Document:

EX-10.2

 Exhibit 10.2 
  

 
  

[FORM OF] 
 TAX MATTERS AGREEMENT

 INTERNATIONAL PAPER COMPANY 

AND 
 SYLVAMO CORPORATION 

DATED AS OF [    ], 2021 
  

 
  

 TABLE OF CONTENTS 

 

							
	ARTICLE I	  

	DEFINITIONS	  

	
	ARTICLE II	  

	ALLOCATION OF TAX LIABILITIES	  

			
	 2.1
	 	 General Rule
	  	 	10	 
	 2.2
	 	 Ordinary Taxes
	  	 	10	 
	 2.3
	 	 Scheduled Tax Allocations
	  	 	10	 
	 2.4
	 	 Employment Taxes
	  	 	10	 
	 2.5
	 	 Certain Transaction and Other Taxes
	  	 	10	 
	
	ARTICLE III	  

	CLOSING OF TAXABLE YEARS	  

			
	 3.1
	 	 Closing of Taxable Years
	  	 	12	 
	
	ARTICLE IV	  

	PREPARATION AND FILING OF TAX RETURNS	  

			
	 4.1
	 	 Responsibility of Preparing Tax Returns
	  	 	12	 
	 4.2
	 	 Tax Accounting Practices
	  	 	13	 
	 4.3
	 	 Carrybacks and Claims for Refund
	  	 	14	 
	 4.4
	 	 Allocation of Earnings and Profits and Tax Attributes
	  	 	14	 
	 4.5
	 	 Transfer Pricing
	  	 	15	 
	
	ARTICLE V	  

	TAX PAYMENTS	  

			
	 5.1
	 	 Filing of Tax Returns and Payment of Taxes
	  	 	15	 
	 5.2
	 	 Indemnification Payments
	  	 	16	 
	
	ARTICLE VI	  

	TAX BENEFITS	  

			
	 6.1
	 	 Tax Benefits
	  	 	16	 
	
	ARTICLE VII	  

	INTENDED TAX TREATMENT	  

			
	 7.1
	 	 Representations
	  	 	18	 
	 7.2
	 	 Restrictions on SpinCo
	  	 	19	 
	 7.3
	 	 Restrictions on Parent
	  	 	21	 
	 7.4
	 	 Procedures Regarding Opinions and Rulings
	  	 	21	 
	 7.5
	 	 Liability for Tax Related Losses
	  	 	22	 

  
 i 

							
	ARTICLE VIII	 
	PROCEDURAL MATTERS	 
			
	8.1	 	 Cooperation
	  	 	25	 
	8.2	 	 Interest
	  	 	26	 
	8.3	 	 Treatment of Payments; Tax Gross Up
	  	 	26	 
	8.4	 	 Dispute Resolution
	  	 	27	 
	
	ARTICLE IX	 
	TAX CONTESTS	 
			
	9.1	 	 Tax Contests
	  	 	28	 
	9.2	 	 Expenses and Applicability
	  	 	30	 
	
	ARTICLE X	 
	MISCELLANEOUS	 
			
	10.1	 	 Effective Date; Termination of Prior Intercompany Tax Allocation Agreements
	  	 	30	 
	10.2	 	 Coordination of Agreements
	  	 	30	 
	10.3	 	 Counterparts; Entire Agreement; Corporate Power
	  	 	30	 
	10.4	 	 Governing Law; Waiver of Jury Trial
	  	 	31	 
	10.5	 	 Assignability
	  	 	32	 
	10.6	 	 Third-Party Beneficiaries
	  	 	32	 
	10.7	 	 Notices
	  	 	33	 
	10.8	 	 Severability
	  	 	34	 
	10.9	 	 Force Majeure
	  	 	34	 
	10.10	 	 Headings
	  	 	34	 
	10.11	 	 Survival
	  	 	34	 
	10.12	 	 Waivers of Default
	  	 	34	 
	10.13	 	 Specific Performance
	  	 	34	 
	10.14	 	 Amendments
	  	 	35	 
	10.15	 	 Interpretation
	  	 	35	 
	10.16	 	 Limitations of Liability
	  	 	35	 
	10.17	 	 Performance
	  	 	35	 
	10.18	 	 Mutual Drafting
	  	 	36	 

  
 ii 

 [FORM OF] TAX MATTERS AGREEMENT 

This Tax Matters Agreement, dated as of [    ], 2021 (this “Agreement”), is by and between, International
Paper Company, a New York corporation (“Parent”), and Sylvamo Corporation, a Delaware corporation (“SpinCo”). 

RECITALS 
 WHEREAS, Parent and
SpinCo have entered into a Separation and Distribution Agreement, dated as of the date hereof (as it may be amended from time to time, the “Separation and Distribution Agreement”), providing for the separation of the SpinCo Business
from the Parent Business (the “Separation”) and, following the Separation, for the distribution, on a pro rata basis, to holders of Parent Shares on the Record Date of eighty and one tenth of a percent (80.1%) of the outstanding
SpinCo Shares owned by Parent (the “Distribution”); 
 WHEREAS, Parent plans to dispose of the SpinCo Shares that it
retains following the Distribution through sales of shares for cash; 
 WHEREAS, pursuant to the Separation and Distribution Agreement,
among other things, Parent will contribute the SpinCo Assets and the SpinCo Liabilities to SpinCo in exchange for (i) the actual or deemed issuance by SpinCo to Parent of SpinCo Shares and (ii) the distribution by SpinCo to
Parent of the Cash Transfer (the “Contribution”); 
 WHEREAS, for U.S. federal income tax purposes, it is intended that
each of the Contribution and the Distribution, taken together, and the Internal Distributions (as defined below) qualify as a transaction that is tax-free under Sections 355(a) and 368(a)(1)(D) of the
Code; 
 WHEREAS, as of the date hereof, Parent is the common parent of an affiliated group of domestic corporations, including SpinCo, that
has elected to file consolidated U.S. federal Income Tax Returns and, as a result of the Distribution, neither SpinCo nor any of its Affiliates will be a member of such group after the close of the Distribution Date; and 

WHEREAS, in contemplation of the Separation and Distribution, Parent and SpinCo desire to set forth their agreement on the rights and
obligations of Parent and SpinCo and their respective Affiliates with respect to the responsibility, handling and allocation of federal, state, local and non-U.S. Taxes, and various other Tax matters; 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as set forth herein. 

 ARTICLE I 

DEFINITIONS 
 For purposes
of this Agreement (including the recitals hereof), the following terms have the following meaning, and capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings assigned to them in the Separation and
Distribution Agreement: 
 “Accounting Firm” has the meaning set forth in Section 8.4. 

“Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of the Code and the Treasury
Regulations thereunder) by Parent or SpinCo, as applicable, and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the trade or business(es) relied upon to satisfy Section 355(b) of the Code with
respect to the Distribution (as described in the IRS Ruling Request and the Representation Letters), as conducted immediately prior to the Distribution. 

“Adjustment Request” means any formal or informal claim or request filed with any Tax Authority, or with any administrative
agency or court, for the adjustment, refund, or credit of Taxes, including (a) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as previously adjusted, (b) any claim for
equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously paid. 

“Agreement” has the meaning set forth in the Preamble. 

“Ancillary Agreements” has the meaning set forth in the Separation and Distribution Agreement, provided that, for
purposes of this Agreement, “Ancillary Agreements” shall not include the Intellectual Property Agreements, the Commercial Agreements or the Leases (as each term is defined in the Separation and Distribution Agreement). 

“Capital Stock” means, with respect to any Party, all classes or series of capital stock of such Party, including
(a) common stock, (b) all options, warrants and other rights to acquire such capital stock and (c) all instruments properly treated as stock in such Party for U.S. federal income tax purposes. 

“CFO Certificate” has the meaning set forth in Section 7.2(d). 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Combined Return” means any Tax Return that actually includes, by election or otherwise, one or more members of the Parent
Group together with one or more members of the SpinCo Group, including (a) any consolidated, combined or unitary Tax Return, and (b) any Tax Return with respect to any profit and/or loss sharing group, group payment or
similar group or fiscal unit. 
 “Distribution” has the meaning set forth in the Recitals. 

  
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 “Distribution Date” means the date of the consummation of the Distribution,
which shall be determined by the Parent Board in its sole and absolute discretion. 
 “Employee Matters Agreement” means
the Employee Matters Agreement entered into by and between Parent and SpinCo or members of their respective Groups in connection with the Separation, the Distribution or the other transactions contemplated by the Separation and Distribution
Agreement, as it may be amended from time to time. 
 “Employment Taxes” means (i) any Tax, the liability or
responsibility for which is allocated pursuant to Section 2.6 of the Employee Matters Agreement and (ii) any employment, payroll, social security, disability, unemployment, workers’ compensation or other similar Taxes, tax withholding
or similar obligations in respect of Transferred Employees (as defined in the Employee Matters Agreement) employed in jurisdictions outside of the United States, the liability or responsibility for which is allocated pursuant to any agreement
entered into in connection with the Separation outside of the United States. 
 “Fifty-Percent or Greater Interest” has the
meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code. 
 “Final Determination” means the
final resolution of liability for any Tax, which resolution may be for a specific issue or adjustment or for a Tax Period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the
date of acceptance by or on behalf of the taxpayer, or by a comparable form under the laws of a state, local, or non-U.S. taxing jurisdiction, except that a Form 870 or
870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund or the
right of the applicable Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such Tax Period (as the case may be); (b) by a decision, judgment, decree, or other order by a court of competent jurisdiction,
which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of a state, local, or
non-U.S. taxing jurisdiction; (d) by any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all Tax Periods during which such refund may be
recovered (including by way of offset) by the jurisdiction imposing such Tax; (e) by a final settlement resulting from a treaty-based competent authority determination; or (f) by any other final disposition, including by
reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties. 
 “Group” means
either the SpinCo Group or the Parent Group, as the context requires. 
 “Income Tax” means any Tax which is based upon,
measured by, or calculated with respect to income, capital, net receipts or net worth and any other franchise or similar Taxes. 

“Income Tax Return” means any Tax Return relating to Income Taxes. 

“Indemnifying Party” means a Party that has an obligation to make an Indemnity Payment. 

  
 3 

 “Indemnitee” means a Party that is entitled to receive an Indemnity
Payment. 
 “Indemnity Payment” means an indemnity payment required by this Agreement from an Indemnifying Party in respect
of any Liability. 
 “Intended Tax Treatment” means (a) the Contribution and the Distribution, the Internal
Distributions and the Internal Contributions effected as part of the Separation will qualify for Tax-Free Status and (b) the Non-U.S. Separation Transactions
will qualify in accordance with the treatment set forth in the applicable Tax Opinion/Ruling. 
 “Internal Contribution”
means any internal separation of the SpinCo Assets and SpinCo Liabilities from the Parent Assets and Parent Liabilities (a) held by certain subsidiaries of Parent and (b) in a transaction intended to qualify, for U.S. federal
income Tax purposes, as a contribution that is generally tax-free pursuant to Section 351(a) of the Code. 

“Internal Distribution” means any internal separation of the SpinCo Assets and SpinCo Liabilities from the Parent Assets and
Parent Liabilities (a) held by certain subsidiaries of Parent and (b) in a transaction intended to qualify, for U.S. federal income Tax purposes, as a distribution that is generally
tax-free pursuant to Section 355(a) (or Sections 355(a) and 368(a)(1)(D)) of the Code). 

“IRS” means the U.S. Internal Revenue Service. 

“IRS Ruling Request” means the request for private letter rulings filed by Parent on February 16, 2021 with the IRS
(including all attachments, exhibits, and other materials submitted with such ruling request and any amendments or supplemental submissions related thereto). 

“Liability Event” has the meaning set forth in Section 7.5(c). 

“Non-U.S. Separation Transaction” shall mean each of (a) the transfer of
certain assets and employees by International Paper Polska Sp. z o.o to Sylvamo Polska Sp. Zo.o in a partial demerger, in exchange for the issuance of shares of Sylvamo Polska Sp. Zo.o to International Paper (Poland) Holding sp. z. o.o. and
(b) the transfer of certain assets and employees by IP Belgian Services Company SPRL to International Paper Benelux SRL in a partial demerger in exchange for the issuance of membership interests of International Paper Benelux SRL to
International Paper Investments (Luxembourg) S.à.r.l. 
 “Notified Action” has the meaning set forth in
Section 7.4(a). 
 “Ordinary Taxes” means any Taxes other than Taxes described in Sections
2.3, 2.4 or 2.5. 
 “Parent” has the meaning set forth in the Preamble. 

  
 4 

 “Parent Affiliated Group” means the affiliated group (as such term is
defined in Section 1504 of the Code and the Treasury Regulations thereunder) of which Parent is the common parent. 
 “Parent
Federal Consolidated Income Tax Return” means any U.S. federal Income Tax Return for the Parent Affiliated Group. 

“Parent Final Determination Adjustment” has the meaning set forth in Section 6.1(b). 

“Parent Group” means Parent and each Subsidiary of Parent (other than SpinCo and any other member of the SpinCo Group). 

“Parent Non-Qualified Liabilities” means the “Parent Non-Qualified Pension Plan Liabilities” and the “Parent Non-Qualified Savings Plan Liabilities”, as each term is defined in the Employee Matters Agreement. 

“Parent Non-U.S. Combined Income Tax Return” means any consolidated, combined or
unitary or other similar Tax Return with respect to non-U.S. Income Taxes or any non-U.S. Income Tax Return with respect to any profit and/or loss sharing group, group
payment or similar group or fiscal unity that actually includes, by election or otherwise, one or more members of the Parent Group together with one or more members of the SpinCo Group. 

“Parent Separate Return” means any Tax Return of or including any member of the Parent Group (including any consolidated,
combined or unitary return) that is not a Combined Return. 
 “Parent State Combined Income Tax Returns” means any
consolidated, combined or unitary Tax Return with respect to state Income Taxes that actually includes, by election or otherwise, one or more members of the Parent Group and one or more members of the SpinCo Group. 

“Past Practices” has the meaning set forth in Section 4.2(a). 

“Parties” means the parties to this Agreement. 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for U.S. federal income tax
purposes. 
 “Plan of Reorganization” means the plan of reorganization (within the meaning of Treasury Regulations
Section 1.368-2(g)) that includes the Separation and the Distribution. 

  
 5 

 “Post-Distribution Tax Opinion” means an unqualified “will”
opinion of a Tax Advisor, which Tax Advisor is reasonably acceptable to Parent, on which Parent may rely to the effect that a transaction will not affect the applicable Intended Tax Treatment, provided that any such opinion obtained in
connection with a proposed acquisition of SpinCo’s Capital Stock or the Capital Stock of any entity that was a “controlled corporation” in any Internal Distribution entered into on or before the
two-year anniversary of the Distribution Date shall not qualify as a Post-Distribution Tax Opinion unless such opinion also concludes that such proposed acquisition will not be treated as “part of a plan
(or series of related transactions),” within the meaning of Section 355(e) of the Code and the Treasury Regulations promulgated thereunder, that includes the Distribution or any Internal Distribution. Any such opinion must be consistent
with the assumption that the Transactions would have qualified for the applicable Intended Tax Treatment if the transaction in question did not occur. 

“Post-Distribution Tax Period” means any Tax Period beginning after the Distribution Date, and, in the case of any Straddle
Period, the portion of such Straddle Period beginning the day after the Distribution Date. 

“Pre-Distribution Tax Period” means any Tax Period ending on or before the
Distribution Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Distribution Date 

“Prime Rate” means the rate that Bloomberg displays as “Prime Rate by Country United States” or “Prime Rate by
Country US-BB Comp” at http://www.bloomberg.com/quote/PRIME:IND or on a Bloomberg terminal at PRIMBB Index. 

“Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or
arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), as a result of which SpinCo
would merge or consolidate with any other Person or as a result of which one or more Persons would (directly or indirectly) acquire, or have the right to acquire, from SpinCo and/or one or more holders of outstanding shares of SpinCo’s Capital
Stock, a number of shares of such Capital Stock that would, when combined with any other changes in ownership of such SpinCo’s Capital Stock pertinent for purposes of Section 355(e) of the Code, including for the avoidance of doubt, the
Retention and the Subsequent Sale Transactions, comprise 45% or more of (a) the value of all outstanding shares of stock of SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the last
transaction of such series, or (b) the total combined voting power of all outstanding shares of voting stock of SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of
such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (i) the adoption by SpinCo of a shareholder rights plan or (ii) issuances by SpinCo that satisfy Safe Harbor VIII (relating to
acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d). For purposes of determining whether a
transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the
non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or
change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation. 

  
 6 

 “Records” has the meaning set forth in
Section 8.1(a)(i). 
 “Refund Recipient” has the meaning set forth in
Section 6.1(a). 
 “Representation Letters” means the representation letters and any other
materials (including a Ruling Request and any related supplemental submissions to the IRS or other Tax Authority) delivered or deliverable by or on behalf of Parent, SpinCo and others to a Tax Advisor (or Tax Authority) in connection with the
issuance by such Tax Advisor (or Tax Authority) of a Tax Opinion/Ruling, as amended prior to the issuance of such Tax Opinion/Ruling. 

“Retained Stock” means the outstanding SpinCo Shares, up to 19.9% of the aggregate outstanding SpinCo Shares, that Parent may
retain after the Distribution. 
 “Retention” means Parent’s retention of the Retained Stock after the Distribution.

 “Ruling Request” means any letter filed by Parent with the IRS or any other Tax Authority requesting a ruling (including
the IRS Ruling Request) regarding certain Tax consequences of the Transactions (including all attachments, exhibits, and other materials submitted with such ruling request letter) and any amendment or supplement to such ruling request letter. 

“Section 7.2(d) Transaction” means any transaction or series of transactions that is not a Proposed
Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 30% instead of 45%. 

“Separate Affiliated Group” has the meaning set forth in Section 355(b)(3)(B) of the Code. 

“Separation” has the meaning set forth in the Recitals. 

“Separation and Distribution Agreement” has the meaning set forth in the Recitals. 

“SpinCo” has the meaning set forth in the Preamble. 

“SpinCo Group” means SpinCo and each Person that is a Subsidiary of SpinCo, as determined immediately after the Distribution.

 “SpinCo Separate Return” means any Tax Return of or including any member of the SpinCo Group (including any
consolidated, combined or unitary return) that is not a Combined Return. 

  
 7 

 “Subsequent Sale Transactions” means Parent’s sales of Retained Stock
to third parties no later than five years after the Distribution. 
 “Tax” or “Taxes” means any federal,
state, local or non-U.S. income, alternative minimum, accumulated earnings, capital gains, net receipts, personal holding company, franchise, capital stock, profits, windfall profits, gross receipts, escheat,
unclaimed property, sales, use, value-added, transfer, registration, stamp, premium, excise, customs duties, severance, environmental, real property, personal property, ad valorem, occupancy, license, occupation, employment, payroll, social
security, disability, unemployment, workers’ compensation, withholding, estimated or other similar tax, duty, fee, assessment or other governmental charge or deficiencies thereof (including all interest and penalties thereon and additions
thereto). 
 “Tax Advisor” means any law or accounting firm that is nationally recognized as being expert in tax matters.

 “Tax Attribute” means a net operating loss, earnings and profits, net capital loss, overall foreign loss, unused
investment credit, unused foreign tax credit, excess charitable contribution, alternative minimum tax credit, general business credit, research and development credit or any other Tax Item that could reduce a Tax or create a Tax Benefit. 

“Tax Authority” means, with respect to any Tax, the governmental authority or political subdivision thereof that imposes such
Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision. 
 “Tax Benefit” means
any reduction in liability for Tax as a result of any loss, deduction, refund, credit, or other item reducing Taxes otherwise payable. 

“Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or
effect of determining or redetermining any Tax (including any administrative or judicial review of any claim for refund). 
 “Tax-Free Status” means, with respect to the Contribution and the Distribution taken together (but excluding, for the avoidance of doubt, the Subsequent Sale Transactions) and each Internal Distribution and
Internal Contribution, the qualification thereof (a) other than with respect to the Internal Contributions, as a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code, (b) with respect to the Internal
Contributions, as a contribution described in Section 351 of the Code, (c) other than with respect to the Internal Contributions, as a transaction in which the stock distributed thereby is “qualified property” for purposes
of Sections 355(c)(2) and 361(c)(2) of the Code, (d) a transaction in which Parent, SpinCo and the members of their respective Groups (as relevant) recognize no income or gain for U.S. federal income tax purposes pursuant to Sections
355, 361, and 1032 of the Code or, in the case of the Internal Contributions, Section 351 of the Code, other than, (i) income or gain recognized pursuant to 367(a), 367(b) and/or Section 1248 of the Code and the Treasury
Regulations promulgated under such provisions (assuming, for this purpose, that any available elections to avoid the recognition of income or gain for U.S. federal Income Tax purposes under such provisions have been duly and timely made),
(ii) intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code, (iii) in the case of Parent, income or gain in connection with
Subsequent Sale Transactions and (iv) in the case of shareholders of Parent, any receipt of cash in lieu of fractional shares. 

  
 8 

 “Tax Item” means, with respect to any Income Tax, any item of income, gain,
loss, deduction or credit. 
 “Tax Law” means the law of any governmental entity or political subdivision thereof relating
to any Tax. 
 “Tax Opinions/Rulings” means each opinion of a Tax Advisor or ruling by the IRS or another Tax Authority
delivered or issued to Parent or any of its subsidiaries in connection with, and regarding the tax treatment of the Contribution and Distribution, any Internal Distribution, Internal Contribution or any
Non-U.S. Separation Transaction. 
 “Tax Period” means, with respect to any Tax,
the period for which the Tax is reported as provided under the Code or other applicable Tax Law. 

“Tax-Related Losses” means (a) all Taxes imposed pursuant to any
settlement, Final Determination, judgment or otherwise (including Taxes required to be reflected on any Tax Return prepared in accordance with Section 4.2(b)), (b) all accounting, legal and other professional fees,
and court costs, incurred in connection with such Taxes and (c) all costs, expenses and damages associated with stockholder litigation or controversies and any amount paid by Parent (or any Affiliate of Parent) or SpinCo (or any
Affiliate of SpinCo) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure of the Transactions to have the Intended Tax Treatment. 

“Tax Return” means any federal, state, local or non-U.S. tax return, declaration,
statement, report, schedule, form or information return or any amendment to any of the foregoing relating to Taxes. 
 “Tax Return
Preparer” means (a) with respect to any Tax Return that Parent is responsible for preparing under Section 4.1(a), Parent and (b) with respect to any Tax Return that SpinCo is responsible for
preparing under Section 4.1(b), SpinCo. 
 “Transactions” means the Contribution and Distribution
and the other transactions contemplated by the Separation and Distribution Agreement (including the Internal Distributions, the Internal Contributions, the Non-U.S. Separation Transactions and other
transactions contemplated by the Plan of Reorganization). 
 “Transaction Tax Contest” means a Tax Contest with the purpose
or effect of determining or redetermining Taxes that could give rise to Tax-Related Losses. 

“Treasury Regulations” means the regulations prescribed under the Code. 

  
 9 

 ARTICLE II 

ALLOCATION OF TAX LIABILITIES 

2.1 General Rule. 

(a) Parent Liability. Parent shall be liable for, and shall indemnify and hold harmless the SpinCo Group from and
against any liability for, Taxes that are allocated to Parent under this Article II. 
 (b) SpinCo
Liability. SpinCo shall be liable for, and shall indemnify and hold harmless the Parent Group from and against any liability for, Taxes which are allocated to SpinCo under this Article II. 

2.2 Ordinary Taxes. Subject to Section 2.3, all Ordinary Taxes of the Parent Group and SpinCo Group shall be
allocated as follows: 
 (a) Parent Liability. Parent shall be responsible for any and all Ordinary Taxes imposed on
or payable by a member of the Parent Group for any Tax Period (including Ordinary Taxes due or required to be reported on any Combined Return that is required to be filed by any member of the Parent Group), including any increase in such Tax as a
result of a Final Determination. For the avoidance of doubt, Parent shall be responsible for the amount of any installment payment that is required to be paid by Parent pursuant to Section 965(h) of the Code (including any increase in such
amount as a result of a Final Determination). 
 (b) SpinCo Liability. SpinCo shall be responsible for any and all
Ordinary Taxes imposed on or payable by a member of the SpinCo Group for any Tax Period, (other than Ordinary Taxes due or required to be reported on a Combined Return for which Parent is responsible under Section 2.2(a)), including any
increase in such Tax as a result of a Final Determination. 
 2.3 Scheduled Tax Allocations. Notwithstanding anything to the contrary
herein, all Taxes arising out of the matters described in Schedule 2.3 shall be allocated as described in Schedule 2.3. 
 2.4
Employment Taxes. The Parties acknowledge and agree that this Agreement, including Article II, shall not apply with respect to any and all Employment Taxes, for which the Employee Matters Agreement shall govern. 

2.5 Certain Transaction and Other Taxes. 

(a) SpinCo Liability. SpinCo shall be responsible for, and shall indemnify and hold harmless the Parent Group from and
against any liability for: 
 (i) any stamp, sales and use, gross receipts, real property transfer or gains, or other
transfer Taxes imposed by any Tax Authority on any member of the SpinCo Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 

  
 10 

 (ii) any value-added or goods and services Tax imposed by any Tax Authority
on any member of the SpinCo Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 

(iii) any Tax (other than Tax-Related Losses) resulting from a breach by any member of
the SpinCo Group of any covenant in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement; and 

(iv) any Tax-Related Losses for which SpinCo is responsible pursuant to
Section 7.5. 
 The amounts for which SpinCo is liable pursuant to Section 2.5(a)(i),
(ii), and (iii) shall include all accounting, legal, and other professional fees and court costs incurred in connection with the relevant Taxes and in connection with enforcing this indemnity. 

(b) Parent Liability. Parent shall be responsible for, and shall indemnify and hold harmless the SpinCo Group from and
against any liability for: 
 (i) any stamp, sales and use, gross receipts, real property transfer or gains, or other
transfer Taxes imposed by any Tax Authority on any member of the Parent Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 

(ii) any value-added or goods and services Tax imposed by any Tax Authority on any member of the Parent Group (if such member
is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 
 (iii) any Tax (other than Tax-Related Losses) resulting from a breach by any member of the Parent Group of any covenant in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement; and 

(iv) any Tax-Related Losses for which Parent is responsible pursuant to
Section 7.5. 
 The amounts for which Parent is liable pursuant to Section 2.5(b)(i),
(ii), and (iii) shall include all accounting, legal, and other professional fees and court costs incurred in connection with the relevant Taxes and in connection with enforcing this indemnity. 

  
 11 

 ARTICLE III 

CLOSING OF TAXABLE YEARS 

3.1 Closing of Taxable Years. For U.S. federal income tax purposes, the Parties acknowledge and agree that the Tax Period of each
member of the SpinCo Group that joined in the filing of the Parent Federal Consolidated Income Tax Return will close as of the end of the Distribution Date. Parent and SpinCo shall take all commercially reasonable actions necessary or appropriate to
close the taxable year of each member of the SpinCo Group for any material U.S. state Tax purposes as of the end of the Distribution Date to the extent permitted by applicable Law; provided, for the avoidance of doubt, that
(a) SpinCo shall not and shall not permit any member of the SpinCo Group to take any action that would change any Tax Period of a non-U.S. member of the SpinCo Group that begins before the end of
the Distribution Date and (b) this Section 3.1(a) shall not be construed to require any member of the Parent Group, or to require Parent to cause any member of the SpinCo Group, to change any of its Tax Periods.
Notwithstanding anything in this Section 3.1 to the contrary, if Parent determines to elect, or cause an election to be made, under Treasury Regulation Section 1.245A-5(e)(3)(i)
to close the taxable year of any non-U.S. member of the SpinCo Group as of the Distribution Date or any prior date on which an extraordinary reduction transaction occurs as defined under Treasury Regulation Section 1.245A-5(e)(2)(i), SpinCo shall, and shall cause any relevant member of the SpinCo Group to, cooperate with Parent in the making of such election and shall take any action reasonably requested by Parent
or that is otherwise necessary to give effect to such election (e.g., entering into a binding agreement as per Treasury Regulation Section 1.245A-5(e)(3)(i)(C)(2)). Moreover, if an election is made
under Treasury Regulation Section 1.245A-5(e)(3)(i) to close the U.S. taxable year of any non-U.S. member of the SpinCo Group and such non-U.S. member’s taxable year under non-U.S. law does not close as a result of the election, Parent shall be responsible for determining the allocation of taxable income
(determined under non-U.S. law), under the principles of Treasury Regulation Section 1.1502-76(b), between the portion of the non-U.S. taxable year that ends with,
and the portion of the non-U.S. taxable year that begins after, the date on which such non-U.S. member’s U.S. taxable year closes as a result of the election under
Treasury Regulation Section 1.245A-5(e)(3)(i), which allocation shall have the effect of determining the amount of non-U.S. Taxes paid or accrued that are allocated
to such periods solely for U.S. Tax purposes. 
 ARTICLE IV 

PREPARATION AND FILING OF TAX RETURNS 

4.1 Responsibility of Preparing Tax Returns. 

(a) Parent’s Responsibility. Parent shall timely prepare any Combined Returns or Parent Separate
Returns, including any Adjustment Request with respect thereto. 
 (b) SpinCo’s Responsibility.
SpinCo shall timely prepare any SpinCo Separate Returns, including any Adjustment Request with respect thereto. 
 (c)
Right to Review Tax Returns. The Tax Return Preparer with respect to any Tax Return shall make such Tax Return (or the relevant portions thereof) and related workpapers available for review by the other Party to the extent
(i) such Tax Return relates to Taxes for which the requesting party is or could reasonably be expected to be liable, (ii) the requesting party would reasonably be expected to be liable in whole or in part for any additional
Taxes owing as a result of material adjustments to the amount of Taxes reported on such Tax Return, (iii) such Tax Return relates to Taxes for which the 

  
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 requesting party would reasonably be expected to have a claim for material Tax Benefits
under this Agreement or (iv) reasonably necessary for the requesting party to confirm compliance with the terms of this Agreement, provided, however, that notwithstanding anything in this Agreement to the contrary, Parent
shall not be required to make any Parent Federal Consolidated Income Tax Return available for review by any member of the SpinCo Group. The Tax Return Preparer shall provide a draft of any such Tax Return to the other Party for its review and
comment at least 30 days prior to the due date for filing of such Tax Return (with extensions), or in the case of any such Tax Return filed on a monthly basis or property Tax Return, at least five Business Days prior to the due date for filing of
such Tax Return (with extensions). Parent and SpinCo shall attempt in good faith to resolve any material disagreement arising out of the review of such Tax Return and, failing such resolution, any material disagreement shall be resolved in
accordance with the provisions of Section 8.4 as promptly as practicable, provided, however, (x) nothing in this Section 4.1(c) or Section 8.4
shall prevent SpinCo or Parent, respectively, from timely filing a Tax Return (with extensions) and (y) if a payment is made to a Tax Authority in connection with the filing of a Tax Return during the pendency of a disagreement described
in this sentence, the Parties shall make any further payments necessary to reflect the ultimate resolution of such disagreement within ten Business Days of such resolution. 

(d) Execution of Returns Prepared by Other Party. In the case of any Tax Return which is required to be prepared and
filed by one Party under this Agreement and which is required by law to be signed by the other Party (or by its authorized representative), the Party which is legally required to sign such Tax Return shall not be required to sign such Tax Return
under this Agreement if there is no reasonable basis for the Tax treatment of any item reported on the Tax Return. 
 4.2
Tax Accounting Practices. 
 (a) General Rule. Except as otherwise provided in
Section 4.2(b), with respect to any Tax Return that SpinCo has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.1, for any Pre-Distribution Tax Period or any Straddle Period (or any Tax Period beginning after the Distribution Date to the extent items reported on such Tax Return could reasonably be expected to affect items reported on
any Tax Return that Parent has the obligation or right to prepare and file for any Pre-Distribution Period or any Straddle Period), such Tax Return shall be prepared in accordance with past practices,
accounting methods, elections or conventions (“Past Practices”) used with respect to the Tax Returns in question (unless there is no reasonable basis for the use of such Past Practices or unless there is no adverse effect to
Parent), and, to the extent any items are not covered by Past Practices (or in the event that there is no reasonable basis for the use of such Past Practices or there is no adverse effect to Parent), in accordance with reasonable Tax accounting
practices selected by SpinCo. Except as otherwise provided in Section 4.2(b), Parent shall prepare any Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and filed, under
Section 4.1, in accordance with reasonable Tax accounting practices selected by Parent. 

  
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 (b) Reporting of Transactions. Except to the extent otherwise
required (i) by a change in applicable law or (ii) as a result of a Final Determination, (x) neither Parent nor SpinCo shall (and shall not permit or cause any member of its respective Group to) take any position
that is inconsistent with the treatment of the Contribution and Distribution, taken together, any Internal Distribution, any Internal Contribution or any Non-U.S. Separation Transaction, in each case, as
having the Intended Tax Treatment and (y) neither Parent nor SpinCo shall (and shall not permit or cause any member of its respective Group to) take any position with respect to any material item of income, deduction, gain, loss, or
credit on a Tax Return, or otherwise treat such item in a manner that is inconsistent with the manner such item is reported on a Tax Return with respect to a Pre-Distribution Tax Period, if such other Party is
or would reasonably be expected to be liable, in whole or in part, for any related increase in Tax liability resulting from a Final Determination (including the claiming of a deduction previously claimed on any such Tax Return or a change in
transfer pricing methodology which is different from what was utilized by Parent and SpinCo prior to the Distribution). 

(c) Combined Returns. SpinCo will elect and join, and will cause its respective Affiliates to elect and join, in
filing the Parent Federal Consolidated Income Tax Return and any Parent State Combined Income Tax Returns, Parent Non-U.S. Combined Income Tax Returns or any other Combined Returns that Parent determines are
required to be filed or that Parent chooses to file pursuant to Section 4.1(a). With respect to any Pre-Distribution Tax Period, SpinCo will elect and join, and will cause its
respective Affiliates to elect and join, in filing consolidated, unitary, combined, or other similar Tax Returns, to the extent each entity is eligible to join in such Tax Returns, if Parent reasonably determines that the filing of such Tax Returns
is consistent with past reporting practices, or, in the absence of applicable past practices, will result in the minimization of the net present value of the aggregate Tax to the entities eligible to join in such Tax Returns. 

4.3 Carrybacks and Claims for Refund. SpinCo hereby agrees that if a Tax Return of a member of the SpinCo Group for a Post-Distribution
Tax Period reflects any Tax Attribute, then no Adjustment Request with respect to any Combined Return shall be filed and the applicable member of the SpinCo Group shall elect to relinquish, waive or otherwise forgo the right to carry back any such
Tax Attribute to a Pre-Distribution Tax Period to the extent permissible under applicable Law. If, notwithstanding the preceding sentence, SpinCo is required to carryback a Tax Attribute under applicable Law,
then SpinCo shall notify Parent in writing that such Tax Attribute must be carried back, which notification shall include a description in reasonable detail of the basis for any Tax Benefit and the amount thereof, including supporting analysis that
the Tax treatment of such Tax Attribute is correct. 
 4.4 Allocation of Tax Attributes. All Tax Attributes determined on a
consolidated or combined basis for Pre-Distribution Tax Periods shall be allocated to the Parent Group and SpinCo Group in accordance with the Code and the Treasury Regulations (and any applicable state,
local, or non-U.S. law or regulation). Parent shall reasonably determine the amounts and proper allocation of such Tax Attributes as of the Distribution Date and shall provide written notice of the calculation
thereof to SpinCo as soon as reasonably practicable after 

  
 14 

 Parent or its designee prepares such calculation. Such determination and allocation shall not be subject to
dispute resolution. Parent and SpinCo agree to compute their Tax liabilities for Post-Distribution Tax Periods consistent with such determination and allocation. Notwithstanding anything in this Agreement to the contrary, Parent shall not be liable
to SpinCo or any member of the SpinCo Group for any failure of (a) any determination under this Section 4.4 to be accurate or sustained under applicable Law, including as the result of any Final Determination or
(b) any Tax Attribute (including tax basis) to be available, in whole or in part, for any Tax Period. The allocations made under this Section 4.4 shall be revised by Parent to reflect any subsequent Final
Determination that affects any Tax Attributes determined on a consolidated or combined basis for Pre-Distribution Tax Periods. 

4.5 Transfer Pricing. If, as the result of any Final Determination relating to intercompany transfer pricing with respect to any item
or items reflected on any Income Tax Return of a member of the Parent Group or the SpinCo Group for a Pre-Distribution Date Tax Period, there is an increase in Income Taxes payable for such Tax Period by any
member of the Parent Group or SpinCo Group, then, upon the reasonable written request of, and at the expense of, the relevant member, the other members, as relevant, shall (and shall cause their respective Affiliates to) amend any Tax Returns of any
member of such Parent Group or SpinCo Group, as applicable, to the extent such amendment would result in a corresponding or correlative reduction in Taxes otherwise payable by a member of such other Group and shall promptly pay over any Tax Benefit
actually realized in cash as a result of such amendment (determined on a “with or without” basis); provided, however, that no Party (or any Affiliates of any Party) shall (a) have any obligation to amend any Tax
Return pursuant to this Section 4.5 to the extent doing so would have an adverse effect on such Party or any of its Affiliates that is material, (b) be obligated to amend any Tax Return unless the amount of such
Tax Benefit realized in cash exceeds $500,000 or (c) be obligated to make a payment otherwise required pursuant to this Section 4.5 to the extent making such payment would place such Party (or any of its
Affiliates) in a less favorable net after-Tax position than such Party (or such Affiliate) would have been in if the relevant Tax Benefit had not been realized. If a Party or one of its Affiliates pays over
any amount pursuant to the preceding sentence and such Tax Benefit is subsequently disallowed or adjusted, the Parties shall promptly make appropriate payments (including in respect of any interest paid or imposed by any Tax Authority) to reflect
such disallowance or adjustment. 
 ARTICLE V 

TAX PAYMENTS 
 5.1
Filing of Tax Returns and Payment of Taxes. Subject to Section 5.2, each Party shall execute and timely file each Tax Return that it is responsible for filing under applicable Law and shall timely pay to the
relevant Taxing Authority any amount shown as due on each such Tax Return. In the case of any adjustment pursuant to a Final Determination with respect to any Tax Return, the Party that is responsible for filing such Tax Return under applicable Law
shall pay to the applicable Tax Authority when due (taking into account any automatic or validly elected extensions, deferral or postponements), any additional Tax due with respect to such Tax Return required to be paid as a result of such
adjustment pursuant to a Final Determination. 

  
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 5.2 Indemnification Payments. 

(a) Claims for Indemnification. Except as provided in Article IX, an Indemnitee shall be entitled to make
a claim for payment with respect to Taxes (or Tax-Related Losses) under this Agreement only after such Indemnitee is required under applicable Tax Law to pay to a Tax Authority a Tax for which the Indemnifying
Party would liable, in whole or in part, under this Agreement (including, for the avoidance of doubt, any administrative or judicial deposit required to be paid by to a Tax Authority or other Governmental Authority to pursue any Tax Contest, to the
extent the Indemnifying Party would be liable under this Agreement for any Tax resulting from such Tax Contest). The Indemnitee shall provide to the Indemnifying Party notice of such claim within 30 Business Days of the first date on which it so
becomes entitled to make such claim (which, for the avoidance of doubt shall not be prior to the due date for payment of such Tax to the applicable Tax Authority, taking into account any automatic or validly elected extensions, deferrals or
postponements). Such notice shall include evidence of payment, a description of such claim and a detailed calculation of the amount claimed. A failure by an Indemnitee to give notice as provided in this Section 5.2(a) shall
not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to the extent that the Indemnifying Party shall have been actually prejudiced by such failure. However, a failure by Indemnitee to give the notice
required by this Agreement shall 
 extend the Indemnifying Party’s time for payment, without application of interest, until conforming
notice is provided. 
 (b) Timing for Indemnification Payments. The Indemnifying Party shall make the claimed payment
to the Indemnitee within 30 Business Days after receiving such notice, unless the Indemnifying Party reasonably disputes its liability for, or the amount of, such payment. 

(c) Payment Recipients. All indemnification payments under this Agreement shall be made by Parent directly to SpinCo or
by SpinCo directly to Parent, as applicable; provided, however, that if the Parties mutually agree with respect to any such indemnification payment, (i) any member of the Parent Group, on the one hand, may make such
indemnification payment to any member of the relevant SpinCo Group, on the other hand and (ii) any member of the SpinCo Group, on the one hand, may make such indemnification payment to any member of the Parent Group, on the other hand.

 ARTICLE VI 
 TAX
BENEFITS 
 6.1 Tax Benefits. 

(a) Refunds Generally. Subject to Section 4.3, if Parent, SpinCo or any of their respective
Affiliates receives any refund of any Taxes for which the other Party is liable hereunder (a “Refund Recipient”), such Refund Recipient shall pay to the other Party the entire amount of the refund (including interest received from
the relevant Tax Authority, but net of any Taxes imposed with respect to such refund and any other 

  
 16 

 reasonable costs) within 30 Business Days of receipt thereof; provided,
however, that the other Party, upon the request of such Refund Recipient, shall repay the amount paid to the other Party (plus any penalties, interest or other charges imposed by the relevant Tax Authority) in the event such Refund Recipient
is required by applicable law to repay such refund. In the event a Party would be a Refund Recipient but for the fact it elected to apply a refund to which it would otherwise have been entitled against a Tax liability arising in a subsequent Tax
Period, then such Party shall be treated as a Refund Recipient and the economic benefit of so applying the refund shall be treated as a refund for purposes of this Section 6.1. 

(b) Adjustment Tax Benefits. If a member of the SpinCo Group actually realizes in cash any Tax Benefit exceeding
$500,000 as a result of an adjustment pursuant to a Final Determination that increases Taxes for which a member of the Parent Group is liable hereunder (or reduces any Tax Attribute of a member of the Parent Group) (a “Parent Final
Determination Adjustment”) and such Tax Benefit would not have arisen but for such adjustment (determined on a “with and without” basis), or if a member of the Parent Group actually realizes in cash any Tax Benefit exceeding
$500,000 as a result of an adjustment pursuant to a Final Determination that increases Taxes for which a member of the SpinCo Group is liable hereunder (or reduces any Tax Attribute of a member of the SpinCo Group) and such Tax Benefit would not
have arisen but for such adjustment (determined on a “with and without” basis), SpinCo or Parent, as the case may be, shall make a payment to either Parent or SpinCo, as appropriate, within 30 days following such actual realization of the
Tax Benefit, in an amount equal to such Tax Benefit actually realized in cash exceeding $500,000 , provided, however, that no Party (or any Affiliates of any Party) shall be obligated to make a payment otherwise required pursuant to
this Section 6.1(b) to the extent making such payment would place such Party (or any of its Affiliates) in a less favorable net after-Tax position than such Party (or such Affiliate)
would have been in if the relevant Tax Benefit had not been realized. If a Party or one of its Affiliates pays over any amount pursuant to the preceding sentence and such Tax Benefit is subsequently disallowed or adjusted, the Parties shall promptly
make appropriate payments (including in respect of any interest paid or imposed by any Tax Authority) to reflect such disallowance or adjustment. In the case of a Parent Final Determination Adjustment, then, upon the written request of and at the
expense of Parent, SpinCo shall (and, if applicable, shall cause the relevant member of the SpinCo Group to) amend any Tax Return thereof to the extent such amendment would result in a corresponding or correlative Tax Benefit (which shall include
any step-up in tax basis). 
 (c) Timing for Tax Benefit Payments. No later
than 30 days after a Tax Benefit described in Section 6.1(b) is actually realized in cash by a member of the Parent Group or a member of the SpinCo Group, Parent (if a member of the Parent Group actually realizes such Tax
Benefit) or SpinCo (if a member of the SpinCo Group actually realizes such Tax Benefit) shall provide the other Party with a written calculation of the amount payable to such other Party by Parent or SpinCo pursuant to this
Section 6.1. In the event that Parent or SpinCo disagrees with any such calculation described in this Section 6.1(c), Parent or SpinCo shall so notify the other Party in writing within 30 days of
receiving the written calculation set forth above in this Section 6.1(c). Parent and SpinCo shall endeavor in good faith to resolve such disagreement, and, failing that, the amount payable under this
Section 6.1 shall be determined in accordance with the disagreement resolution provisions of Section 8.4 as promptly as practicable. 

  
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 (d) SpinCo Carryback Refunds. SpinCo shall be entitled to any refund
that is attributable to, and would not have arisen but for, a carryback by SpinCo pursuant to Section 4.3, provided, however, that SpinCo shall indemnify and hold the members of the Parent Group harmless from
and against any and all collateral Tax consequences resulting from or caused by any such carryback, including the loss or postponement of any benefit from the use of Tax Attributes generated by a member of the Parent Group or an Affiliate thereof if
(i) such Tax Attributes expire unutilized, but would have been utilized but for such carryback, or (ii) the use of such Tax Attributes is postponed to a later Tax Period than the Tax Period in which such Tax Attributes would
have been utilized but for such carryback. Any such payment of such refund made by Parent to SpinCo pursuant to this Section 6.1(d) shall be recalculated in light of any Final Determination (or any other facts that may
arise or come to light after such payment is made, such as a carryback of a Parent Group Tax Attribute to a Tax Period in respect of which such refund is received) that would affect the amount to which SpinCo is entitled, and an appropriate
adjusting payment shall be made by SpinCo to Parent such that the aggregate amounts paid pursuant to this Section 6.1(d) equals such recalculated amount. 

ARTICLE VII 
 INTENDED
TAX TREATMENT 
 7.1 Representations. 

(a) Each of SpinCo and Parent hereby represents and warrants that (i) it has reviewed the Representation Letters
and (ii) subject to any qualifications therein, all information, representations and covenants contained in such Representation Letters that concern or relate to such Party or any member of its Group are true, correct and complete. 

(b) SpinCo hereby represents and warrants that it has no plan or intention to take any action or to fail to take any action (or
to cause or permit any member of the SpinCo Group to take or fail to take any action), in each case, from and after the Distribution Date, that could reasonably be expected to cause any representation or statement made in this Agreement, the
Separation and Distribution Agreement, the Representation Letters, the Tax Opinions/Rulings or any of the Ancillary Agreements to be untrue. 

(c) SpinCo hereby represents and warrants that, during the period beginning two years before the date of the consummation of
the Internal Distributions and ending on the Distribution Date, there was no “agreement,” “understanding,” “arrangement,” “substantial negotiations” or “discussions” (as such terms are defined in
Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the SpinCo Group or by any other person or persons with the implicit or explicit permission of one or more of such officers or directors
regarding an acquisition, directly 

  
 18 

 or indirectly, of all or a significant portion of SpinCo’s Capital Stock (or any
predecessor); provided, however, that no representation is made regarding any “agreement,” “understanding,” “arrangement,” “substantial negotiations” or “discussions” (as such terms are
defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of Parent. 
 7.2
Restrictions on SpinCo. 
 (a) SpinCo agrees that it will not take or fail to take, or permit any member of the SpinCo
Group to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in this Agreement, the Separation and Distribution Agreement, any of
the Ancillary Agreements, the Representation Letters or the Tax Opinions/Rulings. SpinCo agrees that it will not take or fail to take, or permit any member of the SpinCo Group to take or fail to take, any action that jeopardizes or is reasonably
likely to jeopardize the Intended Tax Treatment. 
 (b) During the two-year period
following the Distribution Date, (i) SpinCo, directly or indirectly through one or more members of SpinCo’s Separate Affiliated Group, shall continue the Active Trade or Business and (ii) SpinCo shall not engage in any
transaction that would result in it ceasing to be engaged in such Active Trade or Business for purposes of Section 355(b)(2) of the Code. SpinCo further agrees that, from the date hereof until the
two-year period following the date of the consummation of the Internal Distributions, SpinCo will cause each member of the SpinCo Group that was a “controlled corporation” (within the meaning of
Section 355(b) of the Code) in any Internal Distribution (and such member’s Separate Affiliated Group) (x) to directly or indirectly through one or more members of SpinCo’s Separate Affiliated Group continue the active
trade or business used by such member to satisfy Section 355(b) of the Code with respect to the relevant Internal Distribution (as described in the Tax Opinions/Ruling), as conducted immediately prior to the relevant Internal Distribution and
(y) not engage in any transaction that would result in such member ceasing to be engaged in such active trade or business for purposes of Section 355(b)(2) of the Code. 

(c) SpinCo agrees that, from the date hereof until the first day after the two-year
anniversary of the Distribution Date, it shall not (and shall not cause or permit any of its Affiliates to), in a single transaction or series of transactions: 

(i) enter into any Proposed Acquisition Transaction or, to the extent SpinCo has the right to prohibit any Proposed Acquisition
Transaction, permit any Proposed Acquisition Transaction to occur (whether by (1) redeeming rights under a shareholder rights plan, (2) finding a tender offer to be a “permitted offer” under any such plan or
otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction, or (3) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or any
similar corporate statute, any “fair price” or other provision of SpinCo’s charter or bylaws or otherwise); 

  
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 (ii) liquidate or partially liquidate, merge or consolidate with any other
Person (whether that other Person or such Affiliate is the survivor); 
 (iii) subject to Schedule 7.2(c)(iii), sell
or transfer (other than sales or transfers of inventory in the ordinary course of business) all or substantially all of the assets that were transferred to SpinCo as part of the Separation or sell or transfer (or cause or permit to be transferred)
30% or more of the gross assets of the Active Trade or Business or 30% or more of the consolidated gross assets of SpinCo and its Affiliates; 

(iv) redeem or otherwise repurchase (directly or through an Affiliate) any of SpinCo’s Capital Stock, or rights to acquire
SpinCo’s Capital Stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48); 

(v) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a
stockholder vote or otherwise, affecting the 
 voting rights of SpinCo’s Capital Stock (including through the conversion of one class
of SpinCo’s Capital Stock into another class of SpinCo’s Capital Stock); 
 (vi) take any other action or actions
(including any action or transaction that would be reasonably likely to be inconsistent with any representation made in the Representation Letters, any Ruling Request or any Tax Opinions/Rulings) that, in the aggregate (and taking into account any
other transactions described in this subparagraph (c)) would be reasonably likely to have the effect of causing or permitting one or more persons (whether or not acting in concert) to acquire directly or indirectly Capital Stock representing a
Fifty-Percent or Greater Interest in SpinCo or otherwise jeopardize the Intended Tax Treatment; or 
 (vii) cause or permit
any member of the SpinCo Group that was a “controlled corporation” (within the meaning of Section 355(b) of the Code) in any Internal Distribution to take any action or enter into any transaction described in the preceding clauses
(ii), (iii), (iv), (v) or (vi) (substituting references therein to “SpinCo”, the “Separation,” “Active Trade or Business” and “SpinCo’s Capital Stock” with references to the relevant corporation, the
transfer of assets to such corporation pursuant to the Transactions, the active conduct of the trade or business relied upon with respect to such Internal Distribution (as described in the relevant Representation Letters, and/or relevant Tax
Opinion/Ruling) for purposes of Section 355(b)(2) of the Code, and the Capital Stock of such corporation), 
 unless, in each case,
prior to taking any such action set forth in the foregoing clauses (i) through (vii), (A) SpinCo shall have requested that Parent obtain a Ruling in accordance with Section 7.4 of this Agreement to the effect
that such transaction will not negatively affect the applicable Intended Tax Treatment and Parent shall have received such a Ruling in form and substance reasonably satisfactory to Parent in its discretion, which discretion shall be exercised in
good faith solely to preserve the Intended Tax Treatment (and, in determining whether a Ruling is satisfactory, Parent may consider, among other factors, the appropriateness of any underlying 

  
 20 

 
assumptions and management’s representations made in connection with such Ruling), (B) SpinCo shall provide Parent with a Post-Distribution Tax Opinion in form and substance
reasonably satisfactory to Parent in its discretion, which discretion shall be exercised in good faith solely to preserve the Intended Tax Treatment (and in determining whether a Post-Distribution Tax Opinion is satisfactory, Parent may consider,
among other factors, the appropriateness of any underlying assumptions and management’s representations made in connection with such Post-Distribution Tax Opinion) or (C) Parent shall have waived the requirement to obtain such
Ruling or Post-Distribution Tax Opinion. 
 (d) If SpinCo proposes to enter into any Section 7.2(d) Acquisition
Transaction or, to the extent SpinCo has the right to prohibit (or cause to be prohibited) any Section 7.2(d) Acquisition Transaction, SpinCo proposes to permit any Section 7.2(d) Acquisition Transaction to occur, in each case, during the
period from the date hereof until the first day after the two-year anniversary of the Distribution Date, SpinCo shall provide Parent, no later than 10 Business Days following the signing of any written
agreement with respect to the Section 7.2(d) Acquisition Transaction, with a written description of such transaction (including the type and amount of SpinCo’s Capital Stock to be issued in such transaction) and a certificate of the Chief
Financial Officer of SpinCo to the effect that the Section 7.2(d) Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the requirements of Section 7.2(c) apply (a
“CFO Certificate”). 
 7.3 Restrictions on Parent. Parent agrees that it will not take or fail to take, or permit
any member of the Parent Group to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in this Agreement, the Separation and
Distribution Agreement, any of the Ancillary Agreements, the Representation Letters or the Tax Opinions/Rulings. Parent agrees that it will not take or fail to take, or permit any member of the Parent Group to take or fail to take, any action that
jeopardizes or is reasonably likely to jeopardize the Intended Tax Treatment, provided, however, that this Section 7.3 shall not be construed as obligating Parent to consummate the Distribution and shall not be construed as
preventing Parent from terminating the Separation and Distribution Agreement pursuant to the terms of the Separation and Distribution Agreement. 

7.4 Procedures Regarding Opinions and Rulings. 

(a) If SpinCo notifies Parent that it desires to take one of the actions described in clauses (i) through (vii) of
Section 7.2(c) (a “Notified Action”), Parent and SpinCo shall reasonably cooperate to attempt to obtain the Ruling or Post-Distribution Tax Opinion referred to in Section 7.2(c),
unless Parent shall have waived the requirement to obtain such Ruling or Post-Distribution Tax Opinion. SpinCo shall reimburse Parent for all reasonable costs and expenses incurred by the Parent Group in obtaining any such Ruling or
Post-Distribution Tax Opinion within 10 Business Days after receiving an invoice from Parent therefor. 

  
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 (b) Parent agrees that at the reasonable request of SpinCo pursuant to
Section 7.2(c), Parent shall cooperate with SpinCo and use its reasonable efforts to seek to obtain or assist in obtaining, as expeditiously as reasonably practicable, a Ruling from the IRS or other applicable Tax Authority
or a Post-Distribution Tax Opinion for the purpose of permitting SpinCo to take the Notified Action. Further, in no event shall Parent be required to file any Ruling Request under this Section 7.4(b) unless SpinCo
represents that (i) it has read the Ruling Request, and (ii) all information and representations, if any, relating to any member of the SpinCo Group, contained in the Ruling Request documents are (subject to any
qualifications therein) true, correct and complete. SpinCo shall reimburse Parent for all reasonable costs and expenses incurred by the Parent Group in obtaining a Ruling or Post-Distribution Tax Opinion requested by SpinCo within 10 Business Days
after receiving an invoice from Parent therefor. 
 (c) Parent shall have the right to obtain a Ruling or a Post-Distribution
Tax Opinion at any time in its sole and absolute discretion. If Parent determines to obtain a Ruling or a Post-Distribution Tax Opinion, SpinCo shall (and shall cause each Affiliate of SpinCo to) cooperate with Parent and take any and all actions
reasonably requested by Parent in connection with obtaining the Ruling or Post-Distribution Tax Opinion (including by making any representation or covenant or providing any materials or information requested by the IRS or a Tax Advisor);
provided that SpinCo shall not be required to make (or cause any Affiliate of SpinCo to make) any representation that is untrue or to provide (or cause any Affiliate of SpinCo to provide) any covenant as to future matters or events over which
it has no control. Parent and SpinCo shall each bear its own costs and expenses in obtaining a Ruling or a Post-Distribution Tax Opinion requested by Parent. 

(d) SpinCo hereby agrees that Parent shall have sole and exclusive control over the process of obtaining any Ruling described
in Section 7.2, and that only Parent shall apply for a Ruling. In connection with obtaining a Ruling pursuant to Section 7.4(b), (i) Parent shall keep SpinCo informed in a timely manner of
all material actions taken or proposed to be taken by Parent in connection therewith; (ii) Parent shall (A) reasonably in advance of the submission of any Ruling Request documents provide SpinCo with a draft copy thereof,
(B) reasonably consider SpinCo’s comments on such draft copy and (C) provide SpinCo with a final copy; and (iii) Parent shall provide SpinCo with notice reasonably in advance of, and SpinCo shall have the
right to attend, any formally scheduled meetings with the IRS (subject to the approval of the IRS) that relate to such Ruling. Neither SpinCo nor any Affiliates of SpinCo shall seek any guidance from the IRS or any other Tax Authority (whether
written, verbal or otherwise) at any time concerning the tax consequences of the Transactions. 

  
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 7.5 Liability for Tax-Related Losses. 

(a) Notwithstanding anything in this Agreement or the Separation and Distribution Agreement to the contrary, subject to
Section 7.5(c), SpinCo shall be responsible for, and shall indemnify and hold harmless Parent and each of its Affiliates and each of their respective officers, directors and employees from and against, 100% of any Tax-Related Losses that are attributable to or result from any one or more of the following: (i) the acquisition (other than pursuant to the Transactions) of all or a portion of the Capital Stock and/or
assets of SpinCo and/or its subsidiaries by any means whatsoever by any Person, (ii) any “agreement,” “understanding,” “arrangement,” “substantial negotiations” or “discussions” (as such
terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the SpinCo Group or by any person or persons with the implicit or explicit
permission of one or more of such officers or directors with respect to transactions or events (including stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of
such transactions or events) that cause the Contribution and Distribution or any Internal Distributions to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly SpinCo’s Capital Stock or any member of
the SpinCo Group that was a “controlled corporation” (within the meaning of Section 355(b) of the Code) in any Internal Distribution, in each case representing a Fifty-Percent or Greater Interest therein, (iii) any action
or failure to act by SpinCo or a member of the SpinCo Group after the Contribution and Distribution (including any amendment to SpinCo’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or
otherwise) affecting the voting rights of SpinCo’s Capital Stock (including through the conversion of one class of SpinCo’s Capital Stock into another class of SpinCo’s Capital Stock), (iv) any act or failure to act by SpinCo
or any Affiliate of SpinCo described in Section 7.2 (regardless of whether such act or failure to act is covered by a Ruling, Post-Distribution Tax Opinion or waiver described in clause (A), (B) or (C) of
Section 7.2(c)) or (v) any breach by SpinCo of its agreement and representation set forth in Section 7.1. 

(b) Notwithstanding anything in this Agreement or the Separation and Distribution Agreement to the contrary, subject to
Section 7.5(c), Parent shall be responsible for, and shall indemnify and hold harmless SpinCo and its Affiliates and each of their respective officers, directors and employees from and against, 100% of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (i) the acquisition (other than pursuant to the Transactions) of all or a portion of the Capital Stock and/or
assets of Parent and/or its subsidiaries by any means whatsoever by any Person, (ii) any “agreement,” “understanding,” “arrangement,” “substantial negotiations” or “discussions” (as such
terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the Parent Group or by any person or persons with the implicit or explicit
permission of one or more of such officers or directors with respect to transactions or events (including stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of
such transactions or events) that cause the Contribution and Distribution or any Internal Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly Capital Stock of Parent or any member of the
Parent Group that was a “distributing corporation” or a “controlled corporation” (within the meaning of Section 355(b) of the Code) in any Internal Distribution representing a Fifty-Percent or Greater Interest therein or
(iii) any act or failure to act by Parent or any Affiliate of Parent described in Section 7.3. 

  
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 (c) To the extent that any
Tax-Related Loss is subject to indemnity under both Section 7.5(a) and Section 7.5(b) responsibility for such
Tax-Related Loss shall be shared by Parent and SpinCo, as applicable, according to relative fault. The relative fault of Parent and SpinCo shall be determined by reference to, among other things, the
Parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the applicable act, failure to act, statement or omission that is the basis for the Tax-Related Loss (the
“Liability Event”), and whether the Liability Event occurred because of one Party’s reasonable reliance on the other. 

(d) Notwithstanding anything in Sections 7.5(b) or 7.5(c) to the contrary, SpinCo shall be responsible
for, and shall indemnify and hold harmless Parent and its Affiliates and each of their respective officers, directors and employees from and against, 100% of (i) any Tax-Related Losses resulting
from the application of Section 355(e) or Section 355(f) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Parent or any member of the Parent Group) and (ii) any other Tax-Related Losses, in each case resulting (for the absence of doubt, in whole or in part) from an acquisition after the Contribution and Distribution of any Capital Stock or assets of SpinCo or any Affiliate of
SpinCo by any means whatsoever by any Person or any action or failure to act by SpinCo affecting the voting rights of SpinCo’s Capital Stock or the Capital Stock of any Affiliate of SpinCo. 

7.6 [Section 336(e) Election. If Parent determines, in its sole discretion, that a protective election under Section 336(e)
of the Code (a “Section 336(e) Election”) shall be made with respect to the Distribution (or any Internal Distribution), SpinCo shall (and shall cause any relevant member of the SpinCo Group to) join with Parent
(or any relevant member of the Parent Group) in the making of such election and shall take any action reasonably requested by Parent or that is otherwise necessary to give effect to such election (including making any other related election). If a
Section 336(e) Election is made with respect to the Distribution (or any Internal Distribution), then this Agreement shall be amended in such a manner as is determined by Parent in good faith to take into account such Section 336(e)
Election, including by requiring that, in the event (a) the Contribution and the Distribution (or any Internal Distribution) fails to have Tax-Free Status and (b) a Party that does not
have exclusive responsibility pursuant to this Agreement for Tax-Related Losses arising from such failure actually realizes in cash a Tax Benefit from the step-up in Tax
basis resulting from the Section 336(e) Election, such Party shall pay over to the Party that has exclusive responsibility pursuant to this Agreement for such Tax-Related Losses any such Tax Benefits
realized (provided that, if such Tax-Related Losses are Taxes for which more than one Party is liable under Section 7.5(c), the Party that actually realizes in cash the Tax
Benefit resulting from the relevant Section 336(e) Election shall pay over to each the other Party the percentage of any such Tax Benefits realized that corresponds to each such Party’s percentage share of such Taxes).] 

  
 24 

 ARTICLE VIII 

PROCEDURAL MATTERS 
 8.1
Cooperation. 
 (a) Each Party shall cooperate with reasonable requests from the other Party in matters covered by
this Agreement, including in connection with the preparation and filing of Tax Returns, determining the liability for and amount of any Taxes or the right to and amount of any refunds of Taxes, the determination of the proper financial accounting
treatment of Tax Items, the conduct and settlement of Tax Contests, mitigating or reducing the amount of losses (or potential losses) arising from potential indemnity claims hereunder, and waivers of legal requirements under this Agreement, in each
case without prejudice to any Party’s rights under this Agreement. Such cooperation shall include, but is not limited to: 

(i) retaining until the expiration of the relevant statute of limitations (including extensions) plus one year, any and all
records, documents, accounting data, computer data, actuarial data, investment data and other information “Records”) necessary for the preparation, filing, review, audit or defense of all Tax Returns relevant to an obligation, right
or liability of either Party under this Agreement; 
 (ii) providing the other Party reasonable access to Records (in the
format reasonably determined by the other Party) and to its personnel, including employees and agents of the Parties or their respective affiliates (ensuring their cooperation and reasonable assistance), and premises during normal business hours to
the extent relevant to an obligation, right or liability of the other Party under this Agreement or otherwise reasonably required by the other Party to complete Tax Returns, comply with audit requirements, participate in any audit or examination of
Tax Returns or to compute the amount of any payment contemplated by this Agreement; and 
 (iii) after the period of time
described in Section 8.1(a)(i) has expired, notifying the other Party prior to disposing of any Records and affording the other Party the opportunity to take possession or make copies of such Records at its discretion and
at its own cost and expense. 
 (b) Additionally, each Party shall (and shall cause its Affiliates to) provide to the other
Party with such cooperation, information and assistance reasonably requested by the other Party in connection with: 
 (i)
preparing and filing any Tax Return described in Section 4.1(a) or (b); 
 (ii) determining
the liability for and amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes; 

(iii) timely responding to any Tax Contest; 

  
 25 

 (iv) obtaining an opinion from an outside Tax Advisor with respect to
matters described in (i), (ii) and (iii) above; and 
 (v) timely complying with auditor requests with respect to
matters (i), (ii) and (iii) above. 
 Any such request shall be fulfilled as soon as practicable after receipt of a written notice
describing the information required and, with respect to any request pursuant to Section 8.1(b)(i), no later than 60 days prior to the due date for filing such Tax Return (with extensions), or in the case of any such Tax
Return filed on a monthly basis or property Tax Return, at least 10 Business Days prior to the due date for such Tax Return. 

(c) Any information or documents provided under this Section 8.1 shall be kept confidential by the Party or Parties
receiving the information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any Tax Contest. Notwithstanding any other provision of this Agreement, the Separation and Distribution
Agreement or any other Ancillary Agreement, in no event shall either Party be required to provide the other Party or any of its respective Affiliates or their respective representatives access to or copies of any information or documents if such
action could reasonably be expected to be commercially detrimental, violate any law or obligation to a third party or result in the waiver of any privilege under applicable Law, provided that each of the Parties shall use its reasonable best
efforts to provide such information or documents in accordance with its obligations under Sections 8.1(a) and (b) in a manner that avoids any such harm or consequence. 

8.2 Interest. Any payments required pursuant to this Agreement that are not made within the time period specified in this
Agreement shall bear interest from the end of that period at the Prime Rate plus two percent, compounded semiannually, from the due date of the payment to the date paid. To the extent interest required to be paid under this
Section 8.2 duplicates interest required to be paid under any other provision of this Agreement, interest shall be computed at the higher of the interest rate provided under this Section 8.2 or the
interest rate provided under such other provision. 
 8.3 Treatment of Payments; Tax Gross Up. 

(a) Except to the extent otherwise required by a change in Tax treatment under the Code or other applicable Tax law, SpinCo
and Parent agree that, for all Income Tax purposes, (i) any indemnity payment payable pursuant to this Agreement or by the Separation and Distribution Agreement or the Employee Matters Agreement (not including, for the avoidance of
doubt, any payment to fund the Parent Non-Qualified Liabilities) shall be treated as if it occurred immediately prior to the Distribution and shall be treated as being distributed or contributed, as
appropriate, pursuant to the Plan of Reorganization that includes the Distribution and (ii) any payment of interest or state Income Taxes by or to a Tax Authority, as taxable or deductible, as the case may be, to the Party entitled under
this Agreement to retain such payment or required under this Agreement to make such payment. The Parties shall cooperate in good faith (including, 

  
 26 

 
where relevant, by using commercially reasonable efforts to establish local payment arrangements between each Party’s Subsidiaries) to minimize or eliminate, to the extent permissible under
applicable law, any Tax that would otherwise be imposed with respect to any payment required by this Agreement or by the Separation and Distribution Agreement (or maximize the ability to obtain a credit for, or refund of, any such Tax). 

(b) If, notwithstanding the manner in which payments described in Section 8.3(a) were reported, there
is an adjustment to the Tax liability of a Party as a result of its receipt or payment pursuant to this Agreement or the Separation or Distribution Agreement, such payment shall be appropriately adjusted so that the amount of such payment, reduced
by the amount of all Income Taxes payable with respect to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes), shall equal the amount of the payment which the Party receiving
such payment would otherwise be entitled to receive. 
 (c) Notwithstanding anything in this Agreement to the contrary, to
the extent a Party makes a payment of interest to another Party under this Agreement with respect to the period from (i) the date that the payor was required to make a payment to the payee to (ii) the date that the payor
actually made such payment, the interest payment shall be treated as interest expense to the payor (deductible to the extent provided by law) and as interest income by the payee (includible in income to the extent provided by law). The amount of the
payment shall not be adjusted to take into account any associated Tax Benefit to the payor or increase in Tax to the payee. 
 8.4
Dispute Resolution. In the event of any dispute between the Parties as to any matter covered by this Agreement, including any amendments thereto, the parties shall appoint a nationally recognized independent public accounting firm (the
“Accounting Firm”) to resolve such dispute. In this regard, the Accounting Firm shall make determinations with respect to the disputed items based solely on representations made by Parent and SpinCo and their respective
representatives, and not by independent review, and shall function only as an expert and not as an arbitrator and shall be required to make a determination in favor of one Party only. The Parties shall require the Accounting Firm to resolve all
disputes no later than 30 days after the submission of such dispute to the Accounting Firm and agree that all decisions by the Accounting Firm with respect thereto shall be final and conclusive and binding on the Parties. The Accounting Firm shall
resolve all disputes in a manner consistent with this Agreement. The Parties shall require the Accounting Firm to render all determinations in writing and to set forth, in reasonable detail, the basis for such determination. The fees and expenses of
the Accounting Firm shall be borne equally by the Parties. 

  
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 ARTICLE IX 

TAX CONTESTS 
 9.1 Tax
Contests. 
 (a) Parent or SpinCo, as applicable, shall, within 10 Business Days of becoming aware of any Tax Contest
(including a Transaction Tax Contest) that could reasonably be expected to cause the other Party to have an indemnification obligation under this Agreement, notify the other Party of such Tax Contest and thereafter promptly forward or make available
to the Indemnifying Party copies of notices and communications relating to the relevant portions of such Tax Contest. Any such notice shall contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail.
A failure by an Indemnitee to give notice as provided in this Section 9.1(a) (or to promptly forward any such notices or communications) shall not relieve the Indemnifying Party’s indemnification obligations under this
Agreement, except to the extent that the Indemnifying Party shall have been actually prejudiced by such failure; provided, however, that such Indemnitee shall make all commercially reasonable efforts to mitigate such failure, including
by seeking an extension of any relevant time limitations or deadlines for response. 
 (b) Parent shall, subject to
Section 9.1(d), have the exclusive right to control the conduct and settlement of any Tax Contest (i) that relates solely or primarily to Taxes that are the responsibility of Parent pursuant to Article II
or (ii) at Parent’s election, that may reasonably be expected to materially affect amounts for which both Parent and SpinCo are liable under Article II, provided that SpinCo shall have the right, at its sole expense,
to participate in and advise on all aspects of any Tax Contest Parent elects to control under clause (ii) above, but only in connection with matters relating to potential material liability of a member of the SpinCo Group. If the conduct or
settlement of any portion or aspect of such Tax Contest could reasonably be expected to cause SpinCo to have an indemnification obligation or a Tax Benefit entitlement under this Agreement, then Parent shall not accept or enter into any settlement
without the consent of SpinCo, which shall not be unreasonably withheld or delayed. If, as result of a Tax Contest which Parent elects to control described in clause (ii) above, SpinCo could reasonably be expected to have an indemnification
obligation or Tax Benefit entitlement under this Agreement, (1) Parent shall consult with SpinCo reasonably in advance of taking any material proposed course of action, (2) Parent shall consult with SpinCo and offer SpinCo a
reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Consent, (3) Parent shall conduct such Tax Contest with reasonable diligence and in good faith as if it were the
only party in interest in connection with such Tax Contest, (4) SpinCo shall be entitled to participate in all formally scheduled meetings with any Tax Authority relating to such Tax Contest and receive copies of any written materials
received by Parent from the relevant Tax Authority and (5) Parent shall keep SpinCo promptly informed of all material developments in relation to the Tax Contest. Parent shall notify SpinCo within 10 Business Days of becoming aware of a
Tax Contest under Section 9.1(b)(ii) if Parent does not elect to control such Tax Contest; provided that Parent shall have the right to assume control of any such Tax Contest and to settle, compromise and/or concede
such Tax Contest, if Parent reasonably determines that (x) as a result of subsequent developments the expected Tax liability exposure of any member of the Parent Group resulting from such Tax Contest has materially increased;
(y) SpinCo has failed to adequately and properly manage the conduct of such Tax Contest or (z) an event has occurred during such Tax Contest that could adversely affect Parent in any material respect. 

  
 28 

 (c) SpinCo shall, subject to Section 9.1(d), have
the exclusive right to control the conduct and settlement of any Tax Contest (i) that relates solely to Taxes that are the responsibility of SpinCo pursuant to Article II, (ii) that could not reasonably be expected to
materially affect amounts for which Parent is liable under Article II, or (iii) that Parent does not elect to control under Section 9.1(b)(ii); provided that Parent shall have the right, at its
sole expense, to participate in and advise on all aspects of such Tax Contests and may coordinate discussions with the relevant Taxing Authority with respect thereto, and, with respect to any Tax Contest that could reasonably be expected to cause
Parent to have an indemnification obligation or a Tax Benefit entitlement under this Agreement, SpinCo shall not accept or enter into any settlement without the consent of Parent, which shall not be unreasonably withheld or delayed. 

(d) Notwithstanding anything in this Section 9.1 to the contrary, with respect to any Transaction Tax
Contest as a result of which SpinCo could reasonably be expected to become liable for any Tax or Tax-Related Losses which Parent has the right to administer and control pursuant to
Section 9.1(b), (i) Parent shall solely control the resolution of such Tax Contest, (ii) Parent shall consult with SpinCo reasonably in advance of taking any material proposed course of action,
(iii) Parent shall consult with SpinCo and offer SpinCo a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Contest, (iv) Parent shall conduct such Tax
Contest with reasonable diligence and in good faith as if it were the only party in interest in connection with such Tax Contest and (v) Parent shall provide SpinCo with any written materials relating to such Tax Contest received from
the relevant Tax Authority. 
 (e) With respect to any Transaction Tax Contest as a result of Parent could reasonably be
expected to become liable for any Tax or Tax-Related Losses which SpinCo has the right to administer and control pursuant to Section 9.1(c), (i) SpinCo shall consult with
Parent reasonably in advance of taking any material proposed course of action, (ii) SpinCo shall consult with Parent and offer Parent a reasonable opportunity to comment before submitting any written materials prepared or furnished in
connection with such Tax Contest, (iii) SpinCo shall conduct such Tax Contest with reasonable diligence and in good faith as if it were the only party in interest in connection with such Tax Contest, (iv) Parent shall be
entitled to participate in such Tax Contest and receive copies shall of any written materials relating to such Tax Contest received from the relevant Tax Authority and (v) SpinCo shall not settle, compromise or abandon any such Tax
Contest without obtaining the prior written consent of Parent, which consent shall not be unreasonably withheld, provided that Parent shall have right to assume control of such Tax Contest as described in
Section 9.1(b). 
 (f) SpinCo shall (and shall cause each member of the SpinCo Group to) execute
and deliver to Parent (or such member of the Parent Group as Parent shall designate) any power of attorney or similar document reasonably requested by Parent (or such designee) in connection with any Tax Contest controlled by Parent described in
this Section 9.1. Parent shall (and shall cause each member of the Parent Group to) execute and deliver to SpinCo (or such member of the SpinCo Group as SpinCo shall designate) any power of attorney or similar document
reasonably requested by SpinCo (or such designee) in connection with any Tax Contest controlled by SpinCo described in this Section 9.1. 

  
 29 

 9.2 Expenses and Applicability. Subject to
Section 7.5, after the Contribution and Distribution, each Party shall bear its own expenses in the course of any Tax Contest. 

9.3 Scheduled Tax Contests. Notwithstanding anything in Sections 5.2, 9.1 and 9.2 to the contrary, all Tax
Contests relating to the matter described in Schedule 9.3 shall be subject to the procedures described in Schedule 9.3. 

ARTICLE X 
 MISCELLANEOUS

 10.1 Effective Date; Termination of Prior Intercompany Tax Allocation Agreements . This Agreement shall be effective as of the Effective Time. As of the Effective Time, (i) all prior intercompany Tax allocation agreements or arrangements solely between or among Parent
and/or any of its Subsidiaries, on the one hand, and SpinCo and/or any of its Subsidiaries, on the other hand, shall be terminated, and (ii) amounts due under such agreements as of the date on which the Effective Time occurs shall be
settled. Upon such termination and settlement, no further payments by or to Parent or any of its Subsidiaries or by or to SpinCo or any of its Subsidiaries, with respect to such agreements shall be made, and all other rights and obligations
resulting from such agreements between the Parties and their Affiliates shall cease at such time. Any payments pursuant to such agreements shall be disregarded for purposes of computing amounts due under this Agreement; provided that, to the
extent appropriate, payments made pursuant to such agreements shall be credited to Parent or SpinCo, respectively, in computing their respective obligations pursuant to this Agreement, in the event that such payments relate to a Tax liability that
is the subject matter of this Agreement for a Tax Period that is the subject matter of this Agreement. 
 10.2 Coordination of
Agreements. The Parties agree that, in the event of a conflict between the terms of this Agreement and the Separation and Distribution Agreement or any of the Ancillary Agreements, with respect to the matters addressed herein, the terms
of this Agreement shall govern (it being understood that the terms pursuant to which any transition services related to Tax matters shall be provided under the Transition Services Agreement shall be governed by the Transition Services Agreement).

 10.3 Counterparts; Entire Agreement; Corporate Power. 

(a) 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 counterparts have been signed by each of the Parties hereto and delivered to the other Party hereto. 

(b) This Agreement and the Exhibits, Schedules and appendices hereto contain the entire agreement between the Parties with
respect to the subject matter hereof, and supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings
between the Parties other than those set forth or referred to herein or therein. 

  
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 (c) Parent represents on behalf of itself and each other member of the
Parent Group, and SpinCo represents on behalf of itself and each other member of the SpinCo Group, as follows: 
 (i) each
such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement; and 

(ii) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable
in accordance with the terms hereof. 
 (d) Each Party acknowledges that it and each other Party is executing this Agreement
by facsimile, stamp or mechanical signature, and that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp, electronic or mechanical signature) by email in portable document format (PDF) shall
be effective as delivery of such executed counterpart of this Agreement. Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier or by email in
portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it shall not assert that any such signature or delivery is not adequate to bind such Party to the same extent as if it were
signed manually and delivered in person and agrees that, at the reasonable request of the other Party at any time, it shall as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to be as of the date
of the initial date thereof) and delivered in person, by mail or by courier. 
 10.4 Governing Law; Waiver of Jury Trial. 

(a) This Agreement (and any Disputes arising out of or related or to the transactions contemplated hereby or to the inducement
of any party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of
Delaware irrespective of the choice of laws principles of the State of Delaware including all matters of validity, construction, effect, enforceability, performance and remedies. 

(b) Subject to the provisions of Section 8.4, each of the Parties hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Court of Chancery of the State of Delaware, or, if (and only if) such court finds it lacks subject matter jurisdiction, the federal court of the United States
of America sitting in Delaware, and appellate courts thereof, in any action or proceeding arising out of or relating to this Agreement for recognition or enforcement of any 

  
 31 

 
judgment relating hereto, and each of the Parties hereby irrevocably and unconditionally (i) agrees not to commence any such action or proceeding except in the Court of Chancery of
the State of Delaware, or, if (and only if) such court finds it lacks subject matter jurisdiction, the federal court of the United States of America sitting in Delaware, and appellate courts thereof, (ii) agrees that any claim in respect
of any such action or proceeding may be heard and determined in the Court of Chancery of the State of Delaware, or, if (and only if) such court finds it lacks subject matter jurisdiction, the federal court of the United States of America sitting in
Delaware, and appellate courts thereof, (iii) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any such action or proceeding in such courts and
(iv) waives, to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in such courts. 

(c) EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY WITH RESPECT TO ANY ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.4(c). 

10.5 Assignability. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors
and permitted assigns; provided, however, that neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party hereto. Notwithstanding the foregoing, no
such consent shall be required for the assignment of a Party’s rights and obligations under this Agreement in whole in connection with a Change of Control of a Party so long as the resulting, surviving or transferee Person assumes all the
obligations of the relevant party thereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party. Nothing herein is intended to, or shall be construed to, prohibit either Party or any member
of its Group from being party to or undertaking a Change of Control. 
 10.6 Third-Party Beneficiaries. Except for any Parent
Indemnitee or SpinCo Indemnitee (in their respective capacities as such) expressly entitled to indemnification rights under this Agreement, (a) the provisions of this Agreement are solely for the benefit of the Parties hereto and are not
intended to confer upon any other Person any rights or remedies hereunder, and (b) there are no third-party beneficiaries of this Agreement and this Agreement shall not provide any Third Party with any remedy, claim, Liability,
reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. 

  
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 10.7 Notices. All notices, requests, claims, demands or 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) by delivery in person, by overnight courier service, by e-mail with receipt
confirmed (followed by delivery of an original via overnight courier service 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 10.7): 
 If to Parent, to: 

International Paper Company 
 6400
Poplar Avenue 
 Memphis, Tennessee 38197 

Attention: [                     ] 

E-mail: [             ] 

with a copy (which shall not constitute notice) to: 

[             ] 

[             ] 

[             ] 

Attention: [                     ] 

E-mail: [             ] 

If to SpinCo, to: 

[             ] 

[             ] 

[             ] 

Attention: [                     ] 

E-mail: [             ] 

with a copy (which shall not constitute notice) to: 

[             ] 

[             ] 

[             ] 

Attention: [                     ] 

E-mail: [             ] 

A Party may, by notice to the other Party, change the address to which such notices are to be given. 

  
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 10.8 Severability. If any provision of this Agreement or the application thereof to
any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof or thereof, or the application of such provision to Persons or circumstances or in jurisdictions
other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the Parties shall negotiate in good faith in an
effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties. 
 10.9 Force Majeure. No
Party shall be deemed in default of this Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder or thereunder so long as and to the extent any delay or failure in the fulfillment of such obligation
is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance of such obligations (other than a payment obligation) shall be extended for a period
equal to the time lost by reason of the delay. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide written notice to the other Party of the nature
and extent of any such Force Majeure condition; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement, as applicable, as soon as reasonably practicable. 

10.10 Headings. The Article, Section and paragraph headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. 
 10.11 Survival. Except as expressly set forth in this
Agreement, the covenants, representations and warranties contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Separation and the Distribution and shall remain in full force and effect
without limitation as to time. 
 10.12 Waivers of Default. Waiver by a Party of any default by the other Party of any provision of
this Agreement must be in writing and shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other Party. No failure or delay by a Party in exercising any right, power or
privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege. 

10.13 Specific Performance. Subject to the provisions of Section 8.4, in the event of any actual or
threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party hereto that is, or is to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief in
respect of its rights under this Agreement in addition to any other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach,
including monetary damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such
remedy are waived by each of the Parties. 

  
 34 

 10.14 Amendments. No provisions of this Agreement shall be deemed waived, amended,
supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or
modification. 
 10.15 Interpretation. In this Agreement, (a) words in the singular shall be deemed to include the plural
and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole (including all of the schedules, exhibits and appendices hereto and thereto) and not to any particular provision of this Agreement; (c) article, section, schedule,
exhibit and appendix references are to the articles, sections, schedules, exhibits and appendices to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement (including this Agreement) shall
be deemed to include the exhibits, schedules and annexes to such agreement; (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise
specified; (f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h) references to “Business Day” shall mean
any day other than a Saturday, a Sunday or a day on which banking institutions are generally authorized or required by law to close in (x) Memphis, Tennessee or (y) New York, New York; (i) references herein to
this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise
specified; (j) the word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”; (k) unless otherwise specified, all
dollar amounts, including the symbol “$”, refer to the lawful currency of the United States of America; and (l) all references to “the date hereof” or “the date of this Agreement” and words of similar import
shall all be references to [        ], 2021. 
 10.16 Limitations of Liability.
Notwithstanding anything in this Agreement to the contrary, neither SpinCo or any member of the SpinCo Group, on the one hand, nor Parent or any member of the Parent Group, on the other hand, shall be liable under this Agreement to the other for any
indirect, punitive, exemplary, remote, speculative or similar damages in excess of compensatory damages of the other arising in connection with the transactions contemplated hereby (other than any such Liability with respect to a Third-Party Claim).

 10.17 Performance. Parent shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Agreement to be performed by any member of the Parent Group. SpinCo shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be
performed by any member of the SpinCo Group. Each Party (including its permitted successors and assigns) further agrees that it shall (a) give timely notice of the terms, conditions and continuing obligations contained in this Agreement
to all of the other members of its Group and (b) cause all of the other members of its Group not to take any action or fail to take any such action inconsistent with such Party’s obligations under this Agreement or the transactions
contemplated hereby. 

  
 35 

 10.18 Mutual Drafting. This Agreement shall be deemed to be the joint work product of
the Parties and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable. 

[Remainder of page intentionally left blank] 

  
 36 

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

			
	INTERNATIONAL PAPER COMPANY

 
			
		
	By:	 	 

 
			
	Name:	 	
	Title:	 	

 
			
	
	SYLVAMO CORPORATION

 
			
		
	By:	 	 

 
			
	Name:	 	

 
			
	Title:	 	

 [Signature Page to Tax Matters Agreement] 

 Schedule 2.3 

For purposes of this Schedule 2.3, “Brazil Goodwill Taxes” means any and all Taxes or legal charges imposed by any
Brazilian Governmental Authority, resulting directly from the Brazilian Federal Revenue Service’s challenge of goodwill amortization deductions taken by International Paper do Brasil Ltda. (“IP do Brasil”) on its Tax Returns
for its 2007-2017 Tax Periods relating to the merger of LA Celulose and IP do Brasil. 
 (a)
Pre-Distribution Date Liability. If, prior to the Distribution Date, (i) a Brazilian Governmental Authority enacts an amnesty program and (ii) Parent determines in its sole
discretion to become a party to such amnesty program and settle all or a portion of IP do Brasil’s liability relating to the Brazil Goodwill Taxes, Parent shall notify SpinCo of such determination on or prior to the Distribution Date, Parent
shall be responsible for and shall pay to SpinCo or to the relevant Brazilian Governmental Authority for the account of IP do Brasil an amount equal to 100% of such settlement up to $180 million. To the extent that the amount of such settlement
exceeds $180 million, SpinCo shall be responsible for and shall pay to the relevant Brazilian Governmental Authority for the account of IP do Brasil an amount equal to 100% of such excess, up to $60 million, and Parent shall be responsible for and
shall pay to the relevant Brazilian Governmental Authority for the account of IP do Brasil 100% of any amount of such settlement above $240 million. 

(b) Post-Distribution Date Liability.  

(i) Parent shall pay to SpinCo or to the relevant Brazilian Governmental Authority for the account of IP do Brasil an amount
equal to 60% of any Brazil Goodwill Taxes imposed on or payable by IP do Brasil following the Distribution Date as a result of a Final Determination, whether pursuant to a final, non-appealable determination
by a federal court in Brazil, the terms of an amnesty program to which IP do Brasil has become a party or other settlement or otherwise, other than any Brazil Goodwill Taxes pursuant to a settlement for which Parent has payment responsibility under
clause (a). 
 (ii) Parent shall pay to SpinCo an amount equal to 60% of any premium and other costs and expenses paid by
SpinCo for any period following the Distribution Date to the providers of the Surety Bonds (as defined below) to maintain, renew or replace the Surety Bonds. 

(c) Reimbursement of Payments by Parent. If any amount with respect to the Brazil Goodwill Taxes is either (1) (x) drawn
on one or more surety bonds issued in favor of [the Federal courts in Brazil] with respect to the Brazil Goodwill Taxes (the “Surety Bonds”) and (y) reimbursed by Parent or a member of the Parent Group to the providers
of the Surety Bonds pursuant to the terms of the Surety Bonds and indemnity agreements entered into in connection therewith, or (2) paid by Parent to the relevant Brazilian Governmental Authority for the account of IP do Brasil, SpinCo
shall pay to Parent an amount equal to the excess, if any, of (i) the aggregate amount reimbursed by Parent to the providers of the Surety Bonds or paid by Parent to the relevant Brazilian Governmental Authority for the account of IP do
Brasil, as applicable, over (ii) the amount for which Parent has payment responsibility under clause (a) or (b) of this Schedule 2.3. 

 (d) Timing; Currency.  

(i) Any payment required to be made by Parent pursuant to clauses (a) or (b)(i) of this Schedule 2.3 as a result of
a settlement pursuant to an amnesty program shall be made on or prior to the date such settlement payment is required to be made by IP do Brasil (taking into account any available extensions for making such payment) pursuant to such amnesty program.

 (ii) Any payment (x) required to be made by Parent pursuant to clause (b)(i) of this Schedule 2.3 and
(y) not described in clause (d)(i) shall be made on or prior to the date a payment is required to be made by IP do Brasil (taking into account any available extensions for making such payment) following a Final Determination that is non-appealable or for which Parent has determined not to pursue an available appeal. 

(iii) Any payment required to be made by Parent pursuant to clause (b)(ii) of this Schedule 2.3 shall be made within 5
Business Days after SpinCo provides Parent with a request for reimbursement with respect to the relevant amount. 
 (iv) Any
payment required to be made by SpinCo pursuant to clause (c) of this Schedule 2.3 shall be made within 5 Business Days after the date Parent provides SpinCo with notice that an applicable amount has been drawn with respect to the Surety
Bonds or has been paid by Parent to the relevant Brazilian Governmental Authority. Without prejudice to Parent’s other rights and remedies, in the event any payment required to be made to Parent by SpinCo pursuant to clause (c) of this
Schedule 2.3 is not paid when due, interest shall accrue from such date until the date of actual payment, at an annual interest rate equal to the Prime Rate plus 2.5%, which interest shall be payable quarterly in arrears on the last
Business Day of each quarter and shall be computed on the basis of a year of 360 days and the actual number of days elapsed. 

(v) Any payment required to be made by SpinCo to Parent pursuant this Schedule 2.3 shall be made in U.S. dollars. The
U.S. dollar amount of any payment required to be made by SpinCo to Parent pursuant to clause (c) of this Schedule 2.3 to reimburse a payment in Brazilian real by Parent or a member of the Parent Group shall be determined based the U.S.
dollar cost that is incurred by Parent or such member of the Parent Group in making such payment (including the cost of any related currency hedging), as determined by Parent in good faith. Any payment required to be made by Parent to SpinCo or the
relevant Brazilian Governmental Authority pursuant to clause (a) or clause (b) of this Schedule 2.3 shall be made in Brazilian real. 

(e) Replacement or Renewal of Surety Bonds. Parent shall use its commercially reasonable efforts with the cooperation of SpinCo to
procure the replacement, renewal or the issuance of additional Surety Bonds as the applicable Brazilian Governmental Authority may reasonably request for IP do Brasil to continue the Tax Contest relating to the Brazil Goodwill Taxes, by agreeing to
indemnify or guarantee the provider or providers of such Surety Bonds (which arrangements may require Parent to post collateral to secure its obligations to the provider or providers of the Surety Bonds), or if such Surety Bonds cannot be replaced,
renewed or obtained, to make other collateral arrangements as the applicable Brazilian Governmental Authority may reasonably request for IP do Brasil to continue the Tax Contest 

 
relating to the Brazil Goodwill Taxes. SpinCo shall not permit IP do Brazil or any other member of the SpinCo Group to, without Parent’s prior written consent, (1) renew or extend, or
fail to renew or extend, the term of, (2) increase its obligations under, (3) transfer to another third party or (4) amend in any manner adverse to Parent, except as contemplated by the first sentence of this paragraph (e) or
Schedule 9.3, the Surety Bonds or any obligation for which Parent is, or would reasonably be expected to be, liable relating to the Brazil Goodwill Taxes. 

(f) Guarantee Fee; Collateral Fee. 

(i) In consideration for the indemnity agreement or any other guarantee entered into by Parent in connection with the Surety
Bonds, SpinCo shall pay to Parent in cash a guarantee fee calculated at an annual rate of 1.5% based on 40% of the face amount of the Surety Bonds (the “Guarantee Fee”) for so long as the Surety Bonds remain outstanding. The
Guarantee Fee shall be payable quarterly in advance, with the first quarterly installment of the Guarantee Fee payable with respect to the period beginning on October 1, 2021 and ending on December 31, 2021. Each quarterly installment
of the Guarantee Fee shall be payable in advance within fifteen (15) days following the beginning of the relevant quarter and shall be calculated based on the U.S. dollar equivalent of the face amount of the Surety Bonds outstanding on the last
Business Day of the previous quarter, using the applicable spot exchange rate on such day with a true up payment to be made at the end of the relevant quarter if the face amount of the Surety Bonds outstanding is increased during such quarter. 

(ii) From and following any posting of collateral by the Parent to secure its obligations under the Surety Bonds pursuant to a
demand therefor by the provider or providers thereof, or from and following any making by Parent of other collateral arrangements as requested by the applicable Brazilian Governmental Authority as contemplated in clause (e) of this Schedule
2.3, for so long as such collateral remains posted, (x) the Guarantee Fee shall terminate and (y) SpinCo shall instead pay to Parent in cash a collateral fee calculated at an annual rate equal to LIBOR plus 3% based on
40% of the fair market value of such collateral (the “Collateral Fee”), provided that, if Sylvamo elects to post collateral in respect of 40% of the liability, the collateral fee shall be zero. The Collateral Fee shall be payable in
quarterly installments pursuant to the same schedule described in clause (i) with respect to the Guarantee Fee, and shall be calculated based on the amount of collateral posted on the last Business Day of the quarter preceding the period with
respect to which such Collateral Fee accrues, with a true up payment to be made at the end of such period if the amount of collateral posted is increased during such period. If such collateral is cash other than U.S. dollars, the fair market value
of such collateral shall be converted into U.S. dollars using the spot exchange rate on the last Business Day of the quarter preceding the period which respect to which such Collateral Fee accrues. For purposes of this clause (f)(ii)
“LIBOR” means the “Benchmark” for U.S. dollar borrowings with a three month interest period under the revolving credit facility of Parent as in effect from time to time. 

 (g) SpinCo Liquidity. From and following the date on which 40% of the
amount of the maximum potential exposure for Brazil Goodwill Taxes which may be assessed by the Brazilian Federal Revenue Service (the “Exposure Amount”), exceeds $275 million, Parent may request SpinCo and its Subsidiaries
that are treated as restricted subsidiaries under SpinCo’s Revolving Credit Facility to maintain Liquidity on the last day of each fiscal quarter of not less than the Exposure Amount. If, following such a request from Parent, SpinCo and its
restricted subsidiaries fail to maintain Liquidity at such level when required, the rate at which the Guarantee Fee or the Collateral Fee, as applicable, accrues shall be automatically increased by 2% for any fiscal quarter which immediately follows
a fiscal quarter for which Liquidity is not maintained at the required level. For purposes of this clause (g), (i) “Liquidity” means the sum of (x) all readily available unrestricted cash and cash equivalents of
SpinCo and its Subsidiaries that are treated as restricted subsidiaries under SpinCo’s Revolving Credit Facility in excess of $100 million and (y) the aggregate unused amount of commitments under SpinCo’s Revolving Credit
Facility that can be drawn while maintaining pro forma compliance with the “Maximum Consolidated Total Leverage Ratio” (as defined in SpinCo’s Revolving Credit Facility) and (ii) “Revolving Credit Facility”
means the [Revolving Credit Facility, dated as of [ ], 2021, among SpinCo, as Borrower, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent]. 

For the avoidance of doubt, (i) Sections 5.2 and 8.3(b) of this Agreement shall not apply to payments required under
this Schedule 2.3 and (ii) Parent shall not be required to make any payment in respect of Brazil Goodwill Taxes to SpinCo or any of its Affiliates to the extent that the relevant Brazilian Governmental Authority irrevocably
abandons and relinquishes, or otherwise irrevocably ceases to pursue, the Brazilian Federal Revenue Service’s challenge relating to the Brazil Goodwill Taxes or such challenge is resolved in favor of IP do Brasil. 

 Schedule 7.2(c)(iii) 

 Schedule 9.3 

Brazil Goodwill Tax Contests. 

(a) Parent shall administer and control the conduct and resolution of any Tax Contest relating to the Brazil Goodwill Taxes (the
“Brazil Goodwill Tax Contests”), provided that, other than in the case of any settlement described in clause (a) of Schedule 2.3, (i) SpinCo shall have the right, at its sole expense, to participate in any
Brazil Goodwill Tax Contest (ii) Parent shall consult with SpinCo reasonably in advance of taking any material proposed course of action with respect to the Brazil Goodwill Tax Contests, (iii) Parent shall consult with SpinCo
and offer SpinCo a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with the Brazil Goodwill Tax Contests, (iv) SpinCo shall be entitled to participate in all formally
scheduled meetings with any Tax Authority relating to the Brazil Goodwill Tax Contests and (v) Parent shall conduct the Brazil Goodwill Tax Contests with reasonable diligence and in good faith as if it were the only party in interest in
connection with the Brazil Goodwill Tax Contests. Without limiting the generality of the foregoing, Parent shall have the right to (1) determine in its sole discretion, which discretion shall be exercised in good faith, whether to appeal
or to resolve any Brazil Tax Goodwill Contest (whether pursuant to participation in an amnesty program or other settlement or otherwise) and (2) select the counsel that will represent IP do Brasil in connection with the Brazil Tax Goodwill
Contests. 
 (b) SpinCo shall (and shall cause each member of the SpinCo Group to) execute and deliver to Parent (or such member of the
Parent Group as Parent shall designate) any power of attorney or similar document reasonably requested by Parent (or such designee) in connection with any Brazil Goodwill Tax Contest. 

(c) Each Party shall bear its own expenses in the course of any Brazil Goodwill Tax Contest.EX-10.3

 Exhibit 10.3 

FORM OF EMPLOYEE MATTERS AGREEMENT 

by and between 
 INTERNATIONAL
PAPER COMPANY 
 (“Parent”) 

and 
 SYLVAMO CORPORATION 

(“SpinCo”) 
 dated as of
[•], 2021 
  

 Table of Contents 

 

							
	 	 	 	  	Page	 
	 ARTICLE I. DEFINITIONS 
	  	 	2	 
	 Section 1.1.
	 	Definitions	  	 	2	 
	 Section 1.2.
	 	Capitalized Terms	  	 	10	 
		
	 ARTICLE II. EMPLOYEES 
	  	 	10	 
	 Section 2.1.
	 	Employees	  	 	10	 
	 Section 2.2.
	 	Termination of Employment or Benefits	  	 	11	 
	 Section 2.3.
	 	Employees With Right to Return	  	 	11	 
	 Section 2.4.
	 	No Right to Continued Employment	  	 	12	 
	 Section 2.5.
	 	Non-Solicitation; Non-Hire	  	 	13	 
	 Section 2.6.
	 	Certain Tax Matters	  	 	15	 
	 Section 2.7.
	 	Work Visas	  	 	15	 
		
	 ARTICLE III. COLLECTIVE BARGAINING AGREEMENTS AND OBLIGATIONS 
	  	 	15	 
	 Section 3.1.
	 	Assumption and Continuation of Agreements	  	 	15	 
		
	 ARTICLE IV. BENEFITS PLANS AND PROGRAMS 
	  	 	16	 
	 Section 4.1.
	 	Continuation of Compensation and Benefits for Non-Represented Transferred Employees	  	 	16	 
	 Section 4.2.
	 	No Participation in Parent Plans	  	 	17	 
	 Section 4.3.
	 	Establishment of SpinCo Mirror Plans	  	 	17	 
	 Section 4.4.
	 	Terms of Participation by Transferred Employees	  	 	18	 
	 Section 4.5.
	 	Right to Amend SpinCo Plans	  	 	18	 
		
	 ARTICLE V. PENSION PLANS 
	  	 	19	 
	 Section 5.1.
	 	Establishment of Pension Plans	  	 	19	 
	 Section 5.2.
	 	Assumption of Parent Pension Plan Liabilities and Transfer of Assets from the Parent Pension Trust	  	 	19	 
	 Section 5.3.
	 	Assumption of Liabilities Under Parent Non-Qualified Pension Plan and Payment by Parent of Accrued Liabilities	  	 	23	 
	 Section 5.4.
	 	International Pension Plans	  	 	25	 
	 Section 5.5.
	 	Continuation of Elections and Application to SpinCo Dependents	  	 	25	 
		
	 ARTICLE VI. HEALTH AND WELFARE 
	  	 	25	 
	 Section 6.1.
	 	Parent Health and Welfare Plans.	  	 	25	 
	 Section 6.2.
	 	Adoption of SpinCo Health and Welfare Plans.	  	 	26	 
	 Section 6.3.
	 	COBRA and HIPAA	  	 	28	 
	 Section 6.4.
	 	Workers’ Compensation Claims	  	 	28	 

  
 i 

							
	 Section 6.5.
	 	Leave of Absence Programs	  	 	29	 
	 Section 6.6.
	 	Time-Off Benefits.	  	 	29	 
	 ARTICLE VII. SAVINGS PLANS 
	  	 	30	 
			
	 Section 7.1.
	 	Adoption of SpinCo Savings Plans	  	 	30	 
	 Section 7.2.
	 	Assumption of Liabilities and Transfer of Assets With Respect to Parent Qualified Savings Plans	  	 	30	 
	 Section 7.3.
	 	Treatment of Parent Non-Qualified Savings Plan Accounts	  	 	31	 
	 Section 7.4.
	 	Continuation of Elections and Application to SpinCo Dependents	  	 	33	 
		
	 ARTICLE VIII. EQUITY BASED INCENTIVE AWARDS 
	  	 	33	 
	 Section 8.1.
	 	Treatment of Outstanding PSP Awards by Parent	  	 	33	 
	 Section 8.2.
	 	Treatment of Outstanding Parent Restricted Share Unit and Restricted Stock Awards	  	 	34	 
	 Section 8.3.
	 	Replacement Awards for Cancelled Shares	  	 	34	 
	 Section 8.4.
	 	Establishing the Number of Shares Subject to SpinCo Awards	  	 	34	 
		
	 ARTICLE IX. SHORT TERM INCENTIVES AND SALES COMMISSION PROGRAMS 
	  	 	35	 
	 Section 9.1.
	 	Management Incentive Plan	  	 	35	 
	 Section 9.2.
	 	Hourly Incentive Plans and Sales Commission Programs	  	 	35	 
	 Section 9.3.
	 	SpinCo Obligations In Respect of Incentive Plans	  	 	35	 
		
	 ARTICLE X. ASSUMPTION OF LIABILITIES 
	  	 	36	 
	 Section 10.1.
	 	Assumption of Liabilities.	  	 	36	 
	 Section 10.2.
	 	Reimbursement	  	 	37	 
	 Section 10.3.
	 	Indemnification	  	 	38	 
	 Section 10.4.
	 	Procedures for Indemnification for Third-Party Claims	  	 	39	 
	 Section 10.5.
	 	Reductions for Insurance Proceeds and Other Amounts	  	 	39	 
	 Section 10.6.
	 	Contribution	  	 	39	 
	 Section 10.7.
	 	Consequential Damages	  	 	40	 
		
	 ARTICLE XI. GENERAL AND ADMINISTRATIVE 
	  	 	40	 
	 Section 11.1.
	 	Cooperation	  	 	40	 
	 Section 11.2.
	 	Consent of Third Parties	  	 	42	 
	 Section 11.3.
	 	Survival	  	 	42	 
	 Section 11.4.
	 	Interpretation	  	 	42	 
	 Section 11.5.
	 	No Third Party Beneficiary	  	 	43	 
	 Section 11.6.
	 	Notices	  	 	43	 
	 Section 11.7.
	 	Governing Law	  	 	44	 
	 Section 11.8.
	 	Disputes	  	 	45	 
	 Section 11.9.
	 	Specific Performance	  	 	45	 
	 Section 11.10.
	 	No Assignment; No Amendment; Counterparts	  	 	45	 

 EXHIBITS 
 Exhibit A. Sales
Commissions Programs 
 SCHEDULES 
 Schedule 2.4. Minimum
Severance Benefits for Non-Represented Employees 
  

  
 ii 

 FORM OF EMPLOYEE MATTERS AGREEMENT 

This Employee Matters Agreement (together with all exhibits, schedules, appendices and annexes hereto, this “Agreement”),
dated as of [•], 2021 is by and between International Paper Company, a New York corporation (“Parent”), and Sylvamo Corporation, a Delaware corporation (“SpinCo”) (each a “Party” and
collectively, the “Parties”). Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in ARTICLE I. 

WHEREAS, SpinCo is a wholly-owned, direct Subsidiary of Parent; 

WHEREAS, the board of directors of Parent (the “Parent Board”) has determined that it is in the best interests of Parent and
its shareholders to create a new publicly traded company that will operate the SpinCo Business; 
 WHEREAS, in furtherance of the foregoing,
the Parent Board has determined that it is appropriate and desirable to effect the Separation and the Distribution (as each such term is defined in the Separation Agreement); 

WHEREAS, to effectuate the Separation and Distribution, Parent and SpinCo have entered into a Separation and Distribution Agreement, dated as
of [•], 2021 (the “Separation Agreement”); 
 WHEREAS, in addition to the matters addressed by the Separation
Agreement, the Parties desire to enter into this Agreement that is an “Ancillary Agreement” under the Separation Agreement to set forth the terms and conditions of certain employment, compensation and benefit matters; and 

WHEREAS, the Parties acknowledge that this Agreement, the Separation Agreement and the other Ancillary Agreements under the Separation
Agreement represent the integrated agreement of Parent and SpinCo relating to the Separation and Distributions, are being entered into together and would not have been entered into independently. 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 
  

 ARTICLE I. 

DEFINITIONS 
 Section 1.1.
Definitions. 
 “Actuarial Assumptions” means the actuarial assumptions used in connection with the most recently
completed actuarial report of the accounting liabilities under the applicable Parent Pension Plan, except that, any actuarial assumption changes regarding accounting liabilities to the applicable Parent Pension Plan as a result of Parent’s
actuary’s 2021 experience study will be utilized to the extent different, and the discount rate applied in determining such liabilities shall be determined as of the Interim Transfer Date. 

“Affiliate” has the meaning ascribed to it in the Separation Agreement. 

“Agreement” has the meaning ascribed to it in the Recitals to this Agreement 

“Applicable CBA” means the Labor Agreement between International Paper Company (Ticonderoga Mill) and the United Steel
Workers, Local 4-0005 and Local 4-0497, effective June 1, 2017, and incorporates, as applicable, any language required by the IP Mill Master Agreement Memorandum
dated September 1, 2015 and expiring on August 31, 2023. 
 “Assumption Date” means the date as of which SpinCo
[assumes][assumed] the obligations of the Parent under the Applicable CBA[, which shall in all events be no later than immediately prior to the Effective Time][which was September 1, 2021]. 

“Bargaining Units” means the bargaining units under the Applicable CBA immediately prior to the Assumption Date. 

“Benefit Payments” has the meaning ascribed to it in Section 5.2(d)(ii). 

“Business Day” has the meaning ascribed to it in Section 11.4. 

“Business Employee” means each individual employee of Parent or a Subsidiary of Parent who (i) as of the day immediately
prior to the Interim Transfer Date, was assigned to a position in which at least two-thirds of his or her services as an employee of the Parent or a Subsidiary of the Parent were devoted to or for the benefit
of the SpinCo Business (including any such individual assigned to such a position who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence approved by Parent’s Human Resources department or
otherwise taken in accordance with applicable Law) or (ii) is identified by Parent or pursuant to Parent’s job posting process as the person to fulfill a position unassigned as of the day immediately prior to the Interim Transfer Date in
which the person would be expected to devote at least two-thirds of his or her services as an employee of the Parent or a Subsidiary of the Parent to or for the benefit of the SpinCo Business. 

  
 2 

 “Cancelled Parent PSP Shares” has the meaning ascribed to in
Section 8.1. 
 “Cancelled Parent Restricted Shares” has the meaning ascribed to in Section 8.2. 

“COBRA” has the meaning ascribed to it in Section 6.3. 

“Code” means the United States Internal Revenue Code of 1986, as amended. 

“Effective Time” has the meaning ascribed to it in the Separation Agreement. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Excluded Employees” has the meaning set forth in Section 2.5(a)(iv). 

“Final Asset Transfer” has the meaning ascribed to it in Section 5.2(d)(ii). 

“Former Business Employee” means any individual who had at any time provided services in respect of the SpinCo Business or
the SpinCo Assets, but (i) as of the Interim Transfer Date, is no longer actively employed by Parent or any Subsidiary or (ii) is employed by Parent or a Subsidiary, but as of the day immediately prior to the Interim Transfer Date no
longer qualified as a Business Employee (and does not otherwise thereafter again become a Business Employee prior to the Effective Time). 

“FSA Participants” has the meaning ascribed to it in Section 6.2(c). 

“Governmental Authority” has the meaning ascribed to it in the Separation Agreement. 

“Group” means either of the Parent Group or the SpinCo Group, as the context requires. 

“Hourly Incentive Plans” means the Ticonderoga Gain Sharing Plan, the Sumter Sheeting Facility Gain Sharing Plan, and the
Eastover Gain Sharing Plan. 
 “Indemnifiable Losses” means all Losses, Liabilities, damages, claims, demands, judgments or
settlements of any nature or kind, including, but not limited to, all costs and expenses (legal, accounting or otherwise) that are reasonably incurred relating thereto, suffered by an Indemnified Party, including, but not limited to, any costs or
expenses of enforcing any indemnity hereunder that are reasonably incurred. 

  
 3 

 “Indemnified Parties” has the meaning ascribed to it in
Section 10.3(b). 
 “Indemnifying Party” means a Person that is obligated under this Agreement to provide
indemnification. 
 “Initial Asset Transfer” has the meaning ascribed to it in Section 5.2(d)(i). 

“Insured WC Claims” has the meaning ascribed to it in Section 6.4. 

“Interim Transfer Date” means September 1, 2021. 

“Internal Reorganization” has the meaning ascribed to it in the Separation Agreement. 

“Law” has the meaning ascribed to it in the Separation Agreement. 

“Layoff with Right of Recall” means any Represented Employee who has been formally laid off by any member of the Parent
Group, the SpinCo Group or a Transferred Entity under circumstances that entitle such Represented Employee to a right of recall by his or her employer and whose period of eligibility for recall pursuant to the Applicable CBA has not expired, or
whose right to recall has not been forfeited pursuant to the Applicable CBA, as of the Effective Time. 
 “Leave Employee”
means any Business Employee who, as of the Effective Time, (i) is on a Leave of Absence or receiving long-term disability benefits under a Parent Plan or a SpinCo Plan and (ii) is not a Retained Employee. 

“Leave Employee Commencement Date” has the meaning ascribed to it in Section 2.3(a). 

“Leave of Absence” means a leave from active employment that is expected to continue following the Effective Time and that
(i) was granted in accordance with the applicable policies and procedures (including, but not limited to, any policy or procedures implemented to comply with the United Services Employment and Reemployment Rights Act, the Americans with
Disabilities Act, the Family and Medical Leave Act or similar state or other Law or with the Applicable CBA) of a member of the Parent Group, the SpinCo Group or a Transferred Entity or (ii) arose due to an illness or injury that results in the
individual being eligible for short-term disability benefits, sickness and accident benefits or workers’ compensation under the Parent’s or SpinCo’s (as applicable) short-term disability or sickness and accident plan or state or other
Law. For the avoidance of doubt, any employee who is not at work on the day of the Effective Time due to vacation, sickness or accident that has not qualified the individual for short-term disability or accident benefits, workers’ compensation
or other temporary absence, but whose employment continues in accordance with the Parent Group’s or SpinCo Group’s employment policies (such as due to the use of personal days), shall be considered to be actively at work on the day of the
Effective Time. Any individual who is receiving long-term disability benefits at the Effective Time shall not be considered to be on a “Leave of Absence” for purposes of this definition. 

  
 4 

 “Liabilities” means any and all obligations, benefit entitlements, losses,
claims, charges, debts, demands, actions, costs and expenses (including, but not limited to, those arising under any contract, collective bargaining agreement, or plan, and administrative and related costs and expenses of any plan, program, or
arrangement), of any nature whatsoever, whether absolute or contingent, vested or unvested, matured or unmatured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whenever arising. 

“Liability Event” has the meaning ascribed to it in Section 10.6(b). 

“Losses” has the meaning ascribed to it in the Separation Agreement. 

“Management Incentive Plan” means the International Paper Company 2021 Management Incentive Plan, as amended. 

“Parent” has the meaning ascribed to it in the preamble to this Agreement. 

“Parent Board” has the meaning ascribed to it in the Recitals to this Agreement. 

“Parent Cancelled Share Value” shall mean the closing price of a share of the common stock of the Parent on the New York
Stock Exchange on the last trading day immediately preceding the Effective Time. 
 “Parent FSAs” means the International
Paper Company EBRA and Tax-Free Health Care Contributions Plan and the International Paper Company Tax-Free Health Care Contributions for Hourly Employees Plan. 

“Parent Group” has the meaning ascribed to it in the Separation Agreement. 

“Parent Hourly Savings Plan” means the International Paper Company Hourly Savings Plan. 

“Parent Indemnified Parties” has the meaning ascribed to it in Section 10.3(a). 

“Parent Liabilities” means all Liabilities of Parent and the Parent Subsidiaries. In no event shall the term Parent
Liabilities include any Liabilities that are transferred from or otherwise cease to be Liabilities of any of Parent or any other member of the Parent Group pursuant to this Agreement, or that have, or will become, SpinCo Employee Liabilities. 

  
 5 

 “Parent Non-Qualified Pension Plan”
means the International Paper Company Pension Restoration Plan for Salaried Employees. 
 “Parent
Non-Qualified Pension Plan Liabilities” has the meaning ascribed to it in Section 5.3(b). 

“Parent Non-Qualified Savings Plan” means the International Paper Company Deferred
Compensation Savings Plan. 
 “Parent Non-Qualified Savings Plan Liabilities” has
the meaning ascribed to it in Section 7.3(b). 
 “Parent PBO Funding Percentage” has the meaning ascribed to it in
Section 5.2(g). 
 “Parent Pension Plans” mean the Parent Qualified Pension Plan and the Parent Non-Qualified Pension Plan. 
 “Parent Plan” means any plan, policy, program, payroll
practice, on-going arrangement, contract, trust, insurance policy or other agreement or funding vehicle, whether written or unwritten, maintained or sponsored by Parent or any of its Subsidiaries or Affiliates
(or any of their respective predecessors) at any time on or prior to the Effective Time for the purpose of providing compensation or benefits to any current or former employee of any such person. 

“Parent Qualified Pension Plan” means the Retirement Plan of International Paper Company. 

“Parent Qualified Plan Net Assets” has the meaning ascribed to it in Section 5.2(g). 

“Parent Qualified Savings Plans” mean the Parent Hourly Savings Plan and the Parent Salaried Savings Plan. 

“Parent Salaried Savings Plan” means the International Paper Company Salaried Savings Plan. 

“Parent Savings Plans” means the Parent Qualified Savings Plans and the Parent
Non-Qualified Savings Plan. 
 “Parent Severance Plan” means the
(i) International Paper Company Salaried Employee Severance Plan and (ii) any other severance plan or policy of any member of the Parent Group applicable to Business Employees. 

“Parent Subsidiaries” mean all direct and indirect Subsidiaries that are, or continue to be, Subsidiaries of Parent
immediately after the Effective Time. For the avoidance of doubt, for purposes of this Agreement none of the Transferred Entities, nor any other member of the SpinCo Group, shall be a Parent Subsidiary. 

  
 6 

 “Parent Trust” has the meaning ascribed to it in Section 5.2(d)(i).

 “Parent Welfare Plans” has the meaning ascribed to it in Section 6.1(a). 

“Party” and “Parties” have the respective meanings ascribed to them in the preamble to this Agreement. 

“Pension Plan Asset Transfer Amount” has the meaning ascribed to it in Section 5.2(b). 

“Person” has the meaning ascribed to it in the Separation Agreement. 

“Pro-Rated Fraction” has the meaning ascribed to it in Section 9.1. 

“Pro-Rated Parent Award” has the meaning ascribed to it in Section 8.1. 

“Representative” means, with respect to any Person, any of such Person’s directors, managers or persons acting in a
similar capacity, officers, employees, agents, consultants, financial and other advisors, accountants, attorneys and other representatives. 

“Represented Employee” means any Business Employee who is a member of the Bargaining Unit. 

“Restricted Employees” has the meaning ascribed to it in Section 2.5(a). 

“Retained Employee” means any individual (a) who, as of the Effective Time, (i) is actively employed by, or on an
approved Leave of Absence or Layoff with Right of Recall from a member of the Parent Group, or (ii) had been primarily employed in the SpinCo Business or with respect to the SpinCo Assets and (b) whose employment Parent has determined not
to transfer to SpinCo or a member of the SpinCo Group. 
 “Sales Commission Programs” means the programs listed on Exhibit
A of this Agreement. 
 “Separation Agreement” has the meaning ascribed to it in the fourth recital to this Agreement. 

“SpinCo” has the meaning ascribed to it in the preamble to this Agreement. 

“SpinCo Assets” has the meaning ascribed to it in the Separation Agreement. 

  
 7 

 “SpinCo Business” has the meaning ascribed to it in the Separation
Agreement. 
 “SpinCo Dependents” means, with respect to any Transferred Employee, any individual who, by virtue of a
relationship with the Transferred Employee, was eligible to receive benefits under the terms of any applicable Parent Pension Plan, Parent Savings Plan, or Parent Welfare Plan immediately prior to the Interim Transfer Date. For the avoidance of
doubt, a SpinCo Dependent includes only those persons who then actually met the relevant plan’s requirements for eligibility for benefits (i) as a beneficiary or alternate payee, in the case of any applicable Parent Pension Plan or Parent
Savings Plan, or (ii) as a dependent, in the case of any applicable Parent Welfare Plans as of the time eligibility for benefits must be determined. 

“SpinCo Employee Liabilities” means the liabilities assumed by SpinCo pursuant to Section 10.1 hereof. 

“SpinCo FSA” has the meaning ascribed to it in Section 6.2(c)(i). 

“SpinCo Group” has the meaning ascribed to it in the Separation Agreement. 

“SpinCo Indemnified Parties” has the meaning ascribed to it in Section 10.3(b). 

“SpinCo Mirror Plans” means the SpinCo Qualified Pension Plan, the SpinCo
Non-Qualified Pension Plan, the SpinCo Qualified Savings Plan and the SpinCo Non-Qualified Savings Plan. 

“SpinCo Non-Qualified Pension Plan” has the meaning ascribed to it in
Section 5.1. 
 “SpinCo Non-Qualified Savings Plan” has the meaning ascribed
to it in Section 7.1(b). 
 “SpinCo PBO Funding Percentage” has the meaning ascribed to it in Section 5.2(g).

 “SpinCo PBO Liabilities” has the meaning ascribed to it in Section 5.2(f). 

“SpinCo Pension Plans” means the SpinCo Qualified Pension Plan and the SpinCo
Non-Qualified Pension Plans. 
 “SpinCo Plan” means any plan, policy, program,
payroll practice, on-going arrangement, contract, trust, insurance policy or other agreement or funding vehicle, whether written or unwritten, maintained or sponsored by any member of the SpinCo Group,
including without limitation each SpinCo Mirror Plan, that provides or will provide compensation or benefits to any Transferred Employee or SpinCo Dependent. 

  
 8 

 “SpinCo Qualified Pension Plan” has the meaning ascribed to it in
Section 5.1. 
 “SpinCo Qualified Savings Plan” has the meaning ascribed to it in Section 7.1(a). 

“SpinCo Replacement Share Value” shall be an amount equal to the average of the closing prices of the SpinCo common stock on
the principal exchange or national quotation system upon which such common stock is traded or listed for each of the 10 trading days commencing with and next following the Effective Time. 

“SpinCo Subsidiary” means each Subsidiary of SpinCo, including with respect to periods after the Effective Time, each of the
Transferred Entities. 
 “SpinCo Trust” has the meaning ascribed to it in Section 5.2(d)(i). 

“SpinCo Welfare Plans” has the meaning ascribed to it in Section 6.2(a). 

“Subsidiary” has the meaning ascribed to it in the Separation Agreement. 

“Successorship Provisions” means the successorship provisions set forth in Clause F of Part II of the IP Mill Master
Agreement Memorandum which forms a part of the Applicable CBA. 
 “Suitable Position” means, in respect of a Business
Employee other than a Represented Employee, terms of employment that provide for a position which would not entitle such Business Employee to any severance benefits under the Parent Severance Plan if such Business Employee were terminated in
connection with the consummation of the transactions contemplated by the Separation Agreement, or solely in the case of a Represented Employee, such terms as may be required pursuant to the terms of the Applicable CBA. 

“Tax” has the meaning ascribed to it in the Tax Matters Agreement. 

“Tax Matters Agreement” has the meaning ascribed to it in the Separation Agreement. 

“Third-Party Claim” has the meaning ascribed to it in the Separation Agreement. 

“Time-Off Benefits” has the meaning ascribed to it in Section 6.6. 

“Total PBO Liabilities” has the meaning ascribed to it in Section 5.2(f). 

“Transferred Employees” means (i) each Business Employee who has accepted an offer of employment with, and has become an
employee of, a member of the SpinCo Group or (ii) whose employment otherwise transfers to a member of the SpinCo Group by operation of law or otherwise. 

  
 9 

 “Transferred Entities” has the meaning ascribed to it in the Separation
Agreement. 
 “Union” means the United Steel Workers, Local 4-0005 and Local 4-0497, which represent the employees of the Bargaining Unit. 
 “Workers’ Compensation
Claims” has the meaning ascribed to it in Section 6.4. 
 Section 1.2. Capitalized Terms. Any other capitalized
term used and not defined herein, but defined in the Separation Agreement, shall have the meaning ascribed thereto in the Separation Agreement. 

ARTICLE II. 
 EMPLOYEES 

Section 2.1. Employees. 

Prior to the Effective Time, except for (i) Retained Employees, (ii) Business Employees who are Leave Employees at the Interim
Transfer Date and (iii) those Business Employees (including, where applicable, Leave Employees) whose employment transfers to a member of the SpinCo Group automatically by operation of Law, SpinCo has caused or shall cause the applicable member
of the SpinCo Group to offer employment to each Business Employee in a Suitable Position. At or prior to the Effective Time, the employment of each Transferred Employee has or shall be transferred to, and each such employee has or shall become an
employee of, a member of the SpinCo Group, without any interruption or cessation of employment or break in service. Except with respect to Represented Employees, an individual’s acceptance of an offer of employment from a member of the SpinCo
Group shall be conclusive evidence that such offer constituted a Suitable Position. If a member of the SpinCo Group fails to offer a Business Employee (other than Retained Employee) a Suitable Position prior to the Effective Time and such Business
Employee’s employment does not otherwise transfer to a member of the SpinCo Group by operation of law, such Business Employee shall be entitled to receive severance under the Parent Severance Plan applicable to such Business Employee and SpinCo
shall reimburse Parent for the aggregate amount of the severance benefits payable, regardless of when payable to the affected employee, within 30 days following the Effective Time. Each Business Employee who receives and who declines an offer of a
Suitable Position with a member of the SpinCo Group shall be deemed to have voluntarily resigned employment with the member of the Parent Group by which such Business Employee was employed, effective as of the Effective Time (or such earlier date as
of which such Business Employee ceases to provide services to such member of the Parent Group), and for the avoidance of doubt shall not be entitled to any severance benefits from any member of the Parent Group under any Parent Severance Plan or
otherwise, unless otherwise required by Law. All individuals employed by the 

  
 10 

 
Parent Group at the Effective Time who are not Business Employees shall remain employees of Parent or another member of the Parent Group immediately following the Effective Time, except in the
case of such an individual who accepts an offer of employment from SpinCo or an Affiliate prior to the Effective Time. Nothing in this Agreement shall, or shall be construed to, modify, alter, diminish or otherwise interfere with or supersede or
override any right afforded to any Transferred Employee or any obligation imposed on any member of the SpinCo Group at or by operation of applicable Law. 

Section 2.2. Termination of Employment or Benefits. 

Except as otherwise expressly and specifically provided herein, (i) no provision of this Agreement or the Separation Agreement, and
(ii) no actions by the Parent Group or the SpinCo Group taken in contemplation of, or in connection with, this Agreement, the Internal Reorganization or the Separation Agreement shall be construed to create any right, or accelerate any
entitlement, to any compensation or benefit whatsoever on the part of any Business Employee (including any Business Employee who becomes a Transferred Employee), or to limit the ability of the SpinCo Group or the Parent Group, respectively,
to administer any SpinCo Plan or Parent Plan, as applicable, in accordance with its terms and as may be expressly provided in this Agreement. Without limiting the generality of the foregoing, nothing described above in Section 2.1 or elsewhere
in this Agreement shall cause any Transferred Employee to be deemed to have incurred a termination of employment or to have created any entitlement to any severance benefits or the commencement of any other benefits under any Parent Plan or the
Applicable CBA, unless otherwise required by Law. 
 Section 2.3. Employees With Right to Return. 

(a) Leave Employees. With respect to all Leave Employees receiving short-term disability benefits as of the Interim Transfer Date,
except as otherwise required by applicable Law, Parent Group shall retain all obligations to provide such short-term disability benefits and other benefits for such Leave Employees while the Leave Employees continue to be eligible for short-term
disability benefits under the short- term disability plans maintained by the Parent Group. The foregoing sentence shall not apply to any Leave Employee who is employed by a member of the SpinCo Group as of immediately prior to the Interim Transfer
Date or whose employment automatically transfers to a member of the SpinCo Group by operation of Law, in which case the appropriate member of the SpinCo Group shall be responsible for providing such Leave Employee disability benefits and any other
rights conveyed to such Transferred 

  
 11 

 
Employee at applicable law. Any Business Employee who becomes a Leave Employee on or after the Interim Transfer Date shall be treated as a Transferred Employee for all purposes of this Agreement.
SpinCo Group shall honor any reinstatement rights that exist for Leave Employees under applicable Law, the Applicable CBA or otherwise under the policies and practices of the Parent Group (including Business Employees who become Leave Employees on
or after the Interim Transfer Date). In the event that any Leave Employee who becomes a Leave Employee prior to the Interim Transfer Date later becomes an employee of the SpinCo Group by reason of the exercise of any such reinstatement rights, from
and after the date such Leave Employee commences employment with the SpinCo Group (the “Leave Employee Commencement Date”) such Leave Employee shall be afforded the same rights afforded to a Transferred Employee hereof, except that
such rights shall extend solely from such Leave Employee Commencement Date and not the Effective Time. Parent and SpinCo shall in good faith take such actions as shall be necessary or appropriate to implement the provisions of this
Section 2.3(a) and of the other applicable provisions of this Agreement with regard to such newly characterized Transferred Employee. Unless otherwise required by applicable law, the Applicable CBA or otherwise under the policies and practices
of the Parent Group, SpinCo and its Affiliates shall have no obligation hereunder to employ or offer employment to any Leave Employee who becomes a Leave Employee prior to the Interim Transfer Date later and who is not cleared to return to work or
who otherwise fails to present himself of herself for active work within twelve (12) months following the Effective Time. 
 (b)
Reinstatement of Former Business Employees. Notwithstanding anything in this Agreement to the contrary and subject to any judicial challenge or appeal undertaken by Parent, in the event that an arbitration or judicial decision orders that a
Former Business Employee whose employment terminated with the Parent Group prior to the Effective Time be reinstated to employment with back pay, Parent shall be responsible for the back pay and any other
pre-reinstatement monetary damages or other relief awarded (including benefits-related relief), and SpinCo shall be responsible for the reinstatement of the Former Business Employee in accordance with the
terms and conditions of the decision. Upon any such reinstatement, such Former Business Employee shall become a Transferred Employee, SpinCo shall have the obligations in respect of such Former Business Employee that it has to Transferred Employees
generally and Parent and SpinCo shall in good faith take such actions as shall be necessary or appropriate to implement the provisions of this Section 2.3(b) and of the Agreement with regard to such newly characterized Transferred Employee.

 Section 2.4. No Right to Continued Employment. 

Subject to the Applicable CBA and applicable Law, nothing contained in this Agreement shall confer on any employee of any member of the Parent
Group or any Transferred Employee any right to continued employment. Except as specifically provided in this Section 2.4, the Applicable CBA, or Section 3.1(a) or 4.1, this Agreement shall not limit the ability of SpinCo to change, at any
time after the Effective Time and in its sole discretion, a Transferred Employee’s position, compensation or benefits for performance-related, business or any other reasons or require any member of the SpinCo Group to continue the employment of
a Transferred Employee for any particular period of time after the Effective Time, provided that SpinCo shall bear all liability for any such termination of employment (including a termination of employment

  
 12 

 
of a Leave Employee resulting from job or position elimination). With respect to any such terminations of employment of (a) any Transferred Employee occurring prior to the first anniversary
of the Effective Time or (b) any Leave Employee occurring within the period in which such Leave Employee would have been entitled to severance or termination benefits under the policies and practices of the Parent Group, SpinCo shall provide to
such terminated Transferred Employees or Leave Employees (in each case other than a Represented Employee) severance and termination benefits no less favorable in the aggregate than the severance and termination benefits that are described on
Schedule 2.4 to this Agreement. For the avoidance of doubt, each Transferred Employee shall receive full credit for years of service with the Parent Group for purposes of calculating the amount of severance payable to any such Transferred Employee
under any applicable plan, program or arrangement sponsored or maintained by the applicable member of the SpinCo Group, such that, to the extent service, compensation or other factors are taken into account under the terms of such plan, program or
arrangement, the Transferred Employee’s entitlement to severance shall be calculated taking into account all service, all compensation, and all other factors that, as of the Interim Transfer Date or the date on which the Effective Time occurs,
as applicable, would have been taken into account under any Parent Plan providing severance benefits applicable to such Transferred Employee had such Transferred Employee’s employment been terminated immediately before the Interim Transfer Date
or the date on which the Effective Time occurs, as applicable. 
 Section 2.5.
Non-Solicitation; Non-Hire. 
 (a) Non-Solicitation. Each of Parent and SpinCo agrees that, for a period of eighteen (18) months from the Effective Time, it shall not, and shall cause each member in its respective Group to not, solicit for
employment any individual who is an employee of a member of the other Group as of immediately prior to the Effective Time (“Restricted Employees”); provided that the foregoing restrictions shall not apply: 

(i) to any Restricted Employee who responds to general solicitations not targeted at the Restricted Employees, 

(ii) to any Restricted Employee who is hired pursuant to the application of internal job posting policies and practices at the
Parent Group, where the posting of the position occurred prior to the Effective Time; 
 (iii) to any Restricted Employee
whose employment was involuntarily terminated by the employing Party in a severance-qualifying termination before the employment discussions with the soliciting Party commenced; 

(iv) to any Restricted Employee whose prospective employment by the soliciting Party is agreed to in writing by the employing
Party, or in the case of a Restricted Employee who is not currently employed, the Party who last employed Restricted Employee (the employees referenced in each of clauses (i)-(iv) above, the “Excluded Employees”); 

  
 13 

 (v) to any Restricted Employee located in a jurisdiction where adherence to
such restriction would violate applicable Law. 
 (b) Non-Hire. Each of Parent and SpinCo
agrees that, for a period of eighteen (18) months from the Interim Transfer Date, it shall not, and shall cause each member in its respective Group not to, hire any person who at any time (i) during the six months prior to the Effective
Time, or (ii) during the 18 month period after the Interim Transfer Date, was an employee of any member of the other Group; provided that the foregoing restrictions shall not apply (i) to the hire of an Excluded Employee,
(ii) to the hire of any employee whose hire is agreed to in writing by Parent and SpinCo or (iii) to any Restricted Employee located in any jurisdiction where adherence to such restriction would violate applicable Law. 

(c) Transferred Employees. Subject to Section 2.5(b), nothing in this Section 2.5 shall preclude any member of the SpinCo
Group from hiring any Business Employees in accordance with the provisions of this Agreement. 
 (d) Remedies; Enforcement. Each Party
acknowledges and agrees that (i) injury to the employing Party or employing Group member from any breach by another Party or member of another Party’s Group of the obligations set forth in this Section 2.5 would be irreparable and
impossible to measure and (ii) the remedies at Law for any breach or threatened breach of this Section 2.5, including monetary damages, would therefore be inadequate compensation for any loss and the employing Party or employing Group
member shall have the right to specific performance and injunctive or other equitable relief in accordance with this Section 2.5, in addition to any and all other rights and remedies at Law or in equity, and all such rights and remedies shall
be cumulative. Each Party understands and acknowledges that the restrictive covenants and other agreements contained in this Section 2.5 are an essential part of this Agreement and the transactions contemplated hereby. It is the intent of the
Parties that the provisions of this Section 2.5 shall be enforced to the fullest extent permissible under applicable Law applied in each jurisdiction in which enforcement is sought. If any particular provision or portion of this
Section 2.5 shall be adjudicated to be invalid or unenforceable, such provision or portion thereof shall be deemed amended to the minimum extent necessary to render such provision or portion valid and enforceable, such amendment to apply only
with respect to the operation of such provision or portion thereof in the particular jurisdiction in which such adjudication is made. 

  
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 Section 2.6. Certain Tax Matters. 

With respect to compensation payable by Parent in 2021, including salary payable through the end of the last payroll period that ends prior to
the Interim Transfer Date and any bonus payable pursuant to Section 9.1, Parent shall, and shall cause its Affiliates to (i) be responsible for all employment, payroll, social security, disability, unemployment, workers’ compensation
or other similar Taxes, tax withholding or similar obligations, and all reporting obligations, in each case in respect of Transferred Employees, and (ii) furnish a Form W-2 or similar earnings statement
to all Transferred Employees employed in the United States and, to the extent applicable, shall furnish similar earnings statements to non-U.S. Transferred Employees in accordance with Law. With respect to
compensation payable by SpinCo in 2021 or thereafter, including salary payable from and after the payroll period that includes the Interim Transfer Date, SpinCo shall, and shall cause its Affiliates to (x) be responsible for all employment,
payroll, social security, disability, unemployment, workers’ compensation or other similar Taxes, tax withholding or similar obligations, and all reporting obligations, in each case in respect of Transferred Employees and (y) furnish a
Form W-2 or similar earnings statement to all Transferred Employees employed in the United States and, to the extent applicable, shall furnish similar earnings statements to
non-U.S. Transferred Employees in accordance with Law. 
 Section 2.7. Work Visas.  

With respect to each Transferred Employee who requires a work visa under applicable immigration Laws in order to obtain and maintain employment
with the applicable member of the SpinCo Group, the Parties acknowledge and agree that the member of the SpinCo Group that employs each such individual from and following the Interim Transfer Date (or such later date on which such person became a
Transferred Employee) is, to the extent applicable and necessary to maintain necessary work authorizations, intended to be a successor in interest to the member of the Parent Group that employed such individual prior to the transfer of employment
contemplated herein for purposes of applicable immigration Laws, including without limitation for purposes of sponsoring such Transferred Employees for his or her required work visas where applicable. 

ARTICLE III. 
 COLLECTIVE
BARGAINING AGREEMENTS AND OBLIGATIONS 
 Section 3.1. Assumption and Continuation of Agreements. 

(a) Successor Provisions of the Applicable CBA. SpinCo hereby acknowledges that Parent has informed SpinCo of the Successorship
Provisions. In accordance with such Successorship Provisions, as of the Assumption Date, Parent has caused or shall cause SpinCo, and SpinCo has agreed or agrees to assume all the obligations of the Parent under, and to be bound by, the Applicable
CBA until its expiration date and to treat all the affected employees of the Bargaining Unit in accordance with the terms of the Applicable CBA. SpinCo has agreed or agrees to honor all contractual agreements regarding seniority, including
provisions for lay off and recall, 

  
 15 

 
under the Applicable CBA and to make its hiring decisions with respect to Bargaining Unit positions according to the contractual rules that would apply as though such hiring were a decision to
recall or layoff Bargaining Unit employees). It is understood and agreed that (i) SpinCo will not be required to have the same number of employees in the Bargaining Unit as the Parent had immediately prior to the Assumption Date, and
(b) subject to otherwise applicable provisions of this Agreement, SpinCo may make changes in the benefit programs required by the Applicable CBA, provided that the benefits in all events continue to be substantially equivalent in the
aggregate to those provided under the Applicable CBA immediately prior to the Assumption Date. So long as the Union consents to SpinCo’s assumption of the obligations of the Parent under the Applicable CBA, the Union shall be a third party
beneficiary of the provisions of this Section 3.1. 
 (b) SpinCo Responsible as of the Assumption Date. As of the Assumption
Date, any and all binding obligations arising out of, relating to or resulting from the Applicable CBA or the Parent Plans with respect to Represented Employees shall be or become solely the obligations of the SpinCo Group; provided that
Parent or a Parent Plan shall be responsible for (1) all Liabilities attributable to any individual who is a Former Business Employee (except to the extent expressly provided with respect to reinstated Leave Employees in Section 2.3(a) or
reinstated Former Business Employees in Section 2.3(b)). 
 (c) Continuation of Compensation and Benefits for Transferred Employees
Who Are Represented Employees. As of the Assumption Date, SpinCo shall be responsible to, and shall, assure that the compensation, benefits, hours, terms and conditions of employment of Represented Employees shall continue to be governed by the
Applicable CBA. 
 (d) No Limitation on Bargaining Rights. Except as expressly provided in the Applicable CBA, nothing in this Article
III or elsewhere in this Agreement shall preclude SpinCo or, as applicable, any member of the SpinCo Group from bargaining in good faith, after the Assumption Date or the Effective Time, with the Union representing those Represented Employees. 

ARTICLE IV. 
 BENEFITS PLANS AND
PROGRAMS 
 Section 4.1. Continuation of Compensation and Benefits for Non-Represented
Transferred Employees. 
 With respect to Transferred Employees who are not Represented Employees, for a period of one year following the
Effective Time and subject to their continued employment with SpinCo or a member of the SpinCo Group, SpinCo shall, or shall cause another member of the SpinCo Group to, (i) pay all such non-represented
Transferred Employees at least the same rate of base salary as was paid to each such non-represented Transferred Employee by SpinCo or the SpinCo Group immediately prior to the Effective Time,
(ii) provide annual bonus opportunities to each such non-represented 

  
 16 

 
Transferred Employee at least the same target level as annual bonus opportunities made available to such non-represented Transferred Employee immediately
prior to the Effective Time and (iii) provide each such non-represented Transferred Employee and, if and to the extent applicable, SpinCo Dependents eligibility for SpinCo’s or any of its
Affiliates’, as applicable, employee benefit plans in accordance with their terms, as in effect as of the Effective Time (which benefits shall include, at a minimum, health insurance, a tax-qualified
defined contribution retirement plan, and paid time off for sick/medical reasons and personal reasons, including vacation), or such greater benefits as may be required by applicable Law. 

Section 4.2. No Participation in Parent Plans. 

Effective at the Interim Transfer Date or at such later date occurring on or before the Effective Time as the applicable SpinCo Plan shall
provide benefits to Transferred Employees (or persons who are expected to be Transferred Employees), (i) the participation of each member of the SpinCo Group in each of the (or the applicable) Parent Plans shall cease, and (ii) no
Transferred Employee shall be entitled to receive or accrue any benefits under any such Parent Plans with respect to services rendered or compensation earned after the Effective Time (or the earlier date the Transferred Employee becomes a
participant in the applicable SpinCo Plan). For the avoidance of doubt, to the extent that any Transferred Employee receives benefits pursuant to any program or arrangement established or maintained by any government or any subdivision or agency
thereof, SpinCo or the appropriate member of the SpinCo Group shall assume responsibility to contribute to or otherwise participate in (and Parent and its Affiliates will cease to have any obligation to contribute or participate in) such program or
arrangement as to each applicable Transferred Employee as of the Interim Transfer Date or such later date occurring before the Effective Time as of which the Transferred Employee becomes employed by any member of the SpinCo Group. 

Section 4.3. Establishment of SpinCo Mirror Plans. 

On or before, and effective as of no later than, the Interim Transfer Date, SpinCo shall have adopted the SpinCo Mirror Plans and the SpinCo
Welfare Plans, and shall have designated the other SpinCo Plans, that shall provide benefits to the Transferred Employees in the United States. As of no later than the Interim Transfer Date, each SpinCo Mirror Plan shall provide benefits that are
substantially identical in all material respects to the corresponding Parent Plan as in effect immediately prior to the Interim Transfer Date. Immediately after the Interim Transfer Date, the terms of the SpinCo Mirror Plans, as they relate to
Transferred Employees who are not Represented Employees, shall be governed by Section 4.4 and SpinCo shall have all rights described under the last sentence in Section 4.5. 

  
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 Section 4.4. Terms of Participation by Transferred Employees. 

Except as otherwise expressly provided herein, each of the SpinCo Plans is and shall be, with respect to Transferred Employees who are
participants in such plan, in all respects, the successor in interest to and shall recognize all rights and entitlements that are accrued as of the Interim Transfer Date, under the corresponding Parent Plan in which such Transferred Employee
participated prior to the Interim Transfer Date or as of the Effective Time, as applicable. With respect to Transferred Employees, each SpinCo Plan shall provide that all service, all compensation, and all other factors affecting benefit
determinations that, as of the Interim Transfer Date or the date on which the Effective Time occurs, as applicable, were recognized under the corresponding Parent Plan (for periods immediately before the Interim Transfer Date or the date on which
the Effective Time occurs, as applicable) have received or shall receive corresponding recognition and credit and have been or shall be taken into account under such SpinCo Plan to the same extent as though arising under such SpinCo Plan, except to
the extent that duplication of benefits would result. All beneficiary designations made by Transferred Employees under the corresponding Parent Plans have, to the extent reasonably practicable and permitted by applicable Law, been or shall be
transferred to and be in full force and effect under the corresponding SpinCo Plans until such beneficiary designations are replaced or revoked by the Transferred Employee who made the beneficiary designation. Prior to and after the Effective Time,
Parent and SpinCo agree to cooperate with each other and to provide, or cause to be provided, all reasonably requested data, documents, or other information necessary to avoid such duplication of benefits, to the extent permitted by applicable Law.
Notwithstanding anything to the contrary in this Agreement, where employee benefits provided to a Transferred Employee by a member of the Parent Group must be preserved or maintained pursuant to applicable Law (e.g., pursuant to the Transfer of
Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246)) or pursuant to an agreement with an employee representative body (e.g., a works council), such benefits shall be provided in accordance with such applicable Law or agreement.

 Section 4.5. Right to Amend SpinCo Plans. 

Subject to the Applicable CBA, nothing in this Agreement to the contrary, other than those provisions that expressly and specifically require
particular benefits to be maintained after the Effective Time and, in such event, only for the period so required, shall preclude SpinCo (or, as applicable, any member of the SpinCo Group) from amending, merging, modifying, terminating, eliminating,
reducing, or otherwise altering in any respect after the Effective Time any SpinCo Plan, any benefit under any SpinCo Plan or any trust, insurance policy or funding vehicle related to any SpinCo Plan. 

  
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 ARTICLE V. 

PENSION PLANS 
 Section 5.1.
Establishment of Pension Plans. 
 SpinCo or a member of the SpinCo Group has established defined benefit pension plans for the
benefit of Transferred Employees in the United States. One such plan, which is qualified under Section 401(a) of the Code, is and will be responsible for benefits of Transferred Employees who are participants and their beneficiaries in the
Parent Qualified Pension Plan (the “SpinCo Qualified Pension Plan”). Another plan, which is not qualified under Section 401(a) of the Code, is and will be responsible for benefits of participants and beneficiaries in the Parent
Non-Qualified Pension Plan who are Transferred Employees (the “SpinCo Non-Qualified Pension Plan”). The SpinCo Qualified Pension Plan and SpinCo Non-Qualified Pension Plan is identical in all material respects to the corresponding Parent Pension Plan in which the applicable Transferred Employees participated immediately prior to the Interim Transfer Date.
SpinCo is and shall be responsible for taking or causing to be taken all necessary, reasonable, and appropriate action to establish, maintain and administer the SpinCo Qualified Pension Plan, so that it qualifies under Section 401(a) of the
Code and the related trust thereunder is exempt from Federal income taxation under Section 501(a) of the Code. 
 Section 5.2.
Assumption of Parent Pension Plan Liabilities and Transfer of Assets from the Parent Pension Trust. 
 (a) Assumption of
Liabilities by SpinCo Pension Plans. Subject to clause (b) below, effective as of the Interim Transfer Date, all Liabilities under the Parent Qualified Pension Plan relating to Transferred Employees shall cease to be Liabilities of the
Parent Qualified Pension Plan and shall be assumed in full and in all respects by the SpinCo Qualified Pension Plan. 
 (b) Calculation of
Pension Plan Asset Allocation. As soon as practicable after the Interim Transfer Date, Parent’s actuary shall calculate and certify the amounts to be transferred in the aggregate from the Parent Qualified Pension Plan, which shall be equal
to the amount determined in accordance with the requirements of Section 414(l) of the Code and the regulations thereunder, based on the present value of benefits in respect of all Transferred Employees) and persons entitled to receive a benefit
in respect of such Transferred Employees, calculated applying the de minimis rule in the regulations promulgated under Section 414(l) of the Code (the “Pension Plan Asset Transfer Amount”). 

  
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 (c) Confirmation of Calculations. As soon as reasonably practicable after the
Effective Time, Parent’s actuary shall certify to SpinCo the Pension Plan Asset Transfer Amount to be transferred to the SpinCo Qualified Pension Plan. If requested by SpinCo within ten (10) days after such certification, Parent’s
actuary shall provide SpinCo’s actuary with a complete computer file containing the employee data and all other relevant information used by Parent’s actuary or otherwise reasonably requested by SpinCo’s actuary as needed to confirm
the Pension Plan Asset Transfer Amount. The Pension Plan Asset Transfer Amount shall become final and binding upon the Parties at the close of business on the one hundred twentieth (120th) day following Parent’s actuary’s certification to
SpinCo of the Pension Plan Asset Transfer Amount, unless prior to such one hundred twentieth (120th) day SpinCo delivers a written notice to Parent stating that SpinCo believes that the calculation of the Pension Plan Asset Transfer Amount
contains factual or mathematical errors or otherwise fails to comport with the Actuarial Assumptions. Any such notice shall state in reasonable detail the basis for such belief. Should SpinCo timely provide such notice, the Parties shall use their
reasonable best efforts to resolve promptly any disagreements regarding such calculations. In the event that the Parties cannot resolve such disagreements, the Parties shall jointly select an independent third actuary with whom none of the Parties
have a material relationship, who shall render its determination promptly (and in any case within thirty (30) days of being engaged to review the disputed matter). The third actuary’s determination shall be made in accordance with the
requirements of this Section 5.2(c) and shall be binding on the Parties. The third actuary shall be required to confirm the determination of the Parent actuary unless, and solely to the extent that, the third actuary determines that
(i) such determination contains factual or mathematical errors or (ii) the determination of the Parent actuary has no reasonable basis or otherwise fails to comport with the Actuarial Assumptions, in each case applying an abuse of
discretion standard. In no event (except for inaccuracy of the data provided) shall the amount determined by the third actuary be more than the amount claimed by SpinCo or less than the amount shown in the calculations of Parent’s actuary. Each
of the Parties shall bear the fees, costs and expenses of their respective actuaries, and the fees, costs and expense of the third actuary shall be borne one half by Parent and one half by SpinCo. Any decision by the third actuary shall be treated
as confidential information by the Parties, except as may be required to obtain judgment on the award or enforce performance thereof or except as disclosure may be required by law. 

(d) Transfer of Assets to SpinCo Pension Trust. 

(i) As soon as practicable and no more than thirty (30) days after the Effective Time, Parent shall cause to be
transferred from the trust established under the Parent Qualified Pension Plan (the “Parent Trust”) to a trust established in respect of the SpinCo Qualified Pension Plan (the “SpinCo Trust”), an initial amount of
assets (the “Initial Asset Transfer”). The amount of the Initial Asset Transfer shall be equal to 90% of the amount the enrolled actuary for the Parent Qualified Pension Plan determines in good faith to be the Pension Plan
Asset Transfer Amount. The amount determined under the preceding sentence shall accrue interest for the period commencing as of the date on which the Effective Time falls and ending on the date the Initial Asset Transfer is received by the SpinCo
Trust, at a rate equal to the discount rate that would apply for purposes of the Actuarial Assumptions as of such date. 

  
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 (ii) As soon as practicable and no more than ten (10) days after the
final calculation and certification of the Pension Plan Asset Transfer Amount, Parent will cause the Parent Trust to transfer to the SpinCo Trust assets in an amount equal to the Pension Plan Asset Transfer Amount with respect to the Parent
Qualified Pension Plan less the sum of (A) the Initial Asset Transfer, and (B) the aggregate amount of any benefit payments (the “Benefit Payments”), if any, made by the Parent Qualified Pension Plan in respect of Transferred
Employees from and after the Interim Transfer Date and prior to the time of transfer (the “Final Asset Transfer”). The amount determined under the preceding sentence shall accrue interest on the applicable amount from the Interim
Transfer Date determined in the manner described in Section 5.2(d)(i) above. If the sum of the Initial Asset Transfer plus the Benefit Payments exceeds the Pension Plan Asset Transfer Amount, then the SpinCo Trust shall return such excess,
which shall accrue interest determined in the manner described above from the date of the Initial Asset Transfer or the date of the Benefit Payment, as applicable, to the date of return, to the Parent Trust relating to the Parent Qualified Pension
Plan. 
 (iii) Except as may be mutually agreed by the Parties, the Initial Asset Transfer and the Final Asset Transfer shall
be made entirely in cash. 
 (e) To the extent that one or more Leave Employees or Former Business Employees shall become Transferred
Employees pursuant to Section 2.3 after the Interim Transfer Date, as soon as practicable after the first anniversary of the Effective Time (or such later date as of which a Former Business Employee shall become a Transferred Employee), the
parties shall effect a transfer of assets from the Parent Qualified Pension Plan to the SpinCo Qualified Pension Plan in respect of such newly characterized Transferred Employees, applying the principles set forth in this Section 5.2 in respect
of the Pension Assets Transfer Amount in regard to such Transferred Employees’ benefits accrued under the Parent Qualified Pension Plan as of the Effective Time. 

(f) At the same time as it certifies the Pension Asset Transfer Amount pursuant to Section 5.2(c), Parent’s actuary shall also
calculate and inform SpinCo of (i) the aggregate amount of the liabilities under the Parent Qualified Pension Plan for all participants thereunder (the “Total PBO Liabilities”) and (ii) the aggregate amount of the
liabilities in respect of the Transferred Employees under the Parent Qualified Pension Plan (the “SpinCo PBO Liabilities”), as of the Interim Transfer Date in each case using the Actuarial Assumptions but determined on a projected
benefit obligation basis (and not in 

  
 21 

 
accordance with the provisions of Section 414(l) of the Code). If requested by SpinCo within ten (10) days after the date Parent informs SpinCo of the amount of the Total PBO
Liabilities and SpinCo PBO Liabilities, Parent’s actuary shall provide SpinCo’s actuary with information used by Parent’s actuary to calculate such Liabilities. The calculation of the Total PBO Liabilities and the SpinCo PBO
Liabilities shall become final and binding upon the Parties at the close of business on the one-hundredth and twentieth (120th) day following SpinCo’s receipt of Parent’s actuary’s delivery to
SpinCo of the Total PBO Liabilities and the SpinCo PBO Liabilities, unless prior to such one hundred and twentieth (120th) day SpinCo delivers a written notice to Parent stating that SpinCo believes that the calculation of either the Total
PBO Liabilities or the SpinCo PBO Liabilities contains factual or mathematical errors or otherwise fails to comport with the Actuarial Assumptions and states in reasonable detail the basis for such belief. In the event that SpinCo’s actuary
shall deliver such a written notice to Parent, the Parties shall follow the procedures substantially identical to those set forth in Section 5.2(c) with regard to the Pension Plan Asset Transfer Amount to determine the final amount related to
the Total PBO Liabilities or the SpinCo PBO Liabilities, as applicable. 
 (g) Once the amount of the Total PBO Liabilities and the SpinCo
PBO Liabilities are final, the Parties shall then determine the percentages derived by dividing: 
 (i) (A) the
remainder of (1) the fair market value of the assets of the Parent Qualified Plan as of the Interim Transfer Date minus (2) the final Pension Asset Transfer Amount (such remainder, the “Parent Qualified Plan Net Assets”)
by (B) the remainder of (1) the Total PBO Liabilities minus (2) the SpinCo PBO Liabilities (such resulting percentage, the “Parent PBO Funding Percentage”); and 

(ii) (A) the final Pension Plan Asset Transfer Amount by (B) the SpinCo PBO Liabilities (such resulting percentage,
the “SpinCo PBO Funding Percentage”). 
 If the Parent PBO Funding Percentage exceeds the SpinCo PBO Funding Percentage, the Parent shall
pay to SpinCo, within thirty (30) days after such percentages are determinable, an amount in cash equal to the amount that would be required to be added to the final Pension Plan Asset Transfer Amount to cause the SpinCo PBO Funding Percentage
to equal the Parent PBO Funding Percentage. If the SpinCo PBO Funding Percentage exceeds the Parent PBO Funding Percentage, SpinCo shall pay to Parent, within thirty (30) days after such percentages are determinable, an amount in cash equal to
the amount that would be required to be added to the Parent Qualified Plan Net Assets to cause the Parent PBO Funding Percentage to equal the SpinCo PBO Funding Percentage. 

  
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 Section 5.3. Assumption of Liabilities Under Parent
Non-Qualified Pension Plan and Payment by Parent of Accrued Liabilities. 
 (a) SpinCo Non-Qualified Plan to Assume Liabilities. Effective as of the Effective Time, all Liabilities under the Parent Non-Qualified Pension Plan relating to persons who are
Transferred Employees shall cease to be Liabilities of the Parent Non-Qualified Pension Plan and shall be assumed in full and in all respects by the SpinCo Non-Qualified
Pension Plan. SpinCo is and shall be responsible for taking or causing to be taken all necessary, reasonable, and appropriate action to establish, maintain and administer the SpinCo Non-Qualified Pension Plan
and from and after the Interim Transfer Date, shall be solely responsible for all ongoing rights of or relating to such Transferred Employees for future participation in the SpinCo Non-Qualified Pension Plan.

 (b) Determination of Parent Non-Qualified Pension Plan Liabilities. As soon as reasonably
practicable after the Effective Time, Parent’s actuary shall certify to SpinCo the Liabilities, individually and in the aggregate, in respect of the Transferred Employees under the Parent Non-Qualified
Pension Plan at the Interim Transfer Date, based on the present value of benefits in respect of each such Transferred Employees at the Interim Transfer Date (the “Parent Non-Qualified Pension Plan
Liabilities”). If requested by SpinCo within ten (10) days after the date Parent certifies to SpinCo the amount of the Parent Non-Qualified Pension Plan Liabilities, Parent’s actuary shall
provide SpinCo’s actuary with a complete computer file containing the employee data and all other relevant information used by Parent’s actuary or otherwise reasonably requested by SpinCo’s actuary as needed to calculate the Parent Non-Qualified Pension Plan Liabilities (including data and information related to such calculation and otherwise appropriate for SpinCo’s actuary to consider, and any other data and information reasonably
requested by SpinCo’s actuary). The calculation of the Parent Non-Qualified Pension Plan Liabilities shall become final and binding upon the Parties at the close of business on the one-hundred twentieth (120th) day following Parent’s actuary’s certification to SpinCo of the Parent Non-Qualified Pension Plan Liabilities to make its determination
and any additional information reasonably requested by SpinCo’s actuary, unless prior to such one hundred twentieth (120th) day SpinCo delivers a written notice to Parent stating that SpinCo believes that the calculation of the Parent Non-Qualified Pension Plan Liabilities contains factual or mathematical errors or otherwise fails to comport with the Actuarial Assumptions and states in reasonable detail the basis for such belief. In the event
that SpinCo’s actuary shall deliver such a written notice to Parent, the Parties shall follow the procedures substantially identical to those set forth in Section 5.2(c) with regard to the Pension Plan Asset Transfer Amount to determine
the final amount related to the Parent Non-Qualified Pension Plan Liabilities. 

  
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 (c) Reimbursement Process for Parent
Non-Qualified Pension Plan Liabilities. As of June 30 and January 31 each calendar year, and/or such other date or dates as may be agreed between the Parties, starting in the calendar year
following the Effective Time, SpinCo shall send Parent a statement showing all distributions made in the period immediately preceding the date covered through the last statement (or from the Effective Time with respect to the first such statement)
in respect of the benefits paid to all Transferred Employees under the SpinCo Non-Qualified Pension Plan, showing in adequate detail the amount of payments made in respect to each such Transferred Employee and
the portion thereof attributable to such Transferred Employee’s entitlement under the Parent Non-Qualified Pension Plan Liabilities and the method for such attribution. Within 30 days of the receipt of
such statement, Parent shall pay to SpinCo the amount described in Section 5.3(d), provided that, in no event shall Parent be required to pay SpinCo an amount (i) in respect of any Transferred Employee, greater than the accrued benefit of
such Transferred Employee at the Interim Transfer Date taken into account in determining the Parent Non-Qualified Pension Plan Liabilities or (ii) in the aggregate greater than the amount of the Parent Non-Qualified Pension Plan Liabilities as of the Interim Transfer Date. Notwithstanding the forgoing, (x) at the sole discretion of Parent, Parent may at any time and from time to time prepay all or any portion
of the aggregate amount that it would otherwise be required to pay SpinCo in respect of the Transferred Employees under this Section 5.3(c) in respect of the Parent Non-Qualified Pension Plan Liabilities,
and unless Parent agrees to another offset schedule, any such prepaid amount shall be applied to offset any amounts that Parent would otherwise be required to pay hereunder as of the next semi-annual statement and each subsequent statement until
fully applied to such future payments and (y) any amounts paid under the SpinCo Non-Qualified Pension Plan which SpinCo fails to include in a statement of payments that is delivered to Parent within
fourteen months of the actual payment date shall no longer be subject to reimbursement by Parent under this Section 5.3(c) and shall remain the sole responsibility of SpinCo. Any payment made by Parent pursuant this Section 5.3(c) shall be
made for the account of SpinCo or its Subsidiary and not for the benefit of any Transferred Employee participating in the SpinCo Non-Qualified Pension Plan, each of whom shall remain an unsecured creditor of
SpinCo or its applicable Subsidiary in respect of his or her SpinCo Non-Qualified Pension Plan benefit. 

(d) Reimbursement Determined on an After-Tax Basis. The amount payable by Parent pursuant to
Section 5.3(c) with respect to each statement provided by SpinCo shall equal (i) the amount of the distributions made to Transferred Employees under the SpinCo Non-Qualified
Pension Plan listed on the applicable statement (reduced as a result of any applicable limitations described in Section 5.3(c)), less (ii) the amount of the reduction in U.S. federal and state income Taxes payable by SpinCo as a
result of the payment of such distributions. For purposes of this Section 5.3(d), the amount of the reduction in U.S. federal and state income Taxes payable by SpinCo as a result of such distributions shall be deemed to
equal (x) the amount of such distributions under the SpinCo Non-Qualified Pension Plan reflected on such statement, multiplied by (y) the highest marginal U.S. federal income Tax rate
applicable to U.S. corporations on the date such distributions were paid plus the applicable weighted average state income Tax rate on the date such distributions were paid. 

  
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 Section 5.4. International Pension Plans. 

Except as otherwise provided herein, at the Effective Time (or at any earlier date required at applicable law), SpinCo shall or shall cause
another member of the SpinCo Group to assume each Parent Plan providing pension or retirement benefits to Business Employees in jurisdictions outside of the United States. Notwithstanding the foregoing, Parent shall or shall cause a member of the
Parent Group to retain the liabilities to Business Employees who do not become Transferred Employees under the Parent Plans in which employees located in Italy or Spain participate as of immediately prior to the Effective Time. 

Section 5.5. Continuation of Elections and Application to SpinCo Dependents. 

To the extent (a) reasonably practicable and (b) that the relevant information has been made available to SpinCo, SpinCo shall cause
the SpinCo Qualified Pension Plan and the SpinCo Non-Qualified Pension Plan to recognize and maintain all existing elections, including, but not limited to, beneficiary designations, payment forms and other
rights of alternate payees under qualified domestic relation orders as were in effect under the corresponding Parent Qualified Pension Plan and Parent Non-Qualified Pension Plan immediately prior to the
Interim Transfer Date, unless and until changed or modified in accordance with the terms of the applicable plan or otherwise in accordance with applicable law. To the extent applicable, the provisions of this Article V shall also apply to SpinCo
Dependents. From the Effective Time, Parent shall cooperate with SpinCo to provide any reasonably requested information regarding such administrative matters. 

ARTICLE VI. 
 HEALTH AND WELFARE

 Section 6.1. Parent Health and Welfare Plans.  

(a) Parent or one or more of the Parent Subsidiaries maintain or contribute to health and welfare plans. The health and welfare plans include,
but are not limited to, plans providing severance and active employee health, dental, disability and life insurance benefits, for the benefit of eligible employees and certain former employees, including certain Former Business Employees who have
retired as of the date of the Separation Agreement or will retire prior to the Effective Time (the “Parent Welfare Plans”). As of the Interim Transfer Date, each person who was a Transferred Employee or SpinCo Dependent on such date
ceased to be covered under the Parent Welfare Plans. Parent and the Parent Welfare Plans are and shall continue to be responsible for all Liabilities relating to (i) Former Business Employees (except to the extent expressly

  
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provided with respect to reinstated Leave Employees in Section 2.3(a) or reinstated Former Business Employees in Section 2.3(b)), (ii) Retained Employees and (iii) Transferred
Employees or SpinCo Dependents with respect to, in each case, (A) medical, vision, or dental plan claims in respect of services that were performed or goods provided prior to the Interim Transfer Date (or, if later, the date on which such
individual becomes an employee of a member of the SpinCo Group), (B) life insurance claims in respect of deaths occurring prior to the Interim Transfer Date (or, if later, the date on which such individual becomes an employee of a member of the
SpinCo Group), and (C) any payments due any Transferred Employees under the terms of a Parent disability plan with respect to any period prior to the Interim Transfer Date (or, if later, the date on which such individual becomes an employee of
a member of the SpinCo Group). 
 (b) Except for the Parent FSA account balances described in Section 6.2(c), nothing in this Agreement
shall require Parent or any other Parent Group member or any Parent Welfare Plans to transfer assets or reserves with respect to the Parent Welfare Plans, including, but not limited to, any plan providing severance, health, dental or life insurance
benefits, to SpinCo, the Transferred Entities, any other member of the SpinCo Group, or the SpinCo Welfare Plans. 
 Section 6.2.
Adoption of SpinCo Health and Welfare Plans.  
 (a) Establishment of Welfare
Plans. From and after the Interim Transfer Date, and subject to the provisions of Section 3.1 and Section 4.1, SpinCo has maintained and shall continue to maintain or cause to be maintained health and welfare plans, which (i) with
respect Transferred Employees in the United States other than Represented Employees, includes, but is not limited to, plans providing severance and active health, dental, disability and life insurance benefits that provide benefits to Transferred
Employees, (ii) with respect to Represented Employees is as required pursuant to the terms of an Applicable CBA, and (iii) with respect to employees outside of the United States, is as required by Law (the “SpinCo Welfare
Plans”). 
 (b) Terms of Participation in SpinCo Welfare Plans. From and after the Interim Transfer Date, SpinCo has caused
and shall continue to cause the SpinCo Welfare Plans to (i) waive all limitations as to preexisting conditions, exclusions, service conditions and waiting period limitations, and any evidence of insurability requirements applicable to any such
Transferred Employees and SpinCo Dependents other than such limitations, exclusions, and conditions that were in effect with respect to Transferred Employees and SpinCo Dependents as of the Interim Transfer Date, in each case under and in accordance
with the terms of the corresponding Parent Welfare Plans and (ii) honor any deductibles, out-of-pocket maximums and
co-payments incurred by Transferred Employees and SpinCo Dependents under and in accordance with the terms of the corresponding Parent Welfare Plans in satisfying the applicable deductibles, out-of-pocket expenses or co-payments under such Parent Welfare Plans for the calendar year

  
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in which the Effective Time occurs. SpinCo has caused and shall continue to cause the SpinCo Welfare Plans to recognize and maintain all existing elections, including, but not limited to,
beneficiary designations, as were in effect under the corresponding Parent Welfare Plans, unless and until changed or modified in accordance with the terms of the applicable plan or otherwise in accordance with applicable law. To the extent
applicable, the provisions of this Section 6.2(b) shall also apply to SpinCo Dependents. From the Interim Transfer Date, Parent shall cooperate with SpinCo to provide any reasonably requested information regarding such administrative matters,
to the extent permitted by applicable Law. 
 (c) Transfer of Parent FSA Assets. Parent will make available to SpinCo, prior to the
Effective Time, a list of individuals who will become or continue to be Transferred Employees as of the Effective Time and who are participants in the Parent FSAs (the “FSA Participants”), together with the elections made prior to
the Interim Transfer Date with respect to such accounts through the Interim Transfer Date. 
 (i) SpinCo shall take all
actions necessary and legally permissible to ensure that as of the Interim Transfer Date, it has adopted one or more SpinCo Welfare Plans in which Parent FSA Participants may participate and that constitutes a Code Section 125 plan
(“SpinCo FSA”). SpinCo shall further take all actions necessary and legally permissible to amend SpinCo’s FSA to provide that as of the Interim Transfer Date and for the plan year in which the Interim Transfer Date occurs, but
not for any specific time thereafter, subject to any collective bargaining obligations, (A) the FSA Participants shall become participants in SpinCo’s FSA, with a deemed effective date as of the beginning of the applicable Parent
FSA’s plan year and at the level of coverage provided under the applicable Parent FSA, and (B) the FSA Participants’ salary reduction elections shall be taken into account for the remainder of SpinCo’s FSA plan year as if made
under SpinCo’s FSA. The applicable Parent shall reimburse medical expenses incurred by the FSA Participants at any time during the applicable Parent FSA’s plan year (including, but not limited to, claims incurred prior to the Interim
Transfer Date but unpaid prior to the Interim Transfer Date), up to the amount of the FSA Participants’ election and reduced by amounts previously reimbursed by the applicable Parent FSA. SpinCo’s FSA shall reimburse medical expenses
incurred by the FSA Participants from and after the Interim Transfer Date, up to the amount of the FSA Participants’ election and reduced by amounts previously reimbursed by the applicable Parent FSA and the SpinCo FSA. 

(ii) Parent shall take all actions necessary and legally permissible to amend each of the Parent FSAs to provide that the FSA
Participants shall cease to be eligible to make contributions to the applicable Parent FSA as of the Interim Transfer Date. 

(iii) As soon as practicable following the Effective Time, Parent shall transfer to SpinCo, and SpinCo agrees to accept, those
amounts (plus all related individual participant records and accountings) which represent the debit and credit balances under the Parent FSAs of the FSA Participants and the transfer of such amounts shall take into account on a net basis
participants’ payroll deductions and claims paid through the Effective Time in respect of expenses incurred through the day immediately prior to the Interim Transfer Date. 

  
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 Section 6.3. COBRA and HIPAA. 

From and after the Interim Transfer Date, SpinCo has been and shall continue to be responsible for administering compliance with the
continuation coverage requirements for “group health plans” under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and the requirements under the Health Insurance Portability and
Accountability Act of 1996 with respect to Transferred Employees and any SpinCo Dependents for the period after the Interim Transfer Date. Parent will retain any Parent Liabilities under the Parent Welfare Plans to provide COBRA coverage to any
Former Business Employee and any of his or her eligible dependents who incurred a qualifying event under COBRA at or prior to the Interim Transfer Date and who is still eligible to receive such continuing coverage as of or after the Interim Transfer
Date. 
 Section 6.4. Workers’ Compensation Claims. 

All Liabilities for any workers’ compensation claims or coverage, whether arising under any Law of any state, territory, or possession of
the United States or the District of Columbia or otherwise (“Workers’ Compensation Claims”), made by current or former employees (including Transferred Employees) of either Party arising out of or related to the operation of
the SpinCo Business (including SpinCo Discontinued Operations or SpinCo Divested Operations), which claims shall have been made not later than two years after the Effective Time, but which relate in whole or in part to injuries or occurrences
arising prior to the Effective Time, shall be covered, to the extent covered under any Parent Policy, under and in accordance with the applicable provisions of such Parent Policy (“Insured WC Claims”) or, if applicable, as otherwise
required at applicable Law. Except to the extent provided in the foregoing sentence, from and after the Effective Time, SpinCo or the appropriate member of the SpinCo Group shall assume and have all Liabilities for any Workers’
Compensation Claims made by current or former employees (including Transferred Employees) of either Party arising out of or related to the operation of the SpinCo Business, SpinCo Discontinued Operations or SpinCo Divested Operations, even if such
claims relate in whole or in part to injuries, conditions or events arising or occurring on or prior to the Effective Time. Parent or the appropriate member of the Parent Group shall be responsible for the administration of any Insured WC
Claims on behalf of all parties against which such claim is made. With regard to any Workers’ Compensation Claims that are not Insured WC Claims, each Party shall be fully responsible for the administration of all claims for which it has
responsibility pursuant to the foregoing provisions of this Section 6.4. If SpinCo is unable to assume any Liability otherwise allocated to it hereunder or the administration 

  
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of any such claim because of the operation of applicable state Law or for any other reason, Parent shall retain such Liabilities and SpinCo shall reimburse and otherwise fully indemnify Parent
for all such Liabilities (subject to reduction for any amounts payable from insurance), including, but not limited to, the costs of administering the plans, programs or arrangements under which any such Liabilities have accrued or otherwise arisen,
and SpinCo shall enter into reasonable arrangements acceptable to Parent (such acceptance not to be unreasonably withheld) to secure the payment of such Liabilities. All reimbursement amounts shall be paid in accordance with the procedure set
forth in Section 6.4. Notwithstanding anything to the contrary, this Section 6.4 shall not apply to claims arising out of Latent Injury Liabilities, which shall be governed by the Separation Agreement. 

Section 6.5. Leave of Absence Programs. 

From and after the Interim Transfer Date, SpinCo is and shall continue to be responsible for the administration and compliance of all leaves of
absences and related programs (including, but not limited to, compliance with the United Services Employment and Reemployment Rights Act, the Family and Medical Leave Act, the Americans with Disabilities Act or similar state or other Laws or with
the Applicable CBA) affecting Transferred Employees for the period at and after the Interim Transfer Date. 
 Section 6.6. Time-Off Benefits.  
 The SpinCo Group has
credited and shall continue to credit each Transferred Employee with the amount of accrued but unused vacation time, sick time and other time-off benefits (together the
“Time-Off Benefits”) as such individual had with the Parent Group or the Transferred Entities as of the Interim Transfer Date (or, if later, the date on which such individual becomes an
employee of a member of the SpinCo Group) and has provided and shall continue to provide such individuals with the same rights, benefits, and entitlements in respect to such Time-Off Benefits as they were
entitled to from the Parent Group or the Transferred Entities as of the Interim Transfer Date (or, if later, the date on which such individual becomes an employee of a member of the SpinCo Group), provided that nothing in this Section 6.6
requires the SpinCo Group to apply the accrual rules for Time-Off Benefits of Parent Group or the Transferred Entities in effect immediately prior to the Interim Transfer Date with respect to service of
Transferred Employees after the Interim Transfer Date. 

  
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 ARTICLE VII. 

SAVINGS PLANS 
 Section 7.1.
Adoption of SpinCo Savings Plans. 
 (a) From and after the Interim Transfer Date, SpinCo has or has caused the appropriate member of
the SpinCo Group to establish a defined contribution plan and corresponding trust effective as of the Interim Transfer Date for the benefit of Transferred Employees who participate in a Parent Qualified Savings Plan immediately prior to the Interim
Transfer Date (the “SpinCo Qualified Savings Plan”). The SpinCo Qualified Savings Plan (i) meets and shall continue to meet all requirements of applicable Law, including, but not limited to, Section 411(d)(6) of the Code,
and (ii) accept the transfer of assets from the Parent Qualified Savings Plans contemplated by Section 7.2. As of and from the Interim Transfer date, SpinCo has been and shall continue to be responsible for taking or causing to be taken
all necessary, reasonable and appropriate action to establish, maintain and administer the SpinCo Qualified Savings Plan so that it qualifies under Section 401(a) of the Code and the related trusts thereunder are exempted from Federal income
taxation under Section 501(a)(1) of the Code. 
 (b) From and after the Interim Transfer Date, SpinCo or a member of the SpinCo Group
has established a defined contribution plan for the benefit of Transferred Employees who participated in the Parent Non-Qualified Savings Plan immediately prior to the Interim Transfer Date (the
“SpinCo Non-Qualified Savings Plan”). The SpinCo Non-Qualified Savings Plan is not and shall not be qualified under Section 401(a) of the Code, and
will accept the transfer of all Liabilities under the Parent Non-Qualified Savings Plan contemplated by Section 7.3. 

Section 7.2. Assumption of Liabilities and Transfer of Assets With Respect to Parent Qualified Savings Plans. 

(a) Effective as of the Interim Transfer Date, but subject to the asset transfer specified in Section 7.2(b) below, the SpinCo Qualified
Savings Plan shall assume and be solely responsible for all Liabilities for or relating to Transferred Employees under the Parent Hourly Savings Plan. Effective as of the Interim Transfer Date, but subject to the asset transfer specified in
Section 7.2(b) below, the SpinCo Qualified Savings Plan shall assume and be solely responsible for all Liabilities for or relating to Transferred Employees under the Parent Salaried Savings Plan. SpinCo shall be solely responsible for all
ongoing rights of or relating to Transferred Employees for future participation (including, but not limited to, the right to make contributions through payroll deductions) in the SpinCo Qualified Savings Plan. 

  
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 (b) As soon as practicable and no more than thirty (30) days after the Effective Time,
Parent shall cause the account balances (including, but not limited to, any outstanding loan balances) in each Parent Qualified Savings Plan attributable to Transferred Employees to be transferred to the SpinCo Qualified Savings Plan in the form of
(x) promissory notes, to the extent of Transferred Employees’ account balances that represent outstanding loans; (y) an in-kind transfer of securities, to the extent of Transferred
Employees’ account balances that are held through the open brokerage window under a Parent Qualified Savings Plan and to the extent the SpinCo Qualified Savings Plan is capable of accepting such in-kind
transfer; or (z) cash, to the extent of account balances of Transferred Employees do not represent outstanding loans of Transferred Employees or securities transferred in-kind pursuant to clause (y).
SpinCo shall cause the SpinCo Qualified Savings Plan to accept such transfer of accounts and underlying assets and, effective as of the date of such transfer, to assume and to fully perform pay or discharge, all obligations of the Parent Qualified
Savings Plans relating to the accounts of Transferred Employees (to the extent those assets related to those accounts are actually transferred from a Parent Qualified Savings Plan). The transfers shall be conducted in accordance with
Section 414(l) of the Code, Treasury Regulation Section 1.414(l) -1, and Section 208 of ERISA. 

Section 7.3. Treatment of Parent Non-Qualified Savings Plan Accounts. 

(a) Assumption of Liabilities under Parent Non-Qualified Savings Plan. Effective as of the
Interim Transfer Date, all Liabilities under the Parent Non-Qualified Savings Plan relating to persons who are Transferred Employees shall cease to be Liabilities of the Parent
Non-Qualified Savings Plan and shall be assumed in full and in all respects by the SpinCo Non-Qualified Savings Plan. SpinCo is and shall be responsible for taking or
causing to be taken all necessary, reasonable, and appropriate action to establish, maintain and administer the SpinCo Non-Qualified Savings Plan and from and after the Interim Transfer Date shall be solely
responsible for all ongoing rights of or relating to Transferred Employees for future participation in the SpinCo Non-Qualified Savings Plan. 

(b) Determination of Parent Non-Qualified Savings Plan Liabilities. As soon as practicable after
the Effective Time, Parent shall calculate and certify to SpinCo the Liabilities, individually and in the aggregate, in respect of the Transferred Employees who were participants in the Parent Non-Qualified
Savings Plan at the Interim Transfer Date, based on the value of the notional account balances in respect of each such Transferred Employees as of the Interim Transfer Date (the “Parent Non-Qualified
Savings Plan Liabilities”). Within ten (10) days after the date Parent certifies to SpinCo the amount of the Parent Non-Qualified Savings Plan Liabilities, Parent’s record keeper
shall provide SpinCo or its record keeper with a complete computer file containing the employee data and all other relevant information used to calculate the Parent Non-Qualified Savings Plan Liabilities. The
calculation of the Parent Non-Qualified Savings Plan Liabilities shall become final and binding upon the Parties at the close of business on the one hundred twentieth (120th) day following SpinCo’s
receipt of such computer file, unless prior to such one hundred twentieth (120th) day SpinCo delivers a written 

  
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notice to Parent stating that SpinCo believes that the calculation of the Parent Non-Qualified Savings Plan Liabilities contains factual or mathematical
errors. In the event that SpinCo shall deliver such a written notice to Parent, the Parties shall follow the procedures substantially identical to those set forth in Section 5.2(c) with regard to the Pension Plan Asset Transfer Amount to
determine the final amount related to the Parent Non-Qualified Savings Plan Liabilities (using such appropriate third party plan administrator rather than an actuary as the arbitrator of any unresolved
dispute). 
 (c) Reimbursement Process for Parent Non-Qualified Savings Plan Liabilities. 

As of June 30 and January 31 each calendar year, or such other times as may be agreed between the Parties, starting in the calendar
year following the Effective Time, SpinCo shall send Parent a statement showing all distributions made in the immediately preceding six month period (or from the Effective Time with respect to the first such statement) in respect of the benefits
paid to all Transferred Employees under the SpinCo Non-Qualified Savings Plan, showing in adequate detail the amount of payments made in respect to each such Transferred Employee. Within 30 days of the receipt
of such statement, Parent shall pay to SpinCo the amount described in Section 7.3(d), provided that, in no event shall Parent be required to pay SpinCo an amount (i) in respect of any Transferred Employee, an amount greater than the
notional account balances of such Transferred Employee as of the Interim Transfer Date taken into account in determining the Parent Non-Qualified Savings Plan Liabilities or (ii) in the aggregate greater
than the amount of the Parent Non-Qualified Savings Plan Liabilities as of the Interim Transfer Date. Notwithstanding the forgoing, (x) at the sole discretion of the Parent, the Parent may at any time and
from time to time prepay all or any portion of the aggregate amount that it would otherwise be required to pay SpinCo in respect of the Transferred Employees under this Section 7.3(c) in respect of the Parent
Non-Qualified Savings Plan Liabilities, and unless Parent agrees to another offset schedule, any such prepaid amount shall be applied to offset any amounts that Parent would otherwise be required to pay
hereunder as of the next semi-annual statement and each subsequent statement until fully applied to such future payments and (y) any amounts paid under the SpinCo Non-Qualified Savings Plan which SpinCo
fails to include in a statement of payments that is delivered to Parent within fourteen months of the actual payment date shall no longer be subject to reimbursement by Parent under this Section 7.3(c) and shall remain the sole responsibility
of SpinCo. Any payment made by Parent pursuant this Section 7.3(c) shall be made for the account of SpinCo or its Subsidiary and not for the benefit of any Transferred Employee who is a Participant in the SpinCo
Non-Qualified Savings Plan, each of whom shall remain an unsecured creditor of SpinCo or its applicable Subsidiary in respect of his or her SpinCo Non-Qualified Savings
Plan benefit.     

  
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 (d) Reimbursement Determined on an After-Tax
Basis. The amount payable by Parent pursuant to Section 7.3(c) with respect to each statement provided by SpinCo shall equal (i) the amount of the distributions made to Transferred Employees under the SpinCo Non-Qualified Savings Plan listed on the applicable statement (reduced as a result of any applicable limitations described in Section 7.3(c)), less (ii) the amount of the reduction in U.S. federal
and state income Taxes payable by SpinCo as a result of the payment of such distributions. For purposes of this Section 7.3(d), the amount of the reduction in U.S. federal and state income Taxes payable by SpinCo as a
result of such distributions shall be deemed to equal (x) the amount of such distributions under the SpinCo Non-Qualified Savings Plan reflected on such statement, multiplied by (y) the
highest marginal U.S. federal income Tax rate applicable to U.S. corporations on the date such distributions were paid plus the applicable weighted average state income Tax rate on the date such distributions were paid. 

Section 7.4. Continuation of Elections and Application to SpinCo Dependents. 

SpinCo has caused and shall continue to cause the SpinCo Qualified Savings Plans and the SpinCo
Non-Qualified Savings Plan to recognize and maintain all elections in effect as of immediately prior to the Interim Transfer Date, including, but not limited to, beneficiary designations, payment forms and
other rights of alternate payees under qualified domestic relation orders as were in effect under the corresponding Parent Qualified Savings Plan and Parent Non-Qualified Savings Plan, unless and until changed
or modified in accordance with the terms of the applicable plan or otherwise in accordance with applicable law. To the extent applicable, the provisions of this Article VII shall also apply to SpinCo Dependents. Parent shall cooperate with SpinCo to
provide any reasonably requested information regarding such administrative matters. 
 ARTICLE VIII. 

EQUITY BASED INCENTIVE AWARDS 

Section 8.1. Treatment of Outstanding PSP Awards by Parent. 

The target number of shares of Parent stock subject to each outstanding performance share plan award held by a Transferred Employee at the
Effective Time shall be multiplied by the percentage determined by the quotient of (i) the number of months in the performance period applicable to such award that has been completed on the day immediately prior to the Effective Time divided by
(ii) the number of months in the entire performance period, as determined by Parent in accordance with the Parent stock incentive plan. Each such outstanding performance share award shall remain outstanding as to such adjusted target number of
shares of Parent common stock (the “Pro-Rated Parent Award”), and eligible to vest and be paid based upon the achievement of the applicable performance criteria (including in respect of any
dividend equivalents granted in connection with such award), at the same time and subject to the same terms and conditions as though the Transferred Employee had remained employed by Parent through the date the performance share awards, in respect
of such performance period, are payable to employees of Parent. The target number of shares of Parent stock subject to each outstanding performance share plan award held by a Transferred Employee at the Effective Time in excess of the target number
of shares subject to the Pro-Rated Parent Award shall be cancelled and forfeited as of the Effective Time (the “Cancelled Parent PSP Shares”). 

  
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 Section 8.2. Treatment of Outstanding Parent Restricted Share Unit and Restricted
Stock Awards. 
 Each outstanding award of restricted shares of Parent common stock and each award that constitutes a promise to deliver
shares of Parent common Stock held by a Transferred Employee at the Effective Time (other than performance share plan awards which shall be treated as set forth in Section 8.1) shall be cancelled and forfeited as of the Effective Time (the
“Cancelled Parent Restricted Shares”). 
 Section 8.3. Replacement Awards for Cancelled Shares. 

Unless otherwise agreed between Parent and a Transferred Employee prior to the date on which the Effective Time falls, effective as of the
Effective Time, SpinCo shall grant each Transferred Employee who forfeits Cancelled Parent PSP Shares or Cancelled Parent Restricted Shares one or more replacement awards in respect of such cancelled shares having the terms and conditions set forth
in this Section 8.3. With respect to Cancelled Parent Restricted Shares, SpinCo shall grant a replacement award in respect of the number of shares of SpinCo common stock determined in accordance with Section 8.4 that shall have terms and
conditions substantially identical to those applicable to the Cancelled Parent Restricted Shares, except that SpinCo shall replace Parent for all purposes of such award and continuing service with SpinCo and its affiliates shall determine the right
of the Transferred Employee to vest in (or receive a payment in respect of) the shares of SpinCo common stock subject to such award. With respect to Cancelled Parent PSP Shares, SpinCo shall grant a replacement award for the number of shares of
SpinCo common stock as determined in accordance with Section 8.4 that shall be eligible to vest and become payable in three equal installments on each of the three payment dates applicable to the Cancelled PSP Shares to which such replacement
award relates, based solely upon the continued performance of services with SpinCo and its affiliates through the applicable vesting date, and have other terms and conditions substantially equivalent to the terms and conditions applicable under the
corresponding Parent performance share plan award. 
 Section 8.4. Establishing the Number of Shares Subject to SpinCo Awards.

 The number of shares of SpinCo common stock to be subject to any replacement award granted in accordance with Section 8.3 shall be
equal to the quotient of (i) the product of (A) the Parent Cancelled Share Value multiplied by (B) the number of cancelled shares of Parent common stock which the applicable SpinCo award is replacing, divided by (ii) the SpinCo
Replacement Share Value. 

  
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 ARTICLE IX. 

SHORT TERM INCENTIVES AND SALES COMMISSION PROGRAMS 

Section 9.1. Management Incentive Plan. 

Except with respect to any Transferred Employee who during 2021 held a title with Parent of at least Senior Vice President and in all cases as
set forth under the terms and conditions of the Management Incentive Plan, Parent shall pay to each Transferred Employee participating in the Management Incentive Plan immediately prior to the Effective Time a cash bonus amount, not later than 30
days following the Effective Time, equal to such Transferred Employee’s target annual incentive opportunity under such plan for 2021, multiplied by a fraction (the “Pro-Rated Fraction”),
the numerator of which is the number of calendar months in 2021 in which such Transferred Employee worked 15 days or more, determined through and including the day immediately prior to the Effective Time, and the denominator of which is 12. With
respect to any Transferred Employee who during 2021 held a title with Parent of at least Senior Vice President and in all cases as set forth under the terms and conditions of the Management Incentive Plan, Parent shall pay to each such Transferred
Employee, at the same time that bonuses are paid generally to other officers of Parent, an amount in respect of his or her participation in the Management Incentive Plan for 2021 equal to the product of (i) the amount that such Transferred
Employee would have been eligible to receive under the terms and conditions of such Management Incentive Plan had he or she remained employed by Parent through the date of payment and (ii) the Pro-Rated
Fraction. 
 Section 9.2. Hourly Incentive Plans and Sales Commission Programs. 

Parent or a Transferred Entity shall pay any amounts that are earned under each Hourly Incentive Plan and each Sales Commission Program to
Transferred Employees prior to the Effective Time. The SpinCo Group shall be responsible for all Liabilities to Transferred Employees under each Hourly Incentive Plan and each Sales Commission Program for amounts that are earned in accordance with
the terms of such plans and programs on or after the Effective Time. 
 Section 9.3. SpinCo Obligations In Respect of Incentive
Plans. 
 The SpinCo Group shall maintain in effect the Hourly Incentive Plans and each Sales Commission Program until the first
anniversary of the Effective Time; provided, however, SpinCo shall have the right to amend each such Hourly Incentive Plan and Sales Commission Program as necessary to reflect the changes resulting from the transactions contemplated by the
Separation Agreement, including, without limitation, changes to the performance metrics under such plans and programs to use SpinCo performance metrics. 

  
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 ARTICLE X. 

ASSUMPTION OF LIABILITIES 

Section 10.1. Assumption of Liabilities.  

(a) By SpinCo. Except as otherwise expressly provided for in this Agreement, not later than the Effective Time, SpinCo shall or shall
cause a member of the SpinCo Group (including the Transferred Entities) or a SpinCo Plan to assume, perform, and discharge all of the following, regardless of when or where such Liabilities arose or arise or are incurred: 

(i) all Liabilities to or relating to Transferred Employees and their dependents and beneficiaries, to the extent relating to,
arising out of or resulting from employment on or prior to the Effective Time, including, but not limited to, all Liabilities governed by the Applicable CBA, but excluding all Liabilities retained by Parent as provided in this Agreement including,
but not limited to, the Liabilities retained by Parent pursuant to Section 10.1(c) below; and 
 (ii) all other
Liabilities relating to, or arising out of, or resulting from obligations, liabilities, and responsibilities expressly assumed or retained by SpinCo or a member of the SpinCo Group pursuant to this Agreement or the Applicable CBA. 

(b) By Parent. Parent shall or shall cause the applicable Parent Plan or Parent Group member to retain and discharge all of the
following: 
 (i) all Liabilities to or relating to Retained Employees and Former Business Employees, and any individuals who
are not Business Employees (and the foregoing’s dependents and beneficiaries), to the extent relating to, arising out of or resulting from former, present, or future employment with the Parent Group, including, but not limited to, all
Liabilities governed by the collective bargaining agreements that cover Retained Employees, Former Business Employees, and any individuals who are not Business Employees (and the foregoing’s dependents and beneficiaries); 

(ii) all Liabilities with respect to Pro-Rated Parent Awards; 

(iii) all Liabilities expressly assumed or retained under Sections 3.1(b), 6.1(a) and 6.4; 

  
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 (iv) all Liabilities under the Management Incentive Plan, the Hourly
Incentive Plans and the Sales Commission Programs for amounts that become due and payable under the terms of such programs prior to the Effective Time, as provided in Article IX; and 

(v) all other Liabilities relating to, or arising out of, or resulting from obligations, liabilities, and responsibilities
expressly assumed or retained by the Parent Group or a Parent Plan pursuant to this Agreement or the collective bargaining agreements that cover Retained Employees, Former Business Employees, and any individuals who are not Business Employees (and
the foregoing’s dependents and beneficiaries). 
 (c) Allocation of Liabilities among Parent and SpinCo with respect to grievances and
demands for arbitration pending as of the Effective Time shall be as set forth in Sections 10.1(a) and (b). Parent shall retain liability for such claims relating to Former Business Employees and, except as provided in Section 10.1(c), SpinCo
shall assume liability for such claims relating to the Transferred Employees. 
 (d) For the avoidance of doubt, allocation of Liabilities
for Taxes that (i) are imposed on Parent or a Parent Plan that, in either case, arise from or relate to a Parent Plan or (ii) are imposed on SpinCo or a SpinCo Plan that, in either case, arise from or relate to a SpinCo Plan shall be as
set forth in the Tax Matters Agreement, other than, in the case of each of clauses (i) and (ii), Taxes described in Section 2.6. 

(e) In the event that any Third Party Claim is asserted in respect of which an Indemnifying Party could have liability to any Person hereunder,
such Third Party Claim shall be addressed following the procedures set forth in Section [4.5] of the Separation Agreement. 

Section 10.2. Reimbursement. 

(a) By SpinCo. From time to time after the Effective Time, SpinCo shall promptly reimburse Parent, but in no event more than thirty
(30) days after delivery by Parent of an invoice therefor containing reasonable substantiating documentation of such costs and expenses, for the cost of any obligations or Liabilities that Parent or a Parent Plan elects to, or is compelled
to, pay or otherwise satisfy, that are or that pursuant to this Agreement have become, the responsibility of SpinCo or any SpinCo Subsidiary; provided, however, that if payment in respect of any such Liability is made by a Parent Plan,
SpinCo or the appropriate SpinCo Plan shall reimburse the Parent Plan directly. To the extent that any SpinCo Subsidiary is responsible for any of the SpinCo Employee Liabilities, each member of the SpinCo Group shall be jointly and severally liable
to Parent or Parent Plan, as applicable, for the payment of such Liabilities by such SpinCo Subsidiary. 

  
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 (b) By Parent. From time to time after the Effective Time, Parent shall promptly
reimburse SpinCo, but in no event more than thirty (30) days after delivery by SpinCo of an invoice therefor containing reasonable substantiating documentation of such costs and expenses, for the cost of any obligations or Liabilities
that SpinCo or a SpinCo Plan elects to, or is compelled to, pay or otherwise satisfy, that are or that pursuant to this Agreement have become, the responsibility of Parent; provided, however, that if payment in respect of any such
Liability is made by a SpinCo Plan, Parent or the appropriate Parent Plan shall reimburse such SpinCo Plan directly. 
 (c) Any reimbursement
made by either Party pursuant to this Section 10.2 shall be treated by the Parties as a reimbursement to the other Party for having acted as the reimbursing Party’s agent for purposes of paying the corresponding expenses. 

Section 10.3. Indemnification. 

(a) SpinCo agrees that from and after the Effective Time it shall indemnify, defend and hold harmless Parent, each of its Subsidiaries, and
their respective directors, officers, shareholders, partners, members, attorneys, accountants, agents, representatives and employees and their heirs, successors and permitted assigns, each in their capacity as such (the “Parent Indemnified
Parties”) from, against and in respect of any claims, damages, losses, charges, Liabilities, actions, suits, proceedings, judgments, settlements, assessments, interest, penalties, and reasonable costs and expenses (including reasonable
attorneys’ fees and expenses) (collectively, “Losses”) actually incurred or suffered by any of the Parent Indemnified Parties arising out of or resulting from, (i) the failure of any member of the SpinCo Group to
pay, perform, discharge or satisfy any Liabilities assumed in Section 10.1(a) of this Agreement (other than any Liabilities which arise due to the failure of Parent to satisfy its obligations under Article VIII hereof or to satisfy any
Liability assumed in Section 10.1(b) and (c) hereof), and (ii) any other breach of the duties or obligations of any member of the SpinCo Group, as set forth in this Agreement. SpinCo shall take commercially reasonable efforts to
procure insurance against any Indemnifiable Losses arising from the obligations set forth in this Agreement. 
 (b) Parent hereby agrees that
from and after the Effective Time it shall indemnify, defend and hold harmless SpinCo, its Affiliates, and their respective directors, officers, shareholders, partners, members, attorneys, accountants, agents, representatives and employees (other
than the Business Employees) and their heirs, successors and permitted assigns, each in their capacity as such (the “SpinCo Indemnified Parties” and, collectively with the Parent Indemnified Parties, the “Indemnified
Parties”) from, against and in respect of any Losses actually incurred or suffered by, any of the SpinCo Indemnified Parties arising out of or resulting from (i) the failure to pay, perform, discharge or satisfy any Parent Liabilities
(other than Parent Liabilities which arise due to the failure of any member of the SpinCo Group or any SpinCo Plans to satisfy any liabilities assumed by SpinCo in Section 10.1(a) hereof) and (ii) any other breach of the duties and
obligations set forth in this Agreement. 

  
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 Section 10.4. Procedures for Indemnification for Third-Party Claims. 

Except as specifically set forth in this Agreement, in the event that Parent or any other Parent Indemnified Party shall seek indemnification
in respect of any SpinCo Employee Liabilities, or SpinCo or any SpinCo Indemnified Party shall seek indemnification in respect of any Parent Liabilities, such person shall comply with and follow the procedures regarding indemnification set forth in
Article [IV] of the Separation Agreement, which shall apply to claims for indemnification hereunder in the same manner as though such claims were eligible for indemnification under the Separation Agreement, but assuming that such claims were not
subject to any limitation on the ability to claim indemnification under such Separation Agreement. 
 Section 10.5. Reductions for
Insurance Proceeds and Other Amounts. 
 The amount that any Indemnifying Party is or may be required to pay to any Indemnified Party
pursuant to this Article X shall be reduced (retroactively or prospectively) in the same manner as provided in Section [4.3] of the Separation Agreement as though such claims were eligible for indemnification under the Separation Agreement, but
assuming that such claims were not subject to any limitation on the ability to claim indemnification under such Separation Agreement. 

Section 10.6. Contribution. 

(a) If the indemnification provided for in this Article X is unavailable to, or insufficient to hold harmless, any Indemnified Party in respect
of any Losses for which indemnification is provided for herein, then the relevant Indemnifying Party shall contribute to the Losses for which such indemnification is unavailable or insufficient in such proportion as is appropriate to reflect the
relative fault of such Indemnifying Party and such Indemnified Party in connection with the circumstances which resulted in such Losses as well as any other relevant equitable considerations. 

(b) The relative fault of Parent and SpinCo shall be determined by reference to, among other things, the Parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent the applicable act, failure to act, statement or omission that is the basis for the Liability (the “Liability Event”), and whether the Liability Event occurred
because of one Party’s reasonable reliance on the other. 

  
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 (c) Parent and SpinCo agree that it would not be just and equitable if contribution pursuant
to this Section 10.6 were determined by any method of allocation which does not take account of the equitable considerations referred to in Section 10.6(b). The aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an Indemnitee shall be deemed to include any legal or other expenses reasonably incurred by such Indemnitee in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body,
commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. 

Section 10.7. Consequential Damages. 

Notwithstanding anything to the contrary contained in this Agreement or the Separation Agreement, no Person shall be liable under this Article
X for any consequential, punitive, special or exemplary damages, regardless of the form of action, whether in contract, tort, strict liability or otherwise, and whether or not such damages were foreseen or unforeseen, except to the extent awarded by
a court of competent jurisdiction in connection with a Third-Party Claim. 
 ARTICLE XI. 

GENERAL AND ADMINISTRATIVE 

Section 11.1. Cooperation. 

(a) General. Each of the Parties hereto will use its commercially reasonable efforts to promptly take, or cause to be taken, any and all
actions and to do, or cause to be done, any and all things necessary, proper and advisable under applicable laws and regulations to consummate the transactions contemplated by this Agreement, including without limitation, adopting plans or plan
amendments. Each of the Parties hereto shall cooperate fully on any issue relating to the transactions contemplated by this Agreement for which the other Party seeks a determination letter or any other filing, consent, or approval with respect to
governmental authorities regarding a benefit plan. 
 (b) Cooperation in Benefits, Plan, and Other Employee Transition. Parent shall
administer the Parent Plans with respect to Business Employees in the ordinary course of business between the date of the Separation Agreement and the Interim Transfer Date or the Effective Time, as applicable. Without limitation, the Parties’
cooperation under this Agreement shall include Parent (and its employees and agents) acting to provide SpinCo (and its employees and agents) with all information that is reasonably requested by SpinCo in connection with meeting, and reasonably
necessary for SpinCo to comply with, its obligations under this Agreement, including but not limited to, in connection with providing compensation, benefits, hours and terms and conditions of employment of Represented Employees that are governed by
the Applicable CBA, establishing and administering SpinCo’s ongoing benefit plans for Business Employees, and assessing appropriate insurances for the period on and after the Effective Time. The information to be provided to SpinCo (and its
employees and agents) shall include, without limitation, names of employees anticipated to be assigned to SpinCo and their respective work status, demographics and data; plan records; 

  
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underwriting and risk assessment information; records relating to workers’ compensation claims; records related to collective bargaining and the processing of grievances (including, but not
limited to all transcripts of negotiations, written proposals and negotiation binders); access to any information related to prior events and past practice that become relevant in future arbitrations; and periodic updates on the foregoing; in each
case, so long as such information is reasonably necessary for SpinCo to comply with its obligations under this Agreement. Such information may be requested by SpinCo at any time following the date of the Separation Agreement and extending following
the Effective Time as long as SpinCo reasonably has a need for such information, and shall be provided by Parent or a Parent agent as soon as reasonably practicable without incurring undue expense (with any increased third party cost being borne by
SpinCo) and in a de-identified format to the extent necessary to comply with privacy provisions of federal or applicable state law. 

(c) Communications. SpinCo shall not make any written communications (including websites or other passive communication channels) that
are directed to the directors, officers or employees of Parent or any of its Subsidiaries pertaining to compensation or benefit matters that are affected by the transactions contemplated by the Separation Agreement without Parent’s written
consent; provided that SpinCo may communicate with Union representatives (including any Union representatives who are also employees of Parent Group) in relation to SpinCo’s duties under the Applicable CBA and SpinCo may provide
transition information regarding SpinCo’s benefits (including any benefit identification cards). Notwithstanding the restriction in the preceding sentence, SpinCo may provide notices to Business Employees relating to the requirements of
Sections 404(c) of ERISA or other legally required notices (after giving Parent a reasonable opportunity for review and reasonably considering Parent’s comments on these notices), and the Parties shall cooperate in the notices’ timely
distribution in advance of the Effective Time (in accordance with the timing requirements of laws regarding such notices, in order to permit plan changes, whether before or after the Effective Time). The Parties shall each designate a single point
of contact to facilitate prompt approvals of communications. 
 (d) Cooperation in Labor and Employment Disputes. Parent shall
promptly notify SpinCo of any organizing activities or of any representation petition submitted to the NLRB and of any work stoppages, with respect to any Business Employees. For the avoidance of doubt, Parent shall retain sole decision-making
authority with respect to all employment matters prior to the Effective Date. 

  
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 Section 11.2. Consent of Third Parties. 

If any provision of this Agreement is dependent on the consent of any third party (such as a vendor) and such consent is withheld, the Parties
shall use their reasonable best 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, the Parties
shall negotiate in good faith to implement the provision in a mutually satisfactory manner. The phrase “reasonable best efforts” as used in this Agreement shall not be construed to require the incurrence of any non-routine or commercially unreasonable expense or liability or the waiver of any right. 

Section 11.3. Survival. 

This Agreement shall survive the Effective Time. 

Section 11.4. Interpretation. 

In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed
to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole
(including all of the Schedules, Exhibits and Appendices hereto and thereto) and not to any particular provision of this Agreement; (c) Article, Section, Schedule, Exhibit and Appendix references are to the Articles, Sections, Schedules,
Exhibits and Appendices to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement (including this Agreement and each Ancillary Agreement) shall be deemed to include the Exhibits, Schedules and
Annexes to such agreement; (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not
be exclusive; (g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h) references to “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which
banking institutions are generally authorized or required by law to close in (x) Memphis, Tennessee or (y) New York, New York; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer
to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; the word “extent” in the phrase “to the extent” shall
mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”; (j) unless otherwise specified, all dollar amounts, including the symbol “$”, refer to the lawful currency of the United
States of America; and (k) all references to “the date hereof” or “the date of this Agreement” and words of similar import shall all be references to [•], 2021. 

  
 42 

 Section 11.5. No Third Party Beneficiary. 

(a) Nothing in this Agreement shall confer upon any person (nor any beneficiary thereof) any rights under or with respect to any plan, program,
agreement or arrangement described in or contemplated by this Agreement and each person (and any beneficiary thereof) shall be entitled to look only to the express terms of any such plan, program, agreement or arrangement for his, her or its rights
thereunder. The purpose of this Agreement is to specify the respective potential responsibilities and obligations of Parent and SpinCo (and their respective affiliates) as between each other, but it does not affect, impair, enhance, modify, construe
or interpret the rights of any Parent Employee, Retained Employee, Former Business Employee or Business Employee under or in respect of any such plan, program, agreement or arrangement. 

(b) Nothing in this Agreement shall create any right of a Person to object or to refuse to assent to the assumption of or succession to, by any
member of the SpinCo Group or the SpinCo Group, any benefit plan, collective bargaining agreement or other agreement relating to conditions of employment, termination of employment, severance or employee benefits, nor shall this Agreement be
construed as recognizing that any such rights exist. 
 (c) Nothing in this Agreement shall amend or shall be construed to amend, or
interpret the terms of, any plan, program, agreement or arrangement described in or contemplated by this Agreement. 
 Section 11.6.
Notices. 
 Any notice, demand, claim, or other communication under this Agreement shall be in writing and shall be deemed given to a
Party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier services (costs prepaid); (b) by email with receipt confirmed; (c) received or rejected by the addressee, if
sent by certified mail, return receipt requested, in each case to the following addresses or e-mail address and marked to the attention of the person designated below (or to such other address, e-mail address or person as a Party may designate by notice to the other Parties): 

  
 43 

 (a) If to Parent, to: 

 

			
	 International Paper Company

 
 6400 Poplar Avenue

 
 Memphis, Tennessee 38197

 
 Attention: [•]

 
 E-mail:
[•]
  
 With copies to:

 

	 Debevoise & Plimpton LLP

919 Third Avenue

	 New York, NY 10022

	 Attention:
	  	 William Regner

		  	Emily Huang
		  	Franklin Mitchell
	 E-Mail:
	  	 wdregner@debevoise.com

		  	efhuang@debevoise.com
		  	flmitchell@debevoise.com

 (b) If to SpinCo, to: 
  

	
	 [•]
  

[•]
  

[•]
  

[•]
  

[•]
  

 Section 11.7. Governing Law. 

This Agreement (and any claims or disputes arising out of or related hereto or thereto or to the transactions contemplated hereby and thereby
or to the inducement of any party to enter herein and therein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) and all issues and questions concerning the construction,
validity, enforcement and interpretation of this Agreement (and all Schedules hereto) shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Delaware or any other jurisdiction) including all matters of validity, construction, effect, enforceability, performance and remedies. 

  
 44 

 Section 11.8. Disputes. 

Except as expressly provided in Section 2.5(c), Section 5.2(c), Section 5.3(b) and Section 7.3(b), any disputes arising
under this Agreement shall be resolved applying the dispute resolution provisions set forth in [Article VII] of the Separation Agreement. 

Section 11.9. Specific Performance. 

The Parties acknowledge and agree that any breach of this Agreement would give rise to irreparable harm for which monetary damages would not
be an adequate remedy. The Parties accordingly agree that, in addition to any other rights or remedies it may have at law or in equity, the other Party shall be entitled to (x) enforce the terms of this Agreement by decree of specific
performance without the necessity of proving the inadequacy of monetary damages as a remedy and (y) seek injunctive relief against any breach or threatened breach of this Agreement. Neither Party will contest an action by the other Party
for injunctive relief or an order of specific performance on the basis that there is an adequate remedy at law, or that an award of specific performance is not an appropriate remedy for any reason, at law or in equity. The Parties agree to not seek
and agree to waive any requirement for the securing or posting of a bond in connection with a Party seeking or obtaining any relief pursuant to this Section 11.9. 

Section 11.10. No Assignment; No Amendment; Counterparts. 

This Agreement may not be assigned by either Party (except by operation of law) without the written consent of the other, and shall bind and
inure to the benefit of the Parties hereto and their respective successors and permitted assignees. This Agreement may not be amended or supplemented except by an agreement in writing signed by Parent and SpinCo. This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 
  

  
 45 

 IN WITNESS WHEREOF, each Party has caused its duly authorized officer to execute this
Agreement, as of the date first written above. 
  

					
	Date:
                                         
                                   	 		  	 INTERNATIONAL PAPER COMPANY
  

By: 
 Its:

			
	Date:
                                         
                                   	 		  	 SYLVAMO CORPORATION
  

By: 
 Its:

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