rights, remedies
or defenses the Partnership may have in respect of any such Other Agreement or
Conflict Circumstance, each Parent hereby agrees to cause its Partner Subs
(i) to cause the Partnership to pay, perform and observe all of the Obligations
to be paid, performed or observed by or on the part of the Partnership under
the Other Agreements, in accordance with the terms thereof, to the extent that
such Partner Sub is a Nonconflicted General Partner and is thereby entitled to
cause the payment, performance and observance of such Obligations and
(ii) except to the extent inconsistent with its obligations under Section
1.2(i), to abide by its obligations as a Nonconflicted General Partner with
respect to any Conflict Circumstance arising in connection with any Other
Agreement in accordance with the terms of the Partnership Agreement applicable
thereto; provided, however, that each Parent's responsibility under this
Section 1.2 for a failure of the Partnership to pay, perform or observe its
Obligations under the Other Agreements shall be limited to the circumstances
in which the Partnership's failure to so pay, perform or observe its obligations
under the Other Agreements was directly caused by an act or failure to act of
its Partner Sub, provided, further, that nothing in this Section 1.2 shall
require a Parent to make or cause such Partner Sub (i) to cure or mitigate any
inability of the Partnership to make any payment or to perform or observe any
Obligations under any Other Agreements, (ii) to cause the Partnership to require
from the Partner Subs any cash contributions in respect of any payment,
performance or observance involved in such Conflict Circumstance, or (iii) to
make any contribution to the Partnership that such Partner Sub is not otherwise
required to make pursuant to Section 2.3, 2.4, or 12.2(d)(ii) of the Partnership
Agreement.
It shall not be a condition to the guarantees and agreements set forth in
Sections 1.1 and 1.2 above (together, the "Guarantee") that a Beneficiary shall
have first made any request of or demand upon, or given any notice of the
occurrence of a default under the Other Agreements or any other notice
whatsoever to, any Parent or its Affiliated Obligors or any other Person, or
shall have instituted any action or proceeding against any Affiliated Obligor or
any other Person in respect thereof, or shall have joined any Affiliated Obligor
or the Partnership in any such action or proceeding. A Beneficiary in asserting
the benefit of the Guarantee shall give prompt notice to a Parent of any failure
by its Affiliated Obligors or the Partnership to pay, perform or observe any
Obligation; provided, however, that any failure, delay or defect in the giving
of such notice shall not alter or affect the Guarantee under this Agreement.
Each Parent further agrees that this Agreement, insofar as it constitutes a
guarantee of monetary Obligations, constitutes a guarantee of payment when due
and not of collection, and each Parent waives any right to require as a
condition to its Guarantee that any resort be had by a Beneficiary to any
security held for the payment of any Obligations.
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The Guarantee is and shall remain absolute and unconditional irrespective of
any circumstance that might otherwise constitute a legal or equitable discharge
of a surety or guarantor, as the case may be, with respect to its Guarantee.
Each Parent hereby waives, with respect to the Guarantee but without
prejudice to the rights of the parties to the Other Agreements, any notice of
acceptance of this Agreement, grace, presentment, demand, protest, notice
of the occurrence of a default under the Other Agreements and any other notice
of any kind whatsoever and promptness in making any claim or demand hereunder.
The Guarantee shall not be affected by (i) the failure of a Beneficiary to
assert any claim or demand or to enforce any right or remedy under the
provisions of any of the Other Agreements or any agreement related thereto
or otherwise, (ii) any extension or renewal of any of the Other Agreements
or any agreement related thereto, (iii) any rescission, waiver, amendment or
modification of any of the terms or provisions of any of the Other Agreements
or of any agreement related thereto, including, without limitation, any change
in the time, manner or place of payment or performance of any of the obligations
under the Other Agreements, or (iv) the release of any security held for payment
of any Obligations.
The Guarantee shall not be subject to any reduction, limitation, impairment
or termination for any reason, including, without limitation, any claim of
waiver, release, surrender, alteration or compromise, and shall not be subject
to any defense or set-off, counterclaim, recoupment or termination whatsoever,
except as provided in Section 1.10.
Notwithstanding anything herein to the contrary, a Beneficiary may proceed
to enforce the Guarantee without first pursuing or exhausting any right or
remedy that it or any of its successors or assigns may have against any
Affiliated Obligor or any Parent or any other person.
The Guarantee shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of any Obligation of an
Affiliated Obligor is rescinded or must otherwise be restored or returned by the
Person receiving such payment upon the insolvency, bankruptcy or reorganization
of an Affiliated Obligor, all as though such payment or part thereof had not
been made.
Nothing herein is intended to deny to any Parent, and it is expressly agreed
that each Parent shall have and may assert, any and all of the defenses,
set-offs, counterclaims and other rights (other than those relating to
insolvency, bankruptcy or reorganization as described in Section 1.9) with
regard to any Obligations that its Affiliated Obligors may possess except any
defense its Affiliated Obligors may possess relating to lack of validity or
enforceability of the Other Agreements or any other agreement or instrument
relating thereto as against its Affiliated Obligors arising from the defective
incorporation or other defective organization of its Affiliated Obligors, their
lack of qualification to do business in any applicable jurisdiction or their
defective corporate or other organizational authority to enter into, deliver or
perform the Other Agreements.
Section 1 of this Agreement shall inure solely to the benefit of the
Beneficiaries, each of whom has the right to enforce the Guarantee against the
Parents, and nothing in this Agreement, express or implied, is intended to or
shall confer upon any other Person any rights, benefits or remedies of any
nature whatsoever under or by reason of this Agreement. As used in this
Agreement, "Beneficiaries" shall mean (i) as to any obligations of the
Occidental Parent, except for its
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obligations pursuant to Section 1.1 hereof with respect to the Partnership
Agreement, the Partnership, Lyondell, the Lyondell Affiliated Obligors,
Millennium and the Millennium Affiliated Obligors, (ii) as to any obligations of
Millennium, except for its obligations pursuant to Section 1.1 hereof with
respect to the Partnership Agreement, the Partnership, the Occidental Parent,
the Occidental Affiliated Obligors, Lyondell and the Lyondell Affiliated
Obligors, (iii) as to any obligations of Lyondell, except for its obligations
pursuant to Section 1.1 hereof with respect to the Partnership Agreement, the
Partnership, the Occidental Parent, the Occidental Affiliated Obligors,
Millennium and the Millennium Affiliated Obligors, and (iv) as to any
obligations of any Parent pursuant to Section 1.1 hereof with respect to the
Partnership Agreement, the other Parents. As used in this Agreement, the term
Parent includes any successor or transferee of the Parent, and the term
Affiliated Obligors includes any successor to or transferee of the Affiliated
Obligors' interest in the Partnership permitted pursuant to the Partnership
Agreement.
(a) Each Parent shall at all times maintain a GAAP Net Worth in an amount
sufficient to satisfy its known and potential obligations under this Agreement.
(b) Each Parent agrees that, as of the end of each fiscal quarter, either
(i) the excess of its GAAP Net Worth at such time over its Partnership
Investment at such time or (ii) the excess of its Equity Market Capitalization
at such time over its Adjusted Partnership Investment at such time, shall be at
least $250 million.
(c) The term "GAAP Net Worth" means, for a Parent at any time, such
Parent's consolidated stockholders equity, determined in accordance with
generally accepted accounting principles ("GAAP"), as of the end of its most
recent fiscal quarter. The term "Equity Market Capitalization" means, for a
Parent at any time, (x) the aggregate market value of such Parent's outstanding
publicly traded equity securities, as of the end of its most recent fiscal
quarter (based on the average closing price for the most recent 20 trading days
on the principal stock exchange on which such securities are traded) plus (y)
the amount of stockholders equity, determined in accordance with GAAP,
attributable at such time to any equity securities of such Parent that are not
publicly traded. The term "Partnership Investment" means, for a Parent at any
time, its investment in the Partnership, determined in accordance with GAAP as
of the end of the most recent fiscal quarter. The term "Adjusted Partnership
Investment" means, for a Parent at any time, (A) Lyondell's investment in the
Partnership, determined in accordance with GAAP as of the end of the most recent
fiscal quarter, multiplied by (B) a fraction the numerator of which is the
aggregate Percentage Interest at such time of the Partner Subs owned by the
Parent whose Partnership Investment is being determined and the denominator of
which is the aggregate Percentage Interest at such time of the Partner Subs
owned by Lyondell. The term "Percentage Interest" is used as defined in the
Partnership Agreement.
(d) The provisions of Section 1.12(b) shall expire as to a Parent at such
time after the seventh anniversary of the Closing Date at which no material
Seven Year PCCL Claim (as defined in the Asset Contribution Agreement (as
defined in the Partnership Agreement) applicable to such Parent, its Affiliated
Obligors or, if applicable, its predecessor Parent or its Affiliated Obligors)
is outstanding against such Parent, any of its Affiliated Obligors or, if
applicable, its predecessor Parent or its Affiliated Obligors.
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(a) Each Parent agrees that except as otherwise provided below in this Section
2.1 or Section 2.2 or with the written consent of each of the other Parents,
which consent may be granted or withheld in such Parent's sole discretion, it
will not, in any transaction or series of transactions, directly or indirectly,
(i) sell, assign or otherwise in any manner dispose of, whether by act, deed,
merger or otherwise ("Transfer") or (ii) mortgage, pledge, encumber or create or
suffer to exist any pledge, lien or encumbrance upon or security interest in
("Pledge"), all or any part of the capital stock (including any securities
convertible into or exchangeable for or carrying any rights to purchase,
subscribe for or otherwise acquire any such capital stock) of its Partner Subs
(collectively, the "Partner Sub Stock"). (Each of the defined terms
"Transfer" and "Pledge" is used herein both as a noun and as a verb.) Any
attempt by a Parent to Transfer or Pledge all or a portion of its Partner Sub
Stock in violation of this Agreement shall be void ab initio and shall not be
effective to Transfer such Partner Sub Stock or any portion thereof. The
Partnership Agreement contains provisions relating to the Transfer and Pledge
of the Partner Subs' direct interests in the Partnership.
(b) Each Parent agrees that all certificates representing shares of Partner
Sub Stock, whether currently owned or hereafter acquired, shall carry the
following legend, which legend each Parent agrees to cause to be placed thereon
and to cause to remain thereon as long as such shares are subject to the
restrictions of this Agreement:
THE SALE, ASSIGNMENT, PLEDGE OR OTHER TRANSFER OR HYPOTHECATION OF THE
STOCK REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS
PURSUANT TO AND MAY NOT BE EFFECTED EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF AN AGREEMENT BINDING UPON THE OWNER OF THE STOCK REPRESENTED
HEREBY. THE OWNER OR ISSUER WILL FURNISH A COPY OF SUCH AGREEMENT TO ANY
PROPOSED TRANSFEREE OR PLEDGEE WITHOUT CHARGE UPON REQUEST.
(c) Without the need for the consent of any Person, any Parent may Transfer
its Partner Sub Stock to any wholly-owned Affiliate of such Parent or of a
common parent.
(d) Without the need for the consent of any Person, each Parent (other than
OCC or Oxy CH) may Transfer all (but not less than all) of its Partner Sub
Stock, if such Transfer is in connection with (i) a merger, consolidation,
conversion or share exchange of such Parent or (ii) a sale or other disposition
of (x) the Partner Sub Stock plus (y) other assets representing at least
fifty-percent (50%) of the book value of such Parent's assets excluding the
Partner Sub Stock, as reflected on its most recent audited consolidated (or
combined) financial statements; provided, however, that the Successor Parent, if
any, (A) shall succeed to and be substituted for such Parent, with the same
effect as if it had been named herein and (B) shall execute an instrument
wherein such Successor Parent shall agree to be bound by the obligations of such
Parent under this Agreement, with the same effect as if it had been named
herein, whereupon, unless such Parent shall become a direct or indirect
subsidiary of such Successor Parent, such Parent shall thereupon be released
from all obligations under Sections 1, 2 and 4 of this Agreement.
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(e) Without the need for the consent of any Person, OCC may Transfer all
(but not less than all) of its Partner Sub Stock, if such Transfer is in
connection with:
(i) a merger, consolidation, conversion or share exchange of OCC,
(ii) a sale or other disposition of (x) the Partner Sub Stock plus (y)
other assets representing at least fifty percent (50%) of the
book value of Oxy CH's assets excluding the Partner Sub
Stock, as reflected on its most recently unaudited
consolidated (or combined) financial statements, or
(iii) any Transfer permitted by Section 2.1(f);
and following the consummation of any such transaction, the Partner Sub
Stock held directly or indirectly by OCC and Oxy CH on the date hereof
shall be held by the same transferee or one or more transferees that are
wholly-owned Affiliates of each other or of a common parent entity;
provided, however, that the Successor Parent, if any, (A) shall succeed to
and be substituted for OCC, with the same effect as if it had been named
herein, and (B) shall execute an instrument wherein such Successor Parent
shall agree to be bound by the obligations of OCC hereunder, with the same
effect as if it had been named herein, whereupon, unless OCC shall become a
direct or indirect subsidiary of such Successor Parent, OCC shall thereupon
be released from all obligations under Sections 1, 2 and 4 of this
Agreement.
(f) Without the need for the consent of any Person, Oxy CH may Transfer all
(but not less than all) of its Partner Sub Stock, if such Transfer is in
connection with:
(i) a merger, consolidation, conversion or share exchange of Oxy CH,
(ii) a sale or other disposition of (A) the Partner Sub Stock plus (B)
other assets representing at least fifty percent (50%) of the
book value of Oxy CH's assets excluding the Partner Sub
Stock, as reflected on its most recently prepared unaudited
consolidated (or combined) financial statements, or
(iii) any Transfer permitted by Section 2.1(e) or (g);
and following the consummation of any such transaction, the Partner Sub
Stock held directly or indirectly by OCC and Oxy CH on the date hereof
shall be held by the same transferee or one or more transferees that are
wholly-owned Affiliates of each other or of a common parent entity;
provided, however, that the Successor Parent, if any, (A) shall succeed to
and be substituted for Oxy CH, with the same effect as if it had been named
herein, and (B) shall execute an instrument wherein such Successor Parent
shall agree to be bound by the obligations of Oxy CH hereunder, with the
same effect as if it had been named herein, whereupon, unless Oxy CH shall
become a direct or indirect subsidiary of such Successor Parent, Oxy CH
shall thereupon be released from all obligations under Sections 1, 2 and 4
of this Agreement.
(g) Nothing in this Agreement shall prevent or restrict the Transfer or
Pledge of the capital stock, equity ownership interests or other securities of a
Parent (or, in the case of the Occidental Parent, either of OCC or Oxy CH), and
no such Transfer or Pledge of securities issued by a Parent (or, in the case of
the Occidental Parent, either of OCC or Oxy CH) shall be deemed to constitute a
Transfer or Pledge of Partner Sub Stock hereunder; provided that, (i) in the
event of a Transfer in the form of a transaction described in clause (i) of
Section 2.1(d), (e) or
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(f), the Successor Parent, if any, shall execute an instrument to the effect
described in clause (B) of Section 2.1(d), (e) or (f), as applicable, and (ii)
following the consummation of any such Transfer or Pledge of securities of a
Parent, all the Partner Sub Stock of such Parent shall be held by the same
transferee or one or more transferees that are wholly-owned Affiliates of each
other or of a common parent entity or shall be Pledged to the same pledgee or
pledgees.
(h) For purposes of this Section 2.1, the term "Successor Parent" shall mean
the acquiring, succeeding or surviving entity in any transaction contemplated by
Section 2.1 (d), (e) or (f) that owns the applicable Partner Sub Stock following
such transaction, if other than a Parent.
(i) Each Parent may Pledge all (but not less than all) of its Partner Sub
Stock to any one or more Approved Lenders; provided that the Pledge shall be
evidenced by an instrument, reasonably satisfactory to the Partnership, wherein
the Approved Lender receiving such Pledge shall agree that in the event such
Approved Lender obtains a right of foreclosure on such Parent's Partner Sub
Stock, such Approved Lender will foreclose on the Partner Sub Stock of each of
such Parent's Partner Subs equally so that such Approved Lender will in all
events hold equal portions of Partner Sub Stock of Occidental GP, Occidental LP1
and Occidental LP2, Lyondell GP and Lyondell LP or Millennium GP and Millennium
LP, as the case may be. An "Approved Lender" shall be any bank, insurance
company, investment bank or other financial institution that is regularly
engaged in the business of making loans.
(a) Without the consent of each of the other Parents, no Parent may
Transfer less than all of its Partner Sub Stock, and unless such Transfer is
otherwise permitted by Section 2.1, no Parent may Transfer its Partner Sub Stock
for consideration other than cash. Unless such Transfer is otherwise permitted
by Section 2.1, any Parent (the "Selling Parent") desiring to Transfer all of
its Partner Sub Stock to any person (including another Parent or any Affiliate
thereof) shall give written notice (the "Initial Notice") to the Partnership and
each of the other Parents (the "Offeree Parents") stating that the Selling
Parent desires to Transfer its Partner Sub Stock and stating the cash purchase
price and all other terms on which it is willing to sell (the "Offer Terms").
Delivery of an Initial Notice shall constitute the irrevocable offer of the
Selling Parent to sell its Partner Sub Stock to the Offeree Parents hereunder.
(b) Each Offeree Parent shall have the option, exercisable by delivering
written notice (the "Acceptance Notice") of such exercise to the Selling Parent
within 45 days of the date of the Initial Notice, to elect to purchase its pro
rata share in the case of both of the limited partner and the general partner
(based on the ratio of the number of Units held by its Partner Subs to the
number of Units held by all of the Partner Subs of the Offeree Parents or on any
other basis that shall be mutually agreed upon between the Offeree Parents
delivering an Acceptance Notice) of all of the Partner Sub Stock of the Selling
Parent on the Offer Terms described in the Initial Notice. If one Offeree
Parent, but not the other, elects to so purchase, the Selling Parent shall give
written notice thereof (the "Additional Notice") to the Offeree Parent electing
to purchase and such Parent shall have the option, exercisable by delivery of an
Acceptance Notice, of such exercise to the Selling Parent within 15 days of such
notice, to purchase all of the Partner Sub Stock held by the Selling Parent,
including the Partner Sub Stock it has not previously elected to
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purchase; provided, however, that any election by an Offeree Parent not to
purchase all such Partner Sub Stock shall be deemed a rescission of such Offeree
Parent's original Acceptance Notice and an election not to purchase any of the
Partner Sub Stock of the Selling Parent. Each Acceptance Notice shall set a date
for closing the purchase, such date to be not less than 30 nor more than 90 days
after delivery of the Acceptance Notice; provided that such time period shall be
subject to extension as reasonably necessary (up to a maximum of an additional
120 days after such 90 day period) in order to comply with any applicable filing
and waiting period requirements under the ▇▇▇▇-▇▇▇▇▇-▇▇▇▇▇▇ Antitrust
Improvements Act. The closing shall be held at the Partnership's offices. The
purchase price for the Selling Parent's Partner Sub Stock shall be paid in cash
delivered at the closing. The purchase shall be consummated by appropriate and
customary documentation (including the giving of representations and warranties
substantially similar to (i) in the case of Lyondell or Millennium, those set
forth in Sections 2.1 through 2.4 of the Initial Master Transaction Agreement,
and in the case of the Occidental Parent, those set forth in Section 2.2 of the
Second Master Transaction Agreement, and (ii) customary representations and
warranties regarding the Selling Parent's title to its Partner Sub Stock).
(c) If one or both of the Offeree Parents does not elect to purchase all of
the Selling Parent's Partner Sub Stock within 45 days after the receipt of the
Initial Notice or within 15 days after the receipt of the Additional Notice, if
applicable, the Selling Parent shall have a further 180 days during which it
may, subject to Sections 2.2(d) and (e), consummate the sale of its Partner Sub
Stock to a third party purchaser at a purchase price and on such other terms
that are no more favorable to such purchaser than the Offer Terms. If the sale
is not completed within such further 180-day period, the Initial Notice shall be
deemed to have expired and a new notice and offer shall be required before the
Selling Parent may make any Transfer of its Partner Sub Stock.
(d) Before the Selling Parent may consummate a Transfer of its Partner Sub
Stock to a third party in accordance with this Agreement, the Selling Parent
shall demonstrate to the other two Parents that such proposed purchaser (or the
Person willing to serve as its guarantor as contemplated by Section 2.2(e)) has
outstanding indebtedness that is rated investment grade by either ▇▇▇▇▇'▇
Investor Services Inc. or Standard & Poor's Ltd, or if such proposed purchaser
(or such other Person) has no rated indebtedness outstanding, such Person shall
provide an opinion from one of such entities or from a nationally recognized
investment banking firm that it could be reasonably expected to obtain such a
rating.
(e) Notwithstanding the foregoing provisions of this Section 2.2, a Parent
may Transfer its Partner Sub Stock (other than pursuant to Section 2.1) only if
all of the following occur:
(i) The Transfer is accomplished in a non-public offering in
compliance with, and exempt from, the registration and qualification
requirements of all federal and state securities laws and regulations.
(ii) The Transfer does not cause a default under any material
contract which has been approved unanimously by the Partnership
Governance Committee (as defined in the Partnership Agreement) and to
which the Partnership is a party or by which the Partnership
or any of its properties is bound.
11
(iii) The transferee executes an appropriate agreement to be
bound by this Agreement.
(iv) The transferor and/or transferee bears all reasonable costs
incurred by the Partnership in connection with the Transfer.
(v) The transferee (or the guarantor of the obligations of the
transferee) satisfies the criteria set forth in Section 2.2(d) and
delivers an agreement to each of the other Parents and the Partnership
substantially in the form of this Agreement.
(vi) The proposed transferor is not in default in the timely
performance of any of its material obligations to the Partnership.
(vii) The provisions of Section 2.2(f) are satisfied.
(f) No Parent may Transfer the Partner Sub Stock of any of its Partner Subs
to any Person unless such Parent simultaneously Transfers the Partner Sub Stock
of its other Partner Sub or Partner Subs (if the Parent has more than one
Partner Sub), to such Person or a wholly-owned Affiliate of such Person or of a
common parent.
Each Parent hereby agrees that it will not, without the written consent of
each of the other Parents, permit any of its Affiliated Obligors (or their
successors or assigns) (i) to commence a voluntary action under the Federal
bankruptcy laws, as now or hereafter constituted, or any other applicable
Federal or State bankruptcy, insolvency or other similar law, (ii) to institute
a proceeding to be adjudicated a voluntary bankrupt, (iii) to consent to the
filing of a bankruptcy proceeding against it, (iv) to fail to contest a
bankruptcy proceeding against it, (v) to consent to the appointment of a
receiver, custodian, liquidator or trustee for it or for all or any substantial
portion of its property, (vi) in the case of its Partner Subs, to issue or sell
other than to such Parent any of its own Partner Sub Stock or (vii) to effect,
recognize or permit any transfer of any of its own Partner Sub Stock other
than in accordance with the provisions of Section 2 of this Agreement.
Each Parent agrees that (i) the business of its Partner Subs shall be
restricted solely to the holding of the respective interests in the Partnership
and the doing of things necessary or incidental in connection therewith, and
(ii) it will cause its Partner Subs not to own any assets, incur any liabilities
or engage, participate or invest in any business outside the scope of their
businesses as described in clause (i); provided, however, that this Section 2.4
shall not apply with respect to any wholly-owned Affiliates to whom such Partner
Subs shall transfer their respective interests in the Partnership if such
wholly-owned Affiliates are not bound by Section 9.6 of the Partnership
Agreement. Notwithstanding the foregoing provisions of this Section 2.4, this
Section 2.4 shall not prohibit any Partner Sub from incurring debt payable to
its Parent or an Affiliate as long as:
(i) such debt is not transferable (by contract or operation of law) to any
Person other than Parent or an Affiliate of Parent;
12
(ii) no payment on such debt is permitted or required to be made if at the time
of such payment such Partner Sub is in Default under (and as defined in)
the Partnership Agreement or by making such payment such Partner Sub would
not be able to perform its obligations under the Partnership Agreement.
Each Parent hereby agrees that it and its Affiliates shall not be entitled to,
and that the Partner Sub shall not be required to make, any payments on any such
debt payable by its Partner Sub if: (i) at the time of such payment such Partner
Sub is in Default under the Partnership Agreement, (ii) by making such payment
such Partner Sub would not be able to perform its obligations under the
Partnership Agreement, or (iii) such Parent is in default of its obligations
under Section 1.12 of this Agreement.
For purposes of this Section 3 only, the term "Parent" means and includes
OPC, Oxy CH, OCC, Lyondell and Millennium. Each Parent agrees that with respect
to each of the other Parents (each a "Subject Parent", provided that no Parent
shall be a "Subject Parent" from and after the expiration of 24 months from the
date on which such Parent and its Affiliates no longer hold an interest in the
Partnership; and provided, further, that none of OPC, Oxy CH or OCC is a Subject
Parent with respect to each other), neither it, nor any of its Affiliates shall,
without prior written invitation or request of another Subject Parent: (i) in
any manner acquire, agree to acquire or make any proposal to acquire, directly
or indirectly, any securities, assets or property of such other Subject Parent,
whether such agreement or proposal is made with or to such other Subject Parent
or a third party; (ii) make any unsolicited proposal to enter into, directly or
indirectly, any merger or other business combination involving such other
Subject Parent; (iii) make, or in any way participate, directly or indirectly,
in any "solicitation" of "proxies" (as such terms are used in the proxy rules of
the Securities and Exchange Commission) to vote, or seek to advise or influence
any person with respect to the voting of, any voting securities of such other
Subject Parent; (iv) form, join or in any way participate in a "group" (within
the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934) with
respect to any voting securities of such other Subject Parent; (v) otherwise
act, alone or in concert with others, to seek to control the management, Board
of Directors or policies of such other Subject Parent; (vi) disclose any
intention, plan or arrangement inconsistent with the foregoing; or (vii) advise,
encourage, provide assistance (including financial assistance) to or hold
discussions with any other persons in connection with any of the foregoing. Each
Parent also agrees during such period not to: (i) request that such other
Subject Parent (or its respective directors, officers, employees or agents),
directly or indirectly, amend or waive any provision of this Section 3.1
(including this sentence); or (ii) take any action which might reasonably be
expected to require that such other Subject Parent to make a public announcement
regarding the possibility of a business combination or merger.
Notwithstanding the provisions of Section 3.1:
(a) Any Parent may, by notice to another Parent, terminate the provisions
of Section 3.1 (as applied to the relationship between such two Parents, but not
as to their respective relationships with the third Parent) at any time within
30 days after the occurrence of any of the following events with respect to such
other Parent: (i) a Change of Control (as defined below) of
13
such other Parent shall have occurred, (ii) such other Parent shall have entered
into a definitive agreement providing for, or publicly announced its intention
to effect, any transaction involving a Change of Control of such other Parent or
(iii) a tender offer or exchange offer shall have been commenced or publicly
announced that, if consummated, would have the effect with respect to such other
Parent described in clause (c) of the definition of "Change of Control." A
"Change of Control" of a Parent shall mean the occurrence of any of the
following events: (a) there shall be consummated any consolidation, merger or
share exchange of such Parent (i) in which such Parent is not the continuing or
surviving Person (other than a consolidation, merger or share exchange with a
wholly owned subsidiary of such Parent in which all shares of common stock of
such Parent outstanding immediately prior to the effectiveness thereof are
changed into or exchanged for the same number of shares of common stock of such
subsidiary) or (ii) pursuant to which the common stock of such Parent is
converted into cash, securities or other property, other than, in each case, a
consolidation, merger or share exchange of such Parent in which the holders of
the common stock immediately prior to the consolidation, merger or share
exchange hold, directly or indirectly, at least a majority of the voting power
and common equity of the continuing or surviving Person immediately after such
consolidation, merger or share exchange; (b) such Parent's properties and assets
are sold or otherwise disposed of substantially as an entirety on a consolidated
basis to any Person or group of Persons in any one transaction or a series of
related transactions, other than as contemplated by the Initial Master
Transaction Agreement or the Second Master Transaction Agreement; or (c) any
Person or any Persons acting together which would constitute a "group" (as
defined in Section 3.1) (other than such Parent, any subsidiary of such Parent,
any employee stock purchase plan, stock option plan or other stock incentive
plan or program, retirement plan or automatic dividend reinvestment plan or any
substantially similar plan of such Parent or any subsidiary of such Parent or
any Person holding securities of such Parent for or pursuant to the terms of any
such employee benefit plan), together with any Affiliates thereof, shall acquire
beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of 50% or more of the voting stock of such Parent.
(b) The terms of the first sentence of Section 3.1 shall not be applicable
to the purchase and sale of any securities of a Parent by independent
third-party managers of any pension or other related employee benefit plans who
are acting as passive investors in such Parent.
OPC hereby agrees, to the fullest extent permitted by applicable law, to
indemnify, defend and hold harmless the Partnership and its Affiliates and their
respective officers, directors and employees from, against and in respect of any
Liability (as defined in Section 6.2(a) of the Occidental Contribution
Agreement) incurred or suffered by the Partnership or any of its Affiliates,
arising out of, in connection with, or relating to:
(a) all income taxes, and all interest and penalties incurred with respect
thereto, that are imposed on OPC or any member of its affiliated group; and
(b) any obligation arising under Title IV of ERISA (as defined in the
Occidental Contribution Agreement) with respect to any Employee Plan (as defined
in the Occidental Contribution Agreement) maintained by any Contributor (as
defined in the Occidental Contribution Agreement) or any member of a controlled
group (as defined in Section 414 of the Code (as defined in the Occidental
Contribution Agreement)) with the Contributor, but excluding obligations arising
under the ▇▇▇▇ Plan (as defined in the Occidental Contribution Agreement)
14
and obligations under the PDG Plan (as defined in the Occidental Contribution
Agreement with respect to funding requirements arising after the Closing Date.
(a) From the date hereof through the twenty-fifth anniversary hereof, each
of OPC, Lyondell and Millennium (an "Indemnifying Party") hereby agrees, to the
fullest extent permitted by applicable law, to indemnify, defend and hold
harmless the Partnership, its partners, their Affiliates and their respective
officers, directors, and employees (collectively, the "Indemnified Parties")
from, against and in respect of any Liability incurred by any of the Indemnified
Parties arising out of, in connection with, or relating to, any Third Party
Claim (as defined in the Occidental Contribution Agreement) (whether in
contract, tort, statute or otherwise) arising out of, in connection with, or
relating to the failure of the Indemnifying Party or any of its Affiliates to
give notice to, obtain any consent of, or obtain any waiver by, or any breach by
the Indemnifying Party or any of its Affiliates of any obligation owing to, any
Person (as defined in the Occidental Contribution Agreement), in each case with
respect to such Indemnifying Party's or its Affiliates' entering into the
Related Agreements or performing their respective obligations thereunder;
provided, however, that the following limitations shall apply to the
indemnification obligations in Sections 3.3 and 3.4 above:
(b) NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, TO THE FULLEST
EXTENT PERMITTED BY LAW, NO INDEMNIFYING PARTY OR ANY OF ITS AFFILIATES OR THEIR
RESPECTIVE AGENTS, EMPLOYEES, OR REPRESENTATIVES SHALL BE LIABLE FOR
CONSEQUENTIAL, INCIDENTAL, INDIRECT OR PUNITIVE DAMAGES IN CONNECTION WITH
DIRECT CLAIMS BY AN INDEMNIFIED PARTY (I.E., A CLAIM BY AN INDEMNIFIED PARTY
THAT DOES NOT SEEK REIMBURSEMENT FOR A THIRD PARTY CLAIM PAID OR PAYABLE BY THE
INDEMNIFIED PARTY) WITH RESPECT TO THE INDEMNIFICATION OBLIGATIONS UNDER THIS
AGREEMENT UNLESS ANY SUCH CLAIM ARISES OUT OF THE FRAUDULENT ACTIONS OF AN
INDEMNIFYING PARTY OR ITS AFFILIATES. IN DETERMINING THE AMOUNT OF ANY LOSS,
LIABILITY, OR EXPENSE FOR WHICH ANY INDEMNIFIED PARTY IS ENTITLED TO
INDEMNIFICATION UNDER THIS AGREEMENT, THE GROSS AMOUNT THEREOF WILL BE REDUCED
(BUT NOT BELOW ZERO) BY THE NET PRESENT VALUE OF ANY CORRELATIVE INSURANCE
PROCEEDS ACTUALLY REALIZED BY THE INDEMNIFIED PARTY UNDER POLICIES TO THE EXTENT
THAT THE FUTURE PREMIUM RATE WILL NOT BE INCREASED BY CLAIM EXPERIENCE RELATING
TO SUCH LOSS, LIABILITY OR EXPENSE.
(c) Indemnification pursuant to Sections 3.3 and 3.4 shall be subject to
the indemnification provisions set forth in Section 6.3 of the Occidental
Contribution Agreement, as if the Indemnified Parties and Indemnifying Party
were the "Indemnified Parties" and the "Indemnifying Party" thereunder.
15
(d) The rights provided to each Indemnified Party pursuant to Sections 3.3
and 3.4 of this Agreement and Section 14 of the Partnership Agreement, as
limited by and subject to the provisions of this Section 3 shall be such
Indemnified Party's sole remedy for any matter arising out of, relating to, or
in connection with, the matters described in Section 3.3 and 3.4 of this
Agreement and Section 14 of the Partnership and shall be without duplication of
any rights provided to such Indemnified Party under the Master Transaction
Agreement or any of the Related Agreements.
(e) EXTENT OF INDEMNIFICATION. WITHOUT LIMITING OR ENLARGING THE SCOPE OF
THE INDEMNIFICATION OBLIGATIONS SET FORTH HEREIN, TO THE FULLEST EXTENT
PERMITTED BY LAW, AN INDEMNIFIED PARTY SHALL BE ENTITLED TO INDEMNIFICATION
HEREUNDER IN ACCORDANCE WITH THE TERMS HEREOF, REGARDLESS OF WHETHER THE
INDEMNIFIABLE LOSS GIVING RISE TO ANY SUCH INDEMNIFICATION OBLIGATION IS THE
RESULT OF THE SOLE, GROSS, ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE
NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OR VIOLATION OF ANY LAW OF OR BY ANY
SUCH INDEMNIFIED PARTY. THE PARTIES AGREE THAT THIS STATEMENT CONSTITUTES A
CONSPICUOUS LEGEND.
No failure or delay by a Beneficiary or a Party in exercising any right or
power under this Agreement, or any single or partial exercise of any such right
or power, shall preclude any other or further exercise thereof or the exercise
of any other right or power. Such single or partial exercise of any right or
power shall be cumulative and not exclusive of any rights or remedies provided
by law.
In the event of a dispute between Parties regarding the exercise or enforcement
of any of the rights of a Beneficiary under this Agreement or the failure by a
Party to perform or observe any of the provisions of this Agreement, the Party
that does not ultimately prevail in such dispute shall be liable, and hereby
agrees, to reimburse, on demand, each other such Party for any and all costs and
expenses, including the fees and expenses of legal counsel and of any other
counsel, experts, consultants or agents, that such other Party may incur in
connection therewith.
The rights of a Parent against its Affiliated Obligors arising from any
payment or performance by a Parent hereunder shall be subordinate in all
respects to the rights of the Beneficiaries against such Affiliated Obligors,
and such Parent shall not compete in any way with a Beneficiary in any
winding-up or dissolution of such Affiliated Obligors unless and until all sums
due and to become due from such Affiliated Obligors to the Beneficiaries have
been paid in full. If any amount shall be paid to a Parent in violation of this
Section, such amount shall be held in trust for the benefit of the Beneficiaries
and shall forthwith be paid to the Beneficiaries to be credited and applied to
any sums owed or to be owed by such Parent's Affiliated Obligors. Subject to the
foregoing, upon payment of all sums due or to become due by Affiliated Obligors
to the Beneficiaries, the Parent of such Affiliated Obligors shall be subrogated
to the rights of the Beneficiary against such Affiliated Obligors, and the
Beneficiaries agree to take at such Parent's expense such steps as such Parent
may reasonably request to implement such subrogation.
16
(a) Each Parent agrees that it and its Affiliates shall be bound by the
terms and conditions of Section 13.1 of the Partnership Agreement as if such
Person was a "Partner" as defined in such agreement.
(b) Lyondell, Millennium and OPC shall consult with each other on an
ongoing basis with respect to disclosures regarding the Partnership and its
business and affairs that each is required to make in reports filed from time to
time with the Securities and Exchange Commission.
(c) The letter agreement regarding confidentiality dated December 11, 1997
between Lyondell and OPC is hereby terminated.
If any Parent or an Affiliate thereof desires to initiate or pursue any
opportunity to undertake, engage in, acquire or invest in a Business Opportunity
(as such term is defined in the Partnership Agreement), such Person shall offer
such Business Opportunity to the Partnership under the terms and conditions set
forth in Sections 9.3(c) and (d) of the Partnership Agreement as if such Person
were the "Proposing Partner" (as defined in the Partnership Agreement) with
respect thereto, and in such event the Partnership shall have the rights and
obligations with respect thereto set forth in such Sections 9.3(c) and (d).
From time to time, each Party agrees to execute and deliver such additional
documents and provide such additional information and assistance as the
Beneficiaries may reasonably require to carry out the terms of this Agreement.
(a) Except as provided in this Agreement and except that a Parent may
assign its rights or obligations under this Agreement to a third party in
connection with a transfer of direct interests in the Partnership owned
by its Partner Subs if such transfer is permitted and consummated in
accordance with the Partnership Agreement, no Parent may assign or delegate
any of its rights or obligations under this Agreement without the prior written
consent of all the Beneficiaries, which consent shall be in the sole and
absolute discretion of such Beneficiaries. Any purported assignment or
delegation without such consent shall be void and ineffective.
(b) Except as may be expressly provided herein, this Agreement shall be
binding upon and inure to the benefit of the successors of the Beneficiaries.
(c) Within six months after the date of this Agreement, Oxy CH and OCC
shall be entitled to assign their respective rights and obligations under
Section 1 to Occidental Chemical Holding Corporation, a California corporation
and an indirect wholly owned subsidiary of OPC ("OCHC"), provided that OCHC
executes an instrument wherein OCHC shall agree to be bound by the obligations
of Oxy CH and OCC thereunder and under Section 4 in a form reasonably acceptable
to the Partnership. Upon such execution, OCHC shall become the "Occidental
Parent" for purposes of Section 1, and Oxy CH and OCC shall thereupon be
released from all obligations under Section 1.
This Agreement is made solely for the benefit of the Parties and, with
respect to Sections 1 and 4 (excluding Sections 4.4 and 4.5), the Beneficiaries
(as defined in Section 1.11), and no other Person shall have any right, claim or
cause of action under or by virtue of this Agreement.
17
All notices, requests, demands and other communications (collectively,
"notices") required or may be given under this Agreement shall be in writing and
shall be deemed to have been duly given if and when (i) transmitted by
telecopier facsimile with proof of confirmation from the transmitting machine or
(ii) delivered by commercial courier or other hand delivery, as follows:
If to OPC If to OCC, Oxy CH, the Occidental Partner
Subs
Occidental Petroleum Company Occidental Petroleum Corporation
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇.
▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: President Attention: President
Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇ Telecopy Number:(▇▇▇) ▇▇▇-▇▇▇▇
With a copy to With a copy to
Occidental Petroleum Corporation Occidental Petroleum Corporation
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: General Counsel Attention: General Counsel
Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇ Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇
If to Lyondell If to the Lyondell Partner Subs
Lyondell Petrochemical Company Lyondell Petrochemical Company
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇ Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇
If to Millennium If to the Millennium Partner Subs
Millennium Chemicals Inc. Millennium Chemicals Inc.
▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ Iselin, New Jersey 08830
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, III Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, III
Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇ Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇
If to the Partnership
Equistar Chemicals, LP
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇'▇▇▇▇▇
Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇
18
Telecopy Number: (▇▇▇) ▇▇▇-▇▇▇▇
or to such other address as such Party or Beneficiary shall have specified by
notice to the other Parent.
In the event that any provisions of this Agreement shall finally be
determined to be unlawful, such provision shall, so long as the economic
and legal substance of the transactions contemplated hereby is not affected
in any materially adverse manner as to any Party, be deemed severed from this
Agreement and every other provision of this Agreement shall remain in full
force and effect.
Except for Sections 3.1, 3.2 and 3.4 (which sections shall terminate only
as provided therein), this Agreement shall terminate and be of no further force
and effect as to a Parent (i) as and when provided in Section 2.1(d), (e) or (f)
or (ii) if and when such Parent Transfers all of its Partner Sub Stock in a
transaction permitted by Section 2.2; provided, however, that such termination
shall not discharge (x) any accrued Obligations owed by a Parent as of the date
of such termination or (y) any Obligations, whether arising before or after such
termination, under such Parent's Asset Contribution Agreement (as such term is
defined in the Partnership Agreement) or any Related Agreement executed pursuant
to such Asset Contribution Agreement. In addition, the Guarantee by a Parent of
Obligations of an Affiliated Obligor other than a Partner Sub shall terminate as
and when the Parent ceases to be an Affiliate of such Affiliated Obligor,
insofar as such Guarantee relates to Obligations arising thereafter. The
obligations of OPC and the obligations of each of Lyondell and Millennium to
OPC, in each case pursuant to Section 4.4(b), shall terminate and be of no
further force and effect at such time as OPC is no longer required to make the
disclosures referred to in Section 4.4(b) to the Securities and Exchange
Commission.
(a) In construing this Agreement, the following principles shall be
followed: (i) no consideration shall be given to the captions of the articles,
sections, subsections or clauses, which are inserted for convenience in locating
the provisions of this Agreement and not as an aid in construction; (ii) no
consideration shall be given to the fact or presumption that any Party had a
greater or lesser hand in drafting this Agreement; (iii) examples shall not be
construed to limit, expressly or by implication, the matter they illustrate;
(iv) the word "includes" and its syntactic variants mean "includes, but is not
limited to" and corresponding syntactic variant expressions; (v) the plural
shall be deemed to include the singular, and vice versa; (vi) each gender shall
be deemed to include the other gender; and (vii) each exhibit, attachment and
schedule to this Agreement is a part of this Agreement.
(b) The term "Affiliate" shall mean any Person that directly or indirectly
through one or more intermediaries, controls or is controlled by or is under
common control with the Person specified; provided, however, that, in the case
of OPC and its Affiliates, for purposes of this Agreement, such term shall not
include Canadian Occidental Petroleum Ltd. For purposes of this definition, the
term "control" shall have the meaning set forth in 17 CFR 230.405 as in effect
on the date hereof.
19
(c) The term "Person" shall mean any natural person or any corporation,
partnership, limited liability company, joint venture, association, trust or
other entity or organization.
This Agreement may be executed in one or more counterparts, each of which
shall constitute an original, and all of which when taken together shall
constitute one and the same original document.
The laws of the State of Delaware shall govern the construction,
interpretation and effect of this Agreement without giving effect to any
conflicts of law principles.
ANY JUDICIAL PROCEEDING BROUGHT AGAINST ANY PARTY TO THIS AGREEMENT OR ANY
DISPUTE UNDER OR ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY
MATTER RELATED HERETO SHALL BE BROUGHT IN THE FEDERAL OR STATE COURTS OF THE
STATE OF DELAWARE, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE
PARTIES TO THIS AGREEMENT ACCEPTS THE EXCLUSIVE JURISDICTION OF SUCH COURTS AND
IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT (AS FINALLY ADJUDICATED) RENDERED
THEREBY IN CONNECTION WITH THIS AGREEMENT. EACH OF THE PARTIES TO THIS AGREEMENT
SHALL APPOINT THE CORPORATION TRUST COMPANY, THE ▇▇▇▇▇▇▇▇-▇▇▇▇ CORPORATION
SYSTEM, INC. OR A SIMILAR ENTITY (THE "AGENT") AS AGENT TO RECEIVE ON ITS BEHALF
SERVICE OF PROCESS IN ANY PROCEEDING IN ANY SUCH COURT IN THE STATE OF DELAWARE.
THE FOREGOING CONSENTS TO JURISDICTION AND APPOINTMENTS OF AGENT TO RECEIVE
SERVICE OF PROCESS SHALL NOT CONSTITUTE GENERAL CONSENTS TO SERVICE OF PROCESS
IN THE STATE OF DELAWARE FOR ANY PURPOSE EXCEPT AS PROVIDED ABOVE AND SHALL NOT
BE DEEMED TO CONFER RIGHTS ON ANY PERSON OTHER THAN THE PARTIES HERETO. EACH
PARENT HEREBY WAIVES ANY OBJECTION IT MAY HAVE BASED UPON LACK OF PERSONAL
JURISDICTION, IMPROPER VENUE OR FORUM NON-CONVENIENS.
EACH PARTY HEREBY KNOWINGLY AND INTENTIONALLY, IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.
All disputes under this Agreement shall be resolved in accordance with the
Dispute Resolution Procedures set forth in Appendix B.
Each Parent shall cause its Affiliates (including any person controlling
such Parent) to comply with all provisions of this Agreement that apply to
Affiliates of such Parent, and each Parent shall be responsible for any
failure of any such Affiliate to comply with any such provision.
All waivers, modifications, amendments or alterations of this Agreement
shall require the execution of a written instrument signed by each of the
Parties.
IN WITNESS WHEREOF, the Parties have executed and delivered this Amended
and Restated Parent Agreement as of the date first above written.
20
OCCIDENTAL CHEMICAL CORPORATION
By:
____________________________________________
Name: ▇.▇. ▇▇▇▇▇
Title: Executive Vice President
OXY CH CORPORATION
By:
____________________________________________
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Senior Vice President
OCCIDENTAL PETROLEUM CORPORATION
By:
____________________________________________
Name: ▇.▇. ▇▇▇▇▇▇▇▇, ▇▇.
Title: Vice President and Controller
[Signature Page to Amended and Restated Parent Agreement]
LYONDELL PETROCHEMICAL COMPANY
By:
____________________________________________
Name: ▇▇▇. ▇. ▇▇▇▇▇
Title: President and Chief Executive Officer
MILLENNIUM CHEMICALS INC.
By:
____________________________________________
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, III
Title: Senior Vice President
21
EQUISTAR CHEMICALS, LP
By:
____________________________________________
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: President and Chief Operating Officer
[Signature Page to Amended and Restated Parent Agreement]
APPENDIX A
TO
PARENT AGREEMENT
LIST OF RELATED AGREEMENTS
1. Old Partnership Agreement.
2. $345 million promissory note dated December 1, 1997, of Lyondell LP payable
to the Partnership.
3. Asset Contribution Agreement dated as of December 1, 1997, between
Lyondell, Lyondell LP and the Partnership.
4. Asset Contribution Agreement dated as of December 1, 1997, between
Millennium Petrochemicals, Millennium LP and the Partnership.
5. ▇▇▇▇ of Sale and Assignment dated December 1, 1997 from Lyondell to the
Partnership with respect to property specified on attached schedule.
6. Assignment of Trademarks dated November 25, 1997 from Lyondell to the
Partnership with respect to certain O&P Trademarks as listed on attached
schedule.
7. Assignment of Patents dated November 25, 1997 from Lyondell to the
Partnership with respect to certain O&P Patents as listed on attached
schedule.
8. Assumption Agreement dated December 1, 1997 between Lyondell as Assignor
and the Partnership as Assignee pursuant to the Asset Contribution
Agreement with respect to the assumption by Assignee of certain
liabilities.
9. Master Intellectual Property Agreement dated December 1, 1997 by and
between Lyondell and the Partnership.
10. Assignment dated December 1, 1997 between Lyondell as "Assignor" and the
Partnership as "Assignee" with respect to the contribution by Assignor of
LCR Agreements.
22
11. Assignment dated December 1, 1997 between Lyondell and the Partnership, of
Ground Lease (LMC) with respect to certain real property specified therein.
12. Assignment dated December 1, 1997 between Lyondell and the Partnership, of
Operating Agreement, Natural Gas Sales and Methanol Supply with respect to
Lyondell Methanol Company.
13. Administrative Services Agreement (as amended or otherwise modified from
time to time) effective as of December 1, 1997 between the Partnership and
Lyondell with respect to the provision of services as described in Appendix
A attached.
14. Letter Agreement dated December 1, 1997 between Lyondell and the
Partnership with respect to the net payment by the Partnership to Lyondell
for certain Administrative Services as described in Attachment 1 thereto.
15. Assignment dated November 25, 1997, but effective December 1, 1997, from
Lyondell to the Partnership, of leases specified therein (Channelview,
Texas Golf Courses).
16. Assignment dated November 25, 1997, but effective December 1, 1997, from
Lyondell to the Partnership, of leases specified therein (Alvin, Texas).
17. Assignment dated November 25, 1997, but effective as of December 1, 1997,
from Lyondell to the Partnership, of leases specified therein (Plano,
Texas).
18. Assignment dated November 25, 1997, but effective as of December 1, 1997,
from Lyondell to the Partnership, of leases specified therein (Chicago,
Illinois - CALPERS Lease).
19. Assignment of Sublease dated November 25, 1997, but effective as of
December 1, 1997, from Lyondell to the Partnership, of leases specified
therein (Chicago, Illinois - MATRIX Partners Sublease).
20. Assignment dated November 25, 1997, but effective as of December 1, 1997,
from Lyondell to the Partnership, of leases specified therein
(Philadelphia, Pennsylvania).
21. Assignment dated November 25, 1997, but effective December 1, 1997, from
Lyondell to the Partnership, of leases specified therein (Victoria, Texas).
22. Sublease Agreement dated November 25, 1997, but effective December 1, 1997,
by and between Lyondell and the Partnership with respect to Office Lease
Agreement dated December 31, 1985 and amended by 19 Amendments as described
on Exhibit A as attached thereto (Administrative Office Space, OHC).
23. General Warranty Deed dated November 25, 1997, but effective as of December
1, 1997, from Lyondell to the Partnership with respect to certain real
property specified therein (Channelview, Texas).
23
24. General Warranty Deed dated November 25, 1997, but effective as of December
1, 1997, from Lyondell to the Partnership, with respect to certain real
property specified therein (Mount Belvieu, Texas).
25. General Warranty Deed dated, November 25, 1997, but effective December 1,
1997, from Lyondell to the Partnership with respect to certain real
property specified therein (Bayport, Texas).
26. General Warranty Deed dated November 25, 1997, but effective December 1,
1997, from Lyondell to the Partnership with respect to certain real
property specified therein (Matagorda, Texas).
27. Conveyance and Assignment of Easements, Rights of Way, and Licenses dated
November 25, 1997, but effective as of December 1, 1997, from Lyondell to
the Partnership with respect to certain real property specified therein
(Pipeline Right of Way).
28. ▇▇▇▇ of Sale and Assignment dated December 1, 1997 from Millennium
Petrochemicals to the Partnership with respect to the property set forth on
Schedule A attached.
29. Assignment of Trademarks dated November 21, 1997 between Millennium
Petrochemicals as Assignor and the Partnership as Assignee with respect to
the transfer of O&P Trademarks as set forth in the schedule attached.
30. Assignment of Patents dated November 21, 1997 between Millennium
Petrochemicals as Assignor and the Partnership as Assignee with respect to
the transfer of O&P Patents as set forth in the schedule attached.
31. Assumption Agreement effective as of December 1, 1997 between Millennium
Petrochemicals as Assignor and the Partnership as Assignee pursuant to the
Asset Contribution Agreement with respect to the assumption by the assignee
of certain liabilities.
32. Master Intellectual Property Agreement dated December 1, 1997 by and
between Millennium Petrochemicals and the Partnership.
33. Shared Services Agreement for Wastewater effective as of December 1, 1997
by and between Millennium Petrochemicals and the Partnership.
34. Shared Services Agreement for the ▇▇▇▇▇▇▇ Complex effective as of December
1, 1997 by and between Millennium Petrochemicals and the Partnership with
respect to the services as specified therein and on the attachments and
appendix.
35. Shared Services Agreement for Water and Utility Instrument Air effective as
of December 1, 1997 by and between Millennium Petrochemicals and the
Partnership with respect to the services as specified therein and on the
attachments, exhibits and appendix.
24
36. Shared Services Agreement for the Northlake Office Complex effective as of
December 1, 1997 by and between Millennium Petrochemicals and the
Partnership with respect to services as specified therein and on
attachments and appendix.
37. Agreement for Interim Study at the ▇▇▇▇▇▇▇ Complex effective as of December
1, 1997 by and between Millennium Petrochemicals and the Partnership.
38. Fuel Stream Agreement effective as of December 1, 1997 by and between
Millennium Petrochemicals and the Partnership.
39. Electricity Service Agreement effective as of December 1, 1997 by and
between Millennium Petrochemicals and the Partnership.
40. Sales Agreement (Vinyl Acetate Monomer), effective December 1, 1997 between
Millennium Petrochemicals as "Seller" and the Partnership as "Buyer".
41. Sales Agreement (Ethylene), effective December 1, 1997 between the
Partnership as "Seller" and Millennium Petrochemicals as "Buyer".
42. Sales Agreement (Purified Hydrogen), between the Partnership as "Seller"
and Millennium Petrochemicals as "Buyer" effective December 1, 1997.
43. Sales Agreement (Natural Gas), effective December 1, 1997 between the
Partnership as "Seller" and Millennium Petrochemicals as "Buyer".
44. Letter Agreement dated December 1, 1997 between Millennium Petrochemicals
and the Partnership regarding interim distribution logistics support.
45. Letter Agreement dated December 1, 1997 between Millennium Petrochemicals
and the Partnership with respect to the net payment for various shared
services.
46. Assignment of Railcar Lease dated December 3, 1997 by and between
Millennium Petrochemicals Inc. as "Assignor" and the Partnership as
"Assignee" (The Sumitomo Bank Leasing and Finance, Inc. Lease).
47. Assignment of Leasehold dated November 25, 1997 by and between Millennium
Petrochemicals and the Partnership with respect to certain real property
specified therein (Tuscola, Illinois).
48. Assignment of Leasehold dated December 1, 1997 by and between Millennium
Petrochemicals and the Partnership with respect to certain real property
specified therein (Fairport Harbor, Ohio).
49. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of lease specified therein (Clinton, Iowa).
50. Quit Claim Deed dated December 1, 1997 from Millennium Petrochemicals to
the Partnership with respect to certain real property specified therein
(Clinton, Iowa).
25
51. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of Credit Union Sublease (Clinton, Iowa).
52. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of Appurtenant Easements (Clinton, Iowa).
53. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of Dock Lease and Agreement (Clinton, Iowa).
54. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of Sub-lease Option to Purchase Agreement (Clinton, Iowa).
55. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of Cellular Telephone Sublease (Clinton, Iowa).
56. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of Farm Leases (Clinton, Iowa).
57. Assignment dated December 1, 1997 between Millennium Petrochemicals and the
Partnership of Eastern Iowa Propane Lease (Clinton, Iowa).
58. Lease Agreement dated December 1, 1997 between Millennium Petrochemicals
and the Partnership with respect to certain real property specified therein
(Lease for Cincinnati Research Laboratory).
59. Warranty Deed dated December 1, 1997 from Millennium Petrochemicals to the
Partnership with respect to certain Real Property specified therein
(Clinton, Iowa).
60. General Warranty Deed dated December 1, 1997 from Millennium Petrochemicals
to the Partnership with respect to certain real property specified therein
(▇▇▇▇▇▇▇, Texas).
61. Letter agreement dated December 1, 1997 from Millennium Petrochemicals to
the Partnership with respect to Millennium Petrochemicals agreement to
provide the Partnership an option on approximately 20+ acres of land
(▇▇▇▇▇▇▇ Expansion Land).
62. Warranty Deed dated November 25, 1997 from Millennium Petrochemicals to the
Partnership with respect to certain real property specified therein
(Morris, Illinois).
63. General Warranty Deed dated November 25, 1997 from Millennium
Petrochemicals to the Partnership with respect to certain real property
specified therein (Port ▇▇▇▇▇▇, Texas).
64. General Warranty Deed dated November 25, 1997 from Millennium
Petrochemicals to the Partnership with respect to certain real property
specified therein (Chocolate Bayou, Texas).
65. Warranty Deed dated December 1, 1997 from Millennium Petrochemicals to the
Partnership with respect to certain real property specified therein
(Tuscola, Illinois).
26
66. General Warranty Deed dated December 1, 1997 from Millennium Petrochemicals
to the Partnership with respect to certain real property specified therein
(Heath, Ohio)
67. General Warranty Deed dated November 25, 1997 from Millennium
Petrochemicals to the Partnership with respect to certain real property
specified therein (Crockett, Texas)
68. Deed dated November 24, 1997 from Millennium Petrochemicals to the
Partnership with respect to certain real property specified therein
(Newark, New Jersey).
69. Grant Deed dated December 1, 1997 from Millennium Petrochemicals to the
Partnership with respect to certain real property specified therein
(Anaheim, California).
70. Limited Warranty Deed dated December 1, 1997 from the Partnership to
Millennium Petrochemicals with respect to certain real property specified
therein (the Northlake Drive 0.1553 Acre Parcel Cincinnati-Research
Center-Northlake, Ohio).
71. General Warranty Deed (Conveyance between Adjoining Lot Owners) dated
December 1, 1997 from Millennium Petrochemicals to the Partnership with
respect to certain real property specified therein (Cincinnati-Research
Center-Northlake, Ohio).
72. General Warranty Deed (Conveyance between Adjoining Lot Owners) dated
December 1, 1997 from Millennium Petrochemicals to the Partnership with
respect to certain real property specified therein, the Northlake Drive
0.0987 Acre Parcel (Cincinnati-Research Center-Northlake, Ohio).
73. General Warranty Deed dated December 1, 1997 from Millennium Petrochemicals
to the Partnership with respect to certain real property specified therein,
the East ▇▇▇▇▇▇ Road and Northlake Drive 25.0864 Acre Parcel
(Cincinnati-Research Center-Northlake).
74. Declaration of Easements and Restrictive Covenants dated December 1, 1997
by Millennium Petrochemicals and the Partnership with respect to certain
real property specified therein (Cincinnati-Research Center-Northlake,
Ohio).
75. Assignment and Assumption dated December 1, 1997 by and between Millennium
Petrochemicals and the Partnership, of Service Agreement
(Cincinnati-Research Center-Northlake, Ohio).
76. Letter Agreement dated November 20, 1997 from Millennium Petrochemicals to
the Partnership with respect to Fiber-Optic Cable System, Northlake Drive
Property, Cincinnati, Ohio (Cincinnati-Research Center-Northlake, Ohio).
77. Parking Agreement dated December 1, 1997 between Millennium Petrochemicals
and the Partnership with respect to additional parking at the Northlake
Facility (Cincinnati-Research Center-Northlake, Ohio).
78. General Warranty Deed dated December 1, 1997 from Millennium Petrochemicals
to the Partnership with respect to certain real property specified therein
(Fairport Harbor, Ohio).
27
79. Assignment of Easements dated November 25, 1997 from Millennium
Petrochemicals to the Partnership with respect to certain real property
specified therein (Chocolate Bayou, Texas).
80. Easement Agreement dated December 1, 1997 to Millennium Petrochemicals from
the Partnership with respect to certain real property specified therein
(▇▇▇▇▇▇▇, Texas).
81. Easement Agreement dated December 1, 1997 to the Partnership from
Millennium Petrochemicals with respect to certain real property specified
therein (▇▇▇▇▇▇▇, Texas).
82. Assignment (Mont Belvieu Pipeline Easements) dated November 25, 1997 from
Millennium Petrochemicals to the Partnership with respect to certain real
property specified therein.
83. General Warranty (Mont Belvieu Pipeline Fee Parcels) dated November 25,
1997 from Millennium Petrochemicals to the Partnership with respect to
certain real property specified therein.
84. Partnership Agreement.
85. Agreement and Plan of Merger and Asset Contribution dated as of May 15,
1998, among Occidental GP, Occidental LP1, Occidental LP2, OPI and the
Partnership.
86. Sales Agreement (Ethylene) dated as of May 15, 1998 by and between the
Partnership and OCC with respect to the sale of Ethylene by the Partnership
to OCC.
87. Operating Agreement dated as of May 15, 1998 by and between the Partnership
and OCC with respect to OCC providing certain services to the Partnership
after May 15, 1998.
88. Toll Processing Agreement dated May 15, 1998 between the Partnership and
OCC with respect to Ashtabula EO/EG tolling.
89. Amended and Restated Indemnity Agreement among OCC, Occidental GP,
Occidental LP1, Occidental LP2, Lyondell GP, Lyondell LP, Millennium GP,
Millennium LP and Millennium America Inc.
90. Letter Agreement dated May 15, 1998 between OCC and the Partnership with
respect to OCC providing a guarantee for the collection of $419,700,000 of
Partnership debt.
91. Letter Agreement dated May 15, 1998 between OCC and the Partnership with
respect to the prepayment or restructuring of the Occidental Assumed Debt.
92. Promissory Note for $419,700,000 dated May 15, 1998 of the Partnership
payable to Occidental LP2.
93. Promissory Note for $75 million dated May 15, 1998 of the Partnership
payable to Millennium LP.
28
94. ▇▇▇▇ of Sale and Assignment dated May 15, 1998 from OCC to Occidental LP1
with respect to property specified on attached schedule.
95. ▇▇▇▇ of Sale and Assignment dated May 15, 1998 from Occidental LP1 to the
Partnership with respect to property specified on attached schedule.
96. Patent Assignment dated May 15, 1998 from OCC to the Partnership with
respect to patents as listed on attached schedule.
97. Assumption Agreement dated May 15, 1998 between Occidental LP1, Occidental
LP2 and Occidental GP, as Assignors, and the Partnership, as Assignee,
pursuant to the Agreement and Plan of Merger and Asset Contribution with
respect to the assumption by Assignee of certain liabilities.
98. Master Intellectual Property Agreement dated May 15, 1998 by and between
the Partnership and OCC.
99. Assignment of Partnership Interests dated May 15, 1998 from Occidental GP
to the Partnership with respect to interests in PD Glycol, a Texas limited
partnership.
100. Assignment of Leases dated May 15, 1998 from OCC to the Occidental LP1 with
respect to leases specified therein.
101. Assignment of Lease and Act of Exchange dated May 15, 1998 from Occidental
LP1 to the Partnership with respect to the lease specified therein,
together with such lease.
102. Assignment of Leases dated May 15, 1998 from Occidental LP1 to the
Partnership with respect to leases specified therein.
103. Assumption Agreement dated May 15, 1998 between OPI as Assignor and the
Partnership as Assignee with respect to Lease Intended for Security dated
December 18, 1991 ($205 million).
104. Termination and Release of Guaranty dated May 15, 1998 between Lyondell and
OCC with respect to the termination of Lyondell guaranty of certain
Partnership railcar leases.
105. Sublease dated May 15, 1998 from OCC to the Partnership with respect to
1990 railcar lease.
106. Sublease dated May 15, 1998 from OPI to the Partnership with respect to
1995 railcar lease.
107. Tax Indemnity Agreement dated May 15, 1998 between OCC and the Partnership
with respect to Sublease of 1990 railcar lease.
108. Tax Indemnity Agreement dated May 15, 1998 between OPI and the Partnership
with respect to Sublease of 1998 railcar lease.
29
109. Master Arbitration Amendment to Related Agreements dated May 15, 1998
between the Partnership, Lyondell and Millennium.
110. First Amendment to Lyondell Asset Contribution Agreement dated May 15, 1998
between the Partnership, Lyondell and Lyondell LP.
111. First Amendment to Millennium Asset Contribution Agreement dated May 15,
1998 between the Partnership, Millennium Petrochemicals and Millennium LP.
112. Transition Services Agreement between the Partnership and OCC to be entered
into pursuant to the Operating Agreement with respect to OCC providing
certain services to the Partnership.
113. Pipeline Acquisition Agreement dated as of May 15, 1998 between OCC and the
Partnership with respect to the Cyclohexane pipeline.
114. Trademark License Agreement dated as of May 15, 1998 among OCC, Occidental
and the Partnership with respect to the trademarks as set forth on the
schedule attached.
115. Assignment of Excluded Assets dated May 14, 1998 between OPI as Assignor
and OCC as Assignee with respect to certain assets described therein.
116. Assumption Agreement dated May 14, 1998 between OPI as Assignor and OCC as
Assignee with respect to certain liabilities described therein.
117. Termination Agreement and General Release dated May 15, 1998 among
Occidental, OPI, Occidental LP2 and Occidental Holding Company with respect
to certain intercompany debts.
118. Assumption Agreement dated May 15, 1998 between OPI as Assignor and
Occidental LP2 as Assignee with respect to certain intercompany debts.
119. Assignment and Assumption Agreement dated May 15, 1998 between OCC as
Assignor and the Partnership as Assignee with respect to Lease intended for
security dated March 28, 1994 by and between OCC and Pitney ▇▇▇▇▇ Credit
Corporation.
120. Letter from Lyondell to OCC and the Partnership regarding PVC technology.
121. Agreement regarding provision by the Partnership of certain support
facilities associated with the Lake ▇▇▇▇▇▇▇ propylene fractionation unit to
be entered into pursuant to the Operating Agreement.
APPENDIX B
TO
PARENT AGREEMENT
DISPUTE RESOLUTION PROCEDURES
30
(1) (Binding and Exclusive Means. The dispute resolution provisions set
forth in this Appendix B shall be the binding and exclusive means to resolve all
disputes arising under this Agreement (each a "Dispute").
(2) Standards and Criteria. In resolving any Dispute, the standards and
criteria for resolving such dispute shall, unless the Parties involved in the
Dispute in their discretion jointly stipulate otherwise, be as set forth in
Appendix 1 to this Appendix B.
(3) ADR and Binding Arbitration Procedures. If a Dispute arises, the
following procedures shall be implemented (with references to "Parties" meaning
the Parties involved in the Dispute):
(a) Any Party may at any time invoke the dispute resolution procedures set
forth in this Appendix B as to any Dispute by providing written notice of such
action to the other Parties, and all Parties within five Business Days after
such notice shall schedule a meeting to be held in Houston, Texas between the
Parties. The meeting shall occur within 10 Business Days after notice of the
meeting is delivered to the other Parties. The meeting shall be attended by
representatives of each Party having decision-making authority regarding the
Dispute as well as the dispute resolution process and who shall attempt in a
commercially reasonable manner to negotiate a resolution of the Dispute.
(b) The representatives of the Parties shall cooperate in a commercially
reasonable manner and shall explore whether techniques such as mediation,
minitrials, mock trials or other techniques of alternative dispute resolution
might be useful. In the event that a technique of alternative dispute resolution
is so agreed upon, a specific timetable and completion date for its
implementation shall also be agreed upon. The representatives will continue to
meet and discuss settlement until the date (the "Interim Decision Date") that is
the earliest to occur of the following events: (i) an agreement shall be reached
by the Parties resolving the Dispute; (ii) one of the Parties shall determine
and notify the other Parties in writing that no agreement resolving the Dispute
is likely to be reached; (iii) if a technique of alternative dispute resolution
is agreed upon, the completion date therefor shall occur without the Parties
having resolved the Dispute; or (iv) if another technique of alternative dispute
resolution is not agreed upon, two full meeting days (or such other time period
as may be agreed upon) shall expire without the Parties having resolved the
Dispute.
(c) If, as of the Interim Decision Date, the Parties have not succeeded in
negotiating a resolution of the dispute pursuant to subsection (b), the Parties
shall proceed under subsections (d), (e) and (f).
(d) After satisfying the requirements above, such Dispute shall be
submitted to mandatory and binding arbitration at the election of any Party
involved in the Dispute (the "Disputing Party"). The arbitration shall be
subject to the Federal Arbitration Act as supplemented by the conditions set
forth in this Appendix B. The arbitration shall be conducted in accordance with
the Commercial Arbitration Rules of the American Arbitration Association in
effect on the date the notice of arbitration is served, other than as
specifically modified herein. In the absence of an agreement to the contrary,
the arbitration shall be held in Houston, Texas. The Arbitrator (as defined
below) will allow reasonable discovery in the forms permitted by the
31
Federal Rules of Civil Procedure, to the extent consistent with the purpose of
the arbitration. During the pendency of the Dispute, each Party shall make
available to the Arbitrator and the other Parties all books, records and other
information within its control requested by the other Parties or the Arbitrator
subject to the confidentiality provisions contained herein, and provided that no
such access shall waive or preclude any objection to such production based on
any privilege recognized by law. Recognizing the express desire of the Parties
for an expeditious means of dispute resolution, the Arbitrator may limit the
scope of discovery between the Parties as may be reasonable under the
circumstances. In deciding the substance of the Parties' claims, the laws of the
State of Delaware shall govern the construction, interpretation and effect of
this Agreement (including this Appendix B) without giving effect to any conflict
of law principles. The arbitration hearing shall be commenced promptly and
conducted expeditiously, with each Party involved in the Dispute being allocated
an equal amount of time for the presentation of its case. Unless otherwise
agreed to by the Parties, the arbitration hearing shall be conducted on
consecutive days. Time is of the essence in the arbitration proceeding, and the
Arbitrator shall have the right and authority to issue monetary sanctions
against any of the Parties if, upon a showing of good cause, that Party is
unreasonably delaying the proceeding. To the fullest extent permitted by law,
the arbitration proceedings and award shall be maintained in confidence by the
Arbitrator and the Parties.
(e) The Disputing Party shall notify the American Arbitration Association
("AAA") and the other Parties in writing describing in reasonable detail the
nature of the Dispute (the "Dispute Notice"). The arbitrator (the "Arbitrator")
shall be selected within 15 days of the date of the Dispute Notice by all of the
Parties from the members of a panel of arbitrators of the AAA or, if the AAA
fails or refuses to provide a list of potential arbitrators, of the Center for
Public Resources and shall be experienced in commercial arbitration. In the
event that the Parties are unable to agree on the selection of the Arbitrator,
the AAA shall select the Arbitrator, using the criteria set forth in this
Appendix B, within 30 days of the date of the Dispute Notice. In the event that
the Arbitrator is unable to serve, his or her replacement will be selected in
the same manner as the Arbitrator to be replaced. The Arbitrator shall be
neutral. The Arbitrator shall have the authority to assess the costs and
expenses of the arbitration proceeding (including the arbitrators', and
attorneys' fees and expenses) against any or all Parties.
(f) The Arbitrator shall decide all Disputes and all substantive and
procedural issues related thereto, and shall enforce this Agreement in
accordance with its terms. Without limiting the generality of the previous
sentence, the Arbitrator shall have the authority to issue injunctive relief;
however, the Arbitrator shall not have any power or authority to (i) award
consequential, incidental, indirect or punitive damages or (ii) amend this
Agreement. The Arbitrator shall render the arbitration award, in writing, within
20 days following the completion of the arbitration hearing, and shall set forth
the reasons for the award. In the event that the Arbitrator awards monetary
damages in favor of any Party, the Arbitrator must certify in the award that no
indirect, consequential, incidental, indirect or punitive damages are included
in such award. If the Arbitrator's decision results in a monetary award, the
interest to be granted on such award, if any, and the rate of such interest
shall be determined by the Arbitrator in his or her discretion. The arbitration
award shall be final and binding on the Parties, and judgment thereon may be
entered in any court of competent jurisdiction, and may not be appealed except
to the extent permitted by the Federal Arbitration Act.
32
(4) Continuation of Business. Notwithstanding the existence of any Dispute
or the pendency of any procedures pursuant to this Appendix B, the Parties agree
and undertake that all payments not in dispute shall continue to be made and all
obligations not in dispute shall continue to be performed.
Appendix 1
(a) (First priority shall be given to maximizing the consistency of the
resolution of the Dispute with the satisfaction of all express obligations of
the Parties and their Affiliates as set forth in the Agreement.
(b) Second priority shall be given to resolution of the Dispute in a manner
which best achieves the objectives of the business activities and arrangements
under the Agreement and permits the Parties to realize the benefits intended to
be afforded thereby.
(c) Third priority shall be given to such other matters, if any, as the
Parties or the Arbitrator determine to be appropriate under the circumstances.
33