# EDGAR Filing Document

**Accession Number:** 0000055785
**File Stem:** 0000055785-25-000080
**Filing Date:** 2025-8
**Character Count:** 1550374
**Document Hash:** 0305d2f6abb80cfeb76711d945ae1943
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000055785-25-000080.hdr.sgml**: 20250801

**ACCESSION NUMBER**: 0000055785-25-000080

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 64

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250801

**DATE AS OF CHANGE**: 20250801

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KIMBERLY CLARK CORP
- **CENTRAL INDEX KEY:** 0000055785
- **STANDARD INDUSTRIAL CLASSIFICATION:** CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 390394230
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-00225
- **FILM NUMBER:** 251174642

**BUSINESS ADDRESS:**
- **STREET 1:** 351 PHELPS DRIVE
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75038
- **BUSINESS PHONE:** 9722811200

**MAIL ADDRESS:**
- **STREET 1:** P O BOX 619100
- **STREET 2:** DFW AIRPORT STATION
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75261-9100

?xml version='1.0' encoding='ASCII'? kmb-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

**(Mark One)**

☒&nbsp;&nbsp;&nbsp;&nbsp;**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

☐&nbsp;&nbsp;&nbsp;&nbsp;**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________ to ________**

**Commission file number 1-225** 

![K-C Logo Blue (JPG).jpg](kmb-20250630_g1.jpg)

**KIMBERLY-CLARK CORPORATION**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **39-0394230** |
| **(State or other jurisdiction of<br>incorporation)** | **(I.R.S. Employer<br>Identification No.)** |

---

**P.O. Box 619100**

**Dallas, TX**

**75261-9100** 

**(Address of principal executive offices)**

**(Zip code)**

**(972) 281-1200** 

**(Registrant's telephone number, including area code)**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock-$1.25 par value | KMB | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ⌧ No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ⌧ | Smaller reporting company | ☐ |
| Accelerated filer | ☐ | Emerging growth company | ☐ |
| Non-accelerated filer | ☐ | | |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ⌧

As of July 25, 2025, there were 331,779,938 shares of the Corporation's common stock outstanding.

------

**Table of Contents**

---

| | |
|:---|:---|
| <u>[PART I – FINANCIAL INFORMATION](#ic72c65c883fb4913b5c5536bc0316e99_10)</u> | <u>[1](#ic72c65c883fb4913b5c5536bc0316e99_10)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 1. Financial Statements](#ic72c65c883fb4913b5c5536bc0316e99_13)</u> | <u>[1](#ic72c65c883fb4913b5c5536bc0316e99_13)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Income for the Three](#ic72c65c883fb4913b5c5536bc0316e99_16)[and Six](#ic72c65c883fb4913b5c5536bc0316e99_16)[Months Ended](#ic72c65c883fb4913b5c5536bc0316e99_16)[June](#ic72c65c883fb4913b5c5536bc0316e99_16)[3](#ic72c65c883fb4913b5c5536bc0316e99_16)[0](#ic72c65c883fb4913b5c5536bc0316e99_16)[, 2025 and 2024](#ic72c65c883fb4913b5c5536bc0316e99_16)</u> | <u>[1](#ic72c65c883fb4913b5c5536bc0316e99_16)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Comprehensive Income for the Three](#ic72c65c883fb4913b5c5536bc0316e99_19)[and Six](#ic72c65c883fb4913b5c5536bc0316e99_19)[Months Ended](#ic72c65c883fb4913b5c5536bc0316e99_19)[June](#ic72c65c883fb4913b5c5536bc0316e99_19)[3](#ic72c65c883fb4913b5c5536bc0316e99_19)[0](#ic72c65c883fb4913b5c5536bc0316e99_19)[, 2025 and 2024](#ic72c65c883fb4913b5c5536bc0316e99_19)</u> | <u>[2](#ic72c65c883fb4913b5c5536bc0316e99_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Balance Sheets as of](#ic72c65c883fb4913b5c5536bc0316e99_22)[June](#ic72c65c883fb4913b5c5536bc0316e99_22)[3](#ic72c65c883fb4913b5c5536bc0316e99_22)[0](#ic72c65c883fb4913b5c5536bc0316e99_22)[, 2025 and December 31, 2024](#ic72c65c883fb4913b5c5536bc0316e99_22)</u> | <u>[3](#ic72c65c883fb4913b5c5536bc0316e99_22)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Stockholders' Equity for the Three](#ic72c65c883fb4913b5c5536bc0316e99_25)[and Six](#ic72c65c883fb4913b5c5536bc0316e99_25)[Months Ended](#ic72c65c883fb4913b5c5536bc0316e99_25)[June](#ic72c65c883fb4913b5c5536bc0316e99_25)[3](#ic72c65c883fb4913b5c5536bc0316e99_25)[0](#ic72c65c883fb4913b5c5536bc0316e99_25)[, 2025 and 2024](#ic72c65c883fb4913b5c5536bc0316e99_25)</u> | <u>[4](#ic72c65c883fb4913b5c5536bc0316e99_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Cash](#ic72c65c883fb4913b5c5536bc0316e99_28)[Flows](#ic72c65c883fb4913b5c5536bc0316e99_28)[for the](#ic72c65c883fb4913b5c5536bc0316e99_28)[Six](#ic72c65c883fb4913b5c5536bc0316e99_28)[Months Ended](#ic72c65c883fb4913b5c5536bc0316e99_28)[June](#ic72c65c883fb4913b5c5536bc0316e99_28)[3](#ic72c65c883fb4913b5c5536bc0316e99_28)[0](#ic72c65c883fb4913b5c5536bc0316e99_28)[, 2025 and 2024](#ic72c65c883fb4913b5c5536bc0316e99_28)</u> | <u>[6](#ic72c65c883fb4913b5c5536bc0316e99_28)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to the Interim Condensed Consolidated Financial Statements](#ic72c65c883fb4913b5c5536bc0316e99_31)</u> | <u>[7](#ic72c65c883fb4913b5c5536bc0316e99_31)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#ic72c65c883fb4913b5c5536bc0316e99_58)</u> | <u>[20](#ic72c65c883fb4913b5c5536bc0316e99_58)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 4. Controls and Procedures](#ic72c65c883fb4913b5c5536bc0316e99_70)</u> | <u>[29](#ic72c65c883fb4913b5c5536bc0316e99_70)</u> |
| <u>[PART II – OTHER INFORMATION](#ic72c65c883fb4913b5c5536bc0316e99_73)</u> | <u>[30](#ic72c65c883fb4913b5c5536bc0316e99_73)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 1. Legal Proceedings](#ic72c65c883fb4913b5c5536bc0316e99_941)</u> | <u>[30](#ic72c65c883fb4913b5c5536bc0316e99_941)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#ic72c65c883fb4913b5c5536bc0316e99_76)</u> | <u>[30](#ic72c65c883fb4913b5c5536bc0316e99_76)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 5. Other Information](#ic72c65c883fb4913b5c5536bc0316e99_79)</u> | <u>[30](#ic72c65c883fb4913b5c5536bc0316e99_76)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 6. Exhibits](#ic72c65c883fb4913b5c5536bc0316e99_82)</u> | <u>[31](#ic72c65c883fb4913b5c5536bc0316e99_82)</u> |
| <u>[Signatures](#ic72c65c883fb4913b5c5536bc0316e99_85)</u> | <u>[32](#ic72c65c883fb4913b5c5536bc0316e99_85)</u> |

---

------

**PART I &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements**

**KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
|<br>**(In millions, except per share amounts)** | **2025** | **2024** | **2025** | **2024** |
| **Net Sales** | $**4163** | $4231 | $**8217** | $8557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | **2707** | 2637 | **5252** | 5277 |
| **Gross Profit** | **1456** | 1594 | **2965** | 3280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing, research and general expenses | **863** | 967 | **1718** | 1918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) and expense, net | **1** | 88 | **24** | 108 |
| **Operating Profit** | **592** | 539 | **1223** | 1254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonoperating expense | **(17)** | (15) | **(34)** | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **5** | 9 | **12** | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(67)** | (72) | **(131)** | (139) |
| **Income from Continuing Operations Before Income Taxes and Equity Interests** | **513** | 461 | **1070** | 1104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | **(116)** | (60) | **(247)** | (208) |
| **Income from Continuing Operations Before Equity Interests** | **397** | 401 | **823** | 896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share of net income of equity companies | **47** | 63 | **91** | 124 |
| **Income from Continuing Operations** | **444** | 464 | **914** | 1020 |
| **Income from Discontinued Operations, Net of Income Taxes** | **68** | 89 | **171** | 191 |
| **Net Income** | **512** | 553 | **1085** | 1211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interests | **(3)** | (9) | **(9)** | (20) |
| **Net Income Attributable to Kimberly-Clark Corporation** | $**509** | $544 | $**1076** | $1191 |
| **Per Share Basis** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Income Attributable to Kimberly-Clark Corporation** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Basic:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $**1.33** | $1.35 | $**2.73** | $2.97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | **0.20** | 0.26 | **0.51** | 0.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Basic Earnings per Share** | $**1.53** | $1.61 | $**3.24** | $3.53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Diluted:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $**1.33** | $1.35 | $**2.72** | $2.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | **0.20** | 0.26 | **0.51** | 0.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Diluted Earnings per Share** | $**1.53** | $1.61 | $**3.23** | $3.52 |

---

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

------

**KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
|<br>**(In millions)** | **2025** | **2024** | **2025** | **2024** |
| **Net Income** | $**512** | $553 | $**1085** | $1211 |
| **Other Comprehensive Income (Loss), Net of Tax** |  |  |  |  |
| &nbsp;&nbsp; Unrealized currency translation adjustments | **224** | (48) | **372** | (197) |
| &nbsp;&nbsp; Employee postretirement benefits | **(5)** | 10 | **(9)** | 21 |
| &nbsp;&nbsp; Cash flow hedges | **(86)** | 57 | **(99)** | 120 |
| **Total Other Comprehensive Income (Loss), Net of Tax** | **133** | 19 | **264** | (56) |
| **Comprehensive Income** | **645** | 572 | **1349** | 1155 |
| &nbsp;&nbsp; Comprehensive income attributable to noncontrolling interests | **(9)** | (6) | **(15)** | (14) |
| **Comprehensive Income Attributable to Kimberly-Clark Corporation** | $**636** | $566 | $**1334** | $1141 |

---

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

------

**KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(Unaudited)

---

| | | |
|:---|:---|:---|
| **(In millions, except par value)** | **June 30, 2025** | **December 31, 2024** |
| **ASSETS** | | |
| **Current Assets** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**634** | $1010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | **2007** | 1728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **1558** | 1452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **572** | 694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current assets of discontinued operations | **786** | 696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Assets** | **5557** | 5580 |
| **Property, Plant and Equipment, Net** | **6317** | 6284 |
| **Investments in Equity Companies** | **359** | 314 |
| **Goodwill** | **1836** | 1796 |
| **Other Intangible Assets, Net** | **81** | 80 |
| **Other Assets** | **1001** | 984 |
| **Non-current Assets of Discontinued Operations** | **1620** | 1508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $**16771** | $16546 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt payable within one year | $**771** | $564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | **3253** | 3264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | **2019** | 2091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends payable | **415** | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current liabilities of discontinued operations | **713** | 683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Liabilities** | **7171** | 7004 |
| **Long-Term Debt** | **6470** | 6854 |
| **Non-current Employee Benefits** | **619** | 628 |
| **Deferred Income Taxes** | **243** | 300 |
| **Other Liabilities** | **680** | 609 |
| **Non-current Liabilities of Discontinued Operations** | **148** | 139 |
| **Redeemable Preferred Securities of Subsidiaries** | **37** | 37 |
| **Stockholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;**Kimberly-Clark Corporation** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock - no par value - authorized 20.0 million shares, none issued | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock - $1.25 par value - authorized 1,200.0 million shares; issued 378.6 million shares as of June 30, 2025 and December 31, 2024 | **473** | 473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | **798** | 862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock held in treasury, at cost - 46.7 and 46.8 million shares as of June 30, 2025 and December 31, 2024, respectively | **(5986)** | (5986) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | **9494** | 9257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | **(3508)** | (3766) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Kimberly-Clark Corporation Stockholders' Equity** | **1271** | 840 |
| &nbsp;&nbsp;&nbsp;**Noncontrolling Interests** | **132** | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Stockholders' Equity** | **1403** | 975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $**16771** | $16546 |

---

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

------

**KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

(Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| **(In millions, except per share amounts. Shares in thousands)** | **Common Stock<br>Issued** | **Common Stock<br>Issued** | **Additional Paid-in Capital** | **Treasury Stock** | **Treasury Stock** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **(In millions, except per share amounts. Shares in thousands)** | **Shares** | **Amount** | **Additional Paid-in Capital** | **Shares** | **Amount** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **Balance at March 31, 2025** | **378597** | $**473** | $**842** | **46730** | $**(5985)** | $**9406** | $**(3635)** | $**123** | $**1224** |
| &nbsp;&nbsp;&nbsp;Net income in stockholders' equity<sup>(a)</sup> | **—** | **—** | **—** | **—** | **—** | **509** | **—** | **3** | **512** |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax<sup>(a)</sup> | **—** | **—** | **—** | **—** | **—** | **—** | **127** | **6** | **133** |
| &nbsp;&nbsp;&nbsp;Stock-based awards exercised or vested | **—** | **—** | **(88)** | **(505)** | **67** | **—** | **—** | **—** | **(21)** |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock | **—** | **—** | **—** | **457** | **(61)** | **—** | **—** | **—** | **(61)** |
| &nbsp;&nbsp;&nbsp;Recognition of stock-based compensation | **—** | **—** | **39** | **—** | **—** | **—** | **—** | **—** | **39** |
| &nbsp;&nbsp;&nbsp;Dividends declared ($1.26 per share) | **—** | **—** | **—** | **—** | **—** | **(419)** | **—** | **1** | **(418)** |
| &nbsp;&nbsp;&nbsp;Other | **—** | **—** | **5** | **—** | **(7)** | **(2)** | **—** | **(1)** | **(5)** |
| **Balance at June 30, 2025** | **378597** | $**473** | $**798** | **46682** | $**(5986)** | $**9494** | $**(3508)** | $**132** | $**1403** |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| **(In millions, except per share amounts. Shares in thousands)** | **Common Stock<br>Issued** | **Common Stock<br>Issued** | **Additional Paid-in Capital** | **Treasury Stock** | **Treasury Stock** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **(In millions, except per share amounts. Shares in thousands)** | **Shares** | **Amount** | **Additional Paid-in Capital** | **Shares** | **Amount** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **Balance at December 31, 2024** | **378597** | $**473** | $**862** | **46798** | $**(5986)** | $**9257** | $**(3766)** | $**135** | $**975** |
| &nbsp;&nbsp;&nbsp;Net income in stockholders' equity<sup>(a)</sup> | **—** | **—** | **—** | **—** | **—** | **1076** | **—** | **9** | **1085** |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax<sup>(a)</sup> | **—** | **—** | **—** | **—** | **—** | **—** | **258** | **6** | **264** |
| &nbsp;&nbsp;&nbsp;Stock-based awards exercised or vested | **—** | **—** | **(141)** | **(1031)** | **130** | **—** | **—** | **—** | **(11)** |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock | **—** | **—** | **—** | **915** | **(123)** | **—** | **—** | **—** | **(123)** |
| &nbsp;&nbsp;&nbsp;Recognition of stock-based compensation | **—** | **—** | **70** | **—** | **—** | **—** | **—** | **—** | **70** |
| &nbsp;&nbsp;&nbsp;Dividends declared ($2.52 per share) | **—** | **—** | **—** | **—** | **—** | **(837)** | **—** | **(17)** | **(854)** |
| &nbsp;&nbsp;&nbsp;Other | **—** | **—** | **7** | **—** | **(7)** | **(2)** | **—** | **(1)** | **(3)** |
| **Balance at June 30, 2025** | **378597** | $**473** | $**798** | **46682** | $**(5986)** | $**9494** | $**(3508)** | $**132** | $**1403** |

---

<sup>(a)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Excludes redeemable interests' share.

------

**KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

(Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| **(In millions, except per share amounts. Shares in thousands)** | **Common Stock<br>Issued** | **Common Stock<br>Issued** | **Additional Paid-in Capital** | **Treasury Stock** | **Treasury Stock** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **(In millions, except per share amounts. Shares in thousands)** | **Shares** | **Amount** | **Additional Paid-in Capital** | **Shares** | **Amount** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **Balance at March 31, 2024** | 378597 | $473 | $877 | 41823 | $(5252) | $8601 | $(3655) | $140 | $1184 |
| &nbsp;&nbsp;&nbsp;Net income in stockholders' equity<sup>(a)</sup> |  |  |  |  |  | 544 |  | 8 | 552 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax<sup>(a)</sup> |  |  |  |  |  |  | 22 | (2) | 20 |
| &nbsp;&nbsp;&nbsp;Stock-based awards exercised or vested |  |  | (113) | (997) | 114 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock |  |  |  | 762 | (103) |  |  |  | (103) |
| &nbsp;&nbsp;&nbsp;Recognition of stock-based compensation |  |  | 38 |  |  |  |  |  | 38 |
| &nbsp;&nbsp;&nbsp;Dividends declared ($1.22 per share) |  |  |  |  |  | (411) |  | (1) | (412) |
| &nbsp;&nbsp;&nbsp;Other |  |  |  |  |  |  | 1 |  | 1 |
| **Balance at June 30, 2024** | 378597 | $473 | $802 | 41588 | $(5241) | $8734 | $(3632) | $145 | $1281 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| **(In millions, except per share amounts. Shares in thousands)** | **Common Stock<br>Issued** | **Common Stock<br>Issued** | **Additional Paid-in Capital** | **Treasury Stock** | **Treasury Stock** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **(In millions, except per share amounts. Shares in thousands)** | **Shares** | **Amount** | **Additional Paid-in Capital** | **Shares** | **Amount** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Non-controlling Interests** | **Total Stockholders' Equity** |
| **Balance at December 31, 2023** | 378597 | $473 | $878 | 41599 | $(5222) | $8368 | $(3582) | $153 | $1068 |
| &nbsp;&nbsp;&nbsp;Net income in stockholders' equity<sup>(a)</sup> |  |  |  |  |  | 1191 |  | 18 | 1209 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax<sup>(a)</sup> |  |  |  |  |  |  | (50) | (6) | (56) |
| &nbsp;&nbsp;&nbsp;Stock-based awards exercised or vested |  |  | (150) | (1232) | 140 |  |  |  | (10) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock |  |  |  | 1221 | (159) |  |  |  | (159) |
| &nbsp;&nbsp;&nbsp;Recognition of stock-based compensation |  |  | 69 |  |  |  |  |  | 69 |
| &nbsp;&nbsp;&nbsp;Dividends declared ($2.44 per share) |  |  |  |  |  | (822) |  | (20) | (842) |
| &nbsp;&nbsp;&nbsp;Other |  |  | 5 |  |  | (3) |  |  | 2 |
| **Balance at June 30, 2024** | 378597 | $473 | $802 | 41588 | $(5241) | $8734 | $(3632) | $145 | $1281 |

---

<sup>(a)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Excludes redeemable interests' share.

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

------

**KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
|<br>**(In millions)** | **2025** | **2024** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $**1085** | $1211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **440** | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairments | **—** | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | **73** | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **(30)** | (79) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (gains) losses on asset and business dispositions | **36** | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity companies' earnings (in excess of) less than dividends paid | **(50)** | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating working capital | **(471)** | (135) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Postretirement benefits | **9** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **5** | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash Provided by Operations** | **1097** | 1459 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital spending | **(401)** | (352) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from asset and business dispositions | **12** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in time deposits | **(227)** | (242) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maturities of time deposits | **282** | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **22** | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash Used for Investing** | **(312)** | (376) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid | **(824)** | (809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in short-term debt | **51** | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt repayments | **(250)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | **36** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | **(120)** | (156) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid to noncontrolling interests | **(18)** | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **(58)** | (62) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash Used for Financing** | **(1183)** | (998) |
| **Effect of Exchange Rate Changes on Cash and Cash Equivalents** | **34** | (15) |
| **Change in Cash and Cash Equivalents** | **(364)** | 70 |
| Cash and cash equivalents from continuing operations - beginning of period | **1010** | 1075 |
| Cash and cash equivalents from discontinued operations - beginning of period <sup>(a)</sup> | **11** | 18 |
| &nbsp;&nbsp;**Cash and Cash Equivalents - Beginning of Period** | **1021** | 1093 |
| Cash and cash equivalents from continuing operations - end of period | **634** | 1149 |
| Cash and cash equivalents from discontinued operations - end of period<sup>(a)</sup> | **23** | 14 |
| &nbsp;&nbsp;**Cash and Cash Equivalents - End of Period** | $**657** | $1163 |

---

<sup>(a)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Current assets of discontinued operations.

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

------

**KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES**

**NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1. &nbsp;&nbsp;&nbsp;&nbsp;Accounting Policies**

<u>Basis of Presentation</u>

The accompanying Unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair statement of the results for the periods presented have been reflected. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted.

For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2024. The terms "Corporation," "Company," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries.

<u>International Family Care and Professional ("IFP") Transaction</u>

On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former International Family Care and Professional ("IFP") segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, which is expected to take place in mid-2026 and will only take place following the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain closing adjustments set forth in the Purchase Agreement, and we will retain a 49% equity interest (the "IFP Transaction").

In accordance with ASC 205, *Presentation of Financial Statements*, we determined the IFP Transaction represents a strategic shift that will have a major effect on our operations and financial results. Accordingly, effective in the second quarter of fiscal 2025, the results of the IFP Business are reported as discontinued operations in the accompanying Condensed Consolidated Statements of Income and have been excluded from both continuing operations and segment results for all periods presented. Further, the assets and liabilities of the IFP Business are classified as discontinued operations in the accompanying Condensed Consolidated Balance Sheets for all periods presented, and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. The Condensed Consolidated Statements of Comprehensive Income, Stockholders' Equity and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. Unless otherwise noted, amounts and disclosures in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements reflect only Kimberly-Clark's continuing operations. See Note 3 for additional details.

<u>Highly Inflationary Accounting</u>

GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100%. Under highly inflationary accounting, the countries' functional currency becomes the U.S. dollar, and its income statement and balance sheet are measured in U.S. dollars using both current and historical rates of exchange.

As of July 1, 2018, we adopted highly inflationary accounting for our subsidiaries in Argentina ("K-C Argentina"). The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2025, K-C Argentina had an immaterial net peso monetary position. Net sales of K-C Argentina were approximately 1% of our consolidated net sales for the three and six months ended June 30, 2025 and 2024.

------

As of April 1, 2022, we adopted highly inflationary accounting for our subsidiary in Türkiye ("K-C Türkiye"). The effect of changes in exchange rates on lira-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2025, K-C Türkiye had an immaterial net lira monetary position. Net sales of K-C Türkiye were less than 1% of our consolidated net sales for the three and six months ended June 30, 2025 and 2024.

<u>Recently Issued Accounting Standards</u>

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740)*. The new guidance is intended to enhance the transparency and decision usefulness of annual income tax disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied on a prospective basis with retrospective application permitted. As the guidance requires only additional disclosure, there will be no effects of this standard on our financial position, results of operations or cash flows.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220)*. The new guidance requires disclosure in the notes to the financial statements of disaggregated information about specific expense categories underlying certain income statement expense line items. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a prospective basis with retrospective application permitted. We are currently evaluating the impact of this update on our consolidated financial statements and related disclosures.

**Note 2. &nbsp;&nbsp;&nbsp;&nbsp;2024 Transformation Initiative**

On March 27, 2024, we announced the 2024 Transformation Initiative intended to improve our focus on growth and reduce our structural cost base by realigning our internal operating and management structure to streamline our global supply chain and improve the efficiency of our corporate and regional overhead cost structures. The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4% to 5%. Certain actions under the 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution.

The 2024 Transformation Initiative is expected to be completed by the end of 2026, with total costs anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately 60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. Through June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 after-tax).

------

The following charges were incurred in connection with the 2024 Transformation Initiative:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| Cost of products sold: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charges for workforce reductions | $**—** | $34 | $**14** | $34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset write-offs | **20** | 5 | **20** | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incremental depreciation | **57** | 3 | **89** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other exit costs | **5** | 3 | **12** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **82** | 45 | **135** | 45 |
| Marketing, research and general expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charges for workforce reductions | **13** | 46 | **15** | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other exit costs | **26** | 24 | **46** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **39** | 70 | **61** | 115 |
| Other (income) and expense, net<sup>(a)</sup> | **—** | 75 | **—** | 75 |
| Nonoperating expense | **1** |  | **3** |  |
| **Total charges**<sup>(b)</sup> | **122** | 190 | **199** | 235 |
| Provision for income taxes | **(27)** | (73) | **(27)** | (84) |
| **Net charges** | **95** | 117 | **172** | 151 |
| Net impact related to noncontrolling interests | **(4)** |  | **(4)** |  |
| **Net charges attributable to Kimberly-Clark Corporation** | $**91** | $117 | $**168** | $151 |

---

(a)Other (Income) and expense, net includes losses recognized for the exit of certain businesses and markets as part of the 2024 Transformation Initiative.

(b)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA and IPC segments were $58 and $71, respectively, for the three months ended June 30, 2025, $27 and $126, respectively, for the three months ended June 30, 2024, $85 and $91, respectively, for the six months ended June 30, 2025, and $65 and $129, respectively, for the six months ended June 30, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 8.

The following summarizes the 2024 Transformation Initiative liabilities activity:

---

| | |
|:---|:---|
| | **2025** |
| 2024 Transformation Initiative liabilities as of January 1 | $**130** |
| Charges for workforce reductions and other cash exit costs | **86** |
| Cash payments | **(130)** |
| Currency and other | **—** |
| 2024 Transformation Initiative liabilities as of June 30 | $**86** |

---

2024 Transformation Initiative liabilities are recorded in Accrued expenses and other current liabilities. The charges related to the 2024 Transformation Initiative are reflected within Operating Activities of our Condensed Consolidated Statements of Cash Flows.

------

**Note 3.&nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations**

As disclosed in Note 1, on June 5, 2025, we announced the sale of a controlling equity interest in a newly formed Joint Venture comprised of our IFP Business. At the time of closing, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain post-closing adjustments set forth in the Purchase Agreement. We will retain a 49% equity interest in the Joint Venture which we expect will initially be recorded at fair value and subsequently accounted for using the equity method of accounting. The transaction is expected to close in mid-2026, pending the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, set forth in the Purchase Agreement.

**Financial Information of Discontinued Operations**

The following table presents the components of Income from Discontinued Operations, Net of Income Taxes:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Sales** | $**802** | $798 | $**1588** | $1621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | **592** | 582 | **1154** | 1180 |
| **Gross Profit** | **210** | 216 | **434** | 441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing, research and general expenses | **108** | 99 | **194** | 187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) and expense, net | **2** | 1 | **2** |  |
| **Operating Profit** | **100** | 116 | **238** | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonoperating expense | **1** |  | **—** |  |
| **Income from discontinued operations before income taxes** | **101** | 116 | **238** | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | **(33)** | (27) | **(67)** | (63) |
| **Income from Discontinued Operations, Net of Income Taxes** | $**68** | $89 | $**171** | $191 |

---

As a result of the IFP Transaction, we incurred separation costs of $33 for the three months ended June 30, 2025, which are included in Income from Discontinued Operations, Net of Income Taxes. These costs were primarily related to external advisory, legal, accounting, contractor and other incremental costs directly related to the IFP Transaction.

The following table presents significant non-cash items and capital expenditures of discontinued operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| Depreciation and Amortization | $**28** | $32 | $**68** | $64 |
| Capital Spending | **21** | 22 | **46** | 54 |

---

------

The following table presents the components of assets and liabilities classified as discontinued operations:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| **Assets** | | |
| &nbsp;&nbsp;Cash and cash equivalents | $**23** | $11 |
| &nbsp;&nbsp;Accounts receivable, net | **330** | 281 |
| &nbsp;&nbsp;Inventories | **415** | 370 |
| &nbsp;&nbsp;Other current assets | **18** | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Current Assets of Discontinued Operations** | $**786** | $696 |
| &nbsp;&nbsp;Property, Plant and Equipment, Net | $**1318** | $1229 |
| &nbsp;&nbsp;Goodwill | **184** | 168 |
| &nbsp;&nbsp;Other Intangible Assets, Net | **7** | 7 |
| &nbsp;&nbsp;Other Assets | **111** | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Non-current Assets of Discontinued Operations** | $**1620** | $1508 |
| **Liabilities** |  |  |
| &nbsp;&nbsp;Debt payable within one year | $**5** | $4 |
| &nbsp;&nbsp;Trade accounts payable | **475** | 451 |
| &nbsp;&nbsp;Accrued expenses and other current liabilities | **233** | 228 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Current Liabilities of Discontinued Operations** | $**713** | $683 |
| &nbsp;&nbsp;Long-Term Debt | $**20** | $21 |
| &nbsp;&nbsp;Non-current Employee Benefits | **15** | 15 |
| &nbsp;&nbsp;Deferred Income Taxes | **32** | 26 |
| &nbsp;&nbsp;Other Liabilities | **81** | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Non-current Liabilities of Discontinued Operations** | $**148** | $139 |

---

**Joint Venture Agreement and Ancillary Agreements**

Upon the closing, K-C, Buyer and the Joint Venture will enter into a joint venture agreement (the "JVA"), which will set forth provisions relating to, among other things, the governance of the Joint Venture following closing, transfer restrictions with respect to the parties' interests in the Joint Venture, and the option of Buyer to purchase K-C's equity interests in the Joint Venture. We will also enter into certain ancillary agreements including intellectual property rights, transition services agreements (the "TSA") and transitional supply arrangements (the "Supply Agreements"). Pursuant to the TSA, K-C will provide certain services to the Joint Venture, on an interim, transitional basis from and after the closing for an initial duration of 18 months, with certain extension rights provided therein. Pursuant to the Supply Agreements, K-C will manufacture and supply certain products to the Joint Venture and, similarly, the Joint Venture will manufacture and supply certain products to K-C for a period of up to 36 months following the closing with certain extension rights provided therein.

**Note 4.&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Information**

The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are:

Level 1 – Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities.

Level 2 – Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3 – Prices or valuations that require inputs that are significant to the valuation and are unobservable.

A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

------

During the six months ended June 30, 2025 and for the full year 2024, there were no significant transfers to or from level 3 fair value determinations.

Derivative assets and liabilities are measured on a recurring basis at fair value. As of June 30, 2025 and December 31, 2024, derivative assets were $82 and $189, respectively, and derivative liabilities were $253 and $137, respectively. The fair values of derivatives used to manage interest rate risk and commodity price risk are based on the Secured Overnight Financing Rate ("SOFR") and interest rate swap curves and on commodity price quotations, respectively. The fair values of hedging instruments used to manage foreign currency risk are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. Measurement of our derivative assets and liabilities is considered a level 2 measurement. See Note 7 for additional information on our use of derivative instruments.

Redeemable preferred securities of subsidiaries are measured on a recurring basis at their estimated redemption values, which approximate fair value. As of June 30, 2025 and December 31, 2024, the securities were valued at $37. The securities are not traded in active markets, and their measurement is considered a level 3 measurement.

Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were $70 and $71 as of June 30, 2025 and December 31, 2024, respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in Other Assets in the Condensed Consolidated Balance Sheets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.

The following table includes the fair value of our financial instruments for which disclosure of fair value is required:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Hierarchy Level** | **Carrying Amount** | **Estimated Fair Value** | **Carrying Amount** | **Estimated Fair Value** |
| | **Fair Value Hierarchy Level** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Assets** | | | | | |
| &nbsp;&nbsp;Cash and cash equivalents<sup>(a)</sup> | 1 | $**634** | $**634** | $1010 | $1010 |
| &nbsp;&nbsp;Time deposits<sup>(b)</sup> | 1 | **142** | **142** | 181 | 181 |
| &nbsp;&nbsp;Non-US government bonds<sup>(c)</sup> | 2 | **—** | **—** | 15 | 15 |
| **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;Short-term debt<sup>(d)</sup> | 2 | **59** | **59** | 3 | 3 |
| &nbsp;&nbsp;Long-term debt<sup>(e)</sup> | 2 | **7182** | **6733** | 7415 | 6828 |

---

(a)Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value.

(b)Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in Other current assets or Other Assets in the Condensed Consolidated Balance Sheets, as appropriate. Time deposits are recorded at cost, which approximates fair value.

(c)Non-US government bonds are composed of foreign issued debt securities that are classified as held-to-maturity because we have the positive intent and ability to hold the securities to maturity. These securities are recorded at amortized cost and are included in Other current assets or Other Assets in the Condensed Consolidated Balance Sheets, as appropriate.

(d)Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.

(e)Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly.

------

**Note 5.&nbsp;&nbsp;&nbsp;&nbsp;Earnings Per Share**

Basic and diluted earnings per share ("EPS") were calculated as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
|<br>**(In millions, except per share amounts)** | **2025** | **2024** | **2025** | **2024** |
| Income from Continuing Operations | $**444** | $464 | $**914** | $1020 |
| Less: Net income attributable to noncontrolling interests | **(3)** | (9) | **(9)** | (20) |
| **Income from Continuing Operations Attributable to Kimberly-Clark Corporation** | **441** | 455 | **905** | 1000 |
| **Income from Discontinued Operations, Net of Income Taxes** | **68** | 89 | **171** | 191 |
| **Net Income Attributable to Kimberly-Clark Corporation** | $**509** | $544 | $**1076** | $1191 |
| **<u>Weighted-Average Common Shares</u>** |  |  |  |  |
| Basic | **332.1** | 337.1 | **331.9** | 337.0 |
| Dilutive effect of stock options and restricted share unit awards | **1.2** | 0.9 | **1.4** | 1.2 |
| &nbsp;&nbsp;**Diluted** | **333.3** | 338.0 | **333.3** | 338.2 |
| **Basic:** |  |  |  |  |
| &nbsp;&nbsp;Continuing operations | $**1.33** | $1.35 | $**2.73** | $2.97 |
| &nbsp;&nbsp;Discontinued operations | **0.20** | 0.26 | **0.51** | 0.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Basic Earnings per Share** | $**1.53** | $1.61 | $**3.24** | $3.53 |
| **Diluted:** |  |  |  |  |
| &nbsp;&nbsp;Continuing operations | $**1.33** | $1.35 | $**2.72** | $2.96 |
| &nbsp;&nbsp;Discontinued operations | **0.20** | 0.26 | **0.51** | 0.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Diluted Earnings per Share** | $**1.53** | $1.61 | $**3.23** | $3.52 |

---

We use the treasury stock method to calculate the dilutive effect of stock options and other stock-based awards. Options outstanding not included in the computation of diluted EPS because their exercise price was greater than the average market price of the common shares were not material. The number of common shares outstanding as of June 30, 2025 and 2024 was 331.9 million and 337.0 million, respectively.

**Note 6.&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' Equity**

Net unrealized currency gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries, except those in highly inflationary economies, are recorded in Accumulated Other Comprehensive Income ("AOCI"). For these operations, changes in exchange rates generally do not affect cash flows; therefore, unrealized translation adjustments are recorded in AOCI rather than net income. Upon sale or substantially complete liquidation of any of these subsidiaries, the applicable unrealized translation adjustment would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation. The change in unrealized currency translation for the six months ended June 30, 2025 was primarily due to the strengthening of certain foreign currencies versus the U.S. dollar.

Also included in unrealized translation amounts are the effects of foreign exchange rate changes on intercompany balances of a long-term investment nature and transactions designated as hedges of net foreign investments.

------

The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Unrealized Translation** | | **Defined Benefit Pension Plans** | | **Other Postretirement Benefit Plans** | | **Cash Flow Hedges** | |
| **Balance as of December 31, 2023** | $(2678) |  | $(791) |  | $39 |  | $(152) |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | (232) |  | 7 |  | (1) |  | 92 |  |
| &nbsp;&nbsp;&nbsp;(Income) loss reclassified from AOCI | 45 | (b) | 15 | (a) | (1) | (a) | 25 | (c) |
| &nbsp;&nbsp;&nbsp;Net current period other comprehensive income (loss) | (187) |  | 22 |  | (2) |  | 117 |  |
| **Balance as of June 30, 2024** | $(2865) |  | $(769) |  | $37 |  | $(35) |  |
| **Balance as of December 31, 2024** | $(3068) |  | $(775) |  | $47 |  | $30 |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | **362** |  | **(29)** |  | **5** |  | **(107)** |  |
| &nbsp;&nbsp;&nbsp;(Income) loss reclassified from AOCI | **—** |  | **17** | (a) | **(2)** | (a) | **12** | (c) |
| &nbsp;&nbsp;&nbsp;Net current period other comprehensive income (loss) | **362** |  | **(12)** |  | **3** |  | **(95)** |  |
| **Balance as of June 30, 2025** | $**(2706)** |  | $**(787)** |  | $**50** |  | $**(65)** |  |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;Included in Nonoperating expense as part of the computation of net periodic benefit costs.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Included in Other (income) and expense, net as part of the charges related to the 2024 Transformation Initiative (see Note 2).

(c)&nbsp;&nbsp;&nbsp;&nbsp;Included in Interest expense, Cost of products sold or Other (income) and expense, net, based on the income statement line that the hedged exposure affects earnings. For the six months ended June 30, 2025, losses of $20 were reclassified into Income from Discontinued Operations, Net of Income Taxes due to the discontinuance of cash flow hedge accounting as a result of the IFP Transaction (see Note 7 for further details).

**Note 7.&nbsp;&nbsp;&nbsp;&nbsp;Objectives and Strategies for Using Derivatives**

As a multinational enterprise, we are exposed to financial risks, such as changes in foreign currency exchange rates, interest rates, and commodity prices. We employ a number of practices to manage these risks, including operating and financing activities and, where appropriate, the use of derivative instruments.

As of June 30, 2025 and December 31, 2024, derivative assets were $82 and $189, respectively, and derivative liabilities were $253 and $137, respectively, primarily comprised of foreign currency exchange, interest rate and commodity price contracts. Derivative assets are recorded in Other current assets or Other Assets, as appropriate, and derivative liabilities are recorded in Accrued expenses and other current liabilities or Other Liabilities, as appropriate.

<u>Foreign Currency Exchange Rate Risk</u>

Translation adjustments result from translating foreign entities' financial statements into U.S. dollars from their functional currencies. The risk to any particular entity's net assets is reduced to the extent that the entity is financed with local currency borrowings. A portion of our balance sheet translation exposure for certain affiliates, which results from changes in translation rates between the affiliates' functional currencies and the U.S. dollar, is hedged with cross-currency swap contracts and certain foreign denominated debt which are designated as net investment hedges. The foreign currency exposure on certain non-functional currency denominated monetary assets and liabilities, primarily intercompany loans and accounts payable, is hedged primarily with undesignated derivative instruments.

Derivative instruments are used to hedge a portion of forecasted cash flows denominated in foreign currencies for non-U.S. operations' purchases of raw materials, which are priced in U.S. dollars, and imports of intercompany finished goods and work-in-process priced predominantly in U.S. dollars and euros. The derivative instruments used to manage these exposures are designated as cash flow hedges.

<u>Interest Rate Risk</u>

Interest rate risk is managed using a portfolio of variable and fixed-rate debt composed of short and long-term instruments. Interest rate swap contracts may be used to facilitate the maintenance of the desired ratio of variable and fixed-rate debt and are designated as fair value hedges. From time to time, we also hedge the anticipated issuance of fixed-rate debt, and these contracts are designated as cash flow hedges.

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<u>Commodity Price Risk</u>

We use derivative instruments, such as commodity forward and price swap contracts, to hedge a portion of our exposure to market risk arising from changes in prices of certain commodities. These derivatives are primarily designated as cash flow hedges of specific quantities of the underlying commodity expected to be purchased in future months. In addition, we utilize negotiated contracts of varying durations along with strategic pricing mechanisms to manage volatility for a portion of our commodity costs.

<u>Fair Value Hedges</u>

Derivative instruments that are designated and qualify as fair value hedges are predominantly used to manage interest rate risk. The fair values of these derivative instruments are recorded as an asset or liability, as appropriate, with the offset recorded in Interest expense. The offset to the change in fair values of the related debt is also recorded in Interest expense. Any realized gain or loss on the derivatives that hedge interest rate risk is amortized to Interest expense over the life of the related debt. As of June 30, 2025, the aggregate notional values and carrying values of debt subject to outstanding interest rate contracts designated as fair value hedges were $525 and $501, respectively. For the six months ended June 30, 2025 and 2024, gains or losses recognized in Interest expense for interest rate swaps were not material.

<u>Cash Flow Hedges</u>

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is initially recorded in AOCI, net of related income taxes, and recognized in earnings in the same income statement line and period that the hedged exposure affects earnings. As of June 30, 2025, the aggregate notional value of outstanding foreign exchange and commodity derivative contracts designated as cash flow hedges was $2.6 billion. For the six months ended June 30, 2025, we discontinued cash flow hedge accounting for certain foreign exchange and commodity instruments with a notional value of $681 because the forecasted transactions were no longer probable of occurring due to the IFP Transaction. As a result, pre-tax losses of $20 were reclassified from AOCI into Income from Discontinued Operations, Net of Income Taxes. For the six months ended June 30, 2024, no material gains or losses were reclassified from AOCI into earnings as a result of the discontinuance of cash flow hedge accounting. As of June 30, 2025, losses expected to be reclassified from AOCI into Interest expense, Cost of products sold or Other (income) and expense, net during the next twelve months are $32. The maximum maturity of cash flow hedges in place as of June 30, 2025 is May 2028.

<u>Net Investment Hedges</u>

For derivative instruments that are designated and qualify as net investment hedges, the aggregate notional value was $1.3 billion as of June 30, 2025. We exclude the interest accruals on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals on cross-currency swap contracts in earnings within Interest expense. We amortize the forward points on foreign exchange contracts into earnings within Interest expense over the life of the hedging relationship. Unrealized gains and losses related to changes in fair value of net investment hedges are recorded in AOCI and offset the change in the value of the net investment being hedged. Unrealized losses of $128 and unrealized gains of $18 were recorded in AOCI for the three months ended June 30, 2025 and 2024, respectively. Unrealized losses of $148 and unrealized gains of $45 were recorded in AOCI for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, no material amounts were reclassified from AOCI to Interest expense.

For the six months ended June 30, 2025 and 2024, no material amounts were excluded from the assessment of net investment, fair value or cash flow hedge effectiveness.

<u>Undesignated Hedging Instruments</u>

Gains or losses on undesignated foreign exchange and commodity hedging instruments are immediately recognized in Other (income) and expense, net. Gains of $38 and losses of $9 were recorded for the three months ended June 30, 2025 and 2024, respectively. Gains of $62 and losses of $32 were recorded in the six months ended June 30, 2025 and 2024, respectively. The effect on earnings from the use of these non-designated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. As of June 30, 2025, the notional value of these undesignated derivative instruments was approximately $5.2 billion.

------

**Note 8.&nbsp;&nbsp;&nbsp;&nbsp;Segment Reporting**

The Company's continuing operations are organized into two reportable segments defined by geographic region: North America ("NA") and International Personal Care ("IPC").

These segments differ from those used in prior periods due to changes to our reportable segments effective in the fourth quarter of 2024 (refer to our Annual Report on Form 10-K for further details) and the following changes effective in the second quarter of 2025:

*IFP Transaction*

As a result of the IFP Transaction discussed in Notes 1 and 3, the results of operations and applicable assets and liabilities of the IFP Business are reported as discontinued operations in the Company's financial statements and are excluded from segment results for all periods presented. This includes certain costs that were previously allocated to the IPC segment that relate to assets or activities that are part of the IFP Transaction. These costs have been removed from the results of the IPC segment and are reported as discontinued operations. Additionally, certain operations and commercial activities of the former IFP segment retained by K-C are now reported in the NA and IPC segments.

*Corporate and Other*

Corporate and Other was updated for all periods presented to include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operations of the former IFP segment that were divested prior to the IFP Transaction and therefore not reported as discontinued operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Costs previously allocated to the former IFP segment that are not directly attributable to the operations included in the IFP Transaction and therefore are not reported as discontinued operations.

The reportable segments were determined in accordance with how our Chief Executive Officer, who is our chief operating decision maker ("CODM"), develops and executes global strategies to drive growth and profitability. These strategies include global plans for branding and product positioning, technology, research and development programs, cost reductions including supply chain management, and capacity and capital investments for each of these businesses. The primary measure of segment profitability utilized by our CODM is segment operating profit. Our CODM uses this measure to assess the operating results and performance of our segments, perform analytical comparisons to budget and allocate resources to each segment. Segment operating profit excludes Corporate & Other, which primarily encompasses certain unallocated general corporate expenses, impairment charges, one-time (gains) or losses associated with acquisitions and divestitures, costs related to our reorganization activities that are not associated with the ongoing operations of the segments, certain operations of the former IFP segment that were divested prior to the IFP Transaction, and costs previously allocated to the former IFP segment that aren't reported as discontinued operations. Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment.

The principal sources of revenue in each segment are described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **North America** consists of products encompassing each of our five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. These products are sold under the Huggies, Pull-Ups, GoodNites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall and other brand names.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **International Personal Care** consists of three core categories — Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. These products are sold under the Huggies, Kotex, Goodfeel, Intimus, Depend and other brand names.

The tables below present net sales and the significant expense categories that are included in Segment Operating Profit and regularly provided to our CODM:

------

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **NA** | **IPC** | **Total** |
| **Segment Net Sales** | $**2730** | $**1433** | $**4163** |
| &nbsp;&nbsp;Corporate & Other |  |  | **—** |
| **Total Net Sales** |  |  | $**4163** |
| &nbsp;&nbsp;Cost of Products Sold | **1642** | **967** | **2609** |
| &nbsp;&nbsp;Advertising and Promotion Expense | **170** | **98** | **268** |
| &nbsp;&nbsp;Research, Selling and General Expense | **263** | **183** | **446** |
| &nbsp;&nbsp;Other (Income) and Expense, net<sup>(a)</sup> | **—** | **3** | **3** |
| **Segment Operating Profit** | $**655** | $**182** | $**837** |
| &nbsp;&nbsp;Corporate & Other |  |  | **(245)** |
| **Total Operating Profit** |  |  | $**592** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **NA** | **IPC** | **Total** |
| **Segment Net Sales** | $**5398** | $**2819** | $**8217** |
| &nbsp;&nbsp;Corporate & Other |  |  | **—** |
| **Total Net Sales** |  |  | $**8217** |
| &nbsp;&nbsp;Cost of Products Sold | **3205** | **1873** | **5078** |
| &nbsp;&nbsp;Advertising and Promotion Expense | **335** | **203** | **538** |
| &nbsp;&nbsp;Research, Selling and General Expense | **525** | **356** | **881** |
| &nbsp;&nbsp;Other (Income) and Expense, net<sup>(a)</sup> | **—** | **4** | **4** |
| **Segment Operating Profit** | $**1333** | $**383** | $**1716** |
| &nbsp;&nbsp;Corporate & Other |  |  | **(493)** |
| **Total Operating Profit** |  |  | $**1223** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **NA** | **IPC** | **Total** |
| **Segment Net Sales** | $2783 | $1427 | $4210 |
| &nbsp;&nbsp;Corporate & Other |  |  | 21 |
| **Total Net Sales** |  |  | $4231 |
| &nbsp;&nbsp;Cost of Products Sold | 1627 | 930 | 2557 |
| &nbsp;&nbsp;Advertising and Promotion Expense | 186 | 101 | 287 |
| &nbsp;&nbsp;Research, Selling and General Expense | 288 | 185 | 473 |
| &nbsp;&nbsp;Other (Income) and Expense, net<sup>(a)</sup> |  | 2 | 2 |
| **Segment Operating Profit** | $682 | $209 | $891 |
| &nbsp;&nbsp;Corporate & Other |  |  | (352) |
| **Total Operating Profit** |  |  | $539 |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;Other (income) and expense, net primarily includes the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting.

------

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **NA** | **IPC** | **Total** |
| **Segment Net Sales** | $5559 | $2953 | $8512 |
| &nbsp;&nbsp;Corporate & Other |  |  | 45 |
| **Total Net Sales** |  |  | $8557 |
| &nbsp;&nbsp;Cost of Products Sold | 3254 | 1913 | 5167 |
| &nbsp;&nbsp;Advertising and Promotion Expense | 376 | 210 | 586 |
| &nbsp;&nbsp;Research, Selling and General Expense | 578 | 359 | 937 |
| &nbsp;&nbsp;Other (Income) and Expense, net<sup>(a)</sup> |  | 11 | 11 |
| **Segment Operating Profit** | $1351 | $460 | $1811 |
| &nbsp;&nbsp;Corporate & Other |  |  | (557) |
| **Total Operating Profit** |  |  | $1254 |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;Other (income) and expense, net primarily includes the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting.

<u>Depreciation and amortization expense by segment was:</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| NA | $**124** | $106 | $**228** | $210 |
| IPC | **70** | 48 | **135** | 95 |
| **Total Segment Depreciation and Amortization** | **194** | 154 | **363** | 305 |
| Corporate & Other | **—** | 2 | **9** | 4 |
| **Total**<sup>(a)</sup> | $**194** | $156 | $**372** | $309 |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.

<u>Capital spending by segment was:</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| NA | $**141** | $99 | $**284** | $217 |
| IPC | **35** | 35 | **71** | 77 |
| **Total Segment Capital Spending** | **176** | 134 | **355** | 294 |
| Corporate & Other | **—** | 2 | **—** | 4 |
| **Total**<sup>(a)</sup> | $**176** | $136 | $**355** | $298 |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.

<u>Sales of Principal Products:</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30** | **Three Months Ended<br>June 30** | **Six Months Ended<br>June 30** | **Six Months Ended<br>June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| Baby and Child Care | $**1768** | $1814 | $**3405** | $3587 |
| Family Care | **997** | 939 | **2024** | 1971 |
| Professional | **465** | 591 | **911** | 1159 |
| Adult Care | **492** | 455 | **968** | 918 |
| Feminine Care | **412** | 413 | **855** | 880 |
| All other | **29** | 19 | **54** | 42 |
| &nbsp;&nbsp;&nbsp;**Total** | $**4163** | $4231 | $**8217** | $8557 |

---

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**Note 9.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Balance Sheet Data**

The following schedule presents a summary of inventories by major class:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **LIFO** | **Non-LIFO** | **Total** | **LIFO** | **Non-LIFO** | **Total** |
| Raw materials | $**124** | $**220** | $**344** | $122 | $201 | $323 |
| Work in process | **113** | **39** | **152** | 116 | 32 | 148 |
| Finished goods | **559** | **455** | **1014** | 510 | 428 | 938 |
| Supplies and other | **—** | **255** | **255** |  | 243 | 243 |
|  | **796** | **969** | **1765** | 748 | 904 | 1652 |
| Excess of FIFO or weighted-average cost over LIFO cost | **(207)** | **—** | **(207)** | (200) |  | (200) |
| &nbsp;&nbsp;&nbsp;**Total** | $**589** | $**969** | $**1558** | $548 | $904 | $1452 |

---

Inventories are valued at the lower of cost or net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method.

The following schedule presents a summary of property, plant and equipment, net:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Land | $**112** | $110 |
| Buildings | **2392** | 2314 |
| Machinery and equipment | **12750** | 12498 |
| Construction in progress | **824** | 780 |
|  | **16078** | 15702 |
| Less accumulated depreciation | **(9761)** | (9418) |
| &nbsp;&nbsp;&nbsp;**Total** | $**6317** | $6284 |

---

<u>Supplier Finance Program</u>

We have a supplier finance program managed through two global financial institutions under which we agree to pay the financial institutions the stated amount of confirmed invoices from our participating suppliers on the invoice due date. We, or the global financial institutions, may terminate our agreements at any time upon 30 days written notice. The global financial institutions may terminate our agreements at any time upon three days written notice in the event there are insufficient funds available for disbursement. We do not provide any forms of guarantees under these agreements. Supplier participation in the program is solely up to the supplier, and the participating suppliers negotiate their arrangements directly with the global financial institutions. We have no economic interest in a supplier's decision to participate in the program, and their participation has no bearing on our payment terms or amounts due. The payment terms that we have with our suppliers under this program generally range from 75 to 180 days and are considered commercially reasonable. As of June 30, 2025 and December 31, 2024, the outstanding amounts related to the suppliers participating in this program were $1.0 billion, of which $213 and $185, respectively, are reported as discontinued operations. Amounts are recorded within Trade accounts payable and Current liabilities of discontinued operations.

**Note 10.&nbsp;&nbsp;&nbsp;&nbsp;Legal Matters**

We are party to certain legal proceedings relating to our former health care business, Avanos Medical, Inc. ("Avanos", previously Halyard Health, Inc.), as described in our Form 10-K for the year ended December 31, 2024, including a qui tam matter and certain subpoena and document requests from the federal government. The subpoena and document requests include subpoenas from the United States Department of Justice ("DOJ") concerning allegations of potential criminal and civil violations of federal laws, including the Food, Drug, and Cosmetic Act, in connection with the manufacturing, marketing and sale of surgical gowns by our former health care business. During the second quarter of 2025, we entered into a settlement agreement to resolve the qui tam matter which provides for a payment by us in an amount that is not expected to materially affect our financial position, results of operations or cash flows. We continue to cooperate in the DOJ investigation and have progressed our efforts to reach a resolution of all related matters.

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Introduction**

This Management's Discussion and Analysis ("MD&A") of Financial Condition and Results of Operations is intended to provide investors with an understanding of our recent performance, financial condition, cash flows and future prospects. The following MD&A should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 and the Unaudited Interim Condensed Consolidated Financial Statements and related notes contained in this Quarterly Report on Form 10-Q. Our analysis compares results for the three and six months ended June 30, 2025 to the same period in 2024. As discussed in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements, the results and related assets and liabilities of the IFP Business are reported as discontinued operations. As a result, unless specifically stated, all discussions included below reflect continuing operations for all periods presented. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted. The following will be discussed and analyzed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Overview of Business and Recent Developments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated Results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Segment Results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Liquidity and Capital Resources

Throughout this MD&A, we refer to financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures. We believe these measures provide our investors with additional information about our underlying results and trends, as well as insight to some of the financial measures used to evaluate management. For additional information and reconciliations to the most closely comparable financial measures presented in our Condensed Consolidated Financial Statements, which are calculated in accordance with U.S. GAAP, see "Summary of Non-GAAP Financial Measures" below.

**Overview of Business and Recent Developments**

We are a global company focused on delivering products and solutions that provide better care for a better world, with manufacturing facilities in 30 countries, including our equity affiliates, and products sold in more than 175 countries and territories. Our products are sold under well-known brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend.

Changes to U.S. trade policy, including increasing tariffs on imports have led to significant volatility and uncertainty in global markets. We estimate that the incremental costs of the new tariffs that are currently in effect in the U.S., as well as in other markets in which we operate, to be approximately $170 in 2025, most of which will be incurred by the North America segment. We are continuing to evaluate these developments and our ability to offset a portion of these costs to mitigate the impact on our business, consolidated results of operations, and financial condition.

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<u>International Family Care and Professional ("IFP") Transaction</u>

On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former IFP segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, which is expected to take place in mid-2026 and will only take place following the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain closing adjustments set forth in the Purchase Agreement, and we will retain a 49% equity interest (the "IFP Transaction"). As a result, the results of operations and applicable assets and liabilities of the IFP Business are reported as discontinued operations in the Company's financial statements for all periods presented and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. See Item 1, Notes 1 and 3 to the Unaudited Interim Condensed Consolidated Financial Statements for further details.

As a result of the IFP Transaction discussed above and the changes to our reportable segments effective in the fourth quarter of 2024 (refer to our Annual Report on Form 10-K for further details), the Company's continuing operations are now organized into two reportable segments defined by geographic region: North America ("NA") and International Personal Care ("IPC"). The results of the IFP Business, including certain costs that were previously allocated to the IPC segment that relate to assets or activities that are part of the IFP Transaction, are reported as discontinued operations and excluded from segment results for all periods presented. Additionally, certain operations and commercial activities of the former IFP segment retained by the Company are now reported in the NA and IPC segments. Further, Corporate and Other was updated for all periods presented to include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operations of the former IFP segment that were divested prior to the IFP Transaction and therefore not reported as discontinued operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Costs previously allocated to the former IFP segment that are not directly attributable to the operations included in the IFP Transaction and therefore are not reported as discontinued operations.

Segments are described in greater detail in Item 1, Note 8 to the Unaudited Interim Condensed Consolidated Financial Statements.

<u>2024 Transformation Initiative</u> 

The 2024 Transformation Initiative is designed to sharpen our strategic focus through a new operating model that leverages three synergistic forces:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accelerating pioneering innovation to capture significant growth available in our categories by investing in science and technology to satisfy unmet and evolving consumer needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Optimizing our margin structure to deliver superior consumer propositions and implement initiatives and deploy technology and data analytics designed to create a fast, adaptable, integrated supply chain with greater visibility that can deliver continuous improvement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wiring our organization for growth to drive agility, speed, and focused execution that extends our competitive advantages further into the future and improves the efficiency of our corporate and regional overhead cost structures.

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The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4% to 5%. Certain actions under the 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution. The 2024 Transformation Initiative is expected to be completed by the end of 2026. Total pre-tax savings are expected to be $3.0 billion in gross productivity; inclusive of input cost and manufacturing cost savings, and $200 in selling, general and administrative expenses. Total costs are anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately 60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. For the three months ended June 30, 2025 and 2024, total 2024 Transformation Initiative charges were $122 pre-tax ($95 after-tax) and $190 pre-tax ($117 after-tax), respectively. For the six months ended June 30, 2025 and 2024, total 2024 Transformation Initiative charges were $199 pre-tax ($172 after-tax), and $235 pre-tax ($151 after-tax), respectively. Through June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 after-tax).

<u>War in Ukraine</u>

Consistent with the humanitarian nature of our products, we manufacture and sell only essential items in Russia, such as baby diapers and feminine pads, which are critical to the health and hygiene of women, girls and babies. Beginning in March 2022, we significantly adjusted our business in Russia, substantially curtailing media, advertising and promotional activity and suspending capital investments, other than certain maintenance investments, in our sole manufacturing facility in Russia. Our Russia business has represented approximately 1% to 2% of our net global sales, operating profit and total assets. Our ability to continue our operations in Russia may change as the situation evolves. We have experienced high input costs, supply chain complexities, reduced consumer demand, restricted access to raw materials and production assets, and restricted access to financial institutions, as well as supply chain, professional services, monetary, currency, trade and payment/investment sanctions and related controls. As the business, geopolitical and regulatory environment concerning Russia evolves, we may not be able to sustain the limited manufacture and sale of our products, and our assets may be partially or fully impaired.

**Consolidated Results**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| **Net Sales** | $**4163** | $4231 | (1.6)% | $**8217** | $8557 | (4.0)% |
| **Gross Profit** | **1456** | 1594 | (8.7)% | **2965** | 3280 | (9.6)% |
| **Operating Profit** | **592** | 539 | 9.8% | **1223** | 1254 | (2.5)% |
| **Provision for income taxes** | **(116)** | (60) | 93.3% | **(247)** | (208) | 18.8% |
| **Income from Continuing Operations** | **444** | 464 | (4.3)% | **914** | 1020 | (10.4)% |
| **Income from Discontinued Operations, Net of Income Taxes** | **68** | 89 | (23.6)% | **171** | 191 | (10.5)% |
| **Net Income Attributable to Kimberly-Clark Corporation** | **509** | 544 | (6.4)% | **1076** | 1191 | (9.7)% |
| **Diluted Earnings per Share from Continuing Operations** | **1.33** | 1.35 | (1.5)% | **2.72** | 2.96 | (8.1)% |
| **Diluted Earnings per Share from Discontinued Operations** | **0.20** | 0.26 | (23.1)% | **0.51** | 0.56 | (8.9)% |
| ***Adjusted Results - Continuing Operations*** |  |  |  |  |  |  |
| **Adjusted Gross Profit**<sup>(a)</sup> | **1538** | 1639 | (6.2)% | **3100** | 3325 | (6.8)% |
| **Adjusted Operating Profit**<sup>(a)</sup> | **713** | 729 | (2.2)% | **1419** | 1489 | (4.7)% |
| **Adjusted Earnings per Share**<sup>(a)</sup> | **1.63** | 1.70 | (4.1)% | **3.25** | 3.41 | (4.7)% |
| **Adjusted Effective Tax Rate**<sup>(a)</sup> | **20.9%** | 20.4% | 0.5% | **20.8%** | 21.8% | (1.0)% |

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(a)&nbsp;&nbsp;&nbsp;&nbsp;Adjusted amounts are non-GAAP financial measures. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to Non-GAAP measures.

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***Net Sales***

Drivers of the changes in net sales were:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Percent Change in Net Sales*** | **Volume** | **Mix/Other** | **Net Price** | **Divestitures and Business Exits**<sup>(c)</sup> | **Currency Translation** | **Total**<sup>(a)</sup> | **Organic**<sup>(b)</sup> |
| Three Months Ended | **5.0** | **(0.1)** | **(1.2)** | **(4.4)** | **(1.0)** | **(1.6)** | **3.9** |
| Six Months Ended | **2.3** | **—** | **(1.2)** | **(3.4)** | **(1.7)** | **(4.0)** | **1.2** |

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(a)&nbsp;&nbsp;&nbsp;&nbsp;Total may not sum across due to rounding.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Represents the change in net sales excluding the impacts of currency translation and divestitures and business exits. Organic Sales Growth is a non-GAAP financial measure. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to non-GAAP measures.

(c)&nbsp;&nbsp;&nbsp;&nbsp;Impact of the sale of the PPE business, the exit of the Company's private label diaper business in the United States, and other exited businesses and markets in conjunction with the 2024 Transformation Initiative.

Net sales of $4.2 billion for the three months ended June 30, 2025 declined 1.6% primarily due to divestitures and business exits and unfavorable currency impacts, partially offset by organic sales. Organic sales increased 3.9% driven by volume gains, partially offset by lower pricing, while mix was flat compared to the prior year.

Net sales of $8.2 billion for the six months ended June 30, 2025 declined 4.0%, while organic sales increased 1.2%. Impacts related to divestitures and business exits, currency impacts and the components of organic sales are consistent with the drivers discussed above.

***Gross and Operating Profits***

Gross profit of $1.5 billion for the three months ended June 30, 2025 decreased 8.7%, while gross margin of 35.0% decreased 270 basis points. Gross margin in the current and prior year included approximately 190 basis points and 100 basis points, respectively, for charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense, workforce reductions and asset write-offs. Excluding these charges, adjusted gross margin decreased 180 basis points to 36.9% primarily due to unfavorable pricing net of cost inflation, including recent tariff impacts, partially offset by gross productivity savings from integrated margin management of approximately $110.

Gross profit of $3.0 billion for the six months ended June 30, 2025 decreased 9.6%, while gross margin of 36.1% decreased 220 basis points. Gross margin in the current and prior year included approximately 160 basis points and 60 basis points, respectively, for charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense, workforce reductions and asset write-offs. Excluding these charges, adjusted gross margin decreased 120 basis points to 37.7% primarily due to unfavorable pricing net of cost inflation, partially offset by gross productivity savings from integrated margin management of approximately $200.

Operating profit for the three and six months ended June 30, 2025 was $592 and $1.2 billion, respectively, compared to $539 and $1.3 billion in the prior year. Results included charges related to the 2024 Transformation Initiative of $121 and $196 for the three and six months ended June 30, 2025, respectively, and $190 and $235 for the three and six months ended June 30, 2024. Excluding these items, adjusted operating profit for the three and six months ended June 30, 2025 was $713 and $1.4 billion, respectively, representing a 2.2% and 4.7% decrease compared to the prior year.

Drivers of the changes in adjusted operating profit were:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Percent Change in Adjusted Operating Profit*** | **Volume** | **Net Price** | **Input Costs** | **Other Manufacturing Costs**<sup>(a)</sup> | **Currency Translation** | **Other**<sup>(b)</sup> | **Total**<sup>(c)</sup> |
| Three Months Ended | **6.6** | **(7.0)** | **(10.5)** | **1.2** | **(0.4)** | **7.9** | **(2.2)** |
| Six Months Ended | **1.1** | **(7.0)** | **(7.7)** | **2.5** | **(1.2)** | **7.6** | **(4.7)** |

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(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes impact of changes in product mix, marketing, research and general expenses and other (income) and expense, net.

(c)&nbsp;&nbsp;&nbsp;&nbsp;Adjusted Operating Profit is a non-GAAP financial measure. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to non-GAAP measures.

The decrease in adjusted operating profit for the three and six months ended June 30, 2025 resulted from lower net sales and adjusted gross profit discussed above partially offset by lower marketing, research and general expenses.

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***Income from Continuing Operations***

Income from Continuing Operations for the three and six months ended June 30, 2025 was $444 and $914, respectively, compared to $464 and $1.0 billion in the prior year. Apart from the operating profit drivers discussed above, the decrease was primarily related to a higher effective tax rate and lower income from equity companies.

Net interest expense for the three and six months ended June 30, 2025 of $62 and $119, respectively, was in line with the prior year.

Our share of net income of equity companies for the three and six months ended June 30, 2025 was $47 and $91, respectively, compared to $63 and $124 for the prior year. The decrease was primarily driven by Kimberly-Clark de Mexico, S.A.B. de C.V., due to unfavorable foreign currency effects, higher inputs costs and lower volumes, partially offset by pricing, productivity savings and lower general and administrative expenses.

The effective tax rate for the three and six months ended June 30, 2025 was 22.6% and 23.1%, respectively, compared to 13.0% and 18.8% in the prior year. The adjusted effective tax rate for the three and six months ended June 30, 2025 was 20.9% and 20.8%, respectively, compared to 20.4% and 21.8% in the prior year. The first half of 2025 benefited from the resolution of certain tax matters.

Diluted earnings per share for the three and six months ended June 30, 2025 were $1.33 and $2.72, respectively, compared to $1.35 and $2.96 for the prior year. Adjusted diluted earnings per share for the three and six months ended June 30, 2025 were $1.63 and $3.25, respectively, representing a 4.1% and 4.7% decrease compared to the prior year. The decrease was primarily driven by lower adjusted operating profit and lower income from equity companies, which more than offset the benefits from lower dilutive shares outstanding.

***Income from Discontinued Operations, Net of Income Taxes***

Income from discontinued operations, net of income taxes for the three and six months ended June 30, 2025 was $68 and $171, respectively, compared to $89 and $191 in the prior year. The decrease was primarily driven by pre-tax separation costs of $33 million.

**Segment Results**

Drivers of the changes in segment net sales and operating profit were:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Percent Change in Segment Net Sales*** | **Volume** | **Mix/Other** | **Net Price** | **Divestitures and Business Exits**<sup>(c)</sup> | **Currency Translation** | **Total**<sup>(a)</sup> | **Organic**<sup>(b)</sup> |
| Three Months Ended |  |  |  |  |  |  |  |
| &nbsp;&nbsp;NA | **5.2** | **(0.7)** | **(0.4)** | **(5.7)** | **(0.2)** | **(1.9)** | **4.3** |
| &nbsp;&nbsp;IPC | **4.8** | **1.2** | **(2.7)** | **(0.3)** | **(2.6)** | **0.4** | **3.3** |
| Six Months Ended |  |  |  |  |  |  |  |
| &nbsp;&nbsp;NA | **2.6** | **(0.3)** | **(0.5)** | **(4.3)** | **(0.3)** | **(2.9)** | **1.8** |
| &nbsp;&nbsp;IPC | **2.0** | **0.7** | **(2.6)** | **(0.3)** | **(4.3)** | **(4.5)** | **0.1** |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Percent Change in Segment Operating Profit*** | **Volume** | **Net Price** | **Input Costs** | **Other Manufacturing Costs**<sup>(d)</sup> | **Currency Translation** | **Other**<sup>(e)</sup> | **Total** |
| Three Months Ended |  |  |  |  |  |  |  |
| &nbsp;&nbsp;NA | **3.3** | **(1.8)** | **(4.9)** | **(1.8)** | **(0.1)** | **1.3** | **(4.0)** |
| &nbsp;&nbsp;IPC | **15.2** | **(18.4)** | **(20.8)** | **7.6** | **(1.1)** | **4.6** | **(12.9)** |
| Six Months Ended |  |  |  |  |  |  |  |
| &nbsp;&nbsp;NA | **0.2** | **(2.1)** | **(3.6)** | **—** | **(0.3)** | **4.5** | **(1.3)** |
| &nbsp;&nbsp;IPC | **5.4** | **(16.5)** | **(14.4)** | **9.7** | **(3.1)** | **2.2** | **(16.7)** |

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(a)&nbsp;&nbsp;&nbsp;&nbsp;Total may not sum across due to rounding.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Represents the change in net sales excluding the impacts of currency translation and divestitures and business exits. Organic Sales Growth is a non-GAAP financial measure. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to non-GAAP measures.

(c)&nbsp;&nbsp;&nbsp;&nbsp;Impact of the sale of the PPE business, the exit of the Company's private label diaper business in the United States, and other exited businesses and markets in conjunction with the 2024 Transformation Initiative.

(d)&nbsp;&nbsp;&nbsp;&nbsp;Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.

(e)&nbsp;&nbsp;&nbsp;&nbsp;Includes impact of changes in product mix, marketing, research and general expenses and other (income) and expense, net.

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**North America**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **% change** | **2025** | **2024** | **% change** |
| Net Sales | $**2730** | $2783 | (1.9)% | $**5398** | $5559 | (2.9)% |
| Operating Profit | **655** | 682 | (4.0)% | **1333** | 1351 | (1.3)% |

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Net sales of $2.7 billion for the three months ended June 30, 2025 decreased 1.9%, primarily due to the sale of the PPE business and the exit of the private label diaper business in the US. Organic sales increased 4.3% primarily due to volume gains of 5.2%, partially offset by lower pricing and mix. Net sales of $5.4 billion for the six months ended June 30, 2025 decreased 2.9%, while organic sales increased 1.8%. Impacts of divestitures and business exits and the components of organic growth are consistent with the drivers discussed above.

Operating profit for the three and six months ended June 30, 2025 of $655 and $1.3 billion decreased 4.0% and 1.3%, respectively, primarily due to impacts of divestitures and business exits, unfavorable pricing net of cost inflation, including recent tariff impacts, partially offset by gross productivity savings and lower marketing, research and general expenses.

**International Personal Care** 

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **% change** | **2025** | **2024** | **% Change** |
| Net Sales | $**1433** | $1427 | 0.4% | $**2819** | $2953 | (4.5)% |
| Operating Profit | **182** | 209 | (12.9)% | **383** | 460 | (16.7)% |

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Net sales of $1.4 billion for the three months ended June 30, 2025 increased 0.4% primarily due to an increase in organic sales of 3.3%, partially offset by unfavorable currency impacts. Organic sales benefited from volume and mix gains of 4.8% and 1.2%, respectively, partially offset by lower pricing. Net sales of $2.8 billion for the six months ended June 30, 2025 decreased 4.5% primarily driven by unfavorable currency impacts, while organic sales were in line with the prior year.

Operating profit for the three and six months ended June 30, 2025 of $182 and $383 decreased 12.9% and 16.7%, respectively, primarily due to unfavorable pricing net of cost inflation and currency impacts, partially offset by gross productivity savings and volume gains.

**Liquidity and Capital Resources**

As detailed in Item 1, Note 1 to the Unaudited Interim Condensed Consolidated Financial Statements, the Condensed Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. As a result, unless specifically stated, the following discussion reflects Kimberly Clark's consolidated results for all periods presented.

<u>Cash Provided by Operations</u>

Cash provided by operations was $1.1 billion during the six months ended June 30, 2025 compared to $1.5 billion in the prior year. The decrease was driven by lower operating profit and unfavorable changes in operating working capital, including higher cash payments related to our 2024 Transformation Initiative.

<u>Investing</u>

Cash used for investing was $312 during the six months ended June 30, 2025 compared to $376 in the prior year, primarily due to incremental cash flows from net maturities of time deposits. During the six months ended June 30, 2025, our capital spending was $401 compared to $352 in the prior year. We anticipate that full year capital spending will be approximately $1.0 to $1.2 billion, including incremental spending from the 2024 Transformation Initiative.

<u>Financing</u>

Cash used for financing was $1.2 billion during the six months ended June 30, 2025 compared to $998 in the prior year. This increase was primarily due to debt repayments during the current year. During the six months ended June 30, 2025, we repurchased 915 thousand shares of our common stock pursuant to our publicly announced share repurchase programs at a total cost of $120 through a broker in the open market.

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Our short-term debt, which consists of U.S. commercial paper with original maturities up to 90 days and/or other short-term debt issued by non-U.S. subsidiaries, was $59 as of June 30, 2025 (included in Debt payable within one year on the Condensed Consolidated Balance Sheets). The average month-end balance of short-term debt for the six months ended June 30, 2025 was $127. These short-term borrowings provide supplemental funding to support our operations. The level of short-term debt generally fluctuates depending upon the amount of operating cash flows and the timing of customer receipts and payments for items such as dividends and income taxes.

As of June 30, 2025 and December 31, 2024, total debt from continuing operations was $7.2 billion and $7.4 billion, respectively.

We maintain a $2.0 billion revolving credit facility which expires in June 2028 and a $750 revolving credit facility which expires in May 2026. These facilities, currently unused, support our commercial paper program and would provide liquidity in the event our access to the commercial paper markets is unavailable for any reason.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are expecting favorable cash tax impacts in the near and medium term as a result of the OBBBA, however, we are still assessing its impact on our consolidated financial statements.

We have evaluated the effects of the Global anti-Base Erosion rules set forth by the Organization for Economic Co-Operation and Development, referred to as "Pillar 2," which establishes a global minimum corporate tax rate of 15%. We have (1) determined that Pillar 2 legislation has been enacted in one or more of the jurisdictions in which the Company operates and the Company is within the scope of such legislation, (2) assessed such enacted legislation and, as applicable, the Transitional Safe Harbor provisions for Pillar 2 that apply, and (3) determined the impact will be immaterial to our financial results. We intend to file a Qualified Country-by-Country Report for the current year for each jurisdiction in which we intend to rely on the Transitional Country-by-Country Reporting Safe Harbor provisions.

We believe that our ability to generate cash from operations and our capacity to issue short-term and long-term debt are adequate to fund working capital, obligations related to our 2024 Transformation Initiative, capital spending, pension contributions, share repurchases, dividends and other needs for the foreseeable future. Further, we do not expect restrictions or taxes on repatriation of cash held outside of the U.S. to have a material effect on our overall business, liquidity, financial condition or results of operations for the foreseeable future.

**Information Concerning Forward-Looking Statements**

Certain matters contained in this report concerning the business outlook, including raw material, energy and other input costs, our plans and expectations regarding the pending IFP Transaction, the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, innovations, marketing and other spending, net sales, anticipated currency rates and exchange risks, including the impact in Argentina and Türkiye, effective tax rate, contingencies and anticipated transactions of Kimberly-Clark, including dividends, share repurchases and pension contributions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon management's expectations and beliefs concerning future events impacting Kimberly-Clark. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them.

The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including risks and uncertainties around the pending IFP Transaction (including risks related to delays or failure to complete the proposed transaction, the incurrence of significant transaction and separation costs, adverse market reactions, regulatory or legal challenges, and operational disruptions), risks that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative (including risks related to disruptions to our business or operations or related to any delays in implementation), war in Ukraine (including the related responses of consumers, customers, and suppliers and sanctions issued by the U.S., the European Union, Russia or other countries), government trade or similar regulatory actions (including current and potential trade and tariff actions affecting the countries where we operate and the resulting negative impacts on our supply chain, commodity costs, and consumer spending), pandemics, epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, supply chain disruptions, disruptions in the capital and credit markets,

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counterparty defaults (including customers, suppliers and financial institutions with which we do business), failure to realize the expected benefits or synergies from our acquisition and disposition activity, impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing, changes in customer preferences, severe weather conditions, regional instabilities and hostilities (including the war in Israel), potential competitive pressures on selling prices for our products, energy costs, general economic and political conditions globally and in the markets in which we do business, as well as our ability to maintain key customer relationships, could affect the realization of these estimates.

The factors described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results.

**SUMMARY OF NON-GAAP FINANCIAL MEASURES**

The following provides the reconciliation of the non-GAAP financial measures provided in this report to the most closely related GAAP measure. These measures include: Organic Sales Growth, Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Earnings per Share, and Adjusted Effective Tax Rate. All discussions regarding non-GAAP financial measures reflect results from our continuing operations for all periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Organic Sales Growth is defined as the change in Net Sales, as determined in accordance with U.S. GAAP, excluding the impacts of currency translation and divestitures and business exits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Gross and Operating Profit, Adjusted Earnings per Share, and Adjusted Effective Tax Rate are defined as Gross Profit, Operating Profit, Diluted Earnings per Share, and Effective Tax Rate, respectively, as determined in accordance with U.S. GAAP, excluding the impacts of certain items that management believes do not reflect our underlying operations, and which are discussed in further detail below.

The income tax effect of these non-GAAP items on the Company's Adjusted Earnings per Share is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the Company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income from Continuing Operations Before Income Taxes and Equity Interests and Provision for income taxes.

We use these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that we do not believe reflect our underlying and ongoing operations. We believe that presenting these non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliation to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with our Unaudited Interim Condensed Consolidated Financial Statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. We compensate for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures.

The non-GAAP financial measures exclude the following items for the relevant time periods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2024 Transformation Initiative - We initiated this transformation to create a more agile and focused operating structure that will accelerate our proprietary pipeline of innovation in right-to-win spaces and improve our growth trajectory, profitability, and returns on investment. See Item 1, Note 2 to the Unaudited Interim Condensed Consolidated Financial Statements for details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• IFP Repatriated Earnings – In connection with the IFP Transaction, we recognized a deferred tax liability for certain permanently reinvested earnings from the IFP Business that are expected to be repatriated prior to the close of the transaction.

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The following tables provide a reconciliation of Organic Sales Growth from continuing operations:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Percent change vs. the prior year period** | **Percent change vs. the prior year period** | **Percent change vs. the prior year period** |
| | **NA** | **IPC** | **Total** |
| **Net Sales Growth** | **(1.9)** | **0.4** | **(1.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency Translation | **0.2** | **2.6** | **1.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and Business Exits | **5.7** | **0.3** | **4.4** |
| **Organic Sales Growth**<sup>(a)</sup> | **4.3** | **3.3** | **3.9** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Percent change vs. the prior year period** | **Percent change vs. the prior year period** | **Percent change vs. the prior year period** |
| | **NA** | **IPC** | **Total** |
| **Net Sales Growth** | **(2.9)** | **(4.5)** | **(4.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency Translation | **0.3** | **4.3** | **1.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and Business Exits | **4.3** | **0.3** | **3.4** |
| **Organic Sales Growth**<sup>(a)</sup> | **1.8** | **0.1** | **1.2** |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;Table may not foot due to rounding.

The following table provides a reconciliation of Adjusted Gross Profit from continuing operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| **Gross Profit** | $**1456** | $1594 | $**2965** | $3280 |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 Transformation Initiative | **82** | 45 | **135** | 45 |
| **Adjusted Gross Profit** | $**1538** | $1639 | $**3100** | $3325 |

---

The following table provides a reconciliation of Adjusted Operating Profit from continuing operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating Profit** | $**592** | $539 | $**1223** | $1254 |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 Transformation Initiative | **121** | 190 | **196** | 235 |
| **Adjusted Operating Profit** | $**713** | $729 | $**1419** | $1489 |

---

The following table provides a reconciliation of Adjusted Earnings per Share from continuing operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| **Diluted Earnings per Share** | $**1.33** | $1.35 | $**2.72** | $2.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 Transformation Initiative | **0.27** | 0.35 | **0.50** | 0.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;IFP Repatriated Earnings | **0.03** |  | **0.03** |  |
| **Adjusted Earnings per Share**<sup>(a)</sup> | $**1.63** | $1.70 | $**3.25** | $3.41 |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;The non-GAAP adjustments included above are presented net of tax. The income tax effect of these non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. Refer to the Adjusted Effective Tax Rate reconciliation below for the tax effect of these adjustments on the Company's reported Provision for income taxes.

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The following tables provide a reconciliation of the continuing operations Adjusted Effective Tax Rate:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** |
| | **2025** | **2025** | **2024** | **2024** |
| | **Income From Continuing Operations Before Income Taxes and Equity Interests** | **Provision for Income Taxes** | **Income From Continuing Operations Before Income Taxes and Equity Interests** | **Provision for Income Taxes** |
| **As Reported** | $**513** | $**(116)** | $461 | $(60) |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 Transformation Initiative | **122** | **(27)** | 190 | (73) |
| &nbsp;&nbsp;&nbsp;&nbsp;IFP Repatriated Earnings | **—** | **10** |  |  |
| **As Adjusted** | $**635** | $**(133)** | $651 | $(133) |
| **Effective Tax Rate** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;As Reported |  | **22.6%** |  | 13.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;As Adjusted |  | **20.9%** |  | 20.4% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2025** | **2024** | **2024** |
| | **Income From Continuing Operations Before Income Taxes and Equity Interests** | **Provision for Income Taxes** | **Income From Continuing Operations Before Income Taxes and Equity Interests** | **Provision for Income Taxes** |
| **As Reported** | $**1070** | $**(247)** | $1104 | $(208) |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 Transformation Initiative | **199** | **(27)** | 235 | (84) |
| &nbsp;&nbsp;&nbsp;&nbsp;IFP Repatriated Earnings | **—** | **10** |  |  |
| **As Adjusted** | $**1269** | $**(264)** | $1339 | $(292) |
| **Effective Tax Rate** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;As Reported |  | **23.1%** |  | 18.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;As Adjusted |  | **20.8%** |  | 21.8% |

---

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures**

As of June 30, 2025, an evaluation was performed under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of June 30, 2025. There were no changes in our internal control over financial reporting during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

**PART II&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings**

See Part I, Item 1, Note 10 to the Unaudited Interim Condensed Consolidated Financial Statements, which is incorporated in this Item 1 by reference.

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;Unregistered Sales of Equity Securities and Use of Proceeds**

<u>Purchases of Equity Securities by the Issuer and Affiliated Purchasers</u>

We repurchase shares of Kimberly-Clark common stock from time to time pursuant to publicly announced share repurchase programs. All our share repurchases during the three months ended June 30, 2025 were made through a broker in the open market.

The following table contains information for shares repurchased during the three months ended June 30, 2025. None of the shares in this table were repurchased directly from any of our officers or directors.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number**<br>**of Shares**<br>**Purchased**<sup>(a)</sup> | **Average<br>Price Paid<br>Per Share** | **Total Number of<br>Shares Purchased<br>as Part of Publicly<br>Announced Plans<br>or Programs** | **Maximum Number**<br>**of Shares That May**<br>**Yet Be Purchased**<br>**Under the Plans or**<br>**Programs**<sup>(a)</sup> |
| April 1 to April 30 | 135211 | $138.42 | 8722567 | 31277433 |
| May 1 to May 31 |  |  | 8722567 | 31277433 |
| June 1 to June 30 | 322680 | 130.14 | 9045247 | 30954753 |
| &nbsp;&nbsp;&nbsp;Total | 457891 |  |  |  |

---

(a)Share repurchases were made pursuant to a share repurchase program authorized by our Board of Directors on January 22, 2021 (the "2021 Program"). The 2021 Program allows for the repurchase of 40 million shares in an amount not to exceed $5 billion.

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp;Other Information**

(c)Our directors and officers may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Securities Exchange Act of 1934, as amended. During the three months ended June 30, 2025, no such plans or other arrangements were adopted or terminated.

------

**Item 6.&nbsp;&nbsp;&nbsp;&nbsp;Exhibits** 

(a)Exhibits

<u>[Exhibit No. (10)q. Form of Award Agreements under 2021 Equity Participation Plan for Performance Restricted Stock Units, filed herewith.](exhibitperformancerestrict.htm)</u>

<u>[Exhibit No. (10)](exhibit10roff-cyletimexves.htm)[r](exhibit10roff-cyletimexves.htm)[.](exhibit10roff-cyletimexves.htm)[Form of Award Agreemen](exhibit10roff-cyletimexves.htm)[ts under 2021 Equity](exhibit10roff-cyletimexves.htm)[Participation](exhibit10roff-cyletimexves.htm)[P](exhibit10roff-cyletimexves.htm)[lan for](exhibit10roff-cyletimexves.htm)[Off-Cycle Time-V](exhibit10roff-cyletimexves.htm)[est](exhibit10roff-cyletimexves.htm)[ed Restricted Stock Unit](exhibit10roff-cyletimexves.htm)[s,](exhibit10roff-cyletimexves.htm)[filed herewit](exhibit10roff-cyletimexves.htm)[h.](exhibit10roff-cyletimexves.htm)</u>

<u>[Exhibit No. (10](exhibit10tannualtime-veste.htm)[)t](exhibit10tannualtime-veste.htm)[.](exhibit10tannualtime-veste.htm)[Form of Award](exhibit10tannualtime-veste.htm)[Agreements under 2021 Equity Par](exhibit10tannualtime-veste.htm)[t](exhibit10tannualtime-veste.htm)[icipation Plan for](exhibit10tannualtime-veste.htm)[Annual Time-Vested Restricted Stock Unit](exhibit10tannualtime-veste.htm)[s,](exhibit10tannualtime-veste.htm)[filed herewith.](exhibit10tannualtime-veste.htm)</u>

<u>[Exhibit No. (10)u. Equity and Asset Purchase Agreement, dated as of June 4, 2025, by and among Kimberly-Clark Corporation, as the Seller, Kimberly-Clark IFP Newco B.V., as the Company, and Suzano International Holding B.V., as the Buyer, filed herewith.](exhibit10uequityandassetpu.htm)</u>

<u>[Exhibit No. (31)a. Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, filed herewith.](kmb10qq22025exhibit31a.htm)</u>

<u>[Exhibit No. (31)b. Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, filed herewith.](kmb10qq22025exhibit31b.htm)</u>

<u>[Exhibit No. (32)a. Certification of Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.](kmb10qq22025exhibit32a.htm)</u>

<u>[Exhibit No. (32)b. Certification of Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.](kmb10qq22025exhibit32b.htm)</u>

Exhibit No. (101).INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

Exhibit No. (101).SCH XBRL Taxonomy Extension Schema Document

Exhibit No. (101).CAL XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit No. (101).DEF XBRL Taxonomy Extension Definition Linkbase Document

Exhibit No. (101).LAB XBRL Taxonomy Extension Label Linkbase Document

Exhibit No. (101).PRE XBRL Taxonomy Extension Presentation Linkbase Document

Exhibit No. (104) The cover page from this Current Report on Form 10-Q formatted as Inline XBRL

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| | KIMBERLY-CLARK CORPORATION |
| | (Registrant) |
| By: | /s/ Andrew Scribner |
|  | Andrew Scribner |
|  | Vice President and Controller |
|  | (Principal Accounting Officer) |

---

August 1, 2025

## Ex-10.Q

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Exhibit (10)q**

**KIMBERLY-CLARK CORPORATION**

**PERFORMANCE RESTRICTED STOCK UNIT**

**AWARD AGREEMENT**

This Award, granted effective on __________ (the "Grant Date"), by Kimberly-Clark Corporation, a Delaware corporation (hereinafter called the "Corporation"), to ________________ (the "Participant") is subject to the terms and conditions of the Kimberly-Clark Corporation 2021 Equity Participation Plan (the "Plan") and the Award Agreement, including any terms and conditions contained in Appendix A and/or Appendix B to the Award Agreement.

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, the Corporation has adopted the Plan to encourage those employees who materially contribute, by managerial, scientific or other innovative means, to the success of the Corporation or of an Affiliate, to acquire an ownership interest in the Corporation, thereby increasing their motivation for and interest in the Corporation's and its Affiliates' long-term success;

NOW, THEREFORE, it is agreed as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Share Units Granted</u>. The Corporation hereby grants to the Participant Performance Restricted Stock Units ("PRSUs") at the target level of ______ (the "Target Level"), subject to the terms, conditions and restrictions set forth herein and in the Plan, and the Corporation's attainment of the Performance Goals established by the Committee. The actual number of PRSUs earned by the Participant at the end of the Restricted Period may range from 0 to 200% of the Target Level.

2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability Restrictions</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Period</u>. During the Restricted Period, the Participant may not sell, assign, transfer, or otherwise dispose of, or mortgage, pledge or otherwise encumber the Award, and any such attempted sale, assignment, transfer, pledge or disposal shall be void. Except as provided under this Section 2, the Award, including any accrued dividend equivalents, shall be subject to forfeiture until the end of the Restricted Period. The Participant becomes 100% vested in the number of PRSUs earned based on attainment of the Performance Goal at the end of the Restricted Period as approved and authorized by the Committee.

The Restricted Period shall begin on the date of the granting of this Award, and shall end on [Insert]. During the Restricted Period, holders of Awards shall have none of the rights of a shareholder with respect to the shares of Common Stock that may be earned pursuant to the PRSUs, including, but not limited to, any right to receive dividends in cash or other property or other distribution or rights in respect of such shares except as otherwise provided in this Award Agreement, nor any right to vote such shares as the record owner thereof.

During each year in the Restricted Period, the Participant will not be paid dividend equivalents on the unvested PRSUs but the Participant will receive a credit equal to dividends declared on the Corporation's Common Stock which will be reinvested in additional PRSUs at the then fair market value of the Corporation's Common Stock on the date dividends are paid, and the additional PRSUs will be accumulated and paid if and when the PRSUs vest, based on the actual number of PRSUs that vest. In the case of dividends paid in property other than cash, the amount of the dividend shall be deemed to be the fair market value of the property at the time of the payment of the dividend, as determined in good faith by the Corporation. The Corporation shall not be required to segregate any cash or other property of the Corporation.

(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Employment</u>. For purposes of this Award, the Participant's employment will be considered terminated as of the date the Participant is no longer actively providing services to the Corporation or one of its Affiliates (regardless of the reason for such termination and whether or not later

------

found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant's employment agreement, if any), and unless otherwise expressly provided in this Award Agreement or determined by the Corporation, the Participant's right to receive PRSUs and vest in the Award under the Plan, if any, will terminate effective as of such date and will not be extended by any notice period or any period of "garden leave" or similar period mandated under employment laws in the jurisdiction where the Participant is employed or the terms of the Participant's employment agreement, if any); the Committee shall have the exclusive discretion to determine when the Participant is no longer employed for purposes of the Award (including whether the Participant may still be considered employed while on a leave of absence).

The Participant shall forfeit any unvested Award, including any accrued dividend equivalents, upon termination of employment unless such termination is (i) due to a Qualified Termination of Employment, or (ii) if more than six months after the Grant Date, due to death, Retirement, Total and Permanent Disability, or the shutdown or divestiture of a business unit. A termination of employment shall not be deemed to have occurred while a Participant is on military leave or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Participant retains a right to reemployment with the Corporation or an Affiliate under an applicable statute or by contract. For purposes of this sub-section, a leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Corporation or an Affiliate. If the period of leave exceeds six months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence is substituted for such six-month period in determining whether a termination of employment shall be deemed to have occurred. A termination of employment with the Corporation or an Affiliate to accept immediate reemployment with the Corporation or an Affiliate likewise shall not be deemed to be a termination of employment for the purposes of the Plan. A Participant who is classified as an intermittent employee shall be deemed to have a termination of employment for purposes of the Plan.

For purposes of this Award, a termination of employment includes a termination that is deemed an "unfair dismissal" or a "constructive dismissal." Further, the Participant understands that the Award is a conditional right. Participant shall forfeit any unvested Award upon termination of employment except as provided above, for example, regardless of whether (1) the Participant is considered to be unfairly dismissed without good cause; (2) the Participant is dismissed for disciplinary or objective reasons or due to a collective dismissal; (3) the Participant terminates his or her employment or service relationship due to a change of work location, duties or any other employment or contractual condition; or (4) the Participant terminates his or her employment or service relationship due to a unilateral breach of contract by the Corporation or an Affiliate. Consequently, upon termination of the Participant's employment or service relationship for any of the above reasons, the Participant may automatically lose any rights to the Awards that were not vested on the date of termination of the Participant's employment or service relationship, as described in the Plan and the Award Agreement.

(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Death, Retirement, or Total and Permanent Disability</u>. In the event that more than six months after the Grant Date the Participant's termination of employment is due to death or Total and Permanent Disability, it shall result in pro rata vesting in the number of PRSUs earned. This pro rata vesting shall be determined based on the Target Level of PRSUs (including any accrued dividend equivalents accumulated pursuant to Section 2(a)) (i) prorated for the number of full months of employment during the Restricted Period prior to the Participant's termination of employment, multiplied by (ii) the Performance Goal percentage as approved and authorized by the Committee at the end of the Restricted Period. Any fractional share of the Corporation resulting from such a prorated award shall be rounded to the nearest whole share and shall be paid, along with any other shares earned under such prorated award, within 70 days following the end of the Restricted Period or within such later period as permitted by Section 409A of the U.S. Internal Revenue Code of 1986 and the regulations thereunder, as amended from time to time (the "Code"). In the event that more than six months after the Grant Date

Page 2 of 50

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the Participant's termination of employment is due to Retirement, then provided that, in the sole discretion of the Corporation, (1) no circumstances exist that could lead to a determination that the Participant should be, or could have been, terminated for Cause; and (2) the Participant has not engaged in conduct that would trigger the right of forfeiture or recoupment under Section 21 of this Award Agreement, it shall result in 100% vesting in the number of PRSUs earned based on attainment of the Performance Goal at the end of the Restricted Period as approved and authorized by the Committee, and such Award shall be paid within 70 days following the end of the Restricted Period.

Notwithstanding this Section 2(c), if the Corporation receives an opinion of counsel that there has been a legal judgment and/or legal development in the Participant's jurisdiction that would likely result in the favorable Retirement treatment that applies to the PRSUs under this Section 2(c) being deemed unlawful and/or discriminatory, then the Corporation will not apply the favorable Retirement treatment and PRSUs will be treated as they would under the rules that apply if the Participant's employment with the Corporation or an Affiliate ends for any other reason, as applicable.

(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Shutdown or Divestiture</u>. In the event that more than six months after the Grant Date the Participant's termination of employment is due to the shutdown or divestiture of the Corporation's or its Affiliate's business it shall result in pro rata vesting in the number of PRSUs earned. This pro rata vesting shall be determined based on the Target Level of PRSUs (including any accrued dividend equivalents accumulated pursuant to Section 2(a)) (1) prorated for the number of full months of employment during the Restricted Period prior to the Participant's termination of employment, multiplied by (2) the Performance Goal percentage as approved and authorized by the Committee at the end of the Restricted Period. Any fractional share of the Corporation resulting from such a prorated award shall be rounded to the nearest whole share and shall be paid, along with any other shares earned under such prorated award, within 70 days following the end of the Restricted Period or within such later period as permitted by Section 409A of the Code. For the purposes of this Award, a shutdown or divestiture of the Corporation's or its Affiliate's business unit is defined as one for which the charges related to the shutdown or divestiture are accounted for, and reported externally, as an exit activity in the Corporation's applicable SEC filings. The Corporation has complete discretion to determine whether a shutdown or divestiture of a business unit has occurred under the terms of the Plan.

(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Qualified Termination of Employment</u>. In the event of a Qualified Termination of Employment, the Award which would have otherwise been forfeited will be handled consistent with Section 14(b) of the Plan and shall be paid within 10 days following the last day of employment of the Participant with the Corporation or an Affiliate. Notwithstanding anything in this Agreement to the contrary, to the extent that the Award may constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code, the payment of an Award to a Key Employee who has separated from service due to a Qualified Termination of Employment shall be made at the earlier of the first day of the seventh month following the date of separation from service or the end of the Restricted Period. A Key Employee is any Participant who meets the definition of a specified employee as defined in Section 409A(a)(2)(B)(i) of the Code and the regulations promulgated thereunder.

(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Awards</u>. Unless otherwise set forth herein, the payment of the Award, including any accrued dividend equivalents accumulated pursuant to Section 2(a), shall be made in shares of Common Stock and the payment of an Award shall be made within 70 days following the end of the Restricted Period.

(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Tax-Related Items</u>. No shares of Common Stock, nor any cash payment, may be delivered under this Award, unless prior to or simultaneously with such issuance, the Participant or, in the event of his death, the person succeeding to his rights hereunder, shall pay to the Corporation or an Affiliate, as applicable, such amount as the Corporation advises is required under applicable federal, state or local laws to withhold and pay over to governmental taxing authorities in relation to this Award. The Corporation may, in its discretion, withhold payment of required Tax-Related items (as defined in the Acknowledgment of Conditions section) with cash or shares of Common Stock which otherwise would be delivered following the date of vesting of the Award under this Section 2.

Page 3 of 50

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3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Nontransferability</u>. Neither the Award nor the Participant's right to receive payment for vested Awards may be assigned or transferred except upon the death of the Participant (i) by will, or (ii) by the laws of descent and distribution.

4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Law</u>. No payment may be made under this Award, unless prior to the issuance thereof, the Corporation shall have received an opinion of counsel to the effect that this Award by the Corporation to the Participant will not constitute a violation of the U.S. Securities Act of 1933, as amended. As a condition of this Award, the Participant shall, if requested by the Corporation, submit a written statement in form satisfactory to counsel for the Corporation, to the effect that any shares received under this Award shall be for investment and not with a view to the distribution thereof within the meaning of the U.S. Securities Act of 1933, as amended, and the Corporation shall have the right, in its discretion, to cause the certificates representing shares hereunder to be appropriately legended to refer to such undertaking or to any legal restrictions imposed upon the transferability thereof by reason of such undertaking.

The Award granted hereby is subject to the condition that if the listing, registration or qualification of the shares subject hereto on any securities exchange or under any state or federal law, or if the consent or approval of any regulatory body shall be necessary as a condition of, or in connection with, the granting of the Award or the delivery of shares thereunder, such shares may not be delivered unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained. The Corporation agrees to use its best efforts to obtain any such requisite listing, registration, qualification, consent or approval.

The Participant is solely responsible for obtaining/providing whatever exchange control approvals, permits, licenses, or notices, which may be necessary for the Participant to hold the Award, or to receive any payment of cash or shares or to hold or sell the shares subject to the Award, if any. Neither the Corporation nor its Affiliates will be responsible for obtaining any such approvals, licenses or permits, or for making any such notices, nor will the Corporation or its Affiliates be liable for any fines or penalties the Participant may incur for failure to obtain any required approvals, permits or licenses or to make any required notices.

5.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Right of Continued Employment</u>. The granting of this Award does not confer upon the Participant any legal right to be continued in the employ of the Corporation or its Affiliates, and the Corporation and its Affiliates reserve the right to discharge the Participant whenever the interest of the Corporation or its Affiliates may so require without liability to the Corporation or its Affiliates, the Board of Directors of the Corporation or its Affiliates, or the Committee, except as to any rights which may be expressly conferred on the Participant under this Award.

6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Discretion of the Corporation, Board of Directors and the Committee</u>. Any decision made or action taken by the Corporation or by the Board of Directors of the Corporation or by the Committee arising out of or in connection with the construction, administration, interpretation and effect of this Award shall be within the absolute discretion of the Corporation, the Board of Directors of the Corporation or the Committee, as the case may be, and shall be conclusive and binding upon all persons.

7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Inalienability of Benefits and Interest</u>. This Award and the rights and privileges conferred hereby shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any such attempted action shall be void and no such benefit or interest shall be in any manner liable for or subject to debts, contracts, liabilities, engagements, or torts of the Participant.

8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law and Consent to Jurisdiction</u>. Subject to Section 19(h) below, all questions pertaining to the construction, interpretation, regulation, validity and effect of the provisions of this Award and any rights under the Plan shall be determined in accordance with the laws of the State of Delaware. The Corporation, its Affiliates, and the Participant (a) hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts in the State of Delaware for the purposes of any claim or action arising out of or based upon this Award Agreement or relating to the subject matter hereof; (b)

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hereby waive, to the extent not prohibited by applicable law, and agree not to assert by way of motion, as a defense or otherwise, in any such claim or action, any claim that it, he or she is not subject personally to the jurisdiction of the above-named courts, that its, his or her property is exempt or immune from attachment or execution, that any such proceeding brought in the above-named court is improper or that this Award Agreement or the subject matter hereof may not be enforced in or by such court; and (c) hereby agree not to commence any claim or action arising out of or based upon this Award Agreement or relating to the subject matter hereof other than before the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such claim or action to any court other than the above-named courts whether on the grounds of inconvenient forum or otherwise; provided, however, that the Corporation, its Affiliates, and the Participant may seek to enforce a judgment issued by the above-named courts in any proper jurisdiction. The Corporation, its Affiliates, and the Participant hereby consent to service of process in any such proceeding, and agree that service of process by registered or certified mail, return receipt requested is reasonably calculated to give actual notice.

9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase of Common Stock</u>. The Corporation and its Affiliates may, but shall not be required to, purchase shares of Common Stock of the Corporation for purposes of satisfying the requirements of this Award. The Corporation and its Affiliates shall have no obligation to retain and shall have the unlimited right to sell or otherwise deal with for their own account, any shares of Common Stock of the Corporation purchased for satisfying the requirements of this Award.

10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any notice to be given to the Corporation under this Award, except as required under Sections 19 and 20 below, shall be addressed to the Corporation in care of its Chief Human Resources Officer at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA, and any notice to be given to the Participant under the terms of this Award may be addressed to him or her at the address as it appears on the Corporation's records, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given if and when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, registered and deposited, postage and registry fee prepaid, in a post office or branch post office regularly maintained by the United States Government or any equivalent non-U.S. postal service.

11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Changes in Capitalization</u>. In the event there are any changes in the Common Stock or the capitalization of the Corporation through a corporate transaction, such as any merger, any acquisition through the issuance of capital stock of the Corporation, any consolidation, any separation of the Corporation (including a spin-off or other distribution of stock of the Corporation), any reorganization of the Corporation (whether or not such reorganization comes within the definition of such term in Section 368 of the Code), or any partial or complete liquidation by the Corporation, recapitalization, stock dividend, stock split or other change in the corporate structure, appropriate adjustments and changes shall be made by the Committee in (a) the number and type or class of shares subject to this Award, and (b) such other provisions of this Award as may be necessary and equitable to carry out the foregoing purposes.

12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect on Other Plans</u>. All benefits under this Award shall constitute special incentives and shall not affect the level of benefits provided to or received by the Participant (or the Participant's estate or beneficiaries) as part of any employee benefit plan of the Corporation or an Affiliate. This Award shall not be construed to affect in any way the Participant's rights and obligations under any other plan maintained by the Corporation or an Affiliate on behalf of employees.

13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Discretionary Nature of Award</u>. The grant of an Award is a one-time benefit and does not create any contractual or other right to receive a grant of Awards or benefits in lieu of Awards in the future. Future grants, if any, will be at the sole discretion of the Corporation, including, but not limited to, the timing of any grant, the number of PRSUs and vesting provisions. The value of the Award is an extraordinary item outside the scope of the Participant's employment contract, if any. As such, the Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service

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awards, leave-related payments, holiday pay, pension, retirement or welfare benefits or similar payments.

14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Data Privacy</u>. The Participant hereby authorizes their actual employer (the "Employer") to furnish the Corporation (and any agent of the Corporation administering the Plan or providing Plan recordkeeping services) with such information and data as it shall request in order to facilitate the grant of Awards and administration of the Plan and the Participant waives any data privacy rights such Participant might otherwise have with respect to such information. The Controller of personal data processing is Kimberly-Clark Corporation with registered offices at 351 Phelps Drive, Irving, Texas 75038, United States of America*.***

15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Conflict with Plan or Other Documents</u>. This Award is awarded pursuant to and subject to the Plan. This Agreement is intended to supplement and carry out the terms of the Plan. It is subject to all terms and provisions of the Plan and, in the event of a conflict, the Plan shall prevail. In the event of any conflict between this Agreement and the terms of any notice, communication, plan summary, prospectus or other ancillary documentation relating to the Award, this Agreement will prevail.

16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>. This Award Agreement, including but not limited to the restrictive covenants described in Sections 19 and 20 below, shall be binding upon and inure to the benefit of any successor or successors of the Corporation.

17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments</u>. The Committee may at any time alter or amend this Award to the extent (a) permitted by law, (b) permitted by the rules of any stock exchange on which the Common Stock or any other security of the Corporation is listed, and (c) permitted under applicable provisions of the U.S. Securities Act of 1933, as amended, the U.S. Securities Exchange Act of 1934, as amended (including rule 16b-3 thereof).

18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. Terms which are capitalized are defined herein or in the Plan and have the same meaning set forth in the Plan, unless the context indicates otherwise.

19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants For U.S. Participants</u>.

(a)<u>Application</u>. The provisions of this Section 19 apply to Participants who are employed by the Corporation or an Affiliate located in the United States and are subject to the laws of the United States as of the date of termination of the Participant's employment; provided, however, that to the extent the Participant is party to an employment or other agreement with the Corporation or any Affiliate containing non-competition, non-solicitation, confidentiality, business ideas or similar restrictions (a "standalone restrictive covenant agreement"), whether or not such standalone restrictive covenant agreement has been agreed to before or after execution of this Award Agreement, that standalone restrictive covenant agreement and related enforcement provisions shall apply and the following provisions of this Section 19 shall also apply, unless otherwise determined by the Corporation in its sole discretion. Notwithstanding the foregoing, Section 19(l) below shall apply in any case.

(b)<u>Non-Competition</u>. Subject to Section 19(h), it is acknowledged that the Participant has acquired or will acquire Confidential Information during the Participant's employment with the Corporation or any Affiliate, and should the Participant's employment cease, the Participant will inevitably use or disclose the Corporation's or an Affiliate's Confidential Information while working in a competitive role. It is further acknowledged that it may be difficult to police Section 19(e) below, prohibiting the disclosure of such Confidential Information as well as the non-solicitation sub-sections set out below. For these reasons, during the term of the Participant's employment with the Corporation or any Affiliate and for the applicable period listed in Appendix B of this Award Agreement following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, in any country or countries for which the Participant had development, marketing, innovation/technology (R&D), distribution, sales, administrative, operational/supply chain, manufacturing oversight, or other responsibilities during the last two (2) years of the Participant's employment or was provided with regular and material access to Confidential Information regarding the Corporation's or an Affiliate's business operations in that country or countries during the last two (2) years of the Participant's employment, either directly or indirectly, perform duties or undertake responsibilities (including without

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(c)<u>Non-Solicitation of Employees</u>. Subject to Section 19(h), for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date, and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate, or (ii) be otherwise involved in the recruitment of such person, to leave the employment of the Corporation or of any Affiliate. Furthermore, the Participant shall not for a period of two (2) years following the termination date, regardless of the reason for or the manner of termination, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor or (ii) be otherwise involved in the recruitment of such person to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor. The Participant must inform the Corporation immediately on becoming aware of any such recruitment.

(d)<u>Non-Solicitation of Business</u>. Subject to Section 19(h), during the term of the Participant's employment and for a period of two (2) years following the termination of employment, regardless of the

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reason for or the manner of termination, the Participant shall not, either directly or indirectly, on the Participant's own behalf or on behalf of any other person, firm or company or other entity, solicit, interfere with, entice or endeavor to entice away from the Corporation or any Affiliate any Restricted Customer (as defined below), or seek to conduct Restricted Business (as defined below), or conduct Restricted Business, with any Restricted Customer and/or otherwise persuade, induce, solicit or encourage any person or entity to terminate its contractual relationship with the Corporation or any Affiliate. "Restricted Business," for purposes of this Section 19, means any business activity carried out by the Participant for the Corporation or any Affiliate during the last two (2) years preceding the Participant's termination date. "Restricted Customer," for purposes of this Section 19, means any person, firm or company or other entity who was a customer or distributor of the Corporation or any Affiliate as at the Participant's termination date, or during the last two (2) years preceding the Participant's termination date, and (i) with whom the Participant had material contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, or (ii) in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information, including any Prospective Customer. "Prospective Customer," for purposes of this Section 19, means any person, firm or company or other entity with whom the Corporation or any Affiliate was involved in negotiations as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, with a view to dealing with it as a customer and/or to conclude a contractual relationship with such entity, and where such negotiations have involved more than nominal expense or time commitment, and/or with whom the Participant had contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date with a view to dealing with it as a customer of the Corporation or any Affiliate and/or to conclude a contractual relationship with such entity or in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information.

(e)<u>Confidentiality</u>. Subject to Sections 19(f) and 19(h), the Participant acknowledges that the Corporation and its Affiliates continually develop Confidential Information, that the Participant may develop Confidential Information for the Corporation or its Affiliates and that the Participant may learn of Confidential Information during the course of the employment relationship. The Corporation has expended and will continue to expend substantial effort and monies in acquiring knowledge and expertise in developing goodwill in the Business of the Corporation. Participant therefore agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.The Participant will comply with the policies and procedures of the Corporation for protecting Confidential Information and shall not disclose to any person or use, other than as required by applicable law or for the proper performance of the Participant's duties and responsibilities to the Corporation and its Affiliates, any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.The Participant understands that the restrictions set forth in this Section 19(e) shall continue to apply after the employment relationship terminates, regardless of the reason for such termination. The Participant understands and acknowledges that the Participant's obligations under this Award Agreement with regard to any particular Confidential Information shall commence immediately upon the Participant first having access to such Confidential Information and shall continue during and after employment with the Corporation or an Affiliate until such time as such Confidential Information has become public knowledge other than as a result of the Participant's breach of this Award Agreement or breach by those acting in concert with the Participant or on the Participant's behalf, and shall be indefinite where permitted by state and local law, and shall not continue longer than two (2) years where indefinite confidentiality provisions are not permitted. Notwithstanding, the Participant's confidentiality obligations under this Award Agreement with regard to any trade secrets shall continue during and after the Participant 's employment by the Corporation or an Affiliate until such trade secrets are no longer trade secrets under applicable law.

(f)<u>Protected Rights</u>. Notwithstanding any other provision of this Award Agreement, nothing in this Award Agreement shall restrict the Participant's right to (i) report violations of law to law enforcement

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officials; (ii) give truthful testimony under oath in a judicial, administrative, or arbitral proceeding; (iii) file a charge with, make truthful statements to, cooperate with investigations by, or assist others in proceedings before state or federal governmental agencies or any other self-regulatory organization (including the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, the Financial Industry Regulatory Authority, and the U.S. Securities and Exchange Commission); (iv) speak with an attorney representing the Participant; (v) discuss the facts related to any claim of sexual assault or sexual harassment; (vi) engage in whistle-blower activity protected by the Securities Exchange Act of 1934, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or any rules or regulations issued thereunder (including Rule 21F-17); (vii) file or disclose any facts necessary to receive unemployment insurance, Medicaid, or other public benefits to which the Participant may be entitled; (viii) exercise rights under Section 7 of the National Labor Relations Act, including the right to discuss terms and conditions of employment with co-workers and labor unions; or (ix) otherwise disclose information that Participant is legally entitled to disclose pursuant to applicable law, provided that the disclosure does not exceed the extent of disclosure required by law. The Participant shall promptly provide written notice of any such order to an authorized officer of the Corporation or its Affiliates. In addition, pursuant to the Defend Trade Secrets Act of 2016, (i) the Participant shall not be held criminally, or civilly, liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence either directly or indirectly to a federal, state, or local government official, or an attorney, for the sole purpose of reporting, or investigating, a violation of law; (ii) the Participant agrees and understands that individuals may disclose trade secrets in a complaint, or other document, filed in a lawsuit, or other proceeding, if such filing is made under seal; and (iii) the Participant agrees and understands that an individual who files a lawsuit alleging retaliation by the Corporation or its Affiliates for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. For the avoidance of doubt, the Participant's past, present or future exercise of any rights described in this Section 19(f) shall not constitute a breach of this Award Agreement.

(g)<u>Business Ideas</u>. Subject to Section 19(h), the Participant acknowledges that the Corporation owns all rights in all Business Ideas (as defined below). For the avoidance of doubt, in the event an assignment is needed during the term of the Participant's employment with the Corporation or any Affiliate and at any time following the termination of employment, the Participant hereby assigns without further action being required to the Corporation all Business Ideas. The Participant shall promptly execute all documents which the Corporation may reasonably require to perfect, maintain and protect its patent, copyright, trade secret, trademark and any and all other rights to such Business Ideas throughout the world, and shall provide other reasonable assistance and cooperation as may be necessary for the Corporation to investigate, perfect, maintain and protect those rights, including assistance and cooperation with litigation relating to any Business Ideas. Even after the Participant's employment with the Corporation or any Affiliate terminates, the Participant will continue to be reasonably available to assist the Corporation with its efforts to investigate, perfect, maintain and protect rights in any Business Ideas, including assistance with litigation relating to any Business Ideas. "Business Ideas" as used in this Award Agreement means all ideas, concepts, innovations, inventions, strategy, data, developments, and works of authorship, whether or not patentable, both technical and business, which the Participant originates, conceives or develops, either alone or in conjunction with others, at any time during the Participant's employment with the Corporation or any Affiliate, except those which satisfy all three of the following criteria: (i) unrelated to the Corporation's business; (ii) not originated, conceived or developed during the Participant's working hours; and (iii) not originated, conceived or developed by use of any Corporation property such as tools, supplies, equipment, materials, facilities or other Corporation employees. Any idea, concept, innovation, invention, strategy, data, development or work of authorship that the Participant originates, conceives or develops, through the use of Corporation Confidential Information, at any time within six (6) months after the Participant's employment with the Corporation or any Affiliate terminates (for any reason) will be presumed to be a Business Idea unless the Participant can prove otherwise by clear and convincing evidence.

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(h)<u>State-Specific Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.If the Participant lives or works in **California** at the time of or after termination of employment, (A) Section 19(b), Section 19(c), and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends, and (B) the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of California for any dispute arising under this Agreement and that this Agreement shall be governed by California law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.If the Participant primarily lives or works in **Colorado** at the time of termination of employment, the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of Colorado for any dispute arising under Section 19(b) or Section 19(d) and that those Sections shall be governed by Colorado law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.If the Participant's principal place of employment is **Minnesota**, Section 19(b) does not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.If the Participant's principal place of employment is **North Dakota**, Section 19(b) and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.If the Participant's principal place of employment is **Oklahoma**, Section 19(b) and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.If the Participant's principal place of employment is **Washington**, the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of Washington for any dispute arising under Section 19(b) and that Section 19(b) shall be governed by Washington law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii.If the Participant's principal place of employment is a state listed the United States sub-section of ***Appendix A***, then the applicable provision(s) in ***Appendix A*** shall also apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii.This Award Agreement shall not require the Participant to assign the Participant's rights in any invention that qualifies fully for the protection of a state law applicable to the Participant that governs assignment of inventions, such as California Labor Code § 2870, which provides:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable*.

(i)<u>Notification Requirement</u>. During the term of the Participant's employment with the Corporation or any Affiliate and for the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, regardless of the reason for or the manner of termination, the Participant agrees to notify the Corporation in writing prior to accepting new employment, or engaging in any other activity which may violate this Award Agreement, and the Participant agrees to provide in such notice information concerning the anticipated new employment or activity, including, but not limited to: name of new employer; address of new employer; name of new team leader; job title; and scope and responsibilities of the new position. The Participant recognizes that such duty of notification is not affected by the Participant's belief that such employment may perhaps not violate this Award Agreement or otherwise be unfairly competitive with the Corporation or an Affiliate. The Participant's written notice

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should be addressed to the Corporation's General Counsel with subject line Non-Competition Agreement, via email to <u>Noncompete.Notification@kcc.com</u>.

(j)<u>Other Notification</u>. During the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant shall provide a copy of Section 19 of this Award Agreement to each new employer before starting in any new employment. The Participant agrees that the Corporation may notify any third party about the Participant's obligations under Section 19 of this Award Agreement until such obligations are fulfilled.

(k)<u>Damages and Remedies</u>. In the event of an anticipated, threatened, or actual breach by the Participant of any of the provisions of this Section 19(k), the Corporation and its Affiliates shall be entitled to all damages available as a matter of law. The Participant acknowledges and agrees that any damages would not be an adequate remedy to compensate the Corporation or an Affiliate for the harm to the business of the Corporation or the Affiliate and, in such event, agrees that the Corporation or the Affiliate, as applicable, shall be entitled to a temporary restraining order and to injunctive relief to prevent or terminate such anticipated or actual breach, provided, however, that nothing in this Award Agreement shall be construed to limit any additional relief to which the Corporation or the Affiliate may be entitled or the damages otherwise recoverable by the Corporation or the Affiliate in any such event.

(l)<u>Forfeiture of Award</u>. Notwithstanding the Corporation's or an Affiliate's ability to pursue injunctive relief pursuant to Section 19(k), in the event of an actual breach by the Participant of any of the provisions of this Section 19 or of any stand-alone restrictive covenant agreement, the Corporation also is entitled to: (i) require the Participant to repay to the Corporation, immediately upon demand, an amount equal to the value of the shares of Common Stock issued on settlement of the PRSUs (less $1,000); and/or (ii) forfeit any portion of the Award that has not vested or been settled yet at the time the Corporation becomes aware of the breach.

(m)<u>Reimbursement of Fees</u>. If the Participant violates any of the provisions of this Section 19, or any duty of loyalty or confidentiality imposed by law, in addition to any damages that the Participant may be required to pay, the Participant understands and agrees that the Participant shall be required to reimburse the Corporation for all its costs incurred to enforce this Award Agreement, including but not limited to, all attorneys' fees.

(n)<u>Successors and Beneficiaries</u>. For purposes of this Section 19, the Corporation and each of its Affiliates shall be deemed to be third-party beneficiaries with the right to seek enforcement of any of the provisions of this Section 19. Further, for purposes of this Section 19, references to acting directly or indirectly include acting jointly with or through another person.

(o)<u>Prior Restrictive Covenants</u>. Participant acknowledges and agrees that Participant is not a party to any agreement with any other company containing a confidentiality or noncompetition provision or other restriction that relates to the Business of the Corporation which Participant has not already disclosed to the Corporation or its Affiliates in writing. Participant understands that Participant is prohibited from disclosing or using during Participant's employment with the Corporation any confidential information or trade secrets that Participant acquired from any previous employer.

(p)<u>Severability and Reformation</u>. If any provision of this Section 19 is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such provision shall be deemed to be severed from the Award Agreement and such invalidity, illegality or unenforceability will not affect any other provision of the Award Agreement, all of which shall remain valid and enforceable. Notwithstanding the foregoing, if a court of competent jurisdiction determines that the covenants contained in this Section 19 are unenforceable because they are overbroad in some respect, to the full extent permitted by applicable law, the court should sever, revise or reform any aspect of this Section 19 so as to make the scope of such Section 19 as broad as reasonable under applicable law and enforce this Section 19 as so modified. Without limiting the foregoing, if a court, government agency or other body of competent jurisdiction establishes or the Corporation otherwise determines that the covenants contained in this Award Agreement are unenforceable and/or in violation of applicable rules, the Corporation reserves the right to unilaterally amend the Award Agreement so as to comply with applicable rules.

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(q)<u>Advice to Seek Independent Counsel</u>. The Participant is hereby advised in writing to consult with an attorney before entering into the covenants outlined in this Section 19. The Participant acknowledges that prior to acceptance of this Award Agreement, the Participant has been advised by the Corporation of the Participant's right to seek independent advice from an attorney of the Participant's own selection regarding this Award Agreement, including the restraints imposed upon the Participant pursuant to this Section 19. The Participant acknowledges that the Participant has entered into this Award Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Award Agreement after being given the opportunity to consult with counsel. The Participant further represents that in entering into this Award Agreement, the Participant is not relying on any statements or representations made by any of the Corporations' directors, officers, employees or agents which are not expressly set forth herein, and that the Participant is relying only upon the Participant's own judgment and any advice provided by the Participant's attorney. The Participant acknowledges he or she has been provided at minimum 14 calendar days to review the provisions contained herein.

(r)<u>Tolling</u>. Subject to Section 19(h), if the Participant violates any of the restrictions of this Section 19, the period for all such restrictions shall automatically be extended by the period the Participant was in violation of them.

(s)<u>Acknowledgments</u>. The Participant acknowledges and agrees that employment with the Corporation or any Affiliate affords the Participant unique opportunities for professional and personal development; that the services rendered by the Participant to the Corporation or any Affiliate are of a special and unique character; that the Participant will obtain knowledge and skill relevant to the Corporation's industry, methods of doing business, and strategies by virtue of the Participant's employment; that the Participant may be able to utilize such knowledge to the detriment of the Corporation and its Affiliates; and that the terms and conditions of this Section 19 are reasonable under the circumstances. The Participant further acknowledges that the Participant will not be subject to undue hardship by reason of the Participant's full compliance with the terms and conditions of this Section 19 or the Corporation's or its Affiliate's enforcement thereof.

20.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants For Participants Outside the U.S</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application</u>. The provisions of this Section 20 apply to Participants who are employed by an Affiliate located outside the United States and are subject to the laws of a jurisdiction outside of the United States as of the date of termination of the Participant's employment, provided, however, that to the extent the Participant is party to an employment or other agreement with any Affiliate containing non-competition, non-solicitation, confidentiality, business ideas or similar restrictions (the "local restrictive covenants"), whether or not such local restrictive covenants have been agreed to before or after execution of this Award Agreement, those local restrictive covenants and related enforcement provisions shall apply and the following provisions of this Section 20 shall also apply, unless otherwise determined by the Corporation in its sole discretion. Notwithstanding the foregoing, Section 20(j) below shall apply in any case.

(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>. During the Participant's employment with the Corporation or any Affiliate and indefinitely thereafter, the Participant undertakes to maintain the confidentiality of, and not to divulge to any person (except as required by law) any of the Corporation's or any Affiliate's Confidential Information (as defined below), nor use the same for any other purpose, other than to carry out the Participant's functions as an employee of the Corporation or any of its Affiliates. The Participant shall use all personal endeavors to prevent publication or disclosure of such Confidential Information. The Participant will comply with the policies and procedures of the Corporation for protecting Confidential Information and shall not disclose to any person or use, other than as required by applicable law or for the proper performance of the Participant's duties and responsibilities to the Corporation and its Affiliates, any Confidential Information. Nothing in this Award Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order, including initiating, testifying, assisting, complying with a subpoena from, or participating in any manner with an investigation conducted by a local agency, filing or disclosing any facts necessary to receive

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(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Competition</u>. It is acknowledged that the Participant has acquired or will acquire Confidential Information during the Participant's employment with the Corporation or any Affiliate, and should the Participant's employment cease, the Participant will inevitably use or disclose the Corporation's or an Affiliate's Confidential Information while working in a competitive role. It is further acknowledged that it may be difficult to police Section 20(b) above, prohibiting the disclosure of such Confidential Information as well as the non-solicitation sub-sections set out below. For these reasons, during the term of the Participant's employment and for the applicable period listed in Appendix B of this Award Agreement following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, in any country or countries for which Participant had development, marketing, innovation/technology (R&D), distribution, sales, administrative, operational/supply chain, manufacturing oversight, or other responsibilities during the last two (2) years of Participant's employment or was provided with regular and material access to Confidential Information regarding the Corporation's or an Affiliate's business operations in that country or countries during the last two (2) years of Participant's employment, either directly or indirectly, perform duties or undertake responsibilities (including without limitation as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, officer, volunteer, intern, or any other similar capacity) for a Competitor that are the same or substantially similar to those duties or responsibilities that the Participant performed or undertook for the Corporation or an Affiliate during the two (2) year period prior to the end of the Participant's employment with the Corporation or an Affiliate.

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(d) &nbsp;&nbsp;&nbsp;&nbsp;<u>Business Ideas</u>. The Participant acknowledges that the Corporation owns all rights in all Business Ideas (as defined below). For the avoidance of doubt, in the event an assignment is needed during the term of the Participant's employment with the Corporation or any Affiliate and at any time following the termination of employment, the Participant hereby assigns without further action being required to the Employer all Business Ideas. The Participant shall promptly execute all documents which the Corporation may reasonably require to perfect, maintain and protect its patent, copyright, trade secret, trademark and any and all other rights to such Business Ideas throughout the world, and shall provide other reasonable assistance and cooperation as may be necessary for the Corporation or the Employer to investigate, perfect, maintain and protect those rights, including assistance and cooperation with litigation relating to any Business Ideas. Even after the Participant's employment with the Corporation or any Affiliate terminates, the Participant will continue to be reasonably available to assist the Corporation or the Employer with its efforts to investigate, perfect, maintain and protect rights in any Business Ideas, including assistance with litigation relating to any Business Ideas. "Business Ideas" as used in this Award Agreement means all ideas, concepts, innovations, inventions, strategy, data, developments, and works of authorship, whether or not patentable, both technical and business, which the Participant originates, conceives or develops, either alone or in conjunction with others, at any time during the Participant's employment with the Corporation or any Affiliate, except those which satisfy all three of the following criteria: (i) unrelated to the Corporation's business; (ii) not originated, conceived or developed during the Participant's working hours; and (iii) not originated, conceived or developed by use of any Corporation property such as tools, supplies, equipment, materials, facilities or other Corporation employees. Any idea, concept, innovation, invention, strategy, data, development or work of authorship that the Participant originates, conceives or develops, through the use of Corporation Confidential Information, at any time within six (6) months after the Participant's employment with the Corporation or any Affiliate terminates (for any reason) will be presumed to be a Business Idea unless the Participant can prove otherwise by clear and convincing evidence.

(e) &nbsp;&nbsp;&nbsp;&nbsp;<u>Notification Requirement</u>. During the term of the Participant's employment with the Corporation or any Affiliate and for the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant agrees to notify the Corporation in writing prior to accepting new employment, or engaging in any other activity which may violate this Award Agreement, and the Participant agrees to provide in such notice information concerning the anticipated new employment or activity, including, but not limited to: name of new employer; address of new employer; name of new team leader; job title; and scope and responsibilities of the new position. The Participant recognizes that such duty of notification is not affected by the Participant's belief that such employment may perhaps not violate this Award Agreement or otherwise be unfairly competitive with the Corporation or an Affiliate. The Participant's written notice should be addressed to the Corporation's General Counsel with subject line Non-Competition Agreement, via email to <u>Noncompete.Notification@kcc.com</u>.

(f) &nbsp;&nbsp;&nbsp;&nbsp;<u>Other Notification</u>. During the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant shall provide a copy of Section 20 of this Award Agreement to each new employer before starting in any new employment. The Participant agrees that the Corporation may notify any third party about the Participant's obligations under Section 20 of this Award Agreement until such obligations are fulfilled.

(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation of Business</u>. During the term of the Participant's employment and for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, either directly or indirectly, on the Participant's own behalf or on behalf of any other person, firm or company or other entity, solicit, interfere with, entice or endeavor to entice away from the Corporation or any Affiliate any Restricted Customer (as defined below), or seek to conduct Restricted Business (as defined below), or conduct Restricted Business, with any Restricted Customer and/or otherwise persuade, induce, solicit or encourage any person or entity to terminate its contractual relationship with the Corporation or any Affiliate. "Restricted Business," for purposes of this Section 20, means any business activity carried out by the Participant for the Corporation or any Affiliate during the last two (2) years preceding the Participant's termination date. "Restricted Customer," for purposes of this Section 20, means any person, firm or company or other entity who was a customer or distributor of the Corporation or any Affiliate as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, and (i) with whom the Participant had material

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contact at the Participant's termination Date or during the last two (2) years preceding the Participant's termination date, or (ii) in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information, including any Prospective Customer. "Prospective Customer," for purposes of this Section 20, means any person, firm or company or other entity with whom the Corporation or any Affiliate was involved in negotiations as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, with a view to dealing with it as a customer and/or to conclude a contractual relationship with such entity, and where such negotiations have involved more than nominal expense or time commitment, and/or with whom the Participant had contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date with a view to dealing with it as a customer of the Corporation or any Affiliate and/or to conclude a contractual relationship with such entity or in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information.

(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation of Employees</u>. For a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate, or (ii) be otherwise involved in the recruitment of such person, to leave the employment of the Corporation or of any Affiliate. Furthermore, the Participant shall not for a period of two (2) years following the termination date regardless of the reason for or the manner of termination, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor or (ii) be otherwise involved in the recruitment of such person to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor. The Participant must inform the Corporation immediately on becoming aware of any such recruitment.

(i) &nbsp;&nbsp;&nbsp;&nbsp;<u>Damages and Remedies</u>. In the event of an anticipated, threatened, or actual breach by the Participant of any of the provisions of this Section 20, the Corporation and its Affiliates shall be entitled to all damages available as a matter of law. The Participant acknowledges and agrees that any damages would not be an adequate remedy to compensate the Corporation or an Affiliate for the harm to the business of the Corporation or the Affiliate and, in such event, agrees that the Corporation or the Affiliate, as applicable, shall be entitled to a temporary restraining order and to injunctive relief to prevent or terminate such anticipated or actual breach, provided, however, that nothing in this Award Agreement shall be construed to limit any additional relief to which the Corporation or the Affiliate may be entitled or the damages otherwise recoverable by the Corporation or the Affiliate in any such event.

(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture of Award</u>. Notwithstanding the Corporation's or an Affiliate's ability to pursue injunctive relief pursuant to Section 20(i), in the event of an actual breach by the Participant of any of the provisions of this Section 20 or of any local restrictive covenant agreement, the Corporation also is entitled to: (i) require the Participant to repay to the Corporation, immediately upon demand, an amount equal to the value of the shares of Common Stock issued on settlement of the PRSUs (less $1,000); and (ii) forfeit any portion of the Award that has not vested or been settled yet at the time the Corporation becomes aware of the breach.

(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement of Fees</u>. If the Participant violates any of the provisions of this Section 20, or any duty of loyalty or confidentiality imposed by law, in addition to any damages that the Participant may be required to pay, the Participant understands and agrees that the Participant shall be required to reimburse the Corporation for all its costs incurred to enforce this Award Agreement, including but not limited to, all attorneys' fees.

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(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Beneficiaries</u>. For purposes of this Section 20, the Corporation and each of its Affiliates shall be deemed to be third party beneficiaries with the right to seek enforcement of any of the provisions of this Section 20. Further, for purposes of this Section 20, references to acting directly or indirectly include acting jointly with or through another person.

(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Prior Restrictive Covenants</u>. Participant acknowledges and agrees that Participant is not a party to any agreement with any other company containing a confidentiality or noncompetition provision or other restriction that relates to the Business of the Corporation which Participant has not already disclosed to the Corporation or its Affiliates in writing. Participant understands that Participant is prohibited from disclosing or using during Participant's employment with the Corporation any confidential information or trade secrets that Participant acquired from any previous employer.

(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability and Reformation</u>. If any provision of this Section 20 is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such provision shall be deemed to be severed from the Award Agreement and such invalidity, illegality or unenforceability will not affect any other provision of the Award Agreement, all of which shall remain valid and enforceable. Notwithstanding the foregoing, if a court of competent jurisdiction determines that the covenants contained in this Section 20 are unenforceable because they are overbroad in some respect, to the full extent permitted by applicable law, the court should sever, revise or reform any aspect of this Section 20 so as to make the scope of such Section 20 as broad as reasonable under applicable law and enforce this Section 20 as so modified. Without limiting the foregoing, if a court, government agency or other body of competent jurisdiction establishes or the Corporation otherwise determines that the covenants contained in this Award Agreement are unenforceable and/or in violation of applicable rules, the Corporation reserves the right to unilaterally amend the Award Agreement so as to comply with applicable rules.

(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tolling</u>. If the Participant violates any of the restrictions of this Section 20, the period for all such restrictions shall automatically be extended by the period the Participant was in violation of them.

(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgments</u>. The Participant acknowledges and agrees that employment with the Corporation or any Affiliate affords the Participant unique opportunities for professional and personal development; that the services rendered by the Participant to the Corporation or any Affiliate are of a special and unique character; that the Participant will obtain knowledge and skill relevant to the Corporation's industry, methods of doing business, and strategies by virtue of the Participant's employment; that the Participant may be able to utilize such knowledge to the detriment of the Corporation and its Affiliates; and that the terms and conditions of this Section 20 are reasonable under the circumstances. The Participant further acknowledges that the Participant will not be subject to undue hardship by reason of the Participant's full compliance with the terms and conditions of this Section 20 or the Corporation's or its Affiliates' enforcement thereof.

(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Advice to Seek Independent Counsel</u>. The Participant is hereby advised in writing to consult with an attorney before entering into the covenants outlined in this Section 20. The Participant acknowledges that prior to acceptance of this Award Agreement, the Participant has been advised by the Corporation of the Participant's right to seek independent advice from an attorney of the Participant's own selection regarding this Award Agreement, including the restraints imposed upon the Participant pursuant to this Section 20. The Participant acknowledges that the Participant has entered into this Award Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Award Agreement after being given the opportunity to consult with counsel. The Participant further represents that in entering into this Award Agreement, the Participant is not relying on any statements or representations made by any of the Corporations' directors, officers, employees or agents which are not expressly set forth herein, and that the Participant is relying only upon the Participant's own judgment and any advice provided by the Participant's attorney.

21.&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture and Recoupment</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;The PRSUs are subject to the compensation recovery provisions of the Plan. In addition, the PRSUs are subject to the Kimberly-Clark Corporation Compensation Recoupment Policy (such policy, as it may be amended from time to time, the "Recoupment Policy") if the Participant is a Leader (as

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defined in the Recoupment Policy). The PRSUs are also subject to the Kimberly-Clark Corporation Executive Officer Incentive Compensation Recovery Policy (such policy, as it may be amended from time to time, the "Recovery Policy") if the Participant is a Covered Person (as defined in the Recovery Policy). The PRSUs are also subject to forfeiture and/or recoupment pursuant to Sections 19(l) and 20(j) herein. A recovery under this Award Agreement may be made by (i) cancelling any PRSUs which have not yet vested or been settled; (ii) recovering shares of Common Stock or cash equal to the value of the shares of Common Stock issued on settlement of the PRSUs, including shares resulting from dividend equivalents; (iii) recovering proceeds realized by the Participant on the sale of such Common Stock; (iv) withholding compensation otherwise due to the Participant; (v) payment by the Participant; and/or (vi) by such other means determined appropriate under the terms of the Recoupment Policy and/or the Recovery Policy. If the Participant is required to repay the Corporation, the Corporation is entitled to offset the payment in a way that is intended to avoid the application of penalties under Section 409A of the Code, if applicable.

Without limiting the foregoing, if, following a Participant's termination of employment for a reason other than the Participant's termination for Cause, the Corporation discovers facts that such Participant's termination of employment could have been for Cause, such Participant's termination of employment will be deemed to have been for Cause for all purposes, and as a result, (i) the Corporation will not issue shares of Common Stock or any other benefit otherwise payable to the Participant under the Plan and (ii) the Participant will be required to repay to the Corporation all proceeds received under the Plan that would not have been payable to such Participant had such termination of employment been for Cause.

The Corporation shall have the right to suspend any and all rights or benefits awarded to the Participant hereunder, including vesting and settlement of the PRSUs, pending its investigation and final determination with regard to whether the Participant has engaged in conduct constituting Cause or that would warrant application of the Recoupment Policy or Recovery Policy.

(b)&nbsp;&nbsp;&nbsp;&nbsp;By accepting the Award Grant and the terms of this Award Agreement, the Participant understands, acknowledges and accepts that the grant, shares of Common Stock issued under the Plan and proceeds realized by the Participant pursuant to the Plan are subject to the terms of the Recoupment Policy and the Recovery Policy, which the Participant has reviewed and understands, and the Corporation may seek recovery by any of the methods described in Section 21(a) or other such means determined appropriate under the terms of the Recoupment Policy and/or the Recovery Policy.

22.&nbsp;&nbsp;&nbsp;&nbsp;<u>Whistleblower Statutes</u>. Notwithstanding anything to the contrary in this Award Agreement, nothing in Sections 19, 20 or 21 of this Award Agreement is intended to or shall limit, prevent, impede or interfere with the Participant's non-waivable right, without prior notice to the Corporation, to provide information to the government, participate in investigations, testify in proceedings regarding the Corporation, Employer or any Affiliate's past or future conduct, engage in any activities protected under whistleblower statutes, or to receive and fully retain a monetary award from a government-administered whistleblower award program for providing information directly to a government agency. The Participant does not need prior authorization from the Corporation to make any such reports or disclosures and is not required to notify the Corporation that the Participant has made such reports or disclosures.

23.&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 409A</u>. It is the intent of this Award Agreement that it and all payments and benefits hereunder be exempt from, or comply with, the requirements of Section 409A of the Code so that none of the PRSUs provided under this Award Agreement or shares of Common Stock issuable thereunder will be subject to the additional tax imposed under Section 409A of the Code, and any ambiguities herein will be interpreted to be so exempt or so comply.

24.&nbsp;&nbsp;&nbsp;&nbsp;<u>Acceptance of Award Terms and Conditions</u>. A Participant has until the end of the ninety (90) day period beginning from the Grant Date of this Award to accept this Award Agreement. If the Participant does not accept this Award Agreement on or before the end of such ninety (90) day period then the grant of the Award, as set forth in Section 1, shall not be binding on and shall be voidable by the Corporation, in which case it shall have no further force or effect.

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**Acknowledgment of Conditions**

The Participant understands, acknowledges and agrees to the following conditions with respect to the Award granted under the Plan:

The Plan is established voluntarily by the Corporation, is discretionary in nature and may be modified, amended, suspended, cancelled or terminated at any time, to the extent permitted by the Plan. The grant of an Award is an exceptional, voluntary and occasional benefit and does not create any contractual or other right to receive an Award or benefits in lieu of an Award in the future, even if Awards have been granted in the past. Future grants, if any, will be at the sole discretion of the Corporation, including, but not limited to, the timing of any grant, the number of Awards and vesting provisions.

Participation in the Plan is voluntary and does not create a right to employment with the Participant's Employer, shall not be interpreted as forming an employment or service contract with the Corporation, and shall not interfere with the ability of the Employer to terminate the Participant's employment relationship at any time. The Participant understands that the Corporation has unilaterally, gratuitously and discretionally decided to grant Awards under the Plan to individuals who are employees of the Corporation or its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Corporation or any of its Affiliates on an ongoing basis. Consequently, the Participant understands that any grant is given on the assumption and condition that it shall not become a part of any employment contract (either with the Corporation or any of its Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further, the Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of the Award and the underlying shares is unknown and unpredictable. In addition, the Participant understands that this grant would not be made but for the assumptions and conditions referred to above; thus, the Participant understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the Award shall be null and void.

The Award and the shares of Common Stock subject to the Award, and the income from and value of same, are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Corporation or, if different, the Employer, and which are outside the scope of the Participant's employment contract, if any, and are not intended to replace any pension rights or compensation. As such, the Award, and the income from and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, leave-related payments, holiday pay, pension, retirement or welfare benefits or similar payments and in no event shall be considered as compensation for, or relating in any way to, past services for the Corporation, the Employer or any other Affiliate.

Unless otherwise agreed with the Corporation, the Award and shares of Common Stock subject to the Award, and the income from and value of same, are not granted as consideration for, or in connection with, any service the Participant may provide as a director of any Affiliate.

The future value of the underlying shares of Common Stock is unknown, indeterminable, and cannot be predicted with certainty.

The Award will be subject to any policy adopted by the Corporation relating to the recovery of such Award to the extent it is determined that the Performance Goals were not actually achieved.

No claim or entitlement to compensation or damages shall arise from forfeiture of the Award or recoupment of any shares of Common Stock acquired under the Plan resulting from (a) the termination of the Participant's employment by the Corporation or the Employer (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws); and/or (b) an actual breach by the Participant of Section 19, Section 20, any stand-alone restrictive covenant agreement, or any local restrictive covenant agreement; and/or (c) the application of

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the Corporation's Recoupment Policy, Recovery Policy, or any recovery or clawback policy required by law.

The Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding participation in the Plan, or the acquisition or sale of the underlying shares of Common Stock. Further, the Participant understands that he or she should consult with his or her own advisors regarding participation in the Plan before taking any action related to the Plan.

Neither the Corporation, the Employer nor any other Affiliate shall be liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of the PRSUs or of any amounts due to the Participant pursuant to the settlement of the PRSUs or the subsequent sale of any shares of Common Stock acquired upon settlement.

Regardless of any action the Corporation or the Employer takes with respect to any or all income tax (including federal, state and local taxes), social insurance, fringe benefit tax, payroll tax, payment on account or other tax-related items related to the Participant's participation in the Plan and legally applicable to the Participant ("Tax-Related Items"), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant's responsibility and may exceed the amount, if any, actually withheld by the Corporation or the Employer. The Participant further acknowledges that the Corporation and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant of the PRSUs, the vesting of PRSUs, the conversion of the PRSUs into shares or the receipt of an equivalent cash payment, the subsequent sale of any shares acquired at vesting and the receipt of any dividends or dividend equivalents; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant is subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Corporation and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

In connection with the relevant taxable or tax withholding event, as applicable, the Participant shall pay or make adequate arrangements satisfactory to the Corporation and/or the Employer to satisfy or account for all applicable withholding obligations for Tax-Related Items. In this regard, the Participant authorizes the Corporation or the Employer, or their respective agents, at their discretion, to satisfy their withholding obligations, if any, with regard to all Tax-Related Items by one or a combination of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;withholding from the Participant's wages or other cash compensation paid to the Participant by the Corporation and/or the Employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;withholding from the proceeds of the sale of shares acquired upon vesting of the Award either through a voluntary sale or through a mandatory sale arranged by the Corporation (on the Participant's behalf, pursuant to this authorization); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;withholding shares to be issued upon vesting of the Award;

provided, however, that if the Participant is subject to Section 16 of the U.S. Securities Exchange Act of 1934, as amended, then the Corporation will withhold in shares upon the relevant taxable or tax withholding event, as applicable, unless the use of such withholding method is not feasible under applicable tax or law or has materially adverse accounting consequences, in which case, the obligation for Tax-Related Items may be satisfied by one or a combination of methods (1), (2) and (3) above.

The Corporation may withhold or account for Tax-Related Items by considering applicable statutory withholding amounts or other applicable withholding rates, including minimum rates or maximum applicable rates in applicable jurisdictions. In the event of over-withholding, the Participant may receive a refund of any over-withheld amount in cash (with no entitlement to the common stock equivalent), or if not refunded, the Participant may seek a refund from the applicable tax authorities. In the event of under-withholding, the Participant may be required to pay additional Tax-Related Items directly to the applicable tax authorities or to the Corporation or the Employer. If the obligation for Tax-Related Items is satisfied by withholding in shares, for tax purposes, the Participant is deemed to have been issued the

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full number of shares subject to the Award, notwithstanding that a number of shares is held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Participant's participation in the Plan.

The Participant shall pay to the Corporation or to the Employer any amount of Tax-Related Items that the Corporation or the Employer may be required to withhold or account for as a result of the Participant's participation in the Plan that cannot be satisfied by the means previously described. The Corporation may refuse to deliver shares or the proceeds of the sale of shares to the Participant if he or she fails to comply with his or her obligations in connection with the Tax-Related Items.

The Corporation is located at 351 Phelps Drive Irving, TX 75038, USA and grants employees of the Corporation and its Affiliates the opportunity to participate in the Plan, at the Corporation's sole discretion. If the Participant would like to participate in the Plan and is an employee in a country outside the European Economic Area, the Participant understands that he or she should review the following information about the Corporation's data processing practices and declare his or her consent. If the Participant is an employee in a country that is a member of the European Economic Area, the Participant should review the information about the Corporation's data processing practices set forth in Appendix A attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)*Data Collection and Usage. The Corporation collects, processes and uses the Participant's personal data, including, name, home address, email address and telephone number, date of birth, social insurance number, passport or other identification number, salary, citizenship, nationality, job title, any shares of stock or directorships held in the Corporation, and details of all awards, canceled, vested, or outstanding in the Participant's favor, which the Corporation receives from the Participant or the Participant's Employer. If the Corporation offers the Participant the opportunity to participate in the Plan, then the Corporation will collect the Participant's personal data for purposes of allocating stock and implementing, administering and managing the Plan. The Corporation's legal basis for the processing of the Participant's personal data would be the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)*Stock Plan Administration Service Providers. The Corporation transfers participant data to Merrill Lynch, an independent service provider based in the United States, which assists the Corporation with the implementation, administration and management of the Plan. In the future, the Corporation may select a different service provider and share the Participant's data with another company that serves in a similar manner. The Corporation's service provider will open an account for the Participant. The Participant will be asked to agree on separate terms and data processing practices with the service provider, which is a condition for participation in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)*International Data Transfers. The Corporation and its service providers are based in the United States. If the Participant is outside of the United States, the Participant should note that his or her country may have enacted data privacy laws that are different from the United States. The Corporation's legal basis for the transfer of the Participant's personal data is the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)*Data Retention. The Corporation will use the Participant's personal data only as long as is necessary to implement, administer and manage his or her participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws. This period may extend until the Participant's employment or service with the Corporation is terminated, plus any additional time periods necessary for compliance with law, exercise or defense of legal rights, and archiving, back-up and deletion processes.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)*Voluntariness and Consequences of Consent Denial or Withdrawal. The Participant's participation in the Plan and the Participant's grant of consent is purely voluntary. The Participant may deny or withdraw his or her consent at any time. If the Participant does not consent, or if he or she withdraws their consent, the Participant cannot participate in***

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***the Plan. This would not affect the Participant's salary as an employee; the Participant would merely forfeit the opportunities associated with the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)*Data Subject Rights. The Participant has a number of rights under data privacy laws in his or her country. Depending on where the Participant is based, the Participant's rights may include the right to (i) request access or copies of personal data the Corporation processes, (ii) rectification of incorrect data, (iii) deletion of data, (iv) restrictions on processing, (v) portability of data, (vi) to lodge complaints with competent authorities in the Participant's country, and/or (vii) a list with the names and addresses of any potential recipients of the Participant's personal data. To receive clarification regarding the Participant's rights or to exercise the rights please contact the Corporation at Attn: Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA.***

The Participant also understands that the Corporation may rely on a different legal basis for the processing or transfer of data in the future and/or request that the Participant provides another data privacy consent. If applicable and upon request of the Corporation, the Participant agrees to provide an executed acknowledgment or data privacy consent form to the Corporation or the Employer (or any other acknowledgments, agreements or consents) that the Corporation and/or the Employer may deem necessary to obtain under the data privacy laws in the Participant's country, either now or in the future. The Participant understands that he or she will not be able to participate in the Plan if the Participant fails to execute any such acknowledgment, agreement or consent requested by the Corporation and/or the Employer.

If the Participant agrees with the data processing practices described in this notice, the Participant will declare his or her consent by clicking the "Accept" icon on the Merrill Lynch website.

The Participant understands that he or she is solely responsible for obtaining/providing whatever exchange control approvals, permits, licenses or notices, which may be necessary for the Award, to acquire the shares or to hold or sell the shares subject to the Award. Neither the Corporation nor its Affiliates will be responsible for obtaining such approvals, licenses or permits, or for making any such notices, nor will the Corporation or its Affiliates be liable for any fines or penalties the Participant may incur for failure to obtain any required approvals, permits or licenses or to make any required notices.

In accepting the grant of this Award, the Participant acknowledges that he or she has received a copy of the Plan and the Award Agreement and has reviewed the Plan and the Award Agreement, including Appendix A and Appendix B, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including Appendix A and Appendix B.

The Participant acknowledges that he or she has read and specifically and expressly approves the following sections of the Award Agreement: Section 2(g) on Payment of Tax-Related Items; Section 5 on No Right of Continued Employment; Section 8 on Governing Law and Consent to Jurisdiction; the section on Acknowledgment of Conditions; and the Data Privacy Notice sections of both the Award Agreement and Appendix A for the Participant's country.

Subject to Sections 19(p) and 20(n), the provisions of this Award Agreement are severable and if one or more of the provisions of this Award Agreement shall be held invalid, illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nonetheless be binding and enforceable. To the extent that any provisions of this Award Agreement are held to be invalid or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so as to foster the intent of this Award Agreement and the Plan.

The Participant acknowledges that he or she is sufficiently proficient in English, or has consulted with an advisor who is sufficiently proficient in English, so as to allow the Participant to understand the terms and conditions of this Award Agreement. Furthermore, if the Participant has received this Award Agreement or any other document related to the Plan translated into a language other than English and

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if the meaning of the translated version is different than the English version, the English version will control.

Notwithstanding any provisions in this Award Agreement, the Award shall be subject to any additional terms and conditions set forth in Appendix A to this Award Agreement for the Participant's country. Moreover, if the Participant relocates to any of the countries included in Appendix A, the additional terms and conditions for such country will apply to the Participant, to the extent the Corporation determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Appendix A and Appendix B constitute part of this Award Agreement.

The Participant acknowledges that the grant of an Award is expressly conditioned on the restrictive covenants set forth in Sections 19 and 20.

The Corporation reserves the right to impose other requirements on the Participant's participation in the Plan, on the Award and on any shares acquired under the Plan, to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by on-line delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third-party designated by the Corporation.

A waiver by the Corporation of breach of any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by the Participant or any other participant.

The Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect the Participant's ability to, directly or indirectly, accept, acquire, sell, or attempt to sell or otherwise dispose of shares of Common Stock or rights to shares of Common Stock (*e.g.*, PRSUs), or rights linked to the value of shares of Common Stock during such times as the Participant is considered to have "inside information" regarding the Corporation (as defined by the laws in the applicable jurisdictions or the Participant's country). Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Participant placed before possessing inside information. Furthermore, the Participant may be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a "need to know" basis) and (ii) "tipping" third parties or causing them to otherwise buy or sell Corporation securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Corporation insider trading policy. The Participant is responsible for ensuring his or her compliance with any applicable restrictions and is advised to speak with his or her personal legal advisor on this matter.

The Participant's country may have certain foreign asset and/or foreign account reporting requirements, tax and/or exchange controls which may affect the Participant's ability to acquire or hold shares of Common Stock acquired under the Plan or cash received from participating in the Plan (including from any dividends paid on shares acquired under the Plan) in a brokerage or bank account outside the Participant's country. The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant's country. The Participant also may be required to repatriate sale proceeds or other funds received as a result of participation in the Plan to his or her country through a designated bank or broker within a certain time after receipt. In addition, the Participant agrees to take any and all actions, and consent to any and all actions taken by the Corporation or the Employer as may be required to allow the Corporation or the Employer to comply with local laws, rules and regulations in the Participant's country of residence (and country of employment, if different). Finally, the Participant agrees to take any and all actions as may be required to comply with their personal legal and tax obligations under local laws, rules and regulations in their country of residence (and country of employment, if different). The Participant should consult his or her personal legal advisor for any details.

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The Participant acknowledges that he or she has reviewed the Corporation's Code of Conduct. The Participant further acknowledges that he or she understands and will comply with the terms and standards contained in that Code of Conduct, including but not limited to the prohibition against retaliation, and specifically acknowledges that he or she has an obligation to report suspected violations of the Code of Conduct pursuant to the Corporation's Escalation Policy.

**Conclusion and Acceptance**

The Participant accepts this grant via electronic signature by clicking the "Accept" icon and certifies that he or she has read, understands and agrees to the terms and conditions of the 2021 Equity Participation Plan (the "Plan"), the provisions of the applicable Award Agreement and all other applicable documents (including any country-specific terms applicable to the Participant's grant). The Participant hereby authorizes the Employer to furnish the Corporation (and any agent administering the Plan or providing recordkeeping services) with such information and data as it shall request in order to facilitate the grant of Awards and enable administration of the Plan and the Participant understands that such information shall be used only as long and to the extent necessary to administer the Participant's participation in the Plan. The Participant agrees that his or her participation in the Plan and the Awards granted to the Participant under the Plan will be governed solely by Delaware law.

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**KIMBERLY-CLARK CORPORATION**

**PERFORMANCE RESTRICTED STOCK UNIT**

**AWARD AGREEMENT** 

**APPENDIX A**

Certain capitalized terms used but not defined in this Appendix A have the meanings set forth in the Plan and/or the Award Agreement.

This Appendix A includes additional terms and conditions that govern the Award granted to the Participant under the Plan if the Participant resides and/or works in any of the countries listed below.

This Appendix A also includes information regarding exchange controls and certain other issues of which the Participant should be aware with respect to the Participant's participation in the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of March 2025. Such laws are often complex and change frequently. As a result, the Participant should not rely on the information noted herein as the only source of information relating to the consequences of the Participant's participation in the Plan because the information may be out of date at vesting of the Award or the subsequent sale of the shares or receipt of any dividends or dividend equivalents.

In addition, the information is general in nature and may not apply to the Participant's particular situation, and the Corporation is not in a position to assure the Participant of any particular result. Accordingly, the Participant is advised to seek appropriate professional advice as to how the relevant laws in the Participant's country may apply to the Participant's situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which the Participant is currently residing and/or working, transferred or transfers employment and or residency after the Award is granted or is considered a resident of another country for local law purposes, the information contained herein may not be applicable to the Participant. The Corporation shall, in its sole discretion, determine to what extent the terms and conditions included herein will apply to the Participant in such circumstances.

**EUROPEAN ECONOMIC AREA (INCLUDING THE UNITED KINGDOM) AND SWITZERLAND**

*Data Protection*

For Participants resident in a country in the European Economic Area, Switzerland or the United Kingdom, the following language replaces in its entirety the data privacy section in the Acknowledgment of Conditions section of the Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)***The Participant is hereby notified of the collection, use and transfer outside of the European Economic Area, as described in the Award Agreement, in electronic or other form, of his or her Personal Data (defined below) by and among, as applicable, the Corporation and certain of its Affiliates for the exclusive and legitimate purpose of implementing, administering and managing the Participant's participation in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)***The Participant understands that the Corporation and the Employer hold certain personal information about the Participant, including, but not limited to, the Participant's name, home address and telephone number, email address, date of birth, social insurance number, passport or other identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Corporation, details of all entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Participant's favor ("Personal Data"), for the purpose of implementing, administering and managing the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)***The Participant understands that providing the Corporation with this Personal Data is necessary for the performance of the Award Agreement and that the Participant's refusal to provide the Personal Data would make it impossible for the Corporation to perform its contractual obligations and may affect the Participant's ability to participate in the Plan. The***

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***Participant's Personal Data shall be accessible within the Corporation only by the persons specifically charged with Personal Data processing operations and by the persons that need to access the Personal Data because of their duties and position in relation to the performance of the Award Agreement.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)***The Personal Data will be held only as long as is necessary to implement, administer and manage the Participant's participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws. This period may extend until the Participant's employment or service with the Corporation is terminated, plus any additional time periods necessary for compliance with law, exercise or defense of legal rights, and archiving, back-up and deletion processes. The Participant may, at any time and without cost, contact Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA to enforce his or her rights under the data protection laws in the Participant's country, which may include the right to (i) request access or copies of Personal Data subject to processing; (ii) request rectification of incorrect Personal Data; (iii) request deletion of Personal Data; (iv) request restriction on processing of Personal Data; (v) request portability of Personal Data; (vi) lodge complaints with competent authorities in the Participant's country; and/or (vii) request a list with the names and addresses of any potential recipients of Personal Data.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)***The Corporation provides appropriate safeguards for protecting Personal Data that it receives in the U.S. through its adherence to data transfer agreements entered into between the Corporation and its Affiliates within the European Union.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)***Further, the Participant understands that the Corporation will transfer Personal Data to Merrill Lynch and/or such other third parties as may be selected by the Corporation, which are assisting the Corporation with the implementation, administration and management of the Plan. The Corporation may select a different service provider or additional service providers and share Personal Data with such other provider(s) serving in a similar manner. The Participant may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being a condition to the ability to participate in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)***Merrill Lynch is based in the United States. The Participant's country or jurisdiction may have different data privacy laws and protections than the United States. Notwithstanding, by participating in the Plan, the Participant agrees to the transfer of his or her Personal Data to Merrill Lynch for the exclusive purpose of administering the Participant's participation in the Plan. The Corporation's legal basis, where required, for the transfer of Data to Merrill Lynch is the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)***Finally, the Participant may choose to opt out of allowing the Corporation to share his or her Personal Data with Merrill Lynch and others as described above, although execution of such choice may mean the Corporation cannot grant awards under the Plan to the Participant. For questions about this choice or to make this choice, the Participant should contact Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA.***

**ARGENTINA**

*Securities Law Information*

Neither the PRSUs nor the underlying shares of Common Stock are publicly offered or listed on any stock exchange in Argentina.

*Foreign Asset/Account Reporting Information*

Argentine residents must report any shares of Common Stock acquired under the Plan and held on December 31st of each year on their annual tax return for the year.

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*Exchange* Control *Information*

Please note that exchange control regulations in Argentina are subject to frequent change. The Participant should consult with his or her personal legal advisor regarding any exchange control obligations the Participant may have in connection with the Participant's participation in the Plan. The Participant must comply with any and all Argentine currency exchange restrictions, approvals and reporting requirements in connection with the vesting of the PRSUs, the subsequent sale of any shares acquired at vesting and the receipt of any dividends paid on such shares.

**AUSTRALIA**

*Securities Law Information*

This offer is being made under Division 1A, Part 7.12 of the Australia Corporations Act 2001 (Cth). Please note that if the Participant offers shares of Common Stock for sale to a person or entity resident in Australia, the offer may be subject to disclosure requirements under Australian law. The Participant should obtain legal advice regarding the relevant disclosure obligations prior to making any such offer.

*Tax Information* 

The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) (the "Act") applies (subject to conditions in the Act).

*Compliance with Laws*

Notwithstanding anything else in the Plan or the Award Agreement, the Participant will not be entitled to and shall not claim any benefit under the Plan if the provision of such benefit would give rise to a breach of Part 2D.2 of the Corporations Act 2001 (Cth.) (the "Act"), any other provision of the Act, or any other applicable statute, rule or regulation which limits or restricts the giving of such benefits. Further, the Employer is under no obligation to seek or obtain the approval of its shareholders in a general meeting for the purpose of overcoming any such limitation or restriction.

*Exchange Control Information*

Exchange control reporting is required for cash transactions exceeding AUD10,000 and for international fund transfers. If an Australian bank is assisting with the transaction, the bank will file the report on the Participant's behalf. If there is no Australian bank involved in the transaction, the Participant will be required to file the report him or herself.

**BAHRAIN**

*Securities Law Information*

The Award Agreement, Plan and all other materials the Participant may receive regarding participation in the Plan do not constitute advertising or the offering of securities in Bahrain, nor do they constitute an allotment of securities in Bahrain. Any shares of Common Stock issued upon settlement of the PRSUs will be deposited into a Corporation-designated brokerage account outside Bahrain. In no event will shares of Common Stock be issued or delivered in Bahrain. The issuance of shares of Common Stock pursuant to the PRSUs described herein has not and will not be registered in Bahrain and, hence, the shares of Common Stock described herein may not be admitted or used for offering, placement or public circulation in Bahrain. Accordingly, the Participant may not make any public advertising or announcements regarding the PRSUs or shares of Common Stock in Bahrain, promote these shares of Common Stock to legal entities or individuals in Bahrain, or sell shares of Common Stock directly to other legal entities or individuals in Bahrain. Any disposition or sale of such shares of Common Stock must take place outside Bahrain.

**BELGIUM**

*Foreign Asset/Account Reporting Information*

Belgian residents are required to report any securities (e.g., shares acquired under the Plan) or bank accounts opened and maintained outside Belgium (e.g., any brokerage account opened in connection

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with the Plan) on their annual tax returns. Belgian residents are also required to complete a separate report providing the National Bank of Belgium with details regarding any such account, including the account number, the name of the bank in which such account is held and the country in which such account is located. The forms to complete this report are available on the website of the National Bank of Belgium. Belgian residents should consult with their personal tax advisors to determine their personal reporting obligations.

*Stock Exchange Tax* 

A stock exchange tax applies to transactions executed by a Belgian resident through a non-Belgian financial intermediary, such as a U.S. broker. The Stock Exchange Tax likely will apply when the Participant sells shares of Common Stock. The Participant should consult with his or her personal tax advisor for additional details regarding the Participant's obligations with respect to the Stock Exchange Tax.

*Annual Securities Accounts Tax*

An annual securities accounts tax may be payable if the total value of securities held in a Belgian or foreign securities account (e.g., shares of Common Stock acquired under the Plan) exceeds a certain threshold on four reference dates within the relevant reporting period (i.e.,, December 31, March 31, June 30 and September 30). In such cases, the tax will be due on the value of the qualifying securities held in such account. The Participant should consult with his or her personal tax advisor regarding the application of this tax.

**BOLIVIA**

There are no country-specific provisions.

**BRAZIL**

*Compliance with Law* 

By accepting the Award, the Participant acknowledges that he or she agrees to comply with applicable Brazilian laws and pay any and all applicable Tax-Related Items associated with the vesting of the PRSUs, the conversion of the PRSUs into shares or the receipt of an equivalent cash payment, the receipt of any dividends, and the sale of shares of Common Stock acquired under the Plan.

*Labor Law Acknowledgment*

By accepting the Award, the Participant agrees that (i) the Participant is making an investment decision; (ii) the shares of Common Stock will be issued to Participant only if the vesting and/or performance conditions are met, and (iii) the value of the underlying shares of Common Stock is not fixed and may increase or decrease in value over the Restricted Period without compensation to the Participant.

*Exchange Control Information*

If the Participant is resident or domiciled in Brazil, he or she will be required to submit annually a declaration of assets and rights held outside of Brazil to the Central Bank of Brazil if the aggregate value of such assets and rights is equal to or greater than US$1,000,000. Assets and rights that must be reported include shares of Common Stock and may include PRSUs.

*Tax on Financial Transaction (IOF).* 

Payments to foreign countries and repatriation of funds into Brazil (including proceeds from the sale) and the conversion of USD into BRL associated with such fund transfers may be subject to the Tax on Financial Transactions. It is the Participant's responsibility to comply with any applicable Tax on Financial Transactions arising from the Participant's participation in the Plan. The Participant should consult with his or her personal tax advisor for additional details.

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**CANADA**

*Securities Law Information*

The Participant is permitted to sell shares acquired through the Plan through the designated broker appointed under the Plan, if any, provided the resale of shares acquired under the Plan takes place outside of Canada through the facilities of a stock exchange on which the shares are listed. The Corporation's shares are currently listed on New York Stock Exchange.

*Acknowledgment of Conditions*

The following provision supplements the Acknowledgment of Conditions section of the Award Agreement:

Except as may otherwise be explicitly provided in the Plan or this Award Agreement, for the purposes of this Award Agreement, the Participant's termination of employment will be measured effective as of the date that is the earlier of: (1) the date the Participant's employment is terminated, no matter how the termination arises; and (2) the date the Participant receives notice of termination of employment from the Employer. In either case, the date shall exclude any period during which notice, pay in lieu of notice or related payments or damages are provided or required to be provided under local law. For greater certainty, the Participant will not earn or be entitled to any pro-rated vesting for that portion of time before the date on which the Participant's right to vest terminates, nor will the Participant be entitled to any compensation for lost vesting. Notwithstanding the foregoing, if applicable employment standards legislation explicitly requires continued vesting during a statutory notice period, the Participant's right to vest in the PRSUs, if any, will terminate effective as of the last day of the Participant's minimum statutory notice period, but the Participant will not earn or be entitled to pro-rated vesting if the vesting date falls after the end of the Participant's statutory notice period, nor will the Participant be entitled to any compensation for lost vesting.

The Participant acknowledges and agrees that the vesting schedule may change prospectively in the event the Participant's service status changes between full- and part-time and/or in the event the Participant is on a leave of absence, in accordance with Corporation's policies relating to work schedules and vesting of PRSUs or as determined by the Committee. In case of any dispute as to whether and when a termination of the Participant's employment has occurred, the Committee will have sole discretion to determine whether such termination of the Participant's employment has occurred and the effective date of such termination (including whether the Participant may still be considered to be actively providing services while on a leave of absence).

*Language*

A French translation of the Plan and the Award Agreement can be made available to the Participant as soon as reasonably practicable upon the Participant's request. The Participant understands that, from time to time, additional information related to the offering of the Plan might be provided in English and such information may not be immediately available in French. However, upon request, the Corporation will translate into French documents related to the offering of the Plan as soon as reasonably practicable.

*Une traduction française du Plan et de l'Accord d'Attribution êtremise à la disposition de Participant dès que raisonnablement possible à la demande de l'Participant. Le Participant comprend que, de temps à autre, des informations supplémentaires liées à l'offre du Plan peuvent être fournies en anglais et que ces informations peuvent ne pas être immédiatement disponibles en français. Cependant, sur demande, la Société traduira en français les documents relatifs à l'offre du Plan dès que raisonnablement possible.*

*Authorization to Release and Transfer Necessary Personal Information*

The Participant hereby authorizes the Corporation and the Corporation's representatives, including the broker(s) designated by the Corporation, to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan. The Participant further authorizes the Corporation, any Affiliate and the plan administrators to disclose and discuss the Plan with their advisors. The Participant further authorizes the Corporation and any Affiliate to record such information and to keep such information in the Participant's employee file. The Participant

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acknowledges that the Participant's personal information, including any sensitive personal information, may be transferred or disclosed outside the Province of Quebec, including to the United States. Finally, the Participant acknowledges that the Corporation, the Employer or any other Affiliate or other parties involved in the administration of the Plan use technology for profiling purposes and to make automated decisions that may have an impact on the Participant or the administration of the Plan.

*Foreign Asset/Account Reporting Information*

Foreign specified property (including shares of Common Stock) held by Canadian residents must be reported annually on Form T1135 (Foreign Income Verification Statement) if the total cost of such foreign specified property exceeds C$100,000 at any time during the year. Foreign specified property includes shares of Common Stock acquired under the Plan and may include the PRSUs. The PRSUs must be reported - generally at a nil cost - if the $100,000 cost threshold is exceeded because of other foreign property the Participant holds. If shares of Common Stock are acquired, their cost generally is the adjusted cost base ("ACB") of the shares. The ACB would normally equal the Fair Market Value of the shares at vesting, but if the Participant owns other shares, this ACB may have to be averaged with the ACB of the other shares owned by the Participant. If due, the Form must be filed by April 30 of the following year. The Participant should speak with a personal tax advisor to determine the scope of foreign property that must be considered for purposes of this requirement.

**CHILE**

*Securities Law Information*

The PRSUs are granted and are made subject to general ruling n° 336 of the Chilean Commission for the Financial Market ("CMF"). This offer refers to securities not registered at the securities registry or at the foreign securities registry of the CMF, and therefore such securities are not subject to its oversight. Given that these securities are not registered in Chile, there is no obligation from the issuer to provide public information on them in Chile. These securities cannot be subject to public offering in Chile while they are not registered at the corresponding securities registry in Chile.

***La oferta privada de estos PRSUs se inicia y se acoge a las disposiciones de la norma de carácter general nº 336 de la Comisón para el Mercado Financiero ("CMF"). Esta oferta versa sobre valores no inscritos en el registro de valores o en el registro de valores extranjeros que lleva la CMF, por lo que tales valores no están sujetos a la fiscalización de ésta. Por tratarse de valores no inscritos en Chile, no existe la obligación por parte del emisor de entregar en Chile información pública respecto de los mismos. Estos valores no podrán ser objeto de oferta pública en Chile mientras no sean inscritos en el registro de valores correspondiente.***

*Exchange Control Information*

The Participant is not required to repatriate funds obtained from the sale of shares or the receipt of any dividends. However, if the Participant decides to repatriate such funds, the Participant must do so through the Formal Exchange Market if the amount of the funds exceeds US$10,000. In such case, the Participant must report the payment to a commercial bank or registered foreign exchange office receiving the funds.

*Foreign Asset/Account Reporting Information*

The Chilean Internal Revenue Service (the "CIRS") requires all taxpayers to provide information annually regarding (i) the results of investments held abroad and (ii) any taxes paid abroad which the taxpayers will use as a credit against Chilean income tax. The sworn statements disclosing this information (or Formularios) must be submitted electronically through the CIRS website, <u>www.sii.cl</u>, using Form 1929, which is due on July 1 each year.

**CHINA**

<u>The following provisions apply only to Participants who are subject to exchange control restrictions imposed by the State Administration of Foreign Exchange ("SAFE"), as determined by the Corporation in its sole discretion</u>:

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*Vesting of Awards*

The Participant's Employer, Corporation any other Affiliate to which the Participant provides service must be registered with SAFE prior to settlement of the PRSUs. If the Corporation is unable to obtain registration approval or is required to obtain further approvals on behalf of the Employer, Corporation or any other Affiliate, the vesting or settlement of the PRSUs may be suspended or delayed. Further, the Corporation is under no obligation to vest the PRSUs and/or issue shares of Common Stock if the Corporation's SAFE approval becomes invalid or ceases to be in effect by the time the Participant vests in the PRSUs.

*Shutdown or Divestiture* 

The following provision replaces Section 2(d) of the Award Agreement.

In the event that, more than six months after the Grant Date, the Participant's termination of employment is due to the shutdown or divestiture of the Corporation's or its Affiliate's business, it shall result in pro-rata vesting, as determined by the Committee, and the number of shares that are considered to vest shall be determined based on the Target Level of Awards (including any accrued dividend equivalents accumulated pursuant to Section 2(a)) and by prorating the number of full years of employment during the Restricted Period prior to the Participant's termination of employment, and shall be paid within 70 days following the Participant's termination of employment. Any fractional share of the Corporation resulting from such a prorated Award shall be rounded to the nearest whole share. For the purposes of this Award, a shutdown or divestiture of the Corporation's or its Affiliate's business unit is defined as one for which the charges related to the shutdown or divestiture are accounted for, and reported externally, as an exit activity in the Corporation's applicable SEC filings. The Corporation has complete discretion to determine whether a shutdown or divestiture of a business unit has occurred under the terms of the Plan.

*Termination of Employment*

Except for a termination of employment due to Retirement or the shutdown or divestiture of a business unit, as described above, and notwithstanding any other provision in the Award Agreement, the Participant shall forfeit any unvested Award, including any accrued dividend equivalents, upon any termination of employment including, but not limited to, any termination that is due to a Qualified Termination of Employment, death, Retirement or Total and Permanent Disability.

In the event that, more than six months after the Grant Date, the Participant's termination of employment is due to Retirement, then provided that, in the sole discretion of the Corporation, (i) no circumstances exist that could lead to a determination that the Participant should be, or could have been, terminated for Cause; and (ii) an Accounting Restatement (as defined in the Recovery Policy, as applicable) has not occurred and/or the Participant has not engaged in conduct that would trigger the Committee's right of recoupment under the Corporation's Recoupment Policy (as defined in Section 21 of this Award Agreement), it shall result in 100% vesting and the number of shares that are considered to vest shall be determined based on the Target Level of Awards (including any accrued dividend equivalents accumulated pursuant to Section 2(a)). Any PRSUs vested pursuant to this paragraph shall be paid within 70 days following the Participant's termination of employment.

The Participant acknowledges and agrees that he or she must sell any shares of Common Stock issued to him or her upon vesting of the Awards as soon as practicable following the Participant's termination of employment for any reason and in no event later than three months following the Participant's termination of employment. The Participant agrees that if he or she continues to hold any of such shares of Common Stock after this time, the shares of Common Stock may be sold by the Corporation's designated broker on the Participant's behalf at the instruction of the Corporation. Therefore, by accepting the Awards, the Participant understands and agrees that the Corporation is authorized to, and may in its sole discretion, instruct its designated broker to assist with the mandatory sale of shares of Common Stock (on the Participant's behalf pursuant to this authorization) and that the Participant expressly authorizes the Corporation's designated broker to complete the sale of such shares of Common Stock. The Participant acknowledges that the Corporation's designated broker is under no obligation to arrange for the sale of the shares of Common Stock at any particular price. Upon the sale

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of the shares of Common Stock, the proceeds, less any Tax-Related Items and brokerage fees or commissions will be remitted to the Participant pursuant to the procedures described in the "Exchange Control Information" section below.

*Exchange Control Information*

Shares of Common Stock issued to the Participant under the Plan must be maintained in an account with Merrill Lynch or such other broker as may be designated by the Corporation until the shares of Common Stock are sold through that broker. If the Corporation changes its broker, the Participant acknowledges and agrees that the Corporation may transfer any shares of Common Stock issued under the Plan to the new designated broker if necessary for legal or administrative reasons. The Participant agrees to sign any documentation necessary to facilitate the transfer. In addition, the Participant may be required to sell any shares of Common Stock obtained under the Plan if the Corporation determines that the application of such condition is necessary or advisable for China SAFE exchange control, legal or other administrative reasons.

The Participant understands and agrees that, to facilitate compliance with exchange control requirements, the Participant will be required to immediately repatriate to China the cash proceeds from the sale of shares of Common Stock acquired upon vesting of the Awards or from any dividends or dividend equivalents paid on the shares of Common Stock. The Participant further understands that, under local law, such repatriation of the cash proceeds will be effectuated through a special exchange control account established by the Corporation or one of its Affiliates in China, and the Participant hereby consents and agrees that the cash proceeds related to the Participant's participation in the Plan may be transferred to such special account prior to being delivered to the Participant. The Corporation may deliver the proceeds to the Participant in U.S. dollars or local currency at the Corporation's discretion. If the proceeds are paid in U.S. dollars, the Participant understands that he or she will be required to set up a U.S. dollar bank account in China so that the proceeds may be deposited into this account. If the proceeds are converted to local currency, there may be delays in delivering the proceeds to the Participant. The Participant agrees to bear the risk of any currency fluctuation between the time the shares of Common Stock are sold, either through voluntary sale or through a mandatory sale arranged by the Corporation, or proceeds are otherwise realized under the Plan and the time such proceeds are distributed to the Participant through the special exchange control account.

The Participant further agrees to comply with any other requirements that may be imposed by the Corporation in the future to facilitate compliance with exchange control requirements in China.

**COLOMBIA**

*Securities Law Information*

The shares of Common Stock are not and will not be registered in the Colombian registry of publicly traded securities (Registro Nacional de Valores y Emisores) and therefore the shares of Common Stock may not be offered to the public in Colombia. Nothing in this document should be construed as the making of a public offer of securities in Colombia. An offer of shares of Common Stock to employees will not be considered a public offer provided that it meets the conditions set forth in Article 6.1.1.1.1 in Decree 2555, 2010. In the event that the Corporation, in its sole discretion, determines that the offer of the Awards in Colombia may constitute a "public offer of securities", the Participant understands and agrees that the Corporation may, in its sole discretion, cease to offer participation in the Plan in Colombia. In the event that the Corporation exercises its discretion to cease offering the Plan in Colombia, the Participant will no longer be permitted to participate in the Plan as of the date established by the Corporation.

*Exchange Control Information* 

Colombian residents must register shares of Common Stock acquired under the Plan, regardless of value, with the Central Bank of Colombia (Banco de la República) as foreign investment held abroad. In addition, the liquidation of such investments must be transferred through the Colombian foreign exchange market (e.g., local banks), which includes the obligation of correctly completing and filing the

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appropriate foreign exchange form (declaración de cambio). The Participant is responsible for complying with applicable exchange control requirements in Colombia.

*Foreign Asset/Account Reporting Information*

The Participant must file an informative return with the Colombian Tax Office detailing any assets held abroad. If the individual value of any of these assets exceeds a certain threshold, the Participant must describe each asset and indicate the jurisdiction in which it is located, its nature and its value.

*Acknowledgment of Conditions*

The following provision supplements the Acknowledgment of Conditions section of the Award Agreement:

The Participant acknowledges that pursuant to Article 128 of the Colombian Labor Code, the Plan and related benefits do not constitute a component of the Participant's "salary" for any legal purpose. To this extent, they will not be included for purposes of calculating any labor benefits, such as legal/fringe benefits, vacation, indemnities, payroll taxes, social insurance contributions and/or any other labor-related amount which may be payable.

**COSTA RICA**

There are no country-specific provisions.

**CZECH REPUBLIC**

*Exchange Control Information* 

The Czech National Bank may require the Participant to fulfill certain notification duties in relation to the acquisition of shares of Common Stock and the opening and maintenance of a foreign account (e.g., may be required to report foreign direct investment, financial credits from abroad, investment in foreign securities, and associated collections and payments). However, because exchange control regulations change frequently and without notice, the Participant should consult with his or her personal legal advisor prior to the vesting of the PRSUs and the sale of Common Stock to ensure compliance with current regulations. It is the Participant's responsibility to comply with any applicable Czech exchange control laws.

**DOMINICAN REPUBLIC**

There are no country-specific provisions.

**ECUADOR**

There are no country-specific provisions.

**EL SALVADOR**

There are no country-specific provisions.

**FRANCE**

*PRSUs Not Tax-Qualified*

The Participant understands that this Award is not intended to be French tax-qualified.

*Consent to Receive Information in English*

By accepting the Award Agreement providing for the terms and conditions of the Participant's grant, the Participant confirms having read and understood the documents relating to this grant (the Plan and this Award Agreement) which were provided in English language. The Participant accepts the terms of those documents accordingly.

*En acceptant le Contrat d'Attribution décrivant les termes et conditions de l'attribution, le participant confirme ainsi avoir lu et compris les documents relatifs à cette attribution (le Plan U.S. et ce Contrat* 

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*d'Attribution) qui ont été communiqués en langue anglaise. Le participant accepte les termes en connaissance de cause.*

*Foreign Asset/Account Reporting Information*

French residents holding shares of Common Stock outside of France or maintaining a foreign bank account are required to report such to the French tax authorities when filing their annual tax returns, including any accounts that were closed during the year. Further, failure to comply could trigger significant penalties.

**GERMANY**

*Exchange Control Information* 

Cross-border payments in excess of €12,500 must be reported monthly to the German Federal Bank. No report is required for payments less than €12,500. In case of payments in connection with securities (including proceeds realized upon the sale of shares of Common Stock), the report must be made by the 5th day of the month following the month in which the payment was received. Effective from September 2013, the report must be filed electronically. The form of report ("*Allgemeine Meldeportal Statistik*") can be accessed via the *Bundesbank's* website (<u>www.bundesbank.de</u>) and is available in both German and English. The Participant is responsible for satisfying the reporting obligation.

*Foreign Asset/Account Reporting Information*

If the Participant's acquisition of shares of Common Stock leads to a so-called qualified participation at any point during the calendar year, the Participant will need to report the acquisition when he or she files a tax return for the relevant year. A qualified participation occurs only if (i) the Participant owns 1% or more of the Corporation and the value of the shares of Common Stock exceeds €150,000 or (ii) the Participant holds shares of Common Stock exceeding 10% of the Corporation's total Common Stock.

**GUATEMALA**

*Language Waiver*

By participating in the Plan, the Participant acknowledges that he or she is proficient in reading and understanding English and fully understands the terms of the Plan, or, alternatively, that the Participant will seek appropriate assistance to understand the terms and conditions in the Award Agreement and this Appendix A.

**HONDURAS**

There are no country-specific provisions.

**HONG KONG**

*Securities Law Warning*

*The offer of this Award and the shares of Common Stock subject to this Award do not constitute a public offering of securities under Hong Kong law and are available only to employees of the Corporation or its Affiliates participating in the Plan. The Participant should be aware that the Plan, the Plan prospectus and the contents of this Award Agreement (i) have not been prepared in accordance with and are not intended to constitute a "prospectus" for a public offering of securities under the applicable securities legislation in Hong Kong, (ii) have not been reviewed by any regulatory authority in Hong Kong, and (iii) are intended only for the personal use of each Participant and may not be distributed to any other person. The Participant is advised to exercise caution in relation to the offer. If the Participant is in any doubt about any of the contents of the Award Agreement, including this Appendix A, or the Plan, the Participant should obtain independent professional advice.*

*Award Payable Only in Shares*

Awards granted to Participants in Hong Kong shall be paid in shares of Common Stock only and do not provide any right for the Participant to receive a cash payment.

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*Sale of Shares*

In the event the Award vests within six months of the Grant Date, the Participant agrees that he or she will not offer to the public or otherwise dispose of the shares acquired prior to the six-month anniversary of the Grant Date. Any shares of Common Stock acquired under the Plan are accepted as a personal investment.

**INDIA**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in India do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**ISRAEL**

*Securities Law Information*

The offer of this Award does not constitute a public offering under Securities Law, 1968.

*Broker Designation*

Shares of Common Stock issued to the Participant under the Plan must be maintained in an account with Merrill Lynch or such other broker as may be designated by the Corporation until the shares of Common Stock are sold through that broker.

*Restricted from Online Brokerage Transactions*

The Participant acknowledges and agrees that he or she will be restricted from online brokerage account transactions the Corporation's designated broker. Therefore, by accepting the Awards, the Participant understands and agrees that the Participant will call the Corporation's designated broker to initiate any sale or transfer of any shares of Common Stock issued to him or her upon vesting of the Awards. The Participant acknowledges that the Corporation's designated broker is under no obligation to arrange for the sale of the shares of Common Stock at any particular price.

**ITALY**

*Plan Document Acknowledgment* 

In accepting the grant of this Award, the Participant acknowledges that he or she has received a copy of the Plan and the Award Agreement and has reviewed the Plan and the Award Agreement, including this Appendix A, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including this Appendix A.

The Participant acknowledges that he or she has read and specifically and expressly approves the following sections of the Award Agreement: Section 2(g) on Payment of Tax-Related Items; Section 5 on No Right of Continued Employment; Section 8 on Governing Law and Consent to Jurisdiction; the section on Acknowledgment of Conditions; and the Data Privacy Notice section included in this Appendix A.

*Foreign Asset/Account Reporting Information*

Italian residents who, at any time during the fiscal year, hold foreign financial assets (including cash and shares of Common Stock) which may generate income taxable in Italy are required to report these assets on their annual tax returns (UNICO Form, RW Schedule) for the year during which the assets are held, or on a special form if no tax return is due. These reporting obligations will also apply to Italian residents who are the beneficial owners of foreign financial assets under Italian money laundering provisions.

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*Foreign Asset Tax Information*

The value of financial assets held outside of Italy (including shares of Common Stock) by Italian residents is subject to a foreign asset tax. The taxable amount will be the fair market value of the financial assets (*e.g.*, shares of Common Stock acquired under the Plan) assessed at the end of the calendar year.

**KAZAKHSTAN**

*Securities Law Notification* 

This offer is addressed only to certain eligible employees in the form of the shares of Common Stock to be issued by the Corporation. Neither the Plan nor the Award Agreement has been approved, nor do they need to be approved, by the National Bank of Kazakhstan. This offer is intended only for the original recipient and is not for general circulation in the Republic of Kazakhstan.

*Exchange Control Information*

Residents of Kazakhstan may be required to notify the National Bank of Kazakhstan when they acquire shares of Common Stock under the Plan if the value of such shares of Common Stock exceeds US$100,000.

Please note that the exchange control regulations in Kazakhstan are subject to change. The Participant should consult with his or her personal legal advisor regarding any exchange control obligations that the Participant may have prior to vesting or receiving proceeds from the sale of shares of Common Stock acquired under the Plan. The Participant is responsible for ensuring compliance with all exchange control laws in Kazakhstan.

**KENYA**

*Tax Registration Notification*

Under Tax Procedure Act, 2015, the Participant is required to complete and submit a tax registration application to the Commissioner of Income Tax with 30 days of first vesting of the PRSUs. The registration should be completed through the online portal "I TAX" and is a one-time only registration. The Participant is solely responsible for ensuring compliance with all registration requirements in Kenya.

**KOREA**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Korea do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**MALAYSIA**

*Data Privacy Notice*

This provision replaces in its entirety the data privacy section in the Acknowledgment of Conditions section of the Award Agreement:

***The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant's personal data as described in this Award Agreement by and among, as applicable, the Participant's Employer, the Corporation, and its other Affiliates for the exclusive purpose of implementing, administering and managing the Participant's participation in the Plan.***

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***The Participant understands that the Corporation and the Participant's Employer may hold certain personal information about the Participant, including, but not limited to, the Participant's name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Corporation, details of all Awards or any other entitlement to shares awarded, canceled, vested, unvested or outstanding in the Participant's favor ("Data"), for the purpose of implementing, administering and managing the Plan.***

***The Participant understands that Data will be transferred to Merrill Lynch, or such other stock plan service provider as may be selected by the Corporation in the future, which is assisting the Corporation with the implementation, administration and management of the Plan. The Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients' country (e.g., the United States) may have different data privacy laws and protections than the Participant's country. The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative <u>LiLin.Ng@kcc.com</u> at telephone number 603 78068288. The Participant authorizes the Corporation, Merrill Lynch and any other possible recipients which may assist the Corporation (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Participant's participation in the Plan. The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant's participation in the Plan. The Participant understands that he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, the Participant understands that he or she is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or later seeks to revoke his or her consent, the Participant's employment status or service and career with the Employer will not be affected; the only consequence of refusing or withdrawing consent is that the Corporation would not be able to grant the Participant PRSUs or other equity awards or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing consent may affect the Participant's ability to participate in the Plan. For more information on the consequences of the Participant's refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.***

*Malaysian Translation:*

***Peserta dengan ini secara eksplisit dan tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronik atau lain-lain, data peribadi Peserta seperti yang diterangkan dalam Perjanjian Penganugerahan dan apa-apa bahan geran opsyen lain oleh dan di antara, seperti mana yang terpakai, Majikan, Syarikat dan Anak-Anak Syarikat Sekutunya untuk tujuan ekslusif bagi melaksanakan, mentadbir dan menguruskan penyertaan peserta dalam Pelan.***

***Peserta memahami bahawa Syarikat dan Majikan mungkin memegang maklumat peribadi tertentu tentang Peserta , termasuk, tetapi tidak terhad kepada, nama Peserta , alamat rumah dan nombor telefon, tarikh lahir, nombor insurans sosial atau nombor pengenalan lain, gaji, kewarganegaraan, jawatan, apa-apa syer dalam saham atau jawatan pengarah yang dipegang di Syarikat, butir-butir semua opsyen atau apa-apa hak lain atas syer dalam saham biasa yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak had ataupun yang belum dijelaskan bagi faedah Peserta ("Data"), untuk tujuan eksklusif bagi melaksanakan, mentadbir dan menguruskan Pelan.***

***Peserta memahami bahawa Data akan dipindahkan kepada Merrill Lynch, atau pembekal perkhidmatan pelan saham yang mungkin ditetapkan oleh Syarikat pada masa depan yang membantu Syarikat dengan pelaksanaan, pentadbiran dan pengurusan Pelan. Peserta memahami bahawa penerim a-penerima Data mungkin berada di Amerika Syarikat atau mana-***

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***mana tempat lain dan bahawa negara penerima-penerima (contohnya di Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan perlindungan yang berbeza daripada negara Peserta. Peserta memahami bahawa Peserta boleh meminta satu senarai yang mengandungi nama dan alamat penerima-penerima Data yang berpotensi dengan menghubungi wakil sumber manusia tempatan Peserta <u>LiLin.Ng@kcc.com</u>, T: 603 78068288. Peserta memberi kuasa kepada Syarikat, Merrill Lynch dan mana-mana penerima-penerima lain yang mungkin membantu Syarikat (pada masa sekarang atau pada masa depan) dengan melaksanakan, mentadbir dan menguruskan Pelan untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir dan menguruskan penyertaan Peserta dalam Pelan. Peserta memahami bahawa Data hanya akan disimpan untuk tempoh yang perlu bagi melaksanakan, mentadbir, dan menguruskan penyertaan Peserta dalam Pelan. Peserta memahami bahawa Peserta boleh, pada bila-bila masa, melihat Data, meminta maklumat tambahan mengenai penyimpanan dan pemprosesan Data, meminta bahawa pindaan-pindaan dilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakil sumber manusia tempatan Peserta . Peserta selanjutnya memahami bahawa Peserta memberi persetujuan ini secara sukarela. Sekiranya Peserta tidak bersetuju, atau kemudian membatalkan persetujuan Peserta , status pekerjaan atau perkhidmatan dan kerjaya Peserta dengan Majikan tidak akan terjejas; satunya akibat jika Peserta tidak bersetuju atau menarik balik persetujuan Peserta adalah bahawa Syarikat tidak akan dapat menganugerahkan kepada PRSUs atau anugerah ekuiti lain atau mentadbir atau mengekalkan anugerah tersebut. Oleh itu, Peserta memahami bahawa keengganan atau penarikan balik persetujuan Peserta boleh menjejaskan keupayaan Peserta untuk mengambil bahagian dalam Pelan. Untuk maklumat lanjut mengenai akibat keengganan Peserta untuk memberikan keizinan atau penarikan balik keizinan, Peserta boleh menghubungi wakil sumber manusia tempatan.***

*Director Notification Obligation* 

If the Participant is a director of the Corporation's Malaysian Affiliate, the Participant is subject to certain notification requirements under the Malaysian Companies Act. Among these requirements is an obligation to notify the Malaysian Affiliate in writing when the Participant receives or disposes of an interest (*e.g.*, an Award or shares) in the Corporation or any related company. Such notifications must be made within 14 days of receiving or disposing of any interest in the Corporation or any related company.

**MEXICO**

*Modification*

By accepting the Award, the Participant understands and agrees that any modification of the Plan or the Award Agreement or its termination shall not constitute a change or impairment of the terms and conditions of employment.

*Acknowledgment of the Grant*

In accepting the Award, the Participant acknowledges that the Participant has received a copy of the Plan and the Award Agreement, including this Appendix A, has reviewed the Plan and the Award Agreement, including this Appendix A, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including this Appendix A. The Participant further acknowledges that the Participant has read and specifically and expressly approves the Acknowledgment of Conditions section of the Award Agreement, in which the following is clearly described and established:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;The Participant's participation in the Plan does not constitute an acquired right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;The Plan and the Participant's participation in the Plan are offered by the Corporation on a wholly discretionary basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;The Participant's participation in the Plan is voluntary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Corporation nor any Affiliates are responsible for any decrease in the value of the Award granted and/or shares of Common Stock issued under the Plan.

*Labor Acknowledgment and Policy Statement*

In accepting the grant of this Award, the Participant expressly recognizes that Kimberly-Clark Corporation, with registered offices at 351 Phelps Drive, Irving, Texas 75038, U.S.A., is solely responsible for the administration of the Plan and that the Participant's participation in the Plan and acquisition of shares of Common Stock do not constitute an employment relationship between the Participant and the Corporation since the Participant is participating in the Plan on a wholly commercial basis and his or her sole Employer is K-C AFC Manufacturing S. de R.L. de C.V. ("KCC-Mexico"). Based on the foregoing, the Participant expressly recognizes that the Plan and the benefits that he or she may derive from participating in the Plan do not establish any rights between the Participant and the Employer, KCC-Mexico and do not form part of the employment conditions and/or benefits provided by KCC-Mexico, and any modification of the Plan or its termination shall not constitute a change or impairment of the terms and conditions of the Participant's employment.

The Participant further understands that his or her participation in the Plan is as a result of a unilateral and discretionary decision of the Corporation; therefore, Kimberly-Clark Corporation reserves the absolute right to amend and/or discontinue the Participant's participation at any time without any liability to the Participant.

Finally, the Participant hereby declares that he or she does not reserve to him- or herself any action or right to bring any claim against Kimberly-Clark Corporation for any compensation or damages regarding any provision of the Plan or the benefits derived under the Plan, and the Participant therefore grants a full and broad release to the Corporation, its Affiliates, branches, representation offices, its shareholders, officers, agents, or legal representatives with respect to any claim that may arise.

***Spanish Translation***

*Modificación*

*Al aceptar el Premio, el Participante entiende y acuerda que cualquier modificación al Plan o al Acuerdo o su terminación, no cambiará o disminuirá los términos y condiciones de empleo.*

*Reconocimiento del Otorgamiento*

*Al aceptar el Premio, el Participante está de acuerdo en haber recibido una copia del Plan, del Acuerdo incluyendo el presente Anexo "A" y ha revisado el Plan y el Acuerdo, incluyendo este Anexo "A" en su totalidad y comprende y acepta todas las disposiciones previstas en el Plan, en el Acuerdo, incluyendo el presente Anexo "A". Asimismo, el Participante reconoce que ha leído y manifiesta su específica y expresa conformidad con los términos y condiciones establecidos del Acuerdo, en el cual claramente se describe y establece lo siguiente:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Participante en el Plan no constituye un derecho adquirido.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2)&nbsp;&nbsp;&nbsp;&nbsp; El Plan y la participación del Participante en el Plan se ofrecen por la Compañía de forma completamente discrecional.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Participante en el Plan es voluntaria.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(4)&nbsp;&nbsp;&nbsp;&nbsp;Ni la Compañía ni sus Afiliadas son responsables por la reducción del valor del Premio y/o Acciones Ordinarias emitidas bajo el Plan.*

*Reconocimiento de la Legislación Laboral y Declaración de la Política*

*Al aceptar el otorgamiento de este Premio, el Participante expresamente reconoce que Kimberly-Clark Corporation con oficinas registradas en 351 Phelps Drive, Irving, Texas 75038, U.S.A., es la única responsable por la administración del Plan y que la participación del Participante en el Plan y en su caso la adquisición de las Opciones de Compra de Acciones o Acciones no constituyen ni podrán interpretarse como una relación de trabajo entre el Participante y Kimberly-Clark Corporation, ya que el Participante participa en el Plan en un marco totalmente comercial y su único Patrón lo es K-C AFC Manufacturing S. de R.L. de C.V. ("KCC-Mexico"). Derivado de lo anterior, el Participante* 

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*expresamente reconoce que el Plan y los beneficios que pudieran derivar de la participación en el Plan no establecen derecho alguno entre el Participante y el Patrón, KCC-Mexico y no forma parte de las condiciones de trabajo y/o las prestaciones otorgadas por KCC-Mexico y que cualquier modificación al Plan o su terminación no constituye un cambio o impedimento de los términos y condiciones de la relación de trabajo del Participante.*

*Asimismo, el Participante reconoce que su participación en el Plan es resultado de una decisión unilateral y discrecional de Kimberly-Clark Corporation por lo tanto, Kimberly-Clark Corporation se reserva el absoluto derecho de modificar y/o terminar la participación del Participante en cualquier momento y sin responsabilidad alguna frente el Participante.*

*Finalmente, el Participante por este medio declara que no se reserva derecho o acción alguna que ejercitar en contra de Kimberly-Clark Corporation por cualquier compensación o daño en relación con las disposiciones del Plan o de los beneficios derivados del Plan y por lo tanto, el Participante otorga el más amplio finiquito que en derecho proceda a Kimberly-Clark Corporation , sus afiliadas, subsidiarias, oficinas de representación, sus accionistas, funcionarios, agentes o representantes legales en relación con cualquier demanda que pudiera surgir.* 

*Securities Law Notification*

The PRSUs and the shares of Common Stock offered under the Plan have not been registered with the National Register of Securities maintained by the Mexican National Banking and Securities Commission and cannot be offered or sold publicly in Mexico. In addition, the Plan, the Award Agreement and any other document relating to the PRSUs may not be publicly distributed in Mexico. These materials are addressed to the Participant only because of their existing relationship with the Corporation and these materials should not be reproduced or copied in any form. The offer contained in these materials does not constitute a public offering of securities but rather constitutes a private placement of securities addressed specifically to individuals who are present employees of the Mexican subsidiary of the Corporation made in accordance with the provisions of the Mexican Securities Market Law, and any rights under such offering shall not be assigned or transferred*.* 

**NETHERLANDS**

There are no country-specific provisions.

**NEW ZEALAND**

*Securities Law Information*

The Participant is being offered PRSUs which, if vested, will entitle the Participant to acquire shares of Common Stock in accordance with the terms of the Award Agreement and the Plan. The shares of Common Stock, if issued, will give the Participant a stake in the ownership of the Corporation. The Participant may receive a return if dividends are paid.

If the Corporation runs into financial difficulties and is wound up, the Participant will be paid only after all creditors and holders of preferred shares (if any) have been paid. The Participant may lose some or all of the Participant's investment, if any.

New Zealand law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors to make an informed decision. The usual rules do not apply to this offer because it is made under an employee share scheme. As a result, the Participant may not be given all the information usually required. The Participant will also have fewer other legal protections for this investment. The Participant is advised to ask questions, read all documents carefully, and seek independent financial advice before committing.

The shares of Common Stock are quoted on the New York Stock Exchange ("NYSE"). This means that if the Participant acquires shares of Common Stock under the Plan, the Participant may be able to sell the shares of Common Stock on the NYSE if there are interested buyers. The Participant may get less than the Participant invested. The price will depend on the demand for the shares of Common Stock.

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For a copy of the Corporation's most recent financial statements (and, where applicable, a copy of the auditor's report on those financial statements), as well as information on risk factors impacting the Corporation's business that may affect the value of the shares pf Common Stock, the Participant should refer to the risk factors discussion on the Corporation's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission and are available online at <u>www.sec.gov</u>, as well as on the Corporation's "Investor Relations" website at <u>https://investor.kimberly-clark.com</u>.

**NIGERIA**

There are no country-specific provisions.

**PANAMA**

*Securities Law Information* 

Neither this Award nor any shares of Common Stock that the Participant may acquire at vesting of this Award constitute a public offering of securities, as they are available only to eligible employees of the Corporation and its Affiliates.

**PARAGUAY**

There are no country-specific provisions.

**PERU**

*Securities Law Information*

The offer of this Award is considered a private offering in Peru; therefore, it is not subject to registration in Peru. For more information concerning the offer, please refer to the Plan, the Award Agreement and any other materials or documentation made available by the Corporation. For more information regarding the Corporation, please refer to the Corporation's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission and are available at <u>www.sec.gov</u>, as well as the Corporation's "Investor Relations" website at: <u>https://investor.kimberly-clark.com</u>.

*Labor Law Acknowledgment*

By accepting the Award, the Participant acknowledges that the PRSUs are being granted *ex gratia* to the Participant.

**PHILIPPINES**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in the Philippines do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash in an amount equal to the value of the shares of Common Stock at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

*Fringe Benefit Tax Obligation*

By accepting the Award, the Participant consents and agrees to assume any and all liability for fringe benefit tax that may be payable by the Corporation and/or the Employer (as determined by the Corporation or the Employer in their discretion) in connection with the Award and any awards previously granted by the Corporation. Further, by accepting the Award, the Participant agrees that the Corporation and/or the Employer may collect the fringe benefit tax from the Participant by any of the means set forth in the Acknowledgment of Conditions section of the Award Agreement, or any other

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reasonable method established by the Corporation. The Participant agrees to execute other consents or elections to accomplish the foregoing, promptly upon request by the Corporation or the Employer.

**POLAND**

*Foreign Asset/Account Reporting Information*

Polish residents holding foreign securities (e.g., shares of Common Stock) and/or maintaining accounts abroad must report information to the National Bank of Poland on transactions and balances regarding such securities and cash deposited in such accounts if the value of such securities and cash (when combined with all other assets possessed abroad) exceeds certain thresholds. If required, the reports must be filed on a quarterly basis on special forms that are available on the website of the National Bank of Poland. Polish residents should consult with their personal tax advisor to determine their personal reporting obligations.

*Exchange Control Information*

Transfers of funds into and out of Poland in excess of €15,000 (or PLN 15,000 if such transfer of funds is connected with business activity of an entrepreneur) must be made via a bank account held at a bank in Poland. Additionally, Polish residents are required to store all documents connected with any foreign exchange transactions that Polish residents are engaged in for a period of five years, as measured from the end of the year in which such transaction occurred.

**PUERTO RICO**

There are no country-specific provisions.

**RUSSIA**

*Settlement of PRSUs* 

Depending on applicable restrictions then in effect, the Corporation has the sole discretion to postpone the vesting and/or settlement of any PRSUs, to determine whether to settle any vested PRSUs in shares of Common Stock or in cash, or to cancel such PRSUs for no consideration.

*Securities Law Information*

This Award Agreement, the Plan and all other materials the Participant may receive regarding participation in the Plan do not constitute advertising or an offering of securities in Russia. Absent any requirement under local law, the issuance of shares of Common Stock under the Plan has not and will not be registered in Russia and hence the shares described in any Plan-related documents may not be offered or placed in public circulation in Russia.

*US Transaction*

The Participant understands that the PRSUs and any shares of Common Stock under the Plan are to be issued and sold solely in the United States. Any shares of Common Stock issued to the Participant upon vesting of the PRSUs shall be delivered to the Participant's brokerage account in the United States, where such shares of Common Stock must be held until the time of sale. In no event will shares of Common Stock be delivered to the Participant in Russia.

*Exchange Control Information* 

All restrictions on the payment of funds by non-residents into a Russian resident's declared foreign brokerage account in the United States, including dividends and proceeds from the sale of shares of Common Stock have been abolished. Russian residents may now receive, hold and remit dividends and proceeds from the sale of shares (including shares of Common Stock acquired under the Plan) into and out of a brokerage account without any requirement to first repatriate such funds to an authorized bank in Russia. The Participant should be aware that the rules related to foreign bank accounts are different and that certain restrictions with respect to payments by non-residents into a Russian currency resident's foreign bank account may continue to apply where the foreign bank account is located in the U.S. The Participant should contact his or her personal advisor to confirm the application of the

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exchange control restrictions prior to vesting in the PRSUs and selling shares of Common Stock, as significant penalties may apply in the case of non-compliance with the exchange control restrictions and because such exchange control restrictions are subject to change.

*Foreign Asset/Account Reporting Information*

Russian residents are required to report the opening, closing or change in account details of any foreign bank account to the Russian tax authorities within one month of the opening, closing or change of such account. Russian residents are also required to report to the Russian tax authorities on or before June 1 of the following year (i) the beginning and ending balances in a foreign bank account each year and (ii) transactions related to such foreign account during the year. Foreign brokerage accounts and foreign accounts with other financial institutions (financial market organizations) must also be reported. Certain specific exemptions from reporting requirements may apply. Non-compliance with the reporting obligations could impact the Participant's ability to vest, receive shares of Common Stock pursuant to the PRSUs, maintain the account outside of Russia and participate in the Plan. The Participant should consult with his or her personal legal advisor to determine how these reporting requirements may apply to any account opened in connection with the Participant's participation in the Plan.

*Data Privacy Notice* 

This provision supplements the Data Privacy section in the Acknowledgment and Conditions section of the Award Agreement:

***The Participant understands and agrees that he or she must complete and return a Consent to Processing of Personal Data (the "Consent") form to the Corporation if requested. Further, the Participant understands and agrees that if the Participant does not complete and return a Consent form to the Corporation if requested, the Corporation will not be able to grant PRSUs to the Participant or other awards or administer or maintain such awards. Therefore, the Participant understands that refusing to complete a Consent form or withdrawing his or her consent may affect the Participant's ability to participate in the Plan.***

*Anti-Corruption Information*

Anti-corruption laws prohibit certain public servants, their spouses and their dependent children from owning any foreign source financial instruments (e.g., shares of foreign companies such as the Corporation). Accordingly, the Participant should inform the Corporation if he or she is covered by these laws because the Participant should not in this case hold shares of Common Stock acquired under the Plan.

**SAUDI ARABIA**

*Securities Law Information.* 

This document may not be distributed in the Kingdom except to such persons as are permitted under the Rules on the Offer of Securities and Continuing Obligations issued by the Capital Market Authority.

The Capital Market Authority does not make any representation as to the accuracy or completeness of this document, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this document. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If the Participant does not understand the contents of this document, the Participant should consult an authorized financial adviser.

**SINGAPORE**

*Sale Restriction* 

The Participant agrees that any shares of Common Stock acquired pursuant to the PRSUs will not be offered for sale in Singapore prior to the six-month anniversary of the Grant Date, unless such sale or offer is made pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the Securities and Futures Act (Chapter 289, 2006 Ed.) ("SFA"), or pursuant to, and in accordance with the conditions of, any other applicable provisions of the SFA.

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*Securities Law Information*

The grant of the PRSUs is being made pursuant to the "Qualifying Person" exemption" under section 273(1)(f) of the SFA under which it is exempt from the prospectus and registration requirements and is not made with a view to the underlying shares of Common Stock being subsequently offered for sale to any other party. The Plan has not been and will not be lodged or registered as a prospectus with the Monetary Authority of Singapore.

*Director Notification Obligation*

If the Participant is a director, associate director or shadow director of the Corporation's Singapore Affiliate, the Participant is subject to certain notification requirements under the Singapore Companies Act (Cap. 50, Rev Ed 2006). Among these requirements is an obligation to notify the Corporation's Singapore Affiliate in writing when the Participant receives an interest (*e.g.*, an Award or shares) in the Corporation or any Affiliate. In addition, the Participant must notify the Corporation's Singapore Affiliate when he or she sells shares of the Corporation or of any Affiliate (including when the Participant sells shares issued upon vesting and settlement of the Award). These notifications must be made within two business days of (i) acquiring or disposing of any interest in the Corporation or any Affiliate, or (ii) any change in a previously-disclosed interest (*e.g.*, upon vesting of the Award or when shares of Common Stock acquired under the Plan are subsequently sold). In addition, a notification of the Participant's interests in the Corporation or any Affiliate must be made within two business days of becoming a director, associate director or shadow director.

**SLOVAK REPUBLIC**

*Foreign Asset/Account Reporting Information*

If the Participant permanently resides in the Slovak Republic and, apart from being employed, carries on business activities as an independent entrepreneur (in Slovakian, *podnikatel*), the Participant will be obligated to report his or her foreign assets (including any foreign securities) to the National Bank of Slovakia (provided that the value of the foreign assets exceeds an amount of €2,000,000). These reports must be submitted on a monthly basis by the 15<sup>th</sup> day of the respective calendar month, as well as on a quarterly basis by the 15<sup>th</sup> day of the calendar month following the respective calendar quarter, using notification form DEV (NBS) 1-12, which may be found at the National Bank of Slovakia's website at <u>www.nbs.sk</u>.

**SOUTH AFRICA**

*Tax Acknowledgment*

By accepting the Award, the Participant agrees to notify the Employer of the amount of any gain realized upon vesting of the Award. If the Participant fails to advise the Employer of the gain realized upon vesting, the Participant may be liable for a fine. The Participant will be responsible for paying any difference between the actual tax liability and the amount withheld.

*Exchange Control Information*

To participate in the Plan, the Participant must comply with exchange control regulations and rulings (the "Exchange Control Regulations") in South Africa.

Because the Exchange Control Regulations change frequently and without notice, the Participant understands that he or she should consult a legal advisor prior to the acquisition or sale of shares under the Plan to ensure compliance with current regulations. The Participant understands that it is his or her responsibility to comply with South African exchange control laws, and neither the Corporation nor the Employer will be liable for any fines or penalties resulting from failure to comply with applicable laws.

*Securities Law Information*

In compliance with South African securities law, the Participant acknowledges that the documents listed below are available for review at the addresses listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Corporation's most recent annual financial statements: <u>https://investor.kimberly-clark.com</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The Corporation's most recent Plan prospectus may be accessed online through Merrill Lynch, or such other stock plan service provider as may be selected by the Corporation in the future, at <u>www.mybenefits.ml.com</u> in the Document Library.

A copy of the above documents will be sent free of charge upon written request to Stock Plan Administrator, P.O. Box 619100, Dallas, Texas 75261-9100. In addition, the Participant should contact his or her tax advisor for specific information concerning his or her personal tax situation with regard to Plan participation.

**SPAIN**

*Securities Law Information*

No "offer of securities to the public," as defined under Spanish law, has taken place or will take place in the Spanish territory in connection with the grant of this Award. The Award Agreement (including this Appendix A) has not been, nor will it be, registered with the *Comisión Nacional del Mercado de Valores*, and does not constitute a public offering prospectus.

*Labor Law Acknowledgment*

By accepting the Award, the Participant acknowledges that he or she understands and agrees to participation in the Plan and that he or she has received a copy of the Plan.

The Participant understands that the Corporation has unilaterally, gratuitously and discretionally decided to grant Awards under the Plan to individuals who may be employees of the Corporation or its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Corporation or any of its Affiliates on an ongoing basis. Consequently, the Participant understands that any grant is given on the assumption and condition that it shall not become a part of any employment contract (either with the Corporation or any of its Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further, the Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of the Award and the underlying shares is unknown and unpredictable. In addition, the Participant understands that this grant would not be made but for the assumptions and conditions referred to above; thus, the Participant understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the Award shall be null and void.

Further, the Participant understands that the Award is a conditional right. Participant shall forfeit any unvested Award upon termination of employment unless such termination is (i) due to a Qualified Termination of Employment, or (ii) if more than six months after the Grant Date, due to death, Total and Permanent Disability, or the shutdown or divestiture of a business unit. Vesting will cease, for example, regardless of whether (1) the Participant is considered to be unfairly dismissed without good cause (i.e., subject to a "despido improcedente"); (2) the Participant is dismissed for disciplinary or objective reasons or due to a collective dismissal; (3) the Participant terminates his or her employment or service relationship due to a change of work location, duties or any other employment or contractual condition; and (4) the Participant terminates his or her employment or service relationship due to a unilateral breach of contract by the Corporation or an Affiliate. Consequently, upon termination of the Participant's employment or service relationship for any of the above reasons, the Participant may automatically lose any rights to the PRSUs that were not vested on the date of termination of the Participant's employment or service relationship, as described in the Plan and the Award Agreement.

*Exchange Control Information* 

If the Participant holds 10% or more of the Corporation's share capital, the Participant must declare the acquisition, ownership and disposition of shares of Common Stock to the Spanish Dirección General de Comercio e Inversiones (the "DGCI") of the Ministry of Economy and Competitiveness.

In addition, the Participant may be required to declare electronically to the Bank of Spain any foreign accounts (including brokerage accounts held abroad), any foreign instruments (including any shares of

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Common Stock acquired under the Plan) and any transactions with non-Spanish residents (including any payments of shares of Common Stock made to the Participant by the Corporation) depending on the value of such accounts and instruments and the amount of the transactions during the relevant year as of December 31 of the relevant year.

*Foreign Asset/Account Reporting Information*

If the Participant holds rights or assets (*e.g.*, shares of Common Stock or cash held in a bank or brokerage account) outside of Spain with a value in excess of €50,000 per type of right or asset (*e.g.*, shares of Common Stock, cash, etc.) as of December 31 each year, the Participant is required to report certain information regarding such rights and assets on tax form 720. After such rights and/or assets are initially reported, the reporting obligation will only apply for subsequent years if the value of any previously-reported rights or assets increases by more than €20,000 or if the ownership of the assets is transferred or relinquished during the year. The reporting must be completed by the following March 31.

**SWITZERLAND**

*Securities Law Information*

Neither this document nor any other materials relating to the Awards (i) constitutes a prospectus according to articles 35 et seq. of the Swiss Federal Act on Financial Services ("FinSA") (ii) may be publicly distributed or otherwise made publicly available in Switzerland to any person other than a participant or (iii) has been or will be filed with, approved or supervised by any Swiss reviewing body according to article 51 FinSA or any Swiss regulatory authority, including the Swiss Financial Market Supervisory Authority ("FINMA").

**TAIWAN**

*Data Privacy*

The following provision supplements the data privacy section in the Acknowledgment of Conditions section of the Award Agreement:

The Participant acknowledges that he or she has read and understands the terms regarding collection, processing and transfer of data contained in the Acknowledgment of Conditions section of the Award Agreement and, by participating in the Plan the Participant agrees to such terms. In this regard, upon request of the Corporation or the Employer, the Participant agrees to provide any executed data privacy consent form to the Employer or the Corporation (or any other agreements or consents that may be required by the Employer or the Corporation) that the Corporation and/or the Employer may deem necessary to obtain under the data privacy laws now or in the future. The Participant understands that he or she will not be able to participate in the Plan if the Participant fails to execute any such consent or agreement.

*Securities Law Information*

The offer of participation in the Plan is available only for employees of the Corporation and its Affiliates. The offer of participation in the Plan is not a public offer of securities by a Taiwanese company.

*Exchange Control Information* 

Taiwanese residents may acquire and remit foreign currency (including proceeds from the sale of shares of Common Stock or the receipt of dividends) into and out of Taiwan up to US$5,000,000 per year. If the transaction amount is TWD500,000 or more in a single transaction, the Participant must submit a foreign exchange transaction form and also provide supporting documentation to the satisfaction of the remitting bank.

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**THAILAND**

*Exchange Control Information*

If the proceeds from the sale of shares of Common Stock or the receipt of dividends paid on such shares are equal to or greater than US$1,000,000 in a single transaction, Thai residents must repatriate all cash proceeds to Thailand immediately following the receipt of the cash proceeds and then either convert such proceeds to Thai Baht or deposit the proceeds into a foreign currency account opened with a commercial bank in Thailand within 360 days of repatriation. In addition, Thai residents must specifically report the inward remittance to the Bank of Thailand on a foreign exchange transaction form.

Failure to comply with the above obligations may lead to penalties being assessed by the Bank of Thailand. Because exchange control regulations change frequently and without notice, the Participant should consult with his or her legal advisor before selling any shares of Common Stock (or receiving any other funds in connection with the Plan) to ensure compliance with current regulations. It is the Participant's responsibility to comply with exchange control laws in Thailand and neither the Corporation nor the Employer will be liable for any fines or penalties resulting from failure to comply with applicable laws.

**TURKEY**

*Securities Law Information*

Turkish residents are not permitted to sell shares of Common Stock acquired under the Plan in Turkey. Turkish residents must sell the shares of Common Stock acquired under the Plan outside of Turkey. The Shares are currently traded on the New York Stock Exchange in the U.S. under the ticker symbol "KMB" and shares of Common Stock may be sold on this exchange.

*Exchange Control Information*

Under Turkish law, Turkish residents are permitted to purchase and sell securities or derivatives traded on exchanges abroad only through a financial intermediary licensed in Turkey. Therefore, the Participant may be required to appoint a Turkish broker to assist him or her with the sale of the shares of Common Stock acquired under the Plan. *The Participant should consult his or her personal legal advisor before selling any shares of Common Stock acquired under the Plan to confirm the applicability of this requirement to the Participant.*

**UKRAINE**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Ukraine do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to Participant through local payroll. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**UNITED ARAB EMIRATES**

*Securities Law Information*

The offer of the Award is available only for select employees of the Corporation and its Affiliates and is in the nature of providing employee incentives in the United Arab Emirates. The Plan and the Award Agreement are intended for distribution only to such employees and must not be delivered to, or relied on, by any other person. Prospective purchasers of securities should conduct their own due diligence.

The Emirates Securities and Commodities Authority has no responsibility for reviewing or verifying any documents in connection with this statement, including the Plan and the Award Agreement, or any other incidental communication materials distributed in connection with the Award. Further, neither the Ministry of Economy nor the Dubai Department of Economic Development has approved this statement

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nor taken steps to verify the information set out in it, and has no responsibility for it. Residents of the United Arab Emirates who have any questions regarding the contents of the Plan and the Award Agreement should obtain independent professional advice.

**UNITED KINGDOM**

*Tax Acknowledgment*

The following information supplements the information regarding Tax-Related Items in the Acknowledgment of Conditions section of the Award Agreement:

Without limitation to the information regarding Tax-Related Items in the Award Agreement, the Participant agrees that he or she is liable for all Tax-Related Items and hereby covenants to pay all such Tax-Related Items, as and when requested by the Corporation or, if different, the Employer or by HM Revenue & Customs ("HMRC") (or any other tax authority or any other relevant authority). The Participant agrees to indemnify and keep indemnified the Corporation and/or the Employer for all Tax-Related Items that they are required to pay, or withhold or have paid or will pay to HMRC on the Participant's behalf (or any other tax authority or any other relevant authority) and authorizes the Corporation and/or the Employer to recover such amounts by any of the means referred to in the Acknowledgment of Conditions section of the Award Agreement.

Notwithstanding the foregoing, if the Participant is an executive officer or director (as within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the Participant understands that he or she may not be able to indemnify the Corporation for the amount of any Tax-Related Items not collected from or paid by the Participant, if the indemnification could be considered to be a loan. In this case, the Tax-Related Items not collected or paid may constitute a benefit to the Participant on which additional income tax and National Insurance contributions ("NICs") may be payable.

The Participant acknowledges that the Participant ultimately will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying to the Corporation or the Employer (as appropriate) the amount of any NICs due on this additional benefit which the Corporation and/or the Employer may also recover from the Participant at any time thereafter by any of the means referred to in the Acknowledgment of Conditions section of the Award Agreement.

**UNITED STATES**

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| | |
|:---|:---|
| California | Nothing in this Award Agreement prevents the Participant from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that the Participant has reason to believe is unlawful. |
| Colorado | Nothing in this Award Agreement limits the Participant's ability to disclose or discuss, either orally or in writing, any alleged discriminatory or unfair employment practice. This Award Agreement does not prohibit disclosure of information that arises from the Participant's general training, knowledge, skill, or experience, whether gained on the job or otherwise, information that is readily ascertainable to the public, or information that the Participant otherwise has a right to disclose as legally protected conduct. |
| Hawaii | Nothing in this Award Agreement prevents the Participant from disclosing or discussing sexual harassment or sexual assault occurring in the workplace, at work-related events, between employees, or between an employer and an employee. |

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| | |
|:---|:---|
| Illinois | Nothing in this Award Agreement prevents the Participant from making truthful statements or disclosures regarding unlawful employment practices or from reporting any allegations of unlawful conduct to federal, state, or local officials for investigation, including, but not limited to, alleged criminal conduct or unlawful employment practices. |
| Maine | Nothing in this Award Agreement prevents the Participant from disclosing or discussing unlawful employment discrimination occurring in the workplace or at work-related events. |
| New Jersey | Nothing in this Award Agreement requires the Participant to conceal the details relating to a claim of discrimination, retaliation, or harassment. |
| New York | Nothing in this Award Agreement prevents the Participant from (a) disclosing factual information related to any future claim of discrimination or (b) making any disclosure relating to any claim the factual foundation for which involves unlawful discrimination, including discriminatory harassment, or retaliation (including disclosure of the underlying facts and circumstances of the claim). |
| Oregon | Nothing in the Award Agreement prevents the Participant from disclosing or discussing conduct (a) that constitutes discrimination prohibited by ORS 659A.030 (Discrimination because of race, color, religion, sex, sexual orientation, gender identity, national origin, marital status, age or expunged juvenile record prohibited), including conduct that constitutes sexual assault, or by ORS 659A.082 (Discrimination against person for service in uniformed service prohibited) or 659A.112 (Employment discrimination), and (b) that occurred between employees or between an employer and an employee in the workplace or at a work-related event that is off the employment premises and coordinated by or through the employer, or between an employer and an employee off the employment premises. |
| Rhode Island | Nothing in this Award Agreement requires that alleged violations of civil rights or alleged unlawful conduct remain confidential. |
| Tennessee | Nothing in this Award Agreement prevents the Participant from disclosing sexual harassment in the workplace. |
| Vermont | Nothing in this Award Agreement restricts the Participant's right to oppose, disclose or report sexual harassment. |
| Virginia | Nothing in this Award Agreement requires the Participant to conceal the details relating to a claim of sexual assault or sexual harassment. |

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| | |
|:---|:---|
| Washington | Nothing in this Award Agreement (or any other agreement signed by the Participant) prevents the Participant from disclosing or discussing conduct, or the existence of a settlement involving conduct, that the Participant reasonably believed under Washington state, federal, or common law to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy. |
| Wisconsin | The Participant's confidentiality obligations outlined in Section 19(e) of this Award Agreement with regard to any particular Confidential Information shall commence immediately upon the Participant first having access to such Confidential Information and shall continue during and after employment with the Corporation and its Affiliates until such time as such Confidential Information has become public knowledge other than as a result of the Participant's breach of this Award Agreement or breach by those acting in concert with the Participant or on the Participant's behalf, and shall last for two (2) years after the Participant's employment with the Corporation or its Affiliates ends. Except for "trade secrets" as defined in Wisconsin Statutes §134.90, which are governed by that statute, (a) "Confidential Information" is limited to information that is not generally known to the public (other than through Participant's disclosure in breach of contract or violation of applicable law) and that would be of value to a competitor if known to that competitor, and (b) the prohibition on disclosure and use of Confidential Information shall apply only (i) during employment and for a period of two years after employment ends and (ii) within the geographic area in which the Corporation and its Affiliates were engaged in business at any time during the most recent three months of Participant's employment with the Corporation and its Affiliates. |

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**URUGUAY**

There are no country-specific provisions.

**VIETNAM**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Vietnam do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant through local payroll. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

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**KIMBERLY-CLARK CORPORATION**

**PERFORMANCE RESTRICTED STOCK UNIT**

**AWARD AGREEMENT** 

**APPENDIX B** 

Subject to Section 19(h), the length of the Participant's non-competition obligations following termination of employment as set forth in Section 19(b) and/or Section 20(c) of this Award Agreement is based on the Participant's Salary Grade as of the date of termination of employment:

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| | |
|:---|:---|
| **Salary Grade** | **Length of Non-Competition Obligation Following Termination of Employment** |
| ELT | Two (2) years |
| Non-ELT Elected Officers | Two (2) years |
| 1 | Two (2) years |
| 2 | Two (2) years |
| 3 | Two (2) years |
| 4 | Two (2) years |
| 5 | One (1) year |
| 6 | One (1) year |
| 7 | One (1) year |
| 8 | One (1) year |

---

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## Ex-10.R

**Exhibit (10)r**

**KIMBERLY-CLARK CORPORATION**

**OFF-CYCLE TIME-VESTED RESTRICTED STOCK UNIT**

**AWARD AGREEMENT**

This Award, granted effective on __________ (the "Grant Date"), by Kimberly-Clark Corporation, a Delaware corporation (hereinafter called the "Corporation"), to ________________ (the "Participant") is subject to the terms and conditions of the Kimberly-Clark Corporation 2021 Equity Participation Plan (the "Plan") and the Award Agreement, including any terms and conditions contained in Appendix A and/or Appendix B to the Award Agreement.

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, the Corporation has adopted the Plan to encourage those employees who materially contribute, by managerial, scientific or other innovative means, to the success of the Corporation or of an Affiliate, to acquire an ownership interest in the Corporation, thereby increasing their motivation for and interest in the Corporation's and its Affiliates' long-term success;

NOW, THEREFORE, it is agreed as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Share Units Granted</u>. The Corporation hereby grants to the Participant the right to receive all or any part of ________ Off-Cycle Time-Vested Restricted Stock Units ("RSUs") of the $1.25 par value Common Stock of the Corporation, subject to the terms, conditions and restrictions set forth herein and in the Plan.

2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability Restrictions</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Period</u>. During the Restricted Period, the Participant may not sell, assign, transfer, or otherwise dispose of, or mortgage, pledge or otherwise encumber the Award, and any such attempted sale, assignment, transfer, pledge or disposal shall be void. Except as provided in this Section 2, the RSUs, including any accrued dividend equivalents, shall be subject to forfeiture until the Participant becomes vested in such Awards on the date that was approved on the Grant Date and as reflected on the Merrill Lynch Benefits On-line site, or any successor system, via the Grant Summary screen as the Future Vesting table.

The Restricted Period shall begin on the date of the granting of this Award, and shall end on [insert]. During the Restricted Period, holders of Awards shall have none of the rights of a shareholder with respect to the shares of Common Stock that may be earned pursuant to the RSUs, including, but not limited to, any right to receive dividends in cash or other property or other distribution or rights in respect of such shares except as otherwise provided in this Award Agreement, nor any right to vote such shares as the record owner thereof.

During each year in the Restricted Period, the Participant will not be paid dividend equivalents on the unvested RSUs but the Participant will receive a credit equal to dividends declared on the Corporation's Common Stock which will be reinvested in additional RSUs at the then fair market value of the Corporation's Common Stock on the date dividends are paid, and the additional RSUs will be accumulated and paid if and when the RSUs vest, based on the actual number of RSUs that vest. In the case of dividends paid in property other than cash, the amount of the dividend shall be deemed to be the fair market value of the property at the time of the payment of the dividend, as determined in good faith by the Corporation. The Corporation shall not be required to segregate any cash or other property of the Corporation.

(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Employment</u>. For purposes of this Award, the Participant's employment will be considered terminated as of the date the Participant is no longer actively providing services to the Corporation or one of its Affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant's employment agreement, if any), and unless otherwise expressly provided in this Award Agreement or determined by the Corporation, the Participant's right to receive

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RSUs and vest in the Award under the Plan, if any, will terminate effective as of such date and will not be extended by any notice period or any period of "garden leave" or similar period mandated under employment laws in the jurisdiction where the Participant is employed or the terms of the Participant's employment agreement, if any); the Committee shall have the exclusive discretion to determine when the Participant is no longer employed for purposes of the Award (including whether the Participant may still be considered employed while on a leave of absence).

The Participant shall forfeit any unvested Award, including any accrued dividend equivalents, upon termination of employment unless such termination is (i) due to a Qualified Termination of Employment, or (ii) due to death, Total and Permanent Disability, or the shutdown or divestiture of a business unit. A termination of employment shall not be deemed to have occurred while a Participant is on a military leave or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Participant retains a right to reemployment with the Corporation or an Affiliate under an applicable statute or by contract. For purposes of this sub-section, a leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Corporation or an Affiliate. If the period of leave exceeds six months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence is substituted for such six-month period in determining whether a termination of employment shall be deemed to have occurred. A termination of employment with the Corporation or an Affiliate to accept immediate reemployment with the Corporation or an Affiliate likewise shall not be deemed to be a termination of employment for the purposes of the Plan. A Participant who is classified as an intermittent employee shall be deemed to have a termination of employment for purposes of the Plan if the level of bona fide services the Participant would perform after such date would permanently decrease to less than 50 percent of the average level of bona fide services performed over the immediately preceding 36-month period (or the full period of services to the Corporation or an Affiliate if the Participant has been providing such services less than 36 months).

For purposes of this Award, a termination of employment includes a termination that is deemed an "unfair dismissal" or a "constructive dismissal." Further, the Participant understands that the Award is a conditional right. Participant shall forfeit any unvested Award upon termination of employment except as provided above, for example, regardless of whether (1) the Participant is considered to be unfairly dismissed without good cause; (2) the Participant is dismissed for disciplinary or objective reasons or due to a collective dismissal; (3) the Participant terminates his or her employment or service relationship due to a change of work location, duties or any other employment or contractual condition; or (4) the Participant terminates his or her employment or service relationship due to a unilateral breach of contract by the Corporation or an Affiliate. Consequently, upon termination of the Participant's employment or service relationship for any of the above reasons, the Participant may automatically lose any rights to the RSUs that were not vested on the date of termination of the Participant's employment or service relationship, as described in the Plan and the Award Agreement.

(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Death or Total and Permanent Disability</u>. If the Participant's termination of employment is due to death or Total and Permanent Disability, it shall result in pro rata vesting, as determined by the Committee, and the number of shares that are considered to vest shall be calculated as (1) the total number of RSU granted under the Award minus the number of RSUs already vested under the Award multiplied by (2) the number of full months of employment during the Restricted Period divided by the number of full months in the Restricted Period. Any fractional share of the Corporation resulting from such a prorated award shall be rounded to the nearest whole share and shall be paid, along with any other shares earned under such prorated award, within 70 days following the Participant's termination of employment or within such later period as permitted by Section 409A of the U.S. Internal Revenue Code of 1986 and the regulations thereunder, as amended from time to time (the "Code"), subject to Section

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20(l) of the Plan, if applicable. Any fractional share of the Corporation resulting from such a prorated Award shall be rounded to the nearest whole share.

(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Shutdown or Divestiture</u>. In the event that after the Grant Date the Participant's termination of employment is due to the shutdown or divestiture of the Corporation's or its Affiliate's business, it shall result in pro rata vesting, as determined by the Committee, and the number of shares that are considered to vest shall be calculated as (1) the total number of RSUs granted under the Award minus the number of RSUs already vested under the Award multiplied by (2) the number of full months of employment during the Restricted Period divided by the number of full months in the Restricted Period. Any fractional share of the Corporation resulting from such a prorated award shall be rounded to the nearest whole share and shall be paid, along with any other shares earned under such prorated award, within 70 days following the Participant's termination of employment or within such later period as permitted by Section 409A of the Code. For the purposes of this Award, a shutdown or divestiture of the Corporation's or its Affiliate's business unit is defined as one for which the charges related to the shutdown or divestiture are accounted for, and reported externally, as an exit activity in the Corporation's applicable SEC filings. The Corporation has complete discretion to determine whether a shutdown or divestiture of a business unit has occurred under the terms of the Plan.

(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Qualified Termination of Employment</u>. In the event of a Qualified Termination of Employment, all restrictions will lapse, and the shares will become fully vested and shall be paid within 10 days following the last day of employment of the Participant with the Corporation or an Affiliate, subject to Section 20(l) of the Plan, if applicable.

(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Awards</u>. Unless otherwise set forth herein, the payment of the Award shall be made in shares of Common Stock and the payment of an Award shall be made within 70 days following the end of the Restricted Period.

(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Tax-Related Items</u>. No shares of Common Stock, nor any cash payment, may be delivered under this Award, unless prior to or simultaneously with such issuance, the Participant or, in the event of his death, the person succeeding to his rights hereunder, shall pay to the Corporation or an Affiliate, as applicable, such amount as the Corporation advises is required under applicable federal, state or local laws to withhold and pay over to governmental taxing authorities in relation to this Award. The Corporation may, in its discretion, withhold payment of required Tax-Related items (as defined in the Acknowledgment of Conditions section) with cash or shares of Common Stock which otherwise would be delivered following the date of vesting of the Award under this Section 2.

(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments to Key Employees</u>. Notwithstanding anything in this Agreement to the contrary, to the extent that the Award may constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code, the payment of an Award to a Key Employee who has separated from service due to a Qualified Termination of Employment, a Total and Permanent Disability, or a shutdown or divestiture of the Corporation's or its Affiliate's business (pursuant to Sections 2(c), 2(d) or 2(e) above, respectively) shall be made at the earlier of the first day of the seventh month following the date of separation from service or the end of the Restricted Period. A Key Employee is any Participant who meets the definition of a specified employee as defined in Section 409A(a)(2)(B)(i) of the Code and the regulations promulgated thereunder.

3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Nontransferability</u>. Neither the Award nor the Participant's right to receive payment for vested Awards may be assigned or transferred except upon the death of the Participant (i) by will or (ii) by the laws of descent and distribution.

4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Law</u>. No payment may be made under this Award, unless prior to the issuance thereof, the Corporation shall have received an opinion of counsel to the effect that this Award by the Corporation to the Participant will not constitute a violation of the U.S. Securities Act of 1933, as amended. As a condition of this Award, the Participant shall, if requested by the Corporation, submit a written statement in form satisfactory to counsel for the Corporation, to the effect that any shares received under this Award shall be for investment and not with a view to the distribution thereof within the meaning of the U.S. Securities Act of 1933, as amended, and the Corporation shall have the right, in

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its discretion, to cause the certificates representing shares hereunder to be appropriately legended to refer to such undertaking or to any legal restrictions imposed upon the transferability thereof by reason of such undertaking.

The Award granted hereby is subject to the condition that if the listing, registration or qualification of the shares subject hereto on any securities exchange or under any state or federal law, or if the consent or approval of any regulatory body shall be necessary as a condition of, or in connection with, the granting of the Award or the delivery of shares thereunder, such shares may not be delivered unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained. The Corporation agrees to use its best efforts to obtain any such requisite listing, registration, qualification, consent or approval.

The Participant is solely responsible for obtaining/providing whatever exchange control approvals, permits, licenses, or notices, which may be necessary for the Participant to hold the Award, or to receive any payment of cash or shares or to hold or sell the shares subject to the Award, if any. Neither the Corporation nor its Affiliates will be responsible for obtaining any such approvals, licenses or permits, or for making any such notices, nor will the Corporation or its Affiliates be liable for any fines or penalties the Participant may incur for failure to obtain any required approvals, permits or licenses or to make any required notices.

5.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Right of Continued Employment</u>. The granting of this Award does not confer upon the Participant any legal right to be continued in the employ of the Corporation or its Affiliates, and the Corporation and its Affiliates reserve the right to discharge the Participant whenever the interest of the Corporation or its Affiliates may so require without liability to the Corporation or its Affiliates, the Board of Directors of the Corporation or its Affiliates, or the Committee, except as to any rights which may be expressly conferred on the Participant under this Award.

6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Discretion of the Corporation, Board of Directors and the Committee</u>. Any decision made or action taken by the Corporation or by the Board of Directors of the Corporation or by the Committee arising out of or in connection with the construction, administration, interpretation and effect of this Award shall be within the absolute discretion of the Corporation, the Board of Directors of the Corporation or the Committee, as the case may be, and shall be conclusive and binding upon all persons.

7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Inalienability of Benefits and Interest</u>. This Award and the rights and privileges conferred hereby shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any such attempted action shall be void and no such benefit or interest shall be in any manner liable for or subject to debts, contracts, liabilities, engagements, or torts of the Participant.

8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law and Consent to Jurisdiction</u>. Subject to Section 19(h) below, all questions pertaining to the construction, interpretation, regulation, validity and effect of the provisions of this Award and any rights under the Plan shall be determined in accordance with the laws of the State of Delaware. The Corporation, its Affiliates, and the Participant (a) hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts in the State of Delaware for the purposes of any claim or action arising out of or based upon this Award Agreement or relating to the subject matter hereof; (b) hereby waive, to the extent not prohibited by applicable law, and agree not to assert by way of motion, as a defense or otherwise, in any such claim or action, any claim that it, he or she is not subject personally to the jurisdiction of the above-named courts, that its, his or her property is exempt or immune from attachment or execution, that any such proceeding brought in the above-named court is improper or that this Award Agreement or the subject matter hereof may not be enforced in or by such court; and (c) hereby agree not to commence any claim or action arising out of or based upon this Award Agreement or relating to the subject matter hereof other than before the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such claim or action to any court other than the above-named courts whether on the grounds of inconvenient forum or otherwise; provided, however, that the Corporation, its Affiliates, and the

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Participant may seek to enforce a judgment issued by the above-named courts in any proper jurisdiction. The Corporation, its Affiliates, and the Participant hereby consent to service of process in any such proceeding, and agree that service of process by registered or certified mail, return receipt requested is reasonably calculated to give actual notice.

9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase of Common Stock</u>. The Corporation and its Affiliates may, but shall not be required to, purchase shares of Common Stock of the Corporation for purposes of satisfying the requirements of this Award. The Corporation and its Affiliates shall have no obligation to retain and shall have the unlimited right to sell or otherwise deal with for their own account, any shares of Common Stock of the Corporation purchased for satisfying the requirements of this Award.

10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any notice to be given to the Corporation under this Award, except as required under Sections 19 and 20 below, shall be addressed to the Corporation in care of its Chief Human Resources Officer at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA, and any notice to be given to the Participant under the terms of this Award may be addressed to him or her at the address as it appears on the Corporation's records, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given if and when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, registered and deposited, postage and registry fee prepaid, in a post office or branch post office regularly maintained by the United States Government or any equivalent non-U.S. postal service.

11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Changes in Capitalization</u>. In the event there are any changes in the Common Stock or the capitalization of the Corporation through a corporate transaction, such as any merger, any acquisition through the issuance of capital stock of the Corporation, any consolidation, any separation of the Corporation (including a spin-off or other distribution of stock of the Corporation), any reorganization of the Corporation (whether or not such reorganization comes within the definition of such term in Section 368 of the Code), or any partial or complete liquidation by the Corporation, recapitalization, stock dividend, stock split or other change in the corporate structure, appropriate adjustments and changes shall be made by the Committee in (a) the number and type or class of shares subject to this Award, and (b) such other provisions of this Award as may be necessary and equitable to carry out the foregoing purposes.

12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect on Other Plans</u>. All benefits under this Award shall constitute special incentives and shall not affect the level of benefits provided to or received by the Participant (or the Participant's estate or beneficiaries) as part of any employee benefit plan of the Corporation or an Affiliate. This Award shall not be construed to affect in any way the Participant's rights and obligations under any other plan maintained by the Corporation or an Affiliate on behalf of employees.

13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Discretionary Nature of Award</u>. The grant of an Award is a one-time benefit and does not create any contractual or other right to receive a grant of Awards or benefits in lieu of Awards in the future. Future grants, if any, will be at the sole discretion of the Corporation, including, but not limited to, the timing of any grant, the number of RSUs and vesting provisions. The value of the Award is an extraordinary item outside the scope of the Participant's employment contract, if any. As such, the Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, leave-related payments, holiday pay, pension, retirement or welfare benefits or similar payments.

14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Data Privacy</u>. The Participant hereby authorizes their actual employer (the "Employer") to furnish the Corporation (and any agent of the Corporation administering the Plan or providing Plan recordkeeping services) with such information and data as it shall request in order to facilitate the grant of Awards and administration of the Plan and the Participant waives any data privacy rights such Participant might otherwise have with respect to such information. The Controller of personal data processing is Kimberly-Clark Corporation with registered offices at 351 Phelps Drive, Irving, Texas 75038, United States of America*.***

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15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Conflict with Plan or Other Documents</u>. This Award is awarded pursuant to and subject to the Plan. This Agreement is intended to supplement and carry out the terms of the Plan. It is subject to all terms and provisions of the Plan and, in the event of a conflict, the Plan shall prevail. In the event of any conflict between this Agreement and the terms of any notice, communication, plan summary, prospectus or other ancillary documentation relating to the Award, this Agreement will prevail.

16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>. This Award Agreement, including but not limited to the restrictive covenants described in Sections 19 and 20 below, shall be binding upon and inure to the benefit of any successor or successors of the Corporation.

17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments</u>. The Committee may at any time alter or amend this Award to the extent (a) permitted by law, (b) permitted by the rules of any stock exchange on which the Common Stock or any other security of the Corporation is listed, and (c) permitted under applicable provisions of the U.S. Securities Act of 1933, as amended, the U.S. Securities Exchange Act of 1934, as amended (including rule 16b-3 thereof).

18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. Terms which are capitalized are defined herein or in the Plan and have the same meaning set forth in the Plan, unless the context indicates otherwise.

19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants For U.S. Participants</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application</u>. The provisions of this Section 19 apply to Participants who are employed by the Corporation or an Affiliate located in the United States and are subject to the laws of the United States as of the date of termination of the Participant's employment; provided, however, that to the extent the Participant is party to an employment or other agreement with the Corporation or any Affiliate containing non-competition, non-solicitation, confidentiality, business ideas or similar restrictions (a "standalone restrictive covenant agreement"), whether or not such standalone restrictive covenant agreement has been agreed to before or after execution of this Award Agreement, that standalone restrictive covenant agreement and related enforcement provisions shall apply and the following provisions of this Section 19 shall also apply, unless otherwise determined by the Corporation in its sole discretion. Notwithstanding the foregoing, Section 19(l) below shall apply in any case.

(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Competition</u>. Subject to Section 19(h), it is acknowledged that the Participant has acquired or will acquire Confidential Information during the Participant's employment with the Corporation or any Affiliate, and should the Participant's employment cease, the Participant will inevitably use or disclose the Corporation's or an Affiliate's Confidential Information while working in a competitive role. It is further acknowledged that it may be difficult to police Section 19(e) below, prohibiting the disclosure of such Confidential Information as well as the non-solicitation sub-sections set out below. For these reasons, during the term of the Participant's employment with the Corporation or any Affiliate and for the applicable period listed in Appendix B of this Award Agreement following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, in any country or countries for which the Participant had development, marketing, innovation/technology (R&D), distribution, sales, administrative, operational/supply chain, manufacturing oversight, or other responsibilities during the last two (2) years of the Participant's employment or was provided with regular and material access to Confidential Information regarding the Corporation's or an Affiliate's business operations in that country or countries during the last two (2) years of the Participant's employment, either directly or indirectly, perform duties or undertake responsibilities (including without limitation as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, officer, volunteer, intern, or any other similar capacity) for a Competitor (as defined below) that are the same or substantially similar to those duties or responsibilities that the Participant performed or undertook for the Corporation or an Affiliate during the two (2) year period prior to the end of the Participant's employment with the Corporation or an Affiliate. "Confidential Information," for purposes of this Section 19, shall mean (i) statutory trade secrets; (ii) proprietary information developed or acquired by the Corporation that does not rise to the level of a statutorily protectable trade secret and is made the property of the Corporation through this mutual Agreement of the parties; and (iii) information that is otherwise legally protectable. Such Confidential Information includes, but is not

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(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation of Employees</u>. Subject to Section 19(h), for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date, and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate, or (ii) be otherwise involved in the recruitment of such person, to leave the employment of the Corporation or of any Affiliate. Furthermore, the Participant shall not for a period of two (2) years following the termination date, regardless of the reason for or the manner of termination, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor or (ii) be otherwise involved in the recruitment of such person to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor. The Participant must inform the Corporation immediately on becoming aware of any such recruitment.

(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation of Business</u>. Subject to Section 19(h), during the term of the Participant's employment and for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, either directly or indirectly, on the Participant's own behalf or on behalf of any other person, firm or company or other entity, solicit, interfere with, entice or endeavor to entice away from the Corporation or any Affiliate any Restricted Customer (as defined below), or seek to conduct Restricted Business (as defined below), or conduct Restricted Business, with any Restricted Customer and/or otherwise persuade, induce, solicit or encourage any person or entity to terminate its contractual relationship with the Corporation or any Affiliate. "Restricted Business," for purposes of this Section 19, means any business activity carried out by the Participant for the Corporation or any Affiliate during the last two (2) years preceding the

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Participant's termination date. "Restricted Customer," for purposes of this Section 19, means any person, firm or company or other entity who was a customer or distributor of the Corporation or any Affiliate as at the Participant's termination date, or during the last two (2) years preceding the Participant's termination date, and (i) with whom the Participant had material contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, or (ii) in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information, including any Prospective Customer. "Prospective Customer," for purposes of this Section 19, means any person, firm or company or other entity with whom the Corporation or any Affiliate was involved in negotiations as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, with a view to dealing with it as a customer and/or to conclude a contractual relationship with such entity, and where such negotiations have involved more than nominal expense or time commitment, and/or with whom the Participant had contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date with a view to dealing with it as a customer of the Corporation or any Affiliate and/or to conclude a contractual relationship with such entity or in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information.

(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>. Subject to Sections 19(f) and 19(h), the Participant acknowledges that the Corporation and its Affiliates continually develop Confidential Information, that the Participant may develop Confidential Information for the Corporation or its Affiliates and that the Participant may learn of Confidential Information during the course of the employment relationship. The Corporation has expended and will continue to expend substantial effort and monies in acquiring knowledge and expertise in developing goodwill in the Business of the Corporation. Participant therefore agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.The Participant will comply with the policies and procedures of the Corporation for protecting Confidential Information and shall not disclose to any person or use, other than as required by applicable law or for the proper performance of the Participant's duties and responsibilities to the Corporation and its Affiliates, any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.The Participant understands that the restrictions set forth in this Section 19(e) shall continue to apply after the employment relationship terminates, regardless of the reason for such termination. The Participant understands and acknowledges that the Participant's obligations under this Award Agreement with regard to any particular Confidential Information shall commence immediately upon the Participant first having access to such Confidential Information and shall continue during and after employment with the Corporation or an Affiliate until such time as such Confidential Information has become public knowledge other than as a result of the Participant's breach of this Award Agreement or breach by those acting in concert with the Participant or on the Participant's behalf, and shall be indefinite where permitted by state and local law, and shall not continue longer than two (2) years where indefinite confidentiality provisions are not permitted. Notwithstanding, the Participant's confidentiality obligations under this Award Agreement with regard to any trade secrets shall continue during and after the Participant 's employment by the Corporation or an Affiliate until such trade secrets are no longer trade secrets under applicable law.

(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Protected Rights</u>. Notwithstanding any other provision of this Award Agreement, nothing in this Award Agreement shall restrict the Participant's right to (i) report violations of law to law enforcement officials; (ii) give truthful testimony under oath in a judicial, administrative, or arbitral proceeding; (iii) file a charge with, make truthful statements to, cooperate with investigations by, or assist others in proceedings before state or federal governmental agencies or any other self-regulatory organization (including the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, the Financial Industry Regulatory Authority, and the U.S. Securities and Exchange Commission); (iv) speak with an attorney representing the Participant; (v) discuss the facts related to any claim of sexual assault or sexual harassment; (vi) engage in whistle-blower activity protected by the Securities

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Exchange Act of 1934, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or any rules or regulations issued thereunder (including Rule 21F-17); (vii) file or disclose any facts necessary to receive unemployment insurance, Medicaid, or other public benefits to which the Participant may be entitled; (viii) exercise rights under Section 7 of the National Labor Relations Act, including the right to discuss terms and conditions of employment with co-workers and labor unions; or (ix) otherwise disclose information that Participant is legally entitled to disclose pursuant to applicable law, provided that the disclosure does not exceed the extent of disclosure required by law. The Participant shall promptly provide written notice of any such order to an authorized officer of the Corporation or its Affiliates. In addition, pursuant to the Defend Trade Secrets Act of 2016, (i) the Participant shall not be held criminally, or civilly, liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence either directly or indirectly to a federal, state, or local government official, or an attorney, for the sole purpose of reporting, or investigating, a violation of law; (ii) the Participant agrees and understands that individuals may disclose trade secrets in a complaint, or other document, filed in a lawsuit, or other proceeding, if such filing is made under seal; and (iii) the Participant agrees and understands that an individual who files a lawsuit alleging retaliation by the Corporation or its Affiliates for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. For the avoidance of doubt, the Participant's past, present or future exercise of any rights described in this Section 19(f) shall not constitute a breach of this Award Agreement.

(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Business Ideas</u>. Subject to Section 19(h), the Participant acknowledges that the Corporation owns all rights in all Business Ideas (as defined below). For the avoidance of doubt, in the event an assignment is needed during the term of the Participant's employment with the Corporation or any Affiliate and at any time following the termination of employment, the Participant hereby assigns without further action being required to the Corporation all Business Ideas. The Participant shall promptly execute all documents which the Corporation may reasonably require to perfect, maintain and protect its patent, copyright, trade secret, trademark and any and all other rights to such Business Ideas throughout the world, and shall provide other reasonable assistance and cooperation as may be necessary for the Corporation to investigate, perfect, maintain and protect those rights, including assistance and cooperation with litigation relating to any Business Ideas. Even after the Participant's employment with the Corporation or any Affiliate terminates, the Participant will continue to be reasonably available to assist the Corporation with its efforts to investigate, perfect, maintain and protect rights in any Business Ideas, including assistance with litigation relating to any Business Ideas. "Business Ideas" as used in this Award Agreement means all ideas, concepts, innovations, inventions, strategy, data, developments, and works of authorship, whether or not patentable, both technical and business, which the Participant originates, conceives or develops, either alone or in conjunction with others, at any time during the Participant's employment with the Corporation or any Affiliate, except those which satisfy all three of the following criteria: (i) unrelated to the Corporation's business; (ii) not originated, conceived or developed during the Participant's working hours; and (iii) not originated, conceived or developed by use of any Corporation property such as tools, supplies, equipment, materials, facilities or other Corporation employees. Any idea, concept, innovation, invention, strategy, data, development or work of authorship that the Participant originates, conceives or develops, through the use of Corporation Confidential Information, at any time within six (6) months after the Participant's employment with the Corporation or any Affiliate terminates (for any reason) will be presumed to be a Business Idea unless the Participant can prove otherwise by clear and convincing evidence.

(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>State-Specific Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.If the Participant lives or works in **California** at the time of or after termination of employment, (A) Section 19(b), Section 19(c), and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends, and (B) the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of California for any dispute arising under this Agreement and that this Agreement shall be governed by California law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.If the Participant primarily lives or works in **Colorado** at the time of termination of employment, the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of Colorado for any dispute arising under Section 19(b) or Section 19(d) and that those Sections shall be governed by Colorado law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.If the Participant's principal place of employment is **Minnesota**, Section 19(b) does not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.If the Participant's principal place of employment is **North Dakota**, Section 19(b) and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.If the Participant's principal place of employment is **Oklahoma**, Section 19(b) and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.If the Participant's principal place of employment is **Washington**, the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of Washington for any dispute arising under Section 19(b) and that Section 19(b) shall be governed by Washington law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii.If the Participant's principal place of employment is a state listed the United States sub-section of ***Appendix A***, then the applicable provision(s) in ***Appendix A*** shall also apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii.This Award Agreement shall not require the Participant to assign the Participant's rights in any invention that qualifies fully for the protection of a state law applicable to the Participant that governs assignment of inventions, such as California Labor Code § 2870, which provides:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable*.

(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notification Requirement</u>. During the term of the Participant's employment with the Corporation or any Affiliate and for the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, regardless of the reason for or the manner of termination, the Participant agrees to notify the Corporation in writing prior to accepting new employment, or engaging in any other activity which may violate this Award Agreement, and the Participant agrees to provide in such notice information concerning the anticipated new employment or activity, including, but not limited to: name of new employer; address of new employer; name of new team leader; job title; and scope and responsibilities of the new position. The Participant recognizes that such duty of notification is not affected by the Participant's belief that such employment may perhaps not violate this Award Agreement or otherwise be unfairly competitive with the Corporation or an Affiliate. The Participant's written notice should be addressed to the Corporation's General Counsel with subject line Non-Competition Agreement, via email to <u>Noncompete.Notification@kcc.com</u>.

(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Notification</u>. During the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant shall provide a copy of Section 19 of this Award Agreement to each new employer before starting in any new employment. The Participant

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agrees that the Corporation may notify any third party about the Participant's obligations under Section 19 of this Award Agreement until such obligations are fulfilled.

(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Damages and Remedies</u>. In the event of an anticipated, threatened, or actual breach by the Participant of any of the provisions of this Section 19, the Corporation and its Affiliates shall be entitled to all damages available as a matter of law. The Participant acknowledges and agrees that any damages would not be an adequate remedy to compensate the Corporation or an Affiliate for the harm to the business of the Corporation or the Affiliate and, in such event, agrees that the Corporation or the Affiliate, as applicable, shall be entitled to a temporary restraining order and to injunctive relief to prevent or terminate such anticipated or actual breach, provided, however, that nothing in this Award Agreement shall be construed to limit any additional relief to which the Corporation or the Affiliate may be entitled or the damages otherwise recoverable by the Corporation or the Affiliate in any such event.

(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture of Award</u>. Notwithstanding the Corporation's or an Affiliate's ability to pursue injunctive relief pursuant to Section 19(k), in the event of an actual breach by the Participant of any of the provisions of this Section 19 or of any stand-alone restrictive covenant agreement, the Corporation also is entitled to: (i) require the Participant to repay to the Corporation, immediately upon demand, an amount equal to the value of the shares of Common Stock issued on settlement of the RSUs (less $1,000); and/or (ii) forfeit any portion of the Award that has not vested or been settled yet at the time the Corporation becomes aware of the breach.

(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement of Fees</u>. If the Participant violates any of the provisions of this Section 19, or any duty of loyalty or confidentiality imposed by law, in addition to any damages that the Participant may be required to pay, the Participant understands and agrees that the Participant shall be required to reimburse the Corporation for all its costs incurred to enforce this Award Agreement, including but not limited to, all attorneys' fees.

(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Beneficiaries</u>. For purposes of this Section 19, the Corporation and each of its Affiliates shall be deemed to be third-party beneficiaries with the right to seek enforcement of any of the provisions of this Section 19. Further, for purposes of this Section 19, references to acting directly or indirectly include acting jointly with or through another person.

(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Prior Restrictive Covenants</u>. Participant acknowledges and agrees that Participant is not a party to any agreement with any other company containing a confidentiality or noncompetition provision or other restriction that relates to the Business of the Corporation which Participant has not already disclosed to the Corporation or its Affiliates in writing. Participant understands that Participant is prohibited from disclosing or using during Participant's employment with the Corporation any confidential information or trade secrets that Participant acquired from any previous employer.

(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability and Reformation</u>. If any provision of this Section 19 is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such provision shall be deemed to be severed from the Award Agreement and such invalidity, illegality or unenforceability will not affect any other provision of the Award Agreement, all of which shall remain valid and enforceable. Notwithstanding the foregoing, if a court of competent jurisdiction determines that the covenants contained in this Section 19 are unenforceable because they are overbroad in some respect, to the full extent permitted by applicable law, the court should sever, revise or reform any aspect of this Section 19 so as to make the scope of such Section 19 as broad as reasonable under applicable law and enforce this Section 19 as so modified. Without limiting the foregoing, if a court, government agency or other body of competent jurisdiction establishes or the Corporation otherwise determines that the covenants contained in this Award Agreement are unenforceable and/or in violation of applicable rules, the Corporation reserves the right to unilaterally amend the Award Agreement so as to comply with applicable rules.

(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Advice to Seek Independent Counsel</u>. The Participant is hereby advised in writing to consult with an attorney before entering into the covenants outlined in this Section 19. The Participant acknowledges that prior to acceptance of this Award Agreement, the Participant has been advised by the Corporation of the Participant's right to seek independent advice from an attorney of the Participant's

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own selection regarding this Award Agreement, including the restraints imposed upon the Participant pursuant to this Section 19. The Participant acknowledges that the Participant has entered into this Award Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Award Agreement after being given the opportunity to consult with counsel. The Participant further represents that in entering into this Award Agreement, the Participant is not relying on any statements or representations made by any of the Corporations' directors, officers, employees or agents which are not expressly set forth herein, and that the Participant is relying only upon the Participant's own judgment and any advice provided by the Participant's attorney. The Participant acknowledges he or she has been provided at minimum 14 calendar days to review the provisions contained herein.

(r)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tolling</u>. Subject to Section 19(h), if the Participant violates any of the restrictions of this Section 19, the period for all such restrictions shall automatically be extended by the period the Participant was in violation of them.

(s)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgments</u>. The Participant acknowledges and agrees that employment with the Corporation or any Affiliate affords the Participant unique opportunities for professional and personal development; that the services rendered by the Participant to the Corporation or any Affiliate are of a special and unique character; that the Participant will obtain knowledge and skill relevant to the Corporation's industry, methods of doing business, and strategies by virtue of the Participant's employment; that the Participant may be able to utilize such knowledge to the detriment of the Corporation and its Affiliates; and that the terms and conditions of this Section 19 are reasonable under the circumstances. The Participant further acknowledges that the Participant will not be subject to undue hardship by reason of the Participant's full compliance with the terms and conditions of this Section 19 or the Corporation's or its Affiliate's enforcement thereof.

20.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants For Participants Outside the U.S</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application</u>. The provisions of this Section 20 apply to Participants who are employed by an Affiliate located outside the United States and are subject to the laws of a jurisdiction outside of the United States as of the date of termination of the Participant's employment, provided, however, that to the extent the Participant is party to an employment or other agreement with any Affiliate containing non-competition, non-solicitation, confidentiality, business ideas or similar restrictions (the "local restrictive covenants"), whether or not such local restrictive covenants have been agreed to before or after execution of this Award Agreement, those local restrictive covenants and related enforcement provisions shall apply and the following provisions of this Section 20 shall also apply, unless otherwise determined by the Corporation in its sole discretion. Notwithstanding the foregoing, Section 20(j) below shall apply in any case.

(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>. During the Participant's employment with the Corporation or any Affiliate and indefinitely thereafter, the Participant undertakes to maintain the confidentiality of, and not to divulge to any person (except as required by law) any of the Corporation's or any Affiliate's Confidential Information (as defined below), nor use the same for any other purpose, other than to carry out the Participant's functions as an employee of the Corporation or any of its Affiliates. The Participant shall use all personal endeavors to prevent publication or disclosure of such Confidential Information. The Participant will comply with the policies and procedures of the Corporation for protecting Confidential Information and shall not disclose to any person or use, other than as required by applicable law or for the proper performance of the Participant's duties and responsibilities to the Corporation and its Affiliates, any Confidential Information. Nothing in this Award Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order, including initiating, testifying, assisting, complying with a subpoena from, or participating in any manner with an investigation conducted by a local agency, filing or disclosing any facts necessary to receive social insurance or other public benefits. The Participant shall promptly provide written notice of any such order to an authorized officer of the Corporation. Nothing in this Award Agreement prohibits or restricts the Participant (or Participant's attorney) from initiating communications directly with,

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(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Competition</u>. It is acknowledged that the Participant has acquired or will acquire Confidential Information during the Participant's employment with the Corporation or any Affiliate, and should the Participant's employment cease, the Participant will inevitably use or disclose the Corporation's or an Affiliate's Confidential Information while working in a competitive role. It is further acknowledged that it may be difficult to police Section 20(b) above, prohibiting the disclosure of such Confidential Information as well as the non-solicitation sub-sections set out below. For these reasons, during the term of the Participant's employment and for the applicable period listed in Appendix B of this Award Agreement following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, in any country or countries for which Participant had development, marketing, innovation/technology (R&D), distribution, sales, administrative, operational/supply chain, manufacturing oversight, or other responsibilities during the last two (2) years of Participant's employment or was provided with regular and material access to Confidential Information regarding the Corporation's or an Affiliate's business operations in that country or countries during the last two (2) years of Participant's employment, either directly or indirectly, perform duties or undertake responsibilities (including without limitation as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, officer, volunteer, intern, or any other similar capacity) for a Competitor that are the same or substantially similar to those duties or responsibilities that the Participant performed or undertook for the Corporation or an Affiliate during the two (2) year period prior to the end of the Participant's employment with the Corporation or an Affiliate.

(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Business Ideas</u>. The Participant acknowledges that the Corporation owns all rights in all Business Ideas (as defined below). For the avoidance of doubt, in the event an assignment is needed during the term of the Participant's employment with the Corporation or any Affiliate and at any time

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following the termination of employment, the Participant hereby assigns without further action being required to the Employer all Business Ideas. The Participant shall promptly execute all documents which the Corporation may reasonably require to perfect, maintain and protect its patent, copyright, trade secret, trademark and any and all other rights to such Business Ideas throughout the world, and shall provide other reasonable assistance and cooperation as may be necessary for the Corporation or the Employer to investigate, perfect, maintain and protect those rights, including assistance and cooperation with litigation relating to any Business Ideas. Even after the Participant's employment with the Corporation or any Affiliate terminates, the Participant will continue to be reasonably available to assist the Corporation or the Employer with its efforts to investigate, perfect, maintain and protect rights in any Business Ideas, including assistance with litigation relating to any Business Ideas. "Business Ideas" as used in this Award Agreement means all ideas, concepts, innovations, inventions, strategy, data, developments, and works of authorship, whether or not patentable, both technical and business, which the Participant originates, conceives or develops, either alone or in conjunction with others, at any time during the Participant's employment with the Corporation or any Affiliate, except those which satisfy all three of the following criteria: (i) unrelated to the Corporation's business; (ii) not originated, conceived or developed during the Participant's working hours; and (iii) not originated, conceived or developed by use of any Corporation property such as tools, supplies, equipment, materials, facilities or other Corporation employees. Any idea, concept, innovation, invention, strategy, data, development or work of authorship that the Participant originates, conceives or develops, through the use of Corporation Confidential Information, at any time within six (6) months after the Participant's employment with the Corporation or any Affiliate terminates (for any reason) will be presumed to be a Business Idea unless the Participant can prove otherwise by clear and convincing evidence.

(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notification Requirement</u>. During the term of the Participant's employment with the Corporation or any Affiliate and for the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant agrees to notify the Corporation in writing prior to accepting new employment, or engaging in any other activity which may violate this Award Agreement, and the Participant agrees to provide in such notice information concerning the anticipated new employment or activity, including, but not limited to: name of new employer; address of new employer; name of new team leader; job title; and scope and responsibilities of the new position. The Participant recognizes that such duty of notification is not affected by the Participant's belief that such employment may perhaps not violate this Award Agreement or otherwise be unfairly competitive with the Corporation or an Affiliate. The Participant's written notice should be addressed to the Corporation's General Counsel with subject line Non-Competition Agreement, via email to <u>Noncompete.Notification@kcc.com</u>.

(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Notification</u>. During the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant shall provide a copy of Section 20 of this Award Agreement to each new employer before starting in any new employment. The Participant agrees that the Corporation may notify any third party about the Participant's obligations under Section 20 of this Award Agreement until such obligations are fulfilled.

(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation of Business</u>. During the term of the Participant's employment and for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, either directly or indirectly, on the Participant's own behalf or on behalf of any other person, firm or company or other entity, solicit, interfere with, entice or endeavor to entice away from the Corporation or any Affiliate any Restricted Customer (as defined below), or seek to conduct Restricted Business(as defined below), or conduct Restricted Business, with any Restricted Customer and/or otherwise persuade, induce, solicit or encourage any person or entity to terminate its contractual relationship with the Corporation or any Affiliate. "Restricted Business," for purposes of this Section 20, means any business activity carried out by the Participant for the Corporation or any Affiliate during the last two (2) years preceding the Participant's termination date. "Restricted Customer," for purposes of this Section 20, means any person, firm or company or other entity who was a customer or distributor of the Corporation or any Affiliate as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, and (i) with whom the Participant had material contact at the Participant's termination Date, or during the last two (2) years preceding the Participant's

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termination date, or (ii) in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidentil Information, including any Prospective Customer. "Prospective Customer," for purposes of this Section 20, means any person, firm or company or other entity with whom the Corporation or any Affiliate was involved in negotiations as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, with a view to dealing with it as a customer and/or to conclude a contractual relationship with such entity, and where such negotiations have involved more than nominal expense or time commitment, and/or with whom the Participant had contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date with a view to dealing with it as a customer of the Corporation or any Affiliate and/or to conclude a contractual relationship with such entity or in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information.

(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation of Employees</u>. For a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate, or (ii) be otherwise involved in the recruitment of such person, to leave the employment of the Corporation or of any Affiliate. Furthermore, the Participant shall not for a period of two (2) years following the termination date regardless of the reason for or the manner of termination, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor or (ii) be otherwise involved in the recruitment of such person to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor. The Participant must inform the Corporation immediately on becoming aware of any such recruitment.

(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Damages and Remedies</u>. In the event of an anticipated, threatened, or actual breach by the Participant of any of the provisions of this Section 20, the Corporation and its Affiliates shall be entitled to all damages available as a matter of law. The Participant acknowledges and agrees that any damages would not be an adequate remedy to compensate the Corporation or an Affiliate for the harm to the business of the Corporation or the Affiliate and, in such event, agrees that the Corporation or the Affiliate, as applicable, shall be entitled to a temporary restraining order and to injunctive relief to prevent or terminate such anticipated or actual breach, provided, however, that nothing in this Award Agreement shall be construed to limit any additional relief to which the Corporation or the Affiliate may be entitled or the damages otherwise recoverable by the Corporation or the Affiliate in any such event.

(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture of Award</u>. Notwithstanding the Corporation's or an Affiliate's ability to pursue injunctive relief pursuant to Section 20(i), in the event of an actual breach by the Participant of any of the provisions of this Section 20 or of any local restrictive covenant agreement, the Corporation also is entitled to: (i) require the Participant to repay to the Corporation, immediately upon demand, an amount equal to the value of the shares of Common Stock issued on settlement of the RSUs (less $1,000); and (ii) forfeit any portion of the Award that has not vested or been settled yet at the time the Corporation becomes aware of the breach.

(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement of Fees</u>. If the Participant violates any of the provisions of this Section 20, or any duty of loyalty or confidentiality imposed by law, in addition to any damages that the Participant may be required to pay, the Participant understands and agrees that the Participant shall be required to reimburse the Corporation for all its costs incurred to enforce this Award Agreement, including but not limited to, all attorneys' fees.

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(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Beneficiaries</u>. For purposes of this Section 20, the Corporation and each of its Affiliates shall be deemed to be third party beneficiaries with the right to seek enforcement of any of the provisions of this Section 20. Further, for purposes of this Section 20, references to acting directly or indirectly include acting jointly with or through another person.

(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Prior Restrictive Covenants</u>. Participant acknowledges and agrees that Participant is not a party to any agreement with any other company containing a confidentiality or noncompetition provision or other restriction that relates to the Business of the Corporation which Participant has not already disclosed to the Corporation or its Affiliates in writing. Participant understands that Participant is prohibited from disclosing or using during Participant's employment with the Corporation any confidential information or trade secrets that Participant acquired from any previous employer.

(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability and Reformation</u>. If any provision of this Section 20 is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such provision shall be deemed to be severed from the Award Agreement and such invalidity, illegality or unenforceability will not affect any other provision of the Award Agreement, all of which shall remain valid and enforceable. Notwithstanding the foregoing, if a court of competent jurisdiction determines that the covenants contained in this Section 20 are unenforceable because they are overbroad in some respect, to the full extent permitted by applicable law, the court should sever, revise or reform any aspect of this Section 20 so as to make the scope of such Section 20 as broad as reasonable under applicable law and enforce this Section 20 as so modified. Without limiting the foregoing, if a court, government agency or other body of competent jurisdiction establishes or the Corporation otherwise determines that the covenants contained in this Award Agreement are unenforceable and/or in violation of applicable rules, the Corporation reserves the right to unilaterally amend the Award Agreement so as to comply with applicable rules.

(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tolling</u>. If the Participant violates any of the restrictions of this Section 20, the period for all such restrictions shall automatically be extended by the period the Participant was in violation of them.

(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgments</u>. The Participant acknowledges and agrees that employment with the Corporation or any Affiliate affords the Participant unique opportunities for professional and personal development; that the services rendered by the Participant to the Corporation or any Affiliate are of a special and unique character; that the Participant will obtain knowledge and skill relevant to the Corporation's industry, methods of doing business, and strategies by virtue of the Participant's employment; that the Participant may be able to utilize such knowledge to the detriment of the Corporation and its Affiliates; and that the terms and conditions of this Section 20 are reasonable under the circumstances. The Participant further acknowledges that the Participant will not be subject to undue hardship by reason of the Participant's full compliance with the terms and conditions of this Section 20 or the Corporation's or its Affiliates' enforcement thereof.

(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Advice to Seek Independent Counsel</u>. The Participant is hereby advised in writing to consult with an attorney before entering into the covenants outlined in this Section 20. The Participant acknowledges that prior to acceptance of this Award Agreement, the Participant has been advised by the Corporation of the Participant's right to seek independent advice from an attorney of the Participant's own selection regarding this Award Agreement, including the restraints imposed upon the Participant pursuant to this Section 20. The Participant acknowledges that the Participant has entered into this Award Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Award Agreement after being given the opportunity to consult with counsel. The Participant further represents that in entering into this Award Agreement, the Participant is not relying on any statements or representations made by any of the Corporations' directors, officers, employees or agents which are not expressly set forth herein, and that the Participant is relying only upon the Participant's own judgment and any advice provided by the Participant's attorney.

21.&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture and Recoupment</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;The RSUs are subject to the compensation recovery provisions of the Plan. In addition, the RSUs are subject to the Kimberly-Clark Corporation Compensation Recoupment Policy (such policy, as

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it may be amended from time to time, the "Recoupment Policy") if the Participant is a Leader (as defined in the Recoupment Policy). The RSUs are also subject to the Kimberly-Clark Corporation Executive Officer Incentive Compensation Recovery Policy (such policy, as it may be amended from time to time, the "Recovery Policy") if the Participant is a Covered Person (as defined in the Recovery Policy). The RSUs are also subject to forfeiture and/or recoupment pursuant to Sections 19(l) and 20(j) herein. A recovery under this Award Agreement may be made by (i) cancelling any RSUs which have not yet vested or been settled; (ii) recovering shares of Common Stock or cash equal to the value of the shares of Common Stock issued on settlement of the RSUs, including shares resulting from dividend equivalents; (iii) recovering proceeds realized by the Participant on the sale of such Common Stock; (iv) withholding compensation otherwise due to the Participant; (v) payment by the Participant; and/or (vi) by such other means determined appropriate under the terms of the Recoupment Policy and/or the Recovery Policy. If the Participant is required to repay the Corporation, the Corporation is entitled to offset the payment in a way that is intended to avoid the application of penalties under Section 409A of the Code, if applicable.

Without limiting the foregoing, if, following a Participant's termination of employment for a reason other than the Participant's termination for Cause, the Corporation discovers facts that such Participant's termination of employment could have been for Cause, such Participant's termination of employment will be deemed to have been for Cause for all purposes, and as a result, (i) the Corporation will not issue shares of Common Stock or any other benefit otherwise payable to the Participant under the Plan and (ii) the Participant will be required to repay to the Corporation all proceeds received under the Plan that would not have been payable to such Participant had such termination of employment been for Cause.

The Corporation shall have the right to suspend any and all rights or benefits awarded to the Participant hereunder, including vesting and settlement of the RSUs, pending its investigation and final determination with regard to whether the Participant has engaged in conduct constituting Cause or that would warrant application of the Recoupment Policy or Recovery Policy.

(b)&nbsp;&nbsp;&nbsp;&nbsp;By accepting the Award Grant and the terms of this Award Agreement, the Participant understands, acknowledges and accepts that the grant, shares of Common Stock issued under the Plan and proceeds realized by the Participant pursuant to the Plan are subject to the terms of the Recoupment Policy and the Recovery Policy, which the Participant has reviewed and understands, and the Corporation may seek recovery by any of the methods described in Section 21(a) or other such means determined appropriate under the terms of the Recoupment Policy and/or the Recovery Policy.

22.&nbsp;&nbsp;&nbsp;&nbsp;<u>Whistleblower Statutes</u>. Notwithstanding anything to the contrary in this Award Agreement, nothing in Sections 19 , 20 or 21 of this Award Agreement is intended to or shall limit, prevent, impede or interfere with the Participant's non-waivable right, without prior notice to the Corporation, to provide information to the government, participate in investigations, testify in proceedings regarding the Corporation, Employer or any Affiliate's past or future conduct, engage in any activities protected under whistleblower statutes, or to receive and fully retain a monetary award from a government-administered whistleblower award program for providing information directly to a government agency. The Participant does not need prior authorization from the Corporation to make any such reports or disclosures and is not required to notify the Corporation that the Participant has made such reports or disclosures.

23.&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 409A</u>. It is the intent of this Award Agreement that it and all payments and benefits hereunder be exempt from, or comply with, the requirements of Section 409A of the Code so that none of the RSUs provided under this Award Agreement or shares of Common Stock issuable thereunder will be subject to the additional tax imposed under Section 409A of the Code, and any ambiguities herein will be interpreted to be so exempt or so comply.

24.&nbsp;&nbsp;&nbsp;&nbsp;<u>Acceptance of Award Terms and Conditions</u>. A Participant has until the end of the ninety (90) day period beginning from the Grant Date of this Award to accept this Award Agreement. If the Participant does not accept this Award Agreement on or before the end of such ninety (90) day period then the grant of the Award, as set forth in Section 1, shall not be binding on and shall be voidable by the Corporation, in which case it shall have no further force or effect.

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**<u>Acknowledgment of Conditions</u>**

The Participant understands, acknowledges and agrees to the following conditions with respect to the Award granted under the Plan:

The Plan is established voluntarily by the Corporation, is discretionary in nature and may be modified, amended, suspended, cancelled or terminated at any time, to the extent permitted by the Plan. The grant of an Award is an exceptional, voluntary and occasional benefit and does not create any contractual or other right to receive an Award or benefits in lieu of an Award in the future, even if Awards have been granted in the past. Future grants, if any, will be at the sole discretion of the Corporation, including, but not limited to, the timing of any grant, the number of Awards and vesting provisions.

Participation in the Plan is voluntary and does not create a right to employment with the Participant's Employer, shall not be interpreted as forming an employment or service contract with the Corporation, and shall not interfere with the ability of the Employer to terminate the Participant's employment relationship at any time. The Participant understands that the Corporation has unilaterally, gratuitously and discretionally decided to grant Awards under the Plan to individuals who are employees of the Corporation or its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Corporation or any of its Affiliates on an ongoing basis. Consequently, the Participant understands that any grant is given on the assumption and condition that it shall not become a part of any employment contract (either with the Corporation or any of its Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further, the Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of the Award and the underlying shares is unknown and unpredictable. In addition, the Participant understands that this grant would not be made but for the assumptions and conditions referred to above; thus, the Participant understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the Award shall be null and void.

The Award and the shares of Common Stock subject to the Award, and the income from and value of same, are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Corporation or, if different, the Employer, and which are outside the scope of the Participant's employment contract, if any, and are not intended to replace any pension rights or compensation. As such, the Award, and the income from and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, leave-related payments, holiday pay, pension, retirement or welfare benefits or similar payments and in no event shall be considered as compensation for, or relating in any way to, past services for the Corporation, the Employer or any other Affiliate.

Unless otherwise agreed with the Corporation, the Award and shares of Common Stock subject to the Award, and the income from and value of same, are not granted as consideration for, or in connection with, any service the Participant may provide as a director of any Affiliate.

The future value of the underlying shares of Common Stock is unknown, indeterminable, and cannot be predicted with certainty.

No claim or entitlement to compensation or damages shall arise from forfeiture of the Award or recoupment of any shares of Common Stock acquired under the Plan resulting from (a) the termination of the Participant's employment by the Corporation or the Employer (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws); and/or (b) an actual breach by the Participant of Section 19, Section 20, any stand-alone restrictive covenant agreement, or any local restrictive covenant agreement; and/or (c) the application of the Corporation's Recoupment Policy, Recovery Policy, or any recovery or clawback policy required by law.

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The Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding participation in the Plan, or the acquisition or sale of the underlying shares of Common Stock. Further, the Participant understands that he or she should consult with his or her own advisors regarding participation in the Plan before taking any action related to the Plan.

Neither the Corporation, the Employer nor any other Affiliate shall be liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to the Participant pursuant to the settlement of the RSUs or the subsequent sale of any shares of Common Stock acquired upon settlement.

Regardless of any action the Corporation or the Employer takes with respect to any or all income tax (including federal, state and local taxes), social insurance, fringe benefit tax, payroll tax, payment on account or other tax-related items related to the Participant's participation in the Plan and legally applicable to the Participant ("Tax-Related Items"), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant's responsibility and may exceed the amount, if any, actually withheld by the Corporation or the Employer. The Participant further acknowledges that the Corporation and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant of the RSUs, the vesting of RSUs, the conversion of the RSUs into shares or the receipt of an equivalent cash payment, the subsequent sale of any shares acquired at vesting and the receipt of any dividends or dividend equivalents; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant is subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Corporation and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

In connection with the relevant taxable or tax withholding event, as applicable, the Participant shall pay or make adequate arrangements satisfactory to the Corporation and/or the Employer to satisfy or account for all applicable withholding obligations for Tax-Related Items. In this regard, the Participant authorizes the Corporation or the Employer, or their respective agents, at their discretion, to satisfy their withholding obligations, if any, with regard to all Tax-Related Items by one or a combination of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;withholding from the Participant's wages or other cash compensation paid to the Participant by the Corporation and/or the Employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;withholding from the proceeds of the sale of shares acquired upon vesting of the Award either through a voluntary sale or through a mandatory sale arranged by the Corporation (on the Participant's behalf, pursuant to this authorization); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;withholding shares to be issued upon vesting of the Award;

provided, however, that if the Participant is subject to Section 16 of the U.S. Securities Exchange Act of 1934, as amended, then the Corporation will withhold in shares upon the relevant taxable or tax withholding event, as applicable, unless the use of such withholding method is not feasible under applicable tax or law or has materially adverse accounting consequences, in which case, the obligation for Tax-Related Items may be satisfied by one or a combination of methods (1), (2) and (3) above.

The Corporation may withhold or account for Tax-Related Items by considering applicable statutory withholding amounts or other applicable withholding rates, including minimum rates or maximum applicable rates in applicable jurisdictions. In the event of over-withholding, the Participant may receive a refund of any over-withheld amount in cash (with no entitlement to the common stock equivalent), or if not refunded, the Participant may seek a refund from the applicable tax authorities. In the event of under-withholding, the Participant may be required to pay additional Tax-Related Items directly to the applicable tax authorities or to the Corporation or the Employer. If the obligation for Tax-Related Items is satisfied by withholding in shares, for tax purposes, the Participant is deemed to have been issued the full number of shares subject to the Award, notwithstanding that a number of shares is held back solely

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for the purpose of paying the Tax-Related Items due as a result of any aspect of the Participant's participation in the Plan.

The Participant shall pay to the Corporation or to the Employer any amount of Tax-Related Items that the Corporation or the Employer may be required to withhold or account for as a result of the Participant's participation in the Plan that cannot be satisfied by the means previously described. The Corporation may refuse to deliver shares or the proceeds of the sale of shares to the Participant if he or she fails to comply with his or her obligations in connection with the Tax-Related Items.

The Corporation is located at 351 Phelps Drive Irving, TX 75038, USA and grants employees of the Corporation and its Affiliates the opportunity to participate in the Plan, at the Corporation's sole discretion. If the Participant would like to participate in the Plan and is an employee in a country outside the European Economic Area, the Participant understands that he or she should review the following information about the Corporation's data processing practices and declare his or her consent. If the Participant is an employee in a country that is a member of the European Economic Area, the Participant should review the information about the Corporation's data processing practices set forth in Appendix A attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)*Data Collection and Usage. The Corporation collects, processes and uses the Participant's personal data, including, name, home address, email address and telephone number, date of birth, social insurance number, passport or other identification number, salary, citizenship, nationality, job title, any shares of stock or directorships held in the Corporation, and details of all awards, canceled, vested, or outstanding in the Participant's favor, which the Corporation receives from the Participant or the Participant's Employer. If the Corporation offers the Participant the opportunity to participate in the Plan, then the Corporation will collect the Participant's personal data for purposes of allocating stock and implementing, administering and managing the Plan. The Corporation's legal basis for the processing of the Participant's personal data would be the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)*Stock Plan Administration Service Providers. The Corporation transfers participant data to Merrill Lynch, an independent service provider based in the United States, which assists the Corporation with the implementation, administration and management of the Plan. In the future, the Corporation may select a different service provider and share the Participant's data with another company that serves in a similar manner. The Corporation's service provider will open an account for the Participant. The Participant will be asked to agree on separate terms and data processing practices with the service provider, which is a condition for participation in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)*International Data Transfers. The Corporation and its service providers are based in the United States. If the Participant is outside of the United States, the Participant should note that his or her country may have enacted data privacy laws that are different from the United States. The Corporation's legal basis for the transfer of the Participant's personal data is the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)*Data Retention. The Corporation will use the Participant's personal data only as long as is necessary to implement, administer and manage his or her participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws. This period may extend until the Participant's employment or service with the Corporation is terminated, plus any additional time periods necessary for compliance with law, exercise or defense of legal rights, and archiving, back-up and deletion processes.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)*Voluntariness and Consequences of Consent Denial or Withdrawal. The Participant's participation in the Plan and the Participant's grant of consent is purely voluntary. The Participant may deny or withdraw his or her consent at any time. If the Participant does not consent, or if he or she withdraws their consent, the Participant cannot participate in***

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***the Plan. This would not affect the Participant's salary as an employee; the Participant would merely forfeit the opportunities associated with the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)*Data Subject Rights. The Participant has a number of rights under data privacy laws in his or her country. Depending on where the Participant is based, the Participant's rights may include the right to (i) request access or copies of personal data the Corporation processes, (ii) rectification of incorrect data, (iii) deletion of data, (iv) restrictions on processing, (v) portability of data, (vi) to lodge complaints with competent authorities in the Participant's country, and/or (vii) a list with the names and addresses of any potential recipients of the Participant's personal data. To receive clarification regarding the Participant's rights or to exercise the rights please contact the Corporation at Attn: Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA.***

The Participant also understands that the Corporation may rely on a different legal basis for the processing or transfer of data in the future and/or request that the Participant provides another data privacy consent. If applicable and upon request of the Corporation, the Participant agrees to provide an executed acknowledgment or data privacy consent form to the Corporation or the Employer (or any other acknowledgments, agreements or consents) that the Corporation and/or the Employer may deem necessary to obtain under the data privacy laws in the Participant's country, either now or in the future. The Participant understands that he or she will not be able to participate in the Plan if the Participant fails to execute any such acknowledgment, agreement or consent requested by the Corporation and/or the Employer.

If the Participant agrees with the data processing practices described in this notice, the Participant will declare his or her consent by clicking the "Accept" icon on the Merrill Lynch website.

The Participant understands that he or she is solely responsible for obtaining/providing whatever exchange control approvals, permits, licenses or notices, which may be necessary for the Award, to acquire the shares or to hold or sell the shares subject to the Award. Neither the Corporation nor its Affiliates will be responsible for obtaining such approvals, licenses or permits, or for making any such notices, nor will the Corporation or its Affiliates be liable for any fines or penalties the Participant may incur for failure to obtain any required approvals, permits or licenses or to make any required notices.

In accepting the grant of this Award, the Participant acknowledges that he or she has received a copy of the Plan and the Award Agreement and has reviewed the Plan and the Award Agreement, including Appendix A and Appendix B, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including Appendix A and Appendix B.

The Participant acknowledges that he or she has read and specifically and expressly approves the following sections of the Award Agreement: Section 2(g) on Payment of Tax-Related Items; Section 5 on No Right of Continued Employment; Section 8 on Governing Law and Consent to Jurisdiction; the section on Acknowledgment of Conditions; and the Data Privacy Notice sections of both the Award Agreement and Appendix A for the Participant's country.

Subject to Sections 19(p) and 20(n), the provisions of this Award Agreement are severable and if one or more of the provisions of this Award Agreement shall be held invalid, illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nonetheless be binding and enforceable. To the extent that any provisions of this Award Agreement are held to be invalid or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so as to foster the intent of this Award Agreement and the Plan.

The Participant acknowledges that he or she is sufficiently proficient in English, or has consulted with an advisor who is sufficiently proficient in English, so as to allow the Participant to understand the terms and conditions of this Award Agreement. Furthermore, if the Participant has received this Award

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Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

Notwithstanding any provisions in this Award Agreement, the Award shall be subject to any additional terms and conditions set forth in Appendix A to this Award Agreement for the Participant's country. Moreover, if the Participant relocates to any of the countries included in Appendix A, the additional terms and conditions for such country will apply to the Participant, to the extent the Corporation determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Appendix A and Appendix B constitute part of this Award Agreement.

The Participant acknowledges that the grant of an Award is expressly conditioned on the restrictive covenants set forth in Sections 19 and 20.

The Corporation reserves the right to impose other requirements on the Participant's participation in the Plan, on the Award and on any shares acquired under the Plan, to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by on-line delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third-party designated by the Corporation.

A waiver by the Corporation of breach of any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by the Participant or any other participant.

The Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect the Participant's ability to, directly or indirectly, accept, acquire, sell, or attempt to sell or otherwise dispose of shares of Common Stock or rights to shares of Common Stock (*e.g*., RSUs), or rights linked to the value of shares of Common Stock during such times as the Participant is considered to have "inside information" regarding the Corporation (as defined by the laws in the applicable jurisdictions or the Participant's country). Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Participant placed before possessing inside information. Furthermore, the Participant may be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a "need to know" basis) and (ii) "tipping" third parties or causing them to otherwise buy or sell Corporation securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Corporation insider trading policy. The Participant is responsible for ensuring his or her compliance with any applicable restrictions and is advised to speak with his or her personal legal advisor on this matter.

The Participant's country may have certain foreign asset and/or foreign account reporting requirements, tax and/or exchange controls which may affect the Participant's ability to acquire or hold shares of Common Stock acquired under the Plan or cash received from participating in the Plan (including from any dividends paid on shares acquired under the Plan) in a brokerage or bank account outside the Participant's country. The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant's country. The Participant also may be required to repatriate sale proceeds or other funds received as a result of his or her participation in the Plan to the Participant's country through a designated bank or broker within a certain time after receipt. In addition, the Participant agrees to take any and all actions, and consent to any and all actions taken by the Corporation or the Employer as may be required to allow the Corporation or the Employer to comply with local laws, rules and regulations in the Participant's country of residence (and country of employment, if different). Finally, the Participant agrees to take any and all actions as may be required to comply with their personal legal and tax obligations under local laws, rules and regulations in their

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country of residence (and country of employment, if different). The Participant should consult his or her personal legal advisor for any details.

The Participant acknowledges that he or she has reviewed the Corporation's Code of Conduct. The Participant further acknowledges that he or she understands and will comply with the terms and standards contained in that Code of Conduct, including but not limited to the prohibition against retaliation, and specifically acknowledges that he or she has an obligation to report suspected violations of the Code of Conduct pursuant to the Corporation's Escalation Policy.

**Conclusion and Acceptance**

The Participant accepts this grant via electronic signature by clicking the "Accept" icon and certifies that he or she has read, understands and agrees to the terms and conditions of the 2021 Equity Participation Plan (the "Plan"), the provisions of the applicable Award Agreement and all other applicable documents (including any country-specific terms applicable to the Participant's grant). The Participant hereby authorizes the Employer to furnish the Corporation (and any agent administering the Plan or providing recordkeeping services) with such information and data as it shall request in order to facilitate the grant of Awards and enable administration of the Plan and the Participant understands that such information shall be used only as long and to the extent necessary to administer the Participant's participation in the Plan. The Participant agrees that his or her participation in the Plan and the Awards granted to the Participant under the Plan will be governed solely by Delaware law.

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**KIMBERLY-CLARK CORPORATION**

**OFF-CYCLE TIME-VESTED RESTRICTED STOCK UNIT**

**AWARD AGREEMENT** 

**APPENDIX A**

Certain capitalized terms used but not defined in this Appendix A have the meanings set forth in the Plan and/or the Award Agreement.

This Appendix A includes additional terms and conditions that govern the Award granted to the Participant under the Plan if the Participant resides and/or works in any of the countries listed below.

This Appendix A also includes information regarding exchange controls and certain other issues of which the Participant should be aware with respect to the Participant's participation in the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of March 2025. Such laws are often complex and change frequently. As a result, the Participant should not rely on the information noted herein as the only source of information relating to the consequences of the Participant's participation in the Plan because the information may be out of date at vesting of the Award or the subsequent sale of the shares or receipt of any dividends or dividend equivalents.

In addition, the information is general in nature and may not apply to the Participant's particular situation, and the Corporation is not in a position to assure the Participant of any particular result. Accordingly, the Participant is advised to seek appropriate professional advice as to how the relevant laws in the Participant's country may apply to the Participant's situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which the Participant is currently residing and/or working, transferred or transfers employment and or residency after the Award is granted or is considered a resident of another country for local law purposes, the information contained herein may not be applicable to the Participant. The Corporation shall, in its sole discretion, determine to what extent the terms and conditions included herein will apply to the Participant in such circumstances.

**EUROPEAN ECONOMIC AREA (INCLUDING THE UNITED KINGDOM) AND SWITZERLAND**

*Data Protection*

For Participants resident in a country in the European Economic Area, Switzerland or the United Kingdom, the following language replaces in its entirety the data privacy section in the Acknowledgment of Conditions section of the Award Agreement:

**(a)&nbsp;&nbsp;&nbsp;&nbsp;*The Participant is hereby notified of the collection, use and transfer outside of the European Economic Area, as described in the Award Agreement, in electronic or other form, of his or her Personal Data (defined below) by and among, as applicable, the Corporation and certain of its Affiliates for the exclusive and legitimate purpose of implementing, administering and managing the Participant's participation in the Plan.*** 

***(b)&nbsp;&nbsp;&nbsp;&nbsp;The Participant understands that the Corporation and the Employer hold certain personal information about the Participant, including, but not limited to, the Participant's name, home address and telephone number, email address, date of birth, social insurance number, passport or other identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Corporation, details of all entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Participant's favor ("Personal Data"), for the purpose of implementing, administering and managing the Plan.***

***(c)&nbsp;&nbsp;&nbsp;&nbsp;The Participant understands that providing the Corporation with this Personal Data is necessary for the performance of the Award Agreement and that the Participant's refusal to provide the Personal Data would make it impossible for the Corporation to perform its***

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***contractual obligations and may affect the Participant's ability to participate in the Plan. The Participant's Personal Data shall be accessible within the Corporation only by the persons specifically charged with Personal Data processing operations and by the persons that need to access the Personal Data because of their duties and position in relation to the performance of the Award Agreement.*** 

***(d)&nbsp;&nbsp;&nbsp;&nbsp;The Personal Data will be held only as long as is necessary to implement, administer and manage the Participant's participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws. This period may extend until the Participant's employment or service with the Corporation is terminated, plus any additional time periods necessary for compliance with law, exercise or defense of legal rights, and archiving, back-up and deletion processes. The Participant may, at any time and without cost, contact Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA to enforce his or her rights under the data protection laws in the Participant's country, which may include the right to (i) request access or copies of Personal Data subject to processing; (ii) request rectification of incorrect Personal Data; (iii) request deletion of Personal Data; (iv) request restriction on processing of Personal Data; (v) request portability of Personal Data; (vi) lodge complaints with competent authorities in the Participant's country; and/or (vii) request a list with the names and addresses of any potential recipients of Personal Data.***

***(e)&nbsp;&nbsp;&nbsp;&nbsp;The Corporation provides appropriate safeguards for protecting Personal Data that it receives in the U.S. through its adherence to data transfer agreements entered into between the Corporation and its Affiliates within the European Union.*** 

***(f)&nbsp;&nbsp;&nbsp;&nbsp;Further, the Participant understands that the Corporation will transfer Personal Data to Merrill Lynch and/or such other third parties as may be selected by the Corporation, which are assisting the Corporation with the implementation, administration and management of the Plan. The Corporation may select a different service provider or additional service providers and share Personal Data with such other provider(s) serving in a similar manner. The Participant may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being a condition to the ability to participate in the Plan.*** 

***(g)&nbsp;&nbsp;&nbsp;&nbsp;Merrill Lynch is based in the United States. The Participant's country or jurisdiction may have different data privacy laws and protections than the United States. Notwithstanding, by participating in the Plan, the Participant agrees to the transfer of his or her Personal Data to Merrill Lynch for the exclusive purpose of administering the Participant's participation in the Plan. The Corporation's legal basis, where required, for the transfer of Data to Merrill Lynch is the Participant's consent.***

***(h)&nbsp;&nbsp;&nbsp;&nbsp;Finally, the Participant may choose to opt out of allowing the Corporation to share his or her Personal Data with Merrill Lynch and others as described above, although execution of such choice may mean the Corporation cannot grant awards under the Plan to the Participant. For questions about this choice or to make this choice, the Participant should contact Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA.***

**ARGENTINA**

*Securities Law Information*

Neither the RSUs nor the underlying shares of Common Stock are publicly offered or listed on any stock exchange in Argentina and, as a result, have not been and will not be registered with the Argentine Securities Commission (Comisión Nacional de Valores, "CNV"). Neither the Award Agreement nor any other offering material related to the RSUs nor the underlying shares of Common Stock may be utilized in connection with any general offering to the public in Argentina.

*Foreign Asset/Account Reporting Information*

Argentine residents must report any shares of Common Stock acquired under the Plan and held on December 31st of each year on their annual tax return for the year.

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*Exchange Control Information*

Please note that exchange control regulations in Argentina are subject to frequent change. The Participant should consult with his or her personal legal advisor regarding any exchange control obligations the Participant may have in connection with the Participant's participation in the Plan. The Participant must comply with any and all Argentine currency exchange restrictions, approvals and reporting requirements in connection with the vesting of the RSUs, the subsequent sale of any shares acquired at vesting and the receipt of any dividends paid on such shares.

**AUSTRALIA**

*Securities Law Information*

This offer is being made under Division 1A, Part 7.12 of the Australia Corporations Act 2001 (Cth).

*Tax Information* 

The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) (the "Act") applies (subject to conditions in the Act).

*Compliance with Laws*

Notwithstanding anything else in the Plan or the Award Agreement, the Participant will not be entitled to and shall not claim any benefit under the Plan if the provision of such benefit would give rise to a breach of Part 2D.2 of the Corporations Act 2001 (Cth.) (the "Act"), any other provision of the Act, or any other applicable statute, rule or regulation which limits or restricts the giving of such benefits. Further, the Employer is under no obligation to seek or obtain the approval of its shareholders in a general meeting for the purpose of overcoming any such limitation or restriction.

*Exchange Control Information* 

Exchange control reporting is required for cash transactions exceeding AUD 10,000 and for international fund transfers. If an Australian bank is assisting with the transaction, the bank will file the report on the Participant's behalf. If there is no Australian bank involved in the transaction, the Participant will be required to file the report him or herself.

**BAHRAIN**

*Securities Law Information*

The Award Agreement, Plan and all other materials the Participant may receive regarding participation in the Plan do not constitute advertising or the offering of securities in Bahrain, nor do they constitute an allotment of securities in Bahrain. Any shares of Common Stock issued upon settlement of the RSUs will be deposited into a Corporation-designated brokerage account outside Bahrain. In no event will shares of Common Stock be issued or delivered in Bahrain. The issuance of shares of Common Stock pursuant to the RSUs described herein has not and will not be registered in Bahrain and, hence, the shares of Common Stock described herein may not be admitted or used for offering, placement or public circulation in Bahrain. Accordingly, the Participant may not make any public advertising or announcements regarding the RSUs or shares of Common Stock in Bahrain, promote these shares of Common Stock to legal entities or individuals in Bahrain, or sell shares of Common Stock directly to other legal entities or individuals in Bahrain. Any disposition or sale of such shares of Common Stock must take place outside Bahrain.

**BELGIUM**

*Foreign Asset/Account Reporting Information*

Belgian residents are required to report any securities (e.g., shares acquired under the Plan) or bank accounts opened and maintained outside Belgium (e.g., any brokerage account opened in connection with the Plan) on their annual tax returns. Belgian residents are also required to complete a separate report providing the National Bank of Belgium with details regarding any such account, including the

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account number, the name of the bank in which such account is held and the country in which such account is located. The forms to complete this report are available on the website of the National Bank of Belgium. Belgian residents should consult with their personal tax advisors to determine their personal reporting obligations.

*Stock Exchange Tax* 

A stock exchange tax applies to transactions executed by a Belgian resident through a non-Belgian financial intermediary, such as a U.S. broker. The Stock Exchange Tax likely will apply when the Participant sells shares of Common Stock. The Participant should consult with his or her personal tax advisor for additional details regarding the Participant's obligations with respect to the Stock Exchange Tax.

*Annual Securities Accounts Tax*

An annual securities accounts tax may be payable if the total value of securities held in a Belgian or foreign securities account (e.g., shares of Common Stock acquired under the Plan) exceeds a certain threshold on four reference dates within the relevant reporting period (i.e., December 31, March 31, June 30 and September 30). In such cases, the tax will be due on the value of the qualifying securities held in such account. The Participant should consult with his or her personal tax advisor regarding the application of this tax.

**BOLIVIA**

There are no country-specific provisions.

**BRAZIL**

*Compliance with Law* 

By accepting the Award, the Participant acknowledges that he or she agrees to comply with applicable Brazilian laws and pay any and all applicable Tax-Related Items associated with the vesting of the RSUs, the conversion of the RSUs into shares or the receipt of an equivalent cash payment, the receipt of any dividends, and the sale of shares of Common Stock acquired under the Plan.

*Labor Law Acknowledgment*

By accepting the Award, the Participant agrees that (i) the Participant is making an investment decision; (ii) the shares of Common Stock will be issued to Participant only if the vesting and/or performance conditions are met, and (iii) the value of the underlying shares of Common Stock is not fixed and may increase or decrease in value over the vesting period without compensation to the Participant.

*Exchange Control Information* 

If the Participant is resident or domiciled in Brazil, he or she will be required to submit annually a declaration of assets and rights held outside of Brazil to the Central Bank of Brazil if the aggregate value of such assets and rights is equal to or greater than US$1,000,000. Assets and rights that must be reported include shares of Common Stock and may include RSUs.

*Tax on Financial Transaction (IOF).* 

Payments to foreign countries and repatriation of funds into Brazil (including proceeds from the sale) and the conversion of USD into BRL associated with such fund transfers may be subject to the Tax on Financial Transactions. It is the Participant's responsibility to comply with any applicable Tax on Financial Transactions arising from the Participant's participation in the Plan. The Participant should consult with his or her personal tax advisor for additional details.

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**CANADA**

*Securities Law Information*

The Participant is permitted to sell shares acquired through the Plan through the designated broker appointed under the Plan, if any, provided the resale of shares acquired under the Plan takes place outside of Canada through the facilities of a stock exchange on which the shares are listed. The Corporation's shares are currently listed on New York Stock Exchange.

*Acknowledgment of Conditions*

The following provision supplements the Acknowledgment of Conditions section of the Award Agreement:

Except as may otherwise be explicitly provided in the Plan or this Award Agreement, for the purposes of this Award Agreement, the Participant's termination of employment will be measured effective as of the date that is the earlier of: (1) the date the Participant's employment is terminated, no matter how the termination arises; and (2) the date the Participant receives notice of termination of employment from the Employer. In either case, the date shall exclude any period during which notice, pay in lieu of notice or related payments or damages are provided or required to be provided under local law. For greater certainty, the Participant will not earn or be entitled to any pro-rated vesting for that portion of time before the date on which the Participant's right to vest terminates, nor will the Participant be entitled to any compensation for lost vesting. Notwithstanding the foregoing, if applicable employment standards legislation explicitly requires continued vesting during a statutory notice period, the Participant's right to vest in the RSUs, if any, will terminate effective as of the last day of the Participant's minimum statutory notice period, but the Participant will not earn or be entitled to pro-rated vesting if the vesting date falls after the end of the Participant's statutory notice period, nor will the Participant be entitled to any compensation for lost vesting.

The Participant acknowledges and agrees that the vesting schedule may change prospectively in the event the Participant's service status changes between full- and part-time and/or in the event the Participant is on a leave of absence, in accordance with Corporation's policies relating to work schedules and vesting of RSUs or as determined by the Committee. In case of any dispute as to whether and when a termination of the Participant's employment has occurred, the Committee will have sole discretion to determine whether such termination of the Participant's employment has occurred and the effective date of such termination (including whether the Participant may still be considered to be actively providing services while on a leave of absence).

*Language*

A French translation of the Plan and the Award Agreement can be made available to the Participant as soon as reasonably practicable upon the Participant's request. The Participant understands that, from time to time, additional information related to the offering of the Plan might be provided in English and such information may not be immediately available in French. However, upon request, the Corporation will translate into French documents related to the offering of the Plan as soon as reasonably practicable.

*Une traduction française du Plan et de l'Accord d'Attribution êtremise à la disposition de Participant dès que raisonnablement possible à la demande de l'Participant. Le Participant comprend que, de temps à autre, des informations supplémentaires liées à l'offre du Plan peuvent être fournies en anglais et que ces informations peuvent ne pas être immédiatement disponibles en français. Cependant, sur demande, la Société traduira en français les documents relatifs à l'offre du Plan dès que raisonnablement possible.*

*Authorization to Release and Transfer Necessary Personal Information*

The Participant hereby authorizes the Corporation and the Corporation's representatives, including the broker(s) designated by the Corporation, to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan. The Participant further authorizes the Corporation, any Affiliate and the plan administrators to disclose and discuss the

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Plan with their advisors. The Participant further authorizes the Corporation and any Affiliate to record such information and to keep such information in the Participant's employee file. The Participant acknowledges that the Participant's personal information, including any sensitive personal information, may be transferred or disclosed outside the Province of Quebec, including to the United States. Finally, the Participant acknowledges that the Corporation, the Employer or any other Affiliate or other parties involved in the administration of the Plan use technology for profiling purposes and to make automated decisions that may have an impact on the Participant or the administration of the Plan.

*Foreign Asset/Account Reporting Information* 

Foreign specified property (including shares of Common Stock) held by Canadian residents must be reported annually on Form T1135 (Foreign Income Verification Statement) if the total cost of such foreign specified property exceeds C$100,000 at any time during the year. Foreign specified property includes shares of Common Stock acquired under the Plan and may include the RSUs. The RSUs must be reported - generally at a nil cost - if the $100,000 cost threshold is exceeded because of other foreign property the Participant holds. If shares of Common Stock are acquired, their cost generally is the adjusted cost base ("ACB") of the shares. The ACB would normally equal the Fair Market Value of the shares at vesting, but if the Participant owns other shares, this ACB may have to be averaged with the ACB of the other shares owned by the Participant. If due, the Form must be filed by April 30 of the following year. The Participant should speak with a personal tax advisor to determine the scope of foreign property that must be considered for purposes of this requirement.

**CHILE**

*Securities Law Information*

The RSUs are granted and are made subject to general ruling n° 336 of the Chilean Commission for the Financial Market ("CMF"). This offer refers to securities not registered at the securities registry or at the foreign securities registry of the CMF, and therefore such securities are not subject to its oversight. Given that these securities are not registered in Chile, there is no obligation from the issuer to provide public information on them in Chile. These securities cannot be subject to public offering in Chile while they are not registered at the corresponding securities registry in Chile.

***La oferta privada de estos RSUs se inicia y se acoge a las disposiciones de la norma de carácter general nº 336 de la Comisón para el Mercado Financiero ("CMF"). Esta oferta versa sobre valores no inscritos en el registro de valores o en el registro de valores extranjeros que lleva la CMF, por lo que tales valores no están sujetos a la fiscalización de ésta. Por tratarse de valores no inscritos en Chile, no existe la obligación por parte del emisor de entregar en Chile información pública respecto de los mismos. Estos valores no podrán ser objeto de oferta pública en Chile mientras no sean inscritos en el registro de valores correspondiente.***

*Exchange Control Information*

The Participant is not required to repatriate funds obtained from the sale of shares or the receipt of any dividends. However, if the Participant decides to repatriate such funds, the Participant must do so through the Formal Exchange Market if the amount of the funds exceeds US$10,000. In such case, the Participant must report the payment to a commercial bank or registered foreign exchange office receiving the funds.

*Foreign Asset/Account Reporting Information*

The Chilean Internal Revenue Service (the "CIRS") requires all taxpayers to provide information annually regarding (i) the results of investments held abroad and (ii) any taxes paid abroad which the taxpayers will use as a credit against Chilean income tax. The sworn statements disclosing this information (or Formularios) must be submitted electronically through the CIRS website, <u>www.sii.cl</u>, using Form 1929, which is due on July 1 each year.

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**CHINA**

<u>The following provisions apply only to Participants who are subject to exchange control restrictions imposed by the State Administration of Foreign Exchange ("SAFE"), as determined by the Corporation in its sole discretion</u>:

*Vesting of RSUs*

The Participant's Employer, Corporation any other Affiliate to which the Participant provides service must be registered with SAFE prior to settlement of the RSUs. If the Corporation is unable to obtain registration approval or is required to obtain further approvals on behalf of the Employer, Corporation or any other Affiliate, the vesting or settlement of the RSUs may be suspended or delayed. Further, the Corporation is under no obligation to vest the RSUs and/or issues shares of Common Stock if the Corporation's SAFE approval becomes invalid or ceases to be in effect by the time the Participant vests in the RSUs.

*Shutdown or Divestiture* 

The following provision replaces Section 2(d) of the Award Agreement.

In the event that, more than six months after the Grant Date, the Participant's termination of employment is due to the shutdown or divestiture of the Corporation's or its Affiliate's business, it shall result in pro-rata vesting, as determined by the Committee, and the number of shares that are considered to vest shall be calculated as (1) the total number of RSUs granted under the Award minus the number of RSUs already vested under the Award multiplied by (2) the number of full months of employment during the Restricted Period divided by the number of full months in the Restricted Period. Any fractional share of the Corporation resulting from such a prorated Award shall be rounded to the nearest whole share and shall be paid, along with any other shares earned under such prorated award, within 70 days following the Participant's termination of employment. For the purposes of this Award, a shutdown or divestiture of the Corporation's or its Affiliate's business unit is defined as one for which the charges related to the shutdown or divestiture are accounted for, and reported externally, as an exit activity in the Corporation's applicable SEC filings. The Corporation has complete discretion to determine whether a shutdown or divestiture of a business unit has occurred under the terms of the Plan.

*Termination of Employment*

Except for a termination of employment due to the shutdown or divestiture of a business unit, as described above, and notwithstanding any other provision in the Award Agreement, the Participant shall forfeit any unvested Award, including any accrued dividend equivalents, upon any termination of employment including, but not limited to, any termination that is due to a Qualified Termination of Employment, death or Total and Permanent Disability.

The Participant acknowledges and agrees that he or she must sell any shares of Common Stock issued to him or her upon vesting of the RSUs as soon as practicable following the Participant's termination of employment for any reason and in no event later than three months following the Participant's termination of employment. The Participant agrees that if he or she continues to hold any of such shares of Common Stock after this time, the shares of Common Stock may be sold by the Corporation's designated broker on the Participant's behalf at the instruction of the Corporation. Therefore, by accepting the RSUs, the Participant understands and agrees that the Corporation is authorized to, and may in its sole discretion, instruct its designated broker to assist with the mandatory sale of shares of Common Stock (on the Participant's behalf pursuant to this authorization) and that the Participant expressly authorizes the Corporation's designated broker to complete the sale of such shares of Common Stock. The Participant acknowledges that the Corporation's designated broker is under no obligation to arrange for the sale of the shares of Common Stock at any particular price. Upon the sale of the shares of Common Stock, the proceeds, less any Tax-Related Items and brokerage fees or commissions will be remitted to the Participant pursuant to the procedures described in the "Exchange Control Information" section below.

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*Exchange Control Information*

Shares of Common Stock issued to the Participant under the Plan must be maintained in an account with Merrill Lynch or such other broker as may be designated by the Corporation until the shares of Common Stock are sold through that broker. If the Corporation changes its broker, the Participant acknowledges and agrees that the Corporation may transfer any shares of Common Stock issued under the Plan to the new designated broker if necessary for legal or administrative reasons. The Participant agrees to sign any documentation necessary to facilitate the transfer. In addition, the Participant may be required to sell any shares of Common Stock obtained under the Plan if the Corporation determines that the application of such condition is necessary or advisable for China SAFE exchange control, legal or other administrative reasons.

The Participant understands and agrees that, to facilitate compliance with exchange control requirements, the Participant will be required to immediately repatriate to China the cash proceeds from the sale of shares of Common Stock acquired upon vesting of the RSUs or from any dividends or dividend equivalents paid on the shares of Common Stock. The Participant further understands that, under local law, such repatriation of the cash proceeds will be effectuated through a special exchange control account established by the Corporation or one of its Affiliates in China, and the Participant hereby consents and agrees that the cash proceeds related to the Participant's participation in the Plan may be transferred to such special account prior to being delivered to the Participant. The Corporation may deliver the proceeds to the Participant in U.S. dollars or local currency at the Corporation's discretion. If the proceeds are paid in U.S. dollars, the Participant understands that he or she will be required to set up a U.S. dollar bank account in China so that the proceeds may be deposited into this account. If the proceeds are converted to local currency, there may be delays in delivering the proceeds to the Participant. The Participant agrees to bear the risk of any currency fluctuation between the time the shares of Common Stock are sold, either through voluntary sale or through a mandatory sale arranged by the Corporation, or proceeds are otherwise realized under the Plan and the time such proceeds are distributed to the Participant through the special exchange control account.

The Participant further agrees to comply with any other requirements that may be imposed by the Corporation in the future to facilitate compliance with exchange control requirements in China.

**COLOMBIA**

*Securities Law Information*

The shares of Common Stock are not and will not be registered in the Colombian registry of publicly traded securities (Registro Nacional de Valores y Emisores) and therefore the shares of Common Stock may not be offered to the public in Colombia. Nothing in this document should be construed as the making of a public offer of securities in Colombia. An offer of shares of Common Stock to employees will not be considered a public offer provided that it meets the conditions set forth in Article 6.1.1.1.1 in Decree 2555, 2010. In the event that the Corporation, in its sole discretion, determines that the offer of the Awards in Colombia may constitute a "public offer of securities", the Participant understands and agrees that the Corporation may, in its sole discretion, cease to offer participation in the Plan in Colombia. In the event that the Corporation exercises its discretion to cease offering the Plan in Colombia, the Participant will no longer be permitted to participate in the Plan as of the date established by the Corporation.

*Exchange Control Information* 

Colombian residents must register shares of Common Stock acquired under the Plan, regardless of value, with the Central Bank of Colombia (Banco de la República) as foreign investment held abroad. In addition, the liquidation of such investments must be transferred through the Colombian foreign exchange market (e.g., local banks), which includes the obligation of correctly completing and filing the appropriate foreign exchange form (declaración de cambio). The Participant is responsible for complying with applicable exchange control requirements in Colombia.

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*Foreign Asset/Account Reporting Information*

The Participant must file an informative return with the Colombian Tax Office detailing any assets held abroad. If the individual value of any of these assets exceeds a certain threshold, the Participant must describe each asset and indicate the jurisdiction in which it is located, its nature and its value.

*Acknowledgment of Conditions*

The following provision supplements the Acknowledgment of Conditions section of the Award Agreement:

The Participant acknowledges that pursuant to Article 128 of the Colombian Labor Code, the Plan and related benefits do not constitute a component of the Participant's "salary" for any legal purpose. To this extent, they will not be included for purposes of calculating any labor benefits, such as legal/fringe benefits, vacation, indemnities, payroll taxes, social insurance contributions and/or any other labor-related amount which may be payable.

**COSTA RICA**

There are no country-specific provisions.

**CZECH REPUBLIC**

*Exchange Control Information*

The Czech National Bank may require the Participant to fulfill certain notification duties in relation to the acquisition of shares of Common Stock and the opening and maintenance of a foreign account (e.g., may be required to report foreign direct investment, financial credits from abroad, investment in foreign securities, and associated collections and payments). However, because exchange control regulations change frequently and without notice, the Participant should consult with his or her personal legal advisor prior to the vesting of the RSUs and the sale of Common Stock to ensure compliance with current regulations. It is the Participant's responsibility to comply with any applicable Czech exchange control laws.

**DOMINICAN REPUBLIC**

There are no country-specific provisions.

**ECUADOR**

*Foreign Asset/Account Reporting Information*

Individuals who are resident or domiciled in Ecuador are generally required to file an annual Net Worth Declaration with the Internal Revenue Service of Ecuador if the aggregate value of assets held by such individuals exceeds certain thresholds. Assets included in this annual declaration include shares of Common Stock acquired under the Plan. The Net Worth Declaration must be filed in May of the following year using the electronic form on the tax authorities' website (www.sri.gob.ec). Penalties will apply to a late filing and it is not possible to seek an extension.

In addition, Ecuadorian resident individuals are required to report on an annual basis, all monetary assets held in foreign financial entities in excess of US$100,000. The Participant should consult their legal or tax advisor to ensure compliance with all applicable reporting obligations.

**EL SALVADOR**

There are no country-specific provisions.

**FRANCE**

*RSUs Not Tax-Qualified*

The Participant understands that this Award is not intended to be French tax-qualified.

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*Consent to Receive Information in English*

By accepting the Award Agreement providing for the terms and conditions of the Participant's grant, the Participant confirms having read and understood the documents relating to this grant (the Plan and this Award Agreement) which were provided in English language. The Participant accepts the terms of those documents accordingly.

*En acceptant le Contrat d'Attribution décrivant les termes et conditions de l'attribution, le participant confirme ainsi avoir lu et compris les documents relatifs à cette attribution (le Plan U.S. et ce Contrat d'Attribution) qui ont été communiqués en langue anglaise. Le participant accepte les termes en connaissance de cause.*

*Foreign Asset/Account Reporting Information*

French residents holding shares of Common Stock outside of France or maintaining a foreign bank account are required to report such to the French tax authorities when filing their annual tax returns, including any accounts that were closed during the year. Further, failure to comply could trigger significant penalties.

*Exchange Control Information*

The value of any cash or securities imported to or exported from France without the use of a financial institution must be reported to the customs and excise authorities when the value of such cash or securities is equal to or greater than a certain amount (currently €10,000).

**GERMANY**

*Exchange Control Information* 

Cross-border payments in excess of €12,500 must be reported monthly to the German Federal Bank. If the Participant makes or receives a payment in excess of this amount (including if the Participant acquires shares of Common Stock with a value in excess of this amount or sells shares of Common Stock via a foreign broker, bank or service provider and receives proceeds in excess of this amount and/or if the Corporation withholds or sells shares of Common Stock with a value in excess of this amount to cover Tax-Related Items), the Participant must report the payment and/or the value of the shares of Common Stock withheld or sold to Bundesbank electronically using the "General Statistics Reporting Portal" ("*Allgemeine Meldeportal Statistik*") available on the *Bundesbank's* website (<u>www.bundesbank.de</u>) or via such other method (e.g., by email or telephone) as is permitted or required by Bundesbank. The report must be submitted monthly or within such other timing as is permitted or required by *Bundesbank.*

*Foreign Asset/Account Reporting Information*

If the Participant's acquisition of shares of Common Stock leads to a so-called qualified participation at any point during the calendar year, the Participant will need to report the acquisition when he or she files a tax return for the relevant year. A qualified participation occurs only if (i) the Participant owns 1% or more of the Corporation and the value of the shares of Common Stock exceeds €150,000 or (ii) the Participant holds shares of Common Stock exceeding 10% of the Corporation's total Common Stock.

**GUATEMALA**

*Language Waiver*

By participating in the Plan, the Participant acknowledges that he or she is proficient in reading and understanding English and fully understands the terms of the Plan, or, alternatively, that the Participant will seek appropriate assistance to understand the terms and conditions in the Award Agreement and this Appendix A.

**HONDURAS**

There are no country-specific provisions.

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**HONG KONG**

*Securities Law Warning*

*The offer of this Award and the shares of Common Stock subject to this Award do not constitute a public offering of securities under Hong Kong law and are available only to employees of the Corporation or its Affiliates participating in the Plan. The Participant should be aware that the Plan, the Plan prospectus and the contents of this Award Agreement (i) have not been prepared in accordance with and are not intended to constitute a "prospectus" for a public offering of securities under the applicable securities legislation in Hong Kong, (ii) have not been reviewed by any regulatory authority in Hong Kong, and (iii) are intended only for the personal use of each Participant and may not be distributed to any other person. The Participant is advised to exercise caution in relation to the offer. If the Participant is in any doubt about any of the contents of the Award Agreement, including this Appendix A, or the Plan, the Participant should obtain independent professional advice.*

*Award Payable Only in Shares*

Awards granted to Participants in Hong Kong shall be paid in shares of Common Stock only and do not provide any right for the Participant to receive a cash payment.

*Sale of Shares*

In the event the Award vests within six months of the Grant Date, the Participant agrees that he or she will not offer to the public or otherwise dispose of the shares acquired prior to the six-month anniversary of the Grant Date. Any shares of Common Stock acquired under the Plan are accepted as a personal investment.

**INDIA**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in India do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**INDONESIA**

*Language Consent and Notification*

By accepting the RSUs, the Participant (i) confirms having read and understood the documents relating to this Award which were provided in the English language, (ii) accepts the terms of those documents accordingly, and (iii) agrees not to challenge the validity of this document based on Law No. 24 of 2009 on National Flag, Language, Coat of Arms and National Anthem or the implementing Presidential Regulation (when issued).

*Persetujuan dan Pemberitahuan Bahasa*

Dengan menerima pemberian Unit Saham Terbatas ini, Peserta (i) memberikan konfirmasi bahwa dirinya telah membaca dan memahami dokumen-dokumen berkaitan dengan pemberian ini yang disediakan dalam Bahasa Inggris, (ii) menerima persyaratan di dalam dokumen-dokumen tersebut, dan (iii) setuju untuk tidak mengajukan keberatan atas keberlakuan dari dokumen ini berdasarkan Undang-Undang No. 24 Tahun 2009 tentang Bendera, Bahasa dan Lambang Negara serta Lagu Kebangsaan ataupun Peraturan Presiden sebagai pelaksanaannya (ketika diterbitkan).

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**ISRAEL**

*Securities Law Information*

The offer of this Award does not constitute a public offering under Securities Law, 1968.

*Broker Designation*

Shares of Common Stock issued to the Participant under the Plan must be maintained in an account with Merrill Lynch or such other broker as may be designated by the Corporation until the shares of Common Stock are sold through that broker.

*Restricted from Online Brokerage Transactions*

The Participant acknowledges and agrees that he or she will be restricted from online brokerage account transactions the Corporation's designated broker. Therefore, by accepting the Awards, the Participant understands and agrees that the Participant will call the Corporation's designated broker to initiate any sale or transfer of any shares of Common Stock issued to him or her upon vesting of the Awards. The Participant acknowledges that the Corporation's designated broker is under no obligation to arrange for the sale of the shares of Common Stock at any particular price.

**ITALY**

*Plan Document Acknowledgment* 

In accepting the grant of this Award, the Participant acknowledges that he or she has received a copy of the Plan and the Award Agreement and has reviewed the Plan and the Award Agreement, including this Appendix A, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including this Appendix A.

The Participant acknowledges that he or she has read and specifically and expressly approves the following sections of the Award Agreement: Section 2(g) on Payment of Tax-Related Items; Section 5 on No Right of Continued Employment; Section 8 on Governing Law and Consent to Jurisdiction; the section on Acknowledgment of Conditions; and the Data Privacy Notice section included in this Appendix A.

*Foreign Asset/Account Reporting Information*

Italian residents who, at any time during the fiscal year, hold foreign financial assets (including cash and shares of Common Stock) which may generate income taxable in Italy are required to report these assets on their annual tax returns (UNICO Form, RW Schedule) for the year during which the assets are held, or on a special form if no tax return is due. These reporting obligations will also apply to Italian residents who are the beneficial owners of foreign financial assets under Italian money laundering provisions.

*Foreign Asset Tax Information*

The value of financial assets held outside of Italy (including shares of Common Stock) by Italian residents is subject to a foreign asset tax. The taxable amount will be the fair market value of the financial assets (*e.g.*, shares of Common Stock acquired under the Plan) assessed at the end of the calendar year.

**KAZAKHSTAN**

*Securities Law Notification* 

This offer is addressed only to certain eligible employees in the form of the shares of Common Stock to be issued by the Corporation. Neither the Plan nor the Award Agreement has been approved, nor do they need to be approved, by the National Bank of Kazakhstan. This offer is intended only for the original recipient and is not for general circulation in the Republic of Kazakhstan.

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*Exchange Control Information*

Residents of Kazakhstan may be required to notify the National Bank of Kazakhstan when they acquire shares of Common Stock under the Plan if the value of such shares of Common Stock exceeds US$100,000.

Please note that the exchange control regulations in Kazakhstan are subject to change. The Participant should consult with his or her personal legal advisor regarding any exchange control obligations that the Participant may have prior to vesting or receiving proceeds from the sale of shares of Common Stock acquired under the Plan. The Participant is responsible for ensuring compliance with all exchange control laws in Kazakhstan.

**KENYA**

*Tax Registration Notification*

Under Tax Procedure Act, 2015, the Participant is required to complete and submit a tax registration application to the Commissioner of Income Tax with 30 days of first vesting of the RSUs. The registration should be completed through the online portal "I TAX" and is a one-time only registration. The Participant is solely responsible for ensuring compliance with all registration requirements in Kenya.

**KOREA**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Korea do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**MALAYSIA**

*Director Notification Obligation* 

If the Participant is a director of the Corporation's Malaysian Affiliate, the Participant is subject to certain notification requirements under the Malaysian Companies Act. Among these requirements is an obligation to notify the Malaysian Affiliate in writing when the Participant receives or disposes of an interest (*e.g.*, an Award or shares) in the Corporation or any related company. Such notifications must be made within 14 days of receiving or disposing of any interest in the Corporation or any related company.

**MEXICO**

*Modification*

By accepting the Award, the Participant understands and agrees that any modification of the Plan or the Award Agreement or its termination shall not constitute a change or impairment of the terms and conditions of employment.

*Acknowledgment of the Grant*

In accepting the Award, the Participant acknowledges that the Participant has received a copy of the Plan and the Award Agreement, including this Appendix A, has reviewed the Plan and the Award Agreement, including this Appendix A, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including this Appendix A. The Participant further acknowledges that the Participant has read and specifically and expressly approves the Acknowledgment of Conditions section of the Award Agreement, in which the following is clearly described and established:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's participation in the Plan does not constitute an acquired right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The Plan and the Participant's participation in the Plan are offered by the Corporation on a wholly discretionary basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's participation in the Plan is voluntary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Corporation nor any Affiliates are responsible for any decrease in the value of the Award granted and/or shares of Common Stock issued under the Plan.

*Labor Acknowledgment and Policy Statement*

In accepting the grant of this Award, the Participant expressly recognizes that the Corporation, with registered offices at 351 Phelps Drive, Irving, Texas 75038, U.S.A., is solely responsible for the administration of the Plan and that the Participant's participation in the Plan and acquisition of shares of Common Stock do not constitute an employment relationship between the Participant and the Corporation since the Participant is participating in the Plan on a wholly commercial basis and his or her sole Employer is K-C AFC Manufacturing S. de R.L. de C.V. ("KCC-Mexico"). Based on the foregoing, the Participant expressly recognizes that the Plan and the benefits that he or she may derive from participating in the Plan do not establish any rights between the Participant and the Employer, KCC-Mexico and do not form part of the employment conditions and/or benefits provided by KCC-Mexico, and any modification of the Plan or its termination shall not constitute a change or impairment of the terms and conditions of the Participant's employment.

The Participant further understands that his or her participation in the Plan is as a result of a unilateral and discretionary decision of the Corporation; therefore, the Corporation reserves the absolute right to amend and/or discontinue the Participant's participation at any time without any liability to the Participant.

Finally, the Participant hereby declares that he or she does not reserve to him- or herself any action or right to bring any claim against the Corporation for any compensation or damages regarding any provision of the Plan or the benefits derived under the Plan, and the Participant therefore grants a full and broad release to the Corporation, its Affiliates, branches, representation offices, its shareholders, officers, agents, or legal representatives with respect to any claim that may arise.

***Spanish Translation***

*Modificación*

*Al aceptar el Premio, el Participante entiende y acuerda que cualquier modificación al Plan o al Acuerdo o su terminación, no cambiará o disminuirá los términos y condiciones de empleo.*

*Reconocimiento del Otorgamiento*

*Al aceptar el Premio, el Participante está de acuerdo en haber recibido una copia del Plan, del Acuerdo incluyendo el presente Anexo "A" y ha revisado el Plan y el Acuerdo, incluyendo este Anexo "A" en su totalidad y comprende y acepta todas las disposiciones previstas en el Plan, en el Acuerdo, incluyendo el presente Anexo "A". Asimismo, el Participante reconoce que ha leído y manifiesta su específica y expresa conformidad con los términos y condiciones establecidos del Acuerdo, en el cual claramente se describe y establece lo siguiente:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Participante en el Plan no constituye un derecho adquirido.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2)&nbsp;&nbsp;&nbsp;&nbsp;El Plan y la participación del Participante en el Plan se ofrecen por la Compañía de forma completamente discrecional.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Participante en el Plan es voluntaria.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(4)&nbsp;&nbsp;&nbsp;&nbsp;Ni la Compañía ni sus Afiliadas son responsables por la reducción del valor del Premio y/o Acciones Ordinarias emitidas bajo el Plan.*

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*Reconocimiento de la Legislación Laboral y Declaración de la Política* 

*Al aceptar el otorgamiento de este Premio, el Participante expresamente reconoce que Kimberly-Clark Corporación con oficinas registradas en 351 Phelps Drive, Irving, Texas 75038, EE.UU., es la única responsable por la administración del Plan y que la participación del Participante en el Plan y en su caso la adquisición de las Opciones de Compra de Acciones o Acciones no constituyen ni podrán interpretarse como una relación de trabajo entre el Participante y Kimberly-Clark Corporación, ya que el Participante participa en el Plan en un marco totalmente comercial y su único Patrón lo es K-C AFC Manufacturing S. de R.L. de C.V. ("KCC-Mexico"). Derivado de lo anterior, el Participante expresamente reconoce que el Plan y los beneficios que pudieran derivar de la participación en el Plan no establecen derecho alguno entre el Participante y el Patrón, KCC-Mexico y no forma parte de las condiciones de trabajo y/o las prestaciones otorgadas por KCC-Mexico y que cualquier modificación al Plan o su terminación no constituye un cambio o impedimento de los términos y condiciones de la relación de trabajo del Participante.*

*Asimismo, el Participante reconoce que su participación en el Plan es resultado de una decisión unilateral y discrecional de Kimberly-Clark Corporación por lo tanto, Kimberly-Clark Corporación se reserva el absoluto derecho de modificar y/o terminar la participación del Participante en cualquier momento y sin responsabilidad alguna frente el Participante.*

*Finalmente, el Participante por este medio declara que no se reserva derecho o acción alguna que ejercitar en contra de Kimberly-Clark Corporación por cualquier compensación o daño en relación con las disposiciones del Plan o de los beneficios derivados del Plan y por lo tanto, el Participante otorga el más amplio finiquito que en derecho proceda a Kimberly-Clark Corporación, sus afiliadas, subsidiarias, oficinas de representación, sus accionistas, funcionarios, agentes o representantes legales en relación con cualquier demanda que pudiera surgir.* 

*Securities Law Notification*

The RSUs and the shares of Common Stock offered under the Plan have not been registered with the National Register of Securities maintained by the Mexican National Banking and Securities Commission and cannot be offered or sold publicly in Mexico. In addition, the Plan, the Award Agreement and any other document relating to the RSUs may not be publicly distributed in Mexico. These materials are addressed to the Participant only because of their existing relationship with the Corporation and these materials should not be reproduced or copied in any form. The offer contained in these materials does not constitute a public offering of securities but rather constitutes a private placement of securities addressed specifically to individuals who are present employees of the Mexican subsidiary of the Corporation made in accordance with the provisions of the Mexican Securities Market Law, and any rights under such offering shall not be assigned or transferred*.*

**NETHERLANDS**

There are no country-specific provisions.

**NEW ZEALAND**

*Securities Law Information*

The Participant is being offered RSUs which, if vested, will entitle the Participant to acquire shares of Common Stock in accordance with the terms of the Award Agreement and the Plan. The shares of Common Stock, if issued, will give the Participant a stake in the ownership of the Corporation. The Participant may receive a return if dividends are paid.

If the Corporation runs into financial difficulties and is wound up, the Participant will be paid only after all creditors and holders of preferred shares (if any) have been paid. The Participant may lose some or all of the Participant's investment, if any.

New Zealand law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors to make an informed decision. The

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usual rules do not apply to this offer because it is made under an employee share scheme. As a result, the Participant may not be given all the information usually required. The Participant will also have fewer other legal protections for this investment. The Participant is advised to ask questions, read all documents carefully, and seek independent financial advice before committing.

The shares of Common Stock are quoted on the New York Stock Exchange ("NYSE"). This means that if the Participant acquires shares of Common Stock under the Plan, the Participant may be able to sell the shares of Common Stock on the NYSE if there are interested buyers. The Participant may get less than the Participant invested. The price will depend on the demand for the shares of Common Stock.

For a copy of the Corporation's most recent financial statements (and, where applicable, a copy of the auditor's report on those financial statements), as well as information on risk factors impacting the Corporation's business that may affect the value of the shares pf Common Stock, the Participant should refer to the risk factors discussion on the Corporation's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission and are available online at <u>www.sec.gov</u> as well as on the Corporation's "Investor Relations" website at: <u>https://investor.kimberly-clark.com</u>.

**NIGERIA**

There are no country-specific provisions.

**PANAMA**

*Securities Law Information*

Neither this Award nor any shares of Common Stock that the Participant may acquire at vesting of this Award constitute a public offering of securities, as they are available only to eligible employees of the Corporation and its Affiliates.

**PARAGUAY**

There are no country-specific provisions.

**PERU**

*Securities Law Information*

The offer of this Award is considered a private offering in Peru; therefore, it is not subject to registration in Peru. For more information concerning the offer, please refer to the Plan, the Award Agreement and any other materials or documentation made available by the Corporation. For more information regarding the Corporation, please refer to the Corporation's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission and are available at <u>www.sec.gov</u>, as well as the Corporation's "Investor Relations" website at: <u>https://investor.kimberly-clark.com</u>.

*Labor Law Acknowledgment*

By accepting the Award, the Participant acknowledges that the RSUs are being granted *ex gratia* to the Participant.

**PHILIPPINES**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in the Philippines do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash in an amount equal to the value of the shares of Common Stock at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to

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settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

*Fringe Benefit Tax Obligation*

By accepting the Award, the Participant consents and agrees to assume any and all liability for fringe benefit tax that may be payable by the Corporation and/or the Employer (as determined by the Corporation or the Employer in their discretion) in connection with the Award and any awards previously granted by the Corporation. Further, by accepting the Award, the Participant agrees that the Corporation and/or the Employer may collect the fringe benefit tax from the Participant by any of the means set forth in the Acknowledgment of Conditions section of the Award Agreement, or any other reasonable method established by the Corporation. The Participant agrees to execute other consents or elections to accomplish the foregoing, promptly upon request by the Corporation or the Employer.

**POLAND**

*Foreign Asset/Account Reporting Information*

Polish residents holding foreign securities (e.g., shares of Common Stock) and/or maintaining accounts abroad must report information to the National Bank of Poland on transactions and balances regarding such securities and cash deposited in such accounts if the value of such securities and cash (when combined with all other assets possessed abroad) exceeds certain thresholds. If required, the reports must be filed on a quarterly basis on special forms that are available on the website of the National Bank of Poland. Polish residents should consult with their personal tax advisor to determine their personal reporting obligations.

*Exchange Control Information*

Transfers of funds into and out of Poland in excess of €15,000 (or PLN 15,000 if such transfer of funds is connected with business activity of an entrepreneur) must be made via a bank account held at a bank in Poland. Additionally, Polish residents are required to store all documents connected with any foreign exchange transactions that Polish residents are engaged in for a period of five years, as measured from the end of the year in which such transaction occurred.

**PUERTO RICO**

There are no country-specific provisions.

**RUSSIA**

*Awards Payable in Cash Only*

*Securities Law Information*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in the Russia do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash in an amount equal to the value of the shares of Common Stock at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**SAUDI ARABIA**

*Securities Law Information.* 

This document may not be distributed in the Kingdom except to such persons as are permitted under the Rules on the Offer of Securities and Continuing Obligations issued by the Capital Market Authority.

The Capital Market Authority does not make any representation as to the accuracy or completeness of this document, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in

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reliance upon, any part of this document. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If the Participant does not understand the contents of this document, the Participant should consult an authorized financial adviser.

**SINGAPORE**

*Sale Restriction* 

The Participant agrees that any shares of Common Stock acquired pursuant to the RSUs will not be offered for sale in Singapore prior to the six-month anniversary of the Grant Date, unless such sale or offer is made pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the Securities and Futures Act (Chapter 289, 2006 Ed.) ("SFA"), or pursuant to, and in accordance with the conditions of, any other applicable provisions of the SFA.

*Securities Law Information*

The grant of the RSUs is being made pursuant to the "Qualifying Person" exemption" under section 273(1)(f) of the SFA under which it is exempt from the prospectus and registration requirements and is not made with a view to the underlying shares of Common Stock being subsequently offered for sale to any other party. The Plan has not been and will not be lodged or registered as a prospectus with the Monetary Authority of Singapore.

*Director Notification Obligation*

If the Participant is a director, associate director or shadow director of the Corporation's Singapore Affiliate, the Participant is subject to certain notification requirements under the Singapore Companies Act (Cap. 50, Rev Ed 2006). Among these requirements is an obligation to notify the Corporation's Singapore Affiliate in writing when the Participant receives an interest (*e.g.*, an Award or shares) in the Corporation or any Affiliate. In addition, the Participant must notify the Corporation's Singapore Affiliate when he or she sells shares of the Corporation or of any Affiliate (including when the Participant sells shares issued upon vesting and settlement of the Award). These notifications must be made within two business days of (i) acquiring or disposing of any interest in the Corporation or any Affiliate, or (ii) any change in a previously-disclosed interest (*e.g.*, upon vesting of the Award or when shares of Common Stock acquired under the Plan are subsequently sold). In addition, a notification of the Participant's interests in the Corporation or any Affiliate must be made within two business days of becoming a director, associate director or shadow director.

**SLOVAK REPUBLIC**

*Foreign Asset/Account Reporting Information*

If the Participant permanently resides in the Slovak Republic and, apart from being employed, carries on business activities as an independent entrepreneur (in Slovakian, *podnikatel*), the Participant will be obligated to report his or her foreign assets (including any foreign securities) to the National Bank of Slovakia (provided that the value of the foreign assets exceeds an amount of €2,000,000). These reports must be submitted on a monthly basis by the 15<sup>th</sup> day of the respective calendar month, as well as on a quarterly basis by the 15<sup>th</sup> day of the calendar month following the respective calendar quarter, using notification form DEV (NBS) 1-12, which may be found at the National Bank of Slovakia's website at <u>www.nbs.sk</u>.

**SOUTH AFRICA**

*Tax Acknowledgment*

By accepting the Award, the Participant agrees to notify the Employer of the amount of any gain realized upon vesting of the Award. If the Participant fails to advise the Employer of the gain realized upon vesting, the Participant may be liable for a fine. The Participant will be responsible for paying any difference between the actual tax liability and the amount withheld.

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*Exchange Control Information*

To participate in the Plan, the Participant must comply with exchange control regulations and rulings (the "Exchange Control Regulations") in South Africa.

Because the Exchange Control Regulations change frequently and without notice, the Participant understands that he or she should consult a legal advisor prior to the acquisition or sale of shares under the Plan to ensure compliance with current regulations. The Participant understands that it is his or her responsibility to comply with South African exchange control laws, and neither the Corporation nor the Employer will be liable for any fines or penalties resulting from failure to comply with applicable laws.

*Securities Law Information*

In compliance with South African securities law, the Participant acknowledges that the documents listed below are available for review at the addresses listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Corporation's most recent annual financial statements: <u>https://investor.kimberly-clark.com</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The Corporation's most recent Plan prospectus may be accessed online through Merrill Lynch, or such other stock plan service provider as may be selected by the Corporation in the future, at <u>www.mybenefits.ml.com</u> in the Document Library.

A copy of the above documents will be sent free of charge upon written request to Stock Plan Administrator, P.O. Box 619100, Dallas, Texas 75261-9100. In addition, the Participant should contact his or her tax advisor for specific information concerning his or her personal tax situation with regard to Plan participation.

**SPAIN**

*Securities Law Information*

No "offer of securities to the public," as defined under Spanish law, has taken place or will take place in the Spanish territory in connection with the grant of the Award. The Award Agreement (including this Appendix A) has not been, nor will it be, registered with the *Comisión Nacional del Mercado de Valores*, and does not constitute a public offering prospectus.

*Labor Law Acknowledgment*

By accepting the Award, the Participant acknowledges that he or she understands and agrees to participation in the Plan and that he or she has received a copy of the Plan.

The Participant understands that the Corporation has unilaterally, gratuitously and discretionally decided to grant Awards under the Plan to individuals who may be employees of the Corporation or its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Corporation or any of its Affiliates on an ongoing basis. Consequently, the Participant understands that any grant is given on the assumption and condition that it shall not become a part of any employment contract (either with the Corporation or any of its Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further, the Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of the Award and the underlying shares is unknown and unpredictable. In addition, the Participant understands that this grant would not be made but for the assumptions and conditions referred to above; thus, the Participant understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the Award shall be null and void.

Further, the Participant understands that the Award is a conditional right. Participant shall forfeit any unvested Award upon termination of employment unless such termination is (i) due to a Qualified Termination of Employment, or (ii) due to death, Total and Permanent Disability, or the shutdown or divestiture of a business unit. Vesting will cease, for example, regardless of whether (1) the Participant

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is considered to be unfairly dismissed without good cause (i.e., subject to a "despido improcedente"); (2) the Participant is dismissed for disciplinary or objective reasons or due to a collective dismissal; (3) the Participant terminates his or her employment or service relationship due to a change of work location, duties or any other employment or contractual condition; and (4) the Participant terminates his or her employment or service relationship due to a unilateral breach of contract by the Corporation or an Affiliate. Consequently, upon termination of the Participant's employment or service relationship for any of the above reasons, the Participant may automatically lose any rights to the RSUs that were not vested on the date of termination of the Participant's employment or service relationship, as described in the Plan and the Award Agreement.

*Exchange Control Information* 

The Participant may be required to declare electronically to the Bank of Spain any foreign accounts (including brokerage accounts held abroad), any foreign instruments (including any shares of Common Stock acquired under the Plan) and any transactions with non-Spanish residents (including any payments of shares of Common Stock made to the Participant by the Corporation) depending on the value of such accounts and instruments and the amount of the transactions during the relevant year as of December 31 of the relevant year.

*Foreign Asset/Account Reporting Information*

If the Participant holds rights or assets (*e.g.*, shares of Common Stock or cash held in a bank or brokerage account) outside of Spain with a value in excess of €50,000 per type of right or asset (*e.g.*, shares of Common Stock, cash, etc.) as of December 31 each year, the Participant is required to report certain information regarding such rights and assets on tax form 720. After such rights and/or assets are initially reported, the reporting obligation will only apply for subsequent years if the value of any previously-reported rights or assets increases by more than €20,000 or if the ownership of the assets is transferred or relinquished during the year. The reporting must be completed by the following March 31.

**SWITZERLAND**

*Securities Law Information*

Neither this document nor any other materials relating to the Awards (i) constitutes a prospectus according to articles 35 et seq. of the Swiss Federal Act on Financial Services ("FinSA") (ii) may be publicly distributed or otherwise made publicly available in Switzerland to any person other than a participant or (iii) has been or will be filed with, approved or supervised by any Swiss reviewing body according to article 51 FinSA or any Swiss regulatory authority, including the Swiss Financial Market Supervisory Authority ("FINMA").

**TAIWAN**

*Data Privacy*

The following provision supplements the data privacy section in the Acknowledgment of Conditions section of the Award Agreement:

The Participant acknowledges that he or she has read and understands the terms regarding collection, processing and transfer of data contained in the Acknowledgment of Conditions section of the Award Agreement and, by participating in the Plan the Participant agrees to such terms. In this regard, upon request of the Corporation or the Employer, the Participant agrees to provide any executed data privacy consent form to the Employer or the Corporation (or any other agreements or consents that may be required by the Employer or the Corporation) that the Corporation and/or the Employer may deem necessary to obtain under the data privacy laws now or in the future. The Participant understands that he or she will not be able to participate in the Plan if the Participant fails to execute any such consent or agreement.

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*Securities Law Information*

The offer of participation in the Plan is available only for employees of the Corporation and its Affiliates. The offer of participation in the Plan is not a public offer of securities by a Taiwanese company.

*Exchange Control Information*

Taiwanese residents may acquire and remit foreign currency (including proceeds from the sale of shares of Common Stock or the receipt of dividends) into and out of Taiwan up to US$10,000,000 per year. If the transaction amount is TWD500,000 or more in a single transaction, the Participant must submit a foreign exchange transaction form and also provide supporting documentation to the satisfaction of the remitting bank.

**THAILAND**

*Exchange Control Information*

If the Participant receives proceeds from the sale of shares of Common Stock or cash dividends in relation to the shares of Common Stock in excess of US$1,000,000 in a single transaction, the Participant must immediately repatriate all the funds to Thailand (or utilize such funds offshore for permissible purposes) and convert the funds to Thai Baht within 360 days of repatriation or deposit the funds in an authorized foreign exchange account in Thailand. The Participant is also required to provide details of the transaction (i.e., identification information and purpose of the transaction) to the receiving bank.

The Participant should consult their personal advisor prior to taking any action with respect to remittance of proceeds from the sale of shares of Common Stock into Thailand. The Participant is responsible for ensuring compliance with all exchange control laws in Thailand.

**TURKEY**

*Securities Law Information*

Turkish residents are not permitted to sell shares of Common Stock acquired under the Plan in Turkey. Turkish residents must sell the shares of Common Stock acquired under the Plan outside of Turkey. The Shares are currently traded on the New York Stock Exchange in the U.S. under the ticker symbol "KMB" and shares of Common Stock may be sold on this exchange.

*Exchange Control Information*

Under Turkish law, Turkish residents are permitted to purchase and sell securities or derivatives traded on exchanges abroad only through a financial intermediary licensed in Turkey. Therefore, the Participant may be required to appoint a Turkish broker to assist him or her with the sale of the shares of Common Stock acquired under the Plan. *The Participant should consult his or her personal legal advisor before selling any shares of Common Stock acquired under the Plan to confirm the applicability of this requirement to the Participant.*

**UKRAINE**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Ukraine do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to Participant through local payroll. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

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**UNITED ARAB EMIRATES**

*Securities Law Information*

The offer of the Award is available only for select employees of the Corporation and its Affiliates and is in the nature of providing employee incentives in the United Arab Emirates. The Plan and the Award Agreement are intended for distribution only to such employees and must not be delivered to, or relied on, by any other person. Prospective purchasers of securities should conduct their own due diligence.

The Emirates Securities and Commodities Authority has no responsibility for reviewing or verifying any documents in connection with this statement, including the Plan and the Award Agreement, or any other incidental communication materials distributed in connection with the Award. Further, neither the Ministry of Economy nor the Dubai Department of Economic Development has approved this statement nor taken steps to verify the information set out in it, and has no responsibility for it. Residents of the United Arab Emirates who have any questions regarding the contents of the Plan and the Award Agreement should obtain independent professional advice.

**UNITED KINGDOM** 

*Tax Acknowledgment*

The following information supplements the information regarding Tax-Related Items in the Acknowledgment of Conditions section of the Award Agreement:

Without limitation to the information regarding Tax-Related Items in the Award Agreement, the Participant agrees that he or she is liable for all Tax-Related Items and hereby covenants to pay all such Tax-Related Items, as and when requested by the Corporation or, if different, the Employer or by HM Revenue & Customs ("HMRC") (or any other tax authority or any other relevant authority). The Participant agrees to indemnify and keep indemnified the Corporation and/or the Employer for all Tax-Related Items that they are required to pay, or withhold or have paid or will pay to HMRC on the Participant's behalf (or any other tax authority or any other relevant authority) and authorizes the Corporation and/or the Employer to recover such amounts by any of the means referred to in the Acknowledgment of Conditions section of the Award Agreement.

Notwithstanding the foregoing, if the Participant is an executive officer or director (as within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the Participant understands that he or she may not be able to indemnify the Corporation for the amount of any Tax-Related Items not collected from or paid by the Participant, if the indemnification could be considered a loan. In this case, the Tax-Related Items not collected or paid may constitute a benefit to the Participant on which additional income tax and National Insurance contributions ("NICs") may be payable.

The Participant acknowledges that the Participant ultimately will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying to the Corporation or the Employer (as appropriate) the amount of any NICs due on this additional benefit, which the Corporation and/or the Employer may also recover from the Participant at any time thereafter by any of the means referred to in the Acknowledgment of Conditions section of the Award Agreement.

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**UNITED STATES**

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| | |
|:---|:---|
| California | Nothing in this Award Agreement prevents the Participant from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that the Participant has reason to believe is unlawful. |
| Colorado | Nothing in this Award Agreement limits the Participant's ability to disclose or discuss, either orally or in writing, any alleged discriminatory or unfair employment practice. This Award Agreement does not prohibit disclosure of information that arises from the Participant's general training, knowledge, skill, or experience, whether gained on the job or otherwise, information that is readily ascertainable to the public, or information that the Participant otherwise has a right to disclose as legally protected conduct. |
| Hawaii | Nothing in this Award Agreement prevents the Participant from disclosing or discussing sexual harassment or sexual assault occurring in the workplace, at work-related events, between employees, or between an employer and an employee. |
| Illinois | Nothing in this Award Agreement prevents the Participant from making truthful statements or disclosures regarding unlawful employment practices or from reporting any allegations of unlawful conduct to federal, state, or local officials for investigation, including, but not limited to, alleged criminal conduct or unlawful employment practices. |
| Maine | Nothing in this Award Agreement prevents the Participant from disclosing or discussing unlawful employment discrimination occurring in the workplace or at work-related events. |
| New Jersey | Nothing in this Award Agreement requires the Participant to conceal the details relating to a claim of discrimination, retaliation, or harassment. |
| New York | Nothing in this Award Agreement prevents the Participant from (a) disclosing factual information related to any future claim of discrimination or (b) making any disclosure relating to any claim the factual foundation for which involves unlawful discrimination, including discriminatory harassment, or retaliation (including disclosure of the underlying facts and circumstances of the claim). |
| Oregon | Nothing in the Award Agreement prevents the Participant from disclosing or discussing conduct (a) that constitutes discrimination prohibited by ORS 659A.030 (Discrimination because of race, color, religion, sex, sexual orientation, gender identity, national origin, marital status, age or expunged juvenile record prohibited), including conduct that constitutes sexual assault, or by ORS 659A.082 (Discrimination against person for service in uniformed service prohibited) or 659A.112 (Employment discrimination), and (b) that occurred between employees or between an employer and an employee in the workplace or at a work-related event that is off the employment premises and coordinated by or through the employer, or between an employer and an employee off the employment premises. |
| Rhode Island | Nothing in this Award Agreement requires that alleged violations of civil rights or alleged unlawful conduct remain confidential. |
| Tennessee | Nothing in this Award Agreement prevents the Participant from disclosing sexual harassment in the workplace. |
| Vermont | Nothing in this Award Agreement restricts the Participant's right to oppose, disclose or report sexual harassment. |

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| | |
|:---|:---|
| Virginia | Nothing in this Award Agreement requires the Participant to conceal the details relating to a claim of sexual assault or sexual harassment. |
| Washington | Nothing in this Award Agreement (or any other agreement signed by the Participant) prevents the Participant from disclosing or discussing conduct, or the existence of a settlement involving conduct, that the Participant reasonably believed under Washington state, federal, or common law to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy. |
| Wisconsin | The Participant's confidentiality obligations outlined in Section 19(e) of this Award Agreement with regard to any particular Confidential Information shall commence immediately upon the Participant first having access to such Confidential Information and shall continue during and after employment with the Corporation and its Affiliates until such time as such Confidential Information has become public knowledge other than as a result of the Participant's breach of this Award Agreement or breach by those acting in concert with the Participant or on the Participant's behalf, and shall last for two (2) years after the Participant's employment with the Corporation or its Affiliates ends. Except for "trade secrets" as defined in Wisconsin Statutes §134.90, which are governed by that statute, (a) "Confidential Information" is limited to information that is not generally known to the public (other than through Participant's disclosure in breach of contract or violation of applicable law) and that would be of value to a competitor if known to that competitor, and (b) the prohibition on disclosure and use of Confidential Information shall apply only (i) during employment and for a period of two years after employment ends and (ii) within the geographic area in which the Corporation and its Affiliates were engaged in business at any time during the most recent three months of Participant's employment with the Corporation and its Affiliates. |

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**URUGUAY**

There are no country-specific provisions.

**VIETNAM**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Vietnam do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant through local payroll. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

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**KIMBERLY-CLARK CORPORATION**

**OFF-CYCLE TIME-VESTED RESTRICTED STOCK UNIT**

**AWARD AGREEMENT** 

**APPENDIX B** 

Subject to Section 19(h), the length of the Participant's non-competition obligations following termination of employment as set forth in Section 19(b) and/or Section 20(c) of this Award Agreement is based on the Participant's Salary Grade as of the date of termination of employment:

---

| | |
|:---|:---|
| **Salary Grade** | **Length of Non-Competition Obligation Following Termination of Employment** |
| ELT | Two (2) years |
| Non-ELT Elected Officers | Two (2) years |
| 1 | Two (2) years |
| 2 | Two (2) years |
| 3 | Two (2) years |
| 4 | Two (2) years |
| 5 | One (1) year |
| 6 | One (1) year |
| 7 | One (1) year |
| 8 | One (1) year |

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## Ex-10.T

**Exhibit (10)t**

**KIMBERLY-CLARK CORPORATION**

**ANNUAL TIME-VESTED RESTRICTED STOCK UNIT**

**AWARD AGREEMENT**

**(Graded Schedule)**

This Award, granted effective on __________ (the "Grant Date"), by Kimberly-Clark Corporation, a Delaware corporation (hereinafter called the "Corporation"), to ________________ (the "Participant") is subject to the terms and conditions of the Kimberly-Clark Corporation 2021 Equity Participation Plan (the "Plan") and the Award Agreement, including any terms and conditions contained in Appendix A and/or Appendix B to the Award Agreement.

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, the Corporation has adopted the Plan to encourage those employees who materially contribute, by managerial, scientific or other innovative means, to the success of the Corporation or of an Affiliate, to acquire an ownership interest in the Corporation, thereby increasing their motivation for and interest in the Corporation's and its Affiliates' long-term success;

NOW, THEREFORE, it is agreed as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Share Units Granted</u>. The Corporation hereby grants to the Participant the right to receive all or any part of ________ Annual Time-Vested Restricted Stock Units ("RSUs") of the $1.25 par value Common Stock of the Corporation, subject to the terms, conditions and restrictions set forth herein and in the Plan.

2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability Restrictions</u>.

(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Period</u>. During the Restricted Period, the Participant may not sell, assign, transfer, or otherwise dispose of, or mortgage, pledge or otherwise encumber the Award, and any such attempted sale, assignment, transfer, pledge or disposal shall be void. Except as provided in this Section 2, the RSUs, including any accrued dividend equivalents, shall be subject to forfeiture until the Participant becomes vested in such Awards on the date that was approved on the Grant Date and as reflected on the Merrill Lynch Benefits On-line site, or any successor system, via the Grant Summary screen as the Future Vesting table.

The Restricted Period shall begin on the date of the granting of this Award. Thirty percent (30%) of the RSUs will vest on the first anniversary of the Grant Date; thirty percent (30%) of the RSUs will vest on the second anniversary of the Grant Date; and forty percent (40%) of the RSUs will vest on the third anniversary of the Grant Date. During the Restricted Period, holders of Awards shall have none of the rights of a shareholder with respect to the shares of Common Stock that may be earned pursuant to the RSUs, including, but not limited to, any right to receive dividends in cash or other property or other distribution or rights in respect of such shares except as otherwise provided in this Award Agreement, nor any right to vote such shares as the record owner thereof.

During each year in the Restricted Period, the Participant will not be paid dividend equivalents on the unvested RSUs but the Participant will receive a credit equal to dividends declared on the Corporation's Common Stock which will be reinvested in additional RSUs at the then fair market value of the Corporation's Common Stock on the date dividends are paid, and the additional RSUs will be accumulated and paid if and when the RSUs vest, based on the actual number of RSUs that vest. In the case of dividends paid in property other than cash, the amount of the dividend shall be deemed to be the fair market value of the property at the time of the payment of the dividend, as determined in good faith by the Corporation. The Corporation shall not be required to segregate any cash or other property of the Corporation.

(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Employment</u>. For purposes of this Award, the Participant's employment will be considered terminated as of the date the Participant is no longer actively providing services to the Corporation or one of its Affiliates (regardless of the reason for such termination and whether or not later

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found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant's employment agreement, if any), and unless otherwise expressly provided in this Award Agreement or determined by the Corporation, the Participant's right to receive RSUs and vest in the Award under the Plan, if any, will terminate effective as of such date and will not be extended by any notice period or any period of "garden leave" or similar period mandated under employment laws in the jurisdiction where the Participant is employed or the terms of the Participant's employment agreement, if any); the Committee shall have the exclusive discretion to determine when the Participant is no longer employed for purposes of the Award (including whether the Participant may still be considered employed while on a leave of absence).

The Participant shall forfeit any unvested Award, including any accrued dividend equivalents, upon termination of employment unless such termination is (i) due to a Qualified Termination of Employment, or (ii) if more than six months from the Grant Date due to death, Retirement, Total and Permanent Disability, or the shutdown or divestiture of a business unit. A termination of employment shall not be deemed to have occurred while a Participant is on a military leave or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Participant retains a right to reemployment with the Corporation or an Affiliate under an applicable statute or by contract. For purposes of this sub-section, a leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Corporation or an Affiliate. If the period of leave exceeds six months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence is substituted for such six-month period in determining whether a termination of employment shall be deemed to have occurred. A termination of employment with the Corporation or an Affiliate to accept immediate reemployment with the Corporation or an Affiliate likewise shall not be deemed to be a termination of employment for the purposes of the Plan. A Participant who is classified as an intermittent employee shall be deemed to have a termination of employment for purposes of the Plan if the level of bona fide services the Participant would perform after such date would permanently decrease to less than 50 percent of the average level of bona fide services performed over the immediately preceding 36-month period (or the full period of services to the Corporation or an Affiliate if the Participant has been providing such services less than 36 months).

For purposes of this Award, a termination of employment includes a termination that is deemed an "unfair dismissal" or a "constructive dismissal." Further, the Participant understands that the Award is a conditional right. Participant shall forfeit any unvested Award upon termination of employment except as provided above, for example, regardless of whether (1) the Participant is considered to be unfairly dismissed without good cause; (2) the Participant is dismissed for disciplinary or objective reasons or due to a collective dismissal; (3) the Participant terminates his or her employment or service relationship due to a change of work location, duties or any other employment or contractual condition; or (4) the Participant terminates his or her employment or service relationship due to a unilateral breach of contract by the Corporation or an Affiliate. Consequently, upon termination of the Participant's employment or service relationship for any of the above reasons, the Participant may automatically lose any rights to the RSUs that were not vested on the date of termination of the Participant's employment or service relationship, as described in the Plan and the Award Agreement.

(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Death Retirement or Total and Permanent Disability</u>. In the event that more than six months after the Grant Date the Participant's termination of employment is due to death or Total and Permanent Disability, it shall result in full vesting, as determined by the Committee, and shall be paid, within 70 days following the Participant's termination of employment or within such later period as permitted by Section 409A of the U.S. Internal Revenue Code of 1986 and the regulations thereunder, as amended from time to time (the "Code"), subject to Section 20(l) of the Plan, if applicable. In the event that more than six months after the Grant Date the Participant's termination of employment is due to Retirement, then

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provided that, in the sole discretion of the Corporation, (i) no circumstances exist that could lead to a determination that the Participant should be, or could have been, terminated for Cause; and (ii) the Participant has not engaged in conduct that would trigger the right of forfeiture or recoupment under Section 21 of this Award Agreement), it shall result in 100% vesting of any RSUs that are outstanding and unvested under this Award grant and such Award shall be paid 70 days following the Participant's termination of employment or within such later period as permitted by Section 409A of the Code, subject to Section 20(l) of the Plan, if applicable.

(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Shutdown or Divestiture</u>. In the event that more than six months after the Grant Date the Participant's termination of employment is due to the shutdown or divestiture of the Corporation's or its Affiliate's business it shall result in pro rata vesting, as determined by the Committee, and the number of shares that are considered to vest shall be calculated as (1) the total number of RSUs granted under the Award minus the number of RSUs already vested under the Award multiplied by (2) the number of full months of employment during the Restricted Period divided by 36. Any fractional share of the Corporation resulting from such a prorated award shall be rounded to the nearest whole share and shall be paid, along with any other shares earned under such prorated award, within 70 days following the Participant's termination of employment or within such later period as permitted by Section 409A of the Code. For the purposes of this Award, a shutdown or divestiture of the Corporation's or its Affiliate's business unit is defined as one for which the charges related to the shutdown or divestiture are accounted for, and reported externally, as an exit activity in the Corporation's applicable SEC filings. The Corporation has complete discretion to determine whether a shutdown or divestiture of a business unit has occurred under the terms of the Plan.

(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Qualified Termination of Employment</u>. In the event of a Qualified Termination of Employment, all restrictions will lapse and the shares will become fully vested and shall be paid within 10 days following the last day of employment of the Participant with the Corporation or an Affiliate, subject to Section 20(l) of the Plan, if applicable.

(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Awards</u>. Unless otherwise set forth herein, the payment of the Award shall be made in shares of Common Stock and the payment of an Award shall be made within 70 days following the end of the Restricted Period.

(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Tax-Related Items</u>. No shares of Common Stock, nor any cash payment, may be delivered under this Award, unless prior to or simultaneously with such issuance, the Participant or, in the event of his death, the person succeeding to his rights hereunder, shall pay to the Corporation or an Affiliate, as applicable, such amount as the Corporation advises is required under applicable federal, state or local laws to withhold and pay over to governmental taxing authorities in relation to this Award. The Corporation may, in its discretion, withhold payment of required Tax-Related items (as defined in the Acknowledgment of Conditions section) with cash or shares of Common Stock which otherwise would be delivered following the date of vesting of the Award under this Section 2.

(h) &nbsp;&nbsp;&nbsp;&nbsp;<u>Payments to Key Employees</u>. Notwithstanding anything in this Agreement to the contrary, to the extent that the Award may constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code, the payment of an Award to a Key Employee who has separated from service due to a Qualified Termination of Employment, a Total and Permanent Disability or Retirement, or a shutdown or divestiture of the Corporation's or its Affiliate's business (pursuant to Sections 2(c), 2(d) or 2(e) above, respectively) shall be made at the earlier of the first day of the seventh month following the date of separation from service or the end of the Restricted Period. A Key Employee is any Participant who meets the definition of a specified employee as defined in Section 409A(a)(2)(B)(i) of the Code and the regulations promulgated thereunder.

3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Nontransferability</u>. Neither the Award nor the Participant's right to receive payment for vested Awards may be assigned or transferred except upon the death of the Participant (i) by will or (ii) by the laws of descent and distribution.

4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Law</u>. No payment may be made under this Award, unless prior to the issuance thereof, the Corporation shall have received an opinion of counsel to the effect that this Award by the

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Corporation to the Participant will not constitute a violation of the U.S. Securities Act of 1933, as amended. As a condition of this Award, the Participant shall, if requested by the Corporation, submit a written statement in form satisfactory to counsel for the Corporation, to the effect that any shares received under this Award shall be for investment and not with a view to the distribution thereof within the meaning of the U.S. Securities Act of 1933, as amended, and the Corporation shall have the right, in its discretion, to cause the certificates representing shares hereunder to be appropriately legended to refer to such undertaking or to any legal restrictions imposed upon the transferability thereof by reason of such undertaking.

The Award granted hereby is subject to the condition that if the listing, registration or qualification of the shares subject hereto on any securities exchange or under any state or federal law, or if the consent or approval of any regulatory body shall be necessary as a condition of, or in connection with, the granting of the Award or the delivery of shares thereunder, such shares may not be delivered unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained. The Corporation agrees to use its best efforts to obtain any such requisite listing, registration, qualification, consent or approval.

The Participant is solely responsible for obtaining/providing whatever exchange control approvals, permits, licenses, or notices, which may be necessary for the Participant to hold the Award, or to receive any payment of cash or shares or to hold or sell the shares subject to the Award, if any. Neither the Corporation nor its Affiliates will be responsible for obtaining any such approvals, licenses or permits, or for making any such notices, nor will the Corporation or its Affiliates be liable for any fines or penalties the Participant may incur for failure to obtain any required approvals, permits or licenses or to make any required notices.

5.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Right of Continued Employment</u>. The granting of this Award does not confer upon the Participant any legal right to be continued in the employ of the Corporation or its Affiliates, and the Corporation and its Affiliates reserve the right to discharge the Participant whenever the interest of the Corporation or its Affiliates may so require without liability to the Corporation or its Affiliates, the Board of Directors of the Corporation or its Affiliates, or the Committee, except as to any rights which may be expressly conferred on the Participant under this Award.

6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Discretion of the Corporation, Board of Directors and the Committee</u>. Any decision made or action taken by the Corporation or by the Board of Directors of the Corporation or by the Committee arising out of or in connection with the construction, administration, interpretation and effect of this Award shall be within the absolute discretion of the Corporation, the Board of Directors of the Corporation or the Committee, as the case may be, and shall be conclusive and binding upon all persons.

7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Inalienability of Benefits and Interest</u>. This Award and the rights and privileges conferred hereby shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any such attempted action shall be void and no such benefit or interest shall be in any manner liable for or subject to debts, contracts, liabilities, engagements, or torts of the Participant.

8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law and Consent to Jurisdiction</u>. Subject to Section 19(h) below, all questions pertaining to the construction, interpretation, regulation, validity and effect of the provisions of this Award and any rights under the Plan shall be determined in accordance with the laws of the State of Delaware. The Corporation, its Affiliates, and the Participant (a) hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts in the State of Delaware for the purposes of any claim or action arising out of or based upon this Award Agreement or relating to the subject matter hereof; (b) hereby waive, to the extent not prohibited by applicable law, and agree not to assert by way of motion, as a defense or otherwise, in any such claim or action, any claim that it, he or she is not subject personally to the jurisdiction of the above-named courts, that its, his or her property is exempt or immune from attachment or execution, that any such proceeding brought in the above-named court is improper or that this Award Agreement or the subject matter hereof may not be enforced in or by such

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court; and (c) hereby agree not to commence any claim or action arising out of or based upon this Award Agreement or relating to the subject matter hereof other than before the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such claim or action to any court other than the above-named courts whether on the grounds of inconvenient forum or otherwise; provided, however, that the Corporation, its Affiliates, and the Participant may seek to enforce a judgment issued by the above-named courts in any proper jurisdiction. The Corporation, its Affiliates, and the Participant hereby consent to service of process in any such proceeding, and agree that service of process by registered or certified mail, return receipt requested is reasonably calculated to give actual notice.

9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase of Common Stock</u>. The Corporation and its Affiliates may, but shall not be required to, purchase shares of Common Stock of the Corporation for purposes of satisfying the requirements of this Award. The Corporation and its Affiliates shall have no obligation to retain and shall have the unlimited right to sell or otherwise deal with for their own account, any shares of Common Stock of the Corporation purchased for satisfying the requirements of this Award.

10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any notice to be given to the Corporation under this Award, except as required under Sections 19 and 20 below, shall be addressed to the Corporation in care of its Chief Human Resources Officer at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA, and any notice to be given to the Participant under the terms of this Award may be addressed to him or her at the address as it appears on the Corporation's records, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given if and when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, registered and deposited, postage and registry fee prepaid, in a post office or branch post office regularly maintained by the United States Government or any equivalent non-U.S. postal service.

11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Changes in Capitalization</u>. In the event there are any changes in the Common Stock or the capitalization of the Corporation through a corporate transaction, such as any merger, any acquisition through the issuance of capital stock of the Corporation, any consolidation, any separation of the Corporation (including a spin-off or other distribution of stock of the Corporation), any reorganization of the Corporation (whether or not such reorganization comes within the definition of such term in Section 368 of the Code), or any partial or complete liquidation by the Corporation, recapitalization, stock dividend, stock split or other change in the corporate structure, appropriate adjustments and changes shall be made by the Committee in (a) the number and type or class of shares subject to this Award, and (b) such other provisions of this Award as may be necessary and equitable to carry out the foregoing purposes.

12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect on Other Plans</u>. All benefits under this Award shall constitute special incentives and shall not affect the level of benefits provided to or received by the Participant (or the Participant's estate or beneficiaries) as part of any employee benefit plan of the Corporation or an Affiliate. This Award shall not be construed to affect in any way the Participant's rights and obligations under any other plan maintained by the Corporation or an Affiliate on behalf of employees.

13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Discretionary Nature of Award</u>. The grant of an Award is a one-time benefit and does not create any contractual or other right to receive a grant of Awards or benefits in lieu of Awards in the future. Future grants, if any, will be at the sole discretion of the Corporation, including, but not limited to, the timing of any grant, the number of RSUs and vesting provisions. The value of the Award is an extraordinary item outside the scope of the Participant's employment contract, if any. As such, the Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, leave-related payments, holiday pay, pension, retirement or welfare benefits or similar payments.

14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Data Privacy</u>. The Participant hereby authorizes their actual employer (the "Employer") to furnish the Corporation (and any agent of the Corporation administering the Plan or providing Plan recordkeeping services) with such information and data as it shall request in order to facilitate the grant

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of Awards and administration of the Plan and the Participant waives any data privacy rights such Participant might otherwise have with respect to such information. The Controller of personal data processing is Kimberly-Clark Corporation with registered offices at 351 Phelps Drive, Irving, Texas 75038, United States of America*.***

15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Conflict with Plan or Other Documents</u>. This Award is awarded pursuant to and subject to the Plan. This Agreement is intended to supplement and carry out the terms of the Plan. It is subject to all terms and provisions of the Plan and, in the event of a conflict, the Plan shall prevail. In the event of any conflict between this Agreement and the terms of any notice, communication, plan summary, prospectus or other ancillary documentation relating to the Award, this Agreement will prevail.

16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>. This Award Agreement, including but not limited to the restrictive covenants described in Sections 19 and 20 below, shall be binding upon and inure to the benefit of any successor or successors of the Corporation.

17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments</u>. The Committee may at any time alter or amend this Award to the extent (a) permitted by law, (b) permitted by the rules of any stock exchange on which the Common Stock or any other security of the Corporation is listed, and (c) permitted under applicable provisions of the U.S. Securities Act of 1933, as amended, the U.S. Securities Exchange Act of 1934, as amended (including rule 16b-3 thereof).

18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. Terms which are capitalized are defined herein or in the Plan and have the same meaning set forth in the Plan, unless the context indicates otherwise.

19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants For U.S. Participants</u>.

(a)<u>Application</u>. The provisions of this Section 19 apply to Participants who are employed by the Corporation or an Affiliate located in the United States and are subject to the laws of the United States as of the date of termination of the Participant's employment; provided, however, that to the extent the Participant is party to an employment or other agreement with the Corporation or any Affiliate containing non-competition, non-solicitation, confidentiality, business ideas or similar restrictions (a "standalone restrictive covenant agreement"), whether or not such standalone restrictive covenant agreement has been agreed to before or after execution of this Award Agreement, that standalone restrictive covenant agreement and related enforcement provisions shall apply and the following provisions of this Section 19 shall also apply, unless otherwise determined by the Corporation in its sole discretion. Notwithstanding the foregoing, Section 19(l) below shall apply in any case.

(b)<u>Non-Competition</u>. Subject to Section 19(h), it is acknowledged that the Participant has acquired or will acquire Confidential Information during the Participant's employment with the Corporation or any Affiliate, and should the Participant's employment cease, the Participant will inevitably use or disclose the Corporation's or an Affiliate's Confidential Information while working in a competitive role. It is further acknowledged that it may be difficult to police Section 19(e) below, prohibiting the disclosure of such Confidential Information as well as the non-solicitation sub-sections set out below. For these reasons, during the term of the Participant's employment with the Corporation or any Affiliate and for the applicable period listed in Appendix B of this Award Agreement following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, in any country or countries for which the Participant had development, marketing, innovation/technology (R&D), distribution, sales, administrative, operational/supply chain, manufacturing oversight, or other responsibilities during the last two (2) years of the Participant's employment or was provided with regular and material access to Confidential Information regarding the Corporation's or an Affiliate's business operations in that country or countries during the last two (2) years of the Participant's employment, either directly or indirectly, perform duties or undertake responsibilities (including without limitation as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, officer, volunteer, intern, or any other similar capacity) for a Competitor (as defined below) that are the same or substantially similar to those duties or responsibilities that the Participant performed or undertook for the Corporation or an Affiliate during the two (2) year period prior to the end of the Participant's employment with the Corporation or an Affiliate. "Confidential Information," for purposes of this Section 19, shall mean (i) statutory trade secrets; (ii) proprietary information developed

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(c)<u>Non-Solicitation of Employees</u>. Subject to Section 19(h), for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date, and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate, or (ii) be otherwise involved in the recruitment of such person, to leave the employment of the Corporation or of any Affiliate. Furthermore, the Participant shall not for a period of two (2) years following the termination date, regardless of the reason for or the manner of termination, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor or (ii) be otherwise involved in the recruitment of such person to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor. The Participant must inform the Corporation immediately on becoming aware of any such recruitment.

(d)<u>Non-Solicitation of Business</u>. Subject to Section 19(h), during the term of the Participant's employment and for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, either directly or indirectly, on the Participant's own behalf or on behalf of any other person, firm or company or other entity, solicit, interfere with, entice or endeavor to entice away from the Corporation or any Affiliate any Restricted Customer (as defined below), or seek to conduct Restricted Business (as defined below), or conduct Restricted Business, with any Restricted Customer and/or otherwise persuade, induce, solicit or

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encourage any person or entity to terminate its contractual relationship with the Corporation or any Affiliate. "Restricted Business," for purposes of this Section 19, means any business activity carried out by the Participant for the Corporation or any Affiliate during the last two (2) years preceding the Participant's termination date. "Restricted Customer," for purposes of this Section 19, means any person, firm or company or other entity who was a customer or distributor of the Corporation or any Affiliate as at the Participant's termination date, or during the last two (2) years preceding the Participant's termination date, and (i) with whom the Participant had material contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, or (ii) in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information, including any Prospective Customer. "Prospective Customer," for purposes of this Section 19, means any person, firm or company or other entity with whom the Corporation or any Affiliate was involved in negotiations as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, with a view to dealing with it as a customer and/or to conclude a contractual relationship with such entity, and where such negotiations have involved more than nominal expense or time commitment, and/or with whom the Participant had contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date with a view to dealing with it as a customer of the Corporation or any Affiliate and/or to conclude a contractual relationship with such entity or in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information.

(e)<u>Confidentiality</u>. Subject to Sections 19(f) and 19(h), the Participant acknowledges that the Corporation and its Affiliates continually develop Confidential Information, that the Participant may develop Confidential Information for the Corporation or its Affiliates and that the Participant may learn of Confidential Information during the course of the employment relationship. The Corporation has expended and will continue to expend substantial effort and monies in acquiring knowledge and expertise in developing goodwill in the Business of the Corporation. Participant therefore agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.The Participant will comply with the policies and procedures of the Corporation for protecting Confidential Information and shall not disclose to any person or use, other than as required by applicable law or for the proper performance of the Participant's duties and responsibilities to the Corporation and its Affiliates, any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.The Participant understands that the restrictions set forth in this Section 19(e) shall continue to apply after the employment relationship terminates, regardless of the reason for such termination. The Participant understands and acknowledges that the Participant's obligations under this Award Agreement with regard to any particular Confidential Information shall commence immediately upon the Participant first having access to such Confidential Information and shall continue during and after employment with the Corporation or an Affiliate until such time as such Confidential Information has become public knowledge other than as a result of the Participant's breach of this Award Agreement or breach by those acting in concert with the Participant or on the Participant's behalf, and shall be indefinite where permitted by state and local law, and shall not continue longer than two (2) years where indefinite confidentiality provisions are not permitted. Notwithstanding, the Participant's confidentiality obligations under this Award Agreement with regard to any trade secrets shall continue during and after the Participant 's employment by the Corporation or an Affiliate until such trade secrets are no longer trade secrets under applicable law.

(f)<u>Protected Rights.</u> Notwithstanding any other provision of this Award Agreement, nothing in this Award Agreement shall restrict the Participant's right to (i) report violations of law to law enforcement officials; (ii) give truthful testimony under oath in a judicial, administrative, or arbitral proceeding; (iii) file a charge with, make truthful statements to, cooperate with investigations by, or assist others in proceedings before state or federal governmental agencies or any other self-regulatory organization (including the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board,

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the Financial Industry Regulatory Authority, and the U.S. Securities and Exchange Commission); (iv) speak with an attorney representing the Participant; (v) discuss the facts related to any claim of sexual assault or sexual harassment; (vi) engage in whistle-blower activity protected by the Securities Exchange Act of 1934, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or any rules or regulations issued thereunder (including Rule 21F-17); (vii) file or disclose any facts necessary to receive unemployment insurance, Medicaid, or other public benefits to which the Participant may be entitled; (viii) exercise rights under Section 7 of the National Labor Relations Act, including the right to discuss terms and conditions of employment with co-workers and labor unions; or (ix) otherwise disclose information that Participant is legally entitled to disclose pursuant to applicable law, provided that the disclosure does not exceed the extent of disclosure required by law. The Participant shall promptly provide written notice of any such order to an authorized officer of the Corporation or its Affiliates. In addition, pursuant to the Defend Trade Secrets Act of 2016, (i) the Participant shall not be held criminally, or civilly, liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence either directly or indirectly to a federal, state, or local government official, or an attorney, for the sole purpose of reporting, or investigating, a violation of law; (ii) the Participant agrees and understands that individuals may disclose trade secrets in a complaint, or other document, filed in a lawsuit, or other proceeding, if such filing is made under seal; and (iii) the Participant agrees and understands that an individual who files a lawsuit alleging retaliation by the Corporation or its Affiliates for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. For the avoidance of doubt, the Participant's past, present or future exercise of any rights described in this Section 19(f) shall not constitute a breach of this Award Agreement.

(g)<u>Business Ideas</u>. Subject to Section 19(h), the Participant acknowledges that the Corporation owns all rights in all Business Ideas (as defined below). For the avoidance of doubt, in the event an assignment is needed during the term of the Participant's employment with the Corporation or any Affiliate and at any time following the termination of employment, the Participant hereby assigns without further action being required to the Corporation all Business Ideas. The Participant shall promptly execute all documents which the Corporation may reasonably require to perfect, maintain and protect its patent, copyright, trade secret, trademark and any and all other rights to such Business Ideas throughout the world, and shall provide other reasonable assistance and cooperation as may be necessary for the Corporation to investigate, perfect, maintain and protect those rights, including assistance and cooperation with litigation relating to any Business Ideas. Even after the Participant's employment with the Corporation or any Affiliate terminates, the Participant will continue to be reasonably available to assist the Corporation with its efforts to investigate, perfect, maintain and protect rights in any Business Ideas, including assistance with litigation relating to any Business Ideas. "Business Ideas" as used in this Award Agreement means all ideas, concepts, innovations, inventions, strategy, data, developments, and works of authorship, whether or not patentable, both technical and business, which the Participant originates, conceives or develops, either alone or in conjunction with others, at any time during the Participant's employment with the Corporation or any Affiliate, except those which satisfy all three of the following criteria: (i) unrelated to the Corporation's business; (ii) not originated, conceived or developed during the Participant's working hours; and (iii) not originated, conceived or developed by use of any Corporation property such as tools, supplies, equipment, materials, facilities or other Corporation employees. Any idea, concept, innovation, invention, strategy, data, development or work of authorship that the Participant originates, conceives or develops, through the use of Corporation Confidential Information, at any time within six (6) months after the Participant's employment with the Corporation or any Affiliate terminates (for any reason) will be presumed to be a Business Idea unless the Participant can prove otherwise by clear and convincing evidence.

(h)<u>State-Specific Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.If the Participant lives or works in **California** at the time of or after termination of employment, (A) Section 19(b), Section 19(c), and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends, and (B) the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and

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federal courts of California for any dispute arising under this Agreement and that this Agreement shall be governed by California law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.If the Participant primarily lives or works in **Colorado** at the time of termination of employment, the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of Colorado for any dispute arising under Section 19(b) or Section 19(d) and that those Sections shall be governed by Colorado law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.If the Participant's principal place of employment is **Minnesota**, Section 19(b) does not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.If the Participant's principal place of employment is **North Dakota**, Section 19(b) and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.If the Participant's principal place of employment is **Oklahoma**, Section 19(b) and Section 19(d) do not apply after the Participant's employment with the Corporation or its Affiliates ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.If the Participant's principal place of employment is **Washington**, the Participant and the Corporation and its Affiliates agree to the exclusive jurisdiction of the state and federal courts of Washington for any dispute arising under Section 19(b) and that Section 19(b) shall be governed by Washington law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii.If the Participant's principal place of employment is a state listed the United States sub-section of ***Appendix A***, then the applicable provision(s) in ***Appendix A*** shall also apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii.This Award Agreement shall not require the Participant to assign the Participant's rights in any invention that qualifies fully for the protection of a state law applicable to the Participant that governs assignment of inventions, such as California Labor Code § 2870, which provides:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable*.

(i)<u>Notification Requirement</u>. During the term of the Participant's employment with the Corporation or any Affiliate and for the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, regardless of the reason for or the manner of termination, the Participant agrees to notify the Corporation in writing prior to accepting new employment, or engaging in any other activity which may violate this Award Agreement, and the Participant agrees to provide in such notice information concerning the anticipated new employment or activity, including, but not limited to: name of new employer; address of new employer; name of new team leader; job title; and scope and responsibilities of the new position. The Participant recognizes that such duty of notification is not affected by the Participant's belief that such employment may perhaps not violate this Award Agreement or otherwise be unfairly competitive with the Corporation or an Affiliate. The Participant's written notice should be addressed to the

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Corporation's General Counsel with subject line Non-Competition Agreement, via email to <u>Noncompete.Notification@kcc.com</u>.

(j)<u>Other Notification</u>. During the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant shall provide a copy of Section 19 of this Award Agreement to each new employer before starting in any new employment. The Participant agrees that the Corporation may notify any third party about the Participant's obligations under Section 19 of this Award Agreement until such obligations are fulfilled.

(k)<u>Damages and Remedies</u>. In the event of an anticipated, threatened, or actual breach by the Participant of any of the provisions of this Section 19, the Corporation and its Affiliates shall be entitled to all damages available as a matter of law. The Participant acknowledges and agrees that any damages would not be an adequate remedy to compensate the Corporation or an Affiliate for the harm to the business of the Corporation or the Affiliate and, in such event, agrees that the Corporation or the Affiliate, as applicable, shall be entitled to a temporary restraining order and to injunctive relief to prevent or terminate such anticipated or actual breach, provided, however, that nothing in this Award Agreement shall be construed to limit any additional relief to which the Corporation or the Affiliate may be entitled or the damages otherwise recoverable by the Corporation or the Affiliate in any such event.

(l)<u>Forfeiture of Award</u>. Notwithstanding the Corporation's or an Affiliate's ability to pursue injunctive relief pursuant to Section 19(k), in the event of an actual breach by the Participant of any of the provisions of this Section 19 or of any stand-alone restrictive covenant agreement, the Corporation also is entitled to: (i) require the Participant to repay to the Corporation, immediately upon demand, an amount equal to the value of the shares of Common Stock issued on settlement of the RSUs (less $1,000); and/or (ii) forfeit any portion of the Award that has not vested or been settled yet at the time the Corporation becomes aware of the breach.

(m)<u>Reimbursement of Fees</u>. If the Participant violates any of the provisions of this Section 19, or any duty of loyalty or confidentiality imposed by law, in addition to any damages that the Participant may be required to pay, the Participant understands and agrees that the Participant shall be required to reimburse the Corporation for all its costs incurred to enforce this Award Agreement, including but not limited to, all attorneys' fees.

(n)<u>Successors and Beneficiaries</u>. For purposes of this Section 19, the Corporation and each of its Affiliates shall be deemed to be third-party beneficiaries with the right to seek enforcement of any of the provisions of this Section 19. Further, for purposes of this Section 19, references to acting directly or indirectly include acting jointly with or through another person.

(o)<u>Prior Restrictive Covenants</u>. Participant acknowledges and agrees that Participant is not a party to any agreement with any other company containing a confidentiality or noncompetition provision or other restriction that relates to the Business of the Corporation which Participant has not already disclosed to the Corporation or its Affiliates in writing. Participant understands that Participant is prohibited from disclosing or using during Participant's employment with the Corporation any confidential information or trade secrets that Participant acquired from any previous employer.

(p)<u>Severability and Reformation</u>. If any provision of this Section 19 is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such provision shall be deemed to be severed from the Award Agreement and such invalidity, illegality or unenforceability will not affect any other provision of the Award Agreement, all of which shall remain valid and enforceable. Notwithstanding the foregoing, if a court of competent jurisdiction determines that the covenants contained in this Section 19 are unenforceable because they are overbroad in some respect, to the full extent permitted by applicable law, the court should sever, revise or reform any aspect of this Section 19 so as to make the scope of such Section 19 as broad as reasonable under applicable law and enforce this Section 19 as so modified. Without limiting the foregoing, if a court, government agency or other body of competent jurisdiction establishes or the Corporation otherwise determines that the covenants contained in this Award Agreement are unenforceable and/or in violation of applicable rules, the Corporation reserves the right to unilaterally amend the Award Agreement so as to comply with applicable rules.

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(q)<u>Advice to Seek Independent Counsel</u>. The Participant is hereby advised in writing to consult with an attorney before entering into the covenants outlined in this Section 19. The Participant acknowledges that prior to acceptance of this Award Agreement, the Participant has been advised by the Corporation of the Participant's right to seek independent advice from an attorney of the Participant's own selection regarding this Award Agreement, including the restraints imposed upon the Participant pursuant to this Section 19. The Participant acknowledges that the Participant has entered into this Award Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Award Agreement after being given the opportunity to consult with counsel. The Participant further represents that in entering into this Award Agreement, the Participant is not relying on any statements or representations made by any of the Corporations' directors, officers, employees or agents which are not expressly set forth herein, and that the Participant is relying only upon the Participant's own judgment and any advice provided by the Participant's attorney. The Participant acknowledges he or she has been provided at minimum 14 calendar days to review the provisions contained herein.

(r)<u>Tolling</u>. Subject to Section 19(h), if the Participant violates any of the restrictions of this Section 19, the period for all such restrictions shall automatically be extended by the period the Participant was in violation of them.

(s)<u>Acknowledgements</u>. The Participant acknowledges and agrees that employment with the Corporation or any Affiliate affords the Participant unique opportunities for professional and personal development; that the services rendered by the Participant to the Corporation or any Affiliate are of a special and unique character; that the Participant will obtain knowledge and skill relevant to the Corporation's industry, methods of doing business, and strategies by virtue of the Participant's employment; that the Participant may be able to utilize such knowledge to the detriment of the Corporation and its Affiliates; and that the terms and conditions of this Section 19 are reasonable under the circumstances. The Participant further acknowledges that the Participant will not be subject to undue hardship by reason of the Participant's full compliance with the terms and conditions of this Section 19 or the Corporation's or its Affiliate's enforcement thereof.

20.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Covenants For Participants Outside the U.S</u>.

(a)<u>Application</u>. The provisions of this Section 20 apply to Participants who are employed by an Affiliate located outside the United States and are subject to the laws of a jurisdiction outside of the United States as of the date of termination of the Participant's employment, provided, however, that to the extent the Participant is party to an employment or other agreement with any Affiliate containing non-competition, non-solicitation, confidentiality, business ideas or similar restrictions (the "local restrictive covenants"), whether or not such local restrictive covenants have been agreed to before or after execution of this Award Agreement, those local restrictive covenants and related enforcement provisions shall apply and the following provisions of this Section 20 shall also apply, unless otherwise determined by the Corporation in its sole discretion. Notwithstanding the foregoing, Section 20(j) below shall apply in any case.

(b)<u>Confidentiality</u>. During the Participant's employment with the Corporation or any Affiliate and indefinitely thereafter, the Participant undertakes to maintain the confidentiality of, and not to divulge to any person (except as required by law) any of the Corporation's or any Affiliate's Confidential Information (as defined below), nor use the same for any other purpose, other than to carry out the Participant's functions as an employee of the Corporation or any of its Affiliates. The Participant shall use all personal endeavors to prevent publication or disclosure of such Confidential Information. The Participant will comply with the policies and procedures of the Corporation for protecting Confidential Information and shall not disclose to any person or use, other than as required by applicable law or for the proper performance of the Participant's duties and responsibilities to the Corporation and its Affiliates, any Confidential Information. Nothing in this Award Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order, including initiating, testifying, assisting, complying with a subpoena from, or participating in any manner with an investigation conducted by a local agency, filing or disclosing any facts necessary to receive

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(c)<u>Non-Competition</u>. It is acknowledged that the Participant has acquired or will acquire Confidential Information during the Participant's employment with the Corporation or any Affiliate, and should the Participant's employment cease, the Participant will inevitably use or disclose the Corporation's or an Affiliate's Confidential Information while working in a competitive role. It is further acknowledged that it may be difficult to police Section 20(b) above, prohibiting the disclosure of such Confidential Information as well as the non-solicitation sub-sections set out below. For these reasons, during the term of the Participant's employment and for the applicable period listed in Appendix B of this Award Agreement following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, in any country or countries for which Participant had development, marketing, innovation/technology (R&D), distribution, sales, administrative, operational/supply chain, manufacturing oversight, or other responsibilities during the last two (2) years of Participant's employment or was provided with regular and material access to Confidential Information regarding the Corporation's or an Affiliate's business operations in that country or countries during the last two (2) years of Participant's employment, either directly or indirectly, perform duties or undertake responsibilities (including without limitation as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, officer, volunteer, intern, or any other similar capacity) for a Competitor that are the same or substantially similar to those duties or responsibilities that the Participant performed or undertook for the Corporation or an Affiliate during the two (2) year period prior to the end of the Participant's employment with the Corporation or an Affiliate.

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(d)<u>Business Ideas</u>. The Participant acknowledges that the Corporation owns all rights in all Business Ideas (as defined below). For the avoidance of doubt, in the event an assignment is needed during the term of the Participant's employment with the Corporation or any Affiliate and at any time following the termination of employment, the Participant hereby assigns without further action being required to the Employer all Business Ideas. The Participant shall promptly execute all documents which the Corporation may reasonably require to perfect, maintain and protect its patent, copyright, trade secret, trademark and any and all other rights to such Business Ideas throughout the world, and shall provide other reasonable assistance and cooperation as may be necessary for the Corporation or the Employer to investigate, perfect, maintain and protect those rights, including assistance and cooperation with litigation relating to any Business Ideas. Even after the Participant's employment with the Corporation or any Affiliate terminates, the Participant will continue to be reasonably available to assist the Corporation or the Employer with its efforts to investigate, perfect, maintain and protect rights in any Business Ideas, including assistance with litigation relating to any Business Ideas. "Business Ideas" as used in this Award Agreement means all ideas, concepts, innovations, inventions, strategy, data, developments, and works of authorship, whether or not patentable, both technical and business, which the Participant originates, conceives or develops, either alone or in conjunction with others, at any time during the Participant's employment with the Corporation or any Affiliate, except those which satisfy all three of the following criteria: (i) unrelated to the Corporation's business; (ii) not originated, conceived or developed during the Participant's working hours; and (iii) not originated, conceived or developed by use of any Corporation property such as tools, supplies, equipment, materials, facilities or other Corporation employees. Any idea, concept, innovation, invention, strategy, data, development or work of authorship that the Participant originates, conceives or develops, through the use of Corporation Confidential Information, at any time within six (6) months after the Participant's employment with the Corporation or any Affiliate terminates (for any reason) will be presumed to be a Business Idea unless the Participant can prove otherwise by clear and convincing evidence.

(e)<u>Notification Requirement</u>. During the term of the Participant's employment with the Corporation or any Affiliate and for the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant agrees to notify the Corporation in writing prior to accepting new employment, or engaging in any other activity which may violate this Award Agreement, and the Participant agrees to provide in such notice information concerning the anticipated new employment or activity, including, but not limited to: name of new employer; address of new employer; name of new team leader; job title; and scope and responsibilities of the new position. The Participant recognizes that such duty of notification is not affected by the Participant's belief that such employment may perhaps not violate this Award Agreement or otherwise be unfairly competitive with the Corporation or an Affiliate. The Participant's written notice should be addressed to the Corporation's General Counsel with subject line Non-Competition Agreement, via email to <u>Noncompete.Notification@kcc.com</u>.

(f)<u>Other Notification</u>. During the period of two (2) years following termination of the Participant's employment with the Corporation or an Affiliate, the Participant shall provide a copy of Section 20 of this Award Agreement to each new employer before starting in any new employment. The Participant agrees that the Corporation may notify any third party about the Participant's obligations under Section 20 of this Award Agreement until such obligations are fulfilled.

(g)<u>Non-Solicitation of Business</u>. During the term of the Participant's employment and for a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, either directly or indirectly, on the Participant's own behalf or on behalf of any other person, firm or company or other entity, solicit, interfere with, entice or endeavor to entice away from the Corporation or any Affiliate any Restricted Customer (as defined below), or seek to conduct Restricted Business (as defined below), or conduct Restricted Business, with any Restricted Customer and/or otherwise persuade, induce, solicit or encourage any person or entity to terminate its contractual relationship with the Corporation or any Affiliate. "Restricted Business," for purposes of this Section 20, means any business activity carried out by the Participant for the Corporation or any Affiliate during the last two (2) years preceding the Participant's termination date. "Restricted Customer," for purposes of this Section 20, means any person, firm or company or other entity who was a customer or distributor of the Corporation or any Affiliate as at the Participant's termination date or during the last two

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(2) years preceding the Participant's termination date, and (i) with whom the Participant had material contact at the Participant's termination Date or during the last two (2) years preceding the Participant's termination date, or (ii) in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information, including any Prospective Customer. "Prospective Customer," for purposes of this Section 20, means any person, firm or company or other entity with whom the Corporation or any Affiliate was involved in negotiations as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, with a view to dealing with it as a customer and/or to conclude a contractual relationship with such entity, and where such negotiations have involved more than nominal expense or time commitment, and/or with whom the Participant had contact at the Participant's termination date or during the last two (2) years preceding the Participant's termination date with a view to dealing with it as a customer of the Corporation or any Affiliate and/or to conclude a contractual relationship with such entity or in respect of whom, as at the Participant's termination date or during the last two (2) years preceding the Participant's termination date, the Participant had Confidential Information.

(h)<u>Non-Solicitation of Employees</u>. For a period of two (2) years following the termination of employment, regardless of the reason for or the manner of termination, the Participant shall not, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate, or (ii) be otherwise involved in the recruitment of such person, to leave the employment of the Corporation or of any Affiliate. Furthermore, the Participant shall not for a period of two (2) years following the termination date regardless of the reason for or the manner of termination, with respect to any person who was an employee of the Corporation or any Affiliate at the Participant's termination date and with whom the Participant had material dealings during the last two (2) years preceding the Participant's termination date, (i) directly or indirectly induce such person to leave the employment of the Corporation or of any Affiliate to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor or (ii) be otherwise involved in the recruitment of such person to become employed by, associated with and/or form part of any business or concern, in any capacity whatsoever, of any Competitor. The Participant must inform the Corporation immediately on becoming aware of any such recruitment.

(i)<u>Damages and Remedies</u>. In the event of an anticipated, threatened, or actual breach by the Participant of any of the provisions of this Section 20, the Corporation and its Affiliates shall be entitled to all damages available as a matter of law. The Participant acknowledges and agrees that any damages would not be an adequate remedy to compensate the Corporation or an Affiliate for the harm to the business of the Corporation or the Affiliate and, in such event, agrees that the Corporation or the Affiliate, as applicable, shall be entitled to a temporary restraining order and to injunctive relief to prevent or terminate such anticipated or actual breach, provided, however, that nothing in this Award Agreement shall be construed to limit any additional relief to which the Corporation or the Affiliate may be entitled or the damages otherwise recoverable by the Corporation or the Affiliate in any such event.

(j)<u>Forfeiture of Award</u>. Notwithstanding the Corporation's or an Affiliate's ability to pursue injunctive relief pursuant to Section 20(i), in the event of an actual breach by the Participant of any of the provisions of this Section 20 or of any local restrictive covenant agreement, the Corporation also is entitled to: (i) require the Participant to repay to the Corporation, immediately upon demand, an amount equal to the value of the shares of Common Stock issued on settlement of the RSUs (less $1,000); and (ii) forfeit any portion of the Award that has not vested or been settled yet at the time the Corporation becomes aware of the breach.

(k)<u>Reimbursement of Fees</u>. If the Participant violates any of the provisions of this Section 20, or any duty of loyalty or confidentiality imposed by law, in addition to any damages that the Participant may be required to pay, the Participant understands and agrees that the Participant shall be required to

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reimburse the Corporation for all its costs incurred to enforce this Award Agreement, including but not limited to, all attorneys' fees.

(l)<u>Successors and Beneficiaries</u>. For purposes of this Section 20, the Corporation and each of its Affiliates shall be deemed to be third party beneficiaries with the right to seek enforcement of any of the provisions of this Section 20. Further, for purposes of this Section 20, references to acting directly or indirectly include acting jointly with or through another person.

(m)<u>Prior Restrictive Covenants</u>. Participant acknowledges and agrees that Participant is not a party to any agreement with any other company containing a confidentiality or noncompetition provision or other restriction that relates to the Business of the Corporation which Participant has not already disclosed to the Corporation or its Affiliates in writing. Participant understands that Participant is prohibited from disclosing or using during Participant's employment with the Corporation any confidential information or trade secrets that Participant acquired from any previous employer.

(n)<u>Severability and Reformation</u>. If any provision of this Section 20 is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such provision shall be deemed to be severed from the Award Agreement and such invalidity, illegality or unenforceability will not affect any other provision of the Award Agreement, all of which shall remain valid and enforceable. Notwithstanding the foregoing, if a court of competent jurisdiction determines that the covenants contained in this Section 20 are unenforceable because they are overbroad in some respect, to the full extent permitted by applicable law, the court should sever, revise or reform any aspect of this Section 20 so as to make the scope of such Section 20 as broad as reasonable under applicable law and enforce this Section 20 as so modified. Without limiting the foregoing, if a court, government agency or other body of competent jurisdiction establishes or the Corporation otherwise determines that the covenants contained in this Award Agreement are unenforceable and/or in violation of applicable rules, the Corporation reserves the right to unilaterally amend the Award Agreement so as to comply with applicable rules.

(o)<u>Tolling</u>. If the Participant violates any of the restrictions of this Section 20, the period for all such restrictions shall automatically be extended by the period the Participant was in violation of them.

(p)<u>Acknowledgments</u>. The Participant acknowledges and agrees that employment with the Corporation or any Affiliate affords the Participant unique opportunities for professional and personal development; that the services rendered by the Participant to the Corporation or any Affiliate are of a special and unique character; that the Participant will obtain knowledge and skill relevant to the Corporation's industry, methods of doing business, and strategies by virtue of the Participant's employment; that the Participant may be able to utilize such knowledge to the detriment of the Corporation and its Affiliates; and that the terms and conditions of this Section 20 are reasonable under the circumstances. The Participant further acknowledges that the Participant will not be subject to undue hardship by reason of the Participant's full compliance with the terms and conditions of this Section 20 or the Corporation's or its Affiliates' enforcement thereof.

(q)<u>Advice to Seek Independent Counsel</u>. The Participant is hereby advised in writing to consult with an attorney before entering into the covenants outlined in this Section 20. The Participant acknowledges that prior to acceptance of this Award Agreement, the Participant has been advised by the Corporation of the Participant's right to seek independent advice from an attorney of the Participant's own selection regarding this Award Agreement, including the restraints imposed upon the Participant pursuant to this Section 20. The Participant acknowledges that the Participant has entered into this Award Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Award Agreement after being given the opportunity to consult with counsel. The Participant further represents that in entering into this Award Agreement, the Participant is not relying on any statements or representations made by any of the Corporations' directors, officers, employees or agents which are not expressly set forth herein, and that the Participant is relying only upon the Participant's own judgment and any advice provided by the Participant's attorney.

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21.&nbsp;&nbsp;&nbsp;&nbsp;<u>Forfeiture and Recoupment</u>.

(a)The RSUs are subject to the compensation recovery provisions of the Plan. In addition, the RSUs are subject to the Kimberly-Clark Corporation Compensation Recoupment Policy (such policy, as it may be amended from time to time, the "Recoupment Policy") if the Participant is a Leader (as defined in the Recoupment Policy). The RSUs are also subject to the Kimberly-Clark Corporation Executive Officer Incentive Compensation Recovery Policy (such policy, as it may be amended from time to time, the "Recovery Policy") if the Participant is a Covered Person (as defined in the Recovery Policy). The RSUs are also subject to forfeiture and/or recoupment pursuant to Sections 19(l) and 20(j) herein. A recovery under this Award Agreement may be made by (i) cancelling any RSUs which have not yet vested or been settled; (ii) recovering shares of Common Stock or cash equal to the value of the shares of Common Stock issued on settlement of the RSUs, including shares resulting from dividend equivalents; (iii) recovering proceeds realized by the Participant on the sale of such Common Stock; (iv) withholding compensation otherwise due to the Participant; (v) payment by the Participant; and/or (vi) by such other means determined appropriate under the terms of the Recoupment Policy and/or the Recovery Policy. If the Participant is required to repay the Corporation, the Corporation is entitled to offset the payment in a way that is intended to avoid the application of penalties under Section 409A of the Code, if applicable.

Without limiting the foregoing, if, following a Participant's termination of employment for a reason other than the Participant's termination for Cause, the Corporation discovers facts that such Participant's termination of employment could have been for Cause, such Participant's termination of employment will be deemed to have been for Cause for all purposes, and as a result, (i) the Corporation will not issue shares of Common Stock or any other benefit otherwise payable to the Participant under the Plan and (ii) the Participant will be required to repay to the Corporation all proceeds received under the Plan that would not have been payable to such Participant had such termination of employment been for Cause.

The Corporation shall have the right to suspend any and all rights or benefits awarded to the Participant hereunder, including vesting and settlement of the RSUs, pending its investigation and final determination with regard to whether the Participant has engaged in conduct constituting Cause or that would warrant application of the Recoupment Policy or Recovery Policy.

(b)By accepting the Award Grant and the terms of this Award Agreement, the Participant understands, acknowledges and accepts that the grant, shares of Common Stock issued under the Plan and proceeds realized by the Participant pursuant to the Plan are subject to the terms of the Recoupment Policy and the Recovery Policy, which the Participant has reviewed and understands, and the Corporation may seek recovery by any of the methods described in Section 21(a) or other such means determined appropriate under the terms of the Recoupment Policy and/or the Recovery Policy.

22.&nbsp;&nbsp;&nbsp;&nbsp;<u>Whistleblower Statutes</u>. Notwithstanding anything to the contrary in this Award Agreement, nothing in Sections 19 , 20 or 21 of this Award Agreement is intended to or shall limit, prevent, impede or interfere with the Participant's non-waivable right, without prior notice to the Corporation, to provide information to the government, participate in investigations, testify in proceedings regarding the Corporation, Employer or any Affiliate's past or future conduct, engage in any activities protected under whistleblower statutes, or to receive and fully retain a monetary award from a government-administered whistleblower award program for providing information directly to a government agency. The Participant does not need prior authorization from the Corporation to make any such reports or disclosures and is not required to notify the Corporation that the Participant has made such reports or disclosures.

23.&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 409A</u>. It is the intent of this Award Agreement that it and all payments and benefits hereunder be exempt from, or comply with, the requirements of Section 409A of the Code so that none of the RSUs provided under this Award Agreement or shares of Common Stock issuable thereunder will be subject to the additional tax imposed under Section 409A of the Code, and any ambiguities herein will be interpreted to be so exempt or so comply.

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24.&nbsp;&nbsp;&nbsp;&nbsp;<u>Acceptance of Award Terms and Conditions</u>. A Participant has until the end of the ninety (90) day period beginning from the Grant Date of this Award to accept this Award Agreement. If the Participant does not accept this Award Agreement on or before the end of such ninety (90) day period, then the grant of the Award, as set forth in Section 1, shall not be binding on and shall be voidable by the Corporation, in which case it shall have no further force or effect.

**<u>Acknowledgment of Conditions</u>**

The Participant understands, acknowledges and agrees to the following conditions with respect to the Award granted under the Plan:

The Plan is established voluntarily by the Corporation, is discretionary in nature and may be modified, amended, suspended, cancelled or terminated at any time, to the extent permitted by the Plan. The grant of an Award is an exceptional, voluntary and occasional benefit and does not create any contractual or other right to receive an Award or benefits in lieu of an Award in the future, even if Awards have been granted in the past. Future grants, if any, will be at the sole discretion of the Corporation, including, but not limited to, the timing of any grant, the number of Awards and vesting provisions.

Participation in the Plan is voluntary and does not create a right to employment with the Participant's Employer, shall not be interpreted as forming an employment or service contract with the Corporation, and shall not interfere with the ability of the Employer to terminate the Participant's employment relationship at any time. The Participant understands that the Corporation has unilaterally, gratuitously and discretionally decided to grant Awards under the Plan to individuals who are employees of the Corporation or its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Corporation or any of its Affiliates on an ongoing basis. Consequently, the Participant understands that any grant is given on the assumption and condition that it shall not become a part of any employment contract (either with the Corporation or any of its Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further, the Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of the Award and the underlying shares is unknown and unpredictable. In addition, the Participant understands that this grant would not be made but for the assumptions and conditions referred to above; thus, the Participant understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the Award shall be null and void.

The Award and the shares of Common Stock subject to the Award, and the income from and value of same, are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Corporation or, if different, the Employer, and which are outside the scope of the Participant's employment contract, if any, and are not intended to replace any pension rights or compensation. As such, the Award, and the income from and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, leave-related payments, holiday pay, pension, retirement or welfare benefits or similar payments and in no event shall be considered as compensation for, or relating in any way to, past services for the Corporation, the Employer or any other Affiliate.

Unless otherwise agreed with the Corporation, the Award and shares of Common Stock subject to the Award, and the income from and value of same, are not granted as consideration for, or in connection with, any service the Participant may provide as a director of any Affiliate.

The future value of the underlying shares of Common Stock is unknown, indeterminable, and cannot be predicted with certainty.

No claim or entitlement to compensation or damages shall arise from forfeiture of the Award or recoupment of any shares of Common Stock acquired under the Plan resulting from (a) the termination of the Participant's employment by the Corporation or the Employer (regardless of the reason for such

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termination and whether or not the termination is later found to be invalid or in breach of employment laws); and/or (b) an actual breach by the Participant of Section 19, Section 20, any stand-alone restrictive covenant agreement, or any local restrictive covenant agreement; and/or (c) the application of the Corporation's Recoupment Policy, Recovery Policy, or any recovery or clawback policy required by law.

The Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding participation in the Plan, or the acquisition or sale of the underlying shares of Common Stock. Further, the Participant understands that he or she should consult with his or her own advisors regarding participation in the Plan before taking any action related to the Plan.

Neither the Corporation, the Employer nor any other Affiliate shall be liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to the Participant pursuant to the settlement of the RSUs or the subsequent sale of any shares of Common Stock acquired upon settlement.

Regardless of any action the Corporation or the Employer takes with respect to any or all income tax (including federal, state and local taxes), social insurance, fringe benefit tax, payroll tax, payment on account or other tax-related items related to the Participant's participation in the Plan and legally applicable to the Participant ("Tax-Related Items"), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant's responsibility and may exceed the amount, if any, actually withheld by the Corporation or the Employer. The Participant further acknowledges that the Corporation and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant of the RSUs, the vesting of RSUs, the conversion of the RSUs into shares or the receipt of an equivalent cash payment, the subsequent sale of any shares acquired at vesting and the receipt of any dividends or dividend equivalents; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant is subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Corporation and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

In connection with the relevant taxable or tax withholding event, as applicable, the Participant shall pay or make adequate arrangements satisfactory to the Corporation and/or the Employer to satisfy or account for all applicable withholding obligations for Tax-Related Items. In this regard, the Participant authorizes the Corporation or the Employer, or their respective agents, at their discretion, to satisfy their withholding obligations, if any, with regard to all Tax-Related Items by one or a combination of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;withholding from the Participant's wages or other cash compensation paid to the Participant by the Corporation and/or the Employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;withholding from the proceeds of the sale of shares acquired upon vesting of the Award either through a voluntary sale or through a mandatory sale arranged by the Corporation (on the Participant's behalf, pursuant to this authorization); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;withholding shares to be issued upon vesting of the Award;

provided, however, that if the Participant is subject to Section 16 of the U.S. Securities Exchange Act of 1934, as amended, then the Corporation will withhold in shares upon the relevant taxable or tax withholding event, as applicable, unless the use of such withholding method is not feasible under applicable tax or law or has materially adverse accounting consequences, in which case, the obligation for Tax-Related Items may be satisfied by one or a combination of methods (1), (2) and (3) above.

The Corporation may withhold or account for Tax-Related Items by considering applicable statutory withholding amounts or other applicable withholding rates, including minimum rates or maximum applicable rates in applicable jurisdictions. In the event of over-withholding, the Participant may receive a refund of any over-withheld amount in cash (with no entitlement to the common stock equivalent), or if

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not refunded, the Participant may seek a refund from the applicable tax authorities. In the event of under-withholding, the Participant may be required to pay additional Tax-Related Items directly to the applicable tax authorities or to the Corporation or the Employer. If the obligation for Tax-Related Items is satisfied by withholding in shares, for tax purposes, the Participant is deemed to have been issued the full number of shares subject to the Award, notwithstanding that a number of shares is held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Participant's participation in the Plan.

The Participant shall pay to the Corporation or to the Employer any amount of Tax-Related Items that the Corporation or the Employer may be required to withhold or account for as a result of the Participant's participation in the Plan that cannot be satisfied by the means previously described. The Corporation may refuse to deliver shares or the proceeds of the sale of shares to the Participant if he or she fails to comply with his or her obligations in connection with the Tax-Related Items.

The Corporation is located at 351 Phelps Drive Irving, TX 75038, USA and grants employees of the Corporation and its Affiliates the opportunity to participate in the Plan, at the Corporation's sole discretion. If the Participant would like to participate in the Plan and is an employee in a country outside the European Economic Area, the Participant understands that he or she should review the following information about the Corporation's data processing practices and declare his or her consent. If the Participant is an employee in a country that is a member of the European Economic Area, the Participant should review the information about the Corporation's data processing practices set forth in Appendix A attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)*Data Collection and Usage. The Corporation collects, processes and uses the Participant's personal data, including, name, home address, email address and telephone number, date of birth, social insurance number, passport or other identification number, salary, citizenship, nationality, job title, any shares of stock or directorships held in the Corporation, and details of all awards, canceled, vested, or outstanding in the Participant's favor, which the Corporation receives from the Participant or the Participant's Employer. If the Corporation offers the Participant the opportunity to participate in the Plan, then the Corporation will collect the Participant's personal data for purposes of allocating stock and implementing, administering and managing the Plan. The Corporation's legal basis for the processing of the Participant's personal data would be the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)*Stock Plan Administration Service Providers. The Corporation transfers participant data to Merrill Lynch, an independent service provider based in the United States, which assists the Corporation with the implementation, administration and management of the Plan. In the future, the Corporation may select a different service provider and share the Participant's data with another company that serves in a similar manner. The Corporation's service provider will open an account for the Participant. The Participant will be asked to agree on separate terms and data processing practices with the service provider, which is a condition for participation in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)*International Data Transfers. The Corporation and its service providers are based in the United States. If the Participant is outside of the United States, the Participant should note that his or her country may have enacted data privacy laws that are different from the United States. The Corporation's legal basis for the transfer of the Participant's personal data is the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)*Data Retention. The Corporation will use the Participant's personal data only as long as is necessary to implement, administer and manage his or her participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws. This period may extend until the Participant's employment or service with the Corporation is terminated, plus any additional time periods necessary for compliance with law, exercise or defense of legal rights, and archiving, back-up and deletion processes.***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)*Voluntariness and Consequences of Consent Denial or Withdrawal. The Participant's participation in the Plan and the Participant's grant of consent is purely voluntary. The Participant may deny or withdraw his or her consent at any time. If the Participant does not consent, or if he or she withdraws their consent, the Participant cannot participate in the Plan. This would not affect the Participant's salary as an employee; the Participant would merely forfeit the opportunities associated with the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)*Data Subject Rights. The Participant has a number of rights under data privacy laws in his or her country. Depending on where the Participant is based, the Participant's rights may include the right to (i) request access or copies of personal data the Corporation processes, (ii) rectification of incorrect data, (iii) deletion of data, (iv) restrictions on processing, (v) portability of data, (vi) to lodge complaints with competent authorities in the Participant's country, and/or (vii) a list with the names and addresses of any potential recipients of the Participant's personal data. To receive clarification regarding the Participant's rights or to exercise the rights please contact the Corporation at Attn: Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA.***

The Participant also understands that the Corporation may rely on a different legal basis for the processing or transfer of data in the future and/or request that the Participant provides another data privacy consent. If applicable and upon request of the Corporation, the Participant agrees to provide an executed acknowledgment or data privacy consent form to the Corporation or the Employer (or any other acknowledgments, agreements or consents) that the Corporation and/or the Employer may deem necessary to obtain under the data privacy laws in the Participant's country, either now or in the future. The Participant understands that he or she will not be able to participate in the Plan if the Participant fails to execute any such acknowledgment, agreement or consent requested by the Corporation and/or the Employer.

If the Participant agrees with the data processing practices described in this notice, the Participant will declare his or her consent by clicking the "Accept" icon on the Merrill Lynch website.

The Participant understands that he or she is solely responsible for obtaining/providing whatever exchange control approvals, permits, licenses or notices, which may be necessary for the Award, to acquire the shares or to hold or sell the shares subject to the Award. Neither the Corporation nor its Affiliates will be responsible for obtaining such approvals, licenses or permits, or for making any such notices, nor will the Corporation or its Affiliates be liable for any fines or penalties the Participant may incur for failure to obtain any required approvals, permits or licenses or to make any required notices.

In accepting the grant of this Award, the Participant acknowledges that he or she has received a copy of the Plan and the Award Agreement and has reviewed the Plan and the Award Agreement, including Appendix A and Appendix B, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including Appendix A and Appendix B.

The Participant acknowledges that he or she has read and specifically and expressly approves the following sections of the Award Agreement: Section 2(g) on Payment of Tax-Related Items; Section 5 on No Right of Continued Employment; Section 8 on Governing Law and Consent to Jurisdiction; the section on Acknowledgment of Conditions; and the Data Privacy Notice sections of both the Award Agreement and Appendix A for the Participant's country.

Subject to Sections 19(p) and 20(n), the provisions of this Award Agreement are severable and if one or more of the provisions of this Award Agreement shall be held invalid, illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nonetheless be binding and enforceable. To the extent that any provisions of this Award Agreement are held to be invalid or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so as to foster the intent of this Award Agreement and the Plan.

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The Participant acknowledges that he or she is sufficiently proficient in English, or has consulted with an advisor who is sufficiently proficient in English, so as to allow the Participant to understand the terms and conditions of this Award Agreement. Furthermore, if the Participant has received this Award Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

Notwithstanding any provisions in this Award Agreement, the Award shall be subject to any additional terms and conditions set forth in Appendix A to this Award Agreement for the Participant's country. Moreover, if the Participant relocates to any of the countries included in Appendix A, the additional terms and conditions for such country will apply to the Participant, to the extent the Corporation determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Appendix A and Appendix B constitute part of this Award Agreement.

The Participant acknowledges that the grant of an Award is expressly conditioned on the restrictive covenants set forth in Sections 19 and 20.

The Corporation reserves the right to impose other requirements on the Participant's participation in the Plan, on the Award and on any shares acquired under the Plan, to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by on-line delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third-party designated by the Corporation.

A waiver by the Corporation of breach of any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by the Participant or any other participant.

The Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect the Participant's ability to, directly or indirectly, accept, acquire, sell, or attempt to sell or otherwise dispose of shares of Common Stock or rights to shares of Common Stock (*e.g*., RSUs), or rights linked to the value of shares of Common Stock during such times as the Participant is considered to have "inside information" regarding the Corporation (as defined by the laws in the applicable jurisdictions or the Participant's country). Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Participant placed before possessing inside information. Furthermore, the Participant may be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a "need to know" basis) and (ii) "tipping" third parties or causing them to otherwise buy or sell Corporation securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Corporation insider trading policy. The Participant is responsible for ensuring his or her compliance with any applicable restrictions and is advised to speak with his or her personal legal advisor on this matter.

The Participant's country may have certain foreign asset and/or foreign account reporting requirements, tax and/or exchange controls which may affect the Participant's ability to acquire or hold shares of Common Stock acquired under the Plan or cash received from participating in the Plan (including from any dividends paid on shares acquired under the Plan) in a brokerage or bank account outside the Participant's country. The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant's country. The Participant also may be required to repatriate sale proceeds or other funds received as a result of his or her participation in the Plan to the Participant's country through a designated bank or broker within a certain time after receipt. In addition, the Participant agrees to take any and all actions, and consent to any and all actions taken by the Corporation or the Employer as may be required to allow the Corporation or the Employer to comply with local laws, rules and regulations in the Participant's country of residence (and country of employment, if different). Finally, the Participant agrees to take any and all actions as may be required

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to comply with their personal legal and tax obligations under local laws, rules and regulations in their country of residence (and country of employment, if different). The Participant should consult his or her personal legal advisor for any details.

The Participant acknowledges that he or she has reviewed the Corporation's Code of Conduct. The Participant further acknowledges that he or she understands and will comply with the terms and standards contained in that Code of Conduct, including but not limited to the prohibition against retaliation, and specifically acknowledges that he or she has an obligation to report suspected violations of the Code of Conduct pursuant to the Corporation's Escalation Policy.

**Conclusion and Acceptance**

The Participant accepts this grant via electronic signature by clicking the "Accept" icon and certifies that he or she has read, understands and agrees to the terms and conditions of the 2021 Equity Participation Plan (the "Plan"), the provisions of the applicable Award Agreement and all other applicable documents (including any country-specific terms applicable to the Participant's grant). The Participant hereby authorizes the Employer to furnish the Corporation (and any agent administering the Plan or providing recordkeeping services) with such information and data as it shall request in order to facilitate the grant of Awards and enable administration of the Plan and the Participant understands that such information shall be used only as long and to the extent necessary to administer the Participant's participation in the Plan. The Participant agrees that his or her participation in the Plan and the Awards granted to the Participant under the Plan will be governed solely by Delaware law.

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**KIMBERLY-CLARK CORPORATION**

**ANNUAL TIME-VESTED RESTRICTED STOCK UNIT**

**AWARD AGREEMENT** 

**APPENDIX A**

Certain capitalized terms used but not defined in this Appendix A have the meanings set forth in the Plan and/or the Award Agreement.

This Appendix A includes additional terms and conditions that govern the Award granted to the Participant under the Plan if the Participant resides and/or works in any of the countries listed below.

This Appendix A also includes information regarding exchange controls and certain other issues of which the Participant should be aware with respect to the Participant's participation in the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of March 2025. Such laws are often complex and change frequently. As a result, the Participant should not rely on the information noted herein as the only source of information relating to the consequences of the Participant's participation in the Plan because the information may be out of date at vesting of the Award or the subsequent sale of the shares or receipt of any dividends or dividend equivalents.

In addition, the information is general in nature and may not apply to the Participant's particular situation, and the Corporation is not in a position to assure the Participant of any particular result. Accordingly, the Participant is advised to seek appropriate professional advice as to how the relevant laws in the Participant's country may apply to the Participant's situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which the Participant is currently residing and/or working, transferred or transfers employment and or residency after the Award is granted or is considered a resident of another country for local law purposes, the information contained herein may not be applicable to the Participant. The Corporation shall, in its sole discretion, determine to what extent the terms and conditions included herein will apply to the Participant in such circumstances.

**EUROPEAN ECONOMIC AREA (INCLUDING THE UNITED KINGDOM) AND SWITZERLAND**

*Data Protection*

For Participants resident in a country in the European Economic Area, Switzerland or the United Kingdom, the following language replaces in its entirety the data privacy section in the Acknowledgment of Conditions section of the Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)***The Participant is hereby notified of the collection, use and transfer outside of the European Economic Area, as described in the Award Agreement, in electronic or other form, of his or her Personal Data (defined below) by and among, as applicable, the Corporation and certain of its Affiliates for the exclusive and legitimate purpose of implementing, administering and managing the Participant's participation in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)***The Participant understands that the Corporation and the Employer hold certain personal information about the Participant, including, but not limited to, the Participant's name, home address and telephone number, email address, date of birth, social insurance number, passport or other identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Corporation, details of all entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Participant's favor ("Personal Data"), for the purpose of implementing, administering and managing the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)***The Participant understands that providing the Corporation with this Personal Data is necessary for the performance of the Award Agreement and that the Participant's refusal to provide the Personal Data would make it impossible for the Corporation to perform its contractual obligations and may affect the Participant's ability to participate in the Plan. The***

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***Participant's Personal Data shall be accessible within the Corporation only by the persons specifically charged with Personal Data processing operations and by the persons that need to access the Personal Data because of their duties and position in relation to the performance of the Award Agreement.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)***The Personal Data will be held only as long as is necessary to implement, administer and manage the Participant's participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws. This period may extend until the Participant's employment or service with the Corporation is terminated, plus any additional time periods necessary for compliance with law, exercise or defense of legal rights, and archiving, back-up and deletion processes. The Participant may, at any time and without cost, contact Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA to enforce his or her rights under the data protection laws in the Participant's country, which may include the right to (i) request access or copies of Personal Data subject to processing; (ii) request rectification of incorrect Personal Data; (iii) request deletion of Personal Data; (iv) request restriction on processing of Personal Data; (v) request portability of Personal Data; (vi) lodge complaints with competent authorities in the Participant's country; and/or (vii) request a list with the names and addresses of any potential recipients of Personal Data.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)***The Corporation provides appropriate safeguards for protecting Personal Data that it receives in the U.S. through its adherence to data transfer agreements entered into between the Corporation and its Affiliates within the European Union.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)***Further, the Participant understands that the Corporation will transfer Personal Data to Merrill Lynch and/or such other third parties as may be selected by the Corporation, which are assisting the Corporation with the implementation, administration and management of the Plan. The Corporation may select a different service provider or additional service providers and share Personal Data with such other provider(s) serving in a similar manner. The Participant may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being a condition to the ability to participate in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)***Merrill Lynch is based in the United States. The Participant's country or jurisdiction may have different data privacy laws and protections than the United States. Notwithstanding, by participating in the Plan, the Participant agrees to the transfer of his or her Personal Data to Merrill Lynch for the exclusive purpose of administering the Participant's participation in the Plan. The Corporation's legal basis, where required, for the transfer of Data to Merrill Lynch is the Participant's consent.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)***Finally, the Participant may choose to opt out of allowing the Corporation to share his or her Personal Data with Merrill Lynch and others as described above, although execution of such choice may mean the Corporation cannot grant awards under the Plan to the Participant. For questions about this choice or to make this choice, the Participant should contact Long-term Incentive Plan Administration at Kimberly Clark, 351 Phelps Drive Irving, TX 75038, USA.***

**ARGENTINA**

*Securities Law Information*

Neither the RSUs nor the underlying shares of Common Stock are publicly offered or listed on any stock exchange in Argentina and, as a result, have not been and will not be registered with the Argentine Securities Commission (Comisión Nacional de Valores, "CNV"). Neither the Award Agreement nor any other offering material related to the RSUs nor the underlying shares of Common Stock may be utilized in connection with any general offering to the public in Argentina.

*Foreign Asset/Account Reporting Information*

Argentine residents must report any shares of Common Stock acquired under the Plan and held on December 31st of each year on their annual tax return for the year.

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*Exchange Control Information*

Please note that exchange control regulations in Argentina are subject to frequent change. The Participant should consult with his or her personal legal advisor regarding any exchange control obligations the Participant may have in connection with the Participant's participation in the Plan. The Participant must comply with any and all Argentine currency exchange restrictions, approvals and reporting requirements in connection with the vesting of the RSUs, the subsequent sale of any shares acquired at vesting and the receipt of any dividends paid on such shares.

**AUSTRALIA**

*Securities Law Information*

This offer is being made under Division 1A, Part 7.12 of the Australia Corporations Act 2001 (Cth).

*Tax Information* 

The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) (the "Act") applies (subject to conditions in the Act).

*Compliance with Laws*

Notwithstanding anything else in the Plan or the Award Agreement, the Participant will not be entitled to and shall not claim any benefit under the Plan if the provision of such benefit would give rise to a breach of Part 2D.2 of the Corporations Act 2001 (Cth.) (the "Act"), any other provision of the Act, or any other applicable statute, rule or regulation which limits or restricts the giving of such benefits. Further, the Employer is under no obligation to seek or obtain the approval of its shareholders in a general meeting for the purpose of overcoming any such limitation or restriction.

*Exchange Control Information* 

Exchange control reporting is required for cash transactions exceeding AUD 10,000 and for international fund transfers. If an Australian bank is assisting with the transaction, the bank will file the report on the Participant's behalf. If there is no Australian bank involved in the transaction, the Participant will be required to file the report him or herself.

**BAHRAIN**

*Securities Law Information*

The Award Agreement, Plan and all other materials the Participant may receive regarding participation in the Plan do not constitute advertising or the offering of securities in Bahrain, nor do they constitute an allotment of securities in Bahrain. Any shares of Common Stock issued upon settlement of the RSUs will be deposited into a Corporation-designated brokerage account outside Bahrain. In no event will shares of Common Stock be issued or delivered in Bahrain. The issuance of shares of Common Stock pursuant to the RSUs described herein has not and will not be registered in Bahrain and, hence, the shares of Common Stock described herein may not be admitted or used for offering, placement or public circulation in Bahrain. Accordingly, the Participant may not make any public advertising or announcements regarding the RSUs or shares of Common Stock in Bahrain, promote these shares of Common Stock to legal entities or individuals in Bahrain, or sell shares of Common Stock directly to other legal entities or individuals in Bahrain. Any disposition or sale of such shares of Common Stock must take place outside Bahrain.

**BELGIUM**

*Foreign Asset/Account Reporting Information*

Belgian residents are required to report any securities (e.g., shares acquired under the Plan) or bank accounts opened and maintained outside Belgium (e.g., any brokerage account opened in connection with the Plan) on their annual tax returns. Belgian residents are also required to complete a separate report providing the National Bank of Belgium with details regarding any such account, including the

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account number, the name of the bank in which such account is held and the country in which such account is located. The forms to complete this report are available on the website of the National Bank of Belgium. Belgian residents should consult with their personal tax advisors to determine their personal reporting obligations.

*Stock Exchange Tax* 

A stock exchange tax applies to transactions executed by a Belgian resident through a non-Belgian financial intermediary, such as a U.S. broker. The Stock Exchange Tax likely will apply when the Participant sells shares of Common Stock. The Participant should consult with his or her personal tax advisor for additional details regarding the Participant's obligations with respect to the Stock Exchange Tax.

*Annual Securities Accounts Tax*

An annual securities accounts tax may be payable if the total value of securities held in a Belgian or foreign securities account (e.g., shares of Common Stock acquired under the Plan) exceeds a certain threshold on four reference dates within the relevant reporting period (i.e., December 31, March 31, June 30 and September 30). In such cases, the tax will be due on the value of the qualifying securities held in such account. The Participant should consult with his or her personal tax advisor regarding the application of this tax.

**BOLIVIA**

There are no country-specific provisions.

**BRAZIL**

*Compliance with Law* 

By accepting the Award, the Participant acknowledges that he or she agrees to comply with applicable Brazilian laws and pay any and all applicable Tax-Related Items associated with the vesting of the RSUs, the conversion of the RSUs into shares or the receipt of an equivalent cash payment, the receipt of any dividends, and the sale of shares of Common Stock acquired under the Plan.

*Labor Law Acknowledgment*

By accepting the Award, the Participant agrees that (i) the Participant is making an investment decision; (ii) the shares of Common Stock will be issued to Participant only if the vesting and/or performance conditions are met, and (iii) the value of the underlying shares of Common Stock is not fixed and may increase or decrease in value over the vesting period without compensation to the Participant.

*Exchange Control Information* 

If the Participant is resident or domiciled in Brazil, he or she will be required to submit annually a declaration of assets and rights held outside of Brazil to the Central Bank of Brazil if the aggregate value of such assets and rights is equal to or greater than US$1,000,000. Assets and rights that must be reported include shares of Common Stock, and may include RSUs.

*Tax on Financial Transaction (IOF).* 

Payments to foreign countries and repatriation of funds into Brazil (including proceeds from the sale) and the conversion of USD into BRL associated with such fund transfers may be subject to the Tax on Financial Transactions. It is the Participant's responsibility to comply with any applicable Tax on Financial Transactions arising from the Participant's participation in the Plan. The Participant should consult with his or her personal tax advisor for additional details.

**CANADA**

*Securities Law Information*

The Participant is permitted to sell shares acquired through the Plan through the designated broker appointed under the Plan, if any, provided the resale of shares acquired under the Plan takes place

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outside of Canada through the facilities of a stock exchange on which the shares are listed. The Corporation's shares are currently listed on New York Stock Exchange.

*Acknowledgment of Conditions*

The following provision supplements the Acknowledgment of Conditions section of the Award Agreement:

Except as may otherwise be explicitly provided in the Plan or this Award Agreement, for the purposes of this Award Agreement, the Participant's termination of employment will be measured effective as of the date that is the earlier of: (1) the date the Participant's employment is terminated, no matter how the termination arises; and (2) the date the Participant receives notice of termination of employment from the Employer. In either case, the date shall exclude any period during which notice, pay in lieu of notice or related payments or damages are provided or required to be provided under local law. For greater certainty, the Participant will not earn or be entitled to any pro-rated vesting for that portion of time before the date on which the Participant's right to vest terminates, nor will the Participant be entitled to any compensation for lost vesting. Notwithstanding the foregoing, if applicable employment standards legislation explicitly requires continued vesting during a statutory notice period, the Participant's right to vest in the RSUs, if any, will terminate effective as of the last day of the Participant's minimum statutory notice period, but the Participant will not earn or be entitled to pro-rated vesting if the vesting date falls after the end of the Participant's statutory notice period, nor will the Participant be entitled to any compensation for lost vesting.

The Participant acknowledges and agrees that the vesting schedule may change prospectively in the event the Participant's service status changes between full- and part-time and/or in the event the Participant is on a leave of absence, in accordance with Corporation's policies relating to work schedules and vesting of RSUs or as determined by the Committee. In case of any dispute as to whether and when a termination of the Participant's employment has occurred, the Committee will have sole discretion to determine whether such termination of the Participant's employment has occurred and the effective date of such termination (including whether the Participant may still be considered to be actively providing services while on a leave of absence).

*Language*

A French translation of the Plan and the Award Agreement can be made available to the Participant as soon as reasonably practicable upon the Participant's request. The Participant understands that, from time to time, additional information related to the offering of the Plan might be provided in English and such information may not be immediately available in French. However, upon request, the Corporation will translate into French documents related to the offering of the Plan as soon as reasonably practicable.

*Une traduction française du Plan et de l'Accord d'Attribution êtremise à la disposition de Participant dès que raisonnablement possible à la demande de l'Participant. Le Participant comprend que, de temps à autre, des informations supplémentaires liées à l'offre du Plan peuvent être fournies en anglais et que ces informations peuvent ne pas être immédiatement disponibles en français. Cependant, sur demande, la Société traduira en français les documents relatifs à l'offre du Plan dès que raisonnablement possible.*

*Authorization to Release and Transfer Necessary Personal Information*

The Participant hereby authorizes the Corporation and the Corporation's representatives, including the broker(s) designated by the Corporation, to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan. The Participant further authorizes the Corporation, any Affiliate and the plan administrators to disclose and discuss the Plan with their advisors. The Participant further authorizes the Corporation and any Affiliate to record such information and to keep such information in the Participant's employee file. The Participant acknowledges that the Participant's personal information, including any sensitive personal information, may be transferred or disclosed outside the Province of Quebec, including to the United States. Finally, the Participant acknowledges that the Corporation, the Employer or any other Affiliate or other parties

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involved in the administration of the Plan use technology for profiling purposes and to make automated decisions that may have an impact on the Participant or the administration of the Plan.

*Foreign Asset/Account Reporting Information* 

Foreign specified property (including shares of Common Stock) held by Canadian residents must be reported annually on Form T1135 (Foreign Income Verification Statement) if the total cost of such foreign specified property exceeds C$100,000 at any time during the year. Foreign specified property includes shares of Common Stock acquired under the Plan and may include the RSUs. The RSUs must be reported - generally at a nil cost - if the $100,000 cost threshold is exceeded because of other foreign property the Participant holds. If shares of Common Stock are acquired, their cost generally is the adjusted cost base ("ACB") of the shares. The ACB would normally equal the Fair Market Value of the shares at vesting, but if the Participant owns other shares, this ACB may have to be averaged with the ACB of the other shares owned by the Participant. If due, the Form must be filed by April 30 of the following year. The Participant should speak with a personal tax advisor to determine the scope of foreign property that must be considered for purposes of this requirement.

**CHILE**

*Securities Law Information*

The RSUs are granted and are made subject to general ruling n° 336 of the Chilean Commission for the Financial Market ("CMF"). This offer refers to securities not registered at the securities registry or at the foreign securities registry of the CMF, and therefore such securities are not subject to its oversight. Given that these securities are not registered in Chile, there is no obligation from the issuer to provide public information on them in Chile. These securities cannot be subject to public offering in Chile while they are not registered at the corresponding securities registry in Chile.

***La oferta privada de estos RSUs se inicia y se acoge a las disposiciones de la norma de carácter general nº 336 de la Comisón para el Mercado Financiero ("CMF"). Esta oferta versa sobre valores no inscritos en el registro de valores o en el registro de valores extranjeros que lleva la CMF, por lo que tales valores no están sujetos a la fiscalización de ésta. Por tratarse de valores no inscritos en Chile, no existe la obligación por parte del emisor de entregar en Chile información pública respecto de los mismos. Estos valores no podrán ser objeto de oferta pública en Chile mientras no sean inscritos en el registro de valores correspondiente.***

*Exchange Control Information*

The Participant is not required to repatriate funds obtained from the sale of shares or the receipt of any dividends. However, if the Participant decides to repatriate such funds, the Participant must do so through the Formal Exchange Market if the amount of the funds exceeds US$10,000. In such case, the Participant must report the payment to a commercial bank or registered foreign exchange office receiving the funds.

*Foreign Asset/Account Reporting Information*

The Chilean Internal Revenue Service (the "CIRS") requires all taxpayers to provide information annually regarding (i) the results of investments held abroad and (ii) any taxes paid abroad which the taxpayers will use as a credit against Chilean income tax. The sworn statements disclosing this information (or Formularios) must be submitted electronically through the CIRS website, <u>www.sii.cl</u>, using Form 1929, which is due on July 1 each year.

**CHINA**

<u>The following provisions apply only to Participants who are subject to exchange control restrictions imposed by the State Administration of Foreign Exchange ("SAFE"), as determined by the Corporation in its sole discretion</u>:

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*Vesting of RSUs*

The Participant's Employer, Corporation any other Affiliate to which the Participant provides service must be registered with SAFE prior to settlement of the RSUs. If the Corporation is unable to obtain registration approval or is required to obtain further approvals on behalf of the Employer, Corporation or any other Affiliate, the vesting or settlement of the RSUs may be suspended or delayed. Further, the Corporation is under no obligation to vest the RSUs and/or issues shares of Common Stock if the Corporation's SAFE approval becomes invalid or ceases to be in effect by the time the Participant vests in the RSUs.

*Shutdown or Divestiture* 

The following provision replaces Section 2(d) of the Award Agreement.

In the event that the Participant's termination of employment is due to the shutdown or divestiture of the Corporation's or its Affiliate's business, it shall result in pro rata vesting, as determined by the Committee, and the number of shares that are considered to vest shall be calculated as (1) the total number of RSUs granted under the Award minus the number of RSUs already vested under the Award multiplied by (2) the number of full months of employment during the Restricted Period divided by 36. Any fractional share of the Corporation resulting from such a prorated award shall be rounded to the nearest whole share and shall be paid, along with any other shares earned under such prorated award, within 70 days following the Participant's termination of employment. For the purposes of this Award, a shutdown or divestiture of the Corporation's or its Affiliate's business unit is defined as one for which the charges related to the shutdown or divestiture are accounted for, and reported externally, as an exit activity in the Corporation's applicable SEC filings. The Corporation has complete discretion to determine whether a shutdown or divestiture of a business unit has occurred under the terms of the Plan.

*Termination of Employment*

Except for termination of employment due to Retirement or the shutdown or divestiture of a business unit, as described above, and notwithstanding any other provision in the Award Agreement, the Participant shall forfeit any unvested Award, including any accrued dividend equivalents, upon any termination of employment including, but not limited to, any termination that is due to a Qualified Termination of Employment, death or Total and Permanent Disability.

In the event that, more than six months after the Grant Date, the Participant's termination of employment is due to Retirement, then provided that, in the sole discretion of the Corporation, (i) no circumstances exist that could lead to a determination that the Participant should be, or could have been, terminated for Cause; and (ii) an Accounting Restatement (as defined in the Recovery Policy, as applicable) has not occurred and/or the Participant has not engaged in conduct that would trigger the Committee's right of recoupment under the Corporation's Recoupment Policy (as defined in Section 21 of this Award Agreement), it shall result in 100% vesting of any RSUs that are outstanding and unvested under this Award grant and such Award shall be paid within 70 days following the Participant's termination of employment or such later period as permitted by Section 409A of the Code, subject to Section 20(l) of the Plan, if applicable.

The Participant acknowledges and agrees that he or she must sell any shares of Common Stock issued to him or her upon vesting of the RSUs as soon as practicable following the Participant's termination of employment for any reason and in no event later than three months following the Participant's termination of employment. The Participant agrees that if he or she continues to hold any of such shares of Common Stock after this time, the shares of Common Stock may be sold by the Corporation's designated broker on the Participant's behalf at the instruction of the Corporation. Therefore, by accepting the RSUs, the Participant understands and agrees that the Corporation is authorized to, and may in its sole discretion, instruct its designated broker to assist with the mandatory sale of shares of Common Stock (on the Participant's behalf pursuant to this authorization) and that the Participant expressly authorizes the Corporation's designated broker to complete the sale of such shares of Common Stock. The Participant acknowledges that the Corporation's designated broker is under no

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obligation to arrange for the sale of the shares of Common Stock at any particular price. Upon the sale of the shares of Common Stock, the proceeds, less any Tax-Related Items and brokerage fees or commissions will be remitted to the Participant pursuant to the procedures described in the "Exchange Control Information" section below.

*Exchange Control Information*

Shares of Common Stock issued to the Participant under the Plan must be maintained in an account with Merrill Lynch or such other broker as may be designated by the Corporation until the shares of Common Stock are sold through that broker. If the Corporation changes its broker, the Participant acknowledges and agrees that the Corporation may transfer any shares of Common Stock issued under the Plan to the new designated broker if necessary for legal or administrative reasons. The Participant agrees to sign any documentation necessary to facilitate the transfer. In addition, the Participant may be required to sell any shares of Common Stock obtained under the Plan if the Corporation determines that the application of such condition is necessary or advisable for China SAFE exchange control, legal or other administrative reasons.

The Participant understands and agrees that, to facilitate compliance with exchange control requirements, the Participant will be required to immediately repatriate to China the cash proceeds from the sale of shares of Common Stock acquired upon vesting of the RSUs or from any dividends or dividend equivalents paid on the shares of Common Stock. The Participant further understands that, under local law, such repatriation of the cash proceeds will be effectuated through a special exchange control account established by the Corporation or one of its Affiliates in China, and the Participant hereby consents and agrees that the cash proceeds related to the Participant's participation in the Plan may be transferred to such special account prior to being delivered to the Participant. The Corporation may deliver the proceeds to the Participant in U.S. dollars or local currency at the Corporation's discretion. If the proceeds are paid in U.S. dollars, the Participant understands that he or she will be required to set up a U.S. dollar bank account in China so that the proceeds may be deposited into this account. If the proceeds are converted to local currency, there may be delays in delivering the proceeds to the Participant. The Participant agrees to bear the risk of any currency fluctuation between the time the shares of Common Stock are sold, either through voluntary sale or through a mandatory sale arranged by the Corporation, or proceeds are otherwise realized under the Plan and the time such proceeds are distributed to the Participant through the special exchange control account.

The Participant further agrees to comply with any other requirements that may be imposed by the Corporation in the future to facilitate compliance with exchange control requirements in China.

**COLOMBIA**

*Securities Law Information*

The shares of Common Stock are not and will not be registered in the Colombian registry of publicly traded securities (Registro Nacional de Valores y Emisores) and therefore the shares of Common Stock may not be offered to the public in Colombia. Nothing in this document should be construed as the making of a public offer of securities in Colombia. An offer of shares of Common Stock to employees will not be considered a public offer provided that it meets the conditions set forth in Article 6.1.1.1.1 in Decree 2555, 2010. In the event that the Corporation, in its sole discretion, determines that the offer of the Awards in Colombia may constitute a "public offer of securities", the Participant understands and agrees that the Corporation may, in its sole discretion, cease to offer participation in the Plan in Colombia. In the event that the Corporation exercises its discretion to cease offering the Plan in Colombia, the Participant will no longer be permitted to participate in the Plan as of the date established by the Corporation.

*Exchange Control Information* 

Colombian residents must register shares of Common Stock acquired under the Plan, regardless of value, with the Central Bank of Colombia (Banco de la República) as foreign investment held abroad. In addition, the liquidation of such investments must be transferred through the Colombian foreign exchange market (e.g. local banks), which includes the obligation of correctly completing and filing the

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appropriate foreign exchange form (declaración de cambio). The Participant is responsible for complying with applicable exchange control requirements in Colombia.

*Foreign Asset/Account Reporting Information*

The Participant must file an informative return with the Colombian Tax Office detailing any assets held abroad. If the individual value of any of these assets exceeds a certain threshold, the Participant must describe each asset and indicate the jurisdiction in which it is located, its nature and its value.

*Acknowledgment of Conditions*

The following provision supplements the Acknowledgment of Conditions section of the Award Agreement:

The Participant acknowledges that pursuant to Article 128 of the Colombian Labor Code, the Plan and related benefits do not constitute a component of the Participant's "salary" for any legal purpose. To this extent, they will not be included for purposes of calculating any labor benefits, such as legal/fringe benefits, vacation, indemnities, payroll taxes, social insurance contributions and/or any other labor-related amount which may be payable.

**COSTA RICA**

There are no country-specific provisions.

**CZECH REPUBLIC**

*Exchange Control Information*

The Czech National Bank may require the Participant to fulfill certain notification duties in relation to the acquisition of shares of Common Stock and the opening and maintenance of a foreign account (e.g., may be required to report foreign direct investment, financial credits from abroad, investment in foreign securities, and associated collections and payments). However, because exchange control regulations change frequently and without notice, the Participant should consult with his or her personal legal advisor prior to the vesting of the RSUs and the sale of Common Stock to ensure compliance with current regulations. It is the Participant's responsibility to comply with any applicable Czech exchange control laws.

**DOMINICAN REPUBLIC**

There are no country-specific provisions.

**ECUADOR**

*Foreign Asset/Account Reporting Information*

Individuals who are resident or domiciled in Ecuador are generally required to file an annual Net Worth Declaration with the Internal Revenue Service of Ecuador if the aggregate value of assets held by such individuals exceeds certain thresholds. Assets included in this annual

declaration include shares of Common Stock acquired under the Plan. The Net Worth Declaration must be filed in May of the following year using the electronic form on the tax authorities' website (www.sri.gob.ec). Penalties will apply to a late filing, and it is not possible to seek an extension.

In addition, Ecuadorian resident individuals are required to report on an annual basis, all monetary assets held in foreign financial entities in excess of US$100,000. The Participant should consult their legal or tax advisor to ensure compliance with all applicable reporting obligations.

**EL SALVADOR**

There are no country-specific provisions.

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**FRANCE**

*RSUs Not Tax-Qualified*

The Participant understands that this Award is not intended to be French tax-qualified.

*Consent to Receive Information in English*

By accepting the Award Agreement providing for the terms and conditions of the Participant's grant, the Participant confirms having read and understood the documents relating to this grant (the Plan and this Award Agreement) which were provided in English language. The Participant accepts the terms of those documents accordingly.

*En acceptant le Contrat d'Attribution décrivant les termes et conditions de l'attribution, le participant confirme ainsi avoir lu et compris les documents relatifs à cette attribution (le Plan U.S. et ce Contrat d'Attribution) qui ont été communiqués en langue anglaise. Le participant accepte les termes en connaissance de cause.*

*Foreign Asset/Account Reporting Information*

French residents holding shares of Common Stock outside of France or maintaining a foreign bank account are required to report such to the French tax authorities when filing their annual tax returns, including any accounts that were opened, held, used and/or closed during the year. Further, failure to comply could trigger significant penalties.

*Exchange Control Information*

The value of any cash or securities imported to or exported from France without the use of a financial institution must be reported to the customs and excise authorities when the value of such cash or securities is equal to or greater than a certain amount (currently €10,000).

**GERMANY**

*Exchange Control* Information

Cross-border payments in excess of €50,500 must be reported monthly to the German Federal Bank (*Bundesbank*). If the Participant makes or receives a payment in excess of this amount (including if the Participant acquires shares of Common Stock with a value in excess of this amount or sells shares of Common Stock via a foreign broker, bank or service provider and receives proceeds in excess of this amount), and/or if the Corporation withholds or sells shares of Common Stock with a value in excess of this amount to cover Tax-Related Items, the Participant must report the payment and/or the value of the shares of Common Stock withheld or sold to Bundesbank electronically using the "General Statistics Portal" ("*Allgemeine Meldeportal Statistik*") available on the Bundesbank's website (<u>www.bundesbank.de</u>) or via such other method (e.g., by email or telephone) as is permitted or required by Bundesbank. The report must be submitted monthly or within such other timing as permitted or required by Bundesbank.

*Foreign Asset/Account Reporting Information*

If the Participant's acquisition of shares of Common Stock leads to a so-called qualified participation at any point during the calendar year, the Participant will need to report the acquisition when he or she files a tax return for the relevant year. A qualified participation occurs only if (i) the Participant owns 1% or more of the Corporation and the value of the shares of Common Stock exceeds €150,000 or (ii) the Participant holds shares of Common Stock exceeding 10% of the Corporation's total Common Stock.

**GUATEMALA**

*Language Waiver*

By participating in the Plan, the Participant acknowledges that he or she is proficient in reading and understanding English and fully understands the terms of the Plan, or, alternatively, that the Participant

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will seek appropriate assistance to understand the terms and conditions in the Award Agreement and this Appendix A.

**HONDURAS**

There are no country-specific provisions.

**HONG KONG**

*Securities Law Warning*

The offer of this Award and the shares of Common Stock subject to this Award do not constitute a public offering of securities under Hong Kong law and are available only to employees of the Corporation or its Affiliates participating in the Plan. The Participant should be aware that the Plan, the Plan prospectus and the contents of this Award Agreement (i) have not been prepared in accordance with and are not intended to constitute a "prospectus" for a public offering of securities under the applicable securities legislation in Hong Kong, (ii) have not been reviewed by any regulatory authority in Hong Kong, and (iii) are intended only for the personal use of each Participant and may not be distributed to any other person. The Participant is advised to exercise caution in relation to the offer. If the Participant is in any doubt about any of the contents of the Award Agreement, including this Appendix A, or the Plan, the Participant should obtain independent professional advice.

*Award Payable Only in Shares*

Awards granted to Participants in Hong Kong shall be paid in shares of Common Stock only and do not provide any right for the Participant to receive a cash payment.

*Sale of Shares*

In the event the Award vests within six months of the Grant Date, the Participant agrees that he or she will not offer to the public or otherwise dispose of the shares acquired prior to the six-month anniversary of the Grant Date. Any shares of Common Stock acquired under the Plan are accepted as a personal investment.

**INDIA**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in India do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**INDONESIA**

*Language Consent and Notification*

By accepting the RSUs, the Participant (i) confirms having read and understood the documents relating to this Award which were provided in the English language, (ii) accepts the terms of those documents accordingly, and (iii) agrees not to challenge the validity of this document based on Law No. 24 of 2009 on National Flag, Language, Coat of Arms and National Anthem or the implementing Presidential Regulation (when issued).

*Persetujuan dan Pemberitahuan Bahasa*

Dengan menerima pemberian Unit Saham Terbatas ini, Peserta (i) memberikan konfirmasi bahwa dirinya telah membaca dan memahami dokumen-dokumen berkaitan dengan pemberian ini yang disediakan dalam Bahasa Inggris, (ii) menerima persyaratan di dalam dokumen-dokumen tersebut, dan (iii) setuju untuk tidak mengajukan keberatan atas keberlakuan dari dokumen ini berdasarkan Undang-

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Undang No. 24 Tahun 2009 tentang Bendera, Bahasa dan Lambang Negara serta Lagu Kebangsaan ataupun Peraturan Presiden sebagai pelaksanaannya (ketika diterbitkan).

**ISRAEL**

*Securities Law Information*

The offer of this Award does not constitute a public offering under Securities Law, 1968.

*Broker Designation*

Shares of Common Stock issued to the Participant under the Plan must be maintained in an account with Merrill Lynch or such other broker as may be designated by the Corporation until the shares of Common Stock are sold through that broker.

*Restricted from Online Brokerage Transactions*

The Participant acknowledges and agrees that he or she will be restricted from online brokerage account transactions the Corporation's designated broker. Therefore, by accepting the Awards, the Participant understands and agrees that the Participant will call the Corporation's designated broker to initiate any sale or transfer of any shares of Common Stock issued to him or her upon vesting of the Awards. The Participant acknowledges that the Corporation's designated broker is under no obligation to arrange for the sale of the shares of Common Stock at any particular price.

**ITALY**

*Plan Document Acknowledgment* 

In accepting the grant of this Award, the Participant acknowledges that he or she has received a copy of the Plan and the Award Agreement and has reviewed the Plan and the Award Agreement, including this Appendix A, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including this Appendix A.

The Participant acknowledges that he or she has read and specifically and expressly approves the following sections of the Award Agreement: Section 2(g) on Payment of Tax-Related Items; Section 5 on No Right of Continued Employment; Section 8 on Governing Law and Consent to Jurisdiction; the section on Acknowledgment of Conditions; and the Data Privacy Notice section included in this Appendix A.

*Foreign Asset/Account Reporting Information*

Italian residents who, at any time during the fiscal year, hold foreign financial assets (including cash and shares of Common Stock) which may generate income taxable in Italy are required to report these assets on their annual tax returns (UNICO Form, RW Schedule) for the year during which the assets are held, or on a special form if no tax return is due. These reporting obligations will also apply to Italian residents who are the beneficial owners of foreign financial assets under Italian money laundering provisions.

*Foreign Asset Tax Information*

The value of financial assets held outside of Italy (including shares of Common Stock) by Italian residents is subject to a foreign asset tax. The taxable amount will be the fair market value of the financial assets (*e.g.*, shares of Common Stock acquired under the Plan) assessed at the end of the calendar year.

**KAZAKHSTAN**

*Securities Law Notification* 

This offer is addressed only to certain eligible employees in the form of the shares of Common Stock to be issued by the Corporation. Neither the Plan nor the Award Agreement has been approved, nor do they need to be approved, by the National Bank of Kazakhstan. This offer is intended only for the original recipient and is not for general circulation in the Republic of Kazakhstan.

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*Exchange Control Information*

Residents of Kazakhstan may be required to notify the National Bank of Kazakhstan when they acquire shares of Common Stock under the Plan if the value of such shares of Common Stock exceeds US$100,000.

Please note that the exchange control regulations in Kazakhstan are subject to change. The Participant should consult with his or her personal legal advisor regarding any exchange control obligations that the Participant may have prior to vesting or receiving proceeds from the sale of shares of Common Stock acquired under the Plan. The Participant is responsible for ensuring compliance with all exchange control laws in Kazakhstan.

**KENYA**

*Tax Registration Notification*

Under Tax Procedure Act, 2015, the Participant is required to complete and submit a tax registration application to the Commissioner of Income Tax with 30 days of first vesting of the RSUs. The registration should be completed through the online portal "I TAX" and is a one-time only registration. The Participant is solely responsible for ensuring compliance with all registration requirements in Kenya.

**KOREA**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Korea do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**MALAYSIA**

*Director Notification Obligation* 

If the Participant is a director of the Corporation's Malaysian Affiliate, the Participant is subject to certain notification requirements under the Malaysian Companies Act. Among these requirements is an obligation to notify the Malaysian Affiliate in writing when the Participant receives or disposes of an interest (*e.g.*, an Award or shares) in the Corporation or any related company. Such notifications must be made within 14 days of receiving or disposing of any interest in the Corporation or any related company.

**MEXICO**

*Modification*

By accepting the Award, the Participant understands and agrees that any modification of the Plan or the Award Agreement or its termination shall not constitute a change or impairment of the terms and conditions of employment.

*Acknowledgment of the Grant*

In accepting the Award, the Participant acknowledges that the Participant has received a copy of the Plan and the Award Agreement, including this Appendix A, has reviewed the Plan and the Award Agreement, including this Appendix A, in their entirety and fully understands and accepts all provisions of the Plan and the Award Agreement, including this Appendix A. The Participant further acknowledges that the Participant has read and specifically and expressly approves the Acknowledgment of Conditions section of the Award Agreement, in which the following is clearly described and established:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's participation in the Plan does not constitute an acquired right.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The Plan and the Participant's participation in the Plan are offered by the Corporation on a wholly discretionary basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;The Participant's participation in the Plan is voluntary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Corporation nor any Affiliates are responsible for any decrease in the value of the Award granted and/or shares of Common Stock issued under the Plan.

*Labor Acknowledgment and Policy Statement*

In accepting the grant of this Award, the Participant expressly recognizes that the Corporation, with registered offices at 351 Phelps Drive, Irving, Texas 75038, U.S.A., is solely responsible for the administration of the Plan and that the Participant's participation in the Plan and acquisition of shares of Common Stock do not constitute an employment relationship between the Participant and the Corporation since the Participant is participating in the Plan on a wholly commercial basis and his or her sole Employer is K-C AFC Manufacturing S. de R.L. de C.V. ("KCC-Mexico"). Based on the foregoing, the Participant expressly recognizes that the Plan and the benefits that he or she may derive from participating in the Plan do not establish any rights between the Participant and the Employer, KCC-Mexico and do not form part of the employment conditions and/or benefits provided by KCC-Mexico, and any modification of the Plan or its termination shall not constitute a change or impairment of the terms and conditions of the Participant's employment.

The Participant further understands that his or her participation in the Plan is as a result of a unilateral and discretionary decision of the Corporation; therefore, the Corporation reserves the absolute right to amend and/or discontinue the Participant's participation at any time without any liability to the Participant.

Finally, the Participant hereby declares that he or she does not reserve to him- or herself any action or right to bring any claim against the Corporation for any compensation or damages regarding any provision of the Plan or the benefits derived under the Plan, and the Participant therefore grants a full and broad release to the Corporation, its Affiliates, branches, representation offices, its shareholders, officers, agents, or legal representatives with respect to any claim that may arise.

***Spanish Translation***

*Modificación*

*Al aceptar el Premio, el Participante entiende y acuerda que cualquier modificación al Plan o al Acuerdo o su terminación, no cambiará o disminuirá los términos y condiciones de empleo.*

*Reconocimiento del Otorgamiento*

*Al aceptar el Premio, el Participante está de acuerdo en haber recibido una copia del Plan, del Acuerdo incluyendo el presente Anexo "A" y ha revisado el Plan y el Acuerdo, incluyendo este Anexo "A" en su totalidad y comprende y acepta todas las disposiciones previstas en el Plan, en el Acuerdo, incluyendo el presente Anexo "A". Asimismo, el Participante reconoce que ha leído y manifiesta su específica y expresa conformidad con los términos y condiciones establecidos del Acuerdo, en el cual claramente se describe y establece lo siguiente:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Participante en el Plan no constituye un derecho adquirido.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2)&nbsp;&nbsp;&nbsp;&nbsp;El Plan y la participación del Participante en el Plan se ofrecen por la Compañía de forma completamente discrecional.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Participante en el Plan es voluntaria.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(4)&nbsp;&nbsp;&nbsp;&nbsp;Ni la Compañía ni sus Afiliadas son responsables por la reducción del valor del Premio y/o Acciones Ordinarias emitidas bajo el Plan.*

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*Reconocimiento de la Legislación Laboral y Declaración de la Política* 

*Al aceptar el otorgamiento de este Premio, el Participante expresamente reconoce que Kimberly-Clark Corporación con oficinas registradas en 351 Phelps Drive, Irving, Texas 75038, EE.UU., es la única responsable por la administración del Plan y que la participación del Participante en el Plan y en su caso la adquisición de las Opciones de Compra de Acciones o Acciones no constituyen ni podrán interpretarse como una relación de trabajo entre el Participante y Kimberly-Clark Corporación, ya que el Participante participa en el Plan en un marco totalmente comercial y su único Patrón lo es K-C AFC Manufacturing S. de R.L. de C.V. ("KCC-Mexico"). Derivado de lo anterior, el Participante expresamente reconoce que el Plan y los beneficios que pudieran derivar de la participación en el Plan no establecen derecho alguno entre el Participante y el Patrón, KCC-Mexico y no forma parte de las condiciones de trabajo y/o las prestaciones otorgadas por KCC-Mexico y que cualquier modificación al Plan o su terminación no constituye un cambio o impedimento de los términos y condiciones de la relación de trabajo del Participante.*

*Asimismo, el Participante reconoce que su participación en el Plan es resultado de una decisión unilateral y discrecional de Kimberly-Clark Corporación por lo tanto, Kimberly-Clark Corporación se reserva el absoluto derecho de modificar y/o terminar la participación del Participante en cualquier momento y sin responsabilidad alguna frente el Participante.*

*Finalmente, el Participante por este medio declara que no se reserva derecho o acción alguna que ejercitar en contra de Kimberly-Clark Corporación por cualquier compensación o daño en relación con las disposiciones del Plan o de los beneficios derivados del Plan y por lo tanto, el Participante otorga el más amplio finiquito que en derecho proceda a Kimberly-Clark Corporación, sus afiliadas, subsidiarias, oficinas de representación, sus accionistas, funcionarios, agentes o representantes legales en relación con cualquier demanda que pudiera surgir.* 

*Securities Law Notification*

The RSUs and the shares of Common Stock offered under the Plan have not been registered with the National Register of Securities maintained by the Mexican National Banking and Securities Commission and cannot be offered or sold publicly in Mexico. In addition, the Plan, the Award Agreement and any other document relating to the RSUs may not be publicly distributed in Mexico. These materials are addressed to the Participant only because of their existing relationship with the Corporation and these materials should not be reproduced or copied in any form. The offer contained in these materials does not constitute a public offering of securities but rather constitutes a private placement of securities addressed specifically to individuals who are present employees of the Mexican subsidiary of the Corporation made in accordance with the provisions of the Mexican Securities Market Law, and any rights under such offering shall not be assigned or transferred*.*

**NETHERLANDS**

There are no country-specific provisions

**NEW ZEALAND**

*Securities Law Information*

The Participant is being offered RSUs which, if vested, will entitle the Participant to acquire shares of Common Stock in accordance with the terms of the Award Agreement and the Plan. The shares of Common Stock, if issued, will give the Participant a stake in the ownership of the Corporation. The Participant may receive a return if dividends are paid.

If the Corporation runs into financial difficulties and is wound up, the Participant will be paid only after all creditors and holders of preferred shares (if any) have been paid. The Participant may lose some or all of the Participant's investment, if any.

New Zealand law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors to make an informed decision. The

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usual rules do not apply to this offer because it is made under an employee share scheme. As a result, the Participant may not be given all the information usually required. The Participant will also have fewer other legal protections for this investment. The Participant is advised to ask questions, read all documents carefully, and seek independent financial advice before committing.

The shares of Common Stock are quoted on the New York Stock Exchange ("NYSE"). This means that if the Participant acquires shares of Common Stock under the Plan, the Participant may be able to sell the shares of Common Stock on the NYSE if there are interested buyers. The Participant may get less than the Participant invested. The price will depend on the demand for the shares of Common Stock.

For a copy of the Corporation's most recent financial statements (and, where applicable, a copy of the auditor's report on those financial statements), as well as information on risk factors impacting the Corporation's business that may affect the value of the shares of Common Stock, the Participant should refer to the risk factors discussion on the Corporation's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission and are available online at <u>www.sec.gov</u> as well as on the Corporation's "Investor Relations" website at <u>https://investor.kimberly-clark.com</u>.

**NIGERIA**

There are no country-specific provisions.

**PANAMA**

*Securities Law Information*

Neither this Award nor any shares of Common Stock that the Participant may acquire at vesting of this Award constitute a public offering of securities, as they are available only to eligible employees of the Corporation and its Affiliates.

**PARAGUAY**

There are no country-specific provisions.

**PERU**

*Securities Law Information*

The offer of this Award is considered a private offering in Peru; therefore, it is not subject to registration in Peru. For more information concerning the offer, please refer to the Plan, the Award Agreement and any other materials or documentation made available by the Corporation. For more information regarding the Corporation, please refer to the Corporation's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission and are available at <u>www.sec.gov</u>, as well as the Corporation's "Investor Relations" website at: <u>https://investor.kimberly-clark.com</u>.

*Labor Law Acknowledgment*

By accepting the Award, the Participant acknowledges that the RSUs are being granted *ex gratia* to the Participant.

**PHILIPPINES**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in the Philippines do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash in an amount equal to the value of the shares of Common Stock at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to

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settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

*Fringe Benefit Tax Obligation*

By accepting the Award, the Participant consents and agrees to assume any and all liability for fringe benefit tax that may be payable by the Corporation and/or the Employer (as determined by the Corporation or the Employer in their discretion) in connection with the Award and any awards previously granted by the Corporation. Further, by accepting the Award, the Participant agrees that the Corporation and/or the Employer may collect the fringe benefit tax from the Participant by any of the means set forth in the Acknowledgment of Conditions section of the Award Agreement, or any other reasonable method established by the Corporation. The Participant agrees to execute other consents or elections to accomplish the foregoing, promptly upon request by the Corporation or the Employer.

**POLAND**

*Foreign Asset/Account Reporting Information*

Polish residents holding foreign securities (e.g., shares of Common Stock) and/or maintaining accounts abroad must report information to the National Bank of Poland on transactions and balances regarding such securities and cash deposited in such accounts if the value of such securities and cash (when combined with all other assets possessed abroad) exceeds certain thresholds. If required, the reports must be filed on a quarterly basis on special forms that are available on the website of the National Bank of Poland. Polish residents should consult with their personal tax advisor to determine their personal reporting obligations.

*Exchange Control Information*

Transfers of funds into and out of Poland in excess of €15,000 (or PLN 15,000 if such transfer of funds is connected with business activity of an entrepreneur) must be made via a bank account held at a bank in Poland. Additionally, Polish residents are required to store all documents connected with any foreign exchange transactions that Polish residents are engaged in for a period of five years, as measured from the end of the year in which such transaction occurred.

**PUERTO RICO**

There are no country specific provisions.

**RUSSIA**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Russia do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

**SAUDI ARABIA**

*Securities Law Information.* 

This document may not be distributed in the Kingdom except to such persons as are permitted under the Rules on the Offer of Securities and Continuing Obligations issued by the Capital Market Authority.

The Capital Market Authority does not make any representation as to the accuracy or completeness of this document, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this document. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If the

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Participant does not understand the contents of this document, the Participant should consult an authorized financial adviser.

**SINGAPORE**

*Sale Restriction* 

The Participant agrees that any shares of Common Stock acquired pursuant to the RSUs will not be offered for sale in Singapore prior to the six-month anniversary of the Grant Date, unless such sale or offer is made pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the Securities and Futures Act (Chapter 289, 2006 Ed.) ("SFA"), or pursuant to, and in accordance with the conditions of, any other applicable provisions of the SFA.

*Securities Law Information*

The grant of the RSUs is being made pursuant to the "Qualifying Person" exemption" under section 273(1)(f) of the SFA under which it is exempt from the prospectus and registration requirements and is not made with a view to the underlying shares of Common Stock being subsequently offered for sale to any other party. The Plan has not been and will not be lodged or registered as a prospectus with the Monetary Authority of Singapore.

*Director Notification Obligation*

If the Participant is a director, associate director or shadow director of the Corporation's Singapore Affiliate, the Participant is subject to certain notification requirements under the Singapore Companies Act (Cap. 50, Rev Ed 2006). Among these requirements is an obligation to notify the Corporation's Singapore Affiliate in writing when the Participant receives an interest (*e.g.*, an Award or shares) in the Corporation or any Affiliate. In addition, the Participant must notify the Corporation's Singapore Affiliate when he or she sells shares of the Corporation or of any Affiliate (including when the Participant sells shares issued upon vesting and settlement of the Award). These notifications must be made within two business days of (i) acquiring or disposing of any interest in the Corporation or any Affiliate, or (ii) any change in a previously-disclosed interest (*e.g.*, upon vesting of the Award or when shares of Common Stock acquired under the Plan are subsequently sold). In addition, a notification of the Participant's interests in the Corporation or any Affiliate must be made within two business days of becoming a director, associate director or shadow director.

**SLOVAK REPUBLIC**

*Foreign Asset/Account Reporting Information*

If the Participant permanently resides in the Slovak Republic and, apart from being employed, carries on business activities as an independent entrepreneur (in Slovakian, *podnikatel*), the Participant will be obligated to report his or her foreign assets (including any foreign securities) to the National Bank of Slovakia (provided that the value of the foreign assets exceeds an amount of €2,000,000). These reports must be submitted on a monthly basis by the 15<sup>th</sup> day of the respective calendar month, as well as on a quarterly basis by the 15<sup>th</sup> day of the calendar month following the respective calendar quarter, using notification form DEV (NBS) 1-12, which may be found at the National Bank of Slovakia's website at <u>www.nbs.sk</u>.

**SOUTH AFRICA**

*Tax Acknowledgment*

By accepting the Award, the Participant agrees to notify the Employer of the amount of any gain realized upon vesting of the Award. If the Participant fails to advise the Employer of the gain realized upon vesting, the Participant may be liable for a fine. The Participant will be responsible for paying any difference between the actual tax liability and the amount withheld.

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*Exchange Control Information*

To participate in the Plan, the Participant must comply with exchange control regulations and rulings (the "Exchange Control Regulations") in South Africa.

Because the Exchange Control Regulations change frequently and without notice, the Participant understands that he or she should consult a legal advisor prior to the acquisition or sale of shares under the Plan to ensure compliance with current regulations. The Participant understands that it is his or her responsibility to comply with South African exchange control laws, and neither the Corporation nor the Employer will be liable for any fines or penalties resulting from failure to comply with applicable laws.

*Securities Law Information*

In compliance with South African securities law, the Participant acknowledges that the documents listed below are available for review at the addresses listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Corporation's most recent annual financial statements: <u>https://investor.kimberly-clark.com</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Corporation's most recent Plan prospectus may be accessed online through Merrill Lynch, or such other stock plan service provider as may be selected by the Corporation in the future, at <u>www.mybenefits.ml.com</u> in the Document Library.

A copy of the above documents will be sent free of charge upon written request to Stock Plan Administrator, P.O. Box 619100, Dallas, Texas 75261-9100. In addition, the Participant should contact his or her tax advisor for specific information concerning his or her personal tax situation with regard to Plan participation.

**SPAIN**

*Securities Law Information*

No "offer of securities to the public," as defined under Spanish law, has taken place or will take place in the Spanish territory in connection with the grant of the Award. The Award Agreement (including this Appendix A) has not been, nor will it be, registered with the *Comisión Nacional del Mercado de Valores*, and does not constitute a public offering prospectus.

*Labor Law Acknowledgment*

By accepting the Award, the Participant acknowledges that he or she understands and agrees to participation in the Plan and that he or she has received a copy of the Plan.

The Participant understands that the Corporation has unilaterally, gratuitously and discretionally decided to grant Awards under the Plan to individuals who may be employees of the Corporation or its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Corporation or any of its Affiliates on an ongoing basis. Consequently, the Participant understands that any grant is given on the assumption and condition that it shall not become a part of any employment contract (either with the Corporation or any of its Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further, the Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of the Award and the underlying shares is unknown and unpredictable. In addition, the Participant understands that this grant would not be made but for the assumptions and conditions referred to above; thus, the Participant understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the Award shall be null and void.

Further, the Participant understands that the Award is a conditional right. Participant shall forfeit any unvested Award upon termination of employment unless such termination is (i) due to a Qualified Termination of Employment, or (ii) due to death, Total and Permanent Disability, or the shutdown or divestiture of a business unit. Vesting will cease, for example, regardless of whether (1) the Participant is considered to be unfairly dismissed without good cause (i.e., subject to a "despido improcedente"); (2)

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the Participant is dismissed for disciplinary or objective reasons or due to a collective dismissal; (3) the Participant terminates his or her employment or service relationship due to a change of work location, duties or any other employment or contractual condition; and (4) the Participant terminates his or her employment or service relationship due to a unilateral breach of contract by the Corporation or an Affiliate. Consequently, upon termination of the Participant's employment or service relationship for any of the above reasons, the Participant may automatically lose any rights to the RSUs that were not vested on the date of termination of the Participant's employment or service relationship, as described in the Plan and the Award Agreement.

*Exchange Control Information* 

The Participant may be required to declare electronically to the Bank of Spain any foreign accounts (including brokerage accounts held abroad), any foreign instruments (including any shares of Common Stock acquired under the Plan) and any transactions with non-Spanish residents (including any payments of shares of Common Stock made to the Participant by the Corporation) depending on the value of such accounts and instruments and the amount of the transactions during the relevant year as of December 31 of the relevant year.

*Foreign Asset/Account Reporting Information*

If the Participant holds rights or assets (*e.g.*, shares of Common Stock or cash held in a bank or brokerage account) outside of Spain with a value in excess of €50,000 per type of right or asset (*e.g.*, shares of Common Stock, cash, etc.) as of December 31 each year, the Participant is required to report certain information regarding such rights and assets on tax form 720. After such rights and/or assets are initially reported, the reporting obligation will only apply for subsequent years if the value of any previously-reported rights or assets increases by more than €20,000 or if the ownership of the assets is transferred or relinquished during the year. The reporting must be completed by the following March 31.

**SWITZERLAND**

*Securities Law Information*

Neither this document nor any other materials relating to the Awards (i) constitutes a prospectus according to articles 35 et seq. of the Swiss Federal Act on Financial Services ("FinSA") (ii) may be publicly distributed or otherwise made publicly available in Switzerland to any person other than a participant or (iii) has been or will be filed with, approved or supervised by any Swiss reviewing body according to article 51 FinSA or any Swiss regulatory authority, including the Swiss Financial Market Supervisory Authority ("FINMA").

**TAIWAN**

*Data Privacy*

The following provision supplements the data privacy section in the Acknowledgment of Conditions section of the Award Agreement:

The Participant acknowledges that he or she has read and understands the terms regarding collection, processing and transfer of data contained in the Acknowledgment of Conditions section of the Award Agreement and, by participating in the Plan the Participant agrees to such terms. In this regard, upon request of the Corporation or the Employer, the Participant agrees to provide any executed data privacy consent form to the Employer or the Corporation (or any other agreements or consents that may be required by the Employer or the Corporation) that the Corporation and/or the Employer may deem necessary to obtain under the data privacy laws now or in the future. The Participant understands that he or she will not be able to participate in the Plan if the Participant fails to execute any such consent or agreement.

*Securities Law Information*

The offer of participation in the Plan is available only for employees of the Corporation and its Affiliates. The offer of participation in the Plan is not a public offer of securities by a Taiwanese company.

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*Exchange Control Information*

Taiwanese residents may acquire and remit foreign currency (including proceeds from the sale of shares of Common Stock or the receipt of dividends) into and out of Taiwan up to US$10,000,000 per year. If the transaction amount is TWD500,000 or more in a single transaction, the Participant must submit a foreign exchange transaction form and also provide supporting documentation to the satisfaction of the remitting bank.

**THAILAND**

*Exchange Control Information*

If the Participant receives proceeds from the sale of shares of Common Stock or cash dividends in relation to the shares of Common Stock in excess of US$1,000,000 in a single transaction, the Participant must immediately repatriate the funds to Thailand (or utilize such funds offshore for permissible purposes) and convert the funds to Thai Baht within 360 days of repatriation or deposit the funds in an authorized foreign exchange account in Thailand. The Participant is also required to provide details of the transaction (i.e., identification information and purpose of the transaction) to the receiving bank.

If the Participant does not repatriate such funds and utilizes them offshore for permissible purposes (*i.e.*, purposes not listed in the negative list prescribed by the Bank of Thailand), the Participant must obtain a waiver of the repatriation requirement from a commercial bank in Thailand by submitting an application and supporting documents evidencing that such funds will be utilized offshore for permissible purposes.

The Participant should consult their personal advisor prior to taking any action with respect to remittance of proceeds from the sale of shares of Common Stock into Thailand. The Participant is responsible for ensuring compliance with all exchange control laws in Thailand.

**TURKEY**

*Securities Law Information*

Turkish residents are not permitted to sell shares of Common Stock acquired under the Plan in Turkey. Turkish residents must sell the shares of Common Stock acquired under the Plan outside of Turkey. The Shares are currently traded on the New York Stock Exchange in the U.S. under the ticker symbol "KMB" and shares of Common Stock may be sold on this exchange.

*Exchange Control Information*

Under Turkish law, Turkish residents are permitted to purchase and sell securities or derivatives traded on exchanges abroad only through a financial intermediary licensed in Turkey. Therefore, the Participant may be required to appoint a Turkish broker to assist him or her with the sale of the shares of Common Stock acquired under the Plan. *The Participant should consult his or her personal legal advisor before selling any shares of Common Stock acquired under the Plan to confirm the applicability of this requirement to the Participant.*

**UKRAINE**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Ukraine do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to Participant through local payroll. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

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**UNITED ARAB EMIRATES**

*Securities Law Information*

The offer of the Award is available only for select employees of the Corporation and its Affiliates and is in the nature of providing employee incentives in the United Arab Emirates. The Plan and the Award Agreement are intended for distribution only to such employees and must not be delivered to, or relied on, by any other person. Prospective purchasers of securities should conduct their own due diligence.

The Emirates Securities and Commodities Authority has no responsibility for reviewing or verifying any documents in connection with this statement, including the Plan and the Award Agreement, or any other incidental communication materials distributed in connection with the Award. Further, neither the Ministry of Economy nor the Dubai Department of Economic Development has approved this statement nor taken steps to verify the information set out in it, and has no responsibility for it. Residents of the United Arab Emirates who have any questions regarding the contents of the Plan and the Award Agreement should obtain independent professional advice.

**UNITED KINGDOM** 

*Tax Acknowledgment*

The following information supplements the information regarding Tax-Related Items in the Acknowledgment of Conditions section of the Award Agreement:

Without limitation to the information regarding Tax-Related Items in the Award Agreement, the Participant agrees that he or she is liable for all Tax-Related Items and hereby covenants to pay all such Tax-Related Items, as and when requested by the Corporation or, if different, the Employer or by HM & Customs ("HMRC") (or any other tax authority or any other relevant authority). The Participant agrees to indemnify and keep indemnified the Corporation and/or the Employer for all Tax-Related Items that they are required to pay, or withhold or have paid or will pay to HMRC on the Participant's behalf (or any other tax authority or any other relevant authority) and authorizes the Corporation and/or the Employer to recover such amounts by any of the means referred to in the Acknowledgment of Conditions section of the Award Agreement.

Notwithstanding the foregoing, if the Participant is an executive officer or director (as within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the Participant understands that he or she may not be able to indemnify the Corporation for the amount of any Tax-Related Items not collected from or paid by the Participant, if the indemnification could be considered a loan. In this case, the Tax-Related Items not collected or paid may constitute a benefit to the Participant on which additional income tax and National Insurance contributions ("NICs") may be payable.

The Participant acknowledges that the Participant ultimately will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying to the Corporation or the Employer (as appropriate) the amount of any NICs due on this additional benefit, which the Corporation and/or the Employer may also recover from the Participant at any time thereafter by any of the means referred to in the Acknowledgment of Conditions section of the Award Agreement.

Page 45 of 48

------

**UNITED STATES**

---

| | |
|:---|:---|
| California | Nothing in this Award Agreement prevents the Participant from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that the Participant has reason to believe is unlawful. |
| Colorado | Nothing in this Award Agreement limits the Participant's ability to disclose or discuss, either orally or in writing, any alleged discriminatory or unfair employment practice. This Award Agreement does not prohibit disclosure of information that arises from the Participant's general training, knowledge, skill, or experience, whether gained on the job or otherwise, information that is readily ascertainable to the public, or information that the Participant otherwise has a right to disclose as legally protected conduct. |
| Hawaii | Nothing in this Award Agreement prevents the Participant from disclosing or discussing sexual harassment or sexual assault occurring in the workplace, at work-related events, between employees, or between an employer and an employee. |
| Illinois | Nothing in this Award Agreement prevents the Participant from making truthful statements or disclosures regarding unlawful employment practices or from reporting any allegations of unlawful conduct to federal, state, or local officials for investigation, including, but not limited to, alleged criminal conduct or unlawful employment practices. |
| Maine | Nothing in this Award Agreement prevents the Participant from disclosing or discussing unlawful employment discrimination occurring in the workplace or at work-related events. |
| New Jersey | Nothing in this Award Agreement requires the Participant to conceal the details relating to a claim of discrimination, retaliation, or harassment. |
| New York | Nothing in this Award Agreement prevents the Participant from (a) disclosing factual information related to any future claim of discrimination or (b) making any disclosure relating to any claim the factual foundation for which involves unlawful discrimination, including discriminatory harassment, or retaliation (including disclosure of the underlying facts and circumstances of the claim). |
| Oregon | Nothing in the Award Agreement prevents the Participant from disclosing or discussing conduct (a) that constitutes discrimination prohibited by ORS 659A.030 (Discrimination because of race, color, religion, sex, sexual orientation, gender identity, national origin, marital status, age or expunged juvenile record prohibited), including conduct that constitutes sexual assault, or by ORS 659A.082 (Discrimination against person for service in uniformed service prohibited) or 659A.112 (Employment discrimination), and (b) that occurred between employees or between an employer and an employee in the workplace or at a work-related event that is off the employment premises and coordinated by or through the employer, or between an employer and an employee off the employment premises. |
| Rhode Island | Nothing in this Award Agreement requires that alleged violations of civil rights or alleged unlawful conduct remain confidential. |
| Tennessee | Nothing in this Award Agreement prevents the Participant from disclosing sexual harassment in the workplace. |
| Vermont | Nothing in this Award Agreement restricts the Participant's right to oppose, disclose or report sexual harassment. |

---

Page 46 of 48

------

---

| | |
|:---|:---|
| Virginia | Nothing in this Award Agreement requires the Participant to conceal the details relating to a claim of sexual assault or sexual harassment. |
| Washington | Nothing in this Award Agreement (or any other agreement signed by the Participant) prevents the Participant from disclosing or discussing conduct, or the existence of a settlement involving conduct, that the Participant reasonably believed under Washington state, federal, or common law to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy. |
| Wisconsin | The Participant's confidentiality obligations outlined in Section 19(e) of this Award Agreement with regard to any particular Confidential Information shall commence immediately upon the Participant first having access to such Confidential Information and shall continue during and after employment with the Corporation and its Affiliates until such time as such Confidential Information has become public knowledge other than as a result of the Participant's breach of this Award Agreement or breach by those acting in concert with the Participant or on the Participant's behalf, and shall last for two (2) years after the Participant's employment with the Corporation or its Affiliates ends. Except for "trade secrets" as defined in Wisconsin Statutes §134.90, which are governed by that statute, (a) "Confidential Information" is limited to information that is not generally known to the public (other than through Participant's disclosure in breach of contract or violation of applicable law) and that would be of value to a competitor if known to that competitor, and (b) the prohibition on disclosure and use of Confidential Information shall apply only (i) during employment and for a period of two years after employment ends and (ii) within the geographic area in which the Corporation and its Affiliates were engaged in business at any time during the most recent three months of Participant's employment with the Corporation and its Affiliates. |

---

**URUGUAY**

There are no country-specific provisions.

**VIETNAM**

*Awards Payable in Cash Only*

Notwithstanding anything in the Award Agreement, Awards granted to Participants in Vietnam do not provide any right for the Participant to receive shares of Common Stock and shall be paid only in cash through local payroll in an amount equal to the value of the shares at vesting less any Tax-Related Items. The Participant agrees to bear any currency fluctuation risk between the time the Awards vest and the time the cash payment is distributed to the Participant through local payroll. The Corporation reserves the right to settle the Awards in shares of Common Stock to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons.

Page 47 of 48

------

**KIMBERLY-CLARK CORPORATION**

**ANNUAL TIME-VESTED RESTRICTED STOCK UNIT**

**AWARD AGREEMENT** 

**APPENDIX B** 

Subject to Section 19(h), the length of the Participant's non-competition obligations following termination of employment as set forth in Section 19(b) and/or Section 20(c) of this Award Agreement is based on the Participant's Salary Grade as of the date of termination of employment:

---

| | |
|:---|:---|
| **Salary Grade** | **Length of Non-Competition Obligation Following Termination of Employment** |
| ELT | Two (2) years |
| Non-ELT Elected Officers | Two (2) years |
| 1 | Two (2) years |
| 2 | Two (2) years |
| 3 | Two (2) years |
| 4 | Two (2) years |
| 5 | One (1) year |
| 6 | One (1) year |
| 7 | One (1) year |
| 8 | One (1) year |

---

Page 48 of 48

## Ex-10.U

**Exhibit (10)u**

**EQUITY AND ASSET PURCHASE AGREEMENT** 

by and among

**KIMBERLY-CLARK CORPORATION,**

as the Seller,

**KIMBERLY-CLARK IFP NEWCO B.V**.,

as the Company,

and

**SUZANO INTERNATIONAL HOLDING B.V.**,

as the Buyer

Dated as of June 4, 2025

------

**<u>**TABLE OF CONTENTS**</u>**

---

| | |
|:---|:---|
| | <u>Page</u> |
| **ARTICLE I DEFINITIONS** | <u>[1](#i75802f9ca89244a79e9475ca0a364d9a_10)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 Certain Defined Terms | <u>[1](#i75802f9ca89244a79e9475ca0a364d9a_633)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 1.2 Table of Definitions | <u>[18](#i75802f9ca89244a79e9475ca0a364d9a_652)</u> |
| **ARTICLE II COMPANY TRANSFER; PURCHASE AND SALE OF COMPANY TRANSFERRED INTERESTS** | <u>[22](#i75802f9ca89244a79e9475ca0a364d9a_13)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.1 Company Transfer | <u>[22](#i75802f9ca89244a79e9475ca0a364d9a_670)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.2 Excluded Assets | <u>[24](#i75802f9ca89244a79e9475ca0a364d9a_704)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.3 Assumed Liabilities | <u>[25](#i75802f9ca89244a79e9475ca0a364d9a_724)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.4 Excluded Liabilities | <u>[26](#i75802f9ca89244a79e9475ca0a364d9a_742)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.5 Consents to Certain Assignments | <u>[27](#i75802f9ca89244a79e9475ca0a364d9a_760)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.6 Purchase and Sale of the Company Transferred Interests | <u>[28](#i75802f9ca89244a79e9475ca0a364d9a_778)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.7 Actions at the Closing: Closing Deliverables | <u>[29](#i75802f9ca89244a79e9475ca0a364d9a_796)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.8 Closing | <u>[30](#i75802f9ca89244a79e9475ca0a364d9a_814)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.9 Net Working Capital Target | <u>[30](#i75802f9ca89244a79e9475ca0a364d9a_865)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.10 Closing Purchase Price Adjustment | <u>[32](#i75802f9ca89244a79e9475ca0a364d9a_883)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.11 Withholding | <u>[35](#i75802f9ca89244a79e9475ca0a364d9a_902)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.12 Japan Transfer | <u>[36](#i75802f9ca89244a79e9475ca0a364d9a_920)</u> |
| **ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER** | <u>[36](#i75802f9ca89244a79e9475ca0a364d9a_16)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.1 Organization and Qualification of the Seller and the Company | <u>[36](#i75802f9ca89244a79e9475ca0a364d9a_938)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.2 Authority | <u>[37](#i75802f9ca89244a79e9475ca0a364d9a_957)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.3 No Conflict; Required Filings and Consents | <u>[37](#i75802f9ca89244a79e9475ca0a364d9a_975)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.4 Title to Transferred Assets; Sufficiency of Assets | <u>[38](#i75802f9ca89244a79e9475ca0a364d9a_993)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.5 Financial Statements | <u>[40](#i75802f9ca89244a79e9475ca0a364d9a_1011)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.6 No Undisclosed Liabilities | <u>[40](#i75802f9ca89244a79e9475ca0a364d9a_1029)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.7 Absence of Certain Changes or Events | <u>[40](#i75802f9ca89244a79e9475ca0a364d9a_1047)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.8 Compliance with Law; Business Permits | <u>[41](#i75802f9ca89244a79e9475ca0a364d9a_1065)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.9 Litigation | <u>[41](#i75802f9ca89244a79e9475ca0a364d9a_1083)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.10 Employee Plans | <u>[42](#i75802f9ca89244a79e9475ca0a364d9a_1101)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.11 Labor and Employment Matters | <u>[43](#i75802f9ca89244a79e9475ca0a364d9a_1119)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.12 Insurance | <u>[44](#i75802f9ca89244a79e9475ca0a364d9a_1137)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.13 Real Property | <u>[44](#i75802f9ca89244a79e9475ca0a364d9a_1155)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.14 Intellectual Property | <u>[45](#i75802f9ca89244a79e9475ca0a364d9a_1173)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.15 Taxes | <u>[47](#i75802f9ca89244a79e9475ca0a364d9a_1191)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.16 Environmental Matters | <u>[48](#i75802f9ca89244a79e9475ca0a364d9a_1209)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.17 Products | <u>[49](#i75802f9ca89244a79e9475ca0a364d9a_1227)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.18 Material Contracts | <u>[49](#i75802f9ca89244a79e9475ca0a364d9a_1245)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.19 Brokers | <u>[52](#i75802f9ca89244a79e9475ca0a364d9a_1263)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.20 Intercompany Agreements | <u>[52](#i75802f9ca89244a79e9475ca0a364d9a_1281)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.21 Exclusivity of Representations and Warranties | <u>[52](#i75802f9ca89244a79e9475ca0a364d9a_1299)</u> |

---

i

------

---

| | |
|:---|:---|
| **ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYER** | <u>[53](#i75802f9ca89244a79e9475ca0a364d9a_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.1 Organization | <u>[53](#i75802f9ca89244a79e9475ca0a364d9a_1317)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.2 Authority | <u>[53](#i75802f9ca89244a79e9475ca0a364d9a_1336)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.3 No Conflict; Required Filings and Consents | <u>[53](#i75802f9ca89244a79e9475ca0a364d9a_1355)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.4 Financing | <u>[54](#i75802f9ca89244a79e9475ca0a364d9a_1373)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.5 Brokers | <u>[54](#i75802f9ca89244a79e9475ca0a364d9a_1391)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.6 Litigation | <u>[54](#i75802f9ca89244a79e9475ca0a364d9a_1409)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.7 R&W Insurance Policy | <u>[54](#i75802f9ca89244a79e9475ca0a364d9a_1427)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.8 Pending Transactions | <u>[54](#i75802f9ca89244a79e9475ca0a364d9a_1445)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.9 Anti-Hybrid Mismatch Rules | <u>[55](#i75802f9ca89244a79e9475ca0a364d9a_1463)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.10 Exclusivity of Representations and Warranties | <u>[55](#i75802f9ca89244a79e9475ca0a364d9a_1481)</u> |
| **ARTICLE V COVENANTS** | <u>[55](#i75802f9ca89244a79e9475ca0a364d9a_22)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.1 Conduct of Business Prior to Closing | <u>[55](#i75802f9ca89244a79e9475ca0a364d9a_1499)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.2 Covenants Regarding Information: Litigation Support | <u>[59](#i75802f9ca89244a79e9475ca0a364d9a_1518)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.3 Contact with Business Relations | <u>[62](#i75802f9ca89244a79e9475ca0a364d9a_1537)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.4 Confidentiality | <u>[63](#i75802f9ca89244a79e9475ca0a364d9a_1556)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.5 Consents and Filings: Further Assurances | <u>[63](#i75802f9ca89244a79e9475ca0a364d9a_1574)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.6 Public Announcements | <u>[65](#i75802f9ca89244a79e9475ca0a364d9a_1592)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.7 Release of Seller Guarantees | <u>[66](#i75802f9ca89244a79e9475ca0a364d9a_1610)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.8 Intellectual Property Matters | <u>[66](#i75802f9ca89244a79e9475ca0a364d9a_1628)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.9 Employee Matters | <u>[67](#i75802f9ca89244a79e9475ca0a364d9a_1646)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.10 R&W Insurance Policy | <u>[74](#i75802f9ca89244a79e9475ca0a364d9a_1664)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.11 Refunds and Remittances; Wrong Pockets; Mail and Other Communications | <u>[74](#i75802f9ca89244a79e9475ca0a364d9a_1683)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.12 Bulk Transfer Laws | <u>[75](#i75802f9ca89244a79e9475ca0a364d9a_1701)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.13 Comingled Contracts | <u>[75](#i75802f9ca89244a79e9475ca0a364d9a_1719)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.14 Comingled Permits | <u>[76](#i75802f9ca89244a79e9475ca0a364d9a_1737)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.15 Reorganization | <u>[77](#i75802f9ca89244a79e9475ca0a364d9a_1756)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.16 Reorganization Committee | <u>[78](#i75802f9ca89244a79e9475ca0a364d9a_1775)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.17 Separation of Business Data | <u>[80](#i75802f9ca89244a79e9475ca0a364d9a_1793)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.18 Intercompany Accounts: Cash | <u>[80](#i75802f9ca89244a79e9475ca0a364d9a_1811)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.19 Termination of Intercompany Arrangements | <u>[81](#i75802f9ca89244a79e9475ca0a364d9a_1830)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.20 Release | <u>[81](#i75802f9ca89244a79e9475ca0a364d9a_1848)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.21 Insurance | <u>[82](#i75802f9ca89244a79e9475ca0a364d9a_1866)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.22 Delayed Approval and Delayed Closings | <u>[83](#i75802f9ca89244a79e9475ca0a364d9a_1884)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.23 Transferred Machinery | <u>[84](#i75802f9ca89244a79e9475ca0a364d9a_1902)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.24 Removal of Excluded Assets | <u>[85](#i75802f9ca89244a79e9475ca0a364d9a_1920)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.25 Additional Geographic Regions Business | <u>[85](#i75802f9ca89244a79e9475ca0a364d9a_1938)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.26 Supply Chain Finance | <u>[85](#i75802f9ca89244a79e9475ca0a364d9a_1956)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.27 Privileged Matters | <u>[85](#i75802f9ca89244a79e9475ca0a364d9a_1974)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.28 Environmental Insurance | <u>[86](#i75802f9ca89244a79e9475ca0a364d9a_1992)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.29 Minimum Cash Allocation | <u>[86](#i75802f9ca89244a79e9475ca0a364d9a_2010)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.30 Further Assurances | <u>[87](#i75802f9ca89244a79e9475ca0a364d9a_2028)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.31 Company Financing | <u>[87](#i75802f9ca89244a79e9475ca0a364d9a_2046)</u> |

---

ii

------

---

| | |
|:---|:---|
| **ARTICLE VI TAX MATTERS** | <u>[88](#i75802f9ca89244a79e9475ca0a364d9a_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.1 Returns; Refunds | <u>[88](#i75802f9ca89244a79e9475ca0a364d9a_2065)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.2 Cooperation of Tax Matters | <u>[90](#i75802f9ca89244a79e9475ca0a364d9a_2083)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.3 Transfer Taxes and VAT | <u>[90](#i75802f9ca89244a79e9475ca0a364d9a_2101)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.4 Intended Tax Treatment: Purchase Price Allocation | <u>[92](#i75802f9ca89244a79e9475ca0a364d9a_2119)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.5 Tax Restrictions | <u>[93](#i75802f9ca89244a79e9475ca0a364d9a_2138)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.6 Tax Proceedings | <u>[93](#i75802f9ca89244a79e9475ca0a364d9a_2156)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.7 Tax Status | <u>[93](#i75802f9ca89244a79e9475ca0a364d9a_2174)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.8 Treatment of Certain Payments | <u>[94](#i75802f9ca89244a79e9475ca0a364d9a_2192)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.9 Tax Group Arrangements | <u>[94](#i75802f9ca89244a79e9475ca0a364d9a_2210)</u> |
| **ARTICLE VII CONDITIONS TO CLOSING** | <u>[94](#i75802f9ca89244a79e9475ca0a364d9a_28)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 7.1 General Conditions | <u>[94](#i75802f9ca89244a79e9475ca0a364d9a_2243)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 7.2 Conditions to Obligations of the Seller | <u>[95](#i75802f9ca89244a79e9475ca0a364d9a_2262)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 7.3 Conditions to Obligations of the Buyer | <u>[95](#i75802f9ca89244a79e9475ca0a364d9a_2280)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 7.4 Frustration of Closing Conditions | <u>[96](#i75802f9ca89244a79e9475ca0a364d9a_2298)</u> |
| **ARTICLE VIII INDEMNIFICATION** | <u>[96](#i75802f9ca89244a79e9475ca0a364d9a_31)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.1 Survival of Representation, Warranties and Covenants | <u>[96](#i75802f9ca89244a79e9475ca0a364d9a_2316)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.2 Indemnification by the Seller | <u>[96](#i75802f9ca89244a79e9475ca0a364d9a_2335)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.3 Indemnification by the Buyer | <u>[96](#i75802f9ca89244a79e9475ca0a364d9a_2353)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.4 Indemnification by the Company | <u>[96](#i75802f9ca89244a79e9475ca0a364d9a_2371)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.5 Procedures | <u>[97](#i75802f9ca89244a79e9475ca0a364d9a_2389)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.6 Limits on Indemnification | <u>[98](#i75802f9ca89244a79e9475ca0a364d9a_2407)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.7 Tax Matters | <u>[99](#i75802f9ca89244a79e9475ca0a364d9a_2425)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.8 Exclusive Remedy | <u>[99](#i75802f9ca89244a79e9475ca0a364d9a_2443)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.9 No Right of Setoff | <u>[100](#i75802f9ca89244a79e9475ca0a364d9a_2461)</u> |
| **ARTICLE IX TERMINATION** | <u>[100](#i75802f9ca89244a79e9475ca0a364d9a_34)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 9.1 Termination | <u>[100](#i75802f9ca89244a79e9475ca0a364d9a_2479)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 9.2 Effect of Termination | <u>[101](#i75802f9ca89244a79e9475ca0a364d9a_2578)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 9.3 Buyer Termination Payment | <u>[101](#i75802f9ca89244a79e9475ca0a364d9a_2596)</u> |
| **ARTICLE X GENERAL PROVISIONS** | <u>[102](#i75802f9ca89244a79e9475ca0a364d9a_37)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.1 Buyers Investigation and Reliance | <u>[102](#i75802f9ca89244a79e9475ca0a364d9a_2727)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.2 Fees and Expenses | <u>[103](#i75802f9ca89244a79e9475ca0a364d9a_2751)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.3 Amendment and Modification | <u>[103](#i75802f9ca89244a79e9475ca0a364d9a_2769)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.4 Waiver, Extension | <u>[103](#i75802f9ca89244a79e9475ca0a364d9a_2787)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.5 Notices | <u>[103](#i75802f9ca89244a79e9475ca0a364d9a_2805)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.6 Interpretation | <u>[104](#i75802f9ca89244a79e9475ca0a364d9a_2823)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.7 Entire Agreement | <u>[105](#i75802f9ca89244a79e9475ca0a364d9a_2841)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.8 Parties in Interest | <u>[105](#i75802f9ca89244a79e9475ca0a364d9a_2859)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.9 Governing Law | <u>[105](#i75802f9ca89244a79e9475ca0a364d9a_2877)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.10 Submission to Jurisdiction | <u>[106](#i75802f9ca89244a79e9475ca0a364d9a_2895)</u> |

---

iii

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.11 Disclosure Generally | <u>[107](#i75802f9ca89244a79e9475ca0a364d9a_2913)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.12 Assignment, Successors | <u>[107](#i75802f9ca89244a79e9475ca0a364d9a_2931)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.13 Enforcement | <u>[107](#i75802f9ca89244a79e9475ca0a364d9a_2949)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.14 Currency Exchange Rates | <u>[107](#i75802f9ca89244a79e9475ca0a364d9a_2967)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.15 Severability | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_2985)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.16 Waiver of Jury Trial | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3003)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.17 Counterparts | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3021)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.18 Electronic Signature | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3039)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.19 Time of Essence | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3057)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.20 No Presumption Against Drafting Party | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3075)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.21 Prevailing Party | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3093)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.22 Personal Liability | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3111)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.23 Non-Recourse | <u>[108](#i75802f9ca89244a79e9475ca0a364d9a_3129)</u> |

---

iv

------

---

| | |
|:---|:---|
| **EXHIBITS** | **EXHIBITS** |
| Exhibit A | Form of Co-Existence Agreement |
| Exhibit B | Form of Governance Agreement |
| Exhibit C | Form of IP Assignment Agreement |
| Exhibit D | Form of Know-How and Patent License Agreement |
| Exhibit E | Form of Local Asset Transfer Agreement |
| Exhibit F | Form of Local Share Transfer Agreement |
| Exhibit G | Form of Put and Call Option Agreement |
| Exhibit H | Form of Trademark License Agreement |
| Exhibit I | Form of Transition Services Agreement |
| Exhibit J | Form of Transitional Supply Agreement |
| Exhibit K | Applicable Accounting Principles |
| Exhibit L | Sample Statement |
| Exhibit M | Certain Dutch and French Interests |
| Exhibit N | Illustrative Net Working Capital Calculation |
| Exhibit O | Form of Financial Update |
| **SCHEDULES** | **SCHEDULES** |
| Schedule 1.1(a)(i) | 2025 Capital Budget |
| Schedule 1.1(a)(ii) | 2026 Capital Budget |
| Schedule 1.1(b) | Asset Jurisdiction |
| Schedule 1.1(c) | Assumed Plans |
| Schedule 1.1(d) | Business Employees |
| Schedule 1.1(e) | Shared Services Business Employees |
| Schedule 1.1(f) | Knowledge Individuals |
| Schedule 1.1(g)&nbsp;&nbsp;&nbsp;&nbsp; | Pegasus Operational Adjustment |
| Schedule 1.1(h) | Potentially Delayed Jurisdictions |
| Schedule 1.1(i) | Products of the Business |
| Schedule 2.1(b) | Transferred Intellectual Property |
| Schedule 2.1(c) | Transferred Computer Systems |
| Schedule 2.1(g) | Transferred Business Permits |
| Schedule 2.1(i) | Transferred Leases |
| Schedule 2.1(j) | Transferred Owned Real Property |
| Schedule 2.1(t) | Other Transferred Assets |
| Schedule 2.2(b) | Excluded IFP and ABU Assets |
| Schedule 2.2(n) | Other Contracts |
| Schedule 2.2(r) | Excluded Actions |
| Schedule 2.2(s) | Other Excluded Assets |
| Schedule 2.4(j) | Other Excluded Liabilities |
| Schedule 3.4(a) | Title to Transferred Assets |
| Schedule 3.4(d) | Equity Interests |
| Schedule 3.5 | Financial Statements |
| Schedule 3.8(b) | Business Permits |
| Schedule 3.10(a) | Employee Plans |
| Schedule 3.10(c) | Multiemployer and ERISA Plans |

---

v

------

---

| | |
|:---|:---|
| Schedule 3.10(f) | Material Employee Payments |
| Schedule 3.11(a) | Collective Bargaining Agreements |
| Schedule 3.11(b) | Labor Organization Notices |
| Schedule 3.11(f) | Employee Termination Restrictions and Excess Indemnification |
| Schedule 3.12 | Insurance Policies |
| Schedule 3.13(a) | Owned Real Property |
| Schedule 3.13(b) | Leased Real Property |
| Schedule 3.14(a) | Intellectual Property |
| Schedule 3.18(a) | Material Contracts |
| Schedule 3.18(c) | Material Distributors, Customers and Suppliers |
| Schedule 3.18(d) | Supplier Finance Providers |
| Schedule 3.20 | Intercompany Agreements |
| Schedule 5.1 | Conduct of Business |
| Schedule 5.7 | Seller Guarantees |
| Schedule 5.9(f) | Compensation and Benefits |
| Schedule 5.9(k) | Substitute Awards |
| Schedule 5.13 | Comingled Contracts |
| Schedule 5.15 | Reorganization |
| Schedule 5.18 | Intercompany Accounts |
| Schedule 5.19 | Terminated Intercompany Agreements |
| Schedule 5.31 | Company Financing |
| Schedule 5.23 | Transferred Machinery |
| Schedule 6.4(b) | Valuation of Assigned and Licensed Intellectual Property |
| Schedule 6.4(d) | Binding Allocation Principles |
| Schedule 7.1(b) | Antitrust Filings or Foreign Investment Law Approvals |
| Schedule 7.1(d) | Key Reorganization Steps |
| Schedule 7.3(d) | Consents, Approvals and Waivers |

---

vi

------

**EQUITY AND ASSET PURCHASE AGREEMENT**

This EQUITY AND ASSET PURCHASE AGREEMENT (this "**Agreement**") is made and entered into as of June 4, 2025, by and among Kimberly-Clark Corporation, a Delaware corporation (the "**Seller**"), Kimberly-Clark IFP NewCo B.V., a private company with limited liability organized and existing under the Laws of the Netherlands and indirect, wholly owned subsidiary of Seller (the "**Company**"), and Suzano International Holding B.V., a private company with limited liability organized and existing under the Laws of the Netherlands (the "**Buyer**" and, together with the Seller, the "**Parties**", and each, a "**Party**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Seller, through its Selling Affiliates, conducts a global business of manufacturing or having made, marketing, developing, distributing or selling consumer and professional products, including bath tissue, towels, table napkins, hard rolls, facial tissue and wipe products, consisting of those products set forth in <u>Schedule 1.1(i)</u> of the Disclosure Schedules, and, in each case, as conducted through the Seller's IFP Segment and solely in the ABU Geographic Regions (such business, excluding the businesses included in the definition of the Excluded Business, the "**Business**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, prior to the Closing, the Seller will effect the Reorganization and enter into the Put and Call Option Agreement pursuant to <u>Section 5.15</u> of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, on the terms and subject to the conditions set forth in this Agreement, at or prior to the Closing, the Seller wishes to, and to cause the Selling Affiliates to, assign, transfer and convey to the Company or one of its Subsidiaries, and the Company and such Subsidiaries wish to accept from the Seller and the Selling Affiliates, the Transferred Assets, including the Purchased Shares, and in connection therewith, the Company or one of its Subsidiaries is willing to assume the Assumed Liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. &nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, concurrently with the execution of this Agreement, and as a condition and inducement to the Seller's willingness to enter into this Agreement, Buyer Parent ("**Guarantor**") and the Buyer have delivered a Guaranty (the "**Guaranty**"), in favor of the Seller and pursuant to which, subject to the terms and conditions contained therein, the Guarantor is guaranteeing certain obligations of Buyer under this Agreement.

**AGREEMENT**

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the Parties agree as follows:

**ARTICLE I <br>DEFINITIONS**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Defined Terms</u>. For purposes of this Agreement:

"**2025 Capital Budget**" means the fiscal-year 2025 capital budget, with respect to fiscal-year 2025, as set forth in <u>Schedule 1.1(a)(i)</u> of the Disclosure Schedules.

"**2026 Capital Budget**" means the fiscal-year 2026 capital budget, with respect to fiscal-year 2026, as set forth in <u>Schedule 1.1(a)(ii)</u> of the Disclosure Schedules.

"**ABU Geographic Regions**" means Europe, the United Kingdom, Ireland, Africa, South America, Central America, Puerto Rico, Middle East, Asia (including South East Asia) and Oceania; <u>provided</u> that none of the following countries shall be considered an ABU Geographic Region: (a) Korea;

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(b) Mexico; (c) Saudi Arabia; (d) Bahrain; (e) Qatar; (f) Kuwait; (g) Oman; (h) the United Arab Emirates; (i) Brazil; (j) Bolivia; (k) Russia; and (l) Kazakhstan.

"**Action**" means any claim, action, suit, arbitration, mediation, investigation or proceeding by or before any Governmental Authority.

"**Additional Geographic Regions Business**" means the business of manufacturing or having made, marketing, developing, distributing or selling consumer and professional tissue products, including bath tissue, towels, table napkins, hard rolls, facial tissue, and wipe products, consisting of those products set forth in <u>Schedule 1.1(i)</u> of the Disclosure Schedules, and, in each case, as conducted through the Seller's IFP Segment and solely in Russia and Kazakhstan.

"**Affiliate**" means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person. As used in this Agreement, the Company Transfer Agreements and the Ancillary Agreements, after the Closing, the members of the Company Group shall not be considered Affiliates of the Seller or any Selling Affiliate and shall instead be considered Affiliates of the Buyer.

"**Ancillary Agreements**" means the Company Transfer Agreements, the IP Assignment Agreement, the Transition Services Agreement, the Trademark License Agreement, the Grant-Back Trademark License Agreement, the Transitional Supply Agreements, the Co-Existence Agreement, the Know-How and Patent License Agreement, the Governance Agreement, the Guaranty and the Notarial Deed of Sale and Transfer.

"**Anti-Corruption Laws**" means the U.S. Foreign Corrupt Practices Act of 1977 and any other applicable Law that is designed or related to prohibiting bribery or corruption, money laundering or terrorism financing.

"**Anti-Hybrid Mismatch Rules**" means rules implemented under the Council Directive (EU) 2017/952 of 29 May 2017 amending Directive (EU) 2016/1164 as regarding hybrid mismatches with third countries (the "**Anti-Hybrid Mismatch Directive**"), or similar rules.

"**Antitrust Law**" means all Laws that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or lessening of competition through merger or acquisition.

"**Applicable Data Protection Requirements**" means, to the extent relating to privacy, data protection, or data security: all (a) applicable Laws; (b) Contracts; (c) written privacy policies or notices; and (d) the Payment Card Industry Data Security Standard (PCI DSS) or other industry standards, in each case of <u>clauses (a)</u> through <u>(d)</u>, to the extent binding on (x) the Seller or the Selling Affiliates with respect to the Business or (y) any member of the Company Group.

"**ARD Business Employee**" means each Business Employee whose principal place of work is a jurisdiction subject to the ARD Regulations.

"**ARD Regulations**" means the Acquired Rights Directive 2001/23 EC of the European Council, dated March 12, 2001, as may be amended from time to time, and such applicable Law, agreement or other measure in each country that implements or extends the Acquired Rights Directive 2001/23 EC and other similar or comparable employee transfer Laws, such as employer substitution Laws, related to the transfer, or liability related to transfer, of employees.

"**Asset Jurisdiction**" has the meaning set forth in <u>Schedule 1.1(b)</u> of the Disclosure Schedules.

------

"**Asset Jurisdiction Inventory**" means all of the Inventory of the Asset Jurisdictions, collectively.

"**Asset Jurisdiction Inventory Amount**" means, at a specified time and without duplication, the value in U.S. dollars of the Asset Jurisdiction Inventory, calculated in accordance with the Applicable Accounting Principles. For the avoidance of doubt, the Asset Jurisdiction Inventory Amount shall exclude any amounts to the extent otherwise taken into account in the calculation of Transferred Subsidiary Inventory Amount or the Transferred Subsidiary Net Working Capital.

"**Asset Jurisdiction Net Working Capital**" means, at a specified time and without duplication, an amount (which may be positive or negative) equal to (a) the aggregate value of the current assets of the Asset Jurisdictions to the extent allocated to the Business in accordance with the Applicable Accounting Principles (including the Asset Jurisdiction Inventory Amount), <u>minus</u> (b) the aggregate value of the current liabilities of the Asset Jurisdictions to the extent allocated to the Business in accordance with the Applicable Accounting Principles, in each case, on a basis substantially consistent with the Illustrative Net Working Capital Calculation; <u>provided</u> that, for the avoidance of doubt, Asset Jurisdiction Net Working Capital shall (i) exclude any amounts otherwise taken into account in the calculation of Cash or Indebtedness, (ii) exclude any Tax assets or Liabilities and any Recoverable VAT Loans, (iii) be calculated in accordance with the Applicable Accounting Principles, (iv) exclude the Excluded Assets and the Excluded Liabilities, (v) exclude any amounts otherwise taken into account in the calculation of Transferred Subsidiary Net Working Capital and (vi) exclude any cash held by a member of the Company Group for the purpose of satisfying a Tax liability for which Seller is responsible pursuant to <u>Section 6.1(b)</u> or <u>Section 6.3(b)</u>.

"**Asset Jurisdiction Net Working Capital Overage**" means the amount by which the Estimated Asset Jurisdiction Net Working Capital or the Closing Asset Jurisdiction Net Working Capital (as applicable) exceeds the Final Asset Jurisdiction Net Working Capital Target.

"**Asset Jurisdiction Net Working Capital Underage**" means the amount (which shall be an absolute value) by which the Final Asset Jurisdiction Net Working Capital Target exceeds the Estimated Asset Jurisdiction Net Working Capital or the Closing Asset Jurisdiction Net Working Capital (as applicable).

"**Assumed Plan**" means each Business Employee Plan (other than a Transferred Subsidiary Plan) (a) that is specifically identified as an Assumed Plan on <u>Schedule 1.1(c)</u> of the Disclosure Schedules or (b) that otherwise transfers to, or is assumed by, the Buyer or any of its Affiliates by the operation of applicable Law.

"**Base Purchase Price**" means $1,734,000,000.

"**Business Day**" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in Dallas, Texas; São Paulo, Brazil; or Amsterdam, Netherlands.

"**Business Data**" means all business data used in the Business and maintained by or on behalf of the Seller, the Selling Affiliates or members of the Company Group, whether or not in electronic form.

"**Business Employee**" means, as of the applicable time, (a) each employee of the Seller and its Affiliates who is both (i) classified by the Seller and its Affiliates as regularly scheduled to spend more than 50% of his or her working time in support of the Business and (ii) listed in <u>Schedule 1.1(d)</u> of the Disclosure Schedules, (b) each employee of the Seller and its Affiliates who is listed in <u>Schedule 1.1(e)</u> of the Disclosure Schedules, and (c) and each employee hired or transferred into the Business in

------

accordance with <u>Section 5.1(b)</u> between the date of this Agreement and the Closing, including in all cases any employee that is providing services to Seller and its Affiliates via any PEO Agreement.

"**Business Employee Plan**" means an Employee Plan (a) that is sponsored, maintained or contributed to, or required to be sponsored, maintained or contributed to, by the Seller or any of its Affiliates for the benefit of any of the Business Employees or their dependents or (b) that is a Transferred Subsidiary Plan.

"**Business Intellectual Property**" means the Transferred Intellectual Property, the Intellectual Property in the Transferred Know-How, the Japan Trademarks and the Licensed Intellectual Property.

"**Buyer Designee**" means, with respect to the Company Transferred Interests, any direct or indirect wholly owned Subsidiary of the Buyer designated by the Buyer prior to the Closing pursuant to, and in accordance with, <u>Section 10.12</u> hereof to accept and acquire such Company Transferred Interests.

"**Buyer Fundamental Representations**" means the representations and warranties of the Buyer set forth in <u>Section 4.1</u> (Organization), <u>Section 4.2</u> (Authority) and <u>Section 4.5</u> (Brokers).

"**Buyer Material Adverse Effect**" means any event, change, occurrence or effect that would or would reasonably be expected to prevent, materially delay or materially impede (a) the performance by the Buyer of its obligations under this Agreement or the Ancillary Agreements to which it will be a party or (b) the consummation by the Buyer of the transactions contemplated hereby or thereby.

"**Buyer Parent**" means Suzano S.A.

"**Buyer's Share**" means, a fraction, (a) the numerator of which shall be the total number of Company Interests (on an as-converted basis) then beneficially owned by the Buyer and its Affiliates (excluding the Company Group) and (b) the denominator of which shall be the total number of issued and outstanding Company Interests (on an as-converted basis).

"**Calculation Time**" means 12:01 a.m. local time in each applicable jurisdiction on the Closing Date.

"**Cash**" means, as at a specified time, the aggregate amount of all cash, cash equivalents, checks, money orders, investment accounts, certificates of deposit, any uncleared checks, drafts or wire transfers deposited in the account of the Company Group, freely tradeable marketable securities and short-term instruments held by the Company Group, including all outstanding security, customer or other deposits, in each case, to the extent convertible into cash within thirty (30) days after the Closing Date but excluding (a) any Restricted Cash, (b) any outstanding checks, drafts or wire transfers issued by a member of the Company Group, (c) outbound transaction amounts, in the case of (a) to (c), determined in accordance with the Applicable Accounting Principles, and (d) any cash held by a member of the Company Group for the purpose of satisfying a Tax liability for which Seller is responsible pursuant to <u>Section 6.1(b)</u> or <u>Section 6.3(b)</u> (whether advanced under a Recoverable VAT Loan or otherwise). Notwithstanding the foregoing, "Cash" does not include any amounts included in the calculation of Asset Jurisdiction Net Working Capital or Transferred Subsidiary Net Working Capital.

"**Closing Purchase Price**" means (a) the Base Purchase Price, <u>plus</u> (b) 51% <u>multiplied by</u> the Closing Cash, <u>plus</u> (c) 51% <u>multiplied by</u> the Closing Asset Jurisdiction Net Working Capital Overage, if any, <u>minus</u> (d) 51% <u>multiplied by</u> the Closing Asset Jurisdiction Net Working Capital Underage, if any, <u>plus</u> (e) 51% <u>multiplied by</u> the Closing Transferred Subsidiary Net Working Capital Overage, if any, <u>minus</u> (f) 51% <u>multiplied by</u> the Closing Transferred Subsidiary Net Working Capital Underage, if any, <u>minus</u> (g) 51% <u>multiplied by</u> the Closing Indebtedness, <u>minus</u> (h) the Closing Seller Transaction Expenses plus (i) the Closing Specified Amount, plus (j) 51% <u>multiplied by</u> the Closing Debt

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Financing Expenses, in the case of each of <u>clauses (b)</u> through <u>(j)</u>, as finally determined pursuant to <u>Section 2.10</u>.

"**Co-Existence Agreement**" means the co-existence agreement substantially in the form attached as <u>Exhibit A</u> hereto.

"**Code**" means the U.S. Internal Revenue Code of 1986.

"**Comingled Contracts**" means the Contracts (a) set forth in <u>Schedule 5.13</u> of the Disclosure Schedules and (b) which involve both (i) the operations and the conduct of (1) the Business or (2) any member of the Company Group and (ii) the operations and the conduct of the Excluded Business; <u>provided</u> that in no event shall the Comingled Contracts include (x) Contracts with respect to commercially available software (including software-as-a-service Contracts), (y) Contracts which the full benefits of which are delivered to any member of the Company Group under any Ancillary Agreement (including the Transition Services Agreement or the Transitional Supply Agreement), including Contracts with respect to general corporate or shared services provided to, or in support of, the Business and that are provided to both the Business and other businesses of the Seller and its Affiliates, or (z) Contracts with respect to professional services that benefit both (1) the Seller and (2) any member of the Company Group.

"**Common Shares**" means the single class of common shares in the capital of the Company.

"**Company Group**" means the Company, each of its Subsidiaries, each of the Transferred Subsidiaries and each of the Subsidiaries of the Transferred Subsidiaries.

"**Company Group Equity Interests**" means all the issued and outstanding Equity Interests of each member of the Company Group (other than the Company Transferred Interests and the Purchased Shares).

"**Company Interests**" means all of the issued and outstanding Equity Interests of the Company.

"**Company Transfer**" means, collectively, the transfer to the Company Group of the Transferred Assets in accordance with <u>Section 2.1</u> and the assumption by the Company Group of the Assumed Liabilities in accordance with <u>Section 2.3</u>.

"**Company Transfer Agreements**" means the documentation to effect the Company Transfer, including each of the Local Share Transfer Agreements, the Local Asset Transfer Agreements and the Put and Call Option Agreement.

"**Company Transferred Interests**" means all of the issued and outstanding Common Shares of the Company.

"**Contract**" means, with respect to any Person, contract, lease, sublease, deed, deed of trust, license, sublicense, purchase or sale order, arrangement, option, plan, mortgage, note, undertaking, indenture, guaranty, joint venture, instrument or other agreement, commitment or legally binding arrangement to which or by which such Person is a Party or otherwise subject or bound.

"**Control**", including, with correlative meaning, the terms "controlled by" and "under common control with", means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, as general partner or managing member, by Contract or otherwise.

------

"**Crecia License Agreement**" means that certain License Agreement, dated March 31, 2021, by and between Kimberly-Clark Commercial Inc. and Nippon Paper Crecia Co. Ltd.

"**Debt Financing Expenses**" means any reasonable, documented out-of-pocket costs and expenses incurred by the Company, the Seller or its Affiliates prior to Closing, in connection with the Debt Financing, including any original issue discount incurred by the Company.

"**Debt Financing Expenses of Buyer**" means any reasonable, documented out-of-pocket costs and expenses, incurred by the Buyer or its Affiliates prior to Closing, in connection with the Debt Financing, including any original issue discount incurred by the Company.

"**Delayed Transfer Employee Charges**" means the actual salary, bonus and allowances and benefits and other employment costs required to be paid as a matter of Law or contract (including social security, national insurance or similar contributions) paid to or provided in respect of each Delayed Transfer Employee by the Seller or any of its Affiliates for the period beginning at the Closing and ending on the Delayed Employee Transfer Date.

"**Divestiture Compensation Agreement**" means each "Divestiture Compensation Agreement," by and between the Seller and any Business Employee, in effect on the date hereof, including any provisions regarding long-term assignment and tax equalization incorporated therein.

"**Employee Plans**" means all "employee benefit plans" within the meaning of Section 3(3) of ERISA (whether or not subject to ERISA) and all other compensation and benefit plans, Contracts, programs, policies, agreements and arrangements (other than routine administrative procedures), including all pension, profit-sharing, employment, individual consulting, bonus, stock bonus, stock option, other cash or equity-based incentive, deferred compensation, retention, change in control, severance pay, termination indemnity, gratuity, jubilee, vacation, paid time off, and medical and life insurance plans, other than any such plan, Contract, program, policy, agreement or arrangement maintained or to which contributions are required by any Governmental Authority.

"**Encumbrance**" means any charge, claim, mortgage, lien, option, pledge, easement, right of way, encumbrance, security interest or other restriction of any kind (not including any license of Intellectual Property). 

"**Environmental Law**" means any Law of any Governmental Authority (a) relating to pollution, the protection of the environment, endangered or threatened species or natural resources, public health and safety (solely to the extent relating to the exposure to Hazardous Materials), worker health and safety (solely to the extent relating to the exposure to Hazardous Materials) or (b) concerning the presence of Hazardous Materials, including any exposure to, or the generation, use, production, manufacture, handling, transportation, treatment, storage, disposal, distribution, labeling, discharge, remediation, Release, threatened Release or cleanup of Hazardous Materials.

"**Environmental Permits**" means all Permits required pursuant to any Environmental Law.

"**Equity Interest**" means, with respect to any Person, any and all shares, interests or other equivalents (however designated and whether voting or nonvoting) of such Person's capital stock or other equity interests (including partnership or membership interests in a partnership or limited liability company or any other interest or participation that confers on a Person the right to receive a share of the profits and losses, or distributions of assets, of the issuing Person) and any equity or debt securities convertible into or exchangeable or exercisable for such Person's capital stock or other equity interests (including any options, warrants, calls, subscriptions or other purchaser or redemption rights).

"**ERISA**" means the Employee Retirement Income Security Act of 1974.

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"**Estimated Purchase Price**" means (a) the Base Purchase Price, <u>plus</u> (b) 51% <u>multiplied by</u> the Estimated Closing Cash, <u>plus</u> (c) 51% <u>multiplied by</u> the Estimated Asset Jurisdiction Net Working Capital Overage, if any, <u>minus</u> (d) 51% <u>multiplied by</u> the Estimated Asset Jurisdiction Net Working Capital Underage, if any, <u>plus</u> (e) 51% <u>multiplied by</u> the Estimated Transferred Subsidiary Net Working Capital Overage, if any, <u>minus</u> (f) 51% <u>multiplied by</u> the Estimated Transferred Subsidiary Net Working Capital Underage, if any, <u>minus</u> (g) 51% <u>multiplied by</u> the Estimated Closing Indebtedness, <u>minus</u> (h) the Estimated Seller Transaction Expenses, <u>plus</u> (i) the Estimated Specified Amount, <u>plus</u> (j) 51% <u>multiplied</u> by the Estimated Debt Financing Expenses.

"**EU Foreign Subsidies Regulation**" means Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign subsidies distorting the internal market.

"**Excluded Affiliates**" means any Affiliate of the Seller operating exclusively outside of the ABU Geographic Regions.

"**Excluded Business**" means, collectively, (a) the Seller's interest in any of the Excluded Affiliates, (b) the IFP Segment in Brazil and Bolivia, (c) the non-woven fabrics business, (d) the personal protective equipment business, (e) the IFP Segment in Japan relating to the Crecia License Agreement, and (f) any other businesses owned or operated by the Seller or any of its Affiliates other than the Business.

"**Excluded Taxes**" means (without duplication): (a) Taxes reported on a Seller Consolidated Return (but, without prejudice to clause (d) of this definition, excluding Taxes which are attributable to any member of the Company Group and not to the Seller or any of its Affiliates (excluding any member of the Company Group) that are reported on a Seller Consolidated Return which pertains to a taxable period beginning after the Closing Date (other than any such Taxes which would not have arisen but for a failure by the Seller to comply with its obligations under <u>Section 6.9</u>)); (b) Taxes imposed with respect to the Excluded Assets (including Taxes imposed in connection with a transfer thereof) or the Excluded Business and any Taxes arising from any transactions contemplated by <u>Section 5.11(b)</u>; (c) (i) Taxes imposed on or with respect to the Transferred Assets or the Business and (ii) Taxes (including, for the avoidance of doubt, any Pillar Two Tax) imposed upon any member of the Company Group, in the case of each of <u>clauses (c)(i)</u> and <u>(c)(ii)</u>, for any Tax period (or portion thereof) ending on or prior to the Closing Date (determined in accordance with <u>Section 6.1(c</u>) in the case of any Straddle Period), except to the extent any such Taxes are paid by the Seller pursuant to <u>Section 6.1(b)</u>; (d) Taxes of any Person (other than a member of the Company Group) imposed on any member of the Company Group as a transferee, successor, by contract or pursuant to any applicable Law, which Taxes relate to an event or transaction occurring before the Closing; (e) Taxes imposed in a taxable period (or the portion thereof) that begins after the Closing Date as the result of any member of the Company Group being required to include any item of income in, or exclude any item of deduction from, taxable income for any such taxable period as a result of any (i) change in method of accounting for a taxable period ending on or prior to the Closing Date made prior to the Closing, (ii) use of an improper method of accounting for a taxable period ending on or prior to the Closing Date, (iii) final determination by any Taxing Authority in settlement of any audit, examination, or other proceeding entered into prior to the Closing, (iv) installment sale or open transaction disposition made prior to the Closing, or (v) deferred revenue or prepaid amount received prior to the Calculation Time solely to the extent such amounts are not included as an item of Indebtedness; (f) Taxes arising out of or resulting directly from (or Taxes arising from a deemed disposition of assets or liabilities that would not have arisen but for) the Reorganization (including, for the avoidance of doubt, the Company Transfer, any transactions contemplated by <u>Section 5.19</u> and any transfers contemplated by <u>Section 5.22(a)</u> or <u>Section 5.22(d)</u>); (g) Pillar Two Tax imposed on any member of the Company Group, or any Affiliate of the Purchaser, if and to the extent such Pillar Two Tax is imposed as a result of the recalculation of the Effective Tax Rate and/or Top-up Tax (in each case, as defined in the GloBe Rules) for any Pre-Closing Tax Period pursuant to an ETR Adjustment Article (as defined in the GloBe Rules) or an equivalent provision of any GloBe Rules Implementing Legislation (as contemplated by Article 5.4.1 of the GloBe Rules) due to an error by any member of the Company Group

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or any Affiliate of the Seller in calculating the Pillar Two Tax liability in respect of the relevant Pre-Closing Tax Period (including where such error arises as a result of the information used to calculate such Pillar Two Tax being discovered to have been incorrect); (h) Taxes incurred by any member of the Company Group as a result of the UK Pension Release; and (i) Transfer Taxes Clawback Amounts. Notwithstanding the foregoing, Excluded Taxes shall not include (A) Transfer Taxes or VAT imposed in connection with the transactions contemplated by this Agreement (which are governed by <u>Section 6.3</u>) or (B) Pillar Two Taxes if and to the extent they would not have been incurred or increased but for the relevant member of the Company Group becoming a constituent entity of the Buyer or any of its Affiliates (excluding the Company Group).

"**Export Control Laws**" means all Laws relating to the import, export, re-export, or transfer of goods, services, or technologies administered or enforced by the United States, including the United States Department of Commerce, or any foreign equivalent.

"**Foreign Investment Laws**" means any applicable Law, including any state, national or multi-jurisdictional applicable Laws, that are designed or intended to prohibit, restrict or regulate actions by foreigners to acquire interests in domestic equities, securities, entities, assets, land or interests, or otherwise to screen investments in sensitive activities from a national security perspective.

"**Fraud**" means, with respect to any Person, actual and intentional fraud as determined under Delaware common law (as opposed to any fraud claim based on constructive knowledge, negligent misrepresentation or omission or recklessness) in respect of the making of the representations and warranties expressly set forth in <u>Article III</u>, <u>Article IV</u> or any certificate delivered in accordance with <u>Section 7.2(c)</u> or <u>Section 7.3(c)</u>, as applicable, with intent to deceive another party, or to induce that party to enter into this Agreement, and requires: (a) a false representation of a material fact set forth in <u>Article III</u>, <u>Article IV</u> or such certificate delivered in accordance with <u>Section 7.2(c)</u> or <u>Section 7.3(c)</u>; (b) knowledge by the party making such representation that such representation is false; (c) an intention by such party to induce the other party to whom such representation is made to act or refrain from acting in reliance upon it; (d) causing such other party, in justifiable reliance upon such false representation and with ignorance to the falsity of such representation, to take or refrain from taking action; and (e) causing such other party to suffer actual damage by reason of such reliance. For the avoidance of doubt, "Fraud" shall not include any constructive fraud, negligent misrepresentation or omission or any form of fraud premised on recklessness or negligence.

 "**GAAP**" means United States generally accepted accounting principles, as in effect from time to time.

"**Governance Agreement**" means the Joint Venture Agreement, by and among the Seller and the wholly owned Subsidiaries of the Seller party thereto, Buyer Parent and its wholly owned Subsidiary party thereto and the Company, substantially in the form attached hereto as <u>Exhibit B</u>.

"**Governmental Authority**" means any United States or non-United States national, supranational, federal, state or local governmental, quasi-governmental, regulatory, self-regulatory or administrative authority, agency, division or commission or any judicial or arbitral body of competent jurisdiction.

"**Hazardous Material**" means any hazardous or toxic material, substance or waste that is listed under or regulated, categorized or defined by Environmental Law due to their hazardous, toxic, dangerous or deleterious properties or characteristics or as hazardous, toxic, radioactive, a pollutant or a contaminant, or words of similar meaning and regulatory effect, including petroleum or petroleum by-products, radioactive materials, asbestos and asbestos-containing materials, polychlorinated biphenyls and per- and polyfluoroalkyl substances (so-called PFAS substances).

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"**IFP Segment**" means the business segment described as "International Family Care and Professional" in the Seller's Form 10-K for the fiscal year ended December 31, 2024.

"**Inactive Employee**" means any Business Employee who is not actively at work and is on an approved leave of absence as of immediately prior to the Closing Date.

 "**Income Taxes**" means any Taxes measured by, or imposed upon, net income, profits or gains (including any franchise Taxes imposed in lieu thereof and branch profits tax) whether imposed directly or through withholding.

"**Indebtedness**" means, as at a specified time, without duplication, (a) the principal amount, <u>plus</u> any related accrued and unpaid interest, fees and prepayment premiums or other penalties or "breakage" costs, of (i) any indebtedness for borrowed money of any member of the Company Group and (ii) any indebtedness of any member of the Company Group evidenced by any note, bond, debenture or other debt security, (b) any liability of any obligations of any member of the Company Group under finance leases in accordance with the Applicable Accounting Principles (excluding for the avoidance of doubt any operating leases), (c) any amounts owing by any member of the Company Group for the payment of any deferred purchase price of assets, personal property or services ((x) including earn-outs, milestone or similar payments, contingent or otherwise (in each case, to be valued at the maximum amount reasonably expected to be payable under the applicable Contract for such obligation) but (y) excluding trade payables), (d) any obligations of any member of the Company Group under performance bonds, standby letters of credit or similar facilities, in each case only to the extent called or drawn, as applicable, (e) any defined benefit pension or defined benefit pension-like liabilities and unfunded or underfunded post-retirement welfare liabilities under any Transferred Subsidiary Plan or Assumed Plan (in each case, as calculated in accordance with the Applicable Accounting Principles), and (f) accrued but unpaid base salary and wages and (g) the employer portion of any payroll, social security, unemployment or other Taxes with respect to any payment or settlement of any equity or equity-based awards of any of the Seller and its Affiliates (other than the Company Group). Notwithstanding the foregoing, "Indebtedness" does not include (A) any operating lease obligations, (B) obligations under any interest rate, currency or other hedging agreement (other than breakage costs payable upon termination thereof on the Closing Date), (C) the Asset Jurisdiction Inventory Amount, (D) any liability under the UK Pension Plan, (E) the Transferred Subsidiary Inventory Amount, (F) trade payables and accrued expenses of the Business arising in the Ordinary Course of Business included in Net Working Capital or (G) any Taxes (other than social security, unemployment or other Taxes described in clause (f) of this definition) or Recoverable VAT Loans; <u>provided</u> that, for the avoidance of doubt, Indebtedness shall exclude any amounts otherwise taken into account in the calculation of Asset Jurisdiction Net Working Capital, the Transferred Subsidiary Net Working Capital Seller Transaction Expenses and Debt Financing Expenses.

"**Intellectual Property**" means: (a) trade names, trademarks and service marks, symbols, logos, designs, commercial slogans, trade dress and similar rights, and applications to register any of the foregoing, and all goodwill associated with any of the foregoing; (b) patents, patent applications, and all continuations, continuations-in-part, divisions, extensions, substitutions, reissues, re-examinations and renewals thereof; (c) copyrights (whether registered or unregistered) and applications for registration; (d) internet domain names; (e) rights in Proprietary Information (including inventions, whether or not patentable); and (f) rights in Software, data, databases and compilations of data.

"**Intellectual Property Ancillary Agreements**" means: the Trademark License Agreement, the Grant-Back Trademark License Agreement, the Co-Existence Agreement and the Know-How and Patent License Agreement.

"**IP Assignment Agreement**" means an assignment agreement substantially in the form attached as <u>Exhibit C</u> hereto.

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"**IT Systems**" means all information technology and computer systems, including software, computer hardware, electronic data processing and information and communications systems relating to the generation, transmission, storage, maintenance or processing of data and information that are owned, controlled, or used by the Seller or the Selling Affiliates with respect to the Business or any member of the Company Group.

"**Japan Assignment Date**" means the day immediately following the expiration or termination of the Crecia License Agreement.

"**Japan Trademarks**" means the Trademark applications and registrations owned by the Seller or any of its Affiliates set forth on <u>Section 2.13</u> of the Disclosure Schedules.

"**JV Holdco"** shall mean Kimberly-Clark IFP Holdings B.V., an indirect, wholly owned Subsidiary of the Seller.

"**Key Reorganization Steps**" means those certain steps set forth on <u>Schedule 7.1(d)</u> of the Disclosure Schedules.

"**Know-How and Patent License Agreement**" means the license agreement substantially in the form(s) attached as <u>Exhibit D</u> hereto.

"**Knowledge**" with respect to the Seller, means the actual (but not constructive or imputed) knowledge of any of the Persons listed in <u>Schedule 1.1(f)</u> of the Disclosure Schedules.

"**Law**" means any statute, law, ordinance, regulation, rule, code, injunction, judgment, decree or order of any Governmental Authority.

"**Leased Real Property**" means, collectively, all leasehold or subleasehold estates to use or occupy any land, buildings, structures, improvements, fixtures or other interest in real property held by the Transferred Subsidiaries, and the real property that is the subject of the Transferred Leases.

"**Leases**" means all leases, subleases, licenses, concessions and other agreements, including amendments, guarantees or supplements thereto (written or oral) pursuant to which any member of the Company Group (or Selling Affiliate under the Transferred Leases) hold or have a right to any Leased Real Property, including the right to all security deposits and other amounts and instruments deposited by or on behalf of any member of the Company Group (or Selling Affiliate) thereunder.

"**Liability**" means any debt, liability or obligation of any kind or nature, whether known or unknown, express or implied, direct or indirect, absolute, accrued, contingent or otherwise, whether due or to become due, asserted or unasserted, matured or unmatured, liquidated or unliquidated, on- or off-balance sheet, determined, determinable or otherwise, whenever or however arising, including whether arising out of or under any Contract, Law or Action.

"**Licensed Intellectual Property**" means any Intellectual Property licensed or sublicensed to the Company under the Trademark License Agreement and the Know-How and Patent License Agreement.

"**Local Asset Transfer Agreement**" means a local asset transfer agreement substantially in the form attached as <u>Exhibit E</u> hereto.

"**Local Share Transfer Agreement**" means a local share transfer agreement substantially in the form attached as <u>Exhibit F</u> hereto.

"**Lookback Date**" means the date that is three (3) years prior to the date hereof.

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"**Losses**" means any losses, liabilities, damages, expenses, Actions, orders, settlements, deficiencies, penalties and interest, including expenses in enforcing a Party's rights hereunder together with all reasonable attorneys' fees and other reasonable out-of-pocket disbursements incurred in connection with such Party's investigation, defense or settlement thereof, but shall not include punitive damages unless such punitive damages are part of any judgement or award against an Indemnified Party to be paid to a Third Party in respect of a Third Party Claim.

"**Material Adverse Effect**" means any event, change, occurrence or effect that, individually or taken together with any other event, change, occurrence or effect, (a) has had, or would reasonably be expected to have, a material adverse effect on the business, financial condition or results of operations of the Business, taken as a whole, or (b) would reasonably be expected to prevent, materially delay or materially impede the performance by the Seller or the Company of its obligations under this Agreement, the Company Transfer Agreements or the Ancillary Agreements to which it is a party or the consummation of the transactions contemplated hereby or thereby; <u>provided</u>, <u>however</u>, that in respect of <u>clause (a)</u> only, no event, change, occurrence or effect directly or indirectly arising out of, attributable to or resulting from any of the following, alone or in combination, shall be deemed to constitute, or be taken into account in determining whether there has been or would reasonably be expected to be, a Material Adverse Effect: (i) any changes in general economic or business conditions or in the financial, debt, banking, capital, credit or securities markets, or in interest or exchange rates, in each case, in the United States or elsewhere in the world; (ii) any changes generally affecting the industry in which the Business operates; (iii) any actions required under this Agreement to obtain any approval or authorization under applicable Antitrust Laws or Foreign Investment Laws for the consummation of the transactions contemplated hereby; (iv) any adoption, implementation, modification, repeal or other changes in any Laws applicable to the Business, including adoption of or changes in any Public Health Measures or any changes in GAAP, or in binding interpretations of any of the foregoing, in each case, after the date hereof; (v) any failure by the Business to meet internal or published projections, forecasts or revenue or earnings predictions, in and of itself (<u>provided</u> that (A) the events, changes, occurrences or effects giving rise to or contributing to such failure that are not otherwise excluded from this definition of "Material Adverse Effect" may be taken into account in determining whether there has been, or would reasonably be expected to be, a Material Adverse Effect and (B) neither the Seller nor any of its Affiliates or Representatives is making any representation or warranty to any such internal or published projections, forecasts or revenue or earnings predictions); (vi) political, geopolitical, social or regulatory conditions, including any outbreak, continuation or escalation of any military conflict, declared or undeclared war, armed hostilities, civil unrest, public demonstrations, acts of sabotage, acts of foreign or domestic terrorism, malicious cyber-enabled activities (including hacking, ransomware and other unauthorized cyber intrusions that seek to compromise the confidentiality, integrity or availability of computer or communication systems or information therein), or governmental shutdown or slowdown, or any escalation or worsening of any such conditions; (vii) any natural or manmade disasters or calamities, weather conditions including hurricanes, floods, tornados, tsunamis, earthquakes and wild fires, cyber outages, or other force majeure events, or any escalation or worsening of such conditions; (viii) any epidemic, pandemic or outbreak of disease, or any escalation or worsening of such conditions or any other regional, national or international calamity, crisis or emergency, whether or not caused by any Person; (ix) the announcement or pendency of this Agreement and the transactions contemplated hereby, including the initiation of litigation by any Person with respect to this Agreement or the transactions contemplated hereby, and including any termination of, reduction in or similar negative impact on relationships, contractual or otherwise, with any customers, suppliers, distributors partners or employees of the Seller or the Business due to the announcement and performance of this Agreement or the identity of the Parties, or the performance of this Agreement and the transactions contemplated hereby (<u>provided</u> that this <u>clause (ix)</u> shall not apply with respect to <u>Section 3.3(a)</u> or with respect to the condition to Closing contained in <u>Section 7.3(a</u>), to the extent it relates to <u>Section 3.3(a)</u>); (x) any actions taken by the Seller or any Selling Affiliate (solely to the extent related to the Business) that are expressly required by this Agreement (other than any action taken or not taken pursuant to <u>Section 5.1(a)</u>); (xi) any actions taken (or omitted to be taken) by the Seller or the Company at the written request of the Buyer; or (xii) any Excluded Asset or Excluded Liability only to the extent that any such direct or indirect event, change,

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occurrence or effect affects the Excluded Business; <u>provided</u> that, in the case of <u>clauses (i)</u>, <u>(ii)</u>, <u>(iii)</u>, <u>(vi)</u>, <u>(vii)</u> and <u>(viii)</u>, such event, change, occurrence or effect may be deemed to constitute, or be taken into account in determining whether there has been, or would reasonably be expected to be, a Material Adverse Effect to the extent the impact of such event, change, occurrence or effect is disproportionately adverse to the Business, taken as a whole, as compared to other Persons companies operating in the same industries and geographical regions in which the Business operates (<u>provided</u>, <u>further</u>, that in such event, only the incremental disproportionate adverse impact shall be taken into account when determining whether there has been, or would reasonably be expected to be, a "Material Adverse Effect").

"**Mill Jurisdiction**" means each jurisdiction in which the Business operates a mill, including Australia, Colombia, El Salvador, France, Germany, Israel, Italy, Malaysia, Peru, South Africa, Spain, Taiwan, Thailand and the United Kingdom.

"**Minimum Cash**" means the aggregate amount of cash equal to $350,000,000.

"**Non-ARD Business Employee**" means each Business Employee who, as of immediately prior to the Closing, is not a Transferred Subsidiary Business Employee or an ARD Business Employee.

"**Non-U.S. IP**" means the Business Intellectual Property (including legal or economic rights with respect thereto) that is held by the Seller or its Affiliates for "foreign use" (within the meaning of Treasury Regulations Section 1.250(b)-4(b)) as of immediately prior to the Closing.

"**Notarial Deed of Sale and Transfer**" means the notarial deed of sale and transfer among the Seller (or any of its Affiliates), the Buyer (or the Buyer Designee) and the Company with respect to the sale and transfer of the Company Transferred Interests, pursuant to which the Company Transferred Interests Purchase is effected.

"**Notice of Disagreement**" means a written notice of a good-faith disagreement delivered by a Party in accordance with this Agreement.

"**Open Source Software**" means any Software subject to licenses that are defined as OSI (Open Source Initiative) licenses as listed on the site www.opensource.org as of the date of this Agreement or any substantially similar licenses.

"**Ordinary Course of Business**" means, with respect to any Person, the conduct of the business of such Person, consistent with the customary customs, practices and procedures of such business.

"**Organizational Documents**" means, with respect to any Person at any time, in each case as amended, modified and supplemented at that time, (a) the articles or certificate of formation, incorporation or organization (or the equivalent organizational or constituent documents) of that Person, (b) the articles of association, bylaws, limited liability company agreement, limited partnership agreement, joint venture agreement or the equivalent governing documents of that Person and (c) each document or Contract setting forth the designation, amount or relative rights, limitations or preferences of any class or series of that Person's Equity Interests.

"Owned Real Property" means, collectively, all land, together with all buildings, structures, improvements and fixtures located thereon, and all easements and other rights and interests appurtenant thereto, owned by the Transferred Subsidiaries, and the Transferred Owned Real Property.

"**Pegasus Operational Adjustment**" shall have the meaning set forth in <u>Schedule 1.1(g)</u> of the Disclosure Schedules.

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"**Permit**" means any consent, license, franchise, permit, waiver, approval, authorization, certificate, registration, concession, exemption or other similar authorization issued or otherwise granted by, obtained from or made with any Governmental Authority.

"**Person**" means an individual, corporation, partnership, limited liability company, limited liability partnership, syndicate, person, trust, association, organization or other entity, including any Governmental Authority, and including any successor, by merger or otherwise, of any of the foregoing.

"**Personal Information**" means any information used in the Business and maintained by or on behalf of the Seller, the Selling Affiliates or any member of the Company Group that relates to an identified or identifiable individual or household or is otherwise defined as "personal information," "personal data," or other equivalent term under applicable Law.

"**Pillar Two Rules**" means (a) the Organization for Economic Co-Operation and Development's ("**OECD**") model rules in respect of Pillar Two of the OECD's BEPS 2.0 project and any associated rules or guidance issued by the OECD (the "**GloBe Rules**") and (b) any Law or regulation of any jurisdiction which implements, or facilitates the implementation of, the GloBe Rules in that or any other jurisdiction ("**GloBe Rules Implementing Legislation**").

"**Pillar Two Tax**" means any tax charged in accordance with the Pillar Two Rules, including (for the avoidance of doubt) any Qualified Domestic Minimum Top-up Tax, and any tax charged pursuant to the Income Inclusion Rule and the Undertaxed Profits Rule as defined in the Pillar Two Rules as implemented under domestic legislation whether in the Netherlands or elsewhere.

"**Potentially Delayed Jurisdictions**" means those certain jurisdictions set forth on <u>Schedule 1.1(h)</u> of the Disclosure Schedules. 

"**Pre-Closing Tax Period**" means any Tax period ending on or before the Closing Date and the portion of any Straddle Period ending on (and including) the Closing Date.

"**Proprietary Information**" means trade secrets and confidential information, including (a) information relating to the financial or trading position, or the assets, customers, suppliers, employees, operations, processes, products, plans, or market opportunities, (b) know-how, trade secrets, technical

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information, and source code, and (c) findings, data and analysis derived from any information in clause <u>(a)</u> or <u>(b)</u>.

"**Public Health Measures**" means any closures, "shelter-in-place", "stay at home", social distancing, shut down, closure, curfew or other similar restrictions or any other Laws, directives, guidelines or recommendations issued by any Governmental Authority, the Centers for Disease Control and Prevention or the World Health Organization in connection with any epidemic, pandemic or similar outbreak of disease, or in connection with or in response to any other public health conditions.

"**Purchase Price**" means the Estimated Purchase Price, as it may be adjusted in accordance with <u>Section 2.10</u>.

"**Put and Call Option Agreement**" means the put and call option agreement pursuant to which Kimberly-Clark IFP Holdings B.V. shall grant the Company an option to require Kimberly-Clark IFP Holdings B.V. to transfer all of the issued and outstanding Equity Interests of the UK Transferred Subsidiaries to the Company by way of a capital contribution to the Company by Kimberly-Clark IFP Holdings B.V., and the Company shall grant Kimberly-Clark IFP Holdings B.V. an option to require the Company to acquire all of the issued and outstanding Equity Interests of the UK Transferred Subsidiaries by way of a capital contribution to the Company by Kimberly-Clark IFP Holdings B.V., substantially in the form attached as <u>Exhibit G</u> hereto.

"**R&W Insurance Policy**" means that certain insurance policy, to be issued by the R&W Insurer, a copy of which has been made available to the Seller, and to be bound as provided in <u>Section 5.10</u> in the name and for the benefit of the Buyer.

"**R&W Insurer**" means each of the insurers named in the R&W Insurance Policy.

"**Recoverable VAT**" means any VAT paid by a member of the Company Group (or by a group, consolidation or fiscal unity with respect to which a member of the Company Group is a member for VAT purposes, but not the Seller or any of its Affiliates) that is recoverable by a member of the Company Group (or by a group, consolidation or fiscal unity with respect to which a member of the Company Group is a member for VAT purposes, but not the Seller or any of its Affiliates) by way of a cash tax refund from the relevant Taxing Authority or the realization of a cash tax saving.

"**Related Parties**" means, with respect to a Person, such Person's Affiliates and its and their respective current and former direct and indirect equityholders, members, partners (limited and general), Controlling Persons, Representatives and the respective successors and assigns of each of the foregoing.

"**Release**" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the environment, including any soil, sediment, subsurface strata, surface water or groundwater.

"**Representatives**" means, with respect to any Person, the officers, directors, managers, principals, employees, agents, auditors, advisors, bankers and other representatives of such Person.

"**Restricted Cash**" means any cash or cash equivalents to the extent not freely usable by the Company Group because such cash or cash equivalents are subject to Taxes, restrictions or limitations on use or distribution by applicable Law or Contract, including (a) restrictions on dividends and repatriations to the Company and (b) amounts held in escrow or in reserve pursuant to any letter of credit, surety bond or otherwise as collateral and amounts that are held as a deposit for the benefit of a third party.

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"**Return**" including, with correlative meaning, the term "**Returns**", means any return, declaration, report, statement, information statement or similar document filed or required to be filed with any Taxing Authority with respect to Taxes, including any attachment thereto or amendment thereof.

"**Sanctioned Person**" means any Person with whom dealings are prohibited by Sanctions Laws, including: (a) any Person designated on any applicable Sanctions Laws-related list of blocked persons; (b) a Governmental Authority of a comprehensively sanctioned country (currently, Cuba, Iran, N. Korea, Syria, and the Crimea region and so-called Donetsk People's Republic and Luhansk People's Republic in Ukraine); (c) any Person that is, in the aggregate, 50% or greater owned or Controlled by the foregoing; (d) any Person resident in or operating from a comprehensively sanctioned country; or (e) any Person otherwise targeted under any Sanctions Laws.

"**Sanctions Laws**" means all Laws relating to economic sanctions, including the Laws administered or enforced by the United States, including the U.S. Treasury Department's Office of Foreign Assets Control, the U.S. State Department, the U.S. Commerce Department or any foreign equivalent.

"**Seller Fundamental Representations**" means the representations and warranties of the Seller set forth in <u>Section 3.1</u> (Organization and Qualification), <u>Section 3.2</u> (Authority), <u>Section 3.3(a)(i)</u> (No Conflict with Organizational Documents), <u>Section 3.4(c)</u> (Company Interests and Purchased Shares) and <u>Section 3.19</u> (Brokers).

"**Seller Occurrence-Based Insurance Policies**" means all occurrence-based liability insurance policies (excluding Employee Plans and any captive or self-insurance programs) issued by unaffiliated third parties that (a) are in effect immediately prior to the Closing, (b) are owned or held by or issued in favor of Seller or any of its Affiliates, and (c) cover the Business (or any part thereof) or any of the Transferred Assets (or any part thereof) or any Assumed Liability (or any part thereof).

"**Seller Transaction Expenses**" means, (a) to the extent not paid at or prior to the Closing, (i) the fees, costs and expenses (including any advisors, experts, consultants and legal, accounting and financial advisory expenses) incurred or owed by any member of the Company Group in connection with or related to the authorization, preparation, negotiation, execution and performance of this Agreement or any Ancillary Agreements or the transactions contemplated by this Agreement or any Ancillary Agreements or the sale process relating to the potential sale of the Business, (ii) all payments with respect to any severance payments, or any success, stay, transaction, retention, sale or change of control bonus or other similar payments or bonuses which become due or are otherwise required to be paid by any member of the Company Group to any current or former individual service provider of any member of the Company Group or any other current or former Business Employee solely as a result of the transactions contemplated by this Agreement, the Company Transfer Agreements or the Ancillary Agreements (including any such payments or bonuses due or otherwise required to be paid pursuant to the Divestiture Compensation Agreements), including the employer portion of any payroll, social security, unemployment or other Taxes related thereto, which for the avoidance of doubt, shall not include any "double trigger" payments that may be triggered, either automatically or with the passage of time, upon a post-Closing termination of employment or by any action of, or at the direction of, the Buyer or any of its Affiliates (including any such "double trigger" payments that may be triggered pursuant to the Divestiture Compensation Agreements) and (iii) all third-party costs and expenses incurred by any member of the Company Group in connection with the Reorganization (other than costs and expenses expressly agreed in this Agreement to be paid by a member of the Company Group) and (b) 49% <u>multiplied</u> by Debt Financing Expenses of Buyer. Notwithstanding the foregoing, Seller Transaction Expenses shall exclude (A) Taxes (other than payroll, social security, unemployment or other Taxes described in <u>clause (a)(ii)</u> of this definition) and (B) any costs and expenses incurred in connection with the R&W Insurance Policy.

"**Selling Affiliate**" means any Affiliate of the Seller that owns or holds any right, title or interest in and to any Transferred Assets or that has any obligations or liabilities in respect of any Assumed Liabilities, excluding the Excluded Affiliates.

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"**Software**" means any and all (a) computer programs, including any and all software implementations of algorithms, models, and methodologies, whether in source code or object code, (b) databases and compilations, including any and all data and collections of data, whether machine readable or otherwise, and (c) all documentation, user manuals, and training materials, relating to any of the foregoing.

"**Specified Amount**" means $12,000,000, as such amount may be adjusted in accordance with Section 5.16(g).

"**Straddle Period**" means any Tax period that includes but does not end on the Closing Date.

"**Sublicensed Patents**" means the patents owned by third parties and sublicensed to the Company under the Know-How and Patent License Agreement.

"**Subsidiary**" means, with respect to any Person, any other Person of which at least 50% of the outstanding voting securities or other voting Equity Interests are owned or Controlled, directly or indirectly, by such first Person.

"**Tax**" or "**Taxes**" means (a) any non-U.S., U.S. federal, state or local net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, personal property (tangible and intangible), real property, goods and services, value added, transfer, franchise, profits, license, withholding, payroll, social security, employment, excise, severance, stamp, deed recording fee, occupation, premium, environmental or windfall profit tax, or other governmental fee, assessment or charge, in each case in the nature of a tax (including, for the avoidance of doubt, Pillar Two Tax), (b) any interest or any penalty, addition to tax or additional amount imposed by any Governmental Authority responsible for the imposition of any such tax described in the foregoing <u>clause (a)</u>, and (c) any Transfer Taxes Clawback Amount.

"**Taxing Authority**" means any Governmental Authority having sole jurisdiction to impose to any Tax.

"**Trademark License Agreement**" means the license agreement substantially in the form(s) attached as <u>Exhibit H</u> hereto.

"**Transfer Taxes**" means all transfer, documentary, capital duty, stamp duty, stamp duty reserve tax, stock transfer, deed recording fee, excise, and conveyance Taxes and other similar Taxes, duties, fees, or charges imposed by any Governmental Authority as a result of, or payable or collectible or incurred in connection with, the transactions contemplated by this Agreement (including the Reorganization), together with any interest and penalties thereon, but excluding any VAT, Income Taxes, Pillar Two Taxes and Transfer Taxes Clawback Amounts.

"**Transfer Taxes Clawback Amount**" means any amount of transfer, documentary, capital duty, stamp duty, stamp duty reserve tax, stock transfer, deed recording fee, excise, stamp duty land tax and conveyance taxes and other similar taxes, duties, fees, or charges imposed by any Governmental Authority or any amount in respect thereof, together with any interest and penalties thereon, which arise as a result of the withdrawal of a relief previously claimed or granted by a Taxing Authority (other than a relief claimed or granted by a Taxing Authority in respect of a Transfer Tax that would (save for such relief) have become payable (or necessary to pay in order to establish title to an asset) as a result of the Company Transfer) as a result of some or all of the transactions contemplated by this Agreement.

"**Transferred Subsidiaries**" means Kimberly-Clark IFP ANZ Pty. Limited, Kimberly-Clark Hygiene Products PVT Ltd., P.T. Kimberly-Clark Indonesia, S-K Corporation, Taiwan Scott Paper Corp.,

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Kimberly-Clark Thailand Ltd., Kimberly-Clark Manufacturing (Thailand) Ltd., Kimberly-Clark S.A.S., Kimberly-Clark S.R.L. and the UK Transferred Subsidiaries.

"**Transferred Subsidiary Business Employee**" means each Business Employee who, as of immediately prior to the Closing, is employed by a Transferred Subsidiary.

"**Transferred Subsidiary Inventory**" means, collectively, the Inventory of the Transferred Subsidiaries.

"**Transferred Subsidiary Inventory Amount**" means, at a specified time and without duplication, the value in U.S. dollars of the Transferred Subsidiary Inventory, calculated in accordance with the Applicable Accounting Principles. For the avoidance of doubt, Transferred Subsidiary Inventory Amount shall exclude any amounts otherwise taken into account in the calculation of Asset Jurisdiction Inventory Amount or the Asset Jurisdiction Net Working Capital.

"**Transferred Subsidiary Net Working Capital**" means, at a specified time and without duplication, an amount (which may be positive or negative) equal to (a) the aggregate value of the current assets of the Transferred Subsidiaries (including the Transferred Subsidiary Inventory Amount), <u>minus</u> (b) the aggregate value of the current liabilities of the Transferred Subsidiaries, in each case, on a basis substantially consistent with the Illustrative Net Working Capital Calculation, <u>plus</u> (c) the Pegasus Operational Adjustment; <u>provided</u> that, for the avoidance of doubt, clauses (a) and (b) of Transferred Subsidiary Net Working Capital shall (i) exclude any amounts otherwise taken into account in the calculation of Cash or Indebtedness, (ii) exclude any Tax assets or liabilities and any Recoverable VAT Loans, (iii) exclude any current assets or liabilities of entities that are not the Transferred Subsidiaries, (iv) be calculated in accordance with the Applicable Accounting Principles, (v) exclude any amounts otherwise taken into account in the calculation of Asset Jurisdiction Net Working Capital and (vi) exclude any cash held by a member of the Company Group for the purpose of satisfying a Tax liability for which Seller is responsible pursuant to <u>Section 6.1(b)</u> or <u>Section 6.3(b)</u>.

"**Transferred Subsidiary Net Working Capital Overage**" means the amount by which the Estimated Transferred Subsidiary Net Working Capital or the Closing Transferred Subsidiary Net Working Capital (as applicable) exceeds the Final Transferred Subsidiary Net Working Capital Target.

"**Transferred Subsidiary Net Working Capital Underage**" means the amount (which shall be an absolute value) by which the Final Transferred Subsidiary Net Working Capital Target exceeds the Estimated Transferred Subsidiary Net Working Capital or the Closing Transferred Subsidiary Net Working Capital (as applicable).

"**Transferred Subsidiary Plan**" means an Employee Plan that is solely sponsored or maintained by any Transferred Subsidiary following the Reorganization or that any Transferred Subsidiary solely contributes to (or is required to contribute to) for or on behalf of any current or former service providers of the Transferred Subsidiary.

"**Transition Services Agreement**" means the transition services agreement, by and among the Seller, the Company and the Buyer, substantially in the form attached as <u>Exhibit I</u> hereto.

"**Transitional Supply Agreement**" means the two transitional supply agreements, each by and between the Seller (or one of its Affiliates) and the Company in their respective capacities as supplier and customer, substantially in the form attached as <u>Exhibit J</u> hereto.

"**Treasury Regulations**" means the regulations issued by the Internal Revenue Service and the U.S. Department of the Treasury under the Code, as such regulations may be amended from time to time.

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"**UK Pension Plan**" means the Kimberly-Clark Pension Scheme governed by a Trust Deed and Rules dated 21 August 2020.

"**UK Transferred Subsidiaries**" means Kimberly-Clark Limited and Kimberly-Clark Europe Limited.

"**VAT**" means (a) any value added tax imposed in compliance with (i) the European Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112), or (ii) the Value Added Tax Act of 1994 in the United Kingdom and (b) any goods or services tax or sales tax (or similar tax) in any jurisdiction.

"**Willful Breach**" means (a) a deliberate act or failure to act, with the actual knowledge that such act or failure to act would, or would reasonably be expected to, constitute in and of itself a material breach of any covenant or agreement set forth in this Agreement, or (b) the failure of the Buyer or the Seller (on behalf of itself and the Company) to effect the Closing if and when required pursuant to <u>Section 2.8</u>.

"**Yankee Dryer Spares**" shall have the meaning set forth on <u>Schedule 5.23(b)</u>.

Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Table of Definitions</u>. The following terms have the meanings set forth in the Sections referenced below:

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| | |
|:---|:---|
| **<u>Term</u>** | **<u>Section</u>** |
| Agreement | Preamble |
| Alternative Recovery | 8.6(b) |
| Anti-Hybrid Mismatch Directive | 1.1 |
| Applicable Accounting Principles | 2.9(a) |
| Asset Allocation Schedule | 6.4(c) |
| Asset Jurisdiction Net Working Capital Target | 2.9(a)  |
| Assumed Liabilities | 2.3 |
| Burdensome Condition | 5.5(e) |
| Business | Recitals |
| Business Permits | 3.8(b)  |
| Business Registered Intellectual Property | 3.14(a) |
| Buyer | Preamble |
| Buyer Indemnified Parties | 8.2 |
| Buyer Released Claims | 5.20(b) |
| Buyer Termination Payment | 9.3 |
| CBA | 3.11(a) |
| Claim Information | 8.5(a) |
| Claim Notice | 8.5(a) |
| Closing | 2.8 |
| Closing Asset Jurisdiction Net Working Capital Overage | 2.10(b) |
| Closing Asset Jurisdiction Net Working Capital Underage | 2.10(b) |
| Closing Cash | 2.10(b) |
| Closing Date | 2.8 |
| Closing Date Allocation Schedule | 6.4(b) |
| Closing Debt Financing Expenses | 2.10(b) |

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| | |
|:---|:---|
| Closing Indebtedness | 2.10(b) |
| Closing Seller Transaction Expenses | 2.10(b) |
| Closing Specified Amount | 2.10(b) |
| Closing Transferred Subsidiary Net Working Capital Overage | 2.10(b) |
| Closing Transferred Subsidiary Net Working Capital Underage | 2.10(b) |
| Comingled Loss | 8.6(c) |
| Comingled Permit | 5.14 |
| Company | Preamble |
| Company Transfer | 2.1 |
| Company Transferred Interests Purchase | 2.6 |
| Company Welfare Plans | 5.9(g) |
| Confidentiality Agreement | 5.4 |
| Data Room | 10.6(a) |
| Debt Facility | 5.31(a) |
| Debt Financing | 5.31(a) |
| Debt Financing Expenses | 1.1 |
| Delayed Approval | 5.22(a) |
| Delayed Business | 5.22(a) |
| Delayed Business Cut-Off Date | 5.22(a) |
| Delayed Business Employee | 5.22(a) |
| Delayed Business Notice | 5.22(a) |
| Delayed Employee Transfer Date | 5.9(o) |
| Delayed Transfer Employee | 5.9(o) |
| Delay Notice | 5.22(a) |
| Direct Claim | 8.5(c) |
| Disclosure Schedules | Article III |
| Dispute | 10.10 |
| Divestiture Remedy | 5.5(e) |
| Enforceability Exceptions | 3.2 |
| Estimated Asset Jurisdiction Net Working Capital Overage | 2.10(a) |
| Estimated Asset Jurisdiction Net Working Capital Underage | 2.10(a) |
| Estimated Closing Cash | 2.10(a) |
| Estimated Closing Indebtedness | 2.10(a) |
| Estimated Debt Financing Expenses | 2.10(a) |
| Estimated Transferred Subsidiary Net Working Capital Overage | 2.10(a) |
| Estimated Transferred Subsidiary Net Working Capital Underage | 2.10(a) |
| Estimated Seller Transaction Expenses | 2.10(a) |
| Estimated Specified Amount | 2.10(a) |
| Excluded Assets | 2.2 |
| Excluded Benefits | 5.9(f) |
| Excluded Liabilities | 2.4 |
| Final Asset Jurisdiction Net Working Capital Target | 2.9(b) |
| Final Closing Statement | 2.10(b) |
| Final Closing Statement Figures | 2.10(b) |
| Final Transferred Subsidiary Net Working Capital Target | 2.9(b) |

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| | |
|:---|:---|
| Financial Statements | 3.5(a) |
| Foreign Antitrust Laws | 3.3(b) |
| GloBe Rule | 1.1 |
| Group Tax Arrangement | 6.9 |
| Guarantor | Preamble |
| Guaranty | Preamble |
| Hold-Back Termination Date | 5.22(c) |
| ICC | 10.10(b) |
| ICC Rules | 10.10(b) |
| Immigration Approvals | 5.9(p) |
| Indemnification Tax Benefit | 6.8 |
| Indemnified Party | 8.5(a) |
| Indemnifying Party | 8.5(a) |
| Independent Accounting Firm | 2.10(d) |
| Initial Termination Date | 9.1(c) |
| IT Separation Plan | 5.17 |
| Intended Tax Treatment | 6.4(a) |
| Intercompany Agreements | 3.20 |
| Inventory | 2.1(f) |
| Key Reorganization Steps | 7.1(d) |
| K&E | 2.2(t) |
| Local Closing Date | 5.9(a)(ii) |
| Losses | 8.2 |
| Material Contracts | 3.18(a) |
| Material Customers | 3.18(b) |
| Material Distributors | 3.18(b) |
| Material Suppliers | 3.18(b) |
| Net Adjustment Amount | 2.10(g)(i) |
| Net Working Capital Target Calculation | 2.9(a) |
| Non-Assignable Transferred Assets | 2.5(a) |
| Non-Party Affiliate | 10.23(a) |
| Notary | 2.6 |
| Objecting Employee | 5.9(a)(ii)  |
| OECD | 1.1 |
| Outstanding Jurisdiction | 5.22(a) |
| Party(ies) | Preamble |
| PEO Agreement | 3.11(a) |
| Performance Level | 5.9(k) |
| Phase I Environmental Assessment | 5.28 |
| Pre-Closing Event | 5.21(b) |
| Preliminary Closing Statement | 2.10(a) |
| Privileged Information | 5.27 |
| Proprietary Information | 3.14(f) |
| Purchased Shares | 2.1 |
| Real Property | 3.13(a) |

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| | |
|:---|:---|
| Recoverable VAT Loan | 6.3(b) |
| Released Buyer Parties | 5.20(a) |
| Released Seller Parties | 5.20(b) |
| Releasing Buyer Parties | 5.20(b) |
| Releasing Seller Parties | 5.20(a) |
| Reorganization | 5.15(a) |
| Reorganization Committee | 5.16(a) |
| Replacement Contracts | 5.13(a) |
| Replacement Permits | 5.14 |
| Retained Marks | 5.8(a) |
| Sales Baseline | 5.1(d) |
| Sample Statement | 2.10(a) |
| Seller | Preamble |
| Seller Consolidated Group | 6.1(a) |
| Seller Consolidated Return | 6.1(a) |
| Seller Guarantees | 5.7 |
| Seller Indemnified Parties | 8.3 |
| Seller IP | 5.8(a) |
| Seller Released Claims | 5.20(a) |
| Seller Transaction Taxes | 6.3(a) |
| SG&A Baseline | 5.1(d) |
| Specified Transaction Taxes | 5.16(g) |
| Statement of Net Assets | 3.5(a) |
| Supplier Finance Providers | 3.18(c) |
| Tax Claim | 6.6 |
| Termination Date | 9.1(c) |
| Third Party Claim | 8.5(a) |
| Transferred Assets | 2.1 |
| Transferred Business Permits | 2.1(g) |
| Transferred Computer Systems | 2.1(c)  |
| Transferred Contracts | 2.1(a) |
| Transferred Employees | 5.9(c) |
| Transferred Intellectual Property | 2.1(b) |
| Transferred Know-How | 2.1(d) |
| Transferred Leases | 2.1(i) |
| Transferred Owned Real Property | 2.1(j) |
| Transferred Subsidiary Net Working Capital Target | 2.9(a) |
| UK Pension Employers | 5.9(q)(ii) |
| UK Pension Release | 5.9(q)(ii) |
| WARN | 5.9(l) |
| Yankee Determination | 5.23 |
| Yankee Notice | 5.23 |
| Yankee Notice Period | 5.23 |

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**ARTICLE II <br>COMPANY TRANSFER; PURCHASE AND SALE OF COMPANY TRANSFERRED INTERESTS**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Transfer</u>. Upon the terms and subject to the conditions of this Agreement, at or prior to the Closing, the Seller shall, or shall cause the relevant Selling Affiliate to, contribute, assign, transfer, convey and deliver to the Company or one or more designated Subsidiaries of the Company (as applicable) all of the Seller's or such Selling Affiliate's right, title and interest as of the time of the transfer in and to the Transferred Assets, and the Company (or such designated Subsidiaries, as applicable) shall acquire and accept the Transferred Assets (other than the UK Transferred Subsidiaries). In addition, at or prior to the Closing, Seller shall cause Kimberly-Clark IFP Holdings B.V. and the Company to enter into the Put and Call Option Agreement. "**Transferred Assets**" shall mean: (A) all of the issued and outstanding Equity Interests of the Transferred Subsidiaries (the "**Purchased Shares**"), which shall be sold free and clear of all Encumbrances (other than restrictions on transfer under applicable securities Laws); <u>provided</u> that the UK Transferred Subsidiaries shall not be Transferred Assets unless a valid put option or call option is exercised in relation to the UK Transferred Subsidiaries pursuant to the Put and Call Option Agreement; and (B) all of the Seller's and each relevant Selling Affiliate's right, title and interest in and to the following enumerated assets as they exist at the time of the transfer and as of the Closing, as applicable (other than the Excluded Assets), which shall be sold free and clear of all Encumbrances (other than Permitted Encumbrances):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;all Contracts (excluding any Employee Plan and any Transferred Lease) (i) to which the Seller or any of its Affiliates (other than the Transferred Subsidiaries or the Excluded Affiliates) is a party or by which the Seller or any of its Affiliates (other than the Excluded Affiliates) is bound and that are exclusively related to the Business (the "**Transferred Contracts**") or (ii) which constitute Replacement Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;all Intellectual Property set forth on <u>Schedule 2.1(b)</u> of the Disclosure Schedules, all Intellectual Property in the Transferred Know-How and all other Intellectual Property owned by Seller or any of its Affiliates on the Closing Date that is exclusively used in the Business, other than (i) any Licensed Intellectual Property and (ii) Intellectual Property in Proprietary Information (the "**Transferred Intellectual Property**"); 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;all computer applications set forth on <u>Schedule 2.1(c)</u> of the Disclosure Schedules (the "**Transferred Computer Systems**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the know-how solely consisting of (i) the product specifications for any product listed in <u>Schedule 1.1(i)</u> of the Disclosure Schedules that is sold exclusively in the ABU Geographic Regions and exclusively used by such product, in each case, prior to the Closing Date, and (ii) all test results and supporting documentation existing as of the Closing Date and applicable to regulatory certificates (e.g., 510k, CEs) for the products referenced in this clause <u>(i)</u> (the "**Transferred Know-How**"); 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;all furniture, fixtures, furnishings, vehicles, computers, hardware, related computer equipment, leasehold improvements, tools, machinery, equipment and all other fixed assets and tangible personal property of any kind (other than Inventory) (i) exclusively used or held for use in the Business or (ii) located in the Owned Real Property or the Leased Real Property, including all portable electronic devices of the Transferred Employees to the extent exclusively used or held for use in the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;all inventory, including all raw materials, work-in-progress and finished goods owned by such Seller or any of its Affiliates (other than the Excluded Affiliates) and used or held for use exclusively in the Business, wherever located, including if in transit (the "**Inventory**");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;all Permits and all applications therefor (i) of such Seller or any of its Affiliates (other than the Excluded Affiliates) used or held for use (A) exclusively in the Business or (B) in connection with ownership, operation or use of any Real Property (the "**Transferred Business Permits**"), but only to the extent such Permits may be transferred under applicable Law (and in such case, subject to <u>Section 5.14)</u> and (ii) which constitute Replacement Permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;all distributors' and suppliers' lists, distribution lists, customer lists, sales and promotional literature and other sales-related materials to the extent exclusively related to the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Leases set forth on <u>Schedule 2.1(i)</u> of the Disclosure Schedules (the "**Transferred Leases**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;the Owned Real Property set forth on <u>Schedule 2.1(j)</u> of the Disclosure Schedules (the "**Transferred Owned Real Property**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;except as specifically provided for in <u>Section 2.2(f</u>), (i) the personnel records, in any form or medium, of the Transferred Employees (except to the extent any applicable Law prohibits their transfer) and (ii) all books, ledgers, files, reports, plans, manuals and other materials and records, in any form or medium, in each case, to the extent exclusively related to the Business, including any emails sent or received by the Transferred Employees and any laboratory notebooks to the extent containing research and development information exclusively related to the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;all rights to Actions, causes of action, judgments, defenses, rights of subrogation, rights of set-off and demands of any nature in favor of such Seller or any of its Affiliates to the extent exclusively related to the Business, the Transferred Assets or the Assumed Liabilities, including all rights under all guarantees, warranties, indemnities and similar rights and rights to contribution, indemnification, reimbursement and all other rights of recovery in connection thereto in favor of such Seller or any of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;with respect to each member of the Company Group, the Organizational Documents, qualifications to do business as a foreign corporation, arrangements with registered agents relating to foreign qualification, taxpayer and other identification numbers, seals, minute books, stock transfer books, blank stock certificates and other documents relating to the organization, maintenance and existence of such member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;(i) all proceeds of Seller Occurrence-Based Insurance Policies that have not been collected by the Seller or any of its Affiliates prior to the Closing; <u>provided</u> that the Buyer has otherwise complied with <u>Section 5.21</u> and (ii) all property and casualty insurance proceeds received or receivable in connection with the damage or destruction of any Transferred Assets or assets that would have been Transferred Assets but for such damage or destruction, in each case, net of any "deductibles" or net retentions associated with such proceeds and any reasonable and documented out-of-pocket expenses incurred by the Seller or any of its Affiliates with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;all rights under all confidentiality agreements with prospective purchasers of the Business or any material portion thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;except as specifically provided in <u>[Section 5.9](#idf8438709d124704bfb9fd271687367a_102250)</u>, any assets relating to any Transferred Subsidiary Plan or Assumed Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;all Cash held by the members of the Company Group as of the Calculation Time, including all Minimum Cash, and all of the bank accounts of members of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;the goodwill of the Seller and the Selling Affiliates exclusively related to the Business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;all other tangible assets and personal properties of every kind and nature, wherever located, exclusively related to, exclusively used or exclusively held for use by the Seller and its Affiliates in connection with, the Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;such other assets listed in <u>Schedule 2.1(t)</u> of the Disclosure Schedules.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Excluded Assets</u>. Notwithstanding anything contained in <u>Section 2.1</u> to the contrary, neither the Seller nor any of its Affiliates are transferring, assigning or conveying, and the Company Group is not accepting, any assets other than those expressly listed or described in <u>Section 2.1</u>, and the term "Transferred Assets" shall expressly exclude the following assets of the Seller and its Affiliates (other than the Company Group) all of which shall be retained by the Seller and its Affiliates (other than the Company Group) (collectively, the "**Excluded Assets**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;all assets, properties and rights of every kind and nature, whether tangible or intangible, real or personal, and wherever located, to the extent not used or held for use by the Seller and its Affiliates in connection with the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any assets with respect to the manufacturing, development, sale or distribution of consumer and professional tissue products, including bath tissue, towels, table napkins, hard rolls, facial tissue, and wipe products to the extent not used by the Seller or its Affiliates in (i) the IFP Segment or (ii) the ABU Geographic Regions (including those assets set forth on <u>Schedule 2.2(b)</u> of the Disclosure Schedules);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Equity Interests of the Seller and each Excluded Affiliate other than the Purchased Shares, the Company Interests and the Company Group Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;all of the Seller's and its Affiliates' cash and cash equivalents (other than, for the avoidance of doubt, Cash held by members of the Company Group as of the Calculation Time, including the Minimum Cash);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;all accounts receivable, including trade accounts receivable and other receivables, of Seller or any of its Affiliates (other than members of the Company Group), in each case, at the Calculation Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;(i) the personnel records of the Transferred Employees that are prohibited from transfer by applicable Law, (ii) the Seller's and any of its Affiliates' (other than any member of the Company Group's) (x) books and records of, or related to, internal corporate proceedings and regulatory and compliance matters, (y) Tax records (including Returns) and (z) work papers and (iii) copies of the books and records set forth in <u>Section 2.1(m)</u> that the Seller or any of its Affiliates (other than members of the Company Group) are prohibited from disclosing or transferring to the Buyer under applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;all Intellectual Property that is not Transferred Intellectual Property, including, (i) trade dress rights, design rights and copyrights in any product or packaging and (ii) rights in the following names and marks and any variation, translation, combination, or derivation thereof, and all confusingly similar names and trademarks: (v) the Japan Trademarks, solely until the Japan Assignment Date, (w) "RIGHTCYCLE," (x) "KIMBERLY-CLARK PROFESSIONAL" and "KIMBERLY-CLARK," (y) names and marks licensed by the Seller or its Affiliates pursuant to the Trademark License Agreement, and (z) names and marks that begin with the constituent element "KIM" and that are not expressly listed in <u>Schedule 3.14(a)</u> of the Disclosure Schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;all of the Seller's and its Affiliates' bank accounts (other than any bank accounts of any member of the Company Group);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;all (i) Tax assets and attributes of Seller and its Affiliates (other than the Transferred Subsidiaries) and of any Seller Consolidated Group and (ii) Tax assets and attributes in respect of any Excluded Asset, any Excluded Liability or otherwise with respect to the Excluded Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;except as specifically provided in <u>Section 2.1(n</u>) and subject to <u>Section 5.21(b)</u>, any of the Seller's or its Affiliates' insurance policies and rights, claims or causes of action thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;except as specifically provided in <u>Section 5.9</u>, any assets relating to any Employee Plan (other than any Transferred Subsidiary Plan or Assumed Plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;all assets sold, or otherwise disposed of, in compliance with the terms of this Agreement during the period from the date hereof until the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;all consideration received by the Seller and its Affiliates, and all rights of the Seller and its Affiliates under, this Agreement, the Company Transfer Agreements or any Ancillary Agreements, subject to the terms hereof and thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;subject to <u>Section 5.13</u>, the Comingled Contracts and the Contracts listed on <u>Schedule 2.2(n)</u> of the Disclosure Schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;except as specifically provided in <u>Section 2.1(s</u>) and subject to <u>Section 5.14</u>, the Comingled Permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;all credits, prepaid expenses, deferred charges, advance payments, refunds, security deposits, prepaid items and duties of the Seller and its Affiliates (other than members of the Company Group) included in the calculation of the Asset Jurisdiction Net Working Capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;each Divestiture Compensation Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;all rights to Actions, causes of action, judgments, defenses, rights of subrogation, rights of set-off and demands of any nature in favor of such Seller or any of its Affiliates set forth on <u>Schedule 2.2(r)</u> of the Disclosure Schedules, including all rights under all guarantees, warranties, indemnities and similar rights and rights to contribution, indemnification, reimbursement and all other rights of recovery in connection thereto in favor of such Seller or any of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;the assets set forth on <u>Schedule 2.2(s)</u> of the Disclosure Schedules; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;all confidential communications between the Company, the Seller and its Affiliates (including any Transferred Subsidiary prior to the Closing Date), on the one hand, and Kirkland Ellis LLP ("**K&E**") or Baker McKenzie LLP, on the other hand, to the extent relating to (i) the negotiation, execution or delivery of this Agreement or the transactions contemplated hereby, including any attendant attorney-client privilege, attorney work product protection, and expectation of client confidentiality applicable thereto, and including any information or files in any format of K&E in connection therewith, or (ii) subject to <u>Section 5.27</u>, the Business, the Company, the Transferred Assets or the Transferred Subsidiaries (in each case, prior to the Closing Date), solely to the extent such transfer, assignment or conveyance would reasonably be expected to contravene any attendant attorney-client privilege, attorney work product protection, and expectation of client confidentiality applicable thereto, and including any information or files in any format of K&E in connection therewith.

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Assumed Liabilities</u>. Upon the terms and subject to the conditions of this Agreement, at or prior to the Closing, the Company Group shall assume and pay, discharge, perform or otherwise satisfy, when due, the following Liabilities of the Seller or the Selling Affiliates, except to the extent such Liability would constitute a category of Liabilities that would constitute an "Excluded Liability" in <u>clauses (a)</u> through <u>(i)</u> of <u>Section 2.4</u> (collectively, the "**Assumed Liabilities**"):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;except as otherwise set forth in this Agreement, all liabilities (or any portion thereof) to the extent related to the Business, the Transferred Subsidiaries or the Transferred Assets, whether arising prior to, at or following the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;all liabilities for (i) Taxes imposed on or with respect to the Transferred Assets or the Business and (ii) Taxes imposed upon any member of the Company Group (other than, for the avoidance of doubt, Taxes reported on a Seller Consolidated Return), in each case, for any Tax period (or portion thereof) beginning after the Closing Date, except to the extent such Taxes are Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;all liabilities of the Seller or any of the Selling Affiliates (other than the Excluded Affiliates) under the Transferred Contracts, Transferred Leases and the Transferred Business Permits to be performed before, on or after the Closing Date, if, in either case, such Contract, Lease or Permit has been validly transferred to a member of the Company Group pursuant to <u>Section 2.1(a)</u> or <u>Section 2.1(g</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;all liabilities in respect of products manufactured, marketed, distributed or sold by the Business before, on or after the Closing Date, including product liability and negligence claims and liabilities for refunds, adjustments, allowances, repairs, exchanges, returns and warranty or similar claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;except as specifically provided in <u>Section 5.9</u>, all liabilities accruing, arising out of or relating to the Transferred Subsidiary Plans and the Assumed Plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;all liabilities (i) assumed by the Company Group pursuant to <u>Section 5.9</u> and (ii) accruing, arising out of or relating to the Transferred Employees, to the extent arising after the Closing, including all liabilities relating to or arising out of any employment action or practice in connection with the employment or termination of employment of any Transferred Employees after the Closing.

Without limiting the Buyer's or the Company's rights to indemnification under <u>Article VIII</u>, the Company's obligations under this <u>Section 2.3</u> shall not be subject to offset for any reason, including by reason of any actual or alleged breach of any representation, warranty or covenant contained in this Agreement, the Company Transfer Agreements or the Ancillary Agreements or any document delivered in connection herewith or therewith.

Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Excluded Liabilities</u>. Notwithstanding any other provision of this Agreement to the contrary, no member of the Company Group is assuming any Liabilities that are not Assumed Liabilities, and the Seller shall, or shall cause its Affiliates to, pay, perform or otherwise satisfy all Liabilities of the Seller and its Affiliates that are not Assumed Liabilities (collectively, the "**Excluded Liabilities**"), including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;all Liabilities (other than those under <u>Section 2.3(f)</u>) (i) retained by the Seller or its Affiliates pursuant to <u>Section 5.9</u> arising in respect of or relating to Business Employees, (ii) except as specifically provided in <u>Section 5.9</u>, accruing, arising out of or relating to any Employee Plan that is sponsored, maintained or contributed to, or required to be sponsored, maintained or contributed to, by the Seller or any of its Affiliates, at any time prior to, on or following the Closing, other than (A) any such Employee Plan that is a Transferred Subsidiary Plan or Assumed Plan and (B) any Employee Plan that the Company Group is obligated to adopt on or following the Closing to replicate an Employee Plan that is sponsored, maintained or contributed to, or required to be sponsored, maintained or contributed to, by the Seller or any of its Affiliates and (iii) except as specifically provided in <u>Section 5.9</u>, accruing, arising out of or relating to (A) employees of the Seller and its Affiliates (other than Business Employees) at any time prior to, on or following the Closing and (B) the Business Employees at any time on or prior to the Closing (and, for any Business Employees who do not become Transferred Employees, prior to, on or following the Closing), including all such liabilities accruing, arising out of or relating to any employment action or practice in connection with the employment or termination of employment of any such Business Employees on or prior to the Closing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;all Indebtedness of the Seller or any of its Affiliates (other than any Transferred Subsidiary);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;all accounts payable, including trade accounts payable, of Seller or any of its Affiliates (other than any Transferred Subsidiary), at the Calculation Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;all Liabilities for Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;all Liabilities accruing, arising out of or relating to the ownership, conduct or operation of the Excluded Business or the ownership or use of the Excluded Assets (or any "successor-in-interest", "de facto merger" or other theories of liability related thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;all Liabilities (or any portion thereof) accruing, arising out of or relating to the ownership, conduct or operation of the business of manufacturing or having made, marketing, developing, distributing or selling consumer and professional tissue products or the ownership or use of any assets, properties or rights related to the business of manufacturing or having made, marketing, developing, distributing or selling consumer and professional tissue products in any geography or region other than the ABU Geographic Regions or not included in the IFP Segment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;all Liabilities arising out of or related to the conduct or operation of the Business on or prior to the Closing, including by any member of the Company Group, that violates Anti-Corruption Laws, Sanctions Laws, Export Control Laws or applicable Laws related to antitrust, cartels or similar competition matter, whether such Liability arises prior to or after the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;all Liabilities for which the Seller is responsible under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;all Seller Transaction Expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;all Liabilities accruing, arising out of or related to (whether before, on or after the Closing) the matters referenced in <u>Schedule 2.4(j)</u> of the Disclosure Schedules.

Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Consents to Certain Assignments</u>. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement, any Company Transfer Agreement or any Ancillary Agreement to the contrary, this Agreement, the Company Transfer Agreements and the Ancillary Agreements shall not constitute an agreement to transfer or assign any asset, Contract, permit, claim or right or any benefit arising thereunder or resulting therefrom if an attempted assignment thereof, without the consent of a third party, would constitute a breach or other contravention under any agreement or Law to which the Seller, a Selling Affiliate or a Transferred Subsidiary is a party or by which it is bound, or in any way adversely affect the rights or obligations of the Seller or a Selling Affiliate or any member of the Company Group under such asset, Contract, permit, claim or right (such assets, the "**Non-Assignable Transferred Assets**"); <u>provided</u>, <u>however</u>, that the Parties shall treat the applicable member of the Company Group as the owner of such any such Non-Assignable Transferred Asset (and of any Delayed Business) to the fullest extent permitted by applicable Law for all purposes as of the Closing Date. Subject to <u>Section 5.13</u> relating to Comingled Contracts and <u>Section 5.14</u> relating to Comingled Permits, the Seller shall, or shall cause the relevant Selling Affiliate to, use its commercially reasonable efforts to promptly obtain all necessary consents or waivers required to assign or transfer to the applicable member of the Company Group any Non-Assignable Transferred Asset that requires the consent of a third party, without any conditions to such transfer or changes or modifications of terms thereunder. If any such consent or waiver is not obtained on or prior to the Closing, the Closing shall proceed without the transfer or assignment of such Non-Assignable Transferred Assets unless such failure to obtain such consent or waiver, or to transfer or assign such Non-Assignable Transferred Assets, would cause a failure of any of the conditions to Closing set forth in <u>Article VII</u>. Without limiting the obligations of the Seller and the Selling Affiliates to comply with this <u>Section 2.5</u>, each of the Buyer and

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the Company agrees that neither the Seller nor any Selling Affiliate shall have any liability to the Company or the Buyer arising out of or relating to the failure to obtain any such consent or waiver that may be required in connection with the transactions contemplated by this Agreement or the Ancillary Agreements or because of any circumstances resulting therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If any such consent or waiver is not obtained on or prior to the Closing and, as a result thereof, the applicable members of the Company Group shall be prevented from receiving the rights and benefits with respect to such Non-Assignable Transferred Asset, or if any attempted assignment would adversely affect the rights of the Seller, a Selling Affiliate or any member of the Company Group thereunder so that the applicable members of the Company Group would not in fact receive all such rights or the Seller or such Selling Affiliate or any member of the Company Group would forfeit or otherwise lose the benefit of rights that it is entitled to retain, the Seller, the applicable members of the Company Group and the Buyer shall cooperate with each other and shall use their commercially reasonable efforts to institute a lawful and commercially reasonable arrangement, as the Seller and the Buyer shall agree (in each case, acting reasonably and in good faith) for a period of (i) up to eighteen (18) months following the Closing or (ii) in the case of any Delayed Business subject to a Delayed Approval, the Delayed Business Cut-Off Date, that would cause the applicable members of the Company Group, to obtain all of the economic claims, rights and benefits under such Non-Assignable Transferred Asset and, to the extent such claims, rights and benefits are so delivered, assume the economic burdens and obligations with respect thereto in accordance with this Agreement, including by subcontracting, sublicensing or subleasing to the applicable members of the Company Group; <u>provided</u> that the Seller shall, and shall cause the Selling Affiliates to, continue to use its commercially reasonable efforts to promptly obtain all necessary consents or waivers required to assign or transfer to the applicable member of the Company Group any Non-Assignable Transferred Asset that requires the consent of a third party, without any conditions to such transfer or changes or modifications of terms thereunder during such eighteen (18)-month period; <u>provided</u>, <u>further</u>, that all expenses of such cooperation and related actions shall be paid by the Seller (prior to the Closing). The Seller shall, or shall cause the relevant Selling Affiliate to, promptly pay to the applicable members of the Company Group when received all monies received by the Seller or such Selling Affiliate (net of applicable Taxes, if any, imposed in connection with the receipt of such monies) under such Non-Assignable Transferred Asset (including any Delayed Business) and all claims, rights and benefits arising thereunder. For so long as the Seller holds any Non-Assignable Transferred Asset in compliance with the Company's instructions and provides to the applicable members of the Company Group all claims, rights and benefits of any such Non-Assignable Transferred Asset, the Company shall indemnify and promptly pay the Seller for all liabilities of the Seller or such Selling Affiliate associated with such Non-Assignable Transferred Asset (including any Delayed Business). Notwithstanding the foregoing, nothing in this Agreement shall require the Seller and the Selling Affiliates to take any action that would, in the reasonable opinion of the Seller's in house counsel, be ineffective under, or contravene, applicable Law. To the extent the Seller or any of the Selling Affiliates is not permitted under applicable Law to obtain or structure an arrangement for the applicable members of the Company Group to receive (or for the Seller and its Selling Affiliates to enforce for the benefit of the applicable members of the Company Group) all of the economic and operational claims, rights and benefits of ownership of such Non-Assignable Transferred Assets (including any Delayed Business), the Seller shall use commercially reasonable efforts to segregate the proceeds received by the Seller or any Selling Affiliate associated with the ownership of such Non-Assignable Transferred Assets (including any Delayed Business) in an account for the Company's benefit, such funds to be released as promptly as practicable once permitted under applicable Law.

Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase and Sale of the Company Transferred Interests</u>. Subject to the terms and conditions set forth herein, at the Closing, the Seller shall or shall cause the Company or the Seller's applicable Affiliates to sell, transfer and deliver to the Buyer or the Buyer Designee, and the Buyer or the Buyer Designee shall purchase from the Seller (or the Seller's applicable Affiliates), all of the Seller's (or such Affiliates') rights, title and interest in and to the Company Transferred Interests, free and clear from all Encumbrances (other than restrictions on transfer under applicable securities Laws) for the Estimated Purchase Price specified in <u>Section 2.7(a</u>), as it may be adjusted in accordance with <u>Section</u> 

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<u>2.10</u> and <u>Section 2.11</u> (collectively, the "**Company Transferred Interests Purchase**"). The Company Transferred Interests Purchase shall be effected at the Closing pursuant to the Notarial Deed of Sale and Transfer to be executed by a Dutch civil law notary to be mutually agreed by the Parties (the "**Notary**") and relevant proxy holders on behalf of the Buyer (or the Buyer Designee), the Seller (or its Affiliate) and the Company based on the powers of attorney to be delivered pursuant to <u>Section 2.7(b)(ii)</u>, <u>Section 2.7(c)(ii)(A)</u> and <u>Section 2.7(c)(ii)(B)</u>.

Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Actions at the Closing; Closing Deliverables</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;In consideration for the receipt, purchase and sale of the Company Transferred Interests, at the Closing, the Buyer shall, or shall cause the applicable Buyer Designee to, pay to the Seller (or one or more of the Selling Affiliates as may be designated by the Seller), by wire transfer to a bank account designated in writing by the Seller to the Buyer at least ten (10) Business Days prior to the Closing Date, an amount equal to the Estimated Purchase Price in immediately available funds in United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;At or prior to the Closing, the Buyer shall deliver, or cause to be delivered,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;to the Seller (or one or more of its Affiliates designated by the Seller) the following: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;payment as set forth in <u>Section 2.7(a)</u> (which, for the avoidance of doubt, shall be made prior to the execution of the Notarial Deed of Sale and Transfer); 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the certificate contemplated by <u>Section 7.2(c)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a duly executed counterpart of each of the Ancillary Agreements and Company Transfer Agreements signed by each party other than the Company Group, the Seller, or an Affiliate of Seller; <u>provided</u> that the Notarial Deed of Sale and Transfer shall be executed before the Notary on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;to the Notary, a duly executed power of attorney to the satisfaction of the Notary granted by the Buyer or the Buyer Designee for the execution of the Notarial Deed of Sale and Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;At or prior to the Closing, the Seller shall deliver, or cause to be delivered,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;to the Company and the Buyer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the certificate contemplated by <u>Section 7.3(c)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;copies of all documents evidencing the Company Transfer, as such documents exist as of the Closing Date, including a duly executed counterpart of each of the Company Transfer Agreements signed by each party other than the Buyer or a Buyer Designee; <u>provided</u> that the Notarial Deed of Sale and Transfer shall be executed before the Notary on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a duly executed counterpart of each of the Ancillary Agreements signed by each party other than the Buyer; <u>provided</u> that the Notarial Deed of Sale and Transfer shall be executed before the Notary on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;a resignation letter, effective as of the Closing, duly executed by each director, manager or officer of the relevant members of the Company Group, except for such directors, managers and officers that the Buyer specifies in writing to the Seller prior to the Closing Date, or resolutions removing such directors, managers or officers; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;to the Notary, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;a duly executed power of attorney to the satisfaction of the Notary granted by the Seller or its Affiliate for the execution of the Notarial Deed of Sale and Transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;a duly executed power of attorney to the satisfaction of the Notary granted by the Company for the execution of the Notarial Deed of Sale and Transfer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;the original shareholders' register of the Company.

Section 2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing</u>. The closing of the Company Transferred Interests Purchase (the "**Closing**") shall be effected remotely without the need for the Parties to be present in Amsterdam, the Netherlands, by the execution of the Notarial Deed of Sale and Transfer at the offices of the Notary by the Notary and relevant proxy holders on behalf of the Buyer (or the Buyer Designee), the Seller (or its Affiliate) and the Company based on the powers of attorney to be delivered pursuant to <u>Section 2.7(b)(ii)</u>, <u>Section 2.7(c)(ii)(A)</u> and <u>Section 2.7(c)(ii)(B)</u>, by instructing the Notary accordingly and the exchange of other documentation and consideration required to be delivered at Closing, at 10:00 a.m., Dallas, Texas time on the first (1<sup>st</sup>) Business Day of the month immediately following the month in which the satisfaction or, to the extent permitted by applicable Law, waiver of all conditions to the obligations of the Parties set forth in <u>Article VII</u> (other than those conditions to be satisfied at the Closing itself, but subject to the satisfaction or waiver of such conditions at the Closing), or at such other place or at such other time or on such other date as the Seller (on behalf of itself and the Company) and the Buyer mutually may agree in writing; <u>provided</u> that if all such conditions are satisfied or, to the extent permitted by applicable Law, waived, during the last five (5) Business Days of a month, the Closing shall take place on the first (1<sup>st</sup>) Business Day of the second month after the satisfaction or valid waiver of all such conditions. The Closing shall be deemed effective at the Calculation Time. The day on which the Closing takes place is referred to as the "**Closing Date**."

Section 2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Working Capital Target</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to January 20, 2026, the Seller shall prepare, or cause to be prepared, and deliver to the Buyer a statement that sets forth in reasonable detail the Seller's good faith calculations of the target Asset Jurisdiction Net Working Capital (the "**Asset Jurisdiction Net Working Capital Target**") and target Transferred Subsidiary Net Working Capital (the "**Transferred Subsidiary Net Working Capital Target**" and together with the Asset Jurisdiction Net Working Capital Target, the "**Net Working Capital Target Calculation**"), which targets shall be the average month-end net working capital for the twelve (12) months ended December 31, 2025, calculated on a basis consistent with <u>Exhibit N</u> and the accounting principles, practices, assumptions, conventions and policies referred to therein, including any exclusions or deviations from GAAP reflected therein (the "**Applicable Accounting Principles**"); <u>provided</u> that the Pegasus Operational Adjustment shall be excluded for purposes of calculating the Transferred Subsidiary Net Working Capital Target and the Net Working Capital Target Calculation. Following the delivery of the Net Working Capital Target Calculation, the Buyer shall have the right (but not the obligation) to review such calculations. The Seller will review any comments proposed by the Buyer with respect to such calculations and will consider, in good faith, any appropriate changes. The Seller and the Buyer shall in good faith seek to resolve any differences that they may have with respect to the calculation of the Asset Jurisdiction Net Working Capital Target and the Transferred Subsidiary Net Working Capital Target. The Net Working Capital Target Calculation shall become final and binding on the fifteenth (15th) Business Day following delivery thereof, unless prior to 11:59 p.m. Dallas, Texas time on the last day of such fifteen (15) Business Day period, the Buyer delivers to the Seller a Notice of Disagreement, specifying in reasonable detail the nature and amount of any dispute as to the applicable calculations as set forth in the Net Working Capital Target Calculation. The Buyer shall be deemed to have agreed with all items and amounts of the Net Working Capital Target Calculation figures not specifically referenced in such Notice of Disagreement, and such items and amounts shall be final and binding on the Parties and shall not be subject to review in accordance with <u>Section 2.9(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;During the thirty (30)-day period following delivery of the Notice of Disagreement by the Buyer to the Seller, the Seller and the Buyer in good faith shall seek to resolve in writing any differences that they may have with respect to any line item of the Net Working Capital Target Calculation. Any disputed items resolved in writing between the Buyer and the Seller within such thirty (30)-day period shall be final and binding with respect to such items, and if the Seller and the Buyer agree in writing on the resolution of each disputed item specified by the Buyer in the relevant Notice of Disagreement and the amount of any line item of the Net Working Capital Target Calculation, the amounts so determined shall be final and binding on the Seller and the Buyer for all purposes hereunder. If the Buyer and the Seller have not resolved all such differences by 11:59 p.m. Dallas, Texas time on the last day of such thirty (30)-day period, the Buyer and the Seller shall submit, in writing, to an independent public accounting firm jointly retained by the Buyer and the Seller (the "**Independent Accounting Firm**") their briefs detailing their views as to the correct nature and amount of each item remaining in dispute and the Net Working Capital Target Calculation, and the Independent Accounting Firm shall make a written determination as to each such disputed item and the Net Working Capital Target Calculation. The Independent Accounting Firm shall be KPMG LLP or, if such firm is unable or unwilling to act, such other independent public accounting firm with an active practice area focused on post-mergers and acquisitions purchase price dispute resolution reasonably acceptable to, and as shall be agreed in writing by, the Seller and the Buyer. The Buyer and the Seller shall enter into a customary engagement letter with the Independent Accounting Firm. The Buyer and the Seller shall use their commercially reasonable efforts to cause the Independent Accounting Firm to render a written decision resolving the matters submitted to it within thirty (30) days following the submission thereof. All communications with the Independent Accounting Firm shall include at least one Representative of each of the Buyer and the Seller, and neither the Buyer nor the Seller shall be permitted to communicate with the Independent Accounting Firm other than as expressly set forth herein. The Independent Accounting Firm shall consider only those items and amounts in the Buyer's and the Seller's respective calculations of any line item of the Net Working Capital Target Calculation that are identified as being items and amounts to which the Buyer and the Seller have been unable to agree. The scope of the disputes to be resolved by the Independent Accounting Firm shall be limited to correcting mathematical errors and determining whether the items and amounts in dispute were determined in accordance with <u>Exhibit N</u> and the Applicable Accounting Principles, and the Independent Accounting Firm shall not be permitted to make any other determination. In resolving any disputed item, the Independent Accounting Firm may not assign a value to any item greater than the greatest value or less than the smallest value for such item set forth in the Net Working Capital Target Calculation or applicable Notice of Disagreement. The Independent Accounting Firm's determination of any line item of the Net Working Capital Target Calculation figures, as applicable, shall be based solely on written materials submitted by the Buyer and the Seller (i.e., not on independent review). The final Asset Jurisdiction Net Working Capital Target and the Transferred Subsidiary Net Working Capital Target, as applicable, shall be (i) if the Buyer does not deliver a Notice of Disagreement with respect to the Net Working Capital Target Calculation, the Asset Jurisdiction Net Working Capital Target and the Transferred Subsidiary Net Working Capital Target set forth in the Net Working Capital Target Calculation, (ii) if the Buyer delivers a Notice of Disagreement with respect to the Net Working Capital Target Calculation, but the Buyer and the Seller resolve such differences, the Asset Jurisdiction Net Working Capital Target and the Transferred Subsidiary Net Working Capital Target agreed by the Buyer and the Seller, as applicable, and (iii) if the Independent Accounting Firm is engaged pursuant to this <u>Section 2.9</u>, the Asset Jurisdiction Net Working Capital Target and the Transferred Subsidiary Net Working Capital Target as determined by the Independent Accounting Firm, as applicable (the "**Final Asset Jurisdiction Net Working Capital Target**" and the "**Final Transferred Subsidiary Net Working Capital Target**", as applicable). The determination of the Independent Accounting Firm shall be conclusive and binding upon the Seller and the Buyer and shall not be subject to appeal or further review, absent fraud or manifest error. Judgment may be entered upon the written determination of the Independent Accounting Firm in accordance with <u>Section 10.10</u>. In acting under this Agreement, the Independent Accounting Firm shall function solely as an expert and not as an arbitrator; <u>provided</u> that the Independent Accounting Firm shall have the power to conclusively resolve differences in disputed items as specified in this <u>Section 2.9</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The fees and expenses of the Independent Accounting Firm shall be borne by the Seller and the Buyer in inverse proportion as they may prevail on the matters resolved by the Independent Accounting Firm, which proportionate allocation shall be calculated on an aggregate basis based on the relative dollar values of the amounts in dispute and shall be determined by the Independent Accounting Firm at the time the determination of such firm is rendered on the merits of the matters submitted. The fees and disbursements of the Representatives of each of the Seller and the Buyer incurred in connection with the preparation or review of the Net Working Capital Target Calculation and preparation or review of any relevant Notice of Disagreement shall be borne by such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;During the period from and after the date of delivery of the Net Working Capital Target Calculation through the resolution of any calculations contemplated by this <u>Section 2.9(d)</u>, the Seller will afford the Buyer and its Representatives reasonable access, during normal business hours and upon reasonable prior notice, to the personnel, properties, books and records of the Business and the Company and to any other information reasonably requested for purposes of preparing and reviewing the calculations contemplated by this <u>Section 2.9</u>. Each of the Seller and the Buyer shall authorize its accountants to disclose work papers generated by such accountants in connection with preparing and reviewing the calculations specified in this <u>Section 2.9</u>; <u>provided</u> that such accountants shall not be obligated to make any work papers available except in accordance with such accountants' disclosure procedures and then only after the non-client Party has signed an agreement relating to access to such work papers in form and substance acceptable to such accountants. The rights of any Party shall not be prejudiced by the failure of any other Party to comply with this <u>Section 2.9(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The calculation of the Final Asset Jurisdiction Net Working Capital Target and the Final Transferred Subsidiary Net Working Capital Target pursuant to this <u>Section 2.9</u>, including the determination of all or any part of the Final Asset Jurisdiction Net Working Capital Target and the Final Transferred Subsidiary Net Working Capital Target, shall be without prejudice to, and shall not be construed to in any way limit, the rights of the Parties pursuant to <u>Section 2.10</u>.

Section 2.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Purchase Price Adjustment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At least five (5) Business Days prior to the Closing Date, the Seller shall prepare, or cause to be prepared, and deliver to the Buyer a statement (the "**Preliminary Closing Statement**") that sets forth in reasonable detail the Seller's good faith estimate, in each case determined as of the Calculation Time (and without giving effect to the transactions contemplated hereby, other than the Reorganization and the Company Transfer), of (i) the Asset Jurisdiction Net Working Capital Overage, if any (the "**Estimated Asset Jurisdiction Net Working Capital Overage**"), (ii) the Asset Jurisdiction Net Working Capital Underage, if any (the "**Estimated Asset Jurisdiction Net Working Capital Underage**"), (iii) the Transferred Subsidiary Net Working Capital Overage, if any (the "**Estimated Transferred Subsidiary Net Working Capital Overage**"), (iv) the Transferred Subsidiary Net Working Capital Underage, if any (the "**Estimated Transferred Subsidiary Net Working Capital Underage**"), (v) Indebtedness (the "**Estimated Closing Indebtedness**"), (vi) Cash (the "**Estimated Closing Cash**"), (vii) the Seller Transaction Expenses (the "**Estimated Seller Transaction Expenses**"), (viii) the Specified Amount (the "**Estimated Specified Amount**"), and (ix) the Debt Financing Expenses ("**Estimated Debt Financing Expenses**"), in each case, based on the Seller's books and records and other information available at the Closing. The Preliminary Closing Statement shall (A) be calculated on a basis consistent with <u>Exhibit K</u> and the Applicable Accounting Principles and the Sample Statement and (B) shall be based exclusively on the facts and circumstances as they exist prior to the Closing and shall exclude the effects of any event, act, change in circumstances or similar development arising or occurring on or after the Closing Date. An illustrative example of a Preliminary Closing Statement and calculation of the Asset Jurisdiction Net Working Capital, the Transferred Subsidiary Net Working Capital, Indebtedness, Cash, Seller Transaction Expenses, Debt Financing Expenses and the Specified Amount is attached as <u>Exhibit L</u> (the "**Sample Statement**"). Following the delivery of the Preliminary Closing Statement, but prior to the Closing, the Buyer shall have the right (but not the obligation) to review the Preliminary Closing Statement. Prior to the Closing, the Seller will review any comments proposed by the Buyer with respect

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to the Preliminary Closing Statement and will consider, in good faith, any appropriate changes. The Seller and the Buyer shall in good faith seek to resolve any differences that they may have with respect to the computation of any of the items in the Preliminary Closing Statement; <u>provided</u> that, if the Buyer and the Seller are unable to resolve such differences prior to the Closing, the amounts of the Estimated Asset Jurisdiction Net Working Capital Overage, Estimated Asset Jurisdiction Net Working Capital Underage, Estimated Transferred Subsidiary Net Working Capital Overage, Estimated Transferred Subsidiary Net Working Capital Underage, Estimated Closing Indebtedness, Estimated Closing Cash, Estimated Seller Transaction Expenses, Estimated Specified Amount and Estimated Debt Financing Expenses as reflected in the Preliminary Closing Statement shall be used for purposes of calculating the Estimated Purchase Price to be paid on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Within ninety (90) days after the Closing Date, the Buyer shall cause to be prepared and delivered to the Seller a written statement (the "**Final Closing Statement**") that shall include and set forth a good faith calculation in reasonable detail, in each case determined as of the Calculation Time (and without giving effect to the transactions contemplated hereby, other than the Company Transfer and the Reorganization), of the (i) Asset Jurisdiction Net Working Capital Overage, if any ("**Closing Asset Jurisdiction Net Working Capital Overage**"), (ii) Asset Jurisdiction Net Working Capital Underage, if any ("**Closing Asset Jurisdiction Net Working Capital Underage**"), (iii) Transferred Subsidiary Net Working Capital Overage, if any ("**Closing Transferred Subsidiary Net Working Capital Overage**"), (iv) Transferred Subsidiary Net Working Capital Underage, if any ("**Closing Transferred Subsidiary Net Working Capital Underage**"), (v) Indebtedness ("**Closing Indebtedness**"), (vi) Cash ("**Closing Cash**"), (vii) Seller Transaction Expenses ("**Closing Seller Transaction Expenses**"), (viii) Specified Amount ("**Closing Specified Amount**"), and (ix) Debt Financing Expenses ("**Closing Debt Financing Expenses**") (such amounts in <u>clauses (i)</u> through <u>(ix)</u>, the "**Final Closing Statement Figures**"). The Final Closing Statement (A) shall be calculated on a basis consistent with the Applicable Accounting Principles and the Sample Statement and (B) shall be based exclusively on the facts and circumstances as they exist prior to the Closing and shall exclude the effects of any event, act, change in circumstances or similar development arising or occurring on or after the Closing Date. To the extent any actions following the Closing with respect to the accounting books and records of the Seller on which the Final Closing Statement and the calculation of the Final Closing Statement Figures, as applicable, is to be based are not consistent with the Applicable Accounting Principles, such changes shall not be taken into account in preparing the Final Closing Statement or calculating amounts reflected thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Final Closing Statement shall become final and binding on the sixtieth (60<sup>th</sup>) day following delivery thereof, unless prior to 11:59 p.m. Dallas, Texas time on the last day of such sixty (60)-day period, the Seller delivers to the Buyer a Notice of Disagreement specifying in reasonable detail the nature and amount of any dispute as to the applicable Final Closing Statement Figure(s) as set forth in the Final Closing Statement. The Seller shall be deemed to have agreed with all items and amounts of Final Closing Statement Figures not specifically referenced in such Notice of Disagreement, and such items and amounts shall be final and binding on the Parties and shall not be subject to review in accordance with <u>Section 2.10(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;During the thirty (30)-day period following delivery of the relevant Notice of Disagreement by the Seller to the Buyer, the Seller and the Buyer in good faith shall seek to resolve in writing any differences that they may have with respect to the calculation of any of the Final Closing Statement Figures as specified therein. Any disputed items resolved in writing between the Buyer and the Seller within such thirty (30)-day period shall be final and binding with respect to such items, and if the Seller and the Buyer agree in writing on the resolution of each disputed item specified by the Seller in the relevant Notice of Disagreement and the amount of any of the Final Closing Statement Figures, the amounts so determined shall be final and binding on the Seller and the Buyer for all purposes hereunder. If the Buyer and the Seller have not resolved all such differences by 11:59 p.m. Dallas, Texas time on the last day of such thirty (30)-day period, the Buyer and the Seller shall submit, in writing, to the Independent Accounting Firm, their briefs detailing their views as to the correct nature and amount of each item remaining in dispute and the amount of any of the Final Closing Statement Figures, as applicable, and the

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Independent Accounting Firm shall make a written determination as to each such disputed item and the amount of any of the Final Closing Statement Figures, as applicable. The Independent Accounting Firm shall be KPMG LLP or, if such firm is unable or unwilling to act, such other independent public accounting firm with an active practice area focused on post-mergers and acquisitions purchase price dispute resolution reasonably acceptable to, and as shall be agreed in writing by, the Seller and the Buyer. The Buyer and the Seller shall enter into a customary engagement letter with the Independent Accounting Firm. The Buyer and the Seller shall use their commercially reasonable efforts to cause the Independent Accounting Firm to render a written decision resolving the matters submitted to it within thirty (30) days following the submission thereof. All communications with the Independent Accounting Firm shall include at least one Representative of each of the Buyer and the Seller, and neither the Buyer nor the Seller shall be permitted to communicate with the Independent Accounting Firm other than as expressly set forth herein. The Independent Accounting Firm shall consider only those items and amounts in the Buyer's and the Seller's respective calculations of any of the Final Closing Statement Figures, as applicable, that are identified as being items and amounts to which the Buyer and the Seller have been unable to agree. The scope of the disputes to be resolved by the Independent Accounting Firm shall be limited to correcting mathematical errors, determining whether any other non-recurring specific item included in Adjusted EBITDA was included in accordance with the definition of Adjusted EBITDA, and determining whether the items and amounts in dispute were determined in accordance with the Applicable Accounting Principles and the Sample Statement, and the Independent Accounting Firm shall not be permitted to make any other determination, including any determination as to whether the Asset Jurisdiction Net Working Capital Target or Transferred Subsidiary Net Working Capital Target is correct, adequate or sufficient. In resolving any disputed item, the Independent Accounting Firm may not assign a value to any item greater than the greatest value or less than the smallest value for such item set forth on the Preliminary Closing Statement or the Final Closing Statement, as applicable. The Independent Accounting Firm's determination of any of the Final Closing Statement Figures, as applicable, shall be based solely on written materials submitted by the Buyer and the Seller (i.e., not on independent review). The determination of the Independent Accounting Firm shall be conclusive and binding upon the Seller and the Buyer and shall not be subject to appeal or further review, absent fraud or manifest error. Judgment may be entered upon the written determination of the Independent Accounting Firm in accordance with <u>Section 10.10</u>. In acting under this Agreement, the Independent Accounting Firm shall function solely as an expert and not as an arbitrator; <u>provided</u> that the Independent Accounting Firm shall have the power to conclusively resolve differences in disputed items as specified in this <u>Section 2.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The fees and expenses of the Independent Accounting Firm shall be borne by the Seller and the Buyer in inverse proportion as they may prevail on the matters resolved by the Independent Accounting Firm, which proportionate allocation shall be calculated on an aggregate basis based on the relative dollar values of the amounts in dispute and shall be determined by the Independent Accounting Firm at the time the determination of such firm is rendered on the merits of the matters submitted. The fees and disbursements of the Representatives of each of the Seller and the Buyer incurred in connection with the preparation or review of the Final Closing Statement and preparation or review of any relevant Notice of Disagreement, as applicable, shall be borne by such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;During the period from and after the date of delivery of the Final Closing Statement through the resolution of any adjustments to the Purchase Price contemplated by this <u>Section 2.10(f)</u>, each of the Buyer and the Seller will afford the other Party and its Representatives reasonable access, during normal business hours and upon reasonable prior notice, to the personnel, properties, books and records of the Business and the Company and to any other information reasonably requested for purposes of preparing and reviewing the calculations contemplated by this <u>Section 2.10</u>. Each of the Seller and the Buyer shall authorize its accountants to disclose work papers generated by such accountants in connection with preparing and reviewing the calculations specified in this <u>Section 2.10</u>; <u>provided</u> that such accountants shall not be obligated to make any work papers available except in accordance with such accountants' disclosure procedures and then only after the non-client Party has signed an agreement relating to access to such work papers in form and substance acceptable to such

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accountants. The rights of any Party shall not be prejudiced by the failure of any other Party to comply with this <u>Section 2.10(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The Purchase Price shall be adjusted, upwards or downwards, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Agreement, the "**Net Adjustment Amount**" means an amount, which may be zero, positive, or negative, equal to the difference between the Closing Purchase Price as determined pursuant to this <u>Section 2.10</u> and the Estimated Purchase Price, expressed as (A) a positive number if the Closing Purchase Price exceeds the Estimated Purchase Price, (B) a negative number if the Estimated Purchase Price exceeds the Closing Purchase Price or (C) zero if the Estimated Purchase Price equals the Closing Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;If the Net Adjustment Amount is positive, the Purchase Price shall be adjusted upwards in an amount equal to the Net Adjustment Amount, and the Buyer shall pay an amount equal to the Net Adjustment Amount by wire transfer of immediately available funds to the Seller (or to such other Person or Persons as the Seller directs in writing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;If the Net Adjustment Amount is negative (in which case the "Net Adjustment Amount" for purposes of this <u>Section 2.10(g)(iii)</u> shall be deemed to be equal to the absolute value of such amount), the Purchase Price shall be adjusted downwards in an amount equal to the Net Adjustment Amount, and the Seller shall make a payment to the Buyer in an amount equal to the Net Adjustment Amount by wire transfer of immediately available funds to the Buyer (or to such other Person or Persons as the Buyer directs in writing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;If the Net Adjustment Amount is zero, then no adjustments to the Purchase Price shall be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Payments in respect of <u>Section 2.10(g)</u> shall be made within five (5) Business Days after the date on which the Net Adjustment Amount is finally determined pursuant to the provisions of this <u>Section 2.10</u> by wire transfer of immediately available funds to such account or accounts as may be designated in writing by the Party entitled to such payment at least two (2) Business Days prior to such payment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;For the avoidance of doubt, this <u>Section 2.10</u> is not intended to be used to permit the introduction of different judgments, accounting methodologies (including with respect to accruals and reserves), policies, principals, practices, procedures or classifications for purposes of calculating amounts referred to in this <u>Section 2.10</u>, or to adjust for any inconsistencies between the Applicable Accounting Principles and the Sample Statement, on the one hand, and GAAP, on the other. In the event of a conflict between consistent application of the Applicable Accounting Principles and the Sample Statement, on the one hand, and GAAP, on the other, the Applicable Accounting Principles and the Sample Statement shall apply.

Section 2.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. Each of the Buyer and the Seller shall be entitled to deduct and withhold, or cause to be deducted and withheld, from any amounts otherwise payable pursuant to this Agreement all Taxes that are required to be deducted and withheld under any applicable provision of Law. With respect to the consideration for the Company Transferred Interests, if the Buyer determines any deduction or withholding is required under applicable Law, the Buyer shall use commercially reasonable efforts to notify the applicable payee in writing at least ten (10) Business Days prior to making any such deduction or withholding, and such notice shall include the amount of, and the basis for, such deduction and withholding. The Buyer shall consider in good faith any objections raised by the applicable payee to the imposition of such deduction or withholding and shall cooperate in good faith with the payee and use commercially reasonable efforts to mitigate or eliminate any such requirement to deduct or withhold to the extent permitted by applicable Law. All amounts deducted and withheld in accordance with this <u>Section 2.11</u> and properly paid over to the appropriate Taxing Authority shall be treated as having been paid to the

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Person in respect of whom such deduction and withholding was made, except to the extent that such deduction or withholding is with respect to consideration for the Company Transferred Interests and such deduction or withholding arises solely as a result of the Buyer or any of its Affiliates (excluding, following the Closing, any member of the Company Group) having a present or former connection with the jurisdiction imposing such deduction or withholding.

Section 2.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Japan Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions of this Agreement, on the Japan Assignment Date, the Seller shall, or shall cause the relevant Selling Affiliate to, contribute, assign, transfer, convey and deliver to the Company or another member of the Company Group designated by the Company (as applicable) all of the Seller's and its Affiliate's right, title and interest as of the time of the transfer in and to the Japan Trademarks, and the Company (or such designated Subsidiaries, as applicable) shall acquire and accept the Japan Trademarks, free and clear of all Encumbrances (other than Permitted Encumbrances). The Japan Trademarks shall, for purposes of this Agreement, be deemed a Transferred Asset as of the Japan Assignment Date, and will be deemed an Excluded Asset prior to the Japan Assignment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;From and after the Closing and the Japan Assignment Date, except (i) as otherwise expressly required or permitted by this Agreement (including, for the avoidance of doubt, with respect to the Company Transfer and the Reorganization), (ii) as set forth in <u>Schedule 5.1</u> of the Disclosure Schedules, or (iii) as required by applicable Law (including any Public Health Measure), unless the Buyer shall otherwise provide its prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), the Seller shall (and shall cause each of the Selling Affiliates and, prior to the applicable Closing, the applicable members of the Company Group to):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;use its commercially reasonable efforts to enforce, maintain and prosecute the Japan Trademarks, including the timely payment of all renewal fees due on or prior to the Japan Assignment Date, which shall be deemed Excluded Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;not sell, transfer, license, assign, mortgage, pledge, surrender, encumber, divest, cancel, abandon or allow to lapse or expire any Japan Trademark (except for (A) non-exclusive licenses granted in the Ordinary Course of Business or (B) the expiration of Intellectual Property at the end of its statutory term); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;not renew, extend or expand, or permit the renewal, extension or expansion of, the term of the Crecia License Agreement or the scope of the license granted thereunder, in each case, solely to the extent related to the Business and affecting the Business Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;On the Japan Assignment Date, the Seller shall deliver, or caused to be delivered, to the Company and the Buyer, a duly executed counterpart of the IP Assignment Agreement providing for the assignment of the Japan Trademarks to the Company (or its designated Affiliate).

**ARTICLE III <br>REPRESENTATIONS AND WARRANTIES OF THE SELLER**

Except as set forth in the Disclosure Schedules to this Agreement (collectively, the "**Disclosure Schedules**"), the Seller hereby represents and warrants to the Buyer as follows:

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization and Qualification of the Seller and the Company</u>. Each of the Seller, each Selling Affiliate and each member of the Company Group is a legal entity (a) duly organized, validly existing and (to the extent applicable) in good standing or the local equivalent under the Laws of its jurisdiction of organization, formation or incorporation, as applicable, and has all necessary corporate power and authority to own, lease and operate the Transferred Assets currently held by it and

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that will be transferred to the Company Group pursuant to the Reorganization and to carry on the Business as it is now being conducted and as is proposed to be conducted by the Company Group after the Reorganization, and (b) duly licensed or qualified to carry on the Business as it is now being conducted and as is proposed to be conducted and is in good standing (or local equivalent, if applicable) as a foreign corporation or other legal entity in each jurisdiction in which it operates the Business or where the ownership, leasing or operation of Transferred Assets requires such qualification or licensing, except where the failure to be so qualified or licensed would not, individually or in the aggregate, reasonably be expected to materially adversely affect the ability of any member of the Company Group to own, lease or operate the Transferred Assets currently held by it or to carry on the Business as it is currently being conducted or as is proposed to be conducted.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Authority</u>. Each of the Seller, each Selling Affiliate and the Company has all the necessary corporate power and authority to execute and deliver this Agreement, the Company Transfer Agreements or the Ancillary Agreements to which it will be a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby (including the Reorganization) and thereby. The execution, delivery and performance by the Seller, each Selling Affiliate and the Company of this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party and the consummation by the Seller, each Selling Affiliate and the Company of the transactions contemplated hereby (including the Reorganization) and thereby have been duly and validly authorized by all necessary corporate action on the part of the Seller, each Selling Affiliate and the Company, and no other corporate proceedings on the part of the Seller, each Selling Affiliate and the Company are necessary to authorize this Agreement, the Company Transfer Agreements or the Ancillary Agreements or to consummate the transactions contemplated hereby (including the Reorganization) and thereby. This Agreement has been, and each of the Company Transfer Agreements and Ancillary Agreements at the Closing will be, duly executed and delivered by the Seller, each Selling Affiliate party thereto and the Company and, assuming due execution and delivery by each of the other parties hereto and thereto, constitutes the legal, valid and binding obligation of the Seller, such Selling Affiliate or the Company, enforceable against the Seller, such Selling Affiliate or the Company in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law) (such limitations, the "**Enforceability Exceptions**").

Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>No Conflict; Required Filings and Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by the Seller, each Selling Affiliate and the Company of this Agreement, each of the Company Transfer Agreements and each of the Ancillary Agreements to which it will be a party, and the consummation of the transactions contemplated hereby (including the Reorganization) and thereby do not and will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;conflict with or violate the Organizational Documents of (A) the Seller, such Selling Affiliate or the Company, or (B) any other member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;conflict with or violate any Law applicable to the Seller, such Selling Affiliate, member of the Company Group, the Business, or any of the Transferred Assets or by which the Seller, such Selling Affiliate, member of the Company Group, the Business, or any of the Transferred Assets may be bound or affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;conflict with, result in any breach of, constitute a default (or an event that, with or without notice or lapse of time or both, would become a default) under, or require any consent of any Person pursuant to, result in the triggering of any payment or other obligation or loss of any right or benefit under, or give to others any right of termination, amendment, modification, acceleration or cancellation under, any Material Contract, Lease or any Contract encumbering any Owned Real Property; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;result in the creation or imposition of any Encumbrance (other than Permitted Encumbrances) upon any of the Transferred Assets;

except, in the case of <u>clause (i)(B)</u>, <u>(ii)</u>, <u>(iii)</u> or <u>(iv)</u>, for any such conflicts, violations, breaches, defaults or other occurrences that would not, individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole, or prevent, materially delay or materially impede the performance by the Seller, each Selling Affiliate and the Company of its obligations under this Agreement, each of the Company Transfer Agreements and each of the Ancillary Agreements to which it will be a party or the consummation of the transactions contemplated hereby and thereby, or that arise as a result of any facts or circumstances solely relating to the Buyer or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;None of the Seller, any Selling Affiliate, or any member of the Company Group is required to file, seek or obtain any notice, authorization, approval, order, permit or consent of or with any Governmental Authority in connection with the execution, delivery and performance by the Seller, any Selling Affiliate or the Company of this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party, or the consummation of the transactions contemplated hereby (including the Reorganization) and thereby, except (i) for any filings required to be made under the applicable requirements of Antitrust Laws or other competition Laws of jurisdictions other than the United States ("**Foreign Antitrust Laws**") or Foreign Investment Laws, (ii) where failure to obtain such consent, approval, authorization or action, or to make such filing or notification, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or prevent, materially delay or materially impede the performance by the Seller, each Selling Affiliate and each member of the Company Group of its obligations under this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party or the consummation of the transactions contemplated hereby or (iii) as arise as a result of any facts or circumstances solely relating to the participation of the Buyer or any of its Affiliates (as opposed to any third party) in the transactions contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements.

Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Title to Transferred Assets; Sufficiency of Assets; Company Interests and Purchased Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and the Ancillary Agreements shall be adequate and sufficient to transfer to the Company Group the Seller's or the relevant Selling Affiliate's entire right, title and interest in and to all the Transferred Assets, subject to <u>Section 2.5</u>, <u>Section 5.13</u> and <u>Section 5.14</u>. Except as set forth in <u>Schedule 3.4(a)</u> of the Disclosure Schedules, the Seller or relevant Selling Affiliate has, and following the Reorganization at the Closing the Company Group will have, good, marketable and valid title to, or a valid and enforceable license in, all tangible Transferred Assets, free and clear of any Encumbrance other than Permitted Encumbrances. All tangible Transferred Assets owned, licensed, used or leased by the Seller, a Selling Affiliate or a member of the Company Group with respect to the Business have been maintained in accordance with generally accepted industry practice in all material respects, are in all material respects in good operating condition and repair, ordinary wear and tear excepted, and are adequate in all material respects for the uses to which they are currently being put.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Transferred Assets and the assets, rights, and properties of the Transferred Subsidiaries, when taken together with (x) the services provided by the Seller or one of its Subsidiaries under the Transition Services Agreement (subject to the terms thereof), (y) the rights licensed or made available under any other Ancillary Agreement and (z) any Comingled Contracts, (i) constitute all of the assets, properties and rights necessary to conduct the Business in all material respects as currently conducted by the Seller as of the date hereof, and (ii) assuming the consummation of the transactions contemplated by <u>Section 5.22(c</u>) in connection with any Potentially Delayed Jurisdiction, are sufficient in all material respects to permit the Company Group to conduct the Business immediately following the Closing in substantially the same manner as conducted by the Seller as of the date hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and the Local Share Transfer Agreements shall be adequate and sufficient to transfer to the Company, the Seller's and its Affiliates' entire right, title and interest in and to the Purchased Shares, free and clear of all Encumbrances (other than restrictions on transfer under applicable securities Laws). This Agreement and the Notarial Deed of Sale and Transfer shall be adequate and sufficient to transfer to the Buyer, the Seller's and its Affiliates' entire right, title and interest in and to the Company Transferred Interests, free and clear of all Encumbrances (other than restrictions on transfer under applicable securities Laws). Immediately upon the consummation of the Reorganization, the Seller will have the power, authority and right to transfer the legal and beneficial title and ownership of the Purchased Shares. As of immediately prior to the Closing Date, the Seller or one or more of the Selling Affiliates will be the sole legal and beneficial owner of the Purchased Shares, the Company Transferred Interests and the Company Group Equity Interests, and upon delivery by the Seller or such Selling Affiliate of the Purchased Shares, the Company Transferred Interests and the Company Group Equity Interests at the Closing, good, valid and marketable title to the Purchased Shares, the Company Transferred Interests and the Company Group Equity Interests, free and clear of all Encumbrances (other than restrictions on transfer under the applicable securities Laws), shall pass to the Company, the Buyer or the Buyer Designees, as applicable. The Purchased Shares have been, and the Company Interests and the Company Group Equity Interests will each be, duly authorized and validly issued in compliance with all applicable Laws, fully paid and non-assessable and the Purchased Shares were not, and the Company Interests and the Company Group Equity Interests will not be, issued in violation of any preemptive or subscription rights or similar rights. The Purchased Shares represent and, together with the Company Interests and the Company Group Equity Interests, shall represent all of the issued and outstanding Equity Interests of each member of the Company Group (respectively) and there are no and shall be no other Equity Interests issued or outstanding of any member of the Company Group, and there are no and shall be no preemptive or other outstanding rights, subscriptions, options, warrants, stock appreciation rights, conversion rights, redemption rights, repurchase rights, agreements, arrangements or commitments under which the Seller, its Affiliates or any member of the Company Group is or may become obligated to issue or sell, or in any way dispose of, any Equity Interests of any member of the Company Group, or any securities or obligations convertible, exercisable, or exchangeable securities or other Equity Interests in any member of the Company Group or any other securities or obligations convertible or exchangeable into or exercisable for, or giving any Person a right to subscribe for or acquire, any Equity Interests of any member of the Company Group, or any "tag-along," "drag-along" or similar rights with respect to any Equity Interests of any member of the Company Group, and no securities or obligations evidencing such rights are authorized, issued or outstanding. No member of the Company Group has any outstanding bonds, debentures, notes or other obligations that provide the holders thereof the right to vote (or are convertible or exchangeable into or exercisable for securities having the right to vote) with the shareholder of any member of the Company Group on any matter. None of the Purchased Shares, the Company Transferred Interests or the Company Group Equity Interests are subject to any voting trust agreement, shareholders agreement or other Contract restricting or otherwise relating to the voting, dividend rights or disposition of such Purchased Shares, Company Transferred Interests or Company Group Equity Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Each member of the Company Group that is not a Transferred Subsidiary was or will be formed solely for the purpose of engaging in the transactions contemplated hereby (including the Reorganization), has no Liabilities of any nature other than those incident to its formation and pursuant to the transactions contemplated hereby (including the Reorganization), and prior to the Closing, will not have engaged in any other business activities other than those relating exclusively to the transactions contemplated hereby or other necessary formation or organizational actions. No member of the Company Group owns, directly or indirectly, any capital stock or other Equity Interests of any Person (other than another member of the Company Group) or has any direct or indirect equity or ownership interest in any business, or is a member of or participant in any partnership, joint venture or similar Person. The Seller has made available prior to the date hereof, or, with respect to any Organizational Documents created, modified or amended following the date hereof, shall make available, to the Buyer true, correct and complete copies of the Organizational Documents of each member of the Company Group, each as

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amended, and each as so made available is or shall be in full force and effect. No member of the Company Group is in violation in any material respect of any provisions of its Organizational Documents.

Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;True, correct and complete copies of (i) the unaudited statements of net assets of the Business as at December 31, 2024 (the "**Statement of Net Assets**") and December 31, 2023 and (ii) the related statements of income of the Business for the fiscal years ended December 31, 2024 and December 31, 2023 and for the fiscal quarter ended March 31, 2025 (collectively referred to as the "**Financial Statements**") are attached as <u>Schedule 3.5</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each of the Financial Statements (i) has been prepared by the Seller in accordance and consistent with, and were derived from, the books and records of the Seller and the Selling Affiliates pertaining to the Business, (ii) has been prepared in accordance with GAAP, applied in all material respects on a consistent basis with past practices of the Seller throughout the periods indicated, except as otherwise noted therein, and (iii) fairly presents, in all material respects, the financial position and results of operations of the Business as at the respective dates thereof and for the respective periods indicated therein, except that such Financial Statements reflect the Business on an estimated stand-alone basis and are not necessarily indicative of the financial position and results of operations of the Business that would have resulted if the Business had been operated on a stand-alone basis during such periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Seller, the Selling Affiliates and each member of the Company Group maintain and have maintained for all periods covered by the Financial Statements, internal accounting controls sufficient in all material respects to provide reasonable assurance regarding the reliability of the Seller's, the Selling Affiliates' and each member of the Company Group's financial reporting and the preparation of the Financial Statements in accordance with GAAP. Since the Lookback Date, none of the Seller or its Subsidiaries or, to the Knowledge of the Seller, any Representative of the Seller or any its Subsidiaries has received in writing any complaint, allegation, assertion or claim regarding any material deficiency in the accounting or auditing practices, procedures, methodologies, methods or controls (including internal accounting controls) of the Seller, the Selling Affiliates or the members of the Company Group, or any complaint, allegation, assertion or claim that any of the Seller, the Selling Affiliates or members of the Company Group has engaged in questionable accounting or auditing practices or fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as would not reasonably be expected to, individually or in the aggregate, be material to the Business taken as a whole, all Inventory, whether or not reflected in the Financial Statements, is in good and merchantable condition, is suitable and usable for the purposes for which it is intended and is in a condition such that it can be sold in the Ordinary Course of Business, net of any respective reserve set forth in the Financial Statements, except for obsolete items and items of below-standard quality, all of which have been written-off or written-down to net realizable value on the Financial Statements, and (ii) no Inventory is held on a consignment basis.

Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>No Undisclosed Liabilities</u>. There are no Liabilities of the Business or the Company Group, other than any such Liabilities (i) reflected or reserved against on the Financial Statements or the notes thereto, (ii) incurred since the date of the Statement of Net Assets in the Ordinary Course of Business, (iii) that would not, individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole, or (iv) that are incurred in connection with the transactions contemplated hereby or the announcement, negotiation, execution or performance of this Agreement, the Company Transfer Agreements or the Ancillary Agreements.

Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Absence of Certain Changes or Events</u>. Since the date of the Statement of Net Assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;there has not occurred any Material Adverse Effect; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;other than the negotiations related to a sale of the Business (including, for the avoidance of doubt, the Reorganization), the Business has operated in the Ordinary Course of Business in all material respects and the Seller, the Selling Affiliates and members of the Company Group have not, individually or collectively, taken any action or inaction that would have required the consent of Buyer or any Buyer Designee pursuant to <u>Section 5.1(b)</u> had such action or inaction been taken from and after the date hereof until the earlier of the Closing Date or the termination of this Agreement in accordance with its terms.

Section 3.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Law; Business Permits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Business and the Transferred Assets are being conducted, operated, used or owned (as applicable), and since the Lookback Date have been conducted, operated, used or owned (as applicable), in compliance with all Laws applicable to the conduct or operation of the Business or the ownership or use of the Transferred Assets in all material respects, and since the Lookback Date, neither the Business nor any Transferred Assets has been in violation or default in any material respect of any such Law, nor has the Seller, any of the Selling Affiliates or any member of the Company Group been in such violation or default, nor has the Seller or any of its Subsidiaries received any written notice of any such violation or default at any time since the Lookback Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Seller and, as applicable, each Selling Affiliate and each Transferred Subsidiary is currently in possession of, and at the Closing each other member of the Company Group will possess, all material Permits necessary for it to lawfully own, lease and operate the Transferred Assets and to carry on the Business as currently conducted and proposed to be conducted by the Company under this Agreement and the Ancillary Agreements (the "**Business Permits**"). <u>Schedule 3.8(b)</u> of the Disclosure Schedules sets forth, as of the date hereof, all material Environmental Permits and all material Permits required for the manufacture of any products of the Business. All of the Business Permits are valid and in full force and effect in all material respects. Since the Lookback Date, neither the Seller nor any of its Subsidiaries has received any written notice of, and neither Seller nor any of its Subsidiaries is under investigation with respect to, any material violation of any Business Permits. Except as would not, individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole, (i) none of the Seller, the Selling Affiliates or the members of the Company Group is in default or violation of any Business Permit and (ii) to the Knowledge of the Seller, no event or circumstance has occurred which would reasonably be expected to result in the early termination, revocation or material adverse modification of any Business Permit. With respect to the Seller, its Affiliates and the Transferred Subsidiaries, there is no Action pending or, to the Knowledge of the Seller, threatened by any Governmental Authority to cancel, revoke, suspend, modify or fail to renew any such Business Permit where such cancellation, revocation, suspension, modification or failure to renew would, individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Seller, each Selling Affiliate, each member of the Company Group, the Business and each of the Transferred Assets, and, to the Knowledge of the Seller, all Persons acting on behalf of the Seller, the Selling Affiliates, members of the Company Group and the Business (i) are not Sanctioned Persons and (ii) have operated the Business at all times in the past five (5) years in material compliance with all applicable Anti-Corruption Laws, Sanctions Laws and Export Control Laws. To the Knowledge of the Seller, none of the Selling Affiliates, members of the Company Group, the Business or any Transferred Asset is the subject of any allegation, deficiency notice, voluntary disclosure, investigation, prosecution, subpoena, or other enforcement action related to any Anti-Corruption Laws, Sanctions Laws or Export Control Laws.

Section 3.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Litigation</u>. There is no Action by or against the Seller, any Selling Affiliates or any member of the Company Group in connection with the Business, Transferred Assets or Assumed Liabilities pending, or threatened in writing, that would, (i) individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole, (ii) prevent, materially delay or materially impede the performance by the Seller, each Selling Affiliate and each member of the Company Group of

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its obligations under this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party or the consummation of the transactions contemplated hereby (including the Reorganization) or thereby or (iii) affect the legality, validity or enforceability of this Agreement or the consummation of the transactions contemplated hereby (including the Reorganization). Each of the Seller, any Selling Affiliates and members of the Company Group is not subject to or a party to any Law of any Governmental Authority (whether temporary, preliminary or permanent) enacted, issued, promulgated, enforced or entered by any Governmental Authority that enjoins, restrains, makes illegal or otherwise prohibits the consummation of the transactions contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party. As of the date hereof, neither the members of the Company Group nor any of the Transferred Assets are subject to any material continuing order of, settlement agreement or other similar written agreement with, or, to the Knowledge of the Seller, continuing investigation by, any Governmental Authority.

Section 3.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Employee Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule 3.10(a)</u> of the Disclosure Schedules lists each material Business Employee Plan and separately identifies each Transferred Subsidiary Plan. For each material Business Employee Plan, the Seller has made available to the Buyer true and complete summaries of the material terms of each such Business Employee Plan. For each material Business Employee Plan, the Seller has made available to the Buyer a copy of such plan and all material amendments thereto. For each material Business Employee Plan that is an Assumed Plan or Transferred Subsidiary Plan, the Seller has additionally made available to the Buyer (i) each trust, insurance, annuity or other funding contract related thereto, (ii) the most recent summary plan description and (iii) the most recent financial statements and actuarial or other valuation reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;With respect to the Business Employee Plans, except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or otherwise materially impair the operation of the Business: (i) no event has occurred and, to the Knowledge of the Seller, there exists no condition or set of circumstances in connection with which the Seller or any of its Affiliates would reasonably be expected to incur any liability under the applicable Law; (ii) to the Knowledge of the Seller, each of the Business Employee Plans has been established, funded, operated and administered in accordance with its terms and applicable Law; (iii) all employer and employee contributions to each Assumed Plan and Transferred Subsidiary Plan required by Law or by the terms of such plan have been timely made or, if applicable, accrued in accordance with normal accounting practices; and (iv) each Business Employee Plan required to be registered has been registered and has been maintained in good standing with applicable regulatory authorities. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Schedule 3.10(c)</u> of the Disclosure Schedules, no Business Employee Plan is, and no member of the Company Group maintains, sponsors, contributes to, has any obligation to contribute to, or otherwise has any liability under or with respect to any (i) "multiemployer plan" (as defined in Section 3(37) of ERISA) or (ii) plan that is subject to Section 302 or Title IV of ERISA or Section 412 of the Code or is otherwise as defined benefit plan (as defined in Section 414 of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;No Business Employee Plan provides any post-retirement medical or life insurance benefits to any Business Employee (other than coverage mandated by applicable Law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or otherwise materially impair the operation of the Business, (i) there are no pending or threatened in writing Actions concerning the Business Employee Plans and (ii) there are no audit, inquiries or proceedings pending or threatened in writing by any Governmental Authority with respect to the Business Employee Plans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Schedule 3.10(f)</u> of the Disclosure Schedules, neither the execution of this Agreement nor the consummations of the transactions contemplated hereby (either alone or together with any other event) will (i) entitle any current or former Business Employee or any other current or former individual service provider of the Business to any material payment or benefit, (ii) accelerate the time of payment or vesting, trigger any material payment or funding or increase the amount of compensation or benefits due to any current or former Business Employee or any other current or former individual service provider of the Business (or any dependent or beneficiary thereof), (iii) restrict or limit the ability of any member of the Company Group to administer, amend or terminate any Business Employee Plan, or (iv) result in any payments or benefits that, individually or in combination with any other payment or benefit, could constitute an "excess parachute payment" (within the meaning of Section 280G of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;No current or former Business Employee or any other current or former individual service provider of the Business is entitled to be indemnified, grossed-up, reimbursed or otherwise made whole for any Taxes, including under Section 409A, 457A or 4999 of the Code.

Section 3.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Labor and Employment Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Schedule 3.11(a)</u> of the Disclosure Schedules, the Seller and its Affiliates are not a party to or bound by (i) any labor or collective bargaining, trade union or other labor Contract with any union, works council, labor organization or other employee representative, other than any sector or industry level collective bargaining agreements (each, a "**CBA**"), that pertains to any Business Employees or (ii) any employee leasing professional employer organization or similar arrangement (each, a "**PEO Agreement**") that pertains to any Business Employees. Since the Lookback Date, there has been no pending or threatened in writing (A) labor strike, slowdown, lockout, stoppage or union organizing effort with respect to the Business Employees or the Business or (B) material labor dispute, grievance or similar material proceeding with respect to the Business Employees or the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Schedule 3.11(b)</u> of the Disclosure Schedules, there are no pre-signing notice or consultation obligations to any labor union, labor organization or works council that represents any Business Employee in connection with the execution of this Agreement or consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Since the Lookback Date with respect to the Business and the Business Employees, the Seller and its Affiliates have been in compliance with all applicable Laws relating to labor and employment, including those relating to labor management relations, wages, hours, working time, overtime, discrimination, harassment, civil rights, affirmative action, work authorization, immigration, collective bargaining, information and consultation, classification of independent contractors and employees, the collection and payment of withholding or social security Taxes and safety and health and welfare, except for failures to comply that have not and would not, individually or in the aggregate, reasonably be expected result in a material Liability to the Business or otherwise materially impair the operation of the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Seller has made available to the Buyer accurate and up-to-date examples of pro forma contracts of employment and statements of terms and conditions, and each Business Employee is employed under a contract of employment that is in substantially the same form as such pro forma contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Seller has made available a list (which may be anonymized to the extent necessary to comply with applicable data privacy Laws) setting forth the following for each Business Employee as of the date of this Agreement: name or employee identification number; title; job location; employing entity; hire date; full- or part-time status; active or on leave status (and, if on leave, the nature of the leave and the expected return date); annual salary or wage rate; most recent annual bonus

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received; and current annual bonus opportunity. The Seller shall promptly update such list upon reasonable request by the Buyer from time to time following the date of this Agreement and, fifteen (15) Business Days prior to the Closing Date, Seller will provide the Buyer with a revised version of such list that is updated as of such date (or as of such nearest earlier date as may be reasonably practicable), with such revised version of such list to additionally include accrued but not used vacation or paid time off for each Business Employee. There are a sufficient number of Business Employees to operate the Business in all material respects in the manner in which it is currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Schedule 3.11(f)</u> of the Disclosure Schedules or as otherwise required by applicable Law, there are no Business Employees who are party to a Contract, agreement or arrangement with the Seller or its Affiliates that restricts such Business Employee's employment from being terminated at any time or that entitles such Business Employee to a severance, termination or similar payment from such Business Employee's employing entity in excess of 100% of such Business Employee's annual base salary or annual base wages.

Section 3.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. <u>Schedule 3.12</u> of the Disclosure Schedules sets forth a true, correct and complete list of all insurance policies of the Seller and its Affiliates that cover the Business, the Transferred Assets or the Assumed Liabilities and an asterisk denoting which policies constitute Seller Occurrence-Based Insurance Policies, copies of which have been provided to the Buyer. All such insurance policies are in full force and effect and all premiums with respect thereto have been paid in full in accordance with the terms of such policy. No notice of cancellation or termination has been received in writing by the Seller, any Subsidiary of the Seller or any member of the Company Group with respect to any such insurance policies. No claim with respect to the Business, the Transferred Subsidiaries or the Transferred Assets is currently pending under any such policy involving an amount in excess of $1,000,000. To the Knowledge of the Seller, the Seller, the Selling Affiliates and each member of the Company Group have taken all actions under its Seller Occurrence-Based Insurance Policies to ensure that all material insurable risks of the Seller, the Selling Affiliates and each member of the Company Group related to the Business are and will be covered by such policies. 

Section 3.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Real Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule 3.13(a)</u> of the Disclosure Schedules sets forth the correct and complete address and applicable title registry number or tax assessor's parcel number (or its equivalent for each parcel) of each Owned Real Property (together with the Leased Real Property, the "**Real Property**"). With respect to each Owned Real Property: (i) each Transferred Subsidiary, the Seller or each Selling Affiliate (as the case may be) has, and following the Reorganization at the Closing the Company Group will have, good and marketable indefeasible fee simple title to such Owned Real Property, free and clear of all Encumbrances, except Permitted Encumbrances; (ii) except as set forth in <u>Schedule 3.13(a)</u> of the Disclosure Schedules, each member of the Company Group, the Seller and each Selling Affiliate (as the case may be) has not leased or otherwise granted to any Person the right to use or occupy such Owned Real Property or any portion thereof; and (iii) other than the right of the Buyer pursuant to this Agreement or as expressly set forth in <u>Schedule 5.15</u> of the Disclosure Schedules with respect to the Reorganization, there are no outstanding options, rights of first offer or rights of first refusal to purchase such Owned Real Property or any portion thereof or interest therein. None of the Seller, any of its Subsidiaries or any member of the Company Group is a party to any agreement or option to purchase any real property or interest therein related to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule 3.13(b)</u> of the Disclosure Schedules sets forth the address of each Leased Real Property and a true and complete list of all Leases for each such Leased Real Property (including the date and name of the parties to such Lease document). The Seller has delivered to the Buyer a true and complete copy of each such Lease document (including all amendments, extensions, renewals, guaranties and other agreements with respect thereto). Except as set forth in <u>Schedule 3.13(b)</u> of the Disclosure Schedules, with respect to each of the Leases: (i) such Lease is legal, valid, binding, enforceable and in full force and effect and the applicable member of the Company Group has a valid

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leasehold interest in such Leased Real Property free of Encumbrances other than Permitted Encumbrances; (ii) each member of the Company Group's, the Seller's, and each Selling Affiliates' (as the case may be) possession and quiet enjoyment of the Leased Real Property under such Lease has not been disturbed, and to the Knowledge of the Seller, there are no disputes with respect to such Lease; (iii) none of the members of the Company Group, the Seller, the Selling Affiliates (as the case may be) or any other party to the Lease is in breach or default under such Lease, and no event has occurred or circumstance exists which, with the delivery of notice, the passage of time or both, would constitute such a breach or default, or permit the termination, modification or acceleration of rent under such Lease; (iv) no event or circumstance exists that, with or without notice or lapse of time, or both, would constitute a default by any counterparty to any such Lease; and (v) none of the members of the Company Group, the Seller, or the Selling Affiliates (as the case may be) have subleased, licensed or otherwise granted any Person the right to use or occupy such Leased Real Property or any portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or otherwise materially impair the operation of the Business, the Real Property and the improvements thereon are free of damage or defects (other than damage that has been repaired) and otherwise in suitable operating condition for the Business as currently conducted in the Ordinary Course of Business. The Real Property constitutes all the real property necessary and sufficient to continue to operate the Business substantially in the same manner as conducted by the Seller up to the date hereof, in accordance with the Ordinary Course of Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Agreement, to the Knowledge of the Seller, there are no pending or threatened in writing Actions or orders relating to the Real Property, including condemnation proceedings or eminent domain proceedings, or other matters that could be reasonably expected to materially adversely affect the current use, occupancy, or value of the Real Property.

Section 3.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule 3.14(a)</u> of the Disclosure Schedules sets forth a true and complete list as of the date hereof of all (i) patents and patent applications, (ii) registered trademarks and registered service marks and applications to register any trademarks and service marks, (iii) registered copyrights, (iv) internet domain names, in each case that constitutes Business Intellectual Property (other than, in each case, Licensed Intellectual Property) (clauses <u>(i)</u> through <u>(iv)</u>, the "**Business Registered Intellectual Property**"). Except as set forth on <u>Schedule 3.14(a)</u> of the Disclosure Schedules, each item of Business Registered Intellectual Property (other than applications included in the Business Registered Intellectual Property) is subsisting, valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Seller, a Selling Affiliate or a member of the Company Group solely and exclusively own all Business Intellectual Property (other than the Sublicensed Patents), free and clear of all Encumbrances, other than Permitted Encumbrances. The Business Intellectual Property, together with the rights provided pursuant to the Transferred Contracts or the Comingled Contracts, the services and rights made available to the Buyer under the Transition Services Agreement and the Intellectual Property Ancillary Agreements, constitute all Intellectual Property (other than the Japan Trademarks) used in or necessary for the operation of the Business as currently conducted, in all material respects. Immediately after the Closing, the Company Group will be able to exploit the Business Intellectual Property (other than the Japan Trademarks) in materially the same manner as Seller, its Affiliates, and the Company Group were able to exploit such Business Intellectual Property immediately prior to the Closing, subject to the terms and conditions of the Intellectual Property Ancillary Agreements. Immediately after the Japan Assignment Date, the Company Group will be able to exploit the Japan Trademarks in materially the same manner as the Seller and its Affiliates would have been able to exploit the Japan Trademarks immediately prior to the Japan Assignment Date (without giving effect to the Crecia License Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No claim has been asserted before any Governmental Authority (which, for the purposes of this <u>Section 3.14(b)</u>, includes national or supra-national intellectual property offices and

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registries) that the use or exploitation by the Seller, any Selling Affiliate or any member of the Company Group of any Business Intellectual Property as of the date hereof infringes, misappropriates or violates the Intellectual Property of any third party in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business, neither the conduct of the Business nor any of the Business Intellectual Property has in the last six (6) years infringed, misappropriated or violated, or infringes, misappropriates or violates, any Intellectual Property rights of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business, no third party is infringing, misappropriating or otherwise violating, or has in the last six (6) years infringed, misappropriated or otherwise violated, the Business Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business, all Proprietary Information used in the operation of the Business has been kept confidential and has not been disclosed to third parties except in the Ordinary Course of Business and subject to written confidentiality obligations from the third party (or otherwise subject to ethical obligations to keep such information confidential), and such third-party confidentiality obligations have not been breached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business, each current and former employee and consultant of the Seller and Selling Affiliates who has contributed to the creation or development of Intellectual Property for or on behalf of the Business has executed a valid written agreement irrevocably (i) assigning to the Seller, a Selling Affiliate, or a member of the Company Group all right, title and interest in and to all such Intellectual Property (except where ownership of such Intellectual Property vests in the Seller, a Selling Affiliate or a member of the Company Group by operation of Law) and (ii) waiving in favor of the Seller, a Selling Affiliate or the Company Group, to the extent permissible under applicable Law, all non-assignable rights such Person possesses in Copyrights included within such Intellectual Property. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;None of the Seller or any Selling Affiliate, with respect to the Business, or any member of the Company Group has experienced any material security breach or unauthorized access or use of any Transferred Computer System or other IT System that resulted in unauthorized access to, or unauthorized use or disclosure of, any Personal Information or material confidential Business Data. None of the Seller, any Selling Affiliate or any member of the Company Group has been required to send a notification to any affected individuals under any applicable Laws for such breaches or incidents, except, in each case, that would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or have a material adverse effect on the operation of the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or have a material adverse effect on the operation of the Business, (i) the Seller, each Selling Affiliate and each member of the Company Group has taken commercially reasonable measures designed to protect the security of the Transferred Computer Systems and (ii) such systems are free from viruses, worms, trojan horses and other known contaminants that could reasonably be expected to disrupt, disable or harm such systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or have a material adverse effect on the operation of the Business, the Business has not distributed any Open Source Software incorporated in any Software owned or purported to be owned by Seller, a Selling Affiliate, or the Company Group in a manner that would (i) require the Company Group to make available, disclose or distribute the source code for any such Software, (ii) require the Company Group to license any such software with the permission to create

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derivative works, or (iii) require the Company Group to grant permission to create modifications to or derivative works of any such Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or have a material adverse effect on the operation of the Business, the Seller and each Selling Affiliate, with respect to the Business, and each member of the Company Group has, since the Lookback Date, complied in all material respects with Applicable Data Protection Requirements. Since the Lookback Date and no Person (including any Governmental Authority) has made any claim or commenced any action against the Seller or any Selling Affiliate, with respect to the Business, or any member of the Company Group with respect to alleged violations of Applicable Data Protection Requirements. Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or have a material adverse effect on the operation of the Business, neither the execution, delivery or performance of this Agreement, nor the consummation of the transactions contemplated hereby (including the transfer to the Buyer of Personal Information and Business Data hereunder and continued processing of such Personal Information and Business Data by the Buyer following the Closing in substantially the same manner in which the Personal Information and Business Data are processed prior to the Closing) will result in any material violation of Applicable Data Protection Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;The Seller, each Selling Affiliate and each member of the Company Group have implemented reasonable technical, physical, administrative, and operational measures designed (i) to secure Personal Information and material Business Data within its custody or control from compromise of confidentiality, integrity, availability or security and (ii) to ensure the continued operation of the IT Systems, including employing reasonable maintenance, disaster recovery, redundancy, backup, and virus or malicious device scanning/protection measures. Except as would not, individually or in the aggregate, reasonably be expected to result in a material Liability to the Business or otherwise materially impair the operation of the Business, there is not currently pending, and there has not been since the Lookback Date, any allegation made in writing to the Seller or any Selling Affiliate, with respect to the Business, or any member of the Company Group, of a material deficiency in or failure to meet any of the technical, physical, administrative, and operational measures described above.

Section 3.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes</u>. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All material Returns required to be filed by (i) Seller or its Subsidiaries with respect to the Transferred Assets or the Business and (ii) members of the Company Group have, in each case, been timely filed (taking into account extensions), and such Returns (in the case of the preceding clause (i), to the extent pertaining to the Transferred Assets or the Business) are true, correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Whether or not shown on such Returns described in <u>Section 3.15(a)</u>, all material Taxes owed by (i) Seller or its Subsidiaries with respect to the Transferred Assets or the Business and (ii) members of the Company Group have, in each case, been paid, except for any such Taxes being contested in good faith or for which reserves have been set aside in the Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;There are no Encumbrances on the assets of any member of the Company Group for material Taxes (other than Permitted Encumbrances).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;No member of the Company Group has waived or agreed to extend any statute of limitations pertaining to any material Taxes, which waiver or extension remains outstanding, or has been granted any extension of time outside the Ordinary Course of Business for filing any material Return that has not since been filed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;No audits, investigations, suits, claims, actions or administrative or judicial proceedings are pending or being conducted (or have been threatened in writing) with respect to material Taxes of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;No written claim has been made by a Taxing Authority in a jurisdiction where members of the Company Group do not file Returns alleging that it is subject to taxation by that jurisdiction, which claim has not been satisfied, withdrawn or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;No member of the Company Group is or has ever been a member of an affiliated group within the meaning of Section 1504(a) of the Code (or any similar group defined under a similar provision of state, local, or foreign Law) filing a consolidated Income Tax Return, nor does any member of the Company Group have any liability for the Taxes of any Person under Treasury Regulations Section 1.1502-6 or any analogous or similar provision of Law, by Contract (except for any commercial Contract entered into in the Ordinary Course of Business the primary purpose of which is not Taxes), or as a transferee or successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;No member of the Company Group will be required to include any material item of income in, or exclude any material item of deduction from, taxable income for any taxable period (or portion thereof) beginning after the Closing Date as a result of any: (i) change in method of accounting for a taxable period ending on or prior to the Closing Date made prior to the Closing; (ii) use of an improper method of accounting for a taxable period ending on or prior to the Closing Date; (iii) final determination by any Taxing Authority following the settlement of any audit, examination, or other proceeding entered into prior to the Closing; (iv) installment sale or open transaction disposition made prior to the Closing; or (v) deferred revenue or prepaid amount received outside the Ordinary Course of Business prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;To the knowledge of the Seller, (i) the current or expected status and characteristics of (and/or the characterization, classification or treatment of any member of the Company Group by) the Seller and its Affiliates (other than the members of the Company Group) are not expected to result in any payment made or expected to be made by any member of the Company Group after the Closing Date being treated as not deductible in computing the income or net profits for Tax purposes of any member of the Company Group and (ii) neither the Seller nor any of its Affiliates (other than any member of the Company Group) is or is expected to become a party to a structured arrangement (as defined in the Anti-Hybrid Mismatch Directive or applicable Anti-Hybrid Mismatch Rules) or a transaction or arrangement which forms part of a series of transactions or arrangements that includes or gives rise to a "relevant mismatch" (as defined in section 259KA of the United Kingdom's Taxation (International and Other Provisions) Act 2010), or an equivalent hybrid mismatch arising under the Anti-Hybrid Mismatch Rules implemented in another jurisdiction, in each case that it is reasonable to suppose would not otherwise be subject to counteraction under the applicable Anti-Hybrid Mismatch Rules, and which is expected to result in any payment made or expected to be made by any member of the Company Group after the Closing Date being treated as not deductible in computing the income or net profits for Tax purposes of any member of the Company Group, in each case of clauses (i) and (ii), as a result of the application of the Anti-Hybrid Mismatch Rules.

Section 3.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;each of the Seller, its Subsidiaries and the members of the Company Group is not, and since the Lookback Date has not, violated any Environmental Law that was in effect as of such violation, as applicable to the conduct or operation of the Business or the ownership or use of the Transferred Assets, and has obtained and currently is, and have been since the Lookback Date, in

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compliance with all Environmental Permits required for the operation of the Business as presently conducted and the ownership or use of the Transferred Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;there are no written claims or notices or Actions alleging violation of or Liability pursuant to any Environmental Law pending or, to the Knowledge of the Seller threatened against the Seller, any Subsidiary of the Seller or any member of the Company Group related to the conduct or operation of the Business or the ownership or use of the Transferred Assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;there has been no Release of any Hazardous Material by any of the Seller, any Selling Affiliate or any member of the Company Group at, on, under, or from any Owned Real Property or Leased Real Property in quantities or concentrations that are required to be investigated or remediated by any of the Seller, any Selling Affiliate or any member of the Company Group or has resulted or would reasonably be expected to result in any violation of or Liability under applicable Environmental Laws in effect as of the date of such violation or the incurrence of such Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Seller has made available prior to the date hereof to the Buyer copies of all material environmental reports prepared in the last three (3) years relating to the Company's Owned Real Property or Leased Real Property that are in Seller's, Selling Affiliates' or a member of the Company Group's possession.

Section 3.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Products</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole, (i) there is no, and since the Lookback Date there has not been any, product liability Action pending or threatened in writing that relates to the Business or any products of the Business, (ii) since the Lookback Date there has been no accident or circumstances involving personal injury that would reasonably be expected to lead to a product liability claim against the Seller or its Subsidiaries related to the Business or any products of the Business, and (iii) all products of the Business and all services or merchandise manufactured, marketed, promoted, sold, and delivered in connection with the Business have conformed (including with respect to standards for quality and workmanship) with all applicable Laws, and express and implied warranties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Since the Lookback Date, none of Seller or its Subsidiaries has voluntarily or involuntarily initiated, conducted or issued, or caused to be initiated, conducted or issued, any material recall or market withdrawal or replacement concerning any products of the Business and, to the Knowledge of the Seller, no facts or circumstances exist that would reasonably be expected to cause Seller or its Subsidiaries or any Governmental Authority to require the recall, market withdrawal, replacement, reformulation, relabeling or suspension of manufacturing, promotion, importation or sale of any of the products of the Business, other than as would not reasonably be expected to be material to the Business, taken as a whole.

Section 3.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Contracts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule 3.18(a)</u> of the Disclosure Schedules sets forth a true, correct and complete list of each Contract that is of a type described below as of the date hereof (such Contracts as described in this <u>Section 3.18(a)</u> being "**Material Contracts**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that involve the payment or receipt by the Seller, any Selling Affiliate exclusively related to the Business, or a member of the Company Group of more than $1,500,000 during the calendar year ended December 31, 2024, or is reasonably expected to result in making or receiving a payment of more than $1,500,000 during the year ending December 31, 2025, including, in each case, any such Contracts with distributors, vendors, suppliers or clients but excluding any Employee Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Contracts (A) relating to indebtedness for borrowed money to the extent related to the Business, any member of the Company Group, including any Contracts that constitute a guaranty of any obligation of any Person, other than: (1) indebtedness for an amount less than $1,500,000; (2) accounts receivables and payables in the Ordinary Course of Business; (3) intercompany loans in the Ordinary Course of Business that will be fully repaid at or prior to the Closing; or (4) extensions of credit to distributors in the Ordinary Course of Business or (B) that create or impose a material Encumbrance (other than Permitted Encumbrances) on any of the assets or properties of the Business, tangible or intangible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that contain any non-competition or similar covenant or that limit or restrict or purport to materially limit or restrict the ability of the Business, any member of the Company Group to compete in any line of business or with any Person or in any geographic area or during any period of time after the Closing, or from otherwise purchasing, selling, supplying or distributing any product or service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that relate to the formation, establishment or operation of any joint venture, strategic alliance, partnership, limited liability company or similar Contracts, or other similar arrangement involving a sharing of profits, losses, costs or liabilities by the Business or any member of the Company Group with any third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Contracts (A) entered into after the Lookback Date or not yet consummated, in each case, that relate to the disposition or acquisition directly or indirectly (including by merger, consolidation, combination or amalgamation) of material assets or properties of the Business or of any Person to the extent related to the Business, or (B) pursuant to which any member of the Company Group has an obligation with respect to an "earn out," contingent purchase price or similar contingent payment obligation or an outstanding material obligation with respect to indemnification or warranty, in each case of <u>clauses (A)</u> and <u>(B)</u>, excluding (x) Contracts involving amounts under $1,500,000 and (y) that certain Asset Purchase Agreement, by and among the Seller, Ansell Healthcare Products LLC and Ansell Limited, dated as of April 7, 2024 (and all agreements, exhibits and schedules related thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that are a settlement, conciliation or similar agreement with any Governmental Authority to the extent related to the Business or any member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;material Contracts to the extent relating to the right to use any Business Intellectual Property, whether granted by or to the Business, excluding (A) Contracts for commercially available software or information technology systems, including software-as-a-service Contracts, (B) non-exclusive licenses entered into in the Ordinary Course of Business (including those entered into with customers, vendors, service providers, suppliers, resellers, and distributors), (C) contracts in which the license or grant of rights to use Intellectual Property is ancillary or incidental to the transaction contemplated in such Contract (including feedback licenses), (D) Contracts with officers, directors, members, managers, partners, employees, contractors, or third party service providers of the Seller, any Selling Affiliate or any member of the Company Group that assign to the Seller, any Selling Affiliate, any member of the Company Group or the Transferred Subsidiary, as applicable, any Intellectual Property invented, authored, created, or developed by any such Person in the scope of their employment or engagement with the Seller, any Selling Affiliate or member of the Company Group, as applicable, (E) Contracts that relate to the past or future disposition or acquisition of Intellectual Property used by the Business, and (F) any non-disclosure or confidentiality Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;all Contracts (or group of related Contracts) with any Material Distributor, Material Customer or Material Supplier;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that (A) impose exclusivity requirements or obligate the Seller, any Selling Affiliate exclusively related to the Business, or member of the Company Group to purchase or otherwise obtain any product or service exclusively from a single party or granting any third party any

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exclusive rights (including any "requirements" or exclusive purchasing Contract) to develop, market, sell or distribute any products or services related to the Business or (B) contain a "most favored nation," "most favored customer status" or similar provision or preferential terms and conditions (including with respect to pricing) in favor of any customer or other counterparty or a limitation on the Seller's, such Selling Affiliate's or member of the Company Group's ability to increase prices, in each case of <u>clauses (A)</u> and <u>(B)</u>, that restricts, obligates or impacts, in any material respect, the Business or any member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;Contracts with any customer providing for discounts, allowances and incentives offered by the Seller to its customers, to or by which the Seller, any Selling Affiliate exclusively related to the Business or member of the Company Group is party or otherwise subject or bound, in each case, that involve the payment or receipt by the Seller, any Selling Affiliate exclusively related to the Business or member of the Company Group of more than $4,000,000 during the calendar year ended December 31, 2024, or that is reasonably expected to be more than $4,000,000 during the year ending December 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that grant any Person rights of first refusal, rights of first option or similar rights or options to purchase or otherwise acquire any interest in any Transferred Asset (including material Intellectual Property), any Japan Trademark or any member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;&nbsp;&nbsp;&nbsp;Contracts with any Governmental Authority that exclusively relate to the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that are CBAs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;&nbsp;&nbsp;&nbsp;Contracts that are PEO Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;&nbsp;&nbsp;&nbsp;Contracts for capital expenditures to be incurred by the Seller, any Selling Affiliate or member of the Company Group to the extent related to the Business or to be constructed on any Real Property and involving payments of more than $2,000,000 individually, or $5,000,000 in the aggregate for related capital expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;&nbsp;&nbsp;&nbsp;Contracts under which the Seller (A) has a right to acquire any real property pertaining to the Business or (B) is obligated to sell any Owned Real Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)&nbsp;&nbsp;&nbsp;&nbsp;Contracts to agree to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Seller has made available to the Buyer true, correct and complete copies of each Material Contract, including all material amendments, annexes, exhibits and schedules thereto, and an accurate description of all material terms of any oral Material Contracts. Except as would not, individually or in the aggregate, reasonably be expected to be material to the Business, taken as a whole, (i) each Material Contract is valid and binding on and enforceable against the Seller, a Selling Affiliate or a member of the Company Group, as the case may be, and, to the Knowledge of the Seller, the counterparties thereto, in accordance with its terms, and is in full force and effect and (ii) the Seller, each Selling Affiliate and each member of the Company Group, as the case may be, and, to the Knowledge of the Seller, the counterparties thereto, have performed all obligations required to be performed by them under each Material Contract. None of the Seller, the Selling Affiliates or the members of the Company Group, as applicable, is in material breach of, or material default under (and no event has occurred that with or without notice or lapse of time or both would constitute such a material breach or material default thereunder by Seller, any applicable Selling Affiliate or applicable member of the Company Group, or, to the Knowledge of the Seller, any other counterparty thereto) any Material Contract to which it is a party. In the last twelve (12) months, (A) neither the Seller, any of its Subsidiaries nor any member of the Company Group has provided or received any written notice of any default, material breach or termination, or of any intention to terminate, materially modify or, to the extent applicable, not renew any such Material Contract

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(except for non-renewals and end-of-term terminations in the Ordinary Course of Business) and (B) no party to any Material Contract has given the Seller, any of its Subsidiaries or any member of the Company Group any written notice of any material dispute with respect to any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule 3.18(c)</u> of the Disclosure Schedules sets forth a correct and complete list of (i) (A) the fifteen (15) largest distributors to the professional segment of the Business on a consolidated basis globally and (B) to the extent not included in the foregoing clause <u>(A)</u>, the five (5) largest distributors to the professional segment of the Business in each Mill Jurisdiction (in each of clauses <u>(A)</u> and <u>(B)</u>, based on the dollar amount of sales to such distributors) (the "**Material Distributors**"); (ii) (A) the fifteen (15) largest customers to the family care segment of the Business on a consolidated basis globally and (B) to the extent not included in the foregoing clause <u>(A)</u>, the five (5) largest customers to the family care segment of the Business in each Mill Jurisdiction (in each of clauses <u>(A)</u> and <u>(B)</u>, based on the dollar amount of sales to such customers) (the "**Material Customers**"); and (iii) (A) the fifteen (15) largest suppliers of the Business on a consolidated basis globally and (B) to the extent not included in the foregoing clause <u>(A)</u>, the five (5) largest suppliers of the Business in each Mill Jurisdiction (in each of clauses <u>(A)</u> and <u>(B)</u>, based on the dollar amount of payments to such supplier) (the "**Material Suppliers**"), in each case, for the year ended December 31, 2024, identifying for each such Material Distributor, Material Customer or Material Supplier the amount of consideration paid to or by the Business with respect to such Material Distributor, Material Customer or Material Supplier during such year globally and in each Mill Jurisdiction, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 3.18(d)</u> of the Disclosure Schedule sets forth a correct and complete list, as of the date hereof, of all providers to the Business of financing in connection with trade payables incurred in the Ordinary Course of Business (including sponsors or financial institutions that facilitate supplier finance programs) (the "**Supplier Finance Providers**"), identifying for each such Supplier Finance Provider the estimated (1) aggregate amount of outstanding invoices and (2) number of outstanding invoices, in each case, to the extent related to the Business.

Section 3.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Brokers</u>. Except for Centerview Partners LLC and Goldman Sachs & Co. LLC, the fees, commissions and expenses of which will be paid as specified herein, no broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Seller, any Selling Affiliate or any member of the Company Group.

Section 3.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Intercompany Agreements</u>. Except for intercompany Contracts that (a) will be terminated at or prior to the Closing or will be terminated pursuant to this Agreement, (b) are not material to the Business, taken as a whole, or (c) are related to employment, the payment of compensation, incentive arrangement and benefits in the Ordinary Course of Business, <u>Schedule 3.20</u> of the Disclosure Schedules sets forth a correct and complete list of all Contracts between or among the any member of the Company Group, on the one hand, and any of the Seller or its Affiliates (other the Company Group) or any of their respective officers or directors, employees, on the other hand (the "**Intercompany Agreements**").

Section 3.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusivity of Representations and Warranties</u>. Neither the Seller nor any of its Affiliates or Representatives is making any representation or warranty relating to the Business, the Company Group or the Transferred Assets of any kind or nature whatsoever, oral or written, express or implied (including any representation or warranty relating to financial condition or results of operations of the Business, the Company Group or maintenance, repair, condition, design, performance, value, merchantability or fitness for any particular purpose of the Transferred Assets), except as expressly set forth in this <u>Article III</u>, and the Seller hereby disclaims any such other representations or warranties, it being understood that, except as expressly set forth in this <u>Article III</u>, such Transferred Assets are being acquired "as is, where is" on the Closing Date, and the Buyer and each Buyer Designee shall rely solely on their own examination and investigation of the Business, the Company Group and the Transferred Assets as well as the representations and warranties of the Seller set forth in this <u>Article III</u>. The Seller

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acknowledges and agrees that except as expressly set forth in <u>Article IV</u>, none of the Buyer or its Affiliates or Representatives makes or has made any other representation or warranty, express or implied, at Law or in equity. The provisions of this <u>Section 3.21</u> shall not, and shall not be deemed or construed to, prevent, impede, waive or release any claims for Fraud committed by a Party hereto to the other Party, solely with respect to such instance of Fraud.

**ARTICLE IV <br>REPRESENTATIONS AND WARRANTIES OF THE BUYER**

The Buyer hereby represents and warrants to the Seller as follows:

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization</u>. The Buyer and any Buyer Designee is each a legal entity duly organized, validly existing and (to the extent applicable) in good standing or the local equivalent under the Laws of its jurisdiction of organization, formation or incorporation, as applicable, and has all necessary power and authority to own, lease and operate the properties currently held by it and to carry on its business as it is now being conducted except as would not, individually or in the aggregate, reasonably be expected to have a Buyer Material Adverse Effect.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Authority</u>. The Buyer and any Buyer Designee each has the corporate power and authority to execute and deliver this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by the Buyer or any applicable Buyer Designee of this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party and the consummation by the Buyer or such applicable Buyer Designee of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action on the part of the Buyer or such Buyer Designee, and no other corporate proceedings on the part of the Buyer or such Buyer Designee are necessary to authorize this agreement, the Company Transfer Agreements or the Ancillary Agreements or to consummate the transactions contemplated hereby or thereby. This Agreement has been, and each of the Company Transfer Agreements and Ancillary Agreements at the Closing will be, duly executed and delivered by the Buyer or any applicable Buyer Designee and, assuming due execution and delivery by each of the other parties hereto and thereto, constitutes the legal, valid and binding obligation of the Buyer or such applicable Buyer Designee, enforceable against the Buyer or such applicable Buyer Designee in accordance with its terms, except as enforcement may be limited by the Enforceability Exceptions.

Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>No Conflict; Required Filings and Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by the Buyer and any Buyer Designee of this Agreement, the Company Transfer Agreements and each of the Ancillary Agreements to which it will be a party, and the consummation of the transactions contemplated hereby and thereby do not and will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;conflict with or violate the Organizational Documents of the Buyer or such Buyer Designee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;conflict with or violate any Law applicable to the Buyer or such Buyer Designee or by which any property or asset of the Buyer or such Buyer Designee is bound or affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;conflict with, result in any breach of, constitute a default (or an event that, with or without notice or lapse of time or both, would become a default) under, or require any consent of any Person pursuant to, result in the triggering of any payment or other obligation or loss of any right or benefit under, any material Contract or agreement to which the Buyer or such Buyer Designee is a party; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;result in the creation or imposition of any Encumbrance (other than Permitted Encumbrances) upon any property or asset of the Buyer or such Buyer Designee

except, in the case of <u>clause (ii)</u>, <u>(iii)</u> or <u>(iv)</u>, for any such conflicts, violations, breaches, defaults or other occurrences that would not, individually or in the aggregate, reasonably be expected to have a Buyer Material Adverse Effect or that arise as a result of any facts or circumstances relating solely to the Seller or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;None of the Buyer or any Buyer Designee is required to file, seek or obtain any notice, authorization, approval, order, permit or consent of or with any Governmental Authority in connection with the execution, delivery and performance by the Buyer or any Buyer Designee of this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party or the consummation of the transactions contemplated hereby, except (i) for any filings required to be made under the applicable requirements of Foreign Antitrust Laws, Foreign Investment Laws or EU Foreign Subsidies Regulation, (ii) where failure to obtain such consent, approval, authorization or action, or to make such filing or notification, would not, individually or in the aggregate, reasonably be expected to have a Buyer Material Adverse Effect or (iii) as arise as a result of any facts or circumstances relating solely to the participation of the Seller or any of its Affiliates (as opposed to any third party) in the transactions contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements.

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Financing</u>. The Buyer has sufficient funds to permit the Buyer to consummate the transactions contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements, and to pay all related fees and expenses.

Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Brokers</u>. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Buyer or any Buyer Designee.

Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Litigation</u>. There is no Action by or against the Buyer or any Buyer Designee pending or, to the knowledge of the Buyer, threatened in writing that would, if determined adversely to the Buyer, (a) individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impede the performance by the Buyer of its obligations under this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party or the consummation of the transactions contemplated hereby or thereby or (b) affect the legality, validity or enforceability of this Agreement or the consummation of the transactions contemplated hereby. Each of the Buyer and any Buyer Designee is not subject to any Law of any Governmental Authority (whether temporary, preliminary or permanent) enacted, issued, promulgated, enforced or entered by any Governmental Authority that enjoins, restrains, makes illegal or otherwise prohibits the consummation of the transactions contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements to which it will be a party.

Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>R&W Insurance Policy</u>. The Buyer has provided a true and correct copy of a written commitment from the R&W Insurer to bind the R&W Insurance Policy to the Seller prior to the date hereof. The Buyer acknowledges that obtaining such commitment and the R&W Insurance Policy is a material inducement to the Seller's entering into this Agreement, and that the Seller is relying on the Buyer's covenants and obligations set forth in this <u>Section 4.7</u>. Notwithstanding the foregoing, for the avoidance of doubt, the Buyer acknowledges and agrees that the obtaining of the R&W Insurance Policy is not a condition to the Closing and the Buyer shall remain obligated, subject only to the satisfaction or waiver of the conditions set forth in <u>Article VII</u> of this Agreement, to consummate the transactions contemplated by this Agreement.

Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Pending Transactions</u>. Neither the Buyer nor any of its Affiliates is party to any transaction pending to acquire by merging or consolidating with, or by purchasing a substantial

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portion of the assets of or equity in, or by any other manner, any Person or portion thereof, in each case, that would reasonably be expected to (a) impose any material delay in the obtaining of, or materially increase the risk of not obtaining, any consent, approval, authorization, qualification or order from a Governmental Authority necessary for the consummation of the transactions contemplated by this Agreement or the expiration or termination of any applicable waiting period, (b) materially increase the risk of any Governmental Authority entering an order prohibiting or delaying the consummation of the transactions contemplated by this Agreement or (c) materially increase the risk of not being able to remove any such order on appeal or otherwise.

Section 4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Anti-Hybrid Mismatch Rules</u>. To the knowledge of the Buyer, (i) the current or expected status and characteristics of (and/or the characterization, classification or treatment of any member of the Company Group by) the Buyer and its Affiliates (other than the members of the Company Group) are not expected to result in any payment made or expected to be made by any member of the Company Group after the Closing Date being treated as not deductible in computing the income or net profits for Tax purposes of any member of the Company Group and (ii) neither the Buyer nor any of its Affiliates (other than any member of the Company Group) is or is expected to become a party to a structured arrangement (as defined in the Anti-Hybrid Mismatch Directive or applicable Anti-Hybrid Mismatch Rules) or a transaction or arrangement which forms part of a series of transactions or arrangements that includes or gives rise to a "relevant mismatch" (as defined in section 259KA of the United Kingdom's Taxation (International and Other Provisions) Act 2010), or an equivalent hybrid mismatch arising under the Anti-Hybrid Mismatch Rules implemented in another jurisdiction, in each case that it is reasonable to suppose would not otherwise be subject to counteraction under the applicable Anti-Hybrid Mismatch Rules, and which is expected to result in any payment made or expected to be made by any member of the Company Group after the Closing Date being treated as not deductible in computing the income or net profits for Tax purposes of any member of the Company Group, in each case of clauses (i) and (ii), as a result of the application of the Anti-Hybrid Mismatch Rules.

Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusivity of Representations and Warranties</u>. Neither the Buyer nor any of its Affiliates or Representatives is making any representation or warranty relating to the Buyer or any of its Affiliates or Representatives of any kind or nature whatsoever, oral or written, express or implied, except as expressly set forth in this <u>Article IV</u>, and the Buyer hereby disclaims any such other representations or warranties it being understood that the Seller and its Affiliates shall rely solely on the representations and warranties of the Buyer set forth in this <u>Article IV</u>. The Buyer acknowledges and agrees that except as expressly set forth in <u>Article</u> III, none of the Seller or its Affiliates or Representatives makes or has made any other representation or warranty, express or implied, at Law or in equity. The provisions of this <u>Section 4.10</u> shall not, and shall not be deemed or construed to, prevent, impede, waive or release any claims for Fraud committed by a Party hereto to the other Party, solely with respect to such instance of Fraud.

**ARTICLE V <br>COVENANTS**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Business Prior to the Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except (i) as otherwise expressly required or permitted by this Agreement (including, for the avoidance of doubt, with respect to the Company Transfer and the Reorganization), (ii) as set forth in <u>Schedule 5.1</u> of the Disclosure Schedules, (iii) to the extent exclusively relating to the Excluded Business, the Excluded Assets or the Excluded Liabilities, in each case other than the Japan Trademarks, or (iv) as required by applicable Law (including any Public Health Measure), between the date of this Agreement and the Closing Date, unless the Buyer shall otherwise provide its prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), the Seller shall (and shall cause each of the Selling Affiliates and the applicable members of the Company Group to) use its commercially reasonable efforts to operate the Business in the Ordinary Course of Business, and the Seller shall (and shall cause each of the Selling Affiliates and the applicable members of the Company

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Group to) use its commercially reasonable efforts to (A) preserve intact in all material respects the Business (including the Transferred Assets), (B) preserve intact in all material respects the commercial relationships with Governmental Authorities, customers, suppliers, distributors, landlords and other Persons with whom the Seller, a Selling Affiliate or a member of the Company Group deals with in connection with the conduct of the Business in the Ordinary Course of Business, (C) implement the capital expenditures consistent with the 2025 Capital Budget, and consistent with the 2026 Capital Budget, in each case, in accordance therewith, and (D) in all material respects, comply with the terms and conditions of all Business Permits; <u>provided</u>, <u>however</u>, that no action by the Seller, any Selling Affiliate or any members of the Company Group with respect to matters specifically addressed by any provision of <u>Section 5.1(b)</u> shall be deemed a breach of this sentence unless such action constitutes a breach of such provision of <u>Section 5.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except (w) as otherwise expressly required or permitted by this Agreement (including, for the avoidance of doubt, with respect to the Company Transfer, the Reorganization and the UK Pension Release), (x) as set forth in <u>Schedule 5.1</u> of the Disclosure Schedules, (y) to the extent exclusively relating to the Excluded Business, the Excluded Assets or the Excluded Liabilities or (z) as required by applicable Law (including any Public Health Measures), between the date of this Agreement and the Closing Date, without the prior written consent of the Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), the Seller shall not, and shall cause each Selling Affiliate and member of the Company Group not to, in connection with the Business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;except as required by the existing terms of any Business Employee Plan or CBA in effect on the date of this Agreement, (A) (i) materially increase or decrease the benefits provided or (ii) increase or decrease the compensation payable, in each case, to any current or former Business Employee or any other current or former individual service provider of the Business, (B) establish, adopt, enter into, terminate or amend (including acceleration of funding, vesting or payment) any material Business Employee Plan or any other plan, program, policy, Contract, agreement or arrangement that would have been a material Business Employee Plan had it been in effect on the date of this Agreement, other than (1) *de minimis* administrative amendments or (2) in connection with the annual renewal of a health or welfare benefit plan that, in each case, does not result in a materially greater cost with respect to any such Business Employee Plan or other plan, program, policy, Contract, agreement or arrangement, (C) hire, promote or engage, or terminate the employment or engagement of any Business Employee or other individual service provider of the Business, other than (1) the hiring of an individual to fill a Business Employee vacancy that exists today (to the extent set forth on <u>Schedule 5.1(b)(i)</u> of the Disclosure Schedules) or occurs following the date of this Agreement on terms substantially identical to similarly situated employees and (2) the termination of the employment or engagement of a Business Employee or other individual service provider of the Business for cause, (D) transfer or reassign the duties of a Business Employee such that he or she is no longer a Business Employee, except as may be required to comply with applicable Law, (E) transfer or reassign the duties of any other employee of Seller or any of its Affiliates such that he or she would become a Business Employee, or (F) materially reduce the percentage of a Business Employee's respective working time spent in support of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;(A) implement or announce any employee layoffs, furloughs, plant closings or other actions that could implicate WARN, (B) modify, extend, terminate or enter into any CBA or recognize or certify any union, works council, labor organization or other employee representative for any Business Employees or (C) knowingly waive or release any noncompetition, non-solicitation, nondisclosure or other restrictive covenant obligation of any current or former employee or independent contractor of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;sell, transfer, lease, license, mortgage, pledge, surrender, encumber, divest, cancel, abandon or allow to lapse or expire or otherwise dispose of any Transferred Assets (except for Business Intellectual Property which is addressed in <u>Section 5.1(b)(v</u>)), Purchased Shares or

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Company Interests or any interest therein, other than (A) pursuant to Contracts made available to the Buyer prior to the date hereof or (B) sales or dispositions of Inventory in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;(A) except in the Ordinary Course of Business, enter into any Contract that would have been a Material Contract had it been entered into prior to the date hereof, (B) amend or modify in any material respect, or waive any material right under, any Material Contract or Contract that would have been a Material Contract had it been entered into prior to the date hereof, or (C) terminate (excluding any expiration in the Ordinary Course of Business in accordance with its terms), assign, convey, encumber or otherwise transfer, in whole or in part, rights or interests pursuant to, any Material Contract or Contract that would have been a Material Contract had it been entered into prior to the date hereof; <u>provided</u> that in no event shall the Seller, any Selling Affiliate or member of the Company Group be permitted to take any of the actions in the foregoing <u>clauses (A)</u>, <u>(B)</u> and <u>(C)</u>, whether or not in the Ordinary Course of Business, with respect to any Contract that would have been a Material Contract under <u>Section 3.18(a)(iii</u>), <u>(iv)</u>, <u>(v</u>), <u>(vi</u>), <u>(vii</u>), <u>(ix</u>), <u>(xi</u>), <u>(xii</u>) or <u>(xiv</u>) if such Contract had been entered into prior to the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;sell, transfer, license, assign, mortgage, pledge, surrender, encumber, divest, cancel, abandon or allow to lapse or expire any Business Intellectual Property rights (except for (A) non-exclusive licenses granted in the Ordinary Course of Business or (B) the expiration of Intellectual Property at the end of its statutory term);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;acquire (including by merger, consolidation, share exchange or purchase of all or substantially all the assets of) (A) any corporation, partnership, limited liability company, other business organization, or division thereof or (B) any assets, in each case, where the amount paid for such acquisition exceed $2,500,000 individually, or $5,000,000, in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;adopt any amendments to or otherwise change the Organizational Documents of any member of the Company Group, other than any ministerial amendments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;(A) split, combine or reclassify the outstanding Equity Interests of any of any member of the Company Group, (B) with respect to any member of the Company Group, declare, set aside or pay any non-cash dividend or non-cash distribution to any Person, (C) purchase, redeem or otherwise acquire, directly or indirectly, any Equity Interests of any member of the Company Group, or (D) deposit any Purchased Shares or Company Interests into a voting trust or enter into a voting agreement or, stockholders agreement or similar arrangement with respect to any Purchased Shares or Company Interests or grant any proxy with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;issue, sell, pledge or dispose of, or agree to issue, sell, pledge or dispose of, any Equity Interests or other securities or any options, calls, subscriptions or equity rights or other rights of any kind to acquire any Equity Interests of, any member of the Company Group, the Company Interests or any debt or equity securities that are convertible into or exercisable or exchangeable for such Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to any member of the Company Group, dissolve, restructure, reorganize or, completely or partially liquidate or file a bankruptcy petition, or adopt a plan or agreement of liquidation, dissolution, merger, consolidation or other reorganization or consent to a bankruptcy petition or (B) merge or consolidate any member of the Company Group with any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;&nbsp;&nbsp;&nbsp;make any change to any methods of financial accounting in effect at the date of the Statement of Net Assets or with respect to any accounting policies or procedures applicable to the Business or any member of the Company Group, except as required to comply with a change in GAAP or in applicable Law or as made by the Seller on an enterprise-wide basis that is implemented in a non-discriminatory manner and not otherwise targeted at the Business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;&nbsp;&nbsp;&nbsp;except as set forth in the 2025 Capital Budget or in the 2026 Capital Budget, commit or authorize any commitment to make any capital expenditures requiring cash payments after the Closing in excess of an aggregate amount of $10,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;&nbsp;&nbsp;&nbsp;make any change to the cash management, receivables collection, payables or working capital practices of the Business or any member of the Company Group or the extension of any material credits, discounts or rebates, other than such changes which are consistent with the past practices of the Business and would not reasonably be expected to have an annual impact in excess of $2,000,000 on the cash flows of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;&nbsp;&nbsp;&nbsp;except for transactions among the Seller and its Affiliates in the Ordinary Course of Business that do not result in or create any Assumed Liabilities, issue any note, bond or other debt security, or create, incur, assume or guarantee, or allow the Business or any member of the Company Group to create, incur, assume or guarantee, any Indebtedness for borrowed money in excess of $5,000,000 in the aggregate or make any loans or advances to any Person, in each case, other than (A) liabilities included in the calculation of either Asset Jurisdiction Net Working Capital or Transferred Subsidiary Net Working Capital, (B) intercompany loans and intercompany advances that will be fully repaid prior to the Closing Date, (C) Excluded Liabilities and (D) indebtedness for borrowed money that will be fully repaid and the Business will be fully released from all obligations thereunder prior to or at the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;&nbsp;&nbsp;&nbsp;except as pertains to any Seller Consolidated Return, (A) make (other than consistent with past practice), change or revoke any material Tax election, (B) change any material method of Tax accounting, (C) enter into any "closing agreement" (as defined in Section 7121 of the Code) (or any analogous or similar agreement under the principles of non-U.S. Tax Law) with any Taxing Authority with respect to a material amount of Taxes, (D) settle any claim or assessment in respect of a material amount of Taxes, or (E) consent to any extension or waiver of the limitations period applicable to any material Tax claim or assessment, in each case, to the extent such action could reasonably be expected to materially increase the Taxes of any member of the Company Group after the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;&nbsp;&nbsp;&nbsp;acquire or enter into any Contract to (A) acquire or sell any real property, (B) grant any Lease, sublease or right of use or occupancy with respect to any Real Property, (C) assign any Lease, or (D) enter into any Lease outside of the Ordinary Course of Business or for a rent amount exceeding $2,500,000 individually for the term of the Lease, or $5,000,000, in the aggregate for the term of any such Leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)&nbsp;&nbsp;&nbsp;&nbsp;create, incur or assume any Encumbrance (other than Permitted Encumbrances or restrictions on transfer under the applicable securities Laws) on any Transferred Asset or Company Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)&nbsp;&nbsp;&nbsp;&nbsp;(A) commence, settle, compromise, waive or release any Action affecting the Business, the Transferred Assets, the Assumed Liabilities or any member of the Company Group, in each case, other than if (1) the Losses resulting from such waiver, release, settlement or compromise involve solely the payment of money damages or cash settlement not in excess of $1,000,000, individually or in respect of a series of related claims, (2) customary releases in favor of the Company Group and/or the Business, as applicable, are obtained from the parties receiving such money damages or cash settlement, and (3) such money damages or cash settlement amount is fully paid prior to the Closing Date, or (B) settle any Action affecting the Business, the Transferred Assets, the Assumed Liabilities or any member of the Company Group that provides for any remedy other than money damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix)&nbsp;&nbsp;&nbsp;&nbsp;cancel, surrender, allow to expire or fail to renew any Business Permit;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)&nbsp;&nbsp;&nbsp;&nbsp;fail to use reasonable best efforts to maintain adequate insurance policies related to the Transferred Assets or Assumed Liabilities in the Ordinary Course of Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi)&nbsp;&nbsp;&nbsp;&nbsp;authorize or agree to take any of the actions described in <u>Section 5.1(b)(i)</u> through <u>Section 5.1(b)(xiv)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Agreement shall give the Buyer, directly or indirectly, the right to Control or direct the Company Group's, the Seller's or any of its Affiliates' (including any Transferred Subsidiary's) businesses or operations prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Seller will use commercially reasonable efforts to ensure that (i) the methodology for allocating employees to the Business and disclosed to the Buyer prior to the date of this Agreement shall not be modified in any material respect following the date of this Agreement, and (ii) the revised final list of Business Employees required by <u>Section 3.11(e</u>) includes (A) a number of Business Employees who are classified by the Seller and its Affiliates in <u>Section 3.11(e</u>) of the Disclosure Schedules as "SG&A" and have at least three (3) months of experience in their respective functions as of the Closing that is at least equal to 80% of 1,327 (which, for the avoidance of doubt, shall not include any Business Employees who are included in the Sales Baseline (as such term is defined below)) (the "**SG&A Baseline**"); <u>provided</u> that the SG&A Baseline shall be increased or decreased on a one-for-one basis for each additional or removed role, as applicable, in each case, as mutually agreed by the Buyer and the Seller prior to the Closing, and (B) a number of all other Business Employees in the commercial/sales, trade marketing, merchandising, and marketing areas with at least three (3) months of experience in their respective functions as of the Closing that is at least equal to 80% of 1,329 (the "**Sales Baseline**"); <u>provided</u> that the Sales Baseline shall be increased or decreased on a one-for-one basis for each additional or removed role, as applicable, in each case, as mutually agreed by the Buyer and the Seller prior to the Closing. At the Closing, and subject to the following sentence, the Seller shall cause the Company Group to have a sufficient number of Business Employees reasonably necessary to operate the Business in all material respects in the manner in which it is currently conducted and conducted as of immediately prior to the Closing. If for any jurisdiction, the number of Business Employees is insufficient to operate the Business in all material respects in the manner in which it is currently conducted and conducted as of immediately prior to the Closing, the Seller shall promptly notify the Buyer and shall promptly work together in good faith with the Buyer to develop and implement an alternative arrangement reasonably acceptable to the Buyer that to the greatest possible extent affords the Buyer the benefits of the affected Business Employees, including, where appropriate, by entering into an employee leasing agreement or providing such Transitional Services (as defined in the Transition Services Agreement) to the Company pursuant to the Transition Services Agreement as are reasonably necessary to operate the Business in all material respects in the manner in which it is currently conducted and conducted as of immediately prior to the Closing. The Seller shall charge the Company for such Transitional Services at cost and applicable transfer pricing without any mark-up or other service charge or fees.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Covenants Regarding Information; Litigation Support</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Pre-Closing Access</u>. From the date hereof until the earlier of the Closing Date and valid termination of this Agreement under <u>Section 9.1</u>, upon reasonable notice, the Seller shall, and shall cause its Affiliates to, afford the Buyer and its Representatives reasonable access to the properties, offices, plants and other facilities, Contracts, books and records of the Seller and its Affiliates relating exclusively to the Business, and, during such period, the Seller shall, and shall cause its Affiliates to, furnish as promptly as reasonably practicable to the Buyer and its Representatives all information and documents concerning the Business or the Company Group as the Buyer may reasonably request; <u>provided</u>, <u>however</u>, that any such access shall be (i) conducted at the Buyer's expense, during normal business hours, under the supervision of the Seller's personnel and in such a manner as to not unreasonably interfere with the normal operations of the Seller or the Business and (ii) limited to such properties, offices, plants and other facilities, books and records of the Seller and its Affiliates under the Seller's or its Affiliates' control or possession (for the avoidance of doubt, the Buyer hereby acknowledges

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and agrees that, notwithstanding anything to the contrary in this Agreement, the Company Transfer Agreements or the Ancillary Agreements, nothing in this Agreement, the Company Transfer Agreements or the Ancillary Agreements shall create any duty for the Seller to afford the Buyer and its Representatives access to tours, audits and other inspections by the Seller of properties, offices, plants and other facilities, books and records under the control of third parties or otherwise not related to the Business); <u>provided</u>, <u>further</u>, that with respect to any properties, plants or other facilities related to the Business, except as provided in <u>Section 5.28</u>, any such access shall not include access for the purpose of conducting any real property assessments, environmental analysis or other testing or sampling of any such properties, plants or other facilities unless with the consent of the Seller. Notwithstanding anything to the contrary in this Agreement, the Seller shall not be required to provide access to any information to the Buyer or its Representatives if the Seller determines, in its sole discretion, that (A) such access would jeopardize any attorney-client or other legal privilege, (B) such access would, upon the advice of counsel, contravene any applicable Law, injunction, decree or order of any Governmental Authority, fiduciary duty or binding agreement entered into prior to the date hereof, (C) the information to be accessed is pertinent to any litigation in which the Seller or any of its Subsidiaries or Affiliates, on the one hand, and the Buyer or any of its Affiliates, on the other hand, are adverse parties, (D) the information to be accessed would result in the disclosure of any trade secrets, (E) the information to be accessed relates to the Seller's or any of its Subsidiaries' entry into or conducting of a sale process with respect to the Business prior to the execution of this Agreement, including any information related to proposals from other Persons relating to any other potential transaction with the Seller or any of its Subsidiaries relating to the Business or (F) the information to be accessed relates to any consolidated, combined or unitary Return filed by the Seller, any of its Affiliates or any of their respective predecessor entities; <u>provided</u> that the Seller shall, and shall cause its Affiliates to, inform the Buyer of the general nature of any information withheld pursuant to the foregoing clauses and use reasonable best efforts to promptly provide to the Buyer such access to such information in another manner that does not violate the foregoing (including through the use of "clean teams" or providing information on an "outside counsel only" basis). Within sixty (60) days following the date hereof, the Seller shall, and shall cause its Affiliates to, use reasonable best efforts to assist and facilitate, at times and, if applicable, locations mutually agreeable to the Seller and the Buyer, (1) face-to-face meetings with the members of the senior management of the Business who presented to the Buyer at the management presentations and the leaders of the "Accountable Business Units" of the Business and (2) virtual meetings with senior employees of the Business that are part of the third level of the Business structure, who report to the head of the regions of the Business, and senior employees assigned to the areas of marketing, sales, industrial and supply chain of the Business. Without limiting the generality of the foregoing, from the date hereof until the earlier of the Closing and the valid termination of this Agreement, within ten (10) Business Days following the end of each calendar month (or such other date as may be mutually agreed between the Seller and the Buyer), the Seller shall use reasonable best efforts to deliver to the Buyer the monthly financial information relating to the Business that executive management of the Business has historically prepared for the Seller with respect to the Business, in the form attached hereto as <u>Exhibit O</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Post-Closing Access by Seller</u>. For a period of seven (7) years following the Closing (except as otherwise mutually agreed in writing by the Parties or as required by the Governance Agreement), each of the Buyer and the Company shall, and shall cause its Affiliates to, (i) retain the following books and records included in Transferred Assets relating to the Business relating to periods prior to the Closing to the extent they were delivered to the Buyer or a member of the Company Group: (x) Actions by or against the Company, the Seller or any of its Affiliates (including the Transferred Subsidiaries); (y) records relating to any regulatory filings of the Company, the Seller or any of its Affiliates (including the Transferred Subsidiaries); and (z) records that have been, or became, subject to any audit relating to the Company, the Seller or any of its Affiliates (including the Transferred Subsidiaries) and (ii) afford the Seller and its Affiliates and the Representatives of the Seller and its Affiliates reasonable access (including the right to make, at the Seller's expense, photocopies), during normal business hours under the supervision of the Company Group's personnel and in such a manner as to not unreasonably interfere with the normal operations of the Company Group or the Business, to such books and records. Notwithstanding the foregoing, from and after the Closing Date, the Seller and its Affiliates shall be

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provided reasonable access (including the right to make, at the Seller's expense, photocopies), during normal business hours under the supervision of the Company Group's personnel and in such a manner as to not unreasonably interfere with the normal operations of the Company or the Business, to the personnel, properties, offices, plants and other facilities, books and records of each of the Buyer and the Company Group in each case, relating exclusively to the Business if: (A) necessary for the Parties to complete the separation of assets as contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements; (B) necessary in connection with the Seller's or its Affiliates' (1) preparation of financial statements, (2) statutory audit disclosure and SEC reporting obligations or (3) facilitating the Seller's compliance with applicable Environmental Laws; (C) necessary in connection with Actions to which none of the Buyer, the Company or any of their Affiliates or any member of the Company Group is party; or (D) primarily related to the Excluded Business, the Buyer and the Company Group will cooperate reasonably with the Seller in providing such reasonable access and obtaining any such information that may be necessary for such compliance by the Seller. Notwithstanding anything to the contrary set forth in the foregoing provisions of this <u>Section 5.2(b)</u>, the Buyer, its Affiliates and the Company may withhold access, documents or information if (I) such access would jeopardize any attorney-client or other legal privilege, (II) such access would contravene any applicable Law of any Governmental Authority, fiduciary duty or binding agreement entered into prior to the date hereof or (III) the information to be accessed is pertinent to any Action in which the Seller or any of its Affiliates on one hand, and any member of the Company Group, the Buyer or any of its Affiliates, on the other hand, are adverse parties; <u>provided</u> that, in the case of the foregoing <u>clauses (I)</u> and <u>(II)</u>, the Buyer shall, and shall cause its Affiliates (including the Company Group) to, (x) inform the Seller of the general nature of any information to be withheld pursuant to such clauses and (y) use reasonable best efforts to promptly provide to the Seller such access to such information in another manner that does not violate the foregoing (including through the use of "clean teams" or providing information on an "outside counsel only" basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Post-Closing Access by the Company and the Buyer.</u> For a period of seven (7) years following the Closing (except as otherwise mutually agreed in writing by the Parties or as required by the Governance Agreement), the Seller shall, and shall cause its Affiliates to, (i) retain the following books and records relating to the Business relating to periods prior to the Closing which were not otherwise delivered to the Company pursuant to <u>Section 2.1</u>: (w) material books and records that must be retained pursuant to a *bona fide* record retention policy; (x) Actions by or against the Seller or any of its Affiliates (including the Transferred Subsidiaries); (y) records relating to any regulatory filings of the Seller or any of its Affiliates (including the Transferred Subsidiaries); and (z) records that have been, or became, subject to any audit relating to the Seller or any of its Affiliates (including the Transferred Subsidiaries); and (ii) afford the Buyer, its Affiliates and the Company and the Representatives of the Buyer, its Affiliates and the Company reasonable access (including the right to make, at the Buyer's expense, photocopies), during normal business hours under the supervision of the Seller's personnel and in such a manner as to not unreasonably interfere with the normal operations of the Seller, to such books and records. Notwithstanding the foregoing, from and after the Closing Date, the Buyer, its Affiliates and the Company shall be provided reasonable access (including the right to make, at the Buyer's expense, photocopies), during normal business hours under the supervision of the Seller's personnel and in such a manner as to not unreasonably interfere with the normal operations of the Seller, to the personnel, properties, offices, plants and other facilities, books and records of the Seller relating to the Business if: (A) necessary for the Parties to complete the separation of assets as contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements; (B) necessary in connection with the Company's, the Buyer's or its Affiliates' (1) preparation of financial statements, (2) statutory audit disclosure and reporting obligations under applicable securities Law or (3) facilitating the Buyer's or any member of the Company Group's compliance with applicable Laws; (C) necessary in connection with Actions to which neither the Seller nor any of its Affiliates is party; or (D) primarily related to the Business or the Company Group, and the Seller will cooperate reasonably with the Buyer and the Company, and cause any Selling Affiliate, as applicable, to cooperate reasonably with the Buyer and the Company in providing such reasonable access and obtaining any such information that may be necessary for such compliance by the Buyer and the Company. Notwithstanding anything to the contrary set forth in the foregoing provisions of this <u>Section</u> 

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<u>5.2(c)</u>, the Seller and its Affiliates may withhold access, documents or information if (I) such access would jeopardize any attorney-client or other legal privilege, (II) such access would contravene any applicable Law, injunction, decree or order of any Governmental Authority, fiduciary duty or binding agreement entered into prior to the date hereof, (III) the information to be accessed is pertinent to any litigation in which the Seller or any of its Affiliates, on the one hand, and any member of the Company Group, the Buyer or any of its Affiliates, on the other hand, are adverse parties, (IV) the Seller determines (in consultation with its legal counsel) that the information to be accessed would result in the disclosure of any trade secrets, (V) the information to be accessed relates to the Seller's or any of its Subsidiaries' entry into or conducting of a sale process prior to the execution of this Agreement, including any information related to proposals from other Persons relating to any other potential transaction with the Seller or any of its Subsidiaries relating to sale or disposition of the Business or (VI) the information to be accessed relates to any consolidated, combined or unitary Return filed by the Seller, any of its Affiliates or any of their respective predecessor entities; <u>provided</u> that, in the case of the foregoing clauses (I), (II), (IV) and (VI), the Seller shall, and shall cause its Affiliates to, (x) inform the Buyer of the general nature of any information to be withheld pursuant to such clauses and (y) use reasonable best efforts to promptly provide to the Buyer such access to such information in another manner that does not violate the foregoing (including through the use of "clean teams" or providing information on an "outside counsel only" basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If and for so long as a Party or any of its Affiliates is prosecuting, contesting or defending any Action (other than with respect to any Action involving a dispute between the Seller or any of its Affiliates (excluding any member of the Company Group), on the one hand, and any member of the Company Group, the Buyer or any of their Affiliates, on the other hand) in connection with (i) any transactions contemplated by this Agreement, the Company Transfer Agreements or any Ancillary Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction to the extent relating to, in connection with or arising from an Assumed Liability (in the case of the Buyer or the Company) or an Excluded Liability (in the case of the Seller), then the other Parties shall, and shall cause their Subsidiaries (and its and their officers, employees, and Representatives) to reasonably cooperate with the other Party and its counsel in such prosecution, contest or defense (including by making available its personnel for meetings, interviews and legal proceedings); <u>provided</u> that any reasonable out-of-pocket costs incurred in providing such cooperation (including the internal personnel costs to provide such cooperation) shall be promptly reimbursed by such requesting Party.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Contact with Business Relations</u>. Notwithstanding anything in the Confidentiality Agreement, from the date hereof until the earlier of the Closing Date and valid termination of this Agreement under <u>Section 9.1</u>, except as otherwise provided in this Agreement, the Buyer and its Representatives shall not, without the prior written consent of the Seller (which consent will be given by a member of the corporate development group of the Seller or Courtney Roane and shall not to be unreasonably withheld, delayed or conditioned), contact or communicate with any of the distributors, customers, vendors, independent contractors, partners, suppliers, employees (except for members of the corporate development group of the Seller or Courtney Roane) or other business relations of the Seller, any of its Affiliates or the Business, in each case, in connection with the transactions contemplated hereby; <u>provided</u>, <u>however</u>, that the obligations set forth in this <u>Section 5.3</u> shall not apply with respect to (a) contacts with any distributors, customers, vendors, independent contractors, partners, suppliers, employees or other business relations of the Buyer or any of its Affiliates in the Ordinary Course of Business and unrelated to the transactions contemplated by this Agreement or the Business (<u>provided</u> that the Buyer shall remain subject to the Confidentiality Agreement in accordance with the terms thereof), (b) any contacts or communications as may be required or advisable to comply with Law (including applicable securities Laws), listing rules or any listing or trading agreement concerning the Buyer's or its Affiliates' publicly traded securities or other existing contractual arrangements or (c) employees of the Business at such a time and in such a manner as mutually agreed to in writing by the Buyer and the Seller in advance in connection with post-Closing matters relating to such employees' employment or to the extent expressly permitted or required by this Agreement or the Ancillary Agreements. The Seller shall

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have the right to have one or more of its Representatives present at all times during any contact or communication contemplated by this <u>Section 5.3</u>.

Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>. Each of the Seller and the Buyer shall hold, and shall cause its Representatives to hold, in confidence all documents and information furnished to it by or on behalf of the other Party in connection with the transactions contemplated hereby pursuant to the terms of the Confidentiality Agreement, dated as of September 26, 2024, between Buyer Parent and the Seller (the "**Confidentiality Agreement**"), which shall continue in full force and effect; <u>provided</u>, <u>however</u>, that, effective as of the Closing, notwithstanding anything in the Confidentiality Agreement to the contrary, the non-solicitation provisions, standstill and confidentiality and non-use provisions contained in the Confidentiality Agreement (and, for the avoidance of doubt, no other provisions thereof) shall terminate only with respect to the portion of the Confidential Information (as defined in the Confidentiality Agreement) to the extent related to the Business or the Company Group or any of the transactions contemplated by this Agreement and the Confidentiality Agreement shall otherwise remain in effect until the date set forth in <u>clause (ii)</u> of paragraph 21 of the Confidentiality Agreement. Subject to this <u>Section 5.4</u>, following the Closing Date, the Company agrees to be bound by, observe, and comply with, and to be liable for any breaches of, or its failure to comply with, all of the terms and provisions of the Confidentiality Agreement that are applicable to the Buyer (including as a "Bidder," as defined in the Confidentiality Agreement) as fully and to the same extent as if the Confidentiality Agreement were executed by the Company. If for any reason this Agreement is properly terminated in accordance with <u>Article IX</u> prior to the Closing Date, the Confidentiality Agreement shall nonetheless continue in full force and effect in accordance with its terms.

Section 5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Consents and Filings; Further Assurances</u>. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions of this Agreement, including <u>Section 5.5(e)</u> each of the Parties shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, and reasonably cooperate with each other in order to do, any and all things necessary, proper or advisable under applicable Foreign Antitrust Laws, Foreign Investment Laws and EU Foreign Subsidies Regulation to consummate and make effective the transactions contemplated by this Agreement and to eliminate each and every impediment that is asserted by any Governmental Authority to permit Closing to occur by the Termination Date, including using reasonable best efforts to: (i) cause the preparation and filing of all forms, registrations and notices required to be filed to consummate the transactions contemplated by this Agreement and take such actions as are reasonably necessary to obtain any requisite consent or expiration of any applicable waiting period under any applicable Foreign Antitrust Law, Foreign Investment Law and EU Foreign Subsidies Regulation; (ii) defend on the merits all Actions by or before any Governmental Authority challenging the legality, validity, or enforceability of this Agreement or the consummation of the transactions contemplated by this Agreement under any applicable Foreign Antitrust Law, Foreign Investment Law or EU Foreign Subsidies Regulation; and (iii) resolve any objection asserted with respect to the transactions contemplated under this Agreement under any applicable Foreign Antitrust Law, Foreign Investment Law or EU Foreign Subsidies Regulation raised by any Governmental Authority and prevent the entry of any court order, and have vacated, lifted, reversed or overturned any injunction, decree, ruling, order or other action of any Governmental Authority under applicable Foreign Antitrust Law, Foreign Investment Law or EU Foreign Subsidies Regulation that would prevent, prohibit, materially restrict or materially delay the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In furtherance and not in limitation of the provisions of <u>Section 5.5(a)</u>, each of the Parties, as applicable, agrees to prepare and make all necessary filings as promptly as reasonably practicable after the date hereof, and thereafter make any other required submissions, with respect to this Agreement required under applicable Foreign Antitrust Laws, Foreign Investment Laws and EU Foreign Subsidies Regulation. The Buyer shall not withdraw any such filing pursuant to any applicable Foreign Antitrust Laws, Foreign Investment Laws or EU Foreign Subsidies Regulation without the Seller's prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed). The Buyer

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shall pay all filing fees and other charges for the filings required under all applicable Foreign Antitrust Laws or Foreign Investment Laws by the Seller, the Company and the Buyer in order to obtain the necessary consents, clearances, approvals or authorizations or any expiration or termination of a waiting period, it being understood and agreed that each of the Seller, the Company and the Selling Affiliates shall be responsible for its own legal fees and expenses in respect of all filings and other submissions required to be made under all applicable Foreign Antitrust Laws or Foreign Investment Laws by the Seller, the Company or the Selling Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If a Party receives a formal or informal request for information or documentary material from any Governmental Authority with respect to this Agreement or the transactions contemplated hereby, then such Party shall in good faith make, or cause to be made, as soon as reasonably practicable and after consultation with the other Party to the extent practicable, a response which is in substantial compliance (based on the information then available to such Party) with such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Parties shall keep each other reasonably apprised of status with respect to the matters set forth in this <u>Section 5.5</u> and reasonably cooperate in connection with obtaining the consent, authorization, expiration or termination of any waiting period, approval, waiver, or any exemption under any applicable Foreign Antitrust Law, Foreign Investment Law and EU Foreign Subsidies Regulation from each applicable Governmental Authority, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;reasonably cooperating with each other in connection with filings required to be made by any Party under any applicable Foreign Antitrust Law, Foreign Investment Law or EU Foreign Subsidies Regulation and reasonably liaising with each other in relation to each step of the procedure before the relevant Governmental Authorities and as to the contents of all material communications with such Governmental Authorities. In particular, to the extent permitted by Law or Governmental Authority, no Party will make any notification in relation to the regulatory approvals and consents contemplated hereunder without first providing the other Party with a copy of such notification in draft form and giving such other Party a reasonable opportunity, considering the deadline such Party is required to submit such notification, to discuss its content before it is filed with the relevant Governmental Authorities, and such first Party shall consider in good faith and take account of all reasonable comments timely made by the other Party in this respect (it being understood and agreed that the Buyer shall control and lead all communications, negotiations, timing decisions and strategy on behalf of the Parties relating to any approval or consent under any Foreign Antitrust Law, Foreign Investment Law or EU Foreign Subsidies Regulation applicable to the transactions contemplated by this Agreement, and the Seller shall take all reasonable actions to support the Buyer in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;furnishing to the other party all information within its possession to the extent that is required for any application or other regulatory filing to be made by the other Party pursuant to the applicable Foreign Antitrust Laws, Foreign Investment Laws or EU Foreign Subsidies Regulation in connection with the transactions contemplated by this Agreement, subject to disclosing any competitively sensitive or legally privileged information on a "counsel to counsel" basis only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;promptly notifying each other of any material communications from or with any Governmental Authority with respect to the matters set forth in this <u>Section 5.5</u> and ensuring to the extent permitted by Law or Governmental Authority and, to the extent practicable (with respect to any spontaneous telephonic discussions, conferences or meetings), that each of the Parties is entitled to attend any substantive meetings, conferences, telephone calls, or other substantive discussions with or other appearances before any Governmental Authority with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;reasonably consulting and cooperating with one another in connection with all analyses, appearances, presentations, memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any Party hereto in connection with proceedings under or relating to applicable Foreign Antitrust Laws, Foreign Investment Laws and EU Foreign Subsidies Regulation; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;without prejudice to any rights of the Parties, reasonably consulting and cooperating with the other in defending on the merits all Actions by or before any Governmental Authority challenging this Agreement or the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Buyer to use reasonable best efforts under this <u>Section</u> 5.5 shall include the Buyer committing to any: (i) Divestiture Remedy; and (ii) behavioral remedy; <u>provided</u> that, notwithstanding anything to the contrary herein, in no event shall the Buyer or any of its Subsidiaries or Affiliates be obligated to commit to take, or to take, any action that would constitute a Burdensome Condition (and without the prior written consent of the Buyer (which consent may be withheld in the Buyer's sole discretion), in no event shall the Seller or any of its Subsidiaries or Affiliates commit to take, or take, any action that would constitute a Burdensome Condition). For purposes of this Agreement, "**Burdensome Condition**" shall mean any of the following: (x) any behavioral remedy that would reasonably be expected to have a material adverse effect on either (A) the Business or (B) the business of the Buyer and its Affiliates taken as a whole (in the case of clause (B), measured on a scale relative to the size of the Business); or (y) any Divestiture Remedy related to Transferred Assets that generated more than $120,000,000 in net sales (calculated in accordance with GAAP), individually or in the aggregate, for the twelve (12) months ended December 31, 2024. In furtherance of, and without limiting the foregoing, no Party shall be required to take, or agree to take, and no Party shall propose to any Governmental Authority, any action pursuant to this <u>Section 5.5</u> that is not conditioned on the Closing. The Buyer shall keep the Seller reasonably informed regarding the status of any divestitures required pursuant to the foregoing sentence and shall promptly provide the Seller with any correspondence and drafts of any transaction documents with respect thereto. For purposes of this <u>Section 5.5</u>: "**Divestiture Remedy**" shall mean any undertakings, commitments or other obligations agreed with a Governmental Authority that would require the Buyer or its Affiliates to: (A) sell, divest, or otherwise convey all or any part of any Transferred Assets (but, for the avoidance of doubt, none of the assets or businesses of the Buyer or any of its Affiliates) to a third party; or (B) license or hold separate arrangements with respect to all or any part of any Transferred Assets (but, for the avoidance of doubt, none of the assets or businesses of the Buyer or any of its Affiliates). For the avoidance of doubt, the use of, or access to, the Transferred Assets or the assets of Buyer or any of its Affiliates to implement a behavioral remedy contemplated by this <u>Section 5.5(e)</u> shall not constitute a Divestiture Remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The Parties, as they deem advisable and necessary, may designate any commercially or competitively sensitive information and materials of a Party provided to the other Parties under this <u>Section 5.5</u> as "Outside Counsel Only Material," and such materials and the information contained therein shall be given only on an outside counsel-only basis and will not be disclosed to other Representatives of the recipient unless express written permission is obtained in advance from the source of the materials or its legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The Buyer shall not, and shall cause its Affiliates not to, acquire or agree to acquire (by merger, consolidation, purchase of Equity Interests or assets, joint venture or otherwise) any Person or any business, division or portion thereof, if such acquisition or agreement would reasonably be expected to impose any material delay in the obtaining of, or materially increase the risk of not obtaining, any consent, approval, authorization, qualification or order from a Governmental Authority necessary for the consummation of the transactions contemplated by this Agreement or the expiration or termination of any applicable waiting period.

Section 5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Public Announcements</u>. On and after the date hereof and through the Closing Date, the Buyer and the Seller (on behalf of itself and each member of the Company Group) shall consult with each other before issuing any press release or otherwise making any public statements with respect to this Agreement or the transactions contemplated hereby, and neither the Buyer nor the Seller (on behalf of itself and each member of the Company Group) shall (and shall cause such Party's Affiliates and Representatives not to) issue any press release or make any public statement prior to obtaining the other Party's written approval, which approval shall not be unreasonably withheld; <u>provided</u> that no such approval shall be necessary to the extent disclosure is required by applicable Law or any listing

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agreement of either the Buyer or the Seller so long as each Party gives the other Party a reasonable opportunity to review and comment prior to making such disclosure.

Section 5.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Release of Seller Guarantees</u>. The Parties agree to cooperate and use their commercially reasonable efforts to obtain the release of the Seller or its Affiliates that are a party to each of the guarantees, performance bonds, bid bonds and other similar agreements listed in <u>Schedule 5.7</u> of the Disclosure Schedules (the "**Seller Guarantees**"), in each case, effective at and from the Closing and otherwise in form and substance reasonably satisfactory to the Buyer and the Seller. In the event any of the Seller Guarantees are not released prior to or at the Closing, the Company will (a) indemnify and hold the Seller and its Affiliates that are a party to each such Seller Guarantee harmless for any and all payments required to be made under, and all reasonable and documented out-of-pocket costs and expenses incurred in connection with, such Seller Guarantee by the Seller or its Affiliates that are a party to such Seller Guarantee until such Seller Guarantee is released and (b) continue to cooperate and use their respective commercially reasonable efforts to obtain the release of the Seller or its Affiliates, as applicable, from the Seller Guarantees that are not released at the Closing, in each case, in form and substance reasonably satisfactory to the Company and the Seller; <u>provided</u> that, in no event shall the Buyer or any member of the Company Group be obligated to agree to adverse terms under the Contract that is supported by any such Seller Guarantee.

Section 5.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Intellectual Property Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly provided in this Agreement or in any Ancillary Agreement, it is expressly agreed that neither the Buyer (through its purchase of the Company Transferred Interests) nor any member of the Company Group is receiving a license under this Agreement, any of the Company Transfer Agreements or any of the other Ancillary Agreements, and the Seller is not conveying ownership rights or granting any member of the Company Group, the Buyer or any of its Affiliates (including any Buyer Designees) any right, title, license or interest (whether express or implied, whether by implication, estoppel, or otherwise) in, to or under the name "Kimberly-Clark" or any trade name, trademark, service mark, logo or domain name incorporating the name "Kimberly-Clark" or any derivation, variation, translation or adaption thereof, or any trademarks that are confusingly similar to "Kimberly-Clark", including or embodying any of the foregoing (collectively, the "**Retained Marks**") or any other Intellectual Property owned by or licensed to the Seller or any of its Affiliates that is not Business Intellectual Property (the foregoing, together with the Retained Marks and the Licensed Intellectual Property, the "**Seller IP**"). Except as expressly provided in any Ancillary Agreement, it is expressly agreed that neither the Buyer (through its purchase of the Company Transferred Interests) nor any member of the Company Group is purchasing or acquiring under this Agreement or any Ancillary Agreement any right, title or interest (whether express or implied) in, to or under the Retained Marks or other Seller IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company and the Buyer, for itself and its and their Subsidiaries and Affiliates (including any Buyer Designees), acknowledge and agree that as between the Parties, the Seller or its Affiliates own or have the exclusive right to use and display any and all of the Retained Marks and exploit all other Seller IP and, except as otherwise expressly provided in this Agreement or any Ancillary Agreement, none of the members of the Company Group, the Buyer or any of its Affiliates (including any Buyer Designees) shall, as of the Closing, have any rights in or to the Retained Marks or other Seller IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As soon as reasonably practicable after Closing, but in any case no later than one hundred and eighty (180) days following the Closing Date (except to the extent that such name change would result in the loss of any Permit or is prohibited by applicable Law), the Company and the Buyer shall, or shall cause, the corporate names of the Transferred Subsidiaries containing a Retained Mark to be changed to names that do not incorporate or include, in whole or in part, any of the Retained Marks or any confusingly similar name, and the Transferred Subsidiaries shall be permitted to use the Retained Marks as part of its corporate name until such change is effective. Except as permitted under this Agreement, any of the Company Transfer Agreements and any of the Ancillary Agreements, each

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member of the Company Group shall cease and discontinue promptly as of the Closing any and all uses of any and all Retained Marks and Seller IP in the Business.

Section 5.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Employee Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferred Subsidiary Business Employees</u>. The Company shall (or shall cause its Subsidiaries to) continue the employment of each Transferred Subsidiary Business Employee with effect from the Closing Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>ARD Business Employees</u>. It is acknowledged that the transfer of the Business to the Company Group pursuant to the Reorganization shall constitute a relevant transfer within the meaning of the ARD Regulations. The Parties intend that the Seller, the Selling Affiliates and the Transferred Subsidiaries shall take all necessary steps to effectuate the transfer of the ARD Business Employees to the applicable member of the Company Group prior to the Closing in accordance with the Reorganization and pursuant to the applicable ARD Regulations (subject to any right of any ARD Business Employee to object to the transfer under such ARD Regulations). Each applicable member of the Company Group and the Buyer (through its purchase of the Company Transferred Interests) shall provide all reasonable cooperation required to assist the Seller and the Selling Affiliates in carrying out their obligations (i) under the ARD Regulations and (ii) in connection with any required information and consultation or negotiation procedure with any works council, union or employee representative bodies, in each case, with respect to the transfer of the ARD Business Employees to the Company Group in accordance with the Reorganization. In the event that the Contract of employment of any ARD Business Employee is found or alleged not to have effect following the Reorganization as if originally made with any member of the Company Group (other than in circumstances where the ARD Business Employee has timely exercised their right of objection under the ARD Regulations (as outlined under applicable Law)), such ARD Business Employee shall be made an offer of employment by the applicable member of the Company Group on terms consistent with those described in <u>Section 5.9(a)(iii)</u> and the provisions in <u>Section 5.9(a)(iii)</u> and <u>Section 5.9(f)</u> shall apply to such ARD Business Employee as if they were a Non-ARD Business Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>ARD Business Employee Objections</u>. Where an ARD Business Employee timely exercises (as outlined under applicable Law) his or her right to object to the transfer of their employment to the applicable member of the Company Group (an "**Objecting Employee**") and the Company Group has complied with its obligations pursuant to the ARD Regulations, the Seller shall be solely responsible for, and shall indemnify and hold harmless the Company from, the costs incurred in respect of the Objecting Employee's employment during the period from the date on which the local Reorganization occurs (the "**Local Closing Date**") until the date of termination of the Objecting Employee's employment and any costs paid by the Seller (or its Affiliates) in connection with the termination of such Objecting Employee's employment with the Seller or its Affiliates, including: (A) the amount of any statutory redundancy payment, severance payment, contractual termination payment or any other mandatory payment required to be paid in connection with such termination under any Law; (B) any payment in lieu of notice paid by the Seller (or its Affiliates) to the Objecting Employee; (C) any payment of compensation or benefits during any notice period, period of "garden leave" or similar period mandated under any Law or Contract; and (D) any payment of tax (including Pay As You Earn, national insurance contributions or employer payroll or social security costs) paid by the Seller (or its Affiliates) in accordance with the termination of the Objecting Employee's employment. The Seller further agrees to be solely responsible for, and shall indemnify and hold harmless the Company from, the Losses associated with any claim for a breach of any obligations under any Law in any jurisdiction in connection with the termination of such Objecting Employee's employment, including any proposed redundancy or severance payable to the Objecting Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-ARD Business Employees</u>. No later than ninety (90) days prior to the Local Closing Date, the Company shall, or shall cause one of its Subsidiaries to, extend offers of employment to each Non-ARD Business Employee (such offers to take effect from the Closing Date) on

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terms no less favorable than those set forth in <u>Section 5.9(f)</u> below; <u>provided</u> that any offer of employment to an Inactive Employee who is not otherwise a Transferred Subsidiary Business Employee shall provide for employment with the applicable member of the Company Group or an Affiliate of the Company to commence at the expiry of such Inactive Employee's leave, provided that such Inactive Employee returns to active employment within twelve (12) months following the Closing Date, or, in the case of a Delayed Transfer Employee, within twelve (12) months of the Delayed Employee Transfer Date and, in each case, except as otherwise required by applicable Law. The Seller shall reasonably cooperate with the Company to ensure the Company has all information necessary to comply with its obligations under this <u>Section 5.9(a)(iii</u>) and shall encourage the Non-ARD Business Employees to accept their offers of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severance Costs Consequent on the Transfer of Non-ARD Business Employees</u>. Parent and Buyer intend that the transactions contemplated by this Agreement shall not constitute a severance or termination of employment of any Business Employee prior to or upon the Closing (or Local Closing Date, as applicable) for purposes of any severance or termination benefit plan, program, policy, agreement or arrangement of Seller or any of its Affiliates, and that the Transferred Employees shall have continuous and uninterrupted employment immediately before and immediately after the Closing (or Local Closing Date, as applicable), and the Company shall comply with any requirement under applicable Laws to ensure the same. The Company shall be solely responsible for, and shall indemnify and hold harmless the Seller from, all liabilities in respect of: (i) any statutory redundancy payment, severance payment, contractual termination payment or any other mandatory payment (including end of service payments); (ii) any payment in lieu of notice; (iii) any payment of compensation or benefits during any notice period, period of "garden leave" or similar period mandated under any Law or Contract; and (iv) any payment of tax (including Pay As You Earn, national insurance contributions or employer payroll or social security costs) on the payments in <u>clauses (i)</u>, <u>(ii)</u> and <u>(iii)</u>, paid by the Seller (or its Affiliates) in respect of any Business Employee who becomes a Transferred Employee which were triggered by Law on the transfer of such employee from the Seller (or its Affiliates) to any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferred Employees</u>. "**Transferred Employee**" means: (i) each Non-ARD Business Employee that accepts such offer of employment from the applicable member of the Company Group and commences employment with the applicable member of the Company Group; (ii) each Transferred Subsidiary Business Employee; and (iii) each ARD Business Employee who is not an Objecting Employee. The employment of all such Non-ARD Business Employees who accept such offers of employment from the applicable member of the Company Group and commence employment with the applicable member of the Company Group shall commence effective as of 12:01 a.m. local time on the applicable Local Closing Date and shall be deemed for all purposes to have occurred with no interruption or break in service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Business Employees</u>. Prior to the Closing, Seller shall or shall cause its Affiliate to transfer the employment of any employee employed by any member of the Company Group who is not a Business Employee, along with all related liabilities, personnel records and vacation and paid time off, to Seller or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-ARD Business Employees Who Do Not Become Transferred Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;In the event that any Non-ARD Business Employee refuses to accept an offer of employment from the Company or one of its Subsidiaries as a result of a breach of the obligations in <u>Section 5.9(a)(iii)</u> by the Company or one of its Subsidiaries (or otherwise does not receive an offer of employment), the Company agrees to reimburse the Seller for any costs required to be paid by the Seller (or its Affiliates) in connection with the termination of such Non-ARD Business Employee's employment with the Seller or its Affiliates, including: (A) the amount of any statutory redundancy payment, severance payment, contractual termination payment or any other mandatory payment required to be paid in connection with such termination under any Law; (B) any payment in lieu of notice paid by the Seller (or its Affiliates) to such Non-ARD Business Employee; (C) any payment of compensation or benefits during any notice period, period of "garden leave" or similar period mandated under any Law or Contract; and

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(D) any payment of tax (including "Pay As You Earn", national insurance contributions or employer payroll or social security costs) paid by the Seller (or its Affiliates) in accordance with the termination of such Non-ARD Business Employee's employment, and in such event, the Company further agrees to indemnify and hold harmless the Seller (for and on behalf of itself and any Affiliate) against any Losses associated with any claim for a breach of any obligations under any Law in any jurisdiction in connection with the termination of such Non-ARD Business Employee's employment, including, but not limited, to any proposed redundancy or severance payable to such Non-ARD Business Employee; <u>provided</u>, <u>however</u>, that the Seller has provided notice of termination to such Non-ARD Business Employee on or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;In the event that any Non-ARD Business Employee refuses to accept an offer of employment from the Company or one of its Subsidiaries and such offer of employment otherwise complies with <u>Section 5.9(a)(iii)</u>, the Seller shall be solely responsible for any costs required to be paid by the Seller (or its Affiliates) in connection with the termination of such Non-ARD Business Employee's employment with the Seller or its Affiliates, including: (A) the amount of any statutory redundancy payment, severance payment, contractual termination payment or any other mandatory payment required to be paid in connection with such termination under any Law; (B) any payment in lieu of notice paid by the Seller (or its Affiliates) to such Non-ARD Business Employee; (C) any payment of compensation or benefits during any notice period, period of "garden leave" or similar period mandated under any Law or Contract; and (D) any payment of tax (including Pay As You Earn, national insurance contributions or employer payroll or social security costs) paid by the Seller (or its Affiliates) in accordance with the termination of such Non-ARD Business Employee's employment, and in such event, the Seller further agrees to indemnify and hold harmless the Company (for and on behalf of itself and any Affiliate) against any Losses associated with any claim for a breach of any obligations under any Law in any jurisdiction in connection with the termination of such Non-ARD Business Employee's employment, including any proposed redundancy or severance payable to such Non-ARD Business Employee. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;In the event that any Non-ARD Business Employee refuses to accept an offer of employment from the Company or one of its Subsidiaries, then, during the applicable Service Period (as defined in the Transition Services Agreement), (A) the Seller shall use reasonable endeavors to continue to employ such Non-ARD Business Employee and to cause, subject to compliance with applicable Law and the terms of the Transition Services Agreement, the services of any such Non-ARD Business Employee to be provided to the Company Group, (B) the Seller shall not enter into any new Contracts or modify any existing Contracts with such Non-ARD Business Employee with respect to the transactions contemplated hereby or such Non-ARD Business Employee's compensation or benefits, except as permitted by <u>Section 5.1(b)(i)</u>, and (C) the Seller shall not terminate the employment of any such Non-ARD Business Employee (other than for cause) without consultation in good faith with the Company and shall use commercially reasonable efforts to replace any such Non-ARD Business Employee who terminates employment prior to the end of the Service Period, subject to consultation in good faith with the Company with respect to any such replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation and Benefits, Working Arrangements, Job Title and Responsibilities</u>. For a period commencing on the applicable Local Closing Date and ending on the twelve (12)-month anniversary of the Closing Date (or the date the applicable Transferred Employee's employment terminates, if sooner), the Company shall, or shall cause one of its Subsidiaries to, provide each Transferred Employee with: (i) a base salary or wage rate that are no less than the base salary or wage rate as were provided to such Transferred Employee immediately prior to the Closing and set forth with respect to such individual on <u>Schedule 5.9(f)(i)</u> of the Disclosure Schedules; (ii) target cash incentive compensation opportunities (excluding any transaction, change in control, sale, retention or other one-time incentive opportunities) that are no less than the target cash incentive compensation opportunities as were provided to such Transferred Employee immediately prior to the Closing and set forth with respect to such individual on <u>Schedule 5.9(f)(i)</u> of the Disclosure Schedules; (iii) employee benefits, including target equity compensation opportunities (excluding any severance, which is addressed in <u>Section 5.9(h</u>), retention, change in control or transaction plans or arrangements ("**Excluded Benefits**")) that are

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substantially comparable in the aggregate to those (other than Excluded Benefits) provided to such Transferred Employee immediately prior to the Closing Date; (iv) working arrangements and location that are substantially similar to those applicable to the Transferred Employee immediately prior to the Closing; and (v) job title, authority, duties or responsibilities that are substantially similar to those applicable to the Transferred Employee immediately prior to the Closing. Without prejudice to the foregoing, the Company shall, or shall cause the relevant Subsidiary to, ensure that all the terms and conditions provided to each Transferred Employee shall be subject to the requirements of applicable Law and CBAs. Without prejudice to the foregoing, prior to the Closing, the Parties shall cooperate to develop a long-term incentive plan, with awards thereunder to be granted at the Closing to the Business Employees whose names are set forth on <u>Schedule 5.9(f)(ii)</u> of the Disclosure Schedules. Notwithstanding the foregoing provisions of this <u>Section 5.9</u>, with respect to Business Employees whose terms and conditions of employment are subject to a PEO Agreement, the Company shall, or shall cause the relevant Subsidiary to, instead comply with the terms and conditions of each such applicable PEO Agreement, subject to the requirements of applicable Law. With respect to each Transferred Employee who as of the Closing is subject to a mobility contract, the Company shall, or shall cause the relevant Subsidiary to, honor the terms and conditions of such Transferred Employee's mobility contract, including benefits related to the return to their home country as applicable to such person as of or following the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Service Crediting; Company Welfare Plans</u>. The Transferred Employees shall receive credit for all periods of employment and/or service with the Seller and its Affiliates prior to the Closing Date (including with any predecessor employers where such service was recognized by the Seller or its Affiliates) for purposes of eligibility to participate, vesting and benefit accrual under any employee benefit plans, programs, or arrangements that are maintained by the Company or any of its Subsidiaries on or after the Closing Date, to the same extent as if such service had been performed for the Company or any of its Subsidiaries, except (i) to the extent that recognition of such credit would result in a duplication of benefits or compensation for the same period of service or (ii) under any Excluded Benefits (except as otherwise required by applicable Law). In addition, and without limiting the generality of the foregoing, (A) each Transferred Employee shall be immediately eligible to participate, without any waiting period, in any and all group welfare benefit plans of the Company Group providing benefits to any Transferred Employee on or after the Closing Date ("**Company Welfare Plans**") and (B) for purposes of each Company Welfare Plan, the Company shall, or shall cause one of its Affiliates to, cause (1) such Company Welfare Plan to waive all preexisting condition exclusions, actively-at-work requirements, requirements to show evidence of good health and other limitations with respect to participation and coverage requirements for each Transferred Employee and his or her covered dependents (including domestic partners), unless such conditions would not have been waived or satisfied under the comparable Employee Plan in which such Transferred Employee participated immediately prior to the Closing Date, and (2) any eligible expenses incurred by such Transferred Employee and his or her covered dependents during the plan year in which the Closing Date occurs and ending on the Closing Date to be taken into account under such Company Welfare Plan for purposes of satisfying all deductibles, coinsurance payments, co-payments and maximum out-of-pocket requirements applicable to such Transferred Employee and his or her covered dependents for such plan year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severance Benefits</u>. For a period commencing on the Closing Date and ending on the twelve (12)-month anniversary of the Closing Date (or on the date the applicable Transferred Employee's employment terminates, if sooner), the Company shall, or shall cause one of its Subsidiaries to, provide, or cause provision of, each Transferred Employee with severance benefits that are no less favorable than the severance benefits of the Seller and its Affiliates under the applicable Business Employee Plan for which such Transferred Employee would have been eligible if terminated as of immediately prior to the Closing Date; <u>provided</u>, <u>however</u>, that (i) the Company and its Subsidiaries shall not be obligated to pay such severance pay if such Transferred Employee's employment has been terminated for cause, as determined by the Company in its reasonable discretion, and (ii) as a condition to such Transferred Employee's receipt of severance pay in excess of the requirements under applicable Law, to the extent permissible under applicable Law, the Company shall require such Transferred Employee to execute an irrevocable waiver and general release of claims in favor of the Company and its

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predecessors, successors, parents and Affiliates, and their respective present and former officers, directors, employees, agents and representatives, which release shall become effective and irrevocable in accordance with its terms prior to the payment of such severance pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Paid Time Off; Flex Days</u>. As of the Closing Date, to the fullest extent permitted by applicable Law and solely to the extent reflected in either Asset Jurisdiction Net Working Capital or Transferred Subsidiary Net Working Capital, the Company shall assume and honor (or otherwise the Company shall reimburse the Seller or its Subsidiaries for the pay out) for each Transferred Employee all flex days, paid time off, or other vacation time that has been accrued but unused through immediately prior to the Closing. To the extent that a Business Employee is entitled under any applicable Law or any policy of the Seller or its Affiliates to be paid for any such accrued but unused amounts as of the Closing, the Seller shall, or shall cause its Affiliates to, discharge such liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Incentive Awards</u>. Subject to applicable Law and solely to the extent reflected in either Asset Jurisdiction Net Working Capital or Transferred Subsidiary Net Working Capital, within thirty (30) days following the Closing Date, the Company shall pay, or cause to be paid, to each Transferred Employee his or her target annual incentive bonus for the year in which the Closing Date occurs, pro-rated for the portion of such year ending on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Awards</u>. As of the Closing Date, the Seller shall cause each Transferred Employee to immediately vest (at the applicable Performance Level for performance-based equity awards) in a pro-rated portion of each outstanding Seller equity award held by such Transferred Employee immediately prior to the Closing (based on the period of time elapsed from the equity award's grant date or vesting commencement date, as applicable, through the Closing Date). Effective as soon as reasonably practicable following the Closing Date, the Company shall, or shall cause one of its Subsidiaries to, provide an economically equivalent award in assumption, substitution or replacement for any unvested Seller equity award (or portion thereof, in each case, at the applicable Performance Level for performance-based equity awards) that any Transferred Employee forfeits as a result of the transactions contemplated hereby (including any associated transfer of employment) with such assumption, substitution or replacement to be determined in accordance with the Seller's policies as described in <u>Schedule 5.9(k)</u> of the Disclosure Schedules (and values to be set forth in Column T of <u>Attachment 5.9(k)(i)</u> set forth on <u>Schedule 5.9(k)</u> of the Disclosure Schedules) and which anticipated forfeited awards (or portions thereof) are listed on <u>Attachment 5.9(k)(i)</u> set forth on <u>Schedule 5.9(k)</u> of the Disclosure Schedules (which attachment to schedules shall be updated by the Seller and delivered to the Buyer two (2) Business Days prior to the Closing Date). Any such awards provided by the Company Group may be in the form of one or more cash, equity or equity-based instruments of the Company Group that preserve the intrinsic value of the forfeited awards, as determined in the discretion of the Company. "**Performance Level**" means for all outstanding performance-based Seller equity awards, the greater of target and actual or projected performance through the Closing Date, as reasonably determined by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>WARN Act</u>. The members of the Company Group shall be solely responsible for and assume all liabilities for the provision of notice or payment in lieu of notice and any applicable penalties under the Worker Adjustment and Retraining Notification Act or any similar applicable Law ("**WARN**") arising as a result of the transactions contemplated hereby to the extent such Losses arise as a result of actions taken by members of the Company Group on or following the Closing, and the Company hereby indemnifies the Seller and its Affiliates against and agrees to hold each of them harmless from any Losses incurred or suffered by the Seller or its Affiliates with respect to WARN, to the extent such Losses arise as a result of actions taken by members of the Company Group on or following the Closing. The Seller shall be solely responsible for all liabilities for the provision of notice or payment in lieu of notice and any applicable penalties under WARN arising as a result of the transactions contemplated hereby to the extent such Losses arise as a result of actions taken by the Seller and its Affiliates on or prior to the Closing, and the Seller hereby indemnifies the Company and its Affiliates against and agrees to hold each of them harmless from any Losses incurred or suffered by the Company

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or its Affiliates with respect to WARN, to the extent such Losses arise as a result of actions taken by the Seller and its Affiliates on or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Third-Party Beneficiaries</u>. Notwithstanding anything in this Agreement to the contrary, nothing in this <u>Section 5.9</u>, express or implied, (i) is intended to or shall confer upon any Person other than the Parties, including any Business Employee or any beneficiary or dependent thereof, any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, (ii) shall establish, or constitute an amendment, termination or modification of, or an undertaking to amend, establish, terminate or modify, any benefit plan, program, agreement or arrangement or (iii) shall create any obligation on the part of the Seller, any member of the Company Group, the Buyer or any of their respective Affiliates to employ any Business Employee for any period following Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Information and Consultation</u>. Without prejudice to the Company's obligations in <u>Section 5.9(a)(i)</u>, the Company shall (or shall procure that its Affiliates shall) provide any information reasonably requested by the Seller (or its Affiliates) for the purposes of any information and consultation process relating to the Business Employees or their works councils or other employee representative bodies, including as further detailed in <u>Exhibit M</u>. Further, and if so requested by the Seller or reasonably requested by the Company, the Company shall (or shall cause its Affiliates to) send an appropriate representative to any meetings of the works councils or other employee representative bodies and shall cooperate with the Seller or any of its Affiliates regarding the preparation for and conduct of any such meeting(s), the information to be provided at such meeting(s) and the information and consultation process with such works councils or other employee representative bodies generally. Where required by local Law, the Parties acknowledge that any required consultation process with works councils or other employee representative bodies should occur at a moment in time when the works councils or other employee representative bodies are still able to have a meaningful impact on the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Delayed Transfer Employees</u>. In the event that the transfer of employment to the Company or its Subsidiaries of any Business Employee is delayed (a "**Delayed Transfer Employee**") because: (i) neither the Company nor its Subsidiaries has a local legal entity or presence to the extent required by Law in the relevant jurisdiction for a Non-ARD Business Employee or an ARD Business Employee to take up employment with the Company or a Subsidiary with effect from either Local Closing Date or the Closing Date in accordance with this <u>Section 5.9</u>; or (ii) information and consultation, including as set forth in <u>Exhibit M</u>, has not been completed in accordance with applicable Law, the Seller shall use reasonable endeavors to cause, subject to compliance with applicable Law, the services of any such Delayed Transfer Employees to be provided to the Company or its Subsidiaries, until such date (A) for a maximum period of twelve (12) months following the Closing Date as the Company or a Subsidiary has an approved local presence in the relevant jurisdiction; or (B) as the relevant information and consultation process has concluded in accordance with applicable Law, including as set forth in <u>Exhibit M</u> (as applicable, the "**Delayed Employee Transfer Date**"). In consideration of such Delayed Transfer Employees providing services to the Company or any Affiliates during the period between the Closing Date and the relevant Delayed Employee Transfer Date, the Company shall reimburse the Seller (for and on behalf of itself and any Affiliate) for the Delayed Transfer Employee Charges incurred between the Closing Date and the relevant Delayed Employee Transfer Date. The Seller shall provide written invoices to the Company for such Delayed Transfer Employee Charges on a monthly basis. If, by the Delayed Employee Transfer Date, the relevant Delayed Transfer Employee has not resigned and has been unable to take up employment with the Company or any Affiliate, the Seller (or, as applicable, its Affiliate) shall be entitled to terminate the employment of the relevant Delayed Transfer Employee and provide such Delayed Transfer Employee with severance no greater than the severance required to be paid in connection with such termination under applicable Law, the cost of which the Seller shall be solely responsible for, and the Seller shall indemnify and hold harmless the Company (for and on behalf of itself and any Affiliate) for the Losses associated with any claim for a breach of any obligations under any Law in any jurisdiction in connection with the termination of such Delayed Transfer Employee's employment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;<u>Immigration Employees</u>. The Seller, the Company and the Buyer (through its purchase of the Company Transferred Interests) shall reasonably co-operate to facilitate the transfer of Business Employees as anticipated by this Agreement, including providing such assistance as may be reasonably required to transfer any visa, work permit or other approvals required to transfer employment ("**Immigration Approvals**"). If any Business Employee requires an Immigration Approval as required to transfer employment as contemplated by this Agreement and such approval is not obtained by the Local Closing Date or the Closing Date or, in the case of a Delayed Transfer Employee, the Delayed Employee Transfer Date, the Seller, the Company and Buyer shall use commercially reasonable efforts to obtain such Immigration Approvals as soon as reasonably practicable and to effect the transfer such employment in accordance with the terms of <u>Section 5.9</u> and no later than fifteen (15) Business Days after the date of receipt of such Immigration Approval and make the services of such employee available to the Company or its Subsidiaries until such time as the relevant Immigration Approval is obtained, <u>provided</u> that the costs of the provision of such services shall be borne by the Buyer, in accordance with the Buyer's Share, and the Seller bearing the remainder. Without prejudice to the foregoing, if the Immigration Approval has not been obtained within twelve (12) months of the Closing Date or, as applicable, the Delayed Employee Transfer Date (and taking into account any adjustments required to such timings for Inactive Employees), the Seller (or an Affiliate) may terminate the employment of the relevant Business Employee and provide such Business Employee with severance required to be paid in connection with such termination under such Business Employee's employment contract and the Seller shall indemnify and hold harmless the Company (for and on behalf of itself and any Affiliate) for all Losses associated with any claim for a breach of any obligations under any Law in any jurisdiction in connection with the termination of such employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;<u>Assumed Plans; Transferred Subsidiary Plans; UK Pension Plan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall, or shall cause one of its Subsidiaries to, assume each Assumed Plan in relation to the Transferred Employees. Each Transferred Subsidiary Business Employee shall continue to participate in the applicable Transferred Subsidiary Plans. With effect from the Closing Date, the Transferred Employees shall cease active participation in each Business Employee Plan that is not an Assumed Plan or a Transferred Subsidiary Plan. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp; Seller shall (or shall cause its Affiliates and Subsidiaries to) use commercially reasonable efforts to release Kimberly-Clark Limited and Kimberly-Clark Europe Limited (together the "**UK Pension Employers**") of their obligations to the UK Pension Plan (including under Section 75 of the Pensions Act 1995 and the trust deed and rules of the UK Pension Plan) (the "**UK Pension Release**") prior to the Closing Date. Without prejudice to the indemnity set forth in this <u>Section 5.9(q)(ii</u>), the obligation to effect the UK Pension Release shall not require the Seller (or its Affiliates) to pay the Section 75 debts in respect of the UK Pension Employers. To the extent that the UK Pension Release is not achieved prior to the Closing, then the Seller shall continue to use commercially reasonable efforts, and the Company shall (or shall cause its Affiliates to) use commercially reasonable efforts to assist the Seller (or its Affiliates) to achieve the UK Pension Release as soon as reasonably practicable after the Closing. The UK Pension Plan and any obligation on a Buyer Indemnified Party to make any payment or to put in place financial support to or in respect of the UK Pension Plan on or after the Closing Date, including any such payment or support following exercise of the UK Pensions Regulator's powers, including any power to issue a notice, order or injunction or to issue a financial support direction or contribution notice under the Pensions Act 1995 or the Pensions Act 2004 or pursuant to Section 75 of the Pensions Act 1995 or the trust deed and rules of the UK Pension Plan, shall be treated as an Excluded Liability suffered directly by a Buyer Indemnified Party, and for the avoidance of doubt, the UK Pension Plan shall not be an Assumed Plan or Transferred Subsidiary Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The Company (or its Subsidiaries) shall or shall cause the UK Pension Employers to consider and, if reasonable and to the extent consistent with the UK Pension Employers implied duty of trust and confidence, refuse any requests to early retirement under the UK Pension Plan for so long as the UK Pension Employers are "Successor Employers" under the UK Pension Plan Trust

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Deed & Rules and have a right to consent to early retirement under the UK Pension Plan Trust Deed & Rules. 

Section 5.10&nbsp;&nbsp;&nbsp;&nbsp;<u>R&W Insurance Policy</u>. After the Closing, the Buyer agrees that it will pay all premiums, underwriting fees, brokers' commissions and other costs and expenses related to the R&W Insurance Policy, and that it will not agree to any amendment, variation or waiver of any provision under the R&W Insurance Policy that would reasonably be expected to alter the R&W Insurer's waiver of its rights to bring any claim against the Company, the Seller or any other Seller Indemnified Party by way of subrogation or claim for contribution or otherwise, or would otherwise adversely affect the Seller or any other Seller Indemnified Party without the Seller's prior written consent, in each case, except with respect to claims arising from Fraud.

Section 5.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Refunds and Remittances; Wrong Pockets; Mail and Other Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Refunds and Remittances</u>. If at any time within twenty-four (24) months after the Closing, (i) the Seller or any of its Affiliates receive any refund or other amount that is a Transferred Asset or is otherwise properly due and owing to a member of the Company Group in accordance with the terms of this Agreement and the Transition Services Agreement, the Seller shall promptly remit, or shall cause to be remitted, such amount to the Company, and (ii) the Company Group receives any refund or other amount that is an Excluded Asset or is otherwise properly due and owing to the Seller or any of its Affiliates in accordance with the terms of this Agreement, the Company Group shall promptly remit, or shall cause to be remitted, such amount to the Seller, in each case no later than forty-five (45) days following receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Wrong Pockets</u>. If at any time within twenty-four (24) months after the Closing, or with respect to the Japan Trademarks, twenty-four (24) months after the Japan Assignment Date, (i) either the Seller or the Company identifies (x) a Transferred Asset in the possession or control of the Seller or any of its Affiliates or (y) that the Seller or any or any of its Affiliates is liable under or otherwise responsible for discharging an Assumed Liability, the Seller and the Company shall, and shall cause their respective Affiliates to (subject to <u>Section 2.5</u>, <u>Section 5.13</u> and <u>Section 5.14</u>), promptly transfer, or cause to be transferred, all rights, title and interest in such asset to the Company, or another member of the Company Group, or promptly assume, or cause to be assumed, such liability by the Company, or another member of the Company Group, in each case, for no additional consideration, and (ii) either the Seller or the Company identifies (x) an Excluded Asset in the possession or control of the Company Group or (y) that Company Group is liable under or otherwise responsible for discharging an Excluded Liability, the Seller and the Company shall, and shall cause their respective Affiliates to (subject to <u>Section 2.5</u>, <u>Section 5.13</u> and <u>Section 5.14</u>), promptly transfer, or cause to be transferred, all rights, title and interest in such asset to the Seller, or its designated Affiliate, or promptly assume, or cause to be assumed, such liability by the Seller, or its designated Affiliate, in each case, for no additional consideration; <u>provided</u> that, except as otherwise expressly provided herein, none of the Company, the Seller or any of their Affiliates shall have any obligation to make any material payments or incur any material liability or offer or grant any concession or accommodation (financial or otherwise) or commence or participate in any Action with respect to any such transfer or assumption, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Mail and Other Communications</u>. From and after the Closing Date, the Seller and its Affiliates may receive mail, packages and other communications (including electronic communications) properly belonging to the Company and its Affiliates. From and after the Closing Date, the Company and its Affiliates may receive mail, packages and other communications (including electronic communications) properly belonging to the Seller and its Affiliates. Accordingly, at all times from and after the Closing Date, each of the Seller and the Company authorizes the other and their respective Affiliates to receive and, to the extent reasonably necessary to identify the proper recipient in accordance with this <u>Section 5.11(c)</u>, open all mail, packages and other communications received by it and not unambiguously intended for the other Party (or its Affiliates) or any of the other Party's (or its Affiliates') officers or directors, and to retain

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the same to the extent that they exclusively relate to the Business (in the case of receipt by the Company and its Affiliates) or the Excluded Business (in the case of receipt by the Seller and its Affiliates), or to the extent that they do not exclusively relate to the Business (in the case of receipt by the Company and its Affiliates) or the Excluded Business (in the case of receipt by the Seller and its Affiliates), the receiving Party shall promptly after becoming aware thereof refer, forward or otherwise deliver such mail, packages or other communications (or, in case the same relate to both the Business and the Excluded Business, copies thereof) to the other Party. The provisions of this <u>Section 5.11(c)</u> are not intended to, and shall not be deemed to, constitute (i) an authorization by either the Seller or the Company (or any of their respective Affiliates) to permit the other (or its Affiliates) to accept service of process on its behalf, and neither the Seller nor the Company is or shall be deemed to be the agent of the other for service of process purposes or (ii) a waiver of attorney-client privilege by either the Seller or the Company (or any of their respective Affiliates).

Section 5.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Bulk Transfer Laws</u>. The Parties each hereby waives compliance by the other Party with the provisions of any so-called "bulk transfer Laws" of any jurisdiction in connection with the transfer of the Transferred Assets to the Company.

Section 5.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Comingled Contracts</u>. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each of the Seller, the Company and the Buyer (through its purchase of the Company Transferred Interests) shall, and shall cause their respective Affiliates to, cooperate with each other and shall use their commercially reasonable efforts to, as agreed between the Buyer and the Seller (in each case, acting reasonably and in good faith), cause the Comingled Contracts (i) to be replaced with separate Contracts with the counterparty that provide that a member of the Company Group designated by the Buyer receives rights and obligations under such separate Contracts on economic and pricing terms and conditions that are equivalent, and on such other terms and conditions that are equivalent in all material respects, as applied *mutatis mutandis*, to those contract rights and obligations under such Comingled Contracts utilized by the Seller, the Selling Affiliates or any member of the Company Group in the conduct of the Business (including as to pricing metrics) or (ii) to be assigned without any amendment to any terms and conditions the portion of such Comingled Contracts that relates to the Business to the member of the Company Group designated by the Buyer (the Contracts under either <u>clause (i)</u> or <u>(ii)</u> of this <u>Section</u> 5.13 the "**Replacement Contracts**"). Any out-of-pocket costs or fees arising from establishing a Replacement Contract for a Comingled Contract, or in connection with any arrangement with respect thereto described in this <u>Section 5.13</u> (including any fee, expense or other consideration that is paid to a third party in order to establish such Replacement Contract) shall be borne by the Seller (prior to the Closing) and by the Company (after the Closing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each of the Buyer (through its purchase of the Company Transferred Interests), the Company and the Seller shall cooperate and provide each other with reasonable assistance in effecting such separation or assignment of the Comingled Contracts in accordance with <u>Section 5.13(a</u>) prior to the Closing and for a period of twelve (12) months following the Closing Date, which time period may be increased upon mutual agreement between the Seller and the Buyer (on behalf of itself and the Company). If the members of the Company Group and the Seller or its Affiliates are not able to effect the separation or assignment of a Comingled Contract prior to the Closing, then after the Closing, until any such Comingled Contract is separated or assigned into a Replacement Contract, to the extent permissible under Law and under the terms of such Comingled Contract, the Company and the Seller shall, and shall cause its Affiliates to, (i) assume and perform the liabilities under such Comingled Contract relating to its business or the businesses of its respective Affiliates (and shall promptly reimburse the other Party for any reasonable and documented out-of-pocket expenses relating thereto incurred by the other Party or its Affiliates), allocated in accordance with this <u>Section 5.13</u>, (ii) hold in trust for the benefit of the other Party, and shall promptly forward to the other Party, all monies (net of applicable Taxes, if any, imposed by a Governmental Authority in connection with the receipt of such monies) and other benefits received pursuant to such Comingled Contract relating to the business of the other Party (or the business of its respective Affiliates) and (iii) use commercially reasonable efforts to institute alternative arrangements

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intended to put the Parties in a substantively similar economic position as if such Comingled Contract were separated as described above; <u>provided</u> that, following the twelve (12)-month anniversary of the Closing Date, (w) the Seller and its Affiliates shall not have any obligation to renew any Comingled Contract upon the expiration or termination thereof, (x) the Seller and its Affiliates shall not extend the term or otherwise amend the terms of any Comingled Contract in a manner that would materially and adversely affect any member of the Company Group upon obtaining a Replacement Contract without the Buyer's prior written consent, (y) to the extent any such Comingled Contract contains an "evergreen" provision that automatically renews such Comingled Contract unless terminated or cancelled by either party thereto, the Seller and its Affiliates be prohibited from terminating or canceling such Comingled Contract as permitted pursuant to the terms thereof without the consent of the Buyer and (z) subject to this <u>Section 5.13(b</u>), none of the Seller, any of its Affiliates, the Company Group or the Buyer shall have any obligation to make any material payments, incur any material liability or offer or grant any concession or accommodation (financial or otherwise) or commence or participate in any Action in order to obtain any consents or approvals of third parties or effect the transfers or arrangements contemplated by this <u>Section 5.13</u>. Without limiting the obligations of the Seller and the Selling Affiliates to comply with this <u>Section</u> 5.13, the Seller shall have no liability relating to the replacement of any Comingled Contracts to the extent they are not separated as described above prior to twelve (12) months following the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge and agree that neither the Seller nor its Affiliates shall have any obligation to replace or separate any Contract or agreement that is not a Comingled Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;With respect to liabilities under or resulting from a given Comingled Contract, such liabilities shall, unless otherwise allocated pursuant to (i) this Agreement, (ii) a Replacement Contract or (iii) an agreement between the Parties or their Affiliates and the third party to such Comingled Contract, be allocated from time to time between the Seller and the Selling Affiliates, on the one hand, and the Company Group, on the other hand, as the case may be, based on the relative proportions of total benefits received (to the extent the liabilities relate to a specific period, over such period, and otherwise over the term of such Comingled Contract, measured up to the date of determination, without duplication) by the Seller and the Selling Affiliates, on the one hand, or the Company Group, on the other hand, under such Comingled Contract. The Company shall promptly (but in no event later than thirty (30) days following receipt of an invoice from the Seller) reimburse the Seller for any such reasonable and documented out-of-pocket costs, expenses, and payments in respect of such Comingled Contract that are the responsibility of a member of the Company Group under this <u>Section 5.13</u>, and neither the Seller nor any of its Affiliates shall have any liability whatsoever to any member of the Company Group, the Buyer or any of its Affiliates (including the Transferred Subsidiaries) arising out of the failure to obtain, in and of itself, any such consents or approvals required by this <u>Section 5.13</u>, and the failure to receive, in and of itself, any such consents or approvals or to effect any such transfers or arrangements shall not be taken into account with respect to whether any condition to the Closing set forth in <u>Article VII</u> shall have been satisfied. Notwithstanding the foregoing, each Party shall be solely responsible for any and all liabilities to the extent arising out of or relating to such Party's (or its Affiliates') breach of such Comingled Contract. From and after the Closing, (y) the Company shall indemnify and hold harmless the Seller and its Affiliates for all Losses arising from or relating to the portion of any Comingled Contract to be apportioned to any member of the Company Group that constitute an Assumed Liability and (z) the Seller shall indemnify and hold harmless the Company Group for all Losses arising from or relating to the portion of any Comingled Contract to be apportioned to the Seller and its Affiliates that constitute an Excluded Liability.

Section 5.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Comingled Permits</u>. To the extent that there are any Permits related to the Business that are also related to the Excluded Business and do not otherwise relate to any Real Property (each, a "**Comingled Permit**"), such Comingled Permits will remain with the Seller; <u>provided</u> that, prior to the Closing and for a period of twelve (12) months after the Closing Date, the Seller shall, and shall cause each of its Affiliates to, cooperate and assist the Company Group and shall use its commercially reasonable efforts to, as the Buyer reasonably requests in writing, (a) to promptly obtain and establish replacement Permits ("**Replacement Permits**") to be held by a member of the Company

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Group designated by the Buyer for any such Comingled Permits, or (b) to establish reasonable and lawful arrangements designed to provide a member of the Company Group designated by the Buyer with all of the Seller's or its Affiliates' rights with respect to the Business under such Comingled Permit. Any out-of-pocket costs or fees arising from establishing a Replacement Permit for a Comingled Permit, or in connection with any arrangement with respect thereto described in this <u>Section</u> 5.14 (including any reasonable and documented out of pocket fee, expense or other consideration that is required to be paid to a third party in order to establish such Replacement Permit), shall be borne by the Seller (prior to the Closing) and the Company (after the Closing).

Section 5.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Reorganization</u>. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Prior to the Closing, the Seller shall, and shall cause its Subsidiaries and Selling Affiliates to, take all steps necessary to effect and carry out a corporate reorganization relating to the Business (including the Transferred Assets and the Assumed Liabilities) and the related transactions to complete the separation of the Business as detailed in <u>Schedule 5.15</u> of the Disclosure Schedules (the "**Reorganization**"), including by complying with and completing all information and consultation requirements under applicable Law relating to the Business Employees or their works councils or other employee representative bodies, by means of which certain Transferred Assets and certain Assumed Liabilities shall be transferred to the Transferred Subsidiaries. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall use reasonable best efforts to provide the Buyer with drafts of each material Company Transfer Agreement for each jurisdiction (it being understood and agreed that the Local Share Transfer Agreement and Local Asset Transfer Agreement for each jurisdiction, as applicable, is deemed a material Company Transfer Agreement for purposes of this <u>Section 5.15(b)</u>), and any other material Contract or other material documentation to effect the Reorganization reasonably in advance of execution of the same and shall consider in good faith any reasonable changes proposed by the Buyer. Notwithstanding the foregoing sentence, the Seller shall disclose to the Buyer any proposed modifications to <u>Schedule 5.15</u> of the Disclosure Schedules at least ten (10) Business Days (or, in the case of any proposed modifications necessitated by a change in applicable Law after the date hereof, as soon as reasonably practicable) prior to the execution of any such modifications and shall consider in good faith any reasonable changes proposed by the Buyer; <u>provided</u> that (i) the Buyer shall notify the Seller in writing if any such modifications would reasonably be expected to be materially adverse to the Buyer or its Affiliates, and the Buyer and Seller shall cooperate in good faith to identify a commercially reasonable manner to implement such proposed modification in a manner that would not reasonably be expected to be materially adverse to the Seller, the Buyer or their respective Affiliates, and (ii) the Seller shall obtain the Buyer's prior written consent to any such modification that would reasonably be expected to materially impair or materially alter the value of the Business or the Transferred Subsidiaries, taken as a whole (it being understood and agreed that any such modifications that would reasonably be expected to alter the allocation of Transferred Assets, Excluded Assets, Assumed Liabilities and Excluded Liabilities set forth in this Agreement as of the date of this Agreement between the Company Group, on the one hand, and the Seller, on the other hand, shall require the Buyer's prior written consent). Notwithstanding the foregoing, in no event shall the Seller be required to obtain the Buyer's written consent to immaterial modifications that would not be reasonably expected to be materially adverse to the Company Group, the Buyer or the value of the Business or any Transferred Subsidiary or that would not alter the allocation of Transferred Assets, Excluded Assets, Assumed Liabilities and Excluded Liabilities set forth in this Agreement as of the date of this Agreement between the Company Group, on the one hand, and the Seller, on the other hand. The Seller may update <u>Section 5.15</u> of the Disclosure Schedules one or more times, no later than ten (10) Business Days (or, in the case of any proposed modifications necessitated by a change in applicable Law after the date hereof, as soon as reasonably practicable) prior to the Closing Date (and in any event prior to the delivery of the Preliminary Closing Statement), to include any new entities formed in order to effect the Reorganization; <u>provided</u> that the representations and warranties set forth in the first sentence of <u>Section 3.4(d)</u> shall as of the Closing, be true and correct for each such newly formed entities. As promptly as practicable following the date of this Agreement, the Seller shall setup a virtual data room to which the Buyer and its Representatives have access, organized on a country-by-country basis, where

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the Seller and the Company shall deposit all material agreements and documentation to effect the Reorganization. Prior to the Closing, the Seller shall provide to the Buyer in such virtual data room copies of all material, executed final documentation effecting each step of the Reorganization, it being understood and agreed that, prior to the Closing the Seller shall make available to the Buyer in such virtual data room (A) copies of such Local Share Transfer Agreements and Local Asset Transfer Agreements, as applicable, and (B) copies of documentation evidencing satisfaction of each of the Reorganization steps necessary to be completed to satisfy the condition set forth in <u>Section 7.1(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Party shall, and shall cause each of its Affiliates that is a party to a Company Transfer Agreement to, cooperate in good faith with the counterparties to such Company Transfer Agreement to arrive at such mutual agreements between the parties thereto as the terms of such Company Transfer Agreement contemplate and as are consistent with the terms of this Agreement. Each Party further agrees that the only amendments that will be made to the form of Local Share Transfer Agreement and the form of Local Asset Transfer Agreement are those that are necessary or appropriate to effect the transfer of the Transferred Assets or the assumption of the Assumed Liabilities and the transfer of the Excluded Assets or the assumption of the Excluded Liabilities pursuant to this Agreement and that are consistent with this <u>Section 5.15(c)</u>. Each Local Share Transfer Agreement and each Local Asset Transfer Agreement to effect the Reorganization shall be in all material respects in the forms attached hereto as <u>Exhibit E</u> and <u>Exhibit F</u>, respectively, in respect of any jurisdiction, except in each case for: (i) the deletion of provisions which are inapplicable to the Transferred Assets or Assumed Liabilities or Excluded Assets or Excluded Liabilities, as applicable, that are the subject of such Local Share Transfer Agreement or Local Asset Transfer Agreement, as applicable; (ii) such changes as may be necessary to satisfy requirements of applicable Law; (iii) such other changes as may be mutually agreed by the Seller and the Buyer; and (iv) such changes as may be necessary to effect Transfer Taxes or VAT provisions required for local jurisdictions, including any customary transfer as a going concern language, provided the risk allocation shall reflect <u>Section 6.3(a)</u> of this Agreement. Notwithstanding anything to the contrary in this Agreement or in any Company Transfer Agreement, the Parties acknowledge and agree that the Company Transfer Agreements are being entered into solely for the purpose of facilitating the transfer of the Company Group Equity Interests and the Transferred Assets and the assumption of the Assumed Liabilities or the transfer of the Excluded Assets and the assumption of the Excluded Liabilities in each of the relevant jurisdictions, and that the terms of this Agreement shall govern in all respects the transfer of the Company Group Equity Interests and the Transferred Assets and the assumption of the Assumed Liabilities and the transfer of the Excluded Assets and the assumption of the Excluded Liabilities, and that the payment of the Purchase Price under this Agreement shall be deemed to include the payment of any applicable purchase price under any Company Transfer Agreement. Notwithstanding anything to the contrary in this Agreement or in any Company Transfer Agreement, in the event that the Company Transfer Agreement requires any local payment of consideration or settlement, the Buyer shall, and shall cause its Affiliates to, cooperate in good faith with the Seller so that the Seller can make, or cause to be made, any payments necessary to effectuate the Company Transfer Agreement. In the event of any conflict between the terms of this Agreement and the terms of any Company Transfer Agreement, the terms of this Agreement shall prevail.

Section 5.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Reorganization Committee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Within thirty (30) Business Days following the date hereof, the Parties shall establish and hold the first meeting of a reorganization committee (the "**Reorganization Committee**"), the purpose of which shall be, subject to and solely to the extent consistent with applicable Laws and the Confidentiality Agreement, among other mutually agreed objectives, (i) providing and discussing updates on the efforts of the Seller with respect to the Reorganization(including the calculation of Seller Transaction Taxes and Specified Transaction Taxes), (ii) discussing and providing information relating to the status of, and any delays known or reasonably expected or any other legal or operational or Tax issues with respect to the Company Group in relation to, implementation and completion of the Reorganization, (iii) discussing and providing information related to the specific transactions to be implemented in order to move the Transferred Assets, the Transferred Subsidiaries and the Assumed

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Liabilities into the Company Group and the Excluded Assets and Excluded Liabilities out of the Company Group (including a copy of any analysis that the Seller or any of its Affiliates has obtained regarding the expected Tax consequences to the Company Group of those transactions; <u>provided</u> that (x) any such analysis shall be shared with the Buyer on a "non-reliance basis" and subject to any other conditions as to reliance or confidentiality that may be required by the third-party tax advisor that prepared such analysis, and (y) the Seller shall be entitled to redact from any such analysis any information relating to the Tax consequences of the relevant transactions to the Seller or any of its Affiliates (other than any member of the Company Group), which the Seller considers (acting reasonably and in good faith) as not relevant to the Tax consequences of the transactions to the Company Group), excluding, for the avoidance of doubt, such information relating to the Seller and its Affiliates to the extent unrelated to the Business and the transactions contemplated by this Agreement, any Company Transfer Agreement or any Ancillary Agreement, (iv) discussing and providing information relating to the status of any Debt Financing pursuant to <u>Section 5.31</u> (and any Tax issues with respect to the Company Group in relation to the structuring of any Debt Financing) and (v) discussing any steps that are reasonably necessary to remediate delays with, or issues relating to, implementation and completion of the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise agreed in writing (email being acceptable), the Reorganization Committee will meet on a monthly basis either in person or virtually, or at any other reasonably requested time and place mutually agreed by the Buyer or the Seller. The Reorganization Committee shall be composed of four (4) designees of the Buyer Parent and four (4) designees of the Seller and its Affiliates representing the Business. The initial members of the Reorganization Committee shall be determined by mutual agreement of Buyer Parent and Seller reasonably promptly after the date hereof. A quorum of the Reorganization Committee will require attendance from at least one representative from each of the Buyer Parent and the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;A Party may replace any or all of its representatives on the Reorganization Committee, from time to time by prior written notice to the other representatives on the Reorganization Committee; <u>provided</u> that any such replacement shall have reasonably sufficient seniority and experience to undertake and perform the obligations of such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Buyer Parent or the Seller may engage third-party advisors to participate in Reorganization Committee meetings or advise such Party in connection with Reorganization Committee meetings; <u>provided</u> that any fees, costs and expenses incurred in connection with the engagement of any such third-party advisor shall be borne by the Party engaging such third-party advisor. The Buyer Parent shall consult with the other members of the Reorganization Committee regarding the scope, access and performance of any such third-party advisors engaged by the Buyer Parent. Any third-party advisor shall be deemed as a "Representative" as such term is defined in and for purposes of the Confidentiality Agreement and shall be subject to the applicable terms of the Confidentiality Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall use reasonable best efforts to provide the Reorganization Committee with such information that any member of the Reorganization Committee reasonably requests in order for the Reorganization Committee to be informed regarding the progress of the Reorganization, and to be able to discuss any issues, delays, proposed changes or other risks in connection with the Reorganization. Such information shall in any event not include information (x) if the provision of that information would not be permitted under any applicable Law or (y) regarding Excluded Assets or Excluded Liabilities (provided that the Seller shall update the Reorganization Committee on, and the members of the Reorganization Committee may reasonably request, updates regarding the carveout of any Excluded Assets or Excluded Liabilities from the Company Group). Notwithstanding the foregoing, the Seller and its Affiliates shall not be required to provide any information to the Reorganization Committee to the extent that such provision, in the Seller's good faith determination, could or could reasonably be expected to adversely impact the independent business operations of the Seller and its Affiliates or violate any contractual, legally or fiduciary obligation of confidentiality of the Seller or any of its Affiliates; <u>provided</u> that the Seller and its Affiliates shall use commercially reasonable efforts to make reasonable substitute disclosure arrangements that do not result in such adverse impact or violation. For the avoidance of

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doubt, the Seller shall not be required to make available to the Buyer or its Affiliates any Seller Consolidated Return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;In relation to the matters set forth in <u>Section 5.16(a)</u> that are related to the Reorganization or the Debt Financing, the Seller and its Affiliates shall use commercially reasonable efforts to take into consideration the avoidance of actions or positions that would have a disproportionate and adverse impact on the Tax position or Tax liabilities of the Seller or any of its Affiliates, on the one hand, or the Buyer or any of its Affiliates (including, after the Closing, members of the Company Group), on the other hand (with respect to the Reorganization, solely to the extent the Buyer has made the Seller aware of such considerations in writing, and with respect to the Debt Financing, solely to the extent the Seller has made the Buyer aware or the Buyer has made the Seller aware of such considerations in writing); <u>provided</u>, <u>however</u>, that nothing in this <u>Section 5.16(f)</u> shall require the Seller to modify any of the steps set forth in <u>Section 5.15</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge that, between the date of this Agreement and the Closing Date, the Seller shall determine (acting reasonably and in good faith): (i) the aggregate amount of anticipated Transfer Taxes and VAT (other than Recoverable VAT) attributable to the Company Transfer (such amount, "**Specified Transaction Taxes**"); (ii) the aggregate amount of anticipated Recoverable VAT attributable to the Company Transfer; and (iii) the amount of cash expected to be held by the Company Group at the Calculation Time for the purposes of paying Specified Transaction Taxes and Recoverable VAT, and shall notify the Buyer in writing of its reasonable determination of Specified Transaction Taxes, such Recoverable VAT and such amount of cash and the anticipated quantum of, timing of advance of and parties to any Recoverable VAT Loans which the Seller intends to advance (or procure that its Affiliates advance) in respect of such Recoverable VAT as contemplated by Section 6.3(b). The Seller shall reasonably promptly provide the Buyer with such supporting documentation and information as the Buyer may reasonably request in connection with the Seller's determination of Specified Transaction Taxes and Recoverable VAT, which documentation and information shall be provided in a form reasonably satisfactory to the Buyer, acting in good faith. In the event that the Seller reasonably determines that Specified Transaction Taxes are materially lower than $24,000,000, then the Parties may, by mutual written agreement, reduce the Specified Amount prior to the date that the Final Closing Statement becomes final and binding pursuant to <u>Section 2.10</u>. In the event that the Seller reasonably determines that Specified Transaction Taxes are at least equal to $30,000,000, the Specified Amount shall be increased to $15,000,000. The Parties acknowledge that the final amount of Specified Transaction Taxes may be unknown as of the Closing Date or as of the date that the Final Closing Statement becomes final and binding pursuant to <u>Section 2.10</u> and, accordingly, any adjustment to the Specified Amount pursuant to this <u>Section 5.16(g)</u> shall be based upon estimates prepared in good faith by the Seller.

Section 5.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Separation of Business Data</u>. No later than 90 days following the date of the first meeting of the Reorganization Committee, the Parties shall discuss in good faith and agree on a plan for the transfer and hand over of all Business Data included in the Transferred Assets and Transferred Computer Systems that are not already in the possession of or controlled by, or will not, as of the Closing, be in the possession of or be controlled by, a member of the Company Group (the "**IT Separation Plan**"). From and after the date hereof, the Seller shall use commercially reasonable efforts to implement and complete all separation activities assigned to it in the IT Separation Plan on the timeline set forth therein and any costs and expenses incurred in connection with such separation activities by or on behalf of the Seller or the Company Group or any of their Affiliates shall be borne by the Seller.

Section 5.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Intercompany Accounts; Cash</u>. (a) At or prior to the Closing, all intercompany accounts, except for those accounts listed on <u>Schedule 5.18</u> of the Disclosure Schedules, between the Seller or any of its Affiliates (other than members of the Company Group), on the one hand, and any member of the Company Group, on the other hand, shall be fully settled or otherwise eliminated, in each case, without further Liability of any party thereunder and (b) prior to the Calculation Time, any and all Cash (excluding the Minimum Cash and any cash held by a member of the Company Group for

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the purpose of satisfying a Tax liability for which Seller is responsible pursuant to <u>Section 6.1(b)</u> or <u>Section 6.3(b)</u>) of the Company Group may be extracted from the Company Group by the Seller, in the case of each of clause (a) and clause (b), in such a manner as the Seller shall determine in its sole discretion.

Section 5.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Intercompany Arrangements</u>. At or prior to the Closing, other than any intercompany arrangement governing the intercompany accounts listed on <u>Schedule 5.18</u> of the Disclosure Schedules, all arrangements, understandings or Contracts, including all obligations to provide goods, services or other benefits, by the Seller or any of its Affiliates (other than members of Company Group), on the one hand, and any member of the Company Group, on the other hand, shall be terminated without any party thereto having any continuing obligations or Liability to the other and be of no further force or effect so that, as of the Closing Date, there shall be no intercompany Contracts or intercompany obligations, including any intercompany assets or liabilities, except for (i) this Agreement, the Company Transfer Agreements and the Ancillary Agreements (and each other agreement or instrument expressly contemplated by this Agreement, any Company Transfer Agreements or any Ancillary Agreements to be entered into by any of the Seller or its Affiliates (other than members of the Company Group), on the one hand, and any member of the Company Group on the other hand), (ii) any Contracts or understandings to which any unaffiliated third party is a party (including the Comingled Contracts) and (iii) the other arrangements, understandings or Contracts listed in <u>Schedule 5.19</u> of the Disclosure Schedules.

Section 5.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Release</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except (x) as expressly set forth <u>Section 5.18</u> or <u>Section 5.19</u>, (y) for any rights or obligations of the Seller or its Affiliates under the terms of this Agreement, any Company Transfer Agreement or any other Ancillary Agreement, and (z) any Intercompany Agreements set forth on <u>Schedule 3.20</u> of the Disclosure Schedules, and subject to <u>Section 5.20(c)</u>, effective as of the Closing, the Seller, on behalf of itself and each of its Affiliates and each of its and their respective past, present or future general or limited partners, management companies, members, stockholders, equity holders, Controlling Persons or Affiliates, or any successor or assign of any of the foregoing (collectively, the "**Releasing Seller Parties**"), hereby irrevocably and unconditionally releases and forever discharges the members of the Company Group, the Buyer and its Affiliates, and each of the foregoing's respective past, present or future officers, directors, employees, agents, general or limited partners, managers, management companies, members, advisors, stockholders, equity holders, Controlling Persons, other Representatives or Affiliates, or any heir, executor, administrator, successor or assign of any of the foregoing (collectively, the "**Released Buyer Parties**"), of and from any and all Action, causes of Action, executions, duties, debts, dues, accounts, bonds, Contracts and covenants (whether express or implied), and claims and demands whatsoever, whether in Law or in equity (whether based upon contract, tort or otherwise), including, for the avoidance of doubt*,* any Environmental Law, that the Releasing Seller Parties may have against each of the Released Buyer Parties, now or in the future, in each case, arising out of or relating to, the organization, management, ownership or operation of the Business, the Company Group, the Transferred Assets or the Assumed Liabilities prior to the Closing (the foregoing, the "**Seller Released Claims**"). Without limitation of the foregoing, the Seller, on behalf of itself and the other Releasing Seller Parties, covenants and agrees that it shall not bring, initiate or support, directly or indirectly, or permit any other Person to bring, initiate or support, directly or indirectly, any Seller Released Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except (x) as expressly set forth in <u>Section 5.18</u> or <u>Section 5.19</u>, (y) for any rights or obligations of the Company, the Buyer or its Affiliates under the terms of this Agreement, any Company Transfer Agreement or any other Ancillary Agreement, and (z) any Intercompany Agreements set forth on <u>Schedule 3.20</u> of the Disclosure Schedules, and subject to <u>Section 5.20(c)</u>, effective as of the Closing, the Company and the Buyer, on behalf of itself and each of its Affiliates and each of its and their respective past, present or future general or limited partners, management companies, members, stockholders, equity holders, Controlling Persons or Affiliates, or any successor or assign of any of the foregoing

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(collectively, the "**Releasing Buyer Parties**"), hereby irrevocably and unconditionally releases and forever discharges the Seller and its Affiliates, and each of the foregoing's respective past, present or future officers, directors, employees, agents, general or limited partners, managers, management companies, members, advisors, stockholders, equity holders, Controlling Persons, other Representatives or Affiliates, or any heir, executor, administrator, successor or assign of any of the foregoing (collectively, the "**Released Seller Parties**") of and from any and all Action, causes of Action, executions, duties, debts, dues, accounts, bonds, Contracts and covenants (whether express or implied), and claims and demands whatsoever, whether in Law or in equity (whether based upon contract, tort or otherwise), including, for the avoidance of doubt, any Environmental Law, that the Releasing Buyer Parties may have against each of the Released Seller Parties, now or in the future, in each case, arising out of or relating to, the organization, management, ownership or operation of the Business, the Transferred Subsidiaries, the Transferred Assets or the Assumed Liabilities prior to the Closing (the foregoing, the "**Buyer Released Claims**"). Without limitation of the foregoing, each of the Company and the Buyer, on behalf of itself and the other Releasing Buyer Parties, covenants and agrees that it shall not bring, initiate or support, directly or indirectly, or permit any other Person to bring, initiate or support, directly or indirectly, any Buyer Released Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this <u>Section 5.20</u>, in no event shall the foregoing releases in this <u>Section 5.20</u> include (i) any liability expressly contemplated by this Agreement, any Company Transfer Agreement or any other Ancillary Agreement (including the Governance Agreement) to be in effect between the Company, the Seller and the Buyer (or their respective Affiliates) after the Closing, or any enforcement thereof, (ii) any Contracts between the Seller or its Affiliates, on the one hand, and the Buyer or its Affiliates (other than the Company Group), on the other hand, or (iii) any Contract or liability not required to be terminated pursuant to <u>Section 5.19</u>.

Section 5.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Section 5.21(b</u>), from and after the Closing, the members of the Company Group shall cease to be insured by the current and past insurance policies and programs of the Seller and its Affiliates, including for the avoidance of doubt, any self-insurance, fronted insurance, or captive insurance policy or program, and none of the members of the Company Group, the Buyer or its other Affiliates shall have any access, right, title or interest to or in any such insurance policies and programs (including the right to make claims or receive proceeds thereunder) to cover any assets or any liability of the members of the Company Group or of or arising from the operation of the Business at any time, whether before, at or after the Closing, in each case including with respect to all known and incurred but not reported claims. Except as set forth in <u>Section 5.21(b</u>), each of Seller and its Subsidiaries and Affiliates (excluding members of the Company Group) may, to be effective at the Closing, amend any insurance policies and ancillary arrangements in the manner they deem appropriate to give effect to this <u>Section 5.21</u>. From and after the Closing, the Company shall be responsible for securing all insurance it considers appropriate for the Company Group and the Business. Except as set forth in <u>Section 5.21(b</u>), each of the Company and the Buyer further covenants and agrees that it will not, and will cause the members of the Company Group not to, and each member of the Company Group shall not, seek to assert or exercise any rights or claims of such member of the Company Group or the Business under or in respect of any current or past insurance policy or program of any of the Seller and its Affiliates (excluding members of the Company Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding <u>Section 5.21(a)</u>, with respect to events or circumstances relating to the Business, the Transferred Assets or the Assumed Liabilities that occurred or existed prior to the Closing (each, a "**Pre-Closing Event**") that are covered by a Seller Occurrence-Based Insurance Policy, the Seller shall, and shall cause its Affiliates to, after the Closing: (i) at the Company Group's request, take all reasonable actions to assist the Buyer and members of the Company Group in making claims under the Seller Occurrence-Based Insurance Policies in respect of a Pre-Closing Event (which claims, for the avoidance of doubt, shall be made by the Seller or its applicable Affiliate on behalf of the members of the Company Group or the Business) and use commercially reasonable efforts to pursue and seek

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recovery on such claims; (ii) provide members of the Company Group with reasonable access to such Seller Occurrence-Based Insurance Policies upon reasonable request (which policies shall not be disclosed to any third Person without the Seller's prior written consent); (iii) not accept or settle any such claims made in respect of such Pre-Closing Event without the prior written consent of the Buyer (which consent shall not be unreasonably withheld, conditioned or delayed); and (iv) remit, as promptly as practicable, any payment made under the Seller Occurrence-Based Insurance Policies in respect of any such claim to the applicable member of the Company Group (as directed by the Buyer). The Company Group shall exclusively bear the amount of (x) any "deductibles" or net retentions associated with such claims and (y) any reasonable and documented out-of-pocket expenses incurred by any member of the Company Group with respect to such claims to the extent they are not covered under the relevant insurance policies. Members of the Company Group shall promptly reimburse the Seller and its Affiliates for any reasonable and documented out-of-pocket costs and expenses incurred by them in connection with the provisions of this <u>Section 5.21(b)</u>. Neither the Seller nor any Affiliate of the Seller shall take any action to amend, modify, waive or terminate any Seller Occurrence-Based Insurance Policies in a manner that would adversely affect the rights of the members of the Company Group under this <u>Section 5.21(b)</u>.

<u>Section 5.22&nbsp;&nbsp;&nbsp;&nbsp;</u><u>Delayed Approvals and Delayed Closing.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If, with respect to any Potentially Delayed Jurisdiction, the Seller notifies the Buyer in writing (such notice, a "**Delay Notice**") no less than five (5) Business Days prior to the Closing that (x) any notice, authorization, approval, order, permit or consent of a Governmental Authority or any other Person required to complete the transfer of the Transferred Assets and Assumed Liabilities in such Potentially Delayed Jurisdiction has not been not obtained (a "**Delayed Approval**"), (y) notwithstanding the Seller's good faith efforts to effect the Reorganization prior to the Closing pursuant to <u>Section 5.15(a)</u>, it is impractical or illegal to complete the transfer of the Transferred Assets and Assumed Liabilities in such Potentially Delayed Jurisdiction or (z) the transfer of the Transferred Assets and Assumed Liabilities in such jurisdiction would unreasonably and adversely impact the Company's ability to operate the Business on the Closing in such Potentially Delayed Jurisdiction, in each case, on or prior to the date on which the conditions set forth in <u>Section 7.1</u>, <u>Section 7.2</u> and <u>Section 7.3</u> (other than the conditions that, by their nature, are to be satisfied on the Closing Date) shall have been satisfied or waived (each such Potentially Delayed Jurisdiction, an "**Outstanding Jurisdiction**"), the Parties agree (subject to the satisfaction of the conditions set forth in <u>Article VII</u>) that, <u>provided</u> that the Laws of such Outstanding Jurisdiction permit consummation of the transactions contemplated hereby in all territories other than the Outstanding Jurisdiction, the Parties will effect the Closing (including the payment, allotment and delivery of the full Purchase Price), subject to the terms of this Agreement, including by conveying, assigning, transferring or delivering to the Company all of the Seller's and the applicable Selling Affiliate's right, title and interest in the Transferred Assets, transferring any Business Employees employed by a Selling Affiliate in such Outstanding Jurisdiction (each, a "**Delayed Business Employee**") and the Company assuming the Assumed Liabilities pursuant to the terms and conditions hereof to the extent permissible under any applicable Law and subject to <u>Section 2.5</u>, <u>Section 5.13</u> and <u>Section 5.14</u>, it being agreed that the Closing shall refer to the consummation of such conveyance, assignment, transfer or delivery of such Transferred Assets and the assumption of such Assumed Liabilities at such time and shall only exclude, subject to <u>Section 2.5</u>, <u>Section 5.13</u> and <u>Section 5.14</u>, the Transferred Assets in that Outstanding Jurisdiction to which such Delayed Approval relates (a "**Delayed Business**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Parties set forth in this <u>Section 5.22</u> shall continue with respect to each Delayed Business until the earliest to occur of (i) the date a Delayed Approval is obtained, (ii) the date on which the Seller notifies the Company that any such assets subject to a Delay Notice are ready to be transferred into the Company and (iii) the date that is forty-eight (48) months after the Closing Date (the "**Hold-Back Termination Date**"), and until the earliest to occur of the foregoing (the date of such earliest occurrence, the "**Delayed Business Cut-Off Date**"), the Seller shall, and shall cause its Subsidiaries to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;use reasonable efforts to operate any Delayed Business in the Ordinary Course of Business in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;consult with the Company and the Buyer in respect of all material commercial decisions related to management and operation of any Delayed Business, and refrain from taking any action in respect of the management or operations of the Delayed Business as requested by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;hold in trust for the account of the Company all income, proceeds or other monies generated by the Delayed Business or received by the Seller or any of its Affiliates for, or on behalf of, the Delayed Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;in respect of any Delayed Business, not (A) declare or pay, in cash or in kind, any dividend or distribution, (B) make any payment in return of any share capital, (C) pay any director, monitoring or similar fees, (D) waive or release any amounts owed to such Delayed Business, or (E) otherwise make any payment to the Seller or any of its Affiliates (other than the any member of the Company Group) other than for goods sold or services rendered by the Seller or any of its Affiliates to the Delayed Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;From and after the Closing until the Delayed Business Cut-Off Date for any Delayed Business, the benefits and burdens of such Delayed Business shall be for the account of the Company. Within ten (10) Business Days of the end of each month, the Seller shall pay, or shall cause to be paid, to the Company the net profits (if any) of any Delayed Business for the immediately preceding month and shall provide a written statement setting forth in reasonable detail the calculation thereof. Notwithstanding the foregoing, the Board (as defined in the Governance Agreement) may determine an alternative schedule for such payments in the interests of mitigating any adverse Tax consequences of such payments (it being agreed and understood that such alternative schedule shall not require payments to be made more frequently than what is described in the immediately preceding sentence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Upon obtaining a Delayed Approval or the Seller notifying the Company that any such assets subject to a Delay Notice are ready to be transferred into the Company pursuant to <u>Section 5.22</u>, the Parties shall effect the transfer to the Company (or one or more Subsidiaries that the Company designates) of the Transferred Assets, the assumption of the Assumed Liabilities and the transfer of Delayed Business Employees related to such Delayed Business for the jurisdiction relating thereto, and, for purposes of <u>Section 2.1</u>, <u>Section 2.2</u>, <u>Section 2.3</u>, <u>Section 2.4</u>, <u>Section 2.7(b)(i)(C)</u>, <u>Section 2.7(c)(i)(C)</u>, <u>Section 5.9</u> and <u>Section 5.30</u>, to the extent applicable in connection with any Outstanding Jurisdiction, all references to the Closing or the Closing Date shall be deemed references to the applicable Delayed Business closing and the date thereof. For purposes of <u>Section 2.3(f</u>) and <u>Section 5.9</u>, to the extent applicable in connection with any Outstanding Jurisdiction, all references to the Transferred Employees shall be deemed to include all Delayed Business Employees. To the extent permissible under applicable Law, such transfer shall be retroactive to, and be deemed to have occurred on, the Closing Date; <u>provided</u> that, in accordance with <u>Section 2.5(a)</u>, to the fullest extent permitted by applicable Law, the Parties shall treat the Company as the owner of any Delayed Business as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the event that a Delayed Approval is not obtained with respect to a Delayed Business prior to the Hold-Back Termination Date, the Parties shall negotiate in good faith arrangements consistent with <u>Section 2.5</u> applicable to Non-Assignable Transferred Assets to deliver to the Company Group all of the economic claims, rights and benefits of such Delayed Business, and, to the extent such claims, rights and benefits are so delivered, the Company Group shall assume the economic burdens and obligations with respect thereto in accordance with this Agreement.

Section 5.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferred Machinery</u>. (a) As promptly as practicable following the date of this Agreement, and in any event prior to the Closing, the Seller shall, and shall cause each of its Affiliates to, (i) relocate and install at the Seller's sole cost and expense, each of the items of equipment

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and other personal tangible property set forth on <u>Schedule 5.23(a)</u> of the Disclosure Schedules to the facilities of the Company and its Affiliates indicated on such on <u>Schedule 5.23(a)</u> of the Disclosure Schedules and (ii) commence operations of such equipment and other personal tangible property, and (b) as promptly as practicable following the date of this Agreement, and in any event within ninety (90) days of the date of this Agreement (the "**Yankee Notice Period**"), the Seller shall use commercially reasonable efforts to allocate the Yankee Dryer Spares between the Company and the Seller as set forth on <u>Schedule 5.23(b)</u> and confirm the same in writing to the Buyer (the "**Yankee Notice**"). If the Seller is unable to deliver such Yankee Notice by the Yankee Notice Period, then the Parties shall reasonably and in good faith work to identify an equitable and fair allocation of the Yankee Dryer Spares (meaning an equal number of spare parts allocated to each of the Seller and the Company, with each such allocated spare part being adequate for certain of such Party's tissue machines), and shall agree to such allocation as promptly as practicable following the last day of the Yankee Notice Period, and in any event within thirty (30) days thereafter (the "**Yankee Determination**"). Following delivery of the Yankee Notice or the Yankee Determination, as applicable, the Seller shall arrange for and bear the costs to transport and deliver (i) any such Yankee Dryer Spare that will be owned by the Company per the Yankee Determination that currently resides outside of the ABU Geographic Region to the ABU Geographic Region and (ii) any such Yankee Dryer Spare that will be owned by the Seller per the Yankee Determination that resides in the ABU Geographic Region to a location outside of the ABU Geographic Region. For the avoidance of doubt, any Yankee Dryer Spare that upon delivery of the Yankee Notice or the Yankee Determination, as applicable, will be owned by the Company shall be considered a "Transferred Asset" and any Yankee Dryer Spare that that upon delivery of the Yankee Notice or the Yankee Determination, as applicable, will be owned by the Seller shall be considered an "Excluded Asset".

Section 5.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal of Excluded Assets</u>. At or prior to the Closing, or, to the extent not reasonably practicable, as soon as reasonably practicable following the Closing, the Seller shall remove, at the Seller's sole cost and expense, all Excluded Assets located on any Real Property. The Buyer and the Company Group will have no Liability to the Seller in connection with the storage at, or removal from, such Real Property of such Excluded Assets.

Section 5.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Geographic Regions Business</u>. From and after the date hereof, unless otherwise agreed between the Seller and the Buyer, the Seller shall not, and shall cause its Affiliates not to, contribute, assign, transfer, convey and deliver any portion of the assets, rights and properties (as determined by the Buyer in its sole discretion) of the Additional Geographic Regions Business to any Person other than the Company (or one or more designated Subsidiaries of the Company).

Section 5.26&nbsp;&nbsp;&nbsp;&nbsp;<u>Supply Chain Financing</u>. Prior to the Closing, the Seller shall, and shall cause its Representatives to, use commercially reasonable efforts to cooperate with and assist the Buyer's arrangement of supply chain financing with respect to the Business to be put in place at the Company Group as of the Closing Date to replace the supply chain financing utilized by the Seller and its Affiliates with respect to the Business as of the date hereof in connection with its suppliers' trade payables incurred in the Ordinary Course of Business.

Section 5.27&nbsp;&nbsp;&nbsp;&nbsp;<u>Privileged Matters</u>. Following the Closing, the Parties acknowledge and agree that the attorney-client privilege, attorney work product protection and expectation of client confidentiality involving general business matters of the Company Group, the Transferred Assets or the Assumed Liabilities and arising prior to the Closing for the benefit of both the Seller and the Business or any member of Company Group (collectively, "**Privileged Information**") shall be, to the maximum extent permitted under applicable Law, subject to a joint and common interest privilege and protection between the Seller, on the one hand, and the Company or such other member of Company Group, on the other hand, and the Seller and the Company or other member of Company Group shall have equal right to assert all such joint privilege and protection. Each Party acknowledges and agrees that (a) the Seller or its Affiliates, without the prior written consent of the Company, or (b) the Company or any other member of

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Company Group, without the prior written consent of the Seller, in each case, shall not disclose, waive, or otherwise seek to waive the privilege or similar protection of any Privileged Information. For the avoidance of doubt, any U.S. tax advice provided to the Seller or its Affiliates prior to the Closing shall not be subject to a joint and common interest privilege.

Section 5.28&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental Insurance</u>. Prior to the Closing, the Seller shall, and shall cause the Selling Affiliates to, provide the Buyer and its Representatives reasonable access to any of the Transferred Owned Real Property and Leased Real Property as part of the Buyer's attempts to obtain environmental insurance to conduct Phase I environmental site assessments that align in whole or in part with ASTM E1527-21 to the extent reasonably required in connection with the Buyer's attempt to obtain environmental insurance coverage for the Business (each, a "**Phase I Environmental Assessment**"). The Seller shall, and shall cause the Selling Affiliates to (a) reasonably cooperate with the Buyer in connection with its efforts to obtain such environmental insurance and (b) make reasonably available for interviews with the Buyer (and its Representatives) those Representatives of the Seller and the Selling Affiliates, who have knowledge of health, safety and environmental matters related to the Business to the extent such interviews are customary or necessary to complete the Phase I Environmental Assessment or to obtain environmental insurance. In no event shall the Buyer or its Representatives be entitled to conduct a Phase II environmental assessment or undertake any other testing or sampling (including of any environmental media) of the Transferred Assets, prior to the Closing. Any Phase I Environmental Assessment pursuant to this <u>Section 5.28</u> shall be conducted (i) upon reasonable advance written notice, which at a minimum shall consist of five (5) Business Days prior written notice, (ii) at the Buyer's sole expense, (iii) during normal business hours, (iv) under the supervision of the Seller's personnel and (v) in such a manner as to not unreasonably interfere with the use of the Transferred Assets or the operations of the Seller or the Business. Notwithstanding anything to the contrary in this Agreement, the Seller shall not be required to provide access to any information to the Buyer or its Representatives if the Seller determines, in its sole discretion, that (A) such access would jeopardize any attorney-client or other legal privilege, (B) such access would contravene any applicable Law, injunction, decree or order of any Governmental Authority, fiduciary duty or binding agreement entered into prior to the Closing Date, (C) the information to be accessed is pertinent to any litigation in which the Seller or any of its Subsidiaries or Affiliates, on the one hand, and the Buyer or any of its Affiliates, on the other hand, are adverse parties, (D) the information to be accessed would result in the disclosure of any trade secrets or similar confidential information, (E) the information to be accessed relates to the Seller's or any of its Subsidiaries' entry into or conducting of a sale process with respect to the Business prior to the execution of this Agreement, including any information related to proposals from other Persons relating to any other potential transaction with the Seller or any of its Subsidiaries relating to the Business or (F) the information to be accessed relates to any consolidated, combined or unitary Return filed by the Seller, any of its Affiliates or any of their respective predecessor entities; provided that the Seller shall, and shall cause its Affiliates to, reasonably inform the Buyer of the general nature of any information withheld pursuant to the foregoing clauses and use commercially reasonable efforts to provide to the Buyer such access to such information in another manner that does not violate the foregoing (including through the use of "clean teams" or providing information on an "outside counsel only" basis); <u>provided</u>, <u>further</u>, that the Seller shall not be required to create new documents or summaries in response to the Buyer's requests. The cost of any environmental insurance coverage for the Business obtained by the Buyer as contemplated by this <u>Section 5.28</u> shall be the sole cost and expense of the Buyer. It is agreed and understood that this <u>Section 5.28</u> shall in no way obligate the Buyer to conduct any Phase I Environmental Assessment or to otherwise obtain any environmental insurance policy for the Business.

Section 5.29&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Cash Allocation</u>. Following the date hereof, each of the Buyer and the Seller shall, and shall cause its Representatives to, cooperate to allocate the Minimum Cash to the bank accounts of the members of the Company Group in the applicable operational regions and jurisdictions, taking into consideration any restrictions or limitations on transfer and any payment obligations of each member of the Company Group following the Closing Date. At the Closing, the Seller shall cause the applicable members of the Company Group to have the Minimum Cash available to it in the bank accounts as agreed between the Buyer and the Seller pursuant to this <u>Section 5.29</u>. For

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purposes of clarification, any cash held by a member of the Company Group for the purpose of satisfying a Tax liability for which Seller is responsible pursuant to <u>Section 6.1(b)</u> or <u>Section 6.3(b) shall not be treated as Minimum Cash.</u>

Section 5.30&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Assurances</u>. From time to time after the Closing, and for no further consideration, each of the Parties shall, and the Seller shall cause the Selling Affiliates to, execute, acknowledge and deliver such assignments, transfers, consents, assumptions, conveyances, notices and other documents and instruments and take such other actions as may be necessary or appropriate to consummate and make effective the transactions contemplated by this Agreement, the Company Transfer Agreements and the Ancillary Agreements.

Section 5.31&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Following the date of this Agreement, each of the Buyer and the Seller shall consult with one another, and discuss in the Reorganization Committee meetings, the type of debt financing for the purpose of funding the Company at and after the Closing (such debt financing, the "**Debt Financing**"), pursuant to a debt facility with the terms set forth in on <u>Schedule 5.31</u> of the Disclosure Schedules (the "**Debt Facility**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall, and shall cause the Company to, provide, and shall use commercially reasonable efforts to cause its and their respective Representatives to provide, such cooperation as is determined in the Reorganization Committee meetings to be reasonably necessary to obtain the Debt Financing and entering into the Debt Facility, including, (i) upon reasonable notice, making management of the Business available to participate in a reasonable number of meetings, presentations, due diligence sessions, drafting sessions and sessions with rating agencies in connection with such financing, (ii) assisting with the preparation of material for rating agency presentations and bank information memoranda and similar documents customarily prepared in connection with such financing, (iii) facilitating accountant's comfort letters and legal opinions, (iv) facilitating the pledging of the Transferred Assets (or a portion thereof) as collateral, and (v) promptly furnishing all documentation and other information about the Company Group and the Business required by Governmental Authorities with respect to such financing under applicable "know your customer" and Anti-Corruption Laws and reasonably requested by prospective Debt Financing sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary contained in this <u>Section 5.31</u>, nothing in this <u>Section 5.31</u> shall require the Buyer, the Seller or any of their respective Affiliates or Representatives to (i) incur any liability or obligation (including any indemnification obligation) in connection with any Debt Financing or pay any commitment or other fee in connection with any Debt Financing that would not be reimbursed by the Company at or prior to the Closing, (ii) provide any financial or other information that is not reasonably available to the Seller, the Company or the Buyer, as applicable, (iii) take any action that such Person reasonably determines would conflict with or violate such Person's organizational documents, as applicable, or any applicable Law or result in a material violation or material breach of, or material default under, any Contract with a non-Affiliate to which such Person, as applicable, is a party (not created in contemplation hereof), (iv) take any action that would subject any director, manager, officer or employee of the Seller, the Company or the Buyer to any actual or reasonable potential personal liability, (v) take any action that would unreasonably interfere in any material respect with the ongoing commercial operations of the Seller, the Company, the Buyer or the Business or (vi) take any action that would cause (or would be reasonably likely to cause) any representation or warranty in this Agreement to be breached, or cause any condition to the Closing to fail to be satisfied or otherwise cause any breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall promptly upon request by the Seller or the Buyer, as applicable, reimburse, or cause its Affiliates (including, after the Closing, the Company Group) to reimburse, the Seller and its Affiliates, or the Buyer and its Affiliates, as applicable, for all reasonable and documented out-of-pocket costs and expenses (including reasonable and documented out-of-pocket

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attorneys' fees) incurred by such Persons in connection with any cooperation contemplated by this <u>Section 5.31</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;For the avoidance of doubt, the Parties acknowledge and agree that the obtaining of the Debt Financing is not a condition to the Closing and the Parties shall remain obligated, subject only to the satisfaction or waiver of the conditions set forth in <u>Article VII</u> of this Agreement, to consummate the transactions contemplated by this Agreement in accordance with the terms hereof.

**ARTICLE VI <br>TAX MATTERS**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Returns; Refunds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement (including, for the avoidance of doubt, <u>Section 6.1(b)</u> and <u>Section 6.6</u>), (i) the Seller shall have sole responsibility for the preparation and filing of Returns for any affiliated, consolidated, combined, joint, unitary or similar Tax group that includes the Seller or any of its Affiliates (other than any member of the Company Group), on the one hand, and any member of the Company Group, on the other hand (any such Return, a "**Seller Consolidated Return**", and any such group, a "**Seller Consolidated Group**"), and (ii) the Seller shall control any Tax audit, claim, demand or administrative or judicial proceeding pertaining to any Seller Consolidated Return, and neither the Company nor the Buyer shall have the right to participate in any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall prepare (or cause to be prepared) all Returns required by applicable Law to be filed with respect to the Company Group, the Business or the Transferred Assets for any Pre- Closing Tax Period or Straddle Period that are required to be filed (taking into account extensions) following the Closing Date. The Seller shall use commercially reasonable efforts to deliver such Returns to the Company in the form proposed for filing at least ten (10) Business Days (or, in the case of an Income Tax Return that is due less than twenty (20) Business Days after the end of the relevant taxable period or a non-Income Tax Return, as soon as reasonably practicable) prior to the filing deadline (taking into account extensions) and shall consider in good faith any reasonable comments provided by the Company with respect thereto. Any Returns described in this <u>Section 6.1(b)</u> shall be prepared in a manner consistent with the past practices of the Seller or its Affiliates (including the members of the Company Group) except as otherwise required by applicable Law or this Agreement and shall be timely filed by the Party required to file such Return under applicable Law. At least two (2) Business Days before the filing deadline (taking into account extensions) of any Return described in this <u>Section 6.1(b)</u>, the Seller shall pay (or cause to be paid) to the Company or the applicable member of the Company Group the amount of Taxes shown as due thereon for the Pre-Closing Tax Period (determined in accordance with <u>Section 6.1(c</u>) in the case of any Straddle Period), which payment shall be increased if and only to the extent as necessary so that the applicable member of the Company Group receives sufficient proceeds on an after-Tax basis to pay the Taxes reflected on such Return for which the Seller is responsible; <u>provided</u> that the Seller shall be deemed to have satisfied its obligation to make such payment in respect of a particular Tax liability of the applicable member of the Company Group if and to the extent such member holds sufficient cash at the Calculation Time to pay such Tax liability; <u>provided</u> further that any cash held by a member of the Company Group for the purposes of paying a Tax liability for which the Seller would otherwise be required to make a payment pursuant to this <u>Section 6.1(b)</u> shall not be treated as Minimum Cash. The Parties agree to use their respective commercially reasonable efforts to structure payments described in the immediately preceding sentence so as to minimize the amount of Taxes (if any) imposed thereon. Notwithstanding anything to the contrary in this <u>Section 6.1(b)</u>, the Seller shall indemnify the Company Group for any penalties and interest that arise as a direct result of a member of the Company Group not having received (directly or indirectly) sufficient cash from the Seller that is available to timely pay the portion of such member's Tax liability for which the Seller is responsible; <u>provided</u> that, without limiting the Seller's indemnification obligations pursuant to <u>Section 8.2</u>, each member of the Company Group shall use commercially reasonable efforts to utilize any available cash for

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the payment of such Taxes in order to mitigate any penalties or interest and shall not unreasonably delay or withhold payment to any Taxing Authority of Taxes due and payable. Promptly after filing any Return described in this <u>Section 6.1(b)</u>, the Company shall furnish the Buyer and the Seller with a copy of such Return (as filed) together with proof of payment of the Tax liability reflected on such Return. Notwithstanding anything to the contrary in this Agreement, the Seller (i) shall be permitted to make, or cause to be made, an election to close the taxable year of any Transferred Subsidiary that is a corporation for U.S. federal Income Tax purposes pursuant to Treasury Regulations Section 1.245A-5(e)(3)(i) as of the end of the day on the Closing Date and (ii) in each case with the written consent of the Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), the Seller shall be permitted to take, and, upon the request of the Seller, the Parties shall cause the applicable members of the Company Group to take, at the Seller's sole cost, any reasonable actions to mitigate or minimize any Excluded Taxes, including by making any claim or election to reallocate profits or gains to, or to accept the surrender of losses from, the Seller or any of its Affiliates; <u>provided</u>, <u>however</u>, that the Seller shall not be permitted, and the members of the Company Group shall not be required, to take any action to mitigate or minimize any Excluded Taxes to the extent that such action would subject the members of the Company Group or the Buyer to additional Taxes, result in the loss or unavailability for any member of the Company Group or the Buyer of any Tax relief, or otherwise put the Company Group or the Buyer in a worse Tax position than it would have been in but for such action to mitigate or minimize any Excluded Taxes. If it is possible as a matter of applicable Law, protectively or otherwise, to elect for any Excluded Taxes (or any income, profit or gain giving rise to any Excluded Taxes) that in each case fall under limb (f) of the definition of Excluded Taxes to be treated as arising to the Seller or any Affiliate of the Seller (in each case other than the Company Group), including pursuant to section 792 Corporation Tax Act 2009 and section 171A Taxation of Chargeable Gains Act 1992, and if requested by the Seller or the Buyer, the Parties shall, or shall procure that the relevant entity or entities shall, enter into any such election and, if required, file such election with the relevant Taxing Authority in each case within the applicable time limit. The filing party shall provide evidence to the other of such filing as soon as reasonably practicable thereafter and shall not amend or revoke such election without the Buyer's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Where it is necessary for purposes of this Agreement to apportion Taxes for a Straddle Period, (i) Taxes based on or measured by income, receipts, payroll or sales (including Income Taxes) shall be apportioned between the portion of the Straddle Period ending on the Closing Date and the portion of the Straddle Period beginning on the day after the Closing Date on the basis of an interim closing of the books as of the end of the day on the Closing Date and (ii) all other Taxes shall be allocated ratably across the entire Straddle Period on a per diem basis. Notwithstanding anything to the contrary in this <u>Section 6.1(c)</u>, any exemptions, allowances or deductions that are calculated on an annual basis (such as depreciation and amortization) shall be allocated ratably, in the manner described in <u>clause (ii)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall be entitled to (i) any Tax refunds that are received by the Buyer or any member of the Company Group and (ii) any amounts credited against Tax (to the extent such credit gives rise to a cash tax saving) to which any member of the Company Group becomes entitled in a Tax period ending after the Closing Date (including any amounts received in respect of Recoverable VAT, save to the extent such amounts are required to be applied to repay a Recoverable VAT Loan as contemplated by <u>Section 6.3(b)</u>), which refunds or credits relate to (x) Excluded Taxes paid prior to the Closing Date or borne by Seller pursuant to this Agreement (including <u>Section 6.1(b)</u> and <u>Section 8.2</u>), or (y) Seller Transaction Taxes. The Company shall, or shall procure the applicable member of the Company Group shall, pay over to the Seller any such refund or the amount of any such cash tax saving (less any out-of-pocket expenses (including Taxes) incurred by a member of the Company Group in connection with the obtaining or receipt of such refund or cash tax saving) within five (5) days after receipt of such refund or within five (5) days of realizing such cash tax saving. Except as otherwise required by applicable Law, the applicable member of the Company Group shall request a refund (rather than a credit against future Taxes) with respect to all Pre-Closing Tax Periods and Straddle Periods to the extent any member of the Company Group would be obligated to make a payment to the Seller pursuant to this <u>Section 6.1(d)</u> with

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respect to such refund. For the avoidance of doubt, payments made pursuant to this <u>Section 6.1(d)</u> shall not be increased to compensate the Seller or any Affiliate of the Seller in respect of any Tax that may be withheld or incurred on such payments.

Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Cooperation on Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Following the Closing, the Company, the Buyer and the Seller agree to furnish, or cause to be furnished to the other upon request, as promptly as practicable, such information (including access to books and records) and assistance relating to the Company Group, the Transferred Assets and the Business as is reasonably necessary for the filing of any Return, the preparation for any Tax audit or the prosecution or defense of any Tax claim or proceeding, or for the efficient management of the Tax affairs of the requesting Party, in each case, at the expense of the requesting Party; <u>provided</u>, <u>however</u>, that the Seller shall not be obligated to furnish, or cause to be furnished, to the Company, the Buyer or any of their respective Affiliates, any Income Tax Returns of Seller or any of its Affiliates (other than any member of the Company Group) or any Seller Consolidated Returns. The Company, the Buyer and the Seller shall keep all such information and documents received by them confidential unless otherwise required by Law. The Company, the Buyer and the Seller shall cooperate with each other as reasonably necessary to effect the foregoing. The Company, the Buyer and the Seller agree, upon request, to use their commercially reasonable efforts to obtain any certificate or other document from any Governmental Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the transactions contemplated under this Agreement. Nothing in this <u>Section 6.2(a)</u> shall require the disclosure of any information not related specifically to the Transferred Assets, the Business or the members of the Company Group to the extent the Seller reasonably deems such information to be confidential and such information is not required by applicable Law to be provided to any Taxing Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Parties agree to retain, or cause to be retained, all books and records pertinent to the Transferred Assets, the Business and the members of the Company Group until the applicable period for assessment of Taxes under applicable Law (giving effect to any and all extensions or waivers) has expired and such additional period as necessary for any administrative or judicial proceedings relating to any proposed assessment, and to abide by all record retention agreements entered into with any Taxing Authority.

Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer Taxes and VAT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement or the Ancillary Agreements to the contrary: (i) the Buyer shall be responsible for and bear all Transfer Taxes and VAT (including interest and penalties with respect thereto) attributable to the Company Transferred Interests Purchase (including, for the avoidance of doubt, any Transfer Taxes and VAT incurred by the Company or any member of the Company Group solely as a result of the Company Transferred Interests Purchase) and any out of pocket costs and expenses in connection with the preparation of Returns with respect to such Transfer Taxes and VAT; and (ii) the Seller shall be responsible for and bear all Transfer Taxes and VAT (including interest and penalties with respect thereto) attributable to the Reorganization (including the Company Transfer) and any out of pocket costs and expenses in connection with the preparation of Returns with respect to such Transfer Taxes and VAT (such amounts described in this clause (ii), "**Seller Transaction Taxes**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Parties agree that the Seller or its Affiliates (other than any member of the Company Group) shall put the relevant member(s) of the Company Group in funds (at least two Business Days before the payment deadline) to pay all Seller Transaction Taxes to the extent that such member of the Company Group is liable to pay such Seller Transaction Taxes (including any UK stamp duty, where it shall be assumed for these purposes that it is the purchaser of the relevant assets which has the liability to pay), which payments shall be increased if and only to the extent as necessary so that the applicable member of the Company Group receives sufficient proceeds on an after-Tax basis to pay the relevant Seller Transaction Taxes. The Seller shall be deemed to have satisfied its obligation under this <u>Section</u> 

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<u>6.3(b)</u> in respect of a particular Tax liability of the applicable member of the Company Group which has a payment deadline on or after the Calculation Time if and to the extent such member holds sufficient cash at the Calculation Time to pay such Tax liability (and such cash is not held by the applicable member of the Company Group for the purposes of paying a Tax liability to which <u>Section 6.1(b)</u> applies (as determined by the Seller in its sole discretion)); <u>provided</u> that any cash held by a member of the Company Group for the purposes of paying a Tax liability for which the Seller would otherwise be required to make a payment pursuant to this <u>Section 6.3(b)</u> shall not be treated as Minimum Cash. Without prejudice to the Seller's obligation to bear all Seller Transaction Taxes, the Parties agree that Seller and its Affiliates shall be permitted to structure any payments pursuant to this <u>Section 6.3(b)</u> so as to minimize the amount of Taxes (if any) imposed thereon (or imposed upon the remittance of any refund in respect of Recoverable VAT pursuant to <u>Section 6.1(d)</u>), <u>provided</u> that, subject to the immediately following sentence of this <u>Section 6.1(b)</u>, the Seller and its Affiliates shall not advance such funds to the Company Group by way of a loan. If and to the extent Seller Transaction Taxes are comprised of Recoverable VAT, the Seller and its Affiliates shall be permitted to put the relevant member(s) of the Company Group in funds to pay such Recoverable VAT by making an interest free loan on customary terms to the applicable member of the Company Group (a "**Recoverable VAT Loan**"), <u>provided</u> that the aggregate amount of any Recoverable VAT Loans made by the Seller and its Affiliates to the Company Group (irrespective of whether or not such Recoverable VAT Loans are subsequently repaid) shall in no circumstances exceed $20,000,000. Any Recoverable VAT Loan shall be repayable on recovery of a cash tax refund from the relevant Taxing Authority or the realization of a cash tax saving by the relevant member of the Company Group (or by a group, consolidation or fiscal unity comprised solely of members of the Company Group with respect to which such member of the Company Group is a member for VAT purposes) in respect of the Recoverable VAT in respect of which the Recoverable VAT Loan is made. To the extent the Seller determines (acting reasonably and in good faith) that any Recoverable VAT in respect of which a Recoverable VAT Loan is made is not in fact recoverable by way of a cash tax refund from the relevant Taxing Authority or the realization of a cash tax saving, the Seller shall reasonably promptly waive or eliminate (as determined by the Seller) such relevant portion of the Recoverable VAT Loan and indemnify the Company Group on an after-Tax basis for any Taxes that arise as a result of such waiver or elimination. Any amounts advanced under any Recoverable VAT Loan which have not been repaid in accordance with the foregoing provisions of this <u>Section 6.3(b)</u> shall be waived or eliminated (as determined by the Seller) on or prior to two years after the Closing Date and the Seller shall indemnify the Company Group on an after-Tax basis for any Taxes that arise as a result of such waiver or elimination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Parties shall, and shall cause their respective Affiliates to, (i) cooperate in good faith to file, or cause to be filed, any applicable Returns related to Transfer Taxes or VAT required by applicable Law to be filed by the Seller, the Buyer or any member of the Company Group (or any of their respective Affiliates) and (ii) use commercially reasonable efforts to obtain any available reduced rate of, exemption from or refund of Transfer Taxes or VAT pursuant to applicable Laws. Without prejudice to the Seller's obligation to bear all Seller Transaction Taxes, the Company shall pay, or cause the applicable member of the Company Group to pay, all Transfer Taxes and VAT attributable to the Reorganization, in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Parties agree that the consideration (including the Purchase Price for the Company Transferred Interests Purchase) payable for the Company Transfer and the Company Transferred Interests Purchase shall be considered as exclusive of any applicable VAT. If any VAT is chargeable on such consideration, the relevant Parties shall cooperate, and shall cause their relevant Affiliates to cooperate, in good faith, and each relevant Party shall, and shall cause its relevant Affiliates to, use commercially reasonable efforts to obtain any available reduced rate of, exemption from or refund of VAT pursuant to applicable Laws. Without prejudice to <u>Section 6.3(a)</u> or <u>Section 6.3(b)</u>, the Parties further agree that, if no VAT exemption or refund is available, or if it is not commercially viable to pursue an exemption or refund, any VAT that is chargeable on the consideration of a relevant transaction shall be added to the relevant consideration and be payable by the transferee of the relevant transaction upon receipt of an invoice issued by the transferor of the relevant transaction in accordance with applicable VAT Laws.

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Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Intended Tax Treatment; Purchase Price Allocation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Parties agree that, for U.S. federal (and applicable state and local) Income Tax purposes, in accordance with Revenue Ruling 99-5, Situation 1, the Company Transferred Interests Purchase is intended to be treated as a deemed purchase of a 51% fractional interest in each of the Company's assets (including any assets held by any member of the Company Group that is disregarded as separate from JV Holdco) by the Buyer or its designee from JV Holdco, immediately followed by a deemed contribution by JV Holdco and the Buyer or its designee of their respective fractional interests in such assets to a newly formed partnership pursuant to Section 721 of the Code (which deemed contribution is not intended to be subject to Section 707(a)(2)(B) of the Code) (the "**Intended Tax Treatment**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Within one hundred and twenty (120) days after the date of this Agreement, the Seller shall prepare and provide to the Buyer a schedule setting forth a valuation of each applicable jurisdiction, the Intellectual Property that is assigned pursuant to this Agreement (including the Japan Trademarks) and the Intellectual Property that is licensed pursuant to the Know-How and Patent License Agreement and the Trademark License Agreement, in each case, including any additional Intellectual Property agreed by the Parties as required to be assigned or licensed pursuant to any such agreement after the date of this Agreement (the "**Closing Date Allocation Schedule**"). Unless the Buyer objects to the Closing Date Allocation Schedule in writing within thirty (30) days after receipt thereof, such schedule shall become final. If the Buyer objects to the Closing Date Allocation Schedule in writing within thirty (30) days after receipt thereof, then the Parties shall negotiate in good faith to resolve their disputes. If the Buyer and the Seller cannot resolve all disputes within thirty (30) days after the Buyer objects to the Closing Date Allocation Schedule (or within such longer period as the Parties may mutually agree in writing), they shall submit any remaining disputes to the Independent Accounting Firm and shall instruct the Independent Accounting Firm to, within fifteen (15) days of the submission thereto, determine the final Closing Date Allocation Schedule. The fees, costs and expenses of the Independent Accounting Firm incurred in resolving such dispute shall be paid 50% by the Seller and 50% by the Buyer. The Buyer and the Seller shall reasonably cooperate in accordance with this <u>Section 6.4(b)</u> to update the Closing Date Allocation Schedule for the passage of time as necessary after the date the Closing Date Allocation Schedule becomes final hereunder but prior to the Closing. The valuation of the Intellectual Property that is assigned pursuant to this Agreement (including the Japan Trademarks) and the Intellectual Property that is licensed pursuant to the Know-How and Patent License Agreement and the Trademark License Agreement (in each case, as set forth on the Closing Date Allocation Schedule that is finalized pursuant to this <u>Section 6.4(b)</u>) shall be set forth on <u>Schedule 6.4(b)</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To the extent required under applicable Law (including for purposes of calculating Transfer Taxes or VAT, filing any Return or executing any local transfer agreement), the Seller shall prepare one or more schedules setting forth a valuation of those assets of the Company Group for which a valuation is required under applicable Law (any such schedule, an "**Asset Allocation Schedule**"), which shall be prepared in a manner consistent with the Closing Date Allocation Schedule. The Seller shall deliver a draft of any Asset Allocation Schedule to the Buyer at least sixty (60) days prior to such date that the applicable asset is transferred to the Company Group. Unless the Buyer objects to an applicable Asset Allocation Schedule in writing within thirty (30) days after receipt thereof, such schedule shall become final. If the Buyer objects to an Asset Allocation Schedule, then any disputes shall be resolved in accordance with the procedures set forth in the preceding <u>Section 6.4(b)</u>, applied *mutatis mutandis*; <u>provided</u>, <u>however</u>, that any disputes shall be resolved in a manner consistent with the Closing Date Allocation Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company, the Buyer and the Seller (and their respective Affiliates) shall file all applicable Returns in a manner consistent with (i) the Intended Tax Treatment and (ii) the Closing Date Allocation Schedule and any Asset Allocation Schedules, as ultimately agreed to or as determined by the Independent Accounting Firm, and neither the Company, the Buyer nor the Seller (nor any of their respective Affiliates) shall take any position (whether in Tax proceedings, on Returns, or otherwise)

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inconsistent therewith except as may be required as the result of an audit by a Taxing Authority or by court decision. To the extent there are any adjustments to the Purchase Price as a result of any indemnification payment pursuant to <u>Article VIII</u> or otherwise, the Company, the Buyer and the Seller shall cooperate in good faith to make any necessary adjustments to the Post-Closing Allocation Schedule and any Asset Allocation Schedule.

Section 6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Restrictions</u>. Following the Closing, except as required by applicable Law, the Company and the Buyer shall not (and shall cause their respective Affiliates and the Transferred Subsidiaries not to) take any of the following actions without the written consent of the Seller (which consent shall not be unreasonably withheld, conditioned or delayed): (a) file any amended Return with respect to any member of the Company Group for any Pre-Closing Tax Period or Straddle Period; (b) make or modify any Tax election or modify any method of accounting with respect to any member of the Company Group for any Pre-Closing Tax Period or Straddle Period; (c) voluntarily approach any Governmental Authority regarding Tax matters pertaining to any member of the Company Group for any Pre-Closing Tax Period or Straddle Period; (d) extend or waive, or cause to be extended or waived, any statute of limitations or other period for the assessment of any Tax or deficiency with respect to any member of the Company Group for any Pre-Closing Tax Period or Straddle Period; (e) take any action outside the Ordinary Course of Business on the Closing Date after the Closing (other than pursuant to the transactions expressly contemplated by this Agreement, which shall include, for the avoidance of doubt, any transactions forming part of or contemplated by the Reorganization); or (f) make any election under Section 338 or Section 336 of the Code with respect to any Transferred Subsidiary, in the case of <u>clauses (a)</u> through <u>(f)</u>, to the extent such action could reasonably be expected to give rise to any Seller payment obligation under this Agreement or otherwise increase the Tax obligations of the Seller or any of its Affiliates.

Section 6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Proceedings</u>. Each Party shall promptly notify the other Party, and the Company shall promptly notify both Parties, in writing upon receipt by either Party or any member of the Company Group or any of their respective Affiliates of notice of any pending or threatened Tax audit, claim, demand or administrative or judicial proceeding with respect to the Transferred Assets, the Business or any member of the Company Group (each such action, a "**Tax Claim**") in respect of (a) any Pre-Closing Tax Period or Straddle Period or (b) the Company Transferred Interests Purchase. Such notice shall include a copy of the relevant portion of any correspondence received from the applicable Taxing Authority and shall describe in reasonable detail the nature of the Tax Claim to the extent known by the applicable Party or the Company. The Seller shall have the exclusive right to control, at its own cost and expense, any Tax Claim to the extent that such Tax Claim relates in greater part (as determined mutually by the Buyer and the Seller) to Taxes for which the Seller is responsible (including pursuant to <u>Section 8.2</u>), and the Company shall have the exclusive right to control any other Tax Claim; <u>provided</u> that the controlling party (i) shall keep the non-controlling party reasonably informed as to the progress of any such Tax Claim, (ii) shall permit the non-controlling party to participate, at the non-controlling party's sole cost and expense, in such Tax Claim and (iii) shall not settle such Tax Claim without the non-controlling party's consent (which consent shall not be unreasonably withheld, conditioned or delayed). Upon the Seller's request, the Company or the Buyer, as applicable, shall execute, and shall cause its Affiliates to execute, any powers of attorney or similar documents that may be required to effectuate the intent of this <u>Section 6.6</u>.

Section 6.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Status</u>. The Parties acknowledge and agree that the Non-U.S. IP shall be held solely for "foreign use" as defined in Section 250(b)(5)(A) of the Code and Treasury Regulations Section 1.250(b)-4(d). Any Person receiving, purchasing or otherwise acquiring any Non-U.S. IP shall not be either (a) a "United States person" (within the meaning of Section 7701(a)(30) of the Code) or (b) a disregarded entity whose regarded owner is a "United States person" (within the meaning of Section 7701(a)(30) of the Code). If necessary at any time to effect the requirements of this <u>Section 6.7</u>, the Parties shall cooperate to cause any Non-U.S. IP to be assigned to another member of the Company Group.

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Section 6.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Treatment of Certain Payments</u>. Following the Closing, any payment made between the Buyer and its Affiliates, the Seller and its Affiliates and the members of the Company Group pursuant to <u>Section 2.10(g)</u>, <u>Section 6.1(b),</u> <u>Section 6.1(d)</u>, <u>Section 6.3(b)</u> or <u>Article VIII</u> shall be treated by the Parties, to the extent permitted by Law, for U.S. federal Income Tax and other applicable Tax purposes, as an adjustment to the cash proceeds received by the Seller in the transactions contemplated by this Agreement; <u>provided</u> that, to the extent any indemnification payment under <u>Article VIII</u> is not so treated, (a) such indemnification payment shall be increased if and only to the extent as necessary so that the Indemnified Party receives an amount, net of any amount of Tax imposed on the Indemnified Party with respect to such indemnification payment or other payment, equal to the amount that such party would have received if no Tax had been imposed with respect to such indemnification payment and (b) such indemnification payment shall be reduced by any Tax benefit attributable to the indemnified Loss actually realized by the Indemnified Party as a cash Tax saving in the taxable year in which the indemnified Loss is incurred or the succeeding three (3) taxable years (an "**Indemnification Tax Benefit**"). The Parties agree to use their respective commercially reasonable efforts to structure any indemnification payments under <u>Article VIII</u> so as to minimize the amount of Taxes imposed thereon.

Section 6.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Group Arrangements</u>. The Seller shall procure that if a member of the Company Group is a member of a tax consolidation, fiscal unity or other group arrangement for Tax purposes with the Seller or any Affiliate of the Seller (a "Group Tax Arrangement") it shall cease to be a member of such Group Tax Arrangement with effect, so far as practicable, from a time on or prior to the Closing. The Seller shall provide the Buyer with such evidence as the Buyer shall reasonably request to confirm compliance with the foregoing.

**ARTICLE VII <br>CONDITIONS TO CLOSING**

Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General Conditions</u>. The respective obligations of the Buyer and the Seller to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction, at or prior to the Closing, of each of the following conditions, any of which may, to the extent permitted by applicable Law, be waived in writing by either the Seller (on behalf of itself and the Company) or the Buyer, each in its sole discretion (<u>provided</u> that such waiver shall only be effective as to the conditions of such waiving Party):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Governmental Authority shall have enacted, issued, promulgated, instigated, enforced or entered any Law or pending litigation (whether temporary, preliminary or permanent) that is then in effect and that enjoins, restrains, makes illegal or otherwise prohibits the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Any applicable waiting period (and any extension thereof), notice or review periods under the Foreign Antitrust Laws and the Foreign Investment Laws listed in <u>Schedule 7.1(b)</u> of the Disclosure Schedules and the EU Foreign Subsidies Regulation shall have expired or shall have been terminated, and all required permits, approvals, clearances or approvals under the Foreign Antitrust Laws and the Foreign Investment Laws listed in <u>Schedule 7.1(b)</u> of the Disclosure Schedules and the EU Foreign Subsidies Regulation shall have been made and obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The UK Pension Release shall have been completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Key Reorganization Steps shall have been completed in accordance with the <u>Schedule 7.1(d)</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The put option or the call option under the Put and Call Option Agreement shall have been exercised.

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Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions to Obligations of the Seller</u>. The obligations of the Seller and the Company to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction, at or prior to the Closing, of each of the following conditions, any of which may be waived in writing by the Seller (on behalf of itself or the Company) in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) The Buyer Fundamental Representations shall be true and correct in all but *de minimis* respects as of the Closing Date as though then made as of and on the Closing Date (other than those Buyer Fundamental Representations that by their terms address matters only as of an earlier specified date, which shall be true and correct in all but *de minimis* respects only as of such specified date) and (ii) the representations and warranties of the Buyer contained in <u>Article IV</u>, other than the Buyer Fundamental Representations, shall be true and correct (disregarding any "materiality" or "Buyer Material Adverse Effect" qualifications set forth therein) as of the Closing Date as though then made as of and on the Closing Date (other than such representations and warranties that by their terms address matters only as of an earlier specified date, which shall be true and correct only as of such date), except where the failure of such representations and warranties to be so true and correct would not, individually or in the aggregate, reasonably be expected to have a Buyer Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Buyer shall have performed in all material respects all obligations and agreements and complied in all material respects with all covenants and conditions required by this Agreement to be performed or complied with by it prior to or at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall have received from the Buyer a certificate, dated as of the Closing Date and signed by a duly authorized officer of the Buyer, stating that the conditions specified in <u>Section 7.2(a)</u> and <u>Section 7.2(b)</u> have been satisfied.

Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions to Obligations of the Buyer</u>. The obligations of the Buyer to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction, at or prior to the Closing, of each of the following conditions, any of which may be waived in writing by the Buyer in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) The Seller Fundamental Representations shall be true and correct in all but *de minimis* respects as of the Closing Date as though then made as of and on the Closing Date (other than those Seller Fundamental Representations that by their terms address matters only as of an earlier specified date, which shall be true and correct in all but *de minimis* respects only as of such specified date), (ii) the representation and warranty in <u>Section 3.7(a)</u> shall be true and correct in all respects as of the Closing Date as though then made as of and on the Closing Date and (iii) the representations and warranties of the Seller contained in <u>Article III</u>, other than the Seller Fundamental Representations and the representation and warranty in <u>Section 3.7(a)</u>, shall be true and correct (disregarding any "materiality" or "Material Adverse Effect" qualifications set forth therein) as of the Closing Date as though then made as of and on the Closing Date (other than those representations and warranties that by their terms address matters only as of an earlier specified date, which shall be true and correct as of such specified date), except where the failure to be so true and correct would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each of the Seller and the Company shall have performed in all material respects all obligations and agreements and complied in all material respects with all covenants and conditions required by this Agreement to be performed or complied with by it prior to or at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Buyer shall have received from the Seller a certificate, dated as of the Closing Date and signed by a duly authorized officer of the Seller, stating that the conditions specified in <u>Section 7.3(a)</u> and <u>Section 7.3(b)</u> have been satisfied.

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Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Frustration of Closing Conditions</u>. No Party may rely on the failure of any condition set forth in this <u>Article VII</u> to be satisfied if such failure was caused by such Party's failure to use its efforts to cause the Closing to occur as required by <u>Section 5.5</u>.

**ARTICLE VIII <br>INDEMNIFICATION**

Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival of Representations, Warranties and Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of the Seller and the Buyer contained in <u>Article III</u> and <u>Article IV</u>, respectively, and any certificate delivered hereto or thereto shall terminate at, and not survive, the Closing. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The covenants and agreements of the Seller and the Buyer contained in this Agreement shall terminate at, and not survive, the Closing, except for those covenants and agreements that by their terms contemplate performance in whole or in part after the Closing, which shall survive until fully performed in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The survival periods set forth in <u>Section 8.1(a)</u> and <u>Section 8.1(b)</u> are in lieu of, and the Parties expressly waive, any otherwise applicable statute of limitations, whether arising at law or in equity. Any claim for breach of representation or warranty hereunder shall be deemed to have accrued as of the Closing. Other than in the case of Fraud, no claim for breach of any representation, warranty, covenant or agreement may be brought after expiration of the survival periods set forth in <u>Section 8.1(a)</u> and <u>Section 8.1(b)</u>; <u>provided</u> that, if a proper notice of a claim with respect to covenants and agreements as provided in <u>Section 8.1(b)</u>, is delivered by the Indemnified Party prior to the end of the applicable survival period set forth in <u>Section 8.1(b)</u>, then the claim(s) specified therein shall survive until final resolution thereof.

Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Seller</u>. From and after the Closing, the Seller shall indemnify and hold harmless the Buyer, its Affiliates (including members of the Company Group), and its and their respective officers, directors, employees and agents (collectively, the "**Buyer Indemnified Parties**") from and against any Losses suffered or incurred by the Buyer Indemnified Parties to the extent arising out of or resulting from (a) any breach of any covenant or agreement of the Seller or any of its Affiliates contained in this Agreement requiring performance by the Seller or any of its Affiliates after the Closing and (b) any Excluded Liability (including, for the avoidance of doubt, any Excluded Taxes). For the avoidance of doubt and notwithstanding anything in this Agreement to the contrary, in no event shall any Buyer Indemnified Party recover for the same Losses relating to both <u>clause (a)</u> and <u>clause (b)</u> of the foregoing sentence.

Section 8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Buyer</u>. From and after the Closing, the Buyer shall indemnify and hold harmless the Seller, its Affiliates, and its and their respective officers, directors, employees and agents (collectively, the "**Seller Indemnified Parties**") from and against any Losses suffered or incurred by the Seller Indemnified Parties to the extent arising out of or resulting from any breach of any covenant or agreement of the Buyer contained in this Agreement requiring performance by the Buyer after the Closing.

Section 8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Company</u>. From and after the Closing, the Company shall indemnify and hold harmless the Seller Indemnified Parties from and against the Buyer's Share of any Losses suffered or incurred by the Seller Indemnified Parties to the extent arising out of or resulting directly from (a) any breach of any covenant or agreement of the Company contained in this Agreement requiring performance by the Company after the Closing or (b) any Assumed Liability. For the avoidance of doubt and notwithstanding anything in this Agreement to the contrary, in no event shall any Seller Indemnified Party recover for the same Losses relating to both <u>clause (a)</u> and <u>clause (b)</u>. 

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Section 8.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;In order for a Buyer Indemnified Party or Seller Indemnified Party (the "**Indemnified Party**") to be entitled to any indemnification provided for under this Agreement as a result of a Loss or a claim or demand made by any Person against the Indemnified Party (a "**Third Party Claim**"), such Indemnified Party shall deliver written notice thereof to the Party against whom indemnity is sought (the "**Indemnifying Party**") promptly (and in any event within twenty (20) Business Days) after receipt by such Indemnified Party of written notice of the Third Party Claim, describing in reasonable detail (i) the facts giving rise to any claim for indemnification hereunder, (ii) the estimated amount or method of computation of the amount of such claim to the extent known or ascertainable and (iii) the basis with respect to which such Indemnified Party claims to be entitled to indemnification hereunder, including the nature of the breach of representation, warranty, covenant or agreement (a "**Claim Notice**" and all of the foregoing information, the "**Claim Information**"), and shall thereafter provide any other information with respect thereto as the Indemnifying Party may reasonably request. The failure to provide such notice on a timely basis, however, shall not release the Indemnifying Party from any of its obligations under this <u>Article VIII</u>, except to the extent that the Indemnifying Party is actually prejudiced by such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Indemnifying Party shall have the right, upon written notice to the Indemnified Party within thirty (30) days of receipt of a Claim Notice, to assume the defense thereof at the expense of the Indemnifying Party with counsel selected by the Indemnifying Party and reasonably satisfactory to the Indemnified Party. Notwithstanding the foregoing, the Indemnifying Party shall not be entitled to assume the defense of any Third Party Claim (i) for equitable or injunctive relief, (ii) if the Indemnifying Party does not so notify the Indemnified Party of such election within the time period specified above or (iii) any claim that would impose criminal liability or criminal fines on the Indemnified Party, or that involves a distributor, customer, supplier or material business relation of the Indemnified Party, and the Indemnified Party shall have the right to defend, at the expense of the Indemnifying Party with counsel selected by the Indemnified Party and reasonably satisfactory to the Indemnifying Party, any such Third Party Claim. If the Indemnifying Party assumes the defense of such Third Party Claim, the Indemnified Party shall have the right to employ separate counsel and to participate in the defense thereof in which case the Indemnifying Party shall not be required to pay for more than one outside counsel (plus local counsel, if required), but the fees and expenses of such counsel shall be at the expense of the Indemnified Party, unless the Indemnified Party has engaged such separate counsel due to a material and actual conflict of interest with the Indemnifying Party (including as a result of existing specific defenses available to the Indemnified Party that are different from to those available to the Indemnifying Party and that would be materially adverse to the Indemnifying Party), in which case the Indemnified Party shall be entitled to recover the reasonable and documented out of pocket fees and expenses of such separate counsel from the Indemnifying Party. If the Indemnifying Party assumes the defense of any Third Party Claim, the Indemnified Party shall reasonably cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party all witnesses, pertinent records, materials and information in the Indemnified Party's possession or under the Indemnified Party's control relating thereto as is reasonably required by the Indemnifying Party. If the Indemnifying Party assumes the defense of any Third Party Claim, the Indemnified Party shall not be required to agree to any settlement, compromise or discharge of such Third Party Claim that the Indemnifying Party may recommend unless: (A) such settlement, compromise or discharge by its terms obligates the Indemnifying Party to pay the full amount of the liability in connection with such Third Party Claim (and the Indemnified Party is fully indemnified for 100% of its Losses, and such Losses do not exceed any cap on the Indemnified Party's Losses hereunder); (B) such settlement, compromise or discharge includes a full and unconditional release of the Indemnified Party in connection with such Third Party Claim; (C) such settlement, compromise or discharge does not involve any finding or admission of any violation of Law or admission of any wrongdoing by the Indemnified Party; and (D) such settlement, compromise or discharge does not involve any restrictions on, or otherwise materially and adversely affect, the Indemnified Party or its Affiliates. Whether or not the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party shall not admit any Liability with respect to, or settle, compromise or

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discharge, or offer to settle, compromise or discharge, such Third Party Claim without the Indemnifying Party's prior written consent, such consent not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event any Indemnified Party should have a claim against any Indemnifying Party hereunder that does not involve a Third Party Claim (a "**Direct Claim**") being asserted against or sought to be collected from such Indemnified Party, the Indemnified Party shall promptly deliver notice of such Direct Claim containing the Claim Information promptly to the Indemnifying Party (and in any event within sixty (60) days after the Indemnified Party first learns of the facts on which such Direct Claim is based), and shall thereafter provide any other information with respect thereto as the Indemnifying Party may reasonably request. The failure to provide such notice on a timely basis, however, shall not release the Indemnifying Party from any of its obligations under this <u>Article VIII</u>, except to the extent that the Indemnifying Party is actually prejudiced by such failure. The Indemnified Party shall reasonably cooperate with the Indemnifying Party, and provide reasonable access to, and copies of, information, records and documents relating to such matters and shall make employees reasonably available to answer questions in connection with the investigation, defense and resolution of such Direct Claim. The Indemnified Party and Indemnifying Party shall attempt in good faith to resolve any Direct Claim for no less than forty-five (45) days after delivery of a written notice of Direct Claim, and, prior thereto, the Indemnified Party shall not be entitled to commence any Action against the Indemnifying Party for indemnification pursuant to this <u>Section 8.5(c)</u>.

Section 8.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Limits on Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary contained in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Seller shall not be obligated to indemnify any Buyer Indemnified Party with respect to any Loss to the extent that a specific reserve for the amount of such Loss was accurately reflected on the Financial Statements; <u>provided</u> that this clause <u>(i)</u> shall not apply to any Loss relating to Taxes that are Excluded Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the Seller shall not be obligated to indemnify any Buyer Indemnified Party with respect to any Loss to the extent that the amount of such Loss was included in the calculation of the Purchase Price or the adjustment of the Purchase Price, if any, as finally determined pursuant to <u>Section 2.10</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;in no event shall any Indemnified Party be entitled to seek or receive indemnification for the same Loss more than once under this <u>Article VIII</u> even if a claim for indemnification in respect of such Loss has been made as a result of a breach of more than one covenant or agreement contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The amount of any and all Losses under this <u>Article VIII</u> shall be determined net of (i) any insurance, indemnity or reimbursement proceeds that have actually been recovered by the Indemnified Party for the same Losses (less any costs and expenses incurred by the Indemnified Party in connection with recovery of such insurance proceeds and any related increases in insurance premiums) (each, an "**Alternative Recovery**") and (ii) any Indemnification Tax Benefits. Each of the Buyer, the Seller and the Company hereby waives, to the extent permitted under its applicable insurance policies, any subrogation rights that its insurer may have with respect to any indemnifiable Losses. In the event that the Indemnified Party receives payment of any amount pursuant to an Alternative Recovery for, or realizes any Indemnification Tax Benefit in respect of, Losses for which it has already been paid by the Indemnifying Party hereunder, the Indemnified Party will promptly refund an equal amount (less any costs and expenses incurred by the Indemnified Party in connection with recovery of such insurance proceeds and any related increases in insurance premiums) to the Indemnifying Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge and agree that certain Losses may arise out of or result from Liabilities, a portion of which are Assumed Liabilities and a portion of which are Excluded Liabilities,

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and certain Losses may arise out of or result from Excluded Liabilities that are, in the Buyer's reasonable discretion, recoverable under the R&W Insurance Policy (such Losses, "**Comingled Losses**"). To the extent a Comingled Loss would reasonably be expected to be recoverable under the R&W Insurance Policy, then the Buyer Indemnified Parties (as applicable) shall first seek to recover under the R&W Insurance Policy that portion of such Comingled Loss that would reasonably be expected to be recoverable under the R&W Insurance Policy. Notwithstanding the foregoing, the preceding sentence shall not limit the Seller's obligation to indemnify the Buyer Indemnified Parties for Losses arising out of or resulting from Excluded Liabilities, including that portion of any Comingled Loss arising out of or resulting from an Excluded Liability. Notwithstanding anything to the contrary in this Agreement, in respect of any claim relating to Excluded Taxes for which recovery is permitted under <u>Section 8.2</u>, the Buyer Indemnified Parties shall seek to recover Losses directly from an Indemnifying Party and shall have no obligation to notify the R&W Insurer or seek recovery under the R&W Insurance Policy with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, in no event shall any Party be liable for any amount in excess of the Purchase Price received by the Seller pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this <u>Article VIII</u>, any and all Losses of an Indemnified Party shall expressly include the amount required to gross up such Indemnified Party to take into account the portion of any related indemnification payment indirectly borne by the Buyer and the Seller (in accordance with the Buyer's and the Seller's relative ownership in the Company) as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Each Indemnified Party entitled to indemnification hereunder shall take commercially reasonable steps, to the extent required under the Laws of the State of Delaware, to mitigate Losses after becoming aware of any event which would reasonably be expected to give rise to any Losses that are indemnifiable hereunder.

Section 8.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Matters</u>. In the event of any inconsistency between this <u>Article VIII</u> and <u>Article VI</u>, <u>Article VI</u> shall govern. Without limiting the generality of the foregoing, <u>Section 8.5(a)</u> and <u>Section 8.5(b)</u> (with respect to Third Party Claims) shall not govern the procedures applicable to any Tax Claim.

Section 8.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusive Remedy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except for any matters relating to Fraud, after the Closing, <u>Section 2.10</u>, <u>Section 5.9</u>, <u>Section 5.13(d)</u>, <u>Section 6.1(b)</u>, <u>Section 6.3(b)</u>, this <u>Article VIII</u>, <u>Section 10.6(b)</u> and <u>Section 10.13</u> will provide the exclusive remedy against any Party hereto, such Party's Affiliates, and its and their respective officers, directors, employees and agents for any claim pursuant to this Agreement, including with respect to any matters arising under or relating to any Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement to the contrary, the Buyer (on behalf of itself and the Buyer Indemnified Parties) acknowledges and agrees that, except as otherwise provided in this <u>Article VIII</u>, following the Closing, in respect of any breaches of any representation or warranty set forth in this Agreement (or any certificate delivered hereunder), it is relying exclusively on, and its sole recourse for any actual or alleged breach of any representation or warranty set forth in this Agreement (or any certificate delivered hereunder) shall be, the R&W Insurance Policy (except in the case of Fraud), and the Buyer and its Affiliates shall have no, and shall not seek any, recourse against any of the Seller or any of its Affiliates for any such actual or alleged breaches of such representations and warranties (except in the case of Fraud).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Parties agree that the provisions in this Agreement relating to indemnification, and the limits imposed on the Buyer and the Buyer Indemnified Parties remedies with respect to this Agreement and the transactions contemplated hereby were specifically bargained for between sophisticated parties and were specifically taken into account in the determination of the amounts to be paid to the Seller hereunder.

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Section 8.9&nbsp;&nbsp;&nbsp;&nbsp;<u>No Right of Setoff</u>. Each Party, for itself and its Subsidiaries, Affiliates, successors and assigns, hereby unconditionally and irrevocably waives any rights of set-off, netting, offset, recoupment, or similar rights that any other Party or any of its Subsidiaries, Affiliates, successors and assigns has or may have with respect to the payments under the Company Transfer Agreements, the Ancillary Agreements or any other payments to be made pursuant to this Agreement or any other document or instrument delivered in connection herewith.

**ARTICLE IX <br>TERMINATION**

Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>. This Agreement may be terminated at any time prior to the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;by mutual written consent of the Buyer and the Seller (on behalf of itself and the Company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) by the Seller (on behalf of itself and the Company), if the Seller is not in material breach of its obligations under this Agreement and the Buyer breaches or fails to perform in any respect any of its representations and warranties in <u>Article IV</u> or covenants contained in this Agreement and such breach or failure to perform (A) would give rise to the failure of a condition set forth in <u>Section 7.2</u>, (B) cannot be cured prior to the Termination Date or, if capable of being cured, has not been cured by the earlier of two (2) Business Days prior to the Termination Date or the date that is thirty (30) calendar days following delivery of written notice of such breach or failure to perform and (C) has not been waived by the Seller in writing (on behalf of itself and the Company) (<u>provided</u> that the failure to deliver the full consideration payable pursuant to <u>Article II</u> at the Closing as required hereunder shall not be subject to cure hereunder unless otherwise agreed to in writing by the Seller (on behalf of itself and the Company)) or (ii) by the Buyer, if the Buyer is not in material breach of its obligations under this Agreement and the Seller breaches or fails to perform in any respect any of its representations and warranties in <u>Article III</u> or covenants contained in this Agreement and such breach or failure to perform (1) would give rise to the failure of a condition set forth in <u>Section 7.3</u>, (2) cannot be cured prior to the Termination Date or, if capable of being cured, has not been cured by the earlier of two (2) Business Days prior to the Termination Date or the date that is thirty (30) calendar days following delivery of written notice of such breach or failure to perform and (3) has not been waived by the Buyer in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;by either the Seller (on behalf of itself and the Company) or the Buyer if the Closing shall not have occurred on or prior to September 2, 2026 (the "**Initial Termination Date**", as it may be extended pursuant to this <u>Section 9.1(c)</u>, the "**Termination Date**"); <u>provided</u>, <u>however</u>, that if as of 11:59 p.m. Dallas, Texas time on the Initial Termination Date, any of the conditions set forth in <u>Section 7.1(a)</u> or <u>Section 7.1(b)</u> have not been satisfied (with respect to <u>Section 7.1(a)</u>, as a result of a Law or Action that relates to any Foreign Antitrust Law or Foreign Investment Law or the EU Foreign Subsidies Regulation), then either the Buyer or the Seller may, in its respective sole discretion, elect by delivery of written notice to the other Parties to extend the Initial Termination Date to 11:59 p.m. Dallas, Texas on December 2, 2026; <u>provided</u>, <u>further</u>, that the right to terminate this Agreement under this <u>Section 9.1(c)</u> shall not be available to any Party if such Party's breach of any provision of this Agreement is the primary cause of the failure of the Closing to occur on or prior to the Termination Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;by either the Seller (on behalf of itself and the Company) or the Buyer in the event that any Governmental Authority shall have issued any injunction, decree or order or taken any other action restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement and such injunction, decree or order or other action shall have become final and nonappealable; <u>provided</u>, that the right to terminate this Agreement under this <u>Section 9.1(d)</u> shall not be available to any Party if such Party's breach of any provision of this Agreement is the primary cause of such injunction, decree or order or other action being imposed.

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The Party seeking to terminate this Agreement pursuant to this <u>Section 9.1</u> (other than <u>Section 9.1(a)</u>) shall give prompt written notice of such termination to the other Party.

Section 9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Termination</u>. In the event of valid termination of this Agreement as provided in <u>Section 9.1</u>, this Agreement shall forthwith become void and there shall be no liability on the part of any Party except (a) for the provisions of <u>Section 5.4</u>, <u>Section</u> 5.6, this <u>Section 9.2</u>, <u>Section 9.3</u> and <u>Article X</u>, each of which shall survive such valid termination, and (b) except as provided in <u>Section 9.3</u>, nothing herein shall relieve any Party from any liabilities or damages arising out of Fraud or a Willful Breach occurring prior to a valid termination, in which case the non-breaching Party shall be entitled to seek all rights and remedies available in equity or at law (including specific performance), consequential, indirect, special or punitive damages, damages for the benefit of the bargain lost by Seller and diminution in value of the Business and, without limitation, the reimbursement of the Seller and the Selling Affiliates' reasonable and documented out-of-pocket costs and expenses. 

Section 9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Buyer Termination Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;In the event that this Agreement is validly terminated either pursuant to <u>Section 9.1(c)</u> or <u>Section 9.1(d</u>) (solely to the extent the applicable injunction, decree, order or other action arises under Foreign Antitrust Laws, Foreign Investment Laws or the EU Foreign Subsidies Regulation), and, as of the time of such termination, (i) the conditions set forth in at least one of <u>Section 7.1(a)</u> or <u>Section 7.1(b)</u> shall not have been satisfied or waived (<u>provided</u> that, with respect to <u>Section 7.1(a)</u>, solely to the extent the applicable Law or pending litigation arises under Foreign Antitrust Laws, Foreign Investment Laws or the EU Foreign Subsidies Regulation); (ii) a material breach by the Seller or the Company of this Agreement has not been the primary cause of such failure of the conditions in <u>Section 7.1(a)</u> (solely to the extent the applicable Law or pending litigation arises under Foreign Antitrust Laws, Foreign Investment Laws or the EU Foreign Subsidies Regulation) or <u>Section 7.1(b)</u> to be satisfied; and (iii) all other conditions to the obligations of the Buyer and the Seller to consummate the Closing set forth in <u>Article VII</u> shall have been satisfied or (to the extent permitted by applicable Law) waived (or, in the case of those conditions that by their nature are to be satisfied at or immediately prior to the Closing, such conditions are capable of being satisfied if the Closing were to occur), then the Buyer shall pay to the Seller $120,000,000 (the "**Buyer Termination Payment**"), by wire transfer of immediately available funds to an account or accounts designated in writing by the Seller, within three (3) Business Days after such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In no event shall the Buyer (or any Affiliate of Buyer) be required to pay the Buyer Termination Payment on more than one (1) occasion. The agreements contained in this <u>Section</u> 9.3 are an integral part of the transactions contemplated by this Agreement and constitute liquidated damages (and not a penalty) in a reasonable amount that will compensate the Seller and the Company for the efforts and resources expended and opportunities foregone while negotiating this Agreement and in reliance on this Agreement and on the expectation of the consummation of the Closing, which amount would otherwise be impossible to calculate with precision, and without these agreements, the Parties would not enter into this Agreement. The right to receive the Buyer Termination Payment shall not limit or otherwise affect the Seller's or the Company's right to specific performance as provided in <u>Section 10.13</u> or any remedies under the Confidentiality Agreement; <u>provided</u> that under no circumstances shall the Seller or the Company be permitted or entitled to receive both a grant of specific performance that results in the Closing occurring and the Buyer Termination Payment or other monetary damages being paid. Notwithstanding anything in this Agreement to the contrary, except in the case of Fraud and Willful Breach, in the event the Agreement is terminated under circumstances in which the Buyer Termination Payment is actually paid, the payment by the Buyer of the Buyer Termination Payment pursuant to <u>Section 9.3(a</u>) shall be the sole and exclusive remedy (whether at law, in equity, in contract, in tort or otherwise) of the Seller, the Company and each of its and their former, current or future Affiliates and Representatives for any and all Losses of any kind suffered or incurred by any of the Seller, the Company or any of their former, current or future Affiliates or Representatives, in connection with this Agreement and the transactions contemplated hereby (and the termination thereof or any matter forming the basis for

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such termination). Without limiting the generality of the foregoing, upon the payment by the Buyer of the Buyer Termination Payment, except in the case of Fraud and Willful Breach, the Seller and the Company and its and their former, current or future Affiliates and Representatives hereby irrevocably release and waive, and in no event shall any such Person be entitled to seek or obtain, any other recourse, remedy, right, recovery, judgement or damages of any kind through any legal action sounding in contract, contribution, tort, strict liability or any other legal theory with respect to this Agreement and the transactions contemplated hereby (and the termination thereof or any matter forming the basis for such termination). If the Buyer fails to promptly pay the Buyer Termination Payment pursuant to this <u>Section 9.3</u>, when due, and in order to obtain such payment, the Seller or the Company, as applicable, commences an Action that results in a judgment against the Buyer for the amount set forth in this <u>Section 9.3</u>, then the Buyer shall pay to the Seller or the Company, as applicable, interest on such amount at the prime rate as published in the Wall Street Journal in effect on the date such payment was required to be made through the date of payment.

**ARTICLE X <br>GENERAL PROVISIONS**

Section 10.1&nbsp;&nbsp;&nbsp;&nbsp; <u>Buyer's Investigation and Reliance</u> The Buyer is a sophisticated purchaser and has made its own independent investigation, review and analysis regarding the Business, the Company Group, the Company Transferred Interests, the Transferred Assets, the Assumed Liabilities and the transactions contemplated hereby, which investigation, review and analysis were conducted by the Buyer together with expert advisors, including legal counsel, that it has engaged for such purpose. The Buyer and its Representatives have been provided with adequate access to the Representatives, properties, offices, plants and other facilities, books and records of the Seller and the Company, each exclusively relating to the Business and other information that they have requested in connection with their investigation of the Company Group, the Business, the Transferred Assets, the Assumed Liabilities and the transactions contemplated hereby. The Buyer acknowledges and agrees that none of the Seller, any of its Affiliates or any of its Representatives has made any representation or warranty, express or implied, as to the accuracy or completeness of any information concerning the Company Group, the Company Transferred Interests, the Business, the Transferred Assets or the Assumed Liabilities contained herein or made available in connection with the Buyer's investigation of the foregoing, and the Seller and its Affiliates and Representatives expressly disclaim any and all liability that may be based on such information or errors therein or omissions therefrom, except as expressly set forth in <u>Article III</u>, the Company Transfer Agreements or any Ancillary Agreements. The Buyer (on behalf of itself and its Affiliates) acknowledges and agrees that it has not relied and is not relying on any statement, representation or warranty, oral or written, express or implied (including any representation or warranty as to merchantability or fitness for a particular purpose), made by the Seller or any of its Affiliates or Representatives, except as expressly set forth in <u>Article III</u>, the Company Transfer Agreements or any Ancillary Agreements. Except as expressly set forth in <u>Article III</u>, the Company Transfer Agreements or any Ancillary Agreements, the Buyer (on behalf of itself and its Affiliates) acknowledges and agrees that none of the Seller, any of its Affiliates or any of its Representatives shall have or be subject to any liability to the Buyer or any of its Related Parties or any other Person resulting from the distribution to the Buyer, or the Buyer's use of, any information, documents or materials made available to the Buyer, whether orally or in writing, in any confidential information memoranda, "data rooms", management presentations, due diligence discussions or in any other form in expectation of, or in connection with, the transactions contemplated by this Agreement. The Buyer (on behalf of itself and its Affiliates) acknowledges and agrees that none of the Seller, any of its Affiliates or any of its Representatives is making, directly or indirectly, any representation or warranty with respect to any estimates, projections or forecasts involving the Company Group, the Company Transferred Interests, the Business or the Transferred Assets, including in any confidential information memoranda, "data rooms", management presentations or due diligence discussions, except as expressly set forth in <u>Article III</u>, the Company Transfer Agreements or any Ancillary Agreements. The Buyer (on behalf of itself and its Affiliates) acknowledges that there are inherent uncertainties in attempting to make such estimates, projections and forecasts and that it takes full responsibility for making its own evaluation of the adequacy and accuracy of any such estimates,

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projections or forecasts (including the reasonableness of the assumptions underlying any such estimates, projections and forecasts). The Buyer (on behalf of itself and its Affiliates) acknowledges and agrees that none of the Seller, any of its Affiliates and any of its Representatives is making, and the Buyer hereby waives, any representation or warranty, express or implied, as to the quality, merchantability, as for a particular purpose, or condition of the Company Group, the Company Transferred Interests, the Business, the Transferred Assets or any part thereof, except as expressly set forth in <u>Article III</u>, the Company Transfer Agreements or any Ancillary Agreements. The Company and the Buyer (through its purchase of the Company Transferred Interests) (on behalf of itself and its Affiliates) acknowledge and agree that, should the Closing occur, the Company shall acquire the Business, the Transferred Assets and the Transferred Subsidiaries and the Buyer, through itself or a Buyer Designee shall acquire the Company Transferred Interests, each on an "as is" and "where is" basis, except as otherwise expressly set forth in <u>Article III</u>, any Company Transfer Agreement or any Ancillary Agreement. Each Party (on behalf of itself and its Affiliates) acknowledges that the representations and warranties expressly set forth in <u>Article III</u> are the result of arm's length negotiations between sophisticated parties and such representations and warranties are made. The provisions of this <u>Section 10.1</u> shall not, and shall not be deemed or construed to, prevent, impede, waive or release any claims for Fraud.

Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees and Expenses</u>. Except as otherwise provided herein, all fees and expenses incurred in connection with or related to this Agreement, the Company Transfer Agreements and the Ancillary Agreements and the transactions contemplated hereby and thereby shall be paid by the Party incurring such fees or expenses, whether or not such transactions are consummated. In the event of valid termination of this Agreement, the obligation of each Party to pay its own expenses will be subject to any rights of such Party arising from Fraud or a Willful Breach of this Agreement by the other. For the avoidance of doubt, the cost of the R&W Insurance Policy shall be the sole cost and expense of the Buyer, and the Seller shall not have any liability with respect thereto.

Section 10.3&nbsp;&nbsp;&nbsp;&nbsp; <u>Amendment and Modification</u>. This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in writing specifically designated as an amendment hereto, signed on behalf of each Party.

Section 10.4 &nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver; Extension</u>. At any time prior to the Closing, on one hand the Seller (on behalf of itself and the Company), and the Buyer on the other hand, may (a) extend the time for performance of any of the obligations or other acts of the other Party contained herein, (b) waive any inaccuracies in the representations and warranties of the other Party contained herein or in any document, certificate or writing delivered by such Party pursuant hereto or (c) waive compliance by the other Party with any of the agreements or conditions contained herein. At any time following the Closing, on one hand the Buyer (on behalf of itself and the Company), and the Seller on the other hand, may (x) extend the time for performance of any of the obligations or other acts of the other Party contained herein or (y) waive compliance by the other Party with any of the agreements or conditions contained herein. Any agreement on the part of any Party to any such extensions or waivers shall be valid only if set forth in a written agreement executed and delivered by a duly authorized officer on behalf of such Party. No failure or delay of either the Seller (on behalf of itself and the Company, prior to the Closing) or the Buyer (on behalf of itself and the Company, following the Closing) in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power.

Section 10.5&nbsp;&nbsp;&nbsp;&nbsp; <u>Notices</u>. All notices and other communications hereunder shall be in writing and shall be deemed duly given on the date of delivery to the recipient thereof if received prior to 5:00 p.m. in the place of delivery and such day is a Business Day (or otherwise on the next succeeding Business Day) (a) if delivered personally or by email (provided no "out-of-office," "bounceback" or "notice of non-delivery" is received) or (b) if delivered utilizing a next-day service by an internationally recognized next-day courier. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the Party to receive such notice:

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If to the Seller or the Company (prior to the Closing), to:

c/o Kimberly-Clark Corporation 351 Phelps Drive

Irving, TX 75038 Attention: Courtney Roane

Email: [\*\*\*\*\*]

with a copy (which shall not constitute notice) to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Attention: Edward J. Lee, P.C.; Steven M. Choi

Email: [\*\*\*\*\*]

Kirkland & Ellis LLP

401 Congress Avenue Austin, TX 78701

Attention: Kim Hicks, P.C.; Emily Lichtenheld

Email: [\*\*\*\*\*]

If to the Buyer or the Company (after the Closing), to:

Suzano International Holding B.V.

Spaces Zuidas I, Office 4.10,

Barbara Strozzilaan 201 1083 HN Amsterdam, the Netherlands

Attention: Walner Alves Cunha Junior; Justo Gomez Palmes

E-mail: [\*\*\*\*\*]

with a copy (which shall not constitute notice) to:

Freshfields US LLP

3 World Trade Center

175 Greenwich Street

New York, NY 10007

Attention: Paul K. Humphreys; Enrique Dancausa

Email: [\*\*\*\*\*]

Section 10.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Interpretation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;When a reference is made in this Agreement to a Section, Article, Exhibit, Disclosure Schedule or Schedule, such reference shall be to a Section, Article, Exhibit, Disclosure Schedule or Schedule of this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement or in any Exhibit or Schedule are for convenience of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances require. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein shall have the meaning as defined in this Agreement. Accounting terms used in this Agreement that are not defined in this Agreement but are defined in the Applicable Accounting Principles shall have the meanings ascribed to them in the Applicable Accounting Principles. All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth herein. Unless otherwise indicated, references herein: (x) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent such amendment, supplement or modification has been made available to the Buyer prior to the date hereof and is permitted by the provisions thereof; (y) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder; and (z) to the Company Group shall refer to each member of the Company Group. The word "including" and words of similar import when used in this Agreement will mean

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"including, without limitation", unless otherwise specified. The word "extent" and the phrase "to the extent" when used in this Agreement will mean the degree to which a subject or other thing extends, and such word or phrase will not simply mean "if." The words "hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to the Agreement as a whole and not to any particular provision in this Agreement. The term "or" is not exclusive. The word "will" shall be construed to have the same meaning and effect as the word "shall." Where used with respect to information, the phrases "provided," "delivered" or "made available" means that the information referred to has been physically or electronically delivered to the relevant parties or their respective Representatives, including, in the case of "made available" to the Buyer, material that has been made available and accessible continuously in unredacted form to the extent it relates to the Business (or to the extent in redacted form, redacted solely to the extent it relates to the Excluded Business) to the Buyer and its Representatives in the virtual data room hosted by Intralinks named "Project Pegasus-Live" (the "**Data Room**") by no later than two (2) days prior to the execution hereof (or the Closing Date, in the case of information required to be delivered or made available prior to the Closing Date (other than any such information that is specified to be required to be delivered or made available more than two (2) days prior to the Closing)). References to days mean calendar days unless otherwise specified. All time periods will be counted excluding the date when such period begins and including the last date when such period ends. Whenever any action must be taken hereunder on or by a day that is not a Business Day, then such action may be validly taken on or by the next day that is a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To the extent the provisions of any agreement, transfer document or other instrument necessary to give effect to the transfer of title of any Transferred Assets, Excluded Assets, or to effectuate the assumption of the Assumed Liabilities or Excluded Liabilities are inconsistent with or (except to the extent they implement a transfer in accordance with this Agreement) additional to the provisions of this Agreement: (i) the provisions of this Agreement shall prevail and (ii) so far as permissible under applicable Law of the relevant jurisdiction, the Seller, the Company and the Buyer shall cause the provisions of such agreement, transfer document or other instrument to be adjusted, to the extent necessary to give effect to the provisions of this Agreement or, to the extent the foregoing is not permissible, the Seller shall indemnify Company and the Buyer against all Losses suffered by the Company or the Buyer, as the case may be.

Section 10.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>. This Agreement (including the Exhibits and Schedules hereto), the Company Transfer Agreements, the Ancillary Agreements and the Confidentiality Agreement constitute the entire agreement, and supersede all prior written agreements, arrangements, communications and understandings and all prior and contemporaneous oral agreements, arrangements, communications and understandings between the Parties with respect to the subject matter hereof and thereof. None of this Agreement, any Company Transfer Agreement or any Ancillary Agreement shall be deemed to contain or imply any restriction, covenant, representation, warranty, agreement or undertaking of any Party with respect to the transactions contemplated hereby or thereby other than those expressly set forth herein or therein or in any document required to be delivered hereunder or thereunder, and none shall be deemed to exist or be inferred with respect to the subject matter hereof. Notwithstanding any oral agreement or course of conduct of the Parties or their Representatives to the contrary, no Party shall be under any legal obligation to enter into or complete the transactions contemplated hereby unless and until this Agreement shall have been executed and delivered by each of the Parties.

Section 10.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Parties in Interest</u>. This Agreement shall be binding upon and inure solely to the benefit of each Party hereto, and nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the Parties and their respective successors and permitted assigns any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, except with respect to the provisions of <u>Article VIII</u> and <u>Section 10.23</u>, which shall inure to the benefit of the Persons benefiting therefrom who are intended to be third-party beneficiaries thereof.

Section 10.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. This Agreement and any claims or causes of action arising out of or relating to this Agreement, the negotiation, execution or performance of this Agreement or

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the transactions contemplated hereby (whether in contract, in tort, under statute or otherwise) shall be governed by, and interpreted, construed and enforced in accordance with, the internal Laws of the State of Delaware, including its statutes of limitations, without giving effect to any choice or conflict of Laws rules or provisions (whether of the State of Delaware or any other jurisdiction) that would result in the application of the Laws of any jurisdiction other than the State of Delaware.

Section 10.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Submission to Jurisdiction</u>. Each of the Parties irrevocably agrees that any dispute, controversy or claim arising out of or relating to this Agreement, the negotiation, execution or performance of this Agreement or the transactions contemplated hereby (a "**Dispute**") brought by any Party or its successors or permitted assigns against the other Party shall be brought and determined as provided in this <u>Section 10.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Prior to the Closing Date, any Dispute, shall be brought and determined in the Court of Chancery of the State of Delaware, <u>provided</u> that if jurisdiction is not then available in the Court of Chancery of the State of Delaware, then any such legal Action or proceeding may be brought in any federal court located in the State of Delaware or any other Delaware state court, and each of the Parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such Action or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby. Each of the Parties agrees that prior to the Closing Date, it shall not commence any Action, suit or proceeding relating thereto except in the courts described above in Delaware, other than Actions in any court of competent jurisdiction to enforce any judgment, decree or order rendered by any such court in Delaware as described herein. Each of the Parties further agrees that notice as provided herein shall constitute sufficient service of process and the Parties further waive any argument that such service is insufficient. Each of the Parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any such Action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, and brought prior to the Closing Date (a) any claim that it is not personally subject to the jurisdiction of the courts in Delaware as described herein for any reason, (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) that (i) the suit, Action or proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such suit, Action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Any Dispute not brought in the Court of Chancery in the State of Delaware or another court as provided above in <u>Section 10.10(a)</u> prior to the Closing Date shall be resolved by three (3) arbitrators in accordance with the Rules of Arbitration (the "**ICC Rules**") of the International Chamber of Commerce (the "**ICC**") in effect at the time of the commencement of arbitration. The claimant shall nominate an arbitrator in its request for arbitration. The respondent shall nominate an arbitrator within thirty (30) days of the receipt of the request for arbitration. The two (2) arbitrators nominated by the Parties shall nominate a third arbitrator within thirty (30) days after the nomination of the later-nominated arbitrator. The third arbitrator shall act as president of the tribunal. If any of the three (3) arbitrators are not nominated within the time prescribed above, then the ICC shall appoint the arbitrator(s) in accordance with the ICC Rules. The seat of the arbitration shall be New York, NY, and the language of the arbitration shall be English. The award shall be final and binding on the Parties and may be enforced in any court of competent jurisdiction. Notwithstanding anything in the ICC Rules to the contrary, all fees and expenses (including attorney fees and disbursement) incurred in connection with or during the arbitral proceedings shall be borne by the Party unsuccessful in the arbitration, and the arbitral tribunal shall so order in its award. The existence of the arbitration, any non-public information provided in the arbitration, and any submissions, orders or awards made in the arbitration shall not be disclosed to any non-party except the tribunal, the ICC, the Parties, their counsel, experts, witnesses, accountants and auditors, insurers and reinsurers, and any other person necessary to the conduct of the arbitration. Notwithstanding the foregoing, a Party may disclose the existence of the arbitration, any non-public information provided in the arbitration, and any submissions, orders or awards made in the arbitration to the extent that disclosure

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may be required to fulfill a legal duty, protect or pursue a legal right, or enforce or challenge an award in bona fide legal proceedings.

Section 10.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure Generally</u>. Notwithstanding anything to the contrary contained in the Disclosure Schedules or in this Agreement, the information and disclosures contained in any Disclosure Schedule shall be deemed to be disclosed and incorporated by reference in any other Disclosure Schedule as though fully set forth in such Disclosure Schedule for which applicability or relevance of such information and disclosure is reasonably apparent on its face, except that, for purposes of any information or disclosure required pursuant to <u>Section 3.7(a)</u>, such information or disclosure must be specifically disclosed on <u>Schedule 3.7(a)</u> of the Disclosure Schedules. The fact that any item of information is disclosed in any Disclosure Schedule shall not be construed to mean that such information is required to be disclosed by this Agreement, except that, for purposes of any information or disclosure required pursuant to <u>Section 3.7(a)</u>, such information or disclosure must be specifically disclosed on <u>Schedule 3.7(a)</u> of the Disclosure Schedules. Such information and the dollar thresholds set forth herein shall not be used as a basis for interpreting the terms "material" or "Material Adverse Effect" or other similar terms in this Agreement. Inclusion of a matter in any Disclosure Schedule shall expressly not be deemed to constitute an admission by the Seller, or otherwise imply, that any such matter is material or creates a measure for materiality for purposes of this Agreement or of any obligation or liability to any third party.

Section 10.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment; Successors</u>.

Except as otherwise expressly permitted herein, neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of law or otherwise, by any Party without the prior written consent of the other Parties, and any such assignment without such prior written consent shall be null and void; provided that the Seller may assign any of its rights under this Agreement, including the right to receive the Purchase Price to one or more Affiliates of the Seller without the consent of the Buyer; provided, further, that no assignment shall limit the assignor's obligations hereunder. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and permitted assigns.

Section 10.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Enforcement</u>. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that money damages or other legal remedies would not be an adequate remedy for such nonperformance or breach. Accordingly, each of the Parties shall be entitled to specific performance of the terms hereof, including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in the Court of Chancery of the State of Delaware; provided that if jurisdiction is not then available in the Court of Chancery of the State of Delaware, then in any state or federal court located in the State of Delaware, this being in addition to any other remedy to which such Party is entitled at law or in equity. Each of the Parties hereby further waives (a) any defense in any Action for specific performance that a remedy at Law would be adequate and (b) any requirement under any Law to post bond or any other security as a prerequisite to obtaining equitable relief.

Section 10.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Currency; Exchange Rate</u>. All references to "dollars" or "$" or "US$" in this Agreement, any Company Transfer Agreement or any Ancillary Agreement refer to United States dollars, which is the currency used for all purposes in this Agreement, any Company Transfer Agreement and any Ancillary Agreement, except as otherwise expressly set forth therein. In the event that there is any need to convert U.S. dollars into any foreign currency, or vice versa, for any purpose under this Agreement any Company Transfer Agreement or any Ancillary Agreement, except as otherwise required by applicable Law (in which case, the exchange rate shall be determined in accordance with such Law) or as agreed by the Parties, the applicable rates of exchange shall be that published on the Bloomberg FX Fixings-Portal at the close of business on the Business Day prior to the applicable date (or, if no such

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exchange rate is published on the Bloomberg FX Fixings-Portal on such date, the first date thereafter on which such exchange rate is published on the Bloomberg Fixings-Portal).

Section 10.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

Section 10.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Jury Trial</u>. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, COMPANY TRANSFER AGREEMENTS, THE ANCILLARY AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT OR INSTRUMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH ABOVE IN THIS <u>SECTION 10.16</u>. NO PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS <u>SECTION 10.16</u> WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

Section 10.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party.

Section 10.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Signature</u>. This Agreement may be executed electronically (including by means of .pdf or similar graphic reproduction format or by means of digital signature software, e.g., DocuSign or Adobe Sign) and delivered by email or other similar means of electronic transmission, and any electronic signature shall constitute an original for all purposes.

Section 10.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Time of Essence</u>. Time is of the essence with regard to all dates and time periods set forth or referred to in this Agreement.

Section 10.20&nbsp;&nbsp;&nbsp;&nbsp;<u>No Presumption Against Drafting Party</u>. Each of the Parties acknowledges that each Party has been represented by legal counsel in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the drafting Party has no application and is expressly waived.

Section 10.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Prevailing Party</u>. If there shall occur any Action between the Parties to this Agreement or the transactions contemplated hereby, the non-prevailing Party shall pay all reasonable and documented out-of-pocket costs and expenses (including reasonable attorney's fees and expenses) of the prevailing Party.

Section 10.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Personal Liability</u>. This Agreement shall not create or be deemed to create or permit any personal liability or obligation on the part of any direct or indirect stockholder of the Seller or the Buyer or any Representative or investor of the Seller or the Buyer.

Section 10.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Recourse</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All Actions (whether in contract, in tort, under statute or otherwise, or based upon any theory that seeks to impose liability of an entity against its owners or Affiliates) that may be based upon, in respect of, arise under, out or by reason of, be connected with, or relate in any manner to (i) this

------

Agreement, the Company Transfer Agreements or the Ancillary Agreements, (ii) the negotiation, execution or performance of this Agreement, any Company Transfer Agreement or any Ancillary Agreement (including any representation or warranty made in connection with, or as inducement to enter into, this Agreement), (iii) any breach or violation of this Agreement, the Company Transfer Agreements or the Ancillary Agreements and (iv) any failure of the transactions contemplated by this Agreement, the Company Transfer Agreements or the Ancillary Agreements to be consummated, in each case, may be brought only against (and are those solely of) the Persons that are expressly named as Parties, as applicable, and then only to the extent of the specific obligations of such Persons set forth herein or therein. Notwithstanding the foregoing sentence, any claim brought in connection with the agreements evidencing the Reorganization shall be between the Parties regardless of the named party to any such agreements. No Person who is not a named Party to this Agreement, any Company Transfer Agreement or any Ancillary Agreement, including any Related Parties of any such party to this Agreement, any Company Transfer Agreement or any Ancillary Agreement (each, a "**Non-Party Affiliate**"), shall have any liability (whether in contract, in tort, under statute or otherwise, or based upon any theory that seeks to impose liability of an entity against its owners or Affiliates) arising out of, in connection with or related in any manner to the items in the immediately preceding <u>clauses (i)</u> through <u>(iv)</u>. To the maximum extent permitted by applicable Law, each Party waives and releases all such Actions against any such Non-Party Affiliate. For avoidance of doubt, the Parties acknowledge and agree that the Non-Party Affiliates referred to herein are intended third party beneficiaries of this <u>Section 10.23(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Party knowingly, willingly, irrevocably and expressly acknowledges and agrees that the agreements contained in this <u>Section 10.23</u> are an integral part of the transactions contemplated by this Agreement and that, without the agreements set forth in this <u>Section 10.23</u>, each Party would not enter into this Agreement or otherwise agree to consummate the transactions contemplated hereby.

[The remainder of this page is intentionally left blank.]

------

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

**KIMBERLY-CLARK CORPORATION**

By:&nbsp;&nbsp;&nbsp;&nbsp;*<u>/s/</u>* <u>Jeffrey P. Melucci</u><br>Name: Jeffrey P. Melucci

Title: Chief Strategy, Business Development and

Administrative Officer

**KIMBERLY-CLARK IFP NEWCO B.V**.

By: Kimberly-Clark IFP Holdings B.V., its Director

By: Kimberly-Clark Latin America, Inc., its Director

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>*<u>/s/</u>* <u>Courtney J. Roane</u><br> Name: Courtney J. Roane<br>Title: Vice President and Secretary

[*Signature Page to Equity and Asset Purchase Agreement*]

------

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

**SUZANO INTERNATIONAL HOLDING B.V.**

By:&nbsp;&nbsp;&nbsp;&nbsp;*<u>/s/</u>* <u>Justo Gomez Palmes</u><br>Name: Justo Gomez Palmes<br>Title: Managing Director

[*Signature Page to Equity and Asset Purchase Agreement*]

------

**<u>Exhibit B</u>**

*Form of Governance Agreement*

------

**EXHIBIT B**

**JOINT VENTURE AGREEMENT<br>**<br> in relation to<br>**<br>[NEWCO] B.V.<br>**<br> among<br>**<br>[NEWCO] B.V.,<br>SUZANO INTERNATIONAL HOLDING B.V.,**

**SUZANO S.A.**, solely for purposes of <u>Section 2.12</u>, <u>Section 9.4</u>, <u>Section 12.3</u> and <u>Section 13.20</u>,**<br>[KIMBERLY-CLARK DUTCH HOLDCO],**

and

**KIMBERLY-CLARK CORPORATION**, solely for purposes of <u>Section 2.12</u>, <u>Section 9.4</u> and <u>Section 12.3</u>**<br>**<br> Dated as of [●]

------

**<u>**TABLE OF CONTENTS**</u>**

---

| | |
|:---|:---|
| **ARTICLE I DEFINED TERMS** | <u>[1](#i75802f9ca89244a79e9475ca0a364d9a_58)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 Certain Defined Terms | <u>[1](#i75802f9ca89244a79e9475ca0a364d9a_3174)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 1.2 Interpretation | <u>[11](#i75802f9ca89244a79e9475ca0a364d9a_3192)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 1.3 General Undertakings and Agreements by the Shareholders | <u>[12](#i75802f9ca89244a79e9475ca0a364d9a_3210)</u> |
| **ARTICLE II ORGANIZATION** | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_61)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.1 Name | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3231)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.2 Term | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3250)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.3 Principal Place of Business | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3268)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.4 Central Management and Control | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3286)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.5 Title to Company Property | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3304)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.6 Purpose | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3322)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.8 No Personal Liability | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3358)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.9 Shares | <u>[13](#i75802f9ca89244a79e9475ca0a364d9a_3376)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.10 Admission of New Shareholders | <u>[14](#i75802f9ca89244a79e9475ca0a364d9a_3394)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.11 Shareholders Register | <u>[14](#i75802f9ca89244a79e9475ca0a364d9a_3412)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 2.12 Waiver of Fiduciaries Duties: Acquisition Opportunities | <u>[15](#i75802f9ca89244a79e9475ca0a364d9a_3430)</u> |
| **ARTICLE III BUSINESS PLAN AND ANNUAL BUDGET** | <u>[16](#i75802f9ca89244a79e9475ca0a364d9a_64)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.1 2025 and 2026 Annual Budget | <u>[16](#i75802f9ca89244a79e9475ca0a364d9a_3448)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 3.2 Subsequent Annual Budgets | <u>[16](#i75802f9ca89244a79e9475ca0a364d9a_3466)</u> |
| **ARTICLE IV FUNDING; CAPITAL CALLS** | <u>[17](#i75802f9ca89244a79e9475ca0a364d9a_67)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.1 No Funding Obligation | <u>[17](#i75802f9ca89244a79e9475ca0a364d9a_3487)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.2 Funding and Capital Calls | <u>[17](#i75802f9ca89244a79e9475ca0a364d9a_3505)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.3 Preemptive Rights | <u>[19](#i75802f9ca89244a79e9475ca0a364d9a_3523)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 4.4 Target Leverage Ratio | <u>[20](#i75802f9ca89244a79e9475ca0a364d9a_3541)</u> |
| **ARTICLE V BOARD; DIRECTORS** | <u>[20](#i75802f9ca89244a79e9475ca0a364d9a_70)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.1 Management of the Company | <u>[20](#i75802f9ca89244a79e9475ca0a364d9a_3764)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.2 Board | <u>[20](#i75802f9ca89244a79e9475ca0a364d9a_3783)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.3 Board Meetings: Quorum | <u>[21](#i75802f9ca89244a79e9475ca0a364d9a_3801)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.4 Resolutions in Writing | <u>[22](#i75802f9ca89244a79e9475ca0a364d9a_3819)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.5 Company Minutes | <u>[22](#i75802f9ca89244a79e9475ca0a364d9a_3837)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.6 Compensation | <u>[22](#i75802f9ca89244a79e9475ca0a364d9a_3855)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.7 Veto Matters: Deadlock | <u>[22](#i75802f9ca89244a79e9475ca0a364d9a_3873)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.8 Board Approval Matters | <u>[23](#i75802f9ca89244a79e9475ca0a364d9a_3891)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.9 Board Committees | <u>[23](#i75802f9ca89244a79e9475ca0a364d9a_3909)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.10 Chair | <u>[23](#i75802f9ca89244a79e9475ca0a364d9a_3927)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.11 Officers | <u>[23](#i75802f9ca89244a79e9475ca0a364d9a_3945)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 5.12 Subsidiaries | <u>[24](#i75802f9ca89244a79e9475ca0a364d9a_3963)</u> |

---

ii

------

---

| | |
|:---|:---|
| **ARTICLE VI GENERAL MEETING** | <u>[24](#i75802f9ca89244a79e9475ca0a364d9a_73)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.1 Annual General Meeting | <u>[24](#i75802f9ca89244a79e9475ca0a364d9a_3981)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 6.2 Voting Rights | <u>[25](#i75802f9ca89244a79e9475ca0a364d9a_4000)</u> |
| **ARTICLE VII DISTRIBUTIONS** | <u>[25](#i75802f9ca89244a79e9475ca0a364d9a_76)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 7.1 Distributions | <u>[25](#i75802f9ca89244a79e9475ca0a364d9a_4037)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 7.2 Limitations on Distributions | <u>[25](#i75802f9ca89244a79e9475ca0a364d9a_4037)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 7.3 Withholding | <u>[26](#i75802f9ca89244a79e9475ca0a364d9a_4055)</u> |
| **ARTICLE VIII BOOKS AND RECORDS: FINANCIAL STATEMENTS** | <u>[26](#i75802f9ca89244a79e9475ca0a364d9a_79)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 8.1 Books and Records: Financial Statements | <u>[26](#i75802f9ca89244a79e9475ca0a364d9a_4073)</u> |
| **ARTICLE IX RESTRICTIONS ON TRANSFER** | <u>[28](#i75802f9ca89244a79e9475ca0a364d9a_82)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 9.1 Certain Restrictions on Transfer or Encumbrance | <u>[28](#i75802f9ca89244a79e9475ca0a364d9a_4092)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 9.2 Improper Transfer or Encumbrance | <u>[29](#i75802f9ca89244a79e9475ca0a364d9a_4110)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 9.3 Transferees to Execute Agreement | <u>[29](#i75802f9ca89244a79e9475ca0a364d9a_4128)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 9.4 Call Options | <u>[29](#i75802f9ca89244a79e9475ca0a364d9a_4182)</u> |
| **ARTICLE X TERM AND TERMINATION** | <u>[36](#i75802f9ca89244a79e9475ca0a364d9a_85)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.1 Termination | <u>[36](#i75802f9ca89244a79e9475ca0a364d9a_4204)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.2 Events Causing Dissolution | <u>[36](#i75802f9ca89244a79e9475ca0a364d9a_4224)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.3 Liquidation | <u>[36](#i75802f9ca89244a79e9475ca0a364d9a_4243)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 10.4 Claims of Shareholders | <u>[37](#i75802f9ca89244a79e9475ca0a364d9a_4262)</u> |
| **ARTICLE XI LIABILITY AND INDEMNIFICATION** | <u>[37](#i75802f9ca89244a79e9475ca0a364d9a_88)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 11.1 Liability of Covered Persons | <u>[37](#i75802f9ca89244a79e9475ca0a364d9a_4281)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 11.2 Indemnification of the Company | <u>[37](#i75802f9ca89244a79e9475ca0a364d9a_4300)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 11.3 Advancement of Expenses | <u>[39](#i75802f9ca89244a79e9475ca0a364d9a_4318)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 11.4 Indemnification by the Shareholders | <u>[39](#i75802f9ca89244a79e9475ca0a364d9a_4336)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 11.5 Value Added Taxes | <u>[40](#i75802f9ca89244a79e9475ca0a364d9a_4354)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 11.6 Other Indemnities | <u>[40](#i75802f9ca89244a79e9475ca0a364d9a_4372)</u> |
| **ARTICLE XII OTHER AGREEMENTS** | <u>[40](#i75802f9ca89244a79e9475ca0a364d9a_91)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 12.1 Further Assurance | <u>[40](#i75802f9ca89244a79e9475ca0a364d9a_4391)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 12.2 Insurance | <u>[41](#i75802f9ca89244a79e9475ca0a364d9a_4410)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 12.3 Non-Compete: No Solicitation | <u>[41](#i75802f9ca89244a79e9475ca0a364d9a_4428)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.4 Informal Dispute Resolution Process | <u>[43](#i75802f9ca89244a79e9475ca0a364d9a_4446)</u> |
| **ARTICLE XIII MISCELLANEOUS** | <u>[44](#i75802f9ca89244a79e9475ca0a364d9a_94)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.1 Confidential Information | <u>[44](#i75802f9ca89244a79e9475ca0a364d9a_4464)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.2 Articles of Association | <u>[46](#i75802f9ca89244a79e9475ca0a364d9a_4483)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.3 Representations and Warranties of the Company | <u>[46](#i75802f9ca89244a79e9475ca0a364d9a_4501)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.4 Notices | <u>[47](#i75802f9ca89244a79e9475ca0a364d9a_4519)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.5 Public Announcements | <u>[47](#i75802f9ca89244a79e9475ca0a364d9a_4537)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.6 Cumulative Remedies | <u>[47](#i75802f9ca89244a79e9475ca0a364d9a_4556)</u> |

---

iii

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.7 Parties in Interest | <u>[47](#i75802f9ca89244a79e9475ca0a364d9a_4574)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.8 Severability | <u>[48](#i75802f9ca89244a79e9475ca0a364d9a_4592)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.9 Counterparts | <u>[48](#i75802f9ca89244a79e9475ca0a364d9a_4610)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.10 Electronic Signature | <u>[48](#i75802f9ca89244a79e9475ca0a364d9a_4628)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.11 Entire Agreement | <u>[48](#i75802f9ca89244a79e9475ca0a364d9a_4646)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.12 Governing Law | <u>[48](#i75802f9ca89244a79e9475ca0a364d9a_4664)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.13 Arbitration | <u>[48](#i75802f9ca89244a79e9475ca0a364d9a_4682)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.14 Specific Performance | <u>[49](#i75802f9ca89244a79e9475ca0a364d9a_4700)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.15 Expenses | <u>[49](#i75802f9ca89244a79e9475ca0a364d9a_4718)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.16 Amendments and Modification: Waiver | <u>[49](#i75802f9ca89244a79e9475ca0a364d9a_4736)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.17 No Presumption Against Drafting Party | <u>[49](#i75802f9ca89244a79e9475ca0a364d9a_4754)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.18 No Recourse | <u>[50](#i75802f9ca89244a79e9475ca0a364d9a_4772)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.19 Certain Tax Matters | <u>[50](#i75802f9ca89244a79e9475ca0a364d9a_4790)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Section 13.20 Guaranty | <u>[50](#i75802f9ca89244a79e9475ca0a364d9a_4808)</u> |

---

iv

------

---

| | |
|:---|:---|
| **EXHIBITS** | **EXHIBITS** |
| Exhibit A | Form of Joinder Agreement |
| **SCHEDULES** | **SCHEDULES** |
| Schedule I | Capitalization Table |
| Schedule II | Initial Directors and Officers |
| Schedule III | Veto Matters |
| Schedule IV | Board Approval Matters |
| Schedule V | Minimum Qualification Requirements |
| Schedule VI | Restricted Transferees |
| Schedule VII | Call Option Purchase Price |
| Schedule VIII | Proxy |
| Schedule IX | Long-Term Incentive Plan |
| Schedule X | Treasury Principles |
| Schedule XI | Pre-Closing Reorganization |
| Schedule 2.12(c) | Strategic Alliances |
| Schedule 3.1(a) | 2025 and 2026 Annual Budget |
| Schedule 12.3(b) | Certain Transferred Employees |
| Schedule 12.3(e) | Restricted Products |
| **ANNEX** | **ANNEX** |
| Annex I | Tax Matter Annex |

---

v

------

**JOINT VENTURE AGREEMENT<br>OF<br>[NEWCO] B.V.**

This JOINT VENTURE AGREEMENT of [NewCo] B.V., a private limited liability company (*besloten vennootschap met beperkte aansprakelijkheid*) incorporated under the Laws of the Netherlands (registered under [●]) having its corporate seat in [Amsterdam, the Netherlands] and its office address at [●] (the "**Company**"), is made and effective as of [●], 202[●], by and among (a) the Company, (b) Suzano International Holding B.V., a private company with limited liability organized and existing under the Laws of the Netherlands ("**Suzano**"), (c) [K-C Dutch Holdco 1] ("**K-C Holdco 1**"), a [●], (d) [K-C Holdco 2], a [●] ("**K-C Holdco 2**"), (e) [K-C Holdco 3] ("**K-C Holdco 3**"), a [●] (K-C Holdco 1, K-C Holdco 2 and K-C Holdco 3, collectively, "**K-C**"), (f) solely for purposes of <u>Section 2.12</u>, <u>Section 9.4</u> and <u>Section 12.3</u>, Kimberly-Clark Corporation, a Delaware corporation ("**K-C Parent**"), and (g) solely for purposes of <u>Section 2.12</u>, <u>Section 9.4</u>, <u>Section 12.3</u> and <u>Section 13.20</u>, Suzano S.A. ("**Suzano Parent**"). Each of Suzano and K-C shall be referred to as a "**Shareholder**" (as defined herein).

**RECITALS**

WHEREAS, the Company was formed under the Laws of the Netherlands by means of the execution of a notarial deed of incorporation, dated May 1, 2025;

WHEREAS, certain indirect wholly-owned Subsidiaries of K-C Parent collectively hold [●] Preferred Shares of the Company representing 100% of all the issued and outstanding Preferred Shares of the Company;

WHEREAS, pursuant to that certain Equity and Asset Purchase Agreement, dated as of June [●], 2025, by and among K-C Parent, Suzano and the Company (the "**EAPA**"), Suzano acquired from K-C Parent (or its indirect Subsidiaries) 100% of all the issued and outstanding Common Shares of the Company; and

WHEREAS, the parties hereto desire to enter into this Agreement to set forth certain agreements and arrangements with respect to the management, control, operation, shareholding and certain other matters relating to the Company.

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

**ARTICLE I <br>DEFINED TERMS**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Defined Terms</u>. Each of the following terms shall have the meaning provided in this Section:

"**2025 and 2026 Annual Budget**" has the meaning set forth in <u>Section 3.1(a)</u>.

"**ABU Geographic Regions**" means Europe, the United Kingdom, Ireland, Africa, South America, Central America, Puerto Rico, Middle East, Asia (including Southeast Asia) and Oceania. For the avoidance of doubt, none of the following countries shall be considered an ABU Geographic Region: (a) Korea; (b) Mexico; (c) Saudi Arabia; (d) Bahrain, (e) Qatar; (f) Kuwait; (g) Oman; (h) the United Arab Emirates; (i) Brazil; (j) Bolivia; (k) Russia; and (l) Kazakhstan.

"**Adjusted EBITDA**" has the meaning set forth in <u>Schedule VII</u>.

------

"**Affiliate**" means, with respect to a specified Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such specified Person; <u>provided</u> that, for purposes of this Agreement, K-C shall be deemed not to be an Affiliate of the Company or any of its Subsidiaries and *vice versa*.

"**Agreement**" means this Joint Venture Agreement in relation to the Company, as amended, modified, supplemented or restated from time to time in accordance with the terms hereof.

"**Annual Budget**" has the meaning set forth in <u>Section 3.2(a)</u>.

"**Annual Budget and Business Plan**" has the meaning set forth in <u>Section 3.2(a)</u>.

"**Approved Funding Requirements**" means the amount of Capital Contributions set forth in an approved Annual Budget or Business Plan as being required of the Shareholders to fund the Company Group.

"**Articles of Association**" means the article of association (*statuten*) of the Company as applicable from time to time.

"**As-Converted Basis**" means, with respect to any outstanding Preferred Shares as of any date, the number of Common Shares that would be issuable upon the conversion of all such Preferred Shares on such date (at the conversion rate specified in <u>Section 2.9(b)(ii)</u>) in accordance with <u>Section 2.9(b)(ii)</u>.

"**Auditor**" has the meaning set forth in <u>Section 8.1(a)</u>.

"**Available Cash**" means, as of any time, all Cash of the Company and its Subsidiaries, <u>less</u> the aggregate amount (or estimated aggregate amounts) of Cash reasonably necessary, appropriate or advisable to (a) provide for any legal or statutory reserves and any other required allocation under applicable Law and (b) establish and maintain sufficient voluntary reserves or other allocation to provide for the forecasted Selling, General and Administrative (SG&A) expenses, distribution costs, advertisement and promotion expenses (A&CP) and Cost of Good Sold (COGS) costs requirements of the Company Group for the subsequent 45 days, in each case, as reasonably determined by the CEO in accordance with IFRS (with such calculation subject to reasonable oversight by the Board).

"**Bankruptcy Event**", with respect to the Company or any of its Subsidiaries, means a declaration of bankruptcy (*faillietverklaring*), an application for a suspension of payments (*surséance van betaling*), becoming subject to a pre-insolvency private plan procedure (*onderhands akkoordprocedure*) (or each of their equivalents outside the Netherlands) or any other similar relief under any bankruptcy, insolvency or similar applicable Law.

"**Baseline EBITDA**" has the meaning set forth in <u>Schedule VII</u>.

"**Board**" has the meaning set forth in <u>Section 5.1</u>.

"**Business**" means (a) a global business of manufacturing or having made, marketing, developing, distributing or selling consumer and professional tissue products, including bath tissue, towels, table napkins, hard rolls, facial tissue, wipe products and those products set forth in Schedule 1.1(i) of the EAPA, (b) all such other businesses and services that the Company and its Subsidiaries engage in as of the date hereof and (c) as such business referenced in <u>clauses (a)</u> and <u>(b)</u> may evolve as permitted hereunder.

------

"**Business Day**" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in Dallas, Texas, Sao Paulo, Brazil or Amsterdam, the Netherlands.

"**Business Plan**" has the meaning set forth in <u>Section 3.2(a)</u>.

"**Call Option**" has the meaning set forth in <u>Section 9.4(a)</u>.

"**Call Option Calculation Time**" has the meaning set forth in <u>Section 9.4(d)</u>.

"**Call Option Closing**" has the meaning set forth in <u>Section 9.4(b)</u>.

"**Call Option Closing Date**" has the meaning set forth in <u>Section 9.4(b)</u>.

"**Call Option Final Closing Statement**" has the meaning set forth in <u>Section 9.4(g)(i)</u>.

"**Call Option Net Adjustment Amount**" has the meaning set forth in <u>Section 9.4(g)(vi)(A)</u>.

"**Call Option Notice**" has the meaning set forth in <u>Section 9.4(b)</u>.

"**Call Option Notice of Disagreement**" has the meaning set forth in <u>Section 9.4(g)(ii)</u>.

"**Call Option Purchase Price**" has the meaning set forth in <u>Schedule VII</u>.

"**Call Shares**" has the meaning set forth in <u>Section 9.4(a)</u>.

"**CapEx**" means, with respect to any member of the Company Group, as of any specified date or for any specified period, the total amount of capital expenditures incurred or to be incurred to further the development, maintenance, improvement, construction, acquisition or expansion of any mills, distribution centers or any other facilities or other fixed assets of the Business (including any leasehold improvements) or their operations and the assets related thereto or any other capital expenditures recorded and capitalized in accordance with IFRS.

"**CapEx Deviation**" has the meaning set forth in <u>Schedule VII</u>.

"**Capital Call**" has the meaning set forth in <u>Section 4.2(c)</u>.

"**Capital Contribution**" means, with respect to any Shareholder, a contribution of cash or property to the Company in exchange for Common Shares or Preferred Shares, as applicable.

"**Cash**" means, with respect to any Person as of a specified time, the aggregate amount of all cash, cash equivalents, checks, money orders, investment accounts, certificates of deposit, any uncleared checks, drafts or wire transfers deposited in the account of such Person, freely tradeable marketable securities and short-term instruments held by such Person, in each case, without duplication and to the extent convertible into cash within thirty (30) days after such specified time, but excluding (a) any Restricted Cash, (b) any outstanding checks or wire transfers issued by such Person and (c) outbound transaction amounts, in each case, determined in accordance with IFRS.

"**CCO**" has the meaning set forth in <u>Section 5.11(a)</u>.

"**CEO**" means the Chief Executive Officer of the Company.

"**CFO**" means the Chief Financial Officer of the Company.

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"**Chair**" has the meaning set forth in <u>Section 5.10</u>.

"**Closing Call Option Purchase Price**" has the meaning set forth in <u>Section 9.4(h)(i)</u>.

"**Closing CapEx Deviation**" has the meaning set forth in <u>Section 9.4(h)(i)</u>.

"**Closing Input Costs Deviation**" has the meaning set forth in <u>Section 9.4(h)(i)</u>.

"**Closing Net Indebtedness**" has the meaning set forth in <u>Section 9.4(h)(i)</u>.

"**Closing SAP Cost Reimbursement Amount**" has the meaning set forth in <u>Section 9.4(h)(i)</u>.

"**Common Shares**" means the single class of common shares in the capital of the Company.

"**Company**" has the meaning set forth in the Preamble.

"**Company Group**" means the Company and each of its Subsidiaries.

"**Confidential Information**" has the meaning set forth in <u>Section 13.1(a)</u>.

"**Control**" (including the terms "**Controlled by**" and "**under common Control with**") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or otherwise, including the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar body governing the affairs of such Person.

"**Conversion**" has the meaning set forth in <u>Section 2.9(b)(ii)</u>.

"**COO**" has the meaning set forth in <u>Section 5.11(a)</u>.

"**Corporate Opportunity**" has the meaning set forth in <u>Section 2.12(b)</u>.

"**Covered Person**" means (a) a Shareholder, any Affiliate of a Shareholder, any officers, directors, employees, managers, partners, members, controlling Person or shareholders of a Shareholder, or its or their respective Affiliates, in each case, other than any member of the Company Group, solely in such Person's capacity as such, (b) any Director (solely in such Person's capacity as a Director), and (c) any Officer (solely in such Person's capacity as an Officer).

"**Deadlock Notice**" has the meaning set forth in <u>Section 5.7</u>.

"**Direct Shares**" has the meaning set forth in <u>Section 9.4(a)</u>.

"**Director**" has the meaning set forth in <u>Section 5.2(a)</u>.

"**Dispute**" has the meaning set forth in <u>Section 13.13(a)</u>.

"**Distribution Policy**" has the meaning set forth in <u>Section 7.1</u>.

"**Dutch Holdco Entity**" means K-C or a Permitted Transferee of K-C that (a) is a private limited liability company (*besloten vennootschap met beperkte aansprakelijkheid*) incorporated under the Laws of the Netherlands, (b) was formed solely for purposes of holding Shares and activities relating directly to the Pre-Closing Reorganization, (c) has not engaged at any time in any other business or

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activities other than relating solely to holding Shares and activities relating directly to the Pre-Closing Reorganization, and (d) has no liabilities (contingent or otherwise), debts or obligations of any nature whatsoever or made any investments at any time other than those relating solely to holding Shares or activities relating directly to the Pre-Closing Reorganization.

"**EAPA**" has the meaning set forth in the Recitals.

"**EBITDA Insufficiency Delay Period**" has the meaning set forth in <u>Schedule VII</u>.

"**EBITDA Notice of Disagreement**" has the meaning set forth in <u>Section 9.4(c)</u>.

"**Emergency**" means (a) any unexpected event or situation that requires prompt action by any member of the Company Group to avoid, prevent, mitigate or otherwise prudently respond to (i) an event or situation which would, unless remedied without delay, be reasonably expected to result in a health or safety risk, including harm to persons, injury, illness, or death of any person, damage or loss to the properties or assets of any member of the Company Group or of any other Person, or damage to the environment (including natural resources or wildlife); (ii) any damage or disrepair to any property or assets of any member of the Company Group (including repairs or replacements thereof); or (iii) any material violation of applicable Laws; or (b) any action required to prevent or otherwise prudently respond to (x) a situation or event which would, unless remedied without delay, be reasonably expected to result in any member of the Company Group not having sufficient cash on hand (or access to immediately drawable credit) to satisfy the obligations of any member of the Company Group in the ordinary course as they become due at any point in the immediately subsequent three (3) months or (y) a material default or event of default by any member of the Company Group, or to cure a material default or event of default, on any material Contract to which any member of the Company Group is a party (other than any such Contract between a member of the Company Group, on the one hand, and Suzano, K-C or any of their respective Affiliates (other than the Company Group), on the other hand).

"**Emergency Loan**" has the meaning set forth in <u>Section 4.2(d)</u>.

"**Emergency Required Funds**" has the meaning set forth in <u>Section 4.2(d)</u>.

"**Encumbrance**" means any charge, claim, mortgage, lien, option, pledge, easement, right of way, encumbrance, security interest or other restriction of any kind.

"**Estimated Call Option Purchase Price**" has the meaning set forth in <u>Section 9.4(c)</u>.

"**Estimated CapEx Deviation**" has the meaning set forth in <u>Section 9.4(c)</u>.

"**Estimated Input Costs Deviation**" has the meaning set forth in <u>Section 9.4(c)</u>.

"**Estimated Net Indebtedness**" has the meaning set forth in <u>Section 9.4(c)</u>.

"**Estimated SAP Cost Reimbursement Amount**" has the meaning set forth in <u>Section 9.4(d)</u>.

"**Exercise Period**" has the meaning set forth in <u>Section 4.2(d)</u>.

"**Fair Market Value**" means, as determined in good faith by the Board, (a) for any Share, as of any valuation date, the fair market value of each such Share that a willing, unaffiliated buyer having all relevant knowledge would pay to a willing seller for such Share in an arm's length transaction occurring on the date of valuation and (b) for any asset or any other security for any purpose not covered by <u>clause (a)</u>, as of any valuation date, the fair market value of such assets or securities.

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"**Final CapEx Deviation**" has the meaning set forth in <u>Section 9.4(g)(iii)</u>.

"**Final Input Costs Deviation**" has the meaning set forth in <u>Section 9.4(g)(iii)</u>.

"**Final Net Indebtedness**" has the meaning set forth in <u>Section 9.4(g)(iii)</u>.

"**Final SAP Cost Reimbursement Amount**" has the meaning set forth in <u>Section 9.4(g)(iii)</u>.

"**Final Specified Adjusted EBITDA**" has the meaning set forth in <u>Section 9.4(b)</u>.

"**Fiscal Quarter**" means each of (a) the period commencing on January 1 in any year and ending on March 31 in the same year, (b) the period commencing on April 1 in any year and ending on June 30 in the same year, (c) the period commencing on July 1 in any year and ending on September 30 in the same year and (d) the period commencing on October 1 in any year and ending on December 31 in the same year or such other quarterly accounting period as may be adopted by the Board in accordance with the terms of this Agreement.

"**Fiscal Year**" means (a) the period commencing upon the formation of the Company and ending on December 31, 2025 or (b) any subsequent twelve-month period commencing on January 1 and ending on December 31 or such other yearly accounting period as may be proposed by the Board and approved by the General Meeting in accordance with the terms of this Agreement.

"**GAAP**" means United States generally accepted accounting principles as in effect from time to time.

"**General Meeting**" means the general meeting of the Shareholders (*algemene vergadering*).

"**Governmental Authority**" means any United States or non-United States national, supranational, federal, state or local governmental, quasi-governmental, regulatory, self-regulatory or administrative authority, agency, division or commission or any judicial or arbitral body of competent jurisdiction.

"**Guaranteed Obligations**" has the meaning set forth in <u>Section 13.20</u>.

"**ICC Rules**" has the meaning set forth in <u>Section 13.13(a)</u>.

"**IFRS**" means the International Financial Reporting Standards as issued by the International Accounting Standards Board as in effect from time to time and consistently applied.

"**Indemnified Party**" has the meaning set forth in <u>Section 11.4</u>.

"**Indemnifying Party**" has the meaning set forth in <u>Section 11.4</u>.

"**Indirect Shares**" has the meaning set forth in <u>Section 9.4(a)</u>.

"**Initial CEO**" has the meaning set forth in <u>Section 5.11(a)</u>.

"**Initial CFO**" has the meaning set forth in <u>Section 5.11(a)</u>.

"**Issuance Notice**" has the meaning set forth in <u>Section 4.2(d)</u>.

"**K-C**" has the meaning set forth in the Preamble.

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"**K-C Competitive Activity**" has the meaning set forth in <u>Section 12.3(a)</u>.

"**K-C Competitive Target**" has the meaning set forth in <u>Section 12.3(a)</u>.

"**K-C Directors**" has the meaning set forth in <u>Section 5.2(a)</u>.

"**KC Holdco 1**" has the meaning set forth in the Preamble.

"**KC Holdco 2**" has the meaning set forth in the Preamble.

"**KC Holdco 3**" has the meaning set forth in the Preamble.

"**KC SAP Cost Reimbursement"** has the meaning set forth on <u>Schedule VII</u>.

"**KC SAP Excess**" means, as of any time of determination, the positive amount, if any, equal to (a) (i) K-C's Percentage Interest <u>multiplied</u> by (ii) the SAP Costs <u>minus</u> (b) $30,000,000 <u>minus</u> (c) all amounts paid to K-C instead of Suzano prior to the time of determination pursuant to the last sentence of <u>Section 7.1(a)</u>. For the avoidance of doubt, if the calculation in this definition results in a negative number, the KC SAP Excess shall be equal to zero.

"**K-C Parent**" has the meaning set forth in the Preamble.

"**KPMG**" has the meaning set forth in <u>Section 9.4(b)</u>.

"**Law**" means any statute, law, ordinance, regulation, rule, code, injunction, judgment, decree or order of any Governmental Authority.

"**Leverage Ratio**" has the meaning set forth in the Treasury Principles.

"**Liquidating Trustee**" means the Managing Shareholder or such other Person appointed by the Managing Shareholder to serve as the liquidating trustee of the Company.

"**Lock-Up Period**" means (a) with respect to K-C, until the date that is three (3) years after the date hereof and (b) with respect to Suzano, until the later of (i) the date that is three (3) years after the date hereof and (ii) the date on which K-C and/or its Permitted Transferees cease to hold any Shares in the Company.

"**Losses**" has the meaning set forth in <u>Section 11.1(b)</u>.

"**Majority Vote**" means, with respect to any matter to be voted on, the written approval of, or the affirmative vote by, a majority of the Directors serving on the Board entitled to vote.

"**Managing Shareholder**" means Suzano and any successor managing shareholder or managing member of the Company that is selected solely by Suzano.

"**Material Accounting Engagements**" means (a) with respect to Suzano Parent or Suzano, engaging KPMG (i) as its independent auditor to audit its consolidated financial statements, (ii) for any other accounting or audit engagement involving fees payable to KPMG in excess of $5,000,000 in any calendar year, (iii) for matters relating to this Agreement or the EAPA not expressly contemplated by this Agreement or the EAPA, or (iv) in any matter where KPMG would be advising the board of directors or other governing body of Suzano Parent, (b) with respect to the Company Group, engaging KPMG for any accounting or audit engagement involving (i) fees payable to KPMG in excess of $1,000,000 in any calendar year or (ii) matters relating to this Agreement or the EAPA not expressly contemplated by this Agreement or the EAPA, and (c) with respect to K-C Parent or K-C, engaging KPMG (i) as its independent

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auditor to audit its consolidated financial statements, (ii) for any accounting or audit engagement involving fees payable to KPMG in excess of $5,000,000 in any calendar year, (iii) for matters relating to this Agreement or the EAPA not expressly contemplated by this Agreement or the EAPA, or (iv) in any matter where KPMG would be advising the board of directors of K-C Parent.

"**Measurement Time**" means 11:59 p.m. Dallas, Texas time on the last day of the month immediately preceding the Trigger Date.

"**Minimum Qualification Requirements**" means has the meaning set forth on <u>Schedule V</u>.

"**Necessary Investments**" has the meaning set forth in <u>Section 3.1(b)</u>.

"**Net Indebtedness**" has the meaning set forth on <u>Schedule VII</u>.

"**Officers**" means those Persons to which the Board has granted certain authority by means of granting unlimited or limited powers of attorney to represent and bind the Company Group.

"**Other Indemnification Agreement**" means one or more certificate or articles of incorporation, articles of association, by-laws, limited partnership agreement, limited liability company operating agreement, joint venture agreement and any other organizational document, and insurance policies maintained by any Shareholder, director or Affiliate of such Shareholder or Director or Officer providing for, among other things, indemnification of and advancement of expenses for any Covered Person for, among other things, the same matters that are subject to indemnification and advancement of expenses under <u>Section 11.2</u> or <u>Section 11.3</u>.

"**Percentage Interest**" of a Shareholder means, as of any time of determination, a fraction (expressed as a percentage), the numerator of which is the aggregate number of Shares owned by such Shareholder (on an As-Converted Basis) and the denominator of which is the sum of the total number of Shares owned by all Shareholders (on an As-Converted Basis).

"**Permits**" means any consent, license, franchise, permit, waiver, approval, authorization, certificate, registration, concession, exemption, or other similar authorization issued or otherwise granted by, obtained from or made with any Governmental Authority.

"**Permitted Encumbrances**" means (a) liens for Taxes, assessments or other governmental charges (i) not yet delinquent or (ii) the validity or amount of which is being contested in good faith by appropriate proceedings and for which there are adequate reserves on the financial statements of the Company Group, (b) mechanics', carriers', workers', repairers' and other similar liens arising or incurred in the ordinary course of business relating to obligations as to which there is no default on the part of any member of the Company Group for a period greater than sixty (60) days, or the validity or amount of which is being contested in good faith by appropriate proceedings, and in each case for which there are adequate reserves on the financial statements of the Company Group, or pledges, deposits or other liens securing the performance of bids, trade Contracts, leases or statutory obligations (including workers' compensation, unemployment insurance or other social security legislation), and (c) with respect to real property: (i) zoning, entitlement, conservation restriction and other land use and environmental regulations promulgated by Governmental Authorities; (ii) any right, interest, lien, title or other Encumbrance of a lessor or sublessor under any lease or other similar agreement or in the real property being leased; and (ii) all recorded exceptions, restrictions, easements, imperfections of title, charges, rights-of-way and other Encumbrances, in each of the foregoing <u>clauses (i)</u>, <u>(ii)</u> and <u>(iii)</u>, to the extent that such Encumbrance (A) does not materially and adversely affect the value of the applicable real property and (B) does not materially interfere with the ownership or use of the applicable real property by the Business, taken as a whole.

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"**Permitted Transferee**" means (a) with respect to a specified Person, any controlled Affiliate of such Person, and (b) with respect to K-C, any Transferee of Shares pursuant to <u>Section 9.4</u>.

"**Person**" means an individual, corporation, private limited company, partnership, limited liability company, limited liability partnership, syndicate, person, trust, association, organization or other entity, including any Governmental Authority, and including any successor, by merger or otherwise, of any of the foregoing.

"**Pre-Closing Reorganization**" means the transfers, transactions and other steps of K-C Parent and its Subsidiaries specifically set forth on <u>Schedule XI</u>.<sup>1</sup>

"**Preemptive Right**" has the meaning set forth in <u>Section 4.2(d)</u>.

"**Preferred Shares**" means the single class of preferred shares in the capital of the Company.

"**Preliminary Call Option Closing Statement**" has the meaning set forth in <u>Section 9.4(c)</u>.

"**Proposed Candidate List**" has the meaning set forth in <u>Section 5.11(a)</u>.

"**Prospective Transferee**" has the meaning set forth in <u>Section 9.3</u>.

"**Recoverable VAT Loan**" has the meaning set forth in the EAPA.

"**Relationship Banks**" has the meaning set forth in the Treasury Principles.

"**Representatives**" has the meaning set forth in <u>Section 13.1(a)</u>.

"**Required Governmental Authorizations**" has the meaning set forth in <u>Section 9.4(d)</u>.

"**Restricted Cash**" means, with respect to any Person as of a specified time, any Cash to the extent not freely usable by such Person because such cash or cash equivalents are subject to Taxes, restrictions or limitations on use or distribution by applicable Law or Contract, including (a) restrictions on dividends and repatriations to such Person and (b) amounts held in escrow or in reserve pursuant to any letter of credit, surety bond or otherwise as collateral and amounts that are held as a deposit for the benefit of a third party.

"**Restricted Territory**" means (a) each ABU Geographic Region where the Business operates as of the date hereof and (b) any other jurisdiction or country other than the United States (excluding Puerto Rico), Korea, Mexico, Canada, Saudi Arabia, Bahrain, Qatar, Kuwait, Oman, the United Arab Emirates, Bolivia and Brazil.

"**Restricted Transferee**" means the Persons set forth on <u>Schedule VI</u>.

"**SAP Costs**" has the meaning set forth in <u>Schedule VII</u>.

"**SAP Cost Reimbursement Amount**" has the meaning set forth in <u>Schedule VII</u>.

"**Second Call Option Notice**" has the meaning set forth in <u>Schedule VII</u>.

<sup>1</sup> &nbsp;&nbsp;&nbsp;&nbsp;**Note to K-C**: This Schedule to include the Reorganization deck agreed by the parties at signing (as updated between signing and closing by mutual agreement of the parties).

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"**Senior Officers**" has the meaning set forth in <u>Section 5.11(a)</u>.

"**Shareholder**" means any Person named as a Shareholder of the Company on <u>Schedule I</u> attached hereto and any Person admitted as an additional Shareholder pursuant to the provisions of this Agreement, in each case, in such Person's capacity as a Shareholder of the Company.

"**Shareholder Affiliate**" has the meaning set forth in <u>Section 13.18(b)</u>.

"**Shareholder Meeting Notice**" has the meaning set forth in <u>Section 6.1</u>.

"**Shareholders Register**" has the meaning set forth in <u>Section 2.11</u>.

"**Shares**" means any issued and outstanding Common Shares and Preferred Shares.

"**Specified Adjusted EBITDA**" means, as of any specified date, the average of the Adjusted EBITDA of the Company Group, measured for the periods of the most recent two (2) consecutive years ending prior to such specified date, subject to the adjustment set forth in <u>Section 9.4(b)</u>.

"**SRO**" has the meaning set forth in <u>Section 8.1(c)</u>.

"**Steering Committee**" has the meaning set forth in <u>Schedule VII</u>.

"**Strategic Alliance**" has the meaning set forth in <u>Section 2.12(c)</u>.

"**Subsidiary**", with respect to any Person, means any other Person of which at least fifty percent (50%) of the outstanding voting securities or other voting equity interests are owned or Controlled, directly or indirectly, by such first Person.

"**Supermajority Vote**" has the meaning set forth in <u>Section 5.7</u>.

"**Surviving Provisions**" means <u>Article I</u>, <u>Section 7.3</u>, <u>Article XI</u>, <u>Article XIII</u>, <u>Sections 1(d)</u> and <u>1(e)</u> of Part A and <u>Sections 1(b)</u> and <u>1(c)</u> of Part B of <u>Schedule 2.12(c)</u>, and <u>Sections 4(a)</u>, <u>4(b)</u>, <u>4(c)</u> and <u>4(f)</u> of <u>Annex I</u>.

"**Suzano**" has the meaning set forth in the Preamble.

"**Suzano Directors**" has the meaning set forth in <u>Section 5.2(a)</u>.

"**Suzano Parent**" has the meaning set forth in the Preamble.

"**Target Leverage Ratio**" has the meaning set forth in the Treasury Principles.

"**Tax**" or "**Taxes**" means (a) any non-U.S., U.S. federal, state or local net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, personal property (tangible and intangible), real property, goods and services, value added, transfer, franchise, profits, license, withholding, payroll, social security, employment, excise, severance, stamp, deed recording fee, occupation, premium, environmental or windfall profit tax, or other governmental fee, assessment or charge, in each case in the nature of a tax (including, for the avoidance of doubt, Pillar Two Tax), and (b) any interest or any penalty, addition to tax or additional amount imposed by any Governmental Authority responsible for the imposition of any such tax described in the foregoing clause (a).

"**Tax Annex**" means the Tax Matters Annex attached hereto.

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"**Term Loan**" has the meaning set forth in the Treasury Principles.

"**Test Period**" has the meaning set forth in the Treasury Principles.

"**Third Party**", with respect to any Shareholder, means any Person (other than a Permitted Transferee of such Shareholder).

"**Transfer**" means, in respect of any Share, property or other asset of the Company Group, any direct or indirect (including through the transfer of equity interests of any Person that holds, or Controls any Person that directly or indirectly holds, such Share) sale, assignment, transfer, gift, distribution or other disposition or Encumbrance thereof or of a participation therein, or other conveyance of legal or beneficial interest therein, or any short position in a security or any other action or position otherwise reducing risk related to ownership through hedging or other derivative instruments, whether voluntarily, involuntarily or by operation of Law or any agreement or commitment to do any of the foregoing; <u>provided</u> that, notwithstanding anything herein to the contrary, the acquisition or Transfer of equity interests in K-C Parent or Suzano Parent, or the issuance of new equity interests by K-C Parent, Suzano Parent or any of their respective successor or ultimate parent entities shall not constitute a Transfer hereunder.

"**Transferee**" means any Person that is a transferee of a Shareholder's interest in the Company, or part thereof.

"**Treasury Principles**" has the meaning set forth in <u>Section 4.4</u>.

"**Trigger Date**" has the meaning set forth in <u>Section 9.4(a)</u>.

"**Upper Limit**" has the meaning set forth in the Treasury Principles.

"**VAT**" means (a) any value added tax imposed in compliance with (i) the European Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112), or (ii) the Value Added Tax Act of 1994 in the United Kingdom and (b) any goods or services tax or sales tax (or similar tax)<sup>2</sup> in any jurisdiction.

"**Veto Matter**" has the meaning set forth in <u>Section 5.7</u>.

Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Interpretation</u>. In this Agreement, except to the extent otherwise provided or that the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;when a reference is made in this Agreement to a Section, Article, Exhibit, Annex or Schedule, such reference is to a Section, Article, Exhibit, Annex or Schedule of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the table of contents and headings contained in this Agreement or in any Exhibit, Schedule or Annex are for convenience of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;all words used in this Agreement will be construed to be of such gender or number as the circumstances require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the definitions contained herein are applicable to the singular as well as the plural forms of such terms;

<sup>2</sup> &nbsp;&nbsp;&nbsp;&nbsp;**Note to Seller**: To align definition with agreed definition of "VAT" in the EAPA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any capitalized terms used in any Exhibit, Schedule or Annex but not otherwise defined therein shall have the meaning as defined in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;all Exhibits, Schedules and Annexes annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;unless otherwise indicated, references herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;the word "including" and words of similar import when used in this Agreement will mean "including, without limitation", unless otherwise specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the words "hereof", "herein", "hereby", "hereto" and "hereunder" and words of similar import when used in this Agreement shall refer to the Agreement as a whole and not to any particular provision in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;the term "or" is not exclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;the word "will" shall be construed to have the same meaning and effect as the word "shall";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;the word "extent" in the phrase "to the extent" shall mean the degree to which a subject or other thing extends, and such phrase shall not simply mean "if";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;references to "day" or "days" mean calendar days unless otherwise specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;all time periods will be counted excluding the date when such period begins and including the last date when such period ends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;whenever any action must be taken hereunder on or by a day that is not a Business Day, then such action may be validly taken on or by the next day that is a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;references to a Person are also to its successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;unless otherwise indicated, "the Company Group" shall refer to each member of the Company Group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;references to sums of money are expressed in lawful currency of the United States of America, and "$" refers to U.S. dollars.

Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>General Undertakings and Agreements by the Shareholders</u>. Each Shareholder, in its capacity as a shareholder of the Company and to the extent permitted by applicable Law as such Law relates to the ownership of Shares and to the Company Group, will, and will instruct and cause each Director nominated by such Shareholder to, cause the Company Group to conduct themselves in accordance with the terms of this Agreement.

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**ARTICLE II <br>ORGANIZATION**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Name</u>. The name of the Company is [NewCo] B.V. The Business shall be conducted under such name or such other names that comply with the Law as the Board may select from time to time; <u>provided</u>, <u>however</u>, that the Business may not be conducted under any other name unless the Board approves it and in no event shall the name include a name that is an "Excluded Asset" under Section 2.2(g) of the EAPA.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Term</u>. The term of the Company shall commence on the date the notarial deed of incorporation was executed and shall continue in existence perpetually until the Company is dissolved in accordance with <u>Article X</u> and applicable Law.

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Principal Place of Business</u>. The principal place of business of the Company shall be in [●] or such other place or places in the Netherlands as the Board may determine from time to time, and the Company shall have other regional offices and operations as the Board may determine from time to time.

Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Central Management and Control</u>. The Shareholders shall, and shall cause the Company to, use their commercially reasonable efforts to ensure that the central management and control of the Company is exercised in the Netherlands and the place of effective management of the Company is the Netherlands. The Shareholders shall cause the Company to use its commercially reasonable efforts to conduct its affairs in a manner that ensures it is a resident in the Netherlands, including with respect to income Taxes.

Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Title to Company Property</u>. All property of the Company, whether real, personal or mixed, tangible or intangible, shall be deemed to be owned by the Company as an entity, and no Shareholder, individually, shall have any direct ownership interest in such property.

Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Purpose</u>. The purpose of the Company is to engage in (a) the Business and (b) any and all lawful activities in accordance with its Articles of Association which the Board deems necessary or advisable in connection with the Business, together with all business activities related or incidental thereto, including actively managing its Subsidiaries against remuneration (to the extent approved by the Board), including actively managing and providing services to its Subsidiaries in exchange for remuneration (to the extent approved by the Board). 

Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Separate Existence</u>. The Company shall conduct its business in its name and comply with all organizational formalities to maintain its separate existence, including holding regular meetings of Shareholders and maintaining its own records, books, resolutions and other entity documents.

Section 2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>No Personal Liability</u>. Except as provided by applicable Law, no Shareholder and no Director shall be personally liable for any obligations of the Company and, except as specifically provided in <u>Article IV</u>, no Shareholder shall have any obligation or be required to make any capital contribution or loan or otherwise advance any funds to the Company.

Section 2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Shares</u>. The Company shall have two classes of shares, being Common Shares and Preferred Shares. All Common Shares shall have identical rights in all respects to all other Common Shares except as otherwise specified in this Agreement. All Preferred Shares shall have identical rights in all respects to all other Preferred Shares except as otherwise specified in this Agreement. The Preferred Shares and the Common Shares shall all have identical rights, preferences and privileges in all respects except as otherwise specified in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Common Shares</u>. Each holder of Common Shares shall be entitled to one (1) vote for each Common Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferred Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Each holder of Preferred Shares shall be entitled to vote together with the holders of Common Shares as a single class on any matter on which the holders of Common Shares are entitled to vote or to consent pursuant to this Agreement or applicable Law. Each holder of Preferred Shares shall be entitled to cast one vote for each share of Common Shares that would be issuable to such holder of Preferred Shares upon the conversion of all of the Preferred Shares held by such holder on the record date for the determination of shareholders entitled to vote or consent (at the conversion rate specified in <u>Section 2.9(b)(ii)</u>) and in accordance with <u>Section 2.9(b)(ii)</u>. As long as the conversion rate specified in <u>Section 2.9(b)(ii)</u> is 1:1, the Articles of Association shall reflect that each holder of Preferred Shares shall be entitled to one (1) vote for each Preferred Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;K-C shall have the right to convert, at any time at its discretion, on a one-to-one basis, all (but not less than all) of its Preferred Shares into a number of Common Shares that is identical to the number of Preferred Shares held by K-C immediately prior to such conversion (such conversion, a "**Conversion**"); <u>provided</u> that such conversion rate shall be adjusted to reflect any stock splits, subdivision, combination, reclassification, and similar actions with respect to the Common Shares, if any, as if the Preferred Shares were converted into Common Shares immediately prior to the occurrence of such action or event. Upon Conversion, all rights with respect to such converted Preferred Share(s) shall immediately cease and terminate. The holder of such converted Preferred Share(s) will become the holder of the applicable newly issued Common Shares, which shall carry the same rights, privileges, duties, liabilities and obligations as other Common Shares in accordance with the Company's Articles of Association and this Agreement. For clarity purposes, as of the date of this Agreement, a Conversion of the Preferred Shares held by K-C would result in a number of Common Shares that is equal to forty-nine percent (49%) of the total issued and outstanding Common Shares following such conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;A Conversion will take place in accordance with the provisions of the Articles of Association pursuant to a written notice by K-C to the Company (by email shall suffice) of the irrevocable election to convert all the Preferred Shares. Upon the receipt of such irrevocable conversion request, the Company will immediately take action to effect such Conversion. To the extent necessary to achieve such Conversion, each of the parties hereto agrees to take all necessary actions and resolutions required to effect such Conversion.

Section 2.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Admission of New Shareholders</u>. New Shareholders may be admitted to the Company from time to time (x) in connection with an issuance of Shares by the Company, or (y) in connection with a Transfer of Shares, in each case, only on terms and conditions that are in accordance with this Agreement. Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;New Shareholders receiving newly issued Shares shall obtain Shares and shall participate in the profits, losses, and distributions of the Company on such terms and with such amendments to this Agreement as are unanimously approved by the Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;A Transferee of any existing Shareholder's Shares shall be admitted as a substitute Shareholder only if the Transfer to the Transferee is made in accordance with the requirements of <u>Article IX</u> (including the requirement that such Transferee becomes a party to this Agreement) and the Transferee complies with all of the terms of this Agreement applicable to it.

Section 2.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Shareholders Register</u>. The Company shall maintain a shareholders register (*aandeelhoudersregister*) (the "**Shareholders Register**"). The Shareholders Register shall set forth, at a minimum, the date as of which the Shareholders Register is effective, the then-current names,

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mailing address and contact information of the Shareholders, and the number of Common Shares or Preferred Shares, as applicable, held of record. The Board of the Company shall cause the Shareholders Register to be amended and updated to reflect the transfer of any shares in the share capital of the Company, the admission of additional Shareholders, the change of contact information of a Shareholder, the number of Shares and other information called for by the Shareholders Register, and such maintenance, amendment or supplementation, consistent with the terms of this Agreement, shall not require the approval of any Shareholder or any Supermajority Vote. The capitalization table of the Company as attached hereto as <u>Schedule I</u> provides for the name of, current mailing address and contact information of, and number of Common Shares and/or the Preferred Shares held by each of the Shareholders as of the date hereof.

Section 2.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Fiduciary Duties; Acquisition Opportunities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is not intended to, and does not, create or impose any duty (including any fiduciary duty, other than fiduciary duties which cannot be waived by Law) on any of the Covered Persons. Further, none of the Shareholders shall owe any duties of any nature whatsoever (including fiduciary duties) to the Company, the other Shareholders or any other Person as a result of this Agreement, other than fiduciary duties which cannot be waived by Law, and any liability for a breach of such waived duties is hereby waived and eliminated (to the fullest extent permitted by applicable Law). Further, the Shareholders hereby waive (to the fullest extent permitted by Law) any and all duties (including fiduciary duties) that, absent such waiver, may be implied or imposed by Law, and in doing so, recognize, acknowledge and agree that the duties and obligations of each Covered Person to one another and to the Company are only as expressly set forth in this Agreement, and all other duties (including fiduciary duties) are hereby eliminated and waived, all to the maximum extent permitted by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding <u>Section 2.12(a)</u>, in the event K-C Parent, Suzano Parent or any of their respective controlled Affiliates or any Director is offered or presented or develops or discovers an opportunity to acquire all or substantially all the equity interests or assets of a business or a brand of a Third Party (excluding, for the avoidance of doubt, any strategic alliance, joint venture or other similar partnership, which shall be exclusively governed by <u>Section 2.12(c)</u>) of the type and character that is consistent with the Business or strategy and goals of the Company Group (each, a "**Corporate Opportunity**"), irrespective of whether such Person believes that the Company would be able (financially or otherwise) or willing to pursue such Corporate Opportunity, such Person shall, prior to taking or failing to take any action that would prevent the Company Group from pursuing such Corporate Opportunity, offer to the Company the right to pursue such acquisition for the benefit of the Company. Subject to <u>Schedule III</u> and <u>Section 12.3</u>, if the Company, by vote of the Board, does not determine to pursue (or determines not to pursue) such Corporate Opportunity within twenty (20) days of its presentation to the Company, the presenting Director or Person therein shall be free to pursue such Corporate Opportunity or otherwise dispose of such Corporate Opportunity as such Person shall in its discretion determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement to the contrary (including <u>Section 2.12(a)</u>), if K-C Parent, Suzano Parent or any of their respective controlled Affiliates (in each case, solely while such Person is the ultimate parent of a Shareholder) or any Director is offered or presented or develops or discovers an opportunity to a strategic alliance, joint venture or other similar partnership that relates to the ownership of equity interests of or equity investment in any Person that is consistent with the Business or strategy and goals of the Company Group (each, a "**Strategic Alliance**"), irrespective of whether such Person believes that the Company Group would be able (financially or otherwise) or willing to pursue such Strategic Alliance, such Person shall, prior to taking or failing to take any action that would prevent the Company Group from pursuing such Strategic Alliance, offer to the Company the right to pursue such Strategic Alliance for the benefit of the Company. The K-C Directors will engage in good faith with the Suzano Directors in evaluating and discussing such Strategic Alliance (including by using commercially reasonable efforts to attend duly called meetings of the Board where the notice and agenda delivered to the Directors pursuant to <u>Section 5.3(b)</u> expressly indicates that the discussion and

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evaluation of a Strategic Alliance is on the agenda). The K-C Directors shall review and consider in good faith such Strategic Alliance, including by assigning appropriate internal resources and, if appropriate in K-C's sole discretion, external resources, to review, consider and evaluate such Strategic Alliance and provide feedback to the Suzano Directors regarding such Strategic Alliance, including whether K-C believes such Strategic Alliance is reasonably expected to be beneficial to the Company Group. If the Company, by Supermajority Vote, does determine to pursue such Strategic Alliance within twenty (20) days of its presentation to the Company, then the Shareholders shall use their respective reasonable best efforts to pursue such Strategic Alliance through the Company Group in accordance with the provisions set forth in <u>Schedule 2.12(c)</u>. If the Company does not determine to pursue (or determines not to pursue) such Strategic Alliance within twenty (20) days of its presentation to the Company because of the failure to obtain K-C's or the K-C Directors' vote or approval, as applicable, then the parties hereto agree to comply with the provisions, and shall be required to follow the procedures, set forth in <u>Schedule 2.12(c)</u>.

**ARTICLE III <br>BUSINESS PLAN AND ANNUAL BUDGET**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>2025 and 2026 Annual Budget</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;An initial estimated budget and operating plan of the Company Group for Fiscal Years ended December 31, 2025 and 2026 (the "**2025 and 2026 Annual Budget**") is attached to this Agreement as <u>Schedule 3.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement to the contrary (including <u>Section 5.7</u>), the Officers of the Company shall prepare and the CEO shall submit to the Board for approval, which approval shall require a Majority Vote, an amended 2025 and 2026 Annual Budget within ninety (90) days of the date hereof, which shall set forth, in addition to customary operating and capital budget matters, any additional expenses necessary to effectuate and complete the separation of the Business from K-C Parent as contemplated by the EAPA (such additional separation expenses, the "**Necessary Investments**"), solely to the extent such separation expenses are not to be borne exclusively by K-C Parent or its Affiliates pursuant to the terms of the EAPA or any Ancillary Agreement; <u>provided</u>, <u>however</u>, that if the projected Adjusted EBITDA, calculated by the Officers and submitted by the CEO to the Board for approval, based on the proposed amended 2025 and 2026 Annual Budget, is lower by more than ten percent (10%) than the Adjusted EBITDA, calculated by the Officers and submitted by the CEO to the Board for approval, based on the 2025 and 2026 Annual Budget set forth in <u>Schedule 3.1(a)</u>, then the approval of the proposed amended 2025 and 2026 Annual Budget shall require a Supermajority Vote. Notwithstanding the foregoing, to the extent the Company is unable to implement and effectuate all the Necessary Investments contemplated by the 2025 and 2026 Annual Budget in the applicable Fiscal Years covered thereby, such Necessary Investments (assuming (x) receipt of the required approval, if applicable, set forth in the first proviso of this <u>Section 3.1(b)</u> and (y) that such Necessary Investments are in the same amounts and for the same projects as contemplated by the 2025 and 2026 Annual Budget) shall be automatically reflected and effectuated in the Annual Budget (as defined below) for the Fiscal Year ended December 31, 2027; <u>provided</u>, <u>further</u>, that such incorporation of Necessary Investments shall be excluded from and not taken into account for purposes of calculating any deviation from the Adjusted EBITDA for the 2025 and 2026 Annual Budget set forth in <u>Schedule 3.1(a)</u> or the amended 2025 and 2026 Annual Budget.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsequent Annual Budgets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Beginning for the Fiscal Year ending December 31, 2027, and for each subsequent Fiscal Year, no later than ninety (90) days prior to the commencement of each such Fiscal Year, the Officers shall prepare and the CEO shall submit to the Board for approval, which approval shall require a Majority Vote (except as otherwise set forth below or with respect to a specific matter not previously contemplated by the then-applicable Annual Budget and Business Plan that is required to be approved by Supermajority Vote pursuant to <u>Section 5.7</u>), a draft financial and strategic business plan of

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the Company Group (the "**Business Plan**") and annual operating and capital budget of the Company Group, broken down by Fiscal Quarters (the "**Annual Budget**") for the applicable Fiscal Year (each, an "**Annual Budget and Business Plan**"). If the projected Adjusted EBITDA, calculated by the Officers and submitted by the CEO to the Board for approval, based on the proposed Annual Budget and Business Plan for the next Fiscal Year, is lower by more than ten percent (10%) than the Adjusted EBITDA, calculated by the Officers and submitted by the CEO to the Board for approval, based on the Annual Budget and Business Plan for the immediately prior Fiscal Year (as amended by the Necessary Investments (if applicable) and exogenous factors incurred during such Fiscal Year), then approval of the proposed Annual Budget and Business Plan for the next Fiscal Year shall require Supermajority Vote; <u>provided</u>, <u>however</u>, that, to the extent the matter or item that causes the deviation from such Adjusted EBITDA for the immediately prior Fiscal Year has already been approved by a Director appointed by K-C, such matter or item (in the same scope and amount, and on a substantially similar schedule, as was previously approved by such Director) shall be excluded from and not taken into account for purposes of calculating any such deviation from such Adjusted EBITDA for the immediately prior Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Shareholders shall request that the Board approve the Annual Budget and Business Plan no later than sixty (60) days prior to the commencement of each Fiscal Year. In the event the Annual Budget and Business Plan has not been validly approved by the Board pursuant to this <u>Section 3.2</u> (including if required with respect to a specific matter not previously contemplated by the then-applicable Annual Budget and Business Plan that is required to be approved by Supermajority Vote pursuant to <u>Section 5.7</u>) by the commencement of the applicable Fiscal Year, the Annual Budget and Business Plan which applied to the year immediately prior to the Fiscal Year in which no Annual Budget and Business Plan has yet been approved by the Board in accordance with this Agreement, shall apply for such Fiscal Year (as adjusted to reflect an increase of three percent (3%) in the aggregate for inflationary purposes, effective as of January 1 of such Fiscal Year and as further increased in any line item in order to permit expenditures under any contract of the Company Group that is properly authorized under this Agreement and such expenditures were not contemplated in the prior Fiscal Year's Annual Budget and Business Plan), until such time as the Board validly approves an Annual Budget and Business Plan for such Fiscal Year in accordance with this <u>Section 3.2</u>. For the avoidance of doubt, the approval by a K-C Director of any Annual Budget and Business Plan shall be deemed an approval of any matter expressly set forth in the Annual Budget or Business Plan that would otherwise require Supermajority Vote pursuant to <u>Section 5.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In connection with the preparation of the Company's Annual Budget and Business Plan, the Officers shall consult with K-C and its Representatives in the same manner and with the same frequency as it consults with Suzano and its Representatives.

**ARTICLE IV <br>FUNDING; CAPITAL CALLS**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>No Funding Obligation</u>. Except as specifically provided in this <u>Article IV</u>, no Shareholder shall be required to make any capital contributions, make any loan or provide any credit support to the Company, and this Agreement shall not be construed or deemed and is not intended to constitute a guarantee of the obligations or liabilities of the Company or a maintenance agreement in respect of the Company.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Funding and Capital Calls</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Shareholders acknowledge that it is the intention of the Shareholders that the Company Group shall fund its ongoing operations from its cash from operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to K-C's approval rights set forth in <u>Schedule III</u> and the Treasury Principles, to the extent that the Board determines that additional funding beyond that available from its cash from operations is necessary for the operations of the Company Group (including any Approved

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Funding Requirements), such funding may be obtained through any one or a combination of the following sources at the election of the Board: (i) through external borrowing from financial sources on arms' length terms, (ii) through Emergency Loans pursuant to <u>Section 4.2(d)</u>, and (iii) through contributions in exchange for new equity, including by the Shareholders in proportion to each Shareholder's respective Percentage Interest in the Company in accordance with <u>Section 4.2(c)</u> and subject to K-C's approval rights set forth in <u>Schedule III</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Board may, with a Supermajority Vote, determine that additional Capital Contributions are necessary for the conduct of the Business. In that event, each Shareholder shall have the right (but not obligation) to participate in such additional capital contributions in accordance with its Percentage Interest. In the event that such funding is made in the form of additional Capital Contribution (a "**Capital Call**") from the Shareholders, the Shareholders satisfying such Capital Call shall receive additional share(s) of Common Shares or Preferred Shares, as applicable, issued in accordance with formalities and requirements under applicable Law at the same implied price per Share as that paid for Suzano's initial interest in the Company in connection with the transactions contemplated by the EAPA. The Company shall notify each Shareholder of the Capital Contribution to be made pursuant to this <u>Section 4.2</u> by delivering a written notice to each Shareholder in accordance with <u>Section 13.4</u> specifying (i) the aggregate amount of the Capital Call required at such time and (ii) the amount of the Capital Call to be provided by such Shareholder which amount shall be in accordance with such Shareholder's Percentage Interest in the Company. To the extent that any Shareholder elects not to participate in (or do not elect to participate in a full Percentage Interest allocation of) a Capital Call, the other Shareholders that do elect to participate in full in such Capital Call shall have the right (but not the obligation) to increase their additional Capital Contributions pro rata in accordance with their respective Percentage Interests (as between those Shareholders who are participating in full) such that the total of the additional Capital Contribution equals the total amount of the Capital Call and, for the avoidance of doubt, no penalty shall be incurred by a non-funding Shareholder. Unless otherwise determined by the Board, by a Supermajority Vote, the funding of any such additional Capital Call shall be made within ten (10) Business Days following a Shareholder's receipt of a Capital Call notice. For the avoidance of doubt, Shares shall be issued to the Shareholders pursuant to this <u>Section 4.2(c)</u> on the same date on which such Shareholder makes a Capital Contribution to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement (including <u>Section 5.7</u>), in the event of an Emergency, and in the reasonable good faith determination of the Board that it would not be practical or feasible under the circumstances to obtain debt financing from a Third Party, if the Company and its Subsidiaries do not have sufficient Available Cash to satisfy the payment obligations of such Emergency, then K-C and Suzano shall have the right, but not the obligation and without the need for the consent or approval of any other Person, to fund their Percentage Interest portion of the funds that are reasonably necessary to respond to or remedy the Emergency (which total amount of funds shall be such amount reasonably necessary to respond to or remedy such Emergency as reasonably determined by the Board) (such total amount of funds, the "**Emergency Required Funds**"), through the issuance of a loan to the Company (an "**Emergency Loan**"), which loan shall comply with the terms set forth in <u>Section 4.2(d)(i)</u> below. If either K-C or Suzano does not elect to fund its full Percentage Interest of an Emergency Loan on the date on which any Emergency Loan is due as specified by the Board, then the Board shall permit the other Shareholder who shall have the right, but not the obligation, to fund 100% of the Emergency Required Funds. The Company shall, or shall cause its applicable Subsidiary, to use the proceeds from any such loan solely to respond to or remedy such Emergency (and in no event to pay any distributions to Shareholders pursuant to the Distribution Policy set forth in <u>Section 7.1</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Emergency Loan (i) shall be unsecured and the Shareholder (or its Affiliate) providing such Emergency Loan shall not be granted any Encumbrance on any assets or equity interests of the Company or any of its Subsidiaries, (ii) shall bear interest at an interest rate equivalent to such Shareholder's cost of borrowing from a third party lender acting on an arm's length basis at the time such Emergency Loan is issued, and in any event, at no greater than the maximum interest rate permitted by applicable Law, (iii) shall have a maturity date of not more than six (6) years, as reasonably determined

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by the Board taking into account, among other things, the Emergency and the amount of Emergency Required Funds; <u>provided</u> that the Emergency Loan shall require the Company Group to prepay (without penalty) in full such Emergency Loan prior to the payment of any distributions to Shareholders pursuant to the Distribution Policy set forth in <u>Section 7.1</u>, (iv) may, to the extent permitted by applicable Law and the terms of any existing credit facility of the Company or any of its Subsidiaries, require quarterly payments of interest and amortization of principal over the life of the Emergency Loan; <u>provided</u> that such payments shall only be required to be made in cash to the extent the Company Group has Available Cash which would otherwise be distributable to the Shareholders pursuant to the Distribution Policy set forth in <u>Section 7.1</u> (and, to the extent such payments are not permitted to be made in cash (including because there is not sufficient Available Cash), such payments (or portion thereof) shall be made in-kind by adding the amounts thereof to the outstanding principal amount of the Emergency Loan), (v) shall provide for a "gross up" with respect to any Taxes required to be deducted or withheld in respect of interest, so that the Shareholder (or its Affiliate) providing the Emergency Loan receives the same net amount of payments (taking into account the deducted or withheld taxes) as it would have received if no deduction or withholding of taxes were required and (vi) shall, subject to <u>Section 4.2(d)(iii)</u>, otherwise be on such other terms and conditions no more favorable to the Shareholder providing the Emergency Loan than such terms and conditions that the Company or its applicable Subsidiary could obtain from a third-party lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;No Shareholder (or any of its Affiliates) making an Emergency Loan to the Company or any of its Subsidiaries pursuant to <u>Section 4.2(d)</u> shall, in its capacity as a lender to the Company or any of its Subsidiary in respect of such Emergency Loan, (i) institute or consent to the institution of, or otherwise seek or cause, a Bankruptcy Event of the Company or any of its Subsidiaries or (ii) accelerate or exercise similar remedial actions with respect to such loan; <u>provided</u>, <u>however</u>, that the Shareholder making such Emergency Loan (or its Affiliate(s), as the case may be) shall be permitted to accelerate or exercise any other remedial actions in respect of such Emergency Loan in the event the Company or any of its Subsidiaries or any of their respective creditors, receivers, custodians or trustees has independently instituted, sought or otherwise caused a Bankruptcy Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Any Shareholder (or any Affiliate of a Shareholder) making an Emergency Loan to the Company or any of its Subsidiaries pursuant to <u>Section 4.2(d)</u> shall, to the extent legally permitted and practicable under the circumstances, use commercially reasonable efforts to seek to structure such Emergency Loan so as to minimize the imposition of any Taxes with respect to which a "gross up" would be required under <u>Section 4.2(d)</u>, including, to the extent legally permitted and practicable under the circumstances, by (x) extending the Emergency Loan through a "local" Affiliate or an Affiliate located in a jurisdiction with an applicable income tax treaty and (y) providing the Company or any of its Subsidiaries any applicable tax forms, withholding certificates or any other information reasonably required to reduce or eliminate any such Taxes. The "gross up" set forth in <u>Section 4.2(d)</u> shall not apply to any Taxes measured by, or imposed upon, net income (including any franchise taxes imposed in lieu thereof).

Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Preemptive Rights</u>. Each Shareholder shall have the right (a "**Preemptive Right**"), but not the obligation, to participate in any issuance of additional Shares in the Company pro rata in accordance with such Shareholder's Percentage Interest in the Company, for the same price and on the same terms as such issuance of additional Shares. The Company shall provide written notice (the "**Issuance Notice**") to each Shareholder of any proposed issuance of new Shares in the Company. The Issuance Notice shall include the number of Shares to be issued, the price per Share, the terms of issuance, and the deadline for exercising the Preemptive Rights. Each Shareholder shall have a period of twenty (20) days from the date of the Issuance Notice (the "**Exercise Period**") to notify the Company in writing of its intention to exercise its Preemptive Rights and to specify the number of Shares it wishes to acquire, up to its pro rata share. Each Shareholder electing to exercise its Preemptive Rights shall deliver the full purchase price for the Shares it has elected to acquire to the Company within the Exercise Period, or such other period as may be specified in the Issuance Notice. If any Shareholder fails to exercise its Preemptive Rights in full within the Exercise Period, the remaining Shares shall be offered to the other Shareholders who have exercised their Preemptive Rights in full, on a pro rata basis

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or as otherwise agreed among them. The Company shall provide written notice to such Shareholders of the remaining Shares and the additional period (not exceeding fifteen (15) days) within which they may elect to acquire such remaining Shares. Any portion of such Shares that is not acquired by the Shareholders pursuant to this <u>Section 4.2</u>(d) it may be offered by the Company to a third party purchaser approved by the Board, on terms no less favorable to the Company than those offered to the Shareholders, subject to the execution and delivery of a joinder agreement in the form attached hereto as <u>Exhibit A</u>.

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Target Leverage Ratio</u>. The Company Group shall be managed so as to comply with the treasury principles set forth on <u>Schedule X</u> attached hereto (the "**Treasury Principles**") and the Shareholders intend to cooperate in good faith to comply with such Treasury Principles.

**ARTICLE V <br>BOARD; DIRECTORS**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Management of the Company</u>. Subject to the provisions of this Agreement, the Articles of Association and applicable Laws, the management of the Company shall be vested exclusively in the Company's board of directors (the "**Board**"), which may from time to time by resolution delegate authority to others to act on behalf of the Company. Subject to the Board's duties and obligations under applicable Law, the Board shall exercise its duties in accordance with the instructions of the General Meeting and shall act in accordance with the provisions of this Agreement and the Articles of Association. Subject to <u>Section 5.7</u>, any two directors acting jointly (as long as one of them is a Suzano Director) are authorized to represent the Company. Except as otherwise agreed by the Shareholders, no Shareholder shall have any right or authority to take any action on behalf of the Company or to bind or commit the Company with respect to third parties or otherwise.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Board</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Shareholder shall appoint one or more individuals to the Board (each of such individuals, a "**Director**"). The total number of Directors shall be five (5), of whom (i) three (3) shall be designated by Suzano (the "**Suzano Directors**") and (ii) two (2) shall be designated by K-C (the "**K-C Directors**"). The initial Directors as of the date of this Agreement shall be those Persons set forth in <u>Schedule II</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Director shall serve indefinitely, until such Director is removed by the Shareholder that designated such Director pursuant to this <u>Section 5.2</u>, or otherwise until the earlier of such Director's resignation or death. A Shareholder may at any time remove any Director designated by such Shareholder pursuant to this <u>Section 5.2</u>, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event a vacancy occurs on the Board as a result of the retirement, removal, resignation or death of a Director designated pursuant to this <u>Section 5.2</u>, such vacancy shall be filled by a person designated by the Shareholder, the removal, resignation or death of whose designee or nominee created the vacancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Officers, directors, employees or other representatives (including the accountants, attorneys and/or financial advisors) of a Shareholder entitled to designate a Director shall be permitted to attend Board meetings as non-voting observers upon invitation by the Chair or any Director (after 24 hours prior written notice by such Director to the Chair); <u>provided</u> that no more than three (3) such individuals shall be permitted to attend each Board meeting (unless otherwise agreed by a K-C Director and a Suzano Director, acting jointly).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Any Director may resign at any time by notifying the Company by the delivery of a written notice to the Chair. Such resignation shall be effective upon receipt of such notice by the Chair,

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or at such later time as is therein specified, and unless otherwise specified the acceptance of such resignation shall not be necessary to make such resignation effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Each Shareholder agrees to take all necessary or desirable actions, including to vote, or to act by written consent with respect to, all their respective Shares, to carry out and effect the Board composition (or any changes thereto) contemplated by this <u>Article V</u>, and to cause each Shareholder's nominees to be duly elected to or removed from the Board, as applicable.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Board Meetings; Quorum</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All meetings of the Board shall take place at a location in the Netherlands designated by the Board from time to time (or such other place as may be agreed by the Board). Directors shall in principle attend regular Board meetings in person (unless otherwise agreed to be held by means of a tele- or videoconference or similar communications equipment by the Board). If a Director is unable to attend such Board meeting in person, such Director may grant a proxy to one of the other Directors appointed by the same Shareholder who will attend the Board meeting in person. If none of the Directors appointed by the same Shareholder are available to attend such Board meeting in person, the Directors appointed by such Shareholder may participate in such meeting of the Board by means of a tele- or videoconference or similar communications equipment through which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute attendance and presence in person at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Regular meetings of the Board shall be held at least quarterly or at such more frequent times as may be determined from time to time by the Chair. A special meeting of the Board may be called at any time by the Chair or any other Director. The Directors shall use commercially reasonable efforts to agree upon mutually convenient dates for regular and special meetings of the Board. Notice (which may be in writing or by any electronic, oral or telephonic means) must be given by the Chair to all of the Directors at least seven (7) Business Days in advance of any meeting of the Board unless waived by all of the Directors. A Director may waive notice of any meeting in writing or by email communication, or if such Director is present at such meeting, except if such Director attends the meeting for the express purpose of objecting at the beginning thereof to the transaction of any business because the meeting is not properly called or convened. A notice so given must include an agenda specifying items for decision, together with all reasonably available supporting materials or documents in respect of such matters. Any Director that wishes to have any additional matter discussed at any such meeting, shall give the Chair and each other Director not later than four (4) Business Days prior to any such meeting, notice of each matter it so wishes to discuss. Emergency meetings of the Board may be held at the offices of the Company (or such other place as shall be agreed by the Board) upon five (5) days' telephone notice or such shorter notice period as may be reasonable given the urgency of matter to be discussed during the emergency meeting with a minimum notice period of twenty-four (24) hours, specifying in reasonable detail the nature of such emergency (to be confirmed by email communication) by any Director or the Chair.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Directors entitled to be present at a meeting of the Board shall be deemed to be present for all purposes if a Director is able (directly or via telephone or other generally accepted communication platforms that allow such Director to connect with video, audio and phone communication) to speak to and be heard by all those present or deemed to be present simultaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The presence of that number of Directors representing at least a majority of the Board, including at least one (1) K-C Director and one (1) Suzano Director, shall constitute a quorum. A quorum must exist at all times of a meeting, including the reconvening of any meeting that has been adjourned, for any action taken at such meeting to be valid; <u>provided</u> that, if no K-C Director attends a Board meeting duly noticed to the Directors, such Board meeting shall be adjourned to a date that is not less than five (5) Business Days after the date of the original Board meeting, and such adjourned Board meeting shall not require the attendance of a K-C Director to satisfy the quorum requirements herein;

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<u>provided</u> that nothing in this <u>Section 5.3(d)</u> shall result in a waiver of the requirement for Supermajority Vote for any Veto Matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Each Director shall be entitled to cast one (1) vote; <u>provided</u> that, for all purposes of this Agreement with respect to Directors designated by a Shareholder, (i) a Director who is designated by a certain Shareholder and is present at a meeting of the Board shall have the right to cast the vote for the other Directors appointed by the same Shareholder if such other Directors are not otherwise present and provided a proxy has been granted to the attending Director, each time for a particular Board meeting, and (ii) if one or more vacancies remain as a result of a Shareholder's failure to designate all Directors to which such Shareholder is entitled, the most senior Director designated by such Shareholder shall be entitled to cast such number of additional votes as the number of vacancies that exist for the Directors to be designated by such Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 5.7</u>, all matters submitted for approval by, or to a vote of, the Board shall be determined by Majority Vote.

Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Resolutions in Writing</u>. Any resolution or action required or permitted to be taken by the General Meeting or the Board, either at a meeting or otherwise, may be taken in writing outside a meeting of the General Meeting or the Board, as the case may be, signed by, (a) in the case of actions taken by the General Meeting, Suzano and K-C and provided that all Shareholders have agreed with this method of decision-making and the Directors must be given the opportunity to advise on the items to be resolved upon prior to the adoption thereof and (b) in the case of actions taken by the Board, all of the Directors then appointed to the Board and provided that all the Directors have agreed with this method of decision-making. Any such resolution or action to be taken in writing shall be circulated to all Shareholders or Directors, as applicable, to review at least four (4) Business Days in advance of execution.

Section 5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Minutes</u>. The decisions and resolutions of the Directors and the Board shall be reported in minutes, which shall state the date, time and place of the meeting (or the date of the written consent in lieu of meeting), the Directors present at the meeting, the resolutions put to a vote (or the subject of a written consent) and the results of such voting (or written consent). The minutes shall be entered in a minute book kept at the principal office of the Company and a copy of the minutes shall be provided to each Director.

Section 5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation</u>. Unless otherwise expressly provided by resolution adopted by the General Meeting, none of the Directors shall, solely in such capacity, receive any stated remuneration or compensation for such Director's services. The Company shall reimburse each Director for any reasonable and documented out-of-pocket expenses paid by such Director on account of such Director's attendance at any meeting. Subject to the other terms of this Agreement, a Director may also be paid for serving the Company, its Affiliates or its Subsidiaries in other capacities (*e.g.*, as an employee).

Section 5.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Veto Matters; Deadlock</u>. Notwithstanding anything to the contrary in this Agreement (other than <u>Section 3.1(b)</u>, <u>Section 3.2</u>, <u>Section 4.2(d)</u>, <u>Section 9.4</u> and <u>Schedule 2.12(c)</u>), the Board or the General Meeting shall not adopt any resolution or take action by written consent with respect to any of the actions set forth on <u>Schedule III</u> attached hereto (each, a "**Veto Matter**"), as may be amended by Supermajority Vote, and the Company shall not take, and the Company shall cause its Subsidiaries not to take, any action with respect to a Veto Matter, unless the consent of the Board or the General Meeting (as applicable) has been obtained with respect to such Veto Matter and such consent includes the written approval of, or affirmative vote by, each of Suzano and K-C in their capacity as Shareholder (in the case of a Veto Matter decided by a General Meeting or via written resolution of the General Meeting pursuant to <u>Section 5.4</u>) or each of a Suzano Director and a K-C Director in their capacity as a Director (in the case of a Veto Matter decided by the Board in a meeting or via written resolution of the Board pursuant to <u>Section 5.4</u>) ("**Supermajority Vote**"). If a Veto Matter is validly

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decided upon by the Board (in case of a Veto Matter decided by the Boards) or the General Meeting (in case of a Veto Matter decided by the General Meeting) in accordance with this <u>Section 5.7</u>, all parties hereto shall use all powers vested in it to give full effect to such resolution or action (as the case may be), which shall include adopting the relevant resolutions and executing the relevant (notarial) deeds necessary under Dutch law (if any). A deadlock shall be deemed to have occurred if a proposal with respect to a Supermajority Vote or Veto Matter is not approved in accordance with this <u>Section 5.7</u> at two (2) consecutive duly convened General Meetings or meetings of the Board (as applicable). In the event of a deadlock with respect to a Veto Matter to be decided by the Board, the Veto Matter shall be escalated to the General Meeting for resolution. In the event of a deadlock in a General Meeting, either K-C or Suzano may, at any time within twenty (20) days after the date on which a deadlock occurs, deliver written notice to the other Shareholder and to the Company stating that in its opinion a deadlock has occurred with respect to such Supermajority Vote or Veto Matter and identifying the matter giving rise to the deadlock (a "**Deadlock Notice**"), and upon receipt of such Deadlock Notice, K-C and Suzano shall be required to follow the procedures set forth in <u>clauses (b)</u> and <u>(c)</u> of <u>Section 12.4</u> for resolution of Disputes.

Section 5.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Board Approval Matters</u>. Subject to the other limitations set forth in this Agreement and by applicable Law, including <u>Section 5.7</u>, the Board shall have authority with respect to all aspects of the affairs and operations of the Company. Without limitation of the foregoing, the Board shall not adopt any resolution with respect to the action set forth on <u>Schedule IV</u> attached hereto, unless such action is first presented at one meeting of the Board (it being understood and agreed by the parties hereto that the action set forth on <u>Schedule IV</u> shall in no event be deemed a Veto Matter or require Supermajority Vote).

Section 5.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Board Committees</u>. The Board shall be permitted to establish committees as it deems appropriate. Each committee shall consist of three (3) Directors, two (2) of which shall be designated by Suzano and one (1) of which shall be designated by K-C, with responsibilities of each such committee to be established by the Board in the committee charters. The committees shall be advisory in nature and may only make recommendations to the Board. Any such recommendations or other actions taken by such committees shall not be binding on the Board and the Board shall have no obligation to implement, or cause the implementation of, such recommendations.

Section 5.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Chair</u>. The chair of the Board ("**Chair**") shall be one (1) of the Suzano Directors designated by Suzano in its sole discretion and shall preside at all meetings of the Board and of the Shareholders. The Chair shall have the right to call any meetings of the Board (including when requested by another Director) and shall be responsible for organizing the agenda of such meetings and any meetings of the Shareholders. In addition, the Chair shall have such powers and perform such other duties as from time to time may be assigned to him or her by this Agreement, the Articles of Association or by the Board.

Section 5.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Officers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Board may, from time to time, delegate to one or more Officers such authority and duties as the Board may deem advisable and grant an unlimited or limited power of attorney to represent and bind the Company, and revoke such delegations and powers of attorney. The Officers of the Company shall include a CEO, a CFO, a Chief Operating Officer (the "**COO**"), and a Chief Compliance Officer (the "**CCO**" and, collectively with the CEO, the CFO and the COO, the "**Senior Officers**"). The Board shall be entitled to appoint additional Officers as it may deem advisable from time to time and any replacements thereof. The Officers shall be authorized to represent the Company within the scope of their power of attorney, under the direction of and, at all times, subject to the authority and supervision of the Board. The Board hereby delegates the authority and duties to each of the Senior Officers of the Company, by adoption of a written resolution of Board, substantially in the form as attached hereto as <u>Schedule VIII</u>, pursuant to which such powers of attorney are granted to the individuals set forth therein. Notwithstanding the foregoing, prior to the Board making any appointment of the CEO and/or the CFO (other than the Initial CEO and Initial CFO, which, for the avoidance of doubt, shall be appointed

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pursuant to the specified procedures set forth below), Suzano shall (i) first consult with K-C in good faith regarding the selection of the CEO and/or CFO, as applicable, and consider in good faith any candidates for the CEO and/or CFO position suggested by K-C that satisfy, in K-C's reasonable discretion, the Minimum Qualification Requirements and (ii) following such consultation with K-C, deliver to K-C a list of three (3) candidates selected by Suzano for each of the CEO and/or CFO positions that satisfy, in Suzano's reasonable discretion, the Minimum Qualification Requirements (the "**Proposed Candidate List**"). For a period of ten (10) Business Days following the delivery by Suzano of the Proposed Candidate List and prior to the Board making any appointment of the CEO and/or the CFO, K-C shall be permitted to reject one candidate for each of the CEO and/or CFO positions from the Proposed Candidate List by delivering written notice to Suzano; <u>provided</u>, that if K-C shall not deliver such written notice to Suzano within such ten (10)-Business Day period, then such rejection right shall be deemed irrevocably waived by K-C for all purposes of this Agreement. As of the date of this Agreement, the Board shall appoint those Persons set forth in <u>Schedule II</u> as the initial CEO (the "**Initial CEO**") and initial CFO (the "**Initial CFO**") by adoption of a written resolution of Board, substantially in the form as attached hereto as <u>Schedule VIII</u>, pursuant to which the powers of attorney are granted to the Initial CEO and the Initial CFO set forth therein. The Initial CEO shall propose to the Board the identity of the initial COO and initial CCO within sixty (60) days after the date of this Agreement, and the Board shall consider in good faith the Senior Officers proposed by the Initial CEO when appointing each Senior Officer. The powers of attorney to be granted to the COO and CCO are attached hereto on <u>Schedule VIII</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the event of any vacancy in the position of the CEO, the Board will delegate the authority and duties initially delegated to the CEO to the CFO until another CEO is validly appointed in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Officers shall be entitled to receive for their services to the Company such compensation as may be determined by the Board from time to time, and such compensation shall be paid by the Company. The Officers shall at all times be subject to the supervision and control of the Board and shall conform to policies and programs established by the Board, and the scope of the Officers' authority shall be limited to such policies and programs. The acts of the Officers shall bind the Company when within the scope of the powers of attorney granted to such Officers. The Officers shall keep the Board informed as to all matters of concern to the Company Group.

Section 5.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiaries</u>. Subject to the requirements of any applicable Law, the board of directors or similar governing body of any Subsidiary of the Company shall, unless otherwise determined by the Board, be comprised of employees of the Company or its Subsidiaries; <u>provided</u> that the board of directors or similar governing body of such Subsidiary shall not take any action that would require Supermajority Vote without first obtaining such approval; <u>provided</u>, <u>further</u>, that local country tax "substance" and "residence" requirements will be considered in the composition of any such board of directors or similar governing body.

**ARTICLE VI <br>GENERAL MEETING**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual General Meeting</u>. The annual General Meeting must be held annually within six (6) months of the end of each Fiscal Year. Other General Meetings will be held as often as a Shareholder, the Chair or the Board deems necessary (in each case in accordance with this Agreement and the Articles of Association). At least seven (7) Business Days' prior written notice of each meeting of the Shareholders, including a description of the matters to be discussed thereat (a "**Shareholder Meeting Notice**"), shall be delivered to each Shareholder unless such notice is unanimously waived by all the Shareholders; <u>provided</u>, <u>however</u>, that in the event that no Shareholder Meeting Notice is delivered, a meeting of the Shareholders shall be validly held if all issued and outstanding Shares are represented thereat. Each Shareholder agrees to use commercially reasonable efforts to attend any meeting of the Shareholders with respect to which a Shareholder Meeting Notice has been duly delivered in accordance with this <u>Section 6.1</u>. Notwithstanding the foregoing, any action

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required or permitted to be taken at any meeting of the Shareholders may be taken without a meeting to the extent permitted by the Articles of Association and applicable Law, without notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of all of the issued and outstanding Shares.

Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting Rights</u>. The holders of Common Shares and Preferred Shares shall vote on matters presented at the General Meeting as a single class in accordance with <u>Section 2.9(b)(i)</u>. Unless otherwise provided in this Agreement, the Articles of Association or prescribed by mandatory Dutch law, all resolutions of the General Meeting (including those at any adjourned meeting, if applicable) require a simple majority of the votes cast on an As-Converted Basis by the Shareholders present or represented at the meeting. For any General Meeting, the presence in person or by proxy of Shareholders owning more than sixty percent (60%) of the issued share capital of the Company shall constitute a quorum for the transaction of any business. If a quorum is not present within half an hour from the time appointed for holding the meeting, the meeting shall be adjourned to the same time and place eight (8) days later and the Shareholders present in person or by proxy at the adjourned meeting shall form a quorum for the transaction of any business.

**ARTICLE VII <br>DISTRIBUTIONS**

Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions</u>. Subject to this <u>Section 7.1</u>, <u>Section 7.2</u> and the Treasury Principles, distributions on Shares shall be made in accordance with the following distribution policy of the Company (the "**Distribution Policy**"): (a) from the date hereof until the fifth anniversary hereof, when and as determined and approved by the Board but at least once within fifteen (15) Business Days after the end of the Fiscal Quarter ending June 30 and the Fiscal Quarter ending December 31, Available Cash shall be distributed to the Shareholders proportionally in accordance with their respective Shares on an As-Converted Basis; <u>provided</u>, <u>however</u>, that for purposes of the Company's initial distribution pursuant to the foregoing <u>clause (a)</u> for the first Fiscal Quarter ending June 30 or ending December 31, as the case may be, after the date of this Agreement, <u>clause (b)</u> of the definition of Available Cash shall be equal to the Minimum Cash (as defined in the EAPA), and (b) beginning after the fifth anniversary hereof and except during any EBITDA Insufficiency Delay Period, when and as determined and approved by the Board but at least once within fifteen (15) Business Days after the end of the Fiscal Quarter ending June 30 and the Fiscal Quarter ending December 31, (i) the first 20% of the Available Cash shall be distributed to the Shareholders holding Preferred Shares proportionally in accordance with their respective Preferred Shares and (ii) the remaining 80% of Available Cash shall be distributed to all the Shareholders proportionally in accordance with their respective Shares on an As-Converted Basis. The Company shall pay to the Shareholders the distributions of Available Cash payable pursuant to this <u>Section 7.1</u> as promptly as practicable and in no event later than thirty (30) days following the resolution of the General Meeting. Subject to <u>Section 7.2</u> and the Treasury Principles, any distributions are subject to approval of the Board in accordance with Article 2:216 of the Dutch Civil Code, and must be otherwise permitted under applicable Law, and subject always to the Company or its Subsidiaries maintaining any amount as determined by the General Meeting with Supermajority Vote. [Notwithstanding the forgoing, with respect to each distribution of Available Cash payable pursuant to this <u>Section 7.1</u>, an amount equal to the KC SAP Excess shall be deducted from the amounts that would have been distributed to Suzano in respect of its Shares and shall instead be paid to K-C.]<sup>3</sup>

Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Distributions</u>. Notwithstanding anything in this Agreement to the contrary, no distribution shall be made (a) in violation of applicable Law, (b) in violation of any applicable covenant, obligation or other agreement of the Company Group set forth in any credit facility, loan agreement, security agreement, mortgage, debt instrument or similar agreement or obligation to which any member of the Company Group is a party or by which it is bound or to which its assets are

<sup>3</sup> &nbsp;&nbsp;&nbsp;&nbsp;**Note to Draft:** The parties will discuss in good faith after signing the bracketed language to agree on a structure in which the KC SAP Excess is paid to K-C in the most tax-efficient manner.

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subject, or (c) to the extent any Emergency Loan is outstanding, until such Emergency Loan is repaid in full by the Company Group, in the case of <u>clauses (b)</u> and <u>(c)</u>, that has been entered into in compliance with the terms of this Agreement.

Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. The Company shall withhold from any distribution otherwise payable to any Shareholder and remit to the applicable Governmental Authority any Taxes that are required to be withheld by applicable Law with respect to such Shareholder, as reasonably determined by the Board. Taxes withheld from any distribution otherwise payable to any Shareholder pursuant to the preceding sentence, or Taxes withheld from any amounts directly or indirectly payable to the Company or any of its Subsidiaries that are specifically attributable to any Shareholder (as reasonably determined by the Board), shall in each case be treated for purposes of this Agreement as a distribution to the applicable Shareholder. To the extent that the cumulative amount of Taxes allocable to a Shareholder for any period pursuant to this <u>Section 7.3</u> exceeds the distributions to which such Shareholder is entitled for such period, then the applicable Shareholder shall promptly reimburse the Company for such excess. Each Shareholder shall indemnify the Company for any Taxes allocable to such Shareholder pursuant to this <u>Section 7.3</u>. Such obligation to indemnify the Company shall survive the termination, dissolution, liquidation and winding up of the Company, and for purposes of this <u>Section 7.3</u>, the Company shall be treated as continuing in existence. The Company will use, and cause its Subsidiaries to use, commercially reasonable efforts to assist the Shareholders in obtaining any available reduced rate of, exemption from, or refund of Taxes pursuant to any applicable Tax treaty or other applicable law (including by obtaining a valid certificate from the applicable Governmental Authority prescribing a reduced rate of withholding). Upon request from any Shareholder in respect of which the Company or any of its Subsidiaries has withheld or paid Taxes in accordance with this <u>Section 7.3</u>, the Company shall provide, within ten (10) days of such request, copies of all valid receipts, certificates or other documentation evidencing that such withholding was remitted to the applicable Governmental Authority.

**ARTICLE VIII <br>BOOKS AND RECORDS; FINANCIAL STATEMENTS**

Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Books and Records; Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At all times during the continuance of the Company, the Company shall (i) prepare and maintain separate books of account for the Company that shall show a true and accurate record of all costs and expenses incurred, all charges made, all credits made and received and all income derived in connection with the operation of the Business (including by its Subsidiaries), in each case, in accordance with IFRS and GAAP consistently applied, and, to the extent inconsistent therewith, in accordance with this Agreement and (ii) devise and maintain a system of internal controls over financial reporting in accordance with the COSO Internal Control Framework that provides reasonable assurances that: (A) transactions that are material to the Company or the Business (individually or in the aggregate) are executed in accordance with management's general or specific authorization; (B) transactions that are material to the Company or the Business (individually or in the aggregate) are recorded as necessary: (x) to permit preparation of financial statements in conformity with IFRS and GAAP or any other criteria applicable to such statements and (y) to maintain accountability for assets. Such books of account shall at all times be maintained at the principal place of business of the Company and upon reasonable request in writing and reasonable prior notice shall be open to inspection and examination at reasonable times by each Shareholder and its duly authorized representatives for any purpose reasonably related to such Shareholder's interest in the Company (<u>provided</u> that any such representative, if applicable, shall execute a confidentiality agreement reasonably satisfactory to the Company prior to any such inspection and examination). The books of account and the records of the Company shall be examined by and reported upon as of the end of each Fiscal Year by an internationally recognized U.S.-based "Big 4" firm of independent certified public accountants that shall be selected by the Board (the "**Auditor**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The following financial information (excluding any periods prior to January 1, [2025]), prepared in accordance with GAAP and IFRS, shall be provided by electronic means or otherwise by the Company to each Shareholder at the times hereinafter set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;As soon as available and in any event within thirty (30) days after the close of each Fiscal Year, the audited consolidated financial statements and accompanying footnote disclosures of the Company and its Subsidiaries, examined by and certified to by the Auditors, including: (A) the audited consolidated balance sheet of the Company and its Subsidiaries as of the close of such Fiscal Year, (B) an audited consolidated statement of income of the Company and its Subsidiaries for such Fiscal Year (including a detailed income statement and statement of comprehensive income); and (C) an audited consolidated statement of the Company and its Subsidiaries' cash flows for such Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;As soon as available and in any event within ten (10) Business Days after the end of each Fiscal Quarter (A) unaudited consolidated financial statements (including a balance sheet and statements of income and cash flows for such Fiscal Quarter) of the Company and its Subsidiaries as of the end of such three-month period, consolidated statements of income of the Company and its Subsidiaries for such three (3)-month period (including a detailed income statement and statement of comprehensive income), in each case, unaudited and certified by the Chief Financial Officer or Treasurer of the Company, which unaudited consolidated financial statements may be subject to normal year-end adjustments and need not contain footnote disclosures required by IFRS or GAAP and (B) projected quarterly income statements for the current year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;As soon as available and (A) in any event within four (4) Business Days after the end of each calendar month unaudited consolidated management accounts (including a balance sheet and cash flows) and (B) in any event within three (3) Business Days after the end of each calendar month, unaudited consolidated statements of income, in each case, reasonably reflecting the financial affairs of the Company and its Subsidiaries for such calendar month, which monthly management accounts may be subject to normal year-end adjustments and need not contain footnote disclosures required by IFRS or GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall use its reasonable best efforts to prepare or reasonably assist each Shareholder with preparing, or use its reasonable best efforts to cause to be prepared and provided, in a reasonably timely fashion upon reasonable prior written request by such Shareholder any (i) financial information (including the information described in <u>Section 8.1(b)</u> or other data relating to the Company and its Subsidiaries) and (ii) any other relevant information or data in each case, to the extent reasonably necessary, as reasonably determined in good faith by such Shareholder, for such Shareholder to (A) comply with GAAP, IFRS or its obligations under applicable Law or the rules and regulations of any securities exchange or "self regulatory organization" as defined in Section 3(a)(26) of the U.S. Securities Exchange Act of 1934 ("**SRO**") (including reporting, filing and accounting obligations that may arise under applicable Law or the rules and regulations of any SRO in the course of such Shareholder's business and financing activities) or (B) apply the equity method of accounting in accordance with GAAP and applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;From time to time, with reasonable promptness, the Company shall deliver to each Shareholder such other available information and financial data concerning the Company's and its Subsidiaries' condition and operations (financial or otherwise) as such Shareholder may reasonably request (taking into account applicable Law and any relevant privileges or binding confidentiality requirements), including to the extent available information reasonably necessary to assess the carrying value of such Shareholder's investment (including financial forecasts, market data and updates on significant or legal developments); <u>provided</u> that such access shall only be upon reasonable advance notice in writing, during normal business hours and in such a manner as to not unreasonably interfere

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with the normal operation of the business of the Company Group. In providing any such requested information and financial data, the Company shall deliver such information in its possession to the requesting Shareholder and all other Shareholders substantially simultaneously. Following the end of each Fiscal Year, the Company shall conduct an annual assessment of its internal controls over financial reporting and provide the Shareholders with (i) drafts of any comfort letter and report relating to the Company's assessment of its internal controls received from the Company's independent auditors and (ii) copies of any final comfort letter and final report relating to the Company's assessment of its internal controls received from the Company's independent auditors, in each case, promptly after becoming available to the Board (and in any event no later than two (2) Business Days thereafter); <u>provided</u> that if the Company or any Director becomes aware of any material weakness or significant deficiency in the internal controls over financial reporting, the Company or such Director shall notify the Shareholders promptly (and in any event, no later than one (1) Business Day) after becoming aware (or such Director becomes aware) of such weakness or deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Promptly after the sending or filing thereof, the Company shall deliver to each Shareholder copies of all reports that the Company or any of its Subsidiaries sends to any of its creditors under any credit agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;From time to time, the Company shall allow each Shareholder and its duly authorized representatives, upon reasonable advance notice in writing, during normal business hours and in such a manner as to not unreasonably interfere with the normal operation of the business of the Company Group, with reasonable access (taking into account applicable Law and any relevant privileges or binding confidentiality requirements) to the senior management and the Auditors of the Company for any purpose reasonably related to such Shareholder's interest in the Company. A Shareholder shall, at least annually or more frequently if reasonably requested in writing, be permitted to audit (taking into account applicable Law and any relevant privileges or binding confidentiality requirements) at reasonable times and after reasonable advance notice in writing to the Company the books, records and financial statements of the Company in order to verify the accuracy of the financial information provided and to ensure compliance with IFRS and GAAP and shall be entitled to review the Company's accounting procedures, financial reporting processes and internal controls over financial reporting; <u>provided</u> that any such private audit shall be at the expense of the Shareholder desiring it, and it shall not be paid for out of Company funds, and shall be done in a manner as to not unreasonably interfere with the normal operation of the business of the Company Group.

**ARTICLE IX <br>RESTRICTIONS ON TRANSFER**

Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Restrictions on Transfer or Encumbrance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Shareholder shall Transfer any Shares other than to a Permitted Transferee during the Lock-Up Period applicable to such Shareholder. If any Permitted Transferee to which Shares are transferred pursuant to this <u>Section 9.1(a)</u> ceases to be a Permitted Transferee of the transferring Shareholder, then such Person shall, as promptly as practicable, reconvey such Shares to the transferring Shareholder; <u>provided</u>, <u>however</u>, that nothing in this paragraph shall prohibit any party or any Permitted Transferee of such party from providing services to, or receiving services from, the Company or any of its Subsidiaries to the extent contemplated by the Ancillary Agreements (as defined in the EAPA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to compliance with the other provisions of this <u>Article IX</u>, after the expiration of the Lock-Up Period applicable to such Shareholder, Suzano and K-C shall be permitted to Transfer any or all of its Shares; <u>provided</u> that neither K-C nor any Permitted Transferee shall be permitted to Transfer any Shares to a Restricted Transferee or any of its controlled Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No Transfer of Shares to a Transferee shall be effective if the purpose or effect of such Transfer shall have been to circumvent the express provisions of this <u>Section 9.1</u>. If the Transfer of

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Shares is subject to any prior regulatory consent or approval from any Governmental Authority, then such Transfer shall not occur prior to obtaining all applicable regulatory consents or approvals. Any attempted or actual Transfer in contravention of this <u>Article IX</u>, shall be invalid and of no effect and, to the extent permitted by applicable Law, void *ab initio*.

Section 9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Improper Transfer or Encumbrance</u>. Notwithstanding anything herein to the contrary, any attempt not in compliance with this Agreement to make any Transfer of, or create, incur or assume any direct Encumbrance with respect to, any Shares shall be, to the extent permitted under applicable Law, considered null and void and of no force and effect, the purported transferee shall have no rights or privileges in or with respect to the Company, and the Company shall not give any effect in the Company's records to such attempted Transfer or Encumbrance. Further, the parties engaging or attempting to engage in such Transfer shall be obliged to undo such Transfer (to the extent executed) and indemnify and hold harmless the Company and the other Shareholder(s) from all Losses that such indemnified Persons may incur (including incremental Tax liability and attorney fees and expenses) in enforcing the provisions of this Agreement related thereto.

Section 9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferees to Execute Agreement</u>. Each Shareholder agrees that it shall not make any Transfer of any Shares unless contemporaneously with the consummation of any such Transfer, the Person (including, for the avoidance of doubt, any Transferee or Permitted Transferee) to whom such Transfer is proposed to be made (a "**Prospective Transferee**") duly executes and delivers a joinder to this Agreement in the form attached hereto as <u>Exhibit A</u>. Upon the execution and delivery by such Prospective Transferee of such joinder and compliance with the provisions of <u>Section 2.10</u>, such Prospective Transferee shall be deemed a "Shareholder" for purposes of this Agreement and shall have the rights and be subject to the obligations of a Shareholder under this Agreement with respect to the Shares owned by such Prospective Transferee.

Section 9.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Call Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To exercise the Call Option, Suzano shall deliver to K-C written notice of such exercise (the "**Call Option Notice**") containing (i) the scheduled date (the "**Call Option Closing Date**") on

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which the Call Option is to be consummated (the "**Call Option Closing**"), (ii) Suzano's calculation of (A) the Specified Adjusted EBITDA as of the Measurement Time and (B) the resulting Call Option Purchase Price (assuming, solely for this purpose, the Net Indebtedness, the CapEx Deviation, the SAP Cost Reimbursement Amount and the Input Costs Deviation is zero dollars ($0)), (iii) the form of consideration to be used to pay the Call Option Purchase Price, which shall be cash, and (iv) Suzano's indication of whether Suzano has or has not engaged KPMG LLP ("**KPMG**") for any Material Accounting Engagement in the two (2) years immediately prior to the date of such Call Option Notice. The Call Option Notice shall be irrevocable by Suzano. Upon receipt of the initial Call Option Notice, K-C shall either (x) consummate the Call Option Closing (subject to the determination of the Estimated Call Option Purchase Price pursuant to <u>Section 9.4(c)</u>) at 10:00 a.m. (Dallas, Texas time) with Suzano on the date that is the later of the Call Option Closing Date, or within five (5) Business Days of receipt of all Required Governmental Authorizations in accordance with <u>Section 9.4(d)</u> (or at such other date and time mutually agreed in writing upon by Suzano and K-C), or (y) if, and only if, the Specified Adjusted EBITDA as of the Measurement Time is less than the Baseline EBITDA, follow the procedures set forth on <u>Schedule VII</u>. Suzano may deliver the initial Call Option Notice prior to the first date on which Suzano is permitted to exercise the Call Option in accordance with <u>Section 9.4(a)</u> (but, for the avoidance of doubt, subject to <u>Schedule 2.12(c)</u>, neither the Trigger Date nor the Call Option Closing Date shall occur prior to the first day after the third anniversary of the date hereof). Following K-C's receipt of the Call Option Notice (except in the event of an EBITDA Insufficiency Delay Period) or the Second Call Option Notice, as applicable, K-C shall have forty five (45) days to deliver to Suzano a written notice of its good-faith disagreement (an "**EBITDA Notice of Disagreement**") with respect to the calculation of the Specified Adjusted EBITDA as of the Measurement Time set forth in the Call Option Notice or the Second Call Option Notice, as applicable; <u>provided</u> that the Company and Suzano shall reasonably cooperate in good faith with K-C and provide K-C with the access contemplated by <u>Section 8.1</u>; <u>provided</u>, <u>further</u>, that K-C shall indicate in writing in such EBITDA Notice of Disagreement whether K-C has or has not engaged KPMG for any Material Accounting Engagement in the two (2) years immediately prior to the date of such EBITDA Notice of Disagreement. If K-C delivers an EBITDA Notice of Disagreement, each of K-C and Suzano shall use its reasonable best efforts to seek to resolve in writing any differences that they may have with respect to each disputed item specified by K-C in the EBITDA Notice of Disagreement within thirty (30) days following delivery of the EBITDA Notice of Disagreement by K-C to Suzano. Any disputed items resolved in writing between K-C and Suzano within such thirty (30)-day period shall be final and binding with respect to such items, and if K-C and Suzano agree in writing on the resolution of each disputed item specified by K-C in the EBITDA Notice of Disagreement and the amounts of Specified Adjusted EBITDA, the amounts so determined shall be final and binding on K-C and Suzano for all purposes hereunder. If K-C and Suzano cannot resolve all such differences by 11:59 p.m. Dallas, Texas time on the day that is thirty (30) days after K-C delivers the EBITDA Notice of Disagreement, K-C and Suzano shall submit such dispute, and each of K-C and Suzano shall submit their respective good-faith calculations of the Specified Adjusted EBITDA as of the Measurement Time, in writing to KPMG (<u>provided</u> that, if KPMG declines to review the dispute, or any of K-C, Suzano or the Company have engaged KPMG for a Material Accounting Engagement in the two (2) years immediately prior to the exercise of the Call Option, then Suzano and K-C shall elect to submit such dispute to another internationally recognized U.S.-based firm of independent certified public accountants as mutually agreed between Suzano and K-C, and all the references to KPMG in this <u>Section 9.4</u> shall be to such other Person). The Company, Suzano and K-C shall enter into a customary engagement letter with KPMG. The Company, Suzano and K-C shall use their commercially reasonable efforts to cause KPMG to render a written decision resolving the matters submitted to it within thirty (30) days following the submission thereof. All communications with KPMG shall include at least one Representative of each of the Company, Suzano and K-C, and none of the Company, Suzano and K-C shall be permitted to communicate with KPMG other than as expressly set forth herein. KPMG shall consider only those items and amounts in Suzano's and K-C's respective calculations of the Specified Adjusted EBITDA as of the Measurement Time that are identified as being items and amounts to which Suzano and K-C have been unable to agree. The scope of the disputes to be resolved by KPMG shall be limited to correcting mathematical errors, determining whether any other non-recurring specific item included in Adjusted EBITDA was included in accordance with the definition of Adjusted EBITDA, and determining whether the items and amounts in dispute were determined in

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accordance with IFRS, and KPMG shall not be permitted to make any other determination. In resolving any disputed item, KPMG may not assign a value to any item greater than the greatest value or less than the smallest value for such item set forth on Suzano's and K-C's respective calculations of Specified Adjusted EBITDA, as applicable. KPMG's determination of the Specified Adjusted EBITDA as of the Measurement Time shall be based solely on written materials submitted by the Company, Suzano and K-C (*i.e.*, not on independent review); <u>provided</u>, <u>further</u>, that such determination shall be final and binding on both K-C and Suzano and shall not be subject to dispute resolution as set forth in <u>Section 13.13</u>. The final Specified Adjusted EBITDA shall be (i) if K-C does not trigger an EBITDA Insufficiency Delay Period, if applicable, and does not deliver an EBITDA Notice of Disagreement, the Specified Adjusted EBITDA as of the Measurement Time set forth in the Call Option Notice or the Second Call Option Notice, as applicable, (ii) if K-C delivers an EBITDA Notice of Disagreement, but Suzano and K-C resolve such differences, the Specified Adjusted EBITDA as of the Measurement Time agreed by Suzano and K-C and (iii) if KPMG is engaged pursuant to this <u>Section 9.4(b)</u>, the Specified Adjusted EBITDA as determined by KPMG (each such amount, the "**Final Specified Adjusted EBITDA**"). The determination of the Final Specified Adjusted EBITDA shall be conclusive and binding upon the Company, Suzano and K-C and shall not be subject to appeal or further review, absent fraud or manifest error. Judgment or award may be entered upon the written determination of KPMG in accordance with <u>Section 13.13</u>. In acting under this Agreement, KPMG shall function solely as an expert and not as an arbitrator; <u>provided</u> that KPMG shall have the power to conclusively resolve differences in disputed items as specified in this <u>Section 9.4(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;At least five (5) Business Days prior to the Call Option Closing Date, the Company shall prepare, or cause to be prepared, and deliver to Suzano and K-C a statement (the "**Preliminary Call Option Closing Statement**") that sets forth in reasonable detail the Company's good faith estimate, in each case, determined as of 12:01 a.m. Dallas, Texas time on the Call Option Closing Date (the "**Call Option Calculation Time**"), of (i) Net Indebtedness (the "**Estimated Net Indebtedness**"), (ii) CapEx Deviation (the "**Estimated CapEx Deviation**"), (iii) the SAP Cost Reimbursement Amount (the "**Estimated SAP Cost Reimbursement Amount**"), (iv) the Input Costs Deviation (the "**Estimated Input Costs Deviation**") and (v) the resulting calculation of the Call Option Purchase Price based on the Final Specified Adjusted EBITDA (the "**Estimated Call Option Purchase Price**"). Following the delivery of the Preliminary Call Option Closing Statement, but prior to the Call Option Closing Date, each of Suzano and K-C shall have the right (but not the obligation) to review the Preliminary Call Option Closing Statement. Prior to the Call Option Closing Date, the Company will review any comments proposed by K-C or Suzano with respect to the Preliminary Call Option Closing Statement and will consider, in good faith, any appropriate changes. Suzano, K-C and the Company shall in good faith seek to resolve any differences that they may have with respect to the computation of any of the items in the Preliminary Call Option Closing Statement; <u>provided</u> that if Suzano, K-C and the Company are unable to resolve such differences prior to the Call Option Closing Date, the amounts of Estimated Net Indebtedness, Estimated CapEx Deviation, Estimated SAP Cost Reimbursement Amount, Estimated Input Costs Deviation and Estimated Call Option Purchase Price as reflected in the Preliminary Call Option Closing Statement shall be used for purposes of calculating the Estimated Call Option Purchase Price to be paid on the Call Option Closing Date.

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Governmental Authorizations (if any), including (A) cooperating with each other in connection with filings required to be made by any party under applicable Law and liaising with each other in relation to each step of the procedure before the relevant Governmental Authorities and as to the contents of all communications with such Governmental Authorities; (B) to the extent practicable and permitted by Law or Governmental Authority, providing the other parties with a copy of notifications or filings in draft form and giving such other parties a reasonable opportunity to discuss its content before it is filed with the relevant Governmental Authorities; (C) furnishing to the other parties all information within its possession that is required for any application or other regulatory filing to be made by the other party pursuant to the applicable Law in connection with the Required Governmental Authorizations; (D) promptly notifying each other of any material communications from or with any Governmental Authority with respect to the Required Governmental Authorizations and ensuring to the extent practicable and permitted by Law or Governmental Authority that each of the parties is entitled to attend any material meetings, conferences, telephone calls, or other substantive discussions with or other appearances before any Governmental Authority with respect thereto; (E) reasonably consulting and cooperating with one another in connection with all analyses, appearances, presentations, memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any party hereto in connection with proceedings under or relating to applicable Law; and (F) without prejudice to any rights of the parties hereunder, reasonably consulting and cooperating in all respects with the other in defending all actions by or before any Governmental Authority challenging the consummation of the Call Option Closing. Each of the Company and K-C acknowledge and agree that Suzano shall determine the strategy to be pursued for obtaining and lead the effort to obtain all necessary Required Governmental Authorizations from the relevant Governmental Authorities in connection with the Call Option and the consummation of the Call Option Closing and each of the Company and K-C shall use its reasonable best efforts to take all actions to support Suzano in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Following consummation of the Call Option pursuant to which all of K-C's Shares are acquired by Suzano (or its designee), subject to <u>Section</u> 10.1, the Managing Shareholder will amend this Agreement to reflect the withdrawal of K-C and the transfer of the Shares effective as of the Call Option Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The fees and expenses of KPMG incurred pursuant to <u>Section 9.4(b)</u> shall be borne by the party whose calculation of Specified Adjusted EBITDA is furthest away from the Final Specified Adjusted EBITDA determined by KPMG.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Call Option Purchase Price True-Up</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Within sixty (60) days after the Call Option Closing Date, Suzano shall cause to be prepared and delivered to K-C and the Company a written statement (the "**Call Option Final Closing Statement**") that shall include and set forth a good faith calculation in reasonable detail, in each case determined as of the Call Option Calculation Time, of (A) Net Indebtedness (the "**Closing Net Indebtedness**"), (B) CapEx Deviation (the "**Closing CapEx Deviation**"), (C) the SAP Cost Reimbursement Amount (the "**Closing SAP Cost Reimbursement Amount**"), (D) the Input Costs Deviation (the "**Closing Input Costs Deviation**") and (E) the resulting calculation of the Call Option Purchase Price based on the Final Specified Adjusted EBITDA (the "**Closing Call Option Purchase Price**"). The Closing Net Indebtedness, the Closing CapEx Deviation and the Closing SAP Cost Reimbursement Amount (I) shall be prepared on a basis consistent with IFRS and (II) shall be based exclusively on the facts and circumstances as they exist prior to the Call Option Closing and shall exclude the effects of any event, act, change in circumstances or similar development arising or occurring on or after the Call Option Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Call Option Final Closing Statement shall become final and binding on the sixtieth (60<sup>th</sup>) day following delivery thereof, unless prior to 11:59 p.m. Dallas, Texas time on the last day of such sixty (60)-day period, K-C delivers to Suzano written notice of its good-faith disagreement (a "**Call Option Notice of Disagreement**") specifying in reasonable detail the nature and amount of any

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dispute as to the applicable Closing Net Indebtedness, Closing CapEx Deviation, Closing SAP Cost Reimbursement Amount or Closing Input Costs Deviation (and therefore the calculation of the Closing Call Option Purchase Price) as set forth in the Call Option Final Closing Statement. K-C shall be deemed to have agreed with all items and amounts of Closing Net Indebtedness, Closing CapEx Deviation, Closing SAP Cost Reimbursement Amount and Closing Input Costs Deviation not specifically referenced in the Call Option Notice of Disagreement, and such items and amounts shall be final and binding on the parties hereto and shall not be subject to review in accordance with this <u>Section 9.4(g)(ii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;During the thirty (30)-day period following delivery of a Call Option Notice of Disagreement by K-C to Suzano, Suzano and K-C in good faith shall seek to resolve in writing any differences that they may have with respect to the calculation of any of the Closing Net Indebtedness, Closing CapEx Deviation, Closing SAP Cost Reimbursement Amount or Closing Input Costs Deviation as specified therein. Any disputed items resolved in writing between K-C and Suzano within such thirty (30)-day period shall be final and binding with respect to such items, and if Suzano and K-C agree in writing on the resolution of each disputed item specified by K-C in the Call Option Notice of Disagreement and the amount of any of the Closing Net Indebtedness, Closing CapEx Deviation Closing SAP Cost Reimbursement Amount, or Closing Input Costs Deviation so determined shall be final and binding on the Company, Suzano and K-C for all purposes hereunder. If K-C and Suzano have not resolved all such differences by 11:59 p.m. Dallas, Texas time on the last day of such thirty (30)-day period, K-C and Suzano shall submit such dispute, in writing, to KPMG, their briefs detailing their views as to the correct nature and amount of each item remaining in dispute and the amount of any of the Closing Net Indebtedness, Closing CapEx Deviation, Closing SAP Cost Reimbursement Amount or Closing Input Costs Deviation, and KPMG shall make a written determination as to the amount of the Closing Net Indebtedness, Closing CapEx Deviation, Closing SAP Cost Reimbursement Amount or Closing Input Costs Deviation. The Company, Suzano and K-C shall enter into a customary engagement letter with KPMG (<u>provided</u> that, if KPMG declines to review the dispute, then Suzano and K-C shall elect to submit such dispute to another internationally recognized U.S.-based firm of independent certified public accountants as mutually agreed between Suzano and K-C). The Company, Suzano and K-C shall use their commercially reasonable efforts to cause KPMG to render a written decision resolving the matters submitted to it within thirty (30) days following the submission thereof. All communications with KPMG shall include at least one Representative of each of the Company, Suzano and K-C, and none of the Company, Suzano and K-C shall be permitted to communicate with KPMG other than as expressly set forth herein. KPMG shall consider only those items and amounts in the Company's, Suzano's and K-C's respective calculations of the Closing Net Indebtedness, Closing CapEx Deviation, Closing SAP Cost Reimbursement Amount or Closing Input Costs Deviation, as applicable, that are identified as being items and amounts to which Suzano and K-C have been unable to agree. The scope of the disputes to be resolved by KPMG shall be limited to correcting mathematical errors and determining whether the items and amounts in dispute were determined in accordance with IFRS, and KPMG shall not be permitted to make any other determination. KPMG's determination of the Closing Net Indebtedness, Closing CapEx Deviation, Closing SAP Cost Reimbursement Amount or Closing Input Costs Deviation, as applicable, shall be based solely on written materials submitted by the Company, Suzano and K-C (*i.e.*, not on independent review). The determination of KPMG shall be conclusive and binding upon the Company, Suzano and K-C. The final Closing Net Indebtedness shall be (A) if K-C does not deliver a Call Option Notice of Disagreement with respect to Closing Net Indebtedness, the Closing Net Indebtedness set forth in the Call Option Final Closing Statement, (B) if K-C delivers a Call Option Notice of Disagreement with respect to Closing Net Indebtedness, but Suzano and K-C resolve such differences, the Closing Net Indebtedness agreed by Suzano and K-C and (C) if KPMG is engaged pursuant to this <u>Section 9.4(g)(iii)</u>, the Closing Net Indebtedness as determined by KPMG (the "**Final Net Indebtedness**"). The final Closing CapEx Deviation shall be (I) if K-C does not deliver a Call Option Notice of Disagreement with respect to Closing CapEx Deviation, the Closing CapEx Deviation set forth in the Call Option Final Closing Statement, (II) if K-C delivers a Call Option Notice of Disagreement with respect to Closing CapEx Deviation, but Suzano and K-C resolve such differences, the Closing CapEx Deviation agreed by Suzano and K-C and (III) if KPMG is engaged pursuant to this <u>Section 9.4(g)(iii)</u>, the Closing CapEx Deviation as determined by KPMG (the "**Final CapEx Deviation**"). The final Closing SAP Cost Reimbursement

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Amount shall be (1) if K-C does not deliver a Call Option Notice of Disagreement with respect to Closing SAP Cost Reimbursement Amount, the Closing SAP Cost Reimbursement Amount set forth in the Call Option Final Closing Statement, (2) if K-C delivers a Call Option Notice of Disagreement with respect to Closing SAP Cost Reimbursement Amount, but Suzano and K-C resolve such differences, the Closing SAP Cost Reimbursement Amount agreed by Suzano and K-C and (3) if KPMG is engaged pursuant to this <u>Section 9.4(g)(iii)</u>, the Closing SAP Cost Reimbursement Amount as determined by KPMG (the "**Final SAP Cost Reimbursement Amount**"). The final Closing Input Costs Deviation shall be (x) if K-C does not deliver a Call Option Notice of Disagreement with respect to Closing Input Costs Deviation, the Closing Input Costs Deviation set forth in the Call Option Final Closing Statement, (II) if K-C delivers a Call Option Notice of Disagreement with respect to Closing Input Costs Deviation, but Suzano and K-C resolve such differences, the Closing Input Costs Deviation agreed by Suzano and K-C and (III) if KPMG is engaged pursuant to this <u>Section 9.4(g)(iii)</u>, the Closing Input Costs Deviation as determined by KPMG (the "**Final Input Costs Deviation**"). Such determination of Final Net Indebtedness, Final CapEx Deviation, Final SAP Cost Reimbursement Amount and Final Input Costs Deviation shall not be subject to appeal or further review, absent fraud or manifest error. Judgment or award may be entered upon the written determination of KPMG in accordance with <u>Section 13.13</u>. In acting under this Agreement, KPMG shall function solely as an expert and not as an arbitrator; <u>provided</u> that KPMG shall have the power to conclusively resolve differences in disputed items as specified in this <u>Section 9.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;If either of K-C Parent, Suzano Parent or the Company engage KPMG for any Material Accounting Engagement between the date of this Agreement and the final resolution and payment of the Closing Call Option Purchase Price (as adjusted), then Suzano or K-C, as applicable, shall have the right to submit any dispute under this <u>Section 9.4</u> to another internationally recognized U.S.-based firm of independent certified public accountants as mutually agreed between Suzano and K-C, and all the references to KPMG in this <u>Section 9.4</u> shall be to such other Person. The fees and expenses of KPMG shall be borne by Suzano and K-C in inverse proportion as they may prevail on the matters resolved by KPMG, which proportionate allocation shall be calculated on an aggregate basis based on the relative dollar values of the amounts in dispute and shall be determined by KPMG at the time the determination of such firm is rendered on the merits of the matters submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Until the resolution of any disputes pursuant to this <u>Section 9.4</u>, the Company will afford Suzano and K-C and their Representatives reasonable access, during normal business hours and upon reasonable prior notice, to the personnel, properties, books and records of the Business and the Company and to any other information reasonably requested for purposes of preparing and reviewing the calculations contemplated by this <u>Section 9.4</u>. The Company shall authorize its accountants to disclose work papers generated by such accountants in connection with preparing and reviewing the calculations specified in this <u>Section 9.4</u>; <u>provided</u> that such accountants shall not be obligated to make any work papers available except in accordance with such accountants' disclosure procedures and then only after the non-client party has signed an agreement relating to access to such work papers in form and substance acceptable to such accountants. The rights of any party hereto shall not be prejudiced by the failure of any other party hereto to comply with this <u>Section 9.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;The Call Option Purchase Price shall be adjusted, upwards or downwards, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Agreement, the "**Call Option Net Adjustment Amount**" means an amount, which may be zero, positive, or negative, equal to the difference between the Closing Call Option Purchase Price as determined pursuant to <u>Section 9.4(g)</u> and the Estimated Call Option Purchase Price, expressed as (I) a positive number if the Closing Call Option Purchase Price exceeds the Estimated Call Option Purchase Price and shall be an amount equal to the difference, (II) a negative number if the Estimated Call Option Purchase Price exceeds the Closing Call Option Purchase Price and shall be an amount equal to the difference or (III) zero if the Estimated Call Option Purchase Price equals the Call Option Closing Purchase Price.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;If the Call Option Net Adjustment Amount is positive, the Closing Call Option Purchase Price shall be adjusted upwards in an amount equal to the Call Option Net Adjustment Amount, and Suzano shall pay an amount equal to the Call Option Net Adjustment Amount by wire transfer of immediately available funds to K-C (or to such other Person or Persons as K-C directs in writing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;If the Call Option Net Adjustment Amount is negative (in which case the "Call Option Net Adjustment Amount" for purposes of this <u>Section 9.4(g)(vi)(C</u>) shall be deemed to be equal to the absolute value of such amount), the Closing Call Option Purchase Price shall be adjusted downwards in an amount equal to the Call Option Net Adjustment Amount, and K-C shall pay an amount equal to the Call Option Net Adjustment Amount by wire transfer of immediately available funds to Suzano (or to such other Person or Persons as Suzano directs in writing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;If the Call Option Net Adjustment Amount is zero, then no adjustment to the Call Option Purchase Price shall be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;Payments in respect of <u>Section 9.4(g)(vi</u>) shall be made within five (5) Business Days after the date on which the Call Option Net Adjustment Amount is finally determined pursuant to the provisions of this <u>Section 9.4(g</u>) by wire transfer of immediately available funds to such account or accounts as may be designated in writing by the party entitled to such payment at least two (2) Business Days prior to such payment date. Any such payments shall be treated as an adjustment to the Call Option Purchase Price for applicable Tax purposes except to the extent otherwise required by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Suzano may not assign its right to purchase the Call Shares pursuant to this <u>Section 9.4</u> to any Person other than a Subsidiary of Suzano Parent; <u>provided</u>, <u>however</u>, that, in the event of any such assignment, Suzano shall remain subject to its obligations set forth in this <u>Section 9.4</u> upon any exercise of the Call Option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;If K-C Transfers (A) all of its Shares prior to the exercise of the Call Option, references to "K-C" in this <u>Section 9.4</u> shall refer to the ultimate parent entity of such Transferee and (B) a portion of its Shares prior to the exercise of the Call Option, references to "K-C" in this <u>Section 9.4</u> shall refer to both K-C and the ultimate parent entity of such Transferee separately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;In connection with the purchase of the Call Shares pursuant to <u>Section 9.4(a)</u>, Suzano shall not make an election pursuant to Section 338(g) of the Code (as defined in the Tax Annex) with respect to such purchase; <u>provided</u> that, if K-C shall have delivered written notice to Suzano no later than eight (8) months following the Call Option Closing Date, then either (i) Suzano shall make an election pursuant to Section 338(g) of the Code (as defined in the <u>Tax Annex</u>) with respect to the purchase or (ii) K-C Parent shall be permitted to make, or cause to be made, an election to close the taxable year of the entity that is sold pursuant to Treasury Regulations Section 1.245A-5(e)(3)(i), in each case, with respect to any entity that is a "controlled foreign corporation" for U.S. federal income Tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Suzano shall be responsible for and pay all applicable transfer, sales, use, documentary, capital duty, stamp duty, stamp duty reserve, stock transfer, deed recording, excise and conveyance Taxes and other similar Taxes, duties, fees, or charges imposed by any Governmental Authority (including any VAT) as a result of, or payable or collectible or incurred in connection with, Suzano's purchase of the Call Shares pursuant to this <u>Section 9.4</u>, together with any interest and penalties thereon, but excluding any Income Taxes.

**ARTICLE X <br>TERM AND TERMINATION**

Section 10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>. This Agreement shall terminate (a) by the mutual written consent of K-C and Suzano (on behalf of itself and the Company), (b) in respect of each Shareholder, subject to <u>Section 9.3</u> in the event of a permitted Transfer, immediately upon it or its legal successors or permitted assignees (directly or indirectly) ceasing to hold any Shares or (c) at Suzano's sole option and in its sole discretion, by Suzano's written notice to the other parties hereto upon consummation of the Call Option Closing pursuant to <u>Section 9.4</u>; <u>provided</u> that the relevant parties shall thereupon have no further rights or obligations under this Agreement, but shall remain bound by the Surviving Provisions; <u>provided</u>, <u>further</u>, that the termination of this Agreement shall not release any party hereto from any liability for any breach of this Agreement by such party that occurred prior to, or in connection with, such termination.

Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Events Causing Dissolution</u>. The Company shall be dissolved and its affairs shall be wound up upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the unanimous vote of the General Meeting to dissolve, wind up and liquidate the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the entry of a decree of judicial dissolution under applicable Law.

Section 10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Liquidation</u>. Following the unanimous vote of the General Meeting as set out under <u>Section 10.2(a)</u>, the Liquidating Trustee shall immediately commence to wind up the Company's affairs, subject to applicable regulatory approvals; <u>provided</u>, <u>however</u>, that a reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the satisfaction of liabilities to creditors so as to enable the Shareholders to minimize the normal losses attendant upon a liquidation, which reasonable time shall include the statutory time limitation for creditors to object to the liquidation. Each Shareholder (and its Affiliates) shall pay to the Company all amounts then owing by it (and them) to the Company and its Subsidiaries. The proceeds of liquidation shall be distributed, as realized, in the following order and priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to creditors of the Company (including holders of Shares that are creditors to the extent otherwise permitted by Law), in satisfaction of the liabilities of the Company (whether by payment

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or the making of reasonable provision for payment thereof), other than liabilities for distributions to holders of Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;to the Shareholders proportionally in accordance with their entitlements under <u>Section 7.1</u> (without giving effect to <u>Section 7.2</u>).

For purposes of making the liquidating distributions required by this <u>Section 10.3</u>, the Liquidating Trustee may determine, whether to distribute all or any portion of the assets of the Company in kind or to sell all or any portion of the assets of the Company and distribute the proceeds therefrom.

Section 10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Claims of Shareholders</u>. The Shareholders shall look solely to the Company's assets for the return of their Capital Contributions, and if the assets of the Company remaining after payment of or due provision for all debts, liabilities and obligations of the Company are insufficient to return such Capital Contributions, the Shareholders shall have no recourse against the Company or any other Shareholder or any other Person.

**ARTICLE XI <br>LIABILITY AND INDEMNIFICATION**

Section 11.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Liability of Covered Persons</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided by applicable Law or this Agreement, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Covered Person shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Covered Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided by applicable Law or this Agreement, no Covered Person shall be liable to the Company or any other Covered Person for any claims, suits, judgments, losses, damages, fines, penalties, fees or costs (including reasonable legal fees and expenses) ("**Losses**") incurred by reason of any action taken or omitted to be taken by such Covered Person on behalf of the Company in their capacity as a Covered Person and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person hereby, by the Board or by an appropriate Officer, so long as such action or omission does not constitute fraud, gross negligence or intentional misconduct by such Covered Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly required by applicable Law, a Shareholder, in its capacity as such, shall have no liability to the Company or to any other Shareholder in respect of any distributions wrongfully distributed to it unless such Shareholder had actual knowledge at the time of the distribution of facts indicating the impropriety of the distribution and if immediately after giving effect to such distribution all liabilities of the Company (other than liabilities to Shareholders or assignees on account of their Shares and liabilities as to which recourse is limited to specific property of the Company) exceed the Fair Market Value of the Company's assets; <u>provided</u>, <u>however</u>, that a Shareholder shall have no liability under this <u>Section 11.1</u> in respect of any distribution on or after the fourth (4<sup>th</sup>) anniversary of the distribution unless an action or claim to recover such distribution from such Shareholder is commenced prior to such fourth (4<sup>th</sup>) anniversary and an adjudication of liability against such Shareholder is made in connection with such action or claim.

Section 11.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To the fullest extent permitted by applicable Law, a Covered Person shall be entitled to indemnification from the Company for any Losses incurred by such Covered Person by reason of (i) such Person's capacity as a Covered Person or (ii) any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company (including any act or omission taken or suffered by any of them in reliance upon and in accordance with the opinion or advice of experts,

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including of legal counsel as to matters of law, of accountants as to matters of accounting, or of investment bankers or appraisers as to matters of valuation) and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any Losses incurred by such Covered Person by reason of fraud, gross negligence or intentional misconduct with respect to such acts or omissions or any act taken by such Covered Person purporting to bind the Company that has not been authorized pursuant to this Agreement; <u>provided</u>, <u>however</u>, that any indemnity under this <u>Section 11.2</u> shall be provided out of and to the extent of Company assets only (including insurance and any agreements pursuant to which the Company and its Officers and Directors are entitled to indemnification), and no other Covered Person shall have any personal liability on account thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the event that any claim, demand, action, suit or proceeding shall be instituted or asserted or any Losses shall arise in respect of which indemnity may be sought by a Covered Person pursuant to <u>Section 11.2(a)</u>, such Covered Person shall promptly notify the Company thereof in writing. Failure to provide notice shall not affect the Company's obligations hereunder except to the extent the Company is actually and materially prejudiced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall have the right to participate in and assume and control the defense of any such claim, demand, action, suit or proceeding to the extent that the Company may wish and, in connection therewith, to retain counsel reasonably satisfactory to each Covered Person, at the Company's expense, to represent each Covered Person and any others the Company may designate in such claim, demand, action, suit or proceeding. After notice from the Company to such Covered Person of the Company's election to assume the defense of such claim, demand, action, suit or proceeding, the Company will not be liable for expenses subsequently incurred by such Covered Person in connection with the defense thereof. The Company shall keep the Covered Person reasonably advised of the status of such claim, demand, action, suit or proceeding and the defense thereof and shall consider in good faith recommendations made by the Covered Person with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;In any such claim, demand, action, suit or proceeding, any Covered Person shall have the right to retain its own counsel at its own expense; <u>provided</u>, <u>however</u>, that the fees and expenses of such Covered Person's counsel shall be at the expense of the Company if (A) each other Shareholder and such Covered Person shall have mutually agreed to the retention of such counsel, (B) the Company shall have failed, within a reasonable time after having been notified of the existence of an indemnified claim, to assume the defense of such indemnified claim or (C) the named parties to any such claim, demand, action, suit or proceeding (including any impleaded parties) include both the Company and such Covered Person and representation of both parties by the same counsel would be inappropriate in the judgment of the Covered Person (as evidenced by the written advice of counsel) due to a material and actual conflict of interest between them and the Company shall have failed, within a reasonable time after having been notified of the Covered Person's objection under this <u>Section 11.2(b)(ii)(C)</u> to such joint representation, to retain counsel for such Covered Person reasonably satisfactory to such Covered Person. It is understood that the Company shall not, in respect of the legal expenses of any Covered Person, in connection with any claim, demand, action, suit or proceeding or related claims, demands, actions, suits or proceedings in the same jurisdiction, be liable for the fees and expense of more than one separate firm (in addition to any local counsel reasonably satisfactory to the Company) for all such Covered Persons and that all such fees and expenses shall be reimbursed as they are incurred; <u>provided</u>, <u>however</u>, that if there exists or is reasonably likely to exist a conflict of interest that would make it inappropriate in the judgment of a Covered Person (as evidenced by the written advice of counsel) for the same counsel to represent such Covered Person and any other Covered Person, then such Covered Person shall be entitled to retain its own counsel, in each jurisdiction for which the Covered Person reasonably determines counsel is required, at the expense of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall not be liable for the entry of any judgment or any settlement of any claim, demand, action, suit or proceeding effected without its written consent (which consent shall not be unreasonably withheld or delayed), but if settled with such consent or if there be a final judgment for the plaintiff, the Company agrees to indemnify each Covered Person, to the extent provided in <u>Section 11.2(a)</u>, from and against all Losses by reason of such settlement or judgment. The Company shall not enter any judgment or effect any settlement of any pending or threatened claim, demand, action, suit or proceeding in respect of which any Covered Person is seeking indemnification hereunder without the prior written consent of each such Covered Person (which consent shall not be unreasonably withheld, conditioned or delayed by any such Covered Person), unless such judgment or settlement includes an unconditional release of each such Covered Person from all liability and claims that are the subject matter of such claim, demand, action, suit or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;As necessary or useful to the defending party in effecting the foregoing procedures, the parties shall reasonably cooperate in the execution and delivery of agreements, instruments and other documents and in the provision of access to witnesses, documents and property (including access to perform interviews, physical investigations or other activities).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;The Company may purchase and maintain insurance, to the extent and in such amounts as the Board may deem reasonable or appropriate, on behalf of all Covered Person and other Persons, as the Board may determine, against any liability that may be asserted against, or expense that may be incurred by, any such Person in connection with the Company's activities or such indemnities, whether or not the Company would have the power to indemnify such Person against such liabilities under the provisions of this Agreement. The Shareholders and the Company may enter into indemnity contracts with Covered Persons and such other Persons as the Board shall determine and adopt written procedures pursuant to which arrangements are made for the advancement of expenses and the funding of obligations under this <u>Section 11.2</u> and <u>Section 11.3</u> and containing such other procedures regarding indemnification as are appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;The right to indemnification and the advancement of expenses conferred in this <u>Section 11.2</u> and <u>Section 11.3</u> shall not be exclusive of any other right that any Covered Person may have or hereafter acquire under any statute, agreement, bylaw, vote of the Board or otherwise. The rights conferred upon any Covered Person in <u>Section 11.2</u> and <u>Section 11.3</u> shall be contract rights that vest upon the occurrence or alleged occurrence of any act or omission giving rise to any pending or threatened claim, demand, action, suit or proceeding, and such rights shall continue as to any Covered Person who has ceased to be a Director or Officer and shall inure to the benefit of such Covered Person's heirs, executors and administrators. No amendment or repeal of any of the provisions of this Agreement shall limit or eliminate the benefits provided to the Shareholders under this <u>Section 11.2</u> or this <u>Article XI</u>.

Section 11.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Advancement of Expenses</u>. To the fullest extent permitted by applicable Law, reasonable and documented expenses (including reasonable fees and expenses of counsel) actually and reasonably incurred by a Covered Person in defending any claim, demand, action, suit or proceeding which is subject to indemnification pursuant to <u>Section 11.2</u> shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined by a court or other adjudicatory body of competent jurisdiction that the Covered Person is not entitled to be indemnified therefor as authorized in <u>Section 11.2</u> hereof.

Section 11.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Shareholders</u>. Each Shareholder (as applicable, the "**Indemnifying Party**") shall indemnify and hold harmless the other Shareholder and such other Shareholder's related Covered Person (as applicable, the "**Indemnified Party**") from and against all

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Losses suffered or incurred by the Indemnified Party arising out of or resulting from any breach of any covenant or agreement of the Indemnifying Party contained in <u>Section 9.4</u>; <u>provided</u>, <u>however</u>, that, notwithstanding the above, the Indemnifying Party shall have no obligation to indemnify the Indemnified Party for claims by the Indemnified Party to the extent directly arising out of the Indemnified Party's breach of its obligations under this Agreement. Solely to the extent that K-C elects to Transfer any of its Indirect Shares pursuant to <u>Section 9.4(a)</u>, K-C Parent shall indemnify and hold harmless Suzano and its related Covered Persons from and against all Losses suffered or incurred by any such Person (a) arising out of or resulting from any breach of the representations and warranties set forth in the last sentence of <u>Section 9.4(a)</u> or <u>Section 9.4(i)(i)(D)</u> or (b) in connection with any liabilities (contingent or otherwise), debts or obligations of any Dutch Holdco Entity actually acquired by Suzano pursuant to <u>Section 9.4</u>. Notwithstanding anything to the contrary contained in this Agreement, no Indemnified Party shall be liable to the other party, whether in Contract, tort (including negligence and strict liability) or otherwise, at Law or in equity, and Loss shall not include any amounts, for any punitive, incidental, consequential, special or indirect damages, or for any loss of future profits, revenue or income, or loss of business reputation or opportunity, in each case, relating to the breach or alleged breach of <u>Section 9.4</u>, regardless of whether such damages were foreseeable.

Section 11.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Value Added Taxes</u>. Where this Agreement requires a party to this Agreement to indemnify, reimburse or otherwise compensate another party to this Agreement for any fees, costs, charges or expenses or pay any fees, costs, charges or expenses of another person, that first party shall also bear any VAT chargeable on the supply or supplies for which such fees, costs, charges or expenses are consideration, except to the extent that the relevant recipient or any Affiliate of the relevant recipient is entitled to credit or repayment in respect of such VAT from the relevant taxing authority.

Section 11.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Indemnities</u>. The Company acknowledges that one or more Covered Persons may have rights to indemnification, advancement of expenses or insurance provided by Persons other than the Company. The Company acknowledges and agrees that the obligation of the Company under this Agreement to indemnify or advance expenses to any Covered Person for the matters covered under <u>Section 11.2</u> and <u>Section 11.3</u> shall be the primary source of indemnification and advancement of such Covered Persons, and any obligation on the part of any Covered Persons under any Other Indemnification Agreement to indemnify or advance expenses to such Covered Persons shall be secondary to the Company's obligation and shall be reduced by any amount that the Covered Persons may collect as indemnification or advancement from the Company. Notwithstanding the foregoing, any payments made to a Covered Persons by an insurance company shall not be reduced as a result of any indemnification payments made by the Company to such Covered Person and that such Covered Person shall not permit any such insurance company to be subrogated to such Covered Person's rights without the prior written consent of the Board. If the Company fails to indemnify or advance expenses to a Covered Person as required or contemplated by this Agreement, and any other Person makes any payment to such Covered Person in respect of indemnification or advancement of expenses under any Other Indemnification Agreement on account of such unpaid indemnity or advancement, such other Person shall have the right to subrogate to the rights of such Covered Person under this Agreement in respect of and to the extent of such unpaid amounts.

**ARTICLE XII <br>OTHER AGREEMENTS**

Section 12.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Assurances</u>. Each of the Shareholders hereto shall use commercially reasonable efforts to take, or cause to be taken, all appropriate action, and to do, or cause to be done, all things necessary, proper or advisable under Laws to consummate and make effective the transactions contemplated hereunder, including using reasonable efforts to obtain all applicable Permits. In case at any time after the date hereof, any further action is necessary or desirable to carry out the purposes of this Agreement, the proper officers and directors of each of the parties shall use their commercially reasonable efforts to take all such action.

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Section 12.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. Without limiting the terms of <u>Section 11.2(b)(v)</u>, the Company shall, with the approval of the Board, purchase and maintain insurance for the Company to such extent and in such amounts as the Board may deem reasonable or appropriate against such hazards and liabilities as the Board may determine is commonly maintained by businesses similarly situated.

Section 12.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Compete; No Solicitation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;K-C Parent agrees that, for a period commencing on the date hereof and expiring on the third anniversary of the date on which K-C (or any of its Permitted Transferees) no longer owns, directly or indirectly, any Shares, neither it nor any of its controlled Affiliates shall, directly or indirectly, own, manage, operate, control, participate (including as a joint venture partner, agent, representative, consultant or lender) in, or render financial assistance to, any business or Person that engages in or competes with, or otherwise engage in any business that competes with, the Business anywhere in the Restricted Territory (a "**K-C Competitive Activity**"); <u>provided</u>, <u>however</u>, that this <u>Section 12.3(a)</u> shall not prevent K-C Parent or its Affiliates from (i) holding or making investments not in excess of two percent (2%) of the outstanding securities of any publicly traded entity that is engaged in the Business anywhere in the world; <u>provided</u> that neither K-C Parent nor its Affiliates has any active or controlling participation in the business of such entity, (ii) indirectly owning securities through ownership of shares the management of which is conducted by a registered investment company or mutual fund, (iii) action taken as required to comply with the Company Transfer Agreements or the Ancillary Agreements (each, as defined in the EAPA), (iv) participation in, and in the activities of, the Company Group as expressly required to comply with this Agreement, the EAPA and the Ancillary Agreements (as defined in the EAPA), (v) continuing to operate in (x) Russia and Kazakhstan subject to Section 5.25 of the EAPA and (y) Japan only until the Japan Assignment Date and subject to Section 2.12 of the EAPA, or (vi) acquiring, in connection with the operations of the Excluded Business (as defined in the EAPA), and, following such acquisition, continuing to hold or own a business or Person which also has a business line or division that is engaged in K-C Competitive Activity ("**K-C Competitive Target**"); <u>provided</u> that (A) for so long as K-C (or any of its Permitted Transferees) beneficially owns, directly or indirectly, any Shares, K-C Parent shall, and shall cause its applicable Affiliates to, contribute such K-C Competitive Target to the Company or one of its Subsidiaries designated by Suzano on arm's length terms and conditions to be negotiated in good faith between K-C Parent and Suzano (on behalf of the Company); and (B) for the remainder of the three (3)-year period following the date on which K-C (or any of its Permitted Transferees) no longer owns, directly or indirectly, any Shares, if such K-C Competitive Activity generated more than 10% of such K-C Competitive Target's consolidated annual revenues during the most recent completed fiscal year ending prior to the entry into the definitive agreement providing for the acquisition, K-C Parent and its Affiliates shall provide prompt written notice to Suzano on the closing date of such acquisition and shall cause such K-C Competitive Target to be fully divested to an unaffiliated third party within twelve (12) months after such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;K-C Parent agrees that, for a period commencing on the date hereof and expiring (x) with respect to the Transferred Employees (as defined in the EAPA) listed on <u>Schedule 12.3(b)</u>, on the third anniversary of the date on which K-C (or any of its Permitted Transferees) no longer owns, directly or indirectly, any Shares and (y) with respect to any other Transferred Employees (as defined in the EAPA), on the third anniversary of the date of this Agreement, neither it nor any of its Affiliates shall directly or indirectly (i) solicit for employment or any similar arrangement any such Transferred Employee (as defined in the EAPA), or (ii) hire or assist any other Person in hiring any such Transferred Employee (as defined in the EAPA); <u>provided</u>, <u>however</u>, that this <u>Section 12.3(b)</u> (A) shall not apply to any Transferred Employees who have ceased to be employed by any member of the Company Group or any of its Affiliates for at least six (6) months before the commencement of any solicitation or encouragement by K-C Parent and its Affiliates otherwise prohibited by this <u>Section 12.3(b)</u>, (B) shall not prohibit general solicitations for employment through advertisements or bona fide third-party recruiting firms not specifically directed toward employees of any member of the Company Group, and (C) shall not prohibit hiring resulting from generalized searches for employees through the use of bona fide public

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advertisements in the media or any recruitment efforts conducted by any recruitment agency not specifically directed toward employees of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each of Suzano Parent and the Company agrees that, other than with respect to the Non-ARD Business Employee (as defined in the EAPA), for the three (3) year period following the date of this Agreement, neither it nor any of its Affiliates shall directly or indirectly (i) induce, encourage or solicit for employment or any similar arrangement any employee of K-C Parent or its Selling Affiliates (as defined in the EAPA) with whom Suzano Parent and its Affiliates interacted in connection with Suzano Parent's evaluation of the transactions contemplated by the EAPA (and not solely because any such employee is listed on an employee census or list) to leave such employment or to accept any other position or employment with any member of the Company Group, Suzano Parent or any of its Affiliates or (ii) hire or assist any other Person in hiring any such employee; <u>provided</u>, <u>however</u>, that this <u>Section 12.3(c)</u> (A) shall not apply to such employees who have ceased to be employed by K-C Parent or any of its Affiliates for at least six (6) months before the commencement of any solicitation or encouragement by Suzano Parent and its Affiliates otherwise prohibited by this <u>Section 12.3(c)</u>, (B) shall not prohibit general solicitations for employment through advertisements or other means not specifically directed toward such employees of K-C Parent or its Affiliates, and (C) shall not prohibit hiring resulting from generalized searches for employees through the use of bona fide public advertisements in the media or any recruitment efforts conducted by any recruitment agency not specifically directed toward such employees of K-C Parent or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;From the date hereof until the date on which K-C (or any of its Permitted Transferees) no longer owns, directly or indirectly, any Shares, (x) Suzano Parent shall not engage in the Business (other than through the Company Group) in any jurisdiction or country in which the Company operates or sells its products as of the date hereof and (y) Suzano Parent and the Company Group shall not engage in the Business in the United States of America (excluding Puerto Rico), Canada, Korea, Mexico, Saudi Arabia, Bahrain, Qatar, Kuwait, Oman, the United Arab Emirates or Bolivia, in each case, without K-C's prior written consent (such consent not be unreasonably withheld, delayed or conditioned) or except as otherwise permitted by this Agreement; <u>provided</u>, <u>however</u>, that this <u>Section 12.3(d)</u> shall not prevent Suzano Parent or any of its Affiliates from (i) holding or making any investments not in excess of two percent (2%) of the outstanding securities of any publicly traded entity that is engaged in the Business anywhere in the world; <u>provided</u> that neither Suzano Parent nor its Affiliates has any active or controlling participation in the business of such entity, (ii) indirectly owning securities through ownership of shares the management of which is conducted by a registered investment company or mutual fund, (iii) taking any actions required to comply with the Company Transfer Agreements or any Ancillary Agreements (each, as defined in the EAPA), (iv) participating in, and in the activities of, the Company Group as expressly required to comply with this Agreement, the EAPA and the Ancillary Agreements (as defined in the EAPA), or (v) acquiring, in connection with its operations and, following such acquisition, continuing to hold or own a business or Person which also has a business line or division that is engaged in the Business in any jurisdiction or country in which the Company operates or sells its products as of the date hereof; <u>provided</u> that for so long as Suzano (or any of its Permitted Transferees) owns, directly or indirectly, any Shares, Suzano Parent shall, and shall cause its applicable Affiliates to, contribute such business line or division to the Company or one of its Subsidiaries designated by Suzano (as agreed by K-C) on arm's length terms and conditions to be negotiated in good faith between K-C and Suzano (on its behalf and on behalf of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Each of Suzano and the Company agrees that, for the three (3)-year period following the date of this Agreement, neither the Company nor any of its Affiliates shall directly or indirectly use the trademarks included in the Transferred Intellectual Property (as defined in the EAPA) in connection with the sale of any products set forth on <u>Schedule 12.3(e)</u> that are sold by K-C and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto acknowledge that the restrictions set forth in this <u>Section 12.3</u> are reasonable in scope, geographic area and duration. The parties hereto further acknowledge that the

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restrictions set forth in this <u>Section 12.3</u>, including with respect to scope, geographic area and duration, are necessary, reasonable and fair in all respects to protect Suzano's and K-C's significant investment in the Business, including its goodwill, and that Suzano and K-C would not enter into this Agreement without the restrictions contained in this <u>Section 12.3</u>. It is the desire and intent of the parties hereto that the provisions of this <u>Section 12.3</u> be enforced to the fullest extent permissible under applicable Law. It is expressly further understood and agreed that although K-C Parent, K-C, Suzano Parent and Suzano consider such covenants to be necessary, fair and reasonable, if a judicial determination is made by a court of competent jurisdiction that the time period or any other restriction contained in <u>Section 12.3</u> is an invalid or unenforceable restriction against K-C Parent or any of its Affiliates or Suzano Parent or any of its Affiliates, as applicable, the provisions of <u>Section 12.3(a)</u> or <u>Section 12.3(d)</u>, as applicable, shall not be rendered void but shall be deemed amended to apply to such maximum time period and to such maximum extent as such court may judicially determine or indicate to be enforceable. Therefore, the parties hereto agree that money damages would not be a sufficient remedy for any threatened or actual breach of <u>Section 12.3(a)</u> by K-C Parent or <u>Section 12.3(d)</u> by Suzano Parent or any of their respective Affiliates, and that, in addition to all other remedies it may be entitled to, the non-breaching party shall be entitled to specific performance, or injunctive or other equitable relief in order to enforce or prevent any breach of this <u>Section 12.3</u> without the requirement of posting a bond, other security or any similar requirement. The time period that <u>Section 12.3(a)</u> shall be in effect shall be extended by the length of any period during which K-C Parent or any of its Affiliates is in breach of the terms of <u>Section 12.3(a)</u>, and the time period that <u>Section 12.3(d)</u> shall be in effect shall be extended by the length of any period during which Suzano Parent or any of its Affiliates is in breach of the terms of <u>Section 12.3(d)</u>.

Section 12.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Informal Dispute Resolution Process</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 9.4(c)</u> and <u>Section 9.4(h)(iii)</u>, all Disputes between the Shareholders shall be resolved in accordance with the dispute resolution procedures set forth in this <u>Section 12.4</u>. Notwithstanding the foregoing, (i) the Shareholders may at any time seek injunctive relief from a court of competent jurisdiction, and (ii) nothing herein shall prevent a Shareholder from defending or pursuing any claim or cause of action in a court or other proceeding against a third party that has been initiated by such third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a Dispute between the Suzano Directors and the K-C Directors in their capacity as a Director with respect to a Veto Matter decided by the Board pursuant to <u>Section 5.7</u>, the Suzano Directors and the K-C Directors will use all reasonable best efforts to reach a satisfactory resolution by referring the Dispute to the Shareholders. In the event the Shareholders are unable to resolve such Dispute within ten (10) days or of a Dispute between the Shareholders, the Shareholders will use all reasonable best efforts to reach a satisfactory resolution by referring the Dispute to senior management of Suzano Parent and K-C Parent. Senior management of Suzano Parent and K-C Parent (or the ultimate parent entity of any Permitted Transferee) will meet as soon as possible, on no less than seven (7) days' written notice, unless specifically agreed otherwise, and shall enter into negotiations in good faith aimed at resolving any such Dispute. Senior management of Suzano Parent and K-C Parent (or the ultimate parent entity of any Permitted Transferee) shall examine any submissions by the Shareholders, and shall, if the Dispute cannot be resolved immediately, agree to convene for further negotiations aimed at resolving the Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event that senior management of Suzano Parent and K-C Parent (or the ultimate parent entity of any Permitted Transferee) is unable to resolve the Dispute within twenty (20) days after commencement of negotiation by such senior management, then, at the request of any Shareholder, such Dispute shall be submitted to the chief executive officer of each of K-C Parent and Suzano Parent (or the ultimate parent entity of any Permitted Transferee), who shall meet as soon as reasonably practicable (but in any event no later than ten (10) days after the expiration of the twenty (20)-day period referred to in this <u>Section 12.4(c)</u>) and use reasonable best efforts to resolve the issue subject to the deadlock. If there is no resolution at the meeting between the chief executive officers of each of K-

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C Parent and Suzano Parent (or the ultimate parent entity of any Permitted Transferee) (or following any further mutually agreed period), the status quo will prevail.

**ARTICLE XIII <br>MISCELLANEOUS**

Section 13.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Shareholder (i) shall, and shall direct its officers, directors, managers, principals, employees, attorneys, accountants, auditors, advisors, bankers and agents to the extent such Persons have received any Confidential Information (as defined herein) (collectively, "**Representatives**") and use its reasonable best efforts to cause its Affiliates and their Representatives, to the extent such Persons have received any Confidential Information, to maintain in strictest confidence the existence and terms of this Agreement and any and all information relating to the Company Group or the other Shareholders that is confidential, non-public or proprietary information of, or that constitutes trade secrets of, the Company Group or the other Shareholders, as applicable, including (A) any information about properties, employees, finances, businesses and operations of the Company Group or the other Shareholders; (B) any financial, commercial, technical or other information relating to the Company Group; (C) any information or knowledge pertaining to any existing projects or projects in development of the Company Group; (D) the identity of and any information pertaining to any Person with which the of the Company Group, the other Shareholders or their respective Affiliates have a business relationship or prospective business relationship; (E) the terms, conditions and prices of any contract between the Company Group and any other Person; (F) information pertaining to employees, and contractors; (G) any information about products, formulae, specifications, designs, processes, inventions, discoveries, technologies, trademarks, patents and know-how of the Company Group; and (H) all notes, analyses, compilations, studies, forecasts, interpretations or other documents prepared by a receiving Shareholder or its Representatives which contain, reflect or are based upon, in whole or in part, the information furnished to or acquired by such Shareholder ("**Confidential Information**"), and (ii) other than as permitted by <u>Section 13.1(b)</u>, shall not disclose, and shall cause its controlled Affiliates, and shall direct its Representatives, its Directors and their respective Representatives not to disclose, any Confidential Information to any Person other than to the other Shareholders and the Company Group (including the agents, employees and attorneys thereof and the Affiliates and their Representatives), except only to the extent such disclosure is (x) required by applicable Law or legal process (including pursuant to any listing agreement with, or the rules or regulations of, any national securities exchange on which any securities of such Shareholder (or any Affiliate thereof) are listed or traded or the Securities Exchange Act of 1934, as amended, or any other securities Laws applicable to such Shareholder or its Affiliates), (y) to a credit rating agency or to a taxing authority or (z) to the extent necessary for the purposes of a Shareholder's or its Affiliates' Tax, accounting and similar reporting requirements, in which event the Shareholder making such disclosure or whose Affiliates or Representatives are making such disclosure shall so notify the other Shareholders as promptly as practicable (and if possible, prior to making such disclosure) to the extent permitted by applicable Law and shall seek confidential treatment of such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding <u>Section 13.1(a)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Any Shareholder or any Representative thereof may disclose any Confidential Information for bona fide business purposes on a strict "need to know" basis to its Affiliates, its board of directors (or equivalent governing body), its Representatives and its and its Affiliates lenders (to the extent required for the compliance with its obligations under any existing or contemplated financing arrangements); <u>provided</u> that in each such case each such Person agrees to keep such Confidential Information confidential in the manner set forth in this <u>Section 13.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Any Shareholder may disclose any Confidential Information in connection with any proposed Transfer of its Shares (to the extent permitted by the terms of this

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Agreement) to any Person to which such Shares may be Transferred without consent of the Board or the Shareholders, but only after any such Person agrees to keep such Confidential Information confidential in a manner no less restrictive than the terms of this <u>Section 13.1</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of <u>Section 13.1(a)</u> shall not apply to, and Confidential Information shall not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;any information that is or has become generally available to the public other than as a result of a disclosure by any Shareholder or any Affiliate or Representative thereof in breach of any of the provisions of this <u>Section 13.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;any information that a Shareholder can reasonably demonstrate has been independently developed by such Shareholder (or any Affiliate thereof) without (x) reference to any Confidential Information or (y) violating any of the provisions of this Agreement or any other obligation of confidentiality or secrecy to which such Shareholder is bound; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;any information made available to such Shareholder (or any Affiliate thereof), on a non-confidential basis by any third party who is not known by the Shareholder (after reasonable inquiry) to be prohibited from disclosing such information to such Shareholder by a legal, contractual or fiduciary obligation to the other Shareholder or any of its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly provided for in this <u>Section 13.1</u>, Confidential Information received hereunder shall be used by each Shareholder and its Affiliates solely for use in connection with such Shareholder's investment in the Company and with respect to the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Following the date on which a Person ceases to be a Shareholder, upon written demand by the Company, such Person shall use its commercially reasonable efforts to, as a promptly as practicable, return to the Company or destroy (at such Person's sole option) all Confidential Information then held by it, its Affiliates and any Third Party that has acquired such Confidential Information through such Person, and confirm to the Company and the other Shareholder that it has complied with the requirements of this <u>Section 13.1(d)</u>. Subject to the provisions of this <u>Section 13.1</u>, each Shareholder shall be permitted to retain (i) copies of documents as (x) reasonably required in order to comply with existing written bona fide document retention policies and (y) reasonably anticipated to be reasonably required in connection with any future audits or requests from Tax authorities, auditors or other regulatory bodies, applicable Law or the requirements of any relevant Governmental Authority and (ii) copies of documents and information contained in any electronic file created pursuant to any routine backup or archiving procedure so long as such file is not generally accessible beyond the need for disaster recovery or similar operations; <u>provided</u> that such copies and information are treated as Confidential Information and the provisions of this <u>Section 13.1</u> apply thereto for a duration of three (3) years following the date on which such Person ceases to be a Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The obligations of each Shareholder under this <u>Section 13.1</u> shall survive for (i) so long as such Shareholder remains a Shareholder, and for three (3) years after such Shareholder ceases to be a Shareholder or (ii) in the case of information constituting confidential know-how, such obligations shall apply indefinitely, for so long as such information continues to derive economic value from its confidential nature, in each case, notwithstanding the termination of the Company, such Shareholder's Transfer of its Shares, the withdrawal by such Shareholder from the Company and/or any Person ceasing to be an Affiliate of such Shareholder.

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Section 13.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Articles of Association</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To the extent that this Agreement contains terms or conditions in respect of matters for which the Articles of Association attributes to the General Meeting an authority to specify, stipulate, regulate or otherwise resolve, this Agreement is deemed to constitute a unanimous resolution of the General Meeting for that purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that the Articles of Association, including their respective rights and obligations thereunder, will at any time be interpreted and construed in accordance with this Agreement. If there is a conflict between a provision of this Agreement and a provision of the Articles of Association, the parties hereto agree to reconcile the same so as to give maximum effect to the provisions and purposes of this Agreement and will in this event, at the first request of any party hereto, discuss the amendment of the Articles of Association if necessary or suitable to the full implementation of this Agreement in all respects.

Section 13.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties of the Company</u>. As of the date of this Agreement, the Company represents and warrants to the Shareholders as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization, Qualification and Authority</u>. The Company is a corporation duly organized, validly existing and (to the extent applicable) in good standing or the local equivalent under the Laws of its jurisdiction of organization and has all necessary power and authority to enter into, execute and deliver this Agreement and to perform its obligations hereunder. The Company is duly licensed or qualified to do business and is in good standing (or local equivalent, if applicable) as a foreign corporation or other legal entity in each jurisdiction in which it operates the Business, except where the failure to be so qualified or licensed would not, individually or in the aggregate, reasonably be expected to materially adversely affect the ability of the Company to carry on the Business as it is currently being conducted or as is proposed to be conducted. The execution, delivery and performance by the Company of this Agreement has been duly and validly authorized by all necessary corporate action on the part of the Company, and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement. This Agreement has been duly executed and delivered by the Company and, assuming due execution and delivery by each of the other parties hereto, constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Conflict</u>. The execution, delivery and performance by the Company of this Agreement do not and will not: (i) conflict with or violate the organizational documents of the Company; (ii) conflict with or violate any Law applicable to the Company or by which the Company may be bound or affected; (iii) conflict with, result in any breach of, constitute a default (or an event that, with or without notice or lapse of time or both, would become a default) under, or require any consent of any Person pursuant to, result in the triggering of any payment or other obligation or loss of any right or benefit under, or give to others any right of termination, amendment, modification, acceleration or cancellation under, any contract, instrument or other agreement to which or by which the Company is a party or otherwise subject or bound; or (iv) result in the creation or imposition of any Encumbrance (other than Permitted Encumbrances) upon the Business or any of the assets or properties of the Company, except, in the case of <u>clauses (ii)</u>, <u>(iii)</u> or <u>(iv)</u>, for any such conflicts, violations, breaches, defaults or other occurrences that would not, individually or in the aggregate, reasonably be expected to be material to the Company or prevent, materially delay or materially impede the performance by the Company of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Required Filings and Consents</u>. The Company is not required to file, seek or obtain any notice, authorization, approval, order, permit or consent of or with any Governmental Authority in connection with the execution, delivery and performance by the Company of this Agreement, except

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where failure to obtain such consent, approval, authorization or action, or to make such filing or notification, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (as defined in the EAPA) or prevent, materially delay or materially impede the performance by the Company of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investment Company Status</u>. The Company is not an "investment company" within the meaning of the U.S. Investment Company Act of 1940, as amended.

Section 13.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. All notices and other communications hereunder shall be in writing and shall be deemed duly given on the date of delivery to the recipient thereof if received prior to 5:00 p.m. in the place of delivery and such day is a Business Day (or otherwise on the next succeeding Business Day) (a) if delivered personally or by e-mail (provided no "out-of-office," "bounceback" or "notice of non-delivery" is received), or (b) if delivered utilizing a next-day service by an internationally recognized next-day courier. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:

[NewCo]<br>[Address]<br>Attention: &nbsp;&nbsp;&nbsp;&nbsp;[__________]<br>Email: &nbsp;&nbsp;&nbsp;&nbsp;[__________]

with a copy (which shall not constitute notice) to:

Freshfields US LLP

3 World Trade Center

175 Greenwich Street

New York, NY 10007

Attention: [__________]

Email: [__________]

with a copy (which shall not constitute notice) to<br>each of Suzano and K-C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;if to a Shareholder, then to the mailing address or email address set forth opposite such Shareholder's name on <u>Schedule I</u> attached hereto.

Section 13.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Public Announcements</u>. The parties hereto shall not (and shall cause such party's Affiliates not to) issue any press release or make any public statement or announcement in respect of this Agreement prior to obtaining the written approval of the other parties hereto, which approval shall not be unreasonably withheld, except that no such approval shall be necessary to the extent disclosure is required by applicable Law or any listing agreement of either Suzano or K-C so long as the disclosing party gives the other parties hereto a reasonable opportunity to review and comment prior to making such disclosure.

Section 13.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Cumulative Remedies</u>. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

Section 13.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Parties in Interest</u>. This Agreement shall be binding upon and inure solely to the benefit of all of the parties hereto, and nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the parties hereto and their respective successors and

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permitted assigns any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, except with respect to the provisions of <u>Article XI</u> and <u>Section 13.18</u>, which shall inure to the benefit of the Persons benefiting therefrom who are intended to be third party beneficiaries.

Section 13.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

Section 13.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other parties hereto.

Section 13.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Signature</u>. This Agreement may be executed electronically (including by means of .pdf or similar graphic reproduction format or by means of digital signature software, e.g., DocuSign or Adobe Sign) and delivered by e-mail or other similar means of electronic transmission, and any electronic signature shall constitute an original for all purposes.

Section 13.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>. This Agreement (including the Exhibits and Schedules hereto) and the EAPA constitute the entire agreement, and supersede all prior written agreements, arrangements, communications and understandings and all prior and contemporaneous oral agreements, arrangements, communications and understandings between the parties hereto with respect to the subject matter hereof and thereof. None of this Agreement nor the EAPA shall be deemed to contain or imply any restriction, covenant, representation, warranty, agreement or undertaking of any party hereto with respect to the transactions contemplated hereby or thereby other than those expressly set forth herein or therein or in any document required to be delivered hereunder or thereunder, and none shall be deemed to exist or be inferred with respect to the subject matter hereof. Notwithstanding any oral agreement or course of conduct of the parties hereto or their Representatives to the contrary, no party hereto shall be under any legal obligation to enter into or complete the transactions contemplated hereby unless and until this Agreement shall have been executed and delivered by each of the parties hereto.

Section 13.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. This Agreement and any claims or causes of action arising out of or relating to this Agreement, the negotiation, execution or performance of this Agreement or the transactions contemplated hereby (whether in contract, in tort, under statute or otherwise) shall be governed by, and interpreted, construed and enforced in accordance with, the internal Laws of the State of Delaware, including its statutes of limitations, without giving effect to any choice or conflict of Laws rules or provisions (whether of the State of Delaware or any other jurisdiction) that would result in the application of the Laws of any jurisdiction other than the State of Delaware, except (a) to the extent that a Law of the Kingdom of the Netherlands is mandatorily applicable to this Agreement, and (b) all matters relating to the fiduciary duties of the Company shall be subject solely to the Laws of the Kingdom of the Netherlands.

Section 13.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Arbitration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 9.4(c)</u>, <u>Section 9.4(h)(iii)</u> and <u>Section 12.4</u>, any dispute, controversy or claim arising out of, relating to or in connection with any provision of this Agreement, or the rights or obligations of the parties hereto (a "**Dispute**"), shall be resolved by three arbitrators in accordance with the Rules of Arbitration of the International Chamber of Commerce (the "**ICC Rules**") in effect at the time of the commencement of arbitration. The claimant shall nominate an arbitrator in its

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request for arbitration. The respondent shall nominate an arbitrator within thirty (30) days of the receipt of the request for arbitration. The two arbitrators nominated by the parties shall nominate a third arbitrator within thirty (30) days after the nomination of the later-nominated arbitrator. The third arbitrator shall act as president of the tribunal. If any of the three arbitrators are not nominated within the time prescribed above, then the ICC shall appoint the arbitrator(s) in accordance with the ICC Rules. The seat of the arbitration shall be New York, NY, and the language of the arbitration shall be English. The award shall be final and binding on the parties and may be enforced in any court of competent jurisdiction. Notwithstanding anything in the ICC Rules to the contrary, all fees and expenses (including attorney fees and disbursement) incurred in connection with or during the arbitral proceedings shall be borne by the party unsuccessful in the arbitration, and the arbitral tribunal shall so order in its award. Any arbitration commenced hereunder may be consolidated in accordance with the provisions of the ICC Rules with any other arbitration commenced under this Agreement, the EAPA, or any Ancillary Agreement (as defined in the EAPA) even if the identities of the parties to each arbitration are not the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The existence of the arbitration, any non-public information provided in the arbitration, and any submissions, orders or awards made in the arbitration shall not be disclosed to any non-party except the tribunal, the ICC, the parties, their counsel, experts, witnesses, accountants and auditors, insurers and reinsurers, and any other person necessary to the conduct of the arbitration. Notwithstanding the foregoing, a party may disclose the existence of the arbitration, any non-public information provided in the arbitration, and any submissions, orders or awards made in the arbitration to the extent that disclosure may be required to fulfill a legal duty, protect or pursue a legal right, or enforce or challenge an award in bona fide legal proceedings.

Section 13.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Specific Performance</u>. The parties hereto acknowledge and agree that the parties hereto would be irreparably damaged if any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached and that any non-performance or breach of this Agreement by any party hereto could not be adequately compensated by monetary damages alone and that the parties hereto would not have any adequate remedy at law. Accordingly, in addition to any other right or remedy to which any party hereto may be entitled, at law or in equity (including monetary damages), such party shall be entitled to enforce any provision of this Agreement by a decree of specific performance and to temporary, preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this Agreement, without proof of actual damages or posting any bond or other undertaking. The parties hereto agree that they will not contest the appropriateness of specific performance as a remedy or assert that a remedy of monetary damages would provide an adequate remedy for any breach or threatened breach of this Agreement.

Section 13.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Expenses</u>. Except as otherwise specified in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial and other advisors and accountants, incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be borne by the party incurring such costs and expenses.

Section 13.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments and Modification; Waiver</u>. This Agreement may not be amended, modified, supplemented or waived in any manner, whether by course of conduct or otherwise, except by an instrument in writing specifically designated as an amendment or waiver hereto, signed on behalf of each party hereto. No failure or delay of any party hereto in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power.

Section 13.17&nbsp;&nbsp;&nbsp;&nbsp;<u>No Presumption Against Drafting Party</u>. Each of the parties hereto acknowledges that each party has been represented by legal counsel in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the drafting party has no application and is expressly waived.

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Section 13.18&nbsp;&nbsp;&nbsp;&nbsp;<u>No Recourse</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Nothing in this <u>Section 13.18</u> shall amend or modify any right against any party to, or obligation of any party to, this Agreement or the EAPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 13.18(a)</u>, each Shareholder, by its acceptance of the benefits of this Agreement, covenants, agrees and acknowledges, for itself and on behalf of each of its Affiliates, that with respect to the obligations of each other Shareholder hereunder or, to the extent applicable, under the EAPA or the obligations of any Affiliate of such Shareholder party to such agreements, no Persons other than such Shareholder or its Affiliates party to this Agreement or, to the extent applicable, the EAPA, shall have any obligation hereunder or thereunder and neither such other Shareholders nor any of their Affiliates have any rights of recovery hereunder or thereunder against, and no recourse hereunder or thereunder or in respect of any oral representations made or alleged to be made in connection herewith or therewith shall be had against, any former, current or future director, officer, agent, Affiliate, manager, assignee, incorporator, controlling Person, fiduciary, representative or employee of such Shareholder (or any of its successors or permitted assignees), against any former, current or future general or limited partner, manager, stockholder or Shareholder of such Shareholder (or any of its successors or permitted assignees) or any Affiliate thereof or against any former, current or future director, officer, agent, employee, Affiliate, manager, assignee, incorporator, controlling Person, fiduciary, representative, general or limited partner, stockholder, manager or Shareholder of any of the foregoing, but in each case not including such Shareholder or, if applicable, the Affiliate party to this Agreement or the EAPA (each, but excluding for the avoidance of doubt, such Shareholder or, if applicable, the Affiliate party to this Agreement or, to the extent applicable, the EAPA, a "**Shareholder Affiliate**"), whether by or through attempted piercing of the corporate veil, by or through any proceeding (whether in tort, contract or otherwise) brought by or on behalf of such other Shareholder against any Shareholder Affiliate, by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable Law or otherwise; it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any Shareholder Affiliate, as such, for any obligations of the applicable Shareholder or its Affiliates under this Agreement or the EAPA, in respect of any oral representations made or alleged to be made in connection herewith or therewith, or for any proceeding (whether in tort, contract or otherwise) based on, in respect of, or by reason of, such obligations or representations or their creation.

Section 13.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Tax Matters</u>. Certain Tax matters (including with respect to the maintenance of Capital Accounts and allocations of Nets Profits and Net Losses for U.S. federal income Tax purposes) are set forth in the Tax Annex.

Section 13.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Guaranty</u>. Suzano Parent hereby absolutely, unconditionally and irrevocably guarantees Suzano's obligation under <u>Section 9.4</u> to pay the Call Option Purchase Price at the Call Option Closing (the "**Guaranteed Obligations**") in the event that Suzano does not satisfy such obligations. This guarantee is valid and in full force and effect and constitutes the valid and binding obligation of Suzano Parent, enforceable in accordance with its terms. This guarantee is an irrevocable guarantee of payment (and not just of collection) and shall continue in effect notwithstanding any extension or modification of the terms of this Agreement (except to the extent such extension or modification affects Suzano's obligations hereunder) or any assumption without the consent of K-C of any such Guaranteed Obligation by any other party hereto. Subject to applicable Law, the obligations of Suzano Parent hereunder shall not be affected by or contingent upon (a) the liquidation or dissolution of, or the merger or consolidation of Suzano with or into any Person or any sale or transfer by Suzano of all or any part of its property or assets, (b) the bankruptcy, receivership, insolvency, reorganization or similar proceedings involving or affecting Suzano, (c) any modification, alteration, amendment or addition of or to this Agreement (except to the extent such modification, alteration, amendment or addition affects Suzano's obligations hereunder and then only to such extent) or (d) any disability or any other similar defense of Suzano, Suzano Parent or any other Person (with or without notice) which might otherwise constitute a legal or equitable discharge of a surety or Suzano Parent in its capacity as a guarantor

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hereunder. In connection with the foregoing, except for the defense of payment, Suzano Parent waives all defenses and discharges it may have or otherwise be entitled to as a guarantor or surety and further waives presentment for payment or performance, notice of nonpayment or nonperformance, demand, diligence or protest. Suzano Parent hereby represents and warrants that Suzano Parent will have funds sufficient to satisfy all of its obligations under this <u>Section 13.20</u>. K-C entered into this Agreement in reliance upon this <u>Section 13.20</u>. Suzano Parent acknowledges that it will receive substantial direct and indirect benefits from the transactions contemplated hereby and that the waivers and agreements by Suzano Parent set forth in this <u>Section 13.20</u> are knowingly made in contemplation of such benefits.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers, in each case as of the date first written above.

**[NEWCO]**<br>By: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;Name: <br>&nbsp;&nbsp;&nbsp;&nbsp;Title:

**SUZANO INTERNATIONAL HOLDING B.V.**<br>By: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;Name: <br>&nbsp;&nbsp;&nbsp;&nbsp;Title:

**SUZANO S.A.**, solely for purposes of <u>Section 2.12</u>, <u>Section 9.4</u>, <u>Section 12.3</u> and <u>Section 13.20</u>****<br>By: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;Name: <br>&nbsp;&nbsp;&nbsp;&nbsp;Title:

**[K-C]**<br>By: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;Name: <br>&nbsp;&nbsp;&nbsp;&nbsp;Title:

**KIMBERLY-CLARK CORPORATION**, solely for purposes of <u>Section 2.12</u>, <u>Section 9.4</u> and <u>Section 12.3</u>****<br>By: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;Name: <br>&nbsp;&nbsp;&nbsp;&nbsp;Title:

Signature Page to Amended and Restated Limited Liability Company Agreement

## Ex-31.A

**Exhibit (31)a**

**CERTIFICATIONS**

I, Michael D. Hsu, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Kimberly-Clark Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| | /s/ Michael D. Hsu |
| | Michael D. Hsu |
| | Chairman of the Board and Chief Executive Officer |
| August 1, 2025 | |

---

## Ex-31.B

**Exhibit (31)b**

**CERTIFICATIONS**

I, Nelson Urdaneta, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Kimberly-Clark Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| | /s/ Nelson Urdaneta |
| | Nelson Urdaneta |
| | Senior Vice President and Chief Financial Officer |
| August 1, 2025 | |

---

## Ex-32.A

**Exhibit (32)a**

**<u>Certification of Chief Executive Officer</u>**

**<u>Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code</u>**

I, Michael D. Hsu, Chairman of the Board and Chief Executive Officer of Kimberly-Clark Corporation, certify that, to my knowledge:

(1)the Form 10-Q, filed with the Securities and Exchange Commission on August 1, 2025 ("accompanied report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the accompanied report fairly presents, in all material respects, the financial condition and results of operations of Kimberly-Clark Corporation.

---

| | |
|:---|:---|
| | /s/ Michael D. Hsu |
| | Michael D. Hsu |
| | Chairman of the Board and Chief Executive Officer |
| August 1, 2025 | |

---

## Ex-32.B

**Exhibit (32)b**

**<u>Certification of Chief Financial Officer</u>**

**<u>Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code</u>**

I, Nelson Urdaneta, Senior Vice President and Chief Financial Officer of Kimberly-Clark Corporation, certify that, to my knowledge:

(1)the Form 10-Q, filed with the Securities and Exchange Commission on August 1, 2025 ("accompanied report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the accompanied report fairly presents, in all material respects, the financial condition and results of operations of Kimberly-Clark Corporation.

---

| | |
|:---|:---|
| | /s/ Nelson Urdaneta |
| | Nelson Urdaneta |
| | Senior Vice President and Chief Financial Officer |
| August 1, 2025 | |

---

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