Document:

EX-10.3

 Exhibit 10.3 
  

 
  

EMPLOYEE MATTERS AGREEMENT 

BY AND BETWEEN 

DOVER CORPORATION 

AND 

APERGY CORPORATION 

DATED AS OF 

[●], 2018 
  

 
  

 TABLE OF CONTENTS 

 
  

							
	 	  	 	  	Page	 
	Article I DEFINITIONS	  	 	1	 
	1.1  	  	 Definitions
	  	 	1	 
		
	Article II GENERAL PRINCIPLES; EMPLOYMENT TERMS	  	 	5	 
	2.1  	  	General Principles	  	 	5	 
	2.2  	  	Continuation or Transfer of Employment	  	 	6	 
	2.3  	  	Assumption and Retention of Liabilities	  	 	7	 
	2.4  	  	Assumption of Employee Liabilities	  	 	8	 
	2.5  	  	Cessation as Participating Companies	  	 	8	 
	2.6  	  	No Duplication of Benefits; Service and Other Credit and No Expansion of Participation	  	 	9	 
	2.7  	  	Reimbursements	  	 	9	 
	2.8  	  	Labor Relations	  	 	9	 
	2.9  	  	Plan Administration	  	 	10	 
	2.10	  	Special Provisions	  	 	10	 
		
	 Article III DEFINED CONTRIBUTION, DEFINED BENEFIT, AND NON-QUALIFIED DEFERRED
COMPENSATION PLANS IN THE U.S.
	  	 	10	 
	3.1  	  	Defined Contribution Plan	  	 	10	 
	3.2  	  	U.S. Defined Benefit Plans	  	 	11	 
	3.3  	  	Non-Qualified Deferred Compensation Plans	  	 	14	 
		
	Article IV HEALTH AND WELFARE PLANS	  	 	14	 
	4.1  	  	Cessation of Participation in Dover Health and Welfare Plans	  	 	14	 
	4.2  	  	Allocation of Health and Welfare Plan Liabilities	  	 	15	 
	4.3  	  	Flexible Spending Plan Treatment in the U.S.	  	 	15	 
	4.4  	  	Workers’ Compensation Liabilities	  	 	16	 
	4.5  	  	Payroll Taxes and Reporting	  	 	16	 
	4.6  	  	COBRA Compliance in the U.S.	  	 	17	 
	4.7  	  	Vacation, Holidays, Approved Leaves of Absence, and Paid Time Off	  	 	17	 
		
	Article V INCENTIVE COMPENSATION, EQUITY AND EQUITY-BASED COMPENSATION, AND OTHER BENEFITS	  	 	17	 
	5.1  	  	Cash-Based Incentives	  	 	17	 
	5.2  	  	Stock Options and SSARs	  	 	18	 
	5.3  	  	Restricted Stock Units	  	 	19	 
	5.4  	  	General	  	 	20	 

  
 i 

							
	5.5  	  	Non-U.S. Grants/Awards	  	 	20	 
	5.6  	  	Adoption of Plan	  	 	20	 
	5.7  	  	Administration	  	 	20	 
	5.8  	  	Registration	  	 	20	 
	5.9  	  	No Effect on Subsequent Awards	  	 	20	 
		
	Article VI GENERAL AND ADMINISTRATIVE	  	 	20	 
	6.1  	  	Sharing of Participant Information	  	 	20	 
	6.2  	  	Audit Rights with Respect to Information Provided	  	 	21	 
	6.3  	  	Fiduciary Matters	  	 	21	 
	6.4  	  	Consent of Third Parties	  	 	21	 
	6.5  	  	Confidentiality of Employee Information	  	 	21	 
	6.6  	  	Cooperation	  	 	21	 
	6.7  	  	Subsequent Transfers of Employment	  	 	22	 
		
	Article VII GENERAL PROVISIONS	  	 	22	 
	7.1  	  	Complete Agreement	  	 	22	 
	7.2  	  	Counterparts	  	 	22	 
	7.3  	  	Survival of Agreements	  	 	23	 
	7.4  	  	Notices	  	 	23	 
	7.5  	  	Termination	  	 	23	 
	7.6  	  	Severability	  	 	23	 
	7.7  	  	Assignment; No Third-Party Beneficiaries	  	 	24	 
	7.8  	  	Governing Law	  	 	24	 
	7.9  	  	Consent to Jurisdiction	  	 	24	 
	7.10	  	Dispute Resolution	  	 	25	 
	7.11	  	Specific Performance	  	 	25	 
	7.12	  	Amendment	  	 	25	 
	7.13	  	Rules of Construction	  	 	25	 
	7.14	  	Authorization	  	 	26	 
	7.15	  	Schedules	  	 	27	 
	7.16	  	Subsidiaries	  	 	27	 
	7.17	  	No Circumvention	  	 	27	 
		
	SCHEDULES	  			
	 Schedule 4.4(a) Workers’ Compensation Liabilities
	  			

   

  
 ii 

 EMPLOYEE MATTERS AGREEMENT 

THIS EMPLOYEE MATTERS AGREEMENT is entered into as of [•], 2018, by and between Dover Corporation, a Delaware corporation
(“Dover”), and Apergy Corporation, a Delaware corporation (“Apergy” and together with Dover, the “Parties” and each, a “Party”). 

RECITALS 
 WHEREAS, the board of
directors of Dover has determined that it is in the best interests of Dover and its shareholders to create a new publicly traded company which shall operate the Apergy Business; 

WHEREAS, in furtherance thereof, Dover and Apergy have entered into that certain Separation and Distribution Agreement dated
[•], 2018 (the “Separation Agreement”); and 
 WHEREAS, as contemplated by the Separation Agreement,
Dover and Apergy desire to enter into this Agreement to provide for the allocation of Assets, Liabilities, and responsibilities with respect to certain matters relating to Employees (including employee compensation and benefit plans and programs)
between them. 
 NOW, THEREFORE, the Parties, intending to be legally bound, agree as follows: 

ARTICLE I 

DEFINITIONS 
 1.1
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.1. Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the
Separation Agreement. 
 “Adjusted Dover Option” has the meaning set forth in Section 5.2(a).

 “Adjusted Dover RSU” has the meaning set forth in Section 5.3(a). 

“Adjusted Dover SSAR” has the meaning set forth in Section 5.2(a). 

“Agreement” means this Employee Matters Agreement, together with all schedules hereto and all amendments, modifications, and
changes hereto entered into pursuant to Section 7.12. 
 “Apergy” has the meaning set forth in
the preamble to this Agreement. 

 “Apergy 401(k) Plan” means the Wellsite 401(k) Savings Plan, a tax-qualified 401(k) defined contribution savings plan established by a member of the Apergy Group effective as of the Plan Separation Date. 

“Apergy Employee” means any individual who, as of the applicable date of determination, is either actively employed by or
then on a leave of absence (including maternity, paternity, family, sick, short-term or long-term disability leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and leave under the Family
Medical Leave Act or other applicable Law and other approved leaves) from any member of the Apergy Group. 
 “Apergy FSAs”
has the meaning set forth in Section 4.3. 
 “Apergy Long Term Incentive Plan” means the
Apergy Corporation 2018 Equity and Cash Incentive Plan adopted by Apergy prior to the Effective Time under which the Apergy equity-based awards and long term cash incentive awards described in Article V shall be issued.

 “Apergy Participant” means any individual who is an Apergy Employee, a Former Apergy Employee, a member of or other
participant in an Apergy Benefit Plan, or a beneficiary, dependent, alternate payee, or other person participating in an Apergy Benefit Plan in respect of any of the foregoing persons. 

“Apergy Pension Plan” has the meaning set forth in Section 3.2(b). 

“Apergy Ratio” has the meaning set forth in Section 5.2(b)(i). 

“Benefit Plan” when immediately preceded by “Dover,” means any plan, policy, program, payroll practice, on-going arrangement, Contract, trust, insurance policy, or other agreement or funding vehicle (including a Health and Welfare Plan) for which the eligible classes of participants include employees or former
employees (and their respective eligible dependents) of a member of the Dover Group or, prior to the applicable Plan Separation Date only, a member of the Apergy Group, and when immediately preceded by “Apergy,” means any plan, policy,
program, payroll practice, on-going arrangement, Contract, trust, insurance policy, or other agreement or funding vehicle (including a Health and Welfare Plan) which is sponsored exclusively by the members of
the Apergy Group or for which the eligible classes of participants exclusively include employees or former employees (and their respective eligible dependents) of members of the Apergy Group. 

“COBRA” means the continuation coverage requirements for “group health plans” under Title X of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Code Section 4980B and ERISA Sections 601 through 608. 

“Dover” has the meaning set forth in the preamble to this Agreement. 

“Dover 401(k) Plan” means the Dover Corporation Retirement Savings Plan. 

“Dover Deferred Compensation Plan” means the Dover Corporation Deferred Compensation Plan, as amended and restated as of
January 1, 2009. 
 “Dover Employee” means any individual who, as of the applicable date of determination, is either
actively employed by or then on a leave of absence (including maternity, paternity, family, sick, short-term or long-term disability leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and
leave under the Family Medical Leave Act or other applicable Law and other approved leaves) from any member of the Dover Group, but does not include any Apergy Employee. 

  
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 “Dover Equity Plan” means the Dover Corporation 2012 Equity and Cash Incentive
Plan, the Dover Corporation 2005 Equity and Cash Incentive Plan, and any other equity incentive plan sponsored or maintained by Dover immediately prior to the Effective Time, each as amended from time to time. 

“Dover FSAs” has the meaning set forth in Section 4.3. 

“Dover Participant” means any individual who is a Dover Employee, a Former Dover Employee, or a beneficiary, dependent,
alternative payee, or other person participating in a Dover Benefit Plan in respect of either of the foregoing. 
 “Dover Pension
Replacement Plan” means the Dover Corporation Pension Replacement Plan, as amended and/or restated from time to time. 

“Dover Performance Share” means a performance share granted pursuant to any Dover Equity Plan. 

“Dover Ratio” has the meaning set forth in Section 5.2(a)(i). 

“Dover U.S. Pension Plan” means the Dover Corporation Pension Plan, a U.S. defined benefit pension plan. 

“Employee” means any Dover Employee or Apergy Employee. 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended. Reference to a specific provision of
ERISA also includes any proposed, temporary, or final regulations in force under that provision. 
 “Estimated Pension Plan Transfer
Amount” has the meaning set forth in Section 3.2(c)(ii)(B). 
 “Final Pension Plan Transfer
Amount” has the meaning set forth in Section 3.2(c)(ii)(D). 
 “Final Transfer Date” has
the meaning set forth in Section 3.2(c)(ii)(E). 
 “Former Apergy Employee” means, as of the
applicable date of determination, any individual whose employment with either Party or any of its respective Subsidiaries and Affiliates terminated for any reason before such applicable date, and who primarily worked for an Apergy Business at the
time of termination of his or her employment. 
 “Former Dover Employee” means, as of the applicable date of determination,
any individual whose employment with either Party or any of its respective Subsidiaries and Affiliates terminated for any reason before such applicable date, other than a Former Apergy Employee. 

  
 3 

 “Former Norris USW Employee” means a Former Apergy Employee who has an accrued
benefit under the Dover U.S. Pension Plan as a result of participating in the Dover U.S. Pension Plan pursuant to a collective bargaining agreement with the United Steelworkers of America covering employees of Dover’s Norris division. 

“Health and Welfare Plans” means, when immediately preceded by “Dover,” the health and welfare plans established
and sponsored by any member of the Dover Group, and when immediately preceded by “Apergy,” the health and welfare plans exclusively sponsored and maintained by the Apergy Group prior to or after the applicable Plan Separation Date, in each
case excluding any governmental plans. 
 “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as
amended, and the regulations promulgated thereunder. 
 “Incentive Stock Option” means an option which qualifies as an
incentive stock option under the provisions of Section 422 of the Code. 
 “Initial Transfer Amount” has the meaning
set forth in Section 3.2(c)(ii)(C). 
 “IRS” means the Internal Revenue Service. 

“Local Agreement” means any local transfer agreement that provides for the transfer of Assets and the assumption of
Liabilities relating to, arising out of or resulting from the transactions contemplated by the Separation Agreement. 
 “New York
Courts” has the meaning set forth in Section 7.9. 
 “Norris USW Employee” means an
Apergy Employee as of the Effective Time who has an accrued benefit under the Dover U.S. Pension Plan as a result of participating in the Dover U.S. Pension Plan pursuant to a collective bargaining agreement with the United Steelworkers of America
covering employees of Dover’s Norris division. 
 “Norris USW Participant” means any individual who is a Norris USW
Employee, a Former Norris USW Employee, or a beneficiary, alternate payee, or other person participating in the Dover U.S. Pension Plan in respect of any of the foregoing persons. 

“Option” when immediately preceded by “Dover,” means an option (either nonqualified or an Incentive Stock Option)
to purchase shares of Dover Common Stock pursuant to a Dover Equity Plan and, when immediately preceded by “Apergy,” means an option (either nonqualified or an Incentive Stock Option) to purchase shares of Apergy Common Stock, which option
is granted pursuant to the Apergy Long Term Incentive Plan as set forth in Section 5.2. 
 “Participating
Company” means (a) Dover, (b) any Person (other than an individual) that Dover has approved for participation in, and which is a participating employer in, a Benefit Plan, and (c) any Person (other than an individual) which, by
the terms of such a Benefit Plan, is a participating employer in such Benefit Plan. 
 “Party” or
“Parties” has the meaning set forth in the preamble to this Agreement. 

  
 4 

 “Plan Separation Date” means January 1, 2018. 

“Post-Distribution Price” with respect to a share of common stock, means the average closing price for such common stock for
the five (5) consecutive trading days immediately following the Distribution Date. 
 “Post-Effective Time Transfer
Individual” has the meaning set forth in Section 2.10. 

“Pre-Distribution Price” with respect to a share of common stock, means the average
closing price for such common stock trading on the “regular way” basis on the NYSE for the five (5) consecutive trading days immediately preceding (and including) the Distribution Date. 

“RSU” when immediately preceded by “Dover,” means a unit granted or provided by Dover pursuant to a Dover Equity
Plan or the Dover Deferred Compensation Plan, representing a general unsecured promise by Dover to deliver a share (or cash in respect of a share) of Dover Common Stock, and when immediately preceded by “Apergy,” means a unit granted by
Apergy representing a general unsecured promise by Apergy to deliver a share of Apergy Common Stock, which unit is granted pursuant to the Apergy Long Term Incentive Plan as set forth in Section 5.3. 

“Separation Agreement” has the meaning set forth in the recitals to this Agreement. 

“SSAR” when immediately preceded by “Dover,” means a right to receive a payment in shares of Dover Common Stock
equal in value to the increase in value in a share of Dover Common Stock over a designated strike price pursuant to a Dover Equity-Based Plan and, when immediately preceded by “Apergy,” means a right to receive a payment in shares of
Apergy Common Stock equal in value to the increase in value in a share of Apergy Common Stock over a designated strike price, which right is granted pursuant to the Apergy Long Term Incentive Plan as set forth in
Section 5.2. 
 “True-Up Amount” has the meaning set
forth in Section 3.2(c)(ii)(E). 
 “U.S.” means the United States of America. 

ARTICLE II 

GENERAL PRINCIPLES; EMPLOYMENT TERMS 

2.1 General Principles. All provisions herein shall be subject to the requirements of all applicable Law and any collective bargaining,
works council, or similar Contract or arrangement with any labor union. The provisions of this Agreement shall apply in respect of all jurisdictions wherever situated in accordance with applicable Law. Notwithstanding the foregoing, to the extent
the provisions of this Agreement conflict with the provisions of a Local Agreement or, in respect of jurisdictions outside of the U.S., with the terms of an offer letter or other Contract entered into with an Apergy Employee or a Dover Employee, the
terms of such Local Agreement, offer letter or other Contract, as applicable, shall govern. 

  
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 2.2 Continuation or Transfer of Employment. 

(a) Continuation or Transfer of Employment of Apergy Employees. Except as otherwise set forth in this Agreement, effective no later
than immediately prior to the Effective Time, the employment of each Apergy Employee shall be continued by a member of the Apergy Group or shall be assigned and transferred to a member of the Apergy Group (in each case, with such member as
determined by Apergy), or the Apergy Employee shall be engaged as a service provider to the Apergy Group. Apergy or another member of the Apergy Group confirms that it is a successor employer to Dover or a member of the Dover Group under all
applicable employment and labor standards Laws. The Parties shall use their reasonable efforts to effect the provisions of this Agreement with respect to the compensation and benefits of such Apergy Employees following such continuation or transfer,
as applicable. 
 (i) For Employees in the jurisdictions where the transfer of employment is by way of employer substitution,
Apergy or its relevant Subsidiary or Affiliate shall effectuate an employer substitution, unless the Parties agree otherwise, no later than immediately prior to the Effective Time with respect to each such Employee, in accordance with applicable
Law, pursuant to which each relevant Subsidiary or Affiliate will employ such Employee. 
 (ii) For Employees in the
jurisdictions where the transfer is by way of termination/resignation and re-hire, Apergy or its relevant Subsidiary or Affiliate shall offer employment to each such Employee effective no later than
immediately prior to the Effective Time, or as otherwise agreed between the Parties, and Dover or its relevant Subsidiary or Affiliate shall terminate such Employees but only then in accordance with applicable Law. 

(b) Continuation or Transfer of Employment of Dover Employees. Except as otherwise set forth in this Agreement, effective no later than
immediately prior to the Effective Time, the employment of each Dover Employee shall be continued by a member of the Dover Group or shall be assigned and transferred to a member of the Dover Group (in each case, with such member as determined by
Dover). The Parties shall use their reasonable efforts to effect the provisions of this Agreement with respect to the compensation and benefits of such Dover Employees following such continuation or transfer, as applicable. 

(i) For Employees in the jurisdictions where the transfer of employment is by way of employer substitution, Dover or its
relevant Subsidiary or Affiliate shall effectuate an employer substitution, unless the Parties agree otherwise, no later than immediately prior to the Effective Time with respect to each such Employee, in accordance with applicable Law, pursuant to
which each relevant Subsidiary or Affiliate will employ such Employee. 
 (ii) For Employees in the jurisdictions where the
transfer is by way of termination/resignation and re-hire, Dover or its relevant Subsidiary or Affiliate shall offer employment to each such Employee effective no later than immediately prior to the Effective
Time, or as otherwise agreed between the Parties, and Apergy or its relevant Subsidiary or Affiliate shall terminate such Employees but only then in accordance with applicable Law. 

  
 6 

 2.3 Assumption and Retention of Liabilities. 

(a) Apergy Liabilities. Dover and Apergy intend that all employment, compensation, and employee benefits-related Liabilities associated
with Apergy Participants are to be assumed by Apergy or another member of the Apergy Group (as determined by Apergy), except as specifically set forth herein. Except as expressly provided in this Agreement, as of the Effective Time, (i) Apergy
hereby retains or assumes and agrees to (or shall cause another member of the Apergy Group to) pay, perform, fulfill, and discharge, (ii) Dover shall have no further Liability with respect to, and (iii) Apergy shall indemnify Dover with
respect to the following Liabilities, in all events whether arising prior to, as of, or following the Effective Time: (A) all Liabilities arising under or related to Apergy Benefit Plans, (B) all employment (including workers’
compensation), compensation (including wages, salaries, commissions, bonuses, fees, all unused entitlements to vacation earned by the Apergy Participant, and payment and withholding of social security and similar Taxes and contributions), employee
benefits, or service-related Liabilities (including moving, relocation, repatriation, and immigration-related obligations), in each case, with respect to (x) all Apergy Participants as of the Effective Time and (y) any individual who is,
or was, a dependent or independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker or in any other employment or similar relationship primarily connected to a member of the Apergy Group, including Liabilities relating to adopting and maintaining any policies or practices
necessary to comply with employment-related Laws and requirements relating to the employment of Apergy Employees or such individuals described in the foregoing clause (y), (C) all Liabilities with respect to any and all collective bargaining
agreements, collective agreements, trade union, or works council agreements entered into between any member of the Dover Group and any union, works council, or other body representing exclusively Apergy Employees, (D) all Liabilities and
obligations whatsoever with respect to claims made by or with respect to any Apergy Participants in connection with any Apergy Benefit Plan, program, or policy not otherwise retained or assumed by any member of the Dover Group pursuant to this
Agreement or otherwise, including such Liabilities relating to actions or omissions of or by any member of the Dover Group or any officer, director, employee or agent thereof as of or prior to the Effective Time, (E) all Liabilities retained or
assumed by Apergy or another member of the Apergy Group pursuant to the terms of the Local Agreements, and (F) all Liabilities expressly transferred to a member of the Apergy Group under this Agreement. 

(b) Dover Liabilities. Dover and Apergy intend that all employment, compensation, and employee benefits-related Liabilities associated
with Dover Participants are to be assumed by Dover or another member of the Dover Group (as determined by Dover), except as specifically set forth herein. Except as expressly provided in this Agreement, as of the Effective Time, (i) Dover
hereby retains or assumes and agrees to (or shall cause another member of the Dover Group to) pay, perform, fulfill, and discharge, (ii) Apergy shall have no further Liability with respect to, and (iii) Dover shall indemnify Apergy with
respect to the following Liabilities, in all events whether arising prior to, as of or following the Effective Time: (A) all Liabilities arising under or related to Dover Benefit Plans, (B) all employment (including workers’
compensation), compensation (including wages, salaries, commissions, bonuses, fees, all unused entitlements to vacation earned by the Apergy Participant, and payment and withholding of social security and similar Taxes and contributions), employee
benefits, or 

  
 7 

 
service-related Liabilities (including moving, relocation, repatriation, and immigration-related obligations), in each case, with respect to (x) all Dover Participants as of the Effective
Time and (y) any individual who is, or was, a dependent or independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker,
incidental worker, or non-payroll worker or in any other employment or similar relationship primarily connected to a member of the Dover Group, including Liabilities relating to adopting and maintaining any
policies or practices necessary to comply with employment-related Laws and requirements relating to the employment of Dover Employees or such individuals described in the foregoing clause (y), (C) all Liabilities and obligations whatsoever with
respect to claims made by or with respect to any Dover Participants in connection with any Dover Benefit Plan, program or policy not otherwise retained or assumed by any member of the Apergy Group pursuant to this Agreement or otherwise, including
such Liabilities relating to actions or omissions of or by any member of the Apergy Group or any officer, director, employee, or agent thereof as of or prior to the Effective Time, (D) all Liabilities retained or assumed by Dover or another
member of the Dover Group pursuant to the terms of the Local Agreements, and (E) all Liabilities expressly transferred to a member of the Dover Group under this Agreement. 

(c) General. All Liabilities retained or assumed by or allocated to (i) Apergy or any other member of the Apergy Group pursuant to
this Agreement shall be deemed to be Apergy Liabilities for purposes of Article VI and Article VIII (and related sections) of the Separation Agreement and (ii) Dover or any other member of the Dover Group pursuant to this
Agreement shall be deemed to be Dover Liabilities for purposes of Article VI and Article VIII (and related sections) of the Separation Agreement. 

2.4 Assumption of Employee Liabilities. Apergy shall assume and be solely responsible for the administration of severance, notice or
pay in lieu of notice, indemnity or other termination pay, or other similar benefits in accordance with applicable Law or the terms and conditions of the applicable offer letter, Contract, severance plan, or policy in effect as of the date of the
applicable termination of employment (i) relating to or resulting from (A) the Apergy Group’s failure to continue the employment of any Apergy Employee following the Effective Time, (B) the Apergy Group’s failure to continue
employment on terms and conditions which would preclude any claims of constructive dismissal or similar claims under any applicable Law, or (C) any failure by the Apergy Group to comply with the terms of this Agreement as of or prior to the
Effective Time or (ii) where such severance, notice or pay in lieu of notice, indemnity or termination pay, or other benefits are required to be paid under applicable Law, the terms and conditions of the applicable offer letter, Contract, a
Dover Benefit Plan, or an Apergy Benefit Plan, as applicable, upon the applicable date of any Apergy Employee’s transfer without regard to such terms and conditions or such continuation of employment. 

2.5 Cessation as Participating Companies. No later than the Effective Time: (i) each member of the Apergy Group shall have ceased
to be a Participating Company in any Dover Benefit Plan, (ii) each member of the Dover Group shall have ceased to be a Participating Company in any Apergy Benefit Plan, and (iii) Dover and Apergy shall have taken all necessary action to
effectuate such cessations as Participating Companies. 

  
 8 

 2.6 No Duplication of Benefits; Service and Other Credit and No Expansion of
Participation. Dover and Apergy shall have adopted, or caused to have been adopted, all reasonable and necessary amendments and procedures to prevent Apergy Participants from receiving duplicative benefits pursuant to the Dover Benefit Plans and
the Apergy Benefit Plans. With respect to Apergy Participants, except as otherwise provided in this Agreement, each Apergy Benefit Plan shall provide that for purposes of determining eligibility to participate, vesting, and entitlement to benefits,
service prior to the applicable Plan Separation Date with a member of the Dover Group shall be treated as service with a member of the Apergy Group in accordance with the terms of the corresponding Dover Benefit Plan. Notwithstanding anything to the
contrary, in connection with any Apergy Employee’s break in service, any determination as to service credit shall be made under and in accordance with the applicable Apergy Benefit Plan document, the terms of which shall control in the case of
any conflict with this Section 2.6 unless otherwise provided under applicable Law. The Parties shall use their reasonable efforts so that such service also shall apply for purposes of satisfying any waiting periods,
evidence of insurability requirements or the application of any pre-existing condition limitations under any Apergy Benefit Plan. Each Apergy Benefit Plan shall, to the extent practicable, waive pre-existing condition limitations with respect to Apergy Participants, to the extent such pre-existing condition limitations were waived with respect to such Apergy
Participants under the corresponding Dover Benefit Plan as of immediately prior to the Effective Time. Except (i) as otherwise expressly provided in this Agreement, (ii) as otherwise determined or agreed to by Dover and Apergy,
(iii) as required by applicable Law, or (iv) as explicitly set forth in an Apergy Benefit Plan, an Apergy Participant shall be entitled to participate in an Apergy Benefit Plan only to the extent that such Apergy Participant was entitled
to participate in the corresponding Dover Benefit Plan as in effect immediately prior to the Effective Time. It is the intent of the Parties that this Agreement does not result in any expansion of (A) the number of Apergy Participants in the
Apergy Benefit Plans as compared to the number of such Apergy Participants in the corresponding Dover Benefit Plans or (B) the Apergy Participants’ participation rights in Apergy Benefit Plans as compared to such Apergy Participants’
participation rights in the corresponding Dover Benefit Plans, in each case, as of prior to the Effective Time. 
 2.7
Reimbursements. From time to time after the Effective Time, the Parties shall promptly reimburse one another, upon reasonable request of the Party requesting reimbursement and the presentation by such Party of such substantiating
documentation as the other Party shall reasonably request, for the cost of any Liabilities satisfied or assumed by the Party requesting reimbursement or any of its Subsidiaries or Affiliates that are made, pursuant to this Agreement, the
responsibility of the other Party or any of its Subsidiaries or Affiliates. 
 2.8 Labor Relations. To the extent required by
applicable Law or any Contract or arrangement with a labor union, works council, or similar employee organization, Apergy shall (or shall cause another member of the Apergy Group to) provide notice, engage in consultation, and take any similar
action which may be required on its part in connection with the actions contemplated in this Agreement or the Distribution and shall fully indemnify each member of the Dover Group against any Liabilities arising from its failure (or the failure of
the applicable member of the Apergy Group) to comply with such requirements. 

  
 9 

 2.9 Plan Administration. The Parties acknowledge that the Dover Group or the
Apergy Group may provide administrative services for certain of the Apergy Group’s benefit programs or the Dover Group’s benefit programs, respectively, for a transitional period under the terms of the Transition Services Agreement. The
Parties agree to enter into a business associate agreement (if required by HIPAA or other applicable health information privacy Laws) in connection with such Transition Services Agreement. 

2.10 Special Provisions. Notwithstanding any other provision in this Agreement to the contrary, the Senior Vice President &
Chief Financial Officer, Senior Vice President, General Counsel & Secretary, and Senior Vice President, Human Resources, and each of them individually, of Dover shall have the discretion, power, and authority to adopt and implement special
provisions, rules, or procedures applicable to the employment, compensation, and benefit arrangements of one or more individuals as are deemed necessary or advisable to give effect to the intentions of this Agreement, including special provisions
relating to: (i) different equitable adjustments from those set forth in Article V, in the case of a grantee who has outstanding equity-based awards granted under any of the Dover Equity Plans or the Dover Deferred
Compensation Plan to the extent that any such officer deems such different treatment to be equitable, necessary or advisable, based on the advice of counsel, (ii) errors in the timing of employment transfers, (iii) issues pertaining to
immigration Law requirements, and (iv) any transfer of employment or service of any individuals to a member of the Apergy Group following the Effective Time (each such individual, a “Post-Effective Time Transfer Individual”).
To the extent that any such special provisions, rules, or procedures are adopted or implemented with respect to any such Post-Effective Time Transfer Individual, such officer shall use best efforts to treat each such Post-Effective Time Transfer
Individual in the same manner as if such Post-Effective Time Transfer Individual’s employment or service was continued, assigned, or transferred, as applicable, to a member of the Apergy Group as of no later than immediately prior to the
Effective Time in accordance with Section 2.2(a). 
 ARTICLE III 

DEFINED CONTRIBUTION, DEFINED BENEFIT, AND NON-QUALIFIED DEFERRED COMPENSATION PLANS IN THE U.S.

 3.1 Defined Contribution Plan. 

(a) Establishment of Apergy 401(k) Plan and Trust. Effective as of the Plan Separation Date, Apergy established the Apergy 401(k) Plan
and any trust agreements or other plan documents reasonably necessary, and caused trustees to be appointed for such plan. 
 (b)
Assumption of Liabilities and Transfer of Assets. In accordance with applicable Law, Dover and Apergy caused the accounts under the Dover 401(k) Plan of each Apergy Employee to be transferred to the Apergy 401(k) Plan as soon as practicable
after the Plan Separation Date in the following manner: (i) Dover caused the accounts (including any outstanding loan balances) of each Apergy Employee as of the Plan Separation Date in the Dover 401(k) Plan to be transferred as soon as
practicable after the Plan Separation Date to the Apergy 401(k) Plan and its related trust, (ii) the Apergy 401(k) Plan assumed and became solely responsible for all Liabilities relating to the accounts that were so transferred to the Apergy
401(k) Plan and its related trust as of the time of such transfer, and (iii) Apergy caused such transferred accounts to be accepted by the Apergy 401(k) Plan and its related trust and caused the Apergy 401(k) Plan to satisfy all protected
benefit requirements under the Code and applicable Law with respect to the transferred accounts. 

  
 10 

 (c) Establishment of Apergy 401(k) Plan Employer Securities Fund. Effective as of the Plan
Separation Date, Dover and Apergy established a Dover employer securities fund under the Apergy 401(k) Plan. Shares of Dover Common Stock held in the Dover 401(k) Plan were transferred in kind to the new Dover employer securities fund under the
Apergy 401(k) Plan pursuant to Section 3.1(b). Effective as of the Plan Separation Date, Apergy Participants in the Apergy 401(k) Plan have been and are prohibited from increasing their holdings in the Dover employer
securities fund and may elect to liquidate their holdings in such Dover employer securities fund and invest the proceeds in any other investment fund under the Apergy 401(k) Plan. 

(d) Employer Securities. Dover and Apergy each presently intend to preserve the right of Dover Participants and Apergy Participants to
receive distributions in kind of employer securities from, respectively, the Dover 401(k) Plan and the Apergy 401(k) Plan, if, and to the extent, investments under such plans are comprised of Apergy Common Stock or Dover Common Stock, respectively;
provided, that, Dover shall cause the Dover 401(k) Plan to provide that, no later than twelve (12) months following the Effective Time, the Dover 401(k) Plan shall hold no separate investment fund comprised of Apergy Common Stock and
Apergy shall cause the Apergy 401(k) Plan to provide that, no later than twelve (12) months following the Effective Time, the Apergy 401(k) Plan shall not hold a separate investment fund comprised of Dover Common Stock. Each of Dover and Apergy
shall authorize the appropriate plan fiduciary to determine, in its discretion, the extent to which and when Dover Common Stock (in the case of the Apergy 401(k) Plan) and Apergy Common Stock (in the case of the Dover 401(k) Plan) shall cease
to be investment alternatives thereunder. 
 3.2 U.S. Defined Benefit Plans. 

(a) Dover U.S. Pension Plan. No Apergy Participant shall accrue any additional benefits under the Dover U.S. Pension Plan for services
performed following the Effective Time. Effective as of the Effective Time, each Apergy Participant in the Dover U.S. Pension Plan who is not a Norris USW Participant shall become fully vested in such Apergy Participant’s accrued benefit
provided under such plan. Following the Effective Time, Dover shall retain and be solely responsible for all Dover U.S. Pension Plan Liabilities and obligations other than those Liabilities and obligations transferred to the Apergy Pension Plan
pursuant to Section 3.2(c), and accordingly, there shall be no transfer of Assets or Liabilities among Dover, Apergy or any of their respective Subsidiaries, Affiliates, or plans in respect of the Dover U.S. Pension Plan
with respect to each Apergy Participant except as set forth in Section 3.2(c). 
 (b) Establishment of Apergy
Pension Plan. No later than the Effective Time, Dover and Apergy shall have adopted, or caused to have been adopted, a defined benefit pension plan (such new defined benefit pension plan, the “Apergy Pension Plan”) that is
intended to meet the requirements of Section 401(a) of the Code and related trust that is intended to meet the requirements of Section 501(a) of the Code to provide retirement benefits to the Norris USW Participants who immediately prior
to the Effective Time were participants in the Dover U.S. Pension Plan. Apergy shall be responsible for taking all necessary, reasonable, and appropriate 

  
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actions to maintain and administer the Apergy Pension Plan so that it is qualified under Section 401(a) of the Code and that the related trust thereunder is exempt under Section 501(a)
of the Code, including promptly seeking and obtaining a favorable determination letter from the IRS as to such qualification. Apergy (acting directly or through another member of the Apergy Group) shall be responsible for any and all Liabilities
(including Liability for funding) and other obligations with respect to the Apergy Pension Plan. 
 (c) Norris USW
Participants. 
 (i) Assumption of Dover U.S. Pension Plan Liabilities. Effective as of the Effective Time,
Apergy (acting directly or through another member of the Apergy Group) agrees to cause the Apergy Pension Plan to assume, fully perform, pay, and discharge all Liabilities and obligations under the Dover U.S. Pension Plan relating to all benefits
accrued under the Dover U.S. Pension Plan by Norris USW Participants solely as a result of participating in such plan pursuant to a collective bargaining agreement with the United Steelworkers of America covering employees of Dover’s Norris
Division as of the Effective Time. 
 (ii) Transfer of the Dover U.S. Pension Plan Assets. 

(A) The Parties intend that the portion of the Dover U.S. Pension Plan covering Norris USW Participants which represents
benefits accrued under the Dover U.S. Pension Plan solely as a result of such Norris USW Participants’ participation in such plan pursuant to a collective bargaining agreement with the United Steelworkers of America covering employees of
Dover’s Norris Division shall be transferred to the Apergy Pension Plan in accordance with Section 414(l) of the Code, Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA. It
is intended that the transfers of Assets and Liabilities relating to the Norris USW Participants shall satisfy the de minimis rule of Treasury Regulations Section 414(l)-1(n)(2) and shall be deemed
to comply with Section 414(l) of the Code so that no IRS Form 5310-A shall be filed with respect to such transfers. 

(B) Prior to the Effective Time (or such later time as mutually agreed by the Parties), Dover shall cause the Dover U.S.
Pension Plan actuary to determine the estimated value, as of the Effective Time, of the Assets from the trust of the Dover U.S. Pension Plan to be transferred to the trust of the Apergy Pension Plan (the “Estimated Pension Plan Transfer
Amount”). 
 (C) As of the Effective Time (or such later time as mutually agreed by the Parties), Dover and Apergy
shall cooperate in good faith to cause an initial transfer of Assets from the trust of the Dover U.S. Pension Plan to the trust of the Apergy Pension Plan in an amount to be approximately ninety percent (90%) of the Estimated Pension Plan Transfer
Amount (such amount, the “Initial Transfer Amount”). Assets may be transferred in cash, cash equivalents, securities, Assets in kind or in a combination thereof, as determined by Dover in its sole discretion. 

  
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 (D) Within ninety (90) days (or such later time as mutually agreed by the
Parties) following the Effective Time, Dover shall cause the Dover U.S. Pension Plan actuary to provide Apergy with a revised calculation of the value, as of the Effective Time, of the Assets from the trust of the Dover U.S. Pension Plan to be
transferred to the trust of the Apergy Pension Plan. This revised value, as of the Effective Time, of the Assets from the trust of the Dover U.S. Pension Plan to be transferred to the trust of the Apergy Pension Plan as determined in accordance with
this Section 3.2(c)(ii)(D) shall be referred to herein as the “Final Pension Plan Transfer Amount.” 

(E) Within ten (10) days (or such later time as mutually agreed by the Parties) following the determination of the Final
Pension Plan Transfer Amount, Dover shall cause the trust of the Dover U.S. Pension Plan to transfer to the trust of the Apergy Pension Plan (the date of such transfer, the “Final Transfer Date”) the amount, in cash, cash
equivalents, securities, other Assets in kind or in a combination thereof, as determined by Dover in its sole discretion, equal to (i) the Final Pension Plan Transfer Amount minus (ii) the Initial Transfer Amount (such difference, as
adjusted to reflect fees or charges paid or incurred and earnings or losses as determined based on the actual rate of return of the trust of the Dover U.S. Pension Plan for the period commencing as of the Effective Time and ending on a commercially
reasonable date in advance of the Final Transfer Date, the “True-Up Amount”); provided, that in the event the True-Up Amount is negative, Dover
shall not be required to cause any such additional transfer and instead Apergy shall be required to cause a transfer of cash, cash equivalents, or securities (or, in its discretion, if acceptable to Dover, Assets in kind) from the trust of the
Apergy Pension Plan to the trust of the Dover U.S. Pension Plan, as required, in an amount equal to the absolute value of the True-Up Amount. The Parties acknowledge that the transfer of the True-Up Amount from the trust of the Dover U.S. Pension Plan to the trust of the Apergy Pension Plan, if applicable, shall be in full settlement and satisfaction of the obligations of Dover to cause the transfer of,
and the trust of the Dover U.S. Pension Plan to transfer, Assets to the trust of the Apergy Pension Plan pursuant to this Section 3.2(c)(ii)(E). In the event that Apergy is obligated to cause the trust of the Apergy Pension
Plan to reimburse the trust of the Dover U.S. Pension Plan pursuant to this Section 3.2(c)(ii)(E), such reimbursement shall be performed in accordance with the same principles set forth herein with respect to the payment of
the True-Up Amount from the trust of the Apergy Pension Plan to the trust of the Dover U.S. Pension Plan. The Parties acknowledge that the transfer of such reimbursement amount from the trust of the Apergy
Pension Plan to the trust of the Dover U.S. Pension Plan, if applicable, shall be in full settlement and satisfaction of the obligations of Apergy to cause the transfer of, and the trust of the Apergy Pension Plan to transfer, Assets to the trust of
the Dover U.S. Pension Plan pursuant to this Section 3.2(c)(ii)(E). 

  
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 3.3 Non-Qualified Deferred Compensation Plans.

 (a) Dover Deferred Compensation Plan. No Apergy Participant shall defer any compensation under the Dover Deferred Compensation
Plan attributable to services performed on or following the Plan Separation Date. For the avoidance of doubt, the account balance of each Apergy Participant under the Dover Deferred Compensation Plan shall continue to change based on such Apergy
Participant’s individual investment elections. Effective as of the Effective Time, a member of the Apergy Group shall assume all Dover Deferred Compensation Plan Liabilities determined as of immediately prior to the Effective Time, with respect
to each Apergy Participant who is an Apergy Employee as of the Effective Time. 
 (b) Dover Pension Replacement Plan. No later than
the Effective Time, Dover shall amend the Dover Pension Replacement Plan to (i) freeze benefit accruals under the Dover Pension Replacement Plan effective as of immediately prior to the Effective Time with respect to Apergy Participants who are
actively accruing a benefit under the Dover Pension Replacement Plan immediately prior to the Effective Time, (ii) convert the benefit determined under clause (i) to an account balance effective as of immediately prior to the Effective
Time, and (iii) reduce the amount determined under clause (ii) by any Taxes the Apergy Participant would be required to pay as a result of the conversion described in clause (ii) as permitted under Treasury Regulation Section 1.409A-3(j)(4)(vii). Effective as of the Effective Time, a member of the Apergy Group shall assume all Dover Pension Replacement Plan Liabilities determined pursuant to the preceding sentence with
respect to each Apergy Participant who is an Apergy Employee as of the Effective Time. 
 (c) Establishment of Apergy Deferred
Compensation Plan. Prior to the Effective Time, a member of the Apergy Group shall have adopted, or caused to have been adopted, a non-qualified deferred compensation benefit plan, which will serve as the
plan document for the Dover Pension Replacement Plan Liabilities and Dover Deferred Compensation Plan Liabilities assumed by a member of the Apergy Group in accordance with Sections 3.3(a) and 3.3(b). 

(d) Harbison-Fischer Manufacturing Company Restoration of Income Plan and Harbison-Fischer Manufacturing Company Deferred
Compensation Agreement. As of and following the Effective Time, Apergy (or another applicable member of the Apergy Group) shall retain all Liabilities and the administration of the Harbison-Fischer Manufacturing Company Restoration of Income
Plan and the Harbison-Fischer Manufacturing Company Deferred Compensation Agreement. 
 ARTICLE IV 

HEALTH AND WELFARE PLANS 

4.1 Cessation of Participation in Dover Health and Welfare Plans. Effective as of the Plan Separation Date, Apergy established Apergy
Health and Welfare Plans which generally correspond to the Dover Health and Welfare Plans which provide group health, life, dental, accidental death and dismemberment, health care reimbursements, dependent care assistance and disability benefits in
which certain Apergy Participants participated immediately prior to the Plan 

  
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Separation Date. Effective as of immediately prior to the Plan Separation Date, such Apergy Participants ceased to participate in the Dover Health and Welfare Plans in which they participated and
effective as of the Plan Separation Date commenced participation in the corresponding Apergy Health and Welfare Plans. Apergy caused those Apergy Participants who participated in Dover Health and Welfare Plans immediately prior to the Plan
Separation Date to be automatically enrolled as of the Plan Separation Date in the Apergy Health and Welfare Plans corresponding to the Dover Health and Welfare Plans in which such Apergy Participants participated immediately prior to the Plan
Separation Date. The transfer of employment from a member of the Dover Group to a member of the Apergy Group prior to or as of the Effective Time shall not be treated as a “status change” with respect to any Apergy Employee under the Dover
Health and Welfare Plans or the Apergy Health and Welfare Plans. 
 4.2 Allocation of Health and Welfare Plan Liabilities. 

(a) Health and Welfare Claims. Except as set forth in Section 4.2(b), Dover shall retain and be solely
responsible for all outstanding Liabilities relating to, arising out of, or resulting from health and welfare coverage or claims incurred by Apergy Participants under the Dover Health and Welfare Plans prior to the Plan Separation Date. 

(b) Short-Term and Long-Term Disability Coverage Liabilities. From and after the Effective Time, Apergy shall, or shall cause another
member of the Apergy Group to, accept, assume (or, as applicable, retain) and perform, discharge and fulfill, all Liabilities relating to, arising out of, or resulting from short-term or long-term disability coverage for Apergy Participants under
the Dover Health and Welfare Plans, in each case, regardless of (i) when or where such Liabilities arose or arise, (ii) where or against whom such Liabilities are asserted or determined and (iii) whether the facts on which they are
based occurred prior to, on or after the date hereof. 
 4.3 Flexible Spending Plan Treatment in the U.S. Effective as of the
Plan Separation Date, Apergy established a dependent care spending account and a medical care spending account under a cafeteria plan meeting the requirements of Section 125 of the Code (collectively, the “Apergy FSAs”), which
Apergy FSAs have terms that are substantially identical to the analogous Dover cafeteria plan and dependent care and medical care flexible spending accounts (collectively, the “Dover FSAs”) as were in effect immediately prior to the
Plan Separation Date. As of the Plan Separation Date, Dover transferred the account balances (if any) under the Dover FSAs of each Apergy Employee who elected to participate therein to the corresponding Apergy FSAs. The Apergy FSAs assumed
responsibility as of the Plan Separation Date for all outstanding dependent care and medical care claims under the Dover FSAs of each Apergy Employee and assumed and agreed to perform the obligations from and after the Plan Separation Date. On and
following the Plan Separation Date, the contribution elections (if any) of each Apergy Employee as in effect immediately prior to the Plan Separation Date shall remain in effect under the applicable Apergy FSA. As of the Plan Separation Date, Dover
transferred to Apergy an amount equal to the total contributions made to the Dover FSAs by Apergy Employees in respect of the plan year immediately prior to the plan year in which the Plan Separation Date occurs, reduced by an amount equal to the
total claims already paid to Apergy Employees in respect of such immediately preceding plan year, if any. From and after the Plan Separation Date, Dover has provided and shall provide Apergy with such information that any member of the Apergy Group
may reasonably request to enable it to verify any claims information pertaining to a Dover FSA. 

  
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 4.4 Workers’ Compensation Liabilities. 

(a) Apergy Liabilities. All workers’ compensation Liabilities relating to, arising out of or resulting from any claim by Apergy
Employees or Former Apergy Employees that result from an accident or from an occupational disease which is incurred or becomes manifest, as the case may be, as of or prior to the Effective Time and while such individual was employed by either Party
or its respective Subsidiaries or Affiliates shall be assumed, or retained as the case may be, by Apergy as of the Effective Time. Each member of the Apergy Group shall also be solely responsible for all workers’ compensation Liabilities
relating to, arising out of, or resulting from any claim incurred for a compensable injury sustained by an Apergy Employee or Former Apergy Employee that results from an accident or from an occupational disease which is incurred or becomes manifest,
as the case may be, after the Effective Time. Effective as of the Effective Time, Apergy, acting through the applicable member of the Apergy Group employing each Apergy Employee, will be responsible for obtaining workers’ compensation
insurance, including providing all collateral required by the insurance carriers. To the extent that such insurance coverage cannot be either assigned to or obtained by Apergy or another member of the Apergy Group, in respect of claims and
Liabilities otherwise to be assumed by Apergy or another member of the Apergy Group pursuant to Section 2.3(a) and this Section 4.4(a), Dover shall remain primarily liable for such claims and
Liabilities, but Apergy shall indemnify and hold harmless Dover for any such claims and Liabilities. If the preceding sentence applies, then at one or more mutually agreed upon dates, Dover will determine, in its sole discretion, the total amount
paid with respect to such claims and Liabilities and Apergy shall reimburse Dover for that amount; provided, however, with respect to any claim or Liability listed on Schedule 4.4(a) hereto, Apergy shall only be required to reimburse Dover for an
amount equal to the excess, if any, of (i) the total amount paid with respect to such claim or Liability, as determined by Dover, in its sole discretion, over (ii) the amount set forth on Schedule 4.4(a) hereto directly across from such claim or
Liability under the heading “Total Incurred”. 
  (b) Assignment of Contribution Rights. Dover will transfer and assign
(or cause a member of the Dover Group to transfer and assign) to a member of the Apergy Group all rights to seek contribution or damages from any applicable third party (such as a third party who aggravates an injury to a worker who makes a
workers’ compensation claim) with respect to any workers’ compensation claim for which Apergy is responsible pursuant to Section 2.3(a) and this Article IV. Apergy will transfer and
assign (or cause a member of the Apergy Group to transfer and assign) to a member of the Dover Group all rights to seek contribution or damages from any applicable third party (such as a third party who aggravates an injury to a worker who makes a
workers’ compensation claim) with respect to any workers’ compensation claim for which Dover is responsible pursuant to Section 2.3(b). 

(c) Collateral. As of and after the Effective Time, Apergy (acting directly or through another member of the Apergy Group) shall be
responsible for providing all collateral required by insurance carriers in connection with workers’ compensation claims for which Liability is allocated to the Apergy Group under Section 2.3(a) and this
Article IV. Dover (acting directly or through another member of the Dover Group) shall be responsible for providing all collateral required by insurance carriers in connection with workers’ compensation claims for
which Liability is allocated to the Dover Group under Section 2.3(b). 
 4.5 Payroll Taxes and Reporting.
To the fullest extent permitted by applicable Law, Dover and Apergy shall, to the extent practicable, (i) treat Apergy (or another member of the Apergy Group designated by Apergy) as a “successor employer” and Dover (or the
appropriate member of the Dover Group) as a “predecessor,” within the meaning of Sections 3121(a)(1) and 3306(b)(1) of the Code (or analogous terms under applicable Law, including the Employment

  
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Insurance and Quebec Parental Insurance Plan and the Canada Pension Plan and Quebec Pension Plan), with respect to Apergy Employees for purposes of Taxes imposed under the U.S. Federal
Unemployment Tax Act or the U.S. Federal Insurance Contributions Act or other applicable Laws, and (ii) cooperate with each other to avoid, to the extent possible, the filing of more than one IRS Form W-2
with respect to each Apergy Employee for the year in which the Effective Time occurs. Without limiting in any manner the obligations and Liabilities of the Parties under the Tax Matters Agreement, each member of the Dover Group and each member of
the Apergy Group shall each bear its responsibility for payroll Tax obligations and for the proper reporting to the appropriate Governmental Entities of compensation earned by their respective employees after the Effective Time, including
compensation related to the exercise of stock options or the vesting or exercise of other equity awards. 
 4.6 COBRA Compliance in the
U.S.. As of the Plan Separation Date, Apergy assumed responsibility for and has been and is responsible for administering compliance with the health care continuation requirements of COBRA, in accordance with the provisions of the Apergy Health
and Welfare Plans, with respect to Apergy Participants who incurred a COBRA qualifying event under the Dover Health and Welfare Plans at any time prior to the Plan Separation Date. Apergy also has been and is responsible for administering compliance
with the health care continuation requirements of COBRA and the corresponding provisions of the Apergy Health and Welfare Plans with respect to Apergy Employees and their covered dependents who incur a COBRA qualifying event under the Apergy Health
and Welfare Plans at any time on or after the Plan Separation Date. 
 4.7 Vacation, Holidays, Approved Leaves of Absence, and Paid Time
Off. As of or prior to the Effective Time, the applicable member of the Apergy Group shall have credited each Apergy Employee with the unused vacation days, holidays, annual leave, or other approved leave of absence, and personal, and sickness
days that such Apergy Employee has accrued immediately prior to the Effective Time (not previously paid or required to be paid) in accordance with the vacation and personnel policies applicable to such Apergy Employee immediately prior to the
Effective Time. 
 ARTICLE V 

INCENTIVE COMPENSATION, EQUITY AND EQUITY-BASED COMPENSATION, AND OTHER BENEFITS 

5.1 Cash-Based Incentives. 

(a) Annual Cash Incentives and Commissions. At the regularly scheduled payment date, Apergy shall pay each Apergy Employee, and Dover
shall pay each Dover Employee, in each case, who is participating in an annual cash incentive bonus or commission program of a member of the Apergy Group or a member of the Dover Group, as applicable, such Apergy Employee’s and such Dover
Employee’s, as applicable, annual incentive bonus or commission under the applicable plan, based on actual performance for 2018. 

  
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 (b) Long-term Cash Incentives. Each Dover long-term cash incentive award
that is held by an Apergy Employee with a performance period that extends beyond the Effective Time will be cancelled and forfeited as of the Effective Time. 

5.2 Stock Options and SSARs. 

(a) Dover Options and SSARs. Each Dover Option and Dover SSAR that is outstanding immediately prior to the Effective Time and
that is held by a Dover Employee or a Former Dover Employee shall be adjusted as of the Effective Time (and shall thereafter be referred to as an “Adjusted Dover Option” or “Adjusted Dover SSAR,” as applicable) as
follows: 
 (i) The number of shares of Dover Common Stock subject to each Adjusted Dover Option and each Adjusted Dover
SSAR, as applicable, shall be equal to the product (rounded down to the nearest whole share on an aggregated basis for all Dover Options held by such Dover Employee or Former Dover Employee and for all Dover SSARs held by such Dover Employee or
Former Dover Employee, as applicable) of (A) the number of shares of Dover Common Stock subject to the corresponding Dover Option or Dover SSAR, as applicable, immediately prior to the Effective Time and (B) a fraction, the numerator of
which is the Pre-Distribution Price of a share of Dover Common Stock and the denominator which is the Post-Distribution Price of a share of Dover Common Stock (such fraction, the “Dover
Ratio”). 
 (ii) The exercise price per share for each Adjusted Dover Option and the strike price per share for each
Adjusted Dover SSAR, as applicable, shall be equal to (A) the exercise price or strike price (as the case may be) of the corresponding Dover Option or Dover SSAR, as applicable, immediately prior to the Effective Time divided by (B) the
Dover Ratio, rounded up to the nearest whole cent. 
 (iii) Each Adjusted Dover Option and Adjusted Dover SSAR shall
otherwise be subject to the same terms, vesting conditions, exercise procedures, expiration dates, and termination provisions and other terms and conditions as were in effect immediately prior to the Effective Time for the corresponding Dover Option
and Dover SSAR, as applicable. 
 (b) Apergy Options and SSARs. Each Dover Option and Dover SSAR that is outstanding immediately
prior to the Effective Time and that is held by an Apergy Employee shall, as of the Effective Time, be cancelled and immediately replaced with an Apergy Option or an Apergy SSAR, as applicable, as follows: 

(i) The number of shares of Apergy Common Stock subject to each Apergy Option and each Apergy SSAR, as applicable, shall be
equal to the product (rounded down to the nearest whole share on an aggregated basis for all Apergy Options held by such Apergy Employee and all Apergy SSARs held by such Apergy Employee, as applicable) of (A) the number of shares of Dover
Common Stock subject to the corresponding Dover Option or Dover SSAR, as applicable, immediately prior to the Effective Time and (B) a fraction, the numerator of which is the Pre-Distribution Price of a
share of Dover Common Stock and the denominator of which is the Post-Distribution Price of a share of Apergy Common Stock (such fraction, the “Apergy Ratio”). 

  
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 (ii) The exercise price per share for each Apergy Option and strike price per
share for each Apergy SSAR, as applicable, shall be equal to (A) the exercise price or strike price (as the case may be) of the corresponding Dover Option or Dover SSAR, as applicable, immediately prior to the Effective Time divided by
(B) the Apergy Ratio, rounded up to the nearest whole cent. 
 (iii) Each Apergy Option and Apergy SSAR shall otherwise
be subject to the same terms, vesting conditions, exercise procedures, expiration dates, and termination provisions and other terms and conditions as were in effect immediately prior to the Effective Time for the corresponding Dover Option and Dover
SSAR, as applicable. 
 5.3 Restricted Stock Units. 

(a) Dover RSUs. Each Dover RSU that is outstanding immediately prior to the Effective Time and that is held by a Dover Employee,
a Former Dover Employee or a non-employee director shall be adjusted as of the Effective Time (and shall thereafter be referred to as an “Adjusted Dover RSU”) as follows: 

(i) the number of shares of Dover Common Stock subject to each Adjusted Dover RSU shall be equal to the product (rounded down
to the nearest whole share on an aggregated basis) of (A) the number of shares of Dover Common Stock subject to the corresponding Dover RSU immediately prior to the Effective Time and (B) the Dover Ratio. 

(ii) Each Adjusted Dover RSU shall be subject to the same terms, vesting conditions, issuance dates and method of distribution
and other terms and conditions as were in effect immediately prior to the Effective Time for the corresponding Dover RSU. 
 (b) Apergy
RSUs. Each Dover RSU that is outstanding immediately prior to the Effective Time and that is held by an Apergy Employee shall, as of the Effective Time, be cancelled and immediately replaced with an Apergy RSU, as follows: 

(i) The number of shares of Apergy Common Stock subject to each Apergy RSU shall be equal to the product (rounded down to the
nearest whole share on an aggregated basis) of (A) the number of shares of Dover Common Stock subject to the corresponding Dover RSU immediately prior to the Effective Time and (B) the Apergy Ratio. 

(ii) Each Apergy RSU shall be subject to the same terms, vesting conditions, issuance dates and method of distribution and
other terms and conditions that were in effect immediately prior to the Effective Time for the corresponding Dover RSU, and as of the Effective Time, Apergy shall assume all Liabilities with respect to any dividend equivalents that have been
credited in respect of such corresponding Dover RSU, as of the Effective Time. 

  
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 (c) Dover Performance Shares Held by Apergy Employees. Immediately prior to the Effective
Time: (i) each ongoing performance period related to an outstanding Dover Performance Share held by an Apergy Employee shall be terminated and (ii) each such outstanding Dover Performance Share held by an Apergy Employee that relates to a
performance period ending after the Effective Time shall be cancelled. 
 5.4 General. All of the adjustments described in this
Article V shall be effected in accordance with Sections 424 and 409A of the Code, to the extent subject thereto. 

5.5 Non-U.S. Grants/Awards. In making the adjustments as described in this
Article V, the Parties shall use commercially reasonable efforts to preserve, at and after the Effective Time, the value and tax treatment accorded each equity award granted to
non-U.S. employees under the Dover Equity Plans and the Apergy Long Term Incentive Plan, as applicable. 

5.6 Adoption of Plan. Prior to the Effective Time, Apergy shall have adopted, or shall have caused a member of the Apergy Group to have
adopted, the Apergy Long Term Incentive Plan. 
 5.7 Administration. Each of Dover and Apergy shall establish an appropriate
administration system in order to handle exercises and delivery of shares of common stock in an orderly manner and provide reasonable levels of service for equity award holders. 

5.8 Registration. The Parties shall use commercially reasonable efforts to maintain effective registration statements with the
Commission with respect to the awards described in this Article V, to the extent any such registration statement is required by applicable Law. 

5.9 No Effect on Subsequent Awards. The provisions of this Article V shall have no effect on the terms and
conditions of equity and equity-based awards granted following the Effective Time by Dover or Apergy, including any such equity and equity-based awards granted pursuant to any Dover Equity Plan or the Apergy Long Term Incentive Plan, as applicable.

 ARTICLE VI 

GENERAL AND ADMINISTRATIVE 

6.1 Sharing of Participant Information. To the maximum extent permitted under applicable Law, Dover and Apergy shall share, and shall
cause the members of its respective Group to share, with each other and their respective agents and vendors all participant information reasonably necessary for the efficient and accurate administration of each of the Dover Benefit Plans and the
Apergy Benefit Plans. Dover and Apergy and their respective authorized agents shall, subject to applicable laws on confidentiality, be given reasonable and timely access to, and may make copies of, all information relating to the subjects of this
Agreement in the custody of the other Party or any member of its Group, to the extent necessary for such administration. Until the Plan Separation Date, all participant information was provided 

  
 20 

 
in the manner and medium applicable to Participating Companies in the Dover Benefit Plans generally, and thereafter until the time at which the Parties subsequently determine, all participant
information has been and shall be provided in a manner and medium that are compatible with the data processing systems of Dover as in effect as of the Plan Separation Date, unless otherwise agreed to by Dover and Apergy. 

6.2 Audit Rights with Respect to Information Provided. Each of Dover and Apergy, and their respective duly authorized representatives,
shall have the right to conduct reasonable audits with respect to all information provided to it by the other Party. The Parties shall cooperate to determine the procedures and guidelines for conducting audits under this
Section 6.2, which shall require reasonable advance notice by the auditing party. The auditing Party shall have the right to make copies of any records at its expense, subject to applicable Law. 

6.3 Fiduciary Matters. Dover and Apergy each acknowledge that actions required to be taken pursuant to this Agreement may be subject to
fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good faith determination (as supported by
advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary
responsibilities and shall fully release and indemnify the other party for any Liabilities caused by the failure to satisfy any such responsibility. 

6.4 Consent of Third Parties. If any provision of this Agreement is dependent on the consent of any Third Party (such as a vendor or
Governmental Entity) and such consent is withheld, Dover and Apergy shall use commercially reasonable efforts to implement the applicable provisions of this Agreement to the full extent practicable. If any provision of this Agreement cannot be
implemented due to the failure of such Third Party to consent, Dover and Apergy shall negotiate in good faith to implement the provision in a mutually satisfactory manner. The phrase “commercially reasonable efforts” as used herein shall
not be construed to require the incurrence of any non-routine or unreasonable expense or liability or the waiver of any right. 

6.5 Confidentiality of Employee Information. Except as otherwise set forth in this Agreement, all records, information and data
relating to Employees shall, in each case, be subject to the confidentiality provisions of the Separation Agreement and any other applicable agreement and applicable Law, and the provisions of this Section 6.5 shall be in
addition to, and not in derogation of, the provisions of the Separation Agreement governing Confidential Information, including Sections 7.5 and 8.6 of the Separation Agreement. 

6.6 Cooperation. The Parties agree to use commercially reasonable efforts to cooperate with respect to sharing, retaining, and
maintaining data and records that are necessary or appropriate to further the purposes of this Section 6.6 and to administer its respective Benefit Plans to the extent consistent with this Agreement and applicable Law, and the Parties
agree to cooperate as long as is reasonably necessary to further the purposes of this Section 6.6. No Party shall charge another Party a fee for such cooperation. 

  
 21 

 6.7 Subsequent Transfers of Employment. To the extent that the employment of any
individuals transfers between any member of the Dover Group and any member of the Apergy Group in the twenty-four (24) month period following the Effective Time, the Parties shall use their reasonable efforts to effect the provisions of
this Agreement with respect to the compensation and benefits of such individuals following such transfer, it being understood that (i) it may not be possible to replicate the effect of such provisions under such circumstances and
(ii) neither Dover nor Apergy shall be bound by the provisions of this Section 6.7 to assume any Liabilities or transfer any Assets. Notwithstanding the foregoing, for compensation subject to the provisions of
Section 409A of the Code, any such subsequent transfer shall be a separation from service from the applicable employer for purposes of such compensation, and the consequences of such separation from service shall be determined in
accordance with the terms of the applicable plan or agreement. 
 ARTICLE VII 

GENERAL PROVISIONS 

7.1 Complete Agreement. This Agreement, the Separation Agreement and the other Ancillary Agreements, and the exhibits, schedules, and
annexes hereto and thereto, shall constitute the entire agreement between the Parties with respect to the subject matter hereof and thereof and shall supersede all previous negotiations, commitments, and writings with respect to such subject matter.
In the event of any conflict between the terms and conditions of the body of this Agreement and the terms and conditions of any Schedule, the terms and conditions of such Schedule shall control. Notwithstanding anything to the contrary in this
Agreement, the Separation Agreement, or any other Ancillary Agreement, in the case of any conflict between the provisions of the Separation Agreement and the provisions of any Ancillary Agreement, the provisions of the Separation Agreement shall
control; provided, however, that in relation to (i) any matters concerning Taxes, the Tax Matters Agreement shall prevail over the Separation Agreement and any other Ancillary Agreement, (ii) any matters governed by this Agreement, this
Agreement shall prevail over the Separation Agreement or any other Ancillary Agreement, and (iii) the provision of support and other services after the Effective Time by the Apergy Group to the Dover Group, and vice versa, the Transition
Services Agreement shall prevail over the Separation Agreement or any other Ancillary Agreement. It is the intention of the Parties that the Transfer Documents shall be consistent with the terms of this Agreement, the Separation Agreement and the
other Ancillary Agreements. The Parties agree that the Transfer Documents are not intended and shall not be considered in any way to enhance, modify or decrease any of the rights or obligations of Dover, Apergy, or any member of their respective
Groups from those contained in this Agreement, the Separation Agreement, and the other Ancillary Agreements. 
 7.2 Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other
Party. Execution of this Agreement or any other documents pursuant to this Agreement by facsimile or other electronic copy of a signature shall be deemed to be, and shall have the same effect as, executed by an original signature. 

  
 22 

 7.3 Survival of Agreements. Except as otherwise contemplated by this Agreement, all
covenants and agreements of the Parties contained in this Agreement shall survive the Effective Time and remain in full force and effect in accordance with their applicable terms. 

7.4 Notices. All notices, requests, claims, demands, and other communications under this Agreement shall be in writing and shall be
given or made (and shall be deemed to have been duly given or made upon receipt unless the day of receipt is not a Business Day, in which case it shall be deemed to have been duly given or made on the next Business Day) by delivery in person, by
overnight courier service, by facsimile, or by email with receipt confirmed or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as
shall be specified in a notice given in accordance with this Section 7.4): 
 If to Dover: 

Dover Corporation 
 3005
Highland Parkway 
 Downers Grove, Illinois 60515 

Attn: 
 Facsimile: 

Email: 
 If to Apergy: 

Apergy Corporation 
 [address]

 Attn: 
 Facsimile: 

Email: 
 7.5 Termination.
Notwithstanding any provision to the contrary, this Agreement shall be of no further force and effect and shall be null and void ab initio if the Separation Agreement is terminated at any time prior to the Effective Time in accordance with
Section 10.10 thereof. In the event of such termination, no Party, nor any of its officers, directors, or employees shall have any liability to any other Party or any other Person. After the Effective Time, this Agreement may not
be terminated except by an agreement in writing signed by each of the Parties. 
 7.6 Severability. In the event any one or more of
the provisions contained in this Agreement should be held invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
thereby, and the Parties shall endeavor in good-faith negotiations to replace the invalid, illegal, or unenforceable provisions with valid, legal, and enforceable provisions, the economic effect of which comes as close as possible to that of the
invalid, illegal, or unenforceable provisions. 

  
 23 

 7.7 Assignment; No Third-Party Beneficiaries. The provisions of this Agreement and the
obligations and rights hereunder shall be binding upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective successors (by merger, acquisition of assets or otherwise) and permitted transferees and assigns to
the same extent as if such successors or permitted transferees and assigns had been an original party to the Agreement. Notwithstanding the foregoing, this Agreement shall not be assignable, in whole or in part, by any Party without the prior
written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be null and void; provided, that (i) a Party may assign any or all of its rights and
obligations under this Agreement to any of its Affiliates, but no such assignment shall release the assigning Party from any liability or obligation under this Agreement, and (ii) a Party may assign this Agreement in whole in connection with a
bone fide third-party merger transaction in which such Party is not the surviving entity or the sale by such Party of all or substantially all of its Assets, and upon the effectiveness of such assignment under this clause (ii), the assigning Party
shall be released from all of its obligations under this Agreement if the surviving entity of such merger or the transferee of such Assets shall agree in writing, in form and substance reasonably satisfactory to the other Party, to be bound by the
terms of this Agreement as if named as a “Party” hereto. This Agreement is solely for the benefit of the Parties and their respective Affiliates after the Effective Time and their respective permitted successors and assigns, and is not
intended to confer upon any Person except the Parties and their respective Affiliates after the Effective Time, and their respective permitted successors and assigns, any rights or remedies hereunder, and there are no third-party beneficiaries of
this Agreement and nothing in this Agreement, express or implied, (A) shall confer upon Third Parties any remedy, claim, liability, reimbursement, cause of action, or other right in excess of those existing without reference to this Agreement,
(B) shall confer any right to employment or continued employment for any period or terms of employment, (C) shall be interpreted to prevent or restrict the Parties from modifying or terminating any Apergy Benefit Plan or Dover Benefit Plan
or the employment or terms of employment of any Apergy Employee or Dover Employee, or (D) shall establish, modify or amend any Apergy Benefit Plan or Dover Benefit Plan covering an Apergy Participant or Dover Participant, any collective
bargaining agreements, national collective bargaining agreements, or the terms and conditions of employment applicable to an Apergy Employee or a Dover Employee. 

7.8 Governing Law. This Agreement shall be governed by and construed in accordance with the internal Laws, and not the Laws governing
conflicts of Laws (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law), of the State of New York. 

7.9 Consent to Jurisdiction. Subject to the provisions of Article VIII of the Separation Agreement, each of the Parties irrevocably
submits to the exclusive jurisdiction of (a) the Supreme Court of the State of New York, New York County, and (b) the U.S. District Court for the Southern District of New York (together, the “New York Courts”), for
purposes of any Action to compel arbitration or for provisional relief in aid of arbitration in accordance with Article VIII of the Separation Agreement or for provisional relief to prevent irreparable harm, and to the
non-exclusive jurisdiction of the New York Courts for the enforcement of any award issued thereunder. Each of the Parties further agrees that service of any process, summons, notice, or document by U.S.
registered mail to such Party’s respective address set forth in 

  
 24 

 
Section 7.4 shall be effective service of process for any Action in the New York Courts with respect to any matters to which it has submitted to jurisdiction in this
Section 7.9. Each of the Parties irrevocably and unconditionally waives any objection to the laying of venue of any Action arising out of this Agreement or the transactions contemplated hereby in the New York Courts, and
hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Action brought in any such court has been brought in an inconvenient forum. 

7.10 Dispute Resolution. The resolution of any dispute between the Parties with respect to this Agreement shall be governed by the
provisions of the Separation Agreement with respect to the resolution of disputes, including the provisions of Article VIII of the Separation Agreement. 

7.11 Specific Performance. The Parties agree that irreparable damage may occur in the event that the provisions of this Agreement were
not performed in accordance with their specific terms. Accordingly, it is hereby agreed that the Parties shall be entitled to seek (i) an injunction or injunctions to enforce specifically the terms and provisions hereof in any arbitration in
accordance with Article VIII of the Separation Agreement, (ii) provisional or temporary injunctive relief in accordance therewith in any New York Court, and (iii) enforcement of any such award of an arbitral tribunal or a New York Court in
any court of the U.S., or any other any court or tribunal sitting in any state of the U.S. or in any foreign country that has jurisdiction, this being in addition to any other remedy or relief to which they may be entitled. 

7.12 Amendment. This Agreement may not be modified or amended except by an agreement in writing signed by each of the Parties. The
failure of any Party to require strict performance by any other Party of any provision in this Agreement will not waive or diminish that Party’s right to demand strict performance thereafter of that or any other provision hereof. 

7.13 Rules of Construction. 

References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural
and vice versa. Any action to be taken by the board of directors of a Party may be taken by a committee of the board of directors of such Party if properly delegated by the board of directors of such Party to such committee. Unless the context
otherwise requires: 
 (i) the words “include”, “includes” and “including” when used in this
Agreement shall be deemed to be followed by the phrase “without limitation”, 
 (ii) references in this Agreement
to Articles, Sections, Annexes, Exhibits, and Schedules shall be deemed references to Articles and Sections of, and Annexes, Exhibits, and Schedules to, this Agreement, 

(iii) the words “hereof”, “hereby” and “herein” and words of similar meaning when used in this
Agreement refer to this Agreement in its entirety and not to any particular Article, Section, or provision of this Agreement, 

  
 25 

 (iv) the words “written request” when used in this Agreement shall
include email, 
 (v) the term “commercially reasonable efforts” means efforts which are commercially reasonable to
enable a Party, directly or indirectly, to satisfy a condition to, or otherwise assist in, the consummation of a desired result and which do not require the performing Party to expend funds or assume Liabilities other than expenditures and
Liabilities which are customary and reasonable in nature and amount in the context of a series of related transactions similar to the Distribution, 

(vi) the words “shall” and “will” are used interchangeably and have the same meaning, 

(vii) the word “or” shall not be exclusive, 

(viii) relative to the determination of any period of time, “from” means “from and including,”
“to” means “to, but excluding” and “through” means “through and including”, 
 (ix)
whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified, 

(x) reference to any Law (including statutes and ordinances) means such Law (including any and all rules and regulations
promulgated thereunder) as amended, modified, codified, or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability, 

(xi) references in this Agreement to any time shall be to New York City, New York time unless otherwise expressly provided
herein, and 
 (xii) as described in Section 7.1, to the extent that the terms and conditions of
any Schedule hereto conflicts with the express terms of the body of this Agreement, the terms of such Schedule shall control; it being understood that the Parties intend to include in the Schedules hereto any exceptions to the general rules
described in the body of this Agreement and to give full effect to such exceptions, with respect to the matters expressly set forth therein. 
 The Parties
have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instrument to
be drafted. 
 7.14 Authorization. Each of the Parties hereby represents and warrants that it has the power and authority to execute,
deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such Party, that this Agreement constitutes a legal, valid, and binding obligation of each such Party enforceable
against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles. 

  
 26 

 7.15 Schedules. The Schedules attached hereto are incorporated herein by reference and
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. 

7.16 Subsidiaries. Each of the Parties shall cause (or with respect to an Affiliate that is not a Subsidiary, shall use commercially
reasonable efforts to cause) to be performed, and hereby guarantee the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary or Affiliate of such Party or by any Business Entity that becomes a
Subsidiary or Affiliate of such Party at and after the Effective Time. This Agreement is being entered into by Dover and Apergy on behalf of themselves and the members of their respective Groups (i.e., the Dover Group and the Apergy Group,
respectively). This Agreement shall constitute a direct obligation of each such entity and shall be deemed to have been readopted and affirmed on behalf of any Business Entity that becomes a Subsidiary or Affiliate of such Party at and after the
Effective Time. Either Party shall have the right, by giving notice to the other Party, to require that any Subsidiary of the other Party execute a counterpart to this Agreement to become bound by the provisions of this Agreement applicable to such
Subsidiary. 
 7.17 No Circumvention. The Parties agree not to directly or indirectly take any actions, act in concert with any
Person who takes an action, or cause or allow any member of any such Party’s Group to take any actions (including the failure to take a reasonable action) intended to, or such that the resulting effect is to, materially undermine the
effectiveness of any of the provisions of this Agreement, the Separation Agreement, or any other Ancillary Agreement (including adversely affecting the rights or ability of any Party to successfully pursue indemnification, contribution, or payment
pursuant to Article VI of the Separation Agreement). 

  
 27 

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

			
	DOVER CORPORATION

 
			
		
	By: 	 	 
		 	Name:
		 	Title:

  
 [Signature Page to
Employee Matters Agreement] 

 
			
	APERGY CORPORATION

 
			
		
	By: 	 	 
		 	Name:
		 	Title:

  
 [Signature Page to
Employee Matters Agreement]Exhibit 4.1

 

NEVADA POWER COMPANY

 

OFFICER’S CERTIFICATE

 

April 12, 2018

 

I, the undersigned officer of Nevada Power Company (the “Company”), do hereby certify that I am an Authorized Officer of the Company as such term is defined in the Indenture (as defined herein). I am delivering this certificate pursuant to the authority granted in the Board Resolutions of the Company dated April 6, 2018, and Sections 1.04, 2.01, 3.01, 4.01(a) and 4.03(b)(i) of the General and Refunding Mortgage Indenture dated as of May 1, 2001, as heretofore amended and supplemented to the date hereof (as heretofore amended and supplemented, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”). Terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Indenture. Based upon the foregoing, I hereby certify on behalf of the Company as follows:

 

1.                                      The terms and conditions of the Securities of the series established in this Officer’s Certificate to be issued under the Indenture are as follows (the lettered subdivisions set forth in this Section 1 corresponding to the lettered subdivisions of Section 3.01 of the Indenture):

 

(a)                                 The Securities of such series shall be designated “2.75% General and Refunding Mortgage Notes, Series BB, due 2020” (the “Series BB Notes”).

 

(b)                                 There shall be no limit upon the aggregate principal amount of the Series BB Notes that may be authenticated and delivered under the Indenture. The Series BB Notes shall be initially authenticated and delivered in the aggregate principal amount of $575,000,000.

 

(c)                                  Interest on the Series BB Notes shall be payable to the Persons in whose names such Securities are registered at the close of business on the Regular Record Date for such interest, except as otherwise expressly provided in the form of such Securities attached hereto as Exhibit A.

 

(d)                                 The Series BB Notes shall mature and the principal thereof shall be due and payable together with all accrued and unpaid interest thereon on April 15, 2020.

 

(e)                                  The Series BB Notes shall bear interest at 2.75% per annum and such interest shall be payable at the times provided in the form of such Securities attached hereto as Exhibit A.

 

(f)                                   The corporate trust agency office of The Bank of New York Mellon Trust Company, N.A. at 101 Barclay Street in New York, New York 10286 shall be the place at which (i) the principal of and interest and premium, if any, on the Series BB Notes shall be payable, (ii) registration of transfer of the Series BB Notes may be effected and (iii) exchanges of the Series BB Notes may be effected. The Corporate Trust Office of The Bank of New York Mellon Trust Company, N.A., at 400 South Hope Street, Suite 

 

 

500, Los Angeles, California 90071 shall be the place where notices and demands to or upon the Company in respect of the Series BB Notes and the Indenture may be served; and The Bank of New York Mellon Trust Company, N.A. shall be the Paying Agent and Security Registrar for the Series BB Notes; provided, however, that the Company reserves the right to change, by one or more Officer’s Certificates, any such place or the Paying Agent and Security Registrar; and provided, further, that the Company reserves the right to designate, by one or more Officer’s Certificates, its principal office in Las Vegas, Nevada as any such place or itself or any of its Subsidiaries as the Security Registrar; provided, however, that there shall be only a single Security Registrar for the Series BB Notes.

 

(g)                                  Optional Redemption.

 

(i)                                     The Company may redeem the Series BB Notes, at its option, in whole at any time or in part from time to time, at a redemption price equal to the greater of (A) 100% of the principal amount of the Series BB Notes being redeemed and (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Series BB Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 10 basis points (the “Make-Whole Amount”), plus, in each case, accrued interest thereon to the date of redemption. For purposes of determining the Make-Whole Amount, the following definitions apply:

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series BB Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series BB Notes.

 

“Independent Investment Banker” means an investment banking institution of international standing appointed by the Company.

 

“Reference Treasury Dealer” means a primary U.S. government securities dealer in New York City appointed by the Company.

 

“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date).

 

“Treasury Rate” means the rate per annum equal to the semi-annual equivalent or interpolated (on a day-count basis) yield to maturity of the 

 

2

 

applicable Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Reference Treasury Dealer Quotation for the applicable redemption date. 

 

The Trustee shall have no responsibility for any calculation or determination in respect of the establishment of the redemption price of the Notes and shall be entitled to receive and rely conclusively upon an Officer’s Certificate that states the redemption price.

 

(ii)                                  Notice of any redemption will be mailed (and as long as the Series BB Notes being redeemed are represented by one or more global securities, transmitted in accordance with the standard procedures of The Depository Trust Company (“DTC”) therefor) at least 30 days but not more than 60 days before the redemption date to each registered holder of Series BB Notes.

 

(iii)                               If less than all of the Series BB Notes are to be redeemed at any time, selection of the Series BB Notes for redemption will be made by the Security Registrar by lot, pro rata or such other method as the Security Registrar deems fair and appropriate.

 

(h)                                 The Company is not required to make mandatory redemption or sinking fund payments with respect to the Series BB Notes.

 

(i)                                     The Series BB Notes are issuable only in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

(j)                                    Not applicable.

 

(k)                                 Not applicable.

 

(l)                                     Not applicable.

 

(m)                             See subsection (e) above.

 

(n)                                 Not applicable.

 

(o)                                 Not applicable.

 

(p)                                 Not applicable.

 

(q)                                 Book-entry; Delivery and Form.

 

(i)                                     Form and Dating.

 

The Series BB Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A attached hereto. The Series BB Notes may have notations, legends or endorsements required by law, securities exchange rule or usage. 

 

3

 

Each Series BB Note shall be dated the date of its authentication. The Series BB Notes shall be in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

The terms and provisions contained in the Series BB Notes shall constitute, and are hereby expressly made, a part of this Officer’s Certificate, and the Company, by its execution and delivery of this Officer’s Certificate, expressly agrees to such terms and provisions and to be bound thereby. However, to the extent any provision of any Series BB Note conflicts with the express provisions of this Officer’s Certificate or the Indenture, the provisions of this Officer’s Certificate or the Indenture, as applicable, shall govern and be controlling.

 

Series BB Notes initially shall be issued in global form and shall be substantially in the form of Exhibit A hereto. Series BB Notes issued in definitive form shall also be substantially in the form of Exhibit A attached hereto. Each Global Note shall represent such aggregate principal amount of the outstanding Series BB Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal amount of outstanding Series BB Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Series BB Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Series BB Notes represented thereby shall be made by the Trustee, the Depositary or the Note Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 1(q)(iv) of this Officer’s Certificate.

 

(ii)                                  Authentication.

 

The Trustee or an Authenticating Agent shall authenticate by delivery and execution of a Trustee’s Certificate of Authentication in the form set forth in Section 2.02 of the Indenture (A) the Series BB Notes for original issue on the Issue Date in the initial aggregate principal amount of $575,000,000 (B) additional Series BB Notes for original issue from time to time after the Issue Date in such principal amounts as may be set forth in a Company Order, in each case, upon receipt of a Company Order, which Company Order shall specify (x) the amount of Series BB Notes to be authenticated and the date of original issue thereof and (y) the amount of Series BB Notes to be issued in global form or definitive form. The aggregate principal amount of the Series BB Notes outstanding at any time may not exceed $575,000,000 plus such additional principal amounts as may be issued and authenticated pursuant to clause (B) of the preceding sentence of this paragraph.

 

(iii)                               Security Registrar, Paying Agent and Depositary.

 

The Company initially appoints the Trustee to act as the Security Registrar and Paying Agent for the Series BB Notes. Upon the occurrence of an Event of Default set forth in Sections 10.01(d) or 10.01(e) of the Indenture, the Trustee shall serve as Paying Agent for the Series BB Notes. Pursuant to Section 6.02 of the Indenture, the Company hereby designates the corporate trust agency office of the Trustee as its office or agency 

 

4

 

at 101 Barclay Street in the City and State of New York where payment of the Series BB Notes shall be made and where the registration of transfer or exchange of the Series BB Notes may be effected; and the Corporate Trust Office of the Trustee at 400 South Hope Street, Suite 500, Los Angeles, California 90071 as the place where notices and demands to or upon the Company in respect of the Series BB Notes and the Indenture may be served. The Company may also from time to time designate one or more other offices or agencies with respect to the Series BB Notes and may from time to time rescind any of these designations in accordance with the terms provided in Section 6.02 of the Indenture.

 

The Company initially appoints DTC to act as Depositary with respect to the Global Notes. The Trustee has been appointed by DTC to act as Note Custodian with respect to the Global Notes.

 

(iv)                              Transfer and Exchange.

 

(1)               Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes shall be exchanged by the Company for Definitive Notes if:

 

a.                                      the Company delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary for the Global Notes or that it is no longer a clearing agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and, in either case, a successor Depositary is not appointed by the Company within 90 days after the date of such notice from the Depositary; or

 

b.                                      the Company in its sole discretion notifies the Trustee in writing that it elects to cause issuance of the Series BB Notes in certificated form.

 

Upon the occurrence of either of the preceding events in a. or b. above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 3.06 and 3.09 of the Indenture. Every Series BB Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to Sections 3.06 and 3.09 of the Indenture, shall be authenticated and delivered in the form of Exhibit A attached hereto. A Global Note may not be exchanged for another Series BB Note other than as provided in this Section 1(q)(iv)(1); however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 1(q)(iv)(2) of this Officer’s Certificate.

 

(2)                                 Transfer and Exchange of Beneficial Interests in the Global Notes. The Company acknowledges that the transfer and exchange of beneficial interests in the 

 

5

 

Global Notes will be effected through the Depositary, in accordance with the Applicable Procedures.

 

(3)                                 Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 1(q)(iv)(3), the Security Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Security Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Security Registrar duly executed by such Holder or by his attorney, duly authorized in writing.

 

(4)                                 Legends. The following legend shall appear on the face of all Global Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Officer’s Certificate:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE OFFICER’S CERTIFICATE UNDER THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED OR PERMITTED UNDER THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 1(q)(iv)(1) OF THE OFFICER’S CERTIFICATE UNDER THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.09 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY OR ANY SUCCESSOR THERETO.”

 

Additionally, so long as DTC is the Depositary with respect to any Global Note, each such Global Note shall also bear a legend in substantially the following form:

 

“UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY, TO THE COMPANY OR ANY SUCCESSOR THERETO OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

6

 

(5)                                 Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be returned to or retained and canceled by the Trustee in accordance with Section 3.09 of the Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Series BB Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note, by the Trustee, the Note Custodian or the Depositary at the direction of the Trustee, to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note, by the Trustee, the Note Custodian or by the Depositary at the direction of the Trustee, to reflect such increase.

 

(6)                                 General Provisions Relating to Transfers and Exchanges. To permit registrations of transfers and exchanges, subject to Section 1(q)(iv) of this Officer’s Certificate, the Company shall execute and, upon the Company’s order, the Trustee or an Authenticating Agent shall authenticate Global Notes and Definitive Notes at the Security Registrar’s request.

 

(v)                                 Outstanding Series BB Notes.

 

Notwithstanding the definition of “Outstanding” in Section 1.01 of the Indenture, Series BB Notes that the Company, a Subsidiary of the Company or an Affiliate of the Company offers to purchase or acquires pursuant to an offer, exchange offer, tender offer or otherwise shall not be deemed to be owned by the Company, such Subsidiary or such Affiliate until legal title to such Series BB Notes passes to the Company, such Subsidiary or such Affiliate, as the case may be.

 

(r)                                    Not applicable.

 

(s)                                   Not applicable.

 

(t)                                    Not applicable.

 

(u)                                 Additional Conditions and Definitions.

 

(i)                                     Additional Conditions to Section 9.01 of Indenture.

 

Notwithstanding the provisions of Section 9.01 of the Indenture, no Series BB Note shall be deemed to have been paid pursuant to such provisions unless the Company shall have delivered to the Trustee either: (a) an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date of this Officer’s Certificate, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall 

 

7

 

confirm that, the Holders of the Outstanding Series BB Notes will not recognize income, gain or loss for federal income tax purposes as a result of such satisfaction and discharge and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such satisfaction and discharge had not occurred or (b) (i) an instrument wherein the Company, notwithstanding the satisfaction and discharge of the Company’s indebtedness in respect of the Series BB Notes, shall assume the obligation (which shall be absolute and unconditional) to irrevocably deposit with the Trustee such additional sums of money, if any, or additional Eligible Obligations, if any, or any combination thereof, at such time or times, as shall be necessary, together with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become due on such Series BB Notes or portions thereof; provided, however, that such instrument may state that the Company’s obligation to make additional deposits as aforesaid shall be subject to the delivery to the Company by the Trustee of a notice asserting the deficiency accompanied by an opinion of an Independent public Accountant of nationally recognized standing showing the calculation thereof; and (ii) an Opinion of Counsel of tax counsel in the United States reasonably acceptable to the Trustee to the effect that the Holders of the Outstanding Series BB Notes will not recognize income, gain or loss for federal income tax purposes as a result of such satisfaction and discharge and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such satisfaction and discharge had not occurred.

 

(ii)                                  Modifications Requiring Consent.

 

In addition to the provisions of Section 14.02 of the Indenture, no supplemental indenture shall alter or waive any of the provisions with respect to the redemption of the Series BB Notes set forth in Section 1(g) hereof without the consent of each Holder of Series BB Notes affected thereby.

 

(iii)                               Certain Definitions.

 

Set forth below are certain defined terms used in this Officer’s Certificate. Reference is made to the Indenture for the definitions of any other capitalized terms used herein for which no definition is provided herein.

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

 

8

 

“Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange.

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors.

 

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” shall be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding meaning.

 

“Default” means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default as defined in the Indenture.

 

“Definitive Note” means a certificated Series BB Note registered in the name of the Holder thereof and issued in accordance with Section 1(q)(iv) of this Officer’s Certificate, in the form of Exhibit A hereto except that such Series BB Note shall not bear the Global Note Legend.

 

“Depositary” means, with respect to the Series BB Notes issuable or issued in whole or in part in global form, the Person specified in Section 1(q)(iii) of this Officer’s Certificate as the Depositary with respect to the Series BB Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the applicable provision of this Officer’s Certificate or the Indenture.

 

“Euroclear” means Euroclear Bank S.A./N.V.

 

“Event of Default” means an Event of Default as defined in the Indenture.

 

“Global Note Legend” means the first legend and, if applicable, the second legend set forth in Section 1(q)(iv)(4) of this Officer’s Certificate.

 

“Global Notes” means, individually and collectively, each of the Series BB Notes issued or issuable in the global form of Exhibit A hereto issued in accordance with Sections 1(q)(i) of this Officer’s Certificate, and that bears the Global Note Legend and that is deposited with or on behalf of and registered in the name of the Depositary.

 

“Issue Date” means the first date on which any Series BB Notes are issued, authenticated and delivered under the Indenture and this Officer’s Certificate.

 

“Note Custodian” means the Trustee, as custodian for the Depositary with respect to the Series BB Notes in global form, or any successor entity thereto.

 

9

 

“Subsidiary” means, with respect to any specified Person:

 

(1)                                 any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(2)                                 any partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

 

“Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the board of directors of such Person.

 

2.                                      The undersigned has read all of the covenants and conditions contained in the Indenture, and the definitions in the Indenture relating thereto, relating to the issuance of the Series BB Notes and in respect of compliance with which this certificate is made.

 

The statements contained in this certificate are based upon the familiarity of the undersigned with the Indenture, the documents accompanying this certificate, and upon discussions by the undersigned with officers and employees of the Company familiar with the matters set forth herein.

 

In the opinion of the undersigned, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenants and conditions have been complied with.

 

In the opinion of the undersigned, such conditions and covenants have been complied with.

 

10

 

IN WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate as of the date first written above.

 

 

	
 
    	
By:
    	
 
    
	
 
    	
Name: E. Kevin Bethel
    
	
 
    	
Title: Senior Vice President and Chief   Financial Officer
    

 

 

Receipt acknowledged on
  April     , 2018

 

	
THE BANK OF NEW YORK MELLON
    	
 
    
	
TRUST COMPANY, N.A., as Trustee
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

 

Exhibit A

 

Form of Series BB Notes

 

[Insert the Global Note Legend, if applicable, pursuant to the provisions of the Indenture and the Officer’s Certificate]

 

NEVADA POWER COMPANY

2.75% General and Refunding Mortgage Note, Series BB, due 2020

 

	
Original Interest Accrual Date:
    	
April 12, 2018
    	
 
    	
Redeemable by Company:
    	
Yes x   No o
    
	
Stated Maturity:
    	
April 15, 2020
    	
 
    	
 
    	
 
    
	
Interest Rate:
    	
2.75%
    	
 
    	
Redemption Date:
    	
See Below
    
	
Interest Payment Dates:
    	
April 15 and October 15
    	
 
    	
Redemption Price: 
    	
See Below
    
	
Regular Record Dates:
    	
April 1 and October 1
    	
 
    	
 
    	
 
    

 

The Security is not a Discount Security
 within the meaning of the within-mentioned Indenture.

 

 

CUSIP No. 641423 CB2

 

2.75% General and Refunding Mortgage Notes, Series BB, due 2020

 

	
No. R-
    	
 
    	
$                        
    

 

Nevada Power Company, a Nevada corporation (the “Company”) promises to pay to              or registered assigns, the principal sum of                  Dollars on April 15, 2020.

 

1.                                      Interest.  The Company promises to pay interest on the principal amount of this Series BB Note at 2.75% per annum, from April 12, 2018 until maturity. The Company shall pay interest semi-annually in arrears on April 15 and October 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the Series BB Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from Original Interest Accrual Date specified above; provided that if there is no existing Default in the payment of interest, and if this Series BB Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date, except in the case of the original issuance of Series BB Notes, in which case interest shall accrue from the Original Interest Accrual Date specified above; provided, further, that the first Interest Payment Date shall be October 15, 2018. The Company shall pay interest (including postpetition interest in any proceeding under the Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the rate borne on the Series BB Notes; it shall pay interest

 

A-1

 

(including post-petition interest in any proceeding under the Bankruptcy Law) on overdue installments of interest, if any, (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

 

2.                                      Method of Payment. The Company shall pay interest on the Series BB Notes (except Defaulted Interest) to the Persons who are registered Holders of Series BB Notes at the close of business on the April 1 and October 1 next preceding the Interest Payment Date, even if such Series BB Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 3.07 of the Indenture with respect to Defaulted Interest. The Series BB Notes shall be payable as to principal and premium and interest at the office or agency of the Company maintained for such purpose within the City and State of New York, or, at the option of the Company, payment of interest may be made by check mailed to the Holders of Series BB Notes at their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately available funds shall be required with respect to principal of, and interest and premium, if any, on, all Global Notes and all other Series BB Notes the Holders of which shall have provided wire transfer instructions to the Company or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

3.                                      Paying Agent and Security Registrar. Initially, The Bank of New York Mellon Trust Company, N.A., the Trustee under the Indenture, shall act as Paying Agent and Security Registrar. The Company may change any Paying Agent or Security Registrar without notice to any Holder of Series BB Notes. The Company or any of its Subsidiaries may act in any such capacity.

 

4.                                      Indenture; Security. This Series BB Note is one of a duly authorized issue of Securities of the Company, issued and issuable in one or more series under and equally secured by a General and Refunding Mortgage Indenture, dated as of May 1, 2001 (such Indenture as originally executed and delivered and as supplemented or amended from time to time thereafter, together with any constituent instruments establishing the terms of particular Securities, being herein called the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee,” which term includes any successor Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the property mortgaged, pledged and held in trust, the nature and extent of the security and the respective rights, limitations of rights, duties and immunities of the Company, the Trustee and the Holders of the Securities thereunder and of the terms and conditions upon which the Securities are, and are to be, authenticated and delivered and secured. The acceptance of this Series BB Note shall be deemed to constitute the consent and agreement by the Holder hereof to all of the terms and provisions of the Indenture. This Series BB Note is one of the series designated above. The terms of the Series BB Notes include those stated in the Indenture, including the Officer’s Certificate dated April 12, 2018 (the “Officer’s Certificate”), and those made part of the Indenture by reference to the Trust Indenture Act. The Series BB Notes are subject to all such terms, and Holders of Series BB Notes are referred to the Indenture, including the Officer’s Certificate, and such Act for a statement of such terms. To the extent any provision of this Series BB Note conflicts with the express provisions of the Indenture or the Officer’s Certificate, the provisions of the Indenture and the Officer’s

 

A-2

 

Certificate shall govern and be controlling. The Series BB Notes are general obligations of the Company initially limited to $575,000,000 aggregate principal amount in the case of Series BB Notes issued on the Issue Date.

 

All Outstanding Securities, including the Series BB Notes, issued under the Indenture are secured by the lien of the Indenture on the properties of the Company described in the Indenture.

 

5.                                      Optional Redemption.  The Company may redeem the Series BB Notes, at its option, in whole at any time or in part from time to time, at a redemption price equal to the greater of (A) 100% of the principal amount of the Series BB Notes being redeemed and (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Series BB Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 10 basis points (the “Make-Whole Amount”), plus, in each case, accrued interest thereon to the date of redemption. For purposes of determining the Make-Whole Amount, the following definitions apply:

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series BB Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series BB Notes.

 

“Independent Investment Banker” means an investment banking institution of international standing appointed by the Company.

 

“Reference Treasury Dealer” means a primary U.S. government securities dealer in New York City appointed by the Company.

 

“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date).

 

“Treasury Rate” means the rate per annum equal to the semi-annual equivalent or interpolated (on a day-count basis) yield to maturity of the applicable Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Reference Treasury Dealer Quotation for the applicable redemption date.

 

The Trustee shall have no responsibility for any calculation or determination in respect of the establishment of the redemption price of the Notes and shall be entitled to receive and rely conclusively upon an Officer’s Certificate that states the redemption price.

 

A-3

 

6.                                      Notice of Optional Redemption.  Notice of any redemption will be mailed (and as long as the Series BB Notes being redeemed are represented by one or more global securities, transmitted in accordance with the standard procedures of The Depository Trust Company therefor) at least 30 days but not more than 60 days before the redemption date to each registered holder of Series BB Notes.

 

7.                                      Mandatory Redemption. The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Series BB Notes.

 

8.                                      Denominations, Transfer, Exchange. The Series BB Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Series BB Notes may be registered and Series BB Notes may be exchanged as provided in the Indenture and the Officer’s Certificate. The Security Registrar and the Trustee may require a Holder of Series BB Notes, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder of Series BB Notes to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Series BB Note or portion of a Series BB Note selected for redemption, except for the unredeemed portion of any Series BB Note being redeemed in part. Also, the Company need not exchange or register the transfer of any Series BB Notes for a period of 15 days before a selection of Series BB Notes to be redeemed or during the period between a record date and the corresponding Interest Payment Date.

 

9.                                      Persons Deemed Owners. The registered Holder of a Series BB Note may be treated as its owner for all purposes.

 

10.                               Amendment, Supplement and Waiver. The Indenture permits, with certain exceptions as therein provided, the Trustee to enter into one or more supplemental indentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities of all series then Outstanding under the Indenture, considered as one class; provided, however, that if there shall be Securities of more than one Series outstanding under the Indenture and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series so directly affected, considered as one class, shall be required; and provided, further, that if the Securities of any series shall have been issued in more than one Tranche and if the proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that the Indenture permits the Trustee to enter into one or more supplemental indentures for limited purposes without the consent of any Holders of Securities. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities then Outstanding, on behalf of the Holders of all Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Series BB Note shall be conclusive and binding upon such Holder and upon all future Holders of this Series BB Note and

 

A-4

 

of any Series BB Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Series BB Note.

 

11.                               Events of Default. If an Event of Default shall occur and be continuing, the principal of this Series BB Note may be declared due and payable in the manner and with the effect provided in the Indenture.

 

12.                               No Recourse Against Others. As provided in the Indenture, no recourse shall be had for the payment of the principal of or premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture, against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Securities are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities.

 

13.                               Authentication. Unless the certificate of authentication hereon has been executed by the Trustee or an Authenticating Agent by manual signature, this Series BB Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

14.                               Transfer and Exchange.

 

(a) As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Series BB Note is registrable in the Security Register, upon surrender of this Series BB Note for registration of transfer at the corporate trust agency office of The Bank of New York Mellon Trust Company, N.A. in New York, New York or such other office or agency as may be designated by the Company from time to time, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Series BB Notes of this series or authorized denominations and of like tenor and aggregate principal amount, will be issued to the designated transferee or transferees.

 

(b) No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

(c) Prior to due presentment of this Series BB Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Series BB Note is registered as the absolute owner hereof for all purposes, whether or not this Series BB Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

A-5

 

15.                               Governing Law. The Series BB Notes shall be governed by and construed in accordance with the laws of the State of New York.

 

16.                               Definition of Other Terms. All terms used in this Series BB Note which are defined in the Indenture or the Officer’s Certificate shall have the meanings assigned to them in the Indenture or the Officer’s Certificate, as applicable, unless otherwise indicated.

 

17.                               Abbreviations. Customary abbreviations may be used in the name of a Holder of Series BB Notes or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

18.                               CUSIP Numbers. The Company has caused CUSIP numbers to be printed on the Series BB Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders of Series BB Notes. No representation is made as to the accuracy of such numbers either as printed on the Series BB Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

The Company shall furnish to any Holder of Series BB Notes upon written request and without charge a copy of the Indenture. Requests may be made to:

 

Nevada Power Company

6226 West Sahara Avenue

Las Vegas, Nevada 89146

Attention: Treasurer

Telephone: (702) 402-5000

 

A-6

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

	
 
    	
 
    	
NEVADA POWER COMPANY
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
E.   Kevin Bethel
    
	
 
    	
 
    	
 
    	
Title:
    	
Senior   Vice President and
    
	
 
    	
 
    	
 
    	
 
    	
Chief   Financial Officer
    

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

 

	
Dated: April    , 2018
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,   as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

A-7

 

Assignment Form

 

To assign this Series BB Note, fill in the form below: (I) or (we) assign and transfer this Series BB Note to

 

	
 
    
	
(Insert assignee’s soc.   sec. or tax I.D. no.)
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type assignee’s name, address and   zip code)
    

 

and irrevocably appoint                                                                                  to transfer this Series BB Note on the books of the Company. The agent may substitute another to act for him.

 

 

	
Date:
    
	
 
    
	
Your Signature:
    	
 
    
	
 
    	
(Sign exactly as your name appears on   the face of this Series BB Note)
    

 

SIGNATURE GUARANTEE

 

	
 
    
	
 
    	
Signatures must be guaranteed by an   “eligible guarantor institution” meeting the requirements of the Security   Registrar, which requirements include membership or participation in the   Security Transfer Agent Medallion Program (“STAMP”) or such other “signature   guarantee program” as may be determined by the Security Registrar in addition   to, or in substitution for, STAMP, all in accordance with the Securities   Exchange Act of 1934, as amended.
    

 

A-8

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