# EDGAR Filing Document

**Accession Number:** 0001699136
**File Stem:** 0001104659-25-055263
**Filing Date:** 2025-6
**Character Count:** 762662
**Document Hash:** 4ffb102e53d501702e194d433b791b68
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-055263.hdr.sgml**: 20250602

**ACCESSION NUMBER**: 0001104659-25-055263

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 30

**CONFORMED PERIOD OF REPORT**: 20250602

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250602

**DATE AS OF CHANGE**: 20250602

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cactus, Inc.
- **CENTRAL INDEX KEY:** 0001699136
- **STANDARD INDUSTRIAL CLASSIFICATION:** OIL & GAS FILED MACHINERY & EQUIPMENT [3533]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 352586106
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38390
- **FILM NUMBER:** 251013257

**BUSINESS ADDRESS:**
- **STREET 1:** 920 MEMORIAL CITY WAY
- **STREET 2:** SUITE 300
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77024
- **BUSINESS PHONE:** 713-626-8800

**MAIL ADDRESS:**
- **STREET 1:** 920 MEMORIAL CITY WAY
- **STREET 2:** SUITE 300
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77024

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(D) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): June 2, 2025**

**Cactus, Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-38390** | **35-2586106** |
| (State or other jurisdiction of <br> incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

**920 Memorial City Way, Suite 300**

**Houston, Texas 77024**

(Address of principal executive offices)

(Zip Code)

**(713) 626-8800**

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Class A Common Stock, par value $0.01 | WHD | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp;◻

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. ◻

---

| | |
|:---|:---|
| **Item 1.01** | **Entry into a Material Definitive Agreement.** |

---

***Framework Agreement***

On June 2, 2025, Cactus Companies, LLC ("<u>Cactus Companies</u>"), a subsidiary of Cactus, Inc. (the "<u>Company</u>"), entered into a Framework Agreement (the "<u>Framework Agreement</u>") with Baker Hughes Holdings LLC ("<u>Baker Hughes Holdings</u>") and Baker Hughes Pressure Control LP ("<u>Baker Hughes Pressure Control</u>"), each of which is an indirect subsidiary of Baker Hughes Company ("<u>Baker Hughes Company</u>"), pursuant to which the Company will acquire Baker Hughes Company's surface pressure control business as described below.

Prior to the closing of the transactions contemplated by the Framework Agreement (the "<u>Closing</u>"), Baker Hughes Holdings will effect certain restructuring transactions on the terms and subject to the conditions set forth in the Framework Agreement (the "<u>Restructuring Transactions</u>"), as a result of which Baker Hughes Pressure Control or certain of its subsidiaries will own the Business Assets and the Business Liabilities (each as defined in the Framework Agreement) (collectively, the "<u>Acquired Business</u>"). Also, as part of the Restructuring Transactions, Baker Hughes Pressure Control will convert from a Texas limited partnership to a Delaware limited liability company.

At Closing and pursuant to the Framework Agreement, Baker Hughes Holdings or one or more affiliates thereof will sell 65% percent of the limited liability company membership interests in Baker Hughes Pressure Control ("<u>Membership Interests</u>") to Cactus Companies or an affiliate thereof for a cash purchase price of $344,500,000 (on a debt-free, and, except as noted below, cash-free basis), subject to certain working capital, cash, debt, capital expenditure and other customary adjustments after Closing (the "<u>Purchase Price</u>" and such transaction, the "<u>Transaction</u>"). The Framework Agreement provides that Baker Hughes Pressure Control will retain minimum cash of approximately $70,000,000 (the "<u>Minimum Cash Amount</u>"), and the Purchase Price will be increased by 65% of the Minimum Cash Amount. Of the remaining 35% of the Minimum Cash Amount, $10,000,000 will be paid on the first anniversary of the Closing and the balance, $14,500,000, at such time as Baker Hughes Company ceases to own directly or indirectly Membership Interests.

At Closing, the applicable Company affiliate(s) and Baker Hughes Company affiliate(s) will enter into an amended and restated limited liability company agreement of Baker Hughes Pressure Control (the "<u>LLC Agreement</u>"), which will provide that, among other things, from and after the second anniversary of the Closing, the Company has the right to acquire, and Baker Hughes Company has the right to compel the Company or Baker Hughes Pressure Control to acquire, the Membership Interests held directly or indirectly by Baker Hughes Company. The purchase price will be based on an enterprise value of Baker Hughes Pressure Control using a multiple of six times its Adjusted EBITDA (as defined and calculated pursuant to the LLC Agreement), subject to a maximum valuation of $660,000,000, and if the Company elects to acquire the Membership Interests, a minimum valuation of $530,000,000.

Certain additional agreements will be entered into in connection with the Closing, including, among others, intellectual property licenses and a Transition Services Agreement.

Under the Framework Agreement, Baker Hughes Holdings and Cactus Companies have made customary representations and warranties and have agreed to be bound to customary covenants for transactions of this type, including committing to use commercially reasonable efforts to obtain necessary permits and approvals. Apart from certain fundamental representations, the representations and warranties will not survive the Closing. Instead, to provide for coverage against certain breaches by Baker Hughes Holdings of its representations and warranties, Cactus Companies has obtained a representation and warranty insurance policy. The policy is subject to a retention amount, exclusions, policy limits and certain other customary terms and conditions.

The completion of the Transaction is subject to customary closing conditions, including, among others: (a) the expiration or termination of any applicable waiting period under certain competition laws and the obtainment of all regulatory clearances under such competition laws, (b) the absence of certain laws or orders of governmental authorities prohibiting the consummation of the Closing, (c) in the case of Cactus Companies' and Baker Hughes Holdings' obligations to consummate the Closing, the accuracy of Baker Hughes Holdings' and Cactus Companies', respectively, representations and warranties contained in the Framework Agreement, (d) material compliance by Baker Huges Holdings, Baker Hughes Pressure Control and Cactus Companies with their respective obligations under the Framework Agreement, and (e) the absence of a material adverse effect with respect to the Acquired Business. The obligation of Cactus Companies to complete the Transaction is also subject to (a) the delivery to Cactus Companies by Baker Hughes Holdings of audited financial statements of the Acquired Business for the year ended December 31, 2024 and (b) the material completion of the Restructuring Transactions.

The Framework Agreement contains customary termination rights for the parties thereto, including by the mutual consent of Baker Hughes Holdings, Baker Hughes Pressure Control and Cactus Companies, and under certain other circumstances, including by either Baker Hughes Holdings or Cactus Companies, if the Closing has not been consummated on or before December 31, 2025 or, if the only condition remaining unsatisfied is the expiration or termination of any applicable waiting period under certain competition laws and the obtainment of all regulatory clearances under such competition laws, March 31, 2026.

The Framework Agreement is not subject to any financing condition. The Company expects to utilize cash on hand (approximately $348,000,000 as of March 31, 2025) and funds from the undrawn ABL Credit Facility (as amended by the ABL Credit Facility Amendment (each as defined below)) to fund the Purchase Price. The Company may elect to pursue one or more debt financing transactions prior to the Closing to preserve liquidity.

Subject to satisfaction of the closing conditions, the Transaction is expected to close in the second half of 2025.

The foregoing descriptions of the Framework Agreement and the LLC Agreement are summaries of the material terms thereof, do not purport to be complete and are qualified in their entirety by reference, as applicable, to the complete text of the Framework Agreement, a copy of which is filed as Exhibit 2.1 to this Current Report and is incorporated herein by reference, and the Form of LLC Agreement, a copy of which is filed as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

The Framework Agreement and the above description have been included in this Current Report to provide investors and stockholders with information regarding the terms of the Framework Agreement. These disclosures are not intended to provide any other factual information about the Company, Cactus Companies, Baker Hughes Company, Baker Hughes Holdings, Baker Hughes Pressure Control, or their respective subsidiaries, affiliates, businesses, or equityholders. The representations, warranties and covenants contained in the Framework Agreement were made only for purposes of the Framework Agreement and as of specific dates; were solely for the benefit of the parties to the Framework Agreement; and may be subject to limitations agreed upon by the parties thereto, including being qualified by confidential disclosures made by each contracting party to the others for the purposes of allocating contractual risk between them that differ from those applicable to investors. Investors should be aware that the representations, warranties and covenants or any description thereof may not reflect the actual state of facts or conditions of the Company, Cactus Companies, Baker Hughes Company, Baker Hughes Holdings, Baker Hughes Pressure Control, or any of their respective subsidiaries, affiliates, businesses, or equityholders. Investors are not third-party beneficiaries under the Framework Agreement and should not rely on the representations, warranties and covenants contained in the Framework Agreement or any descriptions thereof as characterizations of the actual state of facts or condition of the Company, Cactus Companies, Baker Hughes Company, Baker Hughes Holdings, Baker Hughes Pressure Control, or their respective subsidiaries, affiliates, and businesses. Moreover, information concerning the subject matter of the representations, warranties and covenants may change after the date of the Framework Agreement, which subsequent information may or may not be fully reflected in public disclosures by the Company.

*Amendment to ABL Credit Facility*

On June 2, 2025, Cactus Companies entered into an amendment (the "<u>ABL Credit Facility Amendment</u>") to its Amended and Restated Credit Agreement originally entered into on February 28, 2023 by and among Cactus Companies, as borrower, Cactus Wellhead, LLC and certain other subsidiaries of Cactus Companies, as guarantors, JPMorgan Chase Bank, N.A., as lender, administrative agent, issuing bank and swingline lender and certain other lenders (as amended prior to the ABL Credit Facility Amendment, the "<u>ABL Credit Facility</u>").

The ABL Credit Facility Amendment amended the ABL Credit Facility to, among other things, (a) not require guarantees or collateral from non-wholly owned subsidiaries acquired in connection with the transactions contemplated by the Framework Agreement and (b) not require guarantees or collateral from subsidiaries organized outside the United States.

The other material terms of the ABL Credit Facility were unchanged.

The foregoing description of the ABL Credit Facility Amendment is a summary of the material terms thereof, does not purport to be complete and is qualified in its entirety by reference to the complete text of the ABL Credit Facility Amendment, a copy of which will be filed as an Exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ending June 30, 2025.

---

| | |
|:---|:---|
| **Item 2.03** | **Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.** |

---

The information contained in Item 1.01 of this Current Report relating to the ABL Credit Facility Amendment is incorporated by reference in this Item 2.03

---

| | |
|:---|:---|
| **Item 7.01** | **Regulation FD Disclosure.** |

---

On June 2, 2025, the Company announced the signing of the Framework Agreement described in Item 1.01 above. A copy of the press release announcing the signing of the Framework Agreement is attached hereto as Exhibit 99.2 and is incorporated herein by reference. Also, on June 2, 2025, the Company posted a presentation to its website relating to the Transaction, a copy of which is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

The information in this Item 7.01, including Exhibits 99.2 and 99.3, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), or the Exchange Act, except as set forth by specific reference in such filing.

**Forward Looking Statements**

This report includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act regarding the Transaction and related transactions. These statements are not historical or current facts and deal with potential future circumstances and developments, in particular statements regarding whether and when the transactions contemplated by the Framework Agreement will be consummated. Forward-looking statements are qualified by the inherent risk and uncertainties surrounding future expectations generally and may materially differ from actual future experience. Risks and uncertainties that could affect forward-looking statements include: satisfaction of conditions to the Closing and related transactions and the risks that are described in the Company's annual report on Form 10-K for the year ended December 31, 2024, quarterly report on Form 10-Q for the quarter ended March 31, 2025, and in subsequent reports filed under the Exchange Act. This report speaks only as of its date and the Company disclaims any duty to update the information herein other than as required by applicable law or regulation.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

(d) *Exhibits*.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [2.1](tm2516702d1_ex2-1.htm) | [Framework Agreement by and among Baker Hughes Holdings LLC, Cactus Companies, LLC and Baker Hughes Pressure Control LP, dated as of June 2, 2025\*](tm2516702d1_ex2-1.htm) |
| [99.1](tm2516702d1_ex99-1.htm) | [Form of Amended and Restated Limited Liability Company Agreement of Baker Hughes Pressure Control LLC\*](tm2516702d1_ex99-1.htm) |
| [99.2](tm2516702d1_ex99-2.htm) | [Press Release of Cactus, Inc. dated June 2, 2025 announcing the Framework Agreement](tm2516702d1_ex99-2.htm) |
| [99.3](tm2516702d1_ex99-3.htm) | [Investor Presentation dated June 2, 2025](tm2516702d1_ex99-3.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\* All or certain of the schedules and exhibits to this agreement have been omitted in accordance with Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the Securities and Exchange Commission upon request; provided, however, that the Company may request confidential treatment of omitted items.

**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 hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Cactus, Inc.** | **Cactus, Inc.** |
| June 2, 2025 | By: | /s/ Jay A. Nutt |
| Date | Name: | Jay A. Nutt |
|  | Title: | Executive Vice President, Chief Financial Officer and Treasurer |

---

## Exhibit 2.1

**Exhibit 2.1**

***Execution Version***

------

FRAMEWORK AGREEMENT

by and among

Baker Hughes Holdings LLC

and

Cactus Companies, LLC

Baker Hughes Pressure Control LP

Dated as of June 2, 2025

------

**TABLE OF CONTENTS**

**Page**

---

| | | |
|:---|:---|:---|
| ARTICLE I Definitions | ARTICLE I Definitions | 2.0 |
| Section 1.1 | Defined Terms | 2.0 |
| Section 1.2 | Rules of Construction | 24.0 |
| ARTICLE II Establishing the Joint Venture; Pre-Closing Actions | ARTICLE II Establishing the Joint Venture; Pre-Closing Actions | 25.0 |
| Section 2.1 | Establishing the Joint Venture | 25.0 |
| Section 2.2 | Extraction of Cash | 25.0 |
| Section 2.3 | Business Assets | 25.0 |
| Section 2.4 | Excluded Assets | 26.0 |
| Section 2.5 | Business Liabilities | 27.0 |
| Section 2.6 | Excluded Liabilities | 27.0 |
| Section 2.7 | Consents | 28.0 |
| ARTICLE III Closing | ARTICLE III Closing | 29.0 |
| Section 3.1 | Closing | 29.0 |
| Section 3.2 | Closing Deliveries | 29.0 |
| Section 3.3 | Other Actions to Occur Prior to or at the Closing | 30.0 |
| Section 3.4 | Purchase and Sale of the Membership Interests | 31.0 |
| Section 3.5 | Estimated Closing Statements | 31.0 |
| Section 3.6 | Post-Closing Adjustment | 32.0 |
| Section 3.7 | Deferred Funding and Deferred Closing | 33.0 |
| Section 3.8 | Obligations with respect to the Deferred Closing | 34.0 |
| Section 3.9 | Obligations with Respect to the Iraq Business | 35.0 |
| Section 3.10 | Withholding | 36.0 |
| Section 3.11 | Intended Tax Treatment | 36.0 |
| ARTICLE IV Representations and Warranties of Baker Hughes | ARTICLE IV Representations and Warranties of Baker Hughes | 36.0 |
| Section 4.1 | Organization, Good Standing and Qualifications | 36.0 |
| Section 4.2 | Authority | 37.0 |
| Section 4.3 | No Conflicts or Consents | 37.0 |
| Section 4.4 | Regulatory Approvals | 38.0 |
| Section 4.5 | The Company | 38.0 |
| Section 4.6 | The Subject Entities | 39.0 |
| Section 4.7 | Ownership and Capital Structure of the Subject Entities | 39.0 |
| Section 4.8 | Required Consents | 40.0 |
| Section 4.9 | Financial Information | 40.0 |
| Section 4.10 | Absence of Certain Changes or Events | 40.0 |
| Section 4.11 | Compliance with Laws | 41.0 |
| Section 4.12 | Litigation | 41.0 |
| Section 4.13 | Material Permits | 41.0 |
| Section 4.14 | Material Contracts | 41.0 |
| Section 4.15 | Employment and Employee Benefits Matters | 43.0 |
| Section 4.16 | Intellectual Property | 47.0 |
| Section 4.17 | Owned Property and Leased Property | 49.0 |
| Section 4.18 | Environmental Matters | 50.0 |
| Section 4.19 | Tax Matters | 51.0 |

---

i

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| | | |
|:---|:---|:---|
| Section 4.20 | No Brokers | 52 |
| Section 4.21 | Bankruptcy | 52 |
| Section 4.22 | Suppliers and Customers | 52 |
| Section 4.23 | Anti-Corruption Laws; Trade Control Laws | 53 |
| Section 4.24 | Personal Property; Sufficiency | 54 |
| Section 4.25 | Insurance | 55 |
| Section 4.26 | Data Security and Privacy Matters | 55 |
| Section 4.27 | Inventory and Accounts Receivable | 56 |
| Section 4.28 | Backlog | 56 |
| Section 4.29 | Product and Service Warranties | 57 |
| Section 4.30 | No Other Representations or Warranties | 57 |
| ARTICLE V Representations and Warranties of Cactus | ARTICLE V Representations and Warranties of Cactus | 58 |
| Section 5.1 | Organization, Good Standing and Qualifications | 58 |
| Section 5.2 | Authority | 58 |
| Section 5.3 | No Conflicts or Consents | 58 |
| Section 5.4 | Regulatory Approvals | 58 |
| Section 5.5 | Required Consents | 59 |
| Section 5.6 | Financial Ability | 59 |
| Section 5.7 | No Brokers | 59 |
| Section 5.8 | Litigation | 59 |
| Section 5.9 | No Other Representations or Warranties | 60 |
| ARTICLE VI Covenants | ARTICLE VI Covenants | 60 |
| Section 6.1 | Commercially Reasonable Efforts; Government Approvals | 60 |
| Section 6.2 | Restructuring Transactions | 63 |
| Section 6.3 | R&W Policy | 65 |
| Section 6.4 | Financial Statements | 65 |
| ARTICLE VII Other Covenants | ARTICLE VII Other Covenants | 66 |
| Section 7.1 | Conduct of Business Before the Closing | 66 |
| Section 7.2 | Publicity; Confidentiality | 68 |
| Section 7.3 | Wrong Pockets; Shared Contracts | 69 |
| Section 7.4 | Guarantees; Other Obligations | 70 |
| Section 7.5 | Exclusivity | 71 |
| Section 7.6 | Managers, Directors and Officers | 71 |
| Section 7.7 | Termination of Intercompany Transactions | 71 |
| Section 7.8 | Data Room | 71 |
| Section 7.9 | Company Group Hedges | 71 |
| Section 7.10 | Access to Information | 72 |
| Section 7.11 | Payoff Letters and Encumbrance Releases | 73 |
| Section 7.12 | Additional Agreements | 73 |
| ARTICLE VIII Intellectual Property Matters | ARTICLE VIII Intellectual Property Matters | 73 |
| Section 8.1 | Retention of Ownership of IP | 73 |
| Section 8.2 | Licenses of Company Marks | 74 |
| Section 8.3 | Combination Marks | 74 |
| Section 8.4 | Exclusive Obligations | 74 |
| Section 8.5 | Survival | 74 |

---

ii

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| | | |
|:---|:---|:---|
| ARTICLE IX Tax Matters | ARTICLE IX Tax Matters | 75.0 |
| Section 9.1 | Tax Cooperation | 75.0 |
| Section 9.2 | Tax Returns | 75.0 |
| Section 9.3 | Tax Apportionment | 75.0 |
| Section 9.4 | Tax Indemnification | 75.0 |
| Section 9.5 | Tax Contests | 76.0 |
| Section 9.6 | Mexican VAT Claim and Tax Refunds | 76.0 |
| Section 9.7 | Post-Closing Actions | 77.0 |
| Section 9.8 | Tax Payments | 77.0 |
| Section 9.9 | Transfer Taxes | 77.0 |
| Section 9.10 | Survival | 78.0 |
| ARTICLE X Employee Matters | ARTICLE X Employee Matters | 78.0 |
| Section 10.1 | Employee Representative Bodies, Works Councils, Unions, Labor Boards and Relevant Governmental Authorities | 78.0 |
| Section 10.2 | Employment with Company | 78.0 |
| Section 10.3 | Business Service Provider Schedule | 79.0 |
| Section 10.4 | Transfer of Business Employees | 79.0 |
| Section 10.5 | Inactive Business Employees | 80.0 |
| Section 10.6 | Terms of Qualifying Offer | 80.0 |
| Section 10.7 | Baker Hughes Covenants | 80.0 |
| Section 10.8 | Other Company Covenants | 81.0 |
| Section 10.9 | Automatically Transferring Business Employees | 82.0 |
| Section 10.10 | Other Agreements | 83.0 |
| Section 10.11 | No Third Party Beneficiaries, Etc. | 83.0 |
| ARTICLE XI Closing Conditions | ARTICLE XI Closing Conditions | 84.0 |
| Section 11.1 | Conditions to Obligations of Baker Hughes, Cactus and the Company | 84.0 |
| Section 11.2 | Conditions to Obligation of Cactus | 84.0 |
| Section 11.3 | Conditions to Obligation of Baker Hughes | 85.0 |
| ARTICLE XII Indemnity | ARTICLE XII Indemnity | 86.0 |
| Section 12.1 | Survival | 86.0 |
| Section 12.2 | Indemnification | 86.0 |
| Section 12.3 | Certain Limitations | 87.0 |
| Section 12.4 | Defense | 88.0 |
| Section 12.5 | Remedies | 90.0 |
| ARTICLE XIII Termination | ARTICLE XIII Termination | 90.0 |
| Section 13.1 | Termination | 90.0 |
| Section 13.2 | Effect of Termination | 91.0 |
| Section 13.3 | Survival | 91.0 |
| ARTICLE XIV Miscellaneous | ARTICLE XIV Miscellaneous | 91.0 |
| Section 14.1 | Expenses | 91.0 |
| Section 14.2 | Assignment | 92.0 |
| Section 14.3 | Notices | 92.0 |
| Section 14.4 | Governing Law; Construction | 93.0 |

---

iii

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| | | |
|:---|:---|:---|
| Section 14.5 | Dispute Resolution | 93 |
| Section 14.6 | Consent to Jurisdiction and Venue | 94 |
| Section 14.7 | Waiver of Right to Jury Trial | 94 |
| Section 14.8 | Third Party Beneficiaries | 94 |
| Section 14.9 | Entire Agreement; Amendments and Waivers | 94 |
| Section 14.10 | Severability | 95 |
| Section 14.11 | Counterparts | 95 |
| Section 14.12 | Equitable Relief | 95 |
| Section 14.13 | Non-Recourse | 95 |
| Section 14.14 | Attorney-Client Privilege | 96 |
| Section 14.15 | Currency | 96 |

---

**<u>EXHIBITS</u>**

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| | |
|:---|:---|
| **Exhibit A** | **Form of Baker Hughes Commercial Agreement** |
| Exhibit B | Form of Global Employee Services Agreement |
| Exhibit C | Form of IP Assignment Agreement |
| Exhibit D | Form of Business IP License Agreement |
| Exhibit E | Form of Company IP License Agreement |
| Exhibit F | Form of LLC Agreement |
| Exhibit G | R&W Policy Conditional Binder |
| Exhibit H-1 | Form of Baker Hughes Trademark License Agreement |
| Exhibit H-2 | Form of Cactus Trademark License Agreement |
| Exhibit I | Form of Transition Services Agreement |
| Exhibit J | Filings under Competition Laws |
| Exhibit K | Form of Foreign Transfer Agreements |
| Exhibit L | Form of Cactus Group Employee Services Agreement |

---

**<u>SCHEDULES</u>**

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| | |
|:---|:---|
| **Schedule 1.1(a)** | **Baker Hughes IP** |
| Schedule 1.1(b) | Business Owned IP and Inbound Third Party Licenses |
| Schedule 1.1(c) | Company Group Hedges |
| Schedule 1.1(d) | Subject Entities |
| Schedule 1.1(e) | Transaction Accounting Principles |
| Schedule 1.1(DB) | Deferred Businesses |
| Schedule 1.1(EIC) | Excluded Iraq Contract |
| Schedule 1.1(Iraq) | Iraq Business Assets |
| Schedule 1.1(KNOW) | Knowledge |
| Schedule 1.1(SJVD) | Saudi JV Dividend |
| Schedule 1.2 | Provision of Information |
| Schedule 2.2 | Minimum Cash Amounts |
| Schedule 2.4 | Excluded Assets |
| Schedule 2.6 | Excluded Liabilities |
| Schedule 5.5 | Required Consents |
| Schedule 6.2 | Reorganization Plan |
| Schedule 7.1 | Conduct Before Closing Excluded Matters |
| Schedule 7.1(a)(xv) | Scheduled Capital Expenditures |
| Schedule 7.3(c) | Shared Contracts to be Separated |

---

iv

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| | |
|:---|:---|
| Schedule 7.4 | Other Guarantees |
| Schedule 7.7 | Intercompany Transactions |
| Schedule 7.12 | Additional Agreements |
| Schedule 10.7(a) | Change of Control Benefit Policies and Agreements |

---

**<u>DISCLOSURE SCHEDULES</u>**

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| | |
|:---|:---|
| **Schedule 4.4** | **Regulatory Approvals** |
| Schedule 4.5(a) | Owners of Equity Interests |
| Schedule 4.5(b) | Exceptions to Organizational Documents; Equity Interests |
| Schedule 4.7(a) | Subject Entities |
| Schedule 4.7(b) | Subject Entity Arrangements |
| Schedule 4.8 | Material Contracts Requiring Approval |
| Schedule 4.9(a) | Unaudited Financial Statements |
| Schedule 4.9(c) | Deviations from GAAP |
| Schedule 4.12 | Pending Actions |
| Schedule 4.13 | Material Permits |
| Schedule 4.14(a) | Material Contracts |
| Schedule 4.14(d) | Business Sales Representatives |
| Schedule 4.15(a) | Defined Benefit Plans |
| Schedule 4.15(h) | Benefit and Compensatory Payments |
| Schedule 4.15(j)(1) | Business Employee Schedule |
| Schedule 4.15(j)(2) | Business Independent Contractor Schedule |
| Schedule 4.15(j)(3) | Business Agency Worker Schedule |
| Schedule 4.15(l) | Unwritten Employment Contracts |
| Schedule 4.15(m) | Unionization Activities |
| Schedule 4.15(o) | Settlements |
| Schedule 4.15(p) | Mass Layoffs; Plant Closings; Employment Losses |
| Schedule 4.16(a) | Limitations on Use of Business IP |
| Schedule 4.16(f) | Registered Business Owned IP |
| Schedule 4.17(a)(i) | Owned Property |
| Schedule 4.17(a)(ii) | Leased Property |
| Schedule 4.17(f) | Joint Use Facilities |
| Schedule 4.19(n) | Federal Income Tax Status |
| Schedule 4.22 | Material Customers and Suppliers |
| Schedule 4.24(b) | Fixed Assets Not Owned by a Member of the Company Group |
| Schedule 4.25 | Insurance Policies |
| Schedule 4.27 | Inventory and Accounts Receivable |
| Schedule 4.28(a) | Backlog Report |
| Schedule 4.29(a) | Warranty Claims |
| Schedule 4.29(b) | Nonconformities |

---

v

**FRAMEWORK AGREEMENT**

This FRAMEWORK AGREEMENT (as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof, this "<u>Agreement</u>") is entered into as of June 2, 2025, by and among Baker Hughes Holdings LLC, a Delaware limited liability company ("<u>Baker Hughes</u>"), Cactus Companies, LLC, a Delaware limited liability company ("<u>Cactus</u>"), and Baker Hughes Pressure Control LP, a Texas limited partnership (the "<u>Company</u>"). The Company, Baker Hughes, and Cactus are hereinafter sometimes collectively referred to as the "<u>Parties</u>" and individually as a "<u>Party</u>".

<u>RECITALS</u>

All capitalized terms shall have the meanings set forth in <u>ARTICLE I</u>, unless otherwise stated herein.

WHEREAS, Baker Hughes and its Affiliates are engaged in the business of (a) developing, manufacturing, distributing, marketing, renting and selling the following products: (i) trees, valves, chokes and actuators, (ii) conventional wellhead systems, (iii) multi-bowl compact wellhead systems, (iv) mudline suspension equipment and their associated accessories, tie-back equipment and temporary abandonment caps and service tools and (v) service and running tools for (i) through (iv), in each case of clauses (i) through (v), including such products as specified under the American Petroleum Institute's Specification 6A; and (b) providing services, including installation, maintenance, rentals, repairs and aftermarket spares related to (i) through (v) of clause (a), in the case of both (a) and (b) for Surface pressure control applications (including, for the avoidance of doubt, providing services with respect to mudline suspension equipment) (collectively, the "<u>Business</u>").

WHEREAS, Baker Hughes indirectly owns one hundred percent (100%) of the outstanding Equity Interests in the Company and, prior to the Closing, Baker Hughes shall effect the Restructuring Transactions as set forth in the Reorganization Plan.

WHEREAS, following the completion of the Restructuring Transactions, the Company and the Subject Entities will collectively own the Business Assets and be obligated in respect of the Business Liabilities.

WHEREAS, the Parties desire to enter into this Agreement pursuant to which, following its conversion to a Delaware limited liability company pursuant to the Restructuring Transactions, Baker Hughes and/or its applicable Affiliate shall sell sixty-five percent (65%) of the limited liability company membership interests in the Company (the "<u>Membership Interests</u>") to Cactus and/or its applicable Affiliate, and Cactus shall, or shall cause its applicable Affiliate to, purchase sixty-five percent (65%) of the Membership Interests from Baker Hughes and/or its applicable Affiliate, on such terms and subject to the conditions set forth in this Agreement.

WHEREAS, the Company shall be governed by the LLC Agreement as of and following the Closing.

NOW, THEREFORE, based on the above-stated premises and in consideration of the promises and the mutual representations, warranties, covenants, conditions and agreements hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound hereby, agree as follows:

ARTICLE I<u><br> Definitions</u>

Section 1.1 <u>Defined Terms</u>. Capitalized terms used but not otherwise defined herein shall have the following meanings:

"<u>2024 Saudi JV Dividend</u>" has the meaning set forth in <u>Schedule 1.1 (SJVD</u>).

"<u>2025 Saudi JV Dividend</u>" has the meaning set forth in <u>Schedule 1.1 (SJVD</u>).

"<u>2026 Saudi JV Dividend</u>" has the meaning set forth in <u>Schedule 1.1 (SJVD</u>).

"<u>Action</u>" means any claim, demand, audit, suit, action, investigation, inquiry, litigation, arbitration or judicial or administrative proceeding.

"<u>Affiliate</u>" means any Person now or in the future that directly, or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person, for so long as such control exists. The term "control" when used with respect to any Person means the power to direct, or cause the direction of, the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise, and the terms "controlling," and "controlled" have meanings correlative to the foregoing; *provided*, that for purposes of this Agreement, (a) neither Cactus nor Baker Hughes shall be deemed to be an Affiliate of each other either before or after Closing, (b) prior to the Closing, the Company and the Subject Entities shall be considered Affiliates of Baker Hughes and (c) following the Closing, neither Cactus nor Baker Hughes shall be deemed to be Affiliates of the Company or the Subject Entities.

"<u>Agreement</u>" has the meaning set forth in the preamble.

"<u>Allocation</u>" has the meaning set forth in <u>Section 6.2(e)</u>.

"<u>Ancillary Agreements</u>" means the Transition Services Agreement, the Baker Hughes Commercial Agreement, the Global Employee Services Agreement, the Cactus Group Employee Services Agreement, the LLC Agreement, the Foreign Transfer Agreements, the IP License Agreements, the IP Assignment Agreement, the Trademark License Agreements and any other instruments of transfer (and, where applicable, any amendments to constitutional documents of any entity to effect a transfer pursuant to this Agreement) necessary to effect (a) the Restructuring Transactions in accordance with the Reorganization Plan, including the transfer of the Equity Interests in the Subject Entities to the Company and, if any of the Equity Interests in any of the Subject Entities are required to be certificated, certificates evidencing such Equity Interests of the Subject Entities, and (b) the other transactions contemplated by this Agreement and the other Transaction Documents, including to evidence any Conveyance of Nonassignable Assets pursuant to <u>Section 2.7</u>.

"<u>Anti-Corruption Laws</u>" means any Laws concerning or relating to anti-bribery or anti-corruption matters in the public or private sector, including the U.S. Foreign Corrupt Practices Act of 1977 and the UK Bribery Act.

"<u>Anti-Money Laundering Laws</u>" means any Laws concerning or relating to anti-money laundering, terrorist financing, or financial recordkeeping and reporting, including the Money Laundering Control Act of 1986, the Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept, and Obstruct Terrorism Act of 2001 (the USA PATRIOT Act), and the UK Proceeds of Crime Act 2002.

"<u>Appraisal</u>" has the meaning set forth in <u>Section 6.2(e)</u>.

"<u>Appraisal Dispute Notice</u>" has the meaning set forth in <u>Section 6.2(e)</u>.

"<u>Approval</u>" has the meaning set forth in <u>Section 2.7(a)</u>.

"<u>Audited Financial Statements</u>" has the meaning set forth in <u>Section 6.4</u>.

"<u>Automatically Transferring Business Employee</u>" means an employee of Baker Hughes or any of its Affiliates whose employment automatically transfers to the Company or one of its Subsidiaries by operation of the Regulations as a consequence of the transactions (including the Restructuring Transactions) contemplated by the Agreement (including the Reorganization Plan).

"<u>Backlog Report</u>" has the meaning set forth in <u>Section 4.28</u>.

"<u>Backlog Report Date</u>" has the meaning set forth in <u>Section 4.28</u>.

"<u>Baker Hughes</u>" has the meaning set forth in the preamble.

"<u>Baker Hughes Benefit Plan</u>" means any Benefit Plan that is maintained, sponsored, or contributed to or required to be contributed to by Baker Hughes or any of its Affiliates, or under or with respect to which Baker Hughes or any of its Affiliates has any Liability. A Baker Hughes Benefit Plan, determined immediately prior to the Closing, shall continue to be treated as a Baker Hughes Benefit Plan following the Closing notwithstanding the fact that members of the Company Group shall not be Affiliates of Baker Hughes following the Closing.

"<u>Baker Hughes Commercial Agreement</u>" means the Master Services Agreement between Baker Hughes and the Company, substantially in the form attached hereto as <u>Exhibit A</u>.

"<u>Baker Hughes Employee Liabilities</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all employment-, service-, compensation- and employment-benefit related Liabilities relating to each employee and other individual service provider of Baker Hughes and its Affiliates who is (i) not a Business Service Provider, or (ii) a former employee of or individual service provider providing services to a member of the Company Group who does not become a Continuing Service Provider retained by a member of the Company Group on or prior to Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the period prior to Closing, all compensation- and employment-benefit related Liabilities that (i) relate to each Business Service Provider who is transferred to the employ of a member of the Company Group prior to Closing and (ii) result from, arise out of or relate to the Restructuring Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to any contractual reimbursement amounts payable by Cactus pursuant to the GESA, Liabilities under or relating to each Baker Hughes Benefit Plan (including, for the avoidance of doubt, Liabilities under or relating to the Baker Hughes (UK) Pension Plan ("<u>UK DB Plan</u>")), defined benefit plan underfunding, other funding obligations or contributions payable, Multiemployer Plan complete or partial withdrawal Liabilities, any debts arising under section 75 or Section 75A of the United Kingdom Pensions Act of 1995, as amended, or any exit fees to be paid with respect to Baker Hughes Benefit Plans, any Liabilities in respect of the exercise or proposed exercise by the UK Pensions Regulator of its powers under sections 38 of the Pensions Act 2004 to issue a contribution notice, under section 43 of the Pensions Act 2004 to issue a financial support direction, or under sections 58A to 58D of the Pensions Act 2004 to institute proceedings or impose a financial penalty, in each case in relation to the UK DB Plan or any other Baker Hughes Benefit Plan which is a UK defined benefit plan, any liability or costs emanating from the actions described in <u>Section 3.3</u> (including if such steps are taken on or after the Closing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any obligation on the part of Baker Hughes or any of its Affiliates to comply with the WARN Act or COBRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Controlled Group Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Liabilities relating to (i) any Statutory Indemnity Obligation, (ii) any severance payments, (iii) damages for wrongful dismissal and (iv) any other costs, in each case, in respect of a termination of employment or services, triggered by or related to the execution of this Agreement or the other Transaction Documents or the consummation of the transactions contemplated hereby or thereby, including the Reorganization Plan, or to be made in connection with such execution or the Closing (or, as applicable, the Deferred Closing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Liabilities relating to any retention, change in control or transaction bonus that becomes due as a result of the transactions contemplated hereunder.

For purposes of determining Baker Hughes Employee Liabilities, an item that qualifies as a Baker Hughes Employee Liability as of the consummation of the transactions contemplated by this Agreement or the other Transaction Documents will not fail to be a Baker Hughes Employee Liability as a result of the members of the Company Group ceasing to be Affiliates of Baker Hughes. For the avoidance of doubt and subject to any contractual reimbursement amounts payable by Cactus pursuant to the GESA, tax withholding, remittance and reporting obligations relating to any of the items listed in clauses (a) though (g) of this definition are Baker Hughes Employee Liabilities.

"<u>Baker Hughes Fundamental Representations</u>" means the representations and warranties of Baker Hughes in <u>Section 4.1</u> (*Organization, Good Standing, and Qualifications*), <u>Section 4.2</u> (*Authority*), <u>Section 4.5(a)</u> (*The Company*), <u>Section 4.5(b)</u> (*The Company*), <u>Section 4.6(a)</u> (*The Subject Entities*), <u>Section 4.7(a)</u> (*Ownership and Capital Structure of the Subject Entities*), <u>Section 4.7(b)</u> (*Ownership and Capital Structure of the Subject Entities*), and <u>Section 4.20</u> (*No Brokers*).

"<u>Baker Hughes Indemnification Cap</u>" has the meaning set forth in <u>Section 12.3(b)</u>.

"<u>Baker Hughes Indemnified Tax</u>" means, without duplication, any of the following Taxes (in each case, except to the extent taken into account in the final determination of the Post-Closing Statement as set forth in <u>Section 3.6</u>): (a) all Taxes imposed on any member of the Company Group for any Pre-Closing Tax Period (or portion of any Straddle Period ending on the Closing Date) (determined in accordance with <u>Section 9.3</u>); (b) all Taxes of Baker Hughes or any of its Affiliates (other than the Company Group) and/or any other Person which are required to be paid by any member of the Company Group by reason of any such member of the Company Group having been a member of any affiliated, consolidated, combined or unitary Tax group that includes Baker Hughes or any of its Affiliates (other than a group consisting solely of the Company Group) on or prior to the Closing Date, including pursuant to Treasury Regulations Section 1.1502-6 or any analogous or similar state, local or non-U.S. Law; (c) all Taxes of any Person (other than any member of the Company Group) imposed on any member of the Company Group as a transferee or successor, by Contract or pursuant to any Law, which Taxes relate to an event or transaction occurring on or prior to the Closing; (d) any Taxes imposed on Baker Hughes or any of its Affiliates (other than the Company Group); (e) any Taxes imposed on any member of the Company Group resulting from, arising out of or relating to the Restructuring Transactions; (f) any payments in respect of Taxes required to be made after the Closing Date pursuant to any Tax sharing, Tax indemnification, or Tax allocation agreement or similar Contract to which any member of the Company Group was obligated, or was a party, on or prior to the Closing Date (except for Contracts entered into in the Ordinary Course, the primary purpose of which does not relate to Taxes); (g) all Taxes imposed on any member of the Company Group arising out of or relating to any Excluded Asset; (h) any Baker Hughes Transfer Taxes, and (i) the Transfer Taxes for which Baker Hughes is liable pursuant to <u>Section 9.9</u>. For purposes of greater certainty, an adverse adjustment to any tax attribute (e.g., net operating loss) of a Subject Entity pursuant to a Tax Contest that does not result in a cash Tax liability of such Subject Entity attributable to a Pre-Closing Tax Period (or portion of any Straddle Period ending on the Closing Date) shall not constitute a Baker Hughes Indemnified Tax.

"<u>Baker Hughes Indemnitees</u>" has the meaning set forth in <u>Section 12.2(a)</u>.

"<u>Baker Hughes IP</u>" means the Intellectual Property Rights (a) owned, or (b) licensed from a Third Party, in each case, by Baker Hughes or any of its Affiliates as of the Closing Date and that are related to the Business, including such Intellectual Property Rights that are used, reasonably necessary for use, or in development as of the Closing Date by Baker Hughes or any of its Affiliates, in each case in connection with the Business as conducted in the Ordinary Course immediately prior to the Closing Date, including (i) the Intellectual Property Rights set forth in <u>Schedule 1.1(a)</u> and (ii) any improvements to the Baker Hughes IP created, developed or invented by any GESA Employee during the applicable GESA Employee Term related to the Business that is not assigned to Company under the GESA; *provided*, *however*, that Baker Hughes IP shall not include Business Owned IP.

"<u>Baker Hughes Name and Baker Hughes Marks</u>" means the names or marks of Baker Hughes or any of its Affiliates (other than the Company Marks), "Baker Hughes", and the BH logo either alone or in combination with other words and all marks, trade dress, logos, monograms, domain names and other source identifiers confusingly similar to or embodying any of the foregoing either alone or in combination with other words.

"<u>Baker Hughes Prepared Returns</u>" has the meaning set forth in <u>Section 9.2(a)</u>.

"<u>Baker Hughes Transfer Taxes</u>" means all Transfer Taxes that may be imposed or assessed in connection with or as a result of (a) the Restructuring Transactions (including, for the avoidance of doubt, the Deferred Actions, if any) and (b) actions taken pursuant to <u>Section 7.3</u>.

"<u>Baker McKenzie</u>" has the meaning set forth in <u>Section 14.14</u>.

"<u>Balance Sheet Date</u>" has the meaning set forth in <u>Section 4.9(a)</u>.

"<u>Base Working Capital</u>" means $192,100,000.

"<u>Benefit Plan</u>" means (a) any employee benefit plan within the meaning of Section 3(3) of ERISA (whether written or unwritten, whether or not subject to ERISA, whether in the U.S. or other relevant foreign jurisdictions (if applicable)), (b) any other retirement, welfare benefit, bonus, stock option, stock purchase, restricted stock, restricted stock unit, incentive, supplemental retirement, deferred compensation, post-termination or retiree health, life insurance, severance, Code Section 125 flexible benefit, vacation or paid time off, or fringe plan, program or agreement, and (c) any individual employment, retention, termination, severance, change in control or other similar Contract, in each case, other than a Statutory Plan or a Multiemployer Plan.

"<u>Board</u>" means the board of directors of the Company.

"<u>Business</u>" has the meaning set forth in the recitals.

"<u>Business Accounts Receivable</u>" has the meaning set forth in <u>Section 4.27</u>.

"<u>Business Agency Worker</u>" means any natural Person who either temporarily or permanently provides services to the Business via a third-party employer of record, professional employer organization, or other similar employment arrangement.

"<u>Business Agency Worker Schedule</u>" has the meaning set forth in <u>Section 4.15(j)</u>.

"<u>Business Assets</u>" has the meaning set forth in <u>Section 2.3</u>.

"<u>Business Contracts</u>" means Contracts to which Baker Hughes or any of its Affiliates are a party, including sales and purchase orders and other instruments, in each case, Related to the Business; *provided*, *however*, notwithstanding anything herein to the contrary, any (a) Contracts for the license of Third Party intellectual property, and (b) Shared Contracts to which the Company or any Subject Entity or Baker Hughes or its Affiliates are a party that are (v) Hedge Contracts, (w) enterprise wide Contracts, including for Software, (x) Contracts with respect to off-the-shelf Software, (y) Baker Hughes Benefit Plans or (z) Labor Agreements, in each case shall not be a "<u>Business Contract</u>" hereunder.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York, United States are authorized or required by law or executive order to close. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a day that is not a Business Day, then such action may be taken, or such right may be exercised on the succeeding Business Day.

"<u>Business Employee</u>" means any natural Person who (a) is an employee of a member of the Company Group or (b) (i) is employed by Baker Hughes or any of its Affiliates and (ii) who primarily devote his or her business time in connection with the Business.

"<u>Business Employee Schedule</u>" has the meaning set forth in <u>Section 4.15(j)</u>.

"<u>Business Independent Contractor</u>" means any natural Person who is an independent contractor or consultant engaged to provide services to the Business.

"<u>Business Independent Contractor Schedule</u>" has the meaning set forth in <u>Section 4.15(j)</u>.

"<u>Business Inventory</u>" means all inventory, raw materials, work-in-process, finished goods, purchased goods, packaging, materials and supplies, including in-transit inventories and spare parts Related to the Business.

"<u>Business IP</u>" means the Business Owned IP and the Baker Hughes IP.

"<u>Business Liabilities</u>" has the meaning set forth in <u>Section 2.5</u>.

"<u>Business Owned IP</u>" means the Intellectual Property Rights that, as of immediately prior to the Closing Date, are owned by Baker Hughes or any of its Affiliates as of the Closing Date exclusively in connection with the Business as conducted by Baker Hughes or its Affiliates including such Intellectual Property Rights that are used, reasonably necessary for use, or in development as of the Closing Date by Baker Hughes or any of its Affiliates, in each case exclusively in connection with the Business as conducted in the Ordinary Course immediately prior to the Closing Date, including (i) the Intellectual Property Rights listed in <u>Schedule 1.1(b)</u> attached hereto and (ii) any improvements to the Business Owned IP created, developed or invented by any GESA Employee during the applicable GESA Employee Term related to the Business that is not assigned to Company under the GESA.

"<u>Business Sales Representative</u>" has the meaning set forth in <u>Section 4.14(d)</u>.

"<u>Business Service Provider</u>" means (a) any Business Employee, (b) any Business Independent Contractor or (c) any Business Agency Worker.

"<u>Cactus</u>" has the meaning set forth in the preamble.

"<u>Cactus Group Employee Services Agreement</u>" means the employee services agreement to be entered into by the Company and Cactus providing for the provision of services by certain Business Employees to the Company Group following the Closing, substantially in the form attached hereto as <u>Exhibit L</u>.

"<u>Cactus Fundamental Representations</u>" means the representations and warranties of Cactus in <u>Section 5.1</u> (*Organization, Good Standing, and Qualifications*), <u>Section 5.2</u> (*Authority*), <u>Section 5.6(a)</u> (*Financial Ability*) and <u>Section 5.7</u> (*No Brokers*).

"<u>Cactus Indemnification Cap</u>" has the meaning set forth in <u>Section 12.3(a)</u>.

"<u>Cactus Indemnitees</u>" has the meaning set forth in <u>Section 12.2(b)</u>.

"<u>Cactus Membership Interests</u>" has the meaning set forth in <u>Section 3.4(a)</u>.

"<u>Cactus Parties</u>" has the meaning set forth in <u>Section 5.1</u>.

"<u>Cash</u>" means, as at any relevant time, the amount (which may be a positive or negative number) equal to the sum of: (a) cash on hand; *plus* (b) cash standing to the credit of any account with a bank or other financial institution; *plus* (c) uncleared incoming checks and wire transfers; *plus*; (d) cash equivalents and marketable securities; in each case for clauses (a) through (d), including any earned interest thereon; *minus* (e) the absolute value of any negative cash balances, uncleared outgoing (or otherwise outstanding) checks and wire transfers. "<u>Cash</u>" shall not include any amounts included in Closing Working Capital.

"<u>Claimed Amount</u>" has the meaning set forth in <u>Section 12.4(d)</u>.

"<u>Closing</u>" has the meaning set forth in <u>Section 3.1</u>.

"<u>Closing Capital Expenditure Underage Amount</u>" means the amount of any capital expenditures set forth on <u>Schedule 7.1(a)(xv)</u> that have not been expended and paid through the end of the month that is immediately prior to the month in which the Closing occurs.

"<u>Closing Cash Amount</u>" means the Cash of the Company Group as of immediately prior to the Closing and after giving effect to the Restructuring Transactions, which shall be calculated in accordance with the Transaction Accounting Principles; *provided, however*, that, if Cash is held by a Person that is not wholly owned (directly or indirectly) by Baker Hughes, only that portion of such Cash to which Baker Hughes is entitled (directly or indirectly) shall be included in Closing Cash Amount.

"<u>Closing Date</u>" has the meaning set forth in <u>Section 3.1</u>.

"<u>Closing Debt Amount</u>" means the Debt of the Company Group as of immediately prior to the Closing and after giving effect to the Restructuring Transactions, which shall be calculated in accordance with the Transaction Accounting Principles. For the avoidance of doubt, no amount shall be included in both the calculation of Closing Debt Amount and Closing Transaction Expenses.

"<u>Closing Payment</u>" shall mean the payment of the Closing Payment Amount.

"<u>Closing Payment Amount</u>" means an amount equal to the result from (w) $344,500,000, *minus* (x) any downward adjustment contemplated by <u>Schedule 7.12</u>, if applicable, *minus* (y) the Closing Capital Expenditure Underage Amount (if any), *plus* (z) an amount (which may be a negative number) equal to (A) the Closing Working Capital Overage Amount (if any), *minus* (B) the Closing Working Capital Underage Amount (if any), *plus* (C) 65% of the Closing Cash Amount, *minus* (D) the Closing Debt Amount, *minus* (E) Closing Transaction Expenses, in each case, (a) as such component amounts are shown in the Company's calculation delivered pursuant to <u>Section 3.6</u> if no notice of disagreement with respect such component amount is duly delivered pursuant to <u>Section 3.6(b)</u>, or (b) if such a notice of disagreement is delivered, (i) as such disputed component amounts are agreed by Baker Hughes and Cactus pursuant to <u>Section 3.6(c)</u> or (ii) in the absence of such agreement, as such disputed component amounts are shown in the Independent Expert's calculation delivered pursuant to <u>Section 3.6(c)</u>.

"<u>Closing Transaction Expenses</u>" means Transaction Expenses as of the Closing and after giving effect to the Restructuring Transactions.

"<u>Closing Working Capital</u>" means (a) only those specific line items designated as "Current Assets" in the "WC Illustrative Calculation" worksheet in the Transaction Accounting Principles, *minus* (b) only those specific line items designated as "Current Liabilities" in the "WC Illustrative Calculation" worksheet in the Transaction Accounting Principles, in each case of clauses (a) and (b), of the Business or the Company Group as of the Closing and after giving effect to the Restructuring Transactions, which shall be calculated in accordance with Transaction Accounting Principles, including the adjustments identified in the "WC Illustrative Calculation" worksheet in the Transaction Accounting Principles. For the avoidance of doubt, Closing Working Capital shall exclude Cash, the Closing Debt Amount and Closing Transaction Expenses.

"<u>Closing Working Capital Overage Amount</u>" means the amount (expressed as a positive number), if any, by which (a) the Closing Working Capital, *exceeds* (b) the Base Working Capital.

"<u>Closing Working Capital Underage Amount</u>" means the amount (expressed as a positive number), if any, by which (a) the Base Working Capital, *exceeds* (b) the Closing Working Capital.

"<u>COBRA</u>" means the requirements relating to continuation of coverage set forth in Section 601 et seq. of ERISA and Section 4980B of the Code, as added by the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or comparable federal, state, provincial, local or foreign applicable Law.

"<u>Code</u>" means the U.S. Internal Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute of similar import, and the rules and regulations thereunder, as from time to time in effect.

"<u>Combination Mark</u>" has the meaning set forth in <u>Section 8.3</u>.

"<u>Company</u>" has the meaning set forth in the preamble.

"<u>Company Benefit Plan</u>" means any Benefit Plan (excluding, for the avoidance of doubt, any UK defined benefit pension plan) that (a) is sponsored, maintained, contributed to (or required to be contributed to) by any member of the Company Group or under or with respect to which any member of the Company Group has any Liability, and (b) in any case, covers or relates to only Business Service Providers, or the spouses, beneficiaries or other dependents of Business Service Providers.

"<u>Company Group</u>" shall mean the Company and the Subject Entities.

"<u>Company Group Hedges</u>" means the Hedge Contracts described in <u>Schedule 1.1(c)</u>.

"<u>Company Marks</u>" has the meaning set forth in <u>Section 8.2</u>.

"<u>Company Prepared Returns</u>" has the meaning set forth in <u>Section 9.2(b)</u>.

"<u>Competition Laws</u>" means all applicable domestic and foreign 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 competition through merger or acquisition.

"<u>Confidentiality Agreement</u>" has the meaning set forth in <u>Section 7.2(b)</u>.

"<u>Consents</u>" means any consents, waivers, approvals, Orders, authorizations or notification requirements.

"<u>Contested Amount</u>" has the meaning set forth in <u>Section 12.4(d)</u>.

"<u>Continuing Service Provider</u>" or "<u>Continuing Service Providers</u>" means each Business Service Provider who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is an employee of or provides services to a member of the Company Group immediately prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is an Automatically Transferring Business Employee as of the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is an Offered Business Employee who accepts a Qualifying Offer and reports to work immediately following the Closing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is employed by or engaged by a third-party employer of record, professional employer organization, or other similar employment arrangement to provide services to the Company on or after the Closing.

"<u>Contract</u>" means any written or oral contract, agreement, lease, license, instrument, or other document or commitment, arrangement, undertaking, practice or authorization that is binding on any Person or its property under any applicable Law.

"<u>Contracting Parties</u>" has the meaning set forth in <u>Section 14.13</u>.

"<u>Control Notice</u>" has the meaning set forth in <u>Section 9.5</u>.

"<u>Controlled Group Liabilities</u>" means any and all Liabilities arising with respect to any Baker Hughes Benefit Plan (a) under Title IV of ERISA, (b) under Section 302 of ERISA, (c) under Sections 412 and 4971 of the Code, and (d) as a result of the failure to comply with COBRA, or, in the case of each of clauses (a) through (d), any comparable joint and several liability under comparable federal, state, provincial, local or foreign applicable Law.

"<u>Conveyance</u>" has the meaning set forth in <u>Section 2.7(a)</u>.

"<u>Data Room</u>" has the meaning set forth in <u>Section 1.2(a)</u>.

"<u>Data Room Upload Date</u>" has the meaning set forth in <u>Section 1.2(a)</u>.

"<u>Data Security Incident</u>" means any unauthorized access to, acquisition of, or disruption or misuse of a computer system or other information technology system of Baker Hughes or its Affiliates or Nonpublic Information within the custody or control of Baker Hughes or its Affiliates or any Third Party acting on Baker Hughes's or its Affiliates' behalf.

"<u>Debt</u>" means, with respect to a Person, without duplication, (a) any indebtedness for borrowed money, whether current or funded, secured or unsecured, (b) other indebtedness that is evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable, including all accrued interest thereunder, (c) all obligations in respect of letters of credit, surety bonds performance bonds, bank guaranties or bankers' acceptances, in each case solely to the extent drawn and outstanding, (d) all net obligations (which may be a positive or negative number) under forward currency exchanges, interest rate protection agreements, swap agreements and hedging arrangements, (e) all obligations as lessee under finance leases that are required to be classified as a finance lease calculated in accordance with GAAP, (f) all Liabilities of such Person in respect of mandatorily redeemable or purchasable Equity Interests, (g) all obligations of such Person issued or assumed as the deferred purchase price of property (including any "earn-out" or similar payments), all conditional sale obligations of such Person and all obligations of such Person under any title retention agreement; *provided*, that, for the avoidance of doubt, the Exit Price (as defined in the LLC Agreement) shall not constitute Debt, (h) all monetary obligations under any receivables factoring, receivables sales or similar transactions, (i) all monetary obligations under any Synthetic Lease and (j) all obligations of the type described in clauses (a) through (i) above of any other Person the payment of which is guaranteed by such Person; *provided*, *however*, that in no event will Debt include (i) undrawn letters of credit, surety or performance bonds, accrued or contingent liabilities or accounts payable (to the extent such accrued or contingent liability or account payable is included in the calculation of the Closing Working Capital), (ii) amounts to the extent included in the calculation of Closing Working Capital and Closing Transaction Expenses, (iii) all obligations of lessee under leases that are required to be classified as operating leases in accordance with GAAP, or as were classified as operating leases in the Unaudited Financial Statements, or (iv) any intercompany Debt between the Company, on the one hand, and one or more of the Subject Entities, on the other hand, or as solely between the Subject Entities. Debt shall also include any required payable (but otherwise unpaid) termination payments, pre-payment premiums or penalties, "breakage costs," redemption fees, make-whole payments, or similar costs and expenses or premiums, if and as applicable, assuming that such Debt is repaid or otherwise settled on the Closing Date.

"<u>Deferred Actions</u>" means all steps pursuant to and contemplated by the Restructuring Transactions (and as further set out in the Reorganization Plan) relating to a Deferred Business to the extent not completed prior to the Closing.

"<u>Deferred Business</u>" means any of the portions of the Business described in <u>Schedule 1.1(DB)</u>, to the extent the Restructuring Transactions with respect to any such portion of the Business have not been completed as of the Closing.

"<u>Deferred Business Employee</u>" has the meaning set forth in <u>Section 3.8(c).</u>

"<u>Deferred Closing</u>" has the meaning set forth in <u>Section 3.7(a)</u>.

"<u>Deferred Closing Date</u>" has the meaning set forth in <u>Section 3.7(a)</u>.

"<u>Deferred Funding Steps</u>" means all funding steps pursuant to the Restructuring Transactions (and as further set out in the Reorganization Plan) in respect of a Deferred Business.

"<u>Deferred Payment</u>" has the meaning set forth in <u>Section 3.4</u>.

"<u>Direct Claim</u>" has the meaning set forth in <u>Section 12.4(d)</u>.

"<u>Disclosure Schedules</u>" means the disclosure schedules dated as of the date of this Agreement, delivered by Baker Hughes to Cactus and which forms a part of this Agreement.

"<u>Dispute</u>" has the meaning set forth in <u>Section 14.5(a)</u>.

"<u>Dispute Notice</u>" has the meaning set forth in <u>Section 3.6(b)</u>.

"<u>Dispute Period</u>" has the meaning set forth in <u>Section 12.4(d)</u>.

"<u>Encumbrance</u>" means a mortgage, charge, easement, servitude, right of way, reversionary interest, pledge, lien, option, restriction, proprietary right, right of first refusal, right of pre-emption, or other adverse encumbrance or security interest of any kind (in each case, whether on voting, sale, transfer, disposition, use or otherwise, whether or not of record, and whether voluntary or imposed by applicable Law).

"<u>Environmental Laws</u>" means any applicable Law concerning or relating to (a) the protection of human health or safety (to the extent such health or safety concern relates to exposure to Hazardous Materials), (b) the environment (including natural resources), or (c) the presence, Release, use, generation, creation, processing, handling, transportation, treatment, monitoring, remediation, storage, disposal, arrangement for transportation or disposal, or discharge of, or exposure to, Hazardous Materials.

"<u>Environmental Permits</u>" means any permit, license, consent, registration, concession, grant, franchise, certificate, identification number, exemption or waiver issued or required by any Governmental Authority under applicable Environmental Law.

"<u>Equity Interests</u>" means (a) all shares of capital stock (whether denominated as common stock, preferred stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual), whether voting or non-voting, and (b) all securities convertible into or exchangeable for any of the foregoing and all warrants, options or other rights to purchase, subscribe for or otherwise acquire any of the foregoing, whether or not presently convertible, exchangeable or exercisable.

"<u>ERISA</u>" means the U.S. Employee Retirement Income Security Act of 1974, as amended.

"<u>Estimated Capital Expenditure Underage Amount</u>" means Baker Hughes's good faith estimate of the Closing Capital Expenditure Underage Amount.

"<u>Estimated Cash Amount</u>" means Baker Hughes's good faith estimate of the Closing Cash Amount.

"<u>Estimated Closing Statement</u>" has the meaning set forth in <u>Section 3.5</u>.

"<u>Estimated Debt Amount</u>" means Baker Hughes's good faith estimate of the Closing Debt Amount.

"<u>Estimated Payment Amount</u>" has the meaning set forth in <u>Section 3.2(a)(iii)</u>.

"<u>Estimated Transaction Expenses</u>" means Baker Hughes's good faith estimate of the Closing Transaction Expenses.

"<u>Estimated Working Capital</u>" means Baker Hughes's good faith estimate of the Closing Working Capital.

"<u>Estimated Working Capital Overage Amount</u>" means Baker Hughes's good faith estimate of an amount (expressed as a positive number), if any, by which (a) the Estimated Working Capital, *exceeds* (b) the Base Working Capital.

"<u>Estimated Working Capital Underage Amount</u>" means Baker Hughes's good faith estimate of an amount (expressed as a positive number), if any, by which (a) the Base Working Capital, *exceeds* (b) the Estimated Working Capital.

"<u>Excluded Assets</u>" has the meaning set forth in <u>Section 2.4</u>.

"Excluded Iraq Contract" has the meaning set forth on <u>Schedule 1.1(EIC)</u>.

"<u>Excluded Liabilities</u>" has the meaning set forth in <u>Section 2.6</u>.

"<u>Expiring Material Lease</u>" has the meaning set forth in <u>Section 4.17(c)</u>.

"<u>Fiscal Year</u>" means each twelve (12) month period commencing on January 1 and ending on December 31.

"<u>FLSA</u>" means the U.S. Fair Labor Standards Act of 1938, as amended.

"<u>FMLA</u>" means the U.S. Family Medical Leave Act.

"<u>Foreign Benefit Plan</u>" means a Benefit Plan that (a) is governed by the laws of any jurisdiction outside the U.S., or (b) provides compensation or benefits to any persons substantially all of whom reside outside of the U.S.

"<u>Foreign Transfer Agreement</u>" has the meaning set forth in <u>Section 6.2(b)</u>.

"<u>Fraud</u>" means the intentional misrepresentation or concealment of material fact by a Party in the making of a representation or warranty in <u>ARTICLE IV</u> or <u>ARTICLE V</u> (or in any certificate delivered pursuant to this Agreement), with the intent of inducing the other Party to rely thereon and thereby enter into this Agreement, and on which such other party does actually rely. "<u>Fraud</u>" shall not include statutory fraud, constructive fraud, equitable fraud, or negligent or reckless misrepresentation or omission.

"<u>GAAP</u>" means the United States generally accepted accounting principles as of the date of this Agreement, applied on a consistent basis.

"<u>GESA</u>" or "<u>Global Employee Services Agreement</u>" means the global employee services agreement to be entered into by the Company, Cactus and Baker Hughes providing for the provision of services by certain Business Employees to the Company Group following the Closing, substantially in the form attached hereto as <u>Exhibit B</u>.

"<u>GESA Employee</u>" has the meaning set forth in <u>Section 10.4(a)</u>.

"<u>GESA Employee Term</u>" means, as to any given Business Employee, the services term specified in the GESA, during which the Business Employee will be an employee of Baker Hughes or one of its Affiliates other than a member of the Company Group following the Closing.

"<u>Government Approvals</u>" has the meaning set forth in <u>Section 6.1(c)</u>.

"<u>Governmental Authority</u>" means any court, administrative agency, legislative body or committee, entity, commission or tribunal in the U.S. or any other non-U.S. jurisdiction, or any other transnational, domestic or foreign federal, provincial, state, territorial, county, local, foreign, regional, or other governmental or quasi-governmental authority, instrumentality (including entities owned or controlled by any government), agency, entity, tribunal, regulatory or administrative authority or commission in the U.S. or any other non-U.S. jurisdiction, including any taxing authority, and any public non-U.S. organization, commission, agency, regulator, or political party.

"<u>Governmental Order</u>" means any order, writ, judgment, injunction, decree, stipulation, determination, penalty, or award entered by or with any Governmental Authority.

"<u>Group Policy</u>" has the meaning set forth in <u>Section 4.25</u>.

"<u>Guarantee Date</u>" has the meaning set forth in <u>Section 7.4</u>.

"<u>Hazardous Materials</u>" means (a) any substance that is regulated, or as to which standards of conduct are imposed, under or pursuant to any applicable Environmental Law, (b) any chemical, substance, material, or waste that is defined, listed, designated, or classified as, or included in the definition of, "hazardous substance," "hazardous material," "hazardous waste," "restricted hazardous waste," "extremely hazardous waste," "toxic waste," "extremely hazardous substance," "toxic substance," "toxic pollutant," "contaminant," "pollutant," and any other word of similar meaning or import in any applicable Environmental Law, (c) petroleum hydrocarbons, petroleum products, petroleum substances, oil and natural gas exploration and production wastes, natural gas, condensate, crude oil, and any derivatives thereof, (d) asbestos and asbestos-containing material, lead-containing paint, toxic mold, polychlorinated biphenyls, radioactive material, urea formaldehyde, and radon, and (e) perfluorooctanoic acid, perfluorooctone sulfate, and any other per- or polyfluoroalkyl substances.

"<u>Hedge Contract</u>" means any forward, futures, derivative, swap, collar, put, call, cap, floor, option, forward equivalent or other similar Contract that is intended to benefit from, relate to, or reduce or eliminate the risk of fluctuations in interest rates, currency rates, indices, basis risk or the price of commodities, and any financial transmission rights and auction revenue rights.

"<u>ICDR</u>" has the meaning set forth in <u>Section 14.5(b)</u>.

"<u>ICDR Mediation Rules</u>" has the meaning set forth in <u>Section 14.5(b)</u>.

"<u>Inactive Business Employee</u>" means a Business Employee who is on Leave.

"<u>Indemnified Party</u>" means a Cactus Indemnitee or a Baker Hughes Indemnitee.

"<u>Indemnifying Party</u>" has the meaning set forth in <u>Section 12.4(a)</u>.

"<u>Independent Expert</u>" has the meaning set forth in <u>Section 3.6(c)</u>.

"<u>Independent Valuation Firm</u>" means Deloitte LLP.

"<u>Indirect Transfer Taxes</u>" means all Taxes (other than any Taxes imposed on or measured by direct or indirect income, profits or gain) imposed by any Governmental Authority in any non-U.S. jurisdiction in connection with the indirect transfer of (a) assets located in such jurisdiction or (b) Equity Interests in an entity formed, incorporated or otherwise established in such jurisdiction, in each case, in connection with the transactions contemplated under this Agreement (including the Restructuring Transactions) and the other Transaction Documents.

"<u>Inspection Indemnitees</u>" has the meaning set forth in <u>Section 7.10(b)</u>.

"<u>Intellectual Property Rights</u>" means any and all intellectual property or similar proprietary rights in any and all jurisdictions of the world, including (a) patents and patent applications (including all reissues, divisions, continuations, continuations-in-part, extensions and reexaminations thereof) issued, registered or applied for, and all improvements to the inventions disclosed in each such patent or patent application ("<u>Patents</u>"), (b) trademarks, service marks, trade dress, logos, domain names, trade names, corporate names and all other designations of commercial source or origin (whether or not registered), including all registrations and applications for registration of the foregoing and all goodwill associated therewith ("<u>Trademarks</u>"), (c) rights in works of authorship, copyrights (whether or not registered) and registrations and applications for registration thereof, including such rights in Software and including all derivative works, moral rights, renewals, extensions, reversions or restorations associated with such copyrights, now or hereafter provided by applicable Law, regardless of the medium of fixation or means of expression, (d) rights in computer software (including source code, object code, firmware, operating systems and specifications), (e) rights in trade secrets, inventions (whether patentable or unpatentable and whether or not reduced to practice), manufacturing and production processes and techniques, specifications, designs, drawings, bills of materials, formulas, and, whether or not confidential, business information (including pricing and cost information, business and marketing plans and customer and supplier lists) research and development information and know-how ("<u>Trade Secrets</u>"), (f) rights in data, databases and data collections, (g) rights of publicity, privacy and endorsement, (h) industrial designs and registrations and applications for registration thereof throughout the world, and (i) all rights to sue or recover and retain damages and costs and attorneys' fees for past, present and future infringement or misappropriation of any of the foregoing.

"<u>IP Assignment Agreement</u>" means an intellectual property assignment agreement between Baker Hughes (on behalf of Baker Hughes and certain applicable Affiliates of Baker Hughes) as assignor and the Company as assignee in respect of the Business Owned IP in substantially the form attached hereto as <u>Exhibit C</u>.

"<u>IP License Agreements</u>" means (a) a license agreement between Baker Hughes (on behalf of Baker Hughes and certain applicable Affiliates of Baker Hughes), as licensor of the Baker Hughes IP other than the inbound Third Party licenses set forth on <u>Schedule 1.1(b)</u>, and the Company, as licensee of such Baker Hughes IP, in substantially the form attached hereto as <u>Exhibit D</u>, and (b) an intellectual property license agreement between the Company as licensor of the Business Owned IP and Baker Hughes (or its Affiliate) as licensee of the Business Owned IP in substantially the form attached hereto as <u>Exhibit E</u>.

"<u>Iraq Business</u>" means the portion of the Business located in Iraq, including the Business Assets set forth on <u>Schedule 1.1(Iraq)</u>, provided that for the avoidance of doubt, the Iraq Business does not include the Excluded Iraq Contract and all liabilities and claims related thereto.

"<u>Iraq Contract Expiry</u>" has the meaning set forth in <u>Section 3.9(b)</u>.

"<u>Iraq Employees</u>" means those Business Employees as may be employed or engaged to provide services to the Iraq Business from time to time.

"<u>Iraq Employer</u>" has the meaning set forth in <u>Section 3.9(e)</u>.

"<u>Iraq Notice"</u> has the meaning set forth in <u>Section 3.9(c)</u>.

"<u>IRS</u>" means the U.S. Internal Revenue Service or any successor agency or department with primary responsibility for adopting, interpreting and enforcing provisions of the Code.

"<u>Joint Use Facilities</u>" has the meaning set forth in <u>Section 4.17(f)</u>.

"<u>Joint Venture</u>" has the meaning set forth in <u>Section 2.1</u>.

"<u>Knowledge</u>" or any other similar knowledge qualification in this Agreement means, (a) when used in connection with Baker Hughes with respect to any matter in question on or prior to the Closing and regardless of whether such individual is a Continuing Service Provider, the actual knowledge of Zaher Ibrahim, Hazem Youssef, Francesca Pugnetti, Stephen Graham, FangXin Lin, Muayad Bahelwan and Irina Filozova, and (b) when used in connection with Cactus with respect to any matter in question, the actual knowledge of Alan Boyd and Stephen Tadlock, in each case of clause (a) and (b) and subject to <u>Schedule 1.1(KNOW)</u>, after reasonable inquiry by such individual.

"<u>Labor Agreement</u>" means each collective bargaining agreement, Contract or other agreement or obligation with or with respect to a labor or trade union, works council or labor organization, employee representative body or similar employee representative body that Baker Hughes or its Affiliate is bound by, or is currently otherwise negotiating.

"<u>Law</u>" means any transnational, domestic or foreign federal, state, cantonal, directives, local, municipal, foreign or international, multinational other law, statute, Governmental Order, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling, or requirement (including the Foreign Corrupt Practices Act of 1977 and any similar law) issued, enacted, adopted, promulgated, implemented, or otherwise put into effect by or under the authority of any Governmental Authority.

"<u>Lease Agreements</u>" has the meaning set forth in <u>Section 4.17(c)</u>.

"<u>Leased Property</u>" has the meaning set forth in <u>Section 4.17(a)</u>.

"<u>Leave</u>" means an authorized leave of absence for which the Business Employee has a right of re-instatement per the policy of Baker Hughes or its applicable Affiliate (including long-term or short-term disability leave, leave under the FMLA and parental leave or similar leave, but excluding vacation or sick leave, jury duty leave, bereavement leave or similar leave).

"<u>Liabilities</u>" means debts (including Debt), liabilities and obligations, whether accrued or fixed, absolute or contingent, known or unknown, liquidated or unliquidated, secured or unsecured, vested, or unvested, determined or determinable, or otherwise, including those arising under any Law, Action, or Governmental Order and those arising under any Contract, arrangement, or undertaking.

"<u>LLC Agreement</u>" means the amended and restated limited liability company agreement concerning the joint ownership of the Company, dated as of the Closing Date, by and among the Company, Baker Hughes and Cactus to be entered into in substantially the form attached hereto as <u>Exhibit F</u>.

"<u>Losses</u>" has the meaning set forth in <u>Section 12.2(a)</u>.

"<u>MAE Exception Events</u>" has the meaning set forth in the definition of "Material Adverse Effect".

"<u>Material Adverse Effect</u>" means any event, fact, change, circumstance, effect or condition that individually or in the aggregate with all other events, facts, changes, circumstances, effects or conditions, is or would be reasonably expected to be, materially adverse to the Business or the condition (financial or otherwise) or results of operations of the Business, taken as a whole; *provided*, *however*, that any adverse effect arising out of, resulting from or attributable to any one or more of the following shall not constitute or be deemed to contribute to a Material Adverse Effect: (a) an event or circumstances or series of events or circumstances affecting (i) any country or jurisdiction in which the Business operates or the global economy generally or capital, financial, banking, credit or securities markets generally, including changes in interest or exchange rates, (ii) political conditions generally of any country or jurisdiction in which the Business operates, or (iii) any industry generally in which the Business or any customers thereof operates (including the demand for, and the availability and pricing of, raw materials, oil and other commodities, marketing and transportation) or in which products or services of the Business are used or distributed; (b) any changes in applicable Law or generally accepted accounting principles used in the United States, as in effect from time to time, or accounting principles, practices or policies Baker Hughes or any of its Affiliates is required to adopt, or the enforcement or interpretation thereof; (c) any acts of God, including any earthquakes, hurricanes, tornadoes, floods, tsunami, or other natural disasters; (d) any hostilities, acts of war (whether or not declared), sabotage, terrorism, insurrection or military actions, or any escalation or worsening of any such hostilities, act of war, sabotage, terrorism, insurrection or military actions; (e) the effect of any epidemic, pandemic or disease outbreak (including the COVID-19 virus); or (f) any failure to meet internal or published projections, estimates or forecasts of revenues, earnings, or other measures of financial or operating performance for any period (*provided*, that the underlying causes of such failures (subject to the other provisions of this definition) shall not be excluded) (the events set forth in (a) through (f) being "<u>MAE Exception Events</u>"); *provided*, that clauses (a) through (e) above apply only to the extent such result, occurrence, change, fact, event, circumstance, condition or effect has not had, or would not reasonably be expected to have, a disproportionate effect on the Business relative to other participants of the same size and scope in the industry and businesses in which the Business operates.

"<u>Material Contract</u>" has the meaning set forth in <u>Section 4.14</u>.

"<u>Material Customers</u>" means the ten (10) largest customers of the Business by revenue received by the Business during the Fiscal Years ended December 31, 2023 and 2024, as listed in <u>Section 4.22</u> of the Disclosure Schedules.

"<u>Material Lease</u>" means any lease relating to Leased Property that is material to the Business, taken as a whole.

"<u>Material Permits</u>" means material Permits required to conduct the Business and operate the Business Assets in the Ordinary Course.

"<u>Material Suppliers</u>" means the ten (10) largest vendors and suppliers of the Business as measured by the dollar amount of purchases therefrom or expenditures therewith during the Fiscal Years ended December 31, 2023 and 2024, as listed in <u>Section 4.22</u> of the Disclosure Schedules.

"<u>Membership Interests</u>" has the meaning set forth in the recitals.

"<u>Mexican VAT Claim</u>" has the meaning set forth in <u>Section 9.6(a)</u>.

"<u>Multiemployer Plan</u>" has the meaning ascribed to such term in Section 4001(a)(3) or 3(37) of ERISA (without regard to clause (iii) of such definition (whether or not the Benefit Plan is subject to ERISA)).

"<u>MWE</u>" has the meaning set forth in <u>Section 14.14</u>.

"<u>New Business Entity</u>" has the meaning set forth in <u>Section 4.6(a)</u>.

"<u>Non-Transferring Business Employee</u>" has the meaning set forth in <u>Section 10.9(c)</u>.

"<u>Nonassignable Asset</u>" has the meaning set forth in <u>Section 2.7(a)</u>.

"<u>Nonconformities</u>" means all product, execution and service nonconformities that are required to be documented in accordance with American Petroleum Institute Specifications 6A, Q1 and Q2.

"<u>Nonparty Affiliates</u>" has the meaning set forth in <u>Section 14.13</u>.

"<u>Nonpublic Information</u>" means (a) Personal Information, and (b) information that is not publicly available information and is business-related information the tampering with which, or unauthorized disclosure, access, or use of which, would materially and adversely impact the Business, the ability to operate the Business Assets, or the security of Baker Hughes or its Affiliates.

"<u>Offered Business Employee</u>" has the meaning set forth in <u>Section 10.4(a)</u>.

"<u>Order</u>" means, with respect to any Person, any order (including any executive order), injunction, judgment, decision, determination, award, writ, ruling, finding, stipulation, assessment or decree, or other similar requirement of, or entered, enacted, adopted, promulgated, or applied by, with, or under the supervision of, a Governmental Authority or arbitrator.

"<u>Ordinary Course</u>" means, with respect to any action taken by any Person, that (a) such action is taken in the ordinary course of business consistent with past practice, or (b) if taken in response to any MAE Exception Event or volatility in the industries in which the Business operates, such action is materially consistent with the actions taken by other companies in such industries or as would be taken by a reasonably prudent businessperson in response thereto.

"<u>Organizational Documents</u>" means any charters, articles of incorporation, certificates of incorporation, certificates of formation, articles of association, bylaws, operating agreements, certificates of limited partnership, partnership agreements, limited liability company agreements, and all other similar organizational documents, instruments or certificates executed, adopted or filed in connection with the creation, formation or organization of any Person, including any amendments thereto.

"<u>Owned Property</u>" has the meaning set forth in <u>Section 4.17(a)</u>.

"<u>Parent Guarantees</u>" has the meaning set forth in <u>Section 7.4</u>.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the preamble.

"<u>Patents</u>" has the meaning set forth in the definition of "Intellectual Property Rights".

"<u>Payoff Letters</u>" has the meaning set forth in <u>Section 7.11</u>.

"<u>Permits</u>" means any permit, license, consent, registration, concession, grant, franchise, certificate, identification numbers exemption, waiver, or filing issued or required by any Governmental Authority under applicable Law.

"<u>Permitted Lien</u>" means (a) mechanics, materialmen's, workman's, carrier's, repairer's, warehouseman and other similar Encumbrances incurred in the Ordinary Course with respect to any amounts not yet due and payable as of the Closing Date or which are being contested in good faith by appropriate proceedings, (b) liens for Taxes (i) not yet due and payable as of the Closing Date or (ii) that are being contested in good faith by appropriate proceedings, in each case of clauses (i) and (ii), for which adequate reserves have been established on the Unaudited Financial Statements, (c) Encumbrances securing rental payments under capital lease agreements, (d) with respect to Owned Property or Leased Property, Encumbrances (other than Encumbrances securing monetary obligations) on such Owned Property or Leased Property, that (i) are matters of public record, and (ii) do not materially interfere, individually or in the aggregate, with the present use or operation of, or materially decrease the value of, any Owned Property or Leased Property, (e) nonexclusive licenses granted in the Ordinary Course with respect to Intellectual Property Rights, (f) Encumbrances (excluding licenses to Intellectual Property Rights and liens relating to work performed, government impositions, borrowing of money or other monetary liens) arising in the Ordinary Course that do not materially interfere, individually or in the aggregate, with the present use or operation of an Owned Property or Leased Property, (g) Encumbrances described in the Disclosure Schedules under the heading "Permitted Liens", (h) with respect to an Owned Property or Leased Property, zoning, building and other generally applicable land use restrictions imposed by applicable Law that do not, individually or in the aggregate, materially interfere with the present use or operation of such Owned Property or Leased Property, and (i) with respect to any Leased Property or Owned Property, any Encumbrance the existence of which is disclosed on an accurate survey that has been made available to Cactus; *provided*, *however*, that no Encumbrances arising under the provisions of ERISA or the parallel provisions of the Code or any similar applicable Law shall be a Permitted Lien.

"<u>Person</u>" means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, Governmental Authority, cooperative, association, individual or other legally recognized entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such person as the context may require.

"<u>Personal Information</u>" means all information that could be reasonably linked, directly or indirectly, to a particular Person and that is protected under a Privacy Requirement.

"<u>Post-Closing Statement</u>" has the meaning set forth in <u>Section 3.6(a)</u>.

"<u>Pre-Closing Tax Period</u>" each taxable period that ends on or before the Closing Date.

"<u>Preferential Rights</u>" has the meaning set forth in <u>Section 4.5(b)</u>.

"<u>Privacy Requirement</u>" means (a) all applicable Laws relating to the privacy, data protection, and cybersecurity of Personal Information, including, to the extent applicable, federal and state privacy Laws and breach notification Laws, and non-U.S. Laws such as the European Unions' General Data Protection Regulation, (b) contractual obligations requiring Baker Hughes or its Affiliates to protect the privacy, confidentiality, integrity, and/or availability of Personal Information, (c) internal or external policies, procedures, or statements of Baker Hughes and its Affiliates related to the processing, collection, use, storage, transfers, or protection of Personal Information protected, and (d) consents related to the processing, collection, use, storage, transfers, or protection of Personal Information.

"<u>Prohibited Payment</u>" means any direct or indirect bribe, rebate, payoff, facilitating payment, gratuity, influence payment, kickback, or other payment or gift of money or anything of value to any officer, employee, or ceremonial office holder of any Governmental Authority, any political party, or supra-national organization, or to any other public or private Person, in each case for the purpose of obtaining or retaining business or a commercial advantage, alleged or otherwise in violation of any applicable Law.

"<u>Prohibited Person</u>" means: (a) any Person listed on any restricted or prohibited party list maintained by any Trade Controls Authority; (b) any Person that is resident, operating, located, or organized in a Sanctioned Country; (c) any Governmental Authority of any Sanctioned Country or Venezuela; (d) any Person that acts on behalf of, or is owned or controlled by, any of the foregoing; or (e) any Person that is otherwise the target of Sanctions.

"<u>Qualifying Offer</u>" means an offer of employment made in accordance with Law (and including any applicable waiver agreement required under applicable Law) by the Company or one of its Subsidiaries to a Business Employee that provides for the terms of employment set forth in <u>Section 10.6</u>.

"<u>Quarterly Financial Statements</u>" has the meaning set forth in <u>Section 6.4</u>.

"<u>R&W Policy</u>" means the standalone representation and warranty insurance policy to be issued by Illinois Union Insurance Company for coverage of any inaccuracy in or breach of any of Baker Hughes's representations and warranties contained in <u>ARTICLE IV</u>, including any excess representations and warranties insurance policies providing coverage in excess of the policy attached to the R&W Policy Conditional Binder.

"<u>R&W Policy Conditional Binder</u>" means the conditional binder of the R&W Policy in the form attached hereto as <u>Exhibit G</u>.

"<u>Records</u>" means all documents, instruments, papers, books and records, books of account, files and data Related to the Business, including (i) customer lists, supplier lists, accounting books and records, Tax Returns of each member of the Company Group, and (ii) building and machinery diagrams and plans, product drawings and accompanying specifications, engineering plans, drawings, specifications and documents related to any equipment of customers that has been serviced by Baker Hughes or its Affiliates in the conduct of the Business, well files required to manage the aftermarket services business included in the Business, and all land and title data files; *provided, however,* that in the case of the foregoing <u>clause (ii)</u>, Baker Hughes and its Affiliates shall be entitled to retain copies of such Records to the extent not used exclusively in the Business; *provided*, *further*, that "<u>Records</u>" shall not include the following: (a) Baker Hughes's or any of its Affiliates' (other than the Company Group) general corporate books, records and files, even if containing references to the Business or the Company Group; (b) any Tax records (including Tax Returns) of Baker Hughes or its Affiliates (other than the Company Group); *provided, however,* that Baker Hughes and its Affiliates shall be entitled to retain copies of all Tax records (including Tax Returns) of the Company Group related to Pre-Closing Tax Periods; (c) personnel and employment records, other than those records related to Continuing Service Providers that Cactus receives pursuant to <u>ARTICLE X</u> and that Baker Hughes or its Affiliates are not prohibited from disclosing (after using commercially reasonable efforts to obtain any applicable consents to disclosure from applicable Third Parties) or transferring under applicable Law and that are required by applicable Law to be retained; (d) information relating solely to the process conducted for the sale of the Business, including bids received from Third Parties in connection with the transactions contemplated by this Agreement and information and analysis (including financial analysis) relating to such bids; and (e) Work Product (clauses (a) through (e), "<u>Retained Records</u>").

"<u>Registered IP</u>" means Intellectual Property Rights registered with a Governmental Authority, including patents, patent applications (including all patents issuing thereon and all continuation applications of all types, including reissuances, divisions, continuations, continuations in part, revisions, extensions and re-examinations thereof), statutory invention registrations, registered trademarks, registered service marks, pending applications to register and/or renew trademarks or service marks, copyright registrations and pending applications to register and/or renew copyrights.

"<u>Regulations</u>" means (a) the Acquired Rights Directive 77/187/EC, 98/50/EC and 2001/23/EC and all national legislation enacted to give effect to the Acquired Rights Directive 77/187/EC, 98/50/EC and 2001/23/EC in each member state of the European Economic Area in which one or more Business Employees are based or carry out their work from time to time, and (b) all other national or provincial Law which effects the automatic transfer of employees on the sale or transfer or continuation of a business.

"<u>Related to the Business</u>" means (a) with respect to any asset, owned, used or held for use by Baker Hughes or any of its Affiliates primarily in connection with the Business and (b) with respect to any Liability, primarily arising out of or primarily relating to the Business, in each case of clauses (a) and (b) as conducted by Baker Hughes or its Affiliates in the Ordinary Course.

"<u>Relevant Period</u>" has the meaning set forth in <u>Section 3.9(e)</u>.

"<u>Release</u>" means any release, spill, emission, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, injection, escaping, deposit, disposal, discharge, dispersal, dumping, or leaching into or through the environment (including the abandonment or discarding of barrels, containers, and other closed receptacles containing any Hazardous Materials).

"<u>Remedial Action</u>" has the meaning set forth in <u>Section 4.18(b)</u>.

"<u>Reorganization Government Approvals</u>" has the meaning set forth in <u>Section 6.1(d)</u>.

"<u>Reorganization Plan</u>" has the meaning set forth in <u>Section 6.2(a)</u>.

"<u>Required SEC Filings</u>" has the meaning set forth in <u>Section 6.4(b)</u>.

"<u>Response Notice</u>" has the meaning set forth in <u>Section 12.4(d)</u>.

"<u>Restructuring Transactions</u>" means the transactions referenced in or otherwise contemplated by the Reorganization Plan and subject to changes to the extent permitted by <u>Section 6.2</u>.

"<u>Retained Records</u>" has the meaning set forth in the definition of "Records."

"<u>Sales Representative</u>" means a commercial, independent, third-party intermediary authorized to market or sell products and or services of the Business in an assigned territory of the Business.

"<u>Sanctioned Country</u>" means any country or territory targeted by comprehensive, country-wide, or territory-wide Sanctions, which as of the date of this Agreement comprise Cuba, Iran, North Korea, Syria, and the Crimea, Donetsk People's Republic, and Luhansk People's Republic regions of Ukraine.

"<u>Sanctions</u>" has the meaning set forth in the definition of "Trade Control Laws".

"<u>Saudi JV Dividend</u>" has the meaning set forth in <u>Schedule 1.1 (SJVD</u>).

"<u>Shared Contract</u>" means any contract, agreement, lease, license, commitment, sale or purchase order or other instrument entered into prior to the Closing that is between Baker Hughes or any of its Affiliates, on one hand, and one or more Persons, on the other hand, that inures to the benefit or burden of (a) the Business or the Company Group, on one hand, and (b) any business of Baker Hughes or its Affiliates other than the Business, as applicable, on the other hand.

"<u>Software</u>" means all (a) computer programs, including all software implementation of algorithms, models and methodologies, whether in source code, object code, human readable form or other form, (b) databases and compilations, including all data and collections of data, whether machine readable or otherwise, (c) descriptions, flow charts and other work products used to design, plan, organize and develop any of the foregoing, screens, user interfaces, report formats, firmware, development tools, templates, menus, buttons and icons, and (d) all documentation including user manuals and other training documentation relating to any of the foregoing.

"<u>Specified Iraq Contract</u>" has the meaning set forth in <u>Section 3.9(f)</u>.

"<u>Statutory Indemnity Obligations</u>" means indemnity or severance obligations arising under applicable Law, including statutory end-of-service benefits and pension benefits required by statute.

"<u>Statutory Plan</u>" means a statutory program that is administered by a Governmental Authority and to which Baker Hughes, the Company or any Affiliate of Baker Hughes or the Company is required to make contributions pursuant to applicable social security, workers' compensation, workplace safety insurance or employment-related legislation.

"<u>Straddle Period</u>" means any taxable year or period that includes but does not end on the Closing Date.

"<u>Subject Entities</u>" means (a) the Subsidiaries of Baker Hughes to be contributed or transferred to the Company pursuant to the Restructuring Transactions in accordance with the Reorganization Plan, and (b) any New Business Entity, in each case which are contemplated by the Reorganization Plan and which are listed in <u>Schedule 1.1(d)</u> attached hereto and which list may be amended in accordance with <u>Section 6.2(d)</u>.

"<u>Subsidiary</u>" means, with respect to any specified Person, any other Person of which such specified Person owns (either directly or through one or more of its Subsidiaries) a majority of the outstanding Equity Interests having a majority of the voting power in the election of the board of directors or other governing body of such other Person, and with respect to which entity such specified Person is not otherwise prohibited contractually or by other legally binding authority from exercising control. For purposes hereof, a specified Person shall be deemed to have a majority ownership interest in a limited liability company, partnership, association, or other business entity (other than a corporation) if such Person and its Affiliates are allocated a majority of limited liability company, partnership, association, or other business entity gains or losses or shall be or control any managing member, trustee or general partner of such limited liability company, partnership, association, or other business entity. For purposes hereof (a) references to a "<u>Subsidiary</u>" of any Person shall be given effect only at such times that such Person has one or more Subsidiaries, (b) unless otherwise indicated, the term "<u>Subsidiary</u>" refers to a Subsidiary of the Company, (c) the Company shall be deemed to be a Subsidiary of Baker Hughes prior to the Closing and shall not be deemed to be a Subsidiary of Baker Hughes or Cactus following the Closing, and (d) for purposes of the term "wholly-owned Subsidiary," the foregoing instances of "a majority" in this definition will be deemed to be replaced with "all."

"<u>Surface</u>" means on land or above the water, including platforms. For the avoidance of doubt, "Surface" does not mean subsea.

"<u>Synthetic Lease</u>" means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing arrangement whereby the arrangement is considered borrowed money indebtedness for tax purposes but is classified as an operating lease or does not otherwise appear on a balance sheet in conformity with GAAP.

"<u>Tangible Property</u>" has the meaning set forth in <u>Section 4.24(d)</u>.

"<u>Tax</u>" or "<u>Taxes</u>" means any federal, state, provincial, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, base erosion, customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, ad valorem, sales, use, transfer, registration, value added, alternative or add-on minimum, escheat or unclaimed property (whether or not treated as a tax under applicable Law), estimated, or any other tax of any kind whatsoever, whether computed on a separate or consolidated, unitary or combined basis or in any other manner, including any interest, penalty, or addition thereto, whether disputed or not and including any obligation to indemnify or otherwise assume or succeed to the Tax Liability of any other Person.

"<u>Tax Contest</u>" has the meaning set forth in <u>Section 9.5</u>.

"<u>Tax Purchase Price</u>" has the meaning set forth in <u>Section 6.2(e)</u>.

"<u>Tax Return</u>" means any return, document, declaration, rendition, report, election, claim for refund or information return or statement filed or required to be filed with any Governmental Authority relating to Taxes, including any attachment and any amendment thereof.

"<u>Terminating Baker Hughes Breach</u>" has the meaning set forth in <u>Section 13.1(c)</u>.

"<u>Terminating Cactus Breach</u>" has the meaning set forth in <u>Section 13.1(d)</u>.

"<u>Termination Date</u>" has the meaning set forth in <u>Section 13.1(b)</u>.

"<u>Third Party</u>" means a Person other than the Company, Baker Hughes or Cactus or an Affiliate of any of the foregoing.

"<u>Third Party Claim</u>" has the meaning set forth in <u>Section 12.4(a)</u>.

"<u>Third Party Rights</u>" means any and all rights of Baker Hughes or any of its Affiliates against a Third Party (including any Governmental Authority) associated with any Business Asset, claim, right or benefit.

"<u>Trade Control Laws</u>" means (a) any Laws concerning or relating to economic, financial, or trade sanctions, embargoes, or restrictive measures ("<u>Sanctions</u>"), (b) any export control, antiboycott, or import Laws, or (c) any anti-terrorism Laws or Anti-Money Laundering Laws, administered, enacted, or enforced by any Trade Controls Authority.

"<u>Trade Controls Authority</u>" means: (a) the United States government, including the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), the U.S. Department of State's Directorate of Defense Trade Control (DDTC), the U.S. Department of Commerce's Bureau of Industry and Security (BIS), and U.S. Customs and Border Protection (CBP), (b) the United Nations, (c) the European Union or its member States, (d) the United Kingdom, or (e) any other Governmental Authority in any jurisdiction where any member of the Company Group operates or trades, in each case of clauses (a) to (e), that administers, enacts, or enforces Trade Control Laws.

"<u>Trade Secrets</u>" has the meaning set forth in the definition of "Intellectual Property Rights".

"<u>Trademark License Agreements</u>" means (a) the Trademark License Agreement to be entered into by the Company and Baker Hughes substantially in the form attached hereto as <u>Exhibit H-1</u>, pursuant to which Baker Hughes will make available to the Company certain of the Baker Hughes Name and Baker Hughes Marks and (b) the Trademark License Agreement to be entered into by the Company and Cactus substantially in the form attached hereto as <u>Exhibit H-2</u>, pursuant to which Cactus will make available to the Company certain names and marks of Cactus.

"<u>Trademarks</u>" has the meaning set forth in the definition of "Intellectual Property Rights".

"<u>Transaction Accounting Principles</u>" means the accounting principles, policies, procedures and methodologies set forth in <u>Schedule 1.1(e)</u> attached hereto.

"<u>Transaction Documents</u>" means this Agreement, the Ancillary Agreements, and all other agreements, certificates, schedules, exhibits or other instruments delivered by the Parties in connection with any of the foregoing agreements necessary to effect the transactions contemplated by this Agreement.

"<u>Transaction Expenses</u>" means, without duplication, the aggregate amount of any out-of-pocket fees, costs, expenses that any member of the Company Group is obligated to pay or to which the Business Assets are subject, in each case, arising on or prior to the Closing (regardless of whether an invoice therefor is received after the Closing) in connection with the preparation and execution of this Agreement or the other Transaction Documents and the consummation of the transactions contemplated by this Agreement or the other Transaction Documents, including developing and implementing the Reorganization Plan and giving effect to the Restructuring Transactions, in each case, solely to the extent not paid as of the Closing, including (a) fees, costs or expenses of counsel, brokers' and finders', advisors, consultants, investment bankers, accountants, auditors incurred on or prior to the Closing, (b) any fees, costs or expenses associated with obtaining the release and termination on or prior to the Closing of any Encumbrances on the Membership Interests or the Business Assets of any member of the Company Group other than Permitted Liens (excluding, for the avoidance of doubt, any Closing Debt Amount), and (c) the Baker Hughes Transfer Taxes, and other Transfer Taxes for which Baker Hughes is liable pursuant to <u>Section 9.9</u>; *provided*, that Transaction Expenses shall also include (w) the portion of the R&W Policy premium borne by Baker Hughes pursuant to <u>Section 6.3</u>, (x) the fees and other payments borne by Baker Hughes as contemplated by the last sentence of <u>Section 6.1(c)</u> and the last sentence of <u>Section 6.1(d)</u>, (y) the fees, costs and expenses to be borne by Baker Hughes in accordance with <u>Section 14.1</u>, and (z) any other fees to be borne by Baker Hughes as expressly set forth in this Agreement. Notwithstanding the foregoing, Transaction Expenses shall not include (i) the portion of the R&W Policy premium borne by Cactus pursuant to <u>Section 6.3</u>, (ii) the fees or other payments borne by Cactus as contemplated by the last sentence of <u>Section 6.1(c)</u>, (iii) the fees, costs or expenses to be borne by Cactus in accordance with <u>Section 14.1</u> or (iv) any other fees to be borne by Cactus as expressly set forth in this Agreement or that specifically relate to the operation of the Company Group by Cactus after the Closing. Notwithstanding the foregoing, "Transaction Expenses" shall not include any fees, costs or expenses that are included in the determination of Closing Working Capital or the Closing Debt Amount or that are expressly required to be borne by Cactus pursuant to the terms hereof. For the avoidance of doubt, Transaction Expenses does not include any expenses of the Company on and after Closing under any Transaction Documents that are required to be performed following the Closing.

"<u>Transfer Taxes</u>" means all transfer, documentary, sales, use, excise, stamp, registration, filing, recordation, valued-added and other similar Taxes and fees (including charges for or in connection with the recording of any instrument or document and any interest, penalties, assessments or additions imposed thereon or with respect thereto), and shall include any Indirect Transfer Taxes and any withholding Taxes with respect to the foregoing, but for the avoidance of doubt excluding income, profits or gains Taxes (and indirect capital gains and withholding Taxes with respect to the foregoing).

"<u>Transition Services Agreement</u>" means the transition services agreement, dated as of the Closing Date, by and between the Company and Baker Hughes to be entered into in substantially the form attached hereto as <u>Exhibit I</u>, but subject to modification of Schedule A thereto solely to the extent contemplated by the lead-in to Schedule A attached thereto.

"<u>TUPE Regulations</u>" means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (UK) as amended from time to time.

"<u>U.S.</u>" means United States of America.

"<u>UK</u>" means the United Kingdom of Great Britain and Northern Ireland.

"<u>Unaudited Financial Statements</u>" has the meaning set forth in <u>Section 4.9(a)</u>.

"<u>Undisclosed Employee</u>" has the meaning set forth in <u>Section 10.9(d)</u>.

"<u>VAT Claim Forms</u>" has the meaning set forth in <u>Section 9.6(a)</u>.

"<u>WARN Act</u>" means the U.S. Federal Worker Adjustment and Retraining Notification Act of 1988 and any comparable federal, state, provincial, local or foreign applicable Law.

"<u>WilmerHale</u>" has the meaning set forth in <u>Section 14.14</u>.

"<u>Work Product</u>" has the meaning set forth in <u>Section 14.14</u>.

Section 1.2 <u>Rules of Construction</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) Unless the context of this Agreement otherwise requires: (i) words of any gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively; (iii) the terms "hereof," "herein," "hereby", "hereto" and derivative or similar words refer to this Agreement; (iv) the terms "Article," "Section," "Exhibit" or "Schedule" refer to the specified Article or Section of this Agreement or an Exhibit or Schedule attached to this Agreement unless otherwise specified; (v) the words "include," "includes" and "including" mean include, includes and including without limitation; (vi) references to "written" or "in writing" include in electronic form; (vii) the term "or" shall be deemed to mean "and/or"; (viii) any Law or Contract defined or referred to in this Agreement or in any agreement or instrument that is referred to herein means such Law or Contract as from time to time amended, modified or supplemented, including (in the case of statutes) by succession of comparable successor Laws and the related regulations thereunder and published interpretations thereof; *provided*, that, for purposes of any representations and warranties contained in this Agreement that are made as of a specific date or dates, references to any Law or Contract shall be deemed to refer to such Law or Contract, as amended, and (in the case of Laws) the related regulations thereunder and published interpretations thereof, in each case, as of such date; (ix) the term "applicable Law" shall be deemed to mean, with respect to any Person, any Law that is binding upon or applicable to such Person, as amended unless expressly specified otherwise; and (x) documents or other materials shall be deemed "provided" or "made available" (and all similar phrases used herein that mean such) to a Party only to the extent such documents or other materials were present in the online data room entitled "Project Speed" hosted by Venue® and maintained by Baker Hughes (the "<u>Data Room</u>") for purposes of the transactions contemplated by this Agreement two (2) Business Days prior to the execution of this Agreement (the "<u>Data Room Upload Date</u>"), except with respect to documents or materials that are required, if and as applicable, to be provided to a Party following the date of this Agreement, which shall be deemed "provided" or "made available" on the date that such documents are circulated as provided in <u>Schedule 1.2</u>. The article and section headings and the table of contents contained in this Agreement are for convenience of reference only and shall in no way define, limit, extend or describe the scope, meaning or intent of any provisions of this Agreement. Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are 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;(b) Each party has participated in the negotiation and drafting of the Transaction Documents and if an ambiguity or question of interpretation should arise, the Transaction Document shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or burdening either party by virtue of the authorship of any provision in a Transaction Document and the language used therein will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against either party.

ARTICLE II<u><br> Establishing the Joint Venture; Pre-Closing Actions</u>

Section 2.1 <u>Establishing the Joint Venture</u>. Upon the terms and subject to the conditions of the Transaction Documents, upon Closing, the Parties and their applicable Affiliates shall enter into a strategic relationship pursuant to the terms of this Agreement and by executing and delivering the Transaction Documents to which each is a party (the "<u>Joint Venture</u>"). Following the Closing of the transactions contemplated hereunder, Baker Hughes and Cactus shall be the only members of the Company, collectively owning, directly or indirectly, one hundred percent (100%) of the Membership Interests, which shall constitute all of the Company's issued and outstanding Equity Interests on the Closing Date.

Section 2.2 <u>Extraction of Cash</u>. Prior to the Closing, Baker Hughes shall, and shall cause its Affiliates to, use its commercially reasonable efforts, taking into account the needs of the Business, to distribute or otherwise extract excess Cash in any member of the Company Group; *provided*, that Baker Hughes shall, and shall cause its Affiliates to, maintain no less than approximately the minimum Cash amounts in each jurisdiction as set forth on <u>Schedule 2.2</u>. Any Cash remaining in any member of the Company Group shall be included in the calculation of the payments to be made pursuant to <u>Section 3.6</u>.

Section 2.3 <u>Business Assets</u>. Except as otherwise provided herein, pursuant to the Restructuring Transactions as contemplated by the Reorganization Plan, Baker Hughes shall, and shall cause its Affiliates to, contribute, convey, transfer, assign and deliver, or cause to be contributed, conveyed, transferred, assigned and delivered, to the Company or the Subject Entities, and the Company agrees to, or agrees to cause such Subject Entities to, accept, at or prior to the Closing, free and clear of all Encumbrances, other than Permitted Liens, all of Baker Hughes's and its Affiliates' right, title and interest in, to and under (x) the assets, properties and business, of every kind and description, Related to the Business, other than Intellectual Property Rights, and (y) the Business Owned IP, in each case as the same shall exist immediately prior to giving effect to the Restructuring Transactions (collectively, with the Business Contracts and any assets that are already owned by the Company Group as of immediately prior to giving effect to the Restructuring Transactions, the "<u>Business Assets</u>"). For the avoidance of doubt, with respect to Intellectual Property Rights, only the Business Owned IP shall constitute Business Assets. For the avoidance of doubt and without limiting the foregoing (except as otherwise indicated in the remainder of this <u>Section 2.3</u> or the defined terms used in the remainder of this <u>Section 2.3</u>), the Business Assets include 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;(a) all Business Inventory and Business Accounts Receivable;

&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) all deposits (including customer deposits and credits and security deposits for rent, electricity, telephone or otherwise), prepaid charges, expenses, current and long-term Contract assets, credits, sums and fees, in each case, 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;(c) the bank accounts of the Subject Entities;

&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) all rights to the Owned Property and Leased Property, together with all improvements, fixtures and other appurtenances thereto and rights in respect 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;(e) all Tangible Property and other tangible assets, in each case, 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;(f) all Records, including, for the avoidance of doubt, all corporate seals, minute books, stock books, books of account or other Records having to do with the corporate organization of any member of the Company Group, including the Organizational Documents of each 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;(g) all Material Permits, in each case, 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;(h) all rights under non-disclosure or confidentiality, non-competition or non-solicitation agreements with (i) Continuing Service Providers and, (ii) if Related to the Business, with agents or with Third Parties;

&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) all rights under or pursuant to all warranties, representations and guarantees made by suppliers, manufacturers and contractors, in each case, 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;(j) all Actions, and rights of recourse against Third Parties, whether choate or inchoate, known or unknown, contingent or non-contingent, in each case, Related to the Business, including any Third Party Rights;

&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) all goodwill Related to the Business, other than any goodwill connected with the use of and symbolized by any Baker Hughes Name and Baker Hughes Marks; 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;(l) all Equity Interests in each of the Subject Entities.

Section 2.4 <u>Excluded Assets</u>. After giving effect to the Restructuring Transactions in accordance with the Reorganization Plan, neither the Company nor any Subject Entity will have any right, title or interest, in or to, and neither Baker Hughes nor any of its Affiliates shall transfer to the Company or any Subject Entity in connection with the Restructuring Transactions or at or prior to Closing, whether by virtue of the transfer of the Membership Interests, pursuant to this Agreement or the Transaction Documents, or otherwise, any of the assets, properties or rights, of Baker Hughes or its Affiliates (or any of their predecessors) that are not Business Assets (collectively, the "<u>Excluded Assets</u>"), which Excluded Assets expressly include (a) the Retained Records, and (b) the other assets and properties of Baker Hughes or its Affiliates (or any of their predecessors) set forth in <u>Schedule 2.4</u> attached hereto, which other assets and properties would be Business Assets but for their inclusion on <u>Schedule 2.4</u>.

Section 2.5 <u>Business Liabilities</u>. Upon the terms and subject to the conditions of this Agreement and pursuant to the Reorganization Plan, the Company shall, effective at or prior to the Closing, assume or retain, or cause the applicable Subject Entities to assume or retain, all obligations and Liabilities of Baker Hughes and its applicable Affiliates of any kind, character or description (whether known or unknown, accrued, absolute, contingent or otherwise and whether arising before, on or after the Closing) to the extent Related to the Business and that are not Excluded Liabilities (the "<u>Business Liabilities</u>"). For the avoidance of doubt and without limiting the foregoing (except as otherwise indicated in the remainder of this <u>Section 2.5</u> or the defined terms used in the remainder of this <u>Section 2.5</u>), the Business Liabilities include 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;(a) current Liabilities of the Business or 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) Liabilities under Business Contracts and Material Permits, but only to the extent such Business Contracts and Material Permits, as applicable, are assigned to the Company Group or the Company Group otherwise receives the rights and benefits of such Business Contracts and Material Permits pursuant to <u>Section 2.7</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) Liabilities relating to the employment or engagement or termination of employment or engagement of any Continuing Service Provider (including GESA Employees, Business Agency Workers, or other similar worker providing services to the Business), in each case, whether arising before, on or after the Closing and regardless of whether such Liability was created, known, or existed prior to such date, other than the Baker Hughes Employee Liabilities; 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;(d) Liabilities for Taxes but only to the extent Related to the Business for any Tax period beginning after the Closing Date or the post-Closing period of any Straddle Period (determined in accordance with <u>Section 9.3</u>).

Section 2.6 <u>Excluded Liabilities</u>. Notwithstanding any provision in this Agreement or any other Transaction Document to the contrary, the members of the Company Group are assuming from Baker Hughes and its Affiliates only the Business Liabilities and no member of the Company Group is assuming (and no member of the Company Group shall retain) any other Liability or obligation of Baker Hughes or its Affiliates of any kind, character or description (whether known or unknown, accrued, absolute, contingent or otherwise and whether arising before, on or after the Closing), expressly including any such Liabilities or obligations related to or arising out of any of the Excluded Assets. All such other Liabilities and obligations shall be assumed or retained (as applicable) by, and become or remain (as applicable) obligations and Liabilities of, Baker Hughes and its Affiliates (all such Liabilities and obligations not being assumed or retained (as applicable) by a member of the Company Group being herein referred to as the "<u>Excluded Liabilities</u>"). For the avoidance of doubt and without limiting the foregoing, the Excluded Liabilities include 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;(a) except to the extent included in the calculation of the Closing Payment Amount, any Liability for Transaction Expenses or Debt;

&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) Baker Hughes Employee 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;(c) Liabilities for any Baker Hughes Indemnified Tax;

&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) except to the extent included in the calculation of the Closing Payment Amount, any Liabilities relating to, arising out of or resulting from any Nonassignable Asset that is not validly and effectively assigned to the Company Group or to which the Company Group does not otherwise receive the rights and benefits pursuant to <u>Section 2.7</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;(e) Liabilities related to any Joint Use Facility that is not included in the Business 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;(f) the Liabilities expressly set forth on <u>Schedule 2.6</u> attached hereto.

Section 2.7 <u>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) Notwithstanding anything to the contrary in this Agreement or any other Transaction Document, neither this Agreement nor any other Transaction Document constitutes an agreement to sell, assign, transfer, contribute, convey or deliver (together with its correlative terms, a "<u>Conveyance</u>") any Business Asset if such Business Asset (i) is not transferable in accordance with applicable Law, (ii) is not transferable without a requisite Consent, or (iii) is cancelable by a Third Party in the event of an assignment or change of control (such Business Asset specified in the foregoing clauses (i), (ii), or (iii) to be referred to hereinafter as a "<u>Nonassignable Asset</u>"), unless and until, with respect to clauses (ii) and (iii), such Consent or consent to assignment or change of control (each, an "<u>Approval</u>") shall have been obtained. If any such Approval for a Nonassignable Asset is not obtained on or prior to the Closing Date, then Baker Hughes will, and will cause its Affiliates to, use their respective commercially reasonable efforts after the Closing to obtain such Approval and shall keep Cactus reasonably informed on a current basis of the status of efforts to obtain such Approvals. Notwithstanding anything in this <u>Section 2.7(a)</u>, neither Baker Hughes nor any of its Affiliates shall be obligated to pay any money to any Person or to offer or grant other financial or other accommodations to any Person in connection with obtaining any such Approval; *provided*, that Baker Hughes shall not, and shall cause its Affiliates not to, offer or grant any accommodation (financial or otherwise, regardless of any provision to the contrary in the underlying Contract, including any requirements for the securing or posting of any bonds, letters of credit or similar instruments, or the furnishing of any guarantees) to any Third Party to obtain any Approval unless and to the extent that Cactus consents to such accommodation in writing in its sole discretion; *provided*, *however*, that Cactus agrees to act reasonably and in good faith with respect to its consideration of any such offer or grant of a financial or other accommodation. The obligations set forth in this <u>Section 2.7(a)</u> will continue through and after 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) The Conveyance of any Nonassignable Asset will be effected promptly in accordance with the terms of this Agreement and any other applicable Transaction Document if and when (i) the legal or contractual impediments that caused the Conveyance of such Nonassignable Asset to be deferred pursuant to <u>Section 2.7(a)</u> are removed, (ii) both Cactus and Baker Hughes mutually agree that all Approvals necessary for the Conveyance of such Nonassignable Asset are immaterial or need not cause the deferred Conveyance of such Nonassignable Asset, or (iii) any Approvals necessary for the Conveyance of such Nonassignable Asset pursuant to <u>Section 2.7(a)</u> are obtained, in each case of clauses (i) through (iii), as applicable. The obligations set forth in this <u>Section 2.7(b)</u> will continue through and after Closing. For the avoidance of doubt, satisfaction by Baker Hughes and its Affiliates of their obligations under <u>Section 6.2</u> in respect of the Restructuring Transactions shall not be affected or otherwise deemed not to have been satisfied as a result of the application of this <u>Section 2.7</u> to any Business Assets transferred pursuant to the Restructuring Transactions (and the application thereof shall not be deemed to delay the Closing or be a Deferred Closing, 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) If the Conveyance of any Nonassignable Asset intended to be conveyed is not consummated prior to or on the Closing Date (including pursuant to the Restructuring Transactions), whether as a result of the provisions of <u>Section 2.7(a)</u> or for any other reason, then, insofar as reasonably possible (taking into account any applicable restrictions or considerations relating to the contemplated tax treatment of the transactions contemplated by this Agreement) and to the extent permitted by applicable Law, Baker Hughes or its Affiliate that retains such Nonassignable Asset will (i) thereafter hold such Nonassignable Asset in trust for the use and benefit and burden of the Company Group (and at the Company's expense, to the extent the Company Group is receiving the rights and benefits thereof) until the consummation of the Conveyance thereof (or as otherwise determined by Cactus and Baker Hughes in accordance with <u>Section 2.7(b)(ii)</u>), and (ii) use commercially reasonable efforts to take such other actions as may be reasonably requested by Cactus (at Baker Hughes's or its applicable Affiliate's expense) in order to place the Company Group in substantially the same position as if such Nonassignable Asset had been conveyed as contemplated hereby and by the Restructuring Transactions and so that all the benefits and burdens relating to such Nonassignable Asset, including possession, use, risk of loss, potential for gain, any Tax liabilities (other than Baker Hughes Indemnified Taxes) in respect thereof and dominion, control and command over such Nonassignable Asset, inure to the Company Group from and after the Closing. The obligations set forth in this <u>Section 2.7(c)</u> will continue through and after Closing. For the avoidance of doubt, with respect to any Nonassignable Asset that is a Business Contract, Baker Hughes shall not be deemed to be in breach of this <u>Section 2.7</u>, nor shall it otherwise be liable for the obligations of the non-Baker Hughes counterparty to such Business Contract, in the event such counterparty breaches its obligations under such Business 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) For the avoidance of doubt, the Conveyance of any Nonassignable Assets under this <u>Section 2.7</u> shall be effected without any additional consideration payable by Cactus or any of its Affiliates.

ARTICLE III<u><br> Closing</u>

Section 3.1 <u>Closing</u>. The closing (the "<u>Closing</u>") of the transactions contemplated by this Agreement and the other Transaction Documents shall take place on the first Business Day of the month following the month during which the conditions set forth in <u>ARTICLE XI</u> (other than such conditions which, by their nature, are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permissible, waiver of such conditions at the Closing) are satisfied or, to the extent permissible, waived by the party entitled to the benefit of, such conditions set forth therein (the "<u>Closing Date</u>"), or such other day as may be mutually agreed by the Parties in writing. All actions to be taken and all documents, instruments and agreements to be executed and delivered at the Closing shall be deemed to have been taken, executed and delivered simultaneously, and no action shall be deemed taken and no document, instrument or agreement executed or delivered until all have been taken, executed and delivered. Subject to the preceding sentence, irrespective of the order of the exchange and receipt of Closing deliveries, so long as the Closing occurs on, or as of, the Closing Date, the Closing shall be deemed effective as of 12:01 AM Eastern Time on the Closing Date.

Section 3.2 <u>Closing Deliveries</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) At the Closing, Cactus shall deliver, or cause to be delivered, to Baker Hughes or the Company, as applicable, 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;(i) an officer's certificate from Cactus duly executed on behalf of Cactus by an executive officer thereof certifying to the requisite corporate or other action of Cactus authorizing the transactions contemplated by this Agreement and the other Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) each of the Cactus Group Employee Services Agreement, the LLC Agreement and the Trademark License Agreements, each of which shall be duly executed by Cactus or its Affiliates, as the applicable party; 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) by wire transfer to the accounts of Baker Hughes or, solely for the convenience of and at the specific direction of Baker Hughes, one of its Affiliates designated by Baker Hughes by notice to Cactus, which notice shall be delivered not later than two (2) Business Days prior to the Closing Date (or, if not so designated, then by certified or official bank check payable in immediately available funds to the order of Baker Hughes in such amount) an amount in cash that is equal to the following (such amount, the "<u>Estimated Payment Amount</u>"): (A) $344,500,000, *minus* (B) any downward adjustment contemplated by <u>Schedule 7.12</u>, if applicable, *minus* (C) the Estimated Capital Expenditure Underage Amount (if any), *plus* (D) an amount (which may be a negative number) equal to (I) the Estimated Working Capital Overage Amount (if any), *minus* (II) the Estimated Working Capital Underage Amount (if any), *plus* (III) 65% of the Estimated Cash Amount, *minus* (IV) the Estimated Debt Amount, *minus* (V) the Estimated Transaction Expenses; *provided*, that, for purposes of applying the requirements, if any, of <u>Section 3.10</u>, the Parties agree that any wire transfer to an account of an Affiliate of Baker Hughes shall be treated as having been made directly to Baker Hughes and then made by Baker Hughes to such Affiliate.

&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) At the Closing, Baker Hughes shall deliver, or cause to be delivered, to Cactus 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;(i) an officer's certificate from Baker Hughes duly executed on behalf of Baker Hughes by an executive officer thereof certifying to the requisite corporate or other action of Baker Hughes and the Company authorizing the transactions contemplated by this Agreement and the other Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) each of the LLC Agreement, the Transition Services Agreement, the Baker Hughes Commercial Agreement, the Global Employee Services Agreement, the Cactus Group Employee Services Agreement, the IP Assignment Agreement, the Trademark License Agreements, and the IP License Agreements, each of which shall be duly executed by the Company, Baker Hughes or their respective Affiliates, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other instruments of transfer, filing or documents as may be reasonably required to give effect to this Agreement and the other Transaction Documents, and the consummation of the transactions contemplated hereby and 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;(iv) an IRS form W-9 from Baker Hughes (or, if Baker Hughes is disregarded as separate from another Person, such other Person); 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;(v) to Cactus, the Payoff Letters, if any.

Notwithstanding the foregoing, in the case of <u>Section 3.2(a)</u> and <u>Section 3.2(b)</u> above, any deliverable to the extent related to any Deferred Closing shall be delivered at the applicable Deferred Closing pursuant to <u>Section 3.7(b)</u>.

Section 3.3 <u>Other Actions to Occur Prior to or at the Closing</u>. Without limiting any other provision of this Agreement, Baker Hughes and the Company will use commercially reasonable efforts to ensure that arrangements are put in place such that Baker Hughes Pressure Controls Limited, a private limited company organized under the Laws of the UK, shall cease to (a) participate as an employer in and (b) have any Liability to the UK DB Plan on or prior to the Closing Date.

Section 3.4 <u>Purchase and Sale of the Membership Interests</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) Upon the terms and subject to the conditions set forth herein, at the Closing, Baker Hughes and/or one of its designated Affiliates shall sell to Cactus and/or its applicable Affiliate, and Cactus shall, or shall cause its applicable Affiliate to, purchase from Baker Hughes and/or one of its designated Affiliates, Membership Interests equal to sixty-five percent (65%) of the issued and outstanding Equity Interests in the Company (the "<u>Cactus Membership Interests</u>") in exchange for the Closing Payment and the Deferred Payment as provided in <u>Section 3.4(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;(b) In consideration for the purchase of the Cactus Membership Interests, Cactus shall, or shall cause its applicable Affiliate to, pay to Baker Hughes (and/or one of its designated Affiliates on behalf of, and as agent for, Baker Hughes) (i) at the Closing, an amount in immediately available funds equal to the Estimated Payment Amount as contemplated by <u>Section 3.2(a)(iii)</u> (which amount is subject to adjustment after the Closing as provided in <u>Section 3.6</u>) and (ii) on the first anniversary of the Closing Date, an amount in immediately available funds equal to (A) $10,000,000.00 *<u>minus</u>* (B) an amount equal to (1) the 2024 Saudi JV Dividend, *<u>plus</u>* (2) the 2025 Saudi JV Dividend, to the extent the Saudi JV Dividend has been paid as of the first anniversary of the Closing Date, *<u>minus</u>* (3) the portion of the amount of Cash held as of the Closing Date by the Saudi JV to which the Company is not entitled (directly or indirectly) (the "<u>Deferred 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;(c) Following the purchase and sale of the Cactus Membership Interests, at the Closing (i) Baker Hughes and/or its applicable wholly-owned Subsidiaries will collectively own thirty-five percent (35%) of the outstanding Membership Interests, and (ii) Cactus and/or its applicable Affiliates will collectively own sixty-five percent (65%) of the outstanding Membership Interests, which, collectively, shall constitute all of the issued and outstanding Equity Interests 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;(d) For the avoidance of doubt, any adjustments to the cash proceeds pursuant to <u>Section 3.6</u> or indemnity obligations pursuant to this Agreement shall not result in the issuance of any additional Membership Interests or the redemption of any Membership Interests issued pursuant to this <u>Section 3.4</u>.

Section 3.5 <u>Estimated Closing Statements</u>. No fewer than five (5) Business Days before the anticipated Closing Date, Baker Hughes shall prepare in good faith and deliver to Cactus a written statement, which shall include Baker Hughes's good faith calculation of the Estimated Working Capital, Estimated Working Capital Overage Amount (if any), Estimated Working Capital Underage Amount (if any), Estimated Capital Expenditure Underage Amount (if any), Estimated Cash Amount, Estimated Debt Amount, Estimated Transaction Expenses, and the resulting Estimated Payment Amount (the "<u>Estimated Closing Statement</u>"). Cactus will be entitled to review and comment upon the Estimated Closing Statement and Baker Hughes's calculation of Estimated Working Capital, Estimated Working Capital Overage Amount (if any), Estimated Working Capital Underage Amount (if any), Estimated Capital Expenditure Underage Amount (if any), Estimated Cash Amount, Estimated Debt Amount, Estimated Transaction Expenses, and the resulting Estimated Payment Amount after the delivery thereof and prior to the Closing. Baker Hughes will consider in good faith any such comments and may (but is not required to) revise the Estimated Closing Statement prior to the Closing to reflect such comments; *provided*, that in no event shall such consultation or the delivery of the Estimated Closing Statement be deemed to constitute the agreement of Cactus to any of the estimates or amounts set forth in the Estimated Closing Statement, and in no way shall the delivery of the Estimated Closing Statement or the consummation of the Closing be construed as a waiver by Cactus of its rights under <u>Section 3.6</u>. Baker Hughes shall prepare the Estimated Closing Statement in accordance with the terms and provisions of the Agreement, including the Transaction Accounting Principles.

Section 3.6 <u>Post-Closing 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) As promptly as practicable, but no later than one hundred eighty (180) days after the Closing Date, Cactus will cause to be prepared and delivered to Baker Hughes a statement (the "<u>Post-Closing Statement</u>") setting forth the good faith calculation of the Closing Working Capital (and the resulting Closing Working Capital Overage Amount (if any) or Closing Working Capital Underage Amount (if any), as applicable), the Closing Capital Expenditure Underage Amount (if any), the Closing Cash Amount, the Closing Debt Amount, and the Closing Transaction Expenses. Together with the delivery of the Post-Closing Statement, each of Cactus and the Company shall provide such schedules and data as may be reasonably appropriate to support the calculations of Closing Working Capital (and the resulting Closing Working Capital Overage Amount (if any) or Closing Working Capital Underage Amount (if any), as applicable), the Closing Capital Expenditure Underage Amount (if any), the Closing Cash Amount, the Closing Debt Amount, and the Closing Transaction Expenses set forth therein. Cactus shall prepare the Post-Closing Statement in accordance with the terms and provisions of the Agreement, including the Transaction Accounting Principles.

&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) Baker Hughes shall have a period of sixty (60) days following delivery of the Post-Closing Statement delivered pursuant to <u>Section 3.6(a)</u> to review the calculations set forth therein. During such sixty (60)-day period, the Company shall provide to Baker Hughes reasonable access to all work papers, documentation and data prepared or used by Cactus or the Company in connection with preparation of the Post-Closing Statement (subject, in the case of work papers of independent accountants, to Baker Hughes signing a customary access letter relating to access to work papers in form and substance reasonably acceptable to such independent accountants). If Baker Hughes disagrees with Cactus's calculation of any of the items set forth in the Post-Closing Statement delivered pursuant to <u>Section 3.6(a)</u>, then Baker Hughes shall, no later than the expiry of such sixty (60)-day period, deliver a written notice to Cactus and the Company disagreeing with such calculation and which specifies Baker Hughes's calculation of such amount and the resulting calculation of whichever of the Closing Working Capital (and the resulting Closing Working Capital Overage Amount (if any) or Closing Working Capital Underage Amount (if any), as applicable), the Closing Capital Expenditure Underage Amount (if any), the Closing Cash Amount, the Closing Debt Amount, and the Closing Transaction Expenses, is affected (such notice, the "<u>Dispute Notice</u>"), and, in reasonable detail, the objecting party's grounds for such disagreement. Any Dispute Notice shall specify those items or amounts as to which the objecting party disagrees, and the objecting party shall be deemed to have agreed with all other items and amounts contained in the Post-Closing Statement delivered pursuant to <u>Section 3.6(a)</u> to which it does not object in the Dispute 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;(c) In the event that Baker Hughes and Cactus are unable to agree in writing on the resolution of all items disputed in any Dispute Notice(s) duly delivered pursuant to <u>Section 3.6(b)</u> no later than thirty (30) days following delivery and receipt of such Dispute Notice(s), the unresolved disputed items may thereafter be referred by either Baker Hughes or Cactus for final, binding resolution by an internationally recognized independent public accountant with significant experience in resolving purchase price disputes, that is mutually agreeable to Baker Hughes and Cactus (the "<u>Independent Expert</u>"). The Independent Expert shall determine, acting as an expert and not an arbitrator, based solely on presentations and written submissions by Baker Hughes and Cactus, without ex parte communications, and not by independent review, only those items or amounts in the Post-Closing Statement that Baker Hughes and Cactus were unable to resolve. In making its determination, the Independent Expert (i) shall be bound by the terms and conditions of this Agreement, including the Transaction Accounting Principles, the definitions of Closing Working Capital, Closing Working Capital Overage Amount, Closing Working Capital Underage Amount, the Closing Capital Expenditure Underage Amount, the Closing Cash Amount, the Closing Debt Amount, the Closing Transaction Expenses and the terms of this <u>Section 3.6(c)</u>, and (ii) may not assign any value with respect to a disputed amount that is greater than the highest value for such amount claimed by any of the Company, Baker Hughes or Cactus or that is less than the lowest value for such amount claimed by any of the Company, Baker Hughes or Cactus in the Post-Closing Statement and the Dispute Notice. The Independent Expert shall deliver to Baker Hughes, Cactus and the Company, as promptly as practicable, but in any event no later than sixty (60) days of its engagement pursuant to this <u>Section 3.6(c)</u>, a report setting forth its calculations, which report shall be final and binding upon Baker Hughes and Cactus. The fees and expenses of the Independent Expert shall be borne by Baker Hughes or Cactus in inverse proportion to the value of the disputed amounts resolved in favor of each such 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;(d) Cactus and Baker Hughes agree that they will, and agree to cause the Company and their respective independent accountants to, reasonably cooperate and assist in the preparation of the Post-Closing Statement, and in the conduct of the reviews referred to in this <u>Section 3.6</u>, including the making available to the extent reasonably necessary of books, records, work papers and personnel (subject to reasonable confidentiality restrictions and to providing such assurances, releases, indemnities or other agreements as accountants may customarily require in such circumstances). The process set forth in this <u>Section 3.6</u> shall be the exclusive remedy among the Parties for any disputes related to items required to be reflected on the Post-Closing Statement or included in the calculation of Closing Working Capital (and the resulting Closing Working Capital Overage Amount (if any) or Closing Working Capital Underage Amount (if any), as applicable), the Closing Capital Expenditure Underage Amount (if any), the Closing Cash Amount, the Closing Debt Amount, and the Closing Transaction Expenses; *provided*, that nothing in this <u>Section 3.6(d)</u> shall limit or otherwise restrict Cactus's rights or ability to seek or recover any amounts under the R&W Policy.

&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) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Closing Payment Amount exceeds the Estimated Payment Amount, then Cactus shall pay to Baker Hughes the amount by which the Closing Payment Amount exceeds the Estimated Payment Amount; 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;(ii) the Estimated Payment Amount exceeds the Closing Payment Amount, then Baker Hughes shall pay to Cactus the amount by which the Estimated Payment Amount exceeds the Closing Payment Amount.

&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) Any payment pursuant to <u>Section 3.6(e)</u> shall be made at a mutually convenient time and place no later than two (2) Business Days after the Closing Payment Amount has been finally determined pursuant to this <u>Section 3.6</u>, by delivery by Baker Hughes or Cactus, as the case may be, of cash by wire transfer of immediately available funds to the bank account designated by the party entitled to such payment, which notice shall be delivered no later than two (2) Business Days prior to the date such payment is to be made (or if not so designated, then by certified or official bank check payable in immediately available funds to the order of the party entitled to such payment in such amount).

Section 3.7 <u>Deferred Funding and Deferred 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) As of the Closing, if, and only if, any Deferred Actions have not been completed with respect to any Deferred Business, then the closing of the transactions contemplated hereby with respect to such Deferred Business (each "<u>Deferred Closing</u>") shall not take place at the Closing (and, for the avoidance of doubt, shall not be deemed to prevent Closing from occurring) and shall instead take place as soon as possible following the Closing, but in any event within five (5) Business Days, after the date on which all the conditions described in <u>Section 3.7(c)</u> are satisfied or, to the extent permitted by applicable Law, waived, in each case with respect to such Deferred Business (each, a "<u>Deferred Closing Date</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) At the applicable Deferred 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;(i) Cactus shall, or shall cause its Affiliates (including any member of the Company Group after the Closing) to, deliver to Baker Hughes or its Affiliates any of the documents or other deliverables required to be delivered pursuant to <u>Section 3.2</u> to the extent related to such Deferred Business and not previously delivered to Baker Hughes; 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) Baker Hughes shall deliver, or cause to be delivered, to Cactus or its Affiliates (including any member of the Company Group after the Closing) any of the documents or other deliverables required to be delivered pursuant to <u>Section 3.2</u> to the extent related to such Deferred Business and not previously delivered by Baker Hughes.

&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) The obligation of the Parties hereto to consummate the applicable Deferred Closing shall be subject to the satisfaction of or waiver (in the sole discretion of Baker Hughes), at or prior to the applicable Deferred Closing Date, of the condition that no provision of any applicable Law shall prohibit consummation of such Deferred Closing, and no Order of any Governmental Authority having competent jurisdiction shall prohibit the consummation of the Deferred 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) As of the Closing if, and only if, any Deferred Funding Steps have not been completed, then, notwithstanding <u>Section 3.2</u>, such Deferred Funding Steps shall instead take place as soon as possible following the Closing (and for the avoidance of doubt shall not be deemed to prevent the Closing from occurring), but in any event prior to the relevant Deferred Closing Date. In connection therewith the Company shall, or shall cause its Affiliates to, implement the Deferred Funding Steps.

Section 3.8 <u>Obligations with respect to the Deferred 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) With respect to the Deferred Actions and any Deferred Business, and subject to and as permitted by applicable Law, Baker Hughes shall operate such Deferred Business in the Ordinary Course solely for the benefit of Cactus, the Company and the Company Group. The Parties shall cooperate in good faith to determine and satisfy (or cause to be satisfied) as promptly as practicable the requirements for establishing local operations in each applicable jurisdiction related to any Deferred Business in order to effectuate the Deferred Closing and operate such Deferred Business in such jurisdiction, including with respect to (i) required business or other permits or licenses and (ii) bank account 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;(b) With respect to any Deferred Business, following the Closing, Baker Hughes and Cactus shall have a continuing obligation to use their commercially reasonable efforts to cooperate with each other and to obtain promptly such Approvals necessary to effect the Deferred 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) With respect to any Deferred Business, from the Closing Date until the Deferred Closing Date with respect to such Deferred Business, Baker Hughes and Cactus shall, to the extent permitted by contractual obligation and applicable Law, use commercially reasonable efforts to cooperate in a mutually agreeable arrangement under which the Company Group would obtain the benefits, assume the obligations and bear the economic burdens associated with operating such Deferred Business (including, for the avoidance of doubt, the costs of any compensation or benefits in respect of any Deferred Business Employees). For purposes of this <u>Section 3.8(c)</u>, "<u>Deferred Business Employees</u>" means any Business Employee of a Deferred Business that has not transferred to a member of the Company Group as of the Closing and remains with such Deferred Business and is not a GESA 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;(d) For applicable tax purposes, except as otherwise required by a "determination" within the meaning of Section 1313(a) of the Code or other applicable Law, ownership of any Deferred Business will be considered to transfer from the applicable Baker Hughes Subsidiary to the Company or applicable member of the Company Group on the Closing Date. During the period between Closing and the Deferred Closing Date and with respect to any Deferred Business, for financial reporting purposes it is the intention (to the extent permissible under applicable Law) to enable Baker Hughes to de-consolidate any such Deferred Business from the retained business of Baker Hughes.

Section 3.9 <u>Obligations with Respect to the Iraq Business</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) Notwithstanding anything to the contrary in this Agreement, the provisions of this <u>Section 3.9</u> shall apply in respect of the Iraq Business, which shall neither form part of the Restructuring Transactions for the purposes of <u>Section 6.2</u> and <u>Section 11.2(f)</u>, nor be a Deferred Business for the purposes of <u>Section 3.7</u> and <u>Section 3.8</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) With respect to the Iraq Business, following Closing and subject to and as permitted by applicable Law, Baker Hughes shall operate the Iraq Business in the Ordinary Course solely for the benefit of Cactus, the Company and the Company Group (including through the provision of services under Ancillary Agreements) until the earlier of (i) the date on which all contractual obligations owing to third parties (including under any Contracts other than the Excluded Iraq Contract) in respect of the Iraq Business have been satisfied in full or such contractual arrangements have otherwise been terminated (such date, the "<u>Iraq Contract Expiry</u>"), and (ii) the completion of the acquisition by Cactus of the Iraq Business from Baker Hughes or the implementation of an alternative arrangement in accordance with <u>Section 3.9(c)</u> as contemplated by an Iraq Notice received by Baker Hughes in accordance with <u>Section 3.9(c)</u>; *provided*, that, for the purposes of the arrangements under this <u>Section 3.9</u>, Baker Hughes and Cactus shall, to the extent permitted by contractual obligation and applicable Law, use commercially reasonable efforts to cooperate in a mutually agreeable arrangement under which the Company Group would obtain the benefits, assume the obligations and bear the economic burdens associated with the Iraq 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) In the event Cactus desires to acquire, directly or indirectly, the Iraq Business or otherwise determines an alternative arrangement whereby it would hold the Iraq Business (whether directly or indirectly), it shall provide Baker Hughes with written notice specifying with reasonable detail its proposed arrangement, together with a plan (including timeline) for the implementation thereof (the "<u>Iraq Notice</u>"). Upon receipt of an Iraq Notice, Baker Hughes shall cooperate in good faith with Cactus to agree as promptly as practicable on the arrangement pursuant to which Cactus, its Affiliates or the Company Group will acquire for no additional consideration the Iraq Business from Baker Hughes following Closing as set forth in the Iraq Notice; *provided*, that, for the avoidance of doubt, Baker Hughes shall not be obligated to transfer legal ownership of the Iraq Business or any of the Business Assets owned, used or held for use by Baker Hughes or any of its Affiliates primarily in connection with the Iraq Business to Cactus or the Company Group unless and until an Iraq Notice has been delivered in accordance with this <u>Section 3.9(c)</u> and such arrangements for the transfer of the Iraq Business have been agreed between the Parties (acting reasonably).

&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) Neither Baker Hughes nor its Affiliates shall be required to, and without Cactus's prior written consent Baker Hughes shall not, and shall cause its Affiliates not to, enter into any new Contracts or otherwise renew or extend any existing Contracts in respect of the Iraq Business, or take any other actions in respect of the Iraq Business that would reasonably be expected to materially and adversely impact Baker Hughes or its Affiliates or the Company 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) The Iraq Employees shall remain employed by their current employing entity (each an "<u>Iraq Employer</u>") in connection with the operation of the Iraq Business on terms consistent with the past practices of the Iraq Business. Until an Iraq Notice has been delivered to Baker Hughes, the relevant Iraq Employer shall either (i) redeploy the Iraq Employee(s), in which case the Company will have no further obligations or Liabilities in respect of such redeployed Iraq Employee(s), or (ii) terminate their contract of employment within one month of the Iraq Contract Expiry, or such later date as may be required by local Law (such period between the Closing Date and such redeployment or termination, the "<u>Relevant Period</u>"). The Company will indemnify Baker Hughes against any losses incurred by Baker Hughes and its Affiliates (including but not limited to the relevant Iraq Employer) as a direct or indirect result of the employment of the Iraq Employees during the Relevant Period and/or the termination of such employment, including but not limited to any notice, severance or other payments that may arise on or after termination 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;(f) If any assets and/or Iraq Employees forming a part of the Iraq Business are transferred to the Company Group or Cactus before the customer contract listed on <u>Schedule 1.1(Iraq)</u> (such contract, the "<u>Specified Iraq Contract</u>") is assigned to the Company Group (or an applicable Affiliate thereof) such that Baker Hughes is no longer able to fulfill the terms of the Specified Iraq Contract, then the Company Group (or an applicable Affiliate thereof), as applicable, shall fulfill the remaining terms of the Specified Iraq Contract as a subcontractor of Baker Hughes and/or its Affiliates on back to back terms. In such case, the Parties shall use commercially reasonable efforts to cooperate to enter into such subcontracting arrangement.

&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) For the avoidance of doubt, nothing in this <u>Section 3.9</u>, shall be deemed to prevent the Closing from occurring, nor shall any failure by Baker Hughes to transfer the Iraq Business to the Company Group at Closing be deemed to be a breach or violation of any provision of this Agreement so long as Baker Hughes continues to comply with the terms of this <u>Section 3.9</u>.

Section 3.10 <u>Withholding</u>. Cactus and any other applicable withholding agent will be entitled to deduct and withhold from any amount payable pursuant to or as contemplated by this Agreement any withholding Taxes or other amounts required under the Code or any applicable Law to be deducted and withheld; *provided*, that, prior to making any deduction or withholding with respect to any payment made pursuant to this Agreement (other than any withholding (a) arising from Baker Hughes's failure to deliver the forms required to be delivered pursuant to <u>Section 3.2(b)(iv)</u>, or (b) required in respect of any compensatory payments), Cactus shall use commercially reasonable efforts to give Baker Hughes a reasonable amount of prior written notification of its intention to make any such deduction or withholding (including the basis therefor), to the extent practicable, and shall cooperate reasonably and in good faith with Baker Hughes to mitigate, reduce or eliminate any such deduction or withholding to the extent permitted by applicable Laws. To the extent that amounts are so deducted, withheld and remitted to the applicable Governmental Authority, such deducted and withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding were made.

Section 3.11 <u>Intended Tax Treatment</u>. Solely for U.S. federal (and applicable state and local) income Tax purposes, the Parties will treat (and will cause their respective Affiliates to treat) the sale and purchase of the Cactus Membership Interests as the sale and purchase by Cactus of a sixty-five percent (65%) membership interest in the Company governed by Section 741 of the Code (the "<u>Intended Tax Treatment</u>"). Notwithstanding anything to the contrary in this Agreement, the Parties shall not take any position inconsistent with the Intended Tax Treatment on any Tax Return or amendment thereof, in any Tax Contest, or in any other audit, examination, or other proceeding related to Taxes, unless required to do so by a "determination" within the meaning of Section 1313(a) of the Code.

ARTICLE IV<u><br> Representations and Warranties of Baker Hughes</u>

Except as has been set forth in the corresponding sections of the Disclosure Schedules, Baker Hughes represents and warrants to Cactus as of the date of this Agreement (except for such representations and warranties which address matters only as of a specific date, which representations and warranties shall be true and correct as of such specific date) and as of the Closing, that:

Section 4.1 <u>Organization, Good Standing and Qualifications</u>. Baker Hughes and each Affiliate of Baker Hughes that is or will be party to a Transaction Document is duly incorporated, organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation, organization or formation. Baker Hughes and each Affiliate that is or will be party to a Transaction Document has all requisite corporate power and authority to conduct its business as currently conducted and to own, operate and lease its assets. Baker Hughes and each Affiliate of Baker Hughes that is or will be party to a Transaction Document is duly qualified or licensed, as applicable, and in good standing (with respect to jurisdictions that recognize such concept) to do business in each jurisdiction in which the nature of its business or the ownership, operation or leasing of its properties makes such qualification or licensing necessary, except as would not, individually or in the aggregate, (x) be material to the Business or the Company Group, taken as a whole, or (y) reasonably be expected to prevent or materially adversely affect or delay the ability of Baker Hughes or such Affiliate to consummate the transactions contemplated by this Agreement and the other Transaction Documents to which Baker Hughes or such Affiliate is or will be a party or to perform their respective obligations hereunder or thereunder.

Section 4.2 <u>Authority</u>. Baker Hughes has, and each Affiliate of Baker Hughes that is or will be party to any Transaction Documents will have, prior to Closing, all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and the other Transaction Documents to which it is or will be a party and to carry out and perform such party's obligations hereunder and thereunder. The execution and delivery of this Agreement and the other Transaction Documents to which Baker Hughes or any of its Affiliates is or will be a party, and the performance by Baker Hughes or any of its Affiliates of its or their obligations hereunder and thereunder (i) in the case of Baker Hughes have been duly and validly authorized and approved by all necessary corporate actions and (ii) in the case of each Affiliate of Baker Hughes, will be duly and validly authorized and approved by all necessary corporate actions prior to Closing. This Agreement and the other Transaction Documents to which Baker Hughes or any of its Affiliates is or will be a party have been, or will be when executed and delivered, duly executed and delivered by such party and are or will be when executed and delivered (assuming due and valid authorization, execution and delivery hereof and thereof by the other parties thereto) valid and binding obligations of such party, enforceable against Baker Hughes or such Affiliate in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles.

Section 4.3 <u>No Conflicts or Consents</u>. None of the execution, delivery or performance by Baker Hughes and its Affiliates, as applicable, of this Agreement or any other Transaction Documents to which Baker Hughes or any of its Affiliates (other than a Subject Entity) is a party does or will (a) conflict with, or result in a breach or violation of, any provision of the respective constituent organizational documents of Baker Hughes or such Affiliate (if applicable); (b) violate any applicable Law or Order of any Governmental Authority by which such party is bound; (c) constitute, with or without the giving of notice or passage of time or both, a breach, violation or default by Baker Hughes or such Affiliate (if applicable), or create an Encumbrance, or give rise to any right of termination, modification, cancellation, prepayment or acceleration, under (i) any Law, or (ii) Material Lease or Material Contract, in each case, which is applicable to or binding upon Baker Hughes or such Affiliate; or (d) require any filing with, notice to or Consent from any Person that is party to a Material Lease or Material Contracts (other than the other Parties), except, in the case of clauses (c) and (d) above, as would not, individually or in the aggregate, (y) be material to the Business or the Company Group, taken as a whole, or (z) reasonably be expected to prevent or materially adversely affect or delay the ability of Baker Hughes or such Affiliate to consummate the transactions contemplated by this Agreement and the other Transaction Documents to which Baker Hughes or such Affiliate is or will be a party or to perform their respective obligations hereunder or thereunder.

Section 4.4 <u>Regulatory Approvals</u>. Except as set forth in <u>Section 4.4</u> of the Disclosure Schedules and except for (a) such consents, approvals and authorizations that Baker Hughes or any of its Affiliates are required to make or obtain as set forth in the Reorganization Plan, (b) compliance with any applicable requirements under Competition Laws and (c) any action or filing as to which the failure to make or obtain would not, individually or in the aggregate, (y) be material to the Business or the Company Group, taken as a whole, or (z) reasonably be expected to prevent or materially adversely affect or delay the ability of Baker Hughes or such Affiliate to consummate the transactions contemplated by this Agreement and the other Transaction Documents to which Baker Hughes or such Affiliate is or will be a party or to perform their respective obligations hereunder or thereunder, (i) neither Baker Hughes nor any of its Affiliates is required to submit any material notice, report or other filing with any Governmental Authority, and (ii) no material Consent of, or material registration, declaration or other act by, any Governmental Authority is required to be obtained by or of Baker Hughes or any of its Affiliates, in each case in connection with the execution and delivery of this Agreement or the other Transaction Documents to which Baker Hughes or its Affiliates are or will be a party, the consummation of the transactions contemplated hereby or thereby or the performance by Baker Hughes or any of its Affiliates of their respective obligations hereunder or thereunder.

Section 4.5 <u>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) As of the date of this Agreement, all of the Equity Interests of the Company are owned, free and clear of all Encumbrances (except any Encumbrances arising out of, under or in connection with applicable Laws governing securities), beneficially and of record by the Persons listed on <u>Section 4.5(a)</u> of the Disclosure Schedules, in the amounts and of the series, classes or types (as applicable) set forth therein, all of which Persons are wholly-owned Subsidiaries of Baker Hughes. After giving effect to the Restructuring Transactions and as of immediately prior to the Closing, the Membership Interests will constitute all of the issued and outstanding Equity Interests of the Company, all of which will be owned beneficially and of record by Baker Hughes or a wholly-owned Subsidiary of Baker Hughes, free and clear of all Encumbrances (except any Encumbrances arising out of, under or in connection with applicable Laws governing securities). As of the Closing and after giving effect to the transactions contemplated by this Agreement, the Membership Interests will constitute all of the issued and outstanding Equity Interests of the Company, all of which will be held beneficially and of record by Baker Hughes or a wholly-owned Subsidiary of Baker Hughes and Cactus, free and clear of all Encumbrances (except any Encumbrances arising out of, under or in connection with applicable Laws governing securities and the LLC 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) Baker Hughes has made available to Cactus true, correct and complete copies of the Organizational Documents (including all exhibits, schedules, annexes and amendments thereto) of the Company as of the date of this Agreement and, except as set forth on <u>Section 4.5(b)</u> of the Disclosure Schedules, such Organizational Documents are in full force and effect. The Company is in compliance in all material respects with the provisions of its Organizational Documents. As of the date of this Agreement, the issued and outstanding Equity Interests in the Company have been, and as of the Closing the Membership Interests will have been, duly authorized and validly issued, fully paid and nonassessable and have not been and will not be (as applicable) issued in violation of any Contract or in violation of any option, preemptive rights, rights of first offer, rights of first refusal or similar preferential rights to purchase ("<u>Preferential Rights</u>"). There are no restrictions (including any Preferential Rights) upon the voting or transfer of any Equity Interests in the Company pursuant to the Company's Organizational Documents or any agreement to which Baker Hughes or any of its Affiliates is a party, other than this Agreement and the LLC Agreement to be entered into at Closing. The Company has no outstanding bonds, debentures, notes or other obligations the holders of which have the right to vote (or convertible into or exercisable for securities having the right to vote) with the securityholders of the Company on any matter. Except as set forth on <u>Section 4.5(b)</u> of the Disclosure Schedules, as of the date of this Agreement the Company does not own, directly or indirectly, any Equity Interest in any Person. Subject to the completion of the Restructuring Transactions and the Reorganization Plan, other than the Equity Interests in the Subject Entities, as of the Closing the Company will not own, directly or indirectly, any Equity Interests in 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;(c) Except as set forth in <u>Section 4.5(c)</u> of the Disclosure Schedules, during the last four (4) years prior to the date of this Agreement, the Company has not engaged in any business other than the Business.

Section 4.6 <u>The Subject Entities</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) Each Subject Entity (other than a New Business Entity) is, and each business entity that will be formed in connection with the Reorganization Plan and become a member of the Company Group (a "<u>New Business Entity</u>") will be as of Closing, a corporation or other legal Person duly organized, validly existing and in good standing (with respect to jurisdictions that recognize such concept) under the applicable Laws of the jurisdiction of its incorporation or organization and has or will have the requisite corporate or organizational, as the case may be, power and authority to own, lease and operate its properties and assets and to carry on its business as it is now being or will be conducted, except as would not be, individually or in the aggregate, material to the Business or the Company Group, taken as a whole. Each Subject Entity (other than a New Business Entity) is, and each New Business Entity will be as of Closing, duly qualified or licensed, as applicable, to do business and is or will be in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where the ownership, leasing or operation of its properties or assets or the conduct of its business requires such qualification or licensing, except where the failure to be so qualified or in good standing would not reasonably be expected to have, individually or in the aggregate, 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) Baker Hughes has made available or caused to be made available to Cactus true, correct and complete copies of the Organizational Documents (including all exhibits, schedules, annexes and amendments thereto), of each Subject Entity (other than a New Business Entity) and will make available such documents with respect to each New Business Entity prior to Closing. The Organizational Documents of the Subject Entities (other than a New Business Entity) are, and with respect to each New Business Entity, will be as of the Closing, in full force and effect. Each Subject Entity (other than a New Business Entity) is, and with respect to each New Business Entity, will be as of the Closing, in compliance in all material respects with the provisions of its Organizational Documents.

Section 4.7 <u>Ownership and Capital Structure of the Subject Entities</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) <u>Section 4.7(a)</u> of the Disclosure Schedules sets forth a true, correct and complete list of the Subject Entities (other than any New Business Entity) in existence as of the date of this Agreement, together with (i) their respective jurisdictions of organization or incorporation and (ii) a description of all of the authorized and issued Equity Interests and owners of such Equity Interests of each Subject Entity (other than any New Business Entity). As of the date of this Agreement Baker Hughes owns (other than any New Business Entity not existing as of the date of this Agreement), and as of the Closing the Company will own, directly or indirectly, all of the Equity Interests in each of the Subject Entities, in each case free and clear of all Encumbrances, except any Encumbrances arising out of, under or in connection with applicable Laws governing securities.

&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) All of the issued and outstanding Equity Interests in the Subject Entities (other than the New Business Entities) are, and all of the issued and outstanding Equity Interests in the New Business Entities will be as of the Closing, duly authorized and validly issued, fully paid and nonassessable and not issued in violation of any Contract or in violation of any Preferential Rights. There are no options, warrants, "phantom" stock rights, stock based performance units or rights of conversion or other similar rights, agreements, arrangements or commitments obligating the Subject Entities to issue or sell or otherwise dispose of or redeem or otherwise acquire any shares of its capital stock or other Equity Interests convertible into or exchangeable for its shares of capital stock or other Equity Interests, other than the Restructuring Transactions contemplated by this Agreement. Except as set forth on <u>Section 4.7(b)</u> of the Disclosure Schedules, there are no voting trusts, stockholder agreements, proxies or other agreements or arrangements (including Preferential Rights) in effect with respect to the voting or transfer of the Equity Interests in the Subject Entities. No Subject Entity (other than a New Business Entity) has, and no New Business Entity as of the Closing will have, any outstanding bonds, debentures, notes or other obligations the holders of which have the right to vote (or convertible into or exercisable for securities having the right to vote) with the securityholders of such Subject Entity on any matter.

Section 4.8 <u>Required Consents</u>. <u>Section 4.8</u> of the Disclosure Schedules sets forth each Material Contract and/or Material Lease requiring an Approval of any Person as a result of or in connection with the execution and delivery of this Agreement and the other Transaction Documents, the consummation of the transactions contemplated hereby and thereby (including the Restructuring Transactions) and the performance by Baker Hughes and its Affiliates of their respective obligations hereunder and thereunder.

Section 4.9 <u>Financial 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) <u>Section 4.9(a)</u> of the Disclosure Schedules sets forth the unaudited combined statement of assets and liabilities of the Business as of December 31, 2024 (the "<u>Balance Sheet Date</u>") and the unaudited statement of income of the Business for the year ended December 31, 2024 (the "<u>Unaudited Financial Statements</u>"). The Unaudited Financial Statements (i) have been prepared in accordance with GAAP, except as set forth on <u>Section 4.9(c)</u> of the Disclosure Schedules, (ii) have been prepared from and are in accordance with the relevant accounting records of Baker Hughes and its Affiliates applicable to the Business, and (iii) fairly present, in all material respects, the financial condition and results of operations of the Business, as of the applicable dates and for the applicable periods covered thereby; *provided*, that the Unaudited Financial Statements (A) remain subject to normal year-end adjustments that are not, individually or in the aggregate, material to the Business, taken as a whole, and (B) do not have footnotes.

&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) Upon delivery of the Audited Financial Statements, the Audited Financial Statements will (i) have been prepared in accordance with GAAP, (ii) have been prepared from and will be in accordance with the relevant accounting records of Baker Hughes and its Affiliates applicable to the Business, and (iii) fairly present, in all material respects, the financial condition and results of operations of the Business, as of the applicable dates and for the applicable periods covered 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;(c) There are no Liabilities of Baker Hughes or its Affiliates arising out of, relating to or resulting from the operation of the Business or the ownership of the Business Assets, whether or not accrued, contingent, absolute, determined, determinable or otherwise and whether or not required to be disclosed that would be required to be reflected or reserved against in the combined statement of assets and liabilities of the Business prepared in accordance with GAAP (except as modified by <u>Section 4.9(c)</u> of the Disclosure Schedules), except (i) for those Business Liabilities set forth in, reflected in or adequately reserved for in the combined statement of assets and liabilities of the Business included in the Unaudited Financial Statements, (ii) for Business Liabilities incurred since December 31, 2024 in the Ordinary Course, (iii) for future executory Business Liabilities arising under any Contract (other than as a result of a breach of contract, tort, infringement or violation of applicable Law), or (iv) as would not, individually or in the aggregate, 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;(d) Baker Hughes's and its Affiliates' systems of internal controls over financial reporting is sufficient to provide reasonable assurance in all material respects that transactions are recorded as necessary to permit preparation of financial statements, from which the Unaudited Financial Statements were derived, in accordance with GAAP.

Section 4.10 <u>Absence of Certain Changes or Events</u>. Since December 31, 2024, (a) Baker Hughes and its Affiliates have conducted the Business and operated the Business Assets in all material respects in the Ordinary Course, except as contemplated by the Transaction Documents, the Restructuring Transactions or the Reorganization Plan, and (b) there has been no Material Adverse Effect.

Section 4.11 <u>Compliance with Laws</u>. Neither Baker Hughes nor any of its Affiliates is, or since January 1, 2022 has been, in violation, in any material respect, of any Laws or Orders applicable to the conduct of the Business or the operation of the Business Assets and, since January 1, 2022, neither Baker Hughes nor any of its Affiliates have received any notice from a Governmental Authority of any alleged material violation of any such Law or an outstanding, pending or, to the Knowledge of Baker Hughes, threatened Order which remains unresolved. Since January 1, 2022, Baker Hughes and its Affiliates (with respect to the Business) have not been, and no member of the Company Group has been (regardless of whether Related to the Business), the subject of any investigation or review pending or, to the Knowledge of Baker Hughes, threatened by any Governmental Authority relating to any actual or alleged material violation of Law.

Section 4.12 <u>Litigation</u>. Except as set forth in <u>Section 4.12</u> of the Disclosure Schedules, there are, and since January 1, 2022 there have been, no Actions pending or, to the Knowledge of Baker Hughes, threatened in respect of the Business or against any member of the Company Group or any of its directors, officers or employees (in their capacity as such) which, if determined in a manner adverse to such member of the Company Group, would, individually or in the aggregate, be material to the Business, taken as a whole. There are no material Orders outstanding in respect of the Business or against any member of the Company Group. There are no Orders issued in favor of or against any member of the Company Group relating to the transactions contemplated hereby which, if determined in a manner adverse to such party, would be material to the Business, taken as a whole.

Section 4.13 <u>Material Permits</u>. Excluding Environmental Permits which are covered solely by <u>Section 4.18</u>, <u>Section 4.13</u> of the Disclosure Schedules sets forth all Material Permits held by Baker Hughes or any of its Affiliates with respect to the conduct or operation of the Business in the Ordinary Course in Saudi Arabia, Qatar, the United Arab Emirates and China. Baker Hughes and its Affiliates have, and as of the Closing, the Company Group will have, all Material Permits necessary to conduct the Business in the Ordinary Course as conducted during the twelve (12) months prior to the date of this Agreement, and Baker Hughes and its Affiliates have paid all fees and assessments due and payable on each of the Material Permits (other than any such fees and assessments which are being disputed in good faith for which adequate reserves have been established in accordance with GAAP and reflected in the Unaudited Financial Statements), except where the failure to have or make such a payment would not reasonably be expected to be material to the Business or the Company Group, taken as a whole. All Material Permits are in full force and effect, and there has occurred no material default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a material default or violation) of any term, condition or provision of any Material Permit and no suspension or cancellation of any of the Material Permits is pending or, to the Knowledge of Baker Hughes, threatened, other than any Material Permits that have expired but for which an application has been made for renewal or extension and remains pending approval. No Action is pending or, to the Knowledge of Baker Hughes, threatened with respect to any alleged failure by Baker Hughes or any of its Affiliates to have any Material Permit.

Section 4.14 <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) <u>Section 4.14(a)</u> of the Disclosure Schedules sets forth a true, correct and complete list, segregated by applicable subsection below, of each Business Contract (excluding Lease Agreements, statements of work and sales and purchase orders, Benefit Plans, and Contracts relating to insurance policies) in effect as of the date of this Agreement that (the "<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) relates to a partnership, joint venture or similar arrangement, or a commitment, arrangement or agreement to contribute capital or make additional investments in any other Person with respect to the sharing of profits, revenues, losses, costs or Liabilities of any Person, excluding Contracts with Business Sales 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) contains any (A) non-compete or exclusivity provisions with respect to any line of business or geographic area which restricts in any material respect the operation of any line of business included in the Business, or the ability of any line of business included in the Business to compete in any market or geography, (B) grant to any Person of "most favored nation" pricing terms, (C) standstill agreement pursuant to which the Business or any member of the Company Group has agreed not to acquire assets or securities of another Person, except for any such Contract that is a confidentiality, non-disclosure or similar type of agreement entered into in the Ordinary Course, or (D) obligation to purchase all requirements for any product, material or service from any Person which is 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;(iii) is for the sale of any Business Assets, other than in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) relates to the acquisition of any operating business or the Equity Interests of 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;(v) either (A) relates to the creation, incurrence, assumption or guarantee of Debt, or the making of any loans or (B) constitutes a letter of credit, performance bond, banker's acceptance, corporate guarantee or other similar item issued and outstanding 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;(vi) is a settlement or similar agreement that will involve material ongoing obligations of any member of the Company Group 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) is a Contract with a Material Supplier or a Material Customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) is a written Contract between Baker Hughes or its Affiliates (other than a member of the Company Group), on the one hand, and any member of the Company Group, on the other hand, involving annual expenditures or receipts for the calendar year ended December 31, 2024 that exceed $500,000 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;(ix) contains an obligation that requires any member of the Company Group to register to qualify or be qualified as a prime contractor or subcontractor with a United States federal Governmental 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) is a Shared Contract that is material 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;(xi) is a Labor Agreement with any union, works council, or other labor organization representing any 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;(xii) is an employment, severance, change of control, deferred compensation, retention or other legally binding arrangement for the fifty (50) Business Employees with the highest annualized compensation for the calendar year ending December 31, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) is a services or other agreement with any individual who is a consultant or independent contractor for consideration that exceeds $500,000 or has a remaining term of one (1) year or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) is a Contract with any Business Sales Representative; 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;(xv) is a Hedge 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;(b) Baker Hughes has made available to Cactus true, correct and complete copies of each Material Contract, together with all amendments, modifications or supplements thereto, other than, (i) in the case of Shared Contracts, the portions of such Material Contracts that are not Related to the Business and (ii) all statements of work or sales or purchase orders under such Material Contracts. Each statement of work or sales or purchase order Related to the Business under any Material Contract as of the date of this Agreement is consistent as to scope and terms (other than with respect to pricing terms) in all material respects with the corresponding statement of work or sales or purchase order (if any) that has been made available to Cactus.

&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) Each Material Contract is in full force and effect and constitutes a legal, valid and binding obligation of a member of the Company Group, and, to the Knowledge of Baker Hughes, each other party to such Material Contract, and is enforceable against the relevant member of the Company Group, and, to the Knowledge of Baker Hughes, each such other party in accordance with its terms subject, in each case, to the effect of any applicable Laws relating to bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or preferential transfers, or similar Laws relating to or affecting creditors' rights generally and subject, as to enforceability, to the effect of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and no member of the Company Group nor, to the Knowledge of Baker Hughes, any other party to a Material Contract is in material breach or default of a Material Contract. There are no material disputes pending or, to the Knowledge of Baker Hughes, threatened under any Material Contracts. To the Knowledge of Baker Hughes, no event or condition exists which, with or without notice, lapse of time or both, would constitute a material default under the provisions of any Material Contract. No member of the Company Group that is a party to a Material Contract has assigned its rights or obligations under any Material Contract to which it is a party or by which its properties or assets are bound, and, to the Knowledge of Baker Hughes, no counterparty has assigned its rights or obligations under any Material Contract. As of the date of this Agreement, none of Baker Hughes or any of its Affiliates is renegotiating or plans to renegotiate any Material Contract, or paying, or is currently required to pay, liquidated damages or similar payments in lieu of performance thereunder. To the Knowledge of Baker Hughes, since January 1, 2022, there have been no significant delays in reaching milestones or meeting deadlines under any Material Contract and there are no conditions (including any vendor delays or breach or change in Laws) that would prevent Baker Hughes or its Affiliates from delivering the services or products under such Material Contracts by the time such services or products are required to be delivered by the terms of such Material Contracts, or that would render performance of such Material Contracts impossible, in each case for which adequate reserves have not been established in accordance with GAAP and reflected in the Unaudited 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;(d) <u>Section 4.14(d)</u> of the Disclosure Schedules identifies the name and territory for each Sales Representative outside of the United States (each, a "<u>Business Sales Representative</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) Neither Baker Hughes nor any of its Affiliates is party to any Contract (which is not a Business Contract) that contains any limit or restriction on (i) the conduct of the Business in any line of business or geographic area or (ii) the Business's ability to compete with any Person, in each case, that will limit or restrict the Company Group after Closing other than the LLC Agreement.

Section 4.15 <u>Employment and Employee Benefits 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) <u>Section 4.15(a)</u> of the Disclosure Schedules sets forth, as of the date of this Agreement, and in accordance with applicable data privacy or similar Laws, other than Statutory Plans and Material Contracts, (i) the material terms and conditions of employment of the Business Employees; and (ii) a list of each material Baker Hughes Benefit Plan covering any Business Service Provider or under which any Business Service Provider has accrued benefits. <u>Section 4.15(a)</u> of the Disclosure Schedules identifies whether any Benefit Plan is a "defined benefit plan" (as defined in Section 3(35) of ERISA and regardless of whether such plan is subject to ERISA). For the avoidance of doubt, no Benefit Plan is a Company Benefit 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;(b) With respect to each Baker Hughes Benefit Plan covering any Business Employee or under which any Business Employee has accrued benefits, to the extent applicable, Baker Hughes has made available to Cactus a true, correct and complete copy of the most recent determination or opinion letter from the IRS. With respect to each Baker Hughes Benefit Plan listed on <u>Section 4.15(a)</u> of the Disclosure Schedules, Baker Hughes has made available to Cactus true, correct and complete copies of, in each case, to the extent applicable, (A) the plan document and all amendments thereto, and (B) material funding arrangements. For the avoidance of doubt, there are currently no Business Service Providers participating in, or who have benefits accrued under, the Dresser, LLC Consolidated Salaried Retirement 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;(c) No Business Service Provider is employed or engaged (whichever applicable) on terms and conditions which materially differ from the standard form terms disclosed pursuant to <u>Section 4.15(j)</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) No member of the Company Group has incurred any material Liability under or arising out of Title IV of ERISA that could result in any material Liability to Cactus, and no fact or event exists that would reasonably be expected to result in such a material Liability. Except for the Baker Hughes Company Pension Plan and the Dresser, LLC Consolidated Salaried Retirement Plan, no Baker Hughes Benefit Plan is subject to Title IV of ERISA or Section 412 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;(e) No member of the Company Group has any obligation to contribute to or has any Liability with respect to any Multiemployer 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;(f) No Baker Hughes Benefit Plan covering any current or former Business Service Provider or under which any current or former Business Service Provider has accrued benefits contains a commitment to provide any current or former Business Service Provider any medical, surgical, hospitalization, life insurance benefits or other welfare benefits (whether or not insured by a third party) for periods extending beyond their retirements or other terminations of service, other than (i) coverage mandated by COBRA; and (ii) coverage through the end of the calendar month in which a termination of employment occurs.

&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) Neither the execution of this Agreement nor any of the transactions contemplated by this Agreement will, either alone or in conjunction with any other event result in Baker Hughes or any of its Affiliates becoming obligated to provide any amount constituting an "excess parachute payment" (as defined in Section 280G of the Code) with respect to any Business Service Provider.

&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) Except as specified in <u>Section 4.15(h)</u> of the Disclosure Schedules, neither the execution of this Agreement nor any of the transactions contemplated by this Agreement will, either alone or in conjunction with any other event: (i) entitle any Business Service Provider to termination notice, severance pay, wrongful dismissal damages, bonus or any other compensatory payment; (ii) accelerate the time of payment, funding or vesting, or increase the amount of benefits or compensation due to any Business Service Provider; or (iii) increase the amount payable to any Business Service Provider under any Baker Hughes Benefit Plan (including, for the avoidance of doubt, any Baker Hughes Benefit Plan that is a Foreign Benefit Plan) covering any Business Service Provider or under which any Business Service Provider has accrued benefits.

&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) Each Baker Hughes Benefit Plan (with respect to a Business Service Provider) that is subject to Section 409A or 457A of the Code has been maintained and operated in material documentary and operational compliance therewith or qualifies for an available exemption therefrom. Neither Baker Hughes nor any Affiliate of Baker Hughes is a party to, or has any obligation under or with respect to, any Baker Hughes Benefit Plan covering any Business Service Provider or under which any Business Service Provider has accrued benefits to compensate any Business Service Provider for excise Taxes payable pursuant to Section 4999 of the Code or for Taxes payable pursuant to Sections 409A or 457A 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;(j) Baker Hughes has made available to Cactus a true, correct and complete schedule that sets forth, for each Business Employee, his or her: (i) name and (where applicable) notice period; (ii) job title or position; (iii) location of employment or engagement of services; (iv) employer; (v) date of hire and service date (if different); (vi) for each such Business Employee who provides services with respect to the Business in the U.S., status as exempt or non-exempt under the FLSA and any comparable state wage law; (vii) Leave status (including nature and expected duration of any Leave); (viii) details of any visa or work permit; (ix) current base salary or rate of pay; (x) current year's target bonus incentive compensation opportunity (expressed as a percentage of base salary or base pay); (xi) current year's target long-term incentive compensation opportunity (expressed as a percentage of base salary or base pay); (xii) accrued, unpaid vacation or paid time off; and (xiii) expatriate status (the "<u>Business Employee Schedule</u>"). Baker Hughes has made available to Cactus a true, correct and complete schedule that sets forth, for each Business Independent Contractor, his or her: (A) name; (B) services; (C) location of engagement of services; (D) contracting entities; (E) details of any visa or work permit; (F) current rate of pay or fees; and (G) expatriate status (the "<u>Business Independent Contractor Schedule</u>"). Baker Hughes has made available to Cactus a true, correct and complete schedule that sets forth, for each Business Agency Worker, his or her: (1) name; (2) start date; (3) services; (4) location; (5) contracting entities; (6) details of any visa or work permit; (7) current rate of pay or fees (as applicable); and (8) expatriate status (the "<u>Business Agency Worker Schedule</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;(k) Baker Hughes has made available to Cactus true, correct and complete copies of the Labor Agreements applicable to the Business Service Providers, the standard form of employment agreement, the standard form of independent contractor agreement, the standard terms of engagement with any provider of any Business Agency Worker, and form(s) of any long-term incentive award agreements applicable to the geographic jurisdictions in which the Business Service Providers covered by such agreements are located. Baker Hughes has also made available to Cactus any documents describing contractual severance and/or redundancy payment or entitlement, change of control, deferred compensation, retention or other legally binding arrangements to the extent they are not described in such employment or award agreements and are applicable to the Business Service Providers.

&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) Except as disclosed under <u>Section 4.15(l)</u> of the Disclosure Schedules, there is not in existence any written or unwritten contract of employment between Baker Hughes or any Affiliate and a Business Employee which cannot be terminated by six (6) months' notice or less without giving rise to a claim for damages or compensation (other than (if applicable) a statutory severance/redundancy payment or statutory compensation for unfair dismissal) and no Business Employee has given or been given notice to terminate their 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;(m) Except as set forth on <u>Section 4.15(m)</u> of the Disclosure Schedules, to the Knowledge of Baker Hughes, there are no formal organizational campaigns, petitions or other material unionization activities seeking recognition of a bargaining unit in the Business, and there are no material unfair labor practice charges or complaints as to union representation questions before the National Labor Relations Board or a labor board outside the United States of similar jurisdiction that, in either case, would reasonably be expected to affect Business Employees. Except as set forth on <u>Section 4.15(m)</u> of the Disclosure Schedules, to the Knowledge of Baker Hughes, there are no material labor strikes, slowdowns or work stoppages pending or threatened in writing with respect to any Business Employees nor has there been during the past three (3) years, any material labor strikes, slowdowns or work stoppages with respect to any 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;(n) Neither Baker Hughes nor any of its Affiliates is in material noncompliance with any requirement to inform or consult with any labor or trade union, works council or employee representative body with respect to entering into this Agreement or 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) Except as would not reasonably be expected to result in material Liability to the Company Group, with respect to each Business Service Provider, Baker Hughes and its Affiliates are in material compliance with all applicable Laws relating to labor, employment and employment practices including payment of wages and salaries, hours, overtime, terms and conditions of employment, mandatory accrual of statutory leave allowances, collective bargaining, unemployment insurance, worker's compensation, equal employment opportunity, classification of employees and contractors, staff leasing, discrimination, immigration, employee or independent contractor data privacy, collective redundancy, pension or applicable retirement benefits, nationalization requirements and the termination of employment. With respect to the Business, there are no complaints, charges or claims against Baker Hughes or any of its Affiliates pending or, to the Knowledge of Baker Hughes, threatened to be brought or filed with any Governmental Authority or before any court or arbitral body, based on, arising out of, in connection with, the employment of or termination of employment by Baker Hughes or its Affiliates of any Business Employee. Except as would not reasonably be expected to result in material Liability to the Company Group, there has not been any failure by Baker Hughes or any of its Affiliates to pay and/or properly accrue all wages and other compensation due to all Business Employees. With respect to the Business, within the past three (3) years and except as set forth on <u>Section 4.15(o)</u> of the Disclosure Schedules, neither Baker Hughes nor any of its Affiliates has entered into any settlement agreements related to any claims of discriminatory harassment, sexual harassment, sexual assault, or other sexual misconduct by or against any such Business Service Provider. No allegation of sexual or other discriminatory harassment would reasonably be expected to result in any material Liability to the Company Group 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;(p) Except as set forth on <u>Section 4.15(p)</u> of the Disclosure Schedules, within the past three (3) years, there have been no "mass layoffs", "plant closings", or "employment losses", as those terms are defined by the WARN Act, with respect to the Business, and neither the execution of this Agreement nor any of the transactions contemplated by this Agreement will, either alone or in conjunction with any other event, trigger a "mass layoff", "plant closing", or "employment loss", as those terms are defined by the WARN Act, with respect 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;(q) Neither the Company nor any Subject Entity is a party to any judgment, settlement agreement or consent decree with any court or Governmental Authority requiring continuing compliance or reporting obligations entered into to resolve any labor or employment matter relating to any 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;(r) To the Knowledge of Baker Hughes, each third-party employer of record, professional employer organization, or other similar employment arrangement provider utilized by Baker Hughes and its Affiliates in respect of the Business Independent Contractors and the Business Agency Workers are properly licensed under Laws to carry out such services.

&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) All transfers of employment of Business Service Providers to members of the Company Group on or prior to the date hereof have been effected in material compliance with Laws (including, where applicable, the Regulations).

&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) No member of the Company Group and no director, officer or employee of any member of the Company Group is subject to any investigation, prosecution, action or other proceedings concerning any act or failure to act which falls within section 38(5) or sections 58A to 58D of the Pensions Act 2004 and, so far as Baker Hughes is aware, there are no facts or circumstances (a) which are likely to give rise to any such investigation, prosecution, action or other proceedings by or against any member of the Company Group or any of its directors, officers or employees or (b) in relation to which a penalty might be imposed under section 88A of the Pensions Act 2004.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Other than in respect of the UK DB Plan, no member of the Company Group is or was in the 6 years prior to the date of this Agreement an associate of or connected with any person who is an employer in relation to any occupational pension scheme in relation to which sections 38 to 56 of the Pensions Act 2004 apply.

&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) No obligations under an occupational pension scheme in respect of any current or former Business Employee have transferred to any member of the Company Group as a result of the application of the TUPE Regulations to a transfer of employment.

Section 4.16 <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) As of immediately prior to the Closing Date, Baker Hughes and its Affiliates own or have a valid right to use all of the Business IP, free and clear of all Encumbrances except for Permitted Liens. As of immediately prior to the Closing Date, Baker Hughes and its Affiliates own all right, title and interest in and to all Business Owned IP. The Business IP and the rights to be conveyed or granted pursuant to the Business Contracts and the Transaction Documents constitute all material Intellectual Property Rights used by Baker Hughes or its Affiliates in the conduct of the Business in the Ordinary Course, excluding generally commercially available, "off the shelf" rights in Software programs, assuming receipt of all Approvals and other consents, approvals and authorizations, in each case as contemplated by <u>Section 4.8</u>. Except as set forth on <u>Section 4.16(a)</u> of the Disclosure Schedules, there are no material limitations or restrictions imposed by any Third Party on the use by any member of the Company Group of any Business Owned IP or the license to the Company Group of the Baker Hughes IP pursuant to the Transaction Documents (in each case, including after the Closing) under any Contract to which Baker Hughes or any of its Affiliates is a 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) To the Knowledge of Baker Hughes, the operation of the Business as of the date of this Agreement does not infringe upon or misappropriate the Intellectual Property Rights of any Third Party. Since January 1, 2022, to the Knowledge of Baker Hughes, (i) neither Baker Hughes nor any of its Affiliates have, in the conduct of the Business, infringed, misappropriated or otherwise violated any Third Party's Intellectual Property Rights, and (ii) to the Knowledge of Baker Hughes, no Person has infringed upon or misappropriated or otherwise violated in any material respect any Business IP that is owned by Baker Hughes 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;(c) Baker Hughes and its Affiliates have taken reasonable measures consistent with prudent industry practices to protect the confidentiality of trade secrets and other confidential information owned or used or held for use in the Business. Except as would not be material to the Business, taken as a whole, neither Baker Hughes nor its Affiliates have disclosed or consented to the disclosure of any such trade secret or other confidential information to any Person other than (i) pursuant to a written agreement restricting the disclosure and use of such trade secret or confidential information, or (ii) a Person who otherwise has a legally enforceable duty or obligation to maintain the confidentiality of such trade secret or confidential 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;(d) To the Knowledge of Baker Hughes, as of the date of this Agreement, no facts or circumstances exist that would render the Business IP invalid or unenforceable, including enforceability by the Company Group after the Closing. The execution, delivery and performance by Baker Hughes and its Affiliates, as applicable, of this Agreement and any other Transaction Documents to which Baker Hughes or any of its Affiliates is a party and the consummation of the transactions contemplated hereby or thereby will not (i) result in the loss, termination or impairment of any right of Baker Hughes or its Affiliates (with respect to the Business) or any member of the Company Group (following the Closing) in any Business IP, or (ii) trigger any requirement for any member of the Company Group (following the Closing) to pay any additional consideration for the continued use of such Business IP, in each case, except as would not 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;(e) Neither Baker Hughes nor any of its Affiliates has received any written notice from any Person since January 1, 2022, alleging that the operation of the Business infringes upon any Intellectual Property Rights of any Third Party which, if proven, would reasonably be expected to be material to the Business or the Company Group, taken as a whole. There are no suits, actions or proceedings pending or, to the Knowledge of Baker Hughes, threatened in writing against Baker Hughes or any of its Affiliates alleging that the Business infringes the Intellectual Property Rights of a 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;(f) <u>Section 4.16(f)</u> of the Disclosure Schedules sets forth, as of the date of this Agreement, a true, correct and complete list of all Registered IP included within the Business Owned IP. As of the date of this Agreement, each item of such Registered IP included in the Business Owned IP is subsisting, except in the Ordinary Course, and is in full force and 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;(h) Each Contract for the license of Baker Hughes IP from a Third Party by Baker Hughes or its Affiliates is, to the Knowledge of Baker Hughes, in full force and effect, and constitutes the legal, valid and binding obligations of Baker Hughes or its Affiliate that is party to such Contract, enforceable by and against Baker Hughes or its Affiliate in accordance with its terms. Neither Baker Hughes nor any of its Affiliates that is a party to any such Contract nor, to the Knowledge of Baker Hughes, any other party to any such Contract, has repudiated any material provision thereof, and, to the Knowledge of Baker Hughes, neither Baker Hughes nor its Affiliates nor any other Party thereto, is in material breach of any of its respective obligations thereunder, and, to the Knowledge of Baker Hughes, no event exists (including the failure to obtain any required consent) that, with notice or lapse of time or both, would constitute a material breach or default thereunder. To the Knowledge of Baker Hughes, each such Contract that is material to the Business, together with all exhibits, schedules, amendments, supplements and modifications thereto, has been made available to Cactus, subject to redactions of certain sensitive information contained therein.

&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) As of the date of this Agreement, to the Knowledge of Baker Hughes, in the twelve (12) month period immediately prior to the date of this Agreement, Baker Hughes has not abandoned any development of Intellectual Property Rights that would otherwise have constituted Business Owned IP under this Agreement.

Section 4.17 <u>Owned Property and Leased 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) Set forth in <u>Section 4.17(a)(i)</u> of the Disclosure Schedules is a true, correct and complete list of all of the real property owned by Baker Hughes or any of its Affiliates that is Related to the Business (the "<u>Owned Property</u>"), including the address of such Owned Property and the owner thereof, and set forth in <u>Section 4.17(a)(ii)</u> of the Disclosure Schedules is a true, correct and complete list of (i) all of the leased and subleased real property Related to the Business (the "<u>Leased Property</u>") and (ii) all subleases, licenses or other rights of occupancy in such properties granted by Baker Hughes or its Affiliates. Neither Baker Hughes nor any of its Affiliates has granted to any Third Party any lease, sublease, license, possessory or occupancy right or other similar right to any Owned Property or Leased Property, other than as provided in <u>Section 4.17(a)(ii)</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) Baker Hughes or its Affiliates have (i) good and marketable title (or the relevant equivalent in the country in which the property is located) to all Owned Property, and (ii) valid title to the leasehold estate (as lessee or sublessee) in the Leased Property, in each case free and clear of all Encumbrances, except for Permitted Liens.

&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) All leases and subleases for the Leased Property under which any Subject Entity is a lessee or sublessee ("<u>Lease Agreements</u>") are in full force and effect and constitute the legal, valid and binding obligations of Baker Hughes or its Affiliate that is party to such agreements, and, to the Knowledge of Baker Hughes, the other parties thereto, enforceable against Baker Hughes or such Affiliate in accordance with their respective terms. No Lease Agreement has been amended, assigned, modified or supplemented except as described in <u>Section 4.17(a)(ii)</u> of the Disclosure Schedules. True, correct and complete copies of all Lease Agreements (together with all exhibits, schedules, amendments, supplements and modifications thereto) have been made available to Cactus. Neither Baker Hughes nor any of its Affiliates that is party to a Lease Agreement nor, to the Knowledge of Baker Hughes, any other party to any such Lease Agreement has repudiated any material provision thereof, and neither Baker Hughes nor its Affiliates nor, to the Knowledge of Baker Hughes, any other party thereto, is in material breach of any of its respective obligations thereunder, and no event has occurred (including the failure to obtain any required consent) that, with notice or lapse of time or both, would constitute a material breach or default thereunder. As of the date of this Agreement, with respect to any Material Lease with a lease term that will expire or otherwise terminate within eighteen (18) months following the date of this Agreement (an "<u>Expiring Material Lease</u>"), neither Baker Hughes nor any of its Affiliates has received written notice from the lessor under such Material Lease stating that such lessor intends to, and to the Knowledge of Baker Hughes the lessor under such Material Lease does not intend to, terminate or permit to expire and not renew such Material Lease upon the expiration of the current term 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;(d) Since January 1, 2022, neither Baker Hughes nor any of its Affiliates has received any written notice from any Governmental Authority asserting any material violation of applicable Laws with respect to any Owned Property or Leased 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;(e) There are no outstanding Preferential Rights to purchase or lease any portion of the Owned Property. Neither Baker Hughes nor any of its Affiliates is a party to any Contract to purchase any real property or interest in real property or has entered into any binding letter of intent to lease or sublease any real property, in each case, 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;(f) Except as set forth in <u>Section 4.17(f)</u> of the Disclosure Schedules (the "<u>Joint Use Facilities</u>") and <u>Section 4.17(a)</u> of the Disclosure Schedules, there is no material real property related to the Business that is owned, used or held for use by Baker Hughes 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;(g) There are no pending or, to the Knowledge of Baker Hughes, threatened condemnation, eminent domain, expropriation or similar proceedings, or any pending, contemplated or, to the Knowledge of Baker Hughes, threatened Action or any unsatisfied claims or judgments adversely affecting any material portion of the Owned Property or the Leased Property.

Section 4.18 <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) Each member of the Company Group and, with respect to the Business, Baker Hughes and its Affiliates, is, and for the past three (3) years have been, in compliance in all material respects with all Environmental Laws and Environmental 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;(b) There are no Actions pending or, to the Knowledge of Baker Hughes, threatened, against any member of the Company Group or Baker Hughes, or any of their respective Subsidiaries or Affiliates, concerning any actual or alleged material Liability (including any material obligation for remediation, monitoring, engineering controls, or other remedial action (collectively, "<u>Remedial Action</u>")) under any Environmental Law or related to any Environmental Permit, in each case Related to the Business (including the Owned Property and the Leased Property). To the Knowledge of Baker Hughes, there are no facts, circumstances, or conditions that could reasonably be expected to form the basis of any such Actions.

&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) With respect to the Business, the Owned Property and the Leased Property, neither Baker Hughes nor any member of the Company Group is subject to any Order that would reasonably be expected to result in the imposition of any material Liability under any Environmental Law, including any material Liability regarding (i) violation of Environmental Laws, (ii) any Remedial Action, or (iii) any presence, treatment, or actual or, to the Knowledge of Baker Hughes, threatened Release of, or exposure to, Hazardous Materials, in each case 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;(d) With respect to the Business, there has been no actual or alleged Release of Hazardous Materials (i) at, on, under or from the Owned Property or, to the Knowledge of Baker Hughes, the Leased Property, or (ii) to the Knowledge of Baker Hughes, any real property offsite the Owned Property or Leased Property where such Hazardous Materials were transported or disposed or arranged to be transported or disposed by Baker Hughes or the Company Group as part of the operation of the Business, in the case of each of the foregoing, in a manner that would reasonably be expected to result in any material Liability for any member of the Company Group under Environmental Laws after the Closing, in each case 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;(e) As of the Closing Date, the Company Group will have obtained all material Environmental Permits required for the operation of the Business (including Owned Property and Leased Property), and all such material Environmental Permits shall be in full force and effect. Since January 1, 2022, there has occurred no material default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a material default or violation) of any term, condition, or provision of any such material Environmental Permits. No Action seeking the cancellation of any such Environmental Permits is pending or, to the Knowledge of Baker Hughes, threatened.

&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) To the Knowledge of Baker Hughes, there is not located at any of the Owned Property or Leased Property any Hazardous Materials in material violation of or that would reasonably be expected to result in any material Liability to any member of the Company Group or Baker Hughes, or any of their respective Subsidiaries or Affiliates, under any Environmental Laws, in each case 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;(g) Neither Baker Hughes nor any of its Affiliates, with respect to the Business, and at Closing, no member of the Company Group, has any outstanding material Liability under Environmental Laws, including with respect to any formerly owned, leased or operated properties, or any former, closed, divested or discontinued businesses or operation.

&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) Baker Hughes has made available to Cactus true, correct and complete copies of all material environmental, health and safety studies, reports, and results of investigation prepared in the previous five (5) years concerning or relating to the Business or any Owned Property or Leased Property that are in its possession or reasonable control.

Section 4.19 <u>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) Each member of the Company Group has timely filed with appropriate Governmental Authorities all income and other material Tax Returns required to be filed (taking into account valid extensions) and has timely paid all income and other material Taxes due and owing (whether or not shown on a Tax Return). All such Tax Returns 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) No deficiencies for any Taxes have been proposed, asserted or assessed in writing against any member of the Company Group that are still pending and there are no current material disputes with any Governmental Authority Related to the Business or the Business 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;(c) No material issue has been raised in any pending Action by any Governmental Authority of a Tax Return filed by or with respect to any member of the Company Group with respect to the Business that remains unresolved.

&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) No written claim has been made by a Governmental Authority in a jurisdiction where any member of the Company Group does not file Tax Returns that any such entity is subject to taxation in that jurisdiction.

&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) Each member of the Company Group has complied in all material respects with its withholding obligations for all Taxes required to have been withheld and paid in connection with amounts owing to any employee, or independent contractor associated 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;(f) There are no Encumbrances with respect to Taxes upon any of the Business Assets other than Permitted Liens.

&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) No material closing agreements, private letter rulings, Tax holidays, technical advice memoranda or similar agreements or rulings related to Taxes have been entered into, issued or requested from any Governmental Authority with or in respect of the Company Group, the Business or the Business Assets (other than a determination or similar letter received in the Ordinary Course with respect to any Benefit 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;(h) Neither the Company nor any 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) ending after the Closing Date as a result of: (i) an adjustment under either Section 481(a) of the Code (or any corresponding or similar provision of state, local or foreign Tax Law) by reason of a change in method of accounting on or prior to the Closing Date for a taxable period ending on or prior to the Closing Date; (ii) a "closing agreement" described in Code Section 7121 (or any corresponding or similar provision of state, local or foreign Tax Law) executed on or before the Closing Date; (iii) an intercompany transaction described in Treasury Regulations under Code Section 1502 (or any corresponding or similar provision of state, local or foreign Tax Law) entered into on or prior to the Closing Date; (iv) an installment sale or "open transaction disposition" made on or prior to the Closing Date; or (v) a prepaid amount received on or prior to 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;(i) Neither the Company nor any member of the Company Group has any Liability for the Taxes of any person (other than Baker Hughes) under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign Law), 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;(j) No member of the Company Group is a party to, is otherwise bound by or has any obligation under, any tax sharing agreement, other than one entered into in the Ordinary Course and not primarily relating to 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;(k) Each Company Group member is in compliance in all material respects with all applicable transfer pricing Laws and regulations, including the execution and maintenance of contemporaneous documentation substantiating the transfer pricing practices and methodology and conducting intercompany transactions at arm's length.

&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) No member of the Company Group has waived any U.S. federal, state, local or non-U.S. statute of limitations in respect of material Taxes or agreed to any extension of time with respect to any material Tax assessment or deficiency, which statute of limitations has not since expired (including with respect to the Business 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;(m) No member of the Company Group has participated in any "reportable transaction" (other than a "loss transaction") within the meaning of Treasury Regulations Section 1.6011-4(b).

&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) <u>Section 4.19(n)</u> of the Disclosure Schedules sets forth, as of the date of this Agreement, the U.S. federal income tax status of each entity that is a member of the Company Group. Prior to the Closing Date, <u>Section 4.19(n)</u> of the Disclosure Schedules will set forth the U.S. federal income tax status of each entity that is a member of the Company Group following the Restructuring Transactions and immediately prior to 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;(o) All material assets of the Company Group that are "Section 197 intangibles" (if any), within the meaning of Section 197(d) of the Code were created after August 10, 1993, and are not subject to the anti-churning rules under Section 197(f)(9) of the Code and Section 1.197-2(h) of the Treasury Regulations.

Section 4.20 <u>No Brokers</u>. No agent, 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 Baker Hughes or any of its Affiliates for which Cactus or any of its Affiliates or any member of the Company Group would have any Liability.

Section 4.21 <u>Bankruptcy</u>. There are no bankruptcy, reorganization, or receivership proceedings pending against, being contemplated by, or, to the Knowledge of Baker Hughes, threatened against, Baker Hughes or any member of the Company Group.

Section 4.22 <u>Suppliers and Customers</u>.<u>Section 4.22</u> of the Disclosure Schedules lists, as of the date of this Agreement, each of the Material Customers and Material Suppliers. As of the date of this Agreement, no Material Customer or Material Supplier has notified Baker Hughes or any of its Affiliates expressing its intention to (a) cancel or terminate its relationship with respect to the Business, or (b) materially and adversely modify its relationship with respect to the Business, including with respect to the material terms of any Material Contract.

Section 4.23 <u>Anti-Corruption Laws; Trade Control Laws</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) Each member of the Company Group and Baker Hughes, and each of their respective Affiliates, have developed and implemented, maintained, and enforced policies and procedures designed to ensure compliance by the Business, each member of the Company Group, and their respective officers, directors, employees, and agents, with all applicable Anti-Corruption Laws and Trade Control Laws.

&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) Baker Hughes and its Affiliates (with respect to the Business) and each member of the Company Group have maintained books and records that accurately and fairly reflect the transactions of the Business and each member of the Company Group (as it relates to each such entity) in accordance with applicable Laws.

&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) The Business and each member of the Company Group, and each of their respective officers, directors, employees, and, to the Knowledge of Baker Hughes, agents (in each case, acting on behalf of the Business or any member of the Company Group), are, and since the date that is five (5) years prior to the date hereof have been, in compliance in all respects with all applicable Trade Control Laws (including, for the avoidance of doubt, any applicable Trade Control Laws targeting or with respect to the Russian Federation) and Anti-Corruption Laws.

&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) There are, and since the date that is five (5) years prior to the date hereof there have been, no civil or criminal penalties imposed on the Business, any member of the Company Group, or any officer, manager, director, employee or, to the Knowledge of Baker Hughes, agent or, to the Knowledge of Baker Hughes, any other Person (in each case, acting on behalf of the Business or any member of the Company Group), relating to actual or alleged violations of Anti-Corruption Laws or Trade Control Laws, and no voluntary disclosures relating to any actual, alleged, or apparent violation of Anti-Corruption Laws or Trade Control Laws have been submitted by Baker Hughes or any of its Affiliates or, to the Knowledge of Baker Hughes, any other Person, to any Governmental Authority in respect 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;(e) There are, and since January 1, 2022 there have been, no Actions pending or, to the Knowledge of Baker Hughes, threatened against (i) the Business, any member of the Company Group, or Baker Hughes or any Affiliates of Baker Hughes (with respect to the Business), or (ii) any director, officer, employee or, to the Knowledge of Baker Hughes, agent (in each case, acting on behalf of the Business or any member of the Company Group), arising or alleging any Liability under any Anti-Corruption Laws or Trade Control Laws, in each case, Related to the Business. Neither Baker Hughes nor any of its Affiliates has received notice of, or received any written inquiry regarding, any actual, alleged, or suspected violation or breach of any Anti-Corruption Laws or Trade Control Laws in respect of the Business or any member of the Company Group, or any director, officer, employee or, to the Knowledge of Baker Hughes, agent (in each case, acting on behalf of 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;(f) None of the Business, any member of the Company Group, or Baker Hughes and its Affiliates, nor any of their respective directors, officers, employees or, to the Knowledge of Baker Hughes, agents is a Prohibited person. None of the Business, any member of the Company Group, or Baker Hughes and its Affiliates (to the extent relating to the Business), nor any of their respective directors, officers, employees or, to the Knowledge of Baker Hughes, agents (in each case, acting on behalf of the Business or any member of the Company Group), has directly or, to the Knowledge of Baker Hughes, indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) since the date that is five (5) years prior to the date hereof, (A) engaged in any dealings with or for the benefit of any Prohibited Person or in any Sanctioned Country or (B) engaged in any activity that would reasonably be expected to result in the Business or any member of the Company Group becoming a Prohibited 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;(ii) used any corporate funds for any unlawful contributions, gifts, entertainment, or other unlawful expenses relating to any political activity; 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;(iii) made, offered to make, promised to make, or otherwise authorized any Prohibited Payment.

Section 4.24 <u>Personal Property; Sufficiency</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) Baker Hughes or its Affiliate has good and valid title to all fixed assets that are included in the Business Assets, and, as of the Closing (after giving effect to the Restructuring Transactions), the Company Group will have good and valid title to all fixed assets that are included in the Business Assets, free and clear of all Encumbrances (other than Permitted Liens).

&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) Except with respect to any Excluded Assets, Nonassignable Assets or as set forth in <u>Section 4.24(b)</u> of the Disclosure Schedules, as of the Closing (after giving effect to the Restructuring Transactions) there are no material fixed assets and there is no material tangible personal property Related to the Business that is not held by a 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) On the Closing Date (subject to completion of the Restructuring Transactions in accordance with the Reorganization Plan (including, for the avoidance of doubt, any Deferred Actions) and the assignment of any Nonassignable Assets as contemplated by <u>Section 2.7</u>), assuming receipt of all Approvals as contemplated by <u>Section 4.8</u> and taking into account all Ancillary Agreements (including the services provided under the Transition Services Agreement and the Global Employee Services Agreement), the Company Group will own or have a valid right to use all assets, Contracts, rights, properties, permits and services that are necessary and sufficient for the ongoing conduct of the Business immediately following the Closing in all material respects in the Ordinary Course as conducted during the twelve (12) months prior to the date of this Agreement, other than such rights or permits that must be obtained by Cactus or its Affiliates pursuant to applicable Law; *provided*, *however*, that nothing in this <u>Section 4.24(c)</u> shall be deemed to constitute a representation or warranty as to the adequacy of the amounts of Cash or working capital (or the availability of 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;(d) The facilities, structures, appurtenances to real property, drawings, bills of materials, jigs, tools and dies, equipment and related capitalized items, and other tangible property constituting Business Assets that are material to the Business (the "<u>Tangible Property</u>") are in good operating condition and repair, ordinary wear and tear excepted, subject to continued repair and replacement in accordance with the Ordinary Course, are suitable for their intended use, and are adequate to support the Business. Since January 1, 2022, (i) the Tangible Property has been maintained and repaired by a qualified Person and in accordance with Baker Hughes' quality policies and procedures, copies of which policies and procedures have been made available to Cactus, and (ii) there has not been any significant interruption in the conduct of the Business or the operation of the Business Assets by Baker Hughes or its Affiliates due to inadequate maintenance of the Tangible 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;(e) All customer property committed to the custody of Baker Hughes or its Affiliates in connection with the Business is held at an Owned Property, Leased Property or Joint Use Facility and has been treated, maintained, stored and secured in accordance with the terms of the applicable customer Contract.

Section 4.25 <u>Insurance</u>. <u>Section 4.25</u> of the Disclosure Schedules contains a true, correct and complete (a) list of all insurance policies taken out by Baker Hughes or its Affiliates Related to the Business, including property and casualty insurance group policies, local insurance policies and director and officer liability insurance policies (each, a "<u>Group Policy</u>"), (b) identification of whether each such Group Policy is a claims-based or occurrence-based policy, and (c) identification of the primary policyholder under each such Group Policy and whether any such policyholder is a member of the Company Group. Each such Group Policy is in full force and effect, all premiums due to date thereunder have been paid in full, and neither Baker Hughes nor any of its Affiliates is in default with respect to any other material obligations thereunder. As of the date of this Agreement, no written, or, to the Knowledge of Baker Hughes, oral, notice of cancellation or nonrenewal (other than in the Ordinary Course as required by applicable Law) with respect to any such Group Policy currently in force has been received by Baker Hughes or any of its Affiliates as of the date of this Agreement. As of the date of this Agreement, there is no material claim by Baker Hughes or any of its Affiliates pending under any Group Policy as to which coverage or the right to reimbursement of defense costs has been questioned, denied, or disputed by the issuers or underwriters of such Group Policy.

Section 4.26 <u>Data Security and Privacy 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) Baker Hughes and its Affiliates have, with respect to the Business, taken reasonable measures consistent with prudent industry practices to protect the operation and security of their technology and physical information technology systems (and the data therein), in each case, Related to the Business. Baker Hughes and its Affiliates have, with respect to the Business, commercially reasonable disaster recovery plans, procedures and facilities in place that are appropriate to minimize the disruption of the Business in the event of any material outage of any technology or information technology systems, and have updated such plans, procedures and facilities when necessary and appropriate. To the Knowledge of Baker Hughes, the technology and physical information technology systems (and the data therein) with respect to the Business do not contain any viruses, malware, trojan horses, worms, other undocumented contaminants, material bugs, vulnerabilities, faults, disabling codes, or other devices or effects that reasonably could enable or assist (i) any Person to access without authorization such technology or physical information technology systems or any information in such systems, (ii) unauthorized disablement or erasure of Software, hardware or data, or (iii) otherwise adversely affect the functionality of such technology or physical information technology systems, or render such technology or physical information technology systems incapable of being used in the manner for which they were designed.

&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) With respect to the Business, (i) there have been no material actual or reasonably suspected Data Security Incidents, and (ii) neither Baker Hughes nor any of its Affiliates has received any written allegation of any Data Security Incident that required or would reasonably be expected to require notification to any Person under applicable data breach notification Laws. To the Knowledge of Baker Hughes, with respect to the Business, there are no facts or other information indicating that there have occurred any unauthorized material intrusions or breaches of security of Baker Hughes's or its Affiliates' technology or other information technology used or provided by Baker Hughes 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;(c) With respect to the Business, Baker Hughes and its Affiliates have in place an information security program that is comprised of reasonable administrative, technical, and physical safeguards designed to protect its technology and all Nonpublic Information processed, collected, used, stored, or transferred by or on behalf of Baker Hughes or its Affiliates in material compliance with the Privacy 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;(d) With respect to the Business, Baker Hughes and its Affiliates are, and since January 1, 2022, have been, in compliance in all material respects with all Privacy Requirements. Since January 1, 2022, neither Baker Hughes nor any of its Affiliates have received any written complaint, demand letter, or notice of claim from any Person relating to any actual or alleged violation of any Privacy Requirements with respect to the Business.

Section 4.27 <u>Inventory and Accounts Receivable</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) All notes, trade receivables and other accounts receivable of Baker Hughes or its Affiliates Related to the Business ("<u>Business Accounts Receivable</u>") reflected in the Unaudited Financial Statements or arising subsequent to the Balance Sheet Date (i) have arisen from bona fide transactions entered into by Baker Hughes or its Affiliates involving the actual sale of goods or the actual rendering of services in the Ordinary Course; and (ii) net of applicable reserves, constitute only valid, undisputed claims of Baker Hughes or its applicable Affiliate, not subject to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in the Ordinary Course. As of the Closing, all Business Accounts Receivable is owned by a member of the Company Group free and clear of all Encumbrances (other than Permitted Liens).

&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) All Business Inventory reflected in the Unaudited Financial Statements or arising subsequent to the Balance Sheet Date consists of a quality and quantity usable and salable in the Ordinary Course and was produced in accordance with the latest American Petroleum Institute 6A specification if and as applicable (or other applicable specification published by the American Petroleum Institute if and as applicable), except for obsolete, damaged, defective or slow-moving items that have been written off or written down to fair market value or for which adequate reserves have been established in accordance with GAAP and reflected in the Unaudited Financial Statements and otherwise in the Ordinary Course. As of the Closing, all Business Inventory is owned by a member of the Company Group free and clear of all Encumbrances (other than Permitted Liens), and, except as set forth on <u>Section 4.27</u> of the Disclosure Schedules, no Business Inventory is held on a consignment basis. Except as set forth on <u>Section 4.27</u> of the Disclosure Schedules, as of the Closing, no Business Inventory is held by any bailee, warehouseman or other Third Party (other than Business Inventory in route for delivery in the Ordinary Course). As of the Closing, the Business Inventory is of a quantity sufficient in all material respects for the normal conduct of the Business and the operation of the Business Assets in the Ordinary Course.

Section 4.28 <u>Backlog</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) Attached to <u>Section 4.28(a)</u> of the Disclosure Schedules is the backlog report (the "<u>Backlog Report</u>") of the Business, dated as of December 31, 2024 (the "<u>Backlog Report Date</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) The Backlog Report was prepared by Baker Hughes in connection with Baker Hughes's Ordinary Course operation of the Business and in accordance in all material respects with the Baker Hughes policies entitled "Management Accounting Procedures and Standard Operating Procedures, General: Orders and RPO Policy" and "Oilfield Equipment Accounting Policies, Orders Booking Policy", true, correct and complete copies of which have been made available to Cactus.

&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) Notwithstanding anything to the contrary in this <u>Section 4.28</u>, (i) as provided in <u>Section 4.30</u>, Baker Hughes is not making any representation or warranty with respect to estimates, forecasts or projections with respect to the Backlog Report and (ii) Baker Hughes makes no representation, warranty or guarantee that the unfulfilled orders or work set forth on the Backlog Report will result in any projected, specific and/or actual level of sales, revenue or accounts receivable to the Business or any member of the Company Group after the Backlog Report Date, including following the Closing.

Section 4.29 <u>Product and Service Warranties</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) Except for routine customer inquiries, service requests, complaints and returns in the Ordinary Course, which are not individually or in the aggregate, material to the Business, all products distributed, sold, rented, leased or delivered and all services provided by Baker Hughes or its Affiliates to a Material Customer, or, to the Knowledge of Baker Hughes, any other customer, since January 1, 2024 in connection with the Business have been in conformity in all material respects with all relevant express warranties made by the Business. Since January 1, 2024, there have been no claims pending or, to the Knowledge of Baker Hughes, threatened against Baker Hughes or any of its Affiliates in connection with the Business by a Material Customer or, to the Knowledge of Baker Hughes, any other customer, for any safety issues, product or service defects or deficiencies, or warranty obligations that have not been fully resolved. Baker Hughes has made available to Cactus true, correct and complete copies of all of product and service warranties of Baker Hughes provided to a Material Customer. Except as set forth on <u>Section 4.29(a)</u> of the Disclosure Schedules, neither Baker Hughes nor its Affiliates has provided a warranty to a Material Customer with respect to products distributed, sold or delivered or services provided by it in respect of the Business for a period of more than eighteen (18) months.

&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) Set forth on <u>Section 4.29(b)</u> of the Disclosure Schedules is a true, complete and accurate description of all Nonconformities with respect to the Business that occurred since January 1, 2022 through the date of this Agreement.

Section 4.30 <u>No Other Representations or Warranties</u>. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS <u>ARTICLE IV</u> AND IN ANY CERTIFICATE DELIVERED BY BAKER HUGHES PURSUANT TO THIS AGREEMENT, NEITHER BAKER HUGHES NOR ANY OTHER PERSON (INCLUDING THE AFFILIATES OF BAKER HUGHES) HAS MADE, MAKES OR SHALL BE DEEMED TO MAKE ANY OTHER REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, WRITTEN OR ORAL, AT LAW OR IN EQUITY, ON BEHALF OF BAKER HUGHES OR ANY OF ITS AFFILIATES, INCLUDING ANY REPRESENTATION OR WARRANTY REGARDING BAKER HUGHES, ITS AFFILIATES, THE BUSINESS, ANY OTHER RIGHTS OR OBLIGATIONS TO BE TRANSFERRED PURSUANT TO THE TRANSACTION DOCUMENTS OR ANY OTHER MATTER, AND BAKER HUGHES HEREBY DISCLAIMS ALL OTHER representations and warranties of any kind whatsoever, express or implied, written or oral, at law or in equity, whether made by or on behalf of Baker HUGHES or any other Person. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS <u>ARTICLE IV</u> AND IN ANY CERTIFICATE DELIVERED BY BAKER HUGHES PURSUANT TO THIS AGREEMENT, BAKER HUGHES HEREBY DISCLAIMS ALL LIABILITY AND RESPONSIBILITY FOR ALL PROJECTIONS, FORECASTS, ESTIMATES, APPRAISALS, ADVICE, DATA OR INFORMATION MADE, COMMUNICATED OR FURNISHED (ORALLY OR IN WRITING, INCLUDING ELECTRONICALLY) TO CACTUS OR ANY OF ITS AFFILIATES OR ANY REPRESENTATIVES OF CACTUS OR ANY OF ITS AFFILIATES, INCLUDING OMISSIONS THEREFROM. BAKER HUGHES MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, WRITTEN OR ORAL, AT LAW OR IN EQUITY, TO CACTUS OR ANY OF ITS AFFILIATES OR ANY REPRESENTATIVES OF CACTUS OR ANY OF ITS AFFILIATES REGARDING THE SUCCESS OR PROBABLE SUCCESS OF THE BUSINESS.

ARTICLE V<u><br> Representations and Warranties of Cactus</u>

Cactus represents and warrants to Baker Hughes and the Company as of the date of this Agreement (except for such representations and warranties which address matters only as of a specific date, which representations and warranties shall be true and correct as of such specific date) and as of the Closing, that:

Section 5.1 <u>Organization, Good Standing and Qualifications</u>. Cactus is, and each Affiliate of Cactus that is or will be a party to a Transaction Document (such Affiliates, together with Cactus, the "<u>Cactus Parties</u>") is or will be as of the Closing, duly incorporated, organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation, organization or formation, except as would not be, individually or in the aggregate, material to Cactus and its Subsidiaries, taken as a whole. Each of the Cactus Parties has all requisite corporate power and authority to conduct its business as currently conducted and to own, operate and lease its assets, except as would not be, individually or in the aggregate, material to Cactus and its Subsidiaries, taken as a whole.

Section 5.2 <u>Authority</u>. Each of the Cactus Parties has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and the other Transaction Documents to which it is or will be a party and to carry out and perform such party's obligations hereunder and thereunder. The execution and delivery of this Agreement and the other Transaction Documents to which such Cactus Party is or will be a party, and the performance by such Cactus Party of its obligations hereunder and thereunder have been duly and validly authorized and approved by all necessary corporate or organizational, as the case may be, actions. This Agreement and the other Transaction Documents to which such Cactus Party is or will be a party have been or will be when executed and delivered duly executed and delivered by such Cactus Party and are or will be when executed and delivered (assuming due and valid authorization, execution and delivery hereof and thereof by the other parties thereto) valid and binding obligations of such Cactus Party, enforceable against such Cactus Party in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles.

Section 5.3 <u>No Conflicts or Consents</u>. The execution, delivery and performance by each Cactus Party of this Agreement or any other Transaction Documents to which such Cactus Party is or will be a party do not and will not (a) conflict with, or result in a breach or violation of any provision of the respective Organizational Documents of such Cactus Party; (b) violate any applicable Law or Order of any Governmental Authority by which such Cactus Party is bound; (c) result in any violation of, or default under, or give rise to a right of termination, acceleration or modification, in any material respect of any obligation, or loss of any benefit under any Contract or other instrument to which such Cactus Party is a party; (d) constitute, with or without the giving of notice or passage of time or both, a breach, violation or default by such Cactus Party of, or create an Encumbrance, or give rise to any right of termination, modification, cancellation, prepayment or acceleration, under (i) any Law, or (ii) note, bond, mortgage, indenture, material lease, material agreement or other instrument or material Contract, in each case, which is applicable to or binding upon such Cactus Party; or (e) require any filing with or notice to any Person (other than the other Parties) or consent, except, in the case of clauses (c), (d)(ii) or (e) above, as would not, individually or in the aggregate, reasonably be expected to prevent or materially adversely affect or delay the ability of such Cactus Party to consummate the transactions contemplated by this Agreement and the other Transaction Documents.

Section 5.4 <u>Regulatory Approvals</u>. Except for (a) such consents, approvals and authorizations that Cactus Party is required to make or obtain pursuant to this Agreement, (b) compliance with any applicable requirements under Competition Laws, and (c) any action or filing as to which the failure to make or obtain would not reasonably be expected to prevent or materially adversely affect or delay such Cactus Party's ability to consummate the transactions contemplated by this Agreement and the other Transaction Documents to which such Cactus Party is a party, (i) no Cactus Party is required to submit any material notice, report or other filing with any Governmental Authority, and (ii) no material consent, approval or authorization of, or registration, declaration or other act by, any Governmental Authority is required to be obtained by or of such Cactus Party, in each case in connection with the execution and delivery of this Agreement or the other Transaction Documents to which such Cactus Party is or will be a party, the consummation of the transactions contemplated hereby or thereby or the performance by such Cactus Party of its obligations hereunder or thereunder.

Section 5.5 <u>Required Consents</u>. <u>Schedule 5.5</u> attached hereto sets forth each agreement or other instrument binding upon the Cactus Parties requiring a consent or other action by any Person as a result of or in connection with the execution and delivery of this Agreement and the other Transaction Documents, the consummation of the transactions contemplated hereby and thereby and the performance by the Cactus Parties of their obligations hereunder and thereunder, except such agreements or instruments where the failure to make or obtain such consent, approval or authorization, or to make such filing or notification, would not prevent or delay Cactus or any Cactus Party from consummating the transactions contemplated by, or performing any of its material obligations under, the Transaction Documents.

Section 5.6 <u>Financial Ability</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) Cactus has and will have at the Closing sufficient immediately available funds available and the financial ability to pay the Closing Payment and any expenses incurred by the Cactus Parties in connection with the transactions contemplated by this Agreement. Neither Cactus nor any other Cactus Party (i) has incurred any obligation, commitment, restriction or liability of any kind, or (ii) is contemplating or aware of any obligation, commitment, restriction or liability of any kind, in either case specified in clause (i) or (ii), which would materially impair or materially adversely affect such availability of funds and financial ability.

&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) Cactus's funds are derived from legitimate business activities. Cactus is not, and any Affiliate of Cactus designated by Cactus to perform under this Agreement will not be, a Prohibited Person with whom Baker Hughes is prohibited from engaging in any transaction due to any Trade Control Laws or violations thereof.

Section 5.7 <u>No 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 Cactus or any of its Affiliates for which Baker Hughes or any of its Affiliates or any member of the Company Group would have any Liability.

Section 5.8 <u>Litigation</u>. There are no Actions pending or, to the Knowledge of Cactus, threatened against any Cactus Party or any of its directors, officers or employees (in their capacity as such) relating to the transactions contemplated hereby which, if determined in a manner adverse to such Cactus Party, would, individually or in the aggregate, have a Material Adverse Effect, taken as a whole. There are no Orders outstanding against any Cactus Party relating to the transactions contemplated hereby which, if determined in a manner adverse to such Cactus Party, would, individually or in the aggregate, have a material adverse effect on Cactus and its Subsidiaries, taken as a whole. There are no Orders issued in favor of or against any Cactus Party relating to the transactions contemplated hereby which, if determined in a manner adverse to such Cactus Party, would, individually or in the aggregate, have a material adverse effect on Cactus and its Subsidiaries, taken as a whole.

Section 5.9 <u>No Other Representations or Warranties</u>. CACTUS ACKNOWLEDGES AND AGREES THAT (A) IT AND EACH CACTUS PARTY HAS FORMED AN INDEPENDENT JUDGMENT CONCERNING BAKER HUGHES, THE BUSINESS ASSETS, THE BUSINESS LIABILITIES, THE BUSINESS AND ANY OTHER RIGHTS OR OBLIGATIONS TO BE TRANSFERRED, DIRECTLY OR INDIRECTLY, PURSUANT TO THE TRANSACTION DOCUMENTS, (B) IT AND EACH CACTUS PARTY HAS BEEN FURNISHED WITH, OR GIVEN ACCESS TO, PROJECTIONS, FORECASTS, ESTIMATES, APPRAISALS, STATEMENTS, PROMISES, ADVICE, DATA OR INFORMATION ABOUT THE BUSINESS LIABILITIES, THE BUSINESS AND ANY OTHER RIGHTS OR OBLIGATIONS TO BE TRANSFERRED, DIRECTLY OR INDIRECTLY, PURSUANT TO THE TRANSACTION DOCUMENTS, FOR SUCH PURPOSE, (C) THE ONLY REPRESENTATIONS AND WARRANTIES MADE BY BAKER HUGHES ARE THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN <u>ARTICLE IV</u> AND IN ANY CERTIFICATE DELIVERED BY BAKER HUGHES PURSUANT TO THIS AGREEMENT, AND NEITHER CACTUS NOR ANY OTHER CACTUS PARTY HAS RELIED UPON ANY OTHER EXPRESS OR IMPLIED REPRESENTATIONS, WARRANTIES OR OTHER PROJECTIONS, FORECASTS, ESTIMATES, APPRAISALS, ADVICE, DATA OR INFORMATION MADE, COMMUNICATED OR FURNISHED BY OR ON BEHALF OF BAKER HUGHES OR ANY OF ITS AFFILIATES, ANY REPRESENTATIVES OF BAKER HUGHES OR ANY OF ITS AFFILIATES OR ANY OTHER PERSON, INCLUDING ANY PROJECTIONS, FORECASTS, ESTIMATES, APPRAISALS, ADVICE, DATA OR INFORMATION MADE, COMMUNICATED OR FURNISHED BY OR THROUGH MANAGEMENT PRESENTATIONS, DATA ROOMS (ELECTRONIC OR OTHERWISE) OR OTHER DUE DILIGENCE INFORMATION, AND THAT CACTUS WILL NOT HAVE ANY RIGHT OR REMEDY ARISING OUT OF ANY REPRESENTATION OR WARRANTY NOT SET FORTH IN THIS AGREEMENT (OR IN ANY CERTIFICATE DELIVERED BY BAKER HUGHES PURSUANT TO THIS AGREEMENT) OR OTHER PROJECTIONS, FORECASTS, ESTIMATES, APPRAISALS, STATEMENTS, PROMISES, ADVICE, DATA OR INFORMATION, AND (D) ANY CLAIMS CACTUS MAY HAVE FOR BREACH OF ANY REPRESENTATION OR WARRANTY SHALL BE BASED SOLELY ON THE REPRESENTATIONS AND WARRANTIES OF BAKER HUGHES EXPRESSLY SET FORTH IN <u>ARTICLE IV</u> AND IN ANY CERTIFICATE DELIVERED BY BAKER HUGHES PURSUANT TO THIS AGREEMENT. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, CACTUS UNDERSTANDS AND AGREES (INCLUDING ON BEHALF OF THE CACTUS PARTIES) THAT THE BUSINESS ASSETS ARE BEING FURNISHED "AS IS" AND "WHERE IS" SUBJECT TO THE REPRESENTATIONS AND WARRANTIES CONTAINED IN <u>ARTICLE IV</u> AND IN ANY CERTIFICATE DELIVERED BY BAKER HUGHES PURSUANT TO THIS AGREEMENT WITHOUT ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY NATURE WHATSOEVER.

ARTICLE VI<u><br> Covenants</u>

Section 6.1 <u>Commercially Reasonable Efforts; Government Approvals</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) Subject to the terms and conditions of this Agreement, the Parties shall use their respective commercially reasonable efforts to cooperate (including from and after the Closing) with one another in taking, or causing to be taken, all actions, and to do, or cause to be done, all things necessary or appropriate under applicable Law to consummate the transactions contemplated by this Agreement and the Ancillary Agreements as soon as practicable, including preparing and timely filing with any Governmental Authority or other Person all documentation to effect all necessary or appropriate filings, notices, petitions, statements, registrations, submissions of information, applications and other documents and obtaining and maintaining all approvals, consents, registrations, permits, authorizations and other confirmations required or considered advisable to be obtained from any Governmental Authority or other Person that are necessary or appropriate to consummate the transactions contemplated by this Agreement and the Ancillary Agreements as soon as practicable. The Parties agree to execute and deliver (including from and after the Closing) such other documents, certificates, agreements and other writings and to take such other actions as may be necessary or appropriate in order to consummate or implement expeditiously the transactions contemplated by this Agreement. The Parties agree to provide relevant information to one another in respect of the foregoing to the extent permitted by applicable Law or 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;(b) In furtherance, and not in limitation, of <u>Section 6.1(a)</u>, as promptly as practicable after the execution of this Agreement, each Party (i) shall make all filings and give all notices, including as set forth in <u>Exhibit J</u>, that are or may be required to be made and given by such Party in connection with the transactions contemplated under this Agreement, including the Restructuring Transactions, and (ii) shall use commercially reasonable efforts to obtain all consents that are or may be required to be obtained (pursuant to any applicable Law, Contract, or otherwise) by such Party in connection with the transactions contemplated under this Agreement. Each Party shall, upon request of another Party and to the extent permitted by applicable Law or Contract, promptly deliver to such other Parties a copy of each such filing made, each such notice given and each such consent obtained by it. Notwithstanding anything in this <u>Section 6.1</u>, but subject to <u>Section 6.1(c)</u> and <u>Section 6.1(d)</u>, no Party or its Affiliates (or any member of the Company Group from and after Closing) shall be obligated to pay any money to any Person or to offer or grant other financial or other accommodations to any Person in connection with obtaining any such 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) Cactus shall, and shall cause its Affiliates to, use commercially reasonable efforts to (i) as promptly as practicable obtain all Permits of all Governmental Authorities that may be, or become, necessary for the execution and delivery of, and performance of its obligations pursuant to, the Transaction Documents (including the consummation of the transactions contemplated by this Agreement, but excluding the Restructuring Transactions, which are addressed in <u>Section 6.1(d)</u>) (collectively, the "<u>Government Approvals</u>"), and to supply promptly any additional information and documentary material that may be requested by a Governmental Authority (including to promptly make available any information and appropriate personnel in response to any queries made by a Governmental Authority, which may include information regarding this Agreement, Cactus's capabilities as the potential purchaser of the Business or other matters), (ii) as promptly as practicable secure the issuance, reissuance or transfer of all Permits, that may be or become necessary to operate the Business following the Closing, (iii) take all such actions as may be requested by any such Governmental Authority to obtain such Government Approvals, and (iv) avoid the entry of, or effect the dissolution of, any permanent, preliminary or temporary Order, that would otherwise have the effect of preventing or materially delaying the consummation of the transactions contemplated by this Agreement; *provided*, *however*, that nothing in this Agreement (including <u>Section 6.1(a)</u> or <u>Section 6.1(b)</u>) shall require Cactus to (y) take or agree to take any action with respect to, or that would require or purport to require any action by, Cactus, any of its Affiliates, or any of the Company Group (including any action that limits, or seeks to limit, the freedom of action of, or ownership or control with respect to, any of the businesses, assets, properties or services of Cactus, any of its Affiliates, or any of the Company Group), or (z) proffer a consent and/or agree to an Order, stipulation or other agreement providing for the sale or other disposition, or the holding separate, of any assets, categories of assets or lines of business of Cactus, any of its Affiliates, or any of the Company Group. Baker Hughes shall cooperate with the reasonable requests of Cactus in seeking promptly to obtain all such Government Approvals and the issuance, reissuance or transfer of such Permits. All fees or other payments required by applicable Law to any Governmental Authority in order to obtain any such Government Approvals shall be borne 50% by Cactus and 50% by Baker Hughes; *provided*, that, for the avoidance of doubt, each Party shall pay all fees and expenses of its legal and other advisors in connection with obtaining such Government Approvals.

&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) Baker Hughes shall, and shall cause its Affiliates to, use commercially reasonable efforts to (i) as promptly as practicable obtain all Permits of all Governmental Authorities that may be, or become, necessary in connection with the consummation of the Restructuring Transactions (collectively, the "<u>Reorganization Government Approvals</u>"), and to supply promptly any additional information and documentary material that may be requested by a Governmental Authority (including to promptly make available any information and appropriate personnel in response to any queries made by a Governmental Authority, which may include information regarding this Agreement, Cactus's capabilities as the potential purchaser of the Business (which Cactus agrees to provide to Baker Hughes upon request) or other matters), (ii) as promptly as practicable secure the issuance, reissuance or transfer of all Permits, that may be or become necessary to operate the Business after giving effect to the Restructuring Transactions but before giving effect to the Closing, (iii) take all such actions as may be requested by any such Governmental Authority to obtain such Reorganization Government Approvals, and (iv) avoid the entry of, or effect the dissolution of, any permanent, preliminary or temporary Order, that would otherwise have the effect of preventing or materially delaying the consummation of the Restructuring Transactions, *provided*, *however*, that nothing in this Agreement (including <u>Section 6.1(a)</u> or <u>Section 6.1(b)</u>) shall require Baker Hughes to (y) take or agree to take any action with respect to, or that would require or purport to require any action by, Baker Hughes, or any of its Affiliates (but not including the Company Group) (including any action that limits, or seeks to limit, the freedom of action of, or ownership or control with respect to, any of the businesses, assets, properties or services of Baker Hughes, or any of its Affiliates (but not including the Company Group)), or (z) proffer a consent and/or agree to an Order, stipulation or other agreement providing for the sale or other disposition, or the holding separate, of any assets, categories of assets or lines of business of Baker Hughes, or any of its Affiliates (but not including the Company Group); *provided further*, that Baker Hughes shall not take any action specified in foregoing clause (y) or (z) with respect to any member of the Company Group or the Business Assets without the prior written consent of Cactus (which Cactus may grant or withhold in its sole discretion). Cactus shall cooperate with the reasonable requests of Baker Hughes in seeking promptly to obtain all such Reorganization Government Approvals and the issuance, reissuance or transfer of such Permits. Baker Hughes shall, and shall cause its Affiliates to, pay all fees or make other payments required by applicable Law to any Governmental Authority in order to obtain any such Reorganization Government Approvals.

&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) Each Party shall (i) as promptly as practicable notify the other Party of any substantive oral or written communication it or any of its representatives receives from any Governmental Authority relating to the matters that are the subject of this <u>Section 6.1</u>, (ii) permit the other Party and its representatives to review in advance, and consider in good faith the other Party's comments to, any communication relating to the matters that are the subject of this <u>Section 6.1</u> proposed to be made by such party to any Governmental Authority, and (iii) provide the other Party with copies of all substantive correspondence, filings or other communications between them or any of their representatives, on the one hand, and any Governmental Authority or members of its staff, on the other hand, relating to the matters that are the subject of this <u>Section 6.1</u>, *provided*, *however*, that materials may be redacted (x) to remove references concerning the valuation of the Business, (y) as necessary to comply with contractual arrangements or applicable Law, and (z) as necessary to address reasonable attorney-client or other privilege or confidentiality concerns. Neither Party shall agree to participate in any meeting or discussion with any Governmental Authority in respect of any such filings, investigation or other inquiry unless it consults with the other Party in advance and, to the extent permitted by such Governmental Authority, gives the other Party the opportunity to attend and participate at such meeting. Subject to the Confidentiality Agreement, the Parties shall coordinate and cooperate fully with each other in exchanging such information and providing such assistance as the other Party may reasonably request in connection with the foregoing and in seeking early termination of any applicable waiting periods. Nothing in this <u>Section 6.1(e)</u> will be applicable to Tax 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;(f) Each Party shall use good faith efforts not to take any action (including acquiring or agreeing to acquire by merging or consolidating with, or by purchasing a substantial portion of the assets of or equity in, or by any other manner, any Person or portion thereof, or otherwise acquiring or agreeing to acquire any assets) that would reasonably be expected to have the effect of (i) delaying, impairing or impeding the receipt of, or increasing the risk of not receiving, any required Government Approval or the issuance, reissuance or transfer of any Permit, (ii) delaying, impairing or impeding the expiration or termination of any applicable waiting period with respect to a Government Approval, (iii) increasing the risk of any Governmental Authority entering an Order prohibiting the consummation of the transactions contemplated by this Agreement, or (iv) otherwise delaying the Closing.

Section 6.2 <u>Restructuring Transactions</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) Prior to the Closing (but always subject to <u>Section 2.7</u>, <u>Section 3.7</u>, <u>Section 3.8</u> and <u>Section 3.9</u>), Baker Hughes shall, and shall cause its Affiliates to, take the steps necessary to effect and carry out, in all material respects, the Restructuring Transactions with respect to Baker Hughes (including its Affiliates) and the Business in accordance with <u>Schedule 6.2</u> and the principles in <u>ARTICLE II</u> (as may be amended, modified, updated, supplemented, or altered solely pursuant to the express terms of this Agreement or as agreed in writing between the Parties, the "<u>Reorganization Plan</u>"), in each case (including in respect of any Deferred Actions) at Baker Hughes's sole cost and expense, including any Taxes incurred in connection therewith, notwithstanding anything to the contrary in any Foreign Transfer 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;(b) The Restructuring Transactions will be effected (i) in accordance with the agreed principles, objectives and other provisions set forth in this <u>Section 6.2</u>, (ii) through the provision of services provided under any Ancillary Agreements (as applicable), and (iii) as set forth in the Reorganization Plan, which shall be implemented through the completion of the transactions generally described in the Reorganization Plan pursuant to customary short-form acquisition agreements, transfer agreements, assumption agreements or other similar instruments of sale as applicable and as may be required in a jurisdiction in which applicable Law or custom requires observance of specified formalities or procedures to legally effect the Restructuring Transactions (each a "<u>Foreign Transfer Agreement</u>") on a country-by-country basis in substantially the forms attached hereto as <u>Exhibit K</u>; *provided*, that, (y) the Parties shall cooperate in good faith to identify such agreements and documents; and (z) Baker Hughes shall prepare the Foreign Transfer Agreements, permit Cactus to review such Foreign Transfer Agreements and consider in good faith any reasonable comments provided by Cactus which shall be provided to Baker Hughes within a timely manner. Cactus shall not, and shall cause its Affiliates not to, delay the provision of any comments in accordance with this <u>Section 6.2(b)</u>, which would impact the ability of Baker Hughes and its Affiliates to implement the Restructuring Transactions in accordance with the Reorganization 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;(c) For the avoidance of doubt and without prejudice to the rights of the Parties under this Agreement, (i) the Foreign Transfer Agreements shall not have any effect on the value being given or received by Baker Hughes, the Company or Cactus, including the allocation of assets and Liabilities as between them, all of which shall be determined solely in accordance with this Agreement, and (ii) in the event of any conflicts between any Foreign Transfer Agreement and this Agreement, the terms of this Agreement shall control in all respects. The Parties shall not, and shall cause their respective Affiliates not to, bring any Disputes or claim for any Action under any Foreign Transfer Agreement, it being agreed by the Parties that any such Dispute or claim for any Action shall be made under, subject to and in accordance with, the terms, conditions and provisions set forth 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;(d) Without the prior written consent of Cactus (which consent shall not be unreasonably withheld, conditioned or delayed), Baker Hughes shall not be permitted to amend, modify, update, supplement, alter or waive any provisions of the Reorganization Plan or the Foreign Transfer Agreements (i) in a manner that would materially increase the Business Liabilities allocated to any specific member of the Company Group or materially alter the Business Assets that will be allocated to any specific member of the Company Group as of the Closing, (ii) to contemplate the formation of any New Business Entity not previously contemplated by the Reorganization Plan, (iii) in a manner that would materially and adversely affect the Tax position of any member of the Company Group or Cactus in respect of the Cactus Membership Interests, (iv) in a manner that would materially and adversely affect the conduct of the Business or the operation of the Business Assets taken as a whole in the Ordinary Course following the Closing, or (v) after the date that is twenty (20) Business Days prior to 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;(e) <u>Allocation Schedules</u>. For purposes of Sections 741, 743, 755 and 1060 of the Code, the purchase price paid with respect to the Cactus Membership Interests (as determined for U.S. federal income tax purposes), including the Closing Payment Amount and the Deferred Payment, and any other items constituting taxable consideration for applicable income Tax purposes (the "<u>Tax Purchase Price</u>") shall be allocated among the assets of the Company in accordance with applicable requirements of the Code (the "<u>Allocation</u>"). In connection therewith, as soon as reasonably practicable following the date of this Agreement and at Baker Hughes' sole cost and expense, Baker Hughes shall deliver to Cactus an appraisal allocating the estimated Tax Purchase Price (which estimated Tax Purchase Price shall take into account the Business Liabilities) among the Business Assets in a manner consistent with the principles of Section 755 and Section 1060 of the Code and the Treasury Regulations thereunder and assuming that all such Business Assets were held directly by the Company (the "<u>Appraisal</u>"). Cactus, at its sole cost and expense, shall have twenty (20) Business Days from receipt of the Appraisal to review the Appraisal. If Cactus does not object in writing to any aspect of the Appraisal within such twenty (20) Business Day period, the Appraisal shall be deemed final and agreed by Baker Hughes and Cactus (the "<u>Final Appraisal</u>"). If Cactus disputes any aspect of the Appraisal, it shall deliver written notice to Baker Hughes (an "<u>Appraisal Dispute Notice</u>") within such twenty (20) Business Day period listing the disputed items and the basis therefor. Baker Hughes and Cactus shall then use good faith efforts to resolve such disputed items set forth in the Appraisal Dispute Notice as soon as reasonably practicable. If the Parties are unable to resolve such disputed items set forth in the Appraisal Dispute Notice within five (5) Business Days after the delivery date of the Appraisal Dispute Notice, then the Parties shall immediately jointly engage the Independent Valuation Firm to resolve such disputed items within fifteen (15) Business Days of engagement, and the conclusions of the Independent Valuation Firm shall constitute the Final Appraisal. The Parties shall consult and cooperate with the Independent Valuation Firm in connection therewith, including by providing the Independent Valuation Firm with such information as it shall reasonably request. The Parties shall then use the values reflected in the Final Appraisal in implementing all portions of the Restructuring Transactions and the Reorganization Plan. Baker Hughes and Cactus further agree that as soon as reasonably practicable but in all events within one-hundred twenty (120) days following the final determination of the Closing Payment Amount as set forth in <u>Section 3.6</u>, the Parties shall use the Final Appraisal to determine the Allocation in a manner consistent with the principles of Section 755 and Section 1060 of the Code and the Treasury Regulations thereunder. In the event that an agreement has not been reached within one-hundred twenty (120) days following the final determination of the Closing Payment Amount as set forth in <u>Section 3.6</u>, the unresolved disputed items will be determined by the Independent Expert and in a manner consistent with the Final Appraisal and the principles of Section 755 and Section 1060 of the Code and the Treasury Regulations thereunder, and such determination will be binding on the Parties and be taken into account in the Allocation. Each of Baker Hughes and Cactus will pay one half of the fees and expenses of the Independent Valuation Firm and the Independent Expert in connection with this <u>Section 6.2(e)</u>. The Parties shall use commercially reasonable efforts to update the Allocation in a manner consistent with the Final Appraisal and the principles of Section 755 and Section 1060 of the Code following any adjustment to the Tax Purchase Price. The Allocation as agreed to by the Parties or as finally determined by the Independent Expert shall be final, conclusive, and binding on each of Baker Hughes, Cactus, and the Company for all applicable tax purposes and for all purposes of this Agreement, and neither Baker Hughes, Cactus, the Company, nor any of their Affiliates shall take any position (whether in audits, Tax Returns or otherwise) that is inconsistent with such Allocation unless required to do so by a "determination" within the meaning of Section 1313(a) of the Code or other applicable Law, and Baker Hughes, Cactus, and the Company agree to promptly notify the other Party regarding the existence of any Tax audit, controversy or litigation related to the Allocation.

Section 6.3 <u>R&W Policy</u>. Following the execution of this Agreement, Cactus shall satisfy the conditions set forth in the R&W Policy Conditional Binder to cause the R&W Policy to be issued on terms and substantially in the form set forth in the R&W Policy Conditional Binder as soon as practicable. Baker Hughes shall, and shall cause its Affiliates to, reasonably cooperate with Cactus's efforts and provide assistance as reasonably requested by Cactus to obtain and bind the R&W Policy. Cactus agrees that it shall not permit any amendment to the R&W Policy to permit rights of subrogation against Baker Hughes and its Affiliates other than solely for subrogation rights against Baker Hughes for Fraud in connection with the representations and warranties made by Baker Hughes in this Agreement. Additionally, Cactus covenants and agrees that it will not, and will not permit the Company to, amend, repeal or modify any (a) subrogation provision of the R&W Policy benefitting Baker Hughes or its Affiliates, or (b) other provision of the R&W Policy that is in any manner adverse, in any material respect, to Baker Hughes or any of its Affiliates, in each case, without Baker Hughes's prior express written consent. The premium associated with the R&W Policy shall be borne 50% by Cactus and 50% by Baker Hughes.

Section 6.4 <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) As promptly as reasonably practicable following the date of this Agreement (and in no event later than twenty (20) Business Days prior to the Closing Date), Baker Hughes shall deliver to Cactus the audited combined statement of assets and liabilities of the Business as of December 31, 2024 and the audited statement of income of the Business for the year then ended, and all related notes and schedules thereto, accompanied by an audit report of KPMG LLP (collectively, the "<u>Audited Financial Statements</u>"), which Audited Financial Statements shall be "abbreviated financial statements" as referred to in Rule 3-05(e)(2) and as permitted by Rule 3-05(e), each of Regulation S-X. As promptly as reasonably practicable following each fiscal quarter end occurring prior to the Closing, but in no event later than sixty (60) days following the end of each such fiscal quarter end and to the extent required pursuant to Law or stock exchange requirements applicable to Cactus or its Affiliates, Baker Hughes shall deliver to Cactus the unaudited combined statement of assets and liabilities of the Business as of such quarter end and the unaudited statement of income of the Business for the quarter then ended (each such statement, a "<u>Quarterly Financial Statement</u>") and for the prior year's comparable quarter then ended, which statements shall be "abbreviated financial statements" as referred to in Rule 3-05(e)(2) and as permitted by Rule 3-05(e), each of Regulation S-X.

&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) At Cactus's request, Baker Hughes shall use commercially reasonable efforts (at Cactus's expense for any out-of-pocket Third Party costs or expenses actually incurred by Baker Hughes or its Affiliates) to obtain the consent of KPMG LLP to include its report with respect to the Audited Financial Statements in any filing that Cactus may be required to make with the U.S. Securities and Exchange Commission under applicable Law (the "<u>Required SEC Filings</u>"), each dated as of the filing date of the applicable Required SEC Filing or such other date as reasonably requested by Cactus. In addition, Baker Hughes will not object to the reasonable use of any such financial statements in any Required SEC Filing; *provided*, that Cactus, prior to any such Required SEC Filing, shall provide final drafts of the applicable excerpts using such financial statements in such Required SEC Filing for Baker Hughes review a reasonable period of time prior to making such Required SEC Filing.

&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) At Cactus's request, Baker Hughes shall use commercially reasonable efforts to cause to be delivered to Cactus, at Cactus's expense, "comfort" letters of KPMG LLP, each dated as of a date as reasonably requested by Cactus, and addressed to Cactus or its specified Affiliate or Affiliates with regard to the Audited Financial Statements included in, or incorporated by reference into, any Required SEC Filing, in form and substance customary in scope and substance for "comfort" letters delivered by independent public accountants in connection with underwritten public debt or equity offerings.

&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) As reasonably requested by Cactus, Baker Hughes shall, and shall cause its Affiliates to, provide reasonable and customary support to Cactus (at Cactus's expense for any out-of-pocket Third Party costs or expenses actually incurred by Baker Hughes or its Affiliates to provide such support), in connection with preparation of any pro forma financial information required in any Required SEC Filing. Cactus shall indemnify and hold harmless Baker Hughes and its Affiliates from and against any and all Losses arising from or relating to any Required SEC Filing.

ARTICLE VII<u><br> Other Covenants</u>

Section 7.1 <u>Conduct of Business Before 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) Except (i) as required by applicable Law or as otherwise contemplated by or necessary to effectuate the Transaction Documents, including the Restructuring Transactions or any actions contemplated by the Reorganization Plan or <u>Section 2.2</u>, (ii) for matters identified on <u>Schedule 7.1</u>, or (iii) as expressly consented to in writing by Cactus (which consent will not be unreasonably withheld, conditioned or delayed), during the period from the date of this Agreement through the Closing, Baker Hughes will, and will cause its Affiliates to (A) conduct the Business and the Company Group in all material respects in the Ordinary Course, (B) use commercially reasonable efforts to keep intact the Business, keep available the services of the Business's current employees and service providers and preserve the Business's relationships with customers, suppliers, licensors, licensees, distributors, lenders and other Persons with whom the Business has material commercial dealings, and (C) not do or permit any of the following in respect of the Business or 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;(i) (A) grant or permit any Encumbrance on any material Business Assets (in each case, whether tangible or intangible) that did not exist on the date of this Agreement, other than granting or permitting a Permitted Lien on any material Business Assets or liens under any applicable credit agreements or related documents in effect as of the date of this Agreement, or (B) except for trade payables incurred in the Ordinary Course, incur, assume, guarantee, or become obligated with respect to any Debt in the nature of borrowings that will not be fully discharged prior to or in connection with 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) sell, transfer, lease, sublease, let lapse, abandon or otherwise dispose of any Business Assets with a value or purchase price in the aggregate in excess of $1,000,000, except for divestitures and sales and renting of parts, products, equipment, wellhead systems, tools and machinery or the disposal of unusable or obsolete assets, in each case in the Ordinary Course; *provided*, that no sale of Owned Property or lease or sublease of Material Leases is permitted without the prior written consent of Cactus (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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) offer employment to, or engage or offer engagement as an individual independent contractor to, any individual if such Person's annual salary or other compensation will exceed $250,000, unless such annual salary or other compensation is in the Ordinary Course and has been approved prior to its effective date and in writing by a senior manager 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;(iv) adopt, sponsor, maintain or contribute to (or be required to contribute to) or assume any Liabilities with respect to, any Benefit Plan, except to the extent: (A) occurring in the Ordinary Course, (B) required by Law, or (C) required by any Baker Hughes Benefit Plan or Material Contract in effect on the date 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) (A) except to the extent required by Law or by the terms of any Benefit Plans as in effect on the date of this Agreement or for changes thereto that are in the Ordinary Course, materially increase, accelerate or provide additional rights to compensation or material benefits with respect to any Business Employee; (B) except to the extent required by Law or for changes thereto that are in the Ordinary Course, enter into or put in place any severance, termination, or similar plan or benefits for any Business Employee; (C) enter into or put in place any retention or change in control, or similar plan or benefits for any Business Employee; or (D) except for changes occurring in the Ordinary Course and adopted pursuant to annual compensation reviews, adjust the salary or base rate of pay, long-term incentives or short-term incentives payable or provided to any 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;(vi) (A) enter into any Labor Agreement or other Contract or understanding with any labor union, works council, trade union, or similar organization or representative with respect to any Business Employee or the members of the Company Group; (B) except for transfers that are in the Ordinary Course and/or which are contemplated by the Reorganization Plan, transfer the employment or engagement of services of any Business Employee out of or to the Business; *provided, however*, that no such transfers shall occur that are inconsistent with the terms of the Global Employee Services Agreement; or (C) except for terminations that are in the Ordinary Course, terminate the employment or engagement of services of any Business Employee, other than for 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) settle or compromise any material Tax Liability related to the Company Group, (B) agree to any extension or waiver regarding the application of the statute of limitations with respect to any material Taxes or material Tax Returns related to the Company Group, (C) make or change any entity classification or other material election with respect to Taxes of the Company Group, (D) file any material amendment to an income or other material Tax Return related to the Company Group, (E) repatriate any Cash or other assets to the extent that such repatriation would result in a Liability to the Company Group for Taxes (other than Baker Hughes Indemnified Taxes), (F) surrender any right to claim a refund of Taxes related to the Company Group, (G) request any ruling from, or initiate or enter into any voluntary disclosure with, a Governmental Authority with respect to material Taxes, or (H) enter into any "closing agreement" as described in Section 7121 of the Code (or any similar provision of state or local Tax Law) with any Governmental Authority with respect to material 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) enter into any settlement or release with respect to any Action that is material to the Business or the Company Group other than any settlement or release that (A) contemplates only the payment of money, (B) such payment of money is paid prior to the Closing and (C) such settlement or release results in no ongoing limits on the conduct or operation of the Business and results in a full release of the claims giving rise to such Action; *provided*, that this clause (viii) shall not apply with respect to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) materially amend or voluntarily terminate (other than expiration in accordance with its terms) any Material Contract or enter into, materially amend or voluntarily terminate (other than expiration in accordance with its terms) any contract that, if in effect on the date of this Agreement, would be a 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) enter into or renew any Parent Guarantees other than in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) change any method of accounting or accounting practice, in each case, which materially affects or relates to the Business, except for any such changes required by applicable Law or under applicable accounting standards (including the interpretation thereof by consensus of industry participants);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) merge, consolidate, combine or amalgamate any member of the Company Group with any Person or cause any member of the Company Group to acquire any Equity Interests in any other Person or issue any Equity Interests to another Person (in each case, other than another 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;(xiii) authorize, recommend, propose, enter into, adopt a plan or announce an intention to adopt a plan of complete or partial liquidation or dissolution, merger, consolidation, restructuring, recapitalization or other reorganization 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) amend or propose any change to the Organizational Documents of any member of the Company Group (other than ministerial changes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) cause the Business or any member of the Company Group to make or become legally committed to make any capital expenditures, except for (A) capital expenditures fully paid prior to Closing, (B) capital expenditures in an amount not to exceed $1,000,000 individually or $3,000,000 in the aggregate, or (C) in accordance with the capital budget of the Business for fiscal year 2025, which has been made available to Cactus; *provided*, that notwithstanding the foregoing, Baker Hughes shall, and shall cause its Affiliates to, make the capital expenditures set forth on <u>Schedule 7.1(a)(xv)</u>, unless otherwise consented to in writing by Cactus (such consent not to be unreasonably withheld) in the event such capital expenditures are no longer required; 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;(xvi) agree, authorize or consent 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) Nothing in this <u>Section 7.1</u> will be deemed to limit in any manner the consummation of the Restructuring Transactions pursuant to the Reorganization Plan, or the transfer of any Business Assets, Business Liabilities or Business Employee to the Company Group, in each case, in accordance with the Reorganization Plan.

Section 7.2 <u>Publicity; Confidentiality</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) The Parties shall agree to an initial press release or public announcement concerning this Agreement or the transactions contemplated hereby. Thereafter, no Party shall issue any press release or public announcement concerning this Agreement or the transactions contemplated hereby without obtaining the prior written approval of the other Party (which shall not be unreasonably withheld, conditioned or delayed), except to the extent such disclosure is otherwise required by applicable Law, in which case the Parties shall use commercially reasonable efforts consistent with such applicable Law to consult each other with respect to the timing and content thereof; *provided*, that the foregoing shall not apply to any press release or public announcement that contains statements concerning this Agreement or the transactions contemplated hereby that are consistent with previous press releases or announcements made by the applicable Party in compliance with this <u>Section 7.2(a)</u>; *provided further*, that the foregoing will not restrict or prohibit any Party from making any announcement in compliance with the terms and conditions of this Agreement to its respective employees, customers and other business relations (in each case, in their capacities as such) to the extent that such Party reasonably determines in good faith that such announcement is necessary or advisable, but only to the extent the content of which is consistent with previous press releases or announcements made by the applicable Party with respect to which such Party has complied with the provisions of this <u>Section 7.2(a)</u>. The Parties acknowledge and agree that Cactus may file this Agreement, including a summary hereof, with the U.S. Securities and Exchange Commission or otherwise make press releases or other public statements, in each case, as necessary to comply with applicable Laws and/or stock exchange rules. In the event that such disclosure, availability or filing is required by applicable Law, each of the Parties (as applicable) will use their commercially reasonable efforts to obtain "confidential treatment" of this Agreement with such Governmental Authority and to redact such terms of this Agreement as the other Party shall 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;(b) The terms of the nondisclosure agreement dated April 14, 2022, as amended on October 12, 2023 between BH Energy Manufacturing LLC and Cactus (the "<u>Confidentiality Agreement</u>") are incorporated into this Agreement by reference and will continue in full force and effect (and all obligations thereunder will be binding upon Cactus as if a party thereto) until the Closing, at which time the obligations under the Confidentiality Agreement will terminate; *provided*, *however*, that Cactus's confidentiality obligations will terminate only in respect of that portion of the Evaluation Material (as defined in the Confidentiality Agreement) exclusively relating to the Business, and for all other Evaluation Material and Notes (as defined in the Confidentiality Agreement), the Confidentiality Agreement will continue in full force and effect in accordance with its terms. If for any reason the Closing does not occur, the Confidentiality Agreement will continue in full force and effect in accordance with its terms.

Section 7.3 <u>Wrong Pockets; Shared 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) If, following the Closing, the Company becomes aware that it or any of its Affiliates (i) owns or is in possession of any Excluded Assets, or (ii) receives a payment with respect to an Excluded Asset that is properly due, deliverable or owing to Baker Hughes (or to any of its Affiliates), then the Company shall (and shall cause its Affiliates to, as applicable) (A) transfer or cause to be transferred, for no consideration and at Baker Hughes's sole cost and expense (including any Baker Hughes Transfer Taxes applicable to such transfer), such Excluded Asset to Baker Hughes (or such Party's designee), as applicable, or (B) reimburse Baker Hughes (or such Party's designee), as applicable, for any amount referred to in the foregoing clause (ii), respectively. Without limiting the rights under <u>Section 12.2(b)(iii)</u>, if, following the Closing, the Company becomes aware that it or any of its Affiliates is liable under or otherwise responsible for discharging a Liability that constitutes an Excluded Liability, then Baker Hughes, for no consideration and at Baker Hughes's sole cost and expense, shall (or shall cause its designated Affiliate to) promptly assume such Liability from the Company or the Company's Affiliate, 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;(b) If, following the Closing, Baker Hughes becomes aware that it or any of its Affiliates (i) owns or is in possession of any Business Asset, or (ii) receives a payment with respect to any Business Asset that is properly due, deliverable or owing to the Company (or any of its Affiliates), then Baker Hughes shall (and shall cause its Affiliates to, as applicable) (A) transfer or cause to be transferred, for no consideration and at Baker Hughes's sole cost and expense (including any Baker Hughes Transfer Taxes applicable to such transfer), such Business Asset to the Company (or its designee), as applicable, or (B) reimburse the Company (or its designee), as applicable, for any amount referred to in the foregoing clause (ii), respectively. Without limiting the rights under <u>Section 12.2(c)</u>, if, following the Closing, Baker Hughes becomes aware that it or any of its Affiliates is liable under or otherwise responsible for discharging a Liability that constitutes a Business Liability, then the Company, for no consideration and at Baker Hughes's sole cost and expenses, shall (or shall cause its designated Affiliate to) promptly assume such Liability from Baker Hughes or Baker Hughes's Affiliate, 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;(c) Without limiting the provisions of <u>Section 7.3(a)</u>, with respect to each of the Shared Contracts which are set forth on <u>Schedule 7.3(c)</u>, Baker Hughes and Cactus shall cooperate and shall use commercially reasonable efforts to cause such Shared Contracts to be separated and assigned in part to the Company Group effective as of the Closing, so that after the Closing, the Company Group shall be entitled to the rights and benefits thereunder to the extent relating to the Business Assets, and the Company Group shall have assumed any Business Liabilities arising thereunder, and Baker Hughes (or any of its Affiliates) shall be entitled to the rights and benefits thereunder to the extent relating to the Excluded Assets and shall have assumed (or continue to bear) any Excluded Liabilities arising thereunder. The Parties shall reasonably cooperate with each other to effect such separation. If any Shared Contract cannot be so separated, each of Baker Hughes and Cactus shall, and shall cause each of their respective Affiliates to, use their commercially reasonable efforts to cause, (i) the rights and benefits under each Shared Contract to the extent relating to the Business Assets to be enjoyed by the Company Group, (ii) the Liabilities under each Shared Contract to the extent they are Business Liabilities to be borne by the Company Group, (iii) the rights and benefits under each Shared Contract to the extent relating to the Excluded Assets to be enjoyed by Baker Hughes or the applicable Affiliate of Baker Hughes, and (iv) the Liabilities under each Shared Contract to the extent they are Excluded Liabilities or relate to any business conducted by Baker Hughes or its Affiliates after the Closing that is not the Business to be borne by Baker Hughes or the applicable Affiliate of Baker Hughes. To the extent any provision of the Transition Services Agreement is inconsistent with or conflicts with this <u>Section 7.3(c)</u>, the terms of the Transition Services Agreement shall prevail, except to the extent the Parties have mutually agreed otherwise in writing. The out-of-pocket costs of (and any internal allocation of Baker Hughes's or its Affiliates' costs associated with) such separation shall be borne by Baker Hughes.

Section 7.4 <u>Guarantees; Other Obligations</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) Prior to the Closing, Cactus shall use commercially reasonable efforts to (a) arrange for substitute letters of credit, surety bonds, buyer guarantees and other obligations to replace the guarantees, letters of credit, surety bonds and other similar contractual support obligations entered into or provided by Baker Hughes or any of its Affiliates (other than any member of the Company Group) in connection with the Business and that are set forth in <u>Schedule 7.4</u>, and such other guarantees, letters of credit, and surety bonds as may be entered into or provided by Baker Hughes or any of its Affiliates (other than any member of the Company Group) in connection with the Business in the Ordinary Course between the date of this Agreement and the Closing in accordance with <u>Section 7.1(a)(x)</u> (together, the "<u>Parent Guarantees</u>"), or (b) assume all obligations under each Parent Guarantee, obtaining from the creditor, beneficiary or other counterparty an irrevocable and unconditional full release (in a form reasonably satisfactory to Baker Hughes) of all parties liable, directly or indirectly, for reimbursement to the creditor or fulfillment of other obligations to a beneficiary or counterparty in connection with amounts drawn under the Parent Guarantees, in each case of the foregoing clause (a) or (b), subject to and to be effective on the occurrence of the Closing; *provided*, *however*, that Cactus shall not be required to make any payment or grant any concession (financial or otherwise) (unless otherwise reimbursed by Baker Hughes and its Affiliates) to effect such release (except for providing the aforementioned credit support). To the extent the beneficiary or counterparty under any Parent Guarantee does not accept any such substitute letter of credit, buyer guarantee or other obligation proffered by Cactus or such full release of any Parent Guarantee is not otherwise obtained, from and after Closing, (A) Cactus agrees to continue to use its commercially reasonable efforts after the Closing to as promptly as practicable relieve Baker Hughes and its Affiliates of all such Parent Guarantees, (B) until the earlier of (i) the two (2)-year anniversary of the Closing Date and (ii) six (6) months after such time that Baker Hughes ceases to be a member, directly or indirectly, of the Company (such date, the "<u>Guarantee Date</u>"), Baker Hughes shall not, and shall not permit its Affiliates to, terminate such Parent Guarantees without the written consent of Cactus; *provided*, that, for the avoidance of doubt, neither Baker Hughes nor its Affiliates, shall have any obligation following Closing to renew or extend such Parent Guarantees, (C) from and after the Closing and until Baker Hughes's or its Affiliates' Liabilities under each Parent Guarantee have been irrevocably and unconditionally released, Cactus shall indemnify, defend and hold harmless Baker Hughes and its Affiliates against, and reimburse Baker Hughes and its Affiliates for, all amounts paid (including out-of-pocket costs or expenses) in connection with any such Parent Guarantee that remains outstanding, including Baker Hughes's and its Affiliates' out-of-pocket expenses in maintaining such Parent Guarantees, whether or not any such Parent Guarantee is drawn upon or required to be performed, and will in any event promptly reimburse Baker Hughes and its Affiliates to the extent any Parent Guarantee is called upon and Baker Hughes or its Affiliates makes any payment or is obliged to reimburse the party issuing the Parent Guarantee, and (D) Cactus shall not, without Baker Hughes's prior written consent, amend in any manner adverse to Baker Hughes or any of its Affiliates, or extend (or permit the extension of), any such Parent Guarantee that remains outstanding, or any obligation supported by any such Parent Guarantee that remains outstanding unless, prior to or concurrently with such extension or renewal, Baker Hughes's or its Affiliates' Liabilities under such Parent Guarantee have been irrevocably and unconditionally fully released.

&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) On and after the Guarantee Date, at the request of Baker Hughes, Cactus shall provide Baker Hughes and its Affiliates with a guarantee issued by Cactus, in an amount equal to Baker Hughes' and its Affiliates' entire potential Liability pursuant to all Parent Guarantees that have not been irrevocably and unconditionally fully released as of such time, which letter of credit, guarantee or other financial assurance obligation will not expire, terminate or be cancelled until Baker Hughes and its Affiliates are irrevocably and unconditionally fully released from the entire potential Liability with respect to such Parent Guarantees; *provided*, that upon the full and unconditional release of any such Liability, the amount guaranteed by Cactus shall be reduced by the amount of such Liability so released.

Section 7.5 <u>Exclusivity</u>. From the date of this Agreement until the earlier of the Closing Date and the termination of this Agreement pursuant to <u>ARTICLE XIII</u>, Baker Hughes shall not, and shall cause its Affiliates not to, directly or indirectly, encourage, initiate, solicit or engage in any proposal or inquiry from, or discuss or negotiate with, any Person (other than Cactus and its Affiliates and representatives) with respect to the sale of the Business.

Section 7.6 <u>Managers, Directors and Officers</u>. Subject to the terms of the LLC Agreement, unless otherwise instructed by Cactus, effective as of the Closing Date, Baker Hughes shall use commercially reasonable efforts to remove, or cause to be removed (and Cactus shall use commercially reasonable efforts to cooperate with Baker Hughes to remove), the managers, directors and officers of the Company Group, or otherwise cause such managers, directors and officers to resign from the Company Group, in each case, subject to applicable local Law requirements and related mechanics for removal by Baker Hughes of, and replacement by Cactus of, managers, directors and officers (including with respect to timing for removal of such managers, directors and officers and replacement of such managers, directors and officers by Cactus). The Parties shall cooperate in good faith to resolve or create reasonable alternative arrangements if applicable local Law or requirements thereunder would prevent or hinder such removal on the Closing Date or otherwise make such removal on the Closing Date impracticable.

Section 7.7 <u>Termination of Intercompany Transactions</u>. Except for the Transaction Documents (including the services or other obligations provided thereunder) or as set forth on <u>Schedule 7.7</u>, on or prior to the Closing Date (or, with respect to any Deferred Business, the Deferred Closing), Baker Hughes shall terminate, or cause to be terminated, in a manner reasonably acceptable to Cactus, all Liabilities (including Debt), intercompany agreements, Contracts and other transactions that would otherwise be in place or exist between any member of the Company Group, on the one hand, and Baker Hughes or any of its Affiliates, on the other hand, following Closing; *provided*, *however*, that such manner of termination shall not result in Liability thereunder for any member of the Company Group following the Closing.

Section 7.8 <u>Data Room</u>. Promptly following the execution and delivery of this Agreement, Baker Hughes shall provide, or cause to be provided, Cactus with two (2) USB "flash" drives or other suitable tangible storage mediums of the Data Room, as it exists as of Data Room Upload Date.

Section 7.9 <u>Company Group Hedges</u>. Prior to Closing, Baker Hughes shall close-out, settle and unwind each Company Group Hedge and bear sole economic responsibility for or be solely entitled to, as applicable, the consequences of such close-out, settlement and unwinding of the Company Group Hedges.

Section 7.10 <u>Access to 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) During the period from the date of this Agreement until the earlier of the Closing and the termination of this Agreement in accordance with its terms, upon receipt of reasonable advance notice, Baker Hughes will afford Cactus and its representatives reasonable access, during normal business hours, to Baker Hughes's and the Company Group's offices, properties (including the Owned Property and the Leased Property), officers, and books, Contracts and Records (whether in physical or electronic form), in each case, that are applicable to the Company Group or the Business, and will furnish Cactus with such additional information concerning the Company Group or the Business as may reasonably be requested in connection therewith for purposes of evaluation or consummating the transactions or preparing to operate the business of the Company Group following the Closing (at Cactus's sole costs and expense); *provided*, that such furnishing specifically excludes any obligations of Baker Hughes and its Affiliates to prepare or present financial information or financial statements that do not already exist as of the date of such request, except as otherwise required pursuant to <u>Section 6.3</u>. Notwithstanding the anything to the contrary in this Agreement, (a) Cactus will not, without the prior written consent of Baker Hughes, be permitted or entitled to conduct any environmental investigation, sampling or testing or any sampling or testing of building materials, including any environmental investigation, sampling or intrusive investigation of air, surface water, groundwater, soil, or anything else at or in connection with any properties or assets of Baker Hughes; and (b) Cactus will have no right of access to, and Baker Hughes and the Company will have no obligation to provide to or furnish to Cactus, (i) any access or information, if doing so, (x) could reasonably violate any Law or Contract to which Baker Hughes or its Affiliate is a party or is subject, (y) in connection therewith, Baker Hughes or its Affiliate, as applicable, believe in good faith such disclosure could result in a loss of the ability to successfully assert a claim of privilege (including the attorney-client and work product privileges) or conflict with any confidentiality obligations to which Baker Hughes or its Affiliate is bound, or (z) could result in the disclosure of any competitively sensitive information, confidential information relating to trade secrets, proprietary know-how, processes or patent, trademark, trade name, service mark, or copyright applications or relating to any product development or pricing and marketing plans to the extent counsel to Baker Hughes or its Affiliate advises that doing so would likely be a violation of applicable Law, nor shall Baker Hughes or its Affiliates be required to permit or cause others to permit Cactus or its representatives to have access to or to copy or remove from the offices or properties of Baker Hughes or its Affiliates any documents, drawings or other materials that might reveal any such confidential information, (ii) Tax Return of any consolidated, combined, affiliated, or unitary group the parent of which is Baker Hughes or one of its Affiliates (other than a member of the Company Group) or any Tax-related work papers relating to such Tax Returns, (iii) information with respect to bids, the identity of any bidder, confidentiality or non-disclosure agreements, letters of intent, expressions of interest or other proposals received in connection with transactions comparable to those contemplated by this Agreement or any information or analysis relating to any such communications, or (iv) any Retained Records. Any permitted inspection conducted by Cactus or its representatives prior to the Closing will be conducted in accordance with applicable Laws and in such manner as not to interfere unreasonably with the business, personnel or operations of the Company Group. Notwithstanding anything to the contrary contained herein, prior to the Closing, without the prior written consent of Baker Hughes, Cactus shall not, and shall cause its representatives not to, contact any employees of, lender of, suppliers to, customers or distributors of, or other third party business partners of Baker Hughes or its Affiliates, except (A) as otherwise permitted in <u>Section 7.2</u>, <u>Section 7.4</u>, or <u>ARTICLE X</u>, (B) for contacts of suppliers, customers, distributors, or third party business partners by Cactus in the ordinary course of business consistent with past practices and unrelated to Baker Hughes or its Affiliates or the Business and without reference to Baker Hughes, its Affiliates, the Business or this Agreement and (C) contacts with Baker Hughes employees who are not a Business Employee and which contacts do not relate to this Agreement, the Ancillary Agreements or the transactions contemplated hereby or thereby. In addition, except as provided for in <u>Section 6.1</u> or with the express written consent of the Company, prior to the Closing, Cactus shall not, and shall cause its representatives not to, contact any Governmental Authority (or representative thereof) regarding Baker Hughes or its Affiliates, this Agreement or the transactions contemplated hereby.

&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) If Cactus exercises rights of access under, and subject to, <u>Section 7.10(a)</u>, then (i) such access, examination and inspection will be at Cactus's sole risk, cost and expense and Cactus waives and releases all claims against Baker Hughes, the Company Group and their respective partners and members and their Affiliates and the respective employees, directors, officers, attorneys, contractors and agents of such parties (collectively the "<u>Inspection Indemnitees</u>") arising in any way from Cactus's exercise of its rights of access under, and subject to, <u>Section 7.10(a)</u>, and (ii) except to the extent of an Inspection Indemnitee's gross negligence or knowing and intentional misconduct, Cactus will indemnify, defend and hold harmless the Inspection Indemnitees from and against any and all claims, liabilities, losses, damages, fines, penalties, costs or expenses (including, court costs, costs of suit, consultants' and attorneys' fees) of any kind or character. THE FOREGOING RELEASE AND INDEMNIFICATION WILL APPLY WHETHER OR NOT SUCH DAMAGES ARISE OUT OF (A) NEGLIGENCE (INCLUDING SOLE NEGLIGENCE, SIMPLE NEGLIGENCE, CONCURRENT NEGLIGENCE, ACTIVE OR PASSIVE NEGLIGENCE, BUT EXCLUDING GROSS NEGLIGENCE OR KNOWING AND INTENTIONAL MISCONDUCT) OF BAKER HUGHES, THE COMPANY OR THEIR RESPECTIVE AFFILIATES, OR (B) STRICT LIABILITY.

Section 7.11 <u>Payoff Letters and Encumbrance Releases</u>. Prior to the Closing, Baker Hughes shall (a) obtain and deliver to Cactus customary payoff letters in connection with the repayment of any outstanding Debt in the nature of borrowings of the Business or the Company Group as of immediately prior to the Closing and after giving effect to the Restructuring Transactions or that subjects the Business Assets to an Encumbrance (other than a Permitted Lien) immediately prior to the Closing, together with any customary financing termination statements or mortgage releases and shall obtain other release and termination documentation necessary and reasonably requested by Cactus to, subject to receipt by the lenders of such Debt of the applicable payoff amounts, terminate all such Encumbrances, in a form reasonably satisfactory to Cactus (collectively, the "<u>Payoff Letters</u>"), and (b) make arrangements for the delivery to the applicable member of the Company Group of any possessory collateral to the extent such possessory collateral is a Business Asset, subject to the receipt of the applicable payoff amounts by the lenders of such Debt.

Section 7.12 <u>Additional Agreements</u>. The Parties hereby agree to the terms and conditions set forth in <u>Schedule 7.12</u>.

ARTICLE VIII<u><br> Intellectual Property Matters</u>

Section 8.1 <u>Retention of Ownership of IP</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) Except as otherwise provided in the Transaction Documents, Baker Hughes and each of its Affiliates, shall retain all of its respective right, title and interest in and to all Intellectual Property Rights it owns or acquires other than the Business Owned IP. For the avoidance of doubt, no license is granted between Baker Hughes and Cactus or their respective Affiliates to use the trademarks of the other 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) Cactus and its Affiliates shall cause each member of the Company Group to use their commercially reasonable efforts to (i) as soon as reasonable practicable after the Closing Date (but in any event no later than one hundred and twenty (120) days following the Closing Date) cease all use of any of the Baker Hughes Name and Baker Hughes Marks on or in connection with all acquired stationery, business cards, purchase orders, agreements of sale, lease agreements, warranties, indemnifications, invoices and other similar correspondence and other documents of a contractual nature, (ii) as promptly as practicable after the Closing Date, and in any event no later than one hundred and twenty (120) days after the Closing Date, complete the removal of any Baker Hughes Name and Baker Hughes Marks from all acquired product, service and technical information promotional brochures, and (iii) with respect to any other Business Assets bearing any Baker Hughes Name and Baker Hughes Marks, use their commercially reasonable efforts to re-label such assets or remove such Baker Hughes Name and Baker Hughes Marks from such assets as promptly as practicable, and in any event no later than nine (9) months after 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) Cactus, for itself and its Affiliates, agrees that after the Closing Date, Cactus and its Affiliates, and Cactus shall provide that the Company Group (i) shall not expressly, or by implication, do business as or represent themselves as Baker Hughes or its Affiliates, and (ii) shall reasonably cooperate with Baker Hughes or any of its Affiliates in terminating any contracts (or portion thereof) pursuant to which Baker Hughes licenses any Baker Hughes Name and Baker Hughes Marks to customers or distributors 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) Cactus, for itself and its Affiliates, and on behalf of each member of the Company Group, acknowledges and agrees that, except to the extent expressly provided in the Transaction Documents, neither Cactus nor any of its Affiliates nor any member of the Company Group shall have any rights in any Baker Hughes Name and Baker Hughes Marks and neither Cactus nor any of its Affiliates nor any member of the Company Group, shall contest the ownership or validity of any rights of Baker Hughes or any of its Affiliates in or to any Baker Hughes Name and Baker Hughes Marks.

Section 8.2 <u>Licenses of Company Marks</u>. The Company may, in its discretion, authorize Baker Hughes or Cactus or their respective Affiliates to use Trademarks owned by the Company during the term of the Joint Venture (collectively, the "<u>Company Marks</u>") in connection with the Joint Venture. As a condition to providing such authorization, the Company may require Baker Hughes or Cactus or their respective Affiliates to enter into a written trademark agreement governing, with reasonable terms, the terms of use of such Company Marks, but in the absence of any such separate agreement, the Company hereby grants Baker Hughes, Cactus and their respective Affiliates a limited, royalty-free, non-exclusive, non-transferable, non-sublicensable license to use, display and reproduce such Company Marks (as authorized under this <u>Section 8.2</u>) in the manner and for the purposes authorized by the Company. All such use of the Company Marks shall be consistent with such standards, specifications and requirements as may be specified by the Company from time to time including all standards, specifications and requirements from time to time.

Section 8.3 <u>Combination Marks</u>. In the event that the Parties wish to combine two or more Trademarks owned by different Parties to create a new Trademark which embodies elements of each separate Trademark in a manner that creates a single unified commercial impression (a "<u>Combination Mark</u>"), such Parties shall enter into a separate written agreement governing the ownership, use, quality control and other terms applicable to such Combination Mark; *provided*, that, in the event that any Combination Mark is created with the authorization of each Party owning any constituent Trademark in the absence of any such agreement, then (a) such Combination Mark shall be jointly owned by the respective owners of the constituent Trademarks, (b) no co-owner shall have the right to use, grant licenses in or otherwise exploit or transfer rights in such Combination Mark without the agreement of each other co-owner, and (c) upon termination of the Joint Venture, the Parties shall cease all use of, and abandon, such Combination Mark unless all co-owners of such Combination Mark otherwise agree in writing.

Section 8.4 <u>Exclusive Obligations</u>. For the avoidance of doubt, the non-exclusive nature of the licenses granted under this <u>ARTICLE VIII</u> shall not abrogate any covenants, commitments or other obligations with respect to exclusivity undertaken by any Party in this Agreement or any other Transaction Document.

Section 8.5 <u>Survival</u>. The covenants and agreements furnished by the Parties in this <u>ARTICLE VIII</u> shall commence on the Closing Date and shall continue thereafter, surviving a termination of this Agreement.

ARTICLE IX<u><br> Tax Matters</u>

Section 9.1 <u>Tax Cooperation</u>. Notwithstanding anything to the contrary, each of the Parties shall provide each other with such cooperation and information as any of them reasonably may request of the other in filing any Tax Return, determining a Liability for Taxes or a right to a refund or credit of Taxes or participating in or conducting any audit or other proceeding in respect of Taxes, in each case, relating to any member of the Company Group, the Closing Payment Amount and the Deferred Payment. Baker Hughes, Cactus, and any member of the Company Group shall make themselves (and their respective employees) reasonably available on a mutually convenient basis to provide explanations of any documents or information provided under this <u>Section 9.1</u>. Notwithstanding the foregoing or anything to the contrary in this Agreement, no provision of this Agreement shall be construed to require Baker Hughes or any of its Affiliates (other than members of the Company Group) to provide to any Person, before, on or after the Closing Date, any right to access or to review its Tax Returns, the Tax Returns of any of its Affiliates (other than members of the Company Group), any consolidated, combined, unitary or similar Tax Return of any affiliated group of which Baker Hughes or any Affiliate thereof is or may have been a member, or any consolidated, combined, unitary or similar Tax Return on which the income, loss, or other tax items of Baker Hughes or any Affiliate thereof are reflected (or any tax workpapers relating to the foregoing). Neither Baker Hughes nor Cactus shall be required under this <u>Section 9.1</u> to provide to the other Party (or any member of the Company Group) any information that is privileged if the disclosure of such information is reasonably expected to result in the loss of such privilege.

Section 9.2 <u>Tax Returns</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) Baker Hughes, at its sole cost and expense, shall (i) prepare and timely file, or cause to be prepared and timely filed, all Tax Returns of the members of the Company Group due (after taking into account all appropriate extensions) on or prior to the Closing Date (the "<u>Baker Hughes Prepared Returns</u>"), and (ii) timely pay (or cause each applicable member of the Company Group to timely pay) all Taxes that are shown as payable with respect to the Baker Hughes Prepared Returns. All Baker Hughes Prepared Returns shall be prepared in accordance with existing procedures, practices, and accounting methods of each applicable member of the Company Group unless required otherwise 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;(b) The Company shall prepare and timely file, or cause to be prepared and timely filed, all Tax Returns of each member of the Company Group with respect to any Pre-Closing Tax Period or Straddle Period due on or after the Closing Date (the "<u>Company Prepared Returns</u>"). To the extent that a Company Prepared Return relates solely to a Pre-Closing Tax Period, such Tax Return shall be prepared on a basis consistent with existing procedures and practices and accounting methods of the applicable member of the Company Group, unless required otherwise by applicable Law. Each Company Prepared Return that (y) is an income Tax Return or (z) shows a Baker Hughes Indemnified Tax shall be submitted to Baker Hughes at least thirty (30) days prior to the due date of the Tax Return. The Company shall incorporate any timely and reasonable comments made by Baker Hughes in the final Tax Return prior to filing.

Section 9.3 <u>Tax Apportionment</u>. For all purposes of this Agreement, including the determination of Baker Hughes Indemnified Tax, any Tax Liability with respect to any Straddle Period of a member of the Company Group shall be apportioned between the pre-Closing and post-Closing portions of such Straddle Period based on an interim closing of the books as of the end of the Closing Date, except for any ad valorem property or similar Taxes, which shall be prorated on a daily basis.

Section 9.4 <u>Tax Indemnification</u>. Baker Hughes shall indemnify the Company Group and each Cactus Indemnitee and hold them harmless from and against any Losses arising from or relating to any Baker Hughes Indemnified Tax. Furthermore, to the extent that any obligation or responsibility pursuant to <u>ARTICLE XII</u> may conflict or overlap with an obligation or responsibility pursuant to this <u>ARTICLE IX</u>, the provisions of this <u>ARTICLE IX</u> shall govern.

Section 9.5 <u>Tax Contests</u>. The Company shall notify Baker Hughes of receipt by any member of the Company Group, and provide Baker Hughes with a copy, of any written notice of the commencement of any Tax audit, examination, assessment, litigation or similar proceeding if such audit, examination, assessment, litigation or similar proceeding relates in whole or in part to Baker Hughes Indemnified Taxes ("<u>Tax Contest</u>"); *provided*, that, the failure of the Company to give notice as provided in this <u>Section 9.5</u> shall not relieve Baker Hughes of its obligations under <u>Section 9.4</u>, except in the event and only to the extent that the failure to timely provide such notification materially prejudices the ability of Baker Hughes to contest such Baker Hughes Indemnified Tax or increases the amount of such Baker Hughes Indemnified Tax. Baker Hughes may elect to control all proceedings taken in connection with any Tax Contest (or portion thereof) for Taxes of any member of the Company Group for any Pre-Closing Tax Period. Baker Hughes shall exercise its right to control such portion of such Tax Contest by delivering to the Company written notice of Baker Hughes's election to control such Tax Contest (such notice, the "<u>Control Notice</u>") no later than ten (10) Business Days after receipt of notice of such Tax Contest pursuant to this <u>Section 9.5</u>; *provided*, that (a) Baker Hughes shall keep the Company reasonably informed regarding the progress and substantive aspects of such Tax Contest (b) the Company may retain separate co-counsel at its sole cost and expense and participate in the defense of any such Tax Contest, including having an opportunity to review and reasonably comment on any material written materials prepared in connection with such Tax Contest and the right to attend and participate in any conferences relating thereto, and (c) Baker Hughes will not settle or consent to the entry of any order or other similar determination of finding with respect to such Tax Contest without the prior written consent of the Company, which shall not be unreasonably withheld, conditioned or delayed. If Baker Hughes does not deliver the Control Notice within such ten (10) Business Day period, the Company shall control such Tax Contest and all related proceedings. The Company shall control any Tax Contest (or portion thereof) for Taxes of any member of the Company Group for any Straddle Period. With respect to any Tax Contest for a Pre-Closing Tax Period or Straddle Period controlled by the Company, (x) Baker Hughes, at its sole cost and expense, shall have the right to participate in any such Tax Contest, (y) the Company shall keep Baker Hughes reasonably informed of the status of such Tax Contest, and (z) the Company shall not settle any such Tax Contest without Baker Hughes's prior written consent (not to be unreasonably withheld, conditioned or delayed).

Section 9.6 <u>Mexican VAT Claim and Tax 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) Baker Hughes, at its sole cost and expense, will prepare or cause to be prepared, and will file or cause to be filed, all Tax Returns and other documentation (including amendments thereof) (collectively, the "<u>VAT Claim Forms</u>") required to be filed to obtain a refund of Mexican value-added Taxes collected and paid prior to the effective time of the Closing by one or more members of the Company Group to the Mexican tax authorities and that were not taken into account in the Post-Closing Statement (the "<u>Mexican VAT Claim</u>"). Baker Hughes, at its sole cost and expense, shall control any proceedings with respect to the Mexican VAT Claim and shall have the right, with respect to any such VAT Claim Forms, to determine: (i) the manner in which such VAT Claim Forms will be prepared and filed, including the method of accounting, positions, conventions, and principles of taxation to be used; (ii) whether any extensions may be requested; (iii) whether any amended VAT Claim Forms will be filed; and (iv) whether to retain, at Baker Hughes' sole cost and expense, outside firms to prepare or review such VAT Claim Forms. Pursuant to <u>Section 9.1</u>, Cactus shall cause the Company and any applicable member of the Company Group to cooperate with Baker Hughes in connection with the Mexican VAT Claim and preparing and filing any VAT Claim Forms, including providing access to relevant Contracts and Records related to the Mexican VAT Claim and applicable employees of the Business with respect to the Mexican VAT 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) Baker Hughes shall be entitled to any refund (or a direct credit in lieu of a refund) of Baker Hughes Indemnified Taxes (including, for the avoidance of doubt, (i) any such refund or credit attributable to an overpayment of Tax shown on any originally filed Tax Return in respect of any Pre-Closing Tax Period or any pre-Closing portion of any Straddle Period that is originally filed after the Closing and (ii) the Mexican VAT Claim, but excluding, for the avoidance of doubt, any such refund or credit (1) attributable to a carryback of any losses, credits or other Tax attributes from any period (or portion thereof) beginning after the Closing Date, (2) attributable to any losses, credits or other Tax attributes relating to Cactus or its Affiliates (other than members of the Company Group), (3) required to be paid over to any other Person under any Contract to which a member of the Company Group is a party as of the Closing, or (4) to the extent taken into account in the Post-Closing Statement), including any related interest received from the applicable Governmental Authority, of any member of the Company Group that is received by the Company or any other member of the Company Group after the Closing. Any amount required to be paid to Baker Hughes pursuant to this <u>Section 9.6(b)</u> shall be paid over to Baker Hughes (y) in the case of a refund actually received, no more than twenty (20) Business Days after receiving such refund and (z) in the case of a credit, no more than twenty (20) Business Days after the filing of a Tax Return (including any amendments thereof) utilizing such credit to offset cash Taxes otherwise payable; *provided*, that (A) the amount payable shall be net of any reasonable out-of-pocket costs or expenses incurred, without duplication, by the Company and any other member of the Company Group in obtaining such refund and any Taxes imposed on the receipt of such refund, and (B) to the extent such refund is subsequently disallowed or required to be returned to the applicable Governmental Authority, Baker Hughes shall promptly repay to the Company the amount of such refund, together with any interest, penalties or additions to Tax imposed by such Governmental Authority.

Section 9.7 <u>Post-Closing Actions</u>. Notwithstanding anything to the contrary, without the prior written consent of Baker Hughes (not to be unreasonably withheld, conditioned or delayed), the Company shall not, and shall cause its Affiliates (including its Subsidiaries) not to: (a) take any actions outside the Ordinary Course on the Closing Date after the Closing; (b) make, change or revoke any tax election with respect to any member of the Company Group that has retroactive effect to a Pre-Closing Tax Period or pre-Closing portion of any Straddle Period that will, or is reasonably like to, give rise to an indemnification obligation of Baker Hughes pursuant to this Agreement; (c) amend any Tax Return with respect to any member of the Company Group for a Pre-Closing Tax Period except as required by applicable Law, file any new Tax Return of any member of the Company Group in a jurisdiction within which it has not previously filed Tax Returns if such Tax Return would have been first due before the Closing Date; (d) initiate discussions or examinations with Governmental Authorities regarding Taxes of the Company Group with respect to any Pre-Closing Tax Period; (e) make any voluntary disclosures with respect to Taxes of the Company Group for Pre-Closing Tax Periods; or (f) waive or extend the period applicable to any claim or assessment of Taxes or Tax Returns of any member of the Company Group (or any of its Subsidiaries) for any Pre-Closing Tax Period or pre-Closing portion of any Straddle Period, in each case, if such action would reasonably be expected to give rise to or increase Baker Hughes Indemnified Taxes.

Section 9.8 <u>Tax Payments</u>. Except as otherwise provided herein, all payments made pursuant to this <u>ARTICLE IX</u> shall be deemed adjustments to the Closing Payment Amount for U.S. federal income Tax purposes, unless otherwise required by applicable Law.

Section 9.9 <u>Transfer Taxes</u>. Notwithstanding anything to the contrary in this Agreement and subject to the last sentence of this <u>Section 9.9</u>, (a) Baker Hughes shall economically bear, and be responsible for, any and all applicable Baker Hughes Transfer Taxes and (b) each of Baker Hughes and Cactus shall economically bear, and be responsible for, fifty percent (50%) of any and all other applicable Transfer Taxes that may be imposed or assessed in connection with or as a result of the transactions contemplated by this Agreement that are not Baker Hughes Transfer Taxes. The Party responsible under applicable Law for filing the Tax Returns with respect to such Baker Hughes Transfer Taxes and other Transfer Taxes shall prepare and timely file such Tax Returns and promptly provide a copy of such Tax Return to the other Party. Each of the Parties shall, and shall cause their respective Affiliates to, cooperate to timely prepare and file any Tax Returns or other filings relating to such Baker Hughes Transfer Taxes and other Transfer Taxes, including any claim for exemption or exclusion from the application or imposition of any such Taxes. Upon the reasonable written request of Baker Hughes, Cactus (and any of its applicable Affiliates and the Company or any member of the Company Group after the Closing) shall provide reasonable cooperation to Baker Hughes in connection with mitigating any applicable Baker Hughes Transfer Taxes, and furthermore, each Party shall take all commercially reasonable steps to minimize any other Transfer Taxes with respect to this <u>Section 9.9</u>.

Section 9.10 <u>Survival</u>. Notwithstanding anything in this Agreement to the contrary, the provisions of <u>Section 4.19</u> and this <u>ARTICLE IX</u> shall survive for the full period of all applicable statute of limitations (giving effect to any waiver, mitigation or extension thereof) *plus* sixty (60) days.

ARTICLE X <u><br> Employee Matters</u>

Section 10.1 <u>Employee Representative Bodies, Works Councils, Unions, Labor Boards and Relevant Governmental Authorities</u>. Baker Hughes and its Affiliates shall comply with their respective obligations to notify and consult with the relevant employee representative bodies, works councils, unions and labor boards that represent any Business Employee in connection with the transactions contemplated by this Agreement, in accordance with applicable Law. The Parties agree to work together in good faith to inform, negotiate and/or consult with, or obtain the formal advice of, any such employee representative bodies, works councils, unions or labor boards as may be required or reasonably necessary to consummate the transactions contemplated by this Agreement, the other Transaction Documents and the Reorganization Plan.

Section 10.2 <u>Employment with Company</u>. Subject to and in accordance with Law, the Company shall, or shall cause its Subsidiaries to, continue the employment effective immediately after the Closing Date of all Business Employees (including those on Leave) who immediately prior to the Closing, are directly employed by a member of the Company Group. For the avoidance of doubt, the provisions and protections of this Agreement referring to employment by a member of the Company Group shall apply equally to any Continuing Service Provider (as applicable) employed by Cactus or a third-party work agency of any kind, and regardless of whether such employment occurs pursuant to an automatic transfer, Qualifying Offer and subsequent acceptance, deferred transfer, transfer following the expiration of an applicable GESA Employee Term, or secondment agreement or other similar arrangement.

&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) <u>GESA Employees</u>. The GESA Employees shall remain or become employed by Baker Hughes or an Affiliate other than a member of the Company Group but will be supplied to the applicable member of the Company Group pursuant to the Global Employee Services Agreement. Upon and following the transfer of any GESA Employees to the employ of members of the Company Group, such GESA Employees shall be treated as Continuing Service Providers for all purposes 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) <u>Secondment of Certain Continuing Service Providers</u>. Pursuant to the Cactus Group Employee Services Agreement, certain Business Employees who are Continuing Service Providers will be employed by Cactus or its Affiliate and provide services to the Company for the period of time specified therein following Closing. For the avoidance of doubt, a U.S. Business Employee may be covered by the agreement only if such employee is: (i) working in the U.S.; and (ii) paid through U.S. payroll.

&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) <u>Third-Party Employers</u>. For any country where a third-party employer of record, professional employer organization, or other similar employment arrangement is determined to be the applicable employment vehicle, Cactus or the applicable member of the Company Group shall wholly be responsible for selecting, engaging, and compensating such third-party employer on behalf of the Company or the relevant member of the Company Group. Cactus shall take reasonable steps to ensure such employer complies with any provisions applicable to Cactus or the Company Group under this Agreement.

Section 10.3 <u>Business Service Provider Schedule</u>. Baker Hughes shall promptly update the applicable Business Service Provider Schedule from time to time prior to the Closing to ensure their continuing accuracy.

Section 10.4 <u>Transfer of Business 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;(a) <u>Qualifying Offers to Business Employees</u>. In the event the employment of a Business Employee does not automatically transfer to a member of the Company Group upon the Closing by operation of applicable Law, members of the Company Group shall make Qualifying Offers to each such Business Employee (each, an "<u>Offered Business Employee</u>") at the times specified herein. Each such Offered Business Employee who accepts such an offer of employment and reports to active employment with the applicable member of the Company Group shall become an employee of the member of the Company Group following the Closing at the time specified in his or her Qualifying Offer and as specified on the updated applicable Business Service Provider Schedule. The Company will, or will cause its Subsidiary to, make a Qualifying Offer to each Offered Business Employee, (i) no later than forty-five (45) days prior to the Closing Date, and effective as of the Closing, with respect to each Offered Business Employee who provides services immediately prior to the Closing in a jurisdiction where the applicable member of the Company Group has infrastructure sufficient for the member of the Company Group to employ such Offered Business Employee as of the Closing, and (ii) no later than forty-five (45) days prior to the end of the applicable GESA Employee Term, and effective as of the expiration of such GESA Employee Term, with respect to each Offered Business Employee who provides services immediately prior to the Closing in a jurisdiction where the applicable member of the Company Group does not have infrastructure sufficient for the member of the Company Group to employ such Offered Business Employee as of the Closing (each Offered Business Employee in any such jurisdiction, a "<u>GESA Employee</u>"). Each such offer of employment, and the commencement of employment by such Offered Business Employee with a member of the Company Group shall be contingent upon the Offered Business Employee's having a valid work permit or visa under which the Offered Business Employee may legally work for the applicable member of the Company Group. In the case of an Offered Business Employee who is an Inactive Business Employee, subject to any applicable legal requirement, and without limiting the immediately preceding sentence, the Inactive Business Employee will become an employee of the applicable member of the Company Group, if at all, on or as of the date such Inactive Business Employee returns to active employment, *provided*, that the Inactive Business Employee returns to active employment within the time required under the original terms and conditions applicable to the Leave, and in any event no later than six (6) months after the Closing (or such later time as required by applicable Law, the terms of any applicable Labor Agreement, or any other written agreement between the Parties).

&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) <u>Pre-Hire Screening Processes</u>. Baker Hughes shall provide a summary of its customary pre-hire screening processes (including, where applicable, any background-, drug-, or alcohol screenings) and confirm that each Offered Business Employee satisfied such processes on the Offered Business Employee's most recent date of hire with Baker Hughes. Such disclosure shall be in lieu of any customary pre-hire screening processes required for employment by Cactus or the applicable member of the Company Group.

Section 10.5 <u>Inactive Business Employees</u>. Notwithstanding the foregoing or anything in this Agreement to the contrary, any Business Employee who is on a leave of absence and has a right of re-instatement per the policy of Baker Hughes or its applicable Affiliate (including long-term or short-term disability leave, FMLA leave and parental leave or similar leave, but excluding vacation or sick leave, jury duty leave, bereavement leave or similar leave), as of the Closing Date shall, to the extent allowable under Law, remain with Baker Hughes or one of its Affiliates (other than a member of the Company Group), as applicable, and shall not become a Continuing Service Provider, in either case, unless such employee is able to (and does) return to work no later than six (6) months after the Closing Date or other applicable return to work date permitted under Law. The employee shall become a Continuing Service Provider following their return from absence. In the case of an Inactive Business Employee who accepts a Qualifying Offer and timely reports to work in accordance with the terms of this <u>ARTICLE X</u>, the Company shall reimburse Baker Hughes promptly for any costs incurred by Baker Hughes on or after the Closing Date and prior to the earlier of (a) such Inactive Business Employee's applicable transfer date, and (b) the date on which such Inactive Business Employee's employment with Baker Hughes and its Affiliates (other than the Company and its Subsidiaries) terminates, but only to the extent the Company or its Subsidiaries would have been responsible for such costs had such Inactive Business Employee been employed by the Company or its Subsidiaries on such date. Upon receiving notice of the pending return to work of any such Business Employee, Baker Hughes will notify the Company and the Company will, subject to and in accordance with Law (or will cause its Subsidiaries to), no later than five (5) days after receiving such notice, make a Qualifying Offer to such natural Person.

Section 10.6 <u>Terms of Qualifying Offer</u>. Subject to and in accordance with Law, a Qualifying Offer shall include the following terms for the period commencing on the Closing Date, or if later, commencing on the date of the Continuing Service Provider's transfer of employment to a member of the Company Group, and ending on the first anniversary 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;(a) the Company will (or will cause its Subsidiaries to) provide each Continuing Service Provider with no less than substantially the same base salary or base rate of wages as was provided to such Continuing Service Provider immediately prior to 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;(b) the Company will (or will cause its Subsidiaries to) provide each Continuing Service Provider with no less than substantially the same grant date target value cash long-term incentive compensation opportunities and grant date target value cash short-term incentive opportunities as were provided to such Continuing Service Provider immediately prior to the Closing Date, with such opportunities: (i) subject to substantially the same service-based vesting schedules and other payment restrictions as applied under the applicable award opportunities provided to such Continuing Service Provider immediately prior to the Closing Date; and (ii) pro-rated based on post-Closing service during the applicable performance period.

Section 10.7 <u>Baker Hughes 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) Baker Hughes shall, or shall cause its Affiliates (other than members of the Company Group) to, comply with the terms of all applicable Baker Hughes short-term incentive compensation, long-term incentive compensation, and any retention incentives or change of control benefits policies or agreements, which material terms are set forth on <u>Schedule 10.7(a)</u>, with respect to any Continuing Service Provider.

&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) Baker Hughes shall, or shall cause its Affiliates (other than members of the Company Group) to, take such actions as are necessary to permit Continuing Service Providers and GESA Employees to repay their loans outstanding under the Baker Hughes Company Section 401(k) Plan on a coupon basis or similar basis following the Closing so that such loans will not automatically default upon 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;(c) Subject to the terms and conditions of the Baker Hughes Benefit Plan from time to time in force, Baker Hughes shall, or shall cause its Affiliates (other than members of the Company Group) to take such actions as are necessary so that any Business Employees who are receiving long-term disability benefits under any Baker Hughes Benefit Plan immediately prior to the Closing Date may continue to be eligible to receive long-term disability benefits under such Baker Hughes Benefit Plan in accordance with its terms (as such terms may be amended from time to time) following the Closing Date even though the members of the Company Group will not be adopting employers with respect to the Baker Hughes Benefit Plan following the Closing Date. Baker Hughes shall, or shall cause its Affiliates (other than members of the Company Group) to take such actions as are reasonably necessary so that any Business Employees who are receiving short-term disability benefits under any Baker Hughes Benefit Plan immediately prior to the Closing Date and who continue to be disabled for the period of time required under any Baker Hughes Benefit Plan providing long-term disability benefits, may be eligible to receive long-term disability benefits under such Baker Hughes Benefit Plan in accordance with its terms (as such terms may be amended from time to time) following the Closing Date, even though the members of the Company Group will not be adopting employers with respect to the Baker Hughes Benefit Plan 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;(d) To the extent permitted under applicable Law, Baker Hughes shall, on request by Cactus and at Baker Hughes's reasonable expense, provide to Cactus such information or documents as Cactus may reasonably require relating to the remuneration, bonus, pension and insurance arrangements, health benefits, welfare or any other matter concerning the terms and conditions of employment of any of the Business Service Providers in the period before the Closing Date. Further, Baker Hughes shall promptly deliver or cause to be delivered to Cactus or the members of the Company Group all such documents, instruments, papers, books and records, books of account, files and data necessary for the Company to comply with the covenants in <u>Section 10.6</u> and <u>Section 10.8</u>.

Section 10.8 <u>Other Company 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) If, at any time during the one-year period beginning on the Closing Date, the Company or other member of the Company Group terminates the employment or services of any Continuing Service Provider without cause (as determined by the applicable member of the Company Group in its sole discretion), the Company shall, subject to and in accordance with applicable Law, provide or cause to be provided to such Business Service Provider severance payments and severance benefits substantially the same (net of statutory payments) in the aggregate to the greater of the amount of the severance payments and severance benefits that (i) would have been provided to such Continuing Service Provider under the applicable Baker Hughes Benefit Plan in which such Continuing Service Provider participated as of immediately prior to the Closing Date (taking into account service rendered by such Continuing Service Provider for the Company and its Subsidiaries from the Closing Date and any changes in compensation implemented following the Closing Date), or (ii) would be provided to similarly situated Continuing Service Provider at 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) For purposes of eligibility to participate, vesting and determination of level of paid time off benefits under any Statutory Indemnity Obligation, the Company shall, or shall procure that the relevant member of the Company Group shall, subject to and in accordance with Law, grant service credit to each Continuing Service Provider to the same extent that service was credited under the applicable Baker Hughes Benefit Plan of the same type in which such Continuing Service Provider participated as of immediately prior to the Closing Date, *provided*, *however*, that such service will not be recognized to the extent that such recognition would result in a duplication of benefits.

&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) Commencing as of the Closing Date, and for a period of at least one (1) year thereafter or such longer period as may be required under applicable Laws, while the Continuing Service Provider remains employed by a member of the Company Group, the Company will, in place of benefits which prior to the Closing Date were provided to the Continuing Service Provider under the Baker Hughes Benefit Plans, provide, or will cause another member of the Company Group, to provide each Continuing Service Provider with a package of employee benefits (including incentive bonuses, commissions and/or other incentive opportunities) that are substantially comparable in the aggregate to the benefits provided to the Continuing Service Providers immediately prior to the Closing under the Baker Hughes Benefit Plans. For purposes of determining the value of benefits for purposes of this <u>Section 10.8(c)</u>, only cash-based benefits or other full-value awards whose value can be readily and reasonably calculated immediately prior to the Closing Date shall be taken into consideration, long-term and short-term incentive benefits shall be determined at their target grant date values, and shall be pro-rated for service less than an entire performance period, and, for the avoidance of doubt (but not by way of limitation) the following shall be disregarded: (i) change in control benefits, (ii) severance benefits and other welfare benefits, (iii) retention benefits, (iv) defined benefit pension plan benefits, (v) retirement plan benefits (other than predetermined employer-contributions under defined contribution retirement plan benefits), (vi) post-termination of employment benefits such as retiree medical, retiree life insurance and similar benefits, and (vii) employee stock purchase plan benefits and other equity-based compensation.

&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) The Company or other member of the Company Group shall assume liability for the Continuing Service Providers' accrued, unpaid vacation or paid time off, which obligations shall be treated as a current liability for purposes of calculating Closing 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;(e) For the avoidance of doubt, the Company's obligations under <u>Section 10.6</u> and this <u>Section 10.8</u> are contingent upon Baker Hughes' timely provision of information pursuant to <u>Section 10.7(c)</u> necessary for the Company to comply with the applicable covenants.

Section 10.9 <u>Automatically Transferring Business 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;(a) The parties confirm that it is their intention that the transactions contemplated by this Agreement shall constitute a relevant transfer for the purposes of the Regulations such that the Contracts of employment of the Automatically Transferring Business Employees in jurisdictions in which the Regulations apply (including any rights, powers, duties and liabilities under or in connection with their Contracts) shall, to the extent required by the Regulations, transfer by operation of applicable Law to the Company or its Subsidiaries with effect from such employee's applicable transfer 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) Without limiting <u>Section 10.7(c)</u>, to the extent necessary to satisfy any applicable information and consultation obligations under the Regulations, Baker Hughes shall, and shall cause any of its Affiliates to, on request, provide to the Company or its applicable Subsidiary such information or documents as it may reasonably require relating to the terms of employment, pension and life assurance arrangements, health benefits, welfare or any other matter concerning any of the Automatically Transferring Business Employees or any trade union, employee representative or body of employees or their representatives or relating to collective agreements or collective or individual grievances in the period before the applicable transfer 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) If any Contract of employment (including any rights, powers, duties and liabilities under or in connection with that Contract) of any natural Person who was intended to be an Automatically Transferring Business Employee is found or alleged to continue with Baker Hughes or its respective Affiliates, as applicable, after such natural Person's intended transfer date (a "<u>Non-Transferring Business Employee</u>"), the parties agree that: (i) the Company or its Subsidiaries shall, subject to and in accordance with applicable Law, no later than fourteen (14) days of discovering such a finding or allegation make to any Non-Transferring Business Employee a Qualifying Offer under a new Contract of employment to take effect upon the termination referred to below; (ii) such offer of employment will satisfy the obligations set forth in <u>Section 10.6</u> except as otherwise provided in this <u>Section 10.9</u>; and (iii) upon that offer being made by the Company or its Subsidiaries, or on the expiry of the 14-day period from the date of discovery of such a finding or allegation, Baker Hughes or its respective Affiliates, as applicable, will terminate the employment of such Non-Transferring Business Employee. The Company will indemnify Baker Hughes against any losses of any kind suffered or incurred by Baker Hughes and its Affiliates as a direct or indirect result of the employment of such Non-Transferring Business Employee by Baker Hughes or its respective Affiliates after their intended transfer date and/or termination of employment of that Non-Transferring 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;(d) If any Contract of employment (including any rights, powers, duties and liabilities under or in connection with that Contract) of any natural Person who is not listed as a Business Employee is found or alleged to transfer to the Company or its Subsidiaries on or after the Closing Date (unless such Person was employed by a Subject Entity and was inadvertently left off of the Business Employee Schedule) (an "<u>Undisclosed Employee</u>"), the parties agree that: (i) Baker Hughes or its Affiliate that employed such Business Employee shall no later than fourteen (14) days of discovering such a finding or allegation make to that Undisclosed Employee an offer in writing to employ him or her under a new Contract of employment to take effect upon the termination referred to below; (ii) upon that offer being made by such party, or on the expiry of the 14-day period from the date of discovery of such a finding or allegation, the Company or its Subsidiaries will terminate the employment of such Undisclosed Employee; and (iii) Baker Hughes will indemnify the Company against any losses of any kind suffered or incurred by the Company and its Subsidiaries as a direct or indirect result of the employment or termination of employment of that Undisclosed Employee.

Section 10.10 <u>Other Agreements</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) <u>Employee Communications</u>. The Parties shall reasonably cooperate in preparing the content of and communicating with Business Employees with respect to Baker Hughes Benefit Plans and other matters arising in connection with 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) <u>Cessation of Participation in Baker Hughes Benefit Plans</u>. For the avoidance of doubt, no Continuing Service Provider will participate in any Baker Hughes Benefit Plan following the Closing. Effective as of and contingent upon the Closing, Baker Hughes shall cause the members of the Company Group to cease participation as adopting employers of all Baker Hughes Benefit Plans covering Business Service Providers. Notwithstanding the foregoing, GESA Employees shall continue to participate in the applicable Baker Hughes Benefit Plans following the Closing until the earlier of: (i) the date on which the GESA Employee becomes a Continuing Service Provider; or (ii) the expiration date of the applicable GESA Employee Term. For the avoidance of doubt, nothing in this <u>Section 10.10(b)</u> shall be construed as eliminating any benefits or rights that are vested as of the Closing or protected under Section 411(d)(6) 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;(c) <u>Workers' Compensation Benefits</u>. Claims for workers' compensation benefits arising out of occurrences prior to the Closing Date (or the Deferred Closing in the case of a Deferred Business Employee) shall be the responsibility of Baker Hughes or its Affiliates other than members of the Company Group. Notwithstanding the foregoing, any workers' compensation related costs incurred by Baker Hughes or its Affiliates with respect to any Continuing Service Provider shall be subject to reimbursement by the applicable member of the Company Group.

Section 10.11 <u>No Third Party Beneficiaries, Etc</u>. Without limiting the generality of <u>Section 14.8</u>, nothing in this <u>ARTICLE X</u>, express or implied, is intended to or shall (a) confer upon any Person other than the Parties, including any current or former Business Employee or legal representative or beneficiary thereof, any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, including any third party beneficiary rights, or any right to employment or continued employment or any term or condition of employment, (b) establish, or constitute an amendment, termination or modification of, or an undertaking to amend, establish, terminate or modify, any Benefit Plan, shall alter or limit the ability of Baker Hughes, the Company, any Subject Entity or any respective Affiliates from amending, modifying or terminating any Benefit Plan at any time following the Closing Date, or (c) create any obligation on the part of Baker Hughes, the Company, or any of their respective Affiliates to employ any Business Employee for any period following the Closing Date or shall limit the ability of Baker Hughes, the Company, or any of their respective Affiliates to terminate the employment of any employee (including any Business Employee) following the Closing Date at any time and for any or no reason.

ARTICLE XI<u><br> Closing Conditions</u>

Section 11.1 <u>Conditions to Obligations of Baker Hughes, Cactus and the Company</u>. The obligations of the Parties to consummate the Closing are subject to the satisfaction of the following conditions:

&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 applicable waiting period under the Competition Laws set forth in <u>Exhibit J</u> relating to the transactions contemplated hereby shall have expired or been terminated and all regulatory clearances under such Competition Laws shall have been 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;(b) No applicable Law or Order of any Governmental Authority shall be in effect prohibiting the consummation of the Closing.

Section 11.2 <u>Conditions to Obligation of Cactus</u>. The obligation of Cactus to consummate the Closing is subject to the satisfaction (or waiver by Cactus) of the following further conditions:

&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) Baker Hughes and the Company shall have complied with or performed all of its obligations hereunder required to be complied with or performed by them on or prior to the Closing Date except to the extent that failure to so comply or perform does not, taken as a whole, constitute a material breach of any term or provision 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;(b) (i) the Baker Hughes Fundamental Representations shall be true and correct in all respects, except for *de minimis* inaccuracies, and (ii) each of the other warranties set forth in <u>ARTICLE IV</u> of this Agreement shall be true and correct in all respects (without giving effect to any limitation as to "materiality" or "Material Adverse Effect" or similar qualification therein (other than <u>Section 4.10(b)</u>)), in the case of (i) and (ii), on the date of this Agreement and at and as of the time immediately preceding Closing but after giving effect to the Restructuring Transactions (except for warranties made as of any other specified date, which warranties shall be true and correct as of such other specified date), except, in the case of (ii), where the failure to be 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;(c) Since the date of this Agreement, there has not occurred any 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;(d) Cactus shall have received a certificate signed by a duly authorized officer of Baker Hughes to the effect that the conditions set forth in <u>Section 11.2(a)</u>, <u>Section 11.2(b)</u> and <u>Section 11.2(c)</u> have been satisfied;

&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) (i) Baker Hughes shall have delivered to Cactus the Audited Financial Statements in accordance with <u>Section 6.4</u>, and (ii) such Audited Financial Statements shall not differ from the Unaudited Financial Statements in a manner that is material to the intrinsic value (determined in a manner consistent with appropriate valuation methodologies) of the Business in a manner that is adverse (excluding any differences resulting from (x) any matter set forth on <u>Section 4.9(c)</u> of the Disclosure Schedules, and (y) any changes in the amount of goodwill or intangible 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;(f) the Restructuring Transactions shall have been completed in all material respects in accordance with the Reorganization Plan and <u>Section 6.2</u>, except for those parts expressly contemplated in the Reorganization Plan to be effected following the Closing, or otherwise pursuant to <u>Section 3.7</u>, <u>Section 3.8</u> or <u>Section 3.9</u>.

Section 11.3 <u>Conditions to Obligation of Baker Hughes</u>. The obligation of Baker Hughes to consummate the Closing is subject to the satisfaction (or waiver by Baker Hughes) of the following further conditions:

&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) Cactus shall have complied with or performed all of its obligations hereunder required to be complied with or performed by it on or prior to the Closing Date except to the extent that failure to so comply or perform does not, taken as a whole, constitute a material breach of any material term or provision 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;(b) (i) the Cactus Fundamental Representations shall be true and correct in all respects, except for *de minimis* inaccuracies, and (ii) each of the other warranties set forth in <u>ARTICLE V</u> of this Agreement shall be true and correct in all respects, in the case of (i) and (ii), on the date of this Agreement and at and as of the time immediately preceding Closing (except for warranties made as of any other specified date, which warranties shall be true and correct as of such other specified date), except, in the case of (ii), where the failure to be true and correct would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on Cactus's ability to consummate 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) Since the date of the Agreement, there has not occurred any Material Adverse Effect; 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;(d) Baker Hughes shall have received a certificate signed by a duly authorized officer of Cactus to the effect that the conditions set forth in <u>Section 11.3(a)</u>, <u>Section 11.3(b)</u> and <u>Section 11.3(c)</u> have been satisfied.

ARTICLE XII<u><br> Indemnity</u>

Section 12.1 <u>Survival.</u> (a) The representations and warranties furnished by the Parties in <u>ARTICLE IV</u> and <u>ARTICLE V</u>, in each case, other than the Baker Hughes Fundamental Representations, the Cactus Fundamental Representations, shall terminate at, and not survive, the Closing such that no claim or claim of Liability in respect of any such representation or warranty (whether in contract or under any other legal theory and regardless of the type of claim) may be brought by any Party or their respective Affiliates after the Closing, excluding in each case, for Fraud; and (b) the Baker Hughes Fundamental Representations and the Cactus Fundamental Representations shall survive the Closing (and a claim in respect thereof may be made) for a period of three (3) years *provided*, *however*, that in the case of any claims alleging Fraud relating to any such representation or warranty, the statute of limitations period applicable to Fraud shall apply to such claims. The covenants in this Agreement which only require performance prior to the Closing shall, in each case, survive the Closing (and a claim in respect thereof may be made) for a period of six (6) months after the Closing; *provided*, that to the extent any such covenant relates to any Deferred Business, such covenant shall survive the Closing for a period of six (6) months following the Deferred Closing applicable to such Deferred Business. The covenants and agreements in this Agreement which expressly contemplate performance in whole or in part after Closing shall survive the Closing in accordance with their terms or until fully performed in accordance with their terms. Any claims or causes of Action arising out of any such post-Closing covenants or agreements may be pursued by the non-breaching Party for so long as the statute of limitations applicable or contractual obligation specified therein to such claim or cause of Action has not expired. If, at any time prior to the expiration of the applicable survival period, an Indemnified Party delivers to the Indemnifying Party a written notice of an alleged inaccuracy or breach of any Baker Hughes Fundamental Representation or Cactus Fundamental Representation, as applicable, breach of covenant or other matter indemnifiable hereunder, then the claim asserted in such notice shall survive the applicable expiration date pursuant to this <u>Section 12.1</u> until such time as such claim is fully and finally resolved. Nothing in this <u>Section 12.1</u> is intended to, or shall, affect or otherwise limit any claim made or available under the R&W Policy, if applicable.

Section 12.2 <u>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) From and after the Closing, subject to the limitations herein, Cactus shall defend, indemnify and hold harmless each of Baker Hughes and its Affiliates and their respective equityholders, partners, members, directors, managers, officers and employees (collectively, the "<u>Baker Hughes Indemnitees</u>") from and against all Actions, judgments, damages (excluding punitive damages, except, in each case to the extent asserted in an indemnified Third Party Claim), Liabilities, settlements, losses, Taxes, costs and expenses (including reasonable attorneys' fees and disbursements and reasonable amounts paid in connection with any defense and cost of investigation and enforcement of indemnification rights hereunder) (collectively, the "<u>Losses</u>") but shall not include consequential, special, punitive, or exemplary damages, or damages based on a multiple of any type, each of which is arising from or relating to (regardless of whether or not such Losses relate to any Third Party 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any inaccuracy in or breach of any Cactus Fundamental Representations; 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) any breach or non-fulfillment by Cactus (or the Company after the Closing) of any covenant, agreement or obligation made by Cactus (or the Company after the Closing) 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) From and after the Closing, subject to the limitations herein, Baker Hughes shall defend, indemnify and hold harmless each of Cactus, its Affiliates, the members of the Company Group and their respective equityholders, partners, members, directors, managers, officers and employees (collectively, the "<u>Cactus Indemnitees</u>") from and against Losses arising from or relating to (regardless of whether or not such Losses relate to any Third Party 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any inaccuracy in or breach of any Baker Hughes Fundamental Representations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any breach or non-fulfillment by Baker Hughes (or the Company prior to Closing) of any covenant, agreement or obligation made by Baker Hughes (or the Company prior to Closing) in this Agreement; 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) the Excluded Assets or 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;(c) From and after the Closing, subject to the limitations herein, the Company shall defend, indemnify and hold harmless the Baker Hughes Indemnitees from and against Losses to the extent arising from or relating to the Business Assets or Business Liabilities (regardless of whether or not such Losses relate to any Third Party Claim); *provided*, that, for the avoidance of doubt, the Company shall have no obligation under this <u>Section 12.2(c)</u> in respect of Losses incurred by the Baker Hughes Indemnitees, in their capacity as holders of Equity Interests in the Company, for any diminution in value of the Company or of the Equity Interests in the Company held by such Baker Hughes Indemnitees.

Section 12.3 <u>Certain Limitations</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) The maximum aggregate liability of Cactus with respect to indemnifiable Losses that Cactus is required to pay under <u>Section 12.2(a)(i)</u> will not exceed the Cactus Indemnification Cap; *provided*, that the limitations described in this <u>Section 12.3(a)</u> shall not be applicable with respect to any indemnifiable Losses that Cactus is required to pay under <u>Section 12.2(a)(i)</u> with respect to any claim based on Fraud. "<u>Cactus Indemnification Cap</u>" shall mean an amount equal to the Closing Payment Amount.

&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) The maximum aggregate liability of Baker Hughes with respect to indemnifiable Losses that Baker Hughes is required to pay under <u>Section 12.2(b)(i)</u> will not exceed the Baker Hughes Indemnification Cap; *provided*, that the limitations described in this <u>Section 12.3(b)</u> shall not be applicable with respect to any indemnifiable Losses that Baker Hughes is required to pay under <u>Section 12.2(b)(i)</u> with respect to any claim based on Fraud. "<u>Baker Hughes Indemnification Cap</u>" shall mean an amount equal to the Closing Payment Amount.

&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) Notwithstanding any other provision of this <u>ARTICLE XII</u>, if (i) Baker Hughes could be required to make any indemnification payment pursuant to <u>Section 12.2(b)(i)</u>, such Losses shall be satisfied first from the R&W Policy (to the extent such claim for indemnification is covered thereunder) and second from Baker Hughes and (ii) any Losses arising out of the same or substantially similar subject matter, facts or events for which Baker Hughes could be required to make any indemnification payment pursuant to <u>Section 12.2(b)(i)</u> and <u>Section 12.2(b)(iii)</u>, then such Losses shall be satisfied first from the R&W Policy (to the extent such claim for indemnification is covered thereunder) and second from Baker Hughes. For purposes of clarity, Baker Hughes shall bear economic responsibility for the deductible amount, if any, under the R&W Policy for covered claims made pursuant to this <u>Section 12.2(c)</u> if the deductible amount has not been satisfied at the time such covered claim is 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;(d) For purposes of this <u>ARTICLE XII</u>, the determination of a breach of representation or warranty and the calculation of Losses shall be determined without regard to any qualification as to materiality contained in such representation or warranty (including qualifications that use the term "material", "in all material respects," "in any material respect," "Material Adverse Effect", "material adverse effect" or any similar term (other than <u>Section 4.10(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;(e) Each Indemnified Party shall use commercially reasonable efforts (determined without regard to any indemnification rights of such Person hereunder) to mitigate any Losses (only to the extent required by applicable Law) for which such Indemnified Party seeks indemnification. The amount of Losses recoverable by an Indemnified Party under <u>Section 12.2</u> shall be reduced by the amount of any insurance proceeds or other amounts actually received by the Indemnified Parties from Third Parties, less any expenses incurred in obtaining such recovery and the present value of any associated increase in premiums, with respect to the circumstance or event giving rise to such indemnification obligation. No Indemnified Party shall be entitled to recover any Losses related to any matter arising under one provision of this Agreement to the extent that such Indemnified Party has already recovered Losses with respect to such matter pursuant to other provisions 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;(f) Each Party acknowledges that in making its decision to enter into this Agreement and consummate the transactions contemplated by this Agreement, such Party has relied exclusively on its own investigation and on the express representations and warranties of the other Party set forth in this Agreement (in each case as qualified by the Disclosure Schedules hereto) and in the LLC Agreement, and has not relied upon the accuracy or completeness of any other representation or warranty, express or implied, made or provided by the other Party or any other Person. In connection with a Party's investigation of the other Party, such Party has received from or on behalf of the other Party certain estimates, forecasts, plans, and financial projections. Each Party acknowledges that there are uncertainties inherent in attempting to make such estimates, forecasts, plans and financial projections and acknowledge and agree that the other Party make no representation or warranty with respect to such estimates, forecasts, plans and financial projections.

Section 12.4 <u>Defense</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) Promptly after an Indemnified Party receives written notice of, or otherwise discovers the Loss, obligation or facts giving rise to an Action (any such actual or possible Action by a Third Party being referred to as a "<u>Third Party Claim</u>") that has been or may be brought, commenced or asserted by a Third Party against an Indemnified Party and that may, if true, give rise to Losses by an Indemnified Party under <u>Section 12.2(a)</u> or <u>Section 12.2(b)</u>, the Indemnified Party shall promptly deliver to the indemnifying Party ("<u>Indemnifying Party</u>") a written notice stating in reasonable detail the nature and basis of such Third Party Claim and dollar amount (to the extent known) of such claim; *provided*, *however*, that failure to promptly give such written notice shall not relieve the Indemnifying Party of the Indemnifying Party's indemnification obligations unless (and only to the extent that) such failure to so promptly notify results in the forfeiture of rights or defenses otherwise available to the Indemnifying Party with respect to such Third Party Claim. The Indemnifying Party will have the right, upon written notice delivered to the Indemnified Party within thirty (30) days after the Indemnifying Party's receipt of notice of a Third Party Claim from the Indemnified Party, to assume the defense of such Third Party Claim, including the employment of counsel and the payment of the fees and disbursements of such counsel. The Indemnified Party may take any actions reasonably necessary to defend such Third Party Claim prior to the time that it receives a notice from the Indemnifying Party indicating its election to assume such defense. If the Indemnifying Party declines or fails to assume the defense of such Third Party Claim within such thirty (30) day period, then the Indemnified Party may employ counsel to represent or defend it in any such Third Party Claim and shall conduct the defense of settlement of such Third Party Claim. The costs and expenses incurred by the Indemnified Party in connection with such defense or settlement (including reasonable out of pocket professionals' and experts' fees and court or arbitration costs) shall be included in any Losses for which the Indemnified Party is otherwise indemnified hereunder, if it is ultimately determined that the Third Party Claim itself is indemnifiable under <u>Section 12.2</u>. The Indemnifying Party or the Indemnified Party, as the case may be, will at all times use reasonable efforts to keep the Indemnifying Party or Indemnified Party, as the case may be, reasonably apprised of the status of any matter the defense of which it is maintaining, including by providing such party with copies of all material information and correspondence relating to the Third Party Claim reasonably requested by the other party, and to cooperate in good faith with each other with respect to the defense of any such matter.

&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) So long as the Indemnified Party or the Indemnifying Party, as the case may be, is conducting the defense of the Third Party Claim, the Indemnified Party or the Indemnifying Party, as the case may be, may retain separate co-counsel to participate in the defense of such Third Party Claim at its sole cost and expense and will have the right to receive copies of all notices, pleadings or similar submissions regarding such defense. The Indemnified Party will not consent to the entry of any judgment or enter into any settlement with respect to the claim without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed) and any insurer participating in the defense thereof. The Indemnifying Party will not consent to the entry of any judgment or enter into any settlement with respect to the claim without the prior written consent of the Indemnified Party and any insurer participating in the defense thereof; *provided*, *however*, that no consent of the Indemnified Party is required if (A) there is no finding or admission of any violation of legal requirements by the Indemnified Party or violation of the rights of any person by the Indemnified Party; (B) the sole relief provided is monetary damages that are paid in full by the Indemnifying Party; and (C) the Indemnified Party is unconditionally released from all liabilities and obligations in connection with such 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) Notwithstanding any provision of this Agreement to the contrary, the Indemnifying Party shall not be entitled to assume (or continue) the defense of a claim if: (i) such claim involves criminal liability or may reasonably result in criminal proceedings or any other action before any Governmental Authority or (ii) settlement of, or an adverse judgment with respect to, the Third Party Claim is reasonably likely to establish a precedential custom or practice materially adverse to the continuing business interests or the reputation of the Indemnified Party; or (iii) if the Indemnifying Party failed or is failing to diligently prosecute or defend such claim, in which event the Indemnified Party may assume the defense with 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;(d) If an Indemnified Party has or claims to have incurred, paid, accrued, reserved or suffered, or believes in good faith that it may incur, pay, accrue, reserve or suffer, Losses for which it is or may be entitled to be held harmless, indemnified, compensated or reimbursed under <u>Section 12.2</u>, and such Loss does not result from a Third Party Claim (a "<u>Direct Claim</u>"), the Indemnified Party shall give the Indemnifying Party prompt written notice thereof. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of the Indemnifying Party's indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall (i) describe the Direct Claim in reasonable detail (to the extent known), (ii) include copies of all material written evidence thereof to the extent then available, (iii) if reasonably practicable, contain a good faith, non-binding, preliminary estimate of the Loss that has been or may be sustained by the Indemnified Party (the "<u>Claimed Amount</u>"), and (iv) the basis of indemnity for such Direct Claim. The Indemnifying Party shall have thirty (30) days (the "<u>Dispute Period</u>") after its receipt of such notice to respond in writing to such Direct Claim (the "<u>Response Notice</u>"), in which the Indemnifying Party: (A) agrees that the full Claimed Amount is owed to the Indemnified Party, (B) agrees that part, but not all, of the Claimed Amount is owed to the Indemnified Party, or (C) indicates that no part of the Claimed Amount is owed to the Indemnified Party. If the Response Notice is delivered in accordance with clause (B) or clause (C) of the preceding sentence, the Response Notice shall also contain a brief description of the basis supporting the claim, to the extent reasonably available or known, by the Indemnifying Party that only a portion or no part of the Claimed Amount is owed to the Indemnified Party, as the case may be. Any part of the Claimed Amount that is not agreed to be owed to the Indemnified Party pursuant to the Response Notice (or the entire Claimed Amount, if the Indemnified Party asserts in the Response Notice that no part of the Claimed Amount is owed to the Indemnified Party) is referred to as the "<u>Contested Amount</u>" (it being understood that the Contested Amount shall be modified from time to time to reflect any good faith modifications to the Claimed Amount by the Indemnified Party). If a Response Notice is not received by the Indemnified Party before the expiration of the Dispute Period, then the Indemnifying Party shall be conclusively deemed to have agreed that the full Claimed Amount is owed to the Indemnified 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) Any indemnification of an Indemnified Party payable by Indemnifying Party in accordance with the terms and conditions of this <u>ARTICLE XII</u> will be satisfied by wire transfer of immediately available funds from the applicable Indemnifying Party to an account(s) designated in writing by the applicable Indemnified 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) Any indemnity provided hereunder by an Indemnifying Party shall be applied so as to avoid any double counting and no Indemnified Party shall be entitled to obtain indemnification more than once for the same matter or Losses.

Section 12.5 <u>Remedies</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) Each Party acknowledges and agrees that the other Party may be damaged irreparably if this Agreement is not performed in accordance with its terms or otherwise is breached and that monetary damages alone may not be an adequate remedy and that a Party (in addition to all other remedies it may have) will be entitled to seek equitable relief as contemplated by <u>Section 14.12</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) The indemnification provisions of <u>Section 6.4(d)</u>, <u>Section 7.4</u>, <u>Section 7.10(b)</u>, <u>Section 9.4</u>, <u>Section 10.9(d)</u> and this <u>ARTICLE XII</u> shall be the sole and exclusive remedy of an Indemnified Party for any monetary or compensatory damages or losses resulting from any breach of this Agreement and each Indemnified Party expressly waives and relinquishes any and all rights, claims or remedies such Person may have with respect to the foregoing other than under <u>Section 6.4(d)</u>, <u>Section 7.4</u>, <u>Section 7.10(b)</u>, <u>Section 9.4</u>, <u>Section 10.9(d)</u> and this <u>ARTICLE XII</u> against any Indemnifying Party.

ARTICLE XIII<u><br> Termination</u>

Section 13.1 <u>Termination</u>. This Agreement may be terminated by notice at any time before the Closing only 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) by the mutual written consent of the Parties; 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) by either Baker Hughes or Cactus if the Closing shall not have been consummated on or before December 31, 2025 (such date or such later date, if any, as is provided in the proviso of this <u>Section 13.1(b)</u>, the "<u>Termination Date</u>"), *provided*, *however*, that, if, on the Termination Date, all conditions set forth in <u>ARTICLE XI</u> have been satisfied (other than the conditions set forth in <u>Section 11.1(a)</u> and those conditions that by their terms are to be satisfied at the Closing), then (i) the Termination Date shall be automatically extended by an additional ninety (90) days (which the Parties agree would be until March 31, 2026), (ii) the Termination Date shall be deemed for all purposes to be such later date, and (iii) during such ninety (90)-day period, the Parties shall, without limiting or expanding their obligations hereunder consult in good faith in an effort to agree to a mutually agreeable solution for the cause of the failure of the applicable conditions that have not been, as of such date, satisfied; 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;(c) by Cactus if there is any breach of any representation, warranty, covenant or agreement on the part of Baker Hughes set forth in this Agreement, such that the conditions specified in <u>Section 11.2</u> would not be satisfied at the Closing (a "<u>Terminating Baker Hughes Breach</u>"), except that, if such Terminating Baker Hughes Breach is curable by Baker Hughes through the exercise of its commercially reasonable efforts, then, for a period of up to thirty (30) days after receipt by Baker Hughes of notice from Cactus of such breach, such termination shall not be effective and the Termination Date shall be automatically extended until the first Business Day following the end of such cure period, and such termination shall become effective only if the Terminating Baker Hughes Breach is not cured prior to the expiry of such cure period; 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) by Baker Hughes if there is any breach of any representation, warranty, covenant or agreement on the part of Cactus set forth in this Agreement, such that the conditions specified in <u>Section 11.3</u> would not be satisfied at the Closing (a "<u>Terminating Cactus Breach</u>"), except that, if any such Terminating Cactus Breach is curable by Cactus through the exercise of its commercially reasonable efforts, then, for a period of up to thirty (30) days after receipt by Cactus of notice from Baker Hughes of such breach, such termination shall not be effective and the Termination Date shall automatically be extended until the first Business Day following the end of such cure period, and such termination shall become effective only if the Terminating Cactus Breach is not cured prior to the expiry of such cure period;

&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) by either Cactus or Baker Hughes, if there shall be in effect a final non-appealable Order or other applicable Law of a Governmental Authority prohibiting the consummation of the Closing; 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;(f) at any time before Closing, by Baker Hughes or Cactus pursuant to <u>Schedule 7.12</u>.

The Party desiring to terminate this Agreement pursuant to <u>Section 13.1(c)</u>, <u>Section 13.1(d)</u>, <u>Section 13.1(e)</u> or <u>Section 13.1(f)</u> shall give notice of such termination to the other Parties.

Notwithstanding anything else contained in this Agreement, the right to terminate this Agreement under <u>Section 13.1(c)</u>, <u>Section 13.1(d)</u> or <u>Section 13.1(e)</u>, shall not be available to any Party (i) that is in material breach of its obligations hereunder or (ii) whose failure to fulfil its obligations or to comply with its covenants under this Agreement has been the cause of, or resulted in, the failure to satisfy any condition to the obligations of either Party hereunder. Each Party agrees that, save as set out in this <u>Section 13.1</u>, they will have no right to rescind or terminate this Agreement before or after Closing.

Section 13.2 <u>Effect of Termination</u>. If this Agreement is terminated in accordance with <u>Section 13.1</u>, this Agreement shall become null and void and be of no further force and effect, except (a) that the termination of this Agreement will in no way relieve any Party from Liability for any damages for a willful and material breach or Fraud, and (b) as provided in <u>Section 13.3</u>; *provided*, *further*, that a failure of Baker Hughes or Cactus to consummate the transactions contemplated by this Agreement when required to do so following satisfaction of all the conditions to closing set forth in <u>Section 11.1</u>, <u>Section 11.2</u> and <u>Section 11.3</u> and in breach of this Agreement shall be deemed to be a willful and material breach.

Section 13.3 <u>Survival</u>. <u>ARTICLE I</u> (*Definitions*), <u>ARTICLE VII</u> (*Other Covenants*), <u>ARTICLE VIII</u> (*Intellectual Property Matters*), <u>ARTICLE XIV</u> (*Miscellaneous*), <u>Section 13.2</u> (*Effect of Termination*), and <u>Section 13.3</u> (*Survival*) will survive any termination of this Agreement and remain in full force and effect, along with any other provision of this Agreement that expressly is intended to come into or continue in force on or after termination of this Agreement.

ARTICLE XIV<u><br> Miscellaneous</u>

Section 14.1 <u>Expenses</u>. Except as otherwise expressly provided in the Transaction Documents, each Party shall be responsible for its own legal and other expenses incurred in connection with the drafting, negotiation, execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated by the Transaction Documents. Notwithstanding the foregoing, (a) solely with respect to the preparation of the Audited Financial Statements, the reasonable and documented out-of-pocket fees, costs and expenses of engaging a Third Party accounting firm to prepare such financials shall be borne by Baker Hughes; *provided*, that Baker Hughes shall be entitled to reimbursement thereof from Cactus of up to a maximum amount equal to the lesser of (i) fifty-percent (50%) of such fees, costs and expenses and (ii) $1,000,000 and (b) solely with respect to the preparation of the Quarterly Financial Statements, the reasonable and documented out-of-pocket fees, costs and expenses of engaging a Third Party accounting firm to prepare such financials shall be borne by Baker Hughes; provided, that Baker Hughes shall be entitled to reimbursement thereof from Cactus of up to a maximum amount for each such Quarterly Financial Statement equal to the lesser of (i) fifty-percent (50%) of such fees, costs and expenses and (ii) $150,000.

Section 14.2 <u>Assignment</u>. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. The rights of any Party under this Agreement shall not be assignable by such Party without the written consent of the other Parties; *provided*, that except with respect to indemnification obligations set forth under <u>ARTICLE XII</u>, each of Cactus and Baker Hughes shall be permitted to assign its rights under this Agreement to a wholly owned Affiliate without the written consent of the other Parties (subject to prior notice to the other Parties being provided); *provided*, that in all cases the assigning party nonetheless shall remain responsible for, and liable for, the performance of all of its obligations hereunder (including that of such assignee). Any attempted assignment in violation of this <u>Section 14.2</u> shall be void.

Section 14.3 <u>Notices</u>. All notices and other communications provided for or permitted hereunder shall be given either personally or by sending it by next-day or second-day courier service, electronic mail or similar means, in each case to the applicable addresses (including electronic mail addresses, so long as a receipt of such e-mail is requested and received) set forth below (or such other address) which each Party may from time to time specify:

If to Baker Hughes or the Company prior to Closing:

Baker Hughes Holdings LLC

575 North Dairy Ashford Road, Suite 100

Houston, TX 77079-1121

Attention: Ryan Brown; John Keffer<br> E-mail: ryan1.brown@bakerhughes.com; john.keffer@bakerhughes.com

With copies to (which copies shall not constitute notice):

McDermott Will & Emery LLP

1180 Peachtree Street, NE<br> Suite 3350

Atlanta, GA 30309

United States of America

Attention: Sam Snider; Nathan Mihalik

Email: ssnider@mwe.com; nmihalik@mwe.com

If to Cactus or the Company after Closing:

Cactus Companies, LLC

920 Memorial City Way

Suite 300

Houston, TX 77024

United States of America

Attention: Will Marsh

Email: will.marsh@cactuswhd.com

With copies to (which copies shall not constitute notice):

Bracewell LLP

711 Louisiana Street

Suite 2300

Houston, TX 77002

United States of America

Attention: Jason Jean; Jared Berg

Email: jason.jean@bracewell.com; jared.berg@bracewell.com

When a notice is sent by next-day or second-day courier service, service of the notice shall be effected by properly addressing, pre-paying and sending by next-day or second-day service through an internationally-recognized courier a letter containing the notice, with a confirmation of delivery, and will be deemed to have been effected at the expiration of three (3) Business Days after the letter containing the same is sent as aforesaid. When a notice is sent by email, service of the notice shall be effected by properly addressing and sending such notice through a transmitting organization, with a written confirmation of delivery, and to have been effected on the day the same is sent as aforesaid if sent during normal business hours of the recipient and, if not sent during normal business hours, on the next Business Day of the recipient. Copies of all notices or other communications (which shall not constitute notice hereunder) shall be sent simultaneously to counsel designated by the Parties by written notice.

Section 14.4 <u>Governing Law; Construction</u>. All questions with respect to the execution, validity, interpretation, and performance of this Agreement and the rights and liabilities of the Parties and in each other Transaction Document will be governed by the laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware or any rule of construction or interpretation based upon which party drafted this Agreement.

Section 14.5 <u>Dispute Resolution</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) Except as expressly set forth in this Agreement, any dispute, controversy or claim arising out of or relating to the transactions contemplated by this Agreement, or to the negotiation, execution or performance thereof, or to the inducement of either Party to enter therein, or the validity, interpretation, breach, violation or termination of any such agreement, including claims seeking redress or asserting rights under any Law (a "<u>Dispute</u>"), shall be resolved exclusively in accordance with the procedures set forth in this <u>Section 14.5</u>; *provided*, *however*, that nothing contained in this <u>Section 14.5</u> will limit any Party's right to pursue remedies available under <u>Section 14.12</u> or bring post arbitration actions seeking to enter judgment on an award, or to confirm or enforce an arbitration award.

&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) In the event of any Dispute, the Parties shall first refer the Dispute to settlement proceedings administered by the International Centre for Dispute Resolution (the "<u>ICDR</u>") in accordance with its International Mediation Rules (the "<u>ICDR Mediation Rules</u>"), without prejudice to either Party's right to seek interim emergency or conservatory measures of protection at any time; *provided*, *however*, that if such Party chooses to apply to a court for interim emergency or conservatory relief, then it may only do so in the courts specified in <u>Section 14.6</u>. If such Dispute has not been settled pursuant to said ICDR Mediation Rules within sixty (60) days following the filing of a request for mediation or within such other period as the Parties may agree in writing or which may be shortened due to the appointment of an emergency arbitrator, such Dispute shall be finally settled under the International Arbitration Rules of the ICDR by one or more arbitrators appointed in accordance with such rules. The seat, or legal place, of arbitration shall be Houston, Texas. The language to be used in the mediation and in the arbitration shall be English. A judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof, and each of the Parties hereby irrevocably and unconditionally consents and submits to the personal jurisdiction of such court for such 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;(c) The Parties, and their respective Affiliates and representatives, agree to keep confidential the existence of any mediation or arbitration conducted under this <u>Section 14.5</u>, including, but not limited to all materials issued, submitted or exchanged in any such mediation or arbitration (including all documents and other materials produced by another Person in the mediation or arbitration), and all testimony and transcripts, except insofar as such documents are already in the public domain or to the extent that disclosure may be required by legal duty (including as necessary to comply with applicable Laws and/or stock exchange rules), to pursue or protect a legal right, or to recognize, enforce, or challenge an award before a court or other judicial authority.

Section 14.6 <u>Consent to Jurisdiction and Venue</u>. Each of the Parties hereby irrevocably and unconditionally consents and submits to the personal jurisdiction and exclusive venue of the Texas Business Court located in Houston, Texas (or, if the Texas Business Courts are unavailable or lack jurisdiction, then the federal courts located in the Southern District of Texas or, if the federal courts located in the Southern District of Texas lack jurisdiction, then the state courts located in Harris County, Texas), with respect to any Action to enforce a Party's rights or remedies available under <u>Section 14.12</u>, and each of the Parties expressly consents and submits to and agrees that venue is proper in said courts. Each of the Parties hereby expressly waives any and all personal rights under applicable Law or in equity to object to the jurisdiction and venue of said courts, including the defense of an inconvenient forum to the maintenance of such Action in any such court. Each Party hereby authorizes and agrees to accept service of process sufficient for personal jurisdiction in any action against it as contemplated by this <u>Section 14.6</u> by registered or certified mail, return receipt requested, postage prepaid to its address for the giving of notices as set forth in this Agreement.

Section 14.7 <u>Waiver of Right to Jury Trial</u>. EACH PARTY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THEM AGAINST THE OTHER ARISING OUT OF, OR IN ANY WAY CONNECTED WITH, THIS AGREEMENT, THE TRANSACTION DOCUMENTS OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION HEREWITH OR THEREWITH OR THE ADMINISTRATION THEREOF OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. NO PARTY SHALL SEEK A JURY TRIAL IN ANY ACTION, PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON, OR ARISING OUT OF, THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENTS OR RELATED INSTRUMENTS. NO PARTY SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EACH PARTY CERTIFIES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH ABOVE IN THIS <u>SECTION 14.7</u>. NO PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS <u>SECTION 14.7</u> SHALL NOT BE FULLY ENFORCED IN ALL INSTANCES.

Section 14.8 <u>Third Party Beneficiaries</u>. Except as otherwise expressly provided in this Agreement, it is understood and agreed among the Parties that there are no Third Party beneficiaries to this Agreement and none of the provisions of this Agreement are intended to provide any rights, benefits or remedies to any Person other than the Parties and their respective successors and permitted assigns.

Section 14.9 <u>Entire Agreement; Amendments and Waivers</u>. This Agreement and the other Transaction Documents constitute the entire agreement between the Parties pertaining to the subject matter hereof and thereof and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. There are no restrictions, promises, representations, warranties, covenants or undertakings other than those expressly set forth or referred to in this Agreement and the other Transaction Documents. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by each of the Parties, or, in the case of a waiver, by the Party against whom the waiver is to be effective, in each case, making specific reference to this Agreement. No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

Section 14.10 <u>Severability</u>. In the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument, and such provision will be ineffective only to the extent of such invalidity, illegality or unenforceability, unless the consummation of the transactions contemplated hereunder is materially and adversely affected thereby.

Section 14.11 <u>Counterparts</u>. The Transaction Documents may be executed and delivered (including by .pdf) in one or more counterparts, and by the different parties to each such agreement in separate counterparts, each of which, when executed, shall be deemed an original, and all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to any Transaction Document by facsimile or other electronic means shall be as effective as delivery of a manually executed counterpart of any such Transaction Document.

Section 14.12 <u>Equitable Relief</u>. Each Party acknowledges that it shall be inadequate or impossible, or both, to measure in money the damage to the Company, Cactus or Baker Hughes, if any Party (or any of its successors or permitted assigns) fails to comply with any of the restrictions or obligations imposed by this Agreement, and that in the event of any such failure, the Company, Cactus or Baker Hughes shall not have an adequate remedy at law or in damages. Therefore, each Party consents to allow the other Parties to seek an injunction or the enforcement of other equitable remedies against such Party at the suit of an aggrieved party without the posting of any bond or other security, to compel specific performance of all of the terms of this Agreement, and, to the fullest extent permitted by Law, waives any defenses thereto, including the defenses of: (a) failure of consideration; (b) breach of any other provision of this Agreement; (c) availability of relief in damages; (d) any defense in any action for specific performance that a remedy at law will be adequate; and (e) any requirement under any Law to post security as a prerequisite to obtaining equitable relief. Notwithstanding the foregoing, each Party agrees that a Party may raise in response to any action for equitable relief that such Party contests the existence of a breach or threatened breach of this Agreement.

Section 14.13 <u>Non-Recourse</u>. All liabilities or obligations or Action (whether in contract or in tort, in Law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with, or relate in any manner to this Agreement, or the negotiation, execution, or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and such representations and warranties are those solely of) the Persons that are expressly identified as the Parties (the "<u>Contracting Parties</u>"). No Person who is not a Contracting Party, including any past, present or future incorporator, member, partner, manager, stockholder, shareholder, equity holder, representative or assignee of, and any financial advisor or lender to, any Contracting Party, or any past, present or future incorporator, member, partner, manager, stockholder, shareholder, equity holder representative or assignee of, and any financial advisor or lender to, any of the foregoing (collectively, the "<u>Nonparty Affiliates</u>"), will have any liability or obligation (whether in contract or in tort, in Law or in equity, or granted by statute) for any liabilities or obligations or Actions arising under, out of, in connection with, or related in any manner to this Agreement or based on, in respect of, or by reason of this Agreement or its negotiation, execution, performance, or breach, and, to the maximum extent permitted by Law, each Contracting Party waives and releases all such liabilities and obligations and Actions against any such Nonparty Affiliates. Without limiting the foregoing, to the maximum extent permitted by Law each Contracting Party disclaims any reliance upon any Nonparty Affiliates with respect to the performance of this Agreement or any representation or warranty made in, in connection with, or as an inducement to this Agreement.

Section 14.14 <u>Attorney-Client Privilege</u>. All communications, all files, attorney notes, drafts or other documents involving attorney-client confidences among any of Baker Hughes or any of its Affiliates, the Company and/or any Subject Entity, on the one hand, and McDermott Will & Emery LLP ("<u>MWE</u>"), Wilmer Cutler Pickering Hale and Dorr LLP ("<u>WilmerHale</u>") and/or Baker McKenzie LLP ("<u>Baker McKenzie</u>"), on the other hand, in the course of the consideration, negotiation and documentation of this Agreement and the Ancillary Agreements and the transaction (collectively, "<u>Work Product</u>") shall be deemed to be attorney-client confidences that belong solely to Baker Hughes and not Cactus nor any of its Affiliates (including the Company and the Subject Entities after the Closing). In any dispute or Action, Cactus waives (on its own behalf and on behalf of its Affiliates) the right to use or rely upon any Work Product. Cactus waives the right to access any Work Product. To the extent that any Work Product is in MWE's, WilmerHale's, or Baker McKenzie's possession as of the Closing Date, Cactus acknowledges and agrees that such Work Product may be used on behalf of Baker Hughes exclusively at the sole discretion of Baker Hughes. To the extent Cactus or its Affiliates has in their possession following the Closing any Work Product, Cactus agrees on behalf of itself and its Affiliates that such information and documents are solely held in trust for the benefit of Baker Hughes. Cactus further agrees (on its own behalf and on behalf of its Affiliates) that, as to the Work Product, the attorney-client privilege and the expectation of client confidence belongs to Baker Hughes and may be controlled by Baker Hughes and shall not pass to or be claimed by Cactus, the Company or any Subject Entity. Each Party shall take commercially reasonable steps (without any cost or expense to such Party) to ensure any privilege attaching as a result of MWE's, WilmerHale's, and Baker McKenzie's service as counsel to Baker Hughes in connection with the transactions contemplated by this Agreement and the Transaction Documents will survive the Closing, remain in effect, and be assigned to and controlled by Baker Hughes and its Affiliates (and not Cactus nor the Company, any Subject Entity nor any of their respective Affiliates). Notwithstanding anything to the contrary contained above, Cactus shall have the right to rely upon any Work Product which may have either been disclosed or delivered to Cactus in accordance with the terms of this Agreement.

Section 14.15 <u>Currency</u>. Unless otherwise specified in this Agreement, all references to currency, monetary values and dollars set forth herein shall be made in U.S. Dollars except as otherwise provided or required under Foreign Transfer Agreements pursuant to the Restructuring Transactions or applicable Law; *provided*, that any foreign currency amounts shall, unless otherwise required by applicable Law, be converted between U.S. dollars and local currency using an exchange rate that will be the closing mid-point real spot rate as of the second (2<sup>nd</sup>) Business Day prior to the applicable date of payment or other calculation (and for the Estimated Closing Statement, as of the second (2<sup>nd</sup>) Business Day prior to the date Baker Hughes delivers the Estimated Closing Statement to Cactus in accordance with <u>Section 3.5</u>) as published in Bloomberg for U.S. dollars to amounts of such foreign currency.

*[Remainder of page intentionally left blank. Signature page follows.]*

**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

---

| |
|:---|
| **BAKER HUGHES:** |
| Baker Hughes Holdings LLC |

---

---

| | |
|:---|:---|
| By: | /s/ Ryan Brown |
| Name: Ryan Brown | Name: Ryan Brown |
| Title: Authorized Person | Title: Authorized Person |

---

---

| |
|:---|
| **CACTUS:** |
| Cactus Companies, LLC |

---

---

| | |
|:---|:---|
| By: | /s/ Scott Bender |
| Name: Scott Bender | Name: Scott Bender |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

---

---

| |
|:---|
| **THE COMPANY:** |
| Baker Hughes Pressure Control LP |

---

---

| | |
|:---|:---|
| By: | /s/ Ryan Brown |
| Name: Ryan Brown | Name: Ryan Brown |
| Title: Authorized Person | Title: Authorized Person |

---

*Signature Page to Framework Agreement*

## Exhibit 99.1

**Exhibit 99.1**

**AMENDED AND RESTATED<br> LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**[●]**

Dated as of [●], 2025

THE MEMBERSHIP INTERESTS REPRESENTED BY THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS. SUCH INTERESTS MAY NOT BE SOLD, ASSIGNED, PLEDGED, OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND LAWS (OR EXEMPTION THEREFROM) AND WITHOUT COMPLIANCE WITH THE OTHER SUBSTANTIAL RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN.

THE MEMBERSHIP INTERESTS REPRESENTED BY THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT ARE SUBJECT TO CERTAIN CONDITIONS AND RESTRICTIONS ON TRANSFER SET FORTH HEREIN, AND THE COMPANY RESERVES THE RIGHT TO REFUSE THE TRANSFER OF SUCH INTERESTS UNLESS AND UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO THE REQUESTED TRANSFER AND THE TRANSFEROR HAS COMPLIED WITH SUCH RESTRICTIONS.

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| Article 1 Definitions | Article 1 Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;1.1 | <u>Definitions</u> | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;1.2 | <u>Construction</u> | 13 |
| Article 2 Organization | Article 2 Organization | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.1 | <u>Organization</u> | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.2 | <u>Business</u> | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.3 | <u>Name</u> | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.4 | <u>Registered Office; Registered Agent; Principal Office; Other Offices</u> | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.5 | <u>Purpose; Powers</u> | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.6 | <u>Foreign Qualification</u> | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.7 | <u>Term</u> | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.8 | <u>No State Law Partnership</u> | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.9 | <u>Title to Company Assets</u> | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.10 | <u>No Liability</u> | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.11 | <u>Mergers and Exchanges</u> | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.12 | <u>Competitive Activities</u> | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;2.13 | <u>No Power to Bind Company or Other Members</u> | 16 |
| Article 3 Members; Certificates; Issuance and Transfer of Membership Interests | Article 3 Members; Certificates; Issuance and Transfer of Membership Interests | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | <u>Members</u> | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | <u>Membership Interests; Percentage Interests</u> | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.3 | <u>Pre-Emptive Rights</u> | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.4 | <u>Representations and Warranties</u> | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.5 | <u>Restrictions on Transfer</u> | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.6 | <u>Permitted Transfers</u> | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.7 | <u>Security Interest</u> | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.8 | <u>Exit Option</u> | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.9 | <u>Transfer Taxes</u> | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.10 | <u>No Release</u> | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.11 | <u>Documentation; Validity of Transfer; Conditions</u> | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.12 | <u>Additional Members; Substituted Members</u> | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.13 | <u>Information; Confidentiality</u> | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.14 | <u>Non-Disparagement</u> | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.15 | <u>Withdrawal</u> | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.16 | <u>Fair Market Value</u> | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.17 | <u>Defaulting Member</u> | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.18 | <u>Compliance with Law; Regulatory Matters</u> | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.19 | <u>Non-Compete Covenant</u> | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.20 | <u>Operating Covenant</u> | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;3.21 | <u>Cobra Support Services</u> | 32 |

---

i

---

| | | |
|:---|:---|:---|
| Article 4 Capital Contributions AND MEMBER LOANS | Article 4 Capital Contributions AND MEMBER LOANS | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1 | <u>Initial Capital Contributions</u> | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;4.2 | <u>Optional Member Loans</u> | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;4.3 | <u>Return of Contributions</u> | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;4.4 | <u>Capital Accounts</u> | 34 |
| Article 5 Allocations of profits and losses; Distributions | Article 5 Allocations of profits and losses; Distributions | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;5.1 | <u>Profits and Losses</u> | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;5.2 | <u>Special Allocations</u> | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;5.3 | <u>Allocations for Tax Purposes in General</u> | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;5.4 | <u>Other Allocation Rules</u> | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;5.5 | <u>Distributions</u> | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;5.6 | <u>Tax Methods and Elections</u> | 39 |
| Article 6 Management | Article 6 Management | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.1 | <u>Generally</u> | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.2 | <u>Board of Directors</u> | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.3 | <u>Meetings</u> | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.4 | <u>Quorum and Voting</u> | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.5 | <u>Resignation; Removal and Vacancies</u> | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.6 | <u>Reliance on Reports</u> | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.7 | <u>Officers</u> | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.8 | <u>Director Compensation</u> | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.9 | <u>Related Party Activity</u> | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.10 | <u>Exculpation; Fiduciary Duties</u> | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.11 | <u>Indemnification</u> | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.12 | <u>Matters Requiring Majority Approval</u> | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.13 | <u>Matters Requiring Supermajority Approval</u> | 46 |
| Article 7 RESERVED | Article 7 RESERVED | 47 |
| Article 8 Inspection; Books and Records; Taxes | Article 8 Inspection; Books and Records; Taxes | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.1 | <u>Maintenance of Books and Records</u> | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.2 | <u>Tax Statements</u> | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.3 | <u>Accounts</u> | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.4 | <u>Accountants; Financial Information and Inspection</u> | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.5 | <u>Tax Returns</u> | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.6 | <u>Tax Elections</u> | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.7 | <u>Company Representative</u> | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.8 | <u>Withholding Tax Payments and Obligations</u> | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;8.9 | <u>Unitary/Combined Tax Reporting</u> | 52 |

---

ii

---

| | | |
|:---|:---|:---|
| Article 9 Dissolution, Liquidation and Termination | Article 9 Dissolution, Liquidation and Termination | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;9.1 | <u>Dissolution</u> | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;9.2 | <u>Liquidation and Termination</u> | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;9.3 | <u>Provision for Contingent Claims</u> | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;9.4 | <u>Deficit Capital Accounts</u> | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;9.5 | <u>Deemed Contribution and Distribution</u> | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;9.6 | <u>Certificate of Cancellation</u> | 55 |
| Article 10 General Provisions | Article 10 General Provisions | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.1 | <u>Notices</u> | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.2 | <u>Entire Agreement</u> | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.3 | <u>Waiver</u> | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.4 | <u>Non-Compensatory Damages</u> | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.5 | <u>Binding Effect</u> | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.6 | <u>Governing Law; Construction</u> | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.7 | <u>Dispute Resolution</u> | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.8 | <u>Consent to Jurisdiction and Venue</u> | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.9 | <u>Waiver of Right to Jury Trial</u> | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.10 | <u>Equitable Relief</u> | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.11 | <u>No Right to Action for Dissolution or Partition</u> | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.12 | <u>Third-Party Beneficiaries</u> | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.13 | <u>Amendments</u> | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.14 | <u>Creditors</u> | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.15 | <u>Disclosure; Public Announcements</u> | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.16 | <u>Indemnities; Conspicuous Notice</u> | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.17 | <u>Counterparts</u> | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;10.18 | <u>Certain Acknowledgments</u> | 60 |

---

---

| | |
|:---|:---|
| Exhibit A | Adjusted EBITDA – Principles and Illustration |
| Exhibit B | Current Cobra Wellhead Customers |
| Exhibit C | [Reserved] |
| Exhibit D | Company Territory |
| Exhibit E | Cobra Member Territory |
| Exhibit F | Members and Percentage Interest |
| Exhibit G | Form of Purchase and Sale Agreement |
| Exhibit H | Form of Joinder |
| Exhibit I | Knowledge Persons |
| Exhibit J | Initial and Alternate Directors |
| Schedule 3.19(a) | Gulf of Mexico Permitted Activities |

---

iii

**INDEX OF DEFINED TERMS**

---

| | |
|:---|:---|
| Accountant | 21 |
| Act | 2 |
| Actual Unitary Tax Liability | 53 |
| Adjusted Basis | 2 |
| Adjusted Capital Account Deficit | 2 |
| Adjusted EBITDA | 2 |
| Adjusted Resulting Tax Liability | 53 |
| Affiliate | 2 |
| Affiliate Contract | 2 |
| After-Acquired Business | 30 |
| After-Acquired Company | 30 |
| Agreement | 2 |
| Alternate Director | 40 |
| Approved Sale | 2 |
| Arm's Length Affiliate Contract | 3 |
| Assets | 3 |
| Available Cash | 3 |
| Bankruptcy | 3 |
| Board of Directors | 39 |
| Bugatti Accelerated Put Event | 20 |
| Bugatti Business Divestiture | 20 |
| Bugatti Default | 3 |
| Bugatti Default Period | 27 |
| Bugatti Director | 40 |
| Bugatti Member | 4 |
| Bugatti Member Parent | 1 |
| Business | 4 |
| Business Assets | 4 |
| Business Day | 4 |
| Call Option | 20 |
| Capital Account | 4 |
| Capital Contribution | 4 |
| Certificate | 14 |
| Chairman of the Board | 41 |
| Cobra Accelerated Option Event | 20 |
| Cobra Default | 4 |
| Cobra Default Period | 27 |
| Cobra Director | 39 |
| Cobra Member | 4 |
| Cobra Member Parent | 1 |
| Cobra Support Service | 4 |
| Code | 4 |
| Combined Reporting Member | 53 |
| Company | 5 |

---

---

| | |
|:---|:---|
| Company Minimum Gain | 5 |
| Company Representative | 5 |
| Company Valuation | 20 |
| Confidential Information | 5 |
| Control | 5 |
| Court | 5 |
| Creditable Non-U.S. Tax | 5 |
| Current Cobra Wellhead Customers | 6 |
| Day | 6 |
| De Minimis Business | 31 |
| Depreciation | 6 |
| Designating Member | 6 |
| Director | 6 |
| Dispute | 57 |
| Dispute Notice | 21 |
| Divested Business | 10 |
| Effective Date | 1 |
| Election Period | 18 |
| Eligible Purchaser | 6 |
| Entity | 7 |
| Excluded Issuance | 17 |
| Exit Interests | 19 |
| Exit Notice | 20 |
| Exit Option | 20 |
| Exit Price | 20 |
| Fair Market Value | 7 |
| FCPA | 28 |
| Finance Activities | 31 |
| Fiscal Year | 7 |
| Framework Agreement | 1 |
| GAAP | 7 |
| Governmental Authority | 7 |
| Gross Asset Value | 7 |
| Guaranteed Obligation | 22 |
| Guarantor | 22 |
| ICDR | 57 |
| ICDR Mediation Rules | 57 |
| Indemnified Person | 48 |
| Indemnitee | 8 |
| Independent Third Party | 8 |
| Initial Bugatti Contribution | 33 |
| Initial Members | 1 |
| Joinder | 23 |
| Knowingly | 28 |

---

iv

---

| | |
|:---|:---|
| Law | 8 |
| Lending Member | 33 |
| Liabilities | 8 |
| Liquidating Event | 54 |
| Liquidator | 54 |
| Loan Deadline | 33 |
| Loan Request | 33 |
| Loan Request Notice | 33 |
| Losses | 10 |
| Majority Approval | 9 |
| Market Event | 9 |
| Member | 9 |
| Member Loan | 33 |
| Member Minimum Gain | 9 |
| Member Nonrecourse Debt | 9 |
| Member Nonrecourse Deduction | 9 |
| Membership Interests | 9 |
| New Debt | 17 |
| New Interests | 17 |
| Nonrecourse Deductions | 9 |
| Nonrecourse Liability | 9 |
| Notice | 56 |
| Officer | 9 |
| Original Agreement | 1 |
| Other Indemnitors | 45 |
| Partnership Tax Audit Rules | 10 |
| Percentage Interest | 10 |
| Permitted Affiliate | 10 |
| Permitted Transfer | 10 |
| Permitted Transferee | 10 |
| Person | 10 |
| Pre-Closing Transactions | 10 |
| Pre-emptive Notice | 17 |
| Preliminary Exit Statement | 21 |
| Prime Rate | 10 |

---

---

| | |
|:---|:---|
| Profits | 10 |
| Proposed Purchaser | 17 |
| Put Right | 20 |
| Regulatory Allocations | 37 |
| Reimbursing Member | 53 |
| Related Party Activity | 11 |
| Related Person | 28 |
| Representatives | 12 |
| Requesting Purchaser | 18 |
| Restricted Parties | 30 |
| Resulting Tax Liability | 53 |
| Sale of Cobra | 12 |
| Sanctioned Country | 28 |
| Sanctioned Persons | 28 |
| Sanctions | 28 |
| SEC | 12 |
| Securities Act | 12 |
| Security Interest | 12 |
| SpinCo | 10 |
| Stand-Alone Tax Liability | 53 |
| Subject Entities | 12 |
| Subsidiary | 12 |
| Substituted Member | 12 |
| Supermajority Approval | 12 |
| Territory | 12 |
| Transaction Documents | 13 |
| Transfer | 13 |
| Transferee | 13 |
| Transferred | 13 |
| Transitioned Support Services | 32 |
| Treasury Regulations | 13 |
| Unitary/Combined Tax Report | 52 |
| Valuation Ceiling | 21 |
| Valuation Floor | 21 |

---

v

**AMENDED AND RESTATED<br> LIMITED LIABILITY COMPANY AGREEMENT<br> OF<br> [●] LLC**

This Amended and Restated Limited Liability Company Agreement of [●] LLC, a Delaware limited liability company, dated as of [●], 2025 (the "***Effective Date***"), is adopted, executed, and agreed to, for good and valuable consideration, by and among (a) the Company (as defined below), (b) [●], a [●] (the "***Cobra Member***"), and [●], a [●] (the "***Bugatti Member***," and together with the Cobra Member, the "***Initial Members***"), (c) solely for purposes of <u>Section 3.8(g), Section 3.19</u> and <u>Section 3.21</u>, Cactus, Inc., a Delaware corporation (the "***Cobra Member Parent***"), (d) solely for purposes of <u>Section 3.19</u>, Baker Hughes Company, a Delaware corporation (the "***Bugatti Member Parent***"), and (e) any other Persons (as defined below) who are hereafter admitted as Members (as defined below) of the Company.

WHEREAS, the Company was converted to a limited liability company under the Act on [●], 2025 by the filing of the Certificate with the Secretary of State of the State of Delaware and the execution of a Limited Liability Company Agreement by the Bugatti Member (the "***Original Agreement***");

WHEREAS, prior to the execution of this Agreement, the Bugatti Member and its Affiliates collectively have owned 100% of the equity interests of the Company since its formation;

WHEREAS, simultaneously with the execution of this Agreement, the Initial Members consummated the transactions contemplated by the Framework Agreement dated as of [June 2, 2025], by and among the Company, the Cobra Member Parent and the Bugatti Member Parent (each as defined below) (the "***Framework Agreement***"), pursuant to which the Cobra Member acquired sixty five percent (65%) of the Membership Interests of the Company;

WHEREAS, the Members desire to enter into this Agreement to (a) amend and restate the Original Agreement in its entirety; (b) provide for the management and operation of the Company; and (c) set forth the rights and obligations of the Members in respect thereof; and

Whereas, contemporaneously with the entry into this Agreement and in connection with the consummation of the transactions contemplated by the Framework Agreement, the Company has entered into the other Transaction Documents (as defined below).

NOW, THEREFORE, the Members, by execution of this Agreement, hereby agree as follows:

Article 1<u><br> Definitions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Definitions</u>. As used in this Agreement, the following terms shall have the following respective meanings:

"***Act***" means the Delaware Limited Liability Company Act, as amended from time to time, and any successor to such statute.

"***Adjusted Basis***" has the meaning given such term in Section 1011 of the Code.

"***Adjusted Capital Account Deficit***" means, with respect to any Member, the deficit balance, if any, in such Member's Capital Account at the end of any Fiscal Year or other taxable period of the Company, with the following adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) credit to such Capital Account any amount that such Member is obligated to restore under Treasury Regulations Section 1.704-1(b)(2)(ii)(c), as well as any addition thereto pursuant to the next to last sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) after taking into account thereunder any changes during such year in Company Minimum Gain and Member Minimum Gain; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) debit to such Capital Account the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

"***Adjusted EBITDA***" means the earnings before interest, taxes, depreciation, and amortization of the Company, as adjusted and calculated in accordance with <u>Exhibit A</u> attached hereto.

"***Affiliate***" means, with respect to any Person, any other Person that directly or indirectly Controls, is Controlled by, or is under common Control with, such Person. Notwithstanding the foregoing, for purposes of this Agreement, (a) no Member shall be considered an Affiliate of the Company or any of the Company's Subsidiaries or investees and (b) no Member or its Affiliates shall be considered an Affiliate of any other Member or any of such other Member's Affiliates.

"***Affiliate Contract***" means any contract, agreement, arrangement, understanding, or other transaction between the Company or a Subsidiary of the Company, on the one hand, and a Member or an Affiliate of a Member, on the other hand. For the avoidance of doubt, "Affiliate Contract" expressly includes the Transaction Documents (other than the Framework Agreement) and expressly excludes the Framework Agreement and this Agreement.

"***Agreement***" means this Amended and Restated Limited Liability Company Agreement, as it may be amended, supplemented, or otherwise modified from time to time in accordance with its terms.

"***Approved Sale***" means any transaction or a series of related transactions involving (a) the sale of all of the outstanding Membership Interests to an Independent Third Party, (b) a merger of the Company with an Independent Third Party, or (c) a sale of all or substantially all of the Assets, taken as a whole, to an Independent Third Party. For the avoidance of doubt, the exercise of the Exit Option is not an Approved Sale and is not subject to <u>Section 6.13(a)</u>.

"***Arm's Length Affiliate Contract***" means any Affiliate Contract (or series of related Affiliate Contracts) that is on arm's length terms and in the ordinary course of business of the Company; *provided*, that in order for any Affiliate Contract that contemplates the provision of goods or services to the Company or its Subsidiaries to be deemed to be on arm's length terms, the pricing terms must reflect the lower of (a) (i) competitive pricing not exceeding the price charged for similar goods or services by Independent Third Party suppliers that are licensed under the American Petroleum Institute's Specification Q1 to produce products meeting the American Petroleum Institute's Specification 6A, or (ii) in the case of goods or services that are not covered under American Petroleum Institute's Specification 6A, competitive pricing not exceeding the price charged for similar goods or services by Independent Third Party suppliers, and (b) a profit margin (based on reasonable documented direct costs) of no more than 20%; and *provided further*, that the non-pricing terms shall be deemed to be arm's length if such terms are not materially less favorable to the Company or its Subsidiaries than the legal terms contained in the Baker Hughes Commercial Agreement (as defined in the Framework Agreement).

"***Assets***" means the assets, properties and business, of every kind and description, held by the Company and its Subsidiaries, including (a) equity interests of the Subject Entities, and (b) the Business Assets and the assets held by the Subject Entities.

"***Available Cash***" means the amount of cash and cash equivalents of the Company and its Subsidiaries available for distribution to the Members, after provision for reasonable reserves, anticipated budgeted expenses and capital expenses sufficient for the Company and its Subsidiaries to conduct the Business, in each case as determined by the Board of Directors from time to time.

"***Bankruptcy***" (and its correlative terms) means, with respect to any Person, that (a) such Person (i) makes a general assignment for the benefit of creditors; (ii) files a voluntary petition in bankruptcy; or (iii) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of such Person or of all or any substantial part of such Person's properties; or (b) ninety (90) Days have passed after the commencement of any proceeding against such Person seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any Law, if the proceeding has not been dismissed, or sixty (60) Days have passed after the appointment, without such Person's consent or acquiescence, of a trustee, receiver, or liquidator of such Person or of all or any substantial part of such Person's properties, if the appointment is not vacated or stayed, or sixty (60) Days have passed after the date of expiration of any such stay, if the appointment has not been vacated. The foregoing definition of "Bankruptcy" shall supersede and replace the definition of "Bankruptcy" contained in the Act.

"***Bugatti Default***" means the failure of the Bugatti Member or its Affiliate, as applicable, to cure a breach by it of this Agreement related to (a) any Transfer that is not in accordance with this Agreement, (b) an intentional and material breach of the Bugatti Member's obligations under <u>Section 3.13</u> (excluding <u>Section 3.13(d)</u>) which causes actual and material damages to the Company and its Subsidiaries, taken as a whole, or (c) to the extent the Bugatti Member elects to be a Lending Member in connection with a Loan Request, subsequent failure by the Bugatti Member to make any portion of the Member Loan required by such Loan Request on or prior to the applicable Loan Deadline (taking into account any extensions of such Loan Deadline that may otherwise be agreed to by the Board, the Members and/or the Company), in each case of clauses (a) through (c), within thirty (30) Days after the Bugatti Member's receipt of written notice thereof from the Company or any other Member.

"***Bugatti Member***" has the meaning set forth in the preamble and includes any Transferee of the Bugatti Member that becomes a Member in accordance with <u>Section 3.6</u>.

"***Business***" has the meaning ascribed to such term in the Framework Agreement.

"***Business Assets***" has the meaning ascribed to such term in the Framework Agreement.

"***Business Day***" means any Day other than a Saturday, a Sunday, or a Day on which national banking associations located in the State of Texas are required or authorized by applicable Law to remain closed.

"***Capital Account***" means, with respect to any Member, the capital account maintained for each Member pursuant to <u>Section 4.4</u>.

"***Capital Contribution***" means, with respect to any Member, the dollar amount of any cash or cash equivalents and the initial Gross Asset Value of any property (other than cash) contributed to the Company by such Member. For the avoidance of doubt, (a) Member Loans shall not constitute Capital Contributions and (b) as of the date of this Agreement, the Cobra Member represents 65% of all Capital Contributions and the Bugatti Member represents 35% of all Capital Contributions.

"***Cobra Default***" means the failure of the Cobra Member or its Affiliate, as applicable, to cure a breach by it of this Agreement related to any Transfer that is not in accordance with this Agreement within thirty (30) Days after the Cobra Member's receipt of written notice thereof from the Bugatti Member.

"***Cobra Member***" has the meaning set forth in the preamble and includes any Transferee of the Cobra Member that becomes a Member in accordance with <u>Section 3.6</u>.

"***Cobra Support Service***" means any service provided by the Cobra Member or its Affiliate to the Company or the Company's Subsidiaries in respect of general and administrative functions shared by the Cobra Member or its Affiliate and the Company or the Company's Subsidiaries, including human resources, legal, accounting and finance, in each case only to the extent such service (a) is necessary for the efficient operation of the Business (as reasonably determined in good faith by the Cobra Member) and is not otherwise provided by any employee of the Company or its Subsidiaries, and (b) was provided by the Bugatti Member or its Affiliates in respect of the Business during the twelve (12) months prior to the Effective Date and is not being provided by the Bugatti Member or its Affiliate under any agreement between the Bugatti Member or its Affiliate, on the one hand, and the Company or its Subsidiaries, on the other hand.

"***Code***" means the United States Internal Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute of similar import.

"***Company***" means [●] LLC, a Delaware limited liability company (formerly known as Baker Hughes Pressure Control LP, a Texas limited partnership), or any successor Entity thereto contemplated by this Agreement.

"***Company Minimum Gain***" has the meaning of "partnership minimum gain" set forth in Treasury Regulations Sections 1.704-2(b)(2) and 1.704-2(d). It is further understood that Company Minimum Gain shall be determined in a manner consistent with the rules of Treasury Regulations Section 1.704-2(b)(2), including the requirement that if the adjusted Gross Asset Value of property subject to one or more Nonrecourse Liabilities differs from its Adjusted Basis, Company Minimum Gain shall be determined with reference to such Gross Asset Value.

"***Company Representative***" has the meaning assigned to the term "partnership representative" in Section 6223 of the Code (and any Treasury Regulations or other administrative or judicial pronouncements promulgated thereunder) and any "designated individual," if applicable, as defined in the Treasury Regulations promulgated thereunder (including, in each case, any similar capacity or role under relevant state or local Law).

"***Confidential Information***" means, collectively, all non-public, proprietary, or confidential documents, materials, data, and other information (whether oral, visual, written, electronic, or otherwise), whether or not marked or designated as "confidential" relating to the Company, the Assets, the Members, or their respective Affiliates (including its parent companies), including (a) that portion of any notes, analyses, reports, compilations, studies, interpretations, memoranda, or other documents prepared by the Bugatti Member or its Representatives that contain, reflect, or are based upon any other Confidential Information, and (b) the terms and provisions of this Agreement and the Transaction Documents (including the parties hereto and thereto). Notwithstanding the foregoing, Confidential Information does not include (i) information that is or becomes generally available to the public through no action on the part of the Bugatti Member or its Representatives in violation of this Agreement (including information that is available through subscription services), (ii) information that the Bugatti Member can demonstrate is independently developed or generated by the Bugatti Member or its Representatives without use of the Confidential Information, (iii) information that the Bugatti Member can demonstrate was already in its possession or the possession of any of its Representatives at the time of disclosure to it, or (iv) information that was received by the Bugatti Member or its Representatives from a third-party source if such source is not known to the Bugatti Member, after reasonable inquiry, to be bound by a contractual, legal, or fiduciary obligation of confidentiality or secrecy with respect to such information.

"***Control***" (and its correlative terms) 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 ownership of voting securities, by contract, or otherwise.

"***Court***" shall mean (a) any court established and functioning under the Laws of any nation or state, or any political subdivision thereof or (b) any arbitrator, arbitration panel or similar body.

"***Creditable Non-U.S. Tax***" means a non-U.S. tax paid or accrued for U.S. federal income tax purposes by the Company, in either case to the extent that such tax is eligible for credit under Section 901(a) of the Code. A non-U.S. tax is a Creditable Non-U.S. Tax for these purposes without regard to whether a Member receiving an allocation of such non-U.S. tax elects to claim a credit for such amount. This definition is intended to be consistent with the definition of "creditable foreign tax expenditures" in Treasury Regulations Section 1.704-1(b)(4)(viii)(b), and shall be interpreted consistently therewith.

"***Current Cobra Wellhead Customers***" means those Persons that, as of the Effective Date, (a) are wellhead customers of Cobra Member Parent or its Subsidiaries, including those indicated on <u>Exhibit B</u> and (b) are not wellhead customers of the Business.

"***Day***" means a calendar day.

"***Depreciation***" means, for each Fiscal Year or other taxable period of the Company, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an Asset for such Fiscal Year or other taxable period, except that (a) with respect to any such Asset the Gross Asset Value of which differs from its Adjusted Basis for U.S. federal income tax purposes and which difference is being eliminated by use of the "remedial method" pursuant to Treasury Regulations Section 1.704-3(d), Depreciation for such Fiscal Year or other taxable period shall be the amount of book basis recovered for such Fiscal Year or other taxable period under the rules prescribed by Treasury Regulations Section 1.704-3(d)(2), and (b) with respect to any other such Asset the Gross Asset Value of which differs from its Adjusted Basis for U.S. federal income tax purposes at the beginning of such Fiscal Year or other taxable period, (i) Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year or other taxable period bears to such beginning Adjusted Basis, and (ii) if the Adjusted Basis for U.S. federal income tax purposes of an Asset at the beginning of such Fiscal Year or other taxable period is zero (0), Depreciation with respect to such Asset shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Board of Directors and permitted by the Code and Treasury Regulations.

"***Designating Member***" means, with respect to a Director, the Member who has the right pursuant to <u>Section 6.2</u> to elect and remove from office such Director.

"***Director***" means any individual appointed as a member of the Board of Directors as provided in <u>Section 6.2</u>, but such term does not include any individual who has ceased to be a member of the Board of Directors.

"***Eligible Purchaser***" means, subject to <u>Section 3.3</u>, any Member holding Percentage Interest, in each case, that certifies to the Company's reasonable satisfaction that such holder is an "accredited investor" as defined in Regulation D promulgated under the Securities Act; *provided*, *however*, that if the Bugatti Member is in Bugatti Default, it shall not be an Eligible Purchaser for so long as the Bugatti Member is in Bugatti Default.

"***Emergency Event***" means the Board has determined in good faith that (a) there is an imminent situation which would, unless remedied, (i) reasonably be expected to result in the imposition of criminal or material civil sanctions against the Company or any of its Subsidiaries pursuant to applicable Law, (ii) reasonably be expected to result in the Company or any of its Subsidiaries being unable to perform any monetary obligation thereof toward any Person other than a Member or an Affiliate of a Member the failure of which would reasonably be expected to have a material adverse effect on the Company and its Subsidiaries taken as a whole, unless such inability is reasonably expected to be temporary, or (iii) reasonably be likely to result in injury or death to any individual or any material damage to or material destruction of the environment or of any of the Company's or any of its Subsidiaries' material assets, or (b) a Market Event has occurred or is imminent.

"***Entity***" means a corporation, limited liability company, venture, partnership (general or limited), trust, unincorporated organization, association, or other entity.

"***Fair Market Value***" means the value of any specified interest or property, which shall not in any event be less than zero (0), that would be obtained in an arms-length transaction for cash between an informed and willing buyer and an informed and willing seller, neither of whom is under any compulsion to purchase or sell, and without regard to the particular circumstances of the buyer or seller. Fair Market Value shall be determined in accordance with <u>Section 3.16</u>.

"***Fiscal Year***" means the fiscal year of the Company, which shall end on December 31 of each calendar year unless, for U.S. federal income tax purposes, another fiscal year is required. The Company shall have the same fiscal year for U.S. federal income tax purposes and for accounting purposes.

"***GAAP***" means the generally accepted accounting principles in the United States of America, as in effect from time to time, consistently applied.

"***Governmental Authority***" means any foreign, domestic, federal, territorial, provincial, state or local governmental authority, instrumentality, Court, or any government-owned or government-controlled company, political party or any political or other subdivision, department or branch of any of the foregoing.

"***Gross Asset Value***" means, with respect to any Asset, the Asset's Adjusted Basis for U.S. federal income tax purposes, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the initial Gross Asset Value of any Asset contributed by a Member to the Company shall be the gross Fair Market Value of such Asset as of the date of such contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Gross Asset Values of all Assets shall be adjusted to equal their respective gross Fair Market Values as of the following times: (i) the acquisition of an interest (or additional interest) in the Company by any new or existing Member in exchange for more than a *de minimis* Capital Contribution to the Company or in exchange for the performance of more than a *de minimis* amount of services to or for the benefit of the Company; (ii) the distribution by the Company to a Member of more than a *de minimis* amount of Assets as consideration for an interest in the Company; (iii) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g)(1); (iv) the acquisition of an interest in the Company by any new or existing Member upon the exercise of a noncompensatory option in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(s); or (v) any other event to the extent determined by the Board of Directors to be permitted and necessary or appropriate to properly reflect Gross Asset Values in accordance with the standards set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(q); *provided*, *however*, that adjustments pursuant to clauses (i), (ii) and (iv) above shall be made only if the Board of Directors reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company. If any noncompensatory options are outstanding upon the occurrence of an event described in clauses (i) through (v) of this paragraph (b), the Company shall adjust the Gross Asset Values of its Assets in accordance with Treasury Regulations Sections 1.704-1(b)(2)(iv)(f)(1) and 1.704-1(b)(2)(iv)(h)(2);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Gross Asset Value of any Asset distributed to any Member shall be adjusted to equal the gross Fair Market Value of such Asset on the date of such distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Gross Asset Values of the Assets shall be increased (or decreased) to reflect any adjustments to the Adjusted Basis of such Assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and subsection (f) in the definition of "Profits" or "Losses" or <u>Section 5.2(h)</u>; *provided*, *however*, that the Gross Asset Value of an Asset shall not be adjusted pursuant to this subsection to the extent the Board of Directors determines that an adjustment pursuant to subsection (b) of this definition is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this subsection (d); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if the Gross Asset Value of an Asset has been determined or adjusted pursuant to subsections (a), (b) or (d) of this definition of Gross Asset Value, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such Asset for purposes of computing Profits, Losses and other items allocated pursuant to <u>Article 5</u>.

"***Indemnitee***" means any Person who is or at any time immediately after the Effective Date was (a) an Officer, Director, employee, Member, manager, agent, or trustee of the Company, (b) an officer or director, employee, member, partner, manager, agent, or trustee of any of the Company's Affiliates, (c) serving at the request of the Company or any of its Affiliates as a director, officer, employee, member, partner, manager, agent, or trustee of another Person, (d) serving as Company Representative, (e) a Member or a Person who is or at any time immediately after the Effective Date was an officer or director, employee, member, partner, manager, agent, trustee or equityholder of such Member, in the case of each of the foregoing clause (a) through (f), in their capacities as such; *provided*, that, for the avoidance of doubt, no Member or its Affiliate that is party to a contract with the Company or its Affiliates or the other Member or its Affiliates shall be an Indemnitee in such Member's or its Affiliate's capacity as a counterparty in such contract.

"***Independent Third Party***" means any Person that, immediately prior to the contemplated transaction, is not an Affiliate of any Member or the Company and is not a Member.

"***Law***" means any applicable constitutional provision, statute, act, code (including the Code), law, regulation (including the Treasury Regulations), rule, ordinance, order, or decree of a Governmental Authority.

"***Liabilities***" means any liability or obligation, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated and whether due or to become due, regardless of when asserted.

"***Majority Approval***" means, with respect to any matter submitted for the vote or consent of the Board of Directors, the affirmative vote or consent of more than fifty percent (50%) of the total voting power of the Board of Directors as then composed in accordance with <u>Section 6.4(b)</u>; *provided*, *however*, that if the Bugatti Member is in Bugatti Default, the Directors entitled to vote on such matter shall only consist of the Cobra Directors.

"***Market Event***" means a general downturn in the oil and gas industry in or affecting the jurisdictions in which the Company or its Affiliates operate, the effects of which would reasonably be expected to materially and adversely affect the economic or operational performance or overall profitability of the Company or its Affiliates for longer than ninety (90) days if the Company were to continue operating in the ordinary course without taking mitigating actions to maintain economic or operational performance or overall profitability.

"***Member***" means the Initial Members and any other Person hereafter admitted to the Company as a new Member or Substituted Member of the Company as provided in this Agreement, but does not include any Person who has ceased to be a member of the Company.

"***Member Minimum Gain***" has the meaning ascribed to "partner nonrecourse debt minimum gain" set forth in Treasury Regulations Section 1.704-2(i). It is further understood that the determination of Member Minimum Gain and the net increase or decrease in Member Minimum Gain shall be made in the same manner as required for such determination of Company Minimum Gain under Treasury Regulations Sections 1.704-2(d) and 1.704-2(g)(3).

"***Member Nonrecourse Debt***" has the meaning of "partner nonrecourse debt" set forth in Treasury Regulation Section 1.704-2(b)(4).

"***Member Nonrecourse Deduction***" has the meaning of "partner nonrecourse deductions" set forth in Treasury Regulation Sections 1.704-2(i)(1) and 1.704-2(i)(2).

"***Membership Interests***" means a limited liability company interest (as such term is defined in the Act) of a Member, including the right to receive distributions from the Company, together with all other rights, benefits, and privileges enjoyed by the Member (under the Act, the Certificate, this Agreement, or otherwise) in its capacity as a Member, including the right to vote, consent, and approve, and all obligations, duties, and liabilities imposed on the Member (under the Act, the Certificate, this Agreement, or otherwise) in its capacity as a Member, which limited liability company interest is expressed as a Percentage Interest.

"***Nonrecourse Deductions***" has the meaning assigned that term in Treasury Regulations Section 1.704-2(b), and the amount of Nonrecourse Deductions for a taxable year of the Company shall be determined according to the provisions of Treasury Regulations Section 1.704-2(c).

"***Nonrecourse Liability***" is defined in Treasury Regulations Section 1.704-2(b)(3).

"***Officer***" means any individual duly appointed as an officer of the Company as provided in <u>Section 6.7</u>, but such term does not include any Person who has ceased to be an officer of the Company.

"***Partnership Tax Audit Rules***" means Sections 6221 through 6241 of the Code, as amended, together with any final or temporary Treasury Regulations, Revenue Rulings, and case law interpreting Sections 6221 through 6241 of the Code, as amended (and any analogous provision of state or local tax Law).

"***Percentage Interest***" means, with respect to a Member, (a) the aggregate amount of Capital Contributions made by such Member (together with such Member's predecessors in interest) *divided by* (b) the aggregate amount of Capital Contributions made by all Members. The Percentage Interest of a Member shall be adjusted from time to time as provided in this Agreement, including in connection with any Transfer consummated in accordance with this Agreement.

"***Permitted Affiliate***" means (a) in the case of the Cobra Member, any Person that is a wholly-owned and controlled Affiliate of the Cobra Member Parent or (b) in the case of the Bugatti Member, any Person that is a wholly-owned and controlled Affiliate of the Bugatti Member Parent.

"***Permitted Transfer***" means any Transfer (a) by any Member of all, but not less than all, of such Member's Membership Interests to any Permitted Affiliate of such Member, other than a Permitted Affiliate formed (i) primarily for the purpose of effecting the indirect Transfer of economic or beneficial ownership of Membership Interests to any Person who is not a Permitted Affiliate of such Member or (ii) for the purpose or having the effect of circumventing the restrictions on Transfers set forth in this Agreement (a Transferee permitted pursuant to <u>Section 3.6</u> who receives a Transfer in compliance with this Agreement shall be referred to herein as a "***Permitted Transferee***"), (b) by the Bugatti Member of all of its Membership Interests to an Independent Third Party, in the event of a sale of all or substantially all of the Bugatti Member's Oilfield Services and Equipment reporting segment or its subsea solutions business (either such business being the "***Divested Business***") to such Independent Third Party, or (c) resulting from a reorganization and spinoff of the Divested Business to the stockholders of Bugatti Member Parent resulting in the Divested Business becoming a standalone public company (such standalone public company, "***SpinCo***"); *provided*, that in the case of clauses (b) or (c), as a condition to such Transfer, the Bugatti Member has caused the Independent Third Party or SpinCo, as applicable, to assume all rights and obligations of the Bugatti Member under this Agreement.

"***Person***" means a natural person, an Entity, or a Governmental Authority.

"***Pre-Closing Transactions***" has the meaning ascribed to such term in the Framework Agreement.

"***Prime Rate***" means, on any date of determination, a rate per annum equal to the rate of interest most recently published by The Wall Street Journal as the "prime rate" at large U.S. money center banks.

"***Profits***" or "***Losses***" means, for each Fiscal Year or other taxable period, an amount equal to the Company's taxable income or loss for such year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments (without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any income or gain of the Company that is exempt from U.S. federal income tax and not otherwise taken into account in computing Profits or Losses shall be added to such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses, shall be subtracted from such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the event the Gross Asset Value of any Asset is adjusted pursuant to subsection (b) or (c) of the definition of Gross Asset Value, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the Gross Asset Value of the Asset) or an item of loss (if the adjustment decreases the Gross Asset Value of the Asset) from the disposition of such Asset and shall, except to the extent allocated pursuant to <u>Section 5.2</u>, be taken into account for purposes of computing Profits or Losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) gain or loss resulting from any disposition of any Assets with respect to which gain or loss is recognized for U.S. federal income tax purposes shall be computed with reference to the Gross Asset Value of the Asset disposed of, notwithstanding that the Adjusted Basis of such Asset differs from its Gross Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in lieu of the Depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to the extent an adjustment to the Adjusted Basis of any Asset pursuant to Code Section 734(b), pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Account balances as a result of a distribution other than in liquidation of a Member's Membership Interest, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the Asset) or an item of loss (if the adjustment decreases such basis) from the disposition of such Asset and shall be taken into account for purposes of computing Profits or Losses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any items of income, gain, loss or deduction which are specifically allocated pursuant to the provisions of <u>Section 5.2</u> shall not be taken into account in computing Profits or Losses for any taxable year of the Company, but such items available to be specially allocated pursuant to <u>Section 5.2</u> will be determined by applying rules analogous to those set forth in subparagraphs (a) through (f) above.

"***Related Party Activity***" means (a) the entry into or termination, amendment, or modification of any Affiliate Contract (other than an Arm's Length Affiliate Contract, unless any such amendment or modification of such Arm's Length Affiliate Contract would result in such contract ceasing to be an Arm's Length Affiliate Contract), and (b) the enforcement of (or causing the enforcement of) the rights of the Company or any of its Subsidiaries under any Affiliate Contract; *provided*, *however*, that (i) the issuance of any New Interests or New Debt made in accordance with <u>Section 3.3</u>, the terms thereof and the exercise of rights thereunder, and any amendments to this Agreement entered into in connection therewith, (ii) any Member Loans requested by a Loan Request in accordance with <u>Section 4.2</u>, the terms thereof and the exercise of rights thereunder, and (iii) the provision of the Cobra Support Services and payment therefor, shall, in the case of each of the foregoing clause (i), (ii) and (iii), not be deemed a Related Party Activity.

"***Representatives***" means, with respect to any Person, such Person's Affiliates, and such Person's and its Affiliates' directors, officers, employees, partners, equity holders, agents, consultants, contractors, subcontractors, potential financing sources, bankers, legal or financial advisors, or other advisors, or those of its Affiliates and/or joint venturers.

"***Sale of Cobra***" shall mean any one or more of the following: (a) the acquisition by any Independent Third Party or "group" (as defined in Section 13(d) of the Securities Exchange Act of 1934, as amended), by way of sale, transfer or other acquisition, of all or substantially all of the assets or properties of the Cobra Member Parent or any successor thereto; or (b) the acquisition by any Independent Third Party or "group" (as defined in Section 13(d) of the Securities Exchange Act of 1934, as amended) of a majority of the equity securities of the Cobra Member Parent or any successor thereto (whether by merger, consolidation or otherwise).

"***SEC***" means the United States Securities Exchange Commission.

"***Securities Act***" means the Securities Act of 1933, as amended.

"***Subject Entities***" has the meaning ascribed to such term in the Framework Agreement.

"***Subsidiary***" of a Person means any other Person of which (a) fifty percent (50%) or more of the voting power represented by the outstanding capital stock or other voting securities or interests having voting power under ordinary circumstances to elect directors or similar members of the governing body of such Person or (b) fifty percent (50%) or more of the equity interests in such Person shall at the time be owned or Controlled, directly or indirectly, by such other Person and/or by one or more of its Subsidiaries.

"***Substituted Member***" means a Person who is admitted as a Member of the Company, at such time as such Person has complied with the requirements of <u>Section 3.12</u>, in place of and with all the rights and obligations of the Member making the Transfer with respect to the Membership Interests so Transferred and who is shown as a Member on the books and records of the Company.

"***Supermajority Approval***" means, with respect to any matter submitted for the vote or consent of the Board of Directors, the affirmative vote or consent of more than seventy-five percent (75%) of the total voting power of the Board of Directors as then composed in accordance with <u>Section 6.4(b)</u>, including at least one Bugatti Director; *provided*, *however*, that if the Bugatti Member is in Bugatti Default, the Directors entitled to vote on such matter shall only consist of the Cobra Directors.

"***Territory***" means anywhere in any country (a) in which any of the Company or its Subsidiaries conducts material business or has customers, or has actively planned to engage in business or have customers, in each case at any time while the Members owned any Membership Interests, including, for the avoidance of doubt, the countries listed on <u>Exhibit D</u> and (b) listed on <u>Exhibit E</u>.

"***Transaction Documents***" has the meaning ascribed to such term in the Framework Agreement.

"***Transfer***" or "***Transferred***" means, with respect to any Membership Interests, a direct or indirect (through any number of intermediary holding companies where (a) in the case of the Cobra Member, the Cobra Member ceases to be a wholly-owned and controlled Affiliate (directly or indirectly) of the Cobra Member Parent or (b) in the case of the Bugatti Member, the Bugatti Member ceases to be a wholly-owned and controlled Affiliate (directly or indirectly) of the Bugatti Member Parent), voluntary or involuntary sale (including a division, a merger or consolidation), assignment, transfer, conveyance, exchange, devise, gift, or any other alienation (in each case, with or without consideration) of any rights, interests, or obligations with respect to all or any portion of such Membership Interests; *provided*, *however*, that <u>Section 3.7</u> shall govern the granting of Security Interests and any foreclosure thereon, acceptance of an assignment thereof or enforcement action related thereto; *provided further*, that changes in ownership of the Cobra Member Parent or the Bugatti Member Parent shall not be deemed Transfers.

"***Transferee***" means a Person who receives a Member's Membership Interests through a Transfer in accordance with this Agreement.

"***Treasury Regulations***" means pronouncements, as amended from time to time, or their successor pronouncements, which clarify, interpret and apply the provisions of the Code, and which are designated as "Treasury Regulations" by the United States Department of the Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Construction</u>. The headings and captions herein are inserted for convenience of reference only and are not intended to govern, limit, or aid in the construction of any term or provision hereof. It is the intention of the Members that every covenant, term, and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any Member (notwithstanding any rule of Law requiring an agreement to be strictly construed against the drafting Member), it being understood that the Members are sophisticated and have had adequate opportunity and means to retain counsel to represent their interests and to otherwise negotiate the provisions of this Agreement. Further, unless the context requires 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;(a) terms defined in <u>Section 1.1</u> or elsewhere in this Agreement have the meanings assigned to them in that Section for purposes 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) the gender (or lack of gender) of all words used in this Agreement includes the masculine, feminine, and neuter;

&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) references to Articles and Sections (other than in connection with the Code, other Law, the Treasury Regulations or the Act) refer to Articles and Sections, respectively, of this Agreement unless otherwise indicated by the context 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;(d) the words "herein," "hereof," "hereunder," and other words of similar import refer to this Agreement as a whole and not to any particular Article or Section;

&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) "include," "includes," and "including" mean "include, without limitation," "includes, without limitation," and "including, without limitation," respectively;

&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) terms defined herein include the plural as well as the singular;

&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) all references to Exhibits are to Exhibits attached to this Agreement, each of which is made a part of this Agreement for all 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;(h) "or" is not exclusive; 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;(i) 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.

Article 2<u><br> Organization</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Organization</u>. The Company was formed as a Delaware limited liability company by the filing of the Certificate of Formation of the Company (the "***Certificate***") in the office of the Secretary of State of the State of Delaware pursuant to the Act on [●], 2025. The Members desire to continue the Company for the purposes and upon the terms and conditions hereinafter set forth. Except as provided herein, the rights, duties, and liabilities of each Member shall be as provided in the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Business</u>. The Company is engaged in the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Name</u>. The name of the Company is "[●] LLC", and all Company business must be conducted in that name or such other names that comply with Law and as the Board of Directors may select in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Registered Office; Registered Agent; Principal Office; Other Offices</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) The registered office of the Company required by the Act to be maintained in the State of Delaware shall be the office of the registered agent for service of process named in the Certificate or such other office (which need not be a place of business of the Company) as the Board of Directors may designate in the manner provided by Law and pursuant to 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;(b) The registered agent for service of process of the Company in the State of Delaware shall be the registered agent for service of process named in the Certificate or such other Person or Persons as the Board of Directors may designate in the manner provided by Law and pursuant to 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) The principal office of the Company in the United States shall be located at 920 Memorial City Way, Suite 300, Houston TX 770204, or such other place as the Board of Directors, in accordance with the terms of this Agreement, may from time to time designate, which need not be in the State of Delaware. The Company may have such other offices as the Board of Directors may designate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Purpose; Powers</u>. The purposes of the Company shall be to conduct any and all lawful activities that may be conducted by a limited liability company under the Laws of the State of Delaware. The Company shall possess and may exercise all such powers and privileges granted by the Act, by any other Law, or by this Agreement, and any powers incidental thereto as are necessary or convenient to the conduct, promotion, or attainment of the foregoing purposes of the Company. Notwithstanding anything herein to the contrary, nothing set forth herein shall be construed as authorizing the Company to possess any purpose or power, or to do any act or thing, forbidden by law to a limited liability company organized under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Foreign Qualification</u>. Prior to the Company's conducting of business in any jurisdiction other than the State of Delaware, the Board of Directors shall cause the Company to comply, to the extent procedures are available and those matters are reasonably within the control of the Board of Directors, with all requirements necessary to qualify the Company as a foreign limited liability company in that jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Term</u>. The term of the Company as a Delaware limited liability company commenced on the date of the filing of the Certificate in the office of the Secretary of State of the State of Delaware, and the Company's existence shall be perpetual, unless and until the Company is dissolved in accordance with <u>Article 9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>No State Law Partnership</u>. No provision of this Agreement shall be interpreted so as to deem or construe the Company as a partnership (including a limited partnership) or joint venture or any Member as a partner or joint venturer of any other Member for any purposes other than U.S. federal and applicable state and local income tax purposes, and the Company and each Member shall file all income tax returns and shall otherwise take all applicable tax and financial reporting positions in a manner consistent with such treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Title to Company Assets</u>. Title to the Assets, whether real, personal, or mixed and whether tangible or intangible, shall be deemed to be owned by the Company as an Entity, and no Member, Director, or Officer, individually or collectively, shall have any ownership interest in the Assets or any portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>No Liability</u>. No Member will have any liability for any obligations or liabilities of the Company, whether such liabilities arise in contract, tort, or otherwise, except to the extent that any such liabilities or obligations are expressly assumed in writing by such Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Mergers and Exchanges</u>. Except as otherwise provided in this Agreement or prohibited by Law, but subject to approval by the Board of Directors as provided herein, the Company may be a party to any merger, share exchange, consolidation, exchange, or acquisition or any other type of reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Competitive Activities</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) Except as otherwise provided in <u>Section 3.19</u>, no Member or other Indemnitee, or any of their respective Subsidiaries, Affiliates, or equity investees, shall be expressly or implicitly restricted or proscribed pursuant to this Agreement, by Law, or otherwise, from engaging in other activities for profit, including any business or activity engaged in by the Company, any Member, or any of their respective Subsidiaries, Affiliates, or equity investees or anticipated to be engaged in by the Company, any Member or any of their respective Subsidiaries, Affiliates, or equity investees. Without limitation of the foregoing, (a) nothing in this Agreement shall be construed to require any Director to manage the Company or any of its Subsidiaries, Affiliates, or equity investees as his or her exclusive function, (b) nothing in this Agreement shall be construed to require any Officer to serve as an officer of the Company or any of its Subsidiaries, Affiliates, or equity investees as his or her exclusive function, (c) any Director or Officer may also be a director or officer of the Company's Subsidiaries, the Members, or any of the Members' Affiliates, Subsidiaries or equity investees, and (d) except as otherwise provided in <u>Section 3.19</u>, each Member, other Indemnitee, and their respective Subsidiaries, Affiliates, and equity investees shall have the right to engage in businesses of every type and description and to engage in and possess an interest in other business ventures of any and every type or description, independently or with others, including business interests and activities which may be in direct competition with the Company, any Member, or any of their respective Subsidiaries, Affiliates, or equity investees, and none of the same shall be deemed wrongful or improper or shall breach any duty, express or implied, to the Company, any Member, or any of their respective Subsidiaries, Affiliates, or equity investees. None of the Company, the Members, or any other Person shall have any rights by virtue of this Agreement or the relationship created hereby, by Law, or otherwise, in any business ventures any Member, any other Indemnitee or any of their respective Subsidiaries, Affiliates, or equity investees, or to the income or proceeds derived therefrom, and such Members, other Indemnitees and their respective Subsidiaries, Affiliates, and equity investees shall have no obligation to offer any interest in any such business ventures to the Company, any Member, or any of their respective Subsidiaries, Affiliates, or equity investees or any other Person. The legal doctrines of "corporate opportunity," "business opportunity," and similar doctrines will not apply to any Member, any other Indemnitee or any of their respective Subsidiaries, Affiliates, or equity investees or any of their respective business ventures.

&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) <u>Section 2.12(a)</u> shall not in any way affect, limit or modify any Liabilities of any Person under any Transaction Documents or any pre-existing employment agreement, consulting agreement, confidentiality agreement, noncompete agreement, restrictive covenant agreement, or any similar agreement with the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>No Power to Bind Company or Other Members</u>. A Member or Affiliate of a Member may not take any action purporting to bind the Company, any other Member, or their respective Affiliates, except as expressly provided in this Agreement. None of the Members is an agent, employee, contractor, vendor, representative or, (except for tax purposes) partner of any other Member or its Affiliates by virtue of its execution of this Agreement, and a Member may not hold itself out as such.

Article 3<u><br> Members; Certificates; Issuance and Transfer of Membership Interests</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Members</u>. The number of Members of the Company shall never be fewer than one (1). The Members as of the Effective Date are the Initial Members. Additional Members may be admitted to the Company either as additional Members or Substituted Members only as provided in <u>Section</u> <u>3.12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Membership Interests; Percentage Interests</u>. Subject to <u>Section</u> <u>3.3</u>, the Board of Directors may cause the Company to create and issue New Interests to any Member or other Person. The Membership Interests shall comprise a single class, and the Members shall vote in accordance with their respective Percentage Interest with respect to any matter submitted for the vote or consent of the Members. The Percentage Interest held by each Member is set forth on <u>Exhibit F</u> hereto, which exhibit shall be amended or supplemented by the Board of Directors as required to reflect changes and adjustments made from time to time in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Pre-Emptive Rights</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) The Company shall only issue equity interests, including any convertible instruments, options, or warrants, in the Company or its Subsidiaries (collectively, the "***New Interests***"), including any Excluded Issuance described in clause (i) of the definition of Excluded Issuance, with Supermajority Approval and the prior written consent of each Member. Subject to the immediately preceding sentence, prior to the Company or its Subsidiaries issuing, other than through an Excluded Issuance, (y) any New Interests or (z) indebtedness for borrowed money (excluding, for the avoidance of doubt, any trade account payables) ("***New Debt***"), in each case, to a proposed purchaser or lender (as applicable), which may be a Member or its Affiliates or any other Person (the "***Proposed Purchaser***"), each Eligible Purchaser shall have the right to purchase the New Interests or aggregate principal amount of the New Debt, as the case may be, as provided in this <u>Section 3.3</u>. "***Excluded Issuance***" means the issuances by the Company or its Subsidiaries of, and, for the avoidance of doubt, subject to Super Majority Approval and the prior written consent of each Member in accordance with this <u>Section 3.3(a)</u>, (i) any New Interests: (A) to any Person that is not a Member or an Affiliate thereof as consideration in any acquisition or other strategic transaction (such as a joint venture, marketing or distribution arrangement, or participation or development arrangement) approved by the Board of Directors in accordance with this Agreement; (B) that constitute profits interests, incentive interests or other similar interests issued to a Director, Officer, employee or another service provider of the Company or its Subsidiaries and that is approved by the Board of Directors as provided in <u>Section 6.13(m)</u>; (C) issued in connection with any split, distribution, merger, recapitalization or other reorganization of the Company; (D) to any lender in connection with any debt financing approved by the Board of Directors in accordance with this Agreement; or (E) issuable upon the conversion or exercise of rights in respect of any other equity interests issued by the Company or its Subsidiaries in accordance with, and subject to the terms of, this Agreement, (ii) any Member Loans requested by a Loan Request in accordance with <u>Section 4.2</u>, or (iii) intercompany indebtedness among the Company and its Subsidiaries which, for the avoidance of doubt, shall exclude any issuances by the Company or any of its Subsidiaries of any New Interests unless such New Interests are issued by a Subsidiary of the Company entirely to the Company or a Subsidiary 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;(b) The Company shall give each Eligible Purchaser at least ten (10) Business Days' prior notice (the "***Pre-emptive Notice***") of any proposed issuance of New Interests or New Debt, which notice shall set forth in reasonable detail the proposed terms and conditions thereof and shall offer to each Eligible Purchaser the opportunity to purchase its Percentage Interest (as of the date of such notice) of the New Interests or New Debt at the same price, on the same terms and conditions and at the same time as the New Interests or New Debt are proposed to be issued by the Company or its Subsidiary, as applicable. If any Eligible Purchaser wishes to exercise its preemptive rights granted under this <u>Section 3.3</u>, it must do so by delivering an irrevocable written notice to the Company within five (5) Business Days after delivery of the Pre-emptive Notice by the Company (the "***Election Period***"), which notice shall state the dollar amount of New Interests or New Debt such Eligible Purchaser (each a "***Requesting Purchaser***") would like to purchase up to a maximum amount equal to such Eligible Purchaser's Percentage Interest of the total offering amount *plus* the additional dollar amount of New Interests or New Debt such Requesting Purchaser would like to purchase in excess of its Percentage Interest, if any, if other Eligible Purchasers do not elect to purchase their entire Percentage Interest of the New Interests or New Debt.

&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) If not all of the New Interests or New Debt are subscribed for by the Eligible Purchasers, the Company or its Subsidiary, as applicable, shall have the right, but shall not be required, to issue and sell the unsubscribed portion of the New Interests or New Debt to the Proposed Purchaser, in each case, at any time during the ninety (90) Days following the termination of the Election Period pursuant to the same terms and conditions set forth in the Pre-emptive Notice. The Board of Directors may, in its reasonable discretion, impose such other reasonable and customary terms and procedures such as setting a closing date and requiring customary closing deliveries in connection with any pre-emptive rights offering. In the event any Eligible Purchaser refuses to purchase offered New Interests or New Debt for which it subscribed pursuant to the exercise of pre-emptive rights granted thereto under this <u>Section 3.3</u>, in addition to any other rights the Company may be permitted to enforce at law or in equity, such Eligible Purchaser and any Transferee of such Eligible Purchaser permitted by this Agreement shall not be considered an Eligible Purchaser for any future rights granted under this <u>Section 3.3</u> unless the Board of Directors expressly designates such Person as an Eligible Purchaser (which the Board of Directors, in its sole discretion, may do on an offer-by-offer basis or not at all).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Representations and Warranties</u>. Each Member hereby represents and warrants to the Company and each other Member that (a) it is duly formed, validly existing, and (if applicable) in good standing under the Laws of the state of its formation, and if required by Law is duly qualified to do business and (if applicable) is in good standing in the jurisdiction of its principal place of business (if not formed therein); (b) it has full corporate, limited liability company, partnership, trust, or other applicable power and authority to execute and deliver this Agreement and to perform its obligations hereunder and all necessary actions by its board of directors, shareholders, managers, members, partners, trustees, beneficiaries, or other Persons necessary for the due authorization, execution, delivery, and performance of this Agreement by that Member have been duly taken; (c) it has duly executed and delivered this Agreement, and this Agreement is enforceable against such Member in accordance with its terms, subject to bankruptcy, moratorium, insolvency, and other Laws generally affecting creditors' rights and general principles of equity (whether applied in a proceeding in a court of Law or equity); (d) its authorization, execution, delivery, and performance of this Agreement does not conflict with any material obligation under any other material agreement or arrangement to which that Member is a party or by which it is bound; and (e) it (i) is able to bear the economic risks of its investment in the Company and has (or its parent has) a sufficient net worth to sustain a loss of its entire investment in the Company in the event such loss should occur, (ii) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Company, (iii) is an "accredited investor" as defined under Regulation D of the Securities Act, and (iv) understands and agrees that its Membership Interests shall not be sold, pledged, hypothecated, or otherwise Transferred except in accordance with the terms of this Agreement and pursuant to an applicable exemption from registration under the Securities Act and other applicable securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Restrictions on Transfer</u>. No Member may Transfer any Membership Interests unless (a) such Transfer is permitted under <u>Section</u> <u>3.6</u> or (b) such Transfer is in accordance with <u>Section 3.8</u>. Any purported Transfer in contravention of this <u>Section 3.5</u> shall be null and void *ab initio*, and the Company shall not recognize any such Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Permitted Transfers</u>. A Member may Transfer its Membership Interests if such Transfer is (a) a Permitted Transfer; *provided*, that each Permitted Transferee shall, and the applicable Transferring Member shall cause such Permitted Transferee to, Transfer back to such Member (or to another Permitted Transferee of such Member) the Membership Interests it owns if such Transferee at any time after such Transfer ceases to be a Permitted Transferee of such Member, or (b) approved by the other Member, which approval may be withheld or conditioned in the other Member's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Security Interest</u>. Notwithstanding anything in this Agreement to the contrary, the Cobra Member or its Affiliates may, with prior written notice to the Bugatti Member, permit a Security Interest on any of the Cobra Member's Membership Interests or on the equity interests in the Cobra Member or its Affiliates without any consent or approval of the Board of Directors or any other Member if such Security Interest is required by the Cobra Member Parent's existing senior credit facility (or a replacement senior credit facility) and in favor of such credit facility's third party financial institution to secure indebtedness for borrowed money that is also secured by some or all of the Cobra Member's or its Affiliates' other assets. If the Cobra Member permits or grants any Security Interest on its Membership Interests or any Security Interest is permitted or granted on the equity interests in the Cobra Member or its Affiliates in accordance with this <u>Section 3.7</u>, then the occurrence of a foreclosure, acceptance of an assignment in lieu of foreclosure, or any other enforcement action involving the Transfer of all or any portion of the Membership Interests or other equity interests subject to the Security Interest and the subsequent sale by the creditor thereof (whether by public auction, private sale or otherwise) shall not be deemed to be a proposed Transfer of Membership Interests or such other equity interests subject to the Security Interest and shall not be restricted by this Agreement; *provided*, *however*, that (a) any Transfer as a result of a foreclosure or other enforcement action pursuant to this <u>Section 3.7</u> shall require the subsequent creditor to assume all rights and obligations in this Agreement, including all obligations to effect the Exit Option as set forth in <u>Section 3.8</u>; and (b) the Cobra Member and the Company shall provide prior written notice to the Bugatti Member of any such Transfer pursuant to this <u>Section 3.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Exit Option; Guaranty</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) At any time from and after the second (2<sup>nd</sup>) anniversary of the Effective Date: (i) the Bugatti Member shall have the right to sell to either the Company or the Cobra Member (as determined by the Cobra Member in its sole discretion) all, but not less than all, of the Bugatti Member's Membership Interests (the "***Exit Interests***"), and the Company and the Cobra Member, as applicable, shall have the obligation to purchase from the Bugatti Member the Exit Interests (the "***Put Right***"); and (ii) the Cobra Member shall have the right to purchase or cause the Company to purchase from the Bugatti Member (as determined by the Cobra Member in its sole discretion), and the Bugatti Member shall have the obligation to sell to the Company or the Cobra Member, as applicable, the Exit Interests (the "***Call Option***", and together with the Put Right, the "***Exit Option***"), in each case pursuant to the terms and subject to the conditions set forth in this <u>Section 3.8</u>. Notwithstanding the foregoing the Cobra Member may exercise the Call Option prior to the second (2<sup>nd</sup>) anniversary of the Effective Date, (A) at any time during a Bugatti Default Period pursuant to <u>Section 3.17</u>, and (B) if the Bugatti Member desires to undertake a Permitted Transfer described in clauses (b) or (c) of the definition of Permitted Transfer (a "***Bugatti Business Divestiture***"), within sixty (60) days following the date on which the Bugatti Member provides written notice to the Cobra Member of such Bugatti Business Divestiture, which notice the Bugatti Member shall provide to the Cobra Member as promptly as is reasonably practicable following execution of definitive agreements to effect such transaction (the events underlying foregoing clause (A) and (B), each a "***Cobra Accelerated Option Event***"). Notwithstanding the foregoing the Bugatti Member may exercise the Put Right prior to the second (2<sup>nd</sup>) anniversary of the Effective Date, (A) at any time during a Cobra Default Period pursuant to <u>Section 3.17</u>, and (B) if the Cobra Member or Cobra Member Parent desires to undertake a Sale of Cobra, within sixty (60) days following the date on which the Cobra Member provides written notice to the Bugatti Member of such Sale of Cobra, which notice the Cobra Member shall provide to the Bugatti Member as promptly as is reasonably practicable following execution of definitive agreements to effect such transaction (the events underlying foregoing clause (A) and (B), each a "***Bugatti Accelerated Put 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;(b) If the Bugatti Member desires to exercise the Put Right, or if the Cobra Member desires to exercise the Call Option, then, in either case, the Bugatti Member or the Cobra Member, as applicable, shall deliver written notice thereof (an "***Exit Notice***") to the other Members and the Company, which Exit Notice shall constitute an unconditional and irrevocable election to sell or purchase, as applicable, the Exit Interests for an amount in cash equal to the Exit 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;(c) The purchase price for the purchase and sale of the Exit Interests pursuant to the Exit Option (the "***Exit Price***") shall be an amount in cash equal to: (i) (A) the Percentage Interest represented by the Exit Interests *multiplied by* (B) an amount equal to the product of (x) six (6) and (y) the Adjusted EBITDA for the twelve (12)-month period ending on the calendar quarter end immediately preceding the month in which the Exit Notice is delivered (such product of <u>clauses (x)</u> and <u>(y)</u>, the "***Company Valuation***") *<u>minus</u>* (ii) the aggregate amount of any cash distributions received by the Bugatti Member prior to the consummation of the closing of the Transfer of the Exit Interests pursuant to the exercise of the Exit Option *<u>plus</u>* (iii) 35% of the Closing Cash Amount (as defined in the Framework Agreement) as finally determined in accordance with Section 3.6 of the Framework Agreement, *<u>minus</u>* (iv) an amount equal to the Deferred Payment (as defined in the Framework Agreement), *<u>minus</u>* (v) an amount equal to (A) the 2024 Saudi JV Dividend (as defined in the Framework Agreement) if not accounted for in the determination of the Deferred Payment pursuant to Section 3.4(b) of the Framework Agreement, *<u>plus</u>* (B) the 2025 Saudi JV Dividend (as defined in the Framework Agreement) if not accounted for in the determination of the Deferred Payment pursuant to Section 3.4(b) of the Framework Agreement, *<u>plus</u>* (C) in the event that the Closing Date (as defined in the Framework Agreement) occurs in calendar year 2026, the 2026 Saudi JV Dividend (as defined in the Framework Agreement), *<u>plus</u>* (vi) $1,000,000. All outstanding Member Loans made by the Bugatti Member to the Company pursuant to <u>Section 4.2</u> shall be repaid in full at the closing of the Transfer of the Exit Interests pursuant to the exercise of the Exit Option. Notwithstanding the foregoing, (x) if the Call Option is exercised by the Cobra Member, then the Company Valuation shall not be less than $530,000,000 (the "***Valuation Floor***") nor greater than $660,000,000 (the "***Valuation Ceiling***") and (y) if the Put Right is exercised by the Bugatti Member, then the Company Valuation shall not be greater than the Valuation Ceiling; *provided*, that if the Call Option is exercised by the Cobra Member following a Cobra Accelerated Option Event, then the Company Valuation shall be equal to the Valuation Floor; *provided*, *further*, that if the Put Right is exercised by the Bugatti Member following a Bugatti Accelerated Put Event, then the Company Valuation shall be equal to the Valuation Ceiling.

&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) Within twenty (20) Business Days following delivery of the Exit Notice by either the Bugatti Member or the Cobra Member, the Cobra Member shall prepare and deliver to the Bugatti Member a statement setting forth the Cobra Member's good faith determination of the Company Valuation and the resulting Exit Price (the "***Preliminary Exit Statement***"), together with reasonable supporting documentation. Within twenty (20) Business Days following receipt of the Preliminary Exit Statement, the Bugatti Member may deliver written notice to the Cobra Member of any dispute it has with respect to the preparation or content of the Preliminary Exit Statement, together with a reasonably detailed description of each such disputed item and reasonable supporting documentation (a "***Dispute Notice***"); *provided*, *however*, that if an Exit Notice is delivered and (i) a Cobra Accelerated Option Event has occurred, then the Exit Price shall be based on a Company Valuation equal to the Valuation Floor and the Company Valuation shall not be subject to dispute by the Bugatti Member and (ii) a Bugatti Accelerated Put Event has occurred, then the Exit Price shall be based on a Company Valuation equal to the Valuation Ceiling and the Company Valuation shall not be subject to dispute by the Cobra Member. If the Bugatti Member fails to timely deliver such Dispute Notice, then the Preliminary Exit Statement shall be deemed final and binding on the Company, the Bugatti Member and the Cobra Member for all purposes of the Exit Option. If the Bugatti Member timely delivers a Dispute Notice, then the Bugatti Member and the Cobra Member shall negotiate in good faith to resolve each such disputed item described in the Dispute Notice. Any amount, determination or calculation contained in the Preliminary Exit Statement and not disputed in a timely delivered Dispute Notice shall be irrevocably final, conclusive and binding on the Company and the Members.

&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) If all such disputes have not been resolved prior to the date that is thirty (30) Days following delivery of the Dispute Notice, then either the Bugatti Member or the Cobra Member may refer such remaining disputed items for resolution by Deloitte LLP (or if such Person does not agree to so serve within ten (10) Days after written request from the Bugatti Member or the Cobra Member, as applicable, to serve, then such alternative internationally recognized accounting firm as the Bugatti Member and the Cobra Member may agree and that agrees to so serve, or if the Bugatti Member and the Cobra Member are unable to agree on a Person that agrees to so serve, then any Member may request that the American Arbitration Association select such Person to so serve) (the "***Accountant***"). In connection with the engagement of the Accountant, each Member will execute such engagement, indemnity and other agreements as the Accountant and the American Arbitration Association, if applicable, may reasonably require as a condition to such engagement. The Accountant's determination shall be based solely on (i) the provisions of this <u>Section 3.8</u> and the defined terms used herein and (ii) the written submissions provided by each of the Bugatti Member and the Cobra Member to the Accountant within ten (10) Days following the Accountant's selection (and without independent investigation on the part of the Accountant). The Accountant's determination shall be limited to only those items in dispute and shall take into account any items previously agreed by the Members or deemed final by the terms of this Agreement. The Members shall instruct the Accountant to make its determination in accordance with the position of, and not be in excess of, the higher, nor less than the lower, of the amounts advocated by either the Bugatti Member or the Cobra Member. In resolving such dispute, the Accountant will act as an expert and not an arbitrator and will resolve such dispute by selecting either the position submitted by the Bugatti Member or the position submitted by the Cobra Member, in either case, to the Accountant pursuant to this <u>Section 3.8(e)</u>. The Accountant may not award damages or penalties. Each Member will bear its own legal fees and other costs of presenting its case to the Accountant. The fees and expenses of the Accountant and (if applicable) the American Arbitration Association incurred in resolving such disputed matters shall be paid by the Person whose position is not selected by the Accountant in accordance with this <u>Section 3.8(e)</u>. The determination of the Accountant with respect to such dispute, absent manifest clerical error or fraud, will be irrevocably final, conclusive and binding on the Members. Each Member agrees that it shall not have any right to, and shall not, institute a legal proceeding of any kind challenging such determination or relating to the matters that are the subject of this <u>Section 3.8</u>, except that the foregoing shall not preclude a legal proceeding to enforce such determination.

&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) Within thirty (30) Days following the final determination of the Exit Price in accordance with this <u>Section 3.8</u>, the Bugatti Member and either the Company or the Cobra Member, as applicable, shall execute and deliver a purchase and sale agreement substantially in the form attached hereto as <u>Exhibit G</u> for the purchase of the Exit Interests. The closing of the Transfer of the Exit Interests pursuant to the exercise of the Exit Option shall occur as soon as reasonably practicable following final determination of the Exit Price in accordance with this <u>Section 3.8</u> at the Company's principal office, unless the Bugatti Member and the Cobra Member otherwise agree in writing. At the closing, the Exit Price applicable to the Exit Interests to be purchased by the Company or the Cobra Member, as applicable, shall be delivered to the Bugatti Member (by wire transfer in immediately available funds) to an account specified in writing by the Bugatti Member. Upon consummation of the closing of the Transfer of the Exit Interests pursuant to the exercise of the Exit Option, the Bugatti Member shall cease to be a Member and shall have no further rights 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;(g) To induce the Bugatti Member to enter into the Framework Agreement and for other good and valuable consideration, the Cobra Member Parent (the "***Guarantor***") shall unconditionally, absolutely and irrevocably, serve as the guarantor for the due and punctual payment when due of the Cobra Member's or the Company's obligation to pay the Exit Price pursuant to and in accordance with this <u>Section 3.8</u> (the "***Guaranteed Obligation***"). All payments hereunder shall be made in lawful money of the United States, in immediately available funds. This guaranty may not be revoked or terminated and shall remain in full force and effect and shall be binding on the Guarantor and its successors and assigns until the Guaranteed Obligation has been satisfied in full. Notwithstanding the foregoing, this guaranty shall terminate and the Guarantor shall have no further obligations under this guaranty as of the earlier of either (i) the satisfaction or waiver in full of the Guaranteed Obligation or (ii) a written agreement signed by each of the Bugatti Member and the Cobra Member terminating this limited guaranty.

&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) In the event the Cobra Member and its Permitted Transferees or the Bugatti Member and its Permitted Transferees fail or refuse to execute any of such instruments to effect the Exit Option, the Bugatti Member or the Cobra Member, as applicable, may seek specific performance to obtain an irrevocable power of attorney, coupled with an interest, which shall be binding on the Cobra Member and its Permitted Transferees or the Bugatti Member and its Permitted Transferees, as applicable, as to all third parties, to execute and deliver on behalf of the Cobra Member and its Permitted Transferees or the Bugatti Member and its Permitted Transferees, as applicable, all such required instruments of transfer. If granted, such power of attorney shall survive and not be affected by the subsequent disability, incapacity, dissolution or termination of the Cobra Member or its Permitted Transferees or the Bugatti Member and its Permitted Transferees, as applicable. The Members acknowledge and agree that in the event the Cobra Member or its Permitted Transferees or the Bugatti Member or its Permitted Transferees, as applicable, fails to perform its obligations in connection with this <u>Section 3.8</u>, in addition to any other remedies available at Law or in equity, the Bugatti Member or the Cobra Member, as applicable, shall have the right to seek specific performance by the Cobra Member or its Permitted Transferees or the Bugatti Member or its Permitted Transferees, as applicable, of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Transfer Taxes</u>. Any transfer or similar taxes involved in any Transfer shall be paid by the Member making such Transfer, and the Member making such Transfer shall provide the Transferee with such evidence of the authority of the Member making such Transfer to Transfer hereunder. The Member making the Transfer shall file or cause to be filed all applicable transfer tax returns and other documentation with respect to such transfer taxes, and, if and only to the extent expressly required by applicable Law, the Company and each non-Transferring Member shall join in the execution of any such transfer tax returns and other documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>No Release</u>. No Transfer of any Membership Interests shall effect a release of the Member making such Transfer (or its applicable Affiliates) from any liabilities or obligations to the Company or the other Members that accrued prior to such Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Documentation; Validity of Transfer; Conditions</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) The Company shall not recognize for any purpose any purported Transfer of any Membership Interests otherwise permitted by this Agreement unless and until the Company has received a joinder substantially in the form attached hereto as <u>Exhibit H</u> (a "***Joinder***") executed by the applicable Transferee (if such Transferee is not already a party 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;(b) Each Transfer and, if applicable, admission complying with the provisions of this <u>Section 3.11</u> shall be effective against the Company as of the first (1<sup>st</sup>) Business Day of the calendar month immediately succeeding the calendar month in which both (i) the Company has received the Joinder, if applicable, and (ii) the other requirements in this <u>Section 3.11</u> have been satisfied; *provided*, *however*, that, absent such receipt and satisfaction, the Company shall not be bound or otherwise affected by any purported Transfer of any Membership 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;(c) The Company shall be entitled to be reimbursed by a Member making a Transfer for the reasonable and documented administrative out-of-pocket costs and expenses incurred by the Company to effect a Transfer with respect to such Member's Membership Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Additional Members; Substituted Members</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) Additional Persons may be admitted to the Company as Members in connection with an issuance of Membership Interests made in compliance with this Agreement and with the prior written consent from both the Bugatti Member and the Cobra Member. Any Transferee of Membership Interests pursuant to a Transfer made in accordance with <u>Section 3.5</u> shall be admitted automatically as a Substituted Member with respect to the Transferred Membership Interests upon compliance with the applicable provisions of <u>Section 3.11</u> with respect to such 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;(b) Unless and until a Transferee is admitted as a Member, such Transferee shall have no right to exercise any of the powers, rights, or privileges of a Member hereunder. Upon becoming a Substituted Member, (i) such Substituted Member shall have all of the powers, rights, privileges, duties, obligations, and liabilities of a Member, as provided in this Agreement and by Laws, and (ii) the Member who Transferred the Membership Interests shall cease to be a Member in respect of the Membership Interests so Transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>Information; Confidentiality</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) The Bugatti Member acknowledges that, from time to time, it may receive Confidential Information, the improper use or disclosure of which may be damaging to the Company, its Subsidiaries, Affiliates, or investees. The Bugatti Member agrees to keep the Confidential Information strictly confidential and not to disclose any Confidential Information to any Person except as expressly provided in this <u>Section 3.13</u> or <u>Section 10.15</u> or as otherwise approved in writing in advance by the Board of Directors.

&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) Notwithstanding the provisions of <u>Section 3.13(a)</u>, the Bugatti Member may disclose Confidential Information to its Representatives who need to know such Confidential Information but only if such Representatives have agreed to be bound by the provisions of this <u>Section 3.13</u> or are otherwise subject to a duty of confidentiality. The Bugatti Member shall ensure that all of its Representatives to whom Confidential Information is disclosed comply with the requirements of this <u>Section 3.13</u>. The Bugatti Member agrees and acknowledges that it shall be held accountable for disclosures in contravention of this <u>Section 3.13</u> by 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) Notwithstanding anything to the contrary set forth herein, it is understood that the Bugatti Member or its Representatives may be compelled to disclose Confidential Information (or portions thereof) (i) pursuant to subpoena or other Court process, or in connection with litigation or arbitration or any regulatory proceeding or investigation, (ii) at the express direction of any authorized government agency or Government Authority, with jurisdiction over the Bugatti Member or its Representatives, or (iii) as otherwise required by Law, order, regulation or ruling or stock exchange rules. If the Bugatti Member becomes compelled, in the opinion of its legal counsel, pursuant to one of the foregoing reasons to disclose any of the Confidential Information, to the extent it is not prohibited from doing so by Law, the Bugatti Member will provide the Cobra Member and the Company with timely written notice so that the Cobra Member or the Company, as applicable, may seek a protective order or other appropriate remedy, at its sole cost and expense. If such protective order or other remedy is not obtained, the Bugatti Member will furnish only that portion of the Confidential Information that it is required to disclose as advised by its counsel; *provided*, *however*, that the Bugatti Member or its Representatives, as applicable, shall use its commercially reasonable efforts to assure that, to the extent possible, confidential treatment will be accorded to any such Confidential Information disclosed.

&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) Excluding all Confidential Information provided to the Bugatti Member pursuant to its information rights hereunder and information provided to the Bugatti Director by the Company in the course of the Bugatti Director's duties, in each case, while such Bugatti Member remains a Member or has the right to designate a Director pursuant to <u>Section 6.2(a)(ii)</u>, upon the written request of the Company, the Bugatti Member shall promptly return to the Company or destroy (at the Bugatti Member's discretion) all items containing or constituting Confidential Information, together with all copies, extracts, or summaries thereof; *provided*, *however*, that any Confidential Information need not be returned or destroyed if (i) found in electronic format as part of the Bugatti Member's or its Representatives' off-site or on-site data storage/archival process, (ii) the Bugatti Member is required to retain such information pursuant to Law, order, or stock exchange rules, or (iii) the Bugatti Member (or any of its Affiliates) is required to retain such information to perform its obligations under any Transaction Document. Any oral Confidential Information or any Confidential Information that is not returned or destroyed pursuant hereto shall remain subject to 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;(e) The Bugatti Member acknowledges that a breach of the provisions of this <u>Section 3.13</u> may cause irreparable injury to the Cobra Member, the Company or their respective Affiliates or investees for which monetary damages are inadequate, difficult to compute, or both. Accordingly, the Bugatti Member agrees that the provisions of this <u>Section 3.13</u> may be enforced by injunctive action or specific performance, and the Bugatti Member hereby waives any requirement to post bond in connection with any injunctive order or order for specific performance.

&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) The Members acknowledge that, from time to time, the Company may need information from any or all of such Members, including for complying with various applicable Law. Each Member shall provide to the Company all information reasonably requested by the Company for purposes of complying with applicable Law or for purposes of providing information to Governmental Authorities, in each case within a reasonable amount of time from the date such Member receives such request; *provided*, *however*, that no Member shall be obligated to provide such information to the Company to the extent such disclosure (i) could reasonably be expected to result in the breach or violation of any contractual obligation (if a waiver of such restriction cannot reasonably be obtained) or Law or (ii) involves secret, confidential, or proprietary information; and *provided*, *further*, *however*, that in the alternative, any Member may provide such information directly to such Governmental Authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>Non-Disparagement</u>. Each Member agrees and covenants that it shall not at any time make, publish, or communicate to any Person with the intent or reasonable expectation that such communication will be made public or make in any public forum, in each case, any defamatory, or maliciously false, or disparaging remarks, comments, or statements concerning another Member, the Company or their respective businesses, or any of their respective employees, officers, or directors and their respective existing customers, suppliers, and investors. Notwithstanding the foregoing, nothing in this <u>Section</u> <u>3.14</u> shall prohibit any Member from making truthful statements when required by Law or in connection with its pursuit of remedies available to it pursuant to this Agreement, the Transaction Documents or any other agreement between or among the Members or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>Withdrawal</u>. Each Member hereby covenants and agrees that it will not resign from the Company as a Member except in connection with a Transfer made in compliance with this Agreement. A Member shall not cease to be a Member as a result of the Bankruptcy of such Member or as a result of any other events specified in Section 18-304 of the Act. So long as a Member continues to hold any Membership Interests, such Member shall not have the ability to withdraw or resign as a Member prior to the dissolution and winding up of the Company, and any such withdrawal or resignation or attempted withdrawal or resignation by a Member prior to the dissolution or winding up of the Company shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>Fair Market Value</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) Fair Market Value shall be determined by the Board of Directors in good faith; *provided*, *however*, that if a Member does not agree with the determination of the Fair Market Value within ten (10) Days following the date on which the Board of Directors determined such Fair Market Value, then such Member, by giving written notice to the other Members or the Board of Directors, respectively, may require the determination of Fair Market Value to be made by an independent appraiser specified in such written 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;(b) If, within ten (10) Days following receipt of the notice described <u>Section 3.16(a)</u>, any Member objects in writing to the independent appraiser specified in such notice, and the Members otherwise fail to agree on an independent appraiser, any Member may in writing request the American Arbitration Association to appoint an independent appraiser qualified by his or her education, training, and experience in the oil field services industry to determine Fair Market Value, whose selection of the independent appraiser shall be final and binding on all Members and the Company. If the independent appraiser chosen in accordance with this <u>Section 3.16</u> shall die, resign, or otherwise fail or become unable to serve as independent appraiser, a replacement independent appraiser shall be chosen in accordance with this <u>Section 3.16</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) The Board of Directors shall provide the independent appraiser with all information and data reasonably necessary to make a determination of Fair Market Value, subject to a customary confidentiality agreement. The independent appraiser shall be required to report to the Members and the Board of Directors its determination of Fair Market Value within thirty (30) Days after appointment, and such determination shall be final and binding on all Members and the Company. The Members shall pay the appraisal and Court costs in appointing an appraiser in proportion to their Percentage Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>Defaulting Member</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) If a Bugatti Default actually occurs (which, for the avoidance of doubt, no Bugatti Default shall be deemed to have actually occurred unless the Bugatti Member fails to cure (if capable of being remedied or cured) within the thirty (30) Day period after the Bugatti Member's receipt of written notice thereof from the Company or any other Member as provided in the definition of "Bugatti Default"), then the Bugatti Member shall be deemed to be in Bugatti Default until such time as such Bugatti Default has been remedied or otherwise cured (if capable of being remedied or cured) to the reasonable satisfaction of the Board of Directors acting reasonably and not in bad faith (such time period from when a Bugatti Default actually occurs in accordance with the definition of "Bugatti Default", until such time as such Bugatti Default has been remedied or otherwise cured in accordance with this <u>Section 3.17</u>, the "***Bugatti Default Period***"). During the Bugatti Default Period, the Company and the Cobra Member shall be entitled to pursue all rights and remedies available under this Agreement, or otherwise at law or in equity, against the Bugatti Member in respect of any Bugatti Default. In addition, during the Bugatti Default Period, (x) the Cobra Member will be entitled to exercise the Call Option in accordance with <u>Section 3.8</u> regardless of whether the second (2<sup>nd</sup>) anniversary of the Effective Date has occurred as of such time and (y) the Bugatti Member, its Affiliates and any Director designated by the Bugatti Member shall have no right 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) except for the Bugatti Member's (or the Bugatti Director's) rights under <u>Section 10.13(b)</u>, vote on or make decisions with respect to any matter for which the approval of the Board of Directors or any Member is required under the express terms of this Agreement, and in each such case, the Membership Interests of the Bugatti Member shall be disregarded for purposes of Majority Approval and Supermajority Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) receive distributions from 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) request or call any meeting of the Board of Directors; 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;(iv) exercise rights of an Eligible Purchaser pursuant to <u>Section 3.3</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) If a Cobra Default actually occurs (which, for the avoidance of doubt, no Cobra Default shall be deemed to have actually occurred unless the Cobra Member fails to cure (if capable of being remedied or cured) within the thirty (30) Day period after the Cobra Member's receipt of written notice thereof from the Bugatti Member as provided in the definition of "Cobra Default"), then the Cobra Member shall be deemed to be in Cobra Default until such time as such Cobra Default has been remedied or otherwise cured (if capable of being remedied or cured) to the reasonable satisfaction of the Bugatti Member acting reasonably and not in bad faith (such time period from when a Cobra Default actually occurs in accordance with the definition of "Cobra Default", until such time as such Cobra Default has been remedied or otherwise cured in accordance with this <u>Section 3.17</u>, the "***Cobra Default Period***"). During the Cobra Default Period, the Bugatti Member shall be entitled to pursue all rights and remedies available under this Agreement, or otherwise at law or in equity, against the Cobra Member in respect of any Cobra Default. In addition, during the Cobra Default Period, the Bugatti Member will be entitled to exercise the Put Right in accordance with <u>Section 3.8</u> regardless of whether the second (2<sup>nd</sup>) anniversary of the Effective Date has occurred as of such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 <u>Compliance with Law; Regulatory 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) Each Member agrees that, in connection with its ownership of Membership Interests, it will not Knowingly engage in the following transactions in violation of any applicable Laws and the Cobra Member further agrees that it will cause the Company to not Knowingly engage in the following transactions in violation of any applicable Laws: (i) pay or offer to pay directly or indirectly, to any domestic or foreign government official or employee amounts in order to obtain business, retain business, or direct business to others, or for the purpose of inducing such government official or employee to fail to perform or to perform improperly his official functions; (ii) receive, pay, or offer anything of value, directly or indirectly, from or to any private party in the form of a commercial bribe, influence payment, or kickback for any such purpose; or (iii) use, directly or indirectly, any funds or other Assets, or proceeds from such Member's investment in the Membership Interests, for any unlawful purpose including political contribution in violation of any applicable Laws. For purposes of this <u>Section 3.18</u>, a Member will be deemed to have "***Knowingly***" engaged if (x) in the case of the Cobra Member, the individuals listed on <u>Exhibit I</u> have actual knowledge, after reasonable inquiry of their direct reports, of the applicable fact, event or circumstance, (y) in the case of the Bugatti Member, the individuals listed on <u>Exhibit I</u> have actual knowledge, after reasonable inquiry of their direct reports, of the applicable fact, event or circumstance, and (z) in the case of the Company, the individuals listed on <u>Exhibit I</u> have actual knowledge, after reasonable inquiry of their direct reports, of the applicable fact, event or circumstance.

&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) (i) The Company shall, and shall cause each of its Subsidiaries and Affiliates and shall use commercially reasonable efforts to cause any of their respective directors, officers, managers, employees, independent contractors, representatives or agents (each, a "***Related Person***") to, comply in all material respects with all applicable economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (A) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (B) the European Union or His Majesty's Treasury of the United Kingdom, or other sanctions authorities (collectively, "***Sanctions***"). The Company shall not Knowingly engage in any activity that would reasonably be expected to result in the Company or any Related Person of the Company (1) being listed in any Sanctions-related list of designated persons maintained by the Office of Foreign Assets Control of the U.S. Treasury Department or the U.S. Department of State, (2) operating, being organized or being resident in a country or region which is itself the subject or target of any Sanctions (each, a "***Sanctioned Country***"), or (3) becoming owned or controlled by any Person or Persons specified in (1) or (2) above or otherwise becoming the target of Sanctions (together, the "***Sanctioned Persons***"). The Company shall not Knowingly engage directly in any business or transactions with any Sanctioned Person or in any Sanctioned Country, or Knowingly engage in any indirect business or transactions with any Sanctioned Person or in any Sanctioned Country, in any manner that would result in the violation of Sanctions by the Company or its Subsidiaries, the Cobra Member or the Bugatti Member. (ii) The Company shall not Knowingly contravene any anti-money laundering laws, rules, regulations and orders of jurisdictions applicable to the Company, including, without limitation, the USA PATRIOT Act. (iii) The Company shall not Knowingly promise, authorize or make any payment to, or otherwise contribute anything of value to, directly or indirectly, any person or entity, in violation of the Foreign Corrupt Practices Act of 1977 (the "***FCPA***") or any other applicable anti-bribery or anti-corruption law including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other offer, gift, promise to give, or authorization of the giving of anything of value to any "Foreign Official" (as such term is defined in the FCPA) or any public international organization, foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA. (iv) The Company shall and shall cause each of its Subsidiaries and controlled Affiliates to maintain systems of internal controls (including, accounting systems, purchasing systems and billing systems) reasonably designed to ensure compliance with the FCPA or any other applicable anti-bribery or anti-corruption law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 <u>Non-Compete Covenant</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) From the Effective Date until the later of (i) the date that is the second (2<sup>nd</sup>) anniversary of the date on which the Bugatti Member ceases to hold Membership Interests (whether by the exercise of the Exit Option or otherwise), or (ii) the fourth (4<sup>th</sup>) anniversary of the Effective Date, the Bugatti Member Parent will not, and will cause its Affiliates not to, except through the conduct of the Company, engage in the Business, either directly or indirectly (including through Affiliates), alone or as a partner, joint venturer, member, consultant, agent, independent contractor, or equity interest holder of, or lender to, any Person or business in the Territory. For the avoidance of doubt, (A) Bugatti Member Parent's or its Affiliates' performance of their respective obligations under and in accordance with the terms of any of the Transition Services Agreement, any Baker Hughes Commercial Agreement, the Global Employee Services Agreement, the IP License Agreements, the IP Assignment Agreement, and the Trademark License Agreements (each as defined in the Framework Agreement) shall not be deemed a breach of this <u>Section 3.19(a)</u> and (B) nothing in this <u>Section 3.19(a)</u> shall prohibit or in any way limit the Bugatti Member Parent's or its Affiliates from undertaking the permitted activities set forth on <u>Schedule 3.19(a)</u>. From the Effective Date, for so long as the Bugatti Member continues to hold Membership Interests, the Cobra Member Parent will not, and will cause its Affiliates not to, conduct the Business, except through the Company, in any country set forth on <u>Exhibit D</u>; *provided*, *however*, that this <u>Section 3.19(a)</u> shall in no way limit the Cobra Member's or its Affiliates' conduct of the Business (I) with respect to the Current Cobra Wellhead Customers, or (II) in respect of any country appearing on both <u>Exhibit D</u> and <u>Exhibit E</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) Each of the Members and the Bugatti Member Parent and the Cobra Member Parent acknowledges and agrees that the geographic scope, scope of activity restrictions, and duration of the covenants contained in this <u>Section 3.19</u> are the result of arm's-length bargaining and are fair and reasonable in light of, among other things, (i) the nature and wide geographic scope of the Business, and the fact that the Business acquired by the Cobra Member or its Affiliate under the Framework Agreement or heretofore conducted by the Cobra Member or its Affiliates are intended to be marketed and provided throughout the geographic area that is subject to the restrictions in this <u>Section 3.19</u>; (ii) Bugatti Member Parent's and its Affiliates' level of control over and contact with the Business, and association with the Business's goodwill in all jurisdictions in which the Bugatti Member Parent and its Affiliates conduct business; (iii) Bugatti Member Parent and its Affiliates' knowledge of the confidential and proprietary information associated with the Business; (iv) the information of the Cobra Member and its Affiliates to which the Bugatti Member Parent will have access as a result of the Bugatti Member's right to appoint a Bugatti Director; and (v) the consideration that the Bugatti Member Parent and its Affiliates are directly or indirectly receiving in connection with the transactions contemplated by the Framework Agreement, and the goodwill and confidential and proprietary information that the Bugatti Member Parent and its Affiliates are directly or indirectly conveying and for which the Cobra Member or its Affiliate have paid pursuant to the Framework Agreement. Each of the Members and the Bugatti Member Parent further acknowledges and agrees that (y) the Bugatti Member Parent benefited directly or indirectly from the consummation of the transactions contemplated by the Framework Agreement, including entry into this Agreement, and (z) the restrictions set forth in this <u>Section 3.19</u> are not against public policy and do not impose any greater restraint than is necessary to protect the legitimate business interests of the Cobra Member, have been specifically negotiated by sophisticated commercial parties, and constitute a material inducement for the Cobra Member or its Affiliate to enter into the Framework Agreement and consummate the transactions contemplated by the Framework 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) The covenants and undertakings contained in this <u>Section 3.19</u> relate to matters that are of a special, unique, and extraordinary character, and a violation of any of the terms of this <u>Section 3.19</u> will cause irreparable injury to the Members, the amount of which will be impossible to estimate or determine and which cannot be adequately compensated. Accordingly, the remedy at Law for any breach of this <u>Section 3.19</u> will be inadequate. Therefore, the Company and/or the non-breaching Member will be entitled to a temporary and permanent injunction, restraining order, or other equitable relief from any court of competent jurisdiction in the event of any breach or threatened breach of this <u>Section 3.19</u> without the necessity of proving actual damage or posting any bond whatsoever. The rights and remedies provided by this <u>Section 3.19</u> are cumulative and in addition to any other rights and remedies which the Company and/or the non-breaching Member may have hereunder or at Law or in equity. It is the desire and intent of the Members and the Bugatti Member Parent and the Cobra Member Parent that the provisions of this <u>Section 3.19</u> be enforced to the fullest extent permitted under applicable Law; nonetheless, if any court of competent jurisdiction determines that any feature of this <u>Section 3.19</u> is unreasonable, arbitrary, or against public policy, then the Members and the Bugatti Member Parent and the Cobra Member Parent intend that such restrictions shall not be thereby terminated but shall be modified by such court to the minimum extent required so as to be valid and enforceable and, as so modified, to be fully enforced.

&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) Notwithstanding anything to the contrary in this <u>Section 3.19</u>, nothing in this Agreement shall prohibit or in any way limit a Member or its Affiliates (the "***Restricted Parties***") from (i) acquiring, owning or holding securities of another Member or its Affiliates, (ii) engaging in any manner in any De Minimis Business, (iii) engaging in any manner in Finance Activities, (iv) acquiring, owning or holding (as a passive investment) any publicly traded securities through any employee benefit plan; *provided*, that the Bugatti Member Parent and its Affiliates do not have the authority to direct the investment of such employee benefit plan, (v) performing any action expressly required by this Agreement or any Transaction Document or (vi) engaging in any business activity that would otherwise violate <u>Section 3.19(a)</u> that is acquired from any Independent Third Party after the Effective Date (an "***After-Acquired Business***") or is carried on by any currently Independent Third Party that is acquired by or combined with any Restricted Party after the Effective Date (an "***After-Acquired Company***"), so long as (A) the acquiring party notifies the other Member of the acquisition of the After-Acquired Business or the After-Acquired Company promptly after the consummation thereof, and (B) within twelve (12) months after the consummation of the acquisition of the After-Acquired Business or the After-Acquired Company, the applicable Restricted Party disposes of the relevant portion of the business or securities of the After-Acquired Business or the After-Acquired Company (provided that such twelve (12)-month period to consummate the disposition shall be extended by up to an additional four (4) months if, at the end of such initial twelve (12)-month period, all regulatory or other Governmental Authority approvals for such disposition have been sought but shall not have been obtained or all waiting periods imposed by applicable Governmental Authorities necessary to consummate such disposition have not expired or been terminated) or at the expiration of such twelve (12)-month period following the date on which the After-Acquired Business or the After-Acquired Company was originally acquired, the business of the After-Acquired Business or the After-Acquired Company complies with <u>Section 3.19(a)</u>. Notwithstanding the foregoing, the Restricted Parties will not be required to dispose of any assets or securities of an After-Acquired Business or After-Acquired Company if the business activity thereof that would otherwise violate <u>Section 3.19(a)</u> does not account for more than 10% of the revenues of the After-Acquired Business or After-Acquired Company (based on its latest annual financial statements prior to the consummation of such acquisition). Notwithstanding anything herein to the contrary, to the extent the Bugatti Member or its Affiliates acquires an After-Acquired Business or an After-Acquired Company, then for so long as the Bugatti Member or its Affiliates own such After-Acquired Business or After-Acquired Company and without limiting the obligations in this <u>Section 3.19(d)</u>, the Bugatti Member shall and shall cause its Affiliates to not disclose to the After-Acquired Business or After-Acquired Company or their Representatives in any manner any Confidential Information in connection with the management or operation of such After-Acquired Business or After-Acquired 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) As used in <u>Section 3.19(d)</u>, (i) "***De Minimis Business***" means any passive investment in an Independent Third Party in which (A) a Member and its Affiliates collectively hold not more than ten percent (10%) of the outstanding voting securities or similar equity interests or the right to receive more than ten percent (10%) of the profits in respect of such Independent Third Party, (B) the amount invested by a Member and its Affiliates collectively is less than $10 million, and (C) the Member and its Affiliates do not possess the right (through ownership of securities, contract or otherwise) to designate any members of (and do not have any representative of such Member or its Affiliates serving on) the board of directors (or similar governing body) of such Person, or to otherwise direct strategic or policy decisions of such Person, and (ii) "***Finance Activities***" means the making of, entering into, purchase of, or participation in (including syndication or servicing activities), in the ordinary course, (A) secured or unsecured loans, conditional sales agreements, debt instruments or transactions of a similar nature or for similar purposes, (B) non-voting preferred equity investments, and (C) investments as a limited partner in a partnership or as a member of a limited liability company in which another Person who is not an Affiliate is a management member and, in each case, the exercise of any rights or remedies in connection with any such activities (whether such rights or remedies arise under any agreement relating to such activity, under applicable Law or otherwise), including any foreclosure, realization or repossession or ownership of any collateral, business assets or other security for any Finance Activities (including the equity in any entity or business); *provided*, that, in each case, such transaction is entered into exclusively as a means of financing, including any financing documented in the form of loans or leases or otherwise, an Independent Third Party's purchase of any products, parts or equipment manufactured, assembled or sold (in each case, in whole or in part) by the Member or any of its Affiliates (the sale of which is not otherwise prohibited by <u>Section 3.19(a)</u>); *provided further*, that if the exercise of any such remedies results in the acquisition of an After-Acquired Business or an After-Acquired Company, then the provisions of <u>Section 3.19(d)(vi)</u> shall apply.

&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) Without limiting <u>Section 3.13</u>, with respect to any business unit or Affiliate of a Member that it controls, <u>Section 3.19(a)</u> shall cease to be applicable with respect to such business unit or Affiliate at such time as such business unit or Affiliate is no longer a part of, or an Affiliate of, such Member, and <u>Section 3.19(a)</u> shall not apply to any Independent Third Party that purchases assets, operations or a business from such Member if such Independent Third Party is not and does not become an Affiliate or business unit or entity of the Member after such transaction is consummated.

&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) None of the provisions of <u>Section 3.19(a)</u> shall operate to prohibit, hinder, impede or restrict from engaging in the Business in any way, any Person which by way of takeover, acquisition, merger, combination or similar transaction acquires a controlling interest in the Bugatti Member Parent or the Cobra Member Parent, as applicable; *provided*, *however*, that each of the Bugatti Member Parent and the Cobra Member Parent, as applicable, and the Affiliates that the Bugatti Member Parent and the Cobra Member Parent, as applicable, control as of the time immediately prior to the consummation of such transactions shall continue to be subject to the provisions of this <u>Section 3.19</u> after the consummation of any such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 <u>Operating Covenant</u>. Following the Effective Date for so long as the Bugatti Member continues to hold Membership Interests, the Cobra Member shall, and shall cause its Affiliates and shall cause the Company and its Affiliates to (a) operate the Business in the ordinary course of business consistent with past practice and (b) not take any actions, the primary intent of which could reasonably be expected to reduce the Exit Price, *provided* that nothing in this <u>Section</u> <u>3.20</u> shall prohibit the Cobra Member or any of its Affiliates or the Company and its Affiliates, from taking any action reasonably necessary to respond to any Emergency Event, provided that such action is materially consistent with the actions taken by other companies in similarly situated industries as the Business or as would be taken by a reasonably prudent businessperson in response thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21 <u>Cobra Support Services</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) Following the Effective Date for so long as the Bugatti Member continues to hold Membership Interests, Cobra Member Parent shall, and shall cause its Affiliates and the Company and its Subsidiaries to, maintain for a period of one year after the Bugatti Member no longer holds Membership Interests books and records (including charges, invoices, and allocation records) for Cobra Support Services in sufficient detail to enable an auditor (or Baker Hughes itself) to perform an evaluation and/or assessment of the Cobra Support Services, and, following delivery of the Exit Notice by either the Bugatti Member or the Cobra Member upon not less than fifteen (15) Business Days' prior written notice, Cobra Member Parent and the Company shall make such books and records available for inspection for performance of such evaluation and/or assessment by an auditor appointed by Baker Hughes (or Baker Hughes itself) at Baker Hughes' sole cost and expense. Notwithstanding the foregoing, in the event that the Cobra Member delivers a Preliminary Exit Statement reflecting an Exit Price at the Valuation Ceiling during the foregoing fifteen (15) Business Days period, then the Bugatti Member shall not be entitled to exercise the rights described in this <u>Section 3.21(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) Notwithstanding anything to the contrary in this Agreement, if following the Effective Date any general and administrative services or functions provided by the Bugatti Member or its Affiliates under any agreement between the Bugatti Member or its Affiliates, on the one hand, and the Company or its Subsidiaries, on the other hand, are transitioned from time to time to the Company or any of its Subsidiaries (and not Cobra Member or its Affiliates) (such transitioned general and administrative services or functions, "***Transitioned Support Services***"), then such Transitioned Support Services shall not be deemed Cobra Support Services for purposes of determining Adjusted EBITDA. Notwithstanding the foregoing, if any Transitioned Support Services are transitioned from the Company to the Cobra Member, then such transitioned general and administrative services or functions may be considered Cobra Support Services to the extent such services are performed by the Cobra Member or its Affiliates (and not the Company or its Subsidiaries).

Article 4<u><br> Capital Contributions AND MEMBER LOANS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Initial Capital Contributions</u>. Prior to the Effective Date, pursuant to the Framework Agreement the Bugatti Member (a) effectuated the Pre-Closing Transactions, including contributing to the Company the applicable equity interests of the Subject Entities and (b) agreed to sell, assign, transfer, contribute, convey or deliver to the Company or its Subsidiaries, for no additional consideration, any other Business Assets not conveyed to the Company or its Subsidiaries in connection with the Pre-Closing Transactions, in each case subject to the terms and conditions set forth in the Framework Agreement (the "***Initial Bugatti Contribution***"). On the Effective Date, pursuant to the Framework Agreement the Bugatti Member sold to the Cobra Member the Membership Interests and corresponding Percentage Interest set forth opposite the Cobra Member's name on <u>Exhibit F</u> hereto, and retained the Membership Interests and corresponding Percentage Interest set forth opposite the Bugatti Member's name on <u>Exhibit F</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Optional Member Loans</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) Except for the Initial Bugatti Contribution as set forth in <u>Section 4.1</u>, no Member shall be required to make any additional 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;(b) The Board of Directors (which, for the avoidance of doubt, shall not require the concurrence of the Bugatti Director) may from time to time request (each, a "***Loan Request***") the Members make loans to the Company (each, a "***Member Loan***") by delivering to the Members written notice (each, a "***Loan Request Notice***") specifying (i) the purpose of such Loan Request, (ii) the aggregate amount of the Member Loan requested by such Loan Request, (iii) each Member's proportionate share (based on such Member's Percentage Interest) of the amount requested by such Loan Request, (iv) the material economic terms (including interest rate and term) and (v) the date by which the Member Loans requested by such Loan Request are to be made by the Members, which date shall not be less than fifteen (15) Business Days following the date that such Loan Request Notice is delivered or such shorter period as may be agreed in writing in advance by such Member making such Member Loan (the "***Loan Deadline***").

&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) Each Member that desires to participate in full in such Loan Request (each, a "***Lending Member***") shall deliver written notice thereof to the Company no later than ten (10) Business Days following delivery of the Loan Request Notice, which notice shall constitute an irrevocable commitment by such Member to make a Member Loan equal to all, and not less than all, of such Member's proportionate share (based on such Member's Percentage Interest) of the amount requested by such Loan Request; *provided*, that failure to timely deliver such notice shall be deemed to be an irrevocable election by such Member not to make such Member Loan. If less than all of the Members elect to participate in such Loan Request, then the Lending Member may elect to fund all of the Loan 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) Following the Company's receipt of any Member Loan in connection with a Loan Request, the Board of Directors shall be entitled to amend <u>Exhibit F</u> without the consent of any Member as necessary to reflect any update to the Members' respective Member Loans resulting from such Loan 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;(e) Member Loans to the Company shall not be considered Capital Contributions. If any Member loans funds to the Company, the making of such loans shall not result in any increase in the amount of the Capital Account of such Member. The amount of any such loans shall be a debt of the Company to such Member and shall be payable or collectible in accordance with the terms and conditions upon which such loans are 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;(f) Any Member Loans to the Company by the Bugatti Member shall be immediately due and payable simultaneously with the closing of the transactions contemplated by any Exit Notice delivered pursuant to <u>Section 3.8(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Return of Contributions</u>. A Member is not entitled (a) to the return of any Capital Contribution or (b) to be paid interest in respect of its Capital Contributions. An unrepaid Capital Contribution is not a liability of the Company or of any Member. A Member is not required to contribute or to lend any cash or property to the Company to enable the Company to return any other Member's Capital Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Capital Accounts</u>. A Capital Account shall be maintained for each Member in accordance with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv) and, to the extent consistent with such Treasury Regulations, the other provisions of this Agreement. The initial Capital Account of each Member is set forth on <u>Exhibit F</u> hereto, which exhibit shall be amended or supplemented by the Board of Directors as required to reflect changes and adjustments made from time to time in accordance with the terms of this Agreement. Each Member's Capital Account shall be (a) increased by (i) allocations to such Member of Profits pursuant to <u>Section</u> <u>5.1</u> and any other items of income or gain allocated to such Member pursuant to <u>Section 5.2</u>, (ii) the amount of any cash or the initial Gross Asset Value of any Asset (net of any Liabilities assumed by the Company and any Liabilities to which the Asset is subject) contributed to the Company by such Member, and (iii) any other increases allowed or required by Treasury Regulations Section 1.704-1(b)(2)(iv), and (b) decreased by (i) allocations to such Member of Losses pursuant to <u>Section 5.1</u> and any other items of deduction or loss allocated to such Member pursuant to the provisions of <u>Section 5.2</u>, (ii) the amount of any cash or the Gross Asset Value of any Asset (net of any Liabilities assumed by the Member and any Liabilities to which the Asset is subject) distributed to such Member, and (iii) any other decreases allowed or required by Treasury Regulations Section 1.704-1(b)(2)(iv). In the event of a Transfer of Membership Interests made in accordance with this Agreement, the Capital Account of the Member undertaking such Transfer that is attributable to the Transferred Membership Interests shall carry over to the Transferee in accordance with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)(l).

Article 5<u><br> Allocations of profits and losses; Distributions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Profits and Losses</u>. After giving effect to the allocations under <u>Section</u> <u>5.2</u> and subject to <u>Section 5.4</u>, Profits and Losses (and, to the extent determined by the Board of Directors to be necessary and appropriate to achieve the resulting Capital Account balances described below, any allocable items of income, gain, loss, deduction or credit includable in the computation of Profits and Losses) for each Fiscal Year or other taxable period of the Company shall be allocated among the Members during such Fiscal Year or other taxable period of the Company in a manner such that, after giving effect to the special allocations set forth in <u>Section 5.2</u> and all distributions through the end of such Fiscal Year or other taxable period of the Company, the Capital Account balance of each Member shall be equal on a *pro rata* basis in accordance with Percentage Interest of each Member (prior to taking into account the Members' share of any Company Minimum Gain and Member Minimum Gain and the amount any Member is treated as obligated to contribute to the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Special Allocations</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) Nonrecourse Deductions for any Fiscal Year or other taxable period of the Company shall be specially allocated to the Members under any method determined by the Board of Directors to be appropriate and in accordance with the applicable Treasury Regulations. The amount of Nonrecourse Deductions for a Fiscal Year or other taxable period of the Company shall equal the excess, if any, of the net increase, if any, in the amount of Company Minimum Gain during that Fiscal Year or other taxable period of the Company over the aggregate amount of any distributions during that Fiscal Year or other taxable period of the Company of proceeds of a Nonrecourse Liability that are allocable to an increase in Company Minimum Gain, determined in accordance with the provisions of Treasury Regulations Section 1.704-2(d).

&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) Any Member Nonrecourse Deductions for any Fiscal Year or other taxable period of the Company shall be specially allocated to the Member who bears economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with Treasury Regulations Section 1.704-2(i). If more than one Member bears the economic risk of loss for such Member Nonrecourse Debt, the Member Nonrecourse Deductions attributable to such Member Nonrecourse Debt shall be allocated among the Members according to the ratio in which they bear the economic risk of loss. This <u>Section 5.2(b)</u> is intended to comply with the provisions of Treasury Regulations Section 1.704-2(i) and shall be interpreted consistently 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;(c) Notwithstanding any other provision of this Agreement to the contrary, if there is a net decrease in Company Minimum Gain during any Fiscal Year or other taxable period of the Company (or if there was a net decrease in Company Minimum Gain for a prior Fiscal Year or other taxable period of the Company and the Company did not have sufficient amounts of income and gain during prior periods to allocate among the Members under this <u>Section 5.2(c)</u>), each Member shall be specially allocated items of Company income and gain for such Fiscal Year or other taxable period in an amount equal to such Member's share of the net decrease in Company Minimum Gain during such Fiscal Year or other taxable period of the Company (as determined pursuant to Treasury Regulations Section 1.704-2(g)(2)). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Treasury Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This section is intended to constitute a minimum gain chargeback under Treasury Regulations Section 1.704-2(f) and shall be interpreted consistently 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;(d) Notwithstanding any other provision of this Agreement except <u>Section 5.2(c)</u>, if there is a net decrease in Member Minimum Gain during any Fiscal Year or other taxable period of the Company (or if there was a net decrease in Member Minimum Gain for a prior Fiscal Year or other taxable period and the Company did not have sufficient amounts of income and gain during prior periods to allocate among the Members under this <u>Section 5.2(d)</u>), each Member shall be specially allocated items of Company income and gain for such Fiscal Year or other taxable period of the Company in an amount equal to such Member's share of the net decrease in Member Minimum Gain (as determined pursuant to Treasury Regulations Section 1.704-2(i)(4)). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Treasury Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This section is intended to constitute a partner nonrecourse debt minimum gain chargeback under Treasury Regulations Section 1.704-2(i)(4) and shall be interpreted consistently 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) Notwithstanding any provision hereof to the contrary except <u>Section 5.2(a)</u> and <u>Section 5.2(b)</u>, no Losses or other items of loss or expense shall be allocated to any Member to the extent that such allocation would cause such Member to have an Adjusted Capital Account Deficit (or increase any existing Adjusted Capital Account Deficit) at the end of such Fiscal Year or other taxable period of the Company. All Losses and other items of loss and expense in excess of the limitation set forth in this <u>Section 5.2(e)</u> shall be allocated to the Members who do not have an Adjusted Capital Account Deficit in proportion to their relative positive Capital Accounts but only to the extent that such Losses and other items of loss and expense do not cause any such Member to have an Adjusted Capital Account Deficit.

&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) Notwithstanding any provision hereof to the contrary except <u>Section 5.2(c)</u> and <u>Section 5.2(d)</u>, in the event any Member unexpectedly receives any adjustment, allocation or distribution described in paragraph (4), (5) or (6) of Treasury Regulations Section 1.704-1(b)(2)(ii)(d), items of income and gain (consisting of a *pro rata* portion of each item of income, including gross income, and gain for the Fiscal Year or other taxable period of the Company) shall be specially allocated to such Member in an amount and manner sufficient to eliminate any Adjusted Capital Account Deficit of that Member as quickly as possible; *provided*, that an allocation pursuant to this <u>Section 5.2(f)</u> shall be made only if and to the extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in this <u>Article 5</u> have been tentatively made as if this <u>Section 5.2(f)</u> were not in this Agreement. This <u>Section 5.2(f)</u> is intended to constitute a "qualified income offset" under Treasury Regulations Section 1.704-1(b)(2)(ii) (d) and shall be interpreted consistently 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;(g) If any Member has a deficit balance in its Capital Account at the end of any Fiscal Year or other taxable period of the Company that is in excess of the sum of (i) the amount that such Member is obligated to restore and (ii) the amount that the Member is deemed to be obligated to restore pursuant to the penultimate sentence of Treasury Regulations Sections 1.704-2(g)(1) and (i)(5), that Member shall be specially allocated items of Company income and gain in the amount of such excess as quickly as possible; *provided*, that an allocation pursuant to this <u>Section 5.2(g)</u> shall be made only if and to the extent that such Member would have a deficit balance in its Capital Account in excess of such sum after all other allocations provided for in this <u>Article 5</u> have been made as if <u>Section 5.2(f)</u> and this <u>Section 5.2(g)</u> were not 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;(h) To the extent an adjustment to the Adjusted Basis of any Company Asset pursuant to Code Sections 734(b) or 743(b) is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as a result of a distribution to any Member in complete liquidation of such Member's Membership Interest in the Company, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the Asset) or loss (if the adjustment decreases the basis of the Asset) and such item of gain or loss shall be allocated to the Members in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) if such section applies or to the Member to whom such distribution was made if Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

&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) The allocations set forth in <u>Section 5.2(a)</u> through <u>Section 5.2(h)</u> (the "***Regulatory Allocations***") are intended to comply with certain requirements of Treasury Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding any other provision of this <u>Article 5</u> (other than the Regulatory Allocations), the Regulatory Allocations (and anticipated future Regulatory Allocations) shall be taken into account in allocating other items of income, gain, loss and deduction among the Members so that, to the extent possible, the net amount of such allocation of other items and the Regulatory Allocations to each Member should be equal to the net amount that would have been allocated to each such Member if the Regulatory Allocations had not occurred. This <u>Section 5.2(i)</u> is intended to minimize to the extent possible and to the extent necessary any economic distortions which may result from application of the Regulatory Allocations and shall be interpreted in a manner consistent 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;(j) Creditable Non-U.S. Taxes for any taxable period attributable to the Partnership, or an entity owned directly or indirectly by the Partnership, shall be allocated to the Partners in proportion to the partners' distributive shares of income (including income allocated pursuant to Section 704(c) of the Code) to which the Creditable Non-U.S. Tax relates (under principles of Treasury Regulations Section 1.904-6). The provisions of this <u>Section 5.2(j)</u> are intended to comply with the provisions of Treasury Regulations Section 1.704-1 (b)(4)(viii), and shall be interpreted consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Allocations for Tax Purposes in General</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) Except as otherwise provided in this <u>Section 5.3</u>, each item of income, gain, loss and deduction of the Company for U.S. federal income tax purposes shall be allocated among the Members in the same manner as such item is allocated under <u>Section 5.1</u> and <u>Section 5.2</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) In accordance with Code Section 704(c) and the Treasury Regulations thereunder (including the Treasury Regulations applying the principles of Code Section 704(c) to changes in Gross Asset Values), items of income, gain, loss and deduction with respect to any Company property having a Gross Asset Value that differs from such property's Adjusted Basis shall, solely for U.S. federal income tax purposes, be allocated among the Members to account for any such difference using the "remedial" method as set forth in Treasury Regulations Section 1.704-3(d).

&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) Any (i) recapture of Depreciation or any other item of deduction shall be allocated, in accordance with Treasury Regulations Sections 1.1245-1(e) and 1.1254-5, to the Members who received the benefit of such deductions to the extent possible, and (ii) recapture of credits shall be allocated to the Members in accordance with 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) Allocations pursuant to this <u>Section 5.3</u> are solely for purposes of U.S. federal, state and local income taxes and shall not affect or in any way be taken into account in computing any Member's Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision 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;(e) If, as a result of an exercise of a noncompensatory option to acquire an interest in the Company, a Capital Account reallocation is required under Treasury Regulations Section 1.704-1(b)(2)(iv)(*s*)(3), the Company shall make corrective allocations pursuant to Treasury Regulations Section 1.704-1(b)(4)(x).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Other Allocation Rules</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) The Members are aware of the income tax consequences of the allocations made by this <u>Article 5</u> and the economic impact of the allocations on the amounts receivable by them under this Agreement. The Members hereby agree to be bound by the provisions of this <u>Article 5</u> in reporting their share of Company income and loss for U.S. federal (and applicable state and local) 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;(b) The provisions regarding the establishment and maintenance for each Member of a Capital Account as provided by <u>Section 4.4</u> and the allocations set forth in <u>Section 5.1</u>, <u>Section 5.2</u> and <u>Section 5.3</u> are intended to comply with the Treasury Regulations and to reflect the intended economic entitlement of the Members. If the Board of Directors determines that the application of the provisions in <u>Section 4.4</u>, <u>Section 5.1</u>, <u>Section 5.2</u> or <u>Section 5.3</u> would result in non-compliance with the Treasury Regulations or would be inconsistent with the intended economic entitlement of the Members, the Board of Directors is authorized to make any appropriate adjustments to such provisions.

&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) All items of income, gain, loss, deduction and credit allocable to an interest in the Company that may have been Transferred shall be allocated between the Member undertaking such Transfer and the Transferee based on the portion of the Fiscal Year or other taxable period of the Company during which each was recognized as the owner of such interest for U.S. federal income tax purposes, without regard to the results of Company operations during any particular portion of that Fiscal Year or other taxable period of the Company and without regard to whether cash distributions were made to the Member undertaking such Transfer or the Transferee during that year; *provided*, *however,* that this allocation must be made in accordance with a method permissible under Code Section 706 and the Treasury Regulations 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;(d) The Members' proportionate shares of the "excess nonrecourse liabilities" of the Company, within the meaning of Treasury Regulations Section 1.752-3(a)(3), shall be allocated to the Members on a *pro rata* basis, in accordance with the Percentage Interests of each Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Distributions</u>. Subject to the provisions of Section 18-607 of the Act and <u>Section 3.17(a)(ii)</u>, from time to time the Board of Directors may cause Available Cash to be distributed to the Members, *pro rata* in proportion to their respective Percentage Interests as of such time. Subject to the provisions of Section 18-607 of the Act and <u>Section 3.17(a)(ii)</u>, any other distributions attributable to the Membership Interests made in cash (to the extent not addressed in the immediately preceding sentence) or property of the Company shall be made to the Members in proportion to their respective Percentage Interest by approval of the Board of Directors pursuant to <u>Section 6.13(n)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Tax Methods and Elections</u>. Notwithstanding any provision to the contrary in this <u>Article 5</u> or in this Agreement, and unless required by applicable Law, prior to the Board of Directors (or, where applicable, the Company Representative) (i) selecting or modifying a method(s) or (ii) making, modifying or revoking an election of the Company related to taxes that is not specifically provided for in this Agreement, the Board of Directors shall obtain the prior written consent of the Bugatti Member, which shall not be unreasonably withheld, if such method or election to be selected, made, modified, or revoked will materially change or affect the relative economic interest of the Members.

Article 6<u><br> Management</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Generally</u>. To facilitate the orderly and efficient management of the Company, the Members shall act collectively as a "committee of the whole," which is hereby named the "***Board of Directors***." The Company will not have "managers," as that term is used in the Act, it being understood that the Directors do not constitute "managers." Except as otherwise required under the Act or expressly provided in this Agreement, each Member hereby (a) specifically delegates to the Board of Directors its rights and powers to manage and control the business and affairs of the Company in accordance with the provisions of Section 18-407 of the Act and (b) revokes its right to bind the Company, as contemplated by the provisions of Section 18-402 of the Act. The Board of Directors shall have full power and authority to do all things necessary or appropriate to conduct, or cause to be conducted, the business and affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Board of Directors</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) <u>Composition of the Board</u>. The initial Board of Directors shall consist of three Directors; *provided*, *however*, that such number may decrease as contemplated by this <u>Section 6.2(a)(ii)</u>. Each Director shall be appointed as provided in this <u>Section 6.2(a)</u> and shall hold office until such Director's earlier resignation, death, or removal in accordance with this <u>Section 6.2(a)</u> or <u>Section 6.5</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) The Cobra Member shall be entitled to elect (by affirmative vote or written consent) two Directors (each, a "***Cobra Director***"), to remove from office any Cobra Director, to fill any vacancy caused by the resignation, death, or removal of any Cobra Director, and to fill any vacancy otherwise existing in the position of a Cobra Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Bugatti Member shall be entitled to elect (by affirmative vote or written consent) one Director (the "***Bugatti Director***"), to remove from office the Bugatti Director, to fill any vacancy caused by the resignation, death, or removal of the Bugatti Director, and to fill any vacancy otherwise existing in the position of the Bugatti Director; *provided*, *however*, that if the Bugatti Member shall cease to have a Percentage Interest of more than five percent (5%), the Bugatti Member shall cease to have any right to elect any Director, and the Bugatti Director shall be automatically removed from the Board of Directors; and *provided further*, that the right to elect the Bugatti Director shall be non-transferable, except in the case of a Permitted Transfer to a Permitted Affiliate in accordance with the terms of this Agreement; and *provided further*, that (A) if an Independent Third Party acquires (directly or indirectly) any portion of the Bugatti Member and (B) the activities of such Independent Third Party would contravene <u>Section 3.19(a)</u> if such Independent Third Party was substituted for the "Bugatti Member Parent" therein (notwithstanding the operation of <u>Section 3.19(f)</u>), then the Bugatti Member shall cease to have any right to elect any Director, and the Bugatti Director shall be automatically removed from the Board of Directors. If the Bugatti Member ceases to have any right to elect any Director, the requirement that the Bugatti Director is required to achieve Supermajority Approval or a quorum pursuant to <u>Section 6.4(a)</u> shall be deemed deleted.

&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) <u>Alternative Directors</u>. A Director may, upon written notice given to the other Directors, at any time and for any period of time, delegate to any individual (an "***Alternate Director***") the authority to take any action that may be taken by such Director. The act of an Alternate Director shall be deemed the act of the Director for which such Alternate Director is acting, without the need to produce evidence of the absences or unavailability of such Director, and the term "Director" shall include any Alternate Director that is actually performing the duties of the applicable Director in lieu of that Director.

&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) <u>Initial Board</u>. The initial Directors and Alternate Directors, effective as of the Effective Date, are set forth on <u>Exhibit J</u>. At any time upon written notice to the Company and the other Member, each Member shall be entitled to change the Alternate Directors identified on <u>Exhibit J</u> next to the Directors appointed by such Member.

&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) <u>Director Authority</u>. Except as otherwise specifically provided in this Agreement or by resolution of the Board of Directors, (i) no Director or group of Directors shall have any actual or apparent authority to enter into contracts on behalf of, or to otherwise bind, the Company, or to take any action in the name of or on behalf of the Company or conduct any business of the Company and (ii) no Director shall have the power or authority to delegate to any Person such Director's rights and powers as a Director to manage the business and affairs 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) <u>Committees</u>. The Board of Directors may establish, name, or dissolve one or more committees of the Board of Directors, each committee to consist of at least one Director appointed by each Member entitled to appoint a Director pursuant to <u>Section 6.2(a)</u>. Any committee established pursuant to this <u>Section 6.2(e)</u> shall have and may exercise all the powers and authority delegated to such committee by the Board of Directors.

&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) <u>Chairman</u>. The Chairman of the Board of Directors (the "***Chairman of the Board***"), if present and acting, shall preside at all meetings of the Board of Directors. The Cobra Member shall appoint the Chairman of the Board. The initial Chairman of the Board is set forth on <u>Exhibit J</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Meetings</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) Regular meetings of the Board of Directors shall be held at least quarterly at times and places as shall be designated from time to time by resolution of the Board of Directors without any further notice than such resolution.

&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) Special meetings of the Board of Directors may be called by the Chairman of the Board of Directors or any Member that is entitled to appoint a Director; *provided*, that the Bugatti Member shall not be entitled to call special meetings if it is then in Bugatti Default.

&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) Notice of a meeting of the Board of Directors will be given to each Director, by personal delivery, telecopier, e-mail, or other electronic transmission at least five (5) Days prior to any regular meeting of the Board of Directors and two (2) Business Days prior to any special meeting of the Board of Directors. Any such notice, or waiver thereof, need not state the purpose of such meeting except as may otherwise be required 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;(d) Directors may participate in and hold a meeting of the Board of Directors by means of conference telephone, video conference, or similar communications equipment by means of which all Persons participating in the meeting can hear each other, and participation in such meetings shall constitute presence in person at the 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;(e) Attendance of a Director at a meeting (including pursuant to <u>Section 6.3(d)</u>) shall constitute a waiver of notice of such meeting, except where such Director attends the meeting for the express purposes of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

&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) The Bugatti Member shall not be permitted to have its Director attend, or vote at, any regular or special meeting if the Bugatti Member is then in Bugatti Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Quorum and Voting</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) <u>Quorum</u>. The attendance of at least one Cobra Director and the Bugatti Director shall constitute a quorum of the Board of Directors for the transaction of business; *provided*, *however* that if the Bugatti Director fails to attend a duly called meeting in accordance with <u>Section 6.3</u>, then a special meeting of the Board of Directors may be called pursuant to <u>Section 6.3(c)</u> and quorum may be complete for such duly called special meeting of the Board of Directors without the Bugatti Director.

&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) <u>Voting</u>. Each Director shall be entitled to cast a number of votes equal to the Percentage Interest held by such Director's Designating Member at the time of voting on each matter on which such Director is entitled to vote; *provided*, *however*, the Cobra Directors may only vote collectively the Percentage Interest held by the Cobra Member. In all matters requiring the vote or consent of the Board of Directors, <u>Section 6.9</u>, <u>Section 6.12</u>, and <u>Section 6.13</u>, as applicable, shall apply. If a Director is not present for any meeting and such Director's Alternate Director or any other Director with the same Designating Member is present, such present Alternate Director or other such Director shall have the right to cast the vote of such absent Director. For the avoidance of doubt, in no event shall a Director and such Director's Alternate Director both cast votes on a matter.

&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) <u>Action by Written Consent</u>. Any action required or permitted to be taken at any meeting of the Board of Directors (or any committee thereof) may be taken without a meeting, and without a vote, and (1) if notice of such meeting has been properly provided in accordance with <u>Section 6.2(c)</u>, a consent or consents in writing, setting forth the action so taken, are signed by the Directors representing the requisite portion of the voting power of the Board of Directors as then composed to authorize such action as required by this Agreement, or (2) without notice, if unanimously approved by all Directors entitled to vote on such matter. Each written consent shall bear the date and signature of each Director who signs such consent and a copy of such consent shall be promptly given to any Director who has not signed such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Resignation; Removal and Vacancies</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) Any Director may resign at any time by giving written notice to the Company and each other Director. The resignation of a Director shall take effect upon receipt of notice thereof or on such date as shall be specified in such notice; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it 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;(b) Any Director may only be removed at any time, with or without cause, by its Designating Member. The removal of a Director shall be effective only upon receipt of notice thereof delivered by such Designating Member to the remaining Directors.

&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) Any vacancy on the Board of Directors occurring for any reason may be filled only by the appointment of a replacement Director by the Designating Member of the Director whose death, resignation or removal created such vacancy. The appointment of a new Director by a Member shall be effective upon receipt of notice thereof delivered by such Designating Member to the remaining Directors, or at such later time as may be specified in such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Reliance on Reports</u>. Each Director may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request consent, order, bond, debenture, or other paper or document believed by it to be genuine and to have been signed or presented by the Board of Directors. The Board of Directors may consult with legal counsel, accountants, appraisers, management consultants, investment bankers, and other consultants and advisers selected by it and any act taken or omitted in reliance upon the opinion of such Persons as to matters that the Directors reasonably believe to be within such Person's professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <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) The Board of Directors may appoint agents of the Company as "Officers" of the Company, who shall not be "managers" under the Act. Such Officers shall have the power, authority and duties delegated herein or by resolution of the Board of Directors.

&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) An Officer shall serve until his or her death, resignation, or removal or the expiration of such Officer's term. Any Officer of the Company may resign at any time by giving written notice to the Board of Directors. The resignation of any Officer shall take effect upon receipt of notice by the Board of Directors or on such date as shall be specified in such notice; and, unless otherwise specified in such notice, the acceptance of such resignation shall not be necessary to make it effective. An Officer shall automatically cease to be an Officer of the Company upon his ceasing to be a consultant, employee, or officer of one of the Company, the Members or their respective 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) If any vacancy shall occur in any office, for any reason whatsoever, then the Board of Directors shall have the right to appoint (or not) any new Officer to fill such vacancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Director Compensation</u>. No Director shall be entitled to any salary or similar compensation from the Company or its Subsidiaries for serving as a Director, and compensation and benefits for any Director will be set and paid by such Director's Designating Member or its Affiliate with whom such Officer is employed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Related Party Activity</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) The Members hereby ratify, confirm, and approve the Company's execution and delivery of, and performance by the Company and its Subsidiaries of its and their obligations under, this Agreement and the Transaction Documents.

&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) Other than the Transaction Documents, in order for the Company or its Subsidiaries to engage in any Related Party Activity, the Company shall (i) deliver all material information relating to the Related Party Activity to the Board of Directors and (ii) obtain the affirmative consent of a majority of the Directors whose Designating Member is not the subject party in such Related Party Activity.

&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) If an amendment to the term of this Agreement is approved on behalf of the Company or its Subsidiary in accordance with this Agreement and such amendment necessitates an identical amendment (mutatis mutandis) to an Affiliate Contract, unless otherwise specified by the Board of Directors, such amendment shall be implemented in such Affiliate Contract without any additional approval or consent on behalf of the Company or such Subsidiary, as applicable; *provided*, *however*, that such amendment shall require the approval of the counterparty to such Affiliate Contract that is not the Company or such Subsidiary and the Company shall deliver notice of such amendment to the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Exculpation; Fiduciary Duties</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) Notwithstanding any other provision of this Agreement or any duty otherwise existing at Law or in equity the parties hereby agree that each Member, the Officers, the Directors, the Company Representative and their Affiliates, shall, to the maximum extent permitted by Law, including Section 18-1101 of the Act, owe no fiduciary or quasi-fiduciary duty, or other duty, to the Company, its Subsidiaries, Affiliates, or equity investees, the other Members or Directors or officers, or any other Person bound by this Agreement. Except as otherwise provided in this Agreement, the Members, the Officers, the Directors, and any of their Affiliates shall have no obligations whatsoever, by virtue of the relationships established pursuant to this Agreement, to take or refrain from taking any action that may impact the Company, the Members, or any Subsidiary or Affiliate of the Company or a Member.

&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) A Director shall be entitled to act or omit to act at the direction of its Designating Member, considering only such factors, including the separate interests of the Designating Member (which interests may differ from, and be given priority over, the interests of the Company or its Subsidiaries or any other Member), as such Director or the Designating Member chooses to consider.

&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) The provisions of this Agreement, including this <u>Section 6.10</u>, and <u>Section 2.12</u>, to the extent that they restrict or eliminate fiduciary and other duties of Members, the Company Representative, their Affiliates, Directors or Officers to the Company or its Members otherwise existing at Law or in equity, are agreed by the Members to replace such other duties and liabilities of such Members, the Company Representative, their Affiliates, Directors or Officers.

&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) Whenever in this Agreement, the Board of Directors (or any committee thereof) is permitted or required to take any action or to make a decision or determination in its "good faith" or under another express standard, each Director shall act under such express standard and, to the extent permitted by applicable Law and shall not be subject to any other or different standards imposed by this Agreement or any other agreement contemplated herein or to which the Company is a party. References to decisions to be made by a Director or the Board of Directors in its "discretion" or under a grant of similar authority or latitude means that each Director is entitled to take or refrain from taking such action or make such decision or determination in such Director's sole discretion and consider such interests and factors as such Director desires (including the interests of such Director, such Director's Designating Member or any of their respective Affiliates) and shall have no duty or obligation to give any consideration to any other interests or factors, it being understood that nothing herein will limit or restrict such Director from taking or omitting to take any actions which it is expressly permitted or required to take or omit for its own account pursuant to this Agreement. With respect to any action taken or decision or determination made by any Director or the Board of Directors (or any committee thereof), it shall be presumed that each Director and the Board of Directors (or such committee thereof) acted in good faith and in compliance with this Agreement and any Person bringing, pleading or prosecuting any claim with respect to any action taken or decision or determination made by the Board of Directors (or any committee thereof) shall have the burden of overcoming such presumption by clear and convincing evidence; *provided*, that for the avoidance of doubt, this sentence shall not be deemed to increase or place any duty (including any fiduciary duty) on the Board of Directors or its Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>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) To the fullest extent permitted by Law but subject to the limitations expressly provided in this Agreement, the Indemnitees shall be indemnified and held harmless by the Company from and against any and all Liabilities arising from any and all claims, demands, actions, suits, or proceedings, whether civil, criminal, administrative, or investigative, joint or several, in which any Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, by reason of its status as an Indemnitee (in the Indemnitee's capacity as such) and with respect to events occurring after the Effective Date; *provided*, *however*, with respect to any criminal proceeding, the Indemnitee had no reasonable cause to believe such conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of *nolo contendere*, or its equivalent, shall not create a presumption that the Indemnitee acted in a manner contrary to that specified above. Any indemnification pursuant to this <u>Section 6.11(a)</u> shall be made only out of the Assets, it being agreed that no Member or any of its Affiliates, in their respective capacities as such, shall, in any event, be personally liable for such indemnification nor shall it or they have any obligation to contribute or loan any monies or property to the Company to enable the Company to effectuate such indemnification.

&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) The Company and the Members hereby acknowledge and agree that (i) an Indemnitee may have certain rights to indemnification, advancement of expenses or insurance provided by Persons other than the Company (collectively, the "***Other Indemnitors***"), and (ii) the Company shall be the indemnitor of first resort (*i.e.*, the Company's obligations to any Indemnitee hereunder are primary and any obligation of any Other Indemnitor to advance expenses or to provide indemnification for the same Liabilities incurred by such Indemnitee shall be secondary to the Company). The indemnification provided by <u>Section 6.11(a)</u> shall continue as to an Indemnitee who has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors, assigns, and administrators of such Indemnitee.

&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) To the fullest extent permitted by Law, expenses (including legal fees and expenses) incurred by an Indemnitee who is indemnified pursuant to <u>Section 6.11(a)</u> in defending any claim, demand, action, suit, or proceeding 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 a written undertaking by or on behalf of such Indemnitee to repay such amount if it shall be determined that such Indemnitee is not entitled to be indemnified as authorized in this <u>Section 6.11</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) The Company may purchase and maintain insurance, on behalf of the Officers and Directors and on behalf of such other Persons as the Board of Directors shall determine, against any Liability that may be asserted against, or expense that may be incurred by, such Person in connection with the Company's activities, regardless of whether the Company would have the power to indemnify such Person against such Liability under the provisions 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;(e) An Indemnitee shall not be denied indemnification in whole or in part contemplated under this <u>Section 6.11</u> because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by 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;(f) The provisions of this <u>Section 6.11</u> are for the benefit of the Indemnitees, their heirs, successors, assigns, and administrators and shall not be deemed to create any rights for the benefit of any other Persons.

&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) No amendment, modification, or repeal of this <u>Section 6.11</u> or any provision hereof or defined term used herein shall in any manner terminate, reduce, or impair the right of any past, present, or future Indemnitee to be indemnified by the Company, nor the obligation of the Company to indemnify any such Indemnitee under and in accordance with the provisions of this <u>Section 6.11</u> as in effect immediately prior to such amendment, modification, or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification, or repeal, regardless of when such claims may arise or be asserted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Matters Requiring Majority Approval</u>. Subject only to <u>Section 6.9</u> and <u>Section 6.13</u>, any action that receives Majority Approval shall be the act of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Matters Requiring Supermajority Approval</u>. None of the Board of Directors, the Company or any of the Officers shall take, or permit the Company or its Subsidiaries to take, any of the actions set forth in this <u>Section</u> <u>6.13</u> without Supermajority Approval:

&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) (i) enter into any new line of business and/or (ii) cease or materially diminish any existing line of business of the Company and its Subsidiaries and/or cease to operate in any country within the Territory that is material to the Company and its Subsidiaries, except, solely in the case of the foregoing <u>clause (ii)</u>, to the extent reasonably necessary to respond to any Emergency Event, provided that such action is materially consistent with the actions taken by other companies in similarly situated industries as the Business or as would be taken by a reasonably prudent businessperson in response 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;(b) approve (i) an Approved Sale, (ii) the conversion of the Company to any other corporate or entity form, or (iii) the merger or consolidation of the Company with or into 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;(c) make, amend or modify any tax election or take any other action that, in each case, would cause the Company to be classified as other than a partnership 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;(d) make any amendment, variation, supplement, modification, or termination of this Agreement or the Certificate (including pursuant to any merger, consolidation, conversion, division, re-domestication, or otherwise), or change the rights, powers, or privileges of any Membership Interests or Members, in each case, other than in accordance with <u>Section 10.13(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;(e) acquire any entity or all or substantially all of the assets of any entity (or licensing such assets) outside the ordinary course of business 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;(f) (i) sell, assign, license, pledge or encumber any material technology or material intellectual property of the Company other than pursuant to customer contracts entered into in the ordinary course of business, or (ii) otherwise dispose of the assets of the Company or any Subsidiary of the Company outside the ordinary course of business, in each case of clause (i) or (ii), other than in connection with the incurrence by the Company or its Subsidiaries of third party indebtedness for borrowed money in compliance with 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;(g) incur indebtedness for borrowed money except (A) Member Loans, and (B) third party indebtedness for borrowed money that in the aggregate does not exceed $50 million in outstanding principal indebtedness at any given 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;(h) make any loan or advance to any Person (excluding employees of the Company), other than loans or advances made solely between the Company and its Subsidiaries or solely among the Company's 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;(i) issue or give any material guaranty, surety or similar agreement on behalf of the Company for the benefit of any Person other than the Company or its Subsidiaries, other than 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;(j) except as contemplated in <u>Section 3.8</u>, authorize or consummate non-pro rata redemptions by the Company of any Membership 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;(k) increase the size of the Board of Directors;

&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) subject to <u>Article 9</u>, dissolve the Company, or commence or consent to any Bankruptcy relating to the Company or any 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;(m) issue profits interests, incentive interests or other similar interests to a Director, Officer, employee or another service provider of the Company or its 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;(n) approve, permit, undertake or permit the making of any Capital Contribution after the Effective 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;(o) authorize, approve or otherwise cause the Company to make any distribution of property in respect of the Membership Interests other than pursuant to <u>Section 9.2</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;(p) enter into any agreement or arrangement providing for or otherwise committing to take any of the foregoing actions in this <u>Section 6.13</u>.

Article 7 <u>RESERVED</u>

Article 8<u><br> Inspection; Books and Records; Taxes</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Maintenance of Books and Records</u>. The Company shall keep at its principal office books and records of the Company, its Subsidiaries, and Affiliates, supporting documentation of the transactions with respect to the conduct of the Company's, its Subsidiaries' and Affiliates' business and affairs and minutes of the proceedings of the Board of Directors and the Members and the governing bodies and owners of the Company's Subsidiaries and Affiliates. The records shall include: (a) information regarding the state of the business and financial condition of the Company; (b) a copy of this Agreement and the Certificate and the organizational documents of the Company's Subsidiaries and Affiliates; and (c) a current list of the names and last known business, residence, or mailing addresses of all Directors and Officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Tax Statements</u>. The Company shall prepare and deliver (or cause to be prepared and delivered) to each Person who was a Member at any time during the immediately preceding tax year (i) within ninety (90) Days after the end of each Fiscal Year, an estimated Schedule K-1 (and any similar form prescribed for applicable state and local income tax purposes) based on the best-available information to date together with good faith estimates of such additional information as may be required by the Members (or their owners) in order to file their individual tax returns reflecting the Company's operations, including its apportionment schedules, for the immediately preceding tax year (or portion thereof), and (ii) in no event later than thirty (30) Days prior to the individual or corporate filing deadline (with extensions) for U.S. federal income taxes for calendar year filers (whichever is earlier), a final version of the Company's U.S. federal income tax return and a final Schedule K-1 (and any similar form prescribed for applicable state and local income tax purposes) together with such additional information as may be required by the Members (or their owners) in order to file their tax returns on a timely basis (including extensions) for such tax year. The Company shall bear the costs of the preparation and filing of its tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Accounts</u>. The Board of Directors shall establish, or direct or authorize any Officer to establish, one or more separate bank and investment accounts and arrangements for the Company, which shall be maintained in the Company's name with financial institutions and firms that the Board of Directors, or any Officer so directed or authorized, determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Accountants; Financial Information and Inspection</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) The books and records of the Company shall be maintained and prepared in conformity with GAAP. The accountants for the Company shall be the same accounting firm that is the auditor of the Cobra Member.

&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) At all times during the continuance of the Company, the books of account will be kept by the Company in accordance with this Agreement 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;(c) In addition to any other rights that may be provided under the Act, each Member (other than the Bugatti Member if it is then in Bugatti Default) shall have the right at reasonable times during usual business hours upon prior notice to the Company to designate representatives that may (i) examine and make copies of the books and records of the Company and its Subsidiaries, (ii) visit the facilities of the Company and its Subsidiaries, or (iii) inspect the Assets with regard to the Company's and its Subsidiaries' compliance with all applicable safety, health, and similar requirements applicable to the Company, its Subsidiaries or the Assets. The costs and expenses incurred in connection with any Member's exercise of its rights permitted pursuant to this <u>Section 8.4(c)</u> shall be borne by such Member. Each Member hereby indemnifies and holds harmless the Company and each of its Subsidiaries and Affiliates, each Member other than itself and each officer, manager, director, employee, agent, or consultant of the foregoing (each an "***Indemnified Person***") from and against any and all Liabilities relating to or arising out of or with respect to or in connection with such Member's exercise of its rights permitted pursuant to this <u>Section 8.4(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;(d) No later than ten (10) Days after each date on which the Cobra Member Parent files a quarterly report on Form 10-Q with the SEC in respect of the prior applicable fiscal quarter, the Company shall give or cause to be given to each Member an unaudited consolidated balance sheet, income statement, and statement of cash flows for such fiscal quarter.

&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) No later than ten (10) Days after each date on which the Cobra Member Parent files an annual report on Form 10-K with the SEC in respect of the prior applicable Fiscal Year, the Company shall give or cause to be given to each Member unaudited financial statements, including a consolidated balance sheet, a consolidated income statement, and a consolidated statement of cash flows for the immediately preceding Fiscal Year. Annual financial statements must be prepared in accordance with GAAP, subject to the lack of footnotes.

&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) The Company shall give or cause to be given to each Member (i) an annual budget for the Company for such Fiscal Year promptly after it becomes available, but no later than thirty (30) days after the beginning of each Fiscal Year and (ii) promptly upon preparation thereof any other significant budgets prepared by the Company and any revisions of such annual or other budgets and all budget, operational and/or financial reporting packages (whether monthly, quarterly, annual and/or otherwise) prepared for management reporting purposes to the Board of Directors.

&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) At the reasonable request of a Member, the Company shall provide such Member access to such additional information to the extent already in the Company's possession in the ordinary course, including models, forecasts, accounting records, and reasonable access during normal business hours to the directors, managers, officers and key employees of the Company and the Company shall use commercially reasonable efforts to provide reasonable access to the independent accountants of the Company, to allow such Member to complete a valuation of the Company to the extent required for the preparation of such Member's own 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;(h) The Company shall deliver to the Members or otherwise provide the Members such other information of the Company which is reasonably requested by any Member (i) in order to properly withhold taxes, file tax returns and reports or furnish tax information to such Member's direct or indirect equity holders or partners or (ii) to comply with SEC or other legal requirements relating to the beneficial ownership, directly or indirectly, by such Member or its Affiliates of Membership Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Tax Returns</u>. The Board of Directors shall arrange for the preparation and timely filing of all income and other tax and informational returns of the Company, including making the elections described in <u>Section</u> <u>8.6</u>. The Members agree (a) to take all actions reasonably requested by the Company or the Company Representative to comply with Sections 6225 or 6226 of the Code and the obligations of the Company Representative and providing confirmation thereof to the Company Representative and (b) furnish to the Company any reasonably requested certificates or statements required in connection with the tax matters of the Company. Any reasonable, documented cost or expense incurred by the Company or the Company Representative in connection with the roles and responsibilities described in this <u>Section 8.5</u> shall be paid or reimbursed by the Company. The Company shall use commercially reasonable efforts to deliver to the Bugatti Member a draft all income and other tax and informational returns of the Company at least fifteen (15) Days prior to filing such tax and informational returns for the Bugatti Member's review and comment, and the Company shall, exercising good faith, take into account any reasonable comments the Bugatti Member may have to such draft tax and informational returns in connection with filing such returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Tax Elections</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) The Company and any eligible Subsidiary shall make an election (or continue a previously made election) pursuant to Section 754 of the Code for the taxable year of the Company that includes the Effective Date, and shall not thereafter revoke such election unless required to do so by applicable Law. In addition, the Company shall make the following elections on the appropriate forms or tax returns:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to adopt the calendar year as the Company's Fiscal Year, if permitted by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to adopt the accrual method of accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to elect to deduct the organizational expenses of the Company as permitted by Section 709(b) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to elect to deduct the start-up expenditures of the Company as permitted by Section 195(b) of the Code; 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;(v) any other election not specifically addressed in this Agreement and any determination made by the Company Representative pursuant to the Partnership Tax Audit Rules as further described in <u>Section 8.7</u> that the Company Representative may deem appropriate and in the best interests of the Company, *<u>provided</u>*, *<u>that</u>*, the Company Representative shall obtain the prior written consent of the Bugatti Member, which shall not be unreasonably withheld, conditioned or delayed, if such election or determination will materially change or affect the relative economic interests of the Members.

&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) The Company shall not make any election to be an association taxable as a corporation for U.S. federal income tax purposes (including by filing any U.S. Internal Revenue Service Form 8832 that would cause the Company to be taxed as a 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;(c) Neither the Company nor any Member may make an election for the Company to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar provisions of applicable state Law, and no provision of this Agreement shall be construed to sanction or approve such an election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Company Representative</u>. The Cobra Member is specially authorized and appointed to act as the Company Representative, and in any similar capacity under state or local Law, and to designate a "designated individual" in accordance with Treasury Regulations Section 301.6223-1(b)(3). The Company Representative and designated individual may retain, at the Company's expense, such outside counsel, accountants and other professional consultants as it may reasonably deem necessary in the course of fulfilling its obligations as Company Representative, including (i) whether to commence or settle any judicial or administrative proceeding with respect to any Company tax return, (ii) settle any audit or agree to a notice of final partnership adjustment with respect to any Company tax return with a taxing authority concerning the adjustment of any Company item and (iii) enter into any agreement with a taxing authority to extend the period for assessing any U.S. federal income tax that is attributable to any item that may be the subject of an audit of a U.S. federal income tax return of the Company. Each Member agrees to cooperate with the Company Representative and to do or refrain from doing any or all things reasonably requested by the Company Representative with respect to the conduct of such proceedings. The Company Representative and the designated individual, individually or on behalf of the Company Representative, may (but shall not be required to): (i) make the election provided by Section 6221(b) of the Partnership Tax Audit Rules to have Subchapter C of Chapter 63 of the Code not apply and (ii) make the so-called "push out" election provided in Section 6226 of the Partnership Tax Audit Rules with respect to an "imputed underpayment" described in Section 6225(b) of the Partnership Tax Audit Rules. The Members shall cooperate in good faith in order to minimize the financial burden on the Company of any imputed underpayment under Section 6225 of the Code (or any successor provision), including cooperating with the Company Representative's election and/or the furnishing of statements pursuant to Section 6226 of the Code or through the adoption of the procedure established by Section 6225(c) of the Code (or any successor provision) (including for example, a "push out" election as provided in Section 6226 of the Partnership Tax Audit Rules with respect to an "imputed underpayment" described in Section 6225(b) of the Partnership Tax Audit Rules). In acting as Company Representative, the Cobra Member shall act, to the maximum extent possible, to cause income, gain, loss, deduction and credit of the Company, and adjustments thereto, to be allocated or borne by the Members in the same manner as such items or adjustments would have been borne if the Company could have effectively made an election under Section 6221(b) of the Code or similar state or local provision with respect to the taxable period at issue. The Company Representative shall keep the Bugatti Member (and its designated advisors) reasonably informed of any material audit or administrative or judicial proceedings with respect to the tax matters of the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <u>Withholding Tax Payments and Obligations</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) The Company and its Subsidiaries may withhold from distributions, allocations or portions thereof if it is required to do so by any applicable Law, and each Member hereby authorizes the Company and its Subsidiaries to withhold or pay on behalf of or with respect to such Member any amount of taxes that the Company Representative determines, in good faith, that the Company or any of its Subsidiaries is required to withhold or pay with respect to any amount distributable or allocable to such Member 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;(b) To the extent that any tax is paid by (or withheld from amounts payable to) the Company or any of its Subsidiaries and the Company Representative determines, in good faith, that such tax relates to one or more specific Members (including any tax payable by the Company or any of its Subsidiaries pursuant to Section 6225 of the Code with respect to items of income, gain, loss deduction or credit allocable or attributable to such Member), such tax shall be treated as an amount of taxes withheld or paid with respect to such Member pursuant to this <u>Section 8.8</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) If any proceeds paid to the Company are reduced on account of taxes withheld at the source, and such taxes are imposed on or with respect to one or more Members, then the amount of the reduction shall be borne by the relevant Members and treated as if such amount was paid by the Company with respect to such Member(s) pursuant to this <u>Section 8.8</u>. If any proceeds paid to the Company are reduced on account of taxes withheld at the source, and such taxes are imposed on the Company without regard to a Member's interest in the Company (such as an unincorporated business tax, excise tax or sales tax, provided that in no case shall any tax payable by the Company or any of its Subsidiaries pursuant to Section 6225 of the Code, withholding taxes or other method of collecting taxes indirectly from Members of the Company in respect of a Member's allocable share of Company income be treated as an expense of the Company), then the amount of the reduction shall be treated as an expense 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;(d) For all purposes under this Agreement, any amounts withheld or paid with respect to a Member pursuant to this <u>Section 8.8</u> shall be treated as if distributed to such Member at the time such withholding or payment is made. If it is reasonably anticipated that, at the due date of the Company's withholding obligation, the cumulative amount of such withholding or payment for any period will exceed the distributions to which such Member is entitled for such period, then the Member with respect to which the withholding obligation applies shall pay to the Company the amount of such excess within thirty (30) Days after notice by the Company. If a Member fails to make the required payment when due hereunder, and the Company nevertheless pays the withholding, in addition to the Company's remedies for breach of this Agreement, such amount shall be considered a recourse loan from the Company to such Member, with interest accruing at the Prime Rate in effect from time to time, compounded annually. The Company Representative may, in its discretion, either (i) demand payment of the principal and accrued interest on such demand loan at any time (which payment shall not be deemed a Capital Contribution for purposes of this Agreement), and enforce payment thereof by legal process, or (ii) withhold from one or more distributions to a Member amounts sufficient to satisfy such Member's obligations under any such demand loan, which payments or distributions shall be applied first to interest and then to principal until such loan is repaid in full.

&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) Neither the Company nor the Company Representative shall be liable for any excess taxes withheld in respect of any Member, and, in the event of overwithholding, a Member's sole recourse shall be to apply for a refund from the appropriate Governmental Authority. Each Member hereby agrees to indemnify and hold harmless the Company, the other Members, the Company Representative from and against any Liability for taxes with respect to income attributable to or distributions or other payments to such Member.

&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) Notwithstanding any other provision of this Agreement, (i) any Person who ceases to be a Member shall be treated as a Member for purposes of this <u>Section 8.8</u> and (ii) the obligations of a Member pursuant to this <u>Section 8.8</u> shall survive indefinitely with respect to any taxes withheld or paid by the Company that relate to the taxable period of the Company during which such Person was actually a Member, regardless of whether such taxes are assessed, withheld or otherwise paid during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <u>Unitary/Combined Tax Reporting</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) In the event the Company does not file its own tax report for any state tax purposes, but instead is part of an affiliated group engaged in a unitary business that files a combined group report (a "***Unitary/Combined Tax Report***"), the methodology set forth in this <u>Section 8.9</u> shall be used to determine the amount of reimbursement due to the applicable Member (the "***Combined Reporting Member***") as a result of having to include the Company in the Unitary/Combined Tax Report of such Member (or an Affiliate of such Member). Any Member that is not a Combined Reporting Member shall be referred to as a "***Reimbursing Member***."

&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) For each privilege or taxable period, the Combined Reporting Member will compute (i) such Combined Reporting Member's actual unitary tax Liability ("***Actual Unitary Tax Liability***"), (ii) such Combined Reporting Member's hypothetical unitary state tax Liability excluding any tax Liability arising from such Combined Reporting Member's ownership of the Company ("***Stand-Alone Tax Liability***"), and (iii) difference between the Actual Unitary Tax Liability and the Stand-Alone Tax Liability ("***Resulting Tax Liability***"). The Actual Unitary Tax Liability, Stand-Alone Tax Liability, and Resulting Tax Liability (along with any supporting work papers) will be provided to the Reimbursing Member for review at least thirty (30) Days prior to the due date of the Unitary/Combined Tax Report of the Combined Reporting Member (or its Affiliate) related to the applicable period. The Reimbursing Member shall have ten (10) Days to review the Resulting Tax Liability and provide any comments to the Combined Reporting Member. If the Members cannot agree on the Resulting Tax Liability, the Members shall engage the Accountant to determine the Resulting Tax Liability. Subject to <u>Section 8.9(d)</u>, the determination of the Accountant shall be considered final and binding on the Members as the Resulting Tax Liability for purposes of determining reimbursement under this <u>Section 8.9</u>. All costs associated with the Accountant shall be borne by the Members in proportion to their respective Percentage Interest. The Reimbursing Members shall bear the Resulting Tax Liability based on their respective Percentage Interest.

&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) Within five (5) Days of any tax payment (including estimated tax payments) by the Combined Reporting Member (or its Affiliate) with respect to a Unitary/Combined Tax Report, each Reimbursing Member shall reimburse the Combined Reporting Member for its share of the Resulting Tax 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;(d) In the event of any tax audit adjustments impacting the calculation of the Resulting Tax Liability for any privilege or taxable period, the Resulting Tax Liability for any such period shall be redetermined by the Combined Reporting Member and any prior reimbursement under <u>Section 8.9(c)</u> shall be adjusted consistent with such redetermination (the "***Adjusted Resulting Tax Liability***"). The Adjusted Resulting Tax Liability (along with any supporting work papers) will be provided to the Reimbursing Member for review within thirty (30) Days following the final settlement of the applicable audit. The Reimbursing Member shall have ten (10) Days to review the Adjusted Resulting Tax Liability and provide any comments to the Combined Reporting Member. If the Members cannot agree on the Adjusted Resulting Tax Liability, the Members shall engage the Accountant to determine the Adjusted Resulting Tax Liability. The determination of the Accountant shall be considered final and binding on the Members as the Adjusted Resulting Tax Liability for purposes of determining any reimbursement adjustments under this <u>Section 8.9(d)</u>. All costs associated with the Accountant shall be borne by the Members in proportion to their respective Percentage Interest. Any payments due by the Reimbursing Member to the Combined Reporting Member (or vice-versa) as a result of the determination of the Adjusted Resulting Tax Liability shall be made within thirty (30) Days following the final determination of the Adjusted Resulting Tax Liability. The Company shall have a right of set-off against distributions to any Member for amounts to be paid or indemnified pursuant to this <u>Section 8.9(d)</u> (or otherwise pursuant to this <u>Section 8.9</u>), and any amount so withheld shall be treated as an amount distributed to such Member for all purposes under this Agreement.

Article 9<u><br> Dissolution, Liquidation and Termination</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Dissolution</u>. Subject to the provisions of <u>Section</u> <u>9.2</u> and any Laws, the Company shall dissolve and its affairs shall be wound up only on the first to occur of the following (each a "***Liquidating 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;(a) Supermajority Approval;

&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) entry of a decree of judicial dissolution of the Company under Section 18-802 of the Act; 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;(c) the occurrence of any event which requires dissolution of a limited liability company under the Act, except that the Company shall not be dissolved pursuant to this <u>Section 9.1(c)</u> if, within ninety (90) Days after the occurrence of such event, the last remaining Member consents to the continuation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Liquidation and Termination</u>. Subject to <u>Section</u> <u>9.2(d)</u>, upon dissolution of the Company, the Cobra Member (unless another Person is selected by the Board of Directors) shall act as a liquidator ("***Liquidator***"). The Liquidator shall proceed diligently to wind up the affairs of the Company and make final distributions as provided herein and in the Act. The costs of liquidation shall be borne as a Company expense. Until final distribution, the Liquidator shall continue to operate the Company properties for a reasonable period of time to allow for the sale of all or a part of the Assets with all of the power and authority of the Members. The steps to be accomplished by the Liquidator are 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) as promptly as possible after dissolution and again after final liquidation, the Liquidator shall cause a proper accounting to be made of the Company's assets, liabilities, and operations through the last Day of the calendar month in which the dissolution occurs or the final liquidation is completed, 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;(b) the Liquidator shall cause any notices required by Law to be given to each known creditor of and claimant against the Company in the manner described by such 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;(c) upon dissolution of the Company, the Liquidator shall either sell the Assets at the best price available, or the Liquidator may distribute to the Members all or any portion of the Assets in kind. The property of the Company shall be liquidated as promptly as is consistent with obtaining the fair value thereof. The Liquidator may sell any or all Company property, including to one or more of the Members; *provided*, *however*, that any such sale to a Member must be made on an arm's length basis under terms which are in the best interest of the Company. If any Assets are sold or otherwise liquidated for value, the Liquidator shall proceed as promptly as practicable in a commercially reasonable manner to implement the procedures of this <u>Section 9.2(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;(d) subject to the terms and conditions of this Agreement and the Act (especially Section 18-803), the Liquidator shall distribute the Assets in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all remaining Assets shall be distributed to the Members in accordance with <u>Section 5.5</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) The distribution to a Member in accordance with the provisions of this <u>Section 9.2</u> constitutes a complete return to the Member of its Capital Contributions and a complete distribution to the Member of its share of all the Company's property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Provision for Contingent Claims</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) The Liquidator shall make a reasonable provision to pay all claims and obligations, including all contingent, conditional or unmatured claims and obligations, actually known to the Company but for which the identity of the claimant is unknown; 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) If there are insufficient assets to both pay the creditors pursuant to <u>Section 9.2</u> and establish the provision contemplated by <u>Section 9.3(a)</u>, the claims shall be paid as provided for in accordance to their priority, and, among claims of equal priority, ratably to the extent of assets therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Deficit Capital Accounts</u>. No Member shall have any obligation to restore any negative balance in its Capital Account at any time (including upon liquidation of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Deemed Contribution and Distribution</u>. In the event the Company is "liquidated" within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g) but no Liquidating Event has occurred, the Company's property shall not be liquidated, the Company's liabilities shall not be paid or discharged, and the Company's affairs shall not be wound up. Instead, solely for U.S. federal income tax purposes, the Company shall be deemed to have contributed all Company property and liabilities to a new partnership in exchange for an interest in such new partnership and, immediately thereafter, the Company will be deemed to liquidate by distributing interests in the new partnership to the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Certificate of Cancellation</u>. On completion of such final distribution, the Liquidator shall file a Certificate of Cancellation with the Secretary of State of the State of Delaware, cancel any other filings made pursuant to <u>Section</u> <u>2.6</u>, and take such other actions as may be necessary to terminate the existence of the Company.

Article 10<u><br> General Provisions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Notices</u>. Any notice, request, demand, and other communication required or permitted to be given or made hereunder (each a "***Notice***") shall be in writing and shall be deemed to have been duly given or made if (a) delivered personally, (b) transmitted by first class registered or certified mail, postage prepaid, return receipt requested or by electronic email, or (c) delivered by prepaid overnight courier service, in each case, to a Member at the addresses set forth on <u>Exhibit F</u> (or at such other addresses as shall be specified by a Member by similar notice). Notices shall be effective (i) if delivered personally or sent by courier service, upon actual receipt by the intended recipient, (ii) if mailed, upon the earlier of five (5) Days after deposit in the mail or the date of delivery as shown by the return receipt therefor or (iii) if delivered by electronic mail, upon an affirmative acknowledgment of receipt by the recipient thereof. Whenever any notice is required to be given by Law, the Certificate, or this Agreement, a written waiver thereof, signed by the Person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Entire Agreement</u>. This Agreement, the Transaction Documents, and the other agreements entered into on the Effective Date in connection with the foregoing (together with the exhibits and schedules of each of the foregoing), constitute the entire agreement among the Members with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the Members with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Waiver</u>. No waiver by any Member or the Company of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Member (or the Company, as applicable) so waiving. No waiver by any Member or the Company shall operate or be construed as a waiver in respect of any failure, breach, or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. Except as specifically set forth in this Agreement, no failure by a Member or the Company to exercise, or delay in exercising, any right, remedy, power, or privilege hereunder shall operate or be construed as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Non-Compensatory Damages</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, THE MEMBERS and the Company WAIVE ANY AND ALL RIGHTS, CLAIMS OR CAUSES OF ACTION AGAINST ONE ANOTHER ARISING UNDER THIS AGREEMENT FOR ANY LOST PROFITS, EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, CONSEQUENTIAL, REMOTE, OR SPECULATIVE DAMAGES (Whether in tort, contract, or otherwise), SAVE AND EXCEPT SUCH DAMAGES (A) PAYABLE WITH RESPECT TO Independent THIRD PARTY CLAIMS, OR (B) THAT WOULD OTHERWISE BE RECOVERABLE UNDER APPLICABLE LAW IN AN ACTION FOR BREACH OF CONTRACT. To the extent permitted by Law, any statutory remedies inconsistent with these terms are waived by the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Binding Effect</u>. This Agreement is binding upon and shall inure to the benefit of the Members, the Company, and their respective executors, administrators, successors, and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Governing Law; Construction</u>. All questions with respect to the execution, validity, interpretation, and performance of this Agreement and the rights and liabilities of the parties hereto will be governed by the laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware or any rule of construction or interpretation based upon which party drafted this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Dispute Resolution</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) Except as expressly set forth in this Agreement, any dispute, controversy or claim arising out of or relating to the transactions contemplated by this Agreement, or to the negotiation, execution or performance thereof, or to the inducement of the parties hereto enter therein, or the validity, interpretation, breach, violation or termination of any such agreement, including claims seeking redress or asserting rights under any Law (a "***Dispute***"), shall be resolved exclusively in accordance with the procedures set forth in this <u>Section 10.7</u>; *provided*, *however*, that nothing contained in this <u>Section 10.7</u> will limit any party's right to pursue remedies available under <u>Section 10.10</u> or <u>Section 3.19</u> or bring post arbitration actions seeking to enter judgment on an award, or to confirm or enforce an arbitration award.

&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) In the event of any Dispute, the parties hereto shall first refer the Dispute to settlement proceedings administered by the International Centre for Dispute Resolution (the "***ICDR***") in accordance with its International Mediation Rules (the "***ICDR Mediation Rules***"), without prejudice to any party's right to seek interim emergency or conservatory measures of protection at any time; *provided*, *however*, that if such party chooses to apply to a court for interim emergency or conservatory relief, then it may only do so in the courts specified in <u>Section 10.8</u>. If such Dispute has not been settled pursuant to said ICDR Mediation Rules within sixty (60) days following the filing of a request for mediation or within such other period as the parties may agree in writing or which may be shortened due to the appointment of an emergency arbitrator, such Dispute shall be finally settled under the International Arbitration Rules of the ICDR by one or more arbitrators appointed in accordance with such rules. The seat, or legal place, of arbitration shall be Houston, Texas. The language to be used in the mediation and in the arbitration shall be English. A judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof, and each of the parties hereto hereby irrevocably and unconditionally consents and submits to the personal jurisdiction of such court for such 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;(c) The parties hereto, and their respective Affiliates and representatives, agree to keep confidential the existence of any mediation or arbitration conducted under this <u>Section 10.7</u>, including, but not limited to all materials issued, submitted or exchanged in any such mediation or arbitration (including all documents and other materials produced by another Person in the mediation or arbitration), and all testimony and transcripts, except insofar as such documents are already in the public domain or to the extent that disclosure may be required by legal duty (including as necessary to comply with applicable Laws and/or stock exchange rules), to pursue or protect a legal right, or to recognize, enforce, or challenge an award before a court or other judicial authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Consent to Jurisdiction and Venue</u>. Each of the parties hereto hereby irrevocably and unconditionally consents and submits to the personal jurisdiction and exclusive venue of the Texas Business Court located in Houston, Texas (or, if the Texas Business Courts are unavailable or lack jurisdiction, then the federal courts located in the Southern District of Texas or, if the federal courts located in the Southern District of Texas lack jurisdiction, then the state courts located in Harris County, Texas), with respect to any Action to enforce a party's rights or remedies available under <u>Section</u> <u>10.10</u> or <u>Section 3.19</u>, and each of the parties hereto expressly consents and submits to and agrees that venue is proper in said courts. Each of the parties hereto hereby expressly waives any and all personal rights under applicable Law or in equity to object to the jurisdiction and venue of said courts, including the defense of an inconvenient forum to the maintenance of such Action in any such court. Each party hereto hereby authorizes and agrees to accept service of process sufficient for personal jurisdiction in any action against it as contemplated by this <u>Section 10.8</u> by registered or certified mail, return receipt requested, postage prepaid to its address for the giving of notices as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>Waiver of Right to Jury Trial</u>. EACH PARTY HERETO WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THEM AGAINST THE OTHER ARISING OUT OF, OR IN ANY WAY CONNECTED WITH, THIS AGREEMENT, THE TRANSACTION DOCUMENTS OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION HEREWITH OR THEREWITH OR THE ADMINISTRATION THEREOF OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. NO PARTY HERETO SHALL SEEK A JURY TRIAL IN ANY ACTION, PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON, OR ARISING OUT OF, THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENTS OR RELATED INSTRUMENTS. NO PARTY HERETO SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EACH PARTY HERETO CERTIFIES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH ABOVE IN THIS <u>SECTION</u> <u>10.9</u>. NO PARTY HERETO HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS <u>SECTION 10.9</u> SHALL NOT BE FULLY ENFORCED IN ALL INSTANCES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Equitable Relief</u>. Each party hereto acknowledges that it shall be inadequate or impossible, or both, to measure in money the damage to the Company and the Members, if any party hereto (or any of its successors or permitted assigns) fails to comply with any of the restrictions or obligations imposed by this Agreement, and that in the event of any such failure, the Company and the Members shall not have an adequate remedy at law or in damages. Therefore, each party hereto consents to allow the other parties to seek an injunction or the enforcement of other equitable remedies against such party at the suit of an aggrieved party without the posting of any bond or other security, to compel specific performance of all of the terms of this Agreement, and, to the fullest extent permitted by Law, waives any defenses thereto, including the defenses of: (a) failure of consideration; (b) breach of any other provision of this Agreement; (c) availability of relief in damages; (d) any defense in any action for specific performance that a remedy at law will be adequate; and (e) any requirement under any Law to post security as a prerequisite to obtaining equitable relief. Notwithstanding the foregoing, each party hereto agrees that a party may raise in response to any action for equitable relief that such party contests the existence of a breach or threatened breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <u>No Right to Action for Dissolution or Partition</u>. To the greatest extent permitted by Law, no Member has any right to maintain any action for dissolution of the Company or for partition of the property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Third-Party Beneficiaries</u>. Nothing in this Agreement is intended to or shall confer upon any Person other than the Members, and their successors and assigns, any rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement; *provided*, *however*, that the Indemnitees, the Indemnified Persons, and their respective executors, administrators, successors, and legal representatives shall be considered to be third-party beneficiaries of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>Amendments</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) Each Member agrees that the Board of Directors may adopt amendments, supplements, or modifications to this Agreement or the Certificate that are required to reflect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) a change in the name of the Company, the location of the principal place of business of the Company, or the registered agent or office 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) admission or substitution of Members whose admission or substitution has already received the requisite approval in accordance with 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;(iii) a change that the Board of Directors believes is reasonable and necessary or appropriate to (A) qualify or continue the qualification of the Company as a limited liability company under the Laws of any state or (B) comply with applicable Law; 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) an amendment that is necessary, in the opinion of counsel, to prevent the Company or its Officers from in any manner being subjected to the provisions of the Investment Company Act of 1940, as amended, or "plan asset" regulations adopted under the Employee Retirement Income Security Act of 1974, as amended, whether or not substantially similar to plan asset regulations currently applied or proposed by the United States Department of Labor.

&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) Additionally, any other amendment, supplement, termination, or modification of this Agreement or the Certificate shall be effective if approved by the Board of Directors in accordance with <u>Section 6.13(d)</u>; *provided*, *however*, that no amendment, supplement, or modification that would materially and adversely affect any Member's rights under this Agreement or the Certificate shall be effective against such Member without such Member's prior written consent; *provided further*, that no amendment, supplement, termination, or modification of <u>Section 3.3</u>, <u>Section 3.8</u>, <u>Section 3.17</u>, <u>Section 3.19</u>, <u>Section 3.20</u>, <u>Section 6.13</u>, or this <u>Section 10.13</u> shall be binding unless approved by and executed in writing by all of the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <u>Creditors</u>. None of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Company in its capacity as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <u>Disclosure; Public Announcements</u>. Each Member and the Company shall consult with the other Member before such Member, the Company, or any of their respective Affiliates issues any press release or otherwise makes any public statement, in each case with respect to such Members, the Company, or the Assets. None of the Members, the Company, or their respective Affiliates shall issue any such press release or make any such public statement without approval of the Board of Directors, which approval shall not be unreasonably withheld, conditioned, or delayed; *provided*, *however*, that nothing in this <u>Section</u> <u>10.15</u> shall prohibit a Member, the Company, or any of their respective Affiliates from making any press release or public statement that is (a) required to be issued or made under any applicable Law, the rules of any national stock exchange, or pursuant to any listing agreement with such national stock exchange; (b) issued or made in response to any order of any Governmental Authority; or (c) issued or made in the context of earnings releases or analyst presentations related to the businesses of any of the Members; and *provided further*, that, to the fullest extent permitted by applicable Law, each such Person issuing a press release or making a public disclosure will provide the other Member and the Company, as applicable, with a copy of such proposed press release or public disclosure at least twenty-four hours prior to its release or disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 **<u>Indemnities; Conspicuous Notice</u>**. **EACH INDEMNIFIED PERSON SHALL BE INDEMNIFIED PURSUANT TO <u>SECTION</u>**  **<u>8.4(c)</u>, NOTWITHSTANDING THE FACT THAT ANY OF THE LIABILITIES ARE OR WERE (a) FORESEEABLY CAUSED OR ALLEGED TO BE CAUSED, IN WHOLE OR IN PART, (i) BY THE SOLE, JOINT, OR CONCURRENT NEGLIGENCE, CONTRACTUAL COMPARATIVE NEGLIGENCE, OR OTHER FAULT OF SUCH PERSON OR (ii) WITHOUT ANY FAULT OF ANY SUCH PERSON, OR (b) ATTRIBUTABLE TO STRICT LIABILITY OR NO-FAULT LIABILITY OF SUCH PERSON; *PROVIDED*, *HOWEVER*, THAT NO INDEMNIFIED PERSON SHALL BE INDEMNIFIED PURSUANT TO <u>SECTION 8.4(c)</u>, FOR LIABILITIES TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE, BAD FAITH, OR WILLFUL MISCONDUCT OF SUCH PERSON. THE INDEMNIFICATION PROVISION SET FORTH IN <u>SECTION 8.4(c)</u> HAS BEEN EXPRESSLY NEGOTIATED IN EVERY DETAIL AND ARE INTENDED TO BE GIVEN FULL AND LITERAL EFFECT. THE COMPANY AND EACH MEMBER (INCLUDING EACH SUBSTITUTED MEMBER AND EACH ADDITIONAL MEMBER) ACKNOWLEDGE THAT THE INTENT OF THIS STATEMENT IS CLEAR AND UNEQUIVOCAL AND THIS STATEMENT CONSTITUTES CONSPICUOUS NOTICE.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.17 <u>Counterparts</u>. This Agreement may be executed in counterparts, all of which together shall constitute an agreement binding on all Members, notwithstanding that all such Members are not signatories to the original or the same counterpart. Facsimile copies of signatures shall constitute original signatures for all purposes of this Agreement and any enforcement hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.18 <u>Certain Acknowledgments</u>. Upon execution and delivery of a counterpart to this Agreement or a Joinder, each Member (including each Substituted Member and each additional Member) shall be deemed to acknowledge to the Company as follows: (a) the Cobra Member has retained Bracewell LLP in connection with the transactions contemplated hereby and may retain Bracewell LLP as legal counsel in connection with the Cobra Member's investment in the Company, (b) unless otherwise specifically set forth in a written engagement letter with Bracewell LLP, Bracewell LLP is not representing the Company or any Member (other than the Cobra Member) in connection with the transactions contemplated hereby and if any Person wishes counsel on the transactions contemplated hereby, such Person shall retain its own independent counsel, (c) the Bugatti Member has retained McDermott Will & Emery LLP in connection with the transactions contemplated hereby and may retain McDermott Will & Emery LLP as legal counsel in connection with the Bugatti Member's investment in the Company, and (d) unless otherwise specifically set forth in a written engagement letter with McDermott Will & Emery LLP, McDermott Will & Emery LLP is not representing the Company or any Member (other than the Bugatti Member) in connection with the transactions contemplated hereby and if any Person wishes counsel on the transactions contemplated hereby, such Person shall retain its own independent counsel.

*[Signature Page Immediately Follows]*

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.

By: 

Name: 

Title: 

*Signature Page to Amended and Restated LLC Agreement of [●] LLC* 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.

By: 

Name: 

Title: 

By: 

Name: 

Title: 

*Signature Page to Amended and Restated LLC Agreement of [●] LLC*

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.

By: 

Name: 

Title: 

By: 

Name: 

Title: 

*Signature Page to Amended and Restated LLC Agreement of [●] LLC*

**EXHIBIT A<br>Adjusted EBITDA – Principles and Illustration**

**<u>Definition of EBITDA for Exit Valuation Calculation</u>**

Adjusted EBITDA means, with respect to the Business, the net income for the previous 4 quarters calculated as of the most recently-completed quarter-end date, calculated in accordance with GAAP, as applied by the Company, excluding, without duplication (to the extent any of the following have been charged, expensed or deducted in computing such earnings they shall be added back and to the extent any of the following have been added therein to increase such earnings, they shall be deducted):

&nbsp;&nbsp;&nbsp;&nbsp;a) interest expense or similar charges (including any charges in respect of the incurrence of debt or with
respect to the amortization of capitalized debt issuance costs, factoring costs, any charges or interest resulting from finance or capital
leases or other purchase arrangements and the fees paid or payable for guarantees, hedges, interest rate swaps or letters of credit);

&nbsp;&nbsp;&nbsp;&nbsp;b) tax expense (including any fines, late payment interest and/or penalties paid or to be paid to the tax
authorities or other Governmental Authority);

&nbsp;&nbsp;&nbsp;&nbsp;c) depreciation and amortization including accelerated depreciation expense, impairment charges or assets
write off;

&nbsp;&nbsp;&nbsp;&nbsp;d) the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) dividend income or expense,

ii) parent guarantee expenses, but excluding, for the avoidance of doubt, any cost or expense associated with any guarantees, letters of credit, surety bonds or other similar contractual support obligations issued by a bank or other financial institution,

iii) any gain or losses of a capital nature (including, for the avoidance of doubt, those arising from any sale and leaseback arrangements or from the sale, disposal or scrapping of any fixed asset or equipment),

iv) minority interest and non-controlling interest costs, but excluding commission expense paid to Baker Hughes Pressure Control Middle East Co. Ltd. for manufacturing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) separation and integration costs, including associated retention and severance,

vi) restructuring and transfer-of-work related costs,

vii) any shareholder allocations, assessments, or management fees, but excluding fees for any Cobra Support Service that are reasonably chargeable or allocable to the Company or its Subsidiaries and not the Cobra Member or its Affiliates in a manner consistent with standard industry practices for publicly traded companies engaged in businesses similar to the Business and GAAP,

Exhibit A-1

viii) any gains or losses arising in respect of any acquisition accounting, including for the avoidance of doubt any charges related to fair value adjustments or any other opening balance sheet adjustments in respect of the transactions contemplated by the Framework Agreement,

ix) unrealized gains or losses arising from foreign currency exchange,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x) gains or losses attributable to the early extinguishment of indebtedness or derivative instruments,

xi) any gains or losses arising from revaluation of any assets, except in the ordinary course of business,

xii) any gains or losses in respect of fair value adjustments recorded in respect of any financial instruments of the Business,

xiii) any gains or losses in respect of the cumulative effect of a change in accounting principles during such period,

xiv) any gains or losses from disposed (or disposal of), abandoned, transferred, closed or discontinued operations, company, brand, or business,

xv) extraordinary stock-based compensation expenses awarded solely for retention purposes and in connection with the integration of the Business. "Retention purposes" will not include, among other things, compensation expense for awards made (a) to replace any awards granted by the Bugatti Member or its Affiliates to employees of the Business prior to the Effective Date, (b) in the ordinary course of business in respect of an employee's annual compensation package, such as awards given in connection with promotions, to recognize performance or to meet competitive pressures, or (c) to new hires to fill vacant positions,

xvi) any one time or non-recurring income or costs incurred in respect to any corporate action, new acquisitions or transaction (for the avoidance of doubt, including any such costs incurred pursuant to the Framework Agreement) including, but not limited to, restructuring expense, transaction expense, and similar one-time charges,

xvii) any gains, income, costs or losses that are non-recurring due to size, in nature, or type, and do not relate to the normal course of the business and are not expected to recur in the foreseeable future as defined by GAAP prior to the effectiveness of FASB ASU 2015-01.

Exhibit A-2

## Exhibit 99.2

**Exhibit 99.2**

![](tm2516702d1_ex99-2img001.jpg)

**Cactus Announces Agreement to Acquire 65% Controlling Interest in Baker Hughes' Surface Pressure Control Business**

**HOUSTON – June 2, 2025 –** Cactus, Inc. (NYSE: WHD) ("Cactus" or the "Company") announced today that its subsidiary Cactus Companies, LLC has entered into a definitive agreement with certain subsidiaries of Baker Hughes Company ("Baker Hughes") to acquire 65% and assume operational control of the Baker Hughes Surface Pressure Control Business ("SPC" or the "Business"). SPC designs, manufactures and services specialized surface pressure control solutions, primarily wellheads and production tree equipment, for international markets.

**Business Highlights**

· Acquisition establishes Cactus' position as a premier, capital-light and geographically diversified oilfield equipment manufacturer

· Transforms Cactus' geographic footprint, with ~85% of SPC revenues generated in the Middle East and no material U.S. external
sales, providing for a more diverse and stable consolidated Cactus Pressure Control revenue profile through market cycles

· Greater revenue, earnings and cash flow visibility from the acquisition resulting from SPC's $600+ million product and aftermarket
service backlog as of December 31, 2024

· Highly accretive to financial metrics while maintaining a conservative balance sheet

· A Joint Venture will be formed to hold SPC, and Baker Hughes will retain 35% ownership in the Joint Venture post-closing

Scott Bender, Chairman and CEO of Cactus, commented, "I am extremely pleased to announce this acquisition today, which is the result of a long, exhaustive process to responsibly enter several of the most important oil and gas markets in the world. The SPC Business meets all of our acquisition criteria. Its geographic footprint is highly complementary to Cactus' existing business, and this combination enables us to expand our reach as a capital-light manufacturer of highly-engineered products sold directly to end users. Additionally, our leadership team's familiarity with the Business, which operates former Wood Group Pressure Control assets that members of our team previously managed, provides increased confidence in operating the business efficiently. We are excited to partner with Baker Hughes in the Joint Venture operating SPC, as their partnership will be instrumental to transition key administrative services and will assist in a smooth transition of critical customer relationships and long-term contracts.

The current SPC leadership team has substantially improved the operating and financial performance of the Business in the past several years through service facility and manufacturing footprint rationalizations, and we look forward to continuing optimization work with the leadership team to further progress SPC's capabilities. Over time, we expect to enhance the supply chain given our specialized knowledge of these products and our expanding global low-cost manufacturing footprint, driving improved financial returns.

In conclusion, we have been evaluating alternatives to expand our operational capabilities and geographic footprint, and we believe that the acquisition of our interest in SPC represents the most attractive expansion opportunity available. This transaction provides us with improved access to important new non-tariff impacted markets for both Pressure Control and Spoolable Technologies products to continue the growth trajectory we have demonstrated since our founding and should diversify and stabilize our revenue streams through cycles. I am pleased that we have structured the transaction to enable us to acquire a controlling share of the business while maintaining financial flexibility in this market environment, and we expect to close the transaction later this year with little-to-no net debt. We look forward to operating this business with the same focus on margins, returns and customer execution that you have come to expect of Cactus, with the goal of increasing long-term value for shareholders."

**Transaction & Financing Details**

Cactus will purchase a 65% interest in SPC for $344.5 million ($530 million total enterprise value on a cash-free, debt-free basis) subject to customary purchase price adjustments. Cactus also plans to capitalize the JV balance sheet with $70 million of operating cash at close, and Baker Hughes will contribute 35% of that cash which will be paid back to them over time. Any time after the second anniversary of closing, Cactus has the right to purchase, and Baker Hughes has the right to require Cactus to purchase, the remaining 35% interest. Cactus expects to utilize cash on hand (approx. $348 million as of March 31, 2025) and funds from its undrawn $225 million revolving credit facility to fund the up-front consideration. The Company may elect to pursue one or more debt financing transactions prior to closing to preserve revolving credit facility liquidity. Closing is expected to occur in the second half of 2025.

**Advisors**

Piper Sandler & Co. is serving as the exclusive financial advisor to Cactus and Bracewell LLP is serving as legal counsel in association with the transaction.

**Conference Call & Webcast Information**

Cactus will host a conference call to discuss the acquisition on Monday, June 2, 2025 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The call will be webcast on Cactus' website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of start time to ensure a proper connection. In addition, a presentation with additional information relating to the SPC acquisition is available on the Company's website at www.CactusWHD.com.

**About Cactus, Inc.**

Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers' wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers throughout North America and Australia, while also providing equipment and services in select international markets.

***Cautionary Statement Concerning Forward-Looking Statements***

*Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus' control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.*

*Forward-looking statements can be identified by the use of forward-looking terminology including "may," "believe," "expect," "intend," "anticipate," "plan," "should," "estimate," "continue," "potential," "will," "hope," "opportunity," "maintaining," "provide," "providing for" or other similar words and include the Company's expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other "forward-looking" information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties, including unanticipated challenges related to the proposed acquisition. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.*

**Cactus, Inc.**

Alan Boyd, 713-904-4669

Director of Corporate Development and Investor Relations

IR@CactusWHD.com

Source: Cactus, Inc.

## Exhibit 99.3

**Exhibit 99.3**

****

<br> &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img001.jpg)<br>

---

| | |
|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img002.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 Non-GAAP Measures This presentation includes references to EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA Margin with respect to Cactus and SPC (each of which is defined below), which are not measures calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Reconciliations of EBITDA, Adjusted EBITDA and Transaction Adjusted EBITDA to net income, the most directly comparable measure calculated in accordance with GAAP, and calculations of Adjusted EBITDA margin, are provided in the Appendix included in this presentation. While management believes such measures are useful for investors, these measures should not be used as a replacement for financial measures that are calculated in accordance with GAAP. Information Presented On February 28, 2023, Cactus, Inc., through one of its subsidiaries, completed its previously announced merger of the FlexSteel business (the "FlexSteel Merger") through a merger with HighRidge Resources, Inc. and its subsidiaries ("HighRidge"). On February 27, 2023, in order to facilitate the FlexSteel Merger with HighRidge, an internal reorganization was completed in which Cactus Companies, LLC ("Cactus Companies"), a newly formed wholly-owned subsidiary of Cactus, Inc., acquired all of the outstanding units representing ownership interests in Cactus Wellhead, LLC, the operating subsidiary of Cactus, Inc. (the "CC Reorganization"). FlexSteel Holdings, Inc. was a wholly-owned subsidiary of HighRidge prior to the FlexSteel Merger and was converted into a limited liability company, contributed from HighRidge to Cactus Companies as part of the CC Reorganization and is now named FlexSteel Holdings, LLC ("FlexSteel").Unless otherwise specifically noted herein or the context otherwise requires, information set forth herein with respect to periods prior to February 28, 2023 does not include the information of HighRidge and the FlexSteel business. Accordingly, unless otherwise specifically noted herein or the context otherwise requires, information with respect to Cactus, Inc. and its consolidated subsidiaries (the "Company", "we", "us", "our" and "Cactus") for the periods prior to February 28, 2023 refers only to Cactus prior to the FlexSteel Merger and does not include results and other information associated with HighRidge and the FlexSteel business. On June 2, 2025, Cactus Companies entered into a Framework Agreement with certain subsidiaries of Baker Hughes Company, pursuant to which Cactus, Inc. will acquire Baker Hughes Company's surface pressure control business ("SPC" or "Baker Hughes Surface Pressure Control"), as described in Cactus, Inc.'s Current Report on Form 8-K filed June 2, 2025 (such transaction, the "SPC Transaction"). This presentation includes certain historical financial information related to SPC. Such financial information has been prepared in accordance with the relevant accounting records of Baker Hughes Holdings LLC and its affiliates, and has not been audited. An independent audit of SPC's financial information for the year ended December 31, 2024 has not yet been conducted, but is expected to be completed by the closing of the SPC Transaction. As such, the SPC financial information presented herein is preliminary and subject to change, and material adjustments thereto may be necessary upon completion of the audit. None of Baker Hughes Company or its affiliates or any of its or their affiliates' respective representatives have any responsibility for the content of this presentation. Forward-Looking Statements The information in this presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this presentation, regarding the SPC Transaction, our strategy, future operations, financial position, expected revenue, EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA margin, projected costs, pro forma financial profile, prospects, plans and objectives of management are forward-looking statements. When used in this presentation, the words "guidance," "outlook," "may," "hope," "potential," "could," "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Cactus' current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. We caution you not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties, including unanticipated challenges relating to the FlexSteel business or SPC, and our ability to realize the expected benefits and synergies of the SPC Transaction. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in Cactus, Inc.'s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and the other documents that Cactus, Inc. files from time to time with the Securities and Exchange Commission ("SEC"). These documents are available on the Company's website at https://cactuswhd.com/investors/sec-filings/ or through the SEC's Electronic Data Gathering and Analysis Retrieval ("EDGAR") system at www.sec.gov. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. We disclaim any duty to update and do not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this presentation. Industry and Market Data This presentation has been prepared by Cactus and includes market data and other statistical information from third-party sources, including independent industry publications, government publications or other published independent sources. Some data is also based on Cactus' good faith estimate. Although Cactus believes these third-party sources are reliable as of their respective dates, Cactus has not independently verified the accuracy or completeness of this information. Important Disclosures |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img003.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 Increased Scale & Geographic Diversification With Strong Growth Potential in Key Markets Manufacturer of a Highly Engineered Product Sold Directly to End-Users Ability to Improve Financial Performance Through Management Know-How Low Future Capex Requirements Enhance Free Cash Flow Highly Variable Cost Business SPC Meets Cactus' Acquisition Criteria |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img004.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 Cactus to form a JV with Baker Hughes whereby Cactus acquires 65% of SPC for $344.5 million ($530mm total enterprise value on a cash-free, debt-free basis) subject to customary purchase price adjustments Consideration to be paid in cash, with closing expected in the second half of 2025 subject to customary closing conditions and regulatory approvals Any time after the second anniversary of closing, Cactus has the right to purchase, and Baker Hughes has the right to require Cactus to purchase, the remaining 35% interest Baker Hughes remaining as a JV partner for at least two years provides further comfort in transitioning administrative services and in maintaining critical customer relationships Upfront purchase price to be funded with cash on hand and funds from Cactus' undrawn $225mm revolving credit facility Cactus may pursue one or more debt financing transactions before closing to preserve revolving facility liquidity The upfront purchase price of 65% represents a multiple of approximately 6.7x 2024 Transaction Adjusted EBITDA(1) Expect to achieve annualized cost synergies of approximately $10mm within 12 months of closing Transaction & Financing Overview Transaction Overview Strategic Rationale Geographic diversification increases stability of the revenue profile through the cycle Increased scale via product lines well understood by Cactus management Access to attractive customers with long-term investment horizons, including NOCs and IOCs Greater revenue, earnings and cash flow visibility provided by substantial backlog (>$600mm as of December 31, 2024) Provides expansive international footprint to accelerate growth of FlexSteel products and services Highly accretive to financial metrics, while maintaining fortress balance sheet and financial flexibility Combined business supportive of continued capital returns to shareholders 1) EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Subsequent pages in this presentation contain reconciliations to the most comparable financial measures calculated in accordance with GAAP. |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img005.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5 Surface Pressure Control At a Glance About SPC Baker Hughes Surface Pressure Control business designs and manufactures specialized pressure control equipment (wellhead systems and production trees) Combination of former Vetco Gray onshore and Wood Group Pressure Control businesses Provides field service and repair work for large installed base of equipment 1) Financial information related to SPC has not been audited. Total Adjusted EBITDA reflects fully consolidated SPC, which includes the earnings of a 10% JV partner in SPC's business in Saudi Arabia. 2) EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Subsequent pages in this presentation contain reconciliations to the most comparable financial measures calculated in accordance with GAAP. $498 million 2024 Revenue(1) $87 million 2024 Adjusted EBITDA(12) 17% 2024 Adjusted EBITDA Margin(12) >$600mm December 31, 2024 Backlog ~85% Middle East Revenues(1) >$150mm 2024 Aftermarket Service Revenue(2) 3 International Manufacturing Facilities ~1,100 Employees Carbon Capture and Injection Wellhead Solutions Conventional Wellhead Systems Compact Multibowl Wellhead Solutions Geothermal Wellhead Solutions 1906 Founded 1986 Regan Forge Legacy acquired by Vetco Gray 2007 Acquired by GE Oil & Gas 2011 Acquired by GE Oil & Gas 2017 GE Oil & Gas merged with Baker Hughes |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img006.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6 Onshore Middle East Shelf Deepwater NAM Tight Liquids Oil Sands Rest of World Onshore Russia Onshore Extra Heavy Oil Total Remaining Resources (Billion Barrels) $27 $37 $43 $45 $46 $47 $52 $57 $0 $10 $20 $30 $40 $50 $60 $70 $80 0 200 400 600 Volume-Weighted Average Breakeven Price Height Indicates 60% Confidence Interval Breakeven Price Width Indicates Total Remaining Resources Brent Breakeven Price ($/ Barrel) Onshore Middle East Offers Lowest Breakeven for New Wells(1) SPC 2024 Revenue by Region(2) 1) Source: Rystad Energy as of October 2024. Excludes currently producing resources 2) Financial information related to SPC has not been audited. Well Positioned to the Most Resilient Oil and Gas Market Middle East onshore wells continue to have the lowest breakeven costs per barrel, providing long-term resiliency The vast majority of SPC revenues are derived from this market Middle East ~85% Other International ~15% |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img007.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7 Cactus Current (1) Cactus Pro Forma (SPC 100%)(2) Pressure Control Revenue Cactus Consolidated Revenue Transformative Geographic Exposure U.S. 56% International 44% U.S. 66% International 34% U.S. 94% International 6% 1) Reflects 2024 results. International defined as non-U.S. revenue. 2) Reflects Cactus 2024 results, adjusted for unaudited SPC (100%) 2024 results. International defined as non-U.S. revenue. U.S. 95% International 5% |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img008.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 Global SPC Operations(1) Expansive Global Operating Footprint Iraq Iran Saudi Arabia U.A.E. Qatar Kuwait Manufacturing Dammam, Saudi Arabia Service Qatar Headquarters & Manufacturing Abu Dhabi, UAE Manufacturing Suzhou, China Service Villahermosa, Mexico R&D Houston, Texas Standalone Facilities Primary Shared Facilities Engineering Bangalore, India Service & Repair Rumaila, Iraq Service & Repair East Ahmadi, Kuwait Service & Repair Bergen, Norway Service & Repair Stavanger, Norway Service & Repair Dyce Aberdeen, UK 1) Represents facilities dedicated to SPC in addition to facilities that will be shared for a period post-close while Cactus establishes its own facilities. Excludes facilities with nominal SPC headcount. |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img009.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 2024 Financial Information (Excluding Synergies) Pro Forma Financial Profile Cactus Consolidated SPC (100%)(1) Cactus & SPC(2) Revenue $1,130 million $498 million $1,628 million Adj. EBITDA(3) $392 million $87 million $479 million Adj. EBITDA Margin(3) 35% 17% 29% Net Capital Expenditures(4) $35 million $10 million $46 million Adj. EBITDA – Net Capex $357 million $76 million $433 million Note: Figures may not sum due to rounding. 1) Financial information related to SPC has not been audited. Total Adjusted EBITDA reflects fully consolidated SPC, which includes the earnings of a 10% JV partner in SPC's business in Saudi Arabia. 2) Represents the sum of Cactus Consolidated and "SPC (100%)." Does not reflect the potential impact of any purchase price adjustments that may result from purchase accounting. 3) EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Subsequent pages in this presentation contain reconciliations to the most comparable financial measures calculated in accordance with GAAP. 4) Net Capital Expenditures (or "Net Capex") for Cactus represents cash flows from investing activities and for SPC represents net capital expenditures. |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img010.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appendix |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img011.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11 Non-GAAP Reconciliation (SPC 100%) Important Disclosure Regarding Non-GAAP Measures EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA margin are not measures calculated in accordance with GAAP. EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that are used by SPC management. We define SPC's EBITDA as net income excluding net interest, income tax, other expenses, and depreciation and amortization. We define SPC's Adjusted EBITDA and Transaction Adjusted EBITDA as EBITDA excluding the items indicated below. We define SPC's Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of Revenue. We believe EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA margin are useful because they allow management to more effectively evaluate SPC's operating performance and compare the results of SPC's operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA margin should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computations of SPC's EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to other similarly titled measures of other companies. We present SPC's EBITDA, Adjusted EBITDA, Transaction Adjusted EBITDA and Adjusted EBITDA margin because we believe they provide useful information regarding the factors and trends affecting SPC's business. The following financial information has been prepared in accordance with the relevant accounting records of Baker Hughes Holdings LLC and its affiliates. This financial information has not been audited. An independent audit of SPC's financial information for the year ended December 31, 2024 has not yet been conducted, but is expected to be completed by the closing of the SPC Transaction. As such, the SPC financial information presented below is preliminary and subject to change, and material adjustments thereto may be necessary upon completion of the audit. 1) Reflects non-recurring expenses associated with the shutdown of a manufacturing facility in Mexico. 2) Reflects a selling commission due to a 10% non-controlling interest partner in Saudi Arabia excluded from operating income. 3) Other adjustments include out-of-period adjustments, non-recurring contract results, normalization of incentive compensation and other non-operational or timing adjustments. 4) Adjusted EBITDA reflects fully consolidated SPC, which includes the earnings of a 10% JV partner in SPC's business in Saudi Arabia. 5) Reflects a 10% JV partner in Saudi Arabia's share of earnings on an EBITDA basis, which is not included in the transaction. Year Ended ($ in thousands) December 31, 2024 2023 Net income $51,304 $23,278 Interest expense, net 49,148 6,575 Other income (21067) (2133) Income tax expense 3,154 6,423 EBIT 82,539 34,143 Depreciation and amortization 4,709 5,716 EBITDA $87,248 $39,859 Business restructuring(1) 3,207 - Saudi Arabia JV commission expense(2) (5421) (4359) Other adjustments(3) 1,827 13,240 Adjusted EBITDA(4) $86,861 $48,740 Saudi Arabia JV non-controlling interest(5) (7284) (5330) Transaction Adjusted EBITDA $79,577 $43,410 Revenue $498,194 $461,231 Net income margin 10.3% 5.0% Adjusted EBITDA margin 17.4% 10.6% |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12 Year Ended ($ in thousands) December 31, 2024 2023 Net income $232,758 $214,840 Interest expense (income), net (6459) 6,480 Income tax expense 66,518 47,536 EBIT 292,817 268,856 Depreciation and amortization 60,438 65,045 EBITDA $353,255 $333,901 Revaluation of tax receivable agreement liability (3204) (4490) Transaction related expenses 2,793 12,183 Remeasurement loss on earn-out liability 16,318 14,850 Inventory step-up expense - 23,516 Stock-based compensation 22,888 18,105 Adjusted EBITDA $392,050 $398,065 Pressure Control Revenue $724,038 $756,727 Spoolable Technologies Revenue 407,038 340,233 Corporate and Other Eliminations (1262) - Total Revenue $1,129,814 $1,096,960 Net income margin 20.6% 19.6% Adjusted EBITDA margin 34.7% 36.3% Non-GAAP Reconciliation (Cactus) Important Disclosure Regarding Non-GAAP Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not measures calculated in accordance with GAAP. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that are used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define EBITDA as net income excluding net interest, income tax and depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding severance expenses, revaluation of tax receivable agreement liability, (gain) loss on debt extinguishment, stock-based compensation, remeasurement loss on earn-out liability, inventory step-up expense, and transaction (acquisition or equity offering) related expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of Revenue. Our management believes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are useful because they allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computations of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to other similarly titled measures of other companies. We present EBITDA, Adjusted EBITDA and Adjusted EBITDA margin because we believe they provide useful information regarding the factors and trends affecting our business.  |

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| &nbsp;&nbsp;![GRAPHIC](tm2516702d1_ex99-3img013.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 Alan Boyd Director of Corporate Development & Investor Relations 713-904-4669 IR@CactusWHD.com Investor Relations Contact |

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