Document:

Asset and Stock Purchase Agreement

  
 Exhibit 10.1

 EXECUTION COPY 
 ASSET AND STOCK PURCHASE AGREEMENT 
 BY AND AMONG 

SENSATA TECHNOLOGIES, INC., 
 HONEYWELL CO. LTD., 
 HONEYWELL SPOL S.R.O., 

HONEYWELL AEROSPACE S.R.O., 
 HONEYWELL (CHINA) CO. LTD., 
 HONEYWELL AUTOMATION INDIA LIMITED,

 HONEYWELL JAPAN INC. 
 HONEYWELL CONTROL SYSTEMS LIMITED 
 HONEYWELL GMBH 

AND 

HONEYWELL INTERNATIONAL INC. 
 October 28, 2010 

  
 Table of Contents

  

									
	 	 	 	 	 	  	Page	 
		
	 ARTICLE I CERTAIN DEFINITIONS
	  	 	2	  
				
		 	1.1	 	 Certain Definitions
	  	 	2	  
		
	 ARTICLE II PURCHASE AND SALE OF SHARES AND ASSETS AND ASSUMPTION OF LIABILITIES
	  	 	12	  
				
		 	2.1	 	 Purchase and Sale of Shares and Assets
	  	 	12	  
		 	2.2	 	 Assets of the Purchased Entities
	  	 	14	  
		 	2.3	 	 Excluded Assets
	  	 	15	  
		 	2.4	 	 Assumption of Liabilities
	  	 	16	  
		 	2.5	 	 Excluded Liabilities
	  	 	18	  
		 	2.6	 	 Liabilities of the Purchased Entities
	  	 	21	  
		
	 ARTICLE III CLOSING; CLOSING DELIVERIES
	  	 	21	  
				
		 	3.1	 	 Purchase Price
	  	 	21	  
		 	3.2	 	 Closing Date
	  	 	22	  
		 	3.3	 	 Closing Deliveries
	  	 	22	  
		 	3.4	 	 Working Capital
	  	 	25	  
		 	3.5	 	 Purchase Price Allocation
	  	 	27	  
		 	3.6	 	 Withholding
	  	 	28	  
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS
	  	 	28	  
				
		 	4.1	 	 Corporate Status
	  	 	28	  
		 	4.2	 	 Authority
	  	 	29	  
		 	4.3	 	 No Conflict; Government Authorizations
	  	 	29	  
		 	4.4	 	 Capitalization
	  	 	30	  
		 	4.5	 	 Financial Statements
	  	 	31	  
		 	4.6	 	 Absence of Certain Changes; Undisclosed Liabilities
	  	 	31	  
		 	4.7	 	 Taxes
	  	 	34	  
		 	4.8	 	 Intellectual Property
	  	 	36	  
		 	4.9	 	 Legal Proceedings
	  	 	37	  
		 	4.10	 	 Compliance with Laws; Permits
	  	 	38	  
		 	4.11	 	 Environmental Matters
	  	 	38	  
		 	4.12	 	 Employee Matters and Benefit Plans
	  	 	39	  
		 	4.13	 	 Material Contracts
	  	 	42	  
		 	4.14	 	 Material Customers and Suppliers
	  	 	43	  
		 	4.15	 	 Real Properties
	  	 	43	  
		 	4.16	 	 Personal Properties
	  	 	43	  
		 	4.17	 	 Sufficiency of Assets
	  	 	44	  
		 	4.18	 	 Labor
	  	 	44	  
		 	4.19	 	 Insurance
	  	 	45	  
		 	4.20	 	 Products Liability; Warranty
	  	 	45	  
		 	4.21	 	 Finder’s Fee
	  	 	46	  

									
		 	 4.22
	 	 Bank Accounts; Directors and Officers
	  	 	46	  
		 	 4.23
	 	 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES
	  	 	46	  
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER
	  	 	46	  
				
		 	 5.1
	 	 Corporate Status
	  	 	46	  
		 	 5.2
	 	 Authority
	  	 	46	  
		 	 5.3
	 	 No Conflict; Required Filings
	  	 	47	  
		 	 5.4
	 	 Legal Proceedings
	  	 	47	  
		 	 5.5
	 	 Sufficient Funds
	  	 	47	  
		 	 5.6
	 	 Investment Intent
	  	 	48	  
		 	 5.7
	 	 No Reliance
	  	 	48	  
		 	 5.8
	 	 Finder’s Fee
	  	 	49	  
		 	 5.9
	 	 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES
	  	 	49	  
		
	 ARTICLE VI COVENANTS
	  	 	50	  
				
		 	 6.1
	 	 Interim Operations of the Business
	  	 	50	  
		 	 6.2
	 	 Filings with Governmental Authorities
	  	 	52	  
		 	 6.3
	 	 Consents; Shared Agreements
	  	 	55	  
		 	 6.4
	 	 Confidentiality; Access to Information
	  	 	57	  
		 	 6.5
	 	 Publicity
	  	 	61	  
		 	 6.6
	 	 Books and Records
	  	 	61	  
		 	 6.7
	 	 Further Action
	  	 	62	  
		 	 6.8
	 	 Expenses
	  	 	63	  
		 	 6.9
	 	 Notification of Certain Matters
	  	 	63	  
		 	 6.10
	 	 Employees and Employee Benefit Plans
	  	 	63	  
		 	 6.11
	 	 Indebtedness; Intercompany Accounts
	  	 	70	  
		 	 6.12
	 	 Insurance Matters
	  	 	72	  
		 	 6.13
	 	 Non-Solicitation of Employees
	  	 	72	  
		 	 6.14
	 	 Non-Competition
	  	 	73	  
		 	 6.15
	 	 Business Confidential Information
	  	 	75	  
		 	 6.16
	 	 Waiver of Conflicts and Attorney-Client Privilege
	  	 	76	  
		 	 6.17
	 	 Closing Cash Balance
	  	 	76	  
		 	 6.18
	 	 Sellers’ Marks
	  	 	76	  
		 	 6.19
	 	 Exclusivity
	  	 	77	  
		 	 6.20
	 	 Certain Payments
	  	 	78	  
		 	 6.21
	 	 Compliance with Letter Agreements
	  	 	78	  
		 	 6.22
	 	 HTT Supply Agreement
	  	 	78	  
		 	 6.23
	 	 HTT Support Obligation
	  	 	78	  
		
	 ARTICLE VII CLOSING CONDITIONS
	  	 	78	  
				
		 	 7.1
	 	 Conditions to Obligations of the Sellers and Purchaser
	  	 	78	  
		 	 7.2
	 	 Additional Conditions to Obligations of Purchaser
	  	 	79	  
		 	 7.3
	 	 Additional Conditions to Obligations of the Sellers
	  	 	79	  
		
	 ARTICLE VIII CERTAIN TAX MATTERS
	  	 	80	  
				
		 	 8.1
	 	 Tax Returns
	  	 	80	  
		 	 8.2
	 	 Cooperation on Tax Matters; Contests
	  	 	81	  

  
 iii

									
		 	8.3	 	 Tax Sharing Agreements
	  	 	82	  
		 	8.4	 	 Tax Indemnifications
	  	 	82	  
		 	8.5	 	 Certain Taxes
	  	 	84	  
		 	8.6	 	 VAT.
	  	 	84	  
		 	8.7	 	 Check the Box Elections
	  	 	85	  
		 	8.8	 	 Wage Reporting
	  	 	85	  
		
	 ARTICLE IX TERMINATION
	  	 	85	  
				
		 	9.1	 	 Termination
	  	 	85	  
		 	9.2	 	 Effect of Termination and Abandonment
	  	 	85	  
		
	 ARTICLE X SURVIVAL; INDEMNIFICATION
	  	 	86	  
				
		 	10.1	 	 Survival of Representations, Warranties and Agreements
	  	 	86	  
		 	10.2	 	 Indemnification
	  	 	86	  
		 	10.3	 	 Indemnification Procedures
	  	 	87	  
		 	10.4	 	 Indemnification Limitations
	  	 	89	  
		
	 ARTICLE XI MISCELLANEOUS
	  	 	92	  
				
		 	11.1	 	 Notices
	  	 	92	  
		 	11.2	 	 Severability
	  	 	93	  
		 	11.3	 	 Entire Agreement; No Third-Party Beneficiaries
	  	 	93	  
		 	11.4	 	 Amendment; Waiver
	  	 	94	  
		 	11.5	 	 Binding Effect; Assignment
	  	 	94	  
		 	11.6	 	 Disclosure Schedule
	  	 	94	  
		 	11.7	 	 Governing Law
	  	 	94	  
		 	11.8	 	 Dispute Resolution; Mediation; Jurisdiction
	  	 	94	  
		 	11.9	 	 Construction; Interpretation
	  	 	95	  
		 	11.10	 	 Counterparts
	  	 	96	  

  
 iv 

  
 Index of Defined
Terms 
  

					
	 Term
	  	Page	 
		
	 Acceptable Product Derivations
	  	 	2	  
	 Acquired Intellectual Property
	  	 	2	  
	 Acquired Patents
	  	 	2	  
	 Action
	  	 	37	  
	 Actual GME Capital Expenditure Amount
	  	 	3	  
	 Affiliate
	  	 	3	  
	 Agreement
	  	 	1	  
	 Ancillary Agreements
	  	 	3	  
	 Applicable Requirements
	  	 	59	  
	 Application-Specific Packaging
	  	 	3	  
	 ASIC
	  	 	3	  
	 Asset Sellers
	  	 	3	  
	 Assumed Environmental Liabilities
	  	 	18	  
	 Assumed Liabilities
	  	 	16	  
	 Audit Assistance Request
	  	 	60	  
	 Automotive Field
	  	 	3	  
	 Balance Sheets
	  	 	31	  
	 Bill of Sale
	  	 	22	  
	 Budgeted GME Capital Expenditure Amount
	  	 	3	  
	 Business
	  	 	1	  
	 Business Confidential Information
	  	 	75	  
	 business day
	  	 	3	  
	 Business Material Adverse Effect
	  	 	4	  
	 Business Related Excluded Liabilities Claim
	  	 	91	  
	 Carve-Out Financial Information
	  	 	59	  
	 Carve-Out Financial Statements
	  	 	59	  
	 China Consent
	  	 	4	  
	 China Employees
	  	 	69	  
	 China Transfer Agreement
	  	 	4	  
	 Chinese Approval Authority
	  	 	4	  
	 Chinese Registration Authority
	  	 	4	  
	 Chip-on Lead Frame Patents
	  	 	4	  
	 Chonan Manufacturing Agreement
	  	 	23	  
	 Closing
	  	 	22	  
	 Closing Date
	  	 	22	  
	 COBRA
	  	 	65	  
	 Code
	  	 	4	  
	 Collateral Source
	  	 	90	  
	 Company Plan
	  	 	40	  
	 Company Plans
	  	 	40	  
	 Competing Business
	  	 	73	  
	 Confidential ASIC Technology Agreement
	  	 	23	  
	 Confidentiality Agreement
	  	 	57	  

  
 v 

					
	 Confidentiality Obligations
	  	 	59	  
	 Contract
	  	 	4	  
	 control
	  	 	5	  
	 Current Representation
	  	 	76	  
	 Current-Sensing Products
	  	 	5	  
	 Czech Republic Employees
	  	 	66	  
	 De Minimis Loss
	  	 	90	  
	 Disclosure Schedule
	  	 	28	  
	 Dispute
	  	 	94	  
	 Disputed Amount
	  	 	25	  
	 DOJ
	  	 	5	  
	 Employees
	  	 	63	  
	 Encumbrances
	  	 	43	  
	 Environmental Claims
	  	 	39	  
	 Environmental Laws
	  	 	39	  
	 Environmental Reports
	  	 	39	  
	 Equity Interests
	  	 	1	  
	 ERISA
	  	 	5	  
	 ERISA Affiliate
	  	 	5	  
	 Exacerbation of Pre Existing Conditions
	  	 	5	  
	 Excluded Assets
	  	 	15	  
	 Excluded Liabilities
	  	 	19	  
	 Excluded Names
	  	 	15	  
	 Excluded Products
	  	 	74	  
	 Excluded Representations
	  	 	90	  
	 Existing Customers
	  	 	5	  
	 Existing Products
	  	 	5	  
	 Final Net Working Capital
	  	 	25	  
	 Financial Statements
	  	 	31	  
	 Flow Sensor Products
	  	 	6	  
	 Foreign Plan
	  	 	41	  
	 Foreign Transfer Agreements
	  	 	23	  
	 Freeport Lease
	  	 	23	  
	 FTC
	  	 	6	  
	 GAAP
	  	 	6	  
	 GME Capital Expenditure
	  	 	6	  
	 Governmental Authority
	  	 	6	  
	 Governmental Order
	  	 	6	  
	 Gross Foreign Purchase Price
	  	 	28	  
	 Gross US Purchase Price
	  	 	27	  
	 Guarantee
	  	 	1	  
	 HON Audit Manager
	  	 	59	  
	 HON China
	  	 	1	  
	 HON Czech
	  	 	1	  
	 HON Czech Aero
	  	 	1	  
	 HON Czech Controls
	  	 	1	  

  
 vi 

					
	 HON England
	  	 	1	  
	 HON Germany
	  	 	1	  
	 HON India
	  	 	1	  
	 HON Japan
	  	 	1	  
	 HON Korea
	  	 	1	  
	 HON Shanghai
	  	 	1	  
	 HON Shanghai Determination Event
	  	 	54	  
	 HON Shanghai Purchase Price
	  	 	6	  
	 HON Shanghai Re-Acquisition Date
	  	 	54	  
	 HON Shanghai Registration Date
	  	 	53	  
	 Honeywell
	  	 	1	  
	 Honeywell L/Cs
	  	 	71	  
	 Honeywell Personnel
	  	 	59	  
	 HSR Act
	  	 	30	  
	 HTT
	  	 	12	  
	 HTT Supply Agreement
	  	 	23	  
	 IFRS
	  	 	6	  
	 Indebtedness
	  	 	6	  
	 Indemnification Cap
	  	 	90	  
	 Indemnified Party
	  	 	87	  
	 Indemnifying Party
	  	 	87	  
	 Independent Accounting Firm
	  	 	7	  
	 Initial Purchase Price
	  	 	21	  
	 Intellectual Property
	  	 	37	  
	 Intellectual Property Assignments
	  	 	23	  
	 Intellectual Property License Agreement
	  	 	23	  
	 Joint Venture Agreement
	  	 	31	  
	 Juarez
	  	 	16	  
	 Key Customers
	  	 	43	  
	 Key Suppliers
	  	 	43	  
	 Knowledge
	  	 	7	  
	 Korea Employees
	  	 	67	  
	 Labor Laws
	  	 	45	  
	 Law
	  	 	7	  
	 Leased Real Property
	  	 	13	  
	 Level 1 Products
	  	 	7	  
	 Level 1 Technology
	  	 	7	  
	 Level 1.5 Module
	  	 	7	  
	 Level 1.5 Module Patents
	  	 	7	  
	 Liability
	  	 	7	  
	 Liens
	  	 	44	  
	 Losses
	  	 	7	  
	 Made Available
	  	 	8	  
	 Material Contract
	  	 	43	  
	 Materials of Environmental Concern
	  	 	39	  
	 Mediation Request
	  	 	95	  

  
 vii

					
	 MIP
	  	 	65	  
	 Most Recent Balance Sheet
	  	 	8	  
	 Net Working Capital
	  	 	8	  
	 New Agreement
	  	 	56	  
	 New Conditions
	  	 	8	  
	 NW Illinois
	  	 	16	  
	 Occurrence Policies
	  	 	72	  
	 Operator Controls
	  	 	8	  
	 Optical Products
	  	 	8	  
	 Ordinary Course Warranty Obligations
	  	 	8	  
	 Other Competition Authorities
	  	 	52	  
	 Other Competition Filings
	  	 	52	  
	 Other Competition Law
	  	 	52	  
	 Packaging
	  	 	9	  
	 Patents
	  	 	37	  
	 Permit
	  	 	9	  
	 Permitted Encumbrances
	  	 	9	  
	 Person
	  	 	9	  
	 Post-Closing Representation
	  	 	76	  
	 Post-Signing Assumed Contract
	  	 	17	  
	 Post-Signing Assumed Product
	  	 	17	  
	 Preliminary Net Working Capital
	  	 	25	  
	 Preliminary Working Capital Statement
	  	 	25	  
	 Procedure
	  	 	95	  
	 Product Recall
	  	 	9	  
	 Products Liability Claims
	  	 	9	  
	 Prohibited Acquired Entity Activities
	  	 	74	  
	 Prohibited Portion
	  	 	74	  
	 Property
	  	 	39	  
	 Purchase Price
	  	 	21	  
	 Purchased Assets
	  	 	12	  
	 Purchased Contracts
	  	 	12	  
	 Purchased Entities
	  	 	1	  
	 Purchased Entities Excluded Assets
	  	 	14	  
	 Purchased Entity L/Cs
	  	 	71	  
	 Purchaser
	  	 	1	  
	 Purchaser Indemnified Parties
	  	 	86	  
	 Purchaser Material Adverse Effect
	  	 	10	  
	 Purchaser Personnel
	  	 	59	  
	 PwC
	  	 	59	  
	 Reimbursable Participation
	  	 	88	  
	 Release
	  	 	10	  
	 Reorganization Actions
	  	 	15	  
	 Retained Products
	  	 	10	  
	 Richardson
	  	 	16	  
	 SAFE Special Bank Account
	  	 	10	  

  
 viii

					
	 SCEC
	  	 	53	  
	 Seller Indemnified Parties
	  	 	87	  
	 Sellers
	  	 	1	  
	 Sellers’ Marks
	  	 	77	  
	 Sensata NV
	  	 	10	  
	 Shanghai Employees
	  	 	68	  
	 Shared Contracts
	  	 	56	  
	 Shared Product
	  	 	56	  
	 SIP
	  	 	65	  
	 Sleipnir ASIC
	  	 	10	  
	 Sleipnir ASIC Support Agreement
	  	 	23	  
	 Sleipnir Intellectual Property
	  	 	10	  
	 Software
	  	 	37	  
	 Solvent
	  	 	48	  
	 Specified Accounting Policies
	  	 	10	  
	 Specified Consent
	  	 	55	  
	 Straddle Period
	  	 	82	  
	 Subsidiary
	  	 	10	  
	 Supply Agreement
	  	 	23	  
	 Survival Period
	  	 	86	  
	 Targeted Net Working Capital
	  	 	10	  
	 Tax Benefit
	  	 	10	  
	 Tax Return
	  	 	11	  
	 Taxes
	  	 	11	  
	 Taxing Authority
	  	 	11	  
	 Thermal Products
	  	 	11	  
	 Third-Party Claim
	  	 	87	  
	 Threshold Amount
	  	 	90	  
	 Transaction Matters
	  	 	94	  
	 Transfer Taxes
	  	 	84	  
	 Transferred China Employees
	  	 	69	  
	 Transferred Employees
	  	 	64	  
	 Transferred Korea Employees
	  	 	67	  
	 Transferred US Employees
	  	 	64	  
	 Transition Services Agreement
	  	 	22	  
	 Transportation Field
	  	 	11	  
	 Turbo Field
	  	 	11	  
	 Underlying Technology
	  	 	11	  
	 US Employees
	  	 	64	  
	 VAT
	  	 	84	  
	 Voluntary Environmental Investigation
	  	 	12	  
	 WARN Act
	  	 	33	  
	 ZMD
	  	 	10	  
	 ZMD Agreement
	  	 	56	  

  
 ix 

  
 Index of Exhibits

  

			
	Exhibit A-1	  	Purchase Price Allocation Schedule
	Exhibit A-2	  	US Allocation Schedule Template
	Exhibit A-3	  	Foreign Allocation Schedule Template
	Exhibit B	  	Form of Bill of Sale and Assignment and Assumption Agreement
	Exhibit C	  	Form of Transition Services Agreement
	Exhibit D	  	Form of Intellectual Property Assignment
	Exhibit E	  	Form of Intellectual Property License Agreement
	Exhibit F	  	Form of Freeport Lease
	Exhibit G	  	Form of FIRPTA Certification
	Exhibit H	  	Form of Supply Agreement
	Exhibit I	  	Form of Sensata Technologies B.V. Guarantee
	Exhibit J	  	Form of China Consent
	Exhibit K	  	Form of China Transfer Agreement
	Exhibit L	  	Form of Chonan Manufacturing Agreement
	Exhibit M	  	Form of Sleipnir ASIC Support Agreement
	Exhibit N	  	Form of Confidential ASIC Technology Agreement

 Index of Disclosure Schedules 
  

			
	 Section 1.1(bb)
	  	Late Stage Development and Non-Commercialized Products
	 Section 1.1(mm)(i)
	  	Sellers’ Knowledge
	 Section 1.1(mm)(ii)
	  	Purchaser’s Knowledge
	 Section 1.1(ddd)
	  	Permitted Encumbrances
	 Section 1.1(ooo)
	  	Specified Accounting Policies
	 Section 2.2(b)
	  	Excluded Purchased Entities Assets
	 Section 2.3(h)
	  	Excluded Intellectual Property
	 Section 2.3(i)
	  	Excluded Information Technology Assets
	 Section 2.3(k)
	  	Other Excluded Assets
	 Section 2.4(b)
	  	Scheduled Material Contracts
	 Section 2.4(c)
	  	Existing Products
	 Section 2.5(a)(vii)
	  	Certain Purchased Contracts
	 Section 2.5(a)(ix)
	  	Excluded Liabilities
	 Section 3.3(a)(vii)
	  	Certain HTT Sensor Products
	 Section 3.3
	  	Closing Deliveries
	 Section 4.3(a)
	  	No Conflict
	 Section 4.3(b)
	  	Government Authorizations
	 Section 4.4
	  	Capitalization
	 Section 4.5
	  	Financial Statements
	 Section 4.6(a)
	  	Absence of Certain Changes
	 Section 4.6(c)
	  	Undisclosed Liabilities
	 Section 4.7
	  	Taxes
	 Section 4.8(a)
	  	Intellectual Property
	 Section 4.8(b)
	  	Certain Intellectual Property
	 Section 4.8(c)
	  	Level 1.5 Module Patents

  
 x 

			
	 Section 4.8(d)
	  	Infringed Intellectual Property
	 Section 4.9
	  	Legal Proceedings
	 Section 4.10
	  	Compliance with Laws; Permits
	 Section 4.11
	  	Environmental Matters
	 Section 4.12(a)
	  	Employee Matters and Benefit Plans
	 Section 4.12(b)
	  	Benefit Plan Compliance and Funding
	 Section 4.12(c)
	  	Employee Pension Benefit Plans
	 Section 4.12(d)
	  	Retiree or Post-Termination Benefits
	 Section 4.12(e)
	  	Change in Control Benefits
	 Section 4.12(g)
	  	Foreign Plans
	 Section 4.13(a)
	  	Material Contracts
	 Section 4.13(b)
	  	Material Breach or Default
	 Section 4.14
	  	Material Customers and Suppliers
	 Section 4.15
	  	Real Properties
	 Section 4.16
	  	Personal Properties
	 Section 4.17
	  	Sufficiency of Assets
	 Section 4.18(a)
	  	Labor
	 Section 4.18(b)
	  	Labor Notices
	 Section 4.20
	  	Products Liability; Warranty
	 Section 4.22
	  	Bank Accounts; Directors and Officers
	 Section 5.3(b)
	  	No Conflict; Required Filings
	 Section 6.1
	  	Interim Operations of the Business
	 Section 6.3
	  	Shared Contracts
	 Section 6.10
	  	Employees
	 Section 6.10(b)
	  	U.S. Employees
	 Section 6.10(b)(iii)
	  	U.S. Employee Severance Plan
	 Section 6.10(c)
	  	Czech Republic Employees
	 Section 6.10(d)
	  	Korea Employees
	 Section 6.10(e)
	  	Shanghai Employees
	 Section 6.10(f)
	  	China Employees
	 Section 6.11(a)
	  	Intercompany Accounts and Contracts
	 Section 6.23
	  	HTT Projected Volumes and Pricing Schedule

  
 xi 

  
 ASSET AND STOCK
PURCHASE AGREEMENT 
 THIS ASSET AND STOCK PURCHASE AGREEMENT (this “Agreement”) is made this 28th day of
October, 2010, by and among Sensata Technologies, Inc., a Delaware corporation (“Purchaser”), Honeywell International Inc., a Delaware corporation (“Honeywell”), Honeywell Co. Ltd., a Korea company (“HON
Korea”), Honeywell spol s.r.o., a Czech Republic company (“HON Czech”), Honeywell Aerospace s.r.o., a Czech Republic company (“HON Czech Aero”), Honeywell (China) Co. Ltd., a China company (“HON
China”), Honeywell Automation India Limited, an India company (“HON India”), Honeywell Control Systems Limited, an England company (“HON England”), Honeywell GmbH, a Germany company (“HON
Germany”), Honeywell Japan Inc., a Japan company (“HON Japan”) and collectively with Honeywell, HON Korea, HON Czech, HON Czech Aero, HON China, HON India, HON England and HON Germany, but excluding the Purchased Entities
(as defined below), the “Sellers”). 
 WHEREAS, the Sellers and the Purchased Entities, through
Honeywell’s and the other Sellers’ Sensing and Control business unit, operate the S&C Automotive-On-Board business which manufactures, develops, calibrates, tests, sells, and/or currently supports (i.e., maintains) the following
products: (i) Hall sensors in Application-Specific Packaging (defined below) for use in the Automotive Field (defined below); (ii) magneto resistive (MR) sensors in Application-Specific Packaging for use in the Automotive Field;
(iii) variable reluctance sensors in Application-Specific Packaging for use in the Automotive Field; (iv) Level 1.5 Modules (defined below); (v) vane and linear position sensors in Application-Specific Packaging for use in the
Automotive Field or the Turbo Field (defined below); and/or (vi) pressure sensors (A) in Application-Specific Packaging for use in the Automotive Field and/or (B) configured for exhaust applications in the Transportation Field
(defined below), in each case including the specific products set forth on Section 2.4(c) and Section 1.1(bb) of the Disclosure Schedule (collectively, the “Business”); 

WHEREAS, the Sellers conduct the Business through Honeywell Controls s.r.o., a Czech Republic company (“HON Czech
Controls”), and Honeywell-Xin Yao Automotive Sensors (Shanghai) Co., Ltd., a Chinese company (“HON Shanghai” and together with HON Czech Controls, the “Purchased Entities”), and through the use of certain
assets owned, leased and licensed directly by the Sellers; 
 WHEREAS, this Agreement contemplates a transaction in which
Purchaser will acquire from the Sellers all of the Sellers’ ownership interest in the Purchased Entities (the “Equity Interests”) and certain of the assets of the Business, and will assume certain of the Liabilities of the
Business, upon the terms and subject to the conditions contained in this Agreement; and 
 WHEREAS, in furtherance of the
transaction contemplated hereby, as of the date hereof Sensata Technologies B.V. has executed the guarantee attached hereto as Exhibit I (the “Guarantee”). 

  
 NOW, THEREFORE, in
consideration of the mutual promises, covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

ARTICLE I 

CERTAIN DEFINITIONS 
 1.1 Certain Definitions. For purposes of this Agreement, the following terms shall have the following meanings: 
 (a) “Acceptable Product Derivations” are modifications to or derivations of Existing Products (in the case of Purchaser or its Affiliates) or Retained Products (in the case of Honeywell
or its Affiliates) which, (i) if covered by Intellectual Property, do not change the manner in which the Intellectual Property is used in the product and (ii) do not intentionally modify a product that is for use in the Automotive Field to
become a product that is for use outside the Automotive Field (in the case of Purchaser), or intentionally modify a product that is for use outside the Automotive Field to become a product that is for use inside the Automotive Field (in the case of
Honeywell). 
 (b) “Acquired Intellectual Property” means: (i) all Acquired Patents; (ii) all
registered or unregistered Intellectual Property (other than Patents) owned or held for use by any of the Sellers and their Affiliates, that solely relates to the Existing Products, including (A) any tangible embodiments of such Intellectual
Property, (B) books, records, ledgers, files, documents, correspondence, lists, specifications, drawings, advertising, marketing and promotional materials, studies, business and accounting records of every kind, reports and all other materials
(in whatever form or medium) relating to such Intellectual Property and (C) such items in the form of specifications, product designs, embedded software, firmware, programmable logic, mask works, specialized tooling, specialized design tools,
or prototypes (but for the sake of clarity, excluding the Sleipnir Intellectual Property); and (iii) the Intellectual Property (other than Patents) in the items set forth on Section 4.8(a) of the Disclosure Schedule; provided,
however, that with respect to each of the foregoing subsections (i), (ii) and (iii), such Intellectual Property shall include all rights and remedies thereunder against infringement and misappropriation with respect thereto; and, provided
further, with respect to each of the foregoing subsections (ii) and (iii), such Intellectual Property shall not include the Intellectual Property to the extent comprising Level 1 Technology. 

(c) “Acquired Patents” means (i) the Chip-on Lead Frame Patents; (ii) the Patents set forth on
Section 4.8(a) of the Disclosure Schedule including the Level 1.5 Module Patents; (iii) all Patents developed by Sellers’ or their Affiliates’ Korea development group located at Chonan, South Korea, Sellers’ or their
Affiliates’ China development group located at Shanghai, or by any of the Sellers’ or their Affiliates’ Nanjing employees for the joint venture governed by the Joint Venture Agreement, in each case, which are related to the Business;
and (iv) all foreign equivalents and all divisionals, reissues, revisions, re-examinations, extensions, continuations and continuations-in-parts of any of the foregoing. 

  
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 (d) “Actual
GME Capital Expenditure Amount” means the amount of expenditures related to the GME Capital Expenditure as of the close of business on the day prior to the Closing Date. 

(e) “Affiliate” of a Person means a Person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, the first mentioned Person. 
 (f) “Ancillary Agreements”
means the Bill of Sale, the Transition Services Agreement, the Intellectual Property Assignments, the Intellectual Property License Agreement, the Supply Agreement, the HTT Supply Agreement (if applicable), the Sleipnir ASIC Support Agreement, the
Confidential ASIC Technology Agreement, the Guarantee, the Chonan Manufacturing Agreement, the Foreign Transfer Agreements and the Freeport Lease. 
 (g) “Application-Specific Packaging” means Packaging: (i) having a shape and mechanical and/or electrical interfaces that are designed for one or more specific applications or
programs within a particular field, rather than having a shape and mechanical and/or electrical interfaces that are generic and suitable for multiple applications in multiple fields; or (ii) that is or embodies a standard within the Automotive
Field as defined by associations, trade groups, and Governmental Authorities that provide or maintain standards within the automotive industry, including standards provided or maintained by the Society of Automotive Engineers, the Automotive
Electronics Council, the Automotive Open System Architecture Group, the U.S. Department of Transportation, or any foreign equivalent of the foregoing. 
 (h) “ASIC” means an application-specific integrated circuit; that is, an integrated circuit customized for a specific use in contrast to a general purpose integrated circuit; including
without limitation integrated circuits using programmable logic and human readable or any intermediate hardware logic description language (including HDL and VHDL) that are used to program or configure such integrated circuit. 

(i) “Asset Sellers” means Honeywell, HON Korea, HON Czech, HON Czech Aero, HON China, HON India, HON England, HON
Germany and HON Japan. 
 (j) “Automotive Field” means the field of four-wheel passenger cars (i.e.,
cars, minivans, sport utility vehicles, multi-purpose vehicles or vans designed primarily for transporting approximately 1-8 people (or approximately 1-15 people in the case of vans)), and light trucks classified by the U.S. Department of
Transportation (or equivalent foreign regulatory agency) up through Class 6 (i.e., a truck having a gross vehicle weight rating of up to 26,000 pounds in the U.S.). 
 (k) “Budgeted GME Capital Expenditure Amount” means the One Million Forty One Thousand Dollars ($1,041,000.00) related to 2010 GME Capital Expenditure. 

(l) “business day” means any day other than a Saturday, Sunday or a day on which the banks in New York are authorized
by Law or executive order to be closed. 

  
 3 

  
 (m) “Business
Material Adverse Effect” means any event, change, effect or circumstance that, individually or in the aggregate, has had, or would reasonably be expected to have, a material adverse effect on the business, assets, results of operations or
financial condition of the Business; provided, however, that changes, effects or circumstances, alone or in combination, that arise out of or result from (i) changes in economic conditions, financial or securities markets in
general, or the industries and markets (including with respect to commodity prices) in which the Business is operated, except to the extent disproportionately affecting the Business, (ii) the execution and performance (other than as set forth
in the first sentence of Section 6.1 hereof) of this Agreement and the announcement of this Agreement and the transactions contemplated hereby, (provided, however, that the foregoing shall not affect or otherwise limit the
representations set forth in Sections 4.3 and 5.3) (iii) acts of God, calamities, national or international political or social conditions, including the engagement by the United States, Korea, China, the Czech Republic,
Germany, India or Japan in hostilities, whether commenced before or after the date hereof, or the occurrence of any military attack or terrorist act upon the United States, Korea, China, the Czech Republic, Germany, India or Japan except to the
extent disproportionately affecting the Business, or (iv) any actions taken, or failures to take action, or such other changes or events, in each case, to which Purchaser has specifically consented in writing, shall not be considered in
determining whether a Business Material Adverse Effect has occurred. 
 (n) “China Consent” means that written
consent with respect to the transfer of the Equity Interests of HON Shanghai to Purchaser and that certain board of directors consent of HON Shanghai, in substantially the forms attached hereto as Exhibit J. 

(o) “China Transfer Agreement” means that stock transfer agreement with respect to the transfer of the Equity Interests
of HON Shanghai, in substantially the form attached hereto as Exhibit K, which will be executed and delivered by the applicable parties as of the date hereof. 
 (p) “Chinese Approval Authority” means the Ministry of Commerce of The People’s Republic of China or its local counterpart which is competent to approve the equity transfer of HON
Shanghai. 
 (q) “Chinese Registration Authority” means the State Administration of Industry and Commerce or
its local counterpart which is competent to register the equity transfer of HON Shanghai. 
 (r) “Chip-on Lead Frame
Patents” means USPNs 7,269,992, 7,375,406 and 7,378,721. 
 (s) “Code” means the Internal Revenue
Code of 1986, as amended. 
 (t) “Contract” shall mean any contract, agreement, personal property lease,
license, sales order, purchase order, invoice, indenture, note, bond, loan, instrument, commitment or other arrangement or agreement that is binding on any Person or any part of its property under applicable Law, other than any Company Plan.

  
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 (u)
“control” (including the terms “controlled”, “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of stock, as trustee or executor, by Contract or credit arrangement or otherwise. 
 (v) “Current-Sensing Products” means sensor products for which electric current is the primary parameter measured by such product, in contrast to sensors where electric current is used
incidentally to measure another parameter such as pressure, position, a magnetic field, or temperature. 
 (w)
“DOJ” means the United States Department of Justice. 
 (x) “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, including the rules and regulations promulgated thereunder. 
 (y)
“ERISA Affiliate” means any Person at any relevant time considered a single employer with any Seller under Section 414 of the Code. 
 (z) “Exacerbation of Pre Existing Conditions” shall mean (i) any negligent or intentional action taken by or on behalf of Purchaser outside the ordinary course of business at any
Leased Real Property, and (ii) any Voluntary Environmental Investigation, in each case in clauses (i) and (ii), to the extent such action or investigation exacerbates any environmental condition or noncompliance with any Environmental Law
(including any noncompliance resulting from mismanagement of any Materials of Environmental Concern) or increases the remedial cost associated therewith, in each case, occurring or in existence at such Leased Real Property prior to the Closing Date
(including the environmental conditions and noncompliance identified in the Environmental Reports); provided however, that with respect to any known pre-existing conditions or noncompliance for which remediation, investigation or other response
action is required under Environmental Laws, Purchaser’s failure to remediate, investigate or respond to any such known pre-existing environmental condition or noncompliance after having notified Sellers of the same shall not be deemed to
constitute an Exacerbation of Pre-Existing Conditions. 
 (aa) “Existing Customers” means Persons to whom the
Sellers or their Affiliates have sold Existing Products of the types described in clauses (i)(A) and (ii) of the definition of Existing Products. 
 (bb) “Existing Products” means: (i) those products set forth on Section 2.4(c) of the Disclosure Schedule, which lists all products: (A) that have been sold by the
Business in commercial quantities at any time since January 1, 2008; and (B) other historical products of the Business for which Purchaser is assuming certain Assumed Liabilities as set forth in Section 2.4(c); and
(ii) those other products set forth on Section 1.1(bb) of the Disclosure Schedule either actively in late-stage development by, or sold in less than commercial quantities by, the Business at any time since January 1, 2008.
Purchaser acknowledges and agrees that prior to the Closing, Sellers shall update Section 1.1(bb) of the Disclosure Schedule to include any other products that become late-stage development products of the Business after the date hereof
and prior to the Closing. 

  
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 (cc) “Flow
Sensor Products” means sensor products that measure the flow rate of a gas or fluid medium using sensing principles (e.g., ultrasonic, hot film anemometry, hot wire anemometry, impeller driven, Coriolis effect, etc.) other than
inferring flow based on differential pressure measurement. 
 (dd) “FTC” means the United States Federal Trade
Commission. 
 (ee) “GAAP” means United States generally accepted accounting principles. 

(ff) “GME Capital Expenditure” means those capital expenditures related to the General Motors Europe capital expansion
as set forth in Section 4.13(a)(ix) of the Disclosure Schedule. 
 (gg) “Governmental Authority”
means any foreign, transnational, or United States federal, state, national, provincial, municipal or local governmental, regulatory or administrative agency or any court or arbitral body. 

(hh) “Governmental Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award
entered by or with any Governmental Authority. 
 (ii) “HON Shanghai Purchase Price” means the purchase price
to be paid for the purchase of the HON Shanghai Equity Interests as set forth in the China Transfer Agreement. 
 (jj)
“IFRS” means the International Financial Reporting Standards. 
 (kk) “Indebtedness” of any
Person at any date shall include (i) all indebtedness of such Person for borrowed money, (ii) any other indebtedness of such Person which is evidenced by any note, bond, debenture or similar instrument, (iii) all obligations under any
hedging, derivative or swap obligations or similar arrangements, (iv) all outstanding amounts owed under guaranties in which the underlying payment or performance obligation is in default or a valid demand for payment has been made,
(v) all obligations secured by a Lien (other than a Permitted Encumbrance) on any assets of such Person, (vi) all obligations for the deferred purchase price of property or services (other than current Liabilities incurred in the ordinary
course of business), (vii) any amounts outstanding and owing under any commitments by which a Person assures a creditor against loss (including reimbursement obligations and including, in the case of bank guarantees, any amounts advanced by the
guarantor bank that have not yet been reimbursed), (viii) all obligations under capitalized leases (it being understood that for purposes of this definition the leases set forth in the Disclosure Schedule are not and shall not be treated as
capitalized leases), (ix) all change of control, assignment related, or similar payments which pursuant to a Contract or applicable Law are triggered by, or come due as a result of, the transactions contemplated hereby, (x) all prepayment
premiums, (xi) the amount (if any) by which the Actual GME Capital Expenditure Amount is less than the Budgeted GME Capital Expenditure Amount, and (xii) any accrued interest, fees and expenses related to the foregoing. 

  
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 (ll)
“Independent Accounting Firm” means any one of (i) PricewaterhouseCoopers or (ii) Deloitte & Touche, as mutually agreed upon by the parties. 

(mm) “Knowledge” (i) with respect to any Seller shall mean the actual knowledge, after due inquiry of appropriate
personnel, of the individuals identified on Section 1.1(mm)(i) of the Disclosure Schedule and (ii) with respect to Purchaser shall mean the actual knowledge, after due inquiry of appropriate personnel, of the individuals identified
on Section 1.1(mm)(ii) of the Disclosure Schedule. 
 (nn) “Law” means any law, statute,
ordinance, order, decree, decision, rule or regulation of any Governmental Authority, or any binding agreement with any Governmental Authority binding upon a Person or its assets. 

(oo) “Level 1 Products” means integrated circuits that include Level 1 Technology, which are packaged in form factors
that are standard within the semiconductor or electronic component industries (e.g., form factors such as SO-8, SOT-23, SOT-89, SOT-89B, plastic radial lead, ceramic SIP, etc.). 

(pp) “Level 1 Technology” means Intellectual Property that covers (i) die-level structures (i.e.,
particular arrangements of materials or layers on the substrate of a semiconductor wafer that form circuits or sensor structures, such as are captured by USPN 7,279,891) or (ii) circuit elements or arrangements that are claimed without
reference to specific die components but that nevertheless are or typically would be implemented at the die level (e.g., such as are captured by USPN 6,597,553), and are not located above the die level in Existing Products. 

(qq) “Level 1.5 Module” means a magnetic sensor within an intermediate level package, which any of the Sellers or their
Affiliates has marketed and sold as a p-module, q-module, m-module, or under another similar designation. 
 (rr)
“Level 1.5 Module Patents” means the Patents set forth in Section 4.8(c) of the Disclosure Schedule that specifically cover Level 1.5 Modules, but not Underlying Technology. 

(ss) “Liability” means any direct or indirect liability, Indebtedness, claim, loss, damage, deficiency, obligation or
responsibility, whether fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, asserted or unasserted, known or unknown, contingent, due or to become due or otherwise. 

(tt) “Losses” means, subject to Section 10.4, any losses, costs or expenses (including reasonable
attorneys’ fees and expenses incurred in connection with the investigation, defense and/or settlement of any claim), judgments, fines, claims, damages liabilities, royalties and assessments. In the event that Purchaser transfers less than all
or substantially all of the Business to a third party, any losses, costs, expenses, damages or liabilities actually incurred by a Purchaser Indemnified Party (including any amounts paid by the Indemnified Party to such third party) in connection
with Losses suffered by such third party that would constitute indemnifiable Losses under this Agreement had they been directly incurred by such Purchaser Indemnified Party absent the transfer to such third party, will constitute Losses

  
 7 

 
under this definition and will be subject to the terms and conditions of the indemnification provisions in Article X; provided, however, that in no event shall the
Sellers be responsible for attorneys’ fees and expenses or any other costs and expenses incurred in connection with the investigation, defense or settlement of a claim of such third party, but only those of the Purchaser Indemnified Party.

 (uu) “Made Available” means that the information referred to (i) has been actually delivered (whether
by email transmission or hand delivery) to Purchaser or to its outside legal counsel or (ii) was posted on the electronic datasite located at http://datasite.merrillcorp.com on or prior to the close of business on the second business day
prior to the date of this Agreement (the contents of which are, for the avoidance of doubt, memorialized in a DVD or similar electronic format and delivered to Purchaser within three (3) business days after the date of this Agreement).

 (vv) “Most Recent Balance Sheet” means the unaudited historical pro forma balance sheet of the Business as
of May 29, 2010. 
 (ww) “Net Working Capital” means the excess of the sum of the total current assets
that are then assets of the Purchased Entities (but excluding any Purchased Entity Excluded Assets) or are Purchased Assets over the sum of the total current liabilities that are then liabilities of the Purchased Entities (but excluding any
Purchased Entity Excluded Liabilities) or are Assumed Liabilities, calculated in accordance with the Specified Accounting Policies; provided that no current or deferred income Tax assets or Liabilities will be included in the Net Working
Capital. 
 (xx) “New Conditions” shall mean environmental conditions occurring at any Leased Real Property,
including without limitation environmental conditions arising in connection with the generation, use, handling, presence, treatment, storage, transportation, disposal or Release of any Materials of Environmental Concern or Third-Party Claims for
personal injury or property damage resulting from the Release of Materials of Environmental Concern, in each case to the extent such conditions are first caused or first created by Purchaser’s operation of the Business or the Purchased Assets
after the Closing Date. 
 (yy) “Operator Controls” means products with a human interface, which provide a
signal in response to manipulation of the human interface by a human operator (e.g., shifters, turn signal switches, throttle controllers, each of which may itself include one or more electromechanical switches, MR sensors or Hall sensors).

 (zz) “Optical Products” means sensor products that detect a change in an optical property of a device,
material or region, and use the detected change to infer a change in an aspect of the physical environment in the region or proximate the device or material. 
 (aaa) “Ordinary Course Warranty Obligations” means claims by customers of the Business for product return, replacement, rebate, credit, or similar warranty obligations incurred in the
ordinary course of business, but not including any Products Liability Claims. 

  
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 (bbb)
“Packaging” means a packaging, housing, board, circuit, or substrate in or on which a sensor is mounted, attached, or otherwise affixed for purposes of allowing use of such sensor in combination with such packaging, housing, board,
circuit, or substrate within a larger assembly or system. 
 (ccc) “Permit” means any permit, franchise,
authorization, license, accreditation, certificate, exemption, classification, registration, or other approval issued or granted by any Governmental Authority. 
 (ddd) “Permitted Encumbrances” means (i) mechanics’, carriers’, workmen’s, repairmen’s or other like Encumbrances arising or incurred in the ordinary course of
business for amounts not yet delinquent or which are being contested in good faith by appropriate legal proceedings, (ii) Encumbrances arising under original purchase price conditional sales contracts and equipment leases with third parties
entered into in the ordinary course of business, (iii) Encumbrances for Taxes and other governmental charges that are not due and payable, are being contested in good faith by appropriate proceedings, or may thereafter be paid without penalty,
(iv) imperfections of title, restrictions or encumbrances, if any, which imperfections of title, restrictions or other encumbrances do not, individually or in the aggregate, materially impair the continued use and operation of the specific
assets to which they relate (excluding assets that are Intellectual Property), (v) Encumbrances on accounts receivable under Honeywell’s Trade Accounts Receivable program, which shall be removed as of the Closing Date, and (vi) any
other Encumbrances existing on the date of this Agreement that are set forth in Section 1.1(ddd) of the Disclosure Schedule. 
 (eee) “Person” means an individual, corporation, partnership, limited liability company, association, joint stock company, trust, joint venture, unincorporated organization, Governmental
Authority or other entity or group. 
 (fff) “Product Recall” means any (i) directive, order or other
action by any Governmental Authority requiring or having the effect of requiring that any product manufactured or sold by the Sellers or the Sellers’ Affiliates in connection with the Business be recalled or (ii) voluntary recall of any
product manufactured or sold by the Sellers or the Sellers’ Affiliates in connection with the Business. 
 (ggg)
“Products Liability Claims” means any (i)(A) lawsuit, class action, or other claim by a third party or third parties (other than a Governmental Authority) (whether based on negligence, fraud, failure to warn, strict products
liability, violation of applicable Law, or other theory, and whether seeking injunctive relief, money damages, or other remedy), related to or arising out of personal injury or death, or damage, destruction or diminished value of property or (i)(B)
investigation, action or other claim by any Governmental Authority concerning compliance or non-compliance with applicable Laws (whether seeking fines, injunctive relief, Product Recall, field action, or other penalties), or (ii) claim by a
customer of the Business seeking damages, costs, reimbursement, contribution, indemnification, injunctive relief, repair, replacement, or other responsibility for Losses or other Liabilities related to or arising out of the matters described in
clauses (i)(A) or (i)(B), or any systemic design defect or systemic manufacturing defect, any voluntary or involuntary Product Recall, field action or violation of applicable Laws, in each case of sub-sections (i) and (ii) related to or
arising out of a product or products sold by the Sellers or the Sellers’ Affiliates in connection with the Business. 

  
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 (hhh)
“Purchaser Material Adverse Effect” means any material adverse change in or material adverse effect on the ability of Purchaser to perform its obligations under this Agreement or to consummate the transactions contemplated hereby.

 (iii) “Release” means spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting,
storing, escaping, leaching, dumping, discarding, burying, abandoning or disposing into the environment. 
 (jjj)
“Retained Products” means products of Honeywell or its Affiliates, which are not Existing Products. 
 (kkk)
“SAFE Special Bank Account” means the special foreign exchange bank account for asset realization to be established by HON China in accordance with applicable Chinese Law, which is required for receiving the HON Shanghai Purchase
Price by HON China. 
 (lll) “Sensata NV” means Sensata Technologies Holding N.V., a public limited liability
company incorporated under the laws of The Netherlands. 
 (mmm) “Sleipnir ASIC” means those certain ASIC
products identified as “Sleipnir” in the table set forth in Amendment 2 to the Supply Agreement between Honeywell and ZMD America, Inc. (“ZMD”) dated January 14, 2004. 

(nnn) “Sleipnir Intellectual Property” means Intellectual Property (other than Patents) that is embodied in the
Sleipnir ASIC or the related design materials. 
 (ooo) “Specified Accounting Policies” has the meaning set
forth in Section 1.1(ooo) of the Disclosure Schedule. 
 (ppp) “Subsidiary” of a Person means any
corporation or other legal entity of which such Person (either alone or through or together with any other Subsidiary or Subsidiaries) is the general partner or managing entity or of which at least a majority of the stock or other equity interests
the holders of which are generally entitled to vote for the election of the board of directors or others performing similar functions of such corporation or other legal entity is directly or indirectly owned or controlled by such Person (either
alone or through or together with any other Subsidiary or Subsidiaries). 
 (qqq) “Targeted Net Working
Capital” means Twenty One Million Five Hundred Thousand Dollars ($21,500,000.00). 
 (rrr) “Tax
Benefit” means, with respect to a Loss subject to indemnity under this Agreement, an amount by which the actual cash Tax liability of a party (or group of corporations filing a Tax Return that includes the party), with respect to a taxable
period, is reduced solely as a result of such Loss (treating any Tax item attributable to such Loss as the last item claimed for any taxable period). 

  
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 (sss) “Tax
Return” shall mean any report, return or similar filing (including the attached schedules) filed or required to be filed with respect to Taxes, including any information return, claim for refund, amended return, or declaration of estimated
Taxes. 
 (ttt) “Taxes” shall mean any and all domestic or foreign, federal, state, local or other taxes of
any kind (together with any and all interest, penalties and additional amounts imposed with respect thereto) imposed by any Governmental Authority, including taxes with respect to income, franchises, windfall or other profits, gross receipts,
property, sales, use, capital stock, estimated, unclaimed property or escheatment, alternative or add-on minimum, employment, unemployment, social security, unclaimed property, payroll, customs duties, transfer, license, workers’ compensation
or net worth, and taxes in the nature of excise, withholding, ad valorem or value added, whether disputed or not, and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person. 

(uuu) “Taxing Authority” shall mean the Internal Revenue Service and any other domestic or foreign Governmental
Authority responsible for the administration or collection of any Taxes. 
 (vvv) “Thermal Products” means
sensor products for which temperature is the primary parameter measured by such products, in contrast to sensors that primarily measure another non-temperature parameter but employ a temperature sensor to compensate for temperature-induced
variations in the other parameter being measured. Specifically excluded from the Thermal Products definition is the PTT product line—i.e., that line of sensors that provides temperature and pressure information, which is included in the
Business. For the avoidance of doubt, other such “combi” sensors, which provide temperature and pressure information, but which are not included in the Business, are not excluded from the Thermal Products definition and are accordingly
Excluded Products (as defined in Section 6.14). 
 (www) “Transportation Field” means the field of
on-road and off-road heavy duty vehicles (U.S. Department of Transportation’s Classes 7 and 8 (or the foreign equivalent of such weight classes)), agriculture vehicles, construction vehicles (including cranes and forklifts), off-road light duty
vehicles, recreational/sport vehicles and motorcycles. Notwithstanding the foregoing, the term “Transportation Field” does not include the fields of aerospace vehicles, watercraft, or military vehicles (whether air or ground, manned or
unmanned). 
 (xxx) “Turbo Field” means the field of turbocharger systems (i.e., gas compressors that
are powered by the exhaust of an internal combustion engine and used to increase density of intake air provided to said engine) and their components. 
 (yyy) “Underlying Technology” means a level of technology that underlies multiple applications, at least one application of which is outside of the Business, as of the Closing Date,
rather than being directed to only a specific application, but only to the extent such technology is common to such applications. Notwithstanding the foregoing, the term “Underlying Technology” does not include modifications, enhancements,
derivations, and the like that are not common to such applications. 

  
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 (zzz)
“Voluntary Environmental Investigation” means any environmental sampling or testing of air, soil, water or groundwater conducted by or on behalf of Purchaser at any Leased Real Property, except to the extent Purchaser reasonably
believes such sampling or testing is (i) required by any Environmental Law or Governmental Authority, (ii) reasonably conducted in response to a Third-Party Claim asserting Liability for any environmental condition at any Leased Real
Property, (iii) conducted by the Sellers in performance of their respective obligations herein, (iv) necessary in connection with a due diligence review for any sale, conveyance or financing transaction involving any Leased Real Property
based upon findings from a Phase I environmental site assessment, (v) required for the bona fide construction, expansion, demolition, repair, maintenance, or closure by or on behalf of the Purchaser Indemnified Parties of any structures or
operations at any Leased Real Property in the ordinary course of business and to the extent such sampling or testing is consistent with industry practice, or (vi) required to respond to material facts indicating a potentially significant risk
to human health or the environment. 
 ARTICLE II 
 PURCHASE AND SALE OF SHARES AND ASSETS AND ASSUMPTION OF LIABILITIES 

2.1 Purchase and Sale of Shares and Assets. Subject to the terms and conditions of this Agreement, at the Closing (as defined
below), the Sellers shall sell, assign, transfer, convey and deliver to Purchaser, and Purchaser shall purchase and accept from the Sellers, all of the Sellers’ right, title and interest in and to all of the assets, used or held for use by the
Sellers primarily in the Business as it is currently operated (other than the Excluded Assets), as the same may exist as of the Closing (collectively, the “Purchased Assets”), including all of the Sellers’ right, title and
interest in the following: 
 (a) the Equity Interests; 

(b) all accounts receivable and notes receivable and other such claims for money due to the Sellers arising from the arm’s length
rendering of services or the sale of the Existing Products or other goods or materials by the Business (including trade account receivables from Honeywell acting through its Honeywell Turbocharger Technologies strategic business unit
(“HTT”) solely to the extent reflected in the Final Net Working Capital); 
 (c) all raw materials, packaging
materials, manufactured or purchased parts, goods in transit, consigned goods, returned goods, work in process, spare parts and finished goods inventories for the Existing Products or otherwise used or held for use primarily in the Business;

 (d) all rights and interests in all Contracts to which a Seller or Purchased Entity is a party that relate primarily to the
Business (the “Purchased Contracts”); 
 (e) all machinery, equipment, tools, dies, test equipment, furniture,
fixtures (trade or otherwise), vehicles, leasehold improvements, office supplies, production supplies, spare and replacement parts, computers, jigs, molds, miscellaneous supplies and other tangible personal properties that are used or held for use
primarily in the Business (including the 

  
 12 

 
transfer of a Seller’s or Purchased Entity’s rights of possession and custody of such tooling, molds, jigs and other equipment that is owned by certain customers of the Business and
that is located on the Property or on the premises of suppliers (including Plant 1 in Freeport, Illinois) of the Business); 

(f) the Acquired Intellectual Property; 
 (g) other than to the extent not legally assignable even with the consent, authorization, acknowledgement of filing, certification or other approval of the applicable Governmental Authority, all Permits
primarily with respect to the conduct of the Business and held by the Sellers; 
 (h) all rights under or pursuant to
warranties and guarantees made by suppliers, manufacturers or contractors in connection with products or services provided to the Sellers primarily in connection with the Business; 

(i) the leasehold interests in the real property described in Section 4.15 of the Disclosure Schedule (the “Leased
Real Property”), including all rights and interests of the Sellers in the leases, subleases, licenses, concessions and other agreements therefor; 
 (j) all claims, deposits, prepayments, prepaid assets, refunds (excluding Tax refunds or credits to the extent such refunds or credits are specified as property of the Seller pursuant to
Section 8.4(d) hereof), causes of action, credits, choses in action, rights of recovery, rights of set off and rights of recoupment relating primarily to any of the other Purchased Assets, including all rights of the Sellers under any
property, casualty, workers’ compensation or other insurance policy or related insurance services contract to the extent such rights relate to any Assumed Liability or any casualty affecting any of the Purchased Assets, but excluding any claims
or counterclaims raised in connection with the Excluded Liabilities set forth on Section 4.9 or 4.20 of the Disclosure Schedule; 
 (k) all goodwill associated primarily with the Business or the Purchased Assets, together with the right to represent to third parties that Purchaser is the successor to the Business; 

(l) all books, records, ledgers, files, documents, correspondence, lists, specifications, drawings, advertising, marketing and
promotional materials, studies, business and accounting records of every kind, reports and all other materials (in whatever form or medium) that pertain primarily to the Business; provided, however, that (i) the Sellers shall be
entitled to retain copies of any such materials it deems reasonably necessary for human resources, accounting, tax, legal or other business purposes (including with respect to any Excluded Asset or Excluded Liability), (ii) Sellers shall
deliver to Purchaser copies of any documents removed from the Purchased Entities’ premises prior to Closing which relate to the Business (subject to Purchaser’s confidentiality obligations and Seller’s right to redact information not
related to the Business), and (iii) Seller shall, as promptly as reasonably practicable after receipt of Purchaser’s reasonable advanced written request and provided such request will not unreasonably disrupt any of Sellers’
businesses, make available to Purchaser for inspection at reasonable times (subject to 

  
 13 

 
Purchaser’s confidentiality obligations and Seller’s right to redact information not related to the Business), and Purchaser shall, upon reasonable request, have the right to receive
copies of, documents to the extent relating (but not primarily) to the Business that are not included in the Purchased Assets, in each case, to the extent reasonably required in connection with the operation of, or for human resources, accounting,
tax, legal or other business purposes related to, the Business following the Closing (excluding any of the foregoing that relate to Intellectual Property which shall be governed by the Intellectual Property License Agreement, Section 6.6
and the definition of “Acquired Intellectual Property”); 
 (m) rights to receive and retain mail, payments of
receivables and other communications (other than to the extent related to Excluded Assets or Excluded Liabilities); 
 (n) the
right to bill and receive payment for products shipped or delivered and/or services performed but unbilled or unpaid as of Closing; and 
 (o) any of the foregoing to the extent held by any Honeywell Subsidiary other than the Sellers, and all other properties, assets, rights and interests owned by Sellers or their Affiliates as of the
Closing, or in which Sellers or their Affiliates have an interest, in all cases, which are primarily related to the Business and not otherwise Excluded Assets (it being understood that with respect to any such assets described in this clause
(o) that may be held by Honeywell Subsidiaries or Affiliates other than the Sellers, the references to “Sellers” in the lead-in sentence to this Section 2.1 shall be deemed to refer to the Sellers and such Subsidiaries and
Affiliates that hold such assets); 
 provided, that for the avoidance of doubt, “Purchased Assets” shall include all assets of
the Business which would be required by the Specified Accounting Policies to be reflected on the pro forma balance sheet of the Business as of the Closing Date. 
 2.2 Assets of the Purchased Entities. The parties agree that none of the assets, properties or rights of the Purchased Entities shall be transferred pursuant to Section 2.1 or shall be
considered Purchased Assets for purposes of Section 2.1 hereof and that such assets, properties and rights shall be held by the Purchased Entities, as the case may be, in the same manner before and after the Closing Date without any
change therein as a result of the transactions contemplated hereunder, except that Purchaser (or its designee) shall be the holder of the Equity Interests. The following assets, properties and rights shall, at the sole cost and expense of Sellers,
be transferred or assigned (or deemed to be transferred or assigned) from each Purchased Entity to a Seller (or an Affiliate) prior to the Closing (the “Purchased Entities Excluded Assets”): 

(a) all cash on hand in HON Czech Controls’ bank and lock box accounts, plus all marketable securities owned by such Purchased
Entity, in each case, as of the opening of business on the Closing Date; 
 (b) the assets of the Purchased Entities not
related to the Business to the extent set forth on Section 2.2(b) of the Disclosure Schedule; 
 (c) all refunds or
credits for Taxes arising out of the Business to the extent such refunds or credits are specified as property of the Seller pursuant to Section 8.4(d); 

  
 14 

  
 (d) any insurance
proceeds from any property, casualty or other insurance policy or related insurance services contract held by a Purchased Entity or any of its Affiliates to the extent covering Excluded Liabilities; 

(e) except for the Intellectual Property rights granted by Sellers under the Intellectual Property License Agreement, all Intellectual
Property other than the Acquired Intellectual Property; 
 (f) subject to Section 6.18, any rights in, relating to,
or for use or exploitation of, any trademark, service mark, brand name, certification mark, trade name, corporate name, domain name or other indication of source or origin that includes, is based on, relates to or is likely to be confused with the
term “Honeywell”, “Honeywell Sensing and Control” or “Micro Switch” or any other similar term or derivative thereof (collectively, the “Excluded Names”); 

(g) except as otherwise provided in Section 6.10 or as required by Law, all assets in or related to a Purchased
Entity’s participation in or sponsorship of any Foreign Plan; and 
 (h) any rights of such Purchased Entity to
reimbursements, indemnification, hold-harmless or similar rights to the extent relating to any Excluded Liabilities (the transfer and assignment of (a) through (h) (inclusive), the “Reorganization Actions”). 

2.3 Excluded Assets. Notwithstanding anything to the contrary contained in Section 2.1, the Sellers will retain all of
their respective right, title and interest in and to, and shall not, and shall not be deemed to, sell, assign, transfer, convey or deliver to Purchaser, and the Purchased Assets shall not, and shall not be deemed to, include any of the following
assets (all such retained assets, the “Excluded Assets”): 
 (a) any cash or cash equivalents, including any
marketable securities, bonds, investments, or certificates of deposit, or any collected funds or items in the process of collection at the financial institutions of any Seller and its Affiliates through and including the Closing Date, in each case
whether related to the Business, the Purchased Entities or otherwise; 
 (b) all refunds or credits for Taxes arising out of
the Business to the extent such refunds or credits are specified as property of the Seller pursuant to Section 8.4(d); 
 (c) any property, casualty or other insurance policy or related insurance services contract, held by any Seller or any of its Affiliates, including the benefit of any deposits or prepayments and any
insurance proceeds to the extent covering any Excluded Liabilities, other than proceeds of third party insurance policies in respect of claims made against such policies prior to the Closing Date (in the case of “claims made” policies), or
for claims in respect of Losses occurring prior to the Closing Date (in the case of “occurrence based” policies); 

(d) except as provided in Section 6.10, any Company Plan, including the underlying assets and rights of any Seller or any of
its Affiliates; 

  
 15 

  
 (e) any rights of any
Seller or the other Seller Indemnified Parties under this Agreement, any Ancillary Agreement or any other agreement between any of the Sellers or any of their respective Affiliates and Purchaser; 

(f) subject to Section 6.18, any rights in, relating to, or for use or exploitation of, any trademark, service mark, brand
name, certification mark, trade name, corporate name, domain name or other indication of source or origin that includes, is based on, relates to or is likely to be confused with the Excluded Names; 

(g) the corporate charter, qualification to conduct business as a foreign corporation, arrangements with registered agents relating to
foreign qualifications, taxpayer and other identification numbers, corporate seal, minute books, stock transfer books, blank stock certificates, Tax books and records, and any other documents relating to the governance, organization, maintenance and
existence of each Seller; 
 (h) all Intellectual Property (including the Intellectual Property set forth on
Section 2.3(h) of the Disclosure Schedule), other than the Acquired Intellectual Property (it being understood that Sellers are also granting Purchaser certain Intellectual Property rights under the Intellectual Property License
Agreement); 
 (i) any licenses with respect to unmodified commercially available “off-the-shelf” computer Software,
and those software agreements and information technology licenses and assets listed on Section 2.3(i) of the Disclosure Schedule; 
 (j) all checkbooks, canceled checks and bank accounts of each Seller; and 
 (k)
any other assets, rights and properties set forth on Section 2.3(k) of the Disclosure Schedule. 
 2.4
Assumption of Liabilities. The “Assumed Liabilities” are solely the following Liabilities relating to or arising out of the Business or the Purchased Assets: 

(a) all Liabilities to the extent reflected or reserved for (and solely to the extent of the amount so reflected or reserved) on the
Most Recent Balance Sheet and any Liabilities incurred in the ordinary course of business consistent with past practice since the date of the Most Recent Balance Sheet (including, in each case, trade payables arising out of any purchases by the
Business from Sellers’ semiconductor fabrication plant in Richardson, Texas (“Richardson”), Sellers’ fabrication operations in Plant 1 and Plant 4 in Freeport, Illinois which provide stamped parts, machined parts and
plating parts (“NW Illinois”), or Sellers’ assembly plant operating as “Honeywell Optoelectronica S. de R.L. de C.V.” in Juarez, Mexico (“Juarez”) solely to the extent reflected in the Final Net
Working Capital), none of which Liabilities since the date of the Most Recent Balance Sheet is a Liability for a breach of contract, breach of warranty, tort, infringement, claim, lawsuit or any of the Excluded Liabilities of the type described in
Sections 2.5(a)(i) - (xv) (inclusive), except to the extent paid or discharged in the ordinary course of business since the date of the Most Recent Balance Sheet; 

  
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 (b) all Liabilities
constituting obligations to perform under, or related to breaches or defaults arising under or relating to, any (i) Material Contract set forth on Section 2.4(b) of the Disclosure Schedule, (ii) Purchased Contract which is not
a Material Contract, (iii) Purchased Contract which is a Material Contract, to the extent such Contract was Made Available in sections III.F, VI.B.2.b, VI.B.2.c, VI.B.2.f, VI.B.2.l, VI.B.2.o or VIII.A.2 of the datasite to Purchaser prior to the
date hereof, but reference to which was omitted from the Section 4.13(a) of the Disclosure Schedule, (iv) Purchased Contracts that are entered into by any Seller during the period commencing on the date hereof and ending on the
Closing Date in compliance with Section 6.1 and (v) other Purchased Contract which is a Material Contract as to which Purchaser has agreed in writing to specifically assume the benefits and obligations of such Contract after the
Sellers provide Purchaser with written notice of the existence of, and a complete and accurate copy of, such Purchased Contract (each such Contract in clauses (iv) and (v) above, a “Post-Signing Assumed Contract”), and in
the case of clause (v) above, in the event (A) Purchaser does not agree in writing within ten (10) business days following such written notice to specifically assume the Liabilities relating to any such Contract or (B) a
Purchaser Indemnified Party asserts any Liability, including any indemnification claim, against any Seller in respect of such Contract prior to the expiration of such ten (10) business day period, the Seller shall be fully entitled to terminate
such Contract on whatever terms it deems appropriate at its sole expense; provided that if the Seller (x) does not have the right to terminate such Contract or (y) determines that it cannot terminate such Contract on commercially
reasonable terms, then to the extent that and for so long as there are obligations required under such Contract that can, using commercially reasonable efforts, be performed by Purchaser and cannot, using commercially reasonable efforts, be
performed by Seller, Purchaser shall use commercially reasonable efforts to perform such obligations for the benefit of the Seller (at Purchaser’s fully loaded actual cost which will be fully reimbursed by Seller); 

(c) all Products Liability Claims and Ordinary Course Warranty Obligations arising out of or relating to (i) the products of the
Business set forth on Section 2.4(c) of the Disclosure Schedule (other than Liabilities arising out of any matters set forth on Sections 4.9 and 4.20 of the Disclosure Schedule) and (ii) the products of the Business
that were not set forth on Section 2.4(c) of the Disclosure Schedule as to which Purchaser has agreed in writing to specifically assume the benefits and obligations relating to such product after the Sellers provide Purchaser with
written notice of the existence of such product (each such product a “Post-Signing Assumed Product”), and in the case of clause (ii), in the event (A) Purchaser does not agree in writing within ten (10) business days
following such written notice to specifically assume the benefits and obligations relating to any such product of the Business that was not set forth on Section 2.4(c) of the Disclosure Schedule or (B) a Purchaser Indemnified Party
asserts any Liability, including any indemnification claim, against any Seller in respect of such product prior to the expiration of such ten (10) business-day period, Purchaser shall (x) promptly cease manufacture and sale of such product
and (y) transfer such product, together with all rights solely related to such product (including by (1) the transfer of all Intellectual Property rights solely related to such product to Sellers and (2) the delivery of a
non-exclusive license to Sellers of all Intellectual Property rights related (but not solely related) to such product for use in the manufacture and sale thereof) in accordance with Section 6.7 hereof; 

(d) all Liabilities arising out of or relating to any claims made by any Transferred Employees (including claims relating to
service or employment or termination) to 

  
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the extent such Liabilities (i) are expressly assumed by Purchaser under Section 6.10, (ii) arise from pre-Closing actions taken (or any failure to act) by other Transferred
Employees where such actions (or failures to act) were in conflict with or derogation of policies or practices of the Sellers, or (iii) arise from the Sellers’ policies or practices (A) applicable solely to employees of the Business,
or (B) which the Sellers at the time of execution of this Agreement had no reason to know are unlawful; 
 (e) all
Liabilities arising under or relating to Environmental Laws with respect to New Conditions or the Exacerbation of Pre Existing Conditions (collectively, the “Assumed Environmental Liabilities”); 

(f) all Liabilities arising out of or relating to any Acquired Intellectual Property, including with respect to any infringement thereby
or misappropriation relating thereto; 
 (g) all Liabilities with respect to Taxes for which the Sellers are not responsible
pursuant to Section 8.4; and 
 (h) all Liabilities of the Sellers arising out of or relating to any non-compliance
or alleged non-compliance of the Business with applicable Laws; provided that such non-compliance or alleged non-compliance (i) relates solely to the operations of the Business and not also to any other operations or businesses of the
Sellers (it being understood that (X) the fact that a particular non-compliance or alleged non-compliance of the Business occurs in connection with sales, purchases or other business interaction between the Business, on the one hand, and HTT,
Richardson, NW Illinois and/or Juarez, on the other hand, or (Y) if the Business has not complied with a particular applicable Law, the fact that another operation or business of the Sellers has at some point failed or was alleged to have
failed to comply with the same Law (where such other non-compliance or alleged non-compliance is not otherwise related to, connected with, or otherwise based on the same facts or circumstances as the non-compliance by the Business), in either case
will not in and of itself mean that such non-compliance of the Business “relates also” to any other operations or businesses of the Sellers), (ii) is not (A) committed, implemented or directed by any current or former directors,
officers, or employees of the Sellers (other than Transferred Employees) or (B) affirmatively approved or condoned by any of the foregoing persons (other than Transferred Employees) where such non-compliance or alleged non-compliance occurred
or continued after such person had actual knowledge of such non-compliance or alleged non-compliance, and (iii) does not relate to Laws which are applicable to the Sellers’ ownership and control of the Business rather than the operations
of the Business itself (such as applicable securities laws and Foreign Corrupt Practices Act of 1977, as amended, or any other similar applicable U.S. federal or state or non-U.S. Laws); it being understood that this subsection (h) shall not be
deemed to limit or expand the scope of any of the Assumed Liabilities contained in subsections (c) through (g) (inclusive) of this Section 2.4. 
 2.5 Excluded Liabilities. 
 (a) Purchaser shall not assume or become
responsible for, and shall not be deemed to have assumed or to have become responsible for, any Liabilities of Sellers or any of Sellers’ Affiliates that are not Assumed Liabilities, including the following Liabilities of or relating to any
Seller or any of Sellers’ Affiliates (excluding the Purchased Entities, subject to Section 2.5(b)) (together with the Liabilities described in Section 2.5(b), the “Excluded Liabilities”): 

(i) any Liability to the extent arising out of or relating to any Excluded Asset or the operation or conduct by Sellers
or any of their Affiliates of any business (other than the Business), (it being understood that the fact that a particular Liability of the Business relates to sales, purchases or other business interaction among the Business and HTT, Richardson, NW
Illinois and/or Juarez will not in and of itself mean that such a Liability is an Excluded Liability unless it would be otherwise excluded pursuant to this Section 2.5); 

  
 18 

  
 (ii)
any Liability of any Seller for (A) any Indebtedness, including any guarantee of Indebtedness or (B) restructuring, severance or similar costs and expenses related to reduction in force initiatives of the Sellers or the Purchased Entities
occurring or initiated on or prior to Closing; 
 (iii) any Liability with respect to Taxes relating to or
arising out of the Business or the Purchased Assets for which the Sellers are responsible for pursuant to Section 8.4; 
 (iv) any Liability other than the Purchaser’s Assumed Environmental Liabilities arising under or relating to Environmental Laws, including any such Liability not constituting an Assumed Environmental
Liability arising in connection with environmental conditions identified in the Environmental Reports or the generation, use, handling, presence, treatment, storage, transportation, disposal or Release of any Materials of Environmental Concern or
any Third-Party Claims for personal injury or property damage resulting from the Release of Materials of Environmental Concern; 
 (v) any Liability (A) relating to the service or employment with the Business or termination of service or employment from the Business of any Person (other than Assumed Liabilities), or
(B) relating to or at any time arising under any Company Plan (including any Foreign Plan), or any other benefit or compensation plan, program, agreement or arrangement at any time maintained, sponsored, contributed to or required to be
contributed to by any Seller, any of its Subsidiaries, or any ERISA Affiliate (other than those Liabilities expressly assumed by Purchaser under Section 6.10); 

(vi) any Liability pursuant to this Agreement, any Ancillary Agreement or any other agreement between a Seller and
Purchaser; 
 (vii) any Liability, obligations or covenants with respect to (A) any assets, properties,
entities or business operations divested by any Seller in connection with the Business prior to the Closing Date (other than, for the avoidance of doubt, (x) products or services sold or delivered by the Business in the ordinary course of its
business or (y) Liabilities, obligations or covenants arising from or related to a Purchased Contract set forth on Section 2.5(a)(vii) of the Disclosure Schedule), or (B) the real property located in Freeport, Illinois and
Chonan, South Korea (other than Assumed Liabilities set forth in Section 2.4(e) or as set forth in any Ancillary Agreement); 

  
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 (viii)
any Liability for or obligation related to any costs, fees, Taxes and expenses in connection with the investigation, preparation, diligence, negotiation, approval, authorization, execution and delivery of this Agreement and the consummation (or the
preparation for the consummation) of the transactions contemplated hereby, including fees of legal counsel, brokers, advisors and accountants; 
 (ix) those Liabilities arising out of or relating to the Business that are expressly set forth on Section 2.5(a)(ix) of the Disclosure Schedule; 

(x) Liabilities arising out of or relating to any matters set forth on Sections 4.9 and 4.20 of the
Disclosure Schedule; 
 (xi) all Liabilities arising under or relating to any Contract that is (A) not a
Purchased Contract, or (B) a Material Contract that (1) is not set forth on Section 2.4(b) of the Disclosure Schedule, (2) is not Made Available in sections III.F, VI.B.2.b, VI.B.2.c, VI.B.2.f, VI.B.2.l, VI.B.2.o or
VIII.A.2 of the datasite to Purchaser prior to the date hereof and (3) is not a Post-Signing Assumed Contract; 
 (xii) all Liabilities of the Sellers arising out of or relating to any non-compliance or alleged non-compliance with applicable Laws not assumed in Section 2.4(h); 

(xiii) any intercompany accounts, notes or other payables of Sellers, other than trade payables arising out of any
purchases from Richardson or Juarez solely to the extent reflected in Final Net Working Capital; 
 (xiv) all
Liabilities arising out of or relating to any product of the Business that is not set forth on Section 2.4(c) of the Disclosure Schedule and is not a Post-Signing Assumed Product, designed, manufactured, sold, serviced or repaired in
connection with the Business prior to the Closing, including all product return, replacement, rebate, credit and warranty obligations (including Ordinary Course Warranty Obligations) relating thereto, and all products liabilities (including Products
Liability Claims) relating thereto; and 
 (xv) those Liabilities arising out of and relating to the
Reorganization Actions (including any Transfer Taxes and any costs related to obtaining any required third party consents related thereto). 
 (b) Purchaser shall not assume or become responsible for, and shall not be deemed to have assumed or to have become responsible for, the following Liabilities of any Purchased Entity: 

(i) any Liability to the extent arising out of relating to any Purchased Entity Excluded Asset; 

  
 20 

  
 (ii)
any Liability of any Purchased Entity for any Indebtedness, including any guarantee of Indebtedness; 
 (iii)
any Liability with respect to Taxes of the Purchased Entities for which the Sellers are responsible pursuant to Section 8.4; 
 (iv) any Liabilities of the Purchased Entities to the extent not related to the Business; 
 (v) any Liability of a Purchased Entity arising because it is or has been treated as a single employer with any other Person (other than the Purchaser or any of its Affiliates) pursuant to
Section 414 of the Code or Section 4001(b) of ERISA; 
 (vi) any Liabilities of the types described in
Sections 2.5(a)(iv), (v)(A), (ix), (x), (xi), (xii) and (xiv); 
 (vii) any Liabilities of the types described in Sections 2.5(a)(v)(B), (viii), (xiii), and (xv); and 

(viii) any Liability, obligations or covenants to the extent arising out of or relating to any assets, properties,
entities or business operations divested by any Purchased Entity prior to the Closing Date (other than, for the avoidance of doubt, products or services sold or delivered by the Purchased Entities in the ordinary course of their respective
businesses); 
 provided, that for purposes of the determinations in Section 3.4, the Final Net Working Capital shall not
include any Excluded Liabilities as set forth in subsections (a) and (b) above. 
 2.6 Liabilities of the
Purchased Entities. The parties agree that none of the Liabilities of the Purchased Entities shall be assumed by Purchaser pursuant to Section 2.4 and that, except to the extent specifically referenced in Section 2.5(b), none
of the Liabilities of the Purchased Entities shall be allocated to the Sellers pursuant to Section 2.5, but, subject to Section 2.5(b), that all such Liabilities shall be retained by the respective Purchased Entity in the
same manner before and after the Closing Date without any change therein as a result of the transactions contemplated hereunder, except as otherwise set forth herein. 
 ARTICLE III 
 CLOSING; CLOSING DELIVERIES 

3.1 Purchase Price. The aggregate purchase price to be paid for the Purchased Assets pursuant to this Agreement shall be One
Hundred and Forty Million Dollars ($140,000,000.00) in cash (the “Initial Purchase Price”), subject to adjustment pursuant to Section 3.4, plus the assumption of the Assumed Liabilities (the “Purchase
Price”). The Purchase Price shall be allocated in accordance with Section 3.5. Except as may otherwise be required under Section 6.2(f) with respect to the payment of the HON Shanghai Purchase Price, at the Closing,
Purchaser shall deliver the Initial Purchase Price to Honeywell, as agent for the Sellers, by wire transfer of immediately available funds pursuant to the wire transfer instructions 

  
 21 

 
provided by Honeywell in writing no later than three (3) days prior to the Closing Date. In the event that the SAFE Special Bank Account has not been obtained as of or prior to the Closing
and the HON Shanghai Purchase Price is paid directly to Honeywell at the Closing, within one (1) business day after the date on which Purchaser receives an amount equal to the HON Shanghai Purchase Price from Honeywell, Purchaser shall wire an
amount equal to the HON Shanghai Purchase Price to the SAFE Special Bank Account pursuant to the wire transfer instructions therefor provided by Honeywell to Purchaser in writing prior to such payment. 

3.2 Closing Date. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place
at the offices of Jenner & Block LLP, 353 N. Clark St., Chicago, Illinois, on (i) the first business day that is at least two (2) business days following satisfaction or waiver of all of the conditions to Closing set forth in
Article VII (other than those conditions that by their nature have to be satisfied at Closing (but subject to the satisfaction or waiver of those conditions)), or (ii) if the date determined under clause (i) would be earlier than
December 30, 2010 or thereafter is not the last business day of the month, Purchaser may elect to have the Closing take place on December 30, 2010 (or at Purchaser’s election, on any business day in January 2011) or on the last
business day of the month, as applicable, so long as Purchaser agrees to waive the satisfaction of the conditions set forth in Sections 7.2(a) through 7.2(c) to the extent such conditions were actually satisfied as of the date
determined under clause (i), or at such other place and time as the parties may mutually agree; provided further, that if, upon the date determined under clause (i) (as further extended by Purchaser under clause (ii)), Honeywell and Purchaser
have not agreed upon a mutually acceptable HTT Supply Agreement, the Sellers may elect to defer the Closing up to thirty (30) days, during which time, Honeywell and Purchaser shall continue to negotiate in good faith the terms and conditions of
the HTT Supply Agreement in accordance with Section 6.22, so long as Honeywell agrees to waive the satisfaction of the conditions set forth in Sections 7.3(a) through 7.3(c) to the extent such conditions were actually
satisfied as of the date determined under clause (i) (or as further extended by Purchaser under clause (ii)). The date on which the Closing occurs is referred to herein as the “Closing Date” and the Closing shall be deemed
effective as of 12:01 a.m. (Eastern time) on the Closing Date. 
 3.3 Closing Deliveries. At the Closing, 

(a) Purchaser shall deliver to Honeywell: 
 (i) the Initial Purchase Price pursuant to Section 3.1; 
 (ii) a duly executed counterpart of a bill of sale and assignment and assumption agreement in substantially the form attached hereto as Exhibit B (the “Bill of Sale”);

 (iii) a duly executed counterpart of a transition services agreement in substantially the form attached
hereto as Exhibit C (the “Transition Services Agreement”); 
 (iv) duly executed
counterparts of instruments of assignment to Purchaser of all patents, patent applications and other Intellectual Property rights included in the Purchased Assets in substantially the form attached hereto as Exhibit D (the
“Intellectual Property Assignments”); 

  
 22 

  
 (v) a
duly executed counterpart of an Intellectual Property license agreement in substantially the form attached hereto as Exhibit E (the “Intellectual Property License Agreement”); 

(vi) a duly executed counterpart of the supply agreement in substantially the form attached hereto as
Exhibit H (the “Supply Agreement”); 
 (vii) a duly executed counterpart of a
supply agreement between HTT and Purchaser or an Affiliate of Purchaser relating to the supply of certain sensor products (including the items set forth in Section 3.3(a)(vii) of the Disclosure Schedule) to HTT, if mutually agreed to
between Honeywell and Purchaser (the “HTT Supply Agreement”); 
 (viii) a duly executed
counterpart of the Sleipnir ASIC Support Agreement in substantially the form attached hereto as Exhibit M (the “Sleipnir ASIC Support Agreement”); 

(ix) a duly executed counterparty of the Confidential ASIC Technology Agreement in substantially the form attached hereto
as Exhibit N (the “Confidential ASIC Technology Agreement”); 
 (x) duly executed
counterparts of any stock transfer agreements, asset transfer agreements and/or other instruments of conveyance with respect to the transfer of any portion of the Purchased Assets outside the United States (but including Equity Interests in entities
organized in jurisdictions outside the United States), in forms reasonably acceptable to Purchaser; it being understood that such agreements and/or other instruments of conveyance are intended solely to formalize such foreign transfers in order to
comply with any local Laws pertaining thereto (“Foreign Transfer Agreements”); 
 (xi) a
duly executed counterpart of the lease for the real property located in Freeport, Illinois in substantially the form attached hereto as Exhibit F (the “Freeport Lease”); 

(xii) a duly executed counterpart of the Chonan contract manufacturing agreement in substantially the form attached
hereto as Exhibit L (the “Chonan Manufacturing Agreement”); and 
 (xiii) the
certificate required to be delivered pursuant to Section 7.3(c). 
 (b) The Sellers shall deliver to Purchaser:

 (i) certificates representing the Equity Interests, which certificates shall be duly endorsed to Purchaser or
accompanied by duly executed stock powers, stock transfer forms or other appropriate instruments of transfer; 

  
 23 

  
 (ii) a
duly executed counterpart of the Bill of Sale; 
 (iii) a duly executed counterpart of the Transition Services
Agreement; 
 (iv) duly executed counterparts of the Intellectual Property Assignments; 

(v) a duly executed counterpart of the Intellectual Property License Agreement; 

(vi) a duly executed counterpart of the Freeport Lease; 

(vii) a duly executed counterpart of the Supply Agreement; 

(viii) a duly executed counterpart of the HTT Supply Agreement, if mutually agreed to between Honeywell and Purchaser;

 (ix) a duly executed counterpart to the Sleipnir ASIC Support Agreement; 

(x) a duly executed counterpart to the Confidential ASIC Technology Agreement; 

(xi) duly executed Foreign Transfer Agreements; 

(xii) a duly executed counterpart of the Chonan Manufacturing Agreement; 

(xiii) the certificate required to be delivered pursuant to Section 7.2(c); 

(xiv) subject to Section 6.6(a) hereof, all of the minute books, stock ledgers and similar corporate records,
and corporate seals of each of the Purchased Entities; 
 (xv) written resignations, in form and substance
reasonably satisfactory to Purchaser, of those officers and directors of the Purchased Entities set forth on Section 3.3 of the Disclosure Schedule; 

(xvi) a certification as to Honeywell’s non-foreign status which complies with the provisions of
Section 1445(b)(2) of the Code, in substantially the form attached hereto as Exhibit G; and 

  
 24 

  
 (xvii)
such other instruments of sale, assignment, conveyance and transfer as Purchaser reasonably requests with reasonable advance notice prior to the Closing Date to effectively convey to Purchaser good title, right and interest in and to the Purchased
Assets. 
 3.4 Working Capital. 
 (a) Within 90 days following the Closing Date, Purchaser shall prepare and deliver to Honeywell (i) a statement (the “Preliminary Working Capital Statement”), setting forth a
calculation of the Net Working Capital (the “Preliminary Net Working Capital”) as of the close of business on the day immediately prior to the Closing Date and (ii) a calculation of the amount due and owing and a statement
setting forth the responsible party therefor in accordance with Section 3.4(f), in each case, prepared in accordance with the Specified Accounting Policies and GAAP. The “Final Net Working Capital” shall be the
Preliminary Net Working Capital shown on the Preliminary Working Capital Statement, as modified pursuant to this Section 3.4. Notwithstanding anything to the contrary set forth in this Agreement, in no event shall the calculation of the
Final Net Working Capital be affected by any Purchaser purchase accounting adjustments for the transactions taking place on or after the Closing. 
 (b) Unless Honeywell notifies Purchaser in writing that Honeywell disagrees with any aspect of the Preliminary Working Capital Statement (such notice to include Honeywell’s objections, a reasonable
description of the basis therefor and reasonably detailed proposed revisions to said documents), within sixty (60) days after receipt thereof, the Preliminary Working Capital Statement shall be conclusive and binding on the parties and shall be
the Final Net Working Capital. If Honeywell so notifies Purchaser in writing within such sixty (60) day period, then Honeywell and Purchaser shall attempt to resolve their differences with respect thereto in good faith within fifteen (15)
days after Purchaser’s receipt of Honeywell’s written notice of disagreement. If Honeywell and Purchaser resolve their differences with respect to the Preliminary Working Capital Statement within such fifteen (15) day period, then the
Preliminary Working Capital Statement, with such modifications necessary to reflect such agreement of Honeywell and Purchaser, shall be conclusive and binding on the parties and shall be the Final Net Working Capital. Any disputes not resolved by
Honeywell and Purchaser within such fifteen (15) day period regarding the Preliminary Working Capital Statement (the “Disputed Amount”) will be resolved by an Independent Accounting Firm jointly retained by Honeywell and
Purchaser. The Independent Accounting Firm shall make a determination only on the Disputed Amount as well as such modifications, if any, to the Preliminary Working Capital Statement necessary to reflect such determination, and the same shall be
conclusive and binding upon the parties, except as provided by applicable Law. The determination of the Independent Accounting Firm for any item in dispute cannot, however, be in excess of, nor less than, the greatest or lowest value, respectively,
claimed for that particular item in the Preliminary Working Capital Statement, in the case of Purchaser, or in the notice described in the first sentence of this paragraph, in the case of Honeywell. The fees and expenses of the Independent
Accounting Firm shall be paid by the parties as follows: Honeywell shall pay a percentage of the fees and expenses of the Independent Accounting Firm equal to: (i) the difference, if any, between Honeywell’s estimated value of the Final
Net Working Capital as submitted to the Independent Accounting Firm and the Independent Accounting Firm’s final determination of Final Net Working Capital divided by (ii) the Disputed Amount. Purchaser

  
 25 

 
shall pay the remaining percentage, if any, of the fees and expenses of the Independent Accounting Firm (it being understood that in the event the Final Net Working Capital is equal to the
Preliminary Net Working Capital determined by a party (as submitted to arbitration by such party), the other party shall pay all fees and expenses of the Independent Accounting Firm). The Independent Accounting Firm shall be instructed to render its
decision in accordance with the terms hereof, including the Specified Accounting Policies. 
 (c) In connection with
Honeywell’s review of the Preliminary Working Capital Statement and preparation of any notice of objection, Honeywell and its representatives shall have reasonable access, during normal business hours and upon reasonable advance written notice,
to the books and records, the financial systems and finance personnel and any other information of Purchaser and the Purchased Entities that Honeywell reasonably requests, including all relevant work papers, schedules, memoranda and other documents
prepared by Purchaser’s accountants and other advisors (subject to customary indemnification and other agreements that may be requested by Purchaser’s accountants and other advisors) in connection with Purchaser’s preparation of the
Preliminary Working Capital Statement, and Purchaser shall, and shall cause its Subsidiaries (including the Purchased Entities), and shall use reasonable efforts to cause its accountants and other advisors, to cooperate reasonably with Honeywell and
its representatives in connection therewith. 
 (d) In connection with Purchaser’s review of any notice of objection,
Purchaser and its representatives shall have reasonable access, during normal business hours and upon reasonable advance written notice, to all relevant work papers, schedules, memoranda and other documents prepared by Honeywell or its accountants
and other advisors (subject to customary indemnification and other agreements that may be requested by Honeywell’s accountants and other advisors) and to finance personnel of Honeywell and its representatives and any other information which
Purchaser reasonably requests, and Honeywell shall, and shall use reasonable efforts to cause its accountants and other advisors to, cooperate reasonably with Purchaser and its representatives in connection therewith. 

(e) No later than thirty (30) days after the engagement of the Independent Accounting Firm, as evidenced by its written acceptance
by facsimile or otherwise to the parties, each of Honeywell and Purchaser shall submit a brief to the Independent Accounting Firm (with a copy to the other party) setting forth its respective positions regarding the issues in dispute. No later than
thirty (30) days after submission of the initial brief, each of Honeywell and Purchaser shall submit a reply brief (with a copy to the other party). The Independent Accounting Firm shall render its decision resolving the dispute within
thirty (30) days after submission of the last reply brief. If additional briefing, a hearing, or other information is required by the Independent Accounting Firm, the Independent Accounting Firm shall give notice thereof to the parties as soon
as practicable before the expiration of such thirty (30) day period, and the parties shall promptly respond with a view to minimizing any delay in the decision date. 
 (f) In accordance with the procedure described above in this Section 3.4, the Initial Purchase Price shall be (i) increased on a dollar for dollar basis by the amount by which the Final
Net Working Capital is greater than the Targeted Net Working Capital, or (ii) decreased on a dollar for dollar basis by the amount by which the Final Net Working Capital is less than the Targeted Net Working Capital. 

  
 26 

  
 (g) Honeywell or
Purchaser, as the case may be, shall deposit the amounts, if any, owed by it, as the case may be, under subsection (f) above, together with interest thereon from the Closing Date to the date of payment at a floating rate equal to the U.S.
dollar prime rate per annum, as quoted by JPMorgan Chase & Co., from time to time during such period, in immediately available funds, to a bank account designated by the other party no later than five (5) business days after the Final
Net Working Capital has been agreed to or deemed to be agreed to by, or has been delivered by the Independent Accounting Firm. 

(h) For the avoidance of doubt, notwithstanding anything herein to the contrary, the parties agree that any matter specifically resolved
and reflected as part of the Final Net Working Capital under this Section 3.4 shall not also be recoverable as a Loss pursuant to Article VIII or Article X solely to the extent that the amount of such Loss is
reflected as a current liability in the Final Net Working Capital and actually resulted in an adjustment to the Purchase Price pursuant to Section 3.4(f). 
 3.5 Purchase Price Allocation. 
 (a) The Purchase Price allocated to the
Equity Interests in each of the Purchased Entities and to the Purchased Assets (net of Assumed Liabilities) of each Asset Seller shall be in accordance with the Purchase Price Allocation Schedule attached hereto as Exhibit A-1, subject
to adjustment pursuant to Section 3.4, and no party shall take a position inconsistent with such allocation on any Tax Return (unless otherwise required by a final, nonappealable determination of a court of competent jurisdiction or a
binding closing agreement entered into with a Taxing Authority). The parties shall promptly inform one another in writing of any challenge by any Taxing Authority to any Purchase Price allocation made pursuant to this Agreement and agree to consult
with and keep one another informed with respect to the status of, and any discussion, proposal or submission with respect to, any such challenge. Within thirty (30) days following (i) the determination of any excess or deficit in
accordance with Section 3.4(f), (ii) an indemnification payment pursuant to Section 8.4 or (iii) an indemnification payment pursuant to Article X, in each case, the Sellers and Purchaser shall revise the
purchase price allocation to reflect such excess, deficit or payment in accordance with the nature of each relevant excess, deficit or payment (or if the nature of each relevant excess, deficit or payment cannot be reasonably determined, consistent
with the proportional allocation of value described in Exhibit A-1). 
 (b) The portion of the Purchase Price allocated
to the Purchased Assets (net of Assumed Liabilities) of Honeywell as set forth on Exhibit A-1 plus those Assumed Liabilities of Honeywell that constitute Liabilities for federal income tax purposes (the “Gross US Purchase
Price”) shall be allocated among the Purchased Assets of Honeywell in the manner required by Section 1060 of the Code as shown on an allocation schedule to be prepared by Purchaser as soon as practicable after the Closing Date. The
template of the allocation schedule is attached hereto as Exhibit A-2. Purchaser shall provide Honeywell with such allocation schedule and Purchaser shall make such revisions or changes to such schedule as shall be reasonably requested
by Honeywell and approved by Purchaser, each acting in good faith. In the 

  
 27 

 
event Purchaser and Honeywell are unable to agree on the allocation of the Gross US Purchase Price in such manner, then each (acting reasonably and in good faith) shall be free to do its own
allocation of the Gross US Purchase Price. In the event Purchaser and Honeywell do agree on the allocation of the Gross US Purchase Price, then such allocation shall be binding on them for federal, state, local and other Tax reporting purposes,
including filings on Internal Revenue Service Form 8594, and neither of them will assert or maintain a position inconsistent with such allocation. 
 (c) The portion of the Purchase Price allocated on Exhibit A-1 to the Purchased Assets (net of Assumed Liabilities) of each of HON Korea and HON Czech plus the Assumed Liabilities of each of
HON Korea and HON Czech (in each case, the “Gross Foreign Purchase Price”) shall be allocated among the Purchased Assets of each of HON Korea and HON Czech as shown on an allocation schedule to be prepared by Purchaser as soon as
practicable after the Closing Date. The template of the allocation schedule is attached hereto as Exhibit A-3. Purchaser shall provide the Sellers with such allocation schedule and Purchaser shall make such revisions or changes to such
schedule as shall be reasonably requested by the Sellers and approved by Purchaser, each acting in good faith. In the event Purchaser and any of the Sellers are unable to agree on the allocation of the Gross Foreign Purchase Price in such manner,
then each (acting reasonably and in good faith) shall be free to do its own allocation of the Gross Foreign Purchase Price. In the event Purchaser and the Sellers do agree on the allocation of the Gross Foreign Purchase Price, then such allocation
shall be binding on them for all Tax reporting purposes, and none of them will assert or maintain a position inconsistent with such allocation. 
 3.6 Withholding. Notwithstanding any other provision in this Agreement, Purchaser (and any other Person that has any withholding obligation with respect to any payment made pursuant to this
Agreement) shall be entitled to deduct and withhold from the payments to be made pursuant to this Agreement any Taxes required to be deducted and withheld with respect to the making of such payments under the Code, the Treasury Regulations issued
thereunder, or any other applicable provision of Law. To the extent that amounts are so withheld and deducted pursuant to this Section 3.6, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to
such Person in respect of which such deduction and withholding was made. If Purchaser intends to withhold pursuant to this Section 3.6, it shall provide notice to Honeywell at least five (5) days prior to Closing. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE SELLERS 
 The Sellers, jointly and severally, hereby represent and warrant to Purchaser that, as of the date hereof and as of the Closing Date (except in each case to the extent any representation or warranty
speaks expressly as of an earlier date), except as set forth on the disclosure schedule delivered by Honeywell to Purchaser concurrently herewith (the “Disclosure Schedule”) (it being understood that (x) any matter set
forth in the Disclosure Schedule shall be deemed disclosed with respect to all sections of this Article IV to which such matter relates so long as the description of such matter in the Disclosure Schedule makes its relevance to such
other sections reasonably apparent, whether or not a specific cross reference appears and (y) any action to the extent described in Section 6.1 of the Disclosure Schedule shall be deemed disclosed as an exception to all
representations and warranties made as of the Closing Date): 
 4.1 Corporate Status. Each of the Sellers and Purchased
Entities is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (to the extent such concept of good standing is recognized under such laws of incorporation) and each
(a) has all requisite power and authority to carry on the Business as it is now being conducted, and (b) is duly qualified or otherwise authorized to do business and is in good standing (to the extent such concept of good standing is
recognized under such laws of incorporation) in each of the jurisdictions in which the ownership, operation or leasing of the Purchased Assets or the properties or assets of the Purchased Entities (other than Excluded Assets) and the conduct of the
Business requires it to be so qualified or otherwise authorized, except where the failure to be so qualified or otherwise authorized would not result in a material Loss to the Business taken as a whole. Honeywell has Made Available to Purchaser a
true and correct copy of the certificate of incorporation, articles of association, by-laws, regulations or other organizational or governing documents of each of the Purchased Entities, each as in effect on the date hereof, together with all
amendments thereto. 

  
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 4.2 Authority.
Each of the Sellers has all requisite power and authority to execute, deliver and perform its obligations under this Agreement and under the Ancillary Agreements to which it is a party, and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance by each of the Sellers of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary
corporate or other entity action (including any stockholder or board approvals) on the part of the applicable Seller, and no other corporate or other entity proceedings on the part of the Sellers are necessary to authorize the execution, delivery
and performance by any Seller of this Agreement and the Ancillary Agreements to which it is a party or to consummate the transactions contemplated hereby and thereby. This Agreement has been, and upon execution, the Ancillary Agreements will be duly
executed and delivered by each Seller that is a party thereto, and, assuming due authorization and delivery by Purchaser, this Agreement constitutes, and upon execution the Ancillary Agreements will constitute, valid and binding obligations of each
Seller that is a party thereto enforceable against each such Seller in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar Laws now or hereafter in
effect relating to or affecting creditors’ rights generally or by general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

4.3 No Conflict; Government Authorizations. 
 (a) Except as set forth in Section 4.3(a) of the Disclosure Schedule, the execution and delivery of this Agreement and the Ancillary Agreements do not, and the consummation of the transactions
contemplated hereby and thereby will not (with or without notice or lapse of time, or both), conflict with, or result in any violation of or default under, or give rise to a right of termination, cancellation or acceleration of any obligation or to
loss of a benefit under, or result in the creation of any Encumbrance (except for Permitted Encumbrances) upon any of the Purchased Assets or properties or assets of the Purchased Entities under, any

  
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provision of (i) the certificate of incorporation, articles of association, joint venture contract or agreement, by-laws or other organizational or governing documents of any Seller or any
Purchased Entity, (ii) any Material Contract, or any Contract (other than a Purchased Contract) that relates to any Seller’s ownership of or ability to transfer any Purchased Assets, or (iii) any Permit, Governmental Order or, subject
to the matters described in clauses (i) and (ii) of Section 4.3(b), Law applicable to the Purchased Assets, the Purchased Entities or the property or assets of the Purchased Entities, other than, in the case of
clauses (ii) and (iii) above, any such conflicts, violations, defaults, rights or Encumbrances that would not interfere in any material respect with the conduct of the Business as presently conducted by the Sellers and the Purchased
Entities or result in any material (A) fine, (B) penalty or (C) other Loss to the Business or the Purchased Entities. 
 (b) Except as set forth in Section 4.3(b) of the Disclosure Schedule, no material consent, authorization, approval, or exemption of, or registration, declaration, notice or filing with, any
Governmental Authority is required to be obtained or made by any Seller or Purchased Entity in connection with the execution, delivery and performance of this Agreement or the Ancillary Agreements or the consummation of the transactions contemplated
hereby and thereby, other than (i) compliance with and filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder (the “HSR Act”), and (ii) to
the extent applicable, compliance with and filings under similar Laws of foreign jurisdictions other than the United States. 

4.4 Capitalization. 
 (a) Section 4.4(a) of the Disclosure Schedule sets forth a true and complete list of the authorized and outstanding capital stock, name, jurisdiction of organization, and record owner of the
Equity Interests of each Purchased Entity. All of the outstanding Equity Interests are duly authorized, validly issued, fully paid and nonassessable and free and clear of any and all Encumbrances. The Equity Interests constitute all of the issued
and outstanding equity interests of HON Czech Controls and all of the issued and outstanding equity interests of HON Shanghai owned by the Sellers which equals ninety (90%) of all such equity interests of HON Shanghai. None of the Equity
Interests were issued in violation of any shareholder preemptive or similar rights or of any applicable federal, state, foreign or transnational securities laws. 
 (b) There are no existing options, warrants, calls, rights, subscriptions, arrangements, claims, commitments (contingent or otherwise) or other agreements of any character to which any of the Purchased
Entities is a party, or is otherwise subject, requiring, and there are no securities of any of the Purchased Entities outstanding which, upon conversion or exchange would require, the issuance, sale or transfer of any additional shares of capital
stock or other securities of any of the Purchased Entities convertible into, exchangeable for or evidencing the right to subscribe for or purchase capital stock or any other securities of any of the Purchased Entities. There are no outstanding or
authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the Purchased Entities. None of the Sellers or the Purchased Entities is a party, or is otherwise subject, to any voting trust or other voting
agreement with respect to the Equity Interests or to any agreement relating to the issuance, sale, redemption, transfer, acquisition or other disposition or the registration of the Equity Interests. 

  
 30 

  
 (c) There are no
Subsidiaries, joint ventures or other Persons in which the Purchased Entities own, of record or beneficially, any direct or indirect equity or other similar interest or any right (contingent or otherwise) to acquire any direct or indirect equity or
other similar interest. 
 (d) Solely for purposes of the conditions set forth in section 5.9 of the HON Shanghai joint
venture contract, dated as of March 16, 2005, between Shanghai Creation Electronics Co., Ltd. and HON China (the “Joint Venture Agreement”) and as set forth in section 3.9(b) of the Articles of Association referenced in
the Joint Venture Agreement, the Purchased Assets constitute substantially all of the assets of the “Automotive-On-Board business” (as referenced in the Joint Venture Agreement). 

4.5 Financial Statements. 
 (a) Attached to Section 4.5(a) of the Disclosure Schedule are copies of the unaudited historical pro forma balance sheets of the Business as of December 31, 2008, December 31,
2009 and May 29, 2010 (the “Balance Sheets”) and the unaudited pro forma statements of income of the Business for June 30, 2010 and the fiscal years ended December 31, 2009 and December 31, 2008 (collectively
with the Balance Sheets, the “Financial Statements”). 
 (b) The Financial Statements were derived from the
books and records of the Sellers and the Purchased Entities, and present fairly, in all material respects, the financial position and operating results of the Business as of the dates thereof and for the periods covered thereby, in accordance with
the Specified Accounting Policies, consistently applied, subject to year-end adjustments (none of which are or will be inconsistent with past practice nor, individually or in the aggregate, material) and the absence of footnotes and other
presentation items. 
 4.6 Absence of Certain Changes; Undisclosed Liabilities. 

(a) Except as expressly required by this Agreement or as set forth in Section 4.6(a) of the Disclosure Schedule, since
December 31, 2009, the Sellers have, including through the Purchased Entities, operated the Business in the ordinary course of business consistent with past practice in all material respects, and the Purchased Entities have not, and none of the
Sellers in connection with the Business have, taken any of the following actions: 
 (i) adopted any change in
the respective certificates of incorporation, articles of association or bylaws or other similar organization or governing documents of the Purchased Entities; 
 (ii) adopted a plan or agreement of complete or partial liquidation, dissolution, restructuring, merger, consolidation, restructuring, recapitalization or other reorganization of any of the Purchased
Entities; 
 (iii) (A) issued, sold, transferred, pledged, disposed of or encumbered any shares of capital
stock of the Purchased Entities or any securities or rights convertible, exchangeable or exercisable into any shares of capital stock of the Purchased Entities, (B) split, combined, subdivided or reclassified any shares of capital

  
 31 

 
stock of the Purchased Entities, (C) granted any options, warrants, or other rights to purchase or obtain any equity securities or any shares of capital stock of the Purchased Entities,
(D) declared, set aside or paid any dividend or other distribution other than in each case for cash, or (E) redeemed, purchased or otherwise acquired, directly or indirectly, any shares of capital stock of the Purchased Entities;

 (iv) entered into any Material Contract or materially amended or modified or terminated any Material
Contract; 
 (v) entered into or consummated any transaction involving the acquisition of the business or stock
(or, to the extent constituting a going-concern business, assets or other properties) of any other Person (other than purchases of inventory and, subject clause (vi) below, capital equipment in the ordinary course of business consistent with
past practice); 
 (vi) made any capital expenditure materially in excess of the capital expenditure budget Made
Available to Purchaser prior to the date of this Agreement; 
 (vii) sold, transferred, leased, licensed, or
otherwise disposed of material assets or properties of the Purchased Entities or assets or properties that would otherwise constitute Purchased Assets, other than as expressly required pursuant to existing Material Contracts and sales of inventory
in the ordinary course of business consistent with past practice; 
 (viii) sold, assigned, transferred, leased,
licensed or encumbered any material Intellectual Property, or disclosed any material trade secret, or abandoned any material Intellectual Property, in each case, other than pursuant to sales of inventory in the ordinary course of business consistent
with past practice; 
 (ix) mortgaged or pledged any of the material Purchased Assets or any of the material
assets or properties of the Purchased Entities, tangible or intangible, or created or suffered to exist any Encumbrance thereon (other than Permitted Encumbrances); 

(x) (A) made or rescinded any material tax election with respect to any of the Purchased Entities, (B) changed any
of the material methods of reporting income or deductions for Tax purposes of any of the Purchased Entities, (C) compromised any Tax Liability of any of the Purchased Entities that is material to the Purchased Entities or (D) issued a
waiver to extend the period of limitations for the payment or assessment of any Tax; 
 (xi) changed any of the
accounting principles or practices used by the Purchased Entities; 
 (xii) entered into any new lease or
sublease of real property or amended or terminated or waived any rights under any lease or sublease with respect to any Leased Real Property; 

  
 32 

  
 (xiii)
settled, conciliated or compromised any material claims, actions, suits, investigations or proceedings involving more than $100,000; 
 (xiv) implemented any layoff of employees that could implicate the Worker Adjustment and Retraining Notification Act of 1988, as amended, (the “WARN Act”) or any similar foreign,
transnational, state or local Law; 
 (xv) had physical damage, destruction, theft or casualty loss affecting
any of the assets of the Business or the Purchased Entities in an amount exceeding $50,000 per incident, whether or not covered by insurance; 
 (xvi) terminated or closed any facility, other than periodic shutdowns in the ordinary course of business; 
 (xvii) entered into any new benefit or compensation plan, program, agreement or arrangement or terminated any Company Plan or increased the benefits under any Company Plan or amended or modified any
Company Plan where such amendment or modification has a material cost impact on the Business taken as a whole, or granted or made a legally binding promise for any material increase in compensation or benefits to any director, officer, or Employee,
or any material bonus, severance, incentive, or profit sharing payments, in each case, except as required under existing agreements or arrangements that have been Made Available to Purchaser prior to the date of this Agreement or by applicable Law;
provided, however, that nothing in this Agreement shall prevent the Sellers or the Purchased Entities from entering into statutory employment agreements with new employees outside the United States, to the extent required by applicable
Laws, in the ordinary course of business; 
 (xviii) (A) other than in the ordinary course of business, incurred
or guaranteed any Indebtedness or issued any note, bond, or other debt security, (B) assumed, guaranteed, endorsed or otherwise become liable or responsible (whether directly, contingently or otherwise) for the obligations of any other Person;
(C) made loans, advances or capital contributions to or investments in any other Person (other than advances to employees in the ordinary course of business) or (D) mortgaged or pledged any of its material assets, tangible or intangible,
or created or suffered to exist any Encumbrance thereon (other than Permitted Encumbrances), it being understood that this Section 4.6(a)(xviii) shall be limited to actions of the Purchased Entities; or 

(xix) entered into an agreement or commitment to do any of the foregoing. 

(b) Since March 31, 2010, there has not been a Business Material Adverse Effect. 

(c) Other than (i) as and to the extent reflected or reserved for on the Most Recent Balance Sheet, (ii) Liabilities incurred
in the ordinary course of business consistent with past practice since May 29, 2010, none of which is a Liability for a breach of contract, breach of warranty, tort, infringement, claim or lawsuit, (iii) Excluded Liabilities, and
(iv) Liabilities disclosed in the Disclosure Schedule or of the Business to perform its obligations 

  
 33 

 
under this Agreement or any Ancillary Agreement, and (v) Liabilities under Contracts (other than Liabilities arising out of any default by the Sellers or the Purchased Entities thereunder),
as of the Closing Date the Business will not have any Liabilities arising out of any event, condition, or state of facts on or prior to the Closing Date that would be Assumed Liabilities and that individually or together with all Liabilities arising
out of the same facts and circumstances exceed $1,500,000. 
 4.7 Taxes. 

(a) Each of the Sellers and the Purchased Entities has (i) duly and timely filed (or there have been filed on its behalf) all Tax
Returns required to be filed by it (taking into account all applicable extensions) with the appropriate Taxing Authority with respect to the Purchased Entities, the Purchased Assets, and the Business, and (ii) paid all Taxes shown as due on
such Tax Returns when payable. To the Knowledge of the Sellers, all such Tax Returns are true and correct in all material respects, and were prepared in substantial compliance with all applicable Laws and regulations. To the Knowledge of the
Sellers, since January 1, 2007, no claim has been made by a Taxing Authority in a jurisdiction where a Seller or a Purchased Entity does not file Tax Returns that any such entity is or may be subject to taxation by that jurisdiction with
respect to the Business, the Purchased Entities, or the Purchased Assets. Neither the Seller (specifically with respect to the Business or the Purchased Assets) nor the Purchased Entities is currently the beneficiary of any extension of time within
which to file any Tax Return. 
 (b) To the Knowledge of the Sellers, there are no material Encumbrances for Taxes upon the
Purchased Assets or any personal property or assets of the Purchased Entities, except for Permitted Encumbrances or Encumbrances for which adequate reserves have been provided in the Financial Statements. 

(c) Except as set forth in Section 4.7(c) of the Disclosure Schedule, to the Knowledge of the Sellers, there is no audit,
examination, deficiency, refund litigation or proposed adjustment with respect to any material amount of Taxes pending or in progress or threatened with respect to any Taxes of the Sellers (specifically with respect to the Business or the Purchased
Assets) or of the Purchased Entities. 
 (d) To the Knowledge of the Sellers, there are no outstanding written requests,
agreements, consents or waivers to extend the statutory period of limitations applicable to the assessment of any income Taxes or material income Tax deficiencies against the Sellers (specifically with respect to the Business or the Purchased
Assets) or the Purchased Entities. 
 (e) To the Knowledge of the Sellers, the Sellers (specifically with respect to the
Business or the Purchased Assets) and the Purchased Entities are in material compliance with all applicable information reporting and Tax withholding requirements under U.S. federal, state and local, and non-US Tax Laws. 

(f) To the Knowledge of the Sellers, no Seller (specifically with respect to the Business or the Purchased Assets) or Purchased Entity
is a party to, is bound by or has any obligation under any Tax sharing, Tax allocation or Tax indemnity agreement or similar contract or arrangement. 

  
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 (g) To the Knowledge
of the Sellers, no Seller (specifically with respect to the Business or the Purchased Assets) or Purchased Entity has engaged in a transaction that the Internal Revenue Service has identified by regulation or other form of published guidance as a
listed transaction, as set forth in Treas. Reg. § 1.6011-4(b)(2). 
 (h) Except as set forth in Section 4.7(h)
of the Disclosure Schedule, to the Knowledge of the Sellers, since January 1, 2007, there are no Liabilities for Taxes of any Person (other than for the Purchased Entities) under Treasury Regulation Section 1.1502-6 (or any similar
provision of state, local, or foreign law) or as a transferee or successor, by contract, or otherwise with respect to the Purchased Entities, the Purchased Assets, or the Business. 

(i) No Purchased Entity will be required to include any item of income in, or exclude any item of deduction from, taxable income for any
taxable period (or portion thereof) ending after the Closing Date as a result of (i) a change in method of accounting for a taxable period ending on or prior to the Closing Date, (ii) “closing agreements” as described in
Section 7121 of the Code (or any corresponding provision of state, local or foreign Tax law) executed on or prior to the Closing Date, (iii) an installment sale or open transaction disposition made on or prior to the Closing Date,
(iv) a prepaid amount received on or prior to the Closing Date not in the ordinary course of business, or (v) intercompany transaction or excess loss account described in Treasury Regulations under Code Section 1502 (or any
corresponding or similar provision of state, local, or non-U.S. income Tax law) or (vi) election pursuant to Code Section 108(i) made effective on or prior to the Closing Date. 

(j) To the Knowledge of the Sellers, no Purchased Entity has distributed stock of another Person, or has had its stock distributed by
another Person, in a transaction that was purported or intended to be governed in whole or in part by Section 355 or Section 361 of the Code. 
 (k) Section 4.7(k) of the Disclosure Schedule correctly sets forth each entity classification election that has been made pursuant to Section 301.7701-3 of the U.S. Treasury Regulations
with respect to the Purchased Entities, and with respect to each such election, the effective date thereof and the classification elections pursuant thereto. 
 (l) Each Purchased Entity has complied with all statutory provisions, rules, regulations, orders and directions in respect of any value added or similar tax on consumption, has promptly submitted accurate
returns, maintains full and accurate records, and is not a member of a group or consolidation with any other company for the purposes of VAT. 
 (m) None of the Purchased Entities is currently a “passive foreign investment company” as that term is defined in Code Section 1297(a). 

(n) No withholding is required under Code Section 1445 in respect of the consideration payable under this Agreement. 

  
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 4.8
Intellectual Property. 
 (a) Section 4.8(a) of the Disclosure Schedule sets forth a true and complete list (in
all material respects) of all registrations, patents and applications of the foregoing for Acquired Intellectual Property. Except as set forth in Section 4.8(a) of the Disclosure Schedule or otherwise excluded by
Section 2.3(h), the Sellers do not own (with respect to the Business) any material unregistered trademarks or material Software. 
 (b) The Sellers or the Purchased Entities solely own or have the right to use pursuant to license, sublicense, agreement or permission listed in Section 4.13(a)(x) of the Disclosure Schedule,
free and clear of all Encumbrances (other than Permitted Encumbrances), all of the Intellectual Property listed on Section 4.8(a) of the Disclosure Schedule. Honeywell has the right to grant the rights with respect to the Intellectual
Property set forth in Article 2 of the Intellectual Property License Agreement. 
 (c) All of the Intellectual Property listed
on Section 4.8(a) of the Disclosure Schedule is valid and subsisting. Since January 1, 2008, neither the Sellers nor the Purchased Entities have received any claim threatened in writing that challenges the validity or enforceability
of their ownership or right to use any Intellectual Property listed on Section 4.8(a) of the Disclosure Schedule, and to the Knowledge of the Sellers, no such claim has been made since January 1, 2008. 

(d) The operation of the Business as presently conducted by the Sellers and the Purchased Entities does not infringe or misappropriate,
and the operation of the Business has not at any time since January 1, 2008 infringed or misappropriated, in either case in any material respect, the Intellectual Property of any third Person; it being understood that if any instance of such an
infringement or misappropriation occurred or existed at any time on or after January 1, 2008, then for purposes of determining the extent of any Losses related to a breach of this provision, the calculation of such Losses for purposes of
Article X shall be based on all instances of such infringement or misappropriation without giving effect to such January 1, 2008 time qualifier. Since January 1, 2008, neither the Sellers nor the Purchased Entities have
received any claim threatened in writing alleging such infringement or misappropriation with respect to the Business (including any offers to license any patents from any third Person), and, to the Knowledge of the Sellers, no such claim has been
made since January 1, 2008. 
 (e) To the Knowledge of the Sellers, no third Person is currently infringing or
misappropriating in any material respect the Intellectual Property listed on Section 4.8(a) of the Disclosure Schedule. 
 (f) The Sellers and the Purchased Entities have taken commercially reasonable efforts to protect the confidentiality of the trade secrets of the Business. 

(g) Since January 1, 2008, all employees, consultants, or contractors who have been engaged to create or develop Intellectual
Property for the Business, which Intellectual Property is material to the conduct of the Business as currently conducted, have executed and delivered to the Sellers or the Purchased Entities a valid and enforceable agreement: (i) providing for
the non-disclosure by such current or former employee, consultant, 

  
 36 

 
or contractor of any confidential information of the Sellers (with respect to the Business) or the Purchased Entities; and (ii) providing for the assignment or a license by such current or
former employee, consultant, or contractor to the Sellers or the Purchased Entities of any such Intellectual Property arising out of such employee’s, consultant’s, or contractor’s employment by, engagement by or contract with the
Sellers or the Purchased Entities. 
 (h) For purposes of this Agreement, “Intellectual Property” means all of
the following in any jurisdiction throughout the world: (i) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto reduced to practice prior to the Closing Date, (ii) all
patents, patent applications, and patent disclosures therefor, and all divisionals, reissues, revisions, re-examinations, extensions, continuations and continuations-in-part thereof (“Patents”), in each case filed or claiming prior
to an application filed, prior the Closing Date (iii) all trademarks, trade dress, service marks, trade names, domain names, whether registered or unregistered, and pending applications to register the same, including all renewals thereof and
all goodwill associated therewith, (iv) all copyrights, whether registered or unregistered, and pending applications to register the same, (v) all know-how and trade secrets, and (vi) computer software embodied in any sensor product
or used in the design, test, and manufacture of any sensor product, in each case in both object code and source code form, including programmable logic and human readable or any intermediate hardware logic description language (including HDL and
VHDL) that are used to program or configure a device such as an FPGA, a CPLD, or an ASIC (“Software”). 
 (i)
Immediately subsequent to the Closing, the Acquired Intellectual Property will be owned by or available for use by Purchaser on terms and conditions identical to those under which the Sellers and the Purchased Entities owned or used the Acquired
Intellectual Property immediately prior to the Closing, subject to the non-exclusive license to Honeywell provided for in the Intellectual Property License Agreement. 
 (j) Except for Sleipnir Intellectual Property, the Sellers and the Purchased Entities are in possession of the source code and object code for all Software that is used in, or incorporated into, the
products sold or licensed by the Sellers or any of the Purchased Entities and all materials related thereto, including without limitation, build tools, compilers, scripts, libraries, installation and user documentation, engineering specifications,
flow charts, and know-how reasonably necessary for the use, maintenance, enhancement, development and other exploitation of such Software as currently used in, or currently under development for, the Business. 

4.9 Legal Proceedings. Except as set forth in Section 4.9 of the Disclosure Schedule, there are no material claims,
charges, arbitrations, formal grievances, complaints, actions, suits, investigations or proceedings by or before any Governmental Authority (each, an “Action”) pending by or against or, to the Knowledge of the Sellers, threatened by
or against, any Seller relating to the Business, any of the Purchased Entities, any properties or assets of the Purchased Entities, or the Purchased Assets. None of the Purchased Assets or Purchased Entities are subject to any material Governmental
Order, and to the Knowledge of the Sellers, there are no such Governmental Orders threatened to be imposed. To the Knowledge of the Sellers, there are no formal or informal material governmental inquiries or investigations or internal investigations
or whistle blower complaints pending or threatened relating to, affecting or 

  
 37 

 
involving the Business. This representation and warranty does not apply to environmental matters, which are the subject of Section 4.11, or Intellectual Property matters, which are
the subject of Section 4.8. 
 4.10 Compliance with Laws; Permits. 

(a) Since January 1, 2008, the conduct of the Business and the operation of the Purchased Assets by the Sellers and the Purchased
Entities have been and are in compliance with all applicable Laws except where the failure to be in compliance would not interfere in any material respect with the conduct of the Business as presently conducted by the Sellers and the Purchased
Entities. Since January 1, 2008, no Seller or Purchased Entity has received any notice or other communication in writing from any Governmental Authority or any other Person regarding any alleged failure to comply with any Law, except where the
failure to comply would not interfere in any material respect with the conduct of the Business as presently conducted by the Sellers and the Purchased Entities or result in a material (i) fine, (ii) penalty, or (iii) other Loss to the
Business (which is an Assumed Liability) or to the Purchased Entities. 
 (b) The Sellers and the Purchased Entities have
obtained all Permits that are necessary to the conduct in all material respects of the Business as presently being conducted. All material Permits are in full force and effect and will not be subject to termination or otherwise impaired solely as a
result of the sale of the Equity Interests by the Sellers pursuant to this Agreement. To the Knowledge of the Sellers, no Seller or Purchased Entity is in material violation or material default of such Permits, and no Seller or Purchased Entity has
received any written notification from any Governmental Authority threatening to revoke any material Permit. 
 (c)
Notwithstanding the foregoing, the representations and warranties contained in this Section 4.10 do not apply to Taxes, Intellectual Property, Environmental Laws, and employee matters and Company Plans, all representations and warranties
related thereto being covered in their entirety and exclusively under Sections 4.7, 4.8, 4.11, 4.12 and 4.18, respectively. 
 4.11 Environmental Matters. Except as set forth in Section 4.11 of the Disclosure Schedule: 
 (a) With respect to the Leased Real Property and otherwise with respect to the Business, the Sellers and the Purchased Entities have at all times within the past five years complied, and are in
compliance, with applicable Environmental Laws, in either case, in all material respects; 
 (b) without limiting the
generality of the foregoing, the Sellers and the Purchased Entities have obtained, and have at all times within the past five years complied, and are in compliance, in either case, in all material respects, with, all material Permits that are
required pursuant to Environmental Laws for the occupation of the Leased Real Property and the operation of the Business; 

(c) there are no material Environmental Claims pending or, to the Knowledge of the Sellers, threatened against any Seller or Purchased
Entity; 

  
 38 

  
 (d) there is no
condition on any Leased Real Property, any currently owned property or facility used in connection with the Business (together with the Leased Real Property, the “Property”), formerly owned or operated property or facility, for
which any Seller or Purchased Entity has any obligation to undertake any investigation, cleanup or remedial action pursuant to Environmental Laws. There are no Materials of Environmental Concern present on, in, under or migrating from any Property,
or any formerly owned or operated property or facility (with respect to the Business), and no disposal, arrangement for disposal, generation, Release, discharge, spill, storage, transportation, handling or treatment of, or exposure of any Person to,
Materials of Environmental Concern has occurred on, in or under the Property, or any formerly owned or operated property or facility (with respect to the Business), or elsewhere by or on behalf of any Purchased Entity (or any Seller with respect to
the Business), so as to give rise to any material current or future Liabilities under any Environmental Law; 
 (e) none of the
Sellers (with respect to the Business) or the Purchased Entities is subject to any material Liability, including any obligation for corrective or remedial action, of any other Person relating to Environmental Laws; 

(f) Honeywell has Made Available to Purchaser all environmental audits, reports and other material environmental documents relating to
the past or current properties, facilities or operations of the Purchased Entities, their respective Affiliates or predecessors or the Business (including the Property) that are in its possession or under its reasonable control (the
“Environmental Reports”); and 
 (g) for purposes of this Agreement, (i) “Environmental
Claims” means any claim, cause of action, suit, investigation, proceeding, or notice by any Person or entity (including any Governmental Order) alleging potential Liability arising out of, based on or resulting from (A) the presence,
or Release into the environment, of any Material of Environmental Concern at any location, or (B) circumstances forming the basis of any violation, or alleged violation of, or any Liability or potential Liability under, any Environmental Law,
(ii) “Environmental Laws” means all federal, interstate, state, national, provincial, municipal, local and foreign Laws and all Governmental Orders and all common law, in each case, in effect on or prior to the Closing Date
relating to pollution or protection of human health, safety, or the environment, including Laws relating to emissions, discharges, Releases or threatened Releases of Materials of Environmental Concern, or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of, or exposure of Persons to, Materials of Environmental Concern, and (iii) “Materials of Environmental Concern” means chemicals, pollutants,
contaminants, wastes, toxic substances, hazardous substances and materials, radioactive materials, asbestos, petroleum and petroleum products. 
 4.12 Employee Matters and Benefit Plans. 
 (a) Each employment, deferred
compensation, pension, stock option, stock purchase, stock appreciation right, equity-based compensation, incentive, profit-sharing or retirement plan, arrangement or agreement, each medical, vacation, retiree medical, severance pay plan, and each
other agreement (including any severance, change in control or similar agreement) or fringe or other material benefit or compensation plan, program, agreement or arrangement, (x) in each case that is sponsored or maintained by a Seller in
connection with the 

  
 39 

 
Business or any Purchased Entity, that affects or covers any current or former employee, officer, director, contractor or agent of the applicable Seller in connection with the Business or any
Purchased Entity and under which the applicable Seller or Purchased Entity has any Liability in connection with the Business or (y) with respect to which the applicable Seller contributes with respect to the Business or any Purchased Entity has
any Liability (including, “employee benefit plans” within the meaning of Sections 3(1), 3(2) and 3(3) of ERISA) (each a “Company Plan” and collectively, the “Company Plans”) has been listed on
Section 4.12(a) of the Disclosure Schedule. True and complete copies of the following have been Made Available to Purchaser by Honeywell: (i) the most recent copy of the Company Plans, including any trust instruments and all
amendments thereto, (ii) the most recent annual reports filed on Form 5500, including all required schedules for each Company Plan required to file an annual report, (iii) the most recent determination letter issued by the Internal Revenue
Service for each Company Plan that is intended to be “qualified” under Section 401(a) of the Code, (iv) the most recent summary plan description and any summary of material modifications, as required, for each Company Plan,
(v) the most recent actuarial reports, if any, relating to each Company Plan, and (vi) the most recent actuarial valuation, study or estimate of any Company Plan that is a retiree medical and life insurance benefits plan or supplemental
retirement benefits plan. 
 (b) Each Company Plan that is intended to qualify under Section 401(a) of the Code has
received a determination letter from the Internal Revenue Service stating that it so qualifies and that its trust is exempt from taxation under Section 501(a) of the Code and nothing has occurred that would adversely affect such qualification
or exempt status. Except as set forth in Section 4.12(b) of the Disclosure Schedule, and except as would not give rise to a Liability of the Business that would be an Assumed Liability or a Liability of a Purchased Entity, with respect
to each Company Plan: (i) such Company Plan has been maintained, funded and administered in all material respects in accordance with its terms and applicable Law, including (if applicable) ERISA and the Code; (ii) except for routine claims
for benefits, no disputes are pending or, to the Knowledge of the Sellers, threatened; (iii) neither the Sellers or the Purchased Entities nor any trustee nor any fiduciary of a Company Plan that is subject to ERISA or the Code has engaged in
any prohibited transaction within the meaning of Sections 406 or 407 of ERISA or Section 4975 of the Code or any breach of fiduciary duty with respect to any such Company Plan; (iv) all contributions, distributions and premium
payments required under ERISA and the Code to be made with respect to any Company Plan as of the Closing Date have been made or shall have been made or are accrued on the Final Net Working Capital in full; (v) no Company Plan that is subject to
ERISA or the Code is a “multiemployer plan” within the meaning of Section 3(37) of ERISA or a “multiple employer plan” within the meaning of Section 413(c) of the Code; and (vi) there are no Actions pending before
the Internal Revenue Service, Department of Labor or other Governmental Authority with respect to any Company Plan, nor to the Knowledge of the Sellers is any such Action threatened. Each contract, arrangement, or plan with respect to the Purchased
Entities, the Purchased Assets, and the Business that is a “nonqualified deferred compensation plan” (as defined for purposes of Code Section 409A(d)(1)) is in documentary and operational compliance with Code Section 409A and the
applicable guidance issued thereunder in all material respects. None of the Purchased Entities has any indemnity obligation for any Taxes imposed under Section 4999 or 409A of the Code. 

  
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 (c) Except as set
forth in Section 4.12(c) of the Disclosure Schedule, no Company Plan is a “defined benefit plan” subject to Title IV of ERISA or Section 412 of the Code. The Sellers have no Liability that could otherwise become a
Liability of Purchaser or any of its Affiliates, and the Purchased Entities have no Liability: (i) under or with respect to (A) any “employee pension benefit plan” (as defined in Section 3(2) of ERISA) that is subject to
Title IV of ERISA or Code Section 412, (B) any “multiemployer plan” as defined in Section 3(37) or 4001(a)(3) of ERISA, (C) any “multiple employer welfare arrangement” as defined in Section 3(40) of
ERISA, or (D) any “multiple employer plan” within the meaning of Section 210 of ERISA or Section 413(c) of the Code; or (ii) on account of being at any time considered a single employer under Section 414 of the
Code with any Person other than the Sellers and the Purchased Entities. 
 (d) Except as set forth in
Section 4.12(d) of the Disclosure Schedule, none of the Sellers (solely with respect to the Business) or the Purchased Entities have any Liability for retiree or post-termination health or life or other welfare type benefits under any
Company Plan, other than coverage as may be required under Section 4980B of the Code or Part 6 of Subtitle B of Title I of ERISA, or under the continuation of coverage provisions of the Laws of any state or locality. 

(e) Except as set forth in Section 4.12(e) of the Disclosure Schedule, the consummation of the transactions contemplated by
this Agreement by the Sellers will not, either alone or in combination with another event, (i) entitle any current or former employee, officer, director, contractor or agent of the Business or the Purchased Entities to severance pay,
unemployment compensation or any other payment, in each case, under any Company Plan, (ii) accelerate the time of payment or vesting, or trigger any payment or funding, through a grantor trust or otherwise, or increase the amount of,
compensation or benefits due any such current or former employee, officer, director, contractor or agent or trigger any other obligation pursuant to, any of the Company Plans, (iii) result in any breach or violation of, or a default under, any
of the Company Plans, or (iv) in respect of any Company Plan that is subject to the Code, result in any payment that would be a “parachute payment” to a “disqualified individual” as those terms are defined in
Section 280G of the Code, without regard to whether such payment is reasonable compensation for personal services performed or to be performed in the future. 
 (f) The Sellers and the Purchased Entities have, for purposes of each Company Plan, correctly classified those individuals performing services for the Business as listed in Section 6.10 of the
Disclosure Schedule as common law employees, leased employees, independent contractors or agents, as and where applicable. 

(g) Except as required by applicable Law or as set forth in Section 4.12(g) of the Disclosure Schedule, no benefit or
compensation plan, program, agreement or arrangement is maintained outside the jurisdiction of the United States, or covers any individual residing or working outside the United States (each a “Foreign Plan”). Each Foreign Plan
complies with applicable Laws in all material respects. All contributions, distributions and premium payments required to be made with respect to each Foreign Plan have been timely made or properly accrued. No Liability in connection with the
termination of, or withdrawal from, any Foreign Plan has been incurred or will be incurred as a result of the transactions contemplated by this Agreement. No Foreign Plan has any unfunded Liabilities that

  
 41 

 
have not been properly accrued. No benefits payable under any Foreign Plan will be increased as a result of the consummation of the transactions contemplated by this Agreement, either alone or in
combination with another event. 
 4.13 Material Contracts. 

(a) Except as set forth in Section 4.13(a) of the Disclosure Schedule or specifically approved by Purchaser under
Section 6.1, no Seller (in connection with the Business) and no Purchased Entity is a party to or bound by any: (i) Contract that would be required to be filed by Honeywell as a material contract pursuant to Item 601(b)(10) of
Regulation S-K of the Securities and Exchange Commission (including Contracts relating to compensation of executive officers); (ii) Contract containing covenants not to compete in any line of business, industry or geographical area
restricting the Business; (iii) Contract which creates a partnership or joint venture or similar arrangement between any Seller or Purchased Entity and another Person or any options, rights (preemptive or otherwise), warrants, calls,
convertible securities or commitments or any other agreements or arrangements with respect to any equity securities of the Purchased Entities; (iv) indenture, letters of credit, credit agreement, loan agreement, security agreement, guarantee,
note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness or any Encumbrance (other than a Permitted Encumbrance) on any assets of the Purchased Entities in an amount exceeding $100,000; (v) Contract for the sale
of any material Purchased Assets or material assets of the Purchased Entities, including any real property, after the date hereof (other than inventory in the ordinary course of business consistent with past practice); (vi) collective
bargaining agreement, employee association agreement or other agreement with any labor union, employee representative group, works council or similar collection of employees; (vii) consulting agreement, management agreement, advisory agreement,
employment agreement, severance agreement, retention agreement or change-of-control agreement, in each case providing for payments in excess of $100,000 in any fiscal year; (viii) Contract between any Seller or Purchased Entity, on the one
hand, and any of Honeywell or its Affiliates or Subsidiaries or any of its or their officers or directors or entities in which they have a controlling interest (other than Contracts solely between the Purchased Entities or between any Purchased
Entity and its Subsidiaries), on the other hand (other than ordinary course trade payables and trade receivables negotiated on an arms’ length basis); (ix) Contract under which any Seller or Purchased Entity has made payments in excess of
$250,000 in the last fiscal year or anticipates making payments in excess of $250,000 in the current fiscal year or of more than $500,000 over the life of the Contract (other than purchase orders or invoices entered into in the ordinary course of
business consistent with past practice); (x) Contract containing any material license of, or any option to assign or purchase, any material Intellectual Property (excluding, however, licenses of commercially available Software);
(xi) Contract under which any Seller or Purchased Entity received payments in excess of $250,000 in the last fiscal year or anticipates receiving payments in excess of $250,000 in the current fiscal year or of more than $500,000 over the life
of the Contract (other than sales orders or invoices entered into in the ordinary course of business consistent with past practice); (xii) Contract involving any Key Customers or Key Suppliers, other than purchase orders and sales orders in the
ordinary course of business; (xiii) lease, sublease, or license of any Leased Real Property, material personal property or other material tangible assets; or (xiv) Contract involving the acquisition of the business or stock (or, to the
extent constituting a going-concern business, assets or other properties) of any other Person since December 31, 2007. Each such contract described in clauses (i)-(xiv) is referred to herein as a “Material Contract.”

  
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 (b) Except as set
forth in Section 4.13(b) of the Disclosure Schedule (i) no Seller or Purchased Entity is (and, to the Knowledge of the Sellers, no other party is) in material breach of or default under any Material Contract, (ii) no Seller or
Purchased Entity has received (A) any written or, to the Knowledge of the Sellers, oral notice or claim of material default under any Material Contract, or (B) any written or, to the Knowledge of the Sellers, oral notice of an intention to
terminate, not renew or challenge the validity or enforceability of any Material Contract (other than Contracts with Key Customers or Key Suppliers, as to which this notice shall be governed by Section 4.14), (iii) to the Knowledge
of the Sellers, no event has occurred that, with or without notice or lapse of time or both, would result in a material breach or default under any Material Contract, and (iv) each of the Material Contracts is in full force and effect, is the
valid, binding and enforceable obligation of the Sellers or Purchased Entities, and will not be subject to termination solely as a result of the sale of the Business pursuant to this Agreement, and to the Knowledge of the Sellers, of the other
parties thereto. Honeywell has Made Available to Purchaser true and complete copies of each Material Contract, including all material amendments, waivers, exhibits, schedules or attachments thereto. 

4.14 Material Customers and Suppliers. Section 4.14 of the Disclosure Schedule sets forth a true and complete list of
(a) the top 10 customers of the Business (by revenue) during each of the last two (2) fiscal years and for the current fiscal year to June 30, 2010 (the “Key Customers”), and (b) the top 10 suppliers of the
Business (by expense) during each of the last two (2) fiscal years and for the current fiscal year to June 30, 2010 (the “Key Suppliers”). Since January 1, 2009, no Key Customer or Key Supplier has canceled or
otherwise terminated its relationship with the Business, and, to the Knowledge of the Sellers, no Seller or Purchased Entity has received any written notice from any Key Customer or Key Supplier to the effect that any such Key Customer or Key
Supplier intends to cancel or otherwise terminate its relationship with the Business. Since January 1, 2009, to the Knowledge of the Sellers, no Seller or Purchased Entity has received a written notice from a Key Customer or Key Supplier to the
effect that any such Key Customer or Key Supplier intends to materially diminish or materially adversely modify its relationship with the Business. 
 4.15 Real Properties. A true and complete list of all of the Leased Real Property (and a list of the leases associated thereto) is set forth in Section 4.15 of the Disclosure Schedule.
To the Knowledge of the Sellers, the Sellers or the Purchased Entities have valid leasehold interests in the Leased Real Property, free and clear of any Liens (as hereafter described), tenancies, sub-tenancies, licenses, defects, exceptions, rights
of way, restrictions, covenants, claims, similar matters, or other encumbrances of any nature whatsoever in respect of such property or asset (collectively, “Encumbrances”), except for Permitted Encumbrances and those Encumbrances
set forth on Section 4.15 of the Disclosure Schedule. Except as set forth in Section 4.15 of the Disclosure Schedule, with respect to each of the foregoing leases, no Seller or Purchased Entity has subleased, licensed, or
otherwise granted any Person the right to use or occupy such Leased Real Property or any portion thereof. 
 4.16
Personal Properties. Section 4.16 of the Disclosure Schedule sets forth a list, complete and accurate in all material respects, which describes in reasonable detail, all 

  
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machinery, equipment and other tangible assets included in the Purchased Assets (except for stamping dies, failure analysis equipment, production maintenance equipment and tool room equipment,
and certain equipment that is located at the facilities of certain suppliers of the Business) and the location of such machinery, equipment and other tangible assets (for the avoidance of doubt, such Section of the Disclosure Schedule shall not
include any tooling not owned by Sellers or any Purchased Entity). Purchaser acknowledges and agrees that (a) within two (2) business days after the date hereof, Sellers may update Section 4.16 of the Disclosure Schedule to
include a list, complete and accurate in all material respects, which describes in reasonable detail, certain equipment that is located at the facilities of certain suppliers, and (b) prior to the Closing, Sellers shall update
Section 4.16 of the Disclosure Schedule to include a list, complete and accurate in all material respects, which describes in reasonable detail, all stamping dies, failure analysis equipment, production maintenance equipment and tool
room equipment included in the Purchased Assets, including the location of such items. 
 4.17 Sufficiency of Assets. The
Sellers and Purchased Entities have, and (except for assets sold or otherwise disposed of in the ordinary course of business after the date hereof in compliance with Section 6.1 hereof) on the Closing Date will have, all of the rights,
title and interest to all tangible Purchased Assets and all tangible assets of the Purchased Entities, free and clear of any mortgage, lien, pledge, security interest, option, right of first refusal, right of first offer, or similar charges
(“Liens”), other than Permitted Encumbrances. Subject to the last sentence of this Section 4.17, except as set forth in Section 4.17 of the Disclosure Schedule (but including the goods and services provided
by the Sellers and their Affiliates under the Ancillary Agreements and Section 6.3 of this Agreement), the Purchased Assets and the assets of the Purchased Entities constitute all of the material assets (real, personal, tangible,
intangible or otherwise) used or held for use in the Business as it is currently operated and are sufficient in all material respects to conduct and operate the Business from and after the Closing Date in the same manner as currently conducted.
Notwithstanding the foregoing, the immediately preceding sentence does not apply to Intellectual Property. With respect to Intellectual Property, the Sellers represent and warrant only that the Acquired Intellectual Property together with the
Intellectual Property licensed to Purchaser under the Intellectual Property License Agreement constitutes all the Intellectual Property necessary to make, use and sell the Existing Products; provided that the Sellers make no representation or
warranty with respect to any Intellectual Property to the extent associated with Excluded Products. Except as set forth in Section 4.17 of the Disclosure Schedule, none of the Sellers’ Affiliates own, utilize or have an interest in
any material assets of, perform any material services for, or on behalf of, or provide any material group purchasing benefits to, or with respect to, the Business. Notwithstanding the foregoing, the representations and warranties contained in this
Section 4.17 do not apply to infringement or misappropriation of any Intellectual Property arising in connection with the conduct or operation of the Business, all representations and warranties related thereto being covered in their
entirety and exclusively under Section 4.8. 
 4.18 Labor. 

(a) Except as set forth in Section 4.18(a) of the Disclosure Schedule: (i) the Sellers and Purchased Entities are not
parties to any collective bargaining agreement or any other labor-related agreements with any labor union or labor organization applicable to Employees, nor is any such agreement currently being negotiated with any Seller or Purchased

  
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Entity; (ii) no material work stoppage or other material labor action or dispute involving any Seller or Purchased Entity is pending or, to the Knowledge of the Sellers, threatened by any
such labor dispute; and (iii) the Sellers and Purchased Entities are operating the Business in compliance with all applicable Labor Laws, except where the failure to comply would not interfere in any material respect with the conduct of the
Business as presently conducted by the Sellers and the Purchased Entities or result in a material (A) fine, (B) penalty or (C) other Loss to a Purchased Entity or other Loss to the Business that would be an Assumed Liability.
“Labor Laws” means any applicable Law relating to the employment of labor, including (without limitation) provisions thereof relating to employment standards, human rights, health and safety, labor relations, wage and hour statutes,
immigration, layoffs, workplace safety and insurance and/or pay equity. 
 (b) With respect to this transaction, any notice
that the Sellers are required to give under any Labor Law or collective bargaining agreement (including any works council) has been (or will be) given, and all bargaining obligations with any employee(s) and/or employee representative have been, or
prior to the Closing will be, satisfied. Except as set forth on Section 4.18(b) of the Disclosure Schedule, within the past three years, neither the Sellers nor the Purchased Entities have implemented any plant closing or layoff of
employees of the Business that could implicate the WARN Act, and no such action will be implemented without advance notification to Purchaser. 
 4.19 Insurance. Honeywell has Made Available to Purchaser complete copies of all policies of insurance maintained solely by the Purchased Entities with respect to their properties and assets or by
the Sellers with respect to the Business, or true and complete summaries of the material terms of such insurance policies. All insurance policies relating to the Business are in full force and effect, all premiums due and payable with respect to
such policies have been paid and the applicable insured parties have complied in all material respects with the provisions of such policies. Neither the Sellers nor the Purchased Entities have received any written notice (a) regarding the
cancellation or invalidation of any of the existing insurance policies relating to the Business or regarding any actual or possible adjustment in the amount of the premiums payable with respect to any of said policies, or (b) any written notice
regarding any refusal of coverage under, or any rejection of any claim under, any such policies. 
 4.20 Products
Liability; Warranty. 
 (a) (i) Since January 1, 2009, the products made, assembled, or sold by the Business have
conformed in all material respects with all applicable contractual commitments, express and implied warranties and Laws, in each case that would give rise to any Ordinary Course Warranty Obligations; and (ii) the Financial Statements reflect
reserves for Ordinary Course Warranty Obligations that are consistent with the Specified Accounting Policies. 
 (b) Other than
in respect of Ordinary Course Warranty Obligations, which are addressed in paragraph (a) above, at all times prior to the Closing: (i) the products made, assembled, or sold by the Business have conformed in all material respects with all
applicable contractual commitments, express and implied warranties and Laws, and neither the Sellers nor any of the Purchased Entities has any Liabilities arising out of or related to such 

  
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products, other than Excluded Liabilities; and (ii) neither the Sellers nor any of the Purchased Entities have received notice of any claims for, and to the Knowledge of Sellers any threats
of, any material Products Liability Claim. 
 4.21 Finder’s Fee. Neither the Sellers nor the Purchased Entities have
incurred any Liability to any party for any brokerage or finder’s fee or agent’s commission, or the like, in connection with the transactions contemplated by this Agreement. 

4.22 Bank Accounts; Directors and Officers. Section 4.22 of the Disclosure Schedule includes a list of each bank in
which any of the Purchased Entities has an account, safe deposit box or lock box as of the date hereof, the number of each such account or box and each authorized signatory. Section 4.22 of the Disclosure Schedule also sets forth a list
of the officers and directors of the Purchased Entities. 
 4.23 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES.
EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE IV, NEITHER THE SELLERS NOR ANY OF THE PURCHASED ENTITIES MAKE ANY REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO THE SELLERS OR
THE PURCHASED ENTITIES, THEIR RESPECTIVE BUSINESSES OR FINANCIAL CONDITION OR ANY OF THEIR RESPECTIVE ASSETS, LIABILITIES OR OPERATIONS, OR THE PAST, CURRENT OR FUTURE PROFITABILITY OR PERFORMANCE OF THE BUSINESS OR THE PURCHASED ENTITIES OR ANY
OTHER MATTER, OR WITH RESPECT TO ANY INFORMATION PROVIDED TO PURCHASER, INCLUDING WITH RESPECT TO ANY REPRESENTATIONS OR WARRANTIES OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE OR USE, TITLE OR INFRINGEMENT, IN CONNECTION WITH THE
TRANSACTIONS CONTEMPLATED HEREBY, AND THE SELLERS SPECIFICALLY DISCLAIM ANY SUCH OTHER REPRESENTATIONS OR WARRANTIES. 
 ARTICLE
V 
 REPRESENTATIONS AND WARRANTIES OF PURCHASER 
 Purchaser hereby represents and warrants to the Sellers that, as of the date hereof and as of the Closing Date: 
 5.1 Corporate Status. Purchaser is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware and Purchaser (a) has all requisite power and
authority to carry on its business as it is now being conducted, and (b) is duly qualified or otherwise authorized to do business and is in good standing in each of the jurisdictions in which the ownership, operation or leasing of its
properties and assets and the conduct of its business requires it to be so qualified or otherwise authorized, except where the failure to be so qualified or otherwise authorized would not have a Purchaser Material Adverse Effect. 

5.2 Authority. Purchaser has all requisite corporate power and authority to execute, deliver and perform its obligations under
this Agreement and under the Ancillary Agreements, and to consummate the transactions contemplated hereby and thereby. The 

  
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execution, delivery and performance by Purchaser of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby have been duly and validly
authorized by all necessary corporate action on the part of Purchaser, and no other corporate proceeding on the part of Purchaser is necessary to authorize the execution, delivery and performance by Purchaser of this Agreement and the Ancillary
Agreements or to consummate the transactions contemplated hereby and thereby. This Agreement has been, and upon execution, the Ancillary Agreements will be, duly executed and delivered by Purchaser, and, assuming due authorization and delivery by
the Sellers, this Agreement constitutes, and upon execution the Ancillary Agreements will constitute, a valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar Laws now or hereinafter in effect relating to or affecting creditors’ rights generally or by general equitable principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law). 
 5.3 No Conflict; Required Filings. 

(a) The execution and delivery of this Agreement and the Ancillary Agreements do not, and the consummation of the transactions
contemplated hereby will not (with or without notice or lapse of time, or both), conflict with, or result in any violation of or default under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a
benefit under, or result in the creation of any material Encumbrance upon any of the properties or assets of Purchaser under, any provision of (i) the certificate of incorporation or by-laws of Purchaser, (ii) any material Contract to
which Purchaser is party or by which it is bound or (iii) any Governmental Order or, subject to the matters described in clauses (i) and (ii) of Section 5.3(b), Law applicable to Purchaser or its property or assets, other
than, in the case of clauses (ii) and (iii) above, any such conflicts, violations, defaults, rights or Encumbrances that would not have a Purchaser Material Adverse Effect. 

(b) Except as set forth in Section 5.3(b) of the Disclosure Schedule, no material consent authorization, approval, or
exemption of, or registration, declaration, notice or filing with, any Governmental Authority is required to be obtained or made by Purchaser in connection with the execution, delivery and performance of this Agreement or the Ancillary Agreements or
the consummation of the transactions contemplated hereby or thereby, other than (i) compliance with and filings under the HSR Act, and (ii) to the extent applicable, compliance with and filings under similar Laws of foreign jurisdictions
other than the United States. 
 5.4 Legal Proceedings. There are no Actions pending or, to the Knowledge of Purchaser,
threatened against Purchaser or any of its Affiliates or any of their respective properties before any Governmental Authority, except as would not have a Purchaser Material Adverse Effect. 

5.5 Sufficient Funds. 
 (a) As of the date of this Agreement, Purchaser, together with Sensata Technologies B.V., has cash in an amount sufficient to pay the Purchase Price in full and any related fees or expenses. At the
Closing Date, Purchaser will have cash in an amount sufficient to pay the Purchase Price in full and any related fees or expenses. 

  
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 (b) Immediately
following the Closing after giving effect to the transactions contemplated hereby, Purchaser will be Solvent. As used herein, “Solvent” means with respect to any Person on a particular date, that on such date (i) the fair value
of the property of such Person is greater than the total amount of Liabilities, including contingent Liabilities, of such Person, (ii) the present fair salable value of the assets of such Person is not less than the amount that will be required
to pay the probable Liability of such Person on its debts as they become absolute and matured, (iii) such Person does not intend to, and does not believe that it will, incur debts or Liabilities beyond such Person’s ability to pay such
debts and Liabilities as they mature and (iv) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small
capital. The amount of contingent Liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured
Liability. 
 5.6 Investment Intent. Purchaser has such Knowledge and experience in financial and business matters that
it is capable of evaluating the risks and merits associated with the acquisition of the Equity Interests and is acquiring the Equity Interests for its own account for investment, with no present intention of making a public distribution thereof.
Purchaser will not sell or otherwise dispose of the Equity Interests in violation of the Securities Act of 1933, as amended, or any state securities laws. 
 5.7 No Reliance. 
 (a) Purchaser is an informed and sophisticated
purchaser and has engaged expert advisors who are experienced in the evaluation and purchase of businesses such as the Business (including the Purchased Entities) as contemplated hereunder, and has had such access to the personnel and properties of
the Purchased Entities, the Sellers and their Affiliates as it deems necessary and appropriate to make such evaluation and purchase. 
 (b) Purchaser has agreed to purchase the Purchased Assets and assume the Assumed Liabilities based on its own inspection, examination and determination with respect to all matters and without reliance
upon any representations, warranties, communications or disclosures of any nature other than those expressly set forth in this Agreement. 
 (c) Purchaser does not have any special relationship with any Seller, or any employee, officer, director, agent, advisor, representative or Affiliate of any Seller, that would justify any expectation
beyond that of any ordinary buyer and any ordinary seller in an arms’ length transaction and Purchaser is not owed any duty or entitled to any remedies not expressly set forth in this Agreement. 

(d) Without limiting the generality of the foregoing, Purchaser, in entering into this Agreement, acknowledges and agrees that
(i) no officer, agent, advisor, employee or representative of the Sellers or any of their respective Affiliates has any authority, express or implied, to make any representations, warranties or agreements not specifically set

  
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forth in this Agreement and subject to the limited remedies provided herein, (ii) Purchaser is relying solely on the representations and warranties set forth in this Agreement and, except as
expressly set forth in Article IV of this Agreement (as qualified by the disclosure in the Disclosure Schedules), and (iii) neither the Sellers nor any other Person makes any representation or warranty, express or implied, with
respect to, and Purchaser expressly disclaims any reliance on, (A) any information included in the Information Package dated November 12, 2009 related to the Business (including the Purchased Entities) or other matters; (B) any
information, written or oral and in any form provided, Made Available to it or any of its agents, advisors, employees or representatives; (C) any projections, estimates or budgets delivered to or Made Available to it or any of its agents,
advisors, employees or representatives, or which is Made Available to it or any of its agents, advisors, employees or representatives after the date hereof, or future revenues, expenses or expenditures, future results of operations (or any component
thereof), future cash flows or future financial condition (or any component thereof) of the Sellers or the Purchased Entities or the future business and operations of the Sellers or the Purchased Entities; (D) the condition of any of the
Property being transferred hereunder, which Purchaser is purchasing on an “AS IS, WITH ALL FAULTS” basis without any warranties or guarantees of any kind from the Sellers or the Purchased Entities; (E) the operation of the Business by
Purchaser after Closing in any manner; (F) the probable success or profitability of the ownership, use or operation of the Business (including the Purchased Entities) by Purchaser after the Closing; or (G) the accuracy or completeness of
any other information, written or oral and in any form provided, or documents previously Made Available or which is made available after the date hereof to it or any of its agents, advisors, employees or representatives with respect to the Sellers,
the Purchased Entities or their respective businesses and operations or other related matters, whether in expectation of the transactions contemplated by this Agreement or otherwise. 

(e) Notwithstanding anything to the contrary herein, nothing in the foregoing shall limit the right of the Purchaser Indemnified Parties
to rely on the representations and warranties expressly set forth in this Agreement and to their rights to indemnification under Articles VIII and X, or shall limit a claim by a Purchaser Indemnified Party alleging that Sellers
defrauded such Person by intentionally omitting or misstating any disclosure in the Disclosure Schedule where such omission or misstatement constitutes a breach in any material respect of any such express representation or warranty, which rights and
claims shall, in any case, be subject to the provisions of Sections 4.23, 5.7(a)-(d), 11.7 and 11.8. 
 5.8 Finder’s Fee. Purchaser has not incurred any Liability to any party for any brokerage or finder’s fee or agent’s commission, or the like, in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of Purchaser for which the Sellers or their respective stockholders, option holders, directors, officers or Affiliates will be liable based upon arrangements made by or on
behalf of Purchaser or any of its Affiliates. 
 5.9 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES. EXCEPT AS
EXPRESSLY SET FORTH IN THIS ARTICLE V, PURCHASER MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO PURCHASER, ITS BUSINESSES OR FINANCIAL CONDITION OR ANY OF ITS ASSETS,
LIABILITIES OR OPERATIONS OR ANY OTHER MATTER, AND ANY SUCH OTHER REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED. 

  
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 ARTICLE VI 

COVENANTS 

6.1 Interim Operations of the Business. From and after the date hereof, the Sellers shall conduct the Business and shall cause the
Purchased Entities to conduct their respective businesses only in the ordinary course consistent with past practice and use their commercially reasonable efforts to preserve intact the Purchased Assets and the assets of the Purchased Entities (in
each case, tangible and intangible), ordinary wear and tear excepted, including by applying any available insurance proceeds received directly and specifically with respect to such assets to replace or repair any such assets, business organizations
and relationships with employees and third parties having material business dealings with the Business or the Purchased Entities. Without limiting the generality of the foregoing, except (w) as otherwise expressly required by this Agreement or
the Ancillary Agreements (including transfers from the Purchased Entities to Honeywell or its Affiliates as contemplated by Section 2.2), (x) for actions approved in advance by Purchaser in writing (which approval shall not be
unreasonably withheld, conditioned or delayed), (y) to the extent required to comply with applicable Law (in which case Purchaser shall nonetheless be notified in writing) and (z) as set forth on Section 6.1 of the Disclosure
Schedule, from and after the date hereof, the Sellers shall not take any of the following actions with respect to the Business, and shall cause the Purchased Entities not to take any of the following actions: 

(a) adopt any change in the respective certificates of incorporation or bylaws or other similar organization or governing documents of
the Purchased Entities; 
 (b) adopt a plan or agreement of complete or partial liquidation, dissolution, restructuring,
merger, consolidation, recapitalization or other reorganization of any of the Purchased Entities; 
 (c) (i) issue, sell,
transfer, pledge, dispose of or encumber the Equity Interests or any shares of capital stock of the Purchased Entities, or (ii) grant any option, warrant or other right to purchase or obtain, or otherwise dispose of or encumber, any of the
equity securities of the Purchased Entities; 
 (d) declare, set aside or pay any dividend or other distribution other than in
each case for cash; 
 (e) enter into or consummate any transaction involving the acquisition of the business or stock (or, to
the extent constituting a going concern business, assets or other properties) of any other Person (other than purchases of inventory and capital equipment in the ordinary course of business consistent with past practice, subject to clause (n)
below); 
 (f) sell, assign, lease, license, transfer or otherwise dispose of any material amount of the Purchased Assets or
assets or property of the Purchased Entities, except as expressly required pursuant to existing Contracts and sales of inventory in the ordinary course of business consistent with past practice; 

  
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 (g) mortgage or
pledge any of the material assets of the Purchased Entities, tangible or intangible, or create or suffer to exist any material Encumbrance thereupon (other than Permitted Encumbrances); 

(h) other than in the ordinary course of business, incur or guarantee any Indebtedness, or issue any note, bond or debt security;

 (i) enter into any Material Contract or materially amend or modify or terminate any Material Contract; 

(j) enter into any new benefit or compensation plan, program, agreement or arrangement or terminate any Company Plan or increase the
benefits under any Company Plan or amend or modify any Company Plan where such amendment or modification has a material cost impact on the Business taken as a whole, or grant or make a legally binding promise for, any material increase in
compensation or benefits to any director, officer, or employee, or any material bonus, severance, incentive, or profit sharing payments, or (subject to Section 6.10(f)(i)) cause any employee of a Seller or any of its Affiliates (other
than the Purchased Entities) to be employed by a Purchased Entity, except as required under existing agreements or arrangements that have been Made Available to Purchaser prior to the date of this Agreement or by applicable Law; provided,
however, that nothing in this Agreement shall prevent the Sellers or the Purchased Entities from entering into statutory employment agreements with new employees outside the United States, to the extent required by applicable Laws, in the
ordinary course of business consistent with past practice; 
 (k) change the material terms and conditions of their business
relationships with Key Customers or Key Suppliers other than in the ordinary course of business; 
 (l) terminate or close any
facility, other than periodic shutdowns in the ordinary course of business, or implement any layoff of employees that would implicate the WARN Act; 
 (m) incur or commit to any capital expenditures materially in excess of the capital expenditure budget Made Available to Purchaser prior to the date of this Agreement, or enter into any new line of
business; 
 (n) take any action or omit to take any action that would require disclosure pursuant to Section 4.6
if each representation and warranty contained therein were remade as of the time of such action or omission; or 
 (o)
authorize, or agree or commit to do, whether in writing or otherwise, any of the foregoing. 
 Notwithstanding anything herein
to the contrary, nothing herein shall or shall be deemed to preclude or otherwise limit the Sellers (including the Purchased Entities) from declaring, setting aside or paying any dividends or other distribution in cash with respect to any of the
shares of capital stock of the Purchased Entities, or redeeming or repurchasing for cash any of the shares of capital stock of the Purchased Entities. 

  
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 6.2 Filings
with Governmental Authorities. Subject to Section 6.8: 
 (a) Honeywell and Purchaser shall as promptly as
practicable, but in no event later than ten (10) business days after the date hereof, cause to be filed with the FTC and the DOJ the notification and report form pursuant to the HSR Act required for the transactions contemplated hereby and
cause to be filed with the relevant Governmental Authorities (“Other Competition Authorities”) the other filings contemplated by Section 4.3(b)(ii) and Section 5.3(b)(ii) (“Other Competition
Filings”), and shall use commercially reasonable efforts to obtain early termination of the applicable waiting period or expedited review, as applicable, of such notifications and related materials. The Sellers and Purchaser shall, as
promptly as practicable, comply with any request for additional information and documents pursuant to the HSR Act and applicable Laws governing the Other Competition Filings (“Other Competition Law”). The Sellers, on the one hand,
and Purchaser, on the other hand, shall inform the other promptly of any communication made by or on behalf of such party to (including permitting the other party to review such communication in advance), or received from, the FTC, the DOJ or the
Other Competition Authorities and shall furnish to the other such information and assistance as the other may reasonably request in connection with its preparation of any filing, submission or other act that is necessary or advisable under the HSR
Act or the Other Competition Laws. The Sellers, on the one hand, and Purchaser, on the other hand, shall keep each other timely appraised of the status of any communications with, and any inquiries or requests for additional information from, the
FTC or the DOJ or the Other Competition Authorities, and shall comply promptly with any such inquiry or request. No party shall agree to participate in any meeting with any Governmental Authority in respect of any such filings, investigation or
other inquiries 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 thereat. 

(b) Purchaser shall take as promptly as reasonably practicable any and all steps necessary to avoid or eliminate each and every
impediment under any antitrust or competition Law that may be asserted by any U.S. federal, state, provincial, local or foreign antitrust or competition authority so as to enable the parties to expeditiously close the transactions contemplated by
this Agreement and the Ancillary Agreements; provided that Purchaser need not divest or hold separate assets, terminate or modify existing business relationships, or take any other such steps to the extent that such actions would have a
material adverse effect on the Business or an equivalent (rather than proportionate) level of impact on the business of Purchaser. In addition, without limiting the generality of the foregoing regarding Governmental Authorities but subject to the
immediately preceding proviso, Purchaser agrees to take promptly any and all steps necessary to attempt to vacate or lift any order or other restraint relating to antitrust matters that would have the effect of making the transaction contemplated by
this Agreement illegal or otherwise prohibiting its consummation. 
 (c) The parties hereto shall cooperate with one another in
determining whether any action by or in respect of, or filing with, any Governmental Authority (excluding the actions and filings described in clause (a) above), is required or reasonably appropriate, or any action, consent, approval or waiver
from any party to any material Contract is required or reasonably appropriate, in connection with the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements and Honeywell shall cooperate as reasonably

  
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requested by Purchaser in connection with any action by Purchaser pursuant to Section 6.2(b). Subject to the terms and conditions of this Agreement (including Section 6.8)
and the Confidentiality Agreement, in taking such actions or making any such filings, the parties hereto shall furnish information required in connection therewith and timely seek to obtain any such actions, consents, approvals or waivers.

 (d) Concurrent with the execution of this Agreement, Honeywell and Purchaser shall execute or cause their applicable
Affiliates to execute the China Transfer Agreement and the unanimous board resolutions of HON Shanghai and the amendments to each of the Joint Venture Agreement and Articles of Association of HON Shanghai contemplated by the China Transfer
Agreement. Honeywell and Purchaser acknowledge and agree that, subject to the terms and conditions of this Agreement, the China Transfer Agreement and applicable Laws, the consummation of the transactions contemplated by the China Transfer Agreement
will occur simultaneously with the Closing. For the avoidance of doubt, in the event of any conflict or discrepancy between this Agreement and the China Transfer Agreement, this Agreement shall control. Honeywell and Purchaser shall, as promptly as
practicable, but in no event later than ten (10) business days after the later of the date hereof and the date on which the China Consent has been executed and delivered by Shanghai Creation Electronics Co., Ltd. (“SCEC”),
cause to be filed with the Chinese Governmental Authorities the China Transfer Agreement (and applications related thereto); it being understood and agreed by the parties hereto that, to the extent SCEC requires any revisions to the China Transfer
Agreement, the parties thereto shall re-execute the China Transfer Agreement with such revisions as are necessary and reasonably acceptable to Honeywell and Purchaser. The Sellers and Purchaser shall, as promptly as practicable, comply with any
reasonable request for additional information and documents requested by the Chinese Governmental Authorities. The Sellers, on the one hand, and Purchaser, on the other hand, shall inform the other promptly of any communication made by or on behalf
of such party to (including permitting the other party to review such communication in advance), or received from, the Chinese Governmental Authorities and shall furnish to the other such information and assistance as the other may reasonably
request in connection with its preparation of any filing, submission or other act that is necessary or advisable to be delivered to the Chinese Governmental Authorities. The Sellers, on the one hand, and Purchaser, on the other hand, shall keep each
other timely appraised of the status of any communications with, and any inquiries or requests for additional information from, the Chinese Governmental Authorities, and shall comply promptly with any such inquiry or request. No party shall agree to
participate in any meeting with the Chinese Governmental Authorities in respect of any such filings, investigation or other inquiries unless it consults with the other party in advance, and to the extent permitted by the Chinese Governmental
Authorities, gives the other party the opportunity to attend and participate thereat. 
 (e) The parties shall work together
and use commercially reasonable efforts to take all necessary actions to submit the equity transfer documents (including the China Transfer Agreement) in their approved form to the competent Chinese Registration Authority as soon as practicable, but
in no event more than thirty (30) days following the approval of the equity transfer of HON Shanghai by the competent Chinese Approval Authority, in order to have it issue a new business license to HON Shanghai reflecting the equity transfer
(the date on which such new business license is granted, the “HON Shanghai Registration Date”). In the event that, after the parties have complied with the foregoing (including by amending the equity transfer

  
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documents as may be requested by the Chinese Registration Authority, which amendments must also be reasonably acceptable to Purchaser), (i) the Chinese Registration Authority finally
determines that it will not issue a new business license to HON Shanghai that reflects the equity transfer contemplated by this Agreement, (ii) HON Shanghai fails to obtain such new business license due to the proposed amendments to the equity
transfer documents requested by the Chinese Registration Authority not being reasonably acceptable to Purchaser or (iii)(A) the Chinese Approval Authority has approved the transfer of the HON Shanghai Equity Interests from HON China to Purchaser or
(B) the Chinese Registration Authority has registered Purchaser as a shareholder of HON Shanghai, but in the case of either subclause (A) or (B), this Agreement is terminated in accordance with its terms prior to the Closing Date (the
occurrence of any event in clause (i), (ii) or (iii) above is hereinafter referred to as a “HON Shanghai Determination Event”), Honeywell shall re-acquire, or shall cause its designated Affiliate to re-acquire, from
Purchaser all of the transferred Equity Interest in HON Shanghai for an amount equal to the HON Shanghai Purchase Price (where the HON Shanghai Purchase Price has been previously paid in accordance with Section 3.1 of the Purchase
Agreement) or in the event of a HON Shanghai Determination Event pursuant to clause (i) or (ii) agree to reduce the Purchase Price under the Purchase Agreement by such amount (in the event the applicable HON Shanghai Determination Event
occurs prior to the Closing). Further, Purchaser acknowledges and agrees that from and after the HON Shanghai Registration Date (in the event the HON Shanghai Registration Date occurs prior to the Closing Date) through the Closing, Sellers shall,
for all purposes under this Agreement and otherwise, continue to operate HON Shanghai for their own risk (and shall hold Purchaser harmless from such risk due to Purchaser being a registered shareholder during such period) and account, and Sellers
acknowledge and agree that Purchaser shall not be obligated to pay the HON Shanghai Purchase Price until the Closing. From and after the Closing Date until either the HON Shanghai Registration Date (in the event the HON Shanghai Registration Date
occurs after the Closing Date) or, in the event of the occurrence of a HON Shanghai Determination Event, the date on which the applicable parties consummate the re-acquisition of the HON Shanghai Equity Interest in accordance with the terms of this
Section 6.2(e) (such date, the “HON Shanghai Re-Acquisition Date”), Purchaser shall cause HON Shanghai to conduct its business only in the ordinary course consistent with past practice and use its commercially reasonable
efforts to preserve intact the assets of HON Shanghai (in each case, tangible and intangible), ordinary wear and tear excepted, and relationships with employees and third parties having material business dealings with HON Shanghai (it being
understood that in connection with any dispute regarding whether Purchaser complied with its obligations under this sentence of this Section 6.2(e), any decline in revenues or profits of the business of HON Shanghai shall not in and of
itself be a breach of Purchaser’s obligation hereunder). Without limiting the generality of the foregoing, except to the extent required to comply with applicable Law, from and after the Closing Date until either the HON Shanghai Registration
Date (in the event the HON Shanghai Registration Date occurs after the Closing Date) or, in the event of the occurrence of a HON Shanghai Determination Event, the HON Shanghai Re-Acquisition Date, Purchaser shall cause HON Shanghai to not terminate
any HON Shanghai Employee or Transferred China Employee without cause or take any of the actions with respect to the business of HON Shanghai that are set forth in Section 6.1(b), 6.1(f), 6.1(g), 6.1(h), or
6.1(l), without Honeywell’s prior consent, which will not be unreasonably withheld. Notwithstanding anything in this Agreement to the contrary, in the event Honeywell or its designated Affiliate re-acquire the HON Shanghai Equity
Interests pursuant to this Section 6.2(e), nothing in Section 6.14 of 

  
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this Agreement shall be deemed to limit in any way the activities of (1) Honeywell or its designated Affiliate with respect to the ownership of HON Shanghai, or (2) the operation of the
business of HON Shanghai (including the manufacture, calibration, testing or sale of any products manufactured or sold by or on behalf of HON Shanghai as of the Closing Date) in the same manner as conducted prior to the Closing Date and in
compliance with the terms of the Joint Venture Agreement as in effect on the date of this Agreement. 
 (f) (i) To the extent
HON China does not open the SAFE Special Bank Account as of or prior to Closing: (A) HON China shall use commercially reasonable efforts to open as promptly as practicable after Closing the SAFE Special Bank Account to receive the HON Shanghai
Purchase Price, (B) at Closing, Purchaser shall wire the HON Shanghai Purchase Price to Honeywell, (C) within ten (10) business days after the SAFE Special Bank Account has been opened, Honeywell shall transfer an amount equal to the
HON Shanghai Purchase Price to Purchaser by wire transfer of immediately available funds pursuant to the wire transfer instructions provided by Purchaser to Honeywell in writing prior to such date, and Honeywell shall, on or prior to such date,
provide wire transfer instructions in writing to Purchaser in respect of the SAFE Special Bank Account, and (D) within one (1) business day after the date on which Purchaser receives the above-described amount equal to the HON Shanghai
Purchase Price from Honeywell, Purchaser shall wire an amount equal to the HON Shanghai Purchase Price to the SAFE Special Bank Account pursuant to the wire transfer instructions therefor provided by Honeywell to Purchaser in writing prior to such
payment, and (ii) to the extent HON China opens the SAFE Special Bank Account as of or prior to Closing, Purchaser shall wire the HON Shanghai Purchase Price to the SAFE Special Bank Account at the Closing pursuant to the wire transfer
instructions provided by Honeywell to Purchaser in writing prior to such date. 
 6.3 Consents; Shared Agreements.

 (a) Subject to Section 6.8 and except as contemplated in Section 6.2, Purchaser, on the one hand,
and the Sellers, on the other hand, shall each use commercially reasonable efforts to obtain all consents and authorizations required to consummate the transactions contemplated by this Agreement, including obtaining the consents and authorizations
and making the filings referred to in Sections 5.3 and 4.3, respectively. 
 (b) Notwithstanding anything to
the contrary, to the extent that any Contract and/or Purchased Asset is not capable of being transferred by the Sellers to Purchaser pursuant to this Agreement without the consent of a third party, and such consent is not obtained prior to Closing,
or if such transfer or attempted transfer would constitute a breach or a violation of the Contract or any Law (each a “Specified Consent”), nothing in this Agreement shall constitute a transfer or an attempted transfer thereof.
Sellers shall advise Purchaser promptly and in writing with respect to any such Specified Consent which Sellers know or have substantial reason to believe will not be assigned to Purchaser hereunder. 

(c) In the event that any such Specified Consent is not obtained on or prior to the Closing Date, without limiting Sellers’
representations and warranties or its obligations under this Agreement (including Sections 6.2, 6.3(a), 6.7 and 6.8), until such Specified Consent is obtained, the Sellers shall use commercially reasonable efforts
(including after the Closing Date) to (i) provide to Purchaser the benefits of the applicable Contract and/or 

  
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Purchased Asset, (ii) cooperate in any reasonable and lawful arrangement designed to provide such benefits to Purchaser, and (iii) enforce at the request and expense of Purchaser and
for the account of Purchaser, any rights of the Sellers arising from any such Contract and/or Purchased Asset (with any out-of-pocket costs or expenses associated with such arrangements, to the extent incremental to what Purchaser would be
reasonably likely to bear if such applicable Contract or Purchased Asset were assigned, to be borne by the Sellers). 
 (d) To
the extent that Purchaser is provided the benefits of any Contract and/or Purchased Asset referred to in Section 6.3(c), Purchaser shall perform the obligations arising under such Contract for the benefit of the Sellers and the other
party or parties thereto, except for any obligation under such Contract that constitutes an Excluded Liability. 
 (e) Once a
Specified Consent is obtained, the applicable Contract and/or Purchased Asset shall be deemed to have been automatically transferred to Purchaser on the terms set forth in this Agreement with respect to the other Contracts and Purchased Assets
transferred and assumed at the Closing, and consistent with the foregoing, the obligations pursuant to the applicable Contract shall be deemed to be Assumed Liabilities, and the rights pursuant to the applicable Contract shall be deemed to be
Purchased Assets. 
 (f) Without limiting the generality of Section 6.3(c), Honeywell agrees that it shall use
commercially reasonable efforts in assisting Purchaser to enter into customer or supplier agreements (each, a “New Agreement”), as applicable, with each counterparty (or an Affiliate thereof) to the Contracts listed on
Section 6.3(f) of the Disclosure Schedule (the “Shared Contracts”), for the products historically supplied to or from the Business under such Shared Contracts (each product purchased or supplied thereunder, a
“Shared Product”); provided that the Sellers shall not be required to make any expenditures or incur any Liability in connection with assisting Purchaser to obtain New Agreements. Until the earlier of (i) the date on which
Purchaser enters into a New Agreement with respect to any Shared Products and (ii) (1) the eight (8) month anniversary of the Closing Date for all Shared Contracts (other than the agreement(s) with ZMD currently in effect with
Honeywell relating to the purchase of Sleipnir, PTG7 and Gemini ASICs (the “ZMD Agreement”)) and (2) with regard to the ZMD Agreement, the termination date of the ZMD Agreement (including with respect to renewals thereof),
provided that Sellers shall not take any affirmative action to terminate and/or not renew or, subject to the last sentence of this Section 6.3(f), modify, those portions of such ZMD Agreement that cover any ASICs or related products that
are used in Existing Products and have historically been sourced through ZMD (including, without limitation, the Gemini, PTG7 and Sleipnir ASICs) without Purchaser’s consent, Honeywell shall, to the extent permitted under the relevant Shared
Contract and in accordance with the terms thereof (and, additionally, with respect to the ZMD Agreement, according to the terms of the Confidential ASIC Technology Agreement and the Sleipnir Support Agreement), source or distribute such Shared
Products on behalf of Purchaser in accordance with the terms of the applicable Shared Contract (provided that Honeywell shall not be obligated to source or distribute any product under the ZMD Agreement other than any ASICs or related products that
are used in Existing Products and have historically been sourced through ZMD (including, without limitation, Sleipnir, PTG7 or Gemini ASICs)) and to otherwise cooperate in any reasonable and lawful arrangement designed to provide such benefits to
Purchaser, and enforce at the request and expense of Purchaser and for the account of Purchaser, any rights of the Sellers arising from any Shared Contract and/or the 

  
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ZMD Agreement (with any out-of-pocket costs or expenses associated with such arrangements, to the extent incremental to what Purchaser would be reasonably likely to bear if such Shared Contract
or ZMD Agreement were assigned, to be borne by the Sellers), it being understood that Honeywell shall have no Liability whatsoever for (A) any failure or delay in delivery of any Shared Product to Purchaser or to the relevant customer (as the
case may be), (B) any failure of any Shared Product to comply with any product specification provided by Purchaser or any customer of Purchaser (as the case may be), (C) the condition of or defect in any Shared Product or any infringement
of any Intellectual Property right of any party by any Shared Product, in each case, sourced, distributed or purchased by or for the Business, or (D) any other Liability or Loss arising out of or in connection with any Shared Product sourced,
distributed or purchased by or for the Business, except, in each case, for damages arising out of Honeywell’s gross negligence, wanton disregard for its obligations under this Section 6.3(f) or willful misconduct; provided
that Purchaser shall use commercially reasonable efforts to provide Shared Products to be distributed by Honeywell under any Shared Contract with a customer in a timely manner that enables Honeywell to fulfill its obligations under such Shared
Contract and, provided further, that Purchaser shall indemnify Honeywell for any direct damages arising out of such Shared Contract relating to Shared Products sourced, distributed or purchased by or for the Business, except for direct
damages arising out of Honeywell’s gross negligence or willful misconduct. Each of Purchaser and Honeywell shall provide the other with reasonable access to the other’s personnel, premises and documents as are necessary to fulfill its
respective obligations under this Section 6.3(f), and shall promptly provide the other with notice of any communications from the relevant counterparty to each Shared Contract with respect to any Shared Product. Purchaser further agrees
to provide Honeywell written notice within five (5) business days after it has entered into any New Agreement. For the avoidance of doubt, nothing herein shall limit or otherwise affect the Sellers rights and ability to modify, amend,
supplement or otherwise restructure the ZMD Agreement in a manner that does not adversely alter the substantive terms, including economic terms, under which ZMD supplies any ASICs or related products that are used in Existing Products and have
historically been sourced through ZMD (including, without limitation, Gemini, PTG7 or Sleipnir ASICs); provided that all such amendments, modifications or supplements shall be consistent and not conflict with the terms of the Confidential ASIC
Technology Agreement and the Sleipnir ASIC Support Agreement. 
 (g) Subject to Sellers’ compliance with the covenants
contained in this Agreement (including in this Section 6.3 and in Sections 6.2, 6.7 and 6.8), Purchaser agrees that the failure to obtain any consent set forth on, or not required to be set forth on, the Disclosure
Schedules, or the failure to enter into any New Agreement, shall not in and of itself (i) create any Liability of the Sellers or (ii) constitute a breach of any representation, warranty, covenant, or agreement of the Sellers contained
herein, or the non-satisfaction of any condition of Purchaser. 
 6.4 Confidentiality; Access to Information. 

(a) Purchaser acknowledges that the information being Made Available to it by the Sellers and their Affiliates (or their respective
agents or representatives) is subject to the terms of a confidentiality agreement dated November 12, 2009 between Purchaser and Honeywell (the “Confidentiality Agreement”), the terms of which are incorporated herein by
reference. Effective upon, and only upon, the Closing, the confidentiality obligations of Purchaser under the Confidentiality Agreement will terminate only with respect to information 

  
 57 

 
relating to the Business; and Purchaser acknowledges that any and all other information provided or Made Available to it by the Sellers and their Affiliates (or their respective agents or
representatives) concerning the Sellers and their Affiliates (other than the Business) will remain subject to the terms and conditions of the Confidentiality Agreement after the Closing and that any information provided by or on behalf of the
Sellers and their Affiliates pursuant to Section 6.4(d) below will be subject to the terms and conditions of the Confidentiality Agreement. 
 (b) Between the date hereof and the Closing Date, each Seller shall, subject to compliance with applicable Laws and any Contracts to which such Seller or any of its Affiliates (including the Purchased
Entities) is a party, provide Purchaser access and the opportunity to make such investigation of the management, employees, representatives (including outside attorneys and accountants), properties, businesses and operations of the Purchased Assets
and Purchased Entities, and such examination of the books, records and other documents and the financial condition of the Business (including the Purchased Entities), as it reasonably requests; provided, however, that no Seller nor any
of their Affiliates shall be required to disclose to Purchaser or any agent or representative of Purchaser any information to the extent it is advised by counsel that doing so would reasonably be expected to result in a loss of the ability to
successfully assert a claim of privilege (including without limitation, the attorney-client and work product privileges), unless Purchaser agrees to enter into a valid joint defense agreement or similar arrangement to preserve such privilege, or to
the extent such disclosure would violate any applicable Law or contractual requirement (provided that the Sellers shall use commercially reasonable efforts to obtain consents or approvals in order to disclose such information). Any
confidential information provided pursuant to this Section 6.4(b) shall be kept confidential by Purchaser and will be subject to applicable Law, the terms of the Confidentiality Agreement and Section 6.4(a). Any such
investigation and examination will be conducted under reasonable circumstances after appropriate advance notice and in a manner so as not to unreasonably interfere with the conduct of the Business. No investigation pursuant to this
Section 6.4(b) shall affect any representation or warranty by the Sellers in this Agreement or any condition to the obligations of Purchaser hereunder. 
 (c) As reasonably requested by Purchaser, from the date hereof until the Closing, the Sellers shall provide Purchaser with such financial and other information with respect to the Business and the
Purchased Entities, to the extent such information is reasonably available to Sellers, and access to personnel of Sellers or any of their Affiliates and will use commercially reasonable efforts to provide access to Sellers’ outside accountants
and other advisors, subject to customary indemnification agreements and other customary requirements imposed by such accountants and other advisors, for Purchaser to: 

(i) identify the Purchased Assets with a view towards granting security interests in such collateral after the Closing;
and 
 (ii) consider whether Purchaser will need to prepare audited financial statements of the Business in
connection with any future offering memoranda, registration statement, or periodic report prepared by Purchaser or its Affiliates. 
 (d) Subject to Purchaser’s existing confidentiality obligations, and Honeywell’s right to have Purchaser enter into a new confidentiality agreement in respect of

  
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Seller information not related to the Business on terms reasonably acceptable to Honeywell (which in any event will include customary carve-outs for disclosure of confidential information as
required by applicable Laws) prior to complying with any terms of this Section 6.4(d) (collectively, the “Confidentiality Obligations”), upon reasonable advanced written notice, the Sellers shall use commercially
reasonable efforts to provide Purchaser and its representatives with such financial and other information relating to the Business (including information of the Sellers or any of their Affiliates to the extent required by Regulation S-X (including
Rules 3-05 and 3-10), GAAP, IFRS or other applicable accounting standards (the “Applicable Requirements”)), to the extent such information is reasonably available to Sellers or their Subsidiaries (the “Carve-Out Financial
Information”), and shall otherwise reasonably cooperate with Purchaser, in each case as reasonably requested by Purchaser and its Affiliates in order for Sensata NV and its Subsidiaries to prepare and audit any financial statements with
respect to the Business, including in accordance with the Applicable Requirements (the “Carve-Out Financial Statements”). In furtherance of and without limiting the foregoing, the parties agree as follows: 

(i) Not more than thirty (30) days after the date of this Agreement, the Sellers shall appoint an individual with an
appropriate level of financial expertise (the “HON Audit Manager”), to serve as the principal point of contact for Purchaser, its Affiliates, and its and their employees and other representatives (including outside accountants and
legal counsel) (“Purchaser Personnel”) with respect to the matters set forth in this Section 6.4(d). The HON Audit Manager will be fully dedicated to the tasks required pursuant to this Section 6.4(d) in
order to coordinate and respond to the requests of Purchaser Personnel which are made pursuant to this Section 6.4(d) and otherwise facilitate the Sellers’ compliance with their obligations under this Section 6.4(d). The
HON Audit Manager will liaise and coordinate as necessary and appropriate with chief financial officers, site controllers, and other appropriate personnel or advisors (including outside accountants and legal counsel) of Honeywell and its
Subsidiaries (“Honeywell Personnel”) in response to the reasonable requests of Purchaser Personnel under this Section 6.4(d). To the extent the HON Audit Manager is reasonably available, responsive, and cooperative,
Purchaser and its representatives shall address all requests for information, inquiries, and other contact regarding the matters described in this Section 6.4(d) to the HON Audit Manager; provided that to the extent reasonably necessary
or appropriate in connection with the matters described in this Section 6.4(d), the HON Audit Manager will arrange for, and the Purchaser Personnel shall have, at reasonable times and upon reasonable notice, access to appropriate
Honeywell Personnel, subject to the Confidentiality Obligations and, in the case of outside advisors, subject to customary indemnification and confidentiality agreements and other customary requirements imposed by such accountants or other advisors.

 (ii) At Purchaser’s reasonable request, Seller and Purchaser will cooperate and use their commercially
reasonable efforts to enable Purchaser to engage audit personnel of PricewaterhouseCoopers LLP (“PwC”) who have a history of performing audit reviews for Honeywell (subject to Purchaser executing any customary indemnification and
confidentiality agreements and other customary requirements imposed by PwC and reasonably acceptable to Purchaser) to assist Purchaser with the review of the Carve-Out Financial Information, to conduct an audit of the Carve-Out Financial Statements,
and to perform any other services otherwise required by Sensata NV or any of its Subsidiaries in connection with this Section 6.4(d). 

  
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 (iii)
From the date of appointment of the HON Audit Manager through the date of the Closing, the Sellers shall use commercially reasonable efforts to provide Carve-Out Financial Information, including pro forma financial information of the type previously
Made Available to Purchaser in respect of the year ended December 31, 2009 (subject to the Confidentiality Obligations), and shall otherwise reasonably cooperate with Purchaser Personnel as reasonably requested by Purchaser and its Affiliates
in order to analyze and evaluate whether Sensata NV and its Subsidiaries will have a requirement to prepare and audit any Carve-Out Financial Statements, and in order to enable PwC to perform such audit procedures (including, if requested by PwC, a
physical inventory count at year-end) as would be required or requested by PwC in connection with any audit of Carve-Out Financial Statements. 
 (iv) Upon Purchaser’s reasonable advanced written notice (at any time prior to or after Closing) that it, as determined in its sole discretion, expects to require Carve-Out Financial Statements (the
“Audit Assistance Request”), the Sellers shall use commercially reasonable efforts to provide Carve-Out Financial Information (subject to the Confidentiality Obligations), and shall otherwise reasonably cooperate with Purchaser
Personnel as reasonably requested by Purchaser and its Affiliates in order to prepare and audit the Carve-Out Financial Statements, and in order to complete such preparation and audit within applicable time frames under the Applicable Requirements.
In connection with the preparation of the Carve-Out Financial Statements, to the extent that both Seller Personnel and Purchaser Personnel can, through the exercise of their commercially reasonable efforts, accomplish the same requirement or task,
Purchaser shall cause Purchaser Personnel to perform such requirement or task in order to avoid undue burden on Seller Personnel. 
 (v) Notwithstanding anything herein to the contrary, Sellers shall use commercially reasonable efforts to obtain representation letters and similar documents from the applicable Seller Personnel as may be
required in connection with the preparation and audit of Carve-Out Financial Statements; provided that such obligation shall be inapplicable to the extent that, in the reasonable judgment of such personnel, the representations in such letter or
document are not factually accurate in all material respects. Subject to Sellers’ compliance with the covenants of this Section 6.4(d), Purchaser agrees that the inability or failure, in whole or in part, of Sensata NV or any of its
Subsidiaries to obtain any such representation letters or similar documents shall not in and of itself create any Liability on the part of the Sellers or constitute a breach of any representation, warranty, covenant or agreement of the Sellers
contained in this Agreement. 
 (vi) For the avoidance of doubt, the parties acknowledge and agree that the
costs and expenses incurred by Sellers or their Subsidiaries, and personnel of Sellers or any of their Affiliates in providing Carve-Out Financial Information and cooperating in the preparation of the Carve-Out Financial Information shall be fully
reimbursed by Purchaser at Seller’s actual cost. 

  
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 (vii)
The Sellers’ obligations under this Section 6.4(d) shall terminate upon the filing of a form 10-K by Sensata NV that includes its audited financial statements for the calendar year after the calendar year in which the Closing
occurs, so long as the Sellers have complied with their obligations set forth in this Section 6.4(d) through such date. 
 (e) From and after the date hereof until the Closing, Honeywell shall deliver to Purchaser as soon as practicable after they become available a profit and loss statement and statement of net assets for
each month ending after the date of the May 29, 2010 Balance Sheet, prepared from the books and records of the Sellers (as it relates to the Business) and the Purchased Entities, as and only to the extent customarily prepared in the ordinary
course of business consistent with Honeywell’s past practice. 
 6.5 Publicity. Honeywell shall not, and shall not
permit the Sellers, the Purchased Entities nor any of its or their Affiliates or representatives to, and Purchaser shall not, and shall not permit any of its Affiliates nor their respective representatives to, issue any press release or public
announcement concerning this Agreement or the transactions contemplated hereby without obtaining the prior written approval of the other parties hereto, which approval will not be unreasonably withheld, conditioned or delayed, unless, in the
reasonable judgment of Honeywell or Purchaser, disclosure is otherwise required by applicable Law or by the applicable rules of any stock exchange on which any Seller or Purchaser lists its securities; provided that, to the extent required by
applicable Law or by the rules of any stock exchange, the party intending to make such release or announcement shall use its commercially reasonable efforts consistent with such applicable Law to consult with the other party with respect to the text
thereof and, provided further, that no party shall be required to obtain consent pursuant to this Section 6.5 to the extent any proposed release or announcement contains information that has previously been made public
without breach of the obligations under this Section 6.5. 
 6.6 Books and Records. 

(a) Honeywell will use commercially reasonable efforts to deliver or cause to be delivered to Purchaser at Closing all properties,
books, records, copies of checkbooks and cancelled checks, copies of Contracts, information and documents relating primarily to the Business that are not then in the possession or control of the Sellers or the Purchased Entities. As soon as is
reasonably practicable after the Closing, Honeywell will deliver or cause to be delivered to Purchaser any remaining properties, books, records, copies of Contracts, information and documents relating primarily to the Business that are not already
in the possession or control of the Sellers and the Purchased Entities. 
 (b) Subject to Section 8.2(a) (relating
to the preservation of Tax records), each of Honeywell and Purchaser agrees that it will preserve and keep the books of accounts, financial and other records held by it relating to the Business (including the Purchased Entities) (including
accountants’ work papers) for a period of seven (7) years from the Closing Date in accordance with its respective corporate records retention policies; provided, however, that prior to disposing of any such records in
accordance with such policies (if such records would be disposed of prior to the tenth anniversary of the Closing Date), the applicable party shall provide written notice to the other party of its intent to dispose of such records and shall

  
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provide such other party the opportunity to take ownership and possession of such records (at such other party’s sole expense) to the extent they relate to such other party’s business
or obligations within 30 days after such notice is delivered. If such other party does not confirm its intention in writing to take ownership and possession of such records within such 30-day period, the party who possesses the records may proceed
with the disposition of such records. Each of Honeywell and Purchaser shall make such records and other information relating to the Business (including the Purchased Entities), employees and auditors available to the other as may be reasonably
required by such party (i) in connection with, among other things, any audit or investigation of, insurance claims by, legal proceedings against, dispute involving or governmental investigations of any Seller or Purchaser or any of their
respective Affiliates, or (ii) in order to enable any Seller or Purchaser to comply with its respective financial reporting obligations or obligations under this Agreement and the Ancillary Agreements and each other agreement, document or
instrument contemplated hereby or thereby, in either case under reasonable circumstances after appropriate advance notice and in a manner so as not to unreasonably interfere with the providing party’s business, and subject to the
confidentiality obligations set forth in Sections 6.4 and 6.15. Without limiting the generality of the foregoing, (1) Purchaser shall reasonably cooperate with the Sellers and its counsel and other representatives, make
reasonably available its personnel, including the Transferred Employees, and provide reasonable access to the books and records, facilities, testing equipment and other assets relating to the Business (including the Purchased Entities) as may be
reasonably requested by Sellers in connection with the defense, negotiation or settlement of any matters set forth on Sections 4.9 and 4.20 of the Disclosure Schedule or other Third-Party Claims, including a Third-Party Claim seeking a
Product Recall, as to which the Sellers have assumed the defense pursuant to Section 10.3(b), and (2) the Sellers shall reasonably cooperate with Purchaser and its counsel and other representatives, make reasonably available its
personnel, including the non-Transferred Employees, and provide reasonable access to the books and records, facilities, testing equipment and other Excluded Assets or Purchased Entity Excluded Assets as may be reasonably requested by Purchaser in
connection with its defense, negotiation or settlement of any Third-Party Claims, including a Third-Party Claim seeking a Product Recall (to the extent not assumed by the Sellers pursuant to Section 10.3(b)). 

6.7 Further Action. Except as set forth in Section 6.2(b), the Sellers, on the one hand, and Purchaser, on the other
hand, shall each use commercially reasonable efforts to (a) take, or cause to be taken, all actions (within its control) necessary or appropriate to consummate the transactions contemplated by this Agreement and the Ancillary Agreements, and
(b) cause the fulfillment at the earliest practicable date of all of the conditions to the Purchaser’s (in the case of the Sellers) and to the Sellers’ (in the case of Purchaser) respective obligations to consummate the transactions
contemplated by this Agreement and the Ancillary Agreements. Without limiting the generality of the foregoing, from time to time after the Closing Date, and for no further consideration, each of the Sellers and Purchaser shall, and shall cause its
Affiliates to, execute, acknowledge and deliver such assignments, transfers, consents, assumptions and other documents and instruments and take such other actions as may reasonably be necessary to appropriately consummate the transactions
contemplated hereby and thereby, including (i) transferring back to Honeywell or any Seller or its designated Affiliates any asset or Liability which was inadvertently transferred to, or held by, Purchaser at the Closing, (ii) transferring
to Purchaser any asset or Liability contemplated by this Agreement to be transferred to Purchaser and which was not so transferred at Closing, and (iii) remitting promptly 

  
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to Purchaser any cash amounts actually received for accounts receivable of the Business generated at any time prior to or on or after the Closing Date. The allocation of all Intellectual Property
in connection with the transactions contemplated by this Agreement and the Ancillary Agreements shall be governed by the principles embodied in Sections 2.1(d) (with respect to Intellectual Property licenses), 2.1(f), 2.2(e),
2.2(f), 2.3(h), 2.3(i) and 2.4(c) of this Agreement and by principles embodied in the Intellectual Property License Agreement. 
 6.8 Expenses. Whether or not the transactions contemplated hereby are consummated, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall
be paid by the party hereto incurring such expenses, except as expressly provided herein; provided, however, that (a) Purchaser and the Sellers shall each pay one-half of any and all fees and required to be paid under the HSR Act
or any other foreign merger control or foreign investment clearances required by Law to be obtained in connection with the Closing and (b) Purchaser and the Sellers shall each pay one-half of any and all out-of-pocket fees, expenses or other
amounts payable to third parties in connection with the matters and obligations set forth in Sections 6.2, 6.3(a) and 6.7. 
 6.9 Notification of Certain Matters. Each party shall give prompt written notice to the other of the following: 
 (a) the occurrence or nonoccurrence of any event (including any breach of any of its representations or warranties or a breach of any covenant or agreement of such party) whose occurrence or nonoccurrence
could reasonably be expected to cause any of the conditions precedent set forth in Article VII not to be satisfied; and 
 (b) the status of matters relating to completion of the transactions contemplated hereby, including promptly furnishing the other with copies of notices or other communications received by any party or
any of its Affiliates from any Governmental Authority or other third party with respect to this Agreement or the transactions contemplated hereby. 
 6.10 Employees and Employee Benefit Plans. 
 (a) Scope of Section.
This Section 6.10 contains the covenants and agreements of the parties hereto with respect to the employment status of and provision of employee benefits to the employees of the Sellers and their Affiliates who are employed primarily in
connection with the Business and to the employees of the Purchased Entities, in each case, on the Closing Date, including those individuals listed in Section 6.10 of the Disclosure Schedule (the “Employees”) and the
provision of employee benefits under the Company Plans to employees of the Purchased Entities and the Sellers who terminate employment on the Closing Date with residual benefits under such Company Plans. Nothing herein expressed or implied confers
upon any current or former employee, officer, director, contractor or agent of the Business (including the Purchased Entities) any rights or remedies of any nature or kind whatsoever under or by reason of this Section 6.10. Employees who
accept Purchaser’s offer of employment and commence employment with Purchaser as of the Closing, Employees whose rights and obligations arising from their employment relationships shall pass over to Purchaser in connection with the transfer of
the Business by operation of Law and Employees of the Purchased Entities who continue their employment with a Purchased Entity as of the Closing, will (except as expressly provided in this Section 6.10) be referred to as
“Transferred Employees.” 

  
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 (b) US
Employees. This Section 6.10(b) applies only to Employees employed in the United States (collectively, the “US Employees”). 
 (i) Purchaser shall, by written offer of employment, offer to hire, effective as of the Closing, the US Employees who are employed by the Sellers or their Affiliates as of the Closing Date, who are listed
in Section 6.10(b) of the Disclosure Schedule. Purchaser shall hire each US Employee who accepts such offer. Sellers hereby agree that any current or former employee of the Business (including any US Employee) who (A) as of the
Closing Date is receiving or entitled to receive short-term disability benefits and who subsequently becomes eligible to receive long-term disability benefits, or (B) as of the Closing Date is receiving or entitled to receive long-term
disability benefits shall become eligible or continue to be eligible, as applicable, to receive such benefits under a disability benefit plan of Sellers until such employee is no longer disabled. Upon written notice to Purchaser that such employee
has been released to return to active employment, Purchaser shall, by written offer of employment, offer to hire such employee effective on the date such employee is released to return to work, provided that such release date occurs within six
(6) months after the Closing Date, and shall hire each such US Employee who accepts such offer. All US Employees who accept Purchaser’s offer of employment and actually commence employment with Purchaser on or after the Closing are
referred to herein as “Transferred US Employees.” Terms of employment continuation for each Transferred US Employee shall (1) initially be at the same work location, (2) initially pay a base wage rate and provide cash
incentive opportunities no less than each such Transferred US Employee’s base wage rate and cash incentive opportunities in effect as of the Closing Date, (3) initially provide employee benefit plans (other than any equity-based
compensation, non-qualified deferred compensation, defined benefit pension plans and retiree health benefits) that are not materially different than those provided to similarly situated United States employees of Purchaser, except that Purchaser
shall provide severance benefits to Transferred US Employees as described in Section 6.10(b)(iii), and (4) initially provide other terms and conditions of employment that are not materially different than those provided to similarly
situated United States employees of Purchaser. Purchaser shall credit each Transferred US Employee’s service with the Sellers and their respective Affiliates for purposes of eligibility to participate and vesting (but not for purposes of
benefit accrual, except that service requirements for vacation or severance entitlements shall be credited) to the extent credited under an analogous Company Plan as of the Closing Date, except to the extent any duplication of benefits would result.

 (ii) Nothing in this Agreement shall, or shall be construed to, limit the ability of Purchaser or any of its
Affiliates to terminate the employment of any Transferred US Employee at any time and for any or no reason after the Closing. 
 (iii) With respect to any Transferred US Employee whose employment is involuntarily terminated other than for cause, as the term “cause” is defined in Sellers’ severance plan set forth in
Section 6.10(b)(iii) of the Disclosure 

  
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Schedule, by Purchaser during the twenty-four (24)-month period beginning on the Closing Date (including, but not limited to, the termination of a Transferred US Employee because he refuses to
accept a work relocation that exceeds fifty (50) miles), Purchaser shall provide a severance benefit (consisting of notice pay (if applicable), a lump sum severance payment and subsidized COBRA continuation coverage (it being understood that
with respect to the subsidized COBRA continuation portion of the severance benefit, Purchaser will provide subsidized COBRA continuation coverage as though severance benefits paid to such Transferred US Employee had been paid over time rather than
in a lump sum)) that shall be substantially similar in value to the severance benefit that such Transferred US Employee would have received under the terms of the severance plan set forth in Section 6.10(b)(iii) of the Disclosure
Schedule, calculated as though the Transferred US Employee worked continuously for the Sellers or their respective Affiliates, as applicable, until his termination date with Purchaser. 

(iv) Each health benefit plan sponsored by Purchaser for the benefit of the Transferred US Employees shall, where
applicable, (A) in the plan year in which the Closing Date occurs waive any pre-existing condition limitation or exclusion or any actively-at-work requirement that was waived or satisfied under an analogous Company Plan as of the Closing Date,
and (B) in the plan year in which the Closing Date occurs credit all payments made by Transferred US Employees for healthcare expenses under similar Company Plans during the current plan year for purposes of deductibles, co-payments and maximum
out-of-pocket limits. 
 (v) On and after the Closing Date, Purchaser shall assume and pay when due all
Liabilities of the Sellers relating to accrued wages, accrued cash bonuses payable pursuant to the applicable management incentive plan (“MIP”) of the Sellers for the period from January 1, 2011 through the Closing (in the
event the Closing occurs after January 1, 2011), accrued cash bonuses payable pursuant to the applicable sales incentive plan (“SIP’) of the Sellers, earned but unused vacation, and accrued leave, in each case, as of the
Closing Date with respect to Transferred US Employees, and in each case (other than Liabilities in the nature of wages that would constitute Assumed Liabilities pursuant to Section 2.4(d)(ii) or (iii)), solely to the extent
reflected as a Liability in Final Net Working Capital. For the avoidance of doubt, regardless of the date on which the Closing occurs, the Sellers shall retain and pay when due the cash bonuses payable pursuant to the MIP for calendar year 2010 to
the Transferred US Employees who earned such bonuses. 
 (vi) Purchaser shall provide the Transferred US
Employees and their covered beneficiaries with continuation coverage in accordance with Section 4980B of the Code and/or Sections 601 through 608 of ERISA (“COBRA”) as a result of any “qualifying events” (as defined
in Section 4980B of the Code) that occur after the Closing Date. 
 (vii) Effective as of the Closing Date,
the Transferred US Employees shall no longer be eligible to (A) contribute to the health care flexible spending account or accounts sponsored by the Sellers, except to the extent otherwise provided by and in accordance with COBRA, or
(B) contribute to the dependent care 

  
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flexible spending accounts sponsored by the Sellers. As soon as practicable following the Closing Date, Sellers shall cause the account balances of all Transferred US Employees under any defined
contribution plan to become fully vested in accordance with relevant plan provisions, and Sellers shall make to any defined contribution plan maintained by any Seller all employee and matching and any other employer contributions with respect to the
Transferred US Employees’ employment service rendered prior to the Closing. Following the Closing Date, Sellers shall take all actions as are necessary or appropriate to ensure that, under the terms of any 401(k) plan maintained by any Seller
in which Transferred US Employees participate, each Transferred US Employee may elect to continue repayment of any outstanding loans for the duration of the loan term. 
 (c) Czech Republic Employees. This Section 6.10(c) applies only to Employees employed in the Czech Republic by HON Czech Controls (“Czech Republic Employees”).

 (i) The parties understand and agree that after the Closing, contracts of employment for Czech Republic
Employees, including the individuals listed in Section 6.10(c) of the Disclosure Schedule, will, to the extent required by applicable Law, remain in effect, and the Czech Republic Employees’ rights and obligations arising from their
employment relationships (i.e., the terms and conditions of employment) will remain unchanged and unaffected by and after the Closing unless changes are permitted by applicable Law or unless Czech Republic Employees and HON Czech Controls
mutually agree to amend or terminate any of the contracts of employment for such Czech Republic Employees. 

(ii) Sellers represent that, to the Knowledge of the Sellers, Section 6.10(c) of the Disclosure Schedule
lists all Czech Republic Employees; however, for the avoidance of doubt, Purchaser agrees to continue to employ all Czech Republic Employees, regardless of whether they are listed in Section 6.10(c) of the Disclosure Schedule.

 (iii) Purchaser or HON Czech Controls shall be solely responsible for any amounts becoming payable to Czech
Republic Employees under the statutory severance plan or other applicable Laws as a result of their separation from employment with Purchaser or HON Czech Controls at any time on or after the Closing Date, notwithstanding that such amount must be
calculated by reference to periods of employment with HON Czech Controls and the Sellers and their Affiliates prior to Closing as well as periods of employment with Purchaser and HON Czech Controls after the Closing. 

(iv) On and after the Closing Date, HON Czech Controls shall be obliged to pay when due all Liabilities of the Sellers or
HON Czech Controls relating to accrued wages, accrued cash bonuses payable pursuant to the MIP for the period from January 1, 2011 through the Closing (in the event the Closing occurs after January 1, 2011), accrued cash bonuses payable
pursuant to the SIP, earned but unused vacation, and accrued leave as of the Closing Date with respect to Czech Republic Employees, in each case (other than Liabilities in the nature of wages that would constitute Assumed

  
 66 

 
Liabilities pursuant to Section 2.4(d)(ii) or (iii)), solely to the extent reflected as a Liability in Final Net Working Capital. For the avoidance of doubt, regardless of the
date on which the Closing occurs, the Sellers shall retain and pay when due the cash bonuses payable pursuant to the MIP for calendar year 2010 to the Czech Republic Employees who earned such bonuses. 

(d) Korea Employees. This Section 6.10(d) applies only to Employees employed in Korea (“Korea
Employees”). 
 (i) Purchaser shall, by written offer of employment, offer to hire, effective as of the
Closing, the Korea Employees who are employed by the Sellers or their Affiliates as of the Closing Date, who are listed in Section 6.10(d) of the Disclosure Schedule. Purchaser shall hire each Korea Employee, effective on the Closing
Date, who accepts such offer. All Korea Employees who accept Purchaser’s offer of employment and actually commence employment with Purchaser on or after the Closing are referred to herein as “Transferred Korea Employees.” Terms
of employment continuation for each Transferred Korea Employee shall (1) initially be at the same work location, (2) initially pay a base wage rate and cash incentive compensation no less than each such Transferred Korea Employee’s
base wage rate and cash incentive compensation in effect as of the Closing Date, and (3) initially provide employee benefit plans (other than any equity-based compensation, non-qualified deferred compensation, and defined benefit pension plans)
and other terms and conditions of employment that are no less favorable in the aggregate than those provided to the Korea Employees as of the Closing Date. Purchaser shall credit each Transferred Korea Employee’s service with the Sellers and
their respective Affiliates for purposes of severance calculation described in subsection A below, eligibility to participate, and vesting (but not for purposes of benefit accrual or any other purpose under any defined benefit plan, and not for any
purpose under any equity-based or nonqualified deferred compensation plan or arrangement) to the extent credited under an analogous Foreign Plan as of the Closing Date, except to the extent any duplication of benefits would result. 

A. Purchaser shall be responsible for any amounts becoming payable to Transferred Korea Employees under the statutory
severance plan or Laws as a result of their separation from employment at any time after the Closing, notwithstanding that such amount must be calculated by reference to periods of employment with HON Korea prior to Closing as well as periods of
employment with Purchaser after the Closing. 
 B. For the avoidance of doubt, Seller shall be responsible for
any severance amounts becoming payable to Korea Employees who are offered employment by Purchaser, but who decline Purchaser’s offer of employment. 
 C. On and after the Closing Date, Purchaser shall assume and pay when due all Liabilities of the Sellers relating to accrued wages, accrued cash bonuses payable pursuant to the MIP for the period from
January 1, 2011 through the Closing (in the event the Closing occurs after January 1, 2011), 

  
 67 

 
accrued cash bonuses payable pursuant to the SIP, earned but unused vacation and accrued leave, in each case, as of the Closing Date with respect to Transferred Korea Employees, and in each case
(other than Liabilities in the nature of wages that would constitute Assumed Liabilities pursuant to Section 2.4(d)(ii) or (iii)), solely to the extent reflected as a Liability in Final Net Working Capital. For the avoidance of
doubt, regardless of the date on which the Closing occurs, the Sellers shall retain and pay when due the cash bonuses payable pursuant to the MIP for calendar year 2010 to the Transferred Korea Employees who earned such bonuses. 

(e) HON Shanghai Employees. This Section 6.10(e) applies only to Employees employed in China by HON Shanghai
(“Shanghai Employees”). 
 (i) The parties understand and agree that, after the Closing,
contracts of employment for Shanghai Employees, including the individuals listed in Section 6.10(e) of the Disclosure Schedule will to the extent required by applicable Law remain in effect, and the Shanghai Employees’ rights and
obligations arising from their employment relationships (i.e., the terms and conditions of employment) will remain unchanged and unaffected after the Closing unless changes are permitted by applicable Law or unless Shanghai Employees and HON
Shanghai mutually agree to amend or terminate any of the contracts of employment for such Shanghai Employees. 

(ii) Sellers represent that, to the Knowledge of the Sellers, Section 6.10(e) of the Disclosure Schedule
lists all Shanghai Employees; however, for the avoidance of doubt, Purchaser agrees to continue to employ all Shanghai Employees, regardless of whether they are listed in Section 6.10(e) of the Disclosure Schedule, unless such Shanghai
Employees’ employment relationships are changed to the extent permitted by applicable Law or unless Shanghai Employees and HON Shanghai mutually agree to amend or terminate any of the contracts of employment for such Shanghai Employees.

 (iii) Purchaser or HON Shanghai shall be solely responsible for any amounts becoming payable to Shanghai
Employees under the statutory severance plan or other applicable Laws as a result of their separation from employment with HON Shanghai at any time on or after the Closing Date, notwithstanding that such amount must be calculated by reference to
periods of employment with HON Shanghai prior to Closing as well as periods of employment with HON Shanghai after the Closing. 
 (iv) On and after the Closing Date, Purchaser shall assume and pay when due all Liabilities of the Sellers relating to accrued wages, accrued cash bonuses payable pursuant to the MIP for the period from
January 1, 2011 through the Closing (in the event the Closing occurs after January 1, 2011), accrued cash bonuses payable pursuant to the SIP, earned but unused vacation, and accrued leave, in each case, as of the Closing Date with respect
to Shanghai Employees, and in each case (other than Liabilities in the nature of wages that would constitute Assumed Liabilities pursuant to Section 2.4(d)(ii) or (iii)), solely to the extent reflected as a Liability in Final Net
Working Capital. For the avoidance of doubt, regardless of the date on which the Closing occurs, the Sellers shall retain and pay when due the cash bonuses payable pursuant to the MIP for calendar year 2010 to the Shanghai Employees who earned such
bonuses. 

  
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 (f) HON China
Employees. This Section 6.10(f) applies only to Employees employed in China by HON China (“China Employees”). 
 (i) Prior to Closing, the Sellers shall cause HON Shanghai, to offer, in a manner and method that Sellers determine are appropriate, to the China Employees positions that would allow such China Employees
to transfer their current employment relationships from HON China to HON Shanghai. Such offered employment shall initially be at the same work location (Shanghai), initially pay a base wage rate and cash incentive compensation no less than each such
China Employee’s base wage rate and cash incentive compensation in effect as of the date immediately prior to such transfer, and initially provide employee benefit plans and other terms and conditions of employment that are no less than those
provided to each such China Employee as of the date immediately prior to such transfer. 
 (ii) If prior to
Closing, the China Employees do not transfer to HON Shanghai prior to Closing pursuant to Section 6.10(f)(i), then the following provisions will become applicable: 

A. Purchaser shall cause HON Shanghai, by written offer of employment, to offer to hire, effective as of the Closing, the
China Employees who are employed by HON China as of the Closing Date, who are listed in Section 6.10(f) of the Disclosure Schedule. Purchaser shall cause HON Shanghai to hire each China Employee, effective as of the Closing Date, who
accepts such offer. All China Employees who accept HON Shanghai’s offer of employment and actually commence employment with HON Shanghai on or after the Closing are referred to herein as “Transferred China
Employees.” Terms of employment continuation for each Transferred China Employee shall (1) initially be at the same work location (Shanghai), (2) initially pay a base wage rate and cash incentive compensation no less than
each such Transferred China Employee’s base wage rate and cash incentive compensation in effect as of the Closing Date, and (3) initially provide employee benefit plans (other than any equity-based compensation, non-qualified deferred
compensation, and defined benefit pension plans) and other terms and conditions of employment that are not materially different than those provided to similarly situated HON Shanghai Employees as of the Closing Date. HON Shanghai shall credit each
Transferred China Employee’s service with HON China and its respective Affiliates for purposes of severance calculation described in subsection (B) below, eligibility to participate, and vesting (but not for purposes of benefit accrual or
any other purpose under any defined benefit plan, and not for any purpose under any equity-based or nonqualified deferred compensation plan or arrangement) to the extent credited under an analogous Foreign Plan as of the Closing Date, except to the
extent any duplication of benefits would result. 

  
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 B. HON
Shanghai shall be responsible for any amounts becoming payable to Transferred China Employees under the statutory severance plan or Laws as a result of their separation from employment at any time after the Closing, notwithstanding that such amount
must be calculated by reference to periods of employment with HON China prior to Closing as well as periods of employment with HON Shanghai after the Closing. 
 C. For the avoidance of doubt, HON China shall be responsible for any severance amounts becoming payable to China Employees who are offered employment by HON Shanghai, but who decline HON Shanghai’s
offer of employment. With respect to any China Employee who does not consent to the transfer of his/her employment to HON Shanghai, and instead elects to be terminated with severance (paid or to be paid by Sellers) and rehired by Purchaser,
Purchaser shall still cause HON Shanghai or one of its Affiliates to offer to hire such employee per subsection (A) above. However, such China Employee will not be credited with his/her service with HON China. 

D. On and after the Closing Date, HON Shanghai shall assume and pay when due all Liabilities of the Sellers relating to
accrued wages, accrued cash bonuses for the period from January 1, 2011 through the Closing (in the event the Closing occurs after January 1, 2011), accrued cash bonuses payable pursuant to the SIP, earned but unused vacation and accrued
leave, in each case, as of the Closing Date with respect to Transferred China Employees, and in each case (other than Liabilities in the nature of wages that would constitute Assumed Liabilities pursuant to Section 2.4(d)(ii) or
(iii)), solely to the extent reflected as a Liability in Final Net Working Capital. For the avoidance of doubt, regardless of the date on which the Closing occurs, the Sellers shall retain and pay when due the cash bonuses payable pursuant to
the MIP for calendar year 2010 to the Transferred China Employees who earned such bonuses. 
 (g) Nothing contained in this
Section 6.10 or any other provision of this Agreement, (i) shall be construed to establish, amend, or modify any benefit or compensation plan, program, agreement or arrangement, or (ii) create any third-party beneficiary rights
or obligations in any Person (including any Transferred Employee) other than the parties to this Agreement, including with respect to (x) any right to employment or continued employment or to a particular term or condition of employment with
Purchaser, the Purchased Entities or any of their respective Affiliates and (y) the ability of Purchaser or any of its Affiliates (including, following the Closing Date, the Purchased Entities) to amend, modify, or terminate any benefit or
compensation plan, program, agreement or arrangement at any time established, sponsored or maintained by any of them. 
 6.11
Indebtedness; Intercompany Accounts. 
 (a) No later than the Closing Date, (i) Honeywell shall discharge (or
otherwise cause to be extinguished), or shall cause Sellers or their applicable Subsidiaries (other than any of the Purchased Entities) to discharge (or otherwise cause to be extinguished), to the extent practicable, any and all Indebtedness
outstanding immediately prior to the Closing of the 

  
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Purchased Entities owed to any Person other than another Purchased Entity, and (ii) Honeywell shall, or shall cause Sellers or their applicable Subsidiaries to, terminate or cancel any and
all intercompany accounts and Contracts (excluding ordinary course arms’ length trade payables and receivables and the agreements set forth on Section 6.11(a) of the Disclosure Schedule) between any of Honeywell or its Subsidiaries
(other than any of the Purchased Entities), on the one hand, and any of the Purchased Entities, on the other hand. 
 (b) To
the extent that (i) any obligations of the Business (including the Purchased Entities) are secured by a letter of credit/bank guarantee or guarantee by Honeywell or any of its Affiliates (other than the Purchased Entities), Purchaser shall use
commercially reasonable efforts to (A) cause Purchaser or one of its Affiliates on or prior to the Closing Date to be substituted for Honeywell or any of its Affiliates (other than the Purchased Entities), as applicable, with respect to (and
cause Honeywell or such Affiliate to be released from) the financial and performance guarantees provided by Honeywell or any of its Affiliates relating to such obligation, and (B) cause to be issued letters of credit/bank guarantees as
replacement letters of credit/bank guarantees for ones issued by Honeywell or its Affiliates (collectively, “Honeywell L/Cs”) on or prior to the Closing Date and to use commercially reasonable efforts to have the Honeywell L/Cs
cancelled or terminated and (ii) any obligations of Honeywell or its Affiliates (other than the Purchased Entities) are secured by a letter of credit/bank guarantee or guarantee by the Purchased Entities, Honeywell shall use commercially
reasonable efforts to (A) cause Honeywell or one of its Affiliates (other than the Purchased Entities) on or prior to the Closing Date to be substituted for the Purchased Entities, as applicable, with respect to (and cause the Purchased
Entities to be released from) the financial and performance guarantees provided by any Purchased Entity relating to such obligation, and (B) cause to be issued letters of credit/bank guarantees as replacement letters of credit/bank guarantees
for ones issued by any Purchased Entity (collectively, “Purchased Entity L/Cs”) on or prior to the Closing Date and to use commercially reasonable efforts to have Purchased Entity L/Cs cancelled or terminated; provided,
however, that to the extent such guarantees cannot be extinguished or such letters of credit/bank guarantees cannot be replaced or terminated on or prior to the Closing, (x) Purchaser shall use commercially reasonable efforts to do so as
promptly as practicable following the Closing and shall indemnify and hold Honeywell and its Affiliates (other than the Purchased Entities) harmless from and against any and all Losses resulting from any payment after the Closing Date by any of
Honeywell or its Affiliates (other than the Purchased Entities) under the guarantees or letters of credit/bank guarantees referenced in clause (b)(i) of this Section 6.11 and (y) Honeywell shall use its commercially reasonable
efforts to do so as promptly as practicable following the Closing and shall indemnify and hold Purchaser harmless from and against any and all Losses resulting from any payment after the Closing Date by Purchaser or the Purchased Entities under the
guarantees or letters of credit/bank guarantees referenced in clause (b)(ii) of this Section 6.11. Prior to the Closing, Honeywell will cooperate with Purchaser in connection with the actions described in
Section 6.11(b)(i)(A). For purposes of this Section 6.11, “commercially reasonable efforts” shall include Honeywell or Purchaser, as the case may be, obtaining a letter of credit for which Purchaser or Honeywell, as
the case may be, is a beneficiary (on terms identical to the corresponding letter of credit) if the beneficiaries of such letter of credit do not agree to a substitution or replacement. 

  
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 6.12 Insurance
Matters. 
 (a) The Sellers shall use commercially reasonable efforts to keep, or cause to be kept, all insurance policies
presently maintained that are for the benefit of the Business, or substantially comparable replacements therefor, in full force and effect through the Closing. Coverage for the Business shall terminate as of the Closing Date under all such policies
other than any such policies solely and directly held by the Purchased Entities; provided that subject to the terms of the applicable Occurrence Policies and to Section 6.12(b), Occurrence Policies will remain in effect after the Closing
Date in respect of claims arising under such policies prior to the Closing Date. 
 (b) Prior to the Closing Date, Honeywell
shall use its reasonable efforts to cause any carriers who have underwritten any global and excess liability insurance policies and any other policies which provides insurance coverage to the Business on an “occurrence” basis or otherwise
covers any Purchased Assets (the “Occurrence Policies”) to continue to make coverage available to the Business for claims arising prior to the Closing Date, subject to the insurance policy’s or policies’ terms and
conditions. With respect to the Occurrence Policies, the Sellers shall, and shall cause their Affiliates to, use commercially reasonable efforts to assist Purchaser or the Purchased Entities, as applicable, subject to the terms of the applicable
Occurrence Policies, to pursue existing claims and assert new claims under such policies, and the Sellers will, and prior to the Closing Date will cause the Purchased Entities to, cooperate in such pursuit as reasonably requested by Purchaser
(including by giving Purchaser access to historical claim information relating to such policies as they relate to the Business) and Honeywell shall use commercially reasonable efforts to notify Purchaser where the limits of any applicable Occurrence
Policy may be exhausted. 
 6.13 Non-Solicitation of Employees. 

(a) Each of the Sellers agrees that from the Closing Date through the second anniversary of the Closing Date, without the prior written
consent of Purchaser, it will not, directly or indirectly, solicit or hire any Transferred Employee (other than clerical or non salaried employees); provided, however, the foregoing shall not prohibit any Seller from (i) engaging
in the general solicitation (whether by newspaper, trade publication or other periodical) of employees, so long as such solicitation is not directed specifically at Transferred Employees, or (ii) soliciting or hiring any such Transferred
Employee who has not been employed by Purchaser or Sensata Technologies, B.V. or any of its Subsidiaries within the three (3) month period prior to their solicitation or hiring. 

(b) Except for the Transferred Employees, Purchaser, on behalf of itself and its Affiliates, agrees that from the Closing Date through
the second anniversary of the Closing Date, without the prior written consent of Honeywell, it will not, directly or indirectly, solicit or hire any member of the pressure sensor engineering team or any engineer that develops Level 1 Technology, in
each case, that is employed by Honeywell’s Sensing and Control division at its Columbus, Ohio facility, its Freeport, Illinois Plant 4, or Richardson; provided, however, that if Purchaser or its Affiliates inquire of any person
whether he/she falls within the foregoing classification, Purchaser or such Affiliate will be entitled to rely on such person’s response without Liability under this Section 6.13(b) in connection with any untrue statements made by

  
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such person; provided, further, that (i) Purchaser or such Affiliate has no Knowledge that such person’s response is false or untrue and (ii) in the event that at any
time Purchaser obtains Knowledge that such person’s response was false or untrue, then Purchaser or such Affiliate shall promptly take all necessary steps to terminate the employment of such person; provided, further, that none of
the foregoing shall prohibit Purchaser or its Affiliates from (A) engaging in the general solicitation (whether by newspaper, trade publication or other periodical) of such employees, so long as such solicitation is not directed specifically at
such employees, or (B) soliciting or hiring any such employee who has not been employed by any Seller or any of their Subsidiaries within the three-month period prior to their solicitation or hiring. 

6.14 Non-Competition. 
 (a) For a period of three (3) years from the Closing Date, Honeywell will not, and Honeywell will cause its Subsidiaries not to, directly or indirectly, whether as principal, agent, partner, officer,
director, stockholder, employee, consultant or otherwise, alone or in association with any other Person, own, manage, operate, control, participate in, acquire more than 5% of (or the right to acquire more than 5% of) any class of voting securities
of (subject to the other provisions of this Section 6.14(a)), perform services for, or otherwise carry on, a business which manufactures, calibrates, tests, or sells any (i) pressure-based, Hall, magneto resistive, variable
reluctance based, vane and linear position or other sensors in Application-Specific Packaging for use in the Automotive Field; (ii) pressure sensors configured for exhaust applications in the Transportation Field; (iii) vane and linear
position sensors in Application-Specific Packaging for use in the Turbo Field; or (iv) Level 1.5 Modules for use within the Automotive Field or that are market competitive with Existing Products (a “Competing Business”);
provided that nothing in this Section 6.14 shall be deemed to limit in any way the activities of the Honeywell and its Affiliates with respect to (including the manufacture, calibration, testing, or sale of) (1) Optical
Products, (2) Thermal Products, (3) Current-Sensing Products, (4) surface and bulk acoustic wave-based products, (5) switches (basic electromechanical switches, pressure switches, Operator Controls), (6) test-and-measurement
products sold for use in laboratory and R&D applications, (7) compass sensor products, (8) sensor products developed independently by any division of Honeywell other than its Sensing and Control division (without use of any
Intellectual Property of Honeywell’s Sensing and Control division), or by any third party for use or sale by any division of Honeywell other than its Sensing and Control division, in either case which are any of the following: (A) Retained
Products as of the Closing Date and Acceptable Product Derivations thereof that are not products of the Sensing and Control division, or (B) any product that incorporates a sensor as a component thereof, and that provides material functionality
other than sensing (including, e.g., software used for engine and engine-component (including sensor) calibration and control (which may include components that contain sensors)), or (C) any sensor that was developed for use outside the
Automotive Field and which has not been intentionally modified to become a product for use in the Automotive Field); provided that Honeywell and its Affiliates shall not be limited in any respect with respect to the sale of sensors, either
individually or as included in turbochargers, turbocharger components or brakes or brake products (whether made by a Honeywell division other than its Sensing and Control division or by any third party), by Honeywell’s Turbocharger Technology
division to actuator suppliers or final customers for use in turbochargers or components or by Honeywell’s Friction Materials division to customers for use in brake products, (9) any non-sensor products (i.e., a product that has no
material sensor 

  
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functionality) made by any Honeywell division, (10) Flow Sensor Products, (11) electrostatic charge sensors, (12) humidity sensors, (13) fluid quality sensors, (14) gas
sensors and gas detection products (e.g., O2, NOx),
(15) sensors that are not Level 1.5 Modules, and are not in Application-Specific Packaging for use in the Automotive Field, which appear in Honeywell’s Sensing and Control division standard line guides and which are sold through
distributors (regardless of whether such distributors are Existing Customers); provided, however, that in connection with such sensor products, upon the request of a customer, Honeywell may provide to such customer custom calibration services
(but without modification of such sensor or the Packaging containing such sensor), (16) Level 1 Products or the Sleipnir ASIC, and (17) resistive film-based rotary position sensors that are assembled in and sold through Honeywell
Automation India Limited for throttle position sensing applications that do not embody or use any Intellectual Property used in the Business or otherwise licensed to Purchaser pursuant to the transactions contemplated herein, (products that are
included within the categories of products set forth in subsections (1) through (17) above are referred to in this Agreement as “Excluded Products”); provided further however, that if a specific Existing Product
that is listed on Section 2.4(c) of the Disclosure Schedule pursuant to clause (i) of the definition of “Existing Product” is included in one of the above categories of Excluded Products, that specific Existing Product and
Acceptable Product Derivations of that specific Existing Product shall not be considered an Excluded Product. The restrictions set forth in this Section 6.14(a) shall not be construed to prohibit or restrict the Sellers or any of their
respective Affiliates from acquiring any Person or business that engages in any Competing Business except to the extent that the Competing Business involves the manufacture, calibration, testing, or sale of products that are market competitive with
Existing Products and Acceptable Product Derivations as of the date of such acquisition (“Prohibited Acquired Entity Activities”) and such Prohibited Acquired Entity Activities (A) constitutes at the time of acquisition or at
any time until three (3) years from the Closing Date in excess of five percent (5%) of the revenues of the Person or business acquired, or (B) has at the time of acquisition or at any time until three (3) years from the Closing
Date more than Twenty Five Million Dollars ($25,000,000) per fiscal year in revenue, in which case the applicable Seller or Affiliate may acquire such Person or business but will use commercially reasonable efforts to divest that portion of such
Person or business that engages in the Prohibited Acquired Entity Activities (the “Prohibited Portion”) within nine (9) months after its acquisition of the Prohibited Portion, and, if not possible within such period, as soon as
practicable thereafter. Honeywell shall provide Purchaser with the exclusive opportunity to negotiate for a period of sixty (60) days with Honeywell with respect to the possible acquisition by Purchaser of all or substantially all of the
Prohibited Portion prior to entering into any negotiations or discussions with another Person with respect to such divestiture, such sixty (60) day period to commence on the date Purchaser receives written notice of the closing of any such
acquisition by Honeywell of such Prohibited Portion. If no definitive agreement for the sale of all or substantially all of the Prohibited Portion has been executed by Purchaser and Honeywell within such sixty (60) day period, Honeywell shall
have the right to take any and all actions necessary or appropriate to seek to consummate a sale of the Prohibited Portion. 

(b) Notwithstanding anything to the contrary in this Agreement, the prohibitions in Section 6.14(a) shall not apply to
(i) any businesses or operations of the Sellers or any of their respective Subsidiaries which are transferred to any third party (other than to a Subsidiary of any Seller) after the date hereof, or (ii) any Subsidiaries of any Sellers
control of which is transferred to any third party (other than to a Subsidiary of any Seller) after the date hereof. 

  
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 (c) The Sellers
acknowledge and agree that the covenants contained in this Section 6.14 are a material and substantial part of the transactions contemplated hereby and are entered into in connection with, and as an inducement to, the acquisition by
Purchaser of the Purchased Assets. 
 (d) The Sellers acknowledge and agree that the remedy at law for any breach, or
threatened breach, of any of the provisions of this Section 6.14 will be inadequate and, accordingly, the Sellers covenant and agree that Purchaser shall, in addition to any other rights and remedies which Purchaser may have at Law, be
entitled to equitable relief, including injunctive relief, and to the remedy of specific performance with respect to any breach or threatened breach of such covenant, as may be available from any court of competent jurisdiction. In addition, the
Sellers and Purchaser agree that the terms of the covenant in this Section 6.14 are fair and reasonable in light of Purchaser’s plans for the Business and are necessary to accomplish the full transfer of the goodwill and other
intangible assets contemplated hereby. In the event that any of the covenants contained in this Section 6.14 shall be determined by any court of competent jurisdiction to be unenforceable for any reason whatsoever, then any such
provision or provisions shall not be deemed void, and the parties hereto agree that said limits may be modified by the court and that said covenant contained in this Section 6.14 shall be amended in accordance with said modification, it
being specifically agreed by the parties that it is their continuing desire that this covenant be enforced to the full extent of its terms and conditions or if a court finds the scope of the covenant unenforceable, the court should redefine the
covenant so as to comply with applicable Law. 
 6.15 Business Confidential Information. 

(a) The Sellers acknowledge and agree that the books, records, data and other documents and confidential information concerning the
Business and/or the products, services, customer development information (including customer and prospect lists), sales activities and procedures, promotional and marketing techniques, pricing, plans and strategies, financing, development and
expansion plans and credit and financial data concerning customers and suppliers and other information of or to the extent relating primarily to the Business are considered by Purchaser to be confidential, and in some cases are in the nature of
trade secrets, and are valuable assets of the Business, access to and knowledge of which are essential to preserve the goodwill, customer relationships and ongoing business relationships of the Business for the benefit of Purchaser. The Sellers
further agree that all knowledge and information described in the preceding sentence that is not in the public domain (unless such knowledge and information is in the public domain as a result of a breach of this or any other confidentiality
agreement by the Sellers or any of their Affiliates) shall be considered confidential information (collectively, the “Business Confidential Information”). For the avoidance of doubt, the term Business Confidential Information shall
not include information to the extent it (i) does not relate to the Business, (ii) becomes available to the Sellers or any of their Affiliates on a non-confidential basis from a source other than Purchaser or, after the Closing, the
Purchased Entities; provided that to the Sellers’ or any of their Affiliates’ knowledge such source is not bound by a confidentiality agreement with or similar obligation to Purchaser or the Purchased

  
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Entities with respect to such information, (iii) is independently developed by the Sellers or any of their Affiliates under circumstances not involving a breach of this
Section 6.15, or (iv) is publicly disclosed pursuant to a lawful requirement or request from a Governmental Authority acting within its jurisdiction, or non-confidential disclosure is otherwise required by Law. 

(b) The Sellers hereby agree that following the Closing Date they shall hold the Business Confidential Information in confidence and not
use or disclose or cause or permit to be used or disclosed any of the Business Confidential Information for any reason or purpose whatsoever, except and to the extent any disclosure of Business Confidential Information is required by Law or
appropriate court order and sufficient advance written notice thereof, if legally permitted, is provided to Purchaser to permit Purchaser to seek a protective order or other appropriate remedy. The provisions of this Section 6.15 shall
expire on the fifth anniversary of the Closing. 
 6.16 Waiver of Conflicts and Attorney-Client Privilege.
Purchaser hereby waives, on its own behalf, and agrees to cause the Purchased Entities, after the Closing, to waive, (a) any conflicts that may arise in connection with any legal counsel that represents any of the Business (including the
Purchased Entities) in connection with this Agreement (the “Current Representation”) undertaking after the Closing the representation of any current stockholder, officer, employee or director of the Business (including the Purchased
Entities) (a “Post-Closing Representation”) and (b) their rights of attorney-client privilege with respect to any communication between such counsel and any such stockholder, officer, employee or director, occurring during the
Current Representation in connection with any Post-Closing Representation, including in connection with a dispute with Purchaser on or following the Closing. The Sellers hereby acknowledge that nothing in the foregoing shall be construed to restrict
certain advisors, including accountants and attorneys, that have represented and continue to represent the Sellers and their Subsidiaries from continuing to represent Purchaser and its Affiliates, including in connection with the transactions
contemplated by this Agreement, in accordance with the terms and conditions of any conflict waiver or similar documents entered into between the Sellers and such advisors. 
 6.17 Closing Cash Balance. Honeywell shall use its reasonable best efforts to cause all cash and cash equivalents held by HON Czech Controls as of the Closing to be transferred to
Honeywell or one or more of its Subsidiaries (other than the Purchased Entities) prior to the Closing; provided, however, that to the extent any cash or cash equivalents held by HON Czech Controls as of the Closing is not so
transferred prior to the Closing, the amount of such cash and cash equivalents not so transferred shall be included as a current asset in Final Net Working Capital. 
 6.18 Sellers’ Marks. Purchaser, each of its Affiliates and its and their respective directors, officers, successors, assigns, agents, or representatives shall not register, or
attempt to register, and shall not directly or indirectly use, in any fashion, including in signage, corporate letterhead, business cards, internet websites, marketing material and the like, or seek to register, in connection with any products or
services anywhere in the world in any medium, any Intellectual Property that includes, is identical to or is confusingly similar to, any of the trademarks, service marks, domain names, trade names or other indicia of origin owned by the Sellers,
including, but not limited to, the HONEYWELL mark and the Excluded Names 

  
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(collectively, “Sellers’ Marks”), nor shall any of them challenge or assist any third party in opposing the rights of the Sellers anywhere in the world in any such
Intellectual Property. Subject to the restrictions set forth herein, the Sellers hereby grant to Purchaser effective as of the Closing Date, a personal, nonexclusive, nontransferable (other than in the case of Purchaser assigning its rights
hereunder to one or more of its Affiliates or a third party in connection with a sale of all or substantially all of the Business), royalty-free license for six (6) months after the Closing Date, (a) to continue use of the Sellers’
Marks on signage, marketing materials and other materials, in each case, existing, in use and contained in the Purchased Assets or owned by the Purchased Entities as of the Closing Date, and (b) to continue use of the Sellers’ Marks in
inventory existing as of the Closing Date and in tools, dies and molds acquired by Purchaser hereunder which carry one or more of the Sellers’ Marks to be cast, struck or molded into inventory (and the inventory resulting from such use), in
each case, solely in a substantially similar manner as used by the Sellers in connection with the Business as of the Closing; provided, however, that (i) the term of the license in clause (b) shall be extended, for a period
reasonably necessary, but in no event longer than eighteen (18) months after the Closing Date, for Purchaser to dispose of, consume, or complete manufacture of all inventory included in the Purchased Assets or owned by the Purchased Entities as
of the Closing Date or created after the Closing Date in compliance with clause (b) above (which may include continuing a production run during such period; provided that such use is solely permitted: (A) where Purchaser in no way deviates
from the manner and placement of historical use of such Seller’s Marks; and (B) Purchaser cannot feasibly discontinue such usage without replacement of tool, die, or mold components during such production run), and (ii) Purchaser
shall not take any action or omit to take any action which may reasonably be expected to derogate, erode or tarnish the Sellers’ Marks, or otherwise diminish the value of the Sellers’ Marks or impair the goodwill associated with the
Sellers’ Marks. Purchaser shall in any event phase out such use of such tools, dies and molds as soon as is reasonably practicable, and, in particular, shall if practicable remove the cast for such marks from each such tool, die or mold on the
first occasion after the Closing Date when such tool, die or mold is refurbished. Except as expressly provided in this Section 6.18, such limited license shall terminate six (6) months after the Closing Date regardless of whether
any tool, die or mold has been refurbished; and all use by Purchaser of Seller’s marks in any manner shall cease. Notwithstanding the foregoing, promptly following the Closing Date, Purchaser shall take all steps within Purchaser’s control
or ability to change the names of the Purchased Entities to names not containing the word “Honeywell”; provided, however, that with respect to use of the name “Honeywell-Xin Yao Automotive Sensors (Shanghai) Co., Ltd.”,
Purchaser shall have a limited license until the effective time of the name change, so long as until the effective time of the name change, it restricts use of such name to those uses that cannot be substituted for an alternative name due to
applicable Chinese Law. All use of Sellers’ Marks as permitted hereunder shall inure to the benefit of the Sellers. 

6.19 Exclusivity. During the period from the date of this Agreement through the Closing or the earlier
termination of this Agreement pursuant to Article IX hereof, the Sellers shall not take, and shall cause the Purchased Entities not to take, or permit any other Person on their behalf to, initiate or engage in discussions or negotiations
with, or provide any information to, any Person (other than Purchaser and its representatives) concerning any merger or recapitalization involving the Purchased Entities, sale of Equity Interests, any sale of all or substantially all of the assets
of the Business or similar transaction involving the Business or any of the Purchased Entities (other than sales of inventory in the ordinary course of business). The 

  
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Sellers shall, and shall cause the Purchased Entities and their officers, directors, agents and representatives to, terminate any and all negotiations or discussions with any third party
regarding any proposal concerning any merger or recapitalization involving the Purchased Entities, sale of Equity Interests, any sale of all or substantially all the assets of the Business or other similar transaction. Honeywell shall, subject to
any contractual limitations, notify Purchaser if any formal written offer for the purchase of all or substantially all of the Business is received by Honeywell from a third party. 

6.20 Certain Payments. The Sellers shall, within any contractually required period and, if no such period exists,
within thirty (30) days from the Closing Date, pay all of Sellers’ and the Purchased Entities’ obligations under employee benefit arrangements, employment agreements, retention agreements, or other similar arrangements, in each case
as in effect immediately prior to the Closing Date, which come due as a result of the transactions contemplated hereby, including any stay or transaction bonuses. 
 6.21 Compliance with Letter Agreements. Purchaser and the Sellers shall comply in all respects with the terms and conditions of the letter agreements, as may be amended from time to time in
accordance with their respective terms, which are entered into on the date hereof or on the Closing Date by and between one or more of the Sellers and Purchaser. 
 6.22 HTT Supply Agreement. From the date hereof through the Closing, Honeywell and Purchaser shall make available such resources as are reasonably necessary or appropriate to the completion of, and
shall negotiate in good faith the terms and conditions of, the HTT Supply Agreement. 
 6.23 HTT Support Obligation. If
Honeywell and Purchaser do not agree to, and deliver duly executed counterparts of, a mutually acceptable HTT Supply Agreement at Closing, then for a period of five (5) years following the Closing (which period may be extended if mutually
agreed to by the parties), Purchaser shall, or shall cause its Affiliates to, fulfill all purchase orders received from HTT (up to the top projected volumes and pursuant to the sensor pricing Schedule included in Section 6.23 of the
Disclosure Schedule) with respect to the sensor products set forth in Section 3.3(a)(vii) of the Disclosure Schedule. For the avoidance of doubt, mutual agreement on an HTT Supply Agreement shall not be a condition to either
Sellers’ or Purchaser’s respective obligations to consummate the Closing. 
 ARTICLE VII 

CLOSING CONDITIONS 
 7.1 Conditions to Obligations of the Sellers and Purchaser. The respective obligations of each Seller, on the one hand, and Purchaser, on the other hand, to consummate the transactions contemplated
by this Agreement are subject to the fulfillment, on the Closing Date, of each of the following conditions: 
 (a) there shall
not be in effect any Governmental Order restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby and no suit, action or other proceeding shall be pending before any court or Governmental Authority that
would reasonably be expected to result in any such Governmental Order; and 

  
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 (b) any required
waiting periods (including any extension thereof) applicable to the consummation of the transactions contemplated by this Agreement under the HSR Act shall have terminated or expired and any required clearances, approvals or confirmations of the
transactions contemplated by this Agreement pursuant to any other foreign merger control or foreign investment clearances required by Law to be obtained before Closing shall have been received. 

7.2 Additional Conditions to Obligations of Purchaser. The obligation of Purchaser to consummate the transactions contemplated by
this Agreement is subject to the fulfillment, on the Closing Date, of each of the following conditions (any or all of which may be waived by Purchaser in whole or in part in its sole discretion): 

(a) the representations and warranties of the Sellers contained in Article IV of this Agreement (without giving effect to
any Business Material Adverse Effect, or materiality qualifiers therein) shall be true and correct on and as of the Closing Date (except to the extent such representations and warranties shall have been expressly made as of an earlier date, in which
case such representations and warranties shall have been true and correct as of such earlier date) with the same force and effect as if made on and as of the Closing Date, except to the extent that any failures of such representations and warranties
to be so true and correct would not individually or in the aggregate result in a Business Material Adverse Effect, and the representation in Section 4.6(b) shall be true and correct as of the Closing Date; 

(b) the Sellers shall have performed or complied in all material respects with all agreements and covenants required by this Agreement
to be performed or complied with by them on or prior to the Closing Date; 
 (c) the Sellers shall have delivered to Purchaser
a certificate executed by an officer of Honeywell that the conditions set forth in paragraphs (a) and (b) above have been satisfied; 
 (d) receipt of any and all Chinese Governmental Authority approvals of the transfer of HON China’s Equity Interest in HON Shanghai to Purchaser and the consent of any other third parties (including
the China Consent) required in connection with the transfer and assignment of HON China’s Equity Interest in HON Shanghai to Purchaser; and 
 (e) the Sellers shall have delivered to Purchaser those items set forth in Section 3.3(b), except for the item set forth in Section 3.3(b)(viii) (it being understood that such item
shall not be a condition to Purchaser’s obligation to consummate the transactions contemplated by this Agreement). 

7.3 Additional Conditions to Obligations of the Sellers. The obligations of the Sellers to consummate the transactions
contemplated by this Agreement are subject to the fulfillment, on the Closing Date, of each of the following conditions (any or all of which may be waived by the Sellers in whole or in part in their sole discretion): 

(a) the representations and warranties of Purchaser contained in Article V of this Agreement shall be true and correct on
the date hereof and on and as of the Closing Date (except to the extent such representations and warranties shall have been expressly made as of an earlier date, in which case such representations and warranties shall have been true and correct as
of such earlier date) with the same force and effect as if made on and as of the Closing Date, except to the extent that any failures of such representations and warranties to be so true and correct would not result in a Purchaser Material Adverse
Effect; 

  
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 (b) Purchaser shall
have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing Date; 

(c) Purchaser shall have delivered to the Sellers a certificate executed by an officer of Purchaser that the conditions set forth in
paragraphs (a) and (b) above have been satisfied; and 
 (d) Purchaser shall have delivered to the Sellers those
items set forth in Section 3.3(a), except for the item set forth in Section 3.3(a)(vii) (it being understood that such item shall not be a condition to Sellers’ obligation to consummate the transactions contemplated by
this Agreement). 
 ARTICLE VIII 
 CERTAIN TAX MATTERS 
 8.1 Tax Returns. Except as otherwise provided
in Section 8.5: 
 (a) The Sellers shall prepare and file or cause to be prepared and filed when due all Tax
Returns that are required to be filed by or with respect to the Business (including the Purchased Entities) for Tax periods ending before the Closing Date and, except as otherwise required by applicable Law, the Sellers shall prepare such Tax
Returns in a manner consistent with past practice and shall remit or cause to be remitted all Taxes shown as due on such Tax Returns (subject to the Sellers’ right to reimbursement from Purchaser for any such Taxes with respect to the Business
for which the Sellers do not indemnify Purchaser under Section 8.4). 
 (b) Purchaser shall prepare and file or
cause to be prepared and filed when due all Tax Returns that are required to be filed by or with respect to the Business (including the Purchased Entities) for Tax periods ending on or after the Closing Date (other than Tax Returns of the Sellers
for Tax periods ending on or after the Closing Date that include the Business (including the Purchased Entities) for periods ending prior to the Closing Date), and except as otherwise required by applicable Law, Purchaser shall prepare such Tax
Returns that relate to a period beginning before the Closing Date in a manner consistent with past practices and shall remit or cause to be remitted any Taxes due in respect of such Tax Returns (subject to Purchaser’s right to reimbursement
from the Sellers for any such Taxes for which the Sellers indemnify Purchaser under Section 8.4). 
 (c) Following
the Closing Date, no party shall file any amended Tax Return (unless required by any Governmental Authority) relating to the Purchased Entities for Tax periods ending before the Closing Date, without the prior written consent of the other party
(which consent shall not be unreasonably withheld). 

  
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 (d) The parties
acknowledge and agree that no election pursuant to Code Section 108(i) shall be made on any Tax Return of the Purchased Entities for any Tax period that begins prior to the Closing Date. 

8.2 Cooperation on Tax Matters; Contests. 
 (a) Purchaser and the Sellers shall cooperate in good faith, as and to the extent reasonably requested by the other party, in connection with the filing of Tax Returns pursuant to this
Article VIII and any audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the other party’s request) the provision of records and information which are reasonably
relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. Purchaser and the Sellers each agree
(i) to retain all books and records in its possession with respect to Tax matters pertinent to the Business and the Purchased Assets (including the Purchased Entities) relating to any taxable period beginning prior to the Closing Date until the
expiration of the statute of limitations (and, to the extent notified by the other party, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any Taxing Authority, and
(ii) to give the other party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other party so requests, to allow the other party to take possession of such books and records.

 (b) Purchaser and the Sellers further agree, upon request, to use commercially reasonable efforts to obtain any certificate
or other document from any Governmental Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including with respect to the transactions contemplated hereby). 

(c) With respect to any Tax Return described in Section 8.1(b) as to which an amount of Tax is allocable to, or would
otherwise be borne by, the Sellers or any of their Subsidiaries (other than the Purchased Entities), Purchaser shall provide the Sellers with a pro forma draft of the portion of such Tax Return (including all necessary supporting schedules and
information) reflecting only the tax items of the Business (including the Purchased Entities) at least 30 days prior to the due date (including any extension thereof) for the filing of such Tax Return, and the Sellers and their authorized
representatives shall have the right to review and comment on such Tax Return (including any supporting schedules or information) prior to the filing of such Tax Return. Any such comments shall be provided to Purchaser at least 10 days prior to such
due date. 
 (d) With respect to any Tax Return described in Section 8.1(a) that relate to the Purchased Entities
and are filed after the Closing Date, the Sellers shall provide Purchaser with a pro forma draft of such Tax Return (including all necessary supporting schedules and information) reflecting only the tax items of the Business (including the Purchased
Entities) at least 30 days prior to the due date (including any extension thereof) for the filing of 

  
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such Tax Return, and Purchaser and its authorized representatives shall have the right to review and comment on such Tax Return (including any supporting schedules or information) prior to the
filing of such Tax Return. Any such comments shall be provided to the Sellers at least 10 days prior to such due date. Purchaser shall at its own cost and expense fully and accurately complete and submit any Tax data packages required by the
Sellers within the time periods established by the Tax Department of Honeywell reasonably consistent with past practices. 

(e) Each party shall have the right to conduct and control in its sole and absolute discretion any audit or dispute with any Taxing
Authority relating to any Tax Returns it has the responsibility to file pursuant to this Article VIII; provided that (i) the Sellers shall consult with, and give reasonably participation rights to, Purchaser with respect to
the handling of any audit or dispute involving a Tax Return the Sellers have the responsibility to file pursuant to Section 8.1(a) if such audit or dispute would be reasonably expected to result in an increase in Tax Liability of
Purchaser or a Purchased Entity, and the Sellers shall not settle any such audit or dispute without the consent of Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed, and (ii) Purchaser shall consult with, and
give reasonably participation rights to, the Sellers with respect to the handling of any audit or dispute involving a Tax Return that Purchaser has the responsibility to file pursuant to Section 8.1(b) if such audit or dispute would be
reasonably expected to result in an increase in Tax Liability of any Seller or any Person that files a consolidated federal income Tax Return together with any Seller (and any state, local or foreign consolidated, unitary or combined Tax Return), or
in any Liability for which the Sellers have agreed to indemnify Purchaser pursuant to Section 8.4, and Purchaser shall not settle any such audit or dispute without the consent of the Sellers, which consent shall not be unreasonably
withheld, conditioned or delayed. If either party receives a notice of audit or claim for Taxes relating to any Tax Return that the other party has the responsibility to file pursuant to this Article VIII, the party receiving the notice or
claim shall promptly forward a copy thereof to the other party. 
 8.3 Tax Sharing Agreements. All Tax sharing agreements
or similar agreements relating to the sharing, allocation or indemnification of Taxes, or surrender of reliefs, with respect to or involving the Business, the Purchased Assets, or Purchased Entities shall be terminated as of the Closing Date and,
after the Closing Date, Purchaser, any of its Affiliates, and the Purchased Entities shall not be bound thereby or have any Liability thereunder. 
 8.4 Tax Indemnifications. 
 (a) The Sellers shall be liable for, and shall
indemnify and hold Purchaser and the Purchased Entities harmless against, Losses related to the following Taxes (except to the extent specifically reflected as a Liability in the computation of the Final Net Working Capital): (i) Taxes imposed
(A) on the Purchased Entities or (B) with respect to the Business or on the ownership or operation of the Purchased Assets, in each case, with respect to taxable periods ending before the Closing Date; (ii) with respect to taxable
periods beginning before the Closing Date and ending on or after the Closing Date (the “Straddle Period”), Taxes imposed (A) on the Purchased Entities, or (B) with respect to the Business or on the ownership or operation
of the Purchased Assets, in either case which are allocable, pursuant to Section 8.4(c), to the portion of such period ending on the day immediately prior to the Closing Date, and (iii) Taxes of the Sellers or any of their
Affiliates (other than the Purchased Entities), 

  
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but excluding any Taxes imposed on the ownership of the Purchased Assets, whether arising out of the transactions contemplated by this Agreement or otherwise, for any and all Tax periods.
Notwithstanding anything to the contrary above, with respect to any Straddle Period, any actions taken by the Purchased Entities outside the ordinary course of business on the Closing Date but on or before the Closing shall be deemed to occur in the
portion of such period ending on the day immediately prior to the Closing Date for purposes of this Section 8.4(a). 
 (b) The Sellers shall be liable for, and shall indemnify and hold Purchaser and the Purchased Entities harmless against, any successor or transferee Liability or other secondary or other non-primary
Liability imposed on Purchaser, any of its Affiliates, and, following the Closing, any of the Purchased Entities or Purchased Assets as a result of transactions or events occurring (including those contemplated by this Agreement), or contracts or
agreements entered into, prior to the Closing Date, or as a result of any Purchased Entity or Purchased Asset being part of or owned by, or ceasing to be part of or owned by, an affiliated, combined, consolidated, unitary, or other similar group
prior to the Closing (including any Liability for the unpaid Taxes of any Person under Treasury Regulation Section 1.1502-6, or any similar provision of state, local, or non-U.S. law). 

(c) In the case of Taxes that are payable with respect to the Straddle Period, the portion of any such Tax that is allocable to the
portion of the Straddle Period ending on the day immediately prior to the Closing Date shall be: 
 (i) in the
case of Taxes that are either (A) based upon or related to income or receipts, or (B) imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or intangible, including wages or payments to
other person) (other than conveyances pursuant to this Agreement), deemed equal to the amount which would be payable if the taxable year ended on day immediately prior to the Closing Date; provided, however any items determined on an
annual or periodic basis (including amortization and depreciation deductions) shall be allocated to the portion of the Straddle Period ending on the day immediately prior to the Closing Date by multiplying such amounts by a fraction, the numerator
of which is the number of days in the portion of the Straddle Period ending on the day immediately prior to the Closing Date and the denominator of which is the number of days in the entire Straddle Period; and 

(ii) in the case of Taxes other than those described in paragraph (i), deemed to be the amount of such Taxes for the
entire period (or, in the case of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding period), multiplied by a fraction the numerator of which is the number of calendar days in the period ending on the
day immediately prior to the Closing Date and the denominator of which is the number of calendar days in the entire Straddle Period. 
 Any
credit or refund resulting from an overpayment of Taxes for a Straddle Period shall be prorated based upon the method employed in this Section 8.4(c) taking into account the type of the Tax to which the refund relates. In the case of any
Tax based upon or measured by capital (including net worth or long term debt) or intangibles, any amount thereof required to be 

  
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allocated under this Section 8.4(c) shall be computed by reference to the level of such items on the day immediately prior to the Closing Date. All determinations necessary to effect
the foregoing allocations shall be made in a manner consistent with past practice of the Sellers. 
 (d) If Purchaser or a
Purchased Entity receives any credit or a refund of Taxes (excluding VAT imposed with respect to the transfer of the Purchased Assets) imposed with respect to the Business (including the Purchased Entities) (i) for any taxable period ending
prior to the Closing Date, or (ii) which are allocable, pursuant to Section 8.4(c), the portion of a Straddle Period ending prior the Closing Date, except to the extent any such credit or refund of Taxes (A) is specifically
reflected as an asset in the computation of Final Net Working Capital, (B) solely with respect to the Purchased Entities, results in any amount of Tax that the Sellers are not required to indemnify Purchaser for under this Agreement, or
(C) solely with respect to the Purchased Entities, arises as a result of the carryback of a loss or credit from a loss from a Tax period (or portion thereof) beginning on or after the Closing Date, then Purchaser shall promptly pay or cause to
be paid such amount (net of reasonable out-of-pocket costs incurred to obtain the refund) to the relevant Seller. For the avoidance of doubt, Purchaser and the Purchased Entities shall be entitled to waive any carryback of a loss or credit from a
Tax period beginning on or after the Closing Date to the extent permitted by Tax Law. Notwithstanding anything to the contrary contained in this Agreement, the Sellers make no representation, warranty or guaranty that any of the Purchased Entities
have or will have any Tax losses or Tax credits for any Tax period (or portion thereof) ending before the Closing Date that will carry forward to any Tax period (or portion thereof) beginning on or after the Closing Date. 

8.5 Certain Taxes. All transfer, documentary, sales, use, stamp, registration and other similar Taxes and fees (including any
penalties and interest, but excluding any value added Tax) (collectively, “Transfer Taxes”) incurred in connection with this Agreement and the Ancillary Agreements shall be borne 50% by Purchaser and 50% by the Sellers.
Notwithstanding anything in Section 8.1 to the contrary, any Tax Returns that must be filed in connection with Transfer Taxes shall be prepared by the party primarily or customarily responsible under applicable local Law for filing such
Tax Returns, and such party will provide such Tax Returns to the other party for such other party’s review and approval at least ten (10) days prior to the date such Tax Returns are due to be filed. Each party shall promptly pay all
Transfer Taxes to which it is responsible pursuant to this Section 8.5. 
 8.6 VAT. 

(a) The Sellers and Purchaser intend that and agree to use all reasonable endeavors to secure that the transfer of Purchased Assets
pursuant to this Agreement is treated as neither a supply of goods nor a supply of services for the purposes of any value added tax (“VAT”). 
 (b) If nevertheless any VAT is payable on the transfer of the Purchased Assets under this Agreement then Purchaser shall pay to the applicable Seller the amount of that VAT (excluding any interest and
penalties imposed) within five (5) business days of demand by the Sellers provided that the applicable Seller shall issue to the Purchaser a valid VAT invoice in respect of that VAT. 

  
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 (c) If and to the
extent Purchaser is unable to recover the VAT paid under Section 8.6(b) above from the Taxing Authorities within the later of (i) the customary recovery period or (ii) three (3) months from the date of payment under
Section 8.6(b), such non-recovered VAT shall be treated as a Transfer Tax for purposes of this Agreement and borne by the parties in a manner consistent with Section 8.5. If the claim to recover such VAT results in a VAT
audit by any Taxing Authority, the customary recovery period shall include, for the avoidance of doubt, the time necessary for such audit to conclude. To the extent any such non-recovered VAT is treated as a Transfer Tax and the VAT is subsequently
recovered by Purchaser after the Sellers have borne their share of such VAT, Purchaser shall pay over to the Seller 50% of any such recovered VAT, but in no event shall such payment exceed the amount paid by the Sellers to Purchaser with respect to
such VAT. 
 8.7 Check the Box Elections. The Sellers shall have the right to make an election under Treas. Reg.
Sec. 301.7701-3, effective prior to the Closing, for each Purchased Entity to be disregarded as an entity separate from its owner for U.S. federal income tax purposes. Such elections shall be filed on or before the Closing Date and Honeywell
shall provide Purchaser with true and accurate copies of all such elections on or before the Closing Date. 
 8.8 Wage
Reporting. The Purchaser and the Sellers agree to utilize, or cause their respective Affiliates to utilize, the standard procedure set forth in Revenue Procedure 2004-53 with respect to wage reporting. 

ARTICLE IX 

TERMINATION 
 9.1 Termination. This Agreement may be terminated at any time before the Closing Date as follows: 
 (a) by mutual written consent of the Sellers and Purchaser; 
 (b) by the Sellers
or Purchaser on or after April 30, 2011, if the Closing shall not have occurred by the close of business on such date, provided that the breach by the terminating party in any material respect of any of its covenants or other obligations
hereunder shall not be the principal cause of the failure of the Closing to occur by such date; and 
 (c) by the Sellers or
Purchaser if there shall be in effect a final nonappealable Governmental Order restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby. 

9.2 Effect of Termination and Abandonment. In the event of termination of this Agreement pursuant to this Article IX,
this Agreement (other than as set forth in Article I, the first sentence of Section 6.4(a), Section 6.5, Section 6.8, Section 9.2 and Article XI) shall become void and of no
effect with no Liability on the part of any party hereto (or any of its Affiliates or representatives); provided, however, that (a) no such termination shall relieve any party hereto from any Liability for damages resulting from
any willful and intentional breach of this Agreement and (b) the Confidentiality Agreement shall remain in full force and effect and survive any termination of this Agreement. 

  
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 ARTICLE X 

SURVIVAL; INDEMNIFICATION 
 10.1 Survival of Representations, Warranties and Agreements. The representations and warranties of the parties contained in this Agreement shall, subject to the last sentence of this
Section 10.1, terminate on the date that is one (1) year after the Closing Date, except that the representations and warranties contained in Section 4.1 (Corporate Status), Section 4.2 (Authority), the first
two sentences of each of Sections 4.4(a) and 4.4(b) (Capitalization), Section 4.21 (Finder’s Fee), Section 4.23 (Disclaimer of Other Representations and Warranties), Section 5.1 (Corporate
Status), Section 5.2 (Authority), Section 5.6 (Investment Intent), Section 5.7 (No Reliance), Section 5.8 (Finder’s Fee), and Section 5.9 (Disclaimer of Other Representations and
Warranties) shall survive indefinitely following the Closing, the representations and warranties in Section 4.l7 (Sufficiency of Assets) shall survive for eighteen (18) months after the Closing, the representations and warranties in
Section 4.11 (Environmental Matters) shall survive for three (3) years after the Closing, the representations and warranties in Section 4.8 (Intellectual Property) shall survive for two (2) years after the Closing,
the representations and warranties contained in Section 4.7 (Taxes) shall survive the Closing until 60 days following the expiration of the applicable statute of limitations (including any extensions) and the representations and
warranties in Section 4.20(b) (Products Liability; Warranty) shall survive for four (4) years after the Closing. All covenants and agreements contained herein which by their terms contemplate actions or impose obligations following
the Closing shall survive the Closing and remain in full force and effect in accordance with their terms. All covenants and agreements contained herein which by their terms contemplate full performance at or prior to the Closing shall terminate upon
the Closing, except that claims for indemnification in respect of any breach thereof shall survive until the date that is one (1) year after the Closing Date. The period of time a representation or warranty or covenant or agreement survives the
Closing pursuant to this Section 10.1 shall be the “Survival Period” with respect to such representation or warranty or covenant or agreement. In the event notice of any claim for indemnification under this
Article X shall have been given within the applicable Survival Period and such claim has not been finally resolved by the expiration of such Survival Period, the representations or warranties or covenants or agreements that are the
subject of such claim shall survive, but only to the extent of and in the amount of the claim as made prior to the expiration of the Survival Period, until such claim is finally resolved. 

10.2 Indemnification. Subject to the terms, conditions and limitations set forth in this Article X, from and after the
Closing Date: 
 (a) The Sellers shall indemnify and hold harmless Purchaser and its Affiliates (including after the Closing,
the Purchased Entities) and each of their respective officers, directors, members, managers and employees (collectively, the “Purchaser Indemnified Parties”) from and against any Losses that are imposed on or incurred by the
Purchaser Indemnified Parties arising out of (i) any breach of any representation or warranty made by the Sellers in Article IV, (ii) any failure to perform any covenant or agreement of the Sellers set forth in this Agreement,
or (iii) the Excluded Liabilities. 
 (b) Purchaser shall indemnify and hold harmless the Sellers and their Affiliates
(other than the Purchased Entities) and each of their respective officers, directors, 

  
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members, managers and employees (collectively, the “Seller Indemnified Parties”) from and against any Losses that are imposed on or incurred by Seller Indemnified Parties arising
out of (i) any breach of any representation or warranty made by Purchaser in Article V, (ii) any failure to perform any covenant or agreement of Purchaser set forth in this Agreement, (iii) the conduct and operation of the
Business (including the Purchased Entities) from and after the Closing, or (iv) the Assumed Liabilities. 
 (c) For
purposes of determining whether a breach or a violation of any representation or warranty in this Agreement has occurred, each representation or warranty in this Agreement will be read and construed to include all materiality, “in all material
respects,” Material Adverse Effect and other qualifiers expressly set forth in the applicable representation or warranty. However, the determination of the amount of a Loss resulting from a breach of any representation or warranty of the
Sellers contained in this Agreement shall be made by disregarding and not giving effect to any qualifiers as to “Business Material Adverse Effect,” “materiality,” “material Loss” or “in all material respects,”
or words of similar import, or, in the case of Section 4.6(c), the dollar threshold used in such representation or warranty, and instead interpreting such representation or warranty as if such terms were deleted. 

10.3 Indemnification Procedures. 
 (a) In order for a party (the “Indemnified Party”) to be entitled to any indemnification provided for under this Article X in respect of a claim made against the Indemnified
Party by any Person who is not a party to this Agreement (such claim, excluding any claims related to Taxes the procedures for which are covered in Section 8.2(d), a “Third-Party Claim”), such Indemnified Party must
notify the indemnifying party hereunder (the “Indemnifying Party”) in writing of the Third-Party Claim promptly following receipt by such Indemnified Party of notice of the Third-Party Claim; provided, however, that
failure to give such notification shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually prejudiced as a result of such failure. Thereafter, the Indemnified Party shall deliver to
the Indemnifying Party, promptly following the Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnified Party relating to the Third-Party Claim, other than those notices and
documents separately addressed to the Indemnifying Party. 
 (b) The Indemnifying Party will have the right to defend against,
negotiate, settle or otherwise deal with any Third-Party Claim which relates to any Losses, including a Product Recall, indemnifiable hereunder and to select counsel of its choice; provided that, unless otherwise expressly agreed in writing
by the Indemnified Party, the Indemnifying Party shall only be entitled to control the defense of the Third-Party Claim if (i) the Indemnifying Party shall acknowledge in writing its obligation to indemnify the Indemnified Party for any and all
Losses thereto (subject to the provisions set forth in this Agreement), (ii) the Third-Party Claim does not seek to impose on the Indemnified Party injunctive or other non-monetary relief, (iii) the Third-Party Claim does not involve any
material customer or material supplier of the Indemnified Party (except to the extent Losses arising from such Third-Party Claim constitute Excluded Liabilities, in which case the Indemnifying Party shall (subject to satisfaction of clauses
(i) and (ii) above) be entitled to control the defense of a Third-Party Claim that involves such a material customer or material supplier), (iv) the Third-Party Claim does not involve any

  
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executive officer or key employee of the Indemnified Party, and (v) at the time the Indemnifying Party receives notice of the Third-Party Claim, as a result of the application of the
applicable cap amount set forth in Section 10.4(a), the indemnification payments reasonably expected to be made by the Indemnifying Party in respect of such Third-Party Claim are less than the reasonably expected indemnifiable Loss of
the Indemnified Party as a result of such Third-Party Claim; provided that it is specifically agreed and acknowledged amongst the Parties that the Sellers shall control, defend against, negotiate, settle or otherwise deal with each of the
Third-Party Claims relating to the matters reflected on Sections 4.9 and 4.20 of the Disclosure Schedule. If the Indemnifying Party is not entitled to as a result of clauses (i), (ii), (iii), (iv) or (v) of the previous
sentence, or does not within 30 days of its receipt of notice of a Third-Party Claim pursuant to Section 10.3(a) elect to or otherwise fails to defend against or negotiate any Third-Party Claim which relates to any Losses indemnifiable
hereunder, the applicable Indemnified Party may defend against, negotiate, settle or otherwise deal with such Third-Party Claim except that, in the event the Indemnifying Party is not entitled to defend against, negotiate, settle or otherwise deal
with such a Third-Party Claim as a result of the application of clauses (i), (ii), (iii), (iv) or (v) of the previous sentence, the Indemnifying Party shall have the right to participate in the defense of any such Third-Party Claim,
including with respect to a Product Recall, upon reasonable request, to meet with the Indemnified Party or their representatives to discuss such Product Recall, and to have the reasonable opportunity to participate in any negotiation, settlement or
other discussions that the Indemnifying Party has with the party bringing such Third-Party Claim, any other party related to such Third-Party Claim, or any of their respective representatives, at its own cost and expense, and in no event will the
Indemnified Party have the right to settle any such Third-Party Claim without the consent of the Indemnifying Party, which consent shall not be unreasonably withheld. Without limiting the generality of the foregoing, Purchaser shall cooperate with
Sellers in connection with any testing, analyses and other support services that are conducted in connection with or in relation to any actual or proposed Product Recall pursuant to which Purchaser may seek indemnification under
Section 10.2(a)(i). If the applicable Indemnified Party defends any Third-Party Claim, then the Indemnifying Party shall promptly reimburse the applicable Indemnified Party for the out-of-pocket costs (including reasonable
attorneys’ fees and expenses) incurred in connection with the investigation, defense and/or settlement of any such Third-Party Claim upon submission of periodic bills. If the Indemnifying Party assumes the defense of any Third-Party Claim, the
applicable Indemnified Party may participate, at its own expense, in the defense of such Third-Party Claim; provided, however, that such applicable Indemnified Party will be entitled to participate in any such defense with separate
counsel at the expense of the Indemnifying Party if (i) so requested by the Indemnifying Party to participate or (ii) in the reasonable opinion of counsel to the applicable Indemnified Party, a conflict or potential conflict exists between
the applicable Indemnified Party and the Indemnifying Party that would make such separate representation advisable (each of clause (i) and (ii), a “Reimbursable Participation”); provided, further, that
Indemnifying Party will not be required to pay for more than one (1) such counsel for all Indemnified Parties in connection with any Third-Party Claim; and provided, further, that in any Third-Party Claim where an Indemnified
Party is not controlling the defense and which involves any customer or supplier of the Business, such participation shall include the right of the Indemnified Party to engage in direct discussions with the other parties to the Third-Party Claim,
including discussions concerning the claim and potential resolution thereof, subject to paragraph (c) below and subject to the following two sentences. Notwithstanding anything 

  
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herein to the contrary, the participation of the Indemnified Party in any discussion relating to the Third-Party Claim shall not alter any of the rights of the controlling party to control and
direct the defense of such Third-Party Claim, including the right to accept or reject any resolution proposed by the non-controlling party in such controlling party’s sole discretion. In connection with any discussions by an Indemnified Party
with any parties to a Third-Party Claim, such Indemnified Party shall, and in the case of a Purchaser Indemnified Party the Purchaser hereby agrees to cause such Indemnified Party to (i) fully disclose to all other parties that (A) the
non-controlling party is acting on its own behalf and not as a representative of the controlling party, and (B) the non-controlling party is not authorized to agree to any settlement with respect to such Third-Party Claim; and (ii) keep
confidential any non-public information relating to the Sellers or the Third-Party Claim. 
 (c) If the Indemnifying Party
chooses to defend or prosecute a Third-Party Claim, the Indemnified Party shall (and shall cause the other applicable Indemnified Parties to) cooperate in the defense or prosecution thereof at reasonable times upon reasonable notice and without
undue disruption of the Indemnified Party’s business, and the Indemnified Party’s actual out-of-pocket costs in such cooperation shall be indemnifiable Losses hereunder, except that the Indemnifying Party shall not be obligated to make any
payments with respect to fees and expenses of counsel retained by the Indemnified Party so long as the Indemnifying Party continues to defend such Third-Party Claim (other than as set forth in Section 10.3(b) in respect of a Reimbursable
Participation). If the Indemnifying Party assumes the defense of a Third-Party Claim, the Indemnified Party shall (and shall cause the other applicable Indemnified Parties to) agree to any settlement, compromise or discharge of a Third-Party Claim
that the Indemnifying Party may recommend and that (i) by its terms unconditionally obligates the Indemnifying Party (or its Affiliates) to pay the full amount of the Liability in connection with such Third-Party Claim, (ii) does not
require any payment or other action by any Indemnified Party, and (iii) unconditionally releases all Indemnified Parties in connection with such Third-Party Claim; it being understood that in no other event will the Indemnifying Party have the
right to settle any Third-Party Claim, regardless of whether the defense thereof has been assumed by the Indemnifying Party. If the Indemnifying Party elects not to assume the defense of a Third-Party Claim, the applicable Indemnified Parties shall
not admit any Liability with respect to, or settle, compromise or discharge, such Third-Party Claim without the Indemnifying Party’s prior written consent (which shall not be unreasonably withheld, conditioned or delayed). 

(d) In the event any Indemnified Party has a claim against any Indemnifying Party under this Article X that does not involve
a Third-Party Claim, the Indemnified Party shall deliver written notice of such claim to the Indemnifying Party promptly following the Indemnified Party becoming aware of the same. The failure by any Indemnified Party to so notify the Indemnifying
Party shall not relieve the Indemnifying Party from any Liability that it may have to such Indemnified Party under this Article X, except to the extent that the Indemnifying Party has been actually prejudiced by such failure. 

10.4 Indemnification Limitations. 
 (a) In no event shall the Sellers be liable for indemnification pursuant to Section 10.2(a)(i) (other than in respect of the representations and warranties in Section 4.1
(Corporate Status), Section 4.2 (Authority), the first two sentences of each of Section 4.4(a) and 

  
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4.4(b) (Capitalization), Section 4.7 (Taxes), and Section 4.21 (Finder’s Fee) (collectively, the “Excluded Representations”) and
Section 4.17 (Sufficiency of Assets)) unless and until the aggregate amount of all Losses with respect to Section 10.2(a)(i) that are imposed on or incurred by the Purchaser Indemnified Parties exceeds $1,400,000 (the
“Threshold Amount”), in which case the Purchaser Indemnified Parties shall be entitled to indemnification for all Losses from the first dollar, including both the Threshold Amount and any amounts in excess thereof. Notwithstanding
anything herein to the contrary, the Sellers shall not (i) be required to make payments for indemnification pursuant to Section 10.2(a)(i) (other than in respect of the Excluded Representations) in an aggregate amount in excess of
$18,000,000 (the “Indemnification Cap”), or (ii) be liable for indemnification with respect to any Loss by the Purchaser Indemnified Parties pursuant to Section 10.2(a)(i) (other than in respect of the Excluded
Representations) to the extent such Loss and all Losses arising out of the same facts and circumstances are, in the aggregate, less than $15,000 (each, a “De Minimis Loss”) (and such Losses shall be disregarded and shall not be
aggregated for purposes of the Threshold Amount unless and until such Losses arising out of the same facts or circumstances exceed the De Minimis Loss amount). Notwithstanding anything to the contrary herein, Sellers shall have ninety (90) days
after the receipt of an indemnification claim for any Loss by the Purchaser Indemnified Parties in respect of Section 4.20(b) (Products Liability; Warranty) in which to propose a commercially reasonable alternative to satisfy such claim,
including the repair, replacement or redelivery of any products that are the subject of such claim, which such commercially reasonable alternative is subject to the prior written approval of the Purchaser Indemnified Party, not to be unreasonably
withheld, conditioned or delayed (it being understood that any and all costs or other Losses imposed on or incurred by the Purchaser Indemnified Parties arising out of such alternative shall, subject to the terms, conditions and limitations
contained herein, be considered indemnifable Losses). Purchaser shall not be required to make payments for indemnification pursuant to Section 10.2(b)(i) in an aggregate amount in excess of the Indemnification Cap. 

(b) In calculating amounts payable to an Indemnified Party hereunder, the amount of any indemnified Losses shall be determined without
duplication of any other Loss for which an indemnification claim has been made or could be made under any other representation, warranty, covenant, or agreement and shall be computed net of (i) payments recovered by the Indemnified Party under
indemnification agreements or arrangements with third parties or under any insurance policy with respect to such Losses (after deduction for any cost of collection, deductible, retroactive premium adjustment, reimbursement obligation or other cost
or expense directly related thereto) (each, a “Collateral Source”), (ii) any prior recovery by the Indemnified Party from any Person with respect to such Losses, including by such Loss being included as a Liability in Final Net
Working Capital and actually resulting in an adjustment to the Purchase Price pursuant to Section 3.4(f), or (iii) any Tax Benefit actually received by a Purchased Entity with respect to such Losses in the year of the indemnity
payment or a prior year, but increased by the amount of any Tax detriment actually paid by any Indemnified Party as a result of such party’s receipt of the indemnification payment with respect to such Loss. In the event of any indemnification
claim paid, Honeywell may, in its sole discretion, require the Indemnified Party to grant to Honeywell an assignment of the right of such Indemnified Party to assert a claim against any Collateral Source. If the amount to be netted hereunder from
any payment required under this Article X or Article VIII is determined after payment of any amount otherwise required to be paid to an Indemnified Party under this Article X or Article VIII, the

  
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Indemnified Party shall repay to the Indemnifying Party, promptly after such determination, any amount that the Indemnifying Party would not have had to pay pursuant to this Article X
or Article VIII had such determination been made at the time of such payment. 
 (c) Subject to the other
provisions of this Article X, but notwithstanding any other provision of this Agreement, (i) in no event shall the Sellers or Purchaser be liable for any punitive damages, except to the extent such damages are payable to an
unaffiliated third party and (ii) in no event shall the Sellers be liable for any consequential damages (it being understood and agreed that the term “consequential damages” used herein shall not include damages related to lost
profits, diminution in value (including multiple of earnings or similar metrics for measuring damages), nor damages payable to an unaffiliated third party) arising out of indemnification claims for Excluded Liabilities described in
Sections 2.5(a)(iv), (v)(A), (vii)(B), (ix), (x), (xi), (xii), and (xiv) and Section 2.5(b)(vi) (each such indemnification claim, a “Business Related Excluded
Liabilities Claim”) in excess of $28,000,000; provided that the foregoing limitation on consequential damages shall not apply to the extent any such Excluded Liability relates to the Excluded Assets, the Purchased Entities’
Excluded Assets, or operation or conduct by the Sellers or any of their Affiliates of any business (other than the Business). Purchaser and the Sellers shall, and Purchaser shall cause the Purchaser Indemnified Parties to, in good faith,
(x) agree upon what portion of damages (if any) constitute consequential damages in connection with the settlement of a Business Related Excluded Liabilities Claim and (y) use their respective commercially reasonable efforts to cause the
applicable Governmental Authority to determine what portion of damages (if any) constitute consequential damages as part of any Governmental Order that is entered by such Governmental Authority in connection with a Business Related Excluded
Liabilities Claim. 
 (d) Notwithstanding anything else contained in this Agreement to the contrary, after the Closing,
indemnification and specific performance pursuant to the provisions of this Article X, Section 6.14 and Article VIII shall be the sole and exclusive remedy of the parties with respect to any and all claims
(whether in contract or in tort) arising out of or in connection with this Agreement, the Ancillary Agreements and the transactions contemplated hereby and thereby (other than remedies set forth in the Ancillary Agreements with regard to the
transactions contemplated thereby), including in respect of any misrepresentation or breach of any warranty, covenant or other provision contained in this Agreement or in any certificate delivered pursuant hereto. Without limiting the generality or
effect of the foregoing, as a material inducement to the Sellers entering into this Agreement, Purchaser hereby waives, from and after the Closing, any claim or cause of action, known and unknown, foreseen and unforeseen, which it or any of the
other Purchaser Indemnified Parties may have against any Seller or any of its Affiliates, including without limitation under the common law or federal or state securities Laws, trade regulation Laws or other Laws (including any relating to
Intellectual Property, products liability (including Products Liability Claims), Tax, environmental, real estate or employee matters), by reason of this Agreement and the transactions provided for herein, except for claims or causes of action
brought under and subject to the terms and conditions of the provisions contained in this Article X and Article VIII. All payments made pursuant to this Article X and Article VIII shall be made by the
Sellers to Purchaser or by Purchaser to the Sellers, as the case may be, and shall be deemed to be adjustments to the Purchase Price. Notwithstanding anything to the contrary herein, nothing in this Article X shall limit any claim by a
Purchaser Indemnified Party alleging that Sellers defrauded such Person by intentionally 

  
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omitting or misstating any disclosure in the Disclosure Schedule where such omission or misstatement constitutes a breach in any material respect of any express representation or warranty, which
claims shall, in any case, be subject to the provisions of Sections 4.23, 5.7(a)-(d), 11.7 and 11.8. 
 (e) The Sellers and Purchaser acknowledge and agree that the other parties would be damaged irreparably in the event any provision of this Agreement is not performed in accordance with its specific terms
or otherwise is breached, so that a party shall be entitled to injunctive relief to prevent breaches of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof. In particular, the parties acknowledge that the
Business is unique and recognize and affirm that in the event that the Sellers breach this Agreement, money damages would be inadequate and Purchaser would have no adequate remedy at law, so that Purchaser shall have the right, in addition to any
other rights and remedies existing in its favor, to enforce its rights and the Sellers’ obligations hereunder not only by action for damages but also by action for specific performance, injunctive, and/or other equitable relief. 

ARTICLE XI 

MISCELLANEOUS 
 11.1 Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made (a) on the date of delivery if
delivered personally, or by facsimile, upon confirmation of receipt, (b) on the first business day following the date of dispatch if delivered by a recognized next-day courier service, or (c) on the fifth business day following the date of
mailing if delivered by registered or certified mail return receipt requested, postage prepaid, and shall be delivered personally or mailed by registered or certified mail (postage prepaid, return receipt requested), sent by overnight courier or
sent by facsimile to the applicable party at the following addresses or facsimile numbers (or at such other address or facsimile number for a party as shall be specified by like notice): 

 

	 	(a)	if to any Seller: 

 Honeywell
International Inc. 
 101 Columbia Road 
 P.O. Box 4000 
 Morristown, New Jersey 07962 

Attention:        Senior Vice President and General Counsel 

Facsimile No.: (973) 455-4217 

  
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 with a copy (which
will not constitute notice) to: 
 Jenner & Block LLP 

353 N. Clark Street 
 Chicago, Illinois 60654 

Attention:        John F. Cox 

Facsimile No.: (312) 840-7396 
  

	 	(b)	if to Purchaser: 

 Sensata
Technologies, Inc. 
 529 Pleasant Street 
 Attleboro, Massachusetts 02703 

Attention:        General Counsel 

Facsimile No.: (508) 236-1960 
 with a copy (which will not constitute notice) to: 
 Kirkland & Ellis LLP

 300 N. LaSalle Street 
 Chicago, Illinois 60654 

Attention:        Jeffrey W. Richards, P.C. 

Facsimile No.: (312) 862-2200 
 11.2 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of
this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon a determination that any term or
other provision is invalid, illegal or incapable of being enforced, the Sellers and Purchaser shall negotiate in good faith to modify this Agreement so as to affect their original intent as closely as possible in an acceptable manner to the end that
the transactions contemplated hereby are fulfilled to the maximum extent possible. 
 11.3 Entire Agreement; No
Third-Party Beneficiaries. This Agreement, including all exhibits hereto, the Disclosure Schedule, the Ancillary Agreements, the Confidentiality Agreement and those certain letter agreements contemplated to be entered into by certain parties hereto
pursuant to Section 6.21 hereof constitute the entire agreement and supersede any and all other prior agreements and undertakings, both written and oral, among the parties hereto, or any of them, with respect to the subject matter hereof
and thereof and do not, 

  
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and are not intended to, confer upon any other Person (other than Sensata NV and its direct and indirect Subsidiaries as Purchaser Indemnified Parties pursuant to Sections 10.2(a) and
8.4) any rights or remedies hereunder. 
 11.4 Amendment; Waiver. This Agreement may be amended only in a writing
signed by all parties hereto. Any waiver of rights hereunder must be set forth in writing. A waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall not in any way affect, limit or waive any party’s
rights at any time to enforce strict compliance thereafter with every term or condition of this Agreement. 
 11.5
Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective legal representatives and successors and permitted assigns. Notwithstanding the foregoing, this Agreement shall
not be assigned by any party hereto by operation of Law or otherwise without the express written consent of each of the other parties; provided, however, that without the consent of the other parties hereto Purchaser may
(i) assign its right to purchase the Purchased Assets or the Purchased Entities, in whole or in part, to one or more of its Affiliates, (ii) assign its rights hereunder to the lenders under the Credit Agreement, dated April 27, 2006
(as amended), among Sensata Technologies, B.V., Sensata Technologies Finance Company, LLC, Sensata Technologies Intermediate Holding B.V., each lender from time to time party thereto and Morgan Stanley Senior Funding, Inc. as collateral security,
and (iii) assign its rights hereunder to a third party in connection with a sale of all or substantially all of the Business; provided, however, that no such assignment shall relieve Purchaser of any of its obligations hereunder.

 11.6 Disclosure Schedule. The Disclosure Schedule shall be construed with and as an integral part of this Agreement to
the same extent as if the same had been set forth verbatim herein. Any matter disclosed pursuant to the Disclosure Schedule shall not be deemed to be an admission or representation as to the materiality of the item so disclosed. 

11.7 Governing Law. Any and all claims, disputes or controversies in any way arising out of or relating to (a) this
Agreement, (b) any breach, termination or validity of this Agreement, (c) the transactions contemplated hereby or (d) any discussions or communications relating in any way to this Agreement or transactions contemplated hereby (the
“Transaction Matters”), and the existence or validity of any and all defenses to such claims, disputes or controversies, shall be governed and resolved exclusively by the Laws of the State of New York, notwithstanding the
existence of any conflict of laws principles that otherwise would dictate the application of any other state’s Law. Each party irrevocably and unconditionally waives any right to object to the application of New York Law or argue against
its applicability to any of the matters referenced in the immediately preceding sentence. 
 11.8 Dispute Resolution;
Mediation; Jurisdiction. 
 (a) In the event of any dispute, controversy or claim in any way arising out of or relating to the
Transaction Matters (a “Dispute”), upon the written notice of any party hereto, the parties hereto shall attempt to negotiate a resolution of the Dispute. If the parties hereto are unable for any reason to resolve a Dispute within
30 days after the receipt of such notice, the Dispute shall be submitted to mediation in accordance with Section 11.8(b). 

  
 94 

  
 (b) Any Dispute not
resolved pursuant to Section 11.8(a) shall, at the request of any party hereto (a “Mediation Request”), be submitted to non-binding mediation in accordance with the then current CPR Mediation Procedure (the
“Procedure”), except as modified herein. The mediation shall be held in New York, New York. The parties shall have 20 days from receipt by a party (or parties) of a Mediation Request to agree on a mediator. If no
mediator has been agreed upon by the parties within 20 days of receipt by a party (or parties) of a Mediation Request, then any party may request (on written notice to the other parties), that the CPR appoint a mediator in accordance with the
Procedure. All mediation pursuant to this clause shall be confidential and shall be treated as compromise and settlement negotiations, and no oral or documentary representations made by the parties during such mediation shall be admissible for any
purpose in any subsequent proceedings. No party hereto shall disclose or permit the disclosure of any information about the evidence adduced or the documents produced by the other parties in the mediation proceedings or about the existence, contents
or results of the mediation without the prior written consent of such other parties except in the course of a judicial or regulatory proceeding or as may be required by Law or requested by a Governmental Authority or securities exchange. Before
making any disclosure permitted by the preceding sentence, the party intending to make such disclosure shall give the other parties reasonable written notice of the intended disclosure and afford the other party a reasonable opportunity to protect
its interests. If the Dispute has not been resolved within 60 days of the appointment of a mediator, or within 90 days of receipt by a party (or parties) of a Mediation Request (whichever occurs sooner), or within such longer period as the
parties may agree to in writing, then any party may file an action on the Dispute in any court having jurisdiction in accordance with Section 11.8(c). 
 (c) Each of the parties hereby irrevocably and unconditionally submits to the exclusive jurisdiction of the courts of the State of New York located in New York City and the courts of the United
States of America located in New York City for any litigation arising out of or relating to the Transaction Matters (and agrees not to commence any litigation relating to the Transaction Matters except in such courts), and further agrees that
service of any process, summons, notice or document by U.S. registered mail to its respective address set forth in Section 11.1 shall be effective service of process for any litigation brought against it in any such court. Each of the
parties hereby irrevocably and unconditionally waives any objection to the laying of venue of any litigation arising out of the Transaction Matters in the courts of the State of New York located in New York City or the courts of the United
States of America located in New York City and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such litigation brought in any such court has been brought in an inconvenient
forum. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION ARISING OUT OF OR RELATING IN ANY WAY TO THE TRANSACTION MATTERS. 

11.9 Construction; Interpretation. When a reference is made in this Agreement to Articles, Sections, or Disclosure Schedule, such
reference is to an Article or a Section of, or the Disclosure Schedule to, this Agreement, unless otherwise indicated. The table of contents and headings contained in this Agreement are provided for convenience of reference purposes only and shall
not affect any meaning, construction or interpretation of this Agreement. When a reference is made in this Agreement to a party or parties, such reference is to parties to this 

  
 95 

 
Agreement, unless otherwise indicated. The language used in this Agreement is the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be
applied against any party. Each of the parties hereto has participated in the drafting and negotiation of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement must be construed as if drafted by all of the
parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship of any of the provisions of this Agreement. Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement. The phrase “ordinary course of business” when used in this Agreement shall be deemed to be followed by the words “consistent with past
practice.” All terms defined in this Agreement shall have the defined meanings when used in the Disclosure Schedule, the Ancillary Agreements, and any certificate or other document made or delivered pursuant hereto unless otherwise defined
therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. 

11.10 Counterparts. This Agreement may be executed simultaneously in one or more counterparts (including by facsimile or
electronic .pdf submission), and by the different parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which shall constitute one and the same agreement. 

[Signature Page Follows] 

  
 96 

  
 IN WITNESS WHEREOF,
the parties hereto have caused this Asset and Stock Purchase Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized. 

 

									
	SENSATA TECHNOLOGIES, INC.	 		 	HONEYWELL INTERNATIONAL INC.
					
	By:	 	 /s/ Jeffrey J. Cote
	 		 	By:	 	 /s/ Brian S. Cook

	Name:	 	 Jeffrey J. Cote
	 		 	Name:	 	 Brian S. Cook

	Title:	 	 Executive VP & Chief Financial Officer
	 		 	Title:	 	 VP Corporate Development

			
	HONEYWELL CO., LTD. (KOREA)	 		 	HONEYWELL SPOL S.R.O. (CZECH REPUBLIC)
					
	By:	 	 /s/ Brian S. Cook
	 		 	By:	 	 /s/ Brian S. Cook

	Name:	 	 Brian S. Cook
	 		 	Name:	 	 Brian S. Cook

	Title:	 	 VP Corporate Development
	 		 	Title:	 	 VP Corporate Development

			
	HONEYWELL AEROSPACE S.R.O.	 		 	HONEYWELL (CHINA) CO., LTD.
					
	By:	 	 /s/ Brian S. Cook
	 		 	By:	 	 /s/ Brian S. Cook

	Name:	 	 Brian S. Cook
	 		 	Name:	 	 Brian S. Cook

	Title:	 	 VP Corporate Development
	 		 	Title:	 	 VP Corporate Development

			
	HONEYWELL AUTOMATION INDIA LIMITED	 		 	HONEYWELL CONTROL SYSTEMS LIMITED
					
	By:	 	 /s/ Brian S. Cook
	 		 	By:	 	 /s/ Brian S. Cook

	Name:	 	 Brian S. Cook
	 		 	Name:	 	 Brian S. Cook

	Title:	 	 VP Corporate Development
	 		 	Title:	 	 VP Corporate Development

			
	HONEYWELL GMBH	 		 	HONEYWELL JAPAN INC.
					
	By:	 	 /s/ Brian S. Cook
	 		 	By:	 	 /s/ Brian S. Cook

	Name:	 	 Brian S. Cook
	 		 	Name:	 	 Brian S. Cook

	Title:	 	 VP Corporate Development
	 		 	Title:	 	 VP Corporate DevelopmentSonic Corp. Savings and Profit Sharing Plan

  
 Exhibit 10.10

 SONIC CORP. SAVINGS AND PROFIT SHARING PLAN 

Restatement Effective October 1, 2010 

  
 TABLE OF CONTENTS

  

							
	 ARTICLE I
	 	Definitions	  	 	1	  
			
	 1.1
	 	Account Balance	  	 	1	  
	 1.2
	 	Accounting Date	  	 	1	  
	 1.3
	 	Administrator	  	 	2	  
	 1.4
	 	Alternate Payee	  	 	2	  
	 1.5
	 	Annual Additions	  	 	2	  
	 1.6
	 	Beneficiary or Designated Beneficiary	  	 	2	  
	 1.7
	 	Break in Service	  	 	4	  
	 1.8
	 	Code	  	 	5	  
	 1.9
	 	Committee	  	 	5	  
	 1.10
	 	Compensation	  	 	5	  
	 1.11
	 	Disability	  	 	6	  
	 1.12
	 	Effective Date	  	 	6	  
	 1.13
	 	Eligible Employee	  	 	6	  
	 1.14
	 	Employee	  	 	7	  
	 1.15
	 	Employer	  	 	7	  
	 1.16
	 	Employment Commencement Date	  	 	7	  
	 1.17
	 	Entry Date	  	 	7	  
	 1.18
	 	ERISA	  	 	7	  
	 1.19
	 	Five Percent Owner	  	 	8	  
	 1.20
	 	Forfeiture	  	 	8	  
	 1.21
	 	Former Participant	  	 	8	  
	 1.22
	 	Highly Compensated Employee	  	 	8	  
	 1.23
	 	Hour of Service	  	 	8	  
	 1.24
	 	Individual Accounts	  	 	8	  
	 1.25
	 	Leased Employee	  	 	9	  
	 1.26
	 	Limitation Year	  	 	9	  
	 1.27
	 	Named Fiduciary	  	 	9	  
	 1.28
	 	Nonforfeitable	  	 	10	  
	 1.29
	 	Non-Highly Compensated Employee	  	 	10	  
	 1.30
	 	Normal Retirement Age	  	 	10	  
	 1.31
	 	Normal Retirement Date	  	 	10	  
	 1.32
	 	Participant	  	 	10	  
	 1.33
	 	Period of Severance	  	 	10	  
	 1.34
	 	Plan	  	 	10	  
	 1.35
	 	Plan Sponsor	  	 	10	  
	 1.36
	 	Plan Year	  	 	10	  
	 1.37
	 	Predecessor Employer	  	 	11	  
	 1.38
	 	Re-Employment Commencement Date	  	 	11	  
	 1.39
	 	Related Employer	  	 	11	  
	 1.40
	 	Required Beginning Date	  	 	11	  
	 1.41
	 	Service	  	 	12	  
	 1.42
	 	Severance from Employment Date	  	 	12	  

  
 i 

							
	 1.43
	 	Top-Heavy Plan	  	 	12	  
	 1.44
	 	Trust Agreement	  	 	16	  
	 1.45
	 	Trust Fund	  	 	16	  
	 1.46
	 	Trustee	  	 	16	  
	 1.47
	 	Valuation Date	  	 	16	  
	 1.48
	 	Year of Service	  	 	17	  
			
	 ARTICLE II
	 	Eligibility and Participation	  	 	18	  
			
	 2.1
	 	Eligibility Conditions	  	 	18	  
	 2.2
	 	Participation Election	  	 	18	  
	 2.3
	 	Participant Re-Entry	  	 	18	  
			
	 ARTICLE III
	 	Contributions	  	 	19	  
			
	 3.1
	 	Salary Deferral Contributions	  	 	19	  
	 3.2
	 	Catch-Up Contributions	  	 	21	  
	 3.3
	 	Matching Contributions	  	 	21	  
	 3.4
	 	Profit Sharing Contributions	  	 	22	  
	 3.5
	 	Rules Governing Deposits of Contributions	  	 	23	  
	 3.6
	 	Adjustment of Individual Accounts	  	 	23	  
	 3.7
	 	Gap Period Income on Distributed Excess Contributions and Excess Aggregate Contributions	  	 	24	  
	 3.8
	 	Participant Voluntary After Tax Contributions	  	 	24	  
			
	 ARTICLE IV
	 	Allocation of Employer Contributions to Individual Accounts	  	 	24	  
			
	 4.1
	 	Allocation of Contributions	  	 	24	  
	 4.2
	 	Application of Forfeitures	  	 	25	  
	 4.3
	 	Limitations on Allocations Under Code Section 415	  	 	25	  
	 4.4
	 	Top-Heavy Allocations	  	 	26	  
	 4.5
	 	Post-Allocation Adjustments to Accounts	  	 	27	  
			
	 ARTICLE V
	 	In-Service Distributions	  	 	28	  
			
	 5.1
	 	Withdrawal of Employer Contributions Before Severance From Employment	  	 	28	  
	 5.2
	 	Withdrawal of Salary Deferral Contributions Before Severance From Employment	  	 	28	  
	 5.3
	 	Hardship Distributions	  	 	29	  
	 5.4
	 	Qualified Reservist Distributions	  	 	30	  
			
	 ARTICLE VI
	 	Distributions After Severance from Employment	  	 	31	  
			
	 6.1
	 	Eligibility Due to Retirement, Death, or Disability	  	 	31	  
	 6.2
	 	Eligibility Due To Severance from Employment	  	 	31	  
	 6.3
	 	Vesting	  	 	32	  
	 6.4
	 	Forfeiture	  	 	32	  
	 6.5
	 	Determination of Amount of Vested Undistributed Account	  	 	33	  
	 6.6
	 	Payment of Benefits	  	 	33	  

  
 ii 

							
	 ARTICLE VII
	 	Mandatory Distribution of Benefits	  	 	34	  
			
	 ARTICLE VIII
	 	Forms of Distribution	  	 	35	  
			
	 8.1
	 	Forms of Payment of Benefits	  	 	35	  
	 8.2
	 	Direct Rollover Benefit	  	 	35	  
	 8.3
	 	Election to Receive Benefits	  	 	37	  
	 8.4
	 	Minority or Disability	  	 	38	  
	 8.5
	 	Unclaimed Account Procedure	  	 	38	  
			
	 ARTICLE IX
	 	Plan Sponsor and Employers	  	 	38	  
			
	 9.1
	 	Employer Action	  	 	38	  
	 9.2
	 	Plan Amendment	  	 	38	  
	 9.3
	 	Discontinuance, Termination of Plan	  	 	40	  
	 9.4
	 	Prohibition Against Reversion to Plan Sponsor or an Employer	  	 	41	  
	 9.5
	 	Adoption by Related Employers	  	 	41	  
	 9.6
	 	Authority of Administrator over Employers	  	 	44	  
	 9.7
	 	Deficiency of Earnings or Profits	  	 	44	  
			
	 ARTICLE X
	 	The Committee	  	 	44	  
			
	 10.1
	 	Committee Appointment	  	 	44	  
	 10.2
	 	Committee Action and Procedure	  	 	45	  
	 10.3
	 	Committee Powers and Duties	  	 	45	  
	 10.4
	 	Committee Reliance	  	 	46	  
	 10.5
	 	Committee Authority	  	 	46	  
	 10.6
	 	Conflicts of Interest	  	 	46	  
	 10.7
	 	Appointment of Agent and Legal Counsel	  	 	47	  
	 10.8
	 	Annual Accounting	  	 	47	  
	 10.9
	 	Funding Policy	  	 	47	  
			
	 ARTICLE XI
	 	Administration	  	 	47	  
			
	 11.1
	 	Administrator Appointment	  	 	47	  
	 11.2
	 	Summary Plan Description	  	 	47	  
	 11.3
	 	Summary Annual Report	  	 	48	  
	 11.4
	 	Individual Benefit Statements	  	 	48	  
	 11.5
	 	Copies of Additional Documents	  	 	48	  
	 11.6
	 	Documents Available for Examination	  	 	48	  
	 11.7
	 	Notice of Participant Rights under ERISA	  	 	48	  
	 11.8
	 	Notice to Participant on Participant Termination	  	 	48	  
	 11.9
	 	Notice to Trustee on Participant Termination	  	 	49	  
	 11.10
	 	Claims for Benefits	  	 	49	  
	 11.11
	 	Appeals of Decisions of the Committee	  	 	50	  
	 11.12
	 	Special Rules for Disability Claims	  	 	50	  
			
	 ARTICLE XII
	 	Investment of Trust Assets	  	 	52	  
			
	 12.1
	 	Appointment of Trustee	  	 	52	  
	 12.2
	 	Investment of Accounts	  	 	52	  
	 12.3
	 	Income and Expenses	  	 	53	  

  
 iii

							
	 12.4
	 	Exclusive Benefit	  	 	53	  
	 12.5
	 	Valuation	  	 	53	  
	 12.6
	 	Investment Policy	  	 	54	  
	 12.7
	 	Divestment of Employer Securities	  	 	54	  
			
	 ARTICLE XIII
	 	Participant Loans	  	 	55	  
			
	 13.1
	 	General	  	 	55	  
	 13.2
	 	Loan Policy	  	 	56	  
	 13.3
	 	Special Rules under USERRA for Loan Repayments	  	 	56	  
			
	 ARTICLE XIV
	 	Rollovers, Mergers, and Direct Transfers	  	 	56	  
			
	 14.1
	 	Participant Rollover Contributions	  	 	56	  
	 14.2
	 	Mergers and Direct Transfers	  	 	57	  
	 14.3
	 	Rules Concerning Certain Rollovers, Mergers, and Direct Transfers	  	 	58	  
			
	 ARTICLE XV
	 	Exclusive Benefit	  	 	58	  
			
	 15.1
	 	Exclusive Benefit	  	 	58	  
	 15.2
	 	Denial of Request for Approval	  	 	59	  
	 15.3
	 	Mistake of Fact	  	 	59	  
	 15.4
	 	Disallowance of Deduction	  	 	59	  
	 15.5
	 	Spendthrift Clause	  	 	59	  
	 15.6
	 	Termination	  	 	60	  
			
	 ARTICLE XVI
	 	Construction	  	 	61	  
			
	 16.1
	 	Headings	  	 	61	  
	 16.2
	 	Context	  	 	61	  
	 16.3
	 	Employment Not Guaranteed	  	 	61	  
	 16.4
	 	Waiver of Notice	  	 	62	  
	 16.5
	 	State Law	  	 	62	  
	 16.6
	 	Parties Bound	  	 	62	  
	 16.7
	 	Severance	  	 	62	  
	 16.8
	 	Employees in Qualified Military Service	  	 	62	  

  
 iv 

  
 Sonic Corp. Savings
and Profit Sharing Plan 
 Sonic Corp., a Delaware corporation (the “Plan Sponsor”), hereby adopts this
restatement of the Sonic Corp. Savings and Profit Sharing Plan (the “Plan”), effective October 1, 2010, or as otherwise specified herein. 
 R E C I T A L S: 
 WHEREAS, the Plan Sponsor has previously
established the Plan for the exclusive benefit of its eligible Employees and their Beneficiaries and those of the Employers; 

WHEREAS, the Plan Sponsor recognizes the lasting contribution made by its Employees to its successful operation and wants to
reward their contribution by continuing the Plan; 
 WHEREAS, the Plan Sponsor wishes to amend and restate the existing
Plan; 
 WHEREAS, the Plan Sponsor has authorized the execution of this Plan to ensure continued compliance with Sections
401(a) and 501(a) of the Internal Revenue Code of 1986, as amended by the Pension Protection Act of 2006, and the regulations promulgated thereunder; 
 WHEREAS, the provisions of this Plan, as amended and restated, will apply solely to an Employee who terminates employment with an Employer on or after the restated Effective Date of this Plan; and

 WHEREAS, if an Employee terminates employment with an Employer prior to the restated Effective Date, that Employee
will be entitled to benefits under the Plan as the Plan existed on the Employee’s termination date. 
 NOW,
THEREFORE, considering the premises and their mutual covenants, the Plan Sponsor agrees as follows: 
 ARTICLE I

 Definitions 
 The following terms used in this Plan will have the meanings set forth in this Article unless a different meaning is clearly indicated by the context: 

 

	1.1	Account Balance 

 The
amount standing in a Participant’s Individual Account(s) as of any date derived from both Employer Contributions and Employee Contributions, if any. 
  

	1.2	Accounting Date 

 The date
that is the last business day of each Plan Year or such other date as may be designated by the Administrator, but only if the Administrator has specifically requested the Trustee to prepare an accounting on or before such date. 

  
 1 

  

	1.3	Administrator 

 The
Committee, unless the Plan Sponsor designates another person to hold the position of Administrator by written action. 
  

	1.4	Alternate Payee 

 Any
spouse, former spouse, child, or other dependent of a Participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under the Plan with respect to such Participant. 

 

	1.5	Annual Additions 

 The sum
of the following additions to a Participant’s Individual Accounts for the Limitation Year: (i) Employer contributions (including Salary Deferral Contributions); (ii) Participant contributions; and (iii) Forfeitures, if any. For
purposes of this definition, Annual Additions to other Employer defined contribution plans (also taken into account when applying the limitations in Section 4.3(a)) include any voluntary employee contributions to an account in a qualified
defined benefit plan and any Employer contributions to an individual retirement account or annuity under Code Section 408 or to a medical account for a key employee under Code Sections 401(h) or 419A(d), except that the twenty five percent
(25%) of pay limit will not apply to employer contributions to a key employee’s medical account after his or her separation from employment. 
  

	1.6	Beneficiary or Designated Beneficiary 

  

	 	(a)	Beneficiary means any person or fiduciary designated by a Participant or Former Participant who is or may become entitled to receive benefits under the Plan following
the death of the Participant or Former Participant. A Beneficiary who becomes entitled to a benefit under the Plan will remain a Beneficiary under the Plan until the Trustee has fully distributed the benefits to the Beneficiary. A Beneficiary’s
right to information or data concerning the Plan, and the respective duties of the Administrator and the Trustee to provide to the Beneficiary information or data concerning the Plan, will not arise until the Beneficiary first becomes entitled to
receive a benefit under the Plan. For purposes of determining whether the Plan is a Top-Heavy Plan, a Beneficiary of a deceased Participant will be considered a Key Employee or a Non-Key Employee in accordance with the applicable Treasury
Regulations. 

  

	 	(b)	Each Participant and Former Participant may from time to time designate one or more Beneficiaries to receive benefits under this Plan on the death of the Participant or
Former Participant. The selection will be made in writing on a form provided by the Administrator and will be filed with the Administrator. Subject to Subsection (c) below, the last selection filed with the Administrator will control.

  
 2 

  

	 	(c)	Unless elected in accordance with Subsection (d) below, a Participant’s Beneficiary will be his or her spouse. Notwithstanding the foregoing, the Participant
may designate a Beneficiary other than the spouse if: 

  

	 	(i)	The Participant has no spouse; or 

  

	 	(ii)	The spouse cannot be located. 

  

	 	(d)	In the case of a married Participant or Former Participant, the designation of a non-spouse as Beneficiary will be valid only if: 

 

	 	(i)	The spouse consents in writing to the designation; 

  

	 	(ii)	The designation specifies the Beneficiary and the method of payment of benefits and may not be changed without spousal consent (or the spouse’s consent expressly
permits designations by the Participant without any requirement of further spousal consent); and 

  

	 	(iii)	The spouse’s consent acknowledges the effect of the election and the written consent is witnessed by a Plan representative or by a notary public.

  

	 	(e)	The spousal consent requirements of Subsection (d) do not apply if: 

  

	 	(i)	The Participant and spouse are not married throughout the one year period ending on the date of the Participant’s death; 

 

	 	(ii)	The Participant’s spouse is the Participant’s sole primary Beneficiary; 

 

	 	(iii)	The Administrator is not able to locate the Participant’s spouse; 

  

	 	(iv)	The Participant is legally separated or has been abandoned (within the meaning of State law) and the Participant has a court order to that effect; or

  

	 	(v)	Other circumstances exist under which the Secretary of the Treasury will excuse the consent requirement. 

If the Participant’s spouse is legally incompetent to give consent, the spouse’s legal guardian (even if the guardian is the
Participant) may give consent. 

  
 3 

  

	 	(f)	If a Participant dies without a spouse or alternative Beneficiary surviving; if the alternative Beneficiary (other than the spouse) does not survive until final
distribution of the Participant’s balance; if a Participant who is not married dies without having designated a Beneficiary and/or alternative Beneficiary; or if a Participant who is not married dies after having made and revoked a designation
but prior to having made a subsequent designation, then the amount remaining in the deceased Participant’s Individual Account will be payable in the following descending order to: 

 

	 	(i)	The Participant’s surviving descendants, including adopted persons and their descendants; 

 

	 	(ii)	The Participant’s other living heirs-at-law determined under state laws concerning intestate succession; 

 

	 	(iii)	The Participant’s estate, personal representatives, heirs or devisees; and 

 

	 	(iv)	the estate, personal representatives, heirs or devisees of the deceased Participant’s prior Beneficiary. 

The Administrator will determine the applicable person, class of persons, or legal entity to whom the benefit will be paid beginning with
clause (i), in the descending order of clauses (i) to (iv). Each class will be determined to be not in existence and, therefore, inapplicable by the Administrator before proceeding to the next class. In determining if a classification is
inapplicable, the Administrator will be required only to make reasonable inquiry into the existence of the person or persons. 
  

	 	(g)	Payment made pursuant to the power conferred on the Administrator in this Section will operate as a complete discharge of all obligations under the Plan concerning the
share of a deceased Participant and will not be subject to review by anyone but will be final, binding and conclusive on all persons for all purposes. 

  

	1.7	Break in Service 

  

	 	(a)	A Break in Service, for purposes of vesting, means a Period of Severance of 365 days. 

 

	 	(b)	An Employee will receive credit, for purposes of determining whether he has incurred a Break in Service, for the aggregate of all time period(s) commencing with the
Employment Commencement Date (or Re-Employment Commencement Date) and ending on the Severance from Employment Date. An Employee will also receive credit for any Period of Severance of less than 365 days. Fractional periods of a year will be
expressed in terms of days. 

  

	 	(c)	In the case of an Employee who is absent from work for “authorized reasons” or for “maternity or paternity reasons,” the 365-day period beginning on
the first anniversary of the first day of such absence will not be a Break in Service. 

  

	 	(i)	For purposes of this Section, absence from work for “authorized reasons” means an unpaid temporary cessation from active employment with the Employer pursuant
to an established nondiscriminatory policy, whether occasioned by illness, military service, or any other reason. 

  

	 	(ii)	For purposes of this Section, absence from work for “maternity or paternity reasons” means an absence from work for any period because of the pregnancy of the
individual, the birth of a child of the individual, the placement of a child with the individual relating to the adoption of such child by such individual, or for the purpose of caring for such child for a period beginning immediately following such
birth or placement. In the case of absence from work for “maternity or paternity reasons,” the period between the first and second anniversaries of the first date of absence due to said leave will be treated as neither a period of Service
nor a Period of Severance. 

  
 4 

  

	1.8	Code 

 The Internal
Revenue Code of 1986, as amended from time to time. A reference to a Code Section in this Plan means the provisions or successor provisions of the particular Code Section, as amended or replaced from time to time. 

 

	1.9	Committee 

 The Plan
Committee as from time to time constituted pursuant to Article X. 
  

	1.10	Compensation 

Compensation will include the total amount of salary, wages, commissions, bonuses, and overtime, paid or otherwise includable in the gross
income of a Participant during the Plan Year plus any amounts excluded from a Participant’s income pursuant to Code Sections 125, 132(f)(4), or 401(k), but excluding: 

 

	 	(a)	Contributions by the Employer and any Related Employer to any deferred compensation plan (to the extent the contributions are not included in the Participant’s
gross income for the taxable year in which contributed) or simplified employee pension under Code Section 408(k), to the extent the contributions are excludable from the Participant’s gross income (other than amounts exlcuded from a
Participant’s income pursuant to Code Sections 125, 132(f)(4), or 401(k)); 

  

	 	(b)	Distributions from any plan of deferred compensation, whether or not such amounts are includable in the gross income of the Employees when distributed;

  

	 	(c)	Amounts realized from the exercise of any nonqualified stock option, or when restricted stock becomes freely transferable or is no longer subject to a substantial risk
of forfeiture; 

  

	 	(d)	Amounts realized from the sale, exchange, or other disposition of stock acquired under a qualified stock option described in Part II, Subchapter D, Chapter 1 of the
Code; 

  

	 	(e)	Premiums paid by the Employer and any Related Employer, for group term life insurance (to the extent the premiums are not includable in the Participant’s gross
income); contributions by the Employer and any Related Employer, to an annuity under Code Section 403(b) (to the extent not includable in the Participant’s gross income, and any other amounts received under any Employer fringe benefit plan
sponsored by the Employer or any Related Employer (to the extent not includable in the Participant’s gross income); and 

  
 5 

  

	 	(f)	 Severance pay, unfunded nonqualified deferred compensation, or parachute payments, if paid after termination of employment, even if paid within two and
one half (2 1/2) months thereafter.

 Notwithstanding the foregoing, Compensation will not include amounts that would otherwise satisfy the
definition of Compensation but are paid during the determination period while the Employee is not a Participant in the component of the Plan for which the definition is being used. 

 

	1.11	Disability 

 The inability
to engage in any substantial, gainful activity because of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than twelve
(12) months. 
  

	1.12	Effective Date 

 The
original Effective Date of this Plan is January 1, 1978. The Effective Date of this Plan, as restated herein, is October 1, 2010, or as otherwise specified herein. 

 

	1.13	Eligible Employee 

 Each
Employee other than: 
  

	 	(a)	An Employee whose terms and conditions of employment are governed by a collective bargaining agreement, unless such agreement provides for coverage under the Plan;

  

	 	(b)	A nonresident alien who receives no earned income from the Employer that constitutes income from sources within the United States; 

 

	 	(c)	A Leased Employee; 

  

	 	(d)	An individual who is deemed to be an Employee pursuant to Treasury Regulations issued under Code Section 414(o); 

 

	 	(e)	An Employee who has waived participation in the Plan through any means, including, but not limited to, through a written agreement with the Employer (including an offer
letter setting forth the terms and conditions of employment) that provides that the Employee is not eligible to participate in the Plan. (A general statement in the agreement, offer letter, or other communication stating that the Employee is not
eligible for benefits will be construed to mean that Employee is not an Eligible Employee.); and 

  
 6 

  

	 	(f)	A special project employee, which, as used herein, means an Employee who is hired for the purpose of participating or otherwise assisting in a particular, discrete
project which is anticipated to be completed in less than one (1) year. 

  

	 	(g)	An Employee who is employed by Sonic Restaurants, Inc. and is classified as an hourly employee and whose primary place of work on a day-to-day basis is a Sonic Drive-In
restaurant. 

 Notwithstanding any provision of the Plan to the contrary, no individual who is designated,
compensated, or otherwise classified or treated by the Employer as an independent contractor or other non-common law employee will be eligible to become a Participant even if a court or administrative agency determines that the individual is a
common law employee. 
  

	1.14	Employee 

 An individual
is an Employee only if he or she is reported on the payroll records of an Employer as a common law employee. This term does not include any other common law employee or any Leased Employee. In particular, it is expressly intended that an individual
not treated as a common law employee by the Employers on their payroll records is excluded from Plan participation even if a court or administrative agency determines that the individual is a common law employee. 

 

	1.15	Employer 

 The Plan
Sponsor and any entity that is related to the Plan Sponsor, or that is a recipient of the services of a Leased Employee pursuant to a written agreement with the Plan Sponsor, and who elects to adopt this Plan pursuant to Article IX. Effective as of
April 1, 2010, the sole Employers are: Sonic Corp., Sonic Industries Services Inc., and Sonic Restaurants, Inc. 
  

	1.16	Employment Commencement Date 

 The date on which an Employee is first entitled to credit for an Hour of Service. 
  

	1.17	Entry Date 

 An Eligible Employee’s Entry Date is the first day of the calendar quarter (January 1st, April 1st, July 1st, October 1st) next following the date on which the Eligible Employee satisfies the eligibility criteria set forth in
Section 2.1. 
  

	1.18	ERISA 

 The Employee
Retirement Income Security Act of 1974, as amended. 

  
 7 

  

	1.19	Five Percent Owner 

 A
Participant who owns, or is considered as owning within the meaning of Code Section 318, more than five percent (5%) of the outstanding stock of the Employer or stock possessing more than five percent (5%) of the total combined voting
power of all stock of the Employer; or in the case of an unincorporated business, any person who owns more than five percent (5%) of the capital or profits interest in the Employer. 

 

	1.20	Forfeiture 

 The loss, by
a Participant or Beneficiary, of that part of the benefit that the Participant or Beneficiary otherwise would have received under the Plan at any time prior to the termination of the Plan or the complete discontinuance of benefits under the Plan,
arising from the Participant’s severance of employment. 
  

	1.21	Former Participant 

 Any
individual who (i) has been a Participant in the Plan, but who is either no longer employed by the Employer or is otherwise no longer eligible to participate; and (ii) has not yet received the entire benefit to which the individual is
entitled under the Plan or incurred a five (5) year Break in Service. 
  

	1.22	Highly Compensated Employee 

 Any Participant or Former Participant who is a Highly Compensated Employee as defined in Code Section 414(q). Generally, any Participant or Former Participant is considered a Highly Compensated
Employee if, during the Plan Year (the “Determination Year”) or during the twelve month period immediately preceding the Determination Year, the Participant or Former Participant: 

 

	 	(a)	Was at any time during the Plan Year or during the preceding Plan Year a Five Percent Owner; or 

 

	 	(b)	For the preceding Plan Year (i) had Compensation from the Employer in excess of $80,000, as adjusted by the Secretary of the Treasury for the relevant year, and
(ii) if elected, was part of the top-paid twenty percent (20%) group of Employees (based on Compensation for the preceding Plan Year). 

  

	1.23	Hour of Service 

 An Hour
of Service is each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer during the applicable computation period. 
  

	1.24	Individual Accounts 

Accounts or records maintained by the Administrator or its agent indicating the monetary value of the total interest in the Trust Fund of
each Participant, each Former Participant, and each Beneficiary. The types of Individual Accounts under this Plan are: 
  

	 	(a)	Employer Contribution Accounts. The types of Employer Contribution Accounts maintained by this Plan are: 

 

	 	(i)	Matching Contribution Accounts holding Employer Contributions made to the Plan for the benefit of an Employee because of a Matching Contribution made with
respect to the Employee. 

  

	 	(ii)	Profit Sharing Contribution Accounts holding Profit Sharing Contributions made to the Plan for the benefit of an Employee that the Employee could not have
elected to receive in the form of cash or other taxable benefit, if any. 

  
 8 

  

	 	(b)	Participant Contribution Accounts. The types of Participant Contribution Accounts maintained by this Plan are: 

 

	 	(i)	Rollover Accounts holding the Participant’s qualified rollover to the Plan pursuant to Article XIV. 

 

	 	(ii)	Salary Deferral Contribution Accounts holding the amounts contributed by the Employer on behalf of a Participant as the result of an election by the Participant
to have that amount contributed to the Plan rather than paid as cash or other taxable benefit pursuant to Sections 3.1 and 3.2. 

  

	1.25	Leased Employee 

 An
individual who otherwise is not an Employee of the Employer, and who, pursuant to a leasing agreement between the Employer and a leasing organization, has performed services for the Employer (or for the Employer and any persons related to the
Employer within the meaning of Code Section 414(n)(6)) on a substantially full time basis for at least one (1) year (unless such individual is otherwise earlier considered a Leased Employee treated as an Employee of the Employer pursuant
to the eligibility conditions elected by an Employer) and such services are performed under the primary direction or control of the Employer. 
  

	1.26	Limitation Year 

 The Plan
Year, as such term is defined in this Article I. 
  

	1.27	Named Fiduciary 

 One or
more fiduciaries named in this Plan who jointly and severally will have authority to control or manage the operation and administration of the Plan. The Administrator will be the Named Fiduciary unless the Plan Sponsor designates another person by
written action. 

  
 9 

  

	1.28	Nonforfeitable 

 A vested
interest attained by a Participant or Beneficiary in that part of the Participant’s benefit under the Plan arising from the Participant’s Service, which claim is unconditional and legally enforceable against the Plan. 

 

	1.29	Non-Highly Compensated Employee 

 An Employee, former Employee, or Beneficiary who is not a Highly Compensated Employee. 
  

	1.30	Normal Retirement Age 

The date the Participant attains age sixty-five (65) years. 

 

	1.31	Normal Retirement Date 

The first day of the month coincident with or next following the date the Participant attains Normal Retirement Age. 

 

	1.32	Participant 

 An Eligible
Employee of the Employer who has met the eligibility requirements of this Plan and who has been enrolled as a Participant in this Plan. 
  

	1.33	Period of Severance 

 The
period of time commencing on the Severance from Employment Date and ending on the date on which the Employee again performs an Hour of Service for the Employer. 
  

	1.34	Plan 

 The qualified
retirement plan embodied in this Plan, as amended from time to time, designated as the Sonic Corp. Savings and Profit Sharing Plan. 
  

	1.35	Plan Sponsor 

 Sonic
Corp., and any successor corporation or business organization that may be substituted for the Plan Sponsor under this Plan. 
  

	1.36	Plan Year 

 The twelve
(12) consecutive month period from January 1 of each year to the next following December 31. 

  
 10 

  

	1.37	Predecessor Employer 

 A
business organization, all or a portion of whose assets and business has been acquired by the Employer, whether by merger, stock purchase, or acquisition of the assets and business of the business organization. 

 

	1.38	Re-Employment Commencement Date 

 The first date, following a Period of Severance that is not required to be considered under the Service rules, on which the Employee performs an Hour of Service for the Employer. 

 

	1.39	Related Employer 

 A
related group of employers is a controlled group of corporations (defined in Code Section 414(b)), trades or businesses (whether or not incorporated) that are under common control (defined in Code Section 414(c)) or an affiliated service
group (defined in Code Section 414(m) or in Code Section 414(o)). If the employer is a member of a related group, the term “Employer” includes the related group members for purposes of determining Service and Breaks in Service
under Articles II and VI, applying the coverage test of Code Section 410(b), applying the limitations on allocations in Article IV, applying the top-heavy rules and the minimum allocation requirements of Article IV, the definitions of Employee,
Highly Compensated Employee, Compensation, and Leased Employee, and for any other purpose required by the applicable Code Section or by a Plan provision. However, a Related Employer may contribute to the Plan only by being an Employer under the
Plan. If one or more of the Plan Sponsor’s related group members become Employers, the term “Employer” includes the participating related group members for all purposes of the Plan. For Plan allocation purposes, Compensation does not
include Compensation received from a Related Employer that is not participating in this Plan. 
  

	1.40	Required Beginning Date 

  

	 	(a)	For a Participant who is a Five Percent Owner, the Required Beginning Date will commence on the first day of April following the later of: 

 

	 	(i)	 The calendar year in which the Participant attains age seventy and one-half (70 1/2) years; or 

 

	 	(ii)	The earlier of the calendar year with or within which ends during the Plan Year in which the Participant becomes a Five Percent Owner, or the calendar year in which the
Participant retires. 

  

	 	(b)	For a Participant who is not a Five Percent Owner, the Required Beginning Date is the first day of April of the calendar year immediately following the later of:

  

	 	(i)	 The calendar year in which the Participant attains age seventy and one-half (70 1/2); or 

 

	 	(ii)	The calendar year in which the Participant terminates employment with the Employer. 

  
 11 

  

	1.41	Service 

 Service includes
any period of time commencing on the Employee’s Employment Commencement Date (or Re-Employment Commencement Date) and ending on the Employee’s Severance from Employment Date. Service will be determined using the elapsed time method as
defined in Treasury Regulation Section 1.410(a)-7. 
  

	 	(a)	Service in all cases includes periods during which the Employee is on a leave of absence for “authorized reasons” or for “maternity or paternity
reasons” pursuant to the definition of Break in Service. Leaves of absence also will include periods of absence in connection with military service during which the Employee’s re-employment rights are legally protected. Except for absence
by reason of military service, leaves of absence will be for a maximum period of two (2) years. Leaves of absence will be granted on a uniform and nondiscriminatory basis. 

 

	 	(b)	If the Employer is a member of a group of Related Employers, then Year of Service will include Service with any Related Employer for the period during which such
Employers are related. If the Employer maintains the plan of a Predecessor Employer, Service will include service for the Predecessor Employer. Service will include service of the Employee with any Predecessor Employer, as required under Treasury
Regulation Section 1.411(a)-5(b)(3)(iv). 

  

	 	(c)	Years of Service will include military service required to be counted for vesting purposes under Section 16.8. 

 

	1.42	Severance from Employment Date 

 The date on which occurs the earlier of: (i) the Employee quits, retires, is discharged, or dies; or (ii) the first anniversary of the first date of a period in which an Employee remains absent
from Service, with or without pay, with the Employer for any other reason, such as vacation, holiday, sickness, Disability, leave of absence or layoff. 
  

	1.43	Top-Heavy Plan 

 For
purposes of determining Top-Heavy Plan status, each Employer and its Related Employers will be deemed to maintain a separate plan. Related Employers will be considered a single employer for purposes of applying the limitations of this Section.
However, Employers who are not Related Employers, but receive services of Employees of the Employer under an employee leasing arrangement will be treated as separate employers for purposes of these top-heavy rules. 

A Plan will be a Top-Heavy Plan in any Plan Year in which, as of the Determination Date, (i) the Present Value of Accrued Benefits of
Key Employees, or (ii) the sum of the Aggregate Accounts of Key Employees of any plan of an Aggregation Group, exceeds sixty percent (60%) of the Present Value of Accrued Benefits or Aggregate Accounts of all Participants under this Plan
and any plan of an Aggregation Group. 

  
 12 

  
 If any Participant is a
Non-Key Employee for any Plan Year, but the Participant was a Key Employee for any prior Plan Year, the Participant’s Aggregate Account balance will not be taken into account in determining whether this Plan is a Top-Heavy Plan (or whether any
Aggregation Group that includes this Plan is a Top-Heavy Group) as further defined in Code Section 416(g) and the applicable Treasury Regulations. 
 For purposes of determining Top-Heavy Plan status, the following definitions will apply: 
  

	 	(a)	Aggregate Account means, as of the Determination Date, the sum of: 

  

	 	(i)	The Participant Contribution Account and Employer Contribution Account balances as of the most recent Valuation Date occurring within a twelve (12) month period
ending on the Determination Date; 

  

	 	(ii)	The contributions that would be allocated as of a date not later than the Determination Date, even though those amounts are not yet made or required to be made;

  

	 	(iii)	Any plan distributions made during the Determination Period (however, in the case of distributions made after the Valuation Date and prior to the Determination Date,
such distributions are not included as distributions for Top-Heavy purposes to the extent that the distributions are already included in the Participant’s Aggregate Account balance as of the Valuation Date); 

 

	 	(iv)	Any Employee contributions, whether voluntary or mandatory; 

  

	 	(v)	Regarding unrelated rollovers and plan-to-plan transfers (those that are (i) initiated by the Employee and (ii) made from a plan maintained by one employer to
a plan maintained by another employer), if this Plan provides for rollovers or plan-to-plan transfers, an unrelated rollover or plan-to-plan transfer will be considered as a distribution for purposes of this Section. If this Plan is the plan
accepting an unrelated rollover or plan-to-plan transfer, an unrelated rollover or plan-to-plan will not be considered as part of the Participant’s Aggregate Account balance; 

 

	 	(vi)	Regarding related rollovers and plan-to-plan transfers (those either (i) not initiated by the Employee or (ii) made to a plan maintained by the same
Employer), if this Plan provides for rollovers or plan-to-plan transfers, a related rollover or plan-to-plan transfer will be considered as a distribution for purposes of this Section. If this Plan is the plan accepting a related rollover or
plan-to-plan transfer, a related rollover or plan-to-plan transfer will be considered as part of the Participant’s Aggregate Account balance, irrespective of the date on which the related rollover or plan-to-plan transfer is accepted; and

  
 13 

  

	 	(vii)	The accounts of Participants who are Leased Employees, for purposes of these top-heavy rules, will be treated as being maintained under a separate plan by each
respective Employer. 

  

	 	(b)	Aggregation Group means either a Required Aggregation Group or a Permissive Aggregation Group as hereinafter determined. 

 

	 	(i)	Required Aggregation Group means the group of plans composed of (i) each plan of the Employer in which a Key Employee is a Participant or participated at
any time during the Determination Period, regardless of whether the plan has terminated; and (ii) each other plan of the Employer that enables any plan in which a Key Employee participates to meet the requirements of Code Sections 401(a)(4) or
410, which will be aggregated. 

 In the case of a Required Aggregation Group, each plan in the group will be
considered a Top-Heavy Plan if the Required Aggregation Group is a Top-Heavy Group. No plan in the Required Aggregation Group will be considered a Top-Heavy Plan if the Required Aggregation Group is not a Top-Heavy Group. 

 

	 	(ii)	Permissive Aggregation Group means the Required Aggregation Group plus any other plan not required to be included in the Required Aggregation Group, provided the
resulting group, taken as a whole, would continue to satisfy Code Sections 401(a)(4) and 410. 

 In the case of a
Permissive Aggregation Group, only a plan that is part of the Required Aggregation Group will be considered a Top-Heavy Plan if the Permissive Aggregation Group is a Top-Heavy Group. No plan in the Permissive Aggregation Group will be considered a
Top-Heavy Plan if the Permissive Aggregation Group is not a Top-Heavy Group. 
  

	 	(iii)	Only those plans of the Employer in which the Determination Dates fall within the same calendar year will be aggregated to determine whether the plans are Top-Heavy
Plans. 

  

	 	(c)	Determination Date means for any Plan Year (i) the last day of the preceding Plan Year, or (ii) in the case of the first Plan Year of the Plan, the
last day of the first Plan Year. 

  

	 	(d)	Determination Period means the five (5) year period ending on the Determination Date. 

 

	 	(e)	Excluded Employees means any Employee who has not performed any Service for the Employer during the five (5) year period ending on the Determination Date.
Excluded Employees will be excluded for purposes of a Top-Heavy determination. 

  
 14 

  

	 	(f)	Key Employee means any Employee or former Employee, or Beneficiary of the Employee, who, for any Plan Year in the Determination Period is:

  

	 	(i)	An officer of the Employer having Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1)); 

 

	 	(ii)	A Five Percent Owner; or 

  

	 	(iii)	A one percent (1%) owner of the Employer having Compensation of more than $150,000. 

Notwithstanding the foregoing, Key Employee will have the meaning set forth in Code Section 416(i), as amended. For purposes of
determining whether an Employee or former Employee is an officer under this Subsection (f), an officer of the Employer will have the meaning set forth in the regulations under Code Section 416(i). For purposes of this Section, Compensation
means “Compensation” as determined under for the definition of Highly Compensated Employee above. For purposes of determining ownership hereunder, entities that would otherwise be aggregated as Related Employers will be treated as separate
entities. 
  

	 	(g)	Non-Key Employee means any Employee or former Employee, or Beneficiary of the Employee, who is not a Key Employee. 

 

	 	(h)	Present Value of Accrued Benefit. Solely for the purpose of determining if the Plan, or any other plan included in a Required Aggregation Group of which this
Plan is a part, is a Top-Heavy Plan, the Accrued Benefit of a Non-Key Employee will be determined under (i) the method, if any, that uniformly applies for accrual purposes under all plans maintained by the Related Employers, or (ii) if
there is no uniform method, in accordance with the slowest accrual rate permitted under the fractional accrual method described in Code Section 411(b)(1)(C). To calculate the Present Value of Accrued Benefits from a defined benefit plan, the
Administrator will use the actuarial assumptions for interest and mortality only, prescribed by the defined benefit plan(s) to value benefits for top-heavy purposes. If an aggregated plan does not have a valuation date coinciding with the
Determination Date, the Administrator must value the Accrued Benefits in the aggregated plan as of the most recent valuation date falling within the twelve (12) month period ending on the Determination Date, except as Code Section 416 and
applicable Treasury Regulations require for the first and second plan year of a defined benefit plan. The Administrator will determine whether a plan is top-heavy by referring to Determination Dates that fall within the same calendar year.

 For purposes of determining the Present Values of Accrued Benefits and the amounts of Account Balances of
Employees as of the Determination Date, the following will apply. 
  

	 	(i)	Distributions During Year Ending on the Determination Date. The Present Values of Accrued Benefits and the amounts of Account Balances of an Employee as of the
Determination Date will be increased by the distributions made with respect to the Employee under the Plan and any Plan aggregated with the Plan under Code Section 416(g)(2) during the one-year period ending on the Determination Date. The
preceding sentence will also apply to distributions under a terminated Plan that, had it not been terminated, would have been aggregated with the Plan under Code Section 416(g)(2)(A)(i). In the case of a distribution made for a reason other
than separation from employment, death, or disability, this provision will be applied by substituting “five-year period” for “one-year period.” 

  
 15 

  

	 	(ii)	Employees Not Performing Services During Year Ending on the Determination Date. The Accrued Benefits and accounts of any individual who has not performed
services for the Employer during the one-year period ending on the Determination Date will not be taken into account. 

  

	 	(i)	Top-Heavy Group means an Aggregation Group in which, as of the Determination Date, the sum of: 

 

	 	(i)	The Present Value of Accrued Benefits of Key Employees under all defined benefit plans included in the group; and 

 

	 	(ii)	The Aggregate Accounts of Key Employees under all defined contribution plans included in the group. 

Exceeds sixty percent (60%) of a similar sum determined for all Participants. 

 

	1.44	Trust Agreement 

 The
agreement, entered into with the Trustee, or any successor Trustee, establishing the Trust Fund and specifying the duties of the Trustee. 
  

	1.45	Trust Fund 

 All assets of
any kind and nature from time to time held by the Trustee or its agent under the Trust Agreement without distinction between income and principal. This Plan contemplates a single Trust Fund for all Employers under the Plan. However, the Trustee will
maintain separate records of account to reflect properly each Participant’s Account Balance from each Employer, if any. 
  

	1.46	Trustee 

 The then acting
Trustee or, collectively, if there is more than one, the then acting Trustees of the Trust Fund. 
  

	1.47	Valuation Date 

 Each
business day of the Plan Year, or such other dates determined by the Administrator. 

  
 16 

  

	1.48	Year of Service 

 Year of
Service means a three hundred sixty five (365)-day period of Service. For purposes of determining an Employee’s Years of Service, an Employee will receive credit for the aggregate of all time periods commencing on an Employee’s Employment
Commencement Date (or Re-Employment Commencement Date) and ending on his or her Severance from Employment Date. 
  

	 	(a)	A Year of Service (including a fraction thereof) will be credited for each completed 365 days of elapsed time (as defined in Treasury Regulation
Section 1.410(a)-7) that need not be consecutive. An Employee will receive credit towards the completion of a Year of Service for any Period of Severance of less than 365 days. 

 

	 	(b)	In computing an Employee’s Years of Service, the following rules will apply: 

 

	 	(i)	For an Employee who terminates employment and is subsequently re-employed after incurring a Break in Service, Service prior to the Break in Service will not be taken
into account until the Employee has completed a Year of Service after re-employment. 

  

	 	(ii)	For a Participant who terminates employment and who subsequently is re-employed after incurring five (5) consecutive one year Breaks in Service, Years of Service
after the Break in Service will not be taken into account for purposes of determining the Nonforfeitable percentage of an Employee’s Account Balance derived from Employer Contributions that accrued before the Break in Service.

  

	 	(iii)	For a Participant who terminates employment without any vested right to the Employer Contribution Account and who is re-employed after a one year Break in Service,
Service before the Break in Service will not be taken into account if the number of consecutive one year Breaks in Service equals or exceeds the greater of (i) five (5), or (ii) the aggregate number of Years of Service before the Break in
Service. A Participant is considered nonvested for this purpose only if: 

  

	 	(A)	The Participant has no vested interest in any amounts in his or her Employer Contribution Account; and 

 

	 	(B)	The Participant has no Salary Deferral Contributions in the Plan. 

  

	 	(iv)	Service with the Employer before a Participant enters the Plan will be considered for purposes of vesting. 

  
 17 

  
 ARTICLE II

 Eligibility and Participation 

 

	2.1	Eligibility Conditions 

Each Eligible Employee who commences employment with an Employer that has adopted the Plan in accordance with Section 9.5 on or after
April 1, 2010 will be eligible to participate in this Plan on the Entry Date next following the attainment of age twenty-one (21) and the completion of one (1) Year of Service. 

If a Participant is no longer an Eligible Employee and becomes ineligible to participate but has not incurred a Break in Service, such
Employee will participate immediately upon resuming status as an Eligible Employee. If a Participant incurs a Break in Service, eligibility will be determined as provided in the definition of Break in Service in Article I. 

If an Employee who is not an Eligible Employee becomes an Eligible Employee, the Employee will participate immediately if the Employee has
satisfied the minimum age and service requirements and would have otherwise previously become a Participant. 
  

	2.2	Participation Election 

Whenever a new Eligible Employee is hired by the Employer, the Employer immediately will give notice to the Administrator of the
employment and will identify the new Employee. The Administrator will notify in writing each new Eligible Employee of the pending eligibility prior to the date on which the Employee will become eligible under Section 2.1 and will furnish the
Employee a copy of this Plan or any other explanation of the Plan that the Administrator will provide for that purpose. 
 Each
Eligible Employee who commences employment with an Employer on or after April 1, 2010 and fails to affirmatively elect to (i) have Salary Deferral Contributions made on his or her behalf at a different rate or (ii) not have Salary
Deferral Contributions made on his or her behalf under the Plan, will automatically become a Participant, in accordance with the terms of Section 3.1, effective as of the first day of the first payroll period beginning on or after the Eligible
Employee’s applicable Entry Date. In accordance with Code Section 414(w), within ninety (90) days following the date on which the first automatic Salary Deferral Contribution is made on behalf of the Participant under this Section and
Section 3.1, the affected Participant may notify the Administrator of his or her election to withdraw all Salary Deferral Contributions (and earnings thereon) made on his or her behalf from the date the first such contribution was made through
the date of the Participant’s withdrawal election. 
  

	2.3	Participant Re-Entry 

 If
the employment of a Participant is terminated and the Participant subsequently is re-employed as an Eligible Employee, the re-employed Eligible Employee will become a Participant on the Re-Employment Commencement Date. If an Eligible Employee
terminates employment prior to satisfying the eligibility requirements of Section 2.1 and subsequently is re-employed as an Eligible Employee, the re-employed Employee will become a Participant after meeting the eligibility requirements of
Section 2.1, but will be credited for Service retroactively to the Re-Employment Commencement Date for purposes of eligibility and vesting. If an Eligible Employee becomes eligible in accordance with Section 2.1 but terminates employment
prior to the first Entry Date, and the Employee is later re-employed as an Eligible Employee, the Employee will become a Participant on the Re-Employment Commencement Date. 

  
 18 

  
 ARTICLE III

 Contributions 
  

	3.1	Salary Deferral Contributions 

 For each Plan Year, the amount of the Salary Deferral Contribution to the Trust Fund will equal the amount determined under this Section. Subject to Subsection (a) below, each Participant may elect
to defer any amount of his or her Compensation in whole percentages up to a maximum of fifty percent (50%) of the Participant’s Compensation, but will not elect to defer an amount to cause the Plan to violate the limitations of this
Section or Code Section 415, or to exceed the applicable maximum amount allowable as a deduction to the Employer under Code Section 404. A Participant may elect to defer Compensation under this Section only in an amount that the
Participant otherwise could elect to receive in cash and that is currently available to the Participant. Compensation is not currently available to the Participant if the Participant is not eligible to receive it at the time of the deferral
election. The amounts by which a Participant elects to reduce Compensation under this Plan will be his Salary Deferral Contribution. The Employer will contribute to the Trust Fund the amount of the Salary Deferral Contributions that will be treated
as Employer Contributions and credited to the Salary Deferral Contribution Account of each Participant. 
  

	 	(a)	Salary Deferral Contribution Elections 

  

	 	(i)	The Administrator will adopt a procedure necessary to implement Salary Deferral Contribution elections. The Employer will permit a Participant to make elections, and
subsequent changes thereto, in accordance with the rules and procedures that will be established by the Administrator. 

  

	 	(ii)	An Eligible Employee that becomes a Participant as a result of the automatic enrollment provision of Section 2.2 will be deemed to have elected to have Salary
Deferral Contributions made on his or her behalf each payroll period in an amount equal to one percent (1%) of his or her Compensation until an alternate election is made in accordance with the procedures established under (i) above.

  

	 	(b)	Annual Dollar Limit on Salary Deferral Contributions. A Participant’s Salary Deferral Contributions will not exceed the statutory dollar limitation under
Code Section 402(g) for the taxable year of the Participant, except to the extent permitted under Code Section 414(v) and Section 3.2 referring to Catch-Up Contributions. The statutory dollar limitation is the amount of the dollar
limitation under Code Section 402(g) in effect on January 1 of each calendar year, as adjusted annually by the Secretary of the Treasury. “Excess Salary Deferrals” are Salary Deferral Contributions that exceed the statutory
dollar limitation and are includable in a Participant’s gross income under Code Section 402(g). Excess Salary Deferrals will be treated as Annual Additions under the Plan, unless such amounts are distributed no later than the first
April 15 following the close of the Participant’s taxable year. 

  
 19 

  

	 	(i)	Salary Deferral Contributions means, for any taxable year, the sum of: 

  

	 	(A)	Any Employer contribution under a qualified cash or deferred arrangement defined in Code Section 401(k), determined without regard to the dollar limitation under
Code Section 402(g); 

  

	 	(B)	Any Employer contribution under a simplified employee pension as defined in Code Section 408(k)(6), pursuant to a salary reduction agreement; and

  

	 	(C)	Any Employer contribution toward the purchase of a tax sheltered annuity contract as defined in Code Section 403(b), if any, pursuant to a salary reduction
agreement. 

 Salary Deferral Contributions will not include any deferrals properly distributed as excess Annual
Additions. 
  

	 	(ii)	If the statutory dollar limitation under Code Section 402(g) is exceeded, the Administrator will direct the Trustee to distribute the Excess Salary Deferrals, and
any income or loss allocable to the Excess Salary Deferrals (determined in accordance with the requirements of Treasury Regulation Section 1.402(g)-1(e)(5) effective as of January 1, 2007), to the Participant not later than the first
April 15 following the close of the Participant’s taxable year. 

  

	 	(iii)	If a Participant is also a participant in (i) another qualified cash or deferred arrangement defined in Code Section 401(k); (ii) a simplified employee
pension defined in Code Section 408(k); or (iii) a salary reduction arrangement pursuant to which an employer purchases a tax sheltered annuity contract defined in Code Section 403(b), and such Participant’s Salary Deferral
Contributions made under the other arrangement(s) and this Plan cumulatively exceed the amount of the applicable statutory dollar limitation under Code Section 402(g), then the Participant may, not later than March 1 following the close of
the Participant’s taxable year in which such excess occurred, notify the Administrator in writing of the excess and request that his Salary Deferral Contributions under this Plan be reduced by an amount specified by the Participant. The
specified amount then will be distributed in the same manner as provided in clause (ii) above. A Participant is deemed to notify the Administrator of any Excess Salary Deferrals that arise by taking into account only those Salary Deferral
Contributions made to this Plan and any other plans of this Employer. 

  
 20 

  

	 	(iv)	If any of the foregoing provisions of this Section do not conform with applicable Treasury Regulations, the nonconforming provisions may be amended retroactively to
assure conformity. 

  

	 	(c)	Actual Deferral Percentage Test. One of the actual deferral percentage tests set forth in Code Section 401(k)(2) and Treasury Regulations thereunder must be
met in each Plan Year. Such testing will utilize the prior year testing method as such term is defined under Treasury Regulation Section 1.401(k)-2(a)(2)(ii). The actual deferral ratio (as such term is defined under Treasury Regulation
Section 1.401(k)-6) of any Participant who is a Highly Compensated Employee for the Plan Year and who is eligible to have Salary Deferral Contributions allocated to such Participant’s accounts under two (2) or more cash or deferred
arrangements described in Code Section 401(k), that are maintained by an Employer (or a Related Employer), will be determined as if such elective contributions were made under a single arrangement. If a Highly Compensated Employee participates
in two (2) or more cash or deferred arrangements of an Employer (or a Related Employer) that have different plan years, then all elective contributions made during the Plan Year being tested under all such cash or deferred arrangements will be
aggregated, without regard to the plan years of the other plans. 

  

	3.2	Catch-Up Contributions. 

All Employees who are eligible to make Salary Deferral Contributions under this Plan and who have attained age fifty (50) before the
close of the Plan Year will be eligible to make Catch-Up Contributions in accordance with, and subject to the limitations of, Code Section 414(v). Such Catch-Up Contributions will not be taken into account for purposes of the provisions of the
Plan implementing the required limitations of Code Sections 402(g) and 415. The Plan will not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Code Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or
416, as applicable, by reason of the making of such Catch-Up Contributions. 
  

	3.3	Matching Contributions 

  

	 	(a)	Amount of Matching Contributions 

  

	 	(i)	Effective on and after April 1, 2010, at the Employer’s sole discretion, a discretionary Matching Contribution may be made to the Trust Fund each Plan Year on
behalf of each Participant who is employed on the last day of the Plan Year. For each Plan Year, the amount of the discretionary Matching Contribution will be equal to an amount that the Employer from time to time may deem advisable. Unless an
Employer affirmatively elects to make a discretionary Matching Contribution for a Plan Year on behalf of eligible Participants, no such contribution will be made. 

  
 21 

  

	 	(ii)	Effective for payroll periods ending on or before September 30, 2010, a Participant who elects to have Salary Deferral Contributions made on his or her behalf to
the Plan will accrue a Matching Contribution each payroll period in an amount equal to one hundred percent (100%) of the Salary Deferral Contributions for the payroll period up to the first three percent (3%) of the Particiapnt’s
Compensation that is deferred for the payroll period and fifty percent (50%) of the Salary Deferral Contributions for the payroll period up to the next three percent (3%) of the Participant’s compensation that is deferred for the
payroll period. Salary Deferral Contributions that exceed six percent (6%) of a Participant’s Compensation will not be taken into account when calculating Matching Contributions. 

 

	 	(iii)	Notwithstanding the foregoing, the Matching Contribution for any Plan Year will not exceed the applicable maximum amount allowable as a deduction to the Employer under
Code Section 404. The Matching Contribution for any Plan Year on behalf of a Participant will not exceed the limitations on Annual Additions as described under Section 4.3, even if the contribution formula otherwise would require a larger
contribution. The Matching Contribution on behalf of each Participant will be credited to such individual’s Matching Contribution Account. 

  

	 	(b)	Actual Contribution Percentage Test. One of the actual contribution percentage tests set forth in Code Section 401(m) and Treasury Regulations thereunder
must be met in each Plan Year. Such testing will utilize the prior year testing method as such term is defined under Treasury Regulation Section 1.401(m)-2(a)(2)(ii). The Administrator may elect, in accordance with applicable Treasury
Regulations, to treat Salary Deferral Contributions to the Plan as Matching Contributions for purposes of meeting the requirement. The actual contribution ratio (as such term is defined under Treasury Regulation Section 1.401(m)-5) of any
Participant who is a Highly Compensated Employee for the Plan Year and who is eligible to have Matching Contributions allocated to such Participant’s accounts under two (2) or more plans described in Code Section 401(a), that are
maintained by an Employer (or a Related Employer), will be determined as if the total of contributions was made under a single arrangement. If a Highly Compensated Employee participates in two (2) or more plans or arrangement of an Employer (or
a Related Employer) that have different plan years, then all contributions made during the Plan Year being tested under all such arrangements will be aggregated, without regard to the plan years of the other plans. 

 

	3.4	Profit Sharing Contributions 

 At the Employer’s sole discretion, a discretionary Profit Sharing Contribution may be made to the Trust Fund each Plan Year on behalf of each Participant who is employed on the last day of the Plan
Year. For each Plan Year, the amount of the discretionary Profit Sharing Contribution to the Trust Fund will be equal to an amount that the Employer from time to time may deem advisable. Unless an Employer affirmatively elects to make a
discretionary Profit Sharing Contribution for a Plan Year on behalf of eligible Participants, no such contribution will be made. 

  
 22 

  
 Notwithstanding the
foregoing, the aggregate Profit Sharing Contributions for any Plan Year under this Section 3.1 will not exceed the applicable maximum amount allowable as a deduction to the Employer under Code Section 404. The aggregate Profit Sharing
Contributions for any Plan Year on behalf of a Participant will not exceed the limitation on Annual Additions as described in Section 4.3, even if the contribution formula otherwise would require a larger contribution. The aggregate Profit
Sharing Contributions on behalf of each Participant will be credited to such individual’s Profit Sharing Contribution Account. 
  

	3.5	Rules Governing Deposits of Contributions 

  

	 	(a)	Salary Deferral Contributions and Catch-Up Contributions accumulated through payroll deductions will be paid to the Trustee with reasonable promptness and not later
than the time permitted by the U.S. Department of Labor under Labor Regulations at 29 C.F.R. § 2510.3-102. 

  

	 	(b)	The Employer will pay to the Trustee the Employer Contributions (other than Salary Deferral Contributions and Catch-Up Contributions) at any time and from time to time;
except that the total Employer Contribution for any Plan Year will be paid in full not later than the time prescribed by Code Section 404(a)(6) to enable the Employer to obtain a deduction on its federal income tax return for the
Employer’s taxable year. 

  

	 	(c)	Upon payment to the Trustee, all Employer Contributions will be added immediately to and become a part of the Trust Fund. 

 

	 	(d)	All Salary Deferral Contributions and Catch-Up Contributions, if any, will be credited to the Participant Contribution Account of each Participant as of the last day of
each payroll period. All Matching Contributions and Profit Sharing Contributions, if any, will be credited to the Matching Contribution Account and Profit Sharing Contribution Account, respectively, of each Participant upon deposit with the Trustee
in accordance with this Section 3.5. 

  

	3.6	Adjustment of Individual Accounts 

 As of each Valuation Date, before allocating and crediting contributions and Forfeitures, if any, for the Plan Year as provided in Article IV, the Trustee will adjust all Individual Accounts as follows:

  

	 	(a)	The Trustee will determine the fair market value of the Participant’s directed investments. 

 

	 	(b)	The Trustee will adjust the value of the Participant’s Individual Accounts by crediting them with any increases in value since the last Valuation Date or, if
applicable, since the date of acquisition of the Participant’s directed investments. 

  
 23 

  

	 	(c)	The Trustee will credit the Participant’s Individual Accounts with any income and charge the Participant’s Individual Accounts with any expenditures resulting
from the Participant’s directed investments. 

 A Participant will be responsible for reviewing the
information concerning investment directives and earnings allocations on his or her participant statement. If there is any inaccuracy in the information contained on such statement, the Participant will report such inaccuracies to the Administrator
or the Trustee within the ninety (90)-day period immediately following the date such statement was received. If a Participant fails to report an inaccuracy within this ninety (90)-day period, the Plan will not be required to make retroactive
adjustments to the Participant’s Account but will rectify any errors on a prospective basis. 
  

	3.7	Gap Period Income on Distributed Excess Contributions and Excess Aggregate Contributions 

This Section applies to excess contributions (as defined in Code Section 401(k)(8)(B)) and excess aggregate contributions (as defined
in Code Section 401(m)(6)(B)) made with respect to Plan Years beginning after December 31, 2007. In distributing excess contributions or excess aggregate contributions, the Administrator will not calculate and distribute allocable income
for the gap period (i.e., the period after the close of the Plan Year in which the excess contribution or excess aggregate contribution occurred and prior to the distribution). 

 

	3.8	Participant Voluntary After Tax Contributions 

 This Plan does not permit or accept Participant voluntary after tax contributions. 

ARTICLE IV 

Allocation of Employer Contributions to Individual Accounts 

 

	4.1	Allocation of Contributions. 

  

	 	(a)	Salary Deferral Contributions and Catch-Up Contributions made by the Employer on a Partcipant’s behalf will be allocated to such Participant’s Salary Deferral
Contribution Account in the amount determined in accordance with Sections 3.1 and 3.2, respectively. 

  

	 	(b)	Matching Contributions, if any, made by the Employer on a Participant’s behalf will be allocated to such Participant’s Matching Contribution Account in the
amount determined in accordance with Section 3.3. 

  

	 	(c)	Profit Sharing Contributions, if any, made by the Employer on a Participant’s behalf pursuant to Section 3.4 will be allocated to the Profit Sharing
Contribution Accounts of eligible Participants employed by the Employer on the last day of the Plan Year. The allocation to each such eligible Participant’s Profit Sharing Contribution Account will be that portion of Employer Discretionary
Profit Sharing Contribution that is in the same proportion that such Particpant’s Compensation for such Plan Year bears to the total of all such Participants’ Compensation for such Plan Year. For this purpose, “Compensation” will
include only Compensation earned by a Participant during that portion of the Plan Year during which the Employee actually participates in the Plan. 

  
 24 

  

	4.2	Application of Forfeitures. 

 Effective April 1, 2010, any amounts that are forfeited under any provision hereof during a Plan Year will be applied in the manner determined by the Administrator to reduce Matching Contributions
and Profit Sharing Contributions for the succeeding Plan Year. Any remaining Forfeitures will be used to reduce the Plan’s ordinary and necessary administrative expenses for the succeeding Plan Year. Prior to such application, forfeited amounts
will be held in suspense and invested as designated from time to time by the Administrator. 
  

	4.3	Limitations on Allocations Under Code Section 415. Contributions hereunder will be subject to the limitations of Code Section 415 and Treasury
Regulations published pursuant to such Code Section on April 5, 2007, the provisions of which are specifically incorporated by reference; to the extent any portion of this Section conflicts with such Treasury Regulations, the provisions of the
regulations will govern. 

  

	 	(a)	The Annual Additions to a Participant’s Individual Accounts hereunder (together with the Annual Additions to the Participant’s account(s) under any other
defined contribution plans required to be aggregated with the Plan) for any Limitation Year may not exceed the lesser of: 

  

	 	(i)	$40,000, subject to cost-of-living increases as allowed under Code Section 415(d); or 

 

	 	(ii)	One hundred percent (100%) of the Participant’s annual compensation for the Limitation Year. For this purpose, “annual compensation” for any
Limitation Year will be compensation as defined under Code Section 415(c)(3) and Treasury Regulations issued thereunder. 

 In the event the preceding limitations apply to an individual who is a Participant in this Plan and was a Participant in any other defined contribution plan maintained by the Employer, the limitations
will apply first to this Plan. 
  

	 	(b)	In the event the limitations in this Section are not satisfied, correction will be made under the rules provided in Revenue Procedure 2008-50 (and any successor to that
Revenue Procedure). 

  
 25 

  

	4.4	Top-Heavy Allocations 

  

	 	(a)	Minimum Allocation. Notwithstanding the foregoing, for any Plan Year in which the Plan is determined to be Top-Heavy, the amount of Employer contributions and
Forfeitures allocated to the Individual Accounts of each Non-Key Employee will be equal to the lesser of three percent (3%) of each Non-Key Employee’s compensation or the highest contribution rate for the Plan Year made on behalf of any
Key Employee. However, if a defined benefit plan maintained by the Employer that benefits a Key Employee depends on this Plan to satisfy the nondiscrimination rules of Code Section 401(a)(4) or the coverage rules of Code Section 410(b) (or
another plan benefiting the Key Employee so depends on the defined benefit plan), the top heavy minimum allocation is three percent (3%) of the Non-Key Employee’s compensation regardless of the contribution rate for the Key Employee.

  

	 	(b)	Compensation. For purposes of this Section, “compensation” means compensation that would be stated on an Employee’s Form W-2, “Wage and Tax
Statement,” for the calendar year that ends with or within the Plan Year. Notwithstanding the previous sentence, compensation will include amounts that would have been included on the Employee’s Form W-2 but for an election under Code
Sections 125, 132(f)(4), 401(k), 403(b), 408(k), 408(p)(2)(A)(i), or 457(b). Notwithstanding the definition of Compensation in Article I, the period preceding a Participant’s Entry Date will be included in determining the minimum top-heavy
allocation provided by this Section. 

  

	 	(c)	Contribution Rate. For purposes of this Section, a Participant’s contribution rate is the sum of Employer contributions (not including Employer
contributions to Social Security) and Forfeitures allocated to the Participant’s Individual Accounts for the Plan Year divided by his or her compensation for the entire Plan Year. To determine a Participant’s contribution rate, the
Administrator must treat all qualified top-heavy defined contribution plans maintained by the Employer (or by any Related Employers) as a single plan.  

 Notwithstanding the preceding: 
  

	 	(i)	Salary Deferral Contributions on behalf of Key Employees are taken into account in determining the minimum required contribution under Code Section 416(c)(2).
However, Salary Deferral Contributions on behalf of Employees other than Key Employees may not be treated as Employer contributions for the minimum contribution or benefit requirement of Code Section 416. 

 

	 	(ii)	Matching Contributions will be taken into account for purposes of satisfying the minimum contribution requirements of Code Section 416(c)(2). The preceding
sentence will apply with respect to Matching Contributions under the Plan or, if the Plan provides that the minimum contribution requirement will be met in another Plan, such other Plan. Matching Contributions that are used to satisfy the minimum
contribution requirements will be treated as matching contributions for purposes of the Actual Contribution Percentage Test and other requirements of Code Section 401(m). 

  
 26 

  

	 	(iii)	Qualified nonelective contributions described in Code Section 401(m)(4)(C) may be treated as Employer contributions for the minimum contribution or benefit
requirement of Code Section 416. 

  

	 	(d)	Participant Entitled to Top-Heavy Minimum Allocation. The minimum allocation under this Section will not be provided to any Participant who was not employed by
the Employer on the last day of the Plan Year. The provisions of this Section will not apply to any Participant to the extent the Participant is covered under any other plan or plans of the Employer and any Related Employer under which the minimum
allocation or benefit requirements under Code Section 416(c)(1) or (c)(2) are met for the Participant. Notwithstanding any limitations within the Plan’s definition of Compensation, amounts earned during the period preceding a
Participant’s Entry Date will be included for purposes of determining the minimum top-heavy allocation provided by this Section. 

  

	 	(e)	Compliance. The Plan will satisfy the top-heavy minimum allocation under this Section. The Administrator first will allocate the Employer contributions (and
Forfeitures, if any) for the Plan Year pursuant to the allocation formula under Article IV. The Employer then will contribute an additional amount for the Individual Accounts of any Participant entitled under this Section to a top-heavy minimum
allocation and whose contribution rate for the Plan Year, under this Plan and any other plan aggregated under this Section, is less than the top-heavy minimum allocation. The additional amount is the amount necessary to increase the
Participant’s contribution rate to the top-heavy minimum allocation. The Administrator will allocate the additional contribution to the Individual Accounts of the Participant on whose behalf the Employer makes the contribution.

  

	4.5	Post-Allocation Adjustments to Accounts 

 After the amount or amounts have been allocated and credited to each Participant’s Employer Contribution Account, as provided in this Article, the then value of each Employer Contribution Account
will remain unchanged until the next Accounting Date. Notwithstanding the foregoing, the Participant’s Employer Contribution Account may be adjusted prior to the next Accounting Date under: 

 

	 	(a)	Other provisions in this Plan authorizing the Administrator to reduce the Participant’s Individual Accounts by disbursements properly chargeable to them or
increased by funds received and credited to them; or 

  

	 	(b)	A special valuation of the Participant’s Individual Accounts. 

  
 27 

  
 For purposes of this
Article, reference to the Employer Contribution Accounts of Participants will include the Employer Contribution Accounts of those Participants who die, become Disabled, or retire during the Plan Year. 

ARTICLE V 

In-Service Distributions 
  

	5.1	Withdrawal of Employer Contributions Before Severance From Employment 

Except as provided under Section 5.2 below, upon attainment of age fifty-nine and one-half (59 1/2) years, a Participant will have the right to request
withdrawal of all or any portion of the Participant’s fully vested and Nonforfeitable Individual Account(s). All determinations of the amount credited to a Participant’s Individual Accounts will be made as of the most recent Valuation
Date. A Participant will make an election under this Section on a form prescribed by and delivered to the Administrator at any time during the Plan Year for which the election will be effective. In the written election, the Participant will specify
the desired percentage or dollar amount to be distributed by the Trustee to the Participant. The Trustee will distribute to a Participant as elected under this Section within the ninety (90) day period, or as soon as administratively feasible,
after the Participant files the written election with the Administrator. The Trustee will distribute the balance of the Participant’s Individual Accounts not distributed pursuant to Article VIII when the Participant terminated employment with
the Employer. 
  

	5.2	Withdrawal of Salary Deferral Contributions Before Severance From Employment 

 

	 	(a)	Statutory Restriction on Disbursements. Amounts held in the Salary Deferral Contribution Account of a Participant may not be distributable prior to the earliest
of: 

  

	 	(i)	Severance from Employment, total and permanent Disability, or death. For purposes of these distribution restrictions, “Severance from Employment” means when
an Employee ceases to be an Employee of the Employer maintaining the Plan. An Employee does not have a Severance from Employment if, in connection with a change of employment, the Employee’s new employer maintains the Plan with respect to the
Employee, by assuming sponsorship of the Plan or by accepting a transfer of Plan assets and liabilities (within the meaning of Code Section 414(l)) with respect to the Employee; 

 

	 	(ii)	 Attainment of age fifty-nine and one-half (59 1/2) years; 

  

	 	(iii)	Plan termination; or 

  

	 	(iv)	Proven financial hardship, subject to the limitations described in Section 5.3. 

  
 28 

  
 For purposes of
determining whether the Employer maintains an alternative defined contribution plan (described in Treasury Regulation Section 1.401(k)-1(d)(4)(i)) that would prevent the Employer from distributing Salary Deferral Contributions (and other
amounts, such as qualified nonelective contributions, which are subject to the distribution restrictions that apply to Salary Deferral Contributions) from an otherwise terminated Plan, an alternative defined contribution plan does not include an
employee stock ownership plan defined in Code Sections 4975(e)(7) or 409(a), a simplified employee pension as defined in Code Section 408(k), a SIMPLE IRA plan as defined in Code Section 408(p), a plan or contract that satisfies the
requirements of Code Section 403(b), or a plan that is described in Code Sections 457(b) or (f). 
  

	5.3	Hardship Distributions 

Distribution of a Participant’s Nonforfeitable Salary Deferral Contributions, Profit Sharing Contributions, and Matching
Contributions, may be made to a Participant in the event of hardship. For purposes of this Section, a “hardship distribution” is a distribution that is necessary to satisfy an immediate and heavy financial need of an Employee who lacks
other available resources to satisfy such need. 
  

	 	(a)	A distribution will be considered to satisfy an immediate and heavy need of a Participant if the distribution is for: 

 

	 	(i)	Expenses incurred for or necessary to obtain medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses
exceed 7.5% of adjusted gross income); 

  

	 	(ii)	Costs directly related to the purchase, excluding mortgage payments, of a principal residence for the Participant; 

 

	 	(iii)	Payment of tuition, related educational fees, and room and board expenses, for up to the next twelve (12) months of post-secondary education for the Participant,
or the Participant’s spouse, children or dependents (as defined in Code Section 152, and, for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(b)(1), (b)(2) and (d)(1)(B));

  

	 	(iv)	Payments necessary to prevent the eviction of the Participant from, or a foreclosure on the mortgage of, the Participant’s principal residence;

  

	 	(v)	Payments for burial or funeral expenses for the Participant’s deceased parent, spouse, children or dependents (as defined in Code Section 152, and, for
taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)); or 

  

	 	(vi)	Expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined
without regard to whether the loss exceeds 10% of adjusted gross income). 

  
 29 

  

	 	(b)	A distribution will be considered necessary to satisfy an immediate and heavy financial need of a Participant who lacks other available resources only if:

  

	 	(i)	The Participant represents in writing that the need cannot reasonably be relieved through reimbursement or compensation by insurance or otherwise; by liquidation of the
Participant’s assets; by cessation of Salary Deferral Contributions under the Plan; by obtaining all distributions, other than hardship distributions, and all nontaxable loans currently available to him under all plans currently maintained by
the Employers; or by borrowing from commercial sources on reasonable commercial terms; and 

  

	 	(ii)	The distribution is not in excess of the amount of an immediate and heavy financial need, including amounts necessary to pay any federal, state or local income taxes or
penalties reasonably anticipated to result from the distribution. 

  

	 	(c)	In addition to the conditions above each plan maintained by the Employer or a legally enforceable arrangement will provide that the Participant’s Salary Deferral
Contributions, if any, will be suspended for six (6) months after receipt of the hardship distribution. 

  

	 	(d)	Effective as of January 1, 2010, a Participant’s hardship event, for purposes of this Section, includes an immediate and heavy financial need of the
Participant’s primary Beneficiary, that would constitute a hardship event if it occurred with respect to the Participant’s spouse or dependent, as defined under Code Section 152. For purposes of this Subsection, such hardship events
will be limited to educational expenses, funeral expenses and certain medical expenses. 

  

	5.4	Qualified Reservist Distributions 

 Effective as of January 1, 2010, the Plan permits a Participant to elect a qualified reservist distribution. For this purpose, a “qualified reservist distribution” is any distribution to an
individual who is ordered or called to active duty after September 11, 2001, if: (i) the distribution is from amounts attributable to Salary Deferral Contributions; (ii) the individual was (by reason of being a member of a reserve
component, as defined in Section 101 of Title 37 of the United States Code) ordered or called to active duty for a period in excess of one hundred seventy nine (179) days or for an indefinite period; and (iii) the Plan makes the
distribution during the period beginning on the date of such order or call, and ending at the close of the active duty period. 

  
 30 

  
 ARTICLE VI

 Distributions After Severance from Employment 

 

	6.1	Eligibility Due to Retirement, Death, or Disability 

  

	 	(a)	Retirement. At Normal Retirement Age, a Participant will be fully vested in his or her Individual Accounts and the Trustee will hold such Individual Accounts for
the Participant’s benefit. If a Participant retires (or otherwise terminates employment) on or after his or her Normal Retirement Date, the Administrator will credit and adjust the Participant’s Individual Accounts as provided in Articles
III and IV, as of the Valuation Date immediately preceding a distribution pursuant to Section 6.6 below. 

  

	 	(b)	Death. Upon death, a Participant will be fully vested in his or her Individual Accounts and the Trustee will hold such Individual Accounts for the benefit of the
Participant’s Designated Beneficiary or Beneficiaries. The Administrator will credit and adjust the deceased Participant’s Individual Accounts as provided in Articles III and IV, as of the Valuation Date immediately preceding the date of a
distribution pursuant to Section 6.6 below. A Participant’s Designated Beneficiary or Beneficiaries will be entitled to benefits under Section 6.6 after the death of the Participant or Former Participant. 

 

	 	(c)	Disability. Upon termination of employment due to Disability, a Participant will be fully vested in his or her Individual Accounts and the Trustee will hold the
Individual Accounts for the Participant’s benefit. The Administrator will credit and adjust the Individual Accounts of a disabled Participant, as provided in Articles III and IV, as of the Valuation Date immediately preceding the date of a
distribution pursuant to Section 6.6 below. A disabled Participant will be entitled to benefits under Section 6.6 after the Participant’s date of Disability. 

 

	6.2	Eligibility Due To Severance from Employment 

 If a Participant’s employment with the Employer will terminate for any reason other than retirement, death, or Disability, the Participant will become vested in his or her Individual Accounts as
provided in Section 6.3 below, and the Trustee will hold the Nonforfeitable portion of the Participant’s Account Balance in his Individual Accounts for the Participant’s benefit. The Administrator will credit and adjust the Individual
Accounts of the terminated Participant, as provided in Articles III and IV, as of the Valuation Date immediately preceding the date of the distribution pursuant to Section 6.6 below. A terminated Participant will be entitled to benefits under
this Section 6.2 and Section 6.3 after the Participant’s date of termination. 

  
 31 

  

	6.3	Vesting 

 A Participant to
whom Section 6.2 applies will be fully vested at all times in amounts credited to his Participant Contribution Accounts. In addition, the Participant will also be entitled to receive the Nonforfeitable percentage of the balance credited to the
Participant’s Employer Contribution Accounts, determined under the following vesting schedule: 
  

			
	 Years of Service
	  	Nonforfeitable
Percentage
	 Less than 2 years
	  	0%
		
	 At least 2 but less than 3 years
	  	20%
		
	 At least 3 but less than 4 years
	  	40%
		
	 At least 4 but less than 5 years
	  	60%
		
	 At least 5 but less than 6 years
	  	80%
		
	 At least 6 years
	  	100%

 Notwithstanding the
preceding, if a Participant has been granted credit for Years of Service with a Predecessor Employer, such Participant’s Nonforfeitable percentage will be no less than the Participant’s Nonforfeitable percentage with his Predecessor
Employer. 
 The foregoing vesting schedule will also apply for any Plan Year in which the Plan is a Top-Heavy Plan. 

 

	6.4	Forfeiture 

 A Participant
to whom this Article applies will forfeit that portion of the amount of his Individual Accounts to which the Participant is not entitled pursuant to Section 6.3 above. 

 

	 	(a)	A Participant who separates from employment without a Nonforfeitable percentage in the Participant’s Employer Contribution Account will be deemed to have received
a distribution of his Nonforfeitable Account Balance on the date of separation from employment. 

  

	 	(b)	The amount forfeited under this Section, to the extent attributable to Employer contributions, will remain in the Trust Fund and will be allocated as provided under
Section 4.2 as of the Accounting Date of the Plan Year during which the forfeiture event occurred. 

  
 32 

  

	6.5	Determination of Amount of Vested Undistributed Account 

  

	 	(a)	If the Trustee pays any amount outstanding to the credit of a Participant in the Participant’s Individual Accounts while the Participant is not fully vested in his
Individual Accounts, other than a lump sum distribution that occurs no later than the last day of the second Plan Year following the Plan Year in which the Participant separates from Service, and prior to the Anniversary Date on which the
Participant will incur a five (5) year Break in Service, the value of his or her vested and undistributed account will be held in a separate account and will be determined at any time prior to and including the Anniversary Date on which the
Participant will incur a five (5) year Break in Service under the following formula. 

 X = P(AB + (R x D)) -
(R x D). 
 For this formula, the variables represent the following factors: 

X is the value of the vested portion of the Participant’s Account; 

P is the Participant’s Nonforfeitable percentage at the relevant time; 

AB is the Account Balance at the relevant time; 
 D is the amount of the distribution; and 
 R is the ratio of the Account Balance
at the relevant time to the Account Balance after the distribution. 
 The nonvested portion of the Participant’s
Individual Accounts will be forfeited on the Anniversary Date on which the Participant incurs a five (5) year Period of Severance. 
  

	6.6	Payment of Benefits 

  

	 	(a)	As soon as administratively feasible after a Participant separates from employment, and the Administrator has credited and adjusted the Individual Accounts of a
Participant, the Trustee will make payments to the Participant or his Designated Beneficiary or Beneficiaries pursuant to Article VIII, subject to the mandatory distribution requirements of Article VII. The Administrator will charge each payment to
the Participant’s Individual Accounts and payments will continue until the Nonforfeitable Account Balance is paid to the Participant in full. Notwithstanding the preceding, in the event of a Participant’s death, the Administrator will
distribute the Participant’s Individual Accounts no less rapidly than is required under Article VII. 

  

	 	(b)	 Unless a Participant elects otherwise, payment of benefits will commence not later than the sixtieth (60th) day after the end of the Plan Year in which the latest of the
following events occurs: (i) the date on which the Participant attains the Normal Retirement Age under the Plan; (ii) the tenth (10th) anniversary of the year in which the Participant commenced participation in the Plan; or
(iii) the date on which the Participant terminates employment with the Employer. Notwithstanding the foregoing, a Participant may not defer commencement of benefits if such deferral would result in violation of Article VII.

  
 33 

  

	 	(c)	Notwithstanding the foregoing paragraph, if a Participant separates from employment with the Employer and the Participant’s Nonforfeitable Account Balance is
$1,000 or less, the Administrator may direct the Trustee to make immediate distribution to the Participant in the form of a lump sum distribution. For purposes of this paragraph, if the value of an Employee’s Nonfofeitable Account Balance is
zero (0), the Employee will be deemed to have received a distribution of his or her Account Balance. However, if such Participant made any Salary Deferral Contributions to the Plan prior to separating from employment, such Participant will not be
considered non-vested under the Plan and will not be deemed to have received a distribution of his or her Account Balance. In the event of an involuntary distribution greater than $1,000, but not in excess of $5,000, if the Participant does not
elect to receive such distribution or have it paid directly to an Eligible Retirement Plan (as defined in Section 8.2) specified by the Participant in a Direct Rollover, then the Administrator may pay the distribution in a Direct Rollover on
behalf of the Participant to an individual retirement account (described in Code Section 408(a)) designated by the Administrator. 

 The value of a Participant’s Nonforfeitable Account Balance will be determined without regard to that portion of the Account Balance that is attributable to rollover contributions (and earnings
allocable thereto) within the meaning of Code Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16). If the value of the Participant’s Nonforfeitable Account Balance as so determined is $1,000 or less, the Plan will
immediately distribute the Participant’s entire Nonforfeitable Account Balance. 
 ARTICLE VII 

Mandatory Distribution of Benefits 
 The Administrator may not direct the Trustee to distribute the Participant’s Nonforfeitable Account Balance, to the Participant or Designated Beneficiary under a method of payment that, as of the
Required Beginning Date, does not satisfy the minimum distribution requirements under Code Section 401(a)(9) and the corresponding Treasury Regulations, revenue rulings, notices, and other guidance published in the Internal Revenue Bulletin.
Notwithstanding any provision of the Plan to the contrary, the Plan will (i) apply the minimum distribution requirements of Code Section 401(a)(9), including the incidental death benefit rule set forth under Code Section 401(a)(9)(G),
and (ii) provide distributions in accordance with the applicable provisions of final Treasury Regulation Sections 1.401(a)(9)-1 through 1.401(a)(9)-9, the provisions of which are hereby incorporated into the Plan by reference. 

  
 34 

  
 ARTICLE VIII

 Forms of Distribution 
  

	8.1	Forms of Payment of Benefits 

  

	 	(a)	Whenever a Participant, Former Participant, or Beneficiary is entitled to receive a distribution of benefits, he or she will receive such distribution in the form of a
lump sum, payable in cash at the fair market value of the Nonforfeitable Account Balance when distributed. 

  

	 	(b)	Notwithstanding the above, a Participant will have the right to receive payment of his benefits in any optional form of benefit payment to which that Participant would
have been entitled under a plan sponsored by a Predecessor Employer in which that Participant was a Participant. 

  

	 	(c)	Notwithstanding the foregoing, a distribution made pursuant to this Section will be subject to the immediate cashout provisions of Section 6.6.

  

	8.2	Direct Rollover Benefit 

  

	 	(a)	Direct Rollover. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee’s election under this Section, a
Distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover.

  

	 	(b)	Definitions 

  

	 	(i)	Eligible Rollover Distribution. An Eligible Rollover Distribution is any distribution of all or any portion of the balance to the credit of the Distributee,
except that an Eligible Rollover Distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the
joint lives (or joint life expectancies) of the Distributee and the Distributee’s Designated Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code
Section 401(a)(9), the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities) and any distribution made on account of
hardship pursuant to Section 5.2(b) hereof. 

  
 35 

  
 A portion of a
distribution will not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions or Roth elective deferrals that are not includible in gross income. However, such portion may be transferred
only to an individual retirement account or annuity described in Code Section 408(a) or (b), or to a qualified defined contribution plan described in Code Section 401(a) or 403(a) that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not so includible. 

 

	 	(ii)	Eligible Retirement Plan will mean one of the following plans or arrangements, provided such plan or arrangement accepts the Distributee’s Eligible Rollover
Distribution: 

  

	 	(A)	An individual retirement account described in Code Section 408(a) or 408A(b); 

 

	 	(B)	An individual retirement annuity plan described in Code Section 408(b) 

 

	 	(C)	An annuity plan described Code Section 403(a); 

  

	 	(D)	A qualified trust described in Code Section 401(a); 

  

	 	(E)	An annuity contract described in Code Section 403(b); and 

  

	 	(F)	An eligible plan under Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and that agrees to separately account for amounts transferred into such plan from this Plan. 

 The definition of Eligible Retirement Plan will also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the Alternate Payee under a qualified domestic
relation order, as defined in Code Section 414(p). 
  

	 	(iii)	Distributee. A Distributee includes an Employee or former Employee. In addition, the Employee’s or former Employee’s Surviving Spouse and the
Employee’s or former Employee’s spouse or former spouse who is the Alternate Payee under a qualified domestic relations order, as defined in Code Section 414(p) are Distributees with regard to the interest of the spouse or former
spouse. 

  

	 	(iv)	Direct Rollover. A Direct Rollover is a payment by the plan to the Eligible Retirement Plan specified by the Distributee. 

  
 36 

  

	 	(c)	Direct Rollover of Non-Spousal Distribution 

  

	 	(i)	Non-Spouse Beneficiary Rollover Right. For distributions on and after January 1, 2010, an individual other than the Participant’s spouse who is a
Designated Beneficiary under the Plan and Code Section 401(a)(9)(E) and the Treasury Regulations thereunder, by a Direct Rollover, may roll over all or any portion of his or her distribution to an individual retirement account the Beneficiary
establishes for purposes of receiving the distribution. In order to be able to roll over the distribution, the distribution otherwise must satisfy the definition of an Eligible Rollover Distribution. 

 

	 	(ii)	Certain Requirements not Applicable. Although a non-spouse Beneficiary may roll over directly a distribution as provided in this Subsection, any distribution
made prior to January 1, 2010 is not subject to the Direct Rollover requirements of Code Section 401(a)(31) (including Code Section 401(a)(31)(B), the notice requirements of Code Section 402(f), or the mandatory withholding
requirements of Code Section 3405(c)). If a non-spouse Beneficiary receives a cash distribution from the Plan, the distribution is not eligible for a “60-day” rollover right. 

 

	 	(iii)	Trust Beneficiary. If the Participant’s named Beneficiary is a trust, the Plan may make a Direct Rollover to an individual retirement account on behalf of
the trust, provided the trust satisfies the requirements to be a “designated beneficiary” within the meaning of Code Section 401(a)(9)(E). 

  

	 	(iv)	Required Minimum Distributions not Eligible for Rollover. A non-spouse Beneficiary may not roll over an amount that is a required minimum distribution, as
determined under Code Section 401(a)(9), applicable Treasury Regulations, and other Internal Revenue Service guidance. If the Participant dies before his or her Required Beginning Date and the non-spouse Beneficiary rolls over to an individual
retirement account the maximum amount eligible for rollover, the Beneficiary may elect to use either the five (5)-year rule or the life expectancy rule, pursuant to Treasury Regulation Section 1.401(a)(9)-3, A-4(c), in determining the required
minimum distributions from the individual retirement account that receives the non-spouse Beneficiary’s distribution. 

  

	8.3	Election to Receive Benefits 

 Notwithstanding the foregoing, a Participant who leaves the employment of the Employer before his or her Normal Retirement Date, if any, may elect to leave his or her Nonforfeitable Account Balance under
the management of the Trustee, subject to the requirements of Section 6.6 and Article VII. The Trustee will invest and reinvest and will credit and charge the Individual Accounts with their proportionate share of gains and losses of the Trust
Fund pursuant to Article IV until the Nonforfeitable Account Balance is paid out to the Former Participant under this Article. The Participant, Former Participant, or Beneficiary will elect the form or forms of payment of benefits permitted in
Section 8.1 that the Administrator and Trustee will implement. 

  
 37 

  

	8.4	Minority or Disability 

During the minority or disability of an individual entitled to receive benefits under this Plan, the court may direct the Administrator to
instruct the Trustee to make payments due the individual directly to the individual or to the spouse or a relative or to any individual or institution having custody of the individual. Neither the Administrator nor the Trustee will be required to
cause or to verify the application of any payments so made, and the receipt of the payee, including the endorsement of a check or checks, will be conclusive to all interested parties. 

 

	8.5	Unclaimed Account Procedure 

 The Plan does not require either the Trustee or the Administrator to search for, or to ascertain the whereabouts of, any Participant or Beneficiary. At the time the Participant’s or
Beneficiary’s benefit becomes distributable under Article VI, the Administrator, by certified or registered mail addressed to his or her last known address of record with the Administrator or the Employer, must notify any Participant or
Beneficiary, that he or she is entitled to a distribution under this Plan. The notice must quote the provisions of this Section and otherwise must comply with the applicable notice requirements of Article VI. If the Participant, or Beneficiary,
fails to claim his or her distributive share or make his or her whereabouts known in writing to the Administrator, then the Administrator will treat the Participant’s or Beneficiary’s unclaimed payable Account Balance as forfeited

 If a Participant or Beneficiary who has incurred a Forfeiture of his or her Account Balance under the provisions of the first
paragraph of this Section makes a claim, at any time, for the forfeited Account Balance, the Administrator must restore the Participant’s or Beneficiary’s forfeited Account Balance. 

Upon termination of the Plan, in lieu of the unclaimed account procedure set forth in this Section, Section 15.6 will apply.

 ARTICLE IX 
 Plan Sponsor and Employers 
  

	9.1	Employer Action 

 Whenever
the Employer is permitted or required to do or perform any act under this Plan, it will be done and performed by a person duly authorized to do or perform the act by its legally constituted authority. 

 

	9.2	Plan Amendment 

  

	 	(a)	At any time, the Administrator, by formal written action, may amend or modify this Plan in any manner it deems necessary or desirable, retroactively or prospectively,
in order to conform the Plan and Trust Fund to any requirement for qualification of the Plan and Trust Fund under the Code or ERISA. Notwithstanding anything to the contrary, any other amendment to the Plan will require the approval or ratification
of the Plan Sponsor’s Board of Directors (or a committee thereof). 

  
 38 

  

	 	(b)	A Plan amendment will be in writing and will take effect either after the approval of such amendment, as appropriate, by written resolution of the Administrator or the
Plan Sponsor, or, if such authority has been delegated to an officer of the Plan Sponsor, then, alternatively, upon execution of the amendment by such authorized officer. Notwithstanding the preceding, an amendment that impacts the authority or
responsibility of the Trustee will become effective only upon the consent of the Trustee. 

  

	 	(c)	Unless it is made to secure the approval of the Commissioner of the Internal Revenue Service or other governmental bureau or agency, no amendment or modification of
this Plan will: 

  

	 	(i)	Operate retroactively to reduce or divest the then Nonfofeitable interest in any Individual Accounts or to reduce or divest any benefit then payable hereunder unless
all Participants, Former Participants, and Beneficiaries then having Individual Accounts or benefit payments affected thereby will consent to the amendments or modifications; 

 

	 	(ii)	Directly or indirectly affect any Participant’s Nonforfeitable percentage outside the protection of Treasury Regulation Section 1.411(a)(8);

  

	 	(iii)	Decrease a Participant’s accrued benefit, except to the extent permitted under Code Section 412(c)(8), and reduce or eliminate Code Section 411(d)(6)
protected benefits determined immediately prior to the adoption date (or, if later, the effective date) of the amendment, except as permitted by applicable Treasury Regulations. (An amendment reduces or eliminates Code Section 411(d)(6)
protected benefits if the amendment has the effect of either: (A) eliminating or reducing a retirement-type subsidy (as defined in applicable Treasury Regulations); or (B) except as provided by applicable Treasury Regulations, eliminating
an optional form of benefit. The Administrator must disregard an amendment to the extent application of the amendment would fail to satisfy this paragraph. If the Administrator must disregard an amendment because the amendment would violate clause
(A) or clause (B), the Administrator must maintain a schedule of the optional forms of benefit the Plan must continue for the affected Participant); or 

 

	 	(iv)	Affect the rights, duties or responsibilities of the Trustees or the Administrator without the written consent or approval of the Trustee or Administrator.

  
 39 

  
 Notwithstanding the
foregoing, no amendment will retroactively decrease a Participant’s accrued benefits or otherwise retroactively place greater restrictions or conditions on a Participant’s rights to Code Section 411(d)(6) protected benefits, even if
the amendment adds a restriction or condition that is otherwise permitted under Code Section 411(a), unless otherwise permitted under Treasury Regulation Sections 1.411(d)-3 or 1.411(d)-4. An optional form of benefit hereunder may be eliminated
prospectively, provided that the Plan, as amended, will satisfy the requirements of Treasury Regulation Sections 1.411(d)-3(c), (d), or (e) or 1.411(d)-4. 
  

	 	(d)	If the vesting schedule described in Section 6.3 is amended, a Participant’s vested interest in any contribution to which the vesting schedule in
Section 6.3 applied, will not be less than the Nonforfeitable percentage determined as of the later of the effective date of the amendment or the date of its adoption. A Participant with at least three (3) Years of Service on the last day
of the election period described in this paragraph, may elect to have the Nonforfeitable percentage of the Employer Contribution Accounts determined without regard to the amendment. If a Participant fails to make an election, then the Participant
will be subject to the new vesting schedule. The election period will commence on the date the amendment is adopted or deemed to be made and will end sixty (60) days after the latest of: 

 

	 	(i)	The date of the adoption of the amendment; 

  

	 	(ii)	The effective date of the amendment; or 

  

	 	(iii)	The date the Participant receives written notice of the amendment from the Employer or Administrator. 

 

	 	(e)	The Administrator, without the consent of any Employer, may amend the Plan and Trust, from time to time, in order to conform the Plan and Trust Fund to any requirement
for qualification of the Plan and Trust Fund under the Code. The Administrator may not amend the Plan in any manner that would modify any election made by an Employer without the Employer’s written consent. Furthermore, the Administrator may
not amend the Plan in any manner that would violate the proscriptions of this Section 9.2. The Trustee does not have the power to amend the Plan and Trust Fund. 

 

	9.3	Discontinuance, Termination of Plan 

  

	 	(a)	The Plan Sponsor has the right, at any time, to suspend or discontinue its contributions under the Plan to the Trust Fund, and to terminate, at any time, the Plan and
the Trust. The Plan will terminate on the first to occur of the following events: 

  

	 	(i)	The date the Plan is terminated by action of the Plan Sponsor; 

  

	 	(ii)	The date the Plan Sponsor is judicially declared bankrupt or insolvent, unless the proceeding authorized continued maintenance of the Plan; or 

  
 40 

  

	 	(iii)	The dissolution, merger, consolidation or reorganization of the Plan Sponsor or the sale by the Plan Sponsor of all or substantially all of its assets, unless the
successor or purchaser elects and makes provision to continue the Plan, in which event the successor or purchaser will substitute itself as the Plan Sponsor under this Plan. 

 

	 	(b)	Upon either full or partial termination of the Plan, or, if applicable, upon complete discontinuance of contributions to the Plan, the Individual Accounts of all
Participants, Former Participants, and Beneficiaries will be and become fully vested and Nonforfeitable, notwithstanding the Nonforfeitable percentage that otherwise would apply. The Trustee, in its discretion, may convert some or all of the Trust
Fund to cash, and will deduct therefrom all unpaid charges and expenses, except as the same may be paid by the Employer. The Administrator then will adjust the balance of all Individual Accounts on the basis of the net cash balance and fair market
value of all property in the Trust Fund. Thereafter, the Trustee will distribute the amount to the credit of each Participant, Former Participant, and Beneficiary in cash, in kind, or partly in cash and partly in kind, as the Administrator will
direct. Notwithstanding the foregoing, a distribution made because of a termination of the Plan will be subject to the mandatory distribution requirements of Article VII and the immediate cashout distribution provisions of Section 6.6.

  

	 	(c)	To the extent that this Plan is maintained as a multiple employer plan, the provisions governing the discontinuance or termination of the Plan with respect to an
Employer that is not a Related Employer will be governed under Section 9.5. 

  

	9.4	Prohibition Against Reversion to Plan Sponsor or an Employer 

 Under no circumstances or conditions, other than those specifically provided herein, will the Trust Fund or any portion thereof revert to the Plan Sponsor or any Employer or be used for or diverted to
purposes other than the exclusive benefit of the Participants, Former Participants, and Beneficiaries. No amendment or revocation by the Plan Sponsor of this Section may cause or permit any portion of the Trust Fund to revert to or become a property
of the Plan Sponsor or any Employer. 
  

	9.5	Adoption by Related Employers 

  

	 	(a)	With the written consent of the Plan Sponsor, any other association, corporation, or other business organization, may adopt this Plan and Trust in its entirety,
participate herein and be known as an Employer. The participation of an Employer that is a recipient of Leased Employee services from the Plan Sponsor will be limited to such Leased Employees unless otherwise provided in the Employer’s
participation agreement. 

  
 41 

  

	 	(b)	The following requirements will apply to any Employer who elects to adopt this Plan pursuant to this Article: 

 

	 	(i)	Each Employer will be required to use the same Trustee as provided in this Plan. 

 

	 	(ii)	The Trustee may, but will not be required to, commingle, hold, and invest as one (1) Trust Fund all contributions made by Employers and all increments thereof.

  

	 	(iii)	The transfer of any Participant from or to any Employer participating in this Plan, whether the Participant is an Employee of the Plan Sponsor or an Employer, will not
affect the Participant’s rights under the Plan; all amounts credited to the Participant’s Individual Accounts, all accumulated Service with the transferor or Predecessor Employer, and the length of participation in the Plan will continue
to the Participant’s credit. 

  

	 	(c)	All rights and values forfeited by termination of employment will inure only to the benefit of the Employees and Participants of the Employer that employed the
forfeiting Participant, except, if the Forfeiture is for an Employee whose Employer is a Related Employer. Should an Employee of one (“First”) Employer be transferred to a Related (“Second”) Employer the transfer will not cause
the Employee’s Account Balance, generated while an Employee of the First Employer, in any manner or by any amount, to be forfeited. The Employee’s Account Balance for all purposes of the Plan, including length of Service, will be
considered as though the Employee had always been employed by the Second Employer and as such had received contributions, forfeitures, earnings or losses, and appreciation or depreciation in value of assets totaling the amount so transferred.

  

	 	(d)	Upon an Employee’s transfer between Employers, the Employee involved will carry accumulated Service. No transfer will effect a termination of employment under this
Plan and the Employer to which the Employee transfers will thereupon become obligated under this Plan to the Employee in the same manner as the Employer from whom the Employee transfers. 

 

	 	(e)	Any expenses of the Plan and Trust Fund that are to be paid by the Employer or borne by the Trust Fund will be paid by each Employer in the same proportion that the
total amount standing to the credit of all Participants employed by the Employer bears to the total amount standing to the credit of all Participants. 

  

	 	(f)	Any contribution made by an Employer that is a Related Employer will be paid to and held by the Trustee for the exclusive benefit of the Employees of the Employer and
the Beneficiaries of the Employees, subject to all the terms and conditions of this Plan. Any payment to the Employer made by an entity that is a recipient of the services of Leased Employees pursuant to a written agreement with the Employer that is
deposited with the Trustee will be held by the Trustee for the exclusive benefit of the Participants providing Leased Employee services and their Beneficiaries, subject to all the terms and conditions of this Plan. 

  
 42 

  

	 	(g)	Based on information furnished by each Employer, the Administrator and the Trustee will keep separate books and records concerning the affairs of each Employer and of
the Account Balances of the Participants of each Employer. All contributions or payments made by an Employer will be determined separately on the basis of its net profit and total Compensation paid. 

 

	 	(h)	Each Employer indemnifies and holds harmless the other Employers, the Plan Sponsor, the Administrator, the members of the Committee, the Trustee, and each of their
employees and agents from and against any and all loss resulting from liability to which the other Employers, the Plan Sponsor, the Administrator, the Trustees, or the members of the Committee, or their employees and agents, may be subjected by
reason of the failure by the deemed separate plan of such Employer to satisfy the minimum coverage requirements under Code Section 410(b), the nondiscrimination requirements under Code Sections 401(a)(4), 401(k), and 401(m), Code
Section 415 limitations, Code Section 416 top-heavy requirements, and any other qualification requirements that may be applicable to the Employer on a deemed separate plan basis. Further, the Employers and the Plan Sponsor will indemnify
and hold harmless the Administrator, the members of the Committee, the Trustee or their employees and agents, from and against any and all loss resulting from liability to which the Administrator and the Committee, or the members of the Committee,
and each of their employees and agents, may be subjected by reason of any act or conduct (except willful misconduct or gross negligence) in their official capacities in the administration of this Trust Fund or Plan or both, including all expenses
reasonably incurred in their defense, in case the Employers or the Plan Sponsor fail to provide such defense. The indemnification provisions of this Section do not relieve the Administrator, any Committee member, or the Trustee, or their employees
and agents, from any liability under ERISA for breach of a fiduciary duty. Moreover, the Administrator, the Committee members, the Trustee, the Plan Sponsor, the Employers, and their employees and agents, may execute a letter agreement further
delineating the indemnification agreement of this Section, provided the letter agreement is consistent with and does not violate ERISA. 

  

	 	(i)	Each Employer will be deemed to be a part of this Plan. However, each Employer will be deemed to have designated irrevocably the Plan Sponsor as its agent in all of its
relations with the Trustee, the Committee, and the Administrator. 

  

	 	(j)	Any Employer will be permitted to discontinue or revoke its participation in this Plan. Upon any discontinuance or revocation, satisfactory evidence thereof, and of any
applicable conditions imposed will be delivered to the Trustee. The Trustee will thereafter transfer, deliver, and assign contracts and other Trust Fund assets allocable to the Participants of the Employer to the new plan as will have been
designated by the Employer, if it has established a separate employee benefit pension plan for its employees. If no successor plan is designated, the Trustee will retain the assets for the Employees of the Employer under Article IX. No part of the
corpus or income of the Trust Fund relating to an Employer will be used for or diverted to purposes other than the exclusive benefit of the Employees of that Employer and the Beneficiaries of the Employees. 

  
 43 

  

	 	(k)	A withdrawal by any Employer without any provision for the continuation of a plan for its Employees or, if the Employer is a recipient of the services of Leased
Employees, for its Leased Employees, will constitute a partial termination of the Plan with respect to that Employer. Withdrawal from the Plan by any Employer will not affect the continued operation of the Plan solely with respect to the other
Employers; provided, however, in the event of the withdrawal of an Employer that is a member of a group of Related Employers with respect to which the Plan constitutes a single plan and in the event that provision is made for the continuation of a
defined contribution plan for its Employers separate and distinct from the Plan herein set forth, the share of the assets of the Trust Fund allocable to such group of Employers that is transferred to such other Plan will be determined by the
Administrator subject to the provisions of Section 14.2. 

  

	9.6	Authority of Administrator over Employers 

 The Administrator will have the authority to make any and all necessary rules or regulations binding on all Employers and all Participants and Beneficiaries to effectuate the purposes of this Article.

  

	9.7	Deficiency of Earnings or Profits 

 If any Employer is prevented in whole or in part from making a contribution to the Trust Fund that it otherwise would have made under the Plan because of having no current or accumulated earnings or
profits, or because the earnings or profits are less than the contribution that it otherwise would have made, then so much of the contribution that the Employer was prevented from making may be made for the benefit of the participating Employees of
the Employer by the other Employers that are Related Employers. The contribution by each other Employer will be limited to the proportion of its total current and accumulated earnings or profits remaining after adjustment for its contribution to the
Plan made without regard to this Section, which the total prevented contribution bears to the total current and accumulated earnings or profits of all the Employers remaining after adjustment for all contributions made to the Plan without regard to
this Section. An Employer on behalf of whose Employees a contribution is made under this Section will not reimburse the contributing Employer unless it has otherwise agreed to do so in writing. 

ARTICLE X 

The Committee 
  

	10.1	Committee Appointment 

The Board of Directors of the Plan Sponsor (or a committee thereof) will appoint a Committee consisting of three (3) or more members.
The Board of Directors may remove any member of the Committee at any time and a member may resign by written notice to the Board of Directors. Any vacancy in the membership of the Committee will be filled by appointment made by the Board of
Directors, but pending the filling of any vacancy, the then members of the Committee may act under this Plan as though they alone constitute the full Committee. The Plan Sponsor will notify the Trustee promptly of the appointment of the Committee
and of any change in the membership of the Committee. Upon the termination of the employment of a Committee member with the Employer and all Related Employers, his or her membership on the Committee will be deemed to be resigned effective as of the
date on which the member’s employment is terminated. 

  
 44 

  

	10.2	Committee Action and Procedure 

  

	 	(a)	Any and all acts and decisions of the Committee will be by at least a majority of the then members. The Committee may delegate to any one or more of its members the
authority to sign notices or other documents on its behalf or to perform ministerial acts for it, in which event the Trustee and any other person may accept the notice, document or act without question as having been authorized by the Committee.

  

	 	(b)	The Committee may, but need not, call or hold formal meetings, and any decisions made or actions taken pursuant to written approval of a majority of the then members
will be sufficient. 

  

	 	(c)	The Committee will maintain adequate records of its decisions, which records will be subject to inspection by the Employer and by any Participant, Former Participant,
or Beneficiary, but only to the extent that they apply to the individuals. 

  

	 	(d)	The Committee may designate one (1) of its members as chairman and one (1) of its members as secretary and may establish policies and procedures governing it
if they are consistent with this Plan. 

  

	10.3	Committee Powers and Duties 

 The Committee will perform the duties and may exercise the powers and discretion given to it in this Plan, and its decisions and actions will be final and conclusive regarding all persons affected
thereby. The Committee will exercise its discretion at all times in a nondiscriminatory manner. Subject to any limitations stated in this Plan, the Committee is authorized and empowered with the following powers, rights, and duties: 

 

	 	(a)	To determine the rights of eligibility of an Employee to participate in the Plan, the value of a Participant’s Account Balance, and the Nonforfeitable percentage
of each Participant’s Individual Accounts; 

  

	 	(b)	To adopt rules of procedure and regulations necessary for the proper and efficient administration of the Plan provided the rules are consistent with the terms of this
Plan; 

  
 45 

  

	 	(c)	To construe and enforce the terms of the Plan and the rules and regulations it adopts, including interpretation of the Plan documents and documents related to the
Plan’s operation; 

  

	 	(d)	To direct the Trustee concerning the crediting and distribution of the Trust Fund; 

 

	 	(e)	To review and render decisions respecting a claim for, or denial of a claim for, a benefit under the Plan; 

 

	 	(f)	To furnish the Employer with information that the Employer may require for tax or other purposes; 

 

	 	(g)	To engage the service of agents whom it may deem advisable to assist it with the performance of its duties; 

 

	 	(h)	To engage the services of an Investment Manager or Managers (as defined in ERISA Section 3(38)), each of whom will have full power and authority to manage, acquire
or dispose, or direct the Trustee with respect to acquisition or disposition, of any Plan asset under its control; and 

  

	 	(i)	To establish, in its sole discretion, a nondiscriminatory policy, pursuant to this Section, which the Trustee must observe in making loans, if any, to Participants and
Beneficiaries. 

  

	10.4	Committee Reliance 

 The
Trustee may rely without question on any notices or other documents received from the Committee. The Plan Sponsor and each Employer will furnish the Committee with all data and information available to the Employer, which the Committee may
reasonably require to perform its functions under this Plan. The Committee may rely without question on any data or information furnished by the Plan Sponsor and each Employer. 

 

	10.5	Committee Authority 

 Any
and all disputes that may arise involving Participants, Former Participants, Beneficiaries, and/or the Trustee will be referred to the Committee, and its decisions will be final and conclusive regarding all affected persons. Furthermore, if any
issue arises concerning the meaning, interpretation or application of any provisions of this Plan, the decision of the Committee on any issue will be final. 
  

	10.6	Conflicts of Interest 

Notwithstanding any other provisions of this Plan, no member of the Committee may vote or otherwise act on any matter involving the
Committee member’s rights, benefits, or other participation under this Plan. 

  
 46 

  

	10.7	Appointment of Agent and Legal Counsel 

 The Committee may engage agents to assist it and may engage legal counsel who may be counsel for the Plan Sponsor. All reasonable expenses incurred by the Committee will be paid by the Plan Sponsor.

  

	10.8	Annual Accounting 

 As
soon as administratively feasible after the last day of each Plan Year, but within the time prescribed by ERISA and the applicable Labor Regulations and at least annually, the Committee will advise each Participant, Former Participant, and
Beneficiary for whom Individual Accounts are held under this Plan of the then balance in the Participant’s Individual Accounts and the other information ERISA requires to be furnished. No Participant except a member of the Committee will have
the right to inspect the records reflecting the Individual Accounts of any other Participant. 
  

	10.9	Funding Policy 

 The
Committee will review, not less often than annually, all pertinent Employee information and Plan data to establish the funding policy of the Plan and to determine the appropriate methods of carrying out the Plan’s objectives. The Committee must
communicate periodically, as it deems appropriate, to the Trustee the Plan’s short-term and long-term financial needs so investment policy can be coordinated with Plan financial requirements. 

ARTICLE XI 

Administration 
  

	11.1	Administrator Appointment 

The Committee will be the Administrator of this Plan and will be responsible for filing all reporting and disclosure documents required by
the Department of Labor and the Internal Revenue Service in accordance with ERISA, the Code, and the respective regulations. Service of process on the Plan or Trust Fund may be obtained by personal service on the Employer or any Committee member.

  

	11.2	Summary Plan Description 

The Administrator will furnish a summary plan description to each Participant within ninety (90) days after becoming a Participant
and to each Beneficiary receiving benefits under the Plan within ninety (90) days after beginning to receive benefits. If there is a modification or change in the Plan, the Administrator will furnish to each Participant and each Beneficiary who
is receiving benefits, a summary description of the change or modification not later than two hundred ten (210) days after the end of the Plan Year in which the change is adopted. 

  
 47 

  

	11.3	Summary Annual Report 

The Administrator will furnish to each Participant and each Beneficiary receiving benefits a summary of the Annual Return/Report of the
Plan containing a statement of the Plan assets and liabilities, receipts and disbursements, and other information fairly summarizing the Plan’s financial statement within two hundred ten (210) days after the close of each Plan Year, or an
extended period as may be permitted by the Secretary of Labor. 
  

	11.4	Individual Benefit Statements 

 The Administrator will furnish to any Participant or Beneficiary receiving benefits, who requests in writing, a statement reporting the total benefits accrued and the Nonforfeitable benefits, if any,
which have accrued or the earliest date on which benefits will become Nonforfeitable. In no event will a Participant or Beneficiary be entitled to receive the report described in this Section more than once in every twelve (12) month period.

  

	11.5	Copies of Additional Documents 

 Upon written request from a Participant or Beneficiary receiving benefits, the Administrator will furnish a copy of any one (1) or all of the following documents: the latest updated summary plan
description, the latest annual report, any terminal report, Trust agreement, contract or other instruments under which the Plan was established or is operated. The Administrator may make a reasonable charge to cover the cost of furnishing complete
copies. 
  

	11.6	Documents Available for Examination 

 Copies of the Plan description and the latest annual report, Trust agreement, contract or other instruments under which the Plan was established or is operated will be available for examination at the
principal office of the Employer by any Participant or Beneficiary receiving benefits. Examination may be made during reasonable hours in person or by agent, accountant, or attorney. 

 

	11.7	Notice of Participant Rights under ERISA 

 The Administrator will furnish to each Participant and to each Beneficiary receiving benefits information on their rights under the Plan and how the rights may be protected by law. 

 

	11.8	Notice to Participant on Participant Termination 

 The Administrator will furnish a statement to a Participant who terminated Service with the Employer for any of the reasons set forth in Articles V through VIII, describing the nature, amount and form of
the Nonforfeitable Account Balance, if any, to which the Participant is entitled as soon as administratively feasible after the close of the Plan Year in which the Participant terminated Service. 

  
 48 

  

	11.9	Notice to Trustee on Participant Termination 

  

	 	(a)	As soon as practicable after a Participant terminates employment with the Employer for any of the reasons set forth in Article VI, the Administrator will give written
notice to the Trustee, including the following information and directions that may be necessary or advisable under the circumstances: 

  

	 	(i)	Name and address of the Participant; 

  

	 	(ii)	Reason the Participant terminated employment with the Employer; 

  

	 	(iii)	Name and address of the Beneficiary or Beneficiaries of a deceased Participant; 

 

	 	(iv)	Nonforfeitable percentage or amount to which the Participant is entitled on termination of employment pursuant to Article VI; and 

 

	 	(v)	Time, manner, and amount of payment to be made pursuant to the Participant’s election under Article VIII. 

If a Former Participant or Beneficiary dies, the Administrator will give like notice to the Trustee, but only if the Administrator learns
of the death. 
  

	 	(b)	At any time and from time to time after giving the notice provided under this Section, the Administrator may modify the original notice or any subsequent notice by a
further written notice or notices to the Trustee, but any action taken or payments made by the Trustee pursuant to a prior notice will not be affected by a subsequent notice. 

 

	 	(c)	A copy of each notice provided under this Section will be mailed by the Administrator to the Participant, Former Participant, or Beneficiary involved, but the failure
to send or receive the copy will not affect the validity of any action taken or payment made pursuant thereto. 

  

	 	(d)	Upon receipt of any notice provided under this Section, the Trustee will promptly take any action and make any payments directed in the notice. The Trustee may rely on
the information and directions in the notice absolutely and without question. However, the Trustee may inform the Administrator of any error or oversight that the Trustee believes to exist in any notice. 

 

	11.10	Claims for Benefits 

Normally, whenever a Participant or Beneficiary becomes entitled to benefits under this Plan, the Administrator and the Trustee will
automatically initiate procedures to provide for the payment of the benefits. If a Participant or Beneficiary believes that he or she is entitled to the payment of benefits under this Plan and no action is forthcoming from the Administrator or the
Trustee, then the Participant or Beneficiary may file a written claim for benefits with the Administrator or the Trustee. 

  
 49 

  

	11.11	Appeals of Decisions of the Committee 

  

	 	(a)	If any Participant or Beneficiary (“Claimant”) files a claim for benefits under this Plan and the claim is denied in whole or in part, the Administrator will
give notice of the decision to the Claimant in writing setting forth: 

  

	 	(i)	The specific reasons for the denial; 

  

	 	(ii)	A specific reference to pertinent provisions of the Plan, if any, upon which the denial is based; 

 

	 	(iii)	A description of any additional material or information necessary for the Claimant to perfect the claim with an explanation of the necessity therefor; and

  

	 	(iv)	That any appeal the Claimant wishes to make of the adverse determination must be in writing to the Administrator within sixty (60) days after receipt of the
Administrator’s notice of denial of benefits. The Administrator’s notice must further advise the Claimant that failure to appeal the action in writing within the sixty (60) day period will render the Administrator’s determination
final, binding and conclusive. 

  

	 	(b)	The written notice will be given to the Claimant as soon as administratively feasible after the decision is made, but not later than sixty (60) days after the
claim is filed. The Claimant will have the right to be represented, to review pertinent documents and to present written and oral evidence. 

  

	 	(c)	If the Claimant should appeal to the Administrator, the Claimant or the duly authorized representative, may submit, in writing, issues and comments the Claimant or the
duly authorized representative considers pertinent. The Administrator will render the decision on the review and will set forth the specific reasons for the decision with specific references to pertinent provisions. The Administrator will render the
decision in writing within sixty (60) days after receipt of the request for review unless special circumstances, such as the need for a hearing, require an extension that will not exceed an additional sixty (60) days.

  

	11.12	Special Rules for Disability Claims 

 Notwithstanding Sections 11.10 and 11.11 above, the following rules and procedures will apply to claims and appeals arising on account of a Participant’s Disability. 

 

	 	(a)	Disability Benefit Claims. The Administrator will review all claims for Disability benefits, and will notify the Claimant of any adverse benefit determination
within a reasonable period of time, but generally no later than forty five (45) days after receipt of the claim by the Plan. Such notice will contain the information required under Section 11.11(a) above. 

  
 50 

  

	 	(i)	This initial forty five (45)-day period may be extended up to an additional thirty (30) days, where the Administrator determines that the extension is necessary
due to matters beyond the control of the Plan. The Administrator will notify the Claimant of any extension before the expiration of the initial forty five (45)-day period. This notice will indicate the special circumstances requiring an extension
and the date by which the Administrator expects to render a decision. This notice will also specifically explain the standards on which entitlement to a claim is based, the unresolved issues that prevent a decision, and any additional information
needed to resolve these issues. Where the Administrator determines that a second thirty (30)-day extension is necessary due to matters beyond the control of the Plan, a similar extension notice will be provided to the Claimant before the end of the
first thirty (30)-day extension period. 

  

	 	(ii)	The Claimant will have an additional forty five (45) days from receipt of an extension notice to provide any additional specified information. The period for
making the benefit determination will be suspended until the Claimant provides this information. A Claimant’s failure to respond to a request for additional information within forty five (45) days, however, will lead to an adverse
determination on his or her claim. 

  

	 	(b)	Disability Benefit Appeals. A Claimant may file an appeal of an adverse determination on a Disability benefit claim within one hundred eighty (180) days
following receipt of a notification of the adverse determination. 

  

	 	(i)	The review will not afford deference to the initial adverse determination, and the review will be conducted by an appropriate Named Fiduciary of the Plan who is neither
the individual who made the initial adverse determination, nor that individual’s subordinate. 

  

	 	(ii)	In deciding the appeal of any adverse determination that is based in whole or in part on medical judgment, the appropriate Named Fiduciary will consult with a health
care professional who has appropriate training and experience in the field of medicine involved in the medical judgment. The health care professional engaged for this purpose will be an individual who was neither consulted in connection with the
initial adverse determination, nor any subordinate of such person. The Named Fiduciary will identify any medical or vocational experts whose advice was obtained in connection with a Claimant’s adverse determination, without regard to whether
the advice was relied upon in making the benefit determination. 

  

	 	(iii)	The Claims Administrator will notify the claimant of its benefit determination in writing within a reasonable period following receipt of the claimant’s request
for review, but no later than forty five (45) days after receipt of the Claimant’s appeal. 

  
 51 

  
 ARTICLE XII

 Investment of Trust Assets 
  

	12.1	Appointment of Trustee 

The Plan Sponsor will determine the number of Trustees, will appoint such Trustees, and may at any time, and from time to time, increase
or decrease the number of Trustees. The Plan Sponsor may remove any Trustee at any time and appoint a successor Trustee or Trustees or reduce the number of Trustees (but not to less than one). The Trustee or Trustees will have such rights, powers,
and duties as will from time to time be specified in or determined pursuant to the Trust Agreement. The Trust Agreement will form a part of the Plan, and the Trust Fund assets will be administered in accordance with the terms of the Plan and the
Trust Agreement. 
  

	12.2	Investment of Accounts 

  

	 	(a)	All Individual Accounts will be invested and reinvested by the Trustee in accordance with Participant direction, as provided herein. 

 

	 	(i)	Each Participant, in his written application for participation or through such other means as may be authorized by the Administrator, if any, will direct the
Administrator and the Trustee as to which Investment Fund(s) he wishes to utilize and the percentage of his Individual Accounts he wishes to have invested in each fund. 

 

	 	(ii)	A Participant may change his designation of the manner for investment of such Participant’s Individual Accounts, or current contributions made on behalf of or by
the Participant, or both, to any other manner permitted hereunder. This change may be made in writing to the Administrator or through such other means as may be authorized by the Administrator, if any. A change will be applicable as soon as
administratively feasible following its delivery to the Trustee. In order to comply with applicable federal or state securities laws, the Administrator may establish such rules with respect to the change of investment designation by Participants as
it will deem necessary or advisable to prevent possible violations of such laws. 

  

	 	(iii)	To the extent a Participant fails to direct the investment of all or any portion of his or her Individual account, the Administrator will direct the Trustee to invest
such Individual Accounts in one of the Investment Funds available for the Participants to choose among, in accordance with applicable Labor Regulations. 

 The Administrator may permit a Participant to make an election under this Section through any electronic or telephonic means authorized by the Administrator. 

  
 52 

  

	 	(b)	Investment Funds. The Administrator will select the “Investment Funds” available under the Plan in accordance with a separate written investment
policy. The Administrator will select and maintain such Investment Funds in accordance with the Administrator’s written investment policy. Such Investment Funds will be communicated to Participants in writing. All Individual Accounts will be
allocated by the Administrator to the Investment Funds specified in the separate written investment policy. Dividends, interest, and other distributions will be reinvested in the same Investment Fund from which they are received.

 Except as otherwise provided, the assets of each Investment Fund will be invested exclusively in shares of the
registered investment company designated by the Administrator, provided that such shares constitute securities described in ERISA Section 401(b)(1). Amounts invested in any such Investment Fund in amounts estimated by the Trustee to be needed
for cash withdrawals, or in amounts too small to be reasonably invested, or in amounts that the Trustee deems to be in the best interest of the Participants, may be retained by the Trustee in cash or invested temporarily. 

 

	12.3	Income and Expenses 

  

	 	(a)	The dividends, capital gains distributions, and other earnings received on an Investment Fund that is specifically credited to a Participant’s or Former
Participant’s separate Individual Accounts under the Plan will be allocated to such separate Individual Accounts and immediately reinvested, to the extent practicable, in additional shares of such Investment Fund. 

 

	 	(b)	Fees charged by the Trustee and other expenses of operating the Trust will be paid by the Employers or, in the absence of such payments (that are not obligatory), out
of the general Trust Fund assets and charged to the separate Individual Accounts of all Participants and Former Participants under the Plan in the ratio that the fair market value of each such Individual Account bears to the total fair market value
of all separate Individual Accounts; provided, however, that such amounts will be adjusted to reflect any revenue sharing payments received from an Investment Fund. 

 

	12.4	Exclusive Benefit 

 The
Plan and the Trust Fund are established and will be maintained for the exclusive benefit of the Participants, Former Participants, and their Beneficiaries. Subject to the exceptions expressly set forth in the Plan or the Trust Agreement, no part of
the Trust Fund assets may ever revert to an Employer or be used for or diverted to purposes other than the exclusive benefit of the Participants, Former Participants, and Beneficiaries. 

 

	12.5	Valuation 

 The value of
each Participant’s Individual Accounts will be determined as of each Valuation Date, on the basis of the fair market value of the assets allocated to each such Participant’s Individual Accounts, as appraised by the Trustee. 

  
 53 

  

	 	(a)	As of each Valuation Date, the Administrator will determine the fair market value of each Investment Fund being administered by the Trustee. With respect to each such
Investment Fund, the Administrator will determine (i) the change in value between the current Valuation Date and the then last preceding Valuation Date, (ii) the net gain or loss resulting from expenses paid (including fees and expenses,
if any, which are to be charged to such Investment Fund), and (iii) realized and unrealized gains and losses. 

 The transfer of funds to or from an Investment Fund and payments, distributions, and withdrawals from an Investment Fund to provide benefits under the Plan for Participants or Beneficiaries will not be
deemed to be gains, expenses, or losses of an Investment Fund. 
 As of each Valuation Date, the Administrator will direct the
Trustee to allocate the net gain or loss of each Investment Fund on the Valuation Date to the accounts of Participants participating in such Investment Fund on such Valuation Date. Contributions and rollovers received and credited to
Participants’ Individual Accounts as of such Valuation Date, or as of an earlier date since the last preceding Valuation Date will not be considered in allocating gains or losses allocated to Participants’ accounts. 

 

	 	(b)	The reasonable and equitable decision of the Administrator as to the value of each Investment Fund, and of any Individual Account as of each Valuation Date will be
conclusive and binding upon all persons having any interest, direct or indirect, in the Investment Funds or in any account. 

  

	12.6	Investment Policy 

 The
Trustee will be obliged only to use good faith and to exercise its honest judgment as to what investments are from time to time in the best interests of the Trust Fund and the Participants and their Beneficiaries. Furthermore, the Trustee may hold
any portion of the Trust Fund in cash and uninvested whenever it deems such holding necessary or advisable. 
  

	12.7	Divestment of Employer Securities 

  

	 	(a)	Rule Applicable to Salary Deferral Contributions. For Plan Years beginning after December 31, 2006, if any portion of the Individual Accounts of a
Participant (including a Beneficiary entitled to exercise the rights of a Participant) attributable to Salary Deferral Contributions is invested in publicly-traded Employer securities, the Participant may elect to direct the Plan to divest any such
securities, and to reinvest an equivalent amount in other investment options that satisfy the requirements of Subsection (c). 

  

	 	(b)	Rule Applicable to Employer Contributions. If any portion of a Participant’s Individual Accounts attributable to Matching Contributions or Profit Sharing
Contributions is invested in publicly-traded Employer securities, then a Participant who has completed at least three (3) Years of Service, or a Beneficiary of any deceased Participant entitled to exercise the right of a Participant, may elect
to direct the Plan to divest any such securities, and to reinvest an equivalent amount in other investment options which satisfy the requirements of Subsection (c). 

  
 54 

  

	 	(c)	Investment Options. For purposes of this Section, other investment options must include not less than three (3) investment options, other than Employer
securities, to which the Participant may direct the proceeds of divestment of Employer securities required by this Section, each of which is diversified and has materially different risk and return characteristics. The Plan must provide reasonable
divestment and reinvestment opportunities at least quarterly. Except as provided in regulations, the Plan may not impose restrictions or conditions on the investment of Employer securities that the Plan does not impose on the investment of other
Plan assets, other than restrictions or conditions imposed by reason of the application of securities laws or a condition permitted under Internal Revenue Service Notice 2006-107 or other applicable guidance. 

 

	 	(d)	Treatment as Publicly-Traded Employer Securities. Except as provided in Treasury Regulations or in Code Section 401(a)(35)(F)(ii) (relating to certain
controlled groups), a plan holding Employer securities that are not publicly-traded Employer securities is treated as holding publicly-traded Employer securities if any Employer corporation, or any member of a controlled group of corporations which
includes such Employer corporation (as defined in Code Section 401(a)(35)(F)(iii)) has issued a class of stock that is a publicly-traded Employer security. 

 ARTICLE XIII 
 Participant Loans 

 

	13.1	General 

 Unless otherwise
provided by the Administrator, the Plan authorizes the Trustee to make loans on a nondiscriminatory basis to a Participant or Beneficiary in accordance with the written loan policy established by the Administrator, provided (i) the loan policy
satisfies the requirements of Code Section 72(p); (ii) loans are available to all Participants and Beneficiaries on a reasonably equivalent basis and are not available in a greater amount for Highly Compensated Employees than for other
Employees; (iii) any loan is adequately secured and bears a reasonable rate of interest; (iv) the loan provides for repayment within a specified time; (v) the default provisions of the note prohibit offset of the Participant’s
Nonforfeitable Account Balance prior to the time the Trustee otherwise would distribute the Participant’s Nonforfeitable Account Balance; and (vii) the loan otherwise conforms to the exemption provided by Code Section 4975(d)(1).

  
 55 

  

	13.2	Loan Policy 

 If the
Administrator adopts a loan policy, pursuant to Section 10.3(i), the loan policy must be a written document and must include (i) the identity of the person or positions authorized to administer the Participant loan program; (ii) a
procedure for applying for the loan; (iii) the criteria for approving or denying a loan; (iv) the limitations, if any, on the types and amounts of loans available; (v) the procedure for determining a reasonable rate of interest;
(vi) the types of collateral that may secure the loan; and (vii) the events constituting default and the steps the Plan will take to preserve Plan assets in the event of default. This Section specifically incorporates any written loan
policy adopted by the Administrator as part of this Plan. 
  

	13.3	Special Rules under USERRA for Loan Repayments. 

 Loan repayments will be suspended under this Plan, as permitted under Code Section 414(u)(4), on behalf of those Participants who are on an authorized leave of absence pursuant to qualified military
service. 
 ARTICLE XIV 
 Rollovers, Mergers, and Direct Transfers 
  

	14.1	Participant Rollover Contributions 

 Any Participant who has the Employer’s written consent and who has filed with the Trustee the form prescribed by the Administrator may contribute cash or other property to the Trust other than as a
voluntary contribution if the contribution is a Rollover Contribution that the Code permits an Employee to transfer either directly or indirectly from one qualified plan to another qualified plan. Before accepting a Rollover Contribution, the
Trustee may require an Employee to furnish satisfactory evidence that the proposed transfer is in fact a Rollover Contribution that the Code permits an Employee to make to a qualified plan. A Rollover Contribution is not an Annual Addition for
purposes of Code Section 415. 
 An Eligible Employee, prior to satisfying the Plan’s conditions, may make a Rollover
Contribution to the Trust Fund to the same extent and in the same manner as a Participant. If an Employee makes a Rollover Contribution to the Trust Fund prior to satisfying the Plan’s eligibility conditions, the Administrator and Trustee must
treat the Eligible Employee as a Participant for all purposes of the Plan except the Eligible Employee is not a Participant for purposes of sharing in Employer contributions or Participant Forfeitures under the Plan until the Employee actually
becomes a Participant in the Plan. If the Eligible Employee has a termination of employment prior to becoming a Participant, the Trustee will distribute the Rollover Account to the individual. 

For any Rollover Contribution, the following requirements will be met: 

 

	 	(a)	The Administrator will maintain a Participant’s Rollover Contributions in a separate Rollover Account. 

  
 56 

  

	 	(b)	Except with respect to a Plan asset properly subject to Employer, Participant, or Administrator direction of investment, the Trustee will invest the Rollover
Contribution in a segregated investment Rollover Account for the Participant’s sole benefit unless the Trustee, in its sole discretion, agrees to invest the Rollover Contribution as part of the Trust Fund. The Trustee will not have any
investment responsibility for a Participant’s segregated Rollover Account. The Participant, however, from time to time, may direct the Trustee in writing on the investment of the segregated Rollover Account in an Investment Fund. A
Participant’s segregated Rollover Account alone will bear any extraordinary expenses resulting from investments made at the direction of the Participant. As of the Valuation Date, the Administrator will allocate and credit the net income or
charge the net loss from a Participant’s segregated Rollover Account and credit or charge respectively the increase or decrease in the fair market value of the assets of a segregated Rollover Account solely to that Rollover Account. The Trustee
is not liable nor responsible for any loss resulting to any Beneficiary, nor to any Participant, because of any sale or investment made or other action taken pursuant to and in accordance with the direction of the Participant. In all other respects,
the Trustee will hold, administer, and distribute a Rollover Contribution in the same manner as any Employer contribution made to the Trust Fund. 

  

	 	(c)	A Participant’s Rollover Contributions will not be forfeitable nor reduce in any way the obligations of the Employer under this Plan. 

 

	 	(d)	The Plan will accept a direct rollover of an eligible rollover distribution from: (i) a qualified plan described in Code Section 401(a) or 403(a), excluding
after-tax employee contributions; (ii) an annuity contract described in Code Section 403(b), excluding after-tax employee contributions; and (iii) an eligible plan under Code Section 457(b) that is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. 

  

	 	(e)	The Plan will accept a Participant Rollover Contribution of the portion of a distribution from an individual retirement account or annuity described in Code
Section 408(a) or 408(b) that is eligible to be rolled over and would otherwise be includible in gross income. 

  

	14.2	Mergers and Direct Transfers 

 To the extent directed by the Administrator, the Trustee possesses the specific authority to enter into merger agreements or direct transfer of assets agreements with the trustees of other retirement
plans described in Code Section 401(a), and to accept the direct transfer of Plan assets or to transfer plan assets, as a party to any agreement. Further, the Trustee may permit the transfer of Plan assets to an individual retirement account or
an individual retirement annuity. However, the Trustee, before any merger or direct transfer is consummated, will be satisfied that the holding of any transferred assets is permitted by the transferee trusts. In addition, the Trustee must reasonably
determine, prior to permitting such a transfer, that the transferee plan will continue the distribution restrictions of Code Sections 401(k)(2) and 401(k)(10) on any transferred amounts that are attributable to Salary Deferral Contributions of
Participants. When the Trustee is so satisfied, the Trustee will accept the direct transfer of plan assets or will cause to be transferred the assets directed to be transferred. The Trustee may accept a direct transfer of plan assets on behalf of an
Employee prior to the date the Employee satisfies the Plan’s eligibility conditions. If the Trustee accepts a direct transfer of plan assets, the Administrator and Trustee must treat the Employee as a Participant for all purposes of the Plan
except that the Employee is not a Participant for purposes of sharing in any Employer contributions or Forfeitures under the Plan until the Employee actually becomes a Participant in the Plan. 

  
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 The Trustee may not
consent to, or be a party to, any merger or consolidation with another plan or to a transfer of assets and liabilities to another plan, unless, immediately after the merger, consolidation or transfer the surviving plan provides each Participant a
benefit equal to or greater than the benefit each Participant would have received had the plan terminated immediately before the merger, consolidation, or transfer. 
  

	14.3	Rules Concerning Certain Rollovers, Mergers, and Direct Transfers 

 The Trustee will hold, administer, and distribute the transferred assets as a part of the Trust Fund and the Trustee must maintain a separate Individual Accounts for the benefit of the Employees on whose
behalf the Trustee accepted the transfer to reflect the value of the transferred assets. 
 The Plan will preserve all Code
Section 411(d)(6) protected benefits with respect to those transferred assets, in the manner described in Section 9.2(c)(iii). 
 If the Plan receives a direct transfer, by merger or otherwise, of Salary Deferral Contributions, or amounts treated as Salary Deferral Contributions, under a plan with a Code Section 401(k)
arrangement, the distribution restrictions of Code Sections 401(k)(2) and 401(k)(10) continue to apply to those transferred Salary Deferral Contributions. 
 ARTICLE XV 
 Exclusive Benefit 

 

	15.1	Exclusive Benefit 

 Except
as otherwise provided, no Employer will have a beneficial interest in any asset of the Trust Fund and no part of any asset in the Trust Fund may ever revert to or be repaid to an Employer, either directly or indirectly. Further, prior to the
satisfaction of all liabilities with respect to the Participants and their Beneficiaries under the Plan, no part of the corpus or income of the Trust Fund, or any asset of the Trust Fund, may be used for, or diverted to, purposes other than the
exclusive benefit of the Participants or their Beneficiaries. No amendment or revocation by the Administrator or Plan Sponsor of this Section may cause or permit any portion of the Trust Fund to revert to or become a property of the Employer.

  
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	15.2	Denial of Request for Approval 

 Any contribution to the Trust Fund associated with this Plan is conditioned on qualification of the Plan under applicable Code Sections and of the exemption of the Trust Fund created under the Plan under
Code Section 501(a). If the Commissioner of the Internal Revenue Service, upon the Plan Sponsor’s request for approval of this Plan and Trust, determines that the Plan is not qualified or the Trust Fund is not exempt, then the Trustee may
return to the Employer, within one (1) year after the date of final disposition of the Plan Sponsor’s request for initial approval, any contribution made by the Employer, and any increment attributable to the contribution. 

 

	15.3	Mistake of Fact 

Notwithstanding any contrary provision in this Plan, if a contribution is made by an Employer by a mistake of fact, the contribution may
be returned to the Employer within one (1) year after the payment of the contribution. The amount of the mistaken contribution is equal to the excess of (i) the amount contributed over (ii) the amount that would have been contributed
had there not occurred a mistake of fact. Earnings attributable to mistaken contributions may not be returned to the Employer, but losses attributable thereto will reduce the amount to be returned. 

 

	15.4	Disallowance of Deduction 

Notwithstanding any contrary provision in this Plan, any contributions by the Employer to the Plan and Trust are conditioned on the
deductibility of the contribution by the Employer under the Code. To the extent any deduction is disallowed, the Employer, within one (1) year following a final determination of the disallowance, whether by agreement with the Internal Revenue
Service or by final decision in a court of competent jurisdiction, may demand repayment of the disallowed contribution, and the Trustee will return the contribution within one (1) year following the disallowance. Earnings attributable to excess
contributions may not be returned to the Employer, but losses attributable thereto will reduce the amount to be returned. 
  

	15.5	Spendthrift Clause 

Except as provided below, no Participant, Former Participant, or Beneficiary will have the right to anticipate, assign, or alienate any
benefit provided under the Plan and the Trustee will not recognize any anticipation, assignment or alienation. Furthermore, a benefit under the Plan is not subject to attachment, garnishment, levy, execution, or other legal or equitable process. All
provisions of this Plan will be for the exclusive benefit of those designated herein. These restrictions will not apply in the following case(s): 
  

	 	(a)	Distributions Pursuant to Qualified Domestic Relations Orders. The Administrator may direct the Trustee under the nondiscriminatory policy adopted by the
Administrator to pay an Alternate Payee designated under a qualified domestic relations order as defined in Code Section 414(p) or any domestic relations order entered before January 1, 1985 if payment of benefits pursuant to the order has
commenced as of that date. To the extent provided under a qualified domestic relations order, a former spouse of a Participant will be treated as the spouse or for all purposes of the Plan. 

  
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 Effective April 6,
2007, a domestic relations order that otherwise satisfies the requirements for a qualified domestic relations order will not fail to be qualified: (i) solely because the order is issued after, or revises, another domestic relations order; or
(ii) solely because of the time at which the order is issued, including issuance after the Participant’s death. 
  

	 	(b)	Participant Loans. If a Participant, Former Participant, or Beneficiary who has become entitled to receive payment of benefits under this Plan is indebted to the
Trustee, by virtue of a Participant loan, the Administrator may direct the Trustee to pay the indebtedness and charge it against the Account Balance of the Participant, Former Participant, or Beneficiary. 

 

	 	(c)	Distributions Under Certain Judgments and Settlements. Nothing contained in this Plan prevents the Trustee from complying with a judgment or settlement that
requires the Trustee to reduce a Participant’s benefits under the Plan by an amount that the Participant is ordered or required to pay to the Plan if each of the following criteria are satisfied: 

 

	 	(i)	The order or requirement must arise – 

  

	 	(A)	Under a judgement or conviction for a crime involving the Plan; 

  

	 	(B)	Under a civil judgment (including a consent order or decree) entered by a court in an action brought in connection with an actual or alleged violation of Part 4 of
Title I of ERISA; or 

  

	 	(C)	Under a settlement agreement with either the Secretary of Labor or the Pension Benefit Guarantee Corporation and the Participant in connection with an actual or alleged
violation of Part 4 of Title I of ERISA by a fiduciary or any other person. 

  

	 	(ii)	The decree, judgment, order, or settlement expressly provides for the offset of all or part of the amount ordered or required to be paid to the Plan against the
Participant’s benefits under the Plan. 

  

	15.6	Termination 

 Upon
termination of the Plan, in lieu of the distribution provisions of Article VIII, the Administrator will direct the Trustee to distribute each Participant’s Nonforfeitable Account Balance, in a single sum, as soon as administratively feasible
after the later of the termination of the Plan or the receipt of a favorable determination letter from the Internal Revenue Service, if an application is filed, irrespective of the present value of the Participant’s Nonforfeitable Account
Balance and whether the Participant consents to that distribution. This paragraph applies only if: 

  
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	 	(a)	The Plan does not provide an annuity option; 

  

	 	(b)	The Plan is a profit sharing plan on its termination date; and 

  

	 	(c)	As of the period between the Plan termination date and the final distribution of assets, the Employer does not maintain any other defined contribution plan (other than
an employee stock ownership plan). 

 For Participants or Beneficiaries who cannot be located upon Plan
termination, and whose Nonforfeitable Account Balance exceeds $1,000, to liquidate the Trust, the Trustee will purchase a deferred annuity contract, distribute the benefits to an individual retirement account, or transfer the account to an ongoing
qualified plan of the Employer or a Related Employer. If the Administrator distributes the lost Participant’s or Beneficiary’s benefits to an individual retirement account or purchases an annuity, and the Participant’s or
Beneficiary’s whereabouts remain unknown for the duration of the escheat period, the benefits will ultimately escheat to the state under applicable state law. 
 Notwithstanding the foregoing, distributions may not be made following termination of the Plan if the Plan Sponsor establishes or maintains an alternative defined contribution plan as described in
Treasury Regulation Section 1.401(k)-1(d)(4)(i). 
 ARTICLE XVI 

Construction 
  

	16.1	Headings 

 The headings in
this Plan are for convenience only and will not be considered in construing this Plan. 
  

	16.2	Context 

 In this Plan,
wherever the context of the Plan dictates, words used in the masculine may be construed in the feminine, the plural includes the singular and the singular includes the plural. 

 

	16.3	Employment Not Guaranteed 

Nothing contained in this Plan, or regarding the establishment of the Plan or Trust Fund, or any modification or amendment to the Plan or
Trust Fund, or in the creation of any Individual Accounts, or the payment of any benefit, will be construed as giving any Employee, Participant, or Beneficiary any right to continue in the employment of the Employer, any legal or equitable right
against the Administrator, against the Employer, its stockholders, officers, or directors, or against the Trustee, except as expressly provided by the Plan, the Trust Fund, ERISA, or by separate agreement. Employment of all persons by the Employer
will remain subject to termination by the Employer to the same extent as if this Plan had never been executed. 

  
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	16.4	Waiver of Notice 

 Any
person entitled to notice under the Plan may waive the notice unless the Code or Treasury Regulations prescribe the notice or ERISA specifically or impliedly prohibits a waiver. 

 

	16.5	State Law 

 This Plan and
each of its provisions will be construed and their validity determined by the laws of the State of Oklahoma and applicable Federal law to the extent Federal statute supersedes Oklahoma law. 

 

	16.6	Parties Bound 

 This Plan
will be binding on all persons entitled to benefits under the Plan, their respective heirs and legal representatives, on the Employer, its successors and assigns, and on the Trustee, the Administrator, and their successors. 

 

	16.7	Severance 

 If any
provisions of this Plan will be invalid or unenforceable, the remaining provisions will continue to be fully effective. 
  

	16.8	Employees in Qualified Military Service 

 Notwithstanding any provision of this Plan to the contrary, contributions, benefits, and Service credits, with respect to qualified military service, will be provided in accordance with Code
Section 414(u). 
  

	 	(a)	Death Benefits. In the case of a death occurring on or after January 1, 2007, if a Participant dies while performing qualified military service (as defined
in Code Section 414(u)), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the Participant had resumed and
then terminated employment on account of death. 

  

	 	(b)	Benefit Accrual. Continued benefit accruals pursuant to the HEART Act are not provided under the Plan. 

 

	 	(c)	Differential Wage Payments. For years beginning after December 31, 2008, 

 

	 	(i)	An individual receiving a differential wage payment, as defined by Code Section 3401(h)(2), is treated as an Employee of the Employer making the payment;

  

	 	(ii)	The differential wage payment is treated as Compensation; and 

  
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	 	(iii)	The Plan is not treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which
is based on the differential wage payment. 

  

	 	(d)	Severance from Employment. Notwithstanding Subsection (c)(i), for purposes of Code Section 401(k)(2)(B)(i)(I), an individual is treated as having been
severed from employment during any period the individual is performing service in the uniformed services described in Code Section 3401(h)(2)(A). 

  

	 	(i)	If an individual elects to receive a distribution by reason of severance from employment, death, or Disability, the individual may not make Salary Deferral
Contributions during the six (6)-month period beginning on the date of the distribution. 

  

	 	(ii)	Subsection (c)(iii) applies only if all employees of the Employer performing service in the uniformed services described in Code Section 3401(h)(2)(A) are entitled
to receive differential wage payments (as defined in Code Section 3401(h)(2)) on reasonably equivalent terms, and, if eligible to participate in a retirement plan maintained by the Employer, to make contributions based on the payments on
reasonably equivalent terms (taking into account Code Sections 410(b)(3), (4), and (5)). 

 IN WITNESS
WHEREOF, the Plan Sponsor, SONIC CORP., has caused this instrument to be executed on October 1, 2010. 
  

			
	SONIC CORP.
		
	By:	 	/s/ Claudia San Pedro
		
	Title:	 	Vice President of Investor Relations and Treasurer

  
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