Successfully Executing a Publicly Traded Spinoff Managing your Business Unit Spinoff to Stand-alone Entity Ron Miller, Jennifer Sloan, Marc-André Paquette

Agenda 

Objectives and Introductions



Spin Definition and High Level Timeline



Key Considerations for Separation Support



Global Benefits Considerations



Executive Compensation Considerations



Examples of Critical Challenges

2

1

Objectives What’s the work?

Spinning-off a separate stand-alone publically traded company

How can we do this well?

Tools and resources to support the work

What does it take to be successful?

Key considerations for a successful spin

3

Introductions

Ron Miller Head of Global Rewards, HR M&A and People Mobility DuPont

Jennifer Sloan Executive & Equity Compensation DuPont

Marc-André Paquette M&A and International Advisor Mercer

4

2

DuPont Founded in 1802

5

Over 200 Years of DuPont Innovations

6

3

DuPont 2014 Segment Sales $3.5B

Nutrition & Health

$11.3B

Agriculture $6.1B

Performance Materials $2.4B

$35B

Electronics & Communications

$3.9B

Safety & Protection $6.5B

Performance Chemicals

$1.3B

Industrial Biosciences 7

DuPont and Performance Chemicals BASIC FACTS No. of Countries

90

36

No. of Employees

64,000

7,000

2014 Revenue

35B

6.5B

HRIS Systems

Various, in transition

Workday

Payroll

Various

Globally Managed by NgA

Benefits Providers

Local, Shared Services for Major Markets

Local, no Shared Services

HR Resources

Generally HR is Resident in Country

Smaller HR, Supports Multiple Countries

HR & BENEFITS

8

4

Spin - High Level Process and Timeline

Illustrative Timing

Business / Tax Planning (Q1 2013)

Separation Select Strategy Partners (Q3 2013) (Q1 2014)

DECISION TO SEPARATE

ANNOUNCE SEPARATION

Pre-Separation Strategy and Planning

Separation Progress

Legal Entity Date(s) (Q1 2015)

Complete Wind Down HR TSA Separation (up to (7/1/2015) Dec/2016)

OPERATIONAL INDEPENDENCE

SPIN DATE Separation Complete/ TSA Period

Separation Planning

NewCo Strategic Planning

Parent has full control – NewCo doesn’t exist yet

Operational Independence (Q1 2015)

Parent retains financial control, but NewCo takes ownership of endstate design / structure

Parent retains full control, while NewCo structure is developed

TSA END DATE

Spin/TSA Complete

Parent no longer has financial control, provides HR support to NewCo via TSA

9

DuPont’s Process for Selecting a Spin Partner for C&B Work Suppliers Reviewed Aon Hewitt

Mercer

E&Y

Towers

Suppliers Eliminated Firm A • Limited Divestiture experience • Limited C&B expertise Globally

Firm B • Resource and overall quality

Suppliers Selected to participate in RFP Firm C • Account resource quality • DuPont knowledge and experience

Mercer • Recent large Spin-off transaction experience • Resource quality and availability • Independent and fresh perspective 10

5

CTQ – Analysis Proposal Comments Critical to Quality Criteria

Runner-up Firm

Mercer

Ease to Implement (Existing MSA , Security Assessment)

•

Existing MSA

• •

Existing MSA IT Assessment NOT complete

Project Management Capabilities

•

Demonstrated large Project delivery

•

No large Project experience with DuPont

Projected Supplier Resources will Employ to Implement

•

Resource Plan not thought through

•

Quality of resource assignment

Projected Internal DuPont Resources • will Need to Employ to Implement • Thought Leadership / Creative Thinking

Resource requirements vague

•

Good detail for DuPont expectations

Industry / generally demonstrated thought leadership and creative thinking

•

Industry / generally demonstrated thought leadership and creative thinking

Strategy Development Steps

•

Capable

•

Capable

Ability to Meet Timeline

•

Slower start

•

Ready immediately

Resource Availability and Knowledge Outside US Knowledge of DuPont Benefits Systems and Offering Price

•

Adequate; slight advantage of Mercer due to global brokerage

•

Adequate

•

Extensive DuPont experience

•

Limited

•

May have over estimated

•

Scope appears to be equal possible underestimate of effort 11

M&A

RETIREMENT

HEALTH

TALENT

INVESTMENTS

COMMUNICATION

HR PROJECT MANAGEMENT

Mercer

MERCER’S TRANSACTION SERVICES • Dedicated, global network of International, M&A and HR technical consultants, with deep transaction expertise “on the ground” in virtually every country

INTERNATIONAL

A global consulting leader in talent, health, retirement, investments, M&A and international services, Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset — their people. Mercer's more than 20,000 employees are based in 42 countries, operating in over 130 countries. 12

6

Separating Rewards Programs – High Level Project Overview DuPont Programs

DuPont Programs

DuPont

DuPont

P-Chem

P-Chem

Separate Programs

DuPont

P-Chem

Business Unit

Q2 2014

Q3 2014

Q4 2014

Driven Globally with Local Support Global / Regional Planning

Country Assessment

Communication Planning and Template Development

Separate Legal Entity

Spin Off

Q1 2015

7/1/2015

Driven Locally with Global Support Implementation Activities

Local Planning

Staggered implementation completion based on region LE day

Local Employee Communication Development and Roll-out

13

Key Considerations

RESOURCES

STRATEGY

PROCESS

DEFINED STRUCTURE & EXPERIENCED TEAM

UNDERSTANDING OF DEAL OBJECTIVES AND DEVELOPING A SPIN PHILOSOPHY

DEFINED PROCESSES, TOOLS & RIGOROUS RESULTS MANAGEMENT

14

7

Workstreams and Accountabilities Transaction (Deal) Workstreams o Form 10 (Phil J)

o Capital Markets / Structure (Mike H)

o Equity and Deal Structure (Steve Z)

o Legal Structuring (Chen W, Nigel P and John W)

o Tax Filings (Jim A)

Transaction

Stand Alone Readiness (SpinCo) Workstreams o

Operational Readiness (Deana D)

o

Tax (Jim A)

o

Principal Company (Jim A)

o

Organization (Woody W)

o

Communications (Linda W)

Stand Alone Readiness (SpinCo)

Ongoing Viability (RemainCo) Workstreams

Ongoing Viability (RemainCo)

o

Budget & Spending Control (Phil J)

o

Stranded Costs (Deana D)

o

Coordinate with Other Projects (Linda W)

o

Principal Company Impact Analysis (Jim A)

Integration of overlapping and related Workstreams is critical for a successful separation 15

Governance Team

Frequency and Members

BOARD OF DIRECTORS Approve key decisions (CEO/CFO/HR leader affirmation, public documents, finalizing the transaction, board composition, capital structure, etc.)

Updated as needed using regular Board Meetings

OCE/CCT Sets budget, makes key decisions that impact SpinCo and RemainCo

Updated as needed

ADVISORY TEAM Vet issues, make some decisions, review progress, manage project, assign resources, remove roadblocks, etc.

Weekly Nick Steve Z. Mark Martha Benito Linda SpinCo CEO

CORE TEAM The centralized team that collectively integrates and manages all workstreams and subteams, and executes the separation (Transaction, Standalone Readiness, and RemainCo issues).

Weekly Core Team Meetings Bi-Weekly Deep Dive Sessions

Workstream TEAMS / REGIONAL TEAMS Execute all the necessary steps to complete the project

As needed and assigned

16

8

RESOURCES

Defined Structure and Experienced Team - HR • Business, HR and Separation Strategy

Global Project Sponsors

HR PMO

Regional Teams US  APAC  EMEA  LatAm  Canada

• Manage reporting, risks, issues and dependencies • Communicate decisions

• Manage Regional Separations

• Discover, develop and recommend • Execute or guide separation

HR Workstreams Broad Based Rewards

Exec Compensation

HR Service Delivery & Payroll

Legal

Site Separations

Benefits

Global Mobility

Labor Relations

HR Data

Form 10

Pension and OPEBs

Communications & Change

P-Chem HR

3rd Party Vendor Management

Staffing

17

RESOURCES

Defined Structure and Experienced Team - HR Global Project Sponsors

HR PMO

Regional Teams US  APAC  EMEA  LatAm  Canada

HR Workstreams Broad Based Rewards

Exec Compensation

HR Service Delivery & Payroll

Legal

Site Separations

Benefits

Global Mobility

Labor Relations

HR Data

Form 10

Pension and OPEBs

Communications & Change

P-Chem HR

3rd Party Vendor Management

Staffing

DELOITTE

MERCER 18

9

STRATEGY

Executive Compensation Matters in a Spin-off 

CEO and senior officer pay packages



Treatment of outstanding equity and LTIP cycles (2013-2015 and 2014-2016)



Deferred compensation plan document for SpinCo



Stock plan document for SpinCo



Non-employee Director compensation in both companies



Public filings related to executive and stock-based compensation



Use of stock compensation; Founders grants? Retention?



SpinCo change-in-control plan



2015 Annual Incentive Plan



2015 LTIP

19

STRATEGY

Executive Compensation HR & Compensation Committee Responsibilities  Review Peer Group of companies for Executive Compensation comparisons Special Committee teleconference  Review final approach to US pension post-spin, as part of Balance Sheet review. This review will also include non-US pensions. Special Committee – October meeting extended one-hour for SpinCo topics  Discuss approach for stock conversion for DuPont employees and for SpinCo employees, including any new SpinCo stock and new share pool (also on Form 10).  Review preliminary draft Form 10 for December 2014 filing  Review preliminary Employee Matters Agreement (includes high level review of employee benefits, severance policies, continuation of employment terms, etc.).

Timing March 2014 April 2014

October 2014

Special Committee teleconference to review December decisions

November 2014

     

December 2014

Discuss initial pay proposal for CEO of SpinCo Agree on initial SpinCo executive stock ownership guidelines Approve recommended STIP for SpinCo for 2015 Approve Equity Plan Document for SpinCo Approve deferred compensation program for SpinCo Approve Change in Control Plan

 Review compensation information on Form 10 for April 2015 filing  Approve talent selection and pay packages for other SpinCo NEOs

January 2015 Ongoing as needed 20

10

STRATEGY

Spin-off Timeline Overview 2014

2015

Q4

Q1

Approve:  Equity conversion Review:  2nd Form 10 filing

Approve:  EIP  CIC Plan  NQDC Plans Review:  1st Form 10 filing  CEO pay review

Q2

Q3

Approve:  Approve CEO Pay  Select Committee Consultant Review:  3rd and final Form 10 filing; includes EMA

Q4

 PChem spins off 7/1  Equity conversion k

21

STRATEGY

Equity Conversion Example Equity Conversion Assumptions (a)

RemainCo Pre-spin Price:

$100.00

assumed

(b)

RemainCo Post-spin Price:

$85.00

assumed

(c)

SpinCo Post-spin Price:

$15.00

assumed

(d)

RemainCo Share Adjustment Ratio:

1.176

(d = a / b)

(e)

RemainCo Option Exercise Price Adjustment Ratio:

0.850

(e = 1 / d)

(f)

SpinCo Share Adjustment Ratio:

(g)

SpinCo Option Exercise Price Adjustment Ratio:

Sample Employee Unvested Shares (pre-spin) @ $100.00 per share Outstanding Shares

Exercise Price

1,000 RSUs

---

1,000 options

$50.00

6.67

(f = a / c)

0.150

(g = 1 / f)

If Employee is Employed by RemainCo (post-spin) @ $85.00 per share

Economic Value

Outstanding Shares

Exercise Price ---

$100,000

1,176 RSUs

($100*1000)

(1,000 * 1.176)

$50,000

1,176 options

($100-$50)*1000

(1,000 * 1.176)

If Employee is Employed by SpinCo (post-spin) @ $15.00 per share

Economic Value

Outstanding Shares

Exercise Price ---

$100,000

6,670 RSUs

($85.00*1176)

(1,000 * 6.67)

$42.50

$50,000

6,670 options

($50.00 * 0.850)

($85.00-$42.50)*1176

(1,000 * 6.67)

Economic Value $100,000 ($15.00*6670)

$7.50

$50,000

($50.00 * 0.150) ($15.00-$7.50)*6670

Note: Calculations based on assumptions subject to change; verify with appropriate tax, accounting, and legal counsel.

22

11

STRATEGY

Outstanding PSUs(2013 & 2014) 

For PSU holders remaining with DuPont:  No change to PSUs beyond the adjustment to maintain economic value (similar to RSUs) 



Current award terms provide for adjustments to revenue and TSR measures, as appropriate How we intend to handle outstanding PSUs for officers going to Chemours:  As the graphic below illustrates, officers will receive a pro-rata award at spin in the form of Chemours RSUs, based on DuPont performance to-date for most of the 2013 grant and half of the 2014 grant 

The remaining portions of the 2013 and 2014 grants will comprise a “make whole” grant to be provided in either Chemours PSUs or RSUs at spin Represents portion of PSU awards needed to be made whole

Spin-off 2014

2013

2015

2016

2013 Grant 2014

2015

2016

2017

2016

2017

2014 Grant 2015

2018

2015 Grant

Commitment 23

STRATEGY

C&B Key Guiding Principles Approach

Description

Clone (or Replicate exactly current design “Lift & Shift”) Clone with Transition

Rationale Minimize disruption (default approach)

Same design, except for transition Minimize disruption, considerations but keep it simple Minor design adjustments, key provisions remain unchanged

Changes required given smaller size

New Design

Significant design changes, e.g., DB to DC, eliminate flex

Avoid DB liabilities, simplicity

Cash out

Convert certain programs to cash

Simplicity (for small countries)

Tweak

24

12

STRATEGY

Other Factors to Consider 

Works Council / Employee representation



Unions / collective bargaining agreements -

Industry-wide

-

DuPont

-

Specific to P-Chem operations



Employment contract aspects



Local Labor requirements regarding transfer of employment



Approach taken to transfer employees to the new Legal Entity -

“fire and rehire” vs. “pure transfer”?

-

Need to references to future-state programs?

25

STRATEGY

PROCESS

Decision-making Process Global consistency vs. local reality vs. getting decisions made!

Global Snapshot

Country Assessments

Country: Country:

Pakistan Pakistan 11/10/2014 11/10/2014

LastUpdate Update Last

Benefits Benefits

Program Mandated Mandated Benefit CurrentSituation Situation Program Benefit Current place by bylaw lawor or Eligibility Eligibility&&##ofof ininplace DesignOverview Overview(if(ifdifferent differentfrom fromstatutory statutoryrequirement) requirement) Structure Design Structure (Yes/No) CBA CBA(Y/N) (Y/N) PChem (Yes/No) PChem

Administration Administration

AdditionalInfo Info Additional

Documentation Documentation Exists Received Received Exists DocumentsName Name Documents (Y/N) (Y/N) (Y/N) (Y/N)

MissingInformation Information(Q&A) (Q&A) Missing Question Question

Answer Answer

RetirementPlans Plans Retirement

Aftercompletion completionofof55years yearsofofservice, service,employees employeesare areeligible eligible After forthe thegratuity gratuitybenefits. benefits. for GratuityScheme Scheme Gratuity

Yes Yes

Yes Yes

Allemployees employees All

ProvidentFund Fund Provident

Yes Yes

Yes Yes

Allemployees employees Employer Employerand andemployee employeeare arecontribute contribute10% 10%ofofbasic basicsalary. salary. All

Yes Yes

Yes Yes

PakistanBenefits Benefits 1)1)Pakistan Harmonizationfinal.docx final.docx Harmonization

Yes Yes

Yes Yes

PakistanBenefits Benefits 1)1)Pakistan Harmonizationfinal.docx final.docx Harmonization

Benefit Benefit monthofofbasic basicsalary salaryfor foreach eachyear yearofofservice service 11month

1.25%ofofFinal FinalAverage AverageSalary Salary(FAS) (FAS)per perYOS, YOS,less less1.25% 1.25%ofof 1.25%

DefinedBenefit Benefit Defined

Yes Yes

No No

Yes Yes

Yes Yes

theWage WageLimit Limit(currently (currentlyPKR PKR8,000 8,000per permonth) month)per perYOS YOS the duringwhich whichthe themember memberwas wasan aninsured insuredperson personunder underthe the during Government’s EOBI Pension Scheme. Allemployees employees Government’s EOBI Pension Scheme. All FAS==Based Basedon onaverage averagemonthly monthlysalary salaryfor forthe thelast last36 36 FAS monthsprior priortototermination. termination. months

Administeredby byfinance finance Administered andprovider providerAl-Hassan Al-Hassan and

Yes Yes

Yes Yes

PakistanBenefits Benefits 1)1)Pakistan Harmonizationfinal.docx final.docx Harmonization

numberofofdependents, dependents, number butparents parentsare arenot not but covered covered

Yes Yes

Yes Yes

PakistanBenefits Benefits 1)1)Pakistan Harmonizationfinal.docx final.docx Harmonization

Renewaldate dateisisApril April11 1)1)Renewal

Yes Yes

Yes Yes

HCIBrochure BrochureDupont DupontAA- 1)1)HCI Karachi.PDF Karachi.PDF

Renewaldate dateisisApril April11 1)1)Renewal

Yes Yes

Yes Yes

PakistanBenefits Benefits 1)1)Pakistan Harmonizationfinal.docx final.docx Harmonization

Yes Yes

Yes Yes

PakistanBenefits Benefits 1)1)Pakistan Harmonizationfinal.docx final.docx Harmonization

Noemployee's employee'scontribution contributionisisrequired. required. No Welfareprograms programs Welfare

Nolimits limitson onthe the 1)1)No Medical(Outpatient) (Outpatient) Medical

Medical(Inpatient) (Inpatient) Medical

Yes Yes

Yes Yes

Allemployees employees All andeligible eligible and dependents dependents

Allemployees employees All andeligible eligible and dependents dependents

Thecompany companyreimburses reimburses100% 100%ofofthe theactual actualcost, cost,with withannual annual The limitofofPKR PKR40,000 40,000for forsingle singlecoverage coverageand andPKR PKR80,000 80,000for for Self-insured limit Self-insured familycoverage. coverage. family Hospitalexpense: expense:PKR PKR100,000 100,000per perconfinement confinement(enhanced (enhancedtoto Hospital PKR150,000 150,000inincase caseofofaccident) accident) PKR R&B:PKR PKR13,200 13,200per perday day R&B: Pre/Posthospitalization hospitalizationdiagnosis: diagnosis:30 30days daysbefore beforeand andafter after Pre/Post Maternity:PKR PKR105,080 105,080for fornormal normaldelivery; delivery;PKR PKR183,890 183,890for for Insured Insuredby byJubilee JubileeLife Life Maternity: C-section Insurance C-section Insurance

Confirmno nolimit limiton oninpatient inpatient 1)1)Confirm reimbursements reimbursements

Thereisisaaannual annuallimit. limit. 1)1)There Policyattached.2) attached.2)There Thereisis Policy nolimit limiton onnumber numberofof no thereany anylimit limiton onthe thenumber number children, children,Parents Parentsare arenot not 2)2)IsIsthere familymembers memberstotobe becovered? covered? covered. covered. ofoffamily

PKR500,000 500,000(per (perperson personper peryear) year)buffer bufferisisavailable availablefor for AAPKR majorand andcomplicated complicatedcases casesininwhich whichthe thehospital hospitalexpense expense major limitisisexhausted. exhausted. limit Deathbenefit benefitdue duetotonatural naturalcause cause Death 24xmonthly monthlysalary salary 24x Deathbenefit benefitdue duetotoaccident accident Death 48xmonthly monthlysalary salary 48x

Country Details Available When Needed

LifeInsurance Insurance Life

Yes Yes

Yes Yes

Allemployees employees Total TotalPermanent PermanentDisability Disability All 24xmonthly monthlysalary salary 24x

Insuredby byMetLife MetLifeAlico Alico Insured

TemporaryTotal TotalDisability Disability(only (onlydue duetotoaccident) accident) Temporary PKR20,000 20,000per permonth month PKR

Dental(stand-alone) (stand-alone) Dental Vision(stand-alone) (stand-alone) Vision LTD(Stand-alone) (Stand-alone) LTD STD STD BusinessTravel TravelAccident Accident Business EAP EAP

Arethese theseall allon onone onepolicy? policy? 1)1)Are Forthe theTemporary TemporaryTotal Total 2)2)For Disabilitybenefit, benefit,what whatisisthe the Disability salaryreplacement replacementpercentage? percentage? salary

24Xsalary salaryfor fordeath deathand and - -24X accidentalpermanent permanent accidental disability(no (nocapping cappingwill willbe be disability applied) applied) 48Xfor foraccidental accidentaldeath death - -48X Temporarydisability disability - -Temporary 20,000PKR PKR 20,000

No No No No No No No No No No No No

Otherprograms programs Other

Employeeswith withless lessthan than55years yearsofofservice service Employees monthofofsalary salaryfor foreach eachyear yearofofservice service 11month Severance Severance

Yes Yes

EmployeeAssistance Assistance Employee

No No

Yes Yes

Allemployees employees Employees Employeeswith with55or ormore moreyears yearsofofservice service All 1.5month monthofofsalary salaryfor foreach eachyear yearofofservice service 1.5

Self-funded Self-funded

Paymentisiscapped cappedatat24 24months monthsofoflast lastdrawn drawnpay. pay. Payment

26

13

PROCESS

Consistent Process, Standard Templates It looks overkill… but it may save you (pun intended) Planning by Phase: Design and Implementation

Governance Structure and Communication Cadence

Consistent Planning and Implementation by Country

27

PROCESS

Tracking & Results Management Dashboards, dashboards, dashboards!!

Data

Design

Implementation 28

14

e change any vendor Future Identify programs for which a AUTOMATIC INTERFACE be Complet 2.7willComplete any necessary 0% 1-Jan-15 28-Feb-15 Joannie Wang KY site HR 100% filing requirements None 11-Jul-14 15-Jul-14 P-Chem HR Lead Task NECESSARY e Future Will transfer Complet Jeffrey Lucia Lan 2.8 date If needed, conduct100% employee enrollment 1-Jan-15 28-Feb-15 Aon Confirm treatment of "banked" vacation days at go-live 11-Jul-14 8-Aug-14 0%Lucia Lan Task to new LE e Tzuoo Not No change in Complet Jeffrey 1-Sep-14 31-Dec-14 Confirm treatment of "banked" vacation days at spin2.9 dateConfirm and document 100% administration procedures 11-Jul-14 8-Aug-14 0%Lucia Lan N/A started treatment of e Tzuoo In 2.91 Include other step here if needed n/a 2 Insured Benefits (medical, life, disability) 20-Jun-14 28-Feb-15 n/a Progress Complet 2.92 Include other step100% here if needed 2.1 Confirm local advisors Aon 20-Jun-14 11-Aug-14 n/aLucia Lan Aonn/a e In Complet Include parental 3 Retirement Plan 20-Jun-14 31-Dec-99 2.2 Confirm date of creation of separate Pchem contracts 100% 1-Mar-15 11-Jul-14 11-Aug-14 Lucia Lan Aon Progress e insurance Complet Identify and document key steps and dates for creation separate Complet 3.1 ofConfirm local advisors 100% None 20-Jun-14 11-Jul-14 Towers Watson 2.3 100% 1-Sep-14 30-Sep-14 Lucia Lan Aon e Pchem contracts e Complet Conduct negotiations with vendor (including vendor3.2 selection if date of creation of separate Pchem Complet Confirmed no Confirm retirement plans 100% 1-Mar-15 11-Jul-14 25-Jul-14 Lucia Lan 2.4 100% 1-Oct-14 30-Nov-14 Lucia Lan Aon e Sourcing applicable) e additional cost Identify and document key steps and dates for creation of separate Complet Identify requirements for exchange of information between vendor, In Including pension 3.3 100% 11-Aug-14 30-Aug-14 Lucia Lan 2.5 1-Nov-14 30-Nov-14 Lucia Lan Smartman Pchem retirement 40% plans e HRIS system and payroll system Progress setting (3.5) Conduct negotiations with vendor (including vendor selection if Complet Define and agree on approach (content, format, timing, Future Include 3.4 100% N/A 1-Oct-14 31-Oct-14 Lucia Lan pension 2.51 0% 1-Dec-14 31-Dec-14 Lucia Lan Smartman applicable) e responsibilities) to exchange information between vendor, HRIS Task setting (3.51) Identify requirements for exchange of information between vendor, Prepare relevant documentation for Pchem plans (insurance contract, 3.5 n/a N/A n/a 1-Aug-14 31-Dec-99 PChem Compensation and Benefits Implementation - Taiwan 2.6 n/a systemN/A n/a HRIS system and payroll ID cards, etc.) New Date last updated: 28-Nov-14 Define and agree on approach (content, format, timing, Future For LI/NHI/LPA 3.51 n/a N/A n/a 31-Dec-99 31-Dec-99 2.7 Complete any necessary filing requirementsCurrent Scheduled 1-Jan-15HRIS28-Feb-15 Joannie Wang KY site HR responsibilities) exchange information Scheduledto0% Task Owner Taskbetween Owner vendor, Supporting Task transfer No. Task Name % Complete Outcome Interdependencies Comments Prepare relevant plans (plan rules, actuarial Resources Future Towers Status Start Date Finish Datedocumentation (P-Chem) for Pchem (vendor) Future 3.6 0% 1-Dec-14 30-Jan-15 Lucia Lan 2.8 If needed, conduct employee enrollment Complet 0% 1-Jan-15 28-Feb-15 Lucia Lan AonTask valuation, etc.) Watson Task 0 Project plan development 20-Jun-14 11-Aug-14 Future e 3.7 Complete any necessary filing requirementsNot 0% 15-Feb-15 28-Feb-15 Lucia Lan 2.9 Confirm and document administration procedures 0% N/A 1-Sep-14 31-Dec-14 Task Complet started 0.1 Complete project plan 100% 20-Jun-14 11-Jul-14 Lucia Lan e 3.8 If needed, conduct employee enrollment n/a N/A n/a 2.91 Include other step here if needed n/a n/a Complet 0.2 Mercer to review project plan and provide comments 100% 11-Jul-14 25-Jul-14 Mercer In e 3.9 Confirm and document administration procedures 20% 1-Sep-14 31-Dec-14 Lucia Lan 2.92 Include other step here if needed n/a n/a Progress Complet 0.3 Finalize project plan 100% 25-Jul-14 11-Aug-14 Lucia Lan Future e 3.91 Pension committee set up In 0% 1-Dec-14 31-Dec-14 Lucia Lan Lucia Lan 3 Retirement Plan 20-Jun-14 31-Dec-99 Task Complet Progress 1 Basic requirements from other workstreams 20-Jun-14 8-Aug-14 In Finance/Tre e 3.92 Cash injection from corporate Complet 20% 1-Oct-14 28-Feb-15 Lucia Lan 3.1 Confirm local advisors 100% None 20-Jun-14 11-Jul-14 Towers Watson Progress asury Complet We don't intend to e 1.1 Identify programs for which a vendor change will be NECESSARY 100% None 20-Jun-14 11-Jul-14 P-Chem HR Lead e change any vendorIn 4 HR Policies (e.g., Allowances / time-off) Complet 11-Jul-14 28-Feb-15 3.2 will Confirm retirement plans 100% 1-Mar-15 11-Jul-14 25-Jul-14 Lucia Lan Lift and Shift Progress Identify programs for which a AUTOMATIC INTERFACE be date of creation of separate PchemComplet e 1.2 100% None 11-Jul-14 15-Jul-14 P-Chem HR Lead Complet NECESSARY Identify and document key steps and dates for ecreation of separate Complet 4.1 Confirm local advisors (if any) 100% None Lucia Lan 3.3 100% 11-Aug-14 30-Aug-14 e Will transfer Complet Jeffrey Lucia Lan e 1.3 Confirm treatment of "banked" vacation days at go-live Pchem date retirement plans 100% 11-Jul-14 8-Aug-14 Lucia Lan Complet to new LE e Tzuoo Conduct negotiations with vendor (including vendor selection if date of creation of separate Pchem Complet The 4.2 Confirm HR Policies 100% 1-Mar-15 11-Jul-14 25-Jul-14 Lucia Lanactuarial work KY site HR 3.4 100% N/A 1-Oct-14 31-Oct-14 e No change in Complet Jeffrey Lucia Lan applicable) e contract is done. 1.4 Confirm treatment of "banked" vacation days at spin date 100% 11-Jul-14 8-Aug-14 Lan and dates for Identify and documentLucia key steps creation of separate Complet treatment of e between Tzuoo Identify requirements for exchange of information vendor, 4.3 100% 11-Jul-14 4-Aug-14 Lucia Lan 3.5 N/A n/a 1-Aug-14 31-Dec-99 see 2.5 Pchem HR policies n/a e In HRIS system and payroll system 2 Insured Benefits (medical, life, disability) 20-Jun-14 Conduct28-Feb-15 negotiations with vendor (including vendor selection if Progress Define and agree on approach (content, format, timing, 4.4 n/a N/A n/a Sourcing 3.51 n/a N/A n/a 31-Dec-99 31-Dec-99 see 2.51 applicable) Completvendor, responsibilities) to exchange information between HRIS 2.1 Confirm local advisors 100% Aon 20-Jun-14 Lucia Lan Aon Identify11-Aug-14 requirements for exchange of information between vendor, HR SD workstream e Prepare relevant documentation for Pchem plans (plan Future Towers 4.5 rules, actuarial n/a n/a 1-Nov-14 30-Nov-14 Lucia Lan Smartman 3.6 0% system 1-Dec-14 30-Jan-15 Lucia Lan HRIS system and payroll (payroll, HRIS) Complet Include parental Task Watson 2.2 Confirm date of creation of separate Pchem contracts valuation, etc.) 100% 1-Mar-15 11-Jul-14 11-Aug-14 Lucia Lan Aon timing, HR SD workstream e 4.51 Define and agree on approach (content, format, insurance Future Government filing for n/a n/a 1-Dec-14 31-Dec-14 Lucia Lan Smartman 3.7 Complete 15-Feb-15 Lucia Lan responsibilities) to0% exchange information between vendor, HRIS28-Feb-15 (payroll, HRIS) Identify and document key steps and dates for creation of separateany necessary filing requirements Complet Task involuntary separation 2.3 100% 1-Sep-14 Lucia Lan for Pchem Aon Prepare 30-Sep-14 relevant documentation HR Policies (HR manual, In Pchem contracts e 4.6 20% 1-Feb-15 28-Feb-15 Lucia Lan KY site HR 3.8selection If needed, n/a N/A n/a etc.) Conduct negotiations with vendor (including vendor if conduct employee enrollment Complet Confirmed no Progress 2.4 100% 1-Oct-14 30-Nov-14 Lucia Lan Aon Sourcing applicable) e additional cost n/a TW will provide 4.7 Complete any necessary filing requirements In n/a Confirm and document administration procedures 20% 1-Sep-14 31-Dec-14 Lucia Lan Identify requirements for exchange of information3.9 between vendor, In Including pension Progress guidance for pension 2.5 40% 1-Nov-14 30-Nov-14 Lucia Lan Smartman HRIS system and payroll system Progress4.8 If needed, conduct employee enrollment Future setting (3.5) n/a n/a 3.91 Pension committee set up 0% 1-Dec-14 31-Dec-14 Lucia Lan Lucia Lan Define and agree on approach (content, format, timing, Future Include pension Task 2.51 0% 1-Dec-14 31-Dec-14 Lucia Lan Smartman Not responsibilities) to exchange information between vendor, HRIS Task 4.9 Confirm and document administration procedures setting (3.51) PChem Compensation and Benefits Implementation - Taiwan In Finance/Tre 0% 1-Sep-14 31-Dec-14 3.92 Cash injection from corporate 20% 1-Oct-14 28-Feb-15 Lucia Lan started Prepare relevant documentation New Date last updated: 28-Nov-14 for Pchem plans (insurance contract, Progress asury 2.6 n/a N/A n/a In ID cards, etc.) In 4.91 Work rule filing 80% 1-Nov-14 31-Dec-14 Lucia Lan Current Scheduled Scheduled Owner Task Owner Supporting 4 HR Policies (e.g., Allowances /Task time-off) No. Task Name % Complete Outcome Interdependencies Comments 11-Jul-14 28-Feb-15 Future For LI/NHI/LPAProgress Progress Status Start Date Finish 0% Date (P-Chem) (vendor)1-Jan-15 28-Feb-15 Joannie Resources 2.7 Complete any necessary filing requirements Wang KY site HR Complet Joannie Task 4.92 C&B policy booklet transfer Complet We don't have any 100% 1-Nov-14 30-Nov-14 Lucia Lan Complet 4.1 Confirm local advisors (if any) 100% None Lucia Lan e Wang/KY Future 0 Project plan development 20-Jun-14 11-Aug-14 vendors for HR policies 2.8 If needed, conduct employee enrollment 0% 1-Jan-15 28-Feb-15 Lucia Lan Aone e In Task 5 Compensation programs Complet 1-Nov-14 28-Feb-15 Complet 4.2 Confirm date of11-Jul-14 creation of separate Pchem HR Policies 100% 1-Mar-15 11-Jul-14 25-Jul-14 Lucia Lan KY site HR Progress Not 0.1 Complete project plan 100% 20-Jun-14 Lucia Lan e 2.9 Confirm and document administration procedures e 0% N/A 1-Sep-14 31-Dec-14 Complet started Identify and document key steps and dates for creation separate Complet 5.1 ofConfirm local advisors (if any) 100% None Complet 4.3 100% 11-Jul-14 4-Aug-14 Lucia Lan e 0.2 Mercer to review project plan and provide comments 100% 11-Jul-14 25-Jul-14 Mercer e 2.91 Include other step here if needed n/a e Pchem HR policies n/a Conduct negotiations with vendor (including vendor5.2 selection if date of creation of separate Pchem compensation programs Confirm n/a 1-Mar-14 n/a Complet 4.4 n/a N/A n/a Sourcing 0.3 Finalize project plan 100% 25-Jul-14 11-Aug-14 Lucia Lan 2.92 Include other step here if needed n/a n/a e applicable) Identify requirements for exchange of information between vendor, 5.3 Identify needs to changes to the Pchem compensation programs n/a N/A n/a HR SD workstream Complet 4.5 n/a n/a 1-Nov-14 30-Nov-14 Lucia Lan Smartman see 5.91 In 1 Basic requirements from other workstreams 20-Jun-14 8-Aug-14 (payroll, HRIS) 3 Retirement Plan 20-Jun-14 e HRIS system and payroll system Identify 31-Dec-99 key steps and dates for creation of separate Pchem Progress Define and agree on approach (content, format, timing, 5.4 n/a N/A n/a HR SD workstream Complet We don't intend 4.51 n/a n/a to1-Dec-14 31-Dec-14 Lucia Lan Smartman see 5.91 compensation programs Completvendor, 1.1 Identify programs for which a vendor change will be NECESSARY 100% None 20-Jun-14 11-Jul-14 P-Chem HR Leadbetween information HRIS (payroll, HRIS) 3.1 Confirm local advisors 100% None 20-Jun-14 Towers Watsonchange e responsibilities) to exchange any vendor vendor selection if Conduct 11-Jul-14 negotiations with vendor (including Prepare relevant documentation for Pchem HRePolicies In Transfer country HR 5.5 (HR manual, n/a N/A n/a Identify programs for which a AUTOMATIC INTERFACE will be Complet 4.6 20% 1-Feb-15 28-Feb-15 Lucia Lan KY site HR applicable) 1.2 100% None 11-Jul-14 15-Jul-14 P-Chem HR Lead Complet Progress process to PChem HR 3.2 Confirm date of creation of separate Pchem retirement plans 100% 1-Mar-15 11-Jul-14 25-Jul-14 Lucia Lan Lift and Shift NECESSARY e etc.) Identify requirements for exchange of information between vendor, e 5.6 n/a N/A n/a Will transfer Complet Jeffrey 4.7 Complete any necessary requirements n/a n/a See 4.91 HRIS system and payroll system Identify and document key steps and dates for creation of separate Complet 1.3 Confirm treatment of "banked" vacation days at go-live date 100% 11-Jul-14 8-Aug-14 filingLucia Lan 3.3 100% 11-Aug-14 30-Aug-14 Lucia Lan(content, format, timing, to new LE e Tzuoo Define and agree on approach Pchem retirement plans e 5.61 n/a N/A n/a No change in Complet Jeffrey information between 4.8selection If needed, employee Lucia enrollment n/a responsibilities) ton/a exchange vendor, HRIS Conduct vendor (including vendor if conduct Complet The actuarial work 1.4 Confirm treatment of "banked" vacation days at spin date negotiations with 100% 11-Jul-14 8-Aug-14 Lan 3.4 100% N/A 1-Oct-14 31-Oct-14 Tzuoo Lucia Lan treatment of e applicable) e contract Will find a part time 5.7 Prepare relevant documentation for Pchem Not compensation programs n/a N/Ais done. n/a In Confirm and document administration procedures 0% 1-Sep-14 31-Dec-14 Identify requirements for exchange of information4.9 between vendor, 28-Feb-15 2 Insured Benefits (medical, life, disability) 20-Jun-14 started worker for copying the 3.5 n/a N/A n/a 1-Aug-14 31-Dec-99 see 2.5 Progress HRIS system and payroll system 5.8 If needed, conduct employee enrollment In n/a N/A n/a Complet 4.91 Work rule filing11-Aug-14 80% 1-Nov-14 31-Dec-14 Lucia Lan Define and agree on approach format, timing, 2.1 Confirm local advisors 100% (content,Aon 20-Jun-14 Lucia Lan Aon Progress 3.51 n/a N/A n/a 31-Dec-99 31-Dec-99 see 2.51 e In responsibilities) to exchange information between vendor, HRIS Complet Joannie 5.9 Confirm and document administration procedures 1-Nov-14 31-Dec-14 Pchem HR lead Complet Include parental 1-Nov-14 30-Nov-14 20% policy booklet 100% Lucia Lan Progress Prepare relevant documentation Pchem plans 4.92 (plan C&B rules, actuarial Future Towers 2.2 Confirm date of creation of separate Pchem contracts 100% for1-Mar-15 11-Jul-14 11-Aug-14 Lucia Lan Aon Wang/KY 3.6 0% 1-Dec-14 30-Jan-15 Lucia Lan insurance e e In valuation, etc.) Task 5.91 Payroll system-Smartman implementation Watson In 60% 1-Jan-15 28-Feb-15 Lucia Lan Identify and document key steps and dates for creation of separate Complet 5 Compensation 1-Nov-14 28-Feb-15 Progress Future Government filing for 2.3 100% 1-Sep-14 programs 30-Sep-14 Lucia Lan Aon Progress 3.7 Complete any necessary filing requirements 0% 15-Feb-15 28-Feb-15 Lucia Lan Pchem contracts e Future Task 5.92 Cathay Bank for saving program Confirmed involuntary separation Complet WeWang don't have local 0% 1-Dec-14 31-Dec-14 Joannie Conduct negotiations with vendor (including vendor selection if Complet no 5.1 Confirm local advisors (if any) Lucia Lan 100%SourcingNone Task 2.4 100% 1-Oct-14 30-Nov-14 Aon e compensation 3.8 If needed, conduct employee enrollment n/a N/A n/a applicable) e additional cost In 6 Work Council / Union / Employee Including Representatives Consultations 20-Jun-14 30-Nov-14 Identify requirements for exchange of information between vendor, pension 5.2In Confirm date of30-Nov-14 creation of separate Pchem compensation programs n/a 1-Mar-14 n/a In TW will provideProgress 2.5 40% 1-Nov-14 Lucia Lan Smartman 3.9 Confirm and document administration procedures 20% 1-Sep-14 31-Dec-14 Lucia Lan setting HRIS system and payroll system Progress (3.5) with union / works consultation Complet Progress6.1 Review strategy for negotiations /Include guidance for pension 100% 20-Jun-14 2-Aug-14 Jeffrey Tzuoo Labor relations Lucia Lan Define and agree on approach (content, format, timing, Future pension 5.3 Identify needs to changes to the Pchem n/a of final compensation N/A n/a council, in the context and benefits decisions e Future 2.51 0% 1-Dec-14 31-Dec-14 Lucia Lan compensation Smartmanprograms 3.91 Pension set up 0% 1-Dec-14 31-Dec-14 Lucia Lan setting Lucia Lan responsibilities) to exchange information between vendor,committee HRIS Task (3.51) Complet Task 6.2 Identify key steps and dates for creation of separate Pchem If needed, prepare materials for negotiation / consultation 100% 20-Jun-14 2-Aug-14 Jeffrey Tzuoo Labor relations Lucia Lan Prepare relevant documentation for Pchem plans (insurance contract, 5.4 n/a N/A n/a e In Finance/Tre 2.6 n/a N/A n/a compensation programs 3.92 Cash injection from corporate 20% 1-Oct-14 28-Feb-15 Lucia Lan ID cards, etc.) In Progress asury60% Conduct negotiations with vendor (including vendor6.3 selection if negotiation / consultationFor LI/NHI/LPA Perform 20-Jun-14 30-Nov-14 Jeffrey Tzuoo Labor relations Lucia Lan Future 5.5 n/a n/a Progress In 2.7 Complete any necessary filing requirements 0% 1-Jan-15 28-Feb-15 Joannie Wang KY site HR N/A 4 HR Policies (e.g., Allowances / time-off) 11-Jul-14 28-Feb-15 Task applicable) transfer Progress Identify requirements for exchange of information between vendor, 6.4 Obtain employee consent, if necessary n/a n/a Jeffrey Tzuoo Labor relations Lucia Lan Future 5.6 n/a N/A n/a Complet We don't have any 2.8 If needed, conduct employee enrollment 0% 1-Jan-15 28-Feb-15system Lucia Lan Aon 4.1 Confirm local advisors (if any) 100% None Lucia Lan Task HRIS system and payroll Complet vendors for HR policies 6-Aug-14 15-Aug-14 Jeffrey Tzuoo 6.41 Communicate with Taipei union and PChem employees 100% Labor relations Lucia Lan Not Define and agree on approach (content, format,e timing, 5.61 n/a N/A n/a e Completvendor, HRIS 2.9 Confirm and document administration procedures 0% N/A 1-Sep-14 31-Dec-14 responsibilities) to exchange information between 4.2 Confirm date of creation of separate Pchem HR Policies 100% 1-Mar-15 11-Jul-14 25-Jul-14 Lucia Lan KY site HR started Complet e 6.42 Functional employee communication 100% 1-Sep-14 30-Sep-14 Jeffrey Tzuoo Labor relations Lucia Lan 5.7 relevant documentation for PchemComplet compensation programs n/a N/A n/a e Identify and document keyn/a steps and dates for creation of separate 2.91 Include other step here if needed n/a Prepare 4.3 100% 11-Jul-14 Lucia Lan Management / Communication Develop4-Aug-14 Benefits-related Change In Pchem HR policies e 7 20-Jun-14 31-Jan-15 5.8 If needed, n/a N/A n/a Material Progress Conduct negotiations withn/a vendor (including vendor selection if conduct employee enrollment 2.92 Include other step here if needed n/a 4.4 n/a N/A n/a Sourcing Understand overall country communication strategy (e.g., Complet applicable) In 100% 20-Jun-14 28-Aug-14 Jeffrey Tzuoo Communications Mercer In Confirm and document administration procedures 7.1 stakeholders, timing 20% 1-Nov-14 31-Dec-14 Pchem HR lead and staging for communication,HR media) e Identify requirements for exchange of information5.9 between vendor, 31-Dec-99 SD workstream 3 Retirement Plan 20-Jun-14 Progress 4.5 n/a n/a 1-Nov-14 30-Nov-14 Lucia Lan Smartman see 5.91 Progress Develop country-specific comp&ben communication plan, in line with Complet HRIS system and payroll system (payroll, HRIS) In 7.2 100% 1-Aug-14 15-Aug-14 Lucia Lan Communications Mercer Complet 5.91 Payroll system-Smartman 60% 1-Jan-15 28-Feb-15 Lucia Lan Testing is in progress. overall country communication strategy and with global comp&ben e Define and agree on approach format, timing, 3.1 Confirm local advisors 100% (content, None 20-Jun-14 11-Jul-14 implementation Towers Watson Progress HR SD workstream 4.51 n/a n/a 1-Dec-14 31-Dec-14 Luciacomp&ben Lan Smartman see 5.91 e Customize country-specific communication(payroll, materialHRIS) based Complet responsibilities) to exchange information between vendor, HRIS Future 7.3 100% 21-Jul-14 3-Aug-14 Lucia Lan Communications Mercer Complet 5.92 Cathay Bank for25-Jul-14 saving program 0% centrally Lift and Shift 1-Dec-14 31-Dec-14 Joannie Transfer Wang country HR Will start in December on templates prepared e Prepare relevant documentation Pchem HR Policies (HR 11-Jul-14 manual, In 3.2 Confirm date of creation of separate Pchem retirement plans 100% for1-Mar-15 Lucia Lan Task 4.6 20% 1-Feb-15 28-Feb-15 Lucia Lan KY site HR e etc.) of separate Progress7.4 Obtain necessary local sign-off on communication process to PChemn/a HR In materials n/a Lucia Lan Mercer Identify and document key steps and dates for creation Complet 6 Work Council /30-Aug-14 Union / Employee Consultations 20-Jun-14 30-Nov-14 3.3 100% 11-Aug-14 LuciaRepresentatives Lan Progress 4.7 Complete any necessary filing requirements n/a n/a See 4.91 Pchem retirement plans e Complet Review strategy for negotiations / consultation with7.5 union / works communication materials Complet Distribute employees 6-Aug-14 15-Aug-14 Lucia Lan KY site HR Conduct negotiations with vendor (including vendor selection if Complet Thetoactuarial work20-Jun-14 2-Aug-14 100% 6.1 100% Jeffrey Tzuoo Labor relations Lucia Lan e 3.4 100% N/A 1-Oct-14 31-Oct-14 Lucia Lan e 4.8 If needed, conduct employee enrollment n/aof final compensation and n/a benefits decisions applicable) e council, in the context contract is done. In Towers Complet 7.51 Welfare Committee Setup 20% 1-Jan-15 31-Jan-15 Identify requirements for exchange of information between vendor, 6.2 prepare materials for negotiation /Not consultation 100% 20-Jun-14 2-Aug-14 Jeffrey Tzuoo Labor relations Lucia Lan Progress Watson Will find a part time 3.5 n/a N/A n/a If needed, 1-Aug-14 31-Dec-99 see 2.5 e 4.9 Confirm and document administration procedures 0% 1-Sep-14 31-Dec-14 HRIS system and payroll system Joannie started 7.52 Offer Letter/Guarantee letter worker for copyingInthe 1-Nov-14 15-Dec-14 In Union 80% Lucia Lan voting didn't Define and agree on approach (content, format, timing, 6.3 negotiation / consultation 60% Progress Labor relations Lucia Lan Wang In 3.51 n/a N/A n/a Perform 31-Dec-99 31-Dec-99 see 2.51Progress 20-Jun-14 30-Nov-14 Jeffrey Tzuoo pass so may need to 4.91 Work rule HRIS filing 80% 1-Nov-14 31-Dec-14 Lucia Lan responsibilities) to exchange information between vendor, In Progress 8 Transition of Work to P-Chem and at Cutover 1-Nov-14 28-Feb-15 Prepare relevant documentation for Pchem plans (plan rules, actuarial Future Towers 6.4 Obtain employee consent, if necessary n/a n/a Jeffrey Tzuoo Progress Labor relations Lucia Lan Complet Joannie 3.6 0% 1-Dec-14 30-Jan-15 Lucia Lan 4.92 C&B policy booklet 100% 30-Nov-14 Lucia Lan valuation, etc.) Task Watson1-Nov-14 Design triage support process to manage queries as a result of cutover, Wang/KY Future e Complet 8.1 0% 1-Jan-15 28-Feb-15 Lucia Lan Future Government filingin6-Aug-14 for KY site HR 6.41 Communicate Taipei union andLan PChem employees 100% with DuPont 15-Aug-14 Jeffrey Tzuoo Labor relations Lucia Lan including confirmation as to their role cut over support Task In 3.7 Complete any necessary filing requirements 0% 15-Feb-15 with 28-Feb-15 Lucia e 5 Compensation programs 1-Nov-14 28-Feb-15 transfer from DuPont Task involuntary Ensure information HR toseparation P-Chem and relevant Progress Complet Future Labor relations Lucia Lan 6.42 100% 1-Sep-14 30-Sep-14 Jeffrey Tzuoo progress employee processing at the cut over for 0% 1-Jan-15 28-Feb-15 Lucia Lan Complet8.2 parties, based on in We don't have local 3.8 If needed, conduct employee enrollment n/a N/A n/a Functional employee communication e Task 5.1 Confirm local advisors (if any) 100% None the end of the TSA KY site HR compensation Develop Benefits-related Change Managemente/ Communication In TW will provide 7In 20-Jun-14 31-Jan-15 3.9 Confirm and document administration procedures 20% 1-Sep-14 31-Dec-14 Lucia Lan In Frances/Wa Material Progress 5.2 Confirm date of creation of separate Pchem compensation programs n/a 1-Mar-14 n/a 8.21 Global mobility Progress guidance for pension 20% 1-Nov-14 31-Dec-14 Lucia Lan Progress tanabe san Understand overall country communication strategy (e.g., Complet Future 7.1 100% 20-Jun-14 28-Aug-14 Jeffrey Tzuoo 3.91 Pension committee set up 0% 1-Dec-14 timing 31-Dec-14 Lucia Lan Lucia Lan Future Communications Mercer stakeholders, and staging for media) e 5.3 Identify needs to changes to the Pchem compensation n/a N/Acommunication, n/a 8.22 Taskprograms 3rd party contractor in Taipei (Amy Tung, Jennifer Hu) 0% 1-Feb-15 28-Feb-15 Lucia Lan KY site HR Task Develop country-specific comp&ben communication plan, in line with Complet Finance/Tre 7.2InPchem 1-Oct-14 28-Feb-15 100% 1-Aug-14 15-Aug-14 Lucia Lan Communications Mercer Identify key steps and dates 3.92 Cash injection from corporate 20%for creation of separate Lucia Lan and with global comp&ben overall country communication strategy e 5.4 n/a N/A n/a Progress asury compensation programs Complet In Customize country-specific comp&ben communication material based 7.3 100% 21-Jul-14 3-Aug-14 Lucia Lan Communications Mercer Conduct negotiations with vendor (including vendor selection if 4 HR Policies (e.g., Allowances / time-off) 11-Jul-14 28-Feb-15 on templates prepared e 5.5 n/acentrally N/A n/a Progress applicable) Complet We don't have Obtain necessary local sign-offLucia on communication materials n/a n/a any Lucia Lan Mercer 2 Steps for Taiwan Identify requirements for100% exchange ofNone information7.4 between vendor, 4.1 Confirm local advisors (if any) Lan 5.6 n/a N/A n/a e vendors for HR policies HRIS system and payroll system Complet Functional employees Complet 7.5 Distribute communication to employees 100% 6-Aug-14 15-Aug-14 Lucia Lan KY site HR Define and agree on approach format, timing, 4.2 Confirm date of creation of separate Pchem HR Policies 100% (content, 1-Mar-15 11-Jul-14 25-Jul-14 materials Lucia Lan KY site HR e will be distributed in 5.61 n/a N/A n/a e responsibilities) vendor, HRIS In Towers Waiting for the LE rep. Identify and document key steps and dates for creation of separateto exchange information between Complet 7.51 Welfare Committee Setup 20% 1-Jan-15 31-Jan-15 4.3 100% 11-Jul-14 4-Aug-14 Lucia Lan Progress Watson confirmation 5.7 Prepare relevant documentation for Pchem compensation programs n/a N/A n/a Pchem HR policies e In Joannie Plan to deliver on Dec Conduct negotiations with vendor (including vendor selection if 7.52 80% Sourcing 1-Nov-14 15-Dec-14 Lucia Lan 4.4 n/a N/A n/a Offer Letter/Guarantee letter Progress Wang 1st 5.8 If needed, conduct employee enrollment n/a N/A n/a applicable) In Identify requirements for exchange of information between vendor, HR SD workstream 8n/a Transition of Work to P-Chem Lucia and atLan Cutover Smartman In 4.5 n/a 1-Nov-14 30-Nov-14 see 5.91Progress 1-Nov-14 28-Feb-15 5.9 Confirm and document administration procedures 20% 1-Nov-14 31-Dec-14 HRIS system and payroll system (payroll, HRIS) Pchem HR lead Progress Design triage support process to manage queries as a resultHR of SD cutover, Future Define and agree on approach (content, format, timing, workstream 8.1 0% 1-Jan-15 28-Feb-15 Lucia Lan Handover HR policies In 4.51 n/a n/a including 1-Dec-14 31-Dec-14 Lucia Lan Smartman see 5.91 Task KY site HR confirmation with DuPont as to their role in cut over support 5.91 Payroll system-Smartman implementation 60% 1-Jan-15 28-Feb-15 Lucia Lan Testing is in progress. responsibilities) to exchange information between vendor, HRIS (payroll, HRIS) Progress to P-Chem and relevant P-filing, CRIM. We Prepare relevant documentation for Pchem HR Policies (HR manual, In Ensure information transfer from DuPont HR Transfer Future country HR Future 4.6 20% 1-Feb-15 28-Feb-15 Lucia Lan processing at the cut over for KY site HR 8.2 parties, based on in progress employee 1-Jan-15 28-Feb-15 Lucia Lan don't have TSA in 5.92 Cathay Bank for saving program 0% 1-Dec-14 31-Dec-14 0% Joannie Wangprocess to PChem HR Will start in December etc.) Progress Task Task the end of the TSA KY site HR Taiwan In 4.7 Complete any necessary filing requirements n/a n/a See 4.91 6 Work Council / Union / Employee Representatives Consultations 20-Jun-14 30-Nov-14 In Frances/Wa Ensure what system Progress 8.21 Global mobility 20% 1-Nov-14 31-Dec-14 Lucia Lan Progress tanabe san they will use Review strategy for negotiations / consultation withn/a union / works Complet 4.8 If needed, conduct employee enrollment n/a 6.1 100% 20-Jun-14 2-Aug-14 Jeffrey Tzuoo Labor relations Lucia Lan Future Will transfer council, in the context of final compensation and benefits e Hu) 8.22 party contractor in Taipei (Amy Tung, Jennifer 0% 1-Feb-15 28-Feb-15 Lucia Lan KY site HR Not 3rddecisions Will find aTask part time employment at 3/1 as Complet 4.9 Confirm and document administration procedures 0% 1-Sep-14 31-Dec-14 6.2 If needed, prepare materials for negotiation / consultation 100% 20-Jun-14 2-Aug-14 Jeffrey Tzuooworker for copying the Labor relations Lucia Lan started e In In Union voting didn't 4.91 Work rule filing 80% 1-Nov-14 31-Dec-14 Lucia Lan 6.3 Perform negotiation / consultation 60% 20-Jun-14 30-Nov-14 Jeffrey Tzuoo Labor relations Lucia Lan Progress Progress pass so may need to Complet Joannie 4.92 C&B policy booklet 100% 1-Nov-14 30-Nov-14 Lucia Lan 6.4 Obtain employee consent, if necessary n/a n/a Jeffrey Tzuoo Labor relations Lucia Lan e Wang/KY In Complet 5 Compensation programs 1-Nov-14 28-Feb-15 6.41 Communicate with Taipei union and PChem employees 100% 6-Aug-14 15-Aug-14 Jeffrey Tzuoo Labor relations Lucia Lan Progress e Complet We don't have local Complet 5.1 Confirm local advisors (if any) 100% None 6.42 Functional employee communication 100% 1-Sep-14 30-Sep-14 Jeffrey Tzuoocompensation Labor relations Lucia Lan e e Develop Benefits-related Change Management In 5.2 Confirm date of creation of separate Pchem compensation programs n/a 1-Mar-14 / Communication n/a 7 20-Jun-14 31-Jan-15 Material Progress 1.2

For LI/NHI/LPA transfer

1.3 1.4

Lift and Shift

The actuarial work contract is done. see 2.5 see 2.51

Government filing for involuntary separation

PROCESS

Implementation Phase

Work performed locally… with central oversight and support

STRATEGY

Understand overall country communication (e.g., Identify needs to changes to the Pchem compensation programs n/a N/A strategyn/a 7.1 stakeholders, timing and staging for communication, media) Identify key steps and dates for creation of separate Pchem Develop country-specific comp&ben communication plan, in line with n/a N/A n/a 7.2 compensation programs overall country Conduct negotiations with vendor (including vendor selection if communication strategy and with global comp&ben Customize country-specific comp&benN/A communication n/a n/a material based 7.3 applicable) templates prepared centrally Identify requirements for exchange of informationon between vendor, 5.6 n/a N/A n/a 7.4 Obtain necessary local sign-off on communication materials HRIS system and payroll system Define and agree on approach (content, format, timing, 5.61 n/a N/A n/a 7.5 Distribute communication materials to employees responsibilities) to exchange information between vendor, HRIS

5.3 5.4 5.5

N/A

n/a

5.8

If needed, conduct employee enrollment

N/A

n/a

5.9

Confirm and document administration procedures 20% 8 Transition of Work to P-Chem and at Cutover

n/a 7.52 Offer Letter/Guarantee letter

100% 100% 100% n/a

100% 20% 80%

8.1

5.92 Cathay Bank for saving program

6.3 6.4

Obtain employee consent, if necessary

n/a

6.41 Communicate with Taipei union and PChem employees

100%

6.42 Functional employee communication

100%

Strategy

7 7.1 7.2 7.3

Develop Benefits-related Change Management / Communication Material Understand overall country communication strategy (e.g., stakeholders, timing and staging for communication, media) Develop country-specific comp&ben communication plan, in line with overall country communication strategy and with global comp&ben Customize country-specific comp&ben communication material based on templates prepared centrally

7.4

Obtain necessary local sign-off on communication materials

7.5

Distribute communication materials to employees

7.51 Welfare Committee Setup

8

8.2

100% 100% 100% n/a 100% 20%

7.52 Offer Letter/Guarantee letter

8.1

n/a

80%

Transition of Work to P-Chem and at Cutover Design triage support process to manage queries as a result of cutover, including confirmation with DuPont as to their role in cut over support Ensure information transfer from DuPont HR to P-Chem and relevant parties, based on in progress employee processing at the cut over for the end of the TSA

0% 0%

Mapping/Planning

8.21 Global mobility

20%

8.22 3rd party contractor in Taipei (Amy Tung, Jennifer Hu)

0%

Jeffrey Tzuoo

Communications Mercer

Lucia Lan

Communications Mercer

Lucia Lan

see 5.91 Transfer country HR process to PChem HR See 4.91

Will find a part time worker for copying the

We don't have local compensation

Testing is in progress. Will start in December

Union voting didn't pass so may need to

2 Steps for Taiwan Functional employees will be distributed in Waiting for the LE rep. confirmation Plan to deliver on Dec 1st

Handover HR policies P-filing, CRIM. We don't have TSA in Taiwan Ensure what system they will use Will transfer employment at 3/1 as

29

PROCESS

Communications Mercer

Lucia Lan

Complet 6-Aug-14 15-Aug-14 e In 1-Jan-15 31-Jan-15 Progress In 1-Nov-14 15-Dec-14 Progress In Pchem HR lead 1-Nov-14 28-Feb-15 Progress Future Lucia Lan 1-Jan-15 28-Feb-15 Task Joannie Wang Future 1-Jan-15 28-Feb-15 Task

In 1-Nov-14 31-Dec-14 Progress In Design triage support process of cutover,28-Feb-15 60% to manage queries as a result 1-Jan-15 0% Progress including confirmation with DuPont as to their role in cut over support Future 0%from DuPont HR to P-Chem and1-Dec-14 Ensure information transfer relevant 31-Dec-14 Task 8.2 parties, based on in progress employee processing at 0% Inthe cut over for Work Council / Union / Employee Representativesthe Consultations 20-Jun-14 30-Nov-14 end of the TSA Progress In Review strategy for negotiations / consultation union / works Complet 8.21with Global mobility 20% Jeffrey Tzuoo 1-Nov-14 100% 20-Jun-14 2-Aug-14 Labor31-Dec-14 relations Progress council, in the context of final compensation and benefits decisions e Future Complet 3rd party contractor in Taipei 0% 1-Feb-15 If needed, prepare materials for negotiation8.22 / consultation 100%(Amy Tung, Jennifer Hu) 20-Jun-14 2-Aug-14 Jeffrey Tzuoo Labor28-Feb-15 relations Task e In Perform negotiation / consultation 60% 20-Jun-14 30-Nov-14 Jeffrey Tzuoo Labor relations Progress

5.91 Payroll system-Smartman implementation

6.2

see 5.91

Mercer

Lucia Lan

KY site HR

2 Steps for Taiwan

Functional employees will be distributed in Waiting for the LE rep. confirmation Plan to deliver on Dec 1st

There is never a perfect timing…

Prepare relevant documentation for Pchem compensation programs n/a 7.51 Welfare Committee Setup

6.1

We don't have any vendors for HR policies

What about Communications?

5.7

6

Complet 20-Jun-14 28-Aug-14 e Complet 1-Aug-14 15-Aug-14 e Complet 21-Jul-14 3-Aug-14 e

TW will provide guidance for pension

n/a Complet e Complet e In Progress Complet e Complet e Complet e

Joannie Wang

Lucia Lan

Lucia Lan

Testing is in progress. KY site HR

Will start in December

Lucia Lan Lucia Lan Lucia Lan Lucia Lan

Lucia Lan

Labor relations

Lucia Lan

6-Aug-14 15-Aug-14

Jeffrey Tzuoo

Labor relations

Lucia Lan

1-Sep-14 30-Sep-14

Jeffrey Tzuoo

Labor relations

Lucia Lan

Handover HR policies

P-filing, CRIM. We don't have TSA in KY site HR Taiwan Frances/Wa Ensure what system tanabe san they will use Will transfer KY site HR employment at 3/1 as

Lucia Lan

Jeffrey Tzuoo

Union voting didn't pass so may need to

20-Jun-14 31-Jan-15 20-Jun-14 28-Aug-14

Jeffrey Tzuoo

1-Aug-14 15-Aug-14

Lucia Lan

21-Jul-14

Lucia Lan

3-Aug-14

Communications Mercer Communications Mercer Communications Mercer

Region Lucia Lan Country

n/a

Complet 6-Aug-14 15-Aug-14 e In 1-Jan-15 31-Jan-15 Progress In 1-Nov-14 15-Dec-14 Progress In 1-Nov-14 28-Feb-15 Progress Future 1-Jan-15 28-Feb-15 Task Future Task

Towers Watson

1-Jan-15

28-Feb-15

Letter

Lucia Lan

US

Yes Towers Watson

Approx No of Benefits Manager unique draft SummaryMercer Q&A2 Steps for Talk Taiwan docs Mercer "Brochure" Points Functional employees will deliver KY site HR

Yes

Joannie Wang

Lucia Lan

Brazil

Yes Yes

Lucia Lan

Canada

No Yes

Lucia Lan

Americas

In 1-Nov-14 31-Dec-14 Progress Future 1-Feb-15 28-Feb-15 Task

Lucia Lan Lucia Lan Colombia/Chile/ A

Yes

B

Mexico /Argentina

Yes

No

Yes KY site YesHR

will be distributed in Yesfor the LE rep. Waiting confirmation Plan to deliver on Dec 1st

Yes Yes

Handover HR policies

P-filing, CRIM. We don't have TSA in KY site HR Taiwan Frances/Wa Ensure what system tanabe san they will use Will transfer KY site HR employment at 3/1 as

Yes (DB FAQs for one Argentine employee) Yes

Number of final versions created by local HR

4

4

3 4

3 4

2

7

Version Notes

Special Cases

Complex. Use all 4 tools Q&A needed in Brazil for 15 DB plan members. May ultimately only need to be distributed to those 15 Complex. Recommend all 4 tools Core 'no change' letter; final to include 3 versions of letter, 3 of talk points and 1 DB FAQ A. Mexico - Prepare a 'modular paragraph' explaining tweaks to flex. benefits B. Argentina - has one ee who is retiring in the DB plan - provide a Recommend a DB FAQ for the one unique Q&A participant in Argentina

Developing / Delivering 30

15

Some Critical Challenges 

Employee rights in certain countries



Finding insured benefit programs in some countries for small populations



Splitting pension funds



Parent company stock in retirement plans and what happens at spin



Communications



Transition for expatriates

31

In Conclusion 

Strategy Alignment: Key to Manage through Ambiguity and Timelines



Structure: Global, Regional, Local, HR PMO Alignment



Roles and Accountability: DuPont, P-Chem, Mercer, Deloitte, others



Governance: Decision Escalation and Making



Tools: Consistent Across all Countries 32

16