Document:

Employee Matters Agreement - L-3 Communications Corporation and Engility Corp.

 Exhibit 10.1 
 EXECUTION COPY 
 EMPLOYEE MATTERS AGREEMENT 

between 
 L-3
COMMUNICATIONS CORPORATION, 
 and 
 ENGILITY CORPORATION 
 Dated as of July 16, 2012 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 Section 1.1.
	 	 Table of Definitions
	  	 	1	  
			
	 Section 1.2.
	 	 Certain Defined Terms
	  	 	2	  
		
	 ARTICLE II GENERAL PRINCIPLES; EMPLOYEE TRANSFERS
	  	 	5	  
			
	 Section 2.1.
	 	 Assumption of Engility Employee Liabilities
	  	 	5	  
			
	 Section 2.2.
	 	 Allocation of Liabilities With Respect to Benefit Plans and Employment Agreements
	  	 	5	  
			
	 Section 2.3.
	 	 Engility Benefit Plans and Engility Employment Agreements
	  	 	5	  
			
	 Section 2.4.
	 	 Plan-Related Litigation
	  	 	6	  
			
	 Section 2.5.
	 	 Vacation and Sick Pay
	  	 	6	  
			
	 Section 2.6.
	 	 Employee Transfers
	  	 	6	  
			
	 Section 2.7.
	 	 Annual Bonuses
	  	 	7	  
		
	 ARTICLE III SERVICE CREDIT
	  	 	7	  
			
	 Section 3.1.
	 	 Service Credit for Employee Transfers
	  	 	7	  
			
	 Section 3.2.
	 	 Engility Benefit Plans
	  	 	7	  
		
	 ARTICLE IV CERTAIN WELFARE BENEFIT PLAN MATTERS
	  	 	7	  
			
	 Section 4.1.
	 	 Engility Retained Welfare Plans
	  	 	7	  
			
	 Section 4.2.
	 	 Continued Participation in L-3 Welfare Plans
	  	 	7	  
			
	 Section 4.3.
	 	 Engility Spinoff Welfare Plans
	  	 	8	  
			
	 Section 4.4.
	 	 Workers’ Compensation
	  	 	9	  
		
	 ARTICLE V U.S. TAX-QUALIFIED DEFINED CONTRIBUTION PLANS
	  	 	9	  
			
	 Section 5.1.
	 	 Engility Spinoff DC Plan
	  	 	9	  
			
	 Section 5.2.
	 	 Continuation of Elections
	  	 	11	  
		
	 ARTICLE VI DEFERRED COMPENSATION PLANS
	  	 	11	  
			
	 Section 6.1.
	 	 Engility Spinoff Nonqualified Plans
	  	 	11	  
			
	 Section 6.2.
	 	 No Distributions Triggered by Spinoff
	  	 	12	  
			
	 Section 6.3.
	 	 Section 409A
	  	 	12	  
			
	 Section 6.4.
	 	 Continuation of Elections
	  	 	13	  
			
	 Section 6.5.
	 	 Delayed Transfer Employees
	  	 	13	  
		
	 ARTICLE VII EMPLOYEE STOCK PURCHASE PLAN
	  	 	13	  
			
	 Section 7.1.
	 	 Engility Spinoff Employee Stock Purchase Plan
	  	 	13	  

  
 i 

							
	 ARTICLE VIII L-3 EQUITY COMPENSATION AWARDS
	  	 	14	  
			
	 Section 8.1.
	 	 General Treatment of Outstanding L-3 Equity Compensation Awards
	  	 	14	  
			
	 Section 8.2.
	 	 Vesting and Other Terms and Conditions
	  	 	15	  
			
	 Section 8.3.
	 	 Tax Withholding and Reporting
	  	 	15	  
		
	 ARTICLE IX BENEFIT PLAN REIMBURSEMENTS, BENEFIT PLAN THIRD-PARTY CLAIMS
	  	 	15	  
			
	 Section 9.1.
	 	 General Principles
	  	 	15	  
			
	 Section 9.2.
	 	 Benefit Plan Third-Party Claims
	  	 	15	  
		
	 ARTICLE X COOPERATION
	  	 	16	  
			
	 Section 10.1.
	 	 Cooperation
	  	 	16	  
		
	 ARTICLE XI MISCELLANEOUS
	  	 	16	  
			
	 Section 11.1.
	 	 Further Assurances
	  	 	16	  
			
	 Section 11.2.
	 	 Employment Tax Reporting Responsibility
	  	 	16	  
			
	 Section 11.3.
	 	 Data Privacy
	  	 	16	  
			
	 Section 11.4.
	 	 Third Party Beneficiaries
	  	 	16	  
			
	 Section 11.5.
	 	 Effect if Distribution Does Not Occur
	  	 	17	  
			
	 Section 11.6.
	 	 Incorporation of Distribution Agreement Provisions
	  	 	17	  
			
	 Section 11.7.
	 	 No Representation or Warranty
	  	 	17	  

  
 ii 

 EMPLOYEE MATTERS AGREEMENT 

EMPLOYEE MATTERS AGREEMENT, dated as of July 16, 2012 (this “Employee Matters Agreement”), between L-3
Communications Corporation, a Delaware corporation (“L-3”) and Engility Corporation, a Delaware corporation (“Engility”). 
 RECITALS 
 A. L-3 Communications Holdings, Inc. (“L-3
Holdings”) and Engility Holdings, Inc. (“Engility Holdings”) have entered into the Distribution Agreement (the “Distribution Agreement”), dated as of the date hereof, pursuant to which L-3 Holdings intends
to distribute to its stockholders on the Distribution Date (as defined below) its entire interest in Engility Holdings by way of a stock dividend. 
 B. L-3 is a direct, wholly-owned subsidiary of L-3 Holdings. As of the Distribution Date, Engility will become a direct, wholly-owned subsidiary of Engility Holdings. 

C. The parties wish to set forth their agreements as to certain matters regarding employment, compensation and employee benefits in
connection with the Distribution (as defined below). 
 AGREEMENT 

In consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the
parties agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1. Table of Definitions.
The following terms have the meanings set forth on the pages referenced below: 
  

					
	 Definitions
	  	Page	 
		
	 Applicable Transfer Date
	  	 	6	  
	 Converted Engility Equity Compensation Award
	  	 	14	  
	 Delayed Transfer Employee
	  	 	6	  
	 Distribution Agreement
	  	 	1	  
	 Employee Matters Agreement
	  	 	1	  
	 Engility
	  	 	1	  
	 Engility Retained Welfare Plans
	  	 	7	  
	 Engility Spinoff DC Plan
	  	 	9	  
	 Engility Spinoff ESPP
	  	 	13	  
	 Engility Spinoff Nonqualified Plans
	  	 	11	  
	 Engility Spinoff Welfare Plans
	  	 	8	  
	 Exchange Ratio
	  	 	14	  

					
	 L-3
	  	 	1	  
	 L-3 Equity Compensation Award
	  	 	14	  
	 L-3 Option
	  	 	14	  
	 L-3 RSU
	  	 	14	  
	 Participation Period
	  	 	7	  
	 Participation Period Plans
	  	 	8	  
	 Split DC Plan
	  	 	9	  
	 Split ESPP
	  	 	13	  
	 Split Nonqualified Plans
	  	 	11	  
	 Split Welfare Plans
	  	 	9	  

 Section 1.2. Certain Defined Terms. For the purposes of this Employee Matters Agreement:

 “Benefit Plan” means, with respect to an entity, each plan, program, policy, agreement, arrangement or
understanding that is a deferred compensation, executive compensation, incentive bonus or other bonus, pension, profit sharing, savings, retirement, severance pay, salary continuation, life, death benefit, health, hospitalization, sick leave,
vacation pay, disability or accident insurance or other employee benefit plan, program, agreement or arrangement, whether or not subject to ERISA, including any “employee benefit plan” (as defined in Section 3(3) of ERISA) sponsored,
maintained or contributed to by such entity or to which such entity is a party or under which such entity has any obligation; provided that no L-3 Equity Compensation Award, nor any plan under which any such L-3 Equity Compensation Award is granted,
shall constitute a “Benefit Plan” under this Employee Matters Agreement. In addition, no Employment Agreement shall constitute a Benefit Plan for purposes hereof. 
 “Employment Agreement” means any individual employment, retention, consulting, change in control, split dollar life insurance, sale bonus, incentive bonus, offer letter, severance or
other individual compensatory agreement between any current or former employee and a member of the L-3 Group or the Engility Group, but excluding any L-3 Equity Compensation Award. 

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

“Engility Benefit Plans” means the Engility Retained Benefit Plans and the Engility Spinoff Plans. 

“Engility Common Stock” means common stock, par value $0.01 per share, of Engility Holdings. 

“Engility Employee” means each individual who, as of the Distribution, is employed by a member of the Engility Group
(including, for the avoidance of doubt, (i) any such individual who is on a leave of absence, whether paid or unpaid, from which such employee is permitted to return (in accordance with Engility’s personnel policies) and (ii) any
individual who, at the time of the Distribution, is receiving short-term or long-term disability benefits under an L-3 Benefit Plan and who, if actively employed at the time of the Distribution, would have otherwise been an Engility Employee on that
date). 

  
 2 

 “Engility Employee Liabilities” means all potential or actual employment
and employee benefits-related or other Liabilities, whether arising before, on or after the Distribution Date, with respect to: (a) Engility Employees and Engility Ex-Employees (and their respective Plan Payees, including, without limitation,
for any deferred vested benefits under any Benefit Plan); (b) any other individuals asserting rights or obligations stemming from their services to or in connection with the Spinco Business (as defined in the Distribution Agreement);
(c) Engility Employment Agreements; and (d) the Engility Benefit Plans (including, for avoidance of doubt, Liabilities relating to Engility Employees, Engility Ex-Employees or their respective Plan Payees (including, without limitation,
for any deferred vested benefits under any Benefit Plan) that arise or are alleged to have arisen prior to Distribution under a Split Plan from which an Engility Spinoff Plan assumed Liabilities hereunder). 

“Engility Employment Agreement” means any Employment Agreement relating to an Engility Employee or an Engility
Ex-Employee whether effective prior to, as of, or following the Distribution. The Engility Employment Agreements shall be the sole responsibility of one or more members of the Engility Group following the Distribution. 

“Engility Ex-Employee” means each former employee of L-3 or its Affiliates (or the predecessors thereof), including,
without limitation, any such individual with deferred vested benefits under any Benefit Plan, whose last employment with L-3 or its Affiliates prior to the Distribution was with the Engility Group or the Spinco Business. For the avoidance of doubt,
(i) a former employee whose last employment with L-3 and its Affiliates prior to the Distribution was with a business unit included within the Spinco Business shall be deemed an Engility Ex-Employee, without regard to whether the business unit
was transferred to the Engility Group following the former employee’s termination of employment, and (ii) a former employee whose last employment with L-3 and its Affiliates prior to the Distribution was with a business unit that is not
included within the Spinco Business shall not be deemed an Engility Ex-Employee, without regard to whether the business unit was transferred out of the Engility Group following the former employee’s termination of employment. 

“Engility Group” means the Persons listed on Schedule 1.2(a) hereto. 

“Engility Retained Benefit Plan” means any Benefit Plan that, as of the Distribution, is sponsored or maintained solely
by any member of the Engility Group. “Engility Retained Benefit Plan” shall also mean any multiemployer plan (as defined in Section 3(37) of ERISA) to which any member of the Engility Group contributes for the benefit of its
employees. For the avoidance of doubt, no member of the Engility Group shall be deemed to sponsor or maintain any Benefit Plan if its relationship to such Benefit Plan is solely to provide to L-3 any reimbursement in respect of such Benefit Plan
pursuant to the Transition Services Agreement. The Engility Retained Benefit Plans (excluding any multiemployer plans) shall be sponsored solely by one or more members of the Engility Group following the Distribution. 

“Engility Spinoff Plans” means the Engility Spinoff DC Plans, Engility Spinoff ESPP, Engility Spinoff Nonqualified Plans
and Engility Spinoff Welfare Plans. 

  
 3 

 “Engility Welfare Plan” means each Engility Benefit Plan that is a Welfare
Plan. 
 “L-3 Benefit Plan” means any Benefit Plan sponsored or maintained by any member of the L-3 Group. L-3
Benefit Plan shall also mean any multiemployer plan (as defined in Section 3(37) of ERISA) to which any member of the L-3 Group or L-3 contributes for the benefit of its employees. For the avoidance of doubt, no member of the L-3 Group shall be
deemed to sponsor or maintain any Benefit Plan if its relationship to such Benefit Plan is solely to administer such Benefit Plan for the benefit of Engility Employees or Engility Ex-Employees pursuant to the Transition Services Agreement. The L-3
Benefit Plans (excluding any multiemployer plans) shall be those Benefit Plans sponsored solely by one or more members of the L-3 Group following the Distribution. 
 “L-3 Common Stock” means common stock, par value $0.01 per share, of L-3 Holdings. 
 “L-3 Employee Liabilities” means all potential or actual employment and employee benefits-related or other Liabilities with respect to current employees and former employees of L-3 and
the L-3 Group, whether arising before, on or after the Distribution Date, but excluding any Engility Employee Liabilities. 

“L-3 Employment Agreement” means any Employment Agreement relating to a current or former employee of the L-3 Group who
is not an Engility Employee or an Engility Ex-Employee. The L-3 Employment Agreements shall be the responsibility of one or more members of the L-3 Group following the Distribution. 

“L-3 Group” means L-3 and its Affiliates, excluding any member of the Engility Group. 

“L-3 Ex-Employee” means each former employee of L-3, or any of its Affiliates, who is not an Engility Ex-Employee.

 “L-3 Welfare Plan” means each L-3 Benefit Plan that is a Welfare Plan. 

“Plan Payee” means, as to an individual who participates in a Benefit Plan, such individual’s dependents,
beneficiaries, alternate payees and alternate recipients, as applicable under such Benefit Plan. 
 “Split
Plans” means the Split Welfare Plans, Split DC Plan and Split Nonqualified Plans. 
 “Welfare Plan”
means each Benefit Plan that provides life insurance, health care, dental care, vision care, employee assistance programs (EAP), accidental death and dismemberment insurance, disability, severance, vacation or other group welfare or fringe benefits
or is an “employee welfare benefit plan” as described in Section 3(1) of ERISA. 
 “Workers’
Compensation Event” means the event, injury, illness or condition giving rise to a workers’ compensation claim. 

  
 4 

 Section 1.3 Other Capitalized Terms. Capitalized terms not defined in this
Employee Matters Agreement shall have the meanings ascribed to them in the Distribution Agreement. 
 ARTICLE II

 GENERAL PRINCIPLES; EMPLOYEE TRANSFERS 

Section 2.1. Assumption of Engility Employee Liabilities. Effective as of the Distribution, except as otherwise
specifically provided in this Employee Matters Agreement, (a) the Engility Group shall be solely responsible for all Engility Employee Liabilities and the L-3 Group shall not retain any Engility Employee Liabilities and (b) the L-3 Group
shall be solely responsible for all L-3 Employee Liabilities and the Engility Group shall not retain any L-3 Employee Liabilities. 
 Section 2.2. Allocation of Liabilities With Respect to Benefit Plans and Employment Agreements. Except as otherwise specifically provided in this Employee Matters Agreement or the
Transition Services Agreement, effective as of the Distribution, each Engility Employee and Engility Ex-Employee (and each such individual’s Plan Payees) shall cease participation in all L-3 Benefit Plans and, as of such time, Engility shall or
shall cause another member of the Engility Group to have in effect such Engility Benefit Plans as are necessary to comply with its obligations pursuant to this Employee Matters Agreement. 

(a) Effective as of the Distribution, except as otherwise specifically provided in this Employee Matters Agreement, L-3 shall, or shall
cause one or more members of the L-3 Group to, retain, pay, perform, fulfill and discharge in due course all Liabilities arising out of or relating to all L-3 Employment Agreements. 

(b) Effective as of the Distribution, except as otherwise specifically provided in this Employee Matters Agreement, Engility shall, or
shall cause one or more members of the Engility Group to, retain, pay, perform, fulfill and discharge in due course (i) all Liabilities arising out of or relating to all Engility Benefit Plans, (ii) all Liabilities arising out of or
relating to all Engility Employment Agreements, (iii) all Liabilities arising out of or relating to the Converted Engility Equity Compensation Awards (including, without limitation, any and all Liabilities with respect to any equity award of
L-3 that, through assumption and conversion, becomes a Converted Engility Equity Compensation Award, as well as any and all Liabilities with respect to the assumption and conversion of such an award), and (iv) all Liabilities with respect to
the employment, service, termination of employment or termination of service of all Engility Employees, Engility Ex-Employees, their respective Plan Payees. For the avoidance of doubt, from and after the Distribution, in no event will Engility be
required to issue, grant or award any compensation relating to Engility Common Stock to any employee of the L-3 Group, and, subject to the treatment of the L-3 Equity Compensation Awards that are outstanding as of the Distribution and held by any
Engility Employee or Engility Ex-Employee as provided in Section 8.1, in no event will L-3 be required to issue, grant or award any compensation relating to L-3 Common Stock to any Engility Employee or Engility Ex-Employee. 

Section 2.3. Engility Benefit Plans and Engility Employment Agreements. Effective as of the Distribution, Engility
or another member of the Engility Group shall, as applicable in accordance with this Employee Matters Agreement, adopt, continue or, to the extent necessary, assume sponsorship of each Engility Benefit Plan and Engility Employment Agreement.

  
 5 

 Effective on the Distribution Date, the Engility Group shall be exclusively responsible for
administering each Engility Benefit Plan and each Engility Employment Agreement in accordance with its terms and for all obligations and liabilities with respect to the Engility Benefit Plans and Engility Employment Agreements and all benefits owed
to participants in the Engility Benefit Plans and individuals who are parties to the Engility Employment Agreements, whether arising before, on or after the Distribution Date. Except as specifically provided herein, Engility shall not assume
sponsorship, maintenance or administration of any Benefit Plan or Employment Agreement that is not an Engility Benefit Plan or an Engility Employment Agreement or receive or assume any assets or liabilities in connection with any such Benefit Plan
or Employment Agreement. 
 Section 2.4. Plan-Related Litigation. Notwithstanding anything herein to the
contrary, the management of the defense of all litigation related to the L-3 Benefit Plans, the L-3 Employment Agreements, the Engility Benefit Plans and the Engility Employment Agreements shall be governed by the Distribution Agreement, and this
Employee Matters Agreement shall govern the allocation of Liabilities related to any such litigation. 

Section 2.5. Vacation and Sick Pay. Engility shall assume responsibility for accrued vacation and sick pay and any other
paid time off attributable to Engility Employees and Engility Ex-Employees as of the Distribution, or with respect to Delayed Transfer Employees, the Applicable Transfer Date. 
 Section 2.6. Employee Transfers. Upon mutual agreement of Engility and L-3, any employee whose employment transfers after the Distribution but prior to October 1, 2012 from the L-3
Group to the Engility Group or from the Engility Group to the L-3 Group because they were inadvertently and erroneously treated as employed by the wrong employer on the Distribution Date, and who was continuously employed by a member of the Engility
Group or the L-3 Group (as applicable) from the Distribution through the date such employee commences active employment with a member of the L-3 Group or Engility Group (as applicable) shall be a “Delayed Transfer Employee.” Except
as otherwise specifically provided in this Employee Matters Agreement, such Delayed Transfer Employees shall be treated in the same manner as Engility Employees or L-3 Employees (as applicable) as specified in this Employee Matters Agreement, to the
extent practicable in compliance with applicable Law and the Employee Plans. For purposes of this Employee Matters Agreement, the date on which a Delayed Transfer Employee actually commences employment with the Engility Group or the L-3 Group (as
applicable) is referred to as such individual’s “Applicable Transfer Date” and such Applicable Transfer Date shall, except as expressly provided herein and in compliance with Law applicable to the Employee Plans, be treated as
the Distribution Date for Delayed Transfer Employees where the Distribution Date is referenced in this Employee Matters Agreement. Notwithstanding anything herein to the contrary, the mutual agreement with respect to, and Applicable Transfer Date
of, any Delayed Transfer Employee must occur before October 1, 2012. 

  
 6 

 Section 2.7. Annual Bonuses. Engility shall be solely responsible for all
annual bonuses earned by Engility Employees and Engility Ex-Employees with respect to periods ending on or after January 1, 2012. Actual bonuses payable to Engility employees in respect of periods ending on or after January 1, 2012 will be
determined by Engility in its sole discretion. 
 ARTICLE III 

SERVICE CREDIT 
 Section 3.1. Service Credit for Employee Transfers. The Benefit Plans shall provide the following service crediting rules effective as of the Distribution: 

If a Delayed Transfer Employee becomes employed by a member of the L-3 Group or Engility Group before October 1, 2012, then such Delayed Transfer
Employee’s service with the Engility Group or the L-3 Group (as applicable) following the Distribution shall be recognized for purposes of eligibility and vesting under the appropriate Benefit Plans, subject to the terms of those plans.

 Section 3.2. Engility Benefit Plans. From and after the Distribution, or with respect to Delayed Transfer
Employees, the Applicable Transfer Date, Engility shall, and shall cause its affiliates and successors to, provide credit under the Engility Benefit Plans to Engility Employees and Engility Ex-Employees for their service with Engility and its
predecessors and affiliates (including but not limited to L-3 and any of its Affiliates and their respective predecessors) to the same extent that such service was recognized under the relevant L-3 Benefit Plans. For avoidance of doubt, service
shall be credited for all purposes, including but not limited to, benefit accrual, determining eligibility to participate, vesting, or for the purpose of any other service-related benefits or programs; provided, however, that service shall
not be recognized to the extent that such recognition would result in the duplication of benefits. 
 ARTICLE IV

 CERTAIN WELFARE BENEFIT PLAN MATTERS 

Section 4.1. Engility Retained Welfare Plans. Engility shall cause a member of the Engility Group to retain, or to the
extent necessary, assume sponsorship of any Engility Retained Benefit Plans that are Welfare Plans (the “Engility Retained Welfare Plans”) and take all necessary actions to continue contributions to the Engility Retained Benefit
Plans that are multiemployer Welfare Plans. From and after the Distribution, the Engility Group shall be exclusively responsible for all obligations and liabilities with respect to the Engility Retained Welfare Plans, and all benefits owed to
participants in the Engility Retained Welfare Plans, whether accrued before, on or after the Distribution. 

Section 4.2. Continued Participation in L-3 Welfare Plans. 

(a) For the period beginning on the day after the Distribution Date and ending on December 31, 2012 (or such later date as may be
required under the Consolidated Omnibus Budget Reconciliation Act, as amended (“COBRA”) in the case of Engility Employees or Engility Ex-Employees (or such Engility Employee’s or Engility Ex-Employee’s eligible dependents)
who have a “qualifying event” for the purposes of COBRA on or prior to the Distribution Date) (the “Participation Period”), (i) Engility 

  
 7 

 
Employees and Engility Ex-Employees who participate in the Welfare Plans identified on Schedule 4.2(a)(i) (such plans, the “Participation Period Plans”), and
(ii) individuals who become employed by a member of the Engility Group who would become eligible to participate in the Participation Period Plans identified on Schedule 4.2(a)(ii) had the Distribution had not occurred, shall continue to
participate or begin to participate, as applicable in such Participation Period Plans during the Participation Period. Notwithstanding the foregoing, to the extent the Participation Period applicable to an Engility Employee (or such Engility
Employee’s eligible dependents) who experiences a “qualifying event” for the purposes of COBRA after the Distribution Date would otherwise extend beyond December 31, 2012, such Engility Employee shall become eligible for benefits
solely pursuant to the Engility Spinoff Welfare Plans, in accordance with COBRA and consistent with the terms generally available to active Engility Employees as of January 1, 2013. 

(b) Notwithstanding any provision of this Agreement to the contrary, any Engility Employee or Engility Ex-Employee who becomes eligible
for long-term disability insurance coverage as a result of a disability which occurs: 
 (i) prior to
July 1, 2012 shall be eligible for such benefits under the applicable Participation Period Plan from the time of initial eligibility through the last date for which such Engility Employee or Engility Ex-Employee remains eligible for such
benefits under the terms of such Participation Period Plan, without regard for the end of the Participation Period; and 
 (ii) from and after July 1, 2012, shall be eligible for such benefits only under the Engility Spinoff Welfare Plan providing for long-term disability insurance coverage. 

(c) The Engility Group shall be responsible for and have sole liability with respect to all liabilities under Participation Period Plans
actually incurred by L-3 or a member of the L-3 Group in respect of Engility Employees and Engility Ex-Employees; provided, however, that with respect to any claims processed, managed or paid with respect to an Engility Employee, Engility
Ex-Employee, or Delayed Transfer Employee after the Distribution Date or Applicable Transfer Date (as applicable), L-3 or a member of the L-3 Group shall have responsibility for processing and managing such claims and Engility shall reimburse L-3 or
the applicable member of the L-3 Group, in each case on the terms set forth in the Transition Service Schedule relating to the Participation Period Plans attached to the Transition Services Agreement entered into on or prior to the date hereof
between L-3 Communications Corporation and Engility. 
 Section 4.3. Engility Spinoff Welfare Plans.

 (a) (i) Effective (A) not later than December 31, 2012, with respect to any Participation Period Plans identified
in Schedule 4.2(a)(ii), and (B) not later than the Distribution Date with respect to the other welfare benefit plans identified in Schedule 4.3, Engility or a member of the Engility Group shall establish certain welfare benefit plans (all such
plans, the “Engility Spinoff Welfare Plans”). Each Engility Spinoff 

  
 8 

 
Welfare Plan shall have terms and features (including benefit coverage options and employer contribution provisions) that are substantially identical to one of the Benefit Plans listed
on Schedule 4.2(a)(ii) or the L-3 Benefit Plans corresponding to the Benefit Plans listed on Schedule 4.3 (such Benefit Plans, the “Split Welfare Plans”) such that (for avoidance of doubt), each Split Welfare Plan is
substantially replicated by an Engility Spinoff Welfare Plan; and (ii) any Engility Employee or Engility Ex-Employee who would become eligible to participate in the Participation Period Plans identified on Schedule 4.3 had the Distribution had
not occurred, as a result of an event or incident eligible for coverage which occurs on or after the Distribution Date, shall be eligible for benefits only under the corresponding Engility Spinoff Welfare Plan. 

(b) Each Engility Spinoff Welfare Plan shall assume all liability from the corresponding Split Welfare Plan with respect to, and shall
provide benefits to, those Engility Employees and Engility Ex-Employees and their respective Plan Payees who immediately prior to the Distribution were participating in, or entitled to present or future benefits under the corresponding Split Welfare
Plan. Beginning on the day after the Distribution, Engility and the Engility Group shall be solely and exclusively responsible for all obligations and liabilities with respect to, or in any way related to, the Engility Spinoff Welfare Plans, whether
accrued before, on or after the Distribution. For avoidance of doubt, the Engility Spinoff Welfare Plans shall have the sole obligation to provide benefits attributable to any lost participants who were formerly employed in the Spinco Business.

 Section 4.4. Workers’ Compensation. The Engility Group shall be responsible for and have sole liability
with respect to all workers’ compensation claims of Engility Employees and Engility Ex-Employees, regardless of when the Workers’ Compensation Event occurred; provided, however, that with respect to any such claims arising with respect to
an Engility Employee, Engility Ex-Employee, or Delayed Transfer Employee prior to the Distribution Date or Applicable Transfer Date (as applicable) L-3 or a member of the L-3 Group shall have responsibility for processing and managing such claims,
and Engility shall reimburse L-3 or the applicable member of the L-3 Group, in each case on the terms set forth in the applicable Transition Service Schedule attached to the Transition Services Agreement entered into on or prior to the date hereof
between L-3 Communications Corporation and Engility. 
 ARTICLE V 

U.S. TAX-QUALIFIED DEFINED CONTRIBUTION PLANS 
 Section 5.1. Engility Spinoff DC Plan. 
 (a) Prior to the
Distribution, Engility or another member of the Engility Group shall establish a defined contribution plan that qualifies under Code Section 401(a), and a related master trust or trusts exempt under Code Section 501(a) (such plan and
trust, the “Engility Spinoff DC Plan”). The Engility Spinoff DC Plan shall have terms and features (including vesting requirements and employer contribution provisions) that are substantially identical to the Benefit Plan listed
on Schedule 5.1 (such Benefit Plan, the “Split DC Plan”) such that (for avoidance of doubt), the Split DC Plan is substantially replicated by a corresponding Engility Spinoff DC Plan, provided, that
(i) notwithstanding the investment options provided for in the Split DC Plan, no contributions or 

  
 9 

 
transfers will be permitted into the L-3 Stock Fund under the Engility Spinoff DC Plan following the Distribution, and (ii) any balance remaining in the L-3 Stock Fund of the Engility
Spinoff DC Plan as of December 31, 2013 shall automatically be transferred into the participant’s applicable “Qualified Default Investment Alternative” thereunder. Engility or a member of the Engility Group shall be solely
responsible for taking all necessary, reasonable, and appropriate actions (including the submission of the Engility Spinoff DC Plan to the Internal Revenue Service for a determination of tax-qualified status) to establish, maintain and administer
the Engility Spinoff DC Plan so that it is qualified under Section 401(a) of the Code and that the related trusts thereunder are exempt under Section 501(a) of the Code. The Engility Spinoff DC Plan shall assume liability for all benefits
accrued or earned (whether or not vested) by Engility Employees and Engility Ex-Employees and their respective Plan Payees under the corresponding Split DC Plan as of the Distribution. 

(b) Prior to the Distribution, L-3 or a member of the L-3 Group shall cause the Split DC Plan to transfer to the Engility Spinoff DC
Plan, and Engility or another member of the Engility Group shall cause the Engility Spinoff DC Plan to accept the transfer of, the accounts, liabilities and related assets in such Split DC Plan attributable to Engility Employees and Engility
Ex-Employees and their respective Plan Payees, including any shares of common stock held through the L-3 Stock Fund of the Split DC Plan, provided, that any vesting terms applicable to any assets so transferred shall continue to apply to such
assets, subject to the service credit provisions of Section 3.2 and, provided, further, that any shares of Engility Common Stock received in respect of such L-3 shares as a result of the Distribution shall be transferred to a new
Engility Stock Fund under the Engility Spinoff DC Plan. The transfer of assets shall be in cash or in kind (as determined by the transferor) and include outstanding loan balances and amounts forfeited by Engility Ex-Employees that have not yet been
applied to the payment of contributions or expenses and be conducted in accordance with Code Section 414(l) and Treasury Regulation Section 1.414(1)-1, and Section 208 of ERISA. From and after the transfer of the accounts,
liabilities, and related assets to the Engility Spinoff DC Plan, the participating Engility Employees and Engility Ex-Employees shall cease to participate in the Split DC Plan. 

(c) As soon as reasonably practicable (but not later than 60 days) following the Applicable Transfer Date of a Delayed Transfer
Employee who transfers employment from a member of the L-3 Group to a member of the Engility Group prior to October 1, 2012, L-3 or a member of the L-3 Group shall cause the accounts, related liabilities, and related assets in the corresponding
Split DC Plan(s) attributable to such Delayed Transfer Employee and their respective Plan Payees (including any outstanding loan balances) to be transferred in cash or in kind (as determined by the transferor) (in accordance with Code
Section 414(l) and Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA) to the Engility Spinoff DC Plan and Engility or a member of the Engility Group shall cause the Engility Spinoff DC Plan to accept such transfer of
accounts, liabilities and assets. 
 (d) In the event a Delayed Transfer Employee is an Engility Employee who returns to
employment with L-3 or a member of the L-3 Group, then, as soon as reasonably practicable (but not later than 30 days thereafter), Engility or a member of the Engility Group shall cause the accounts, related liabilities, and related assets in
the Engility Spinoff DC Plan attributable to such Delayed Transfer Employee and their respective Plan Payees (including any 

  
 10 

 
outstanding loan balances) to be transferred in cash or in-kind (as determined by the transferor) in accordance with Code Section 414(l) and Treasury Regulation Section 1.414(l)-1,
and Section 208 of ERISA to the applicable Split DC Plan(s). L-3 or a member of the L-3 Group shall cause the Split DC Plan to accept such transfer of accounts, liabilities and assets. 

(e) From and after the Distribution, except as specifically provided in paragraph (d) or Section 6.3 below, Engility and the
Engility Group shall be solely and exclusively responsible for all obligations and liabilities with respect to, or in any way related to, the Engility Spinoff DC Plan, whether accrued before, on or after the Distribution. For avoidance of doubt, the
Engility Spinoff DC Plan shall have the sole and exclusive obligation to restore the unvested portion of any account attributable to any individual who becomes employed by a member of the Engility Group and whose employment with L-3 or any of its
Affiliates, or a member of the L-3 Group terminated on or before the Distribution at a time when such individual’s benefits under the Split DC Plans were not fully vested. Furthermore, the Engility Spinoff DC Plan shall have the sole obligation
to restore accounts attributable to any lost participants who are Engility Ex-Employees. 

Section 5.2. Continuation of Elections. As of the Distribution, Engility (acting directly or through a member of the
Engility Group) shall cause the Engility Spinoff DC Plan to recognize and maintain all elections, including, but not limited to, deferral, investment and payment form elections, beneficiary designations, and the rights of alternate payees under
qualified domestic relations orders with respect to Engility Employees, Engility Ex-Employees and Delayed Transfer Employees and their respective Plan Payees under the Split DC Plan; provided, that employee investment elections directed
to the L-3 Stock Fund thereunder shall be directed to the participant’s applicable “Qualified Default Investment Alternative” thereunder until such time (if any) as the participant changes his or her election. 

ARTICLE VI 

DEFERRED COMPENSATION PLANS 
 Section 6.1. Engility Spinoff Nonqualified Plans. 
 (a) Effective
as of the Distribution, Engility or another member of the Engility Group shall establish certain nonqualified deferred compensation plans (such plans, the “Engility Spinoff Nonqualified Plans”). Each Engility Spinoff Nonqualified
Plan shall have terms and features that are substantially identical to one of the L-3 Benefit Plans listed on Schedule 6.1(a) (such plans, the “Split Nonqualified Plans”) such that (for avoidance of doubt) each
Split Nonqualified Plan is substantially replicated by a corresponding Engility Spinoff Nonqualified Plan. Except as specifically provided in Section 6.5, Engility or a member of the Engility Group shall be solely responsible for taking all
necessary, reasonable, and appropriate actions to establish, maintain and administer the Engility Spinoff Nonqualified Plans so that they do not result in adverse tax consequences under Code Section 409A. Each Engility Spinoff Nonqualified Plan
shall assume liability for all benefits accrued or earned (whether or not vested) by Engility Employees and Engility Ex-Employees and their respective Plan Payees under the corresponding Split Nonqualified Plan as of the Distribution. From and after
the Distribution, Engility and the Engility Group shall be solely and exclusively responsible for all obligations and liabilities with 

  
 11 

 
respect to, or in any way related to, the Engility Spinoff Nonqualified Plans, whether accrued before, on or after the Distribution, and shall indemnify the L-3 Group from any claims with respect
to such liabilities. Furthermore, Engility and the Engility Group shall have the sole obligation to restore in the Engility Spinoff Nonqualified Plans benefits under the Split Nonqualified Plans attributable to any lost participants who are Engility
Ex-Employees. 
 (b) Engility shall cause a member of the Engility Group to retain, or to the extent necessary, assume
sponsorship of the Engility Retained Nonqualified Plan identified on Schedule 6.1(b), and take all necessary actions to continue such Engility Retained Nonqualified Plan in accordance with its terms. To the extent necessary, prior to the
Distribution, Engility shall cause a member of the Engility Group to assume sponsorship of the Engility Retained Nonqualified Plan. Except as specifically provided in Section 6.5, Engility or a member of the Engility Group shall be solely
responsible for taking all necessary, reasonable, and appropriate actions to establish, maintain and administer the Engility Retained Nonqualified Plan so that it do not result in adverse tax consequences under Code Section 409A. The Engility
Retained Nonqualified Plan shall assume liability for all benefits accrued or earned (whether or not vested) by all Engility Employees and Engility Ex-Employees under the Engility Retained Nonqualified Plan as of the Distribution. From and after the
Distribution, Engility and the Engility Group shall be solely and exclusively responsible for all obligations and liabilities with respect to, or in any way related to, the Engility Retained Nonqualified Plan, whether accrued before, on or after the
Distribution, and shall indemnify the L-3 Group from any claims with respect to such liabilities. Furthermore, Engility and the Engility Group shall have the sole obligation to restore in the Engility Retained Nonqualified Plan benefits attributable
to any lost participants who are Engility Ex-Employees. 
 (c) Unless L-3 and Engility agree otherwise before the Distribution,
prior to or on the Distribution Date, L-3 or a member of the L-3 Group shall cause the applicable Split Nonqualified Plans to transfer to the corresponding Engility Spinoff Nonqualified Plan, and Engility or another member of the Engility Group
shall cause such Engility Spinoff Nonqualified Plan to accept the transfer of, the accounts and liabilities in such Split Nonqualified Plans attributable to Engility Employees and Engility Ex-Employees and their respective Plan Payees. 

Section 6.2. No Distributions Triggered by Spinoff. L-3 and Engility acknowledge that neither the Distribution nor any
of the other transactions contemplated by this Employee Matters Agreement, the Distribution Agreement or the other Ancillary Agreements will trigger a payment or distribution of compensation under any Benefit Plan that is a nonqualified deferred
compensation plan for any Engility Employee or Engility Ex-Employee and, consequently, that the payment or distribution of any compensation to which any Engility Employee or Engility Ex-Employee is entitled under any Engility Spinoff Nonqualified
Plan will occur upon such Engility Employee’s or Engility Ex-Employee’s separation from service from the Engility Group or at such other time as provided in such Engility Spinoff Nonqualified Plan or such Engility Employee’s or
Engility Ex-Employee’s deferral election. 
 Section 6.3. Section 409A. L-3 and Engility shall
cooperate in good faith so that the Distribution will not result in adverse tax consequences under Code Section 409A to any current or former employee of any member of the L-3 Group or any member of the Engility Group, or their respective Plan
Payees, in respect of his or her benefits under any L-3 Benefit Plan or Engility Benefit Plan. 

  
 12 

 Section 6.4. Continuation of Elections. As of the Distribution, Engility
(acting directly or through a member of the Engility Group) shall cause each Engility Spinoff Nonqualified Plan to recognize and maintain all elections, including, but not limited to, deferral and payment form elections, beneficiary designations,
and the rights of alternate payees under qualified domestic relations orders with respect to Engility Employees, Engility Ex-Employees and their Plan Payees under the corresponding Split Nonqualified Plan. 

Section 6.5. Delayed Transfer Employees. Any Delayed Transfer Employee who transfers to the Engility Group prior to
October 1, 2012 shall be treated in the same manner as an Engility Employee under this Article VI, subject to Section 6.3. As indicated in Section 2.6, unless otherwise required pursuant to Section 6.3, such a Delayed
Transfer Employee’s Applicable Transfer Date shall be treated as the Distribution Date. In addition, if a Delayed Transfer Employee transfers from the Engility Group to the L-3 Group prior to October 1, 2012, the L-3 Group shall assume and
be solely responsible, pursuant to the terms of the applicable Split Nonqualified Plan, for any benefits accrued by such individual under any Engility Spinoff Nonqualified Plan, and the Engility Group shall have no liability with respect thereto.

 ARTICLE VII 
 EMPLOYEE STOCK PURCHASE PLAN 
 Section 7.1. Engility
Spinoff Employee Stock Purchase Plan. 
 (a) Effective as of the Distribution, Engility or another member of the Engility
Group shall establish an employee stock purchase plan (such plan, the “Engility Spinoff ESPP”). The Engility Spinoff ESPP shall have terms and features (including employer contribution provisions) that are substantially identical to
one of the L-3 Benefit Plans listed on Schedule 7.1(a) (such plans, the “Split ESPP” ) such that (for avoidance of doubt), each Split ESPP is substantially replicated by a corresponding Engility Spinoff ESPP,
provided, that the foregoing shall not require that offerings under the Engility Spinoff ESPP be tax-qualified under Section 423 of the Code. Engility or a member of the Engility Group shall be solely responsible for taking all
necessary, reasonable, and appropriate actions to establish, maintain and administer the Engility Spinoff ESPP, and commencing open enrollment following the Distribution Date. 
 (b) Unless L-3 and Engility agree otherwise before the Distribution, all participating Engility Employees and Engility Ex-Employees shall be permitted to participate in the offering period ending on
June 29, 2012 under the Split ESPP, but shall not be permitted to participate in any subsequent offering periods. 

  
 13 

 ARTICLE VIII 
 L-3 EQUITY COMPENSATION AWARDS 
 Section 8.1. General
Treatment of Outstanding L-3 Equity Compensation Awards. 
 (a) Notwithstanding any other provision of this Employee Matters
Agreement or the Distribution Agreement to the contrary, from and after the Distribution, each outstanding option award to purchase L-3 Common Stock (each, an “L-3 Option”) and each restricted stock unit award with respect to a
share of L-3 Common Stock (“L-3 RSU”) that was granted under or pursuant to any equity compensation plan or arrangement of L-3 or its Affiliates (each such L-3 Option or L-3 RSU, an “L-3 Equity Compensation Award”),
that, as of the Distribution, is held by any Engility Employee (which for purposes of this Section 8.1, shall not include any Delayed Transfer Employees) or Engility Ex-Employee, shall be assumed by Engility (each such assumed L-3 Equity
Compensation Award, a “Converted Engility Equity Compensation Award”). 
 (b) In connection with the assumption
by Engility or its Affiliate, each Converted Engility Equity Compensation Award shall be adjusted into an option award or restricted stock unit award, as applicable, with respect to shares of Engility Common Stock, having the same intrinsic value as
the applicable L-3 Equity Compensation Award, as determined using an exchange ratio (“Exchange Ratio”) equal to (i) the closing price of a share of L-3 Common Stock on the Distribution Date based on “regular way”
trading divided by (ii) the opening price of a share of Engility Common Stock on the first day after the Distribution Date on which Engility Common Stock trades on a “regular way” basis, rounded down to six decimal places.

 (c) With respect to any Converted Engility Equity Compensation Award that is a stock option, (A) the per share exercise
price shall be adjusted to be equal to (1) the per share exercise price of the corresponding L-3 Option, divided by (2) the Exchange Ratio, with the result rounded up to the nearest whole cent; and (B) the number of shares of
Engility Common Stock subject to such Converted Engility Equity Compensation Award shall also be adjusted by multiplying the number of shares of L-3 Common Stock subject to such award by the Exchange Ratio, with the product rounded down to the
nearest whole share. 
 (d) With respect to any Converted Engility Equity Compensation Award that is a restricted stock unit,
the number of units of Engility Common Stock subject to each such Converted Engility Equity Compensation Award shall be adjusted to be equal to the product of (x) the number of shares of L-3 Common Stock subject to the corresponding L-3 RSU,
and (y) the Exchange Ratio, rounded down to the nearest whole unit. 
 (e) Prior to the Distribution, Engility shall
establish equity compensation plans, so that upon the Distribution, Engility shall have in effect an equity compensation plan containing substantially the same terms as each original L-3 equity compensation plan under which any Converted Engility
Equity Compensation Award was granted. From and after the Distribution, each Converted Engility Equity Compensation Award shall be subject to the terms of the applicable Engility equity compensation plan, the award agreement governing such Converted
Engility Equity Compensation Award and any Employment Agreement to which the applicable Engility Employee or Engility Ex-Employee is a party. From and after the Distribution, Engility shall retain, pay, perform, fulfill and discharge all Liabilities
arising out of or relating to the Converted Engility Equity Compensation Awards. Effective as of the Distribution, each Engility Employee and Engility Ex-Employee shall cease participation in all

  
 14 

 
L-3 equity compensation plans. In all events, the adjustments to the Converted Engility Equity Compensation Awards provided for in this Section 8.1 shall be made in a manner that, as
determined by L-3, avoids adverse tax consequences under Code Section 409A. 
 Section 8.2. Vesting and Other
Terms and Conditions. Each Converted Engility Equity Compensation Award shall have the same vesting schedule, expiration date (if applicable), delivery date (if applicable), and such other terms and conditions as in effect immediately prior to
the conversion, as such terms were applicable to the corresponding L-3 Equity Compensation Award, including, without limitation, credit for any accruals as of the Distribution Date for accumulated and unpaid dividends on any L-3 RSU award converted
as of the Distribution Date, in accordance with the terms of the applicable award agreements governing the L-3 RSU and corresponding Converted Engility Equity Compensation Award. 

Section 8.3. Tax Withholding and Reporting. Effective from and after the Distribution, Engility shall be solely
responsible for all Tax withholding obligations with respect to the Converted Engility Equity Compensation Awards. 
 ARTICLE
IX 
 BENEFIT PLAN REIMBURSEMENTS, BENEFIT PLAN 

THIRD-PARTY CLAIMS 
 Section 9.1. General Principles. From and after the Distribution, any services that a member of the L-3 Group shall provide to the members of the Engility Group relating to any Benefit
Plans shall be set forth in the Transition Services Agreement. 
 Section 9.2. Benefit Plan Third-Party Claims.
In the event of any conflict or inconsistency between the following provision on the one hand, and the Distribution Agreement or any of the Ancillary Agreements on the other hand, the following provision shall control over the inconsistent
provisions to the extent of the inconsistency: 
 If a Third-Party Claim relates solely to the Benefit Plan of the Indemnifying
Party, Engility and L-3 shall take all actions necessary to substitute the Indemnifying Party and/or the relevant Benefit Plan of the Indemnifying Party as the proper party for such Third-Party Claim. If the Third-Party Claim relates to both an
Engility Benefit Plan and a L-3 Benefit Plan, Engility and L-3 shall take all actions necessary to separate or otherwise partition the Third-Party Claim so as to allow each party to solely defend the claim relating to its own Benefit Plan (unless
the parties mutually agree that such a separation or partition is unnecessary or inadvisable). If the Third-Party Claim cannot be transferred to the Indemnifying Party or separated or partitioned so as to allow each party to solely defend the claim
relating to its own Benefit Plan, then L-3 shall defend the Third-Party Claim and Engility may elect to participate in (but not control) the defense, compromise, or settlement of any such Third-Party Claim at its own expense (including allocated
costs of Engility in-house counsel and other Engility personnel). 

  
 15 

 ARTICLE X 
 COOPERATION 
 Section 10.1. Cooperation. Following
the date of this Employee Matters Agreement, L-3 and Engility shall, and shall cause their respective Subsidiaries and Affiliates to, use reasonable best efforts to cooperate with respect to any employee compensation or benefits matters that L-3 or
Engility, as applicable, reasonably determines require the cooperation of both L-3 and Engility in order to accomplish the objectives of this Employee Matters Agreement. Without limiting the generality of the preceding sentence, (a) L-3 and
Engility shall cooperate in coordinating each of their respective payroll systems in connection with the transfers of Engility Employees to the Engility Group and the Distribution, and (b) L-3 shall transfer records to Engility as reasonably
necessary for the proper administration of Engility Benefit Plans, to the extent such records are in L-3’s possession. The obligations of the Engility Group and the L-3 Group to cooperate pursuant to this Section 10.1 shall remain in
effect until all audits of all Benefit Plans with respect to which the other party may have information have been completed or the applicable statute of limitations with respect to such audits has expired. 

ARTICLE XI 

MISCELLANEOUS 
 Section 11.1. Further Assurances. Prior to the Distribution, if either party identifies any commercial or other service that is needed to ensure a smooth and orderly transition of its
business in connection with the consummation of the transactions contemplated hereby, and that is not otherwise governed by the provisions of this Employee Matters Agreement, the parties will cooperate in determining whether there is a mutually
acceptable arm’s-length basis on which the other party will provide such service under the Transition Services Agreement. 

Section 11.2. Employment Tax Reporting Responsibility. Engility and L-3 hereby agree to follow the standard procedure
for United States employment tax withholding as provided in Section 4 of Rev. Proc. 2004-53, I.R.B. 2004-35. 

Section 11.3. Data Privacy. The parties agree that any applicable data privacy Laws and any other obligations of the
Engility Group and the L-3 Group to maintain the confidentiality of any employee information or information held by any Benefit Plans in accordance with applicable Law shall govern the disclosure of employee information among the parties under this
Employee Matters Agreement. Engility and L-3 shall ensure that they each have in place appropriate technical and organizational security measures to protect the personal data of the Engility Employees and Engility Ex-Employees. 

Section 11.4. Third Party Beneficiaries. Nothing contained in this Employee Matters Agreement shall be construed to
create any third-party beneficiary rights in any individual, including without limitation any current or former employee of L-3 or any of its Affiliates (including any dependent or beneficiary thereof) nor shall this Employee Matters Agreement be
deemed to amend any Benefit Plan or to prohibit L-3, Engility or their respective Affiliates from amending or terminating any Benefit Plan. 

  
 16 

 Section 11.5. Effect if Distribution Does Not Occur. If the Distribution
does not occur, then all actions and events that are, under this Employee Matters Agreement, to be taken or occur effective as of the Distribution, or otherwise in connection with the Distribution shall not be taken or occur except to the extent
specifically agreed by the parties. 
 Section 11.6. Incorporation of Distribution Agreement Provisions. The
following provisions of the Distribution Agreement are hereby incorporated herein by reference, and unless otherwise expressly specified herein, such provisions shall apply as if fully set forth herein (references in this Section 11.8 to an
“Article” or “Section” shall mean Articles or Sections of the Distribution Agreement, and references in the material incorporated herein by reference shall be references to the Distribution Agreement): Article II (relating
to Conveyance of Certain Assets; Assumption of Certain Liabilities); Article VI (relating to Release and Indemnification); Article XI (relating to Information; Separation of Data); Section 3.03 (relating to Conditions Precedent to the
Distribution); and Article XIII (relating to Miscellaneous). 
 Section 11.7. No Representation or
Warranty. L-3 makes no representation or warranty with respect to any matter in this Employee Matters Agreement, including, without limitation, any representation or warranty with respect to the legal or tax status or compliance of any Benefit
Plan, compensation arrangement or Employment Agreement, and L-3 disclaims any and all liability with respect thereto. 
 [The
remainder of this page is intentionally left blank.] 

  
 17 

 IN WITNESS WHEREOF, the parties have caused this Employee Matters Agreement to be executed
by their duly authorized representatives. 
  

					
	L-3 COMMUNICATIONS CORPORATION
		
	By:	 	 Steven M. Post

		 	Name:	 	Steven M. Post
		 	Title:	 	Senior Vice President
	
	ENGILITY CORPORATION
		
	By:	 	 Thomas O. Miiller

		 	Name:	 	Thomas O. Miiller
		 	Title:	 	Senior Vice President, General Counsel and Corporate Secretary

 Acknowledged and agreed: 

 

					
	L-3 COMMUNICATIONS HOLDINGS, INC.
		
	By:	 	 Steven M. Post

		 	Name:	 	Steven M. Post
		 	Title:	 	Senior Vice President
	
	ENGILITY HOLDINGS, INC.
		
	By:	 	 Thomas O. Miiller

		 	Name:	 	Thomas O. Miiller
		 	Title:	 	Senior Vice President, General Counsel and Corporate Secretary

 Schedule 1.2(a) 

Engility Group 
 The
members of the Engility Group are: 
 Engility Holdings, Inc. 
 Engility Corporation 
 Engility Services, Inc.1 
 Forfeiture Support Associates, LLC 
 MPRI International Services, Ltd. 

Titan Deutschland GmbH 
 Titan Italia Srl

 International Resources Group Ltd. 

IRG Systems Gouth Asia Private Limited 
 Cayenta,
Inc. 
 LinCom Wireless, Inc. 
 Titan
Systems Solutions UK Ltd. 
 Titan Wireless, Inc. 
 URS Coleman, LLC 
 The Engility Group also includes any Affiliates of the forgoing that have
outstanding equity securities that are owned, directly or indirectly, by any of the foregoing, except for: (i) L-3 Domestic Holdings, Inc. (“LDHI”) and (ii) any Persons that have outstanding equity securities that are owned,
directly or indirectly, by LDHI. 
  

	1 	 To be merged into Engility Corporation on the Distribution Date. 

 Schedule 4.2(a)(i) 

Participation Period Plans 
  

	1.	L-3 Communications Corporation Group Health Plan 

 Medical Plans: 
 Self-Insured Plans 

 

	 	•	 	 Aetna HealthFund HRA Medical Plan – Option I 

  

	 	•	 	 Aetna HealthFund HRA Medical Plan – Option II 

  

	 	•	 	 Aetna Choice POS II Medical Plan 

  

	 	•	 	 Aetna Out-of-Area Medical Plan 

  

	 	•	 	 Blue Cross Blue Shield EPO Medical Plan 

  

	 	•	 	 L-3 Communications Prescription Drug Plan 

 Insured Plans 
  

	 	•	 	 Aetna Executive Reimbursement Plan 

  

	 	•	 	 Aetna International Medical Plan 

  

	 	•	 	 HMSA PPO Medical Plan for Grandfathered Employees 

  

	 	•	 	 HMSA HMO Medical Plan for Grandfathered Employees 

  

	 	•	 	 Kaiser California HMO Medical Plan 

  

	 	•	 	 Kaiser Mid-Atlantic HMO Medical Plan 

  

	 	•	 	 Aetna Managed Choice POS (Open Access) – (for SCA Employees at MPRI and GS&ES) 

 

	 	•	 	 Aetna Open Access Managed Choice (Aetna Health Fund) – (for SCA Employees at MPRI and GS&ES) 

 

	 	•	 	 L-3 Employee Assistance Plan (Empathia) 

 Dental Plans 
 Self-Insured Plans 

 

	 	•	 	 Aetna PPO Dental Plan 

 Insured Plans 
  

	 	•	 	 Aetna DMO Dental Plan 

  

	 	•	 	 Aetna International Dental Plan 

  

	 	•	 	 Aetna DENTAL PPO/PDN (for SCA Employees at MPRI and GS&ES) 

WageWorks Health Care Flexible Spending Account (HCFSA) 
 Vision Plans 
 Self-Insured Plan 

 

	 	•	 	 Vision Service Plan 

 Insured Plans 

 

	 	•	 	 Vision Service Plan SCA Employees at MRPI & GS&ES 

 

	2.	L-3 Communications Corporation Welfare Plan 

 Aetna Short Term Disability Insurance Plan 
 Aetna Long Term Disability Insurance
Plan 
 Aetna Basic Life Insurance Plan 
 Aetna Basic Accidental Death and Dismemberment (AD&D) Insurance Plan 

WageWorks Dependent Care Flexible Spending Account (DCFSA) 

 

	3.	Other L-3 Plans 

WageWorks Commuter Benefit Plan 
  

	4.	Voluntary Benefits Plans 

Marsh Voluntary Benefits 
  

	 	•	 	 Group Universal Life (GUL) (MetLife) 

  

	 	•	 	 Voluntary Accidental Death and Dismemberment (VAD&D) Insurance Plan (Chartis) 

 

	 	•	 	 Long Term Care (Prudential) 

  

	 	•	 	 Group Home & Auto (MetLife, Travelers, Liberty Mutual, Progressive) 

 

	 	•	 	 MetLaw Legal Plan (Hyatt Legal Plans) 

 Other Voluntary Plans 
  

	 	•	 	 ASI Tricare Supplement Plan 

  
 21 

 Schedule 4.2(a)(ii) 

Participation Period Plans 
  

	1.	L-3 Communications Corporation Group Health Plan 

 Medical Plans: 
 Self-Insured Plans 

 

	 	•	 	 Aetna HealthFund HRA Medical Plan – Option I 

  

	 	•	 	 Aetna HealthFund HRA Medical Plan – Option II 

  

	 	•	 	 Aetna Choice POS II Medical Plan 

  

	 	•	 	 Aetna Out-of-Area Medical Plan 

  

	 	•	 	 Blue Cross Blue Shield EPO Medical Plan 

  

	 	•	 	 L-3 Communications Prescription Drug Plan 

 Insured Plans 
  

	 	•	 	 Aetna International Medical Plan 

  

	 	•	 	 HMSA PPO Medical Plan for Grandfathered Employees 

  

	 	•	 	 HMSA HMO Medical Plan for Grandfathered Employees 

  

	 	•	 	 Kaiser California HMO Medical Plan 

  

	 	•	 	 Kaiser Mid-Atlantic HMO Medical Plan 

  

	 	•	 	 Aetna Managed Choice POS (Open Access) – (for SCA Employees at MPRI and GS&ES) 

 

	 	•	 	 Aetna Open Access Managed Choice (Aetna Health Fund) – (for SCA Employees at MPRI and GS&ES) 

 

	 	•	 	 L-3 Employee Assistance Plan (Empathia) 

 Dental Plans 
 Self-Insured Plans 

 

	 	•	 	 Aetna PPO Dental Plan 

 Insured Plans 
  

	 	•	 	 Aetna DMO Dental Plan 

  

	 	•	 	 Aetna International Dental Plan 

  

	 	•	 	 Aetna DENTAL PPO/PDN (for SCA Employees at MPRI and GS&ES) 

WageWorks Health Care Flexible Spending Account (HCFSA) 
 Vision Plans 
 Self-Insured Plan 

 

	 	•	 	 Vision Service Plan 

 Insured Plans 
  

	 	•	 	 Vision Service Plan SCA Employees at MRPI & GS&ES 

	2.	L-3 Communications Corporation Welfare Plan 

 Aetna Short Term Disability Insurance Plan 
 Aetna Basic Life Insurance Plan

 Aetna Basic Accidental Death and Dismemberment (AD&D) Insurance Plan 

WageWorks Dependent Care Flexible Spending Account (DCFSA) 

 

	3.	Other L-3 Plans 

WageWorks Commuter Benefit Plan 
  

	4.	Voluntary Benefits Plans 

Marsh Voluntary Benefits 
  

	 	•	 	 Group Universal Life (GUL) (MetLife) 

  

	 	•	 	 Voluntary Accidental Death and Dismemberment (VAD&D) Insurance Plan (Chartis) 

 

	 	•	 	 Long Term Care (Prudential) 

  

	 	•	 	 Group Home & Auto (MetLife, Travelers, Liberty Mutual, Progressive) 

 

	 	•	 	 MetLaw Legal Plan (Hyatt Legal Plans) 

 Other Voluntary Plans 
  

	 	•	 	 ASI Tricare Supplement Plan 

  
 23 

 Schedule 4.3 
 Engility Spin-Off Welfare Plans To Be Established By Distribution Date 

Aetna Long Term Disability Insurance Plan (July 1, 2012) 
 Business Travel Accident Insurance Plan (Chartis) – Spin Date 

 Schedule 5.1 
 Split DC Plans 
 L-3 Communications Master Savings Plan 

 Schedule 6.1(a) 

Engility Spinoff Nonqualified Plans 
 L-3 Communications Corporation Deferred Compensation Plan I 
 L-3 Communications Corporation
Deferred Compensation Plan II 
 Schedule 6.1(b) 
 Engility Retained Nonqualified Plan 
 MPRI Long Term Deferred Incentive Plan 

 Schedule 7.1(a) 

Split ESPP 
 L-3
Communications Corporation Amended and Restated 2009 Employee Stock Purchase PlanTax Matters Agreement - L-3 Communications Holdings, Inc. and Engility Holdings

 Exhibit 10.2 
 EXECUTION COPY 
 TAX MATTERS AGREEMENT 

This TAX MATTERS AGREEMENT is dated as of July 16, 2012, by and among L-3 Communications Holdings, Inc., a Delaware corporation
(“L-3”), and Engility Holdings, Inc., a Delaware corporation (“Spinco” and, together with L-3, the “Parties”, and each individually, a “Party”). 

WHEREAS, as of the date hereof, L-3 is the common parent of an affiliated group of domestic corporations within the meaning of
Section 1504(a) of the Code (the “Affiliated Group”), and the members of the Affiliated Group have heretofore joined in filing consolidated federal Income Tax Returns; 

WHEREAS, L-3 intends to distribute all of the outstanding shares of stock of Spinco pro rata to the holders of L-3 common stock
in a transaction that qualifies under Section 355 of the Code; and 
 WHEREAS, as a result of the Distribution, the
Parties desire to enter into this Tax Matters Agreement to provide for certain Tax matters, including the assignment of responsibility for the preparation and filing of Tax Returns, the payment of and indemnification for Taxes (including Taxes with
respect to the Distribution and related transactions as contemplated in the Distribution Agreement and the other Ancillary Agreements), entitlement to refunds of Taxes, and the prosecution and defense of any Tax controversies; 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby
agree as follows: 
 ARTICLE I. DEFINITIONS 
 SECTION 1.1. General. Capitalized terms used in this Agreement and not defined herein shall have the meanings that such terms have in the Distribution Agreement. As used in this Agreement, the
following terms shall have the following meanings: 
 “Affiliated Group” is defined in the
preamble hereof. 
 “Agreement” means this Tax Matters Agreement. 

“Applicable Rate” is defined in the Distribution Agreement. 

“Business Day” or “Business Days” means a day which is not a Saturday, Sunday or a day
on which banks in New York City are authorized or required by law to close. 
 “Closing of the Books
Method” means the apportionment of items between portions of a taxable period based on a closing of the books and records on the Distribution Date (as if the Distribution Date was the end of the taxable period). 

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

“Covered Spinco State Income Tax Return” means any state or local Income Tax Return of Spinco or any
Spinco Subsidiary for any taxable period ending on or before the Distribution Date that Spinco is legally obligated to file after the Distribution Date according to the laws of the relevant taxing jurisdiction. 

 “Consolidated Return” means any Income Tax Return filed
pursuant to Section 1502 of the Code, or any comparable combined, consolidated, or unitary group Income Tax Return filed under state or local Tax law with respect to which L-3 or any L-3 Subsidiary is the parent entity. 

“Distribution” is defined in the Distribution Agreement. 

“Distribution Agreement” means the agreement entitled “Distribution Agreement” entered into by
L-3 and Spinco dated as of July 16, 2012. 
 “Distribution Date” means the Business Day on
which the Distribution is effected. 
 “Final Determination” means the final resolution of
liability for any Tax for any taxable period, including any related interest or penalties, by or as a result of: (i) a final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a closing
agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or comparable agreement under the laws of other jurisdictions which resolves the entire Tax liability for any taxable period; (iii) any allowance of a refund
or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered by the jurisdiction imposing the Tax; or (iv) any other final disposition. 

“Force Majeure” is defined in the Distribution Agreement. 

“Included Party” is defined in Section 3.3(b). 

“Income Tax” means any income, franchise or similar Taxes imposed on (or measured by) net income or net
profits. 
 “Income Tax Returns” means all Tax Returns relating to Income Taxes. 

“Indemnified Liability” means any liability subject to indemnification pursuant to Section 4.3.

 “IRS” means the United States Internal Revenue Service. 

“L-3” is defined in the preamble hereof. 

“L-3 Business” is defined in the Distribution Agreement. 

“L-3 Subsidiary” means any Subsidiary of L-3 other than Spinco or any Spinco Subsidiary. 

“Opinion” means the opinion delivered by Simpson Thacher & Bartlett LLP pursuant to
Section 3.03(c) of the Distribution Agreement. 
 “Other Tax” means any Tax other than an
Income Tax. 
 “Party” is defined in the preamble hereof. 

“Payment Period” is defined in Section 2.4(c). 

“Preparing Party” is defined in Section 3.3(b). 

  
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 “Prime Rate” is defined in the Distribution Agreement.

 “Proceeding” means any audit, examination or other proceeding brought by a Taxing Authority
with respect to Taxes. 
 “Prohibited Acts” is defined in Section 4.2. 

“Restricted Period” means the two-year period commencing on the Distribution Date. 

“Ruling” means the private letter ruling issued by the IRS to L-3 dated February 9, 2012 and any
supplemental rulings related thereto. 
 “Spinco” is defined in the preamble hereof. 

“Spinco Business” is defined in the Distribution Agreement. 

“Spinco’s Share” is defined in Section 2.1(b). 

“Spinco Subsidiary” means (i) any Subsidiary of Spinco after the Distribution Date and (ii) any
Subsidiary of Spinco before the Distribution Date the successor of which is described in (i) above. 

“Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company or
other entity in which such Person, a Subsidiary of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, has either (i) a majority ownership in the equity thereof, (ii) the power, under ordinary
circumstances, to elect, or to direct the election of, a majority of the board of directors or other governing body of such entity or (iii) the title or function of general partner, or the right to designate the Person having such title or
function. 
 “Stub Taxable Period” is defined in Section 3.3(a). 

“Tax” or “Taxes” means any federal, state, local or foreign income, gross receipts,
property, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add on minimum, ad valorem, transfer or excise tax, or any other tax, custom, duty, governmental fee or other like assessment or charge of any kind
whatsoever, together with any interest or penalty, imposed by any Taxing Authority. 
 “Taxing
Authority” means any governmental authority (whether United States or non-United States, and including, any state, municipality, political subdivision or governmental agency) responsible for the imposition of any Tax. 

“Tax Package” is defined in Section 3.3(b). 

“Tax Returns” means all reports or returns (including information returns and amended returns) required
to be filed or that may be filed for any period with any Taxing Authority in connection with any Tax or Taxes (whether domestic or foreign). 
 SECTION 1.2. References; Interpretation. References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice
versa. The words “include,” “includes” and “including” when used in this Agreement shall be deemed to be followed by the phrase “without limitation.” Unless the context otherwise requires, references in this

  
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Agreement to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, such Agreement. Unless the context otherwise
requires, the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this
Agreement. 
 ARTICLE II. ALLOCATION OF TAX LIABILITIES 

SECTION 2.1. Payment of Taxes. 
 (a) Income Taxes. With respect to any Income Tax Return required to be filed after the Distribution Date, the Party responsible for the filing thereof pursuant to Sections 3.1 and 3.2 shall pay to
the relevant Taxing Authority all Taxes due or payable in connection with filing such Income Tax Return and shall be entitled to any refunds (including, for the avoidance of doubt, any similar credit or offset against Taxes) in connection therewith.
Notwithstanding the foregoing, (i) L-3 shall be liable for, and shall be entitled to any refunds of, Taxes with respect to any Covered Spinco State Income Tax Return and (ii) with respect to any state or local Income Tax Return of Spinco
or any Spinco Subsidiary for any taxable period that includes but does not end on the Distribution Date, L-3 shall be liable for, and shall be entitled to any refunds of, Taxes relating to the portion of the taxable period ending on or before the
Distribution Date and Spinco shall be liable for, and shall be entitled to any refunds of, Taxes relating to the portion of the taxable period beginning after the Distribution Date. For the purpose of (ii) above, Taxes shall be apportioned
between the two portions of such taxable period in accordance with the Closing of the Books Method. 
 (b) Adjusted Income
Taxes. Notwithstanding Section 2.1(a), in the event of any subsequent adjustment to the amount of any Income Taxes relating to a taxable period beginning before the Distribution Date, Spinco shall be liable for its share of any increase in
Taxes and shall be entitled to its share of any refunds (Spinco’s share of any increase in Taxes or refunds, “Spinco’s Share”), and L-3 shall be liable for all other increases in Taxes and shall be entitled to all other
refunds. Spinco’s Share shall be determined in the reasonable discretion of L-3 in accordance with the following principles: 
 (i) In the case of any Income Tax Return that relates solely to the Spinco Business, Spinco’s Share shall include any increase in Taxes or refunds attributable to such Income Tax Return; and

 (ii) In the case of any Income Tax Return that relates to both the Spinco Business and the L-3 Business,
Spinco’s Share shall be determined by comparing the amount of Taxes that would be owed on (x) Tax items relating to the Spinco Business and (y) Tax items not specifically related to either the Spinco Business or the L-3 Business
(including, without limitation, corporate overhead) allocable to Spinco based on a methodology reasonably determined by L-3, with and without the adjustments relating to the items listed in (x) and (y) above. 

(c) Other Taxes. Spinco shall be liable for, and shall be entitled to any refunds of, all Other Taxes (excluding any such Taxes
covered by Section 4.4 (g)) which Spinco or any Spinco Subsidiary is required to pay, or is entitled to receive, after the Distribution Date under applicable law. L-3 shall be liable for, and shall be entitled to any refunds of, all Other Taxes
(excluding any such Taxes covered by Section 4.4 (g)) which L-3 or any L-3 Subsidiary is required to pay, or is entitled to receive, after the Distribution Date under applicable law. 

(d) Distribution Taxes. Notwithstanding anything in this Section 2.1 to the contrary, and except as provided in Article IV,
L-3 shall be liable for, and shall be entitled to any refunds of, any Income 

  
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Taxes imposed or incurred as a result of (i) the Distribution failing to qualify under Section 355 of the Code, (ii) the stock of Spinco distributed in the Distribution failing to
be treated as qualified property pursuant to Section 355(d) or 355(e) of the Code or (iii) L-3 otherwise recognizing any gain in connection with the Distribution (including, for the avoidance of doubt, the related internal transactions
described in the Ruling). 
 (e) State Combinations. Notwithstanding anything in this Section 2.1 to the contrary,
L-3 shall be liable for any incremental state Income Taxes, and shall be entitled to receive the benefit of any reduction in state Income Taxes, resulting from a Final Determination after the Distribution Date requiring L-3 or any of its
Subsidiaries (including, for the avoidance of doubt, Subsidiaries of L-3 before the Distribution Date) that file on a separate basis to file a combined, consolidated, or unitary group Tax Return for a taxable period beginning before the Distribution
Date. 
 SECTION 2.2. Indemnity. 
 (a) Subject to Article IV, L-3 shall indemnify Spinco from all liability for Taxes for which L-3 is responsible pursuant to Section 2.1. 

(b) Spinco shall indemnify L-3 from all liability for Taxes for which Spinco is responsible pursuant to Section 2.1. 

(c) Unless otherwise agreed in writing, the indemnifying Party shall pay to the indemnified Party the amount required to be paid pursuant
to Section 2.2(a) or (b) above within fifteen (15) days of being notified of the amount due by the indemnified Party, but no earlier than two Business Days prior to the date payment of such amount is required to be made to the
applicable Taxing Authority. The notice by the indemnified Party requesting such payment shall be accompanied by the calculations and other information used to determine the indemnifying Party’s obligations hereunder. Such payment shall be paid
by the indemnifying Party to the indemnified Party by wire transfer of immediately available funds to an account designated by the indemnified Party by written notice to the indemnifying Party prior to the due date of such payment. 

(d) If an adjustment to Income Taxes pursuant to a Final Determination in a Proceeding results in an adjustment described in
Section 2.1(b), the indemnifying Party shall pay to the indemnified Party the amount computed pursuant to Section 2.1(b) within fifteen (15) days of the Final Determination, unless otherwise agreed in writing. 

SECTION 2.3. Contests. 
 (a) Subject to Article IV, the right to control the conduct of any Proceeding shall belong to the Party responsible, pursuant to Sections 3.1 and 3.2, for the filing of the Tax Return to which such
Proceeding relates; provided, however, that any Income Tax Proceeding commencing before the Distribution Date shall be controlled by L-3. If the Party not controlling a Proceeding could have an indemnification obligation for an adjustment to Tax
pursuant to such Proceeding, such Party shall be entitled to participate in (but not control) such Proceeding at its own cost and expense. 
 (b) After the Distribution Date, each Party shall promptly notify the other Party in writing upon receipt of written notice of the commencement of any Proceeding or of any demand or claim upon it, which,
if determined adversely, would be grounds for indemnification from such other Party pursuant to Section 2.2 or could reasonably be expected to have an adverse Tax effect on the other Party. Each Party shall, on a timely basis, keep the other
Party informed of all developments in the Proceeding and provide such other Party with copies of all pleadings, briefs, orders, and other correspondence pertaining thereto. 

  
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 SECTION 2.4. Treatment of Payments; After Tax Basis. 

(a) L-3 and Spinco agree to treat any indemnification payments (other than payments of interest pursuant to Section 2.4(c)) pursuant
to this Agreement as either a capital contribution or a distribution, as the case may be, between L-3 and Spinco occurring immediately prior to the Distribution. If the receipt or accrual of any such payment (other than payments of interest pursuant
to Section 2.4(c)) results in taxable income to the indemnified Party, such payment shall be increased so that, after the payment of any Taxes with respect to the payment, the indemnified Party shall have realized the same net amount it would
have realized had the payment not resulted in taxable income. 
 (b) To the extent that any liability for Taxes, that is subject
to indemnification under Section 2.2, gives rise to a deduction, credit or other Tax benefit to the indemnified Party, the amount of any payment made under Section 2.2 shall be decreased by taking into account any actual reduction in Taxes
of the indemnified Party resulting from such Tax benefit. If a reduction in Taxes of the indemnified Party occurs in a taxable period following the period in which the indemnification payment is made, the indemnified Party shall promptly repay the
indemnifying Party the amount of such reduction when actually realized. 
 (c) Payments made pursuant to this Agreement that are
not made within the period prescribed in this Agreement or, if no period is prescribed, within thirty (30) days after demand for payment is made (the “Payment Period”) shall bear interest for the period from and including the
date immediately following the last date of the Payment Period through and including the date of payment at a rate of simple interest per annum equal to the Applicable Rate. Such interest will be payable at the same time as the payment to which it
relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. 
 ARTICLE III.
PREPARATION AND FILING OF TAX RETURNS 
 SECTION 3.1. L-3’s Responsibility for the Preparation and Filing of Tax
Returns. 
 (a) L-3 shall prepare or cause to be prepared (i) all Consolidated Returns, (ii) all other Tax Returns
that it is legally obligated to file after the Distribution Date according to the laws of the relevant taxing jurisdiction and (iii) all Covered Spinco State Income Tax Returns; provided, however, that Spinco shall have the right to review and
comment with respect to items on such Tax Returns if and to the extent such items directly relate to Taxes for which Spinco would be liable under Section 2.1, such comment not to be unreasonably rejected. L-3 shall file or cause to be filed all
Tax Returns referred to in (i) and (ii) above and shall submit all Tax Returns referred to in (iii) above to Spinco for filing pursuant to Section 3.2. 
 (b) To the extent that Spinco or any Spinco Subsidiary is included in any Consolidated Return for a taxable period that includes the Distribution Date, L-3 shall include in such Consolidated Return the
results of Spinco and the Spinco Subsidiaries on the basis of the closing of the books method as provided in Treas. Reg. Section 1.1502-76(b)(2)(i). 
 SECTION 3.2. Spinco’s Responsibility for the Preparation and Filing of Tax Returns. Spinco shall prepare or cause to be prepared all Tax Returns that it is legally obligated to file after the
Distribution Date according to the laws of the relevant taxing jurisdiction, other than Covered Spinco State Income Tax Returns; provided, however, that L-3 shall have the right to review and comment with respect to items on such Tax Returns if and
to the extent such items directly relate to Taxes for which L-3 would be liable under Section 2.1, such comment not to be unreasonably rejected. Spinco shall file or 

  
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cause to be filed all Tax Returns that it is legally obligated to file after the Distribution Date according to the laws of the relevant taxing jurisdiction (including, for the avoidance of
doubt, all Covered Spinco State Income Tax Returns prepared by L-3 pursuant to Section 3.1(a)). 
 SECTION 3.3. Manner
of Preparation. 
 (a) To the extent permitted by law, any taxable period of Spinco or any Spinco Subsidiary for any state
or local Income Tax purposes that would otherwise include but not end on the Distribution Date shall be bifurcated into two separate taxable periods, one ending on the Distribution Date and the other beginning on the day following the Distribution
Date (each a “Stub Taxable Period”), and a separate Income Tax Return for each Stub Taxable Period shall be prepared and filed by the Party responsible for such preparation and filing pursuant to Sections 3.1 and 3.2. 

(b) To the extent any Tax Return required to be prepared by L-3 pursuant to Section 3.1 contains items relating to the Spinco
Business or any Tax Return required to by prepared by Spinco pursuant to Section 3.2 contains items relating to the L-3 Business, the Party not responsible for preparing such Tax Return (the “Included Party”) shall, at its own
cost and expense, prepare and deliver to the Party responsible for preparing such Tax Return (the “Preparing Party”) a true and correct accounting of all relevant Tax Items relating to the Included Party (or any of its Subsidiaries)
for the taxable period covered by such Tax Return (a “Tax Package”). Such Tax Package shall be provided in a timely manner consistent with the past practices of the Parties and their Affiliates. In the event an Included Party does
not fulfill its obligations pursuant to this Section 3.3(b), the Preparing Party shall be entitled, at the sole cost and expense of the Included Party, to prepare or cause to be prepared the information required to be included in the Tax
Package for purposes of preparing any such Tax Return. 
 (c) All Tax Returns for taxable periods beginning before the
Distribution Date that are required to be filed after the Distribution Date shall be prepared in a manner consistent with past practices (e.g., accounting methods and accelerating deductions through bonus depreciation or otherwise) and the Preparing
Party shall, at the Included Party’s request, share with the Included Party any part of such Tax Returns relating to the Included Party (or any of its Subsidiaries) after the filing thereof. 

(d) All Income Tax Returns filed on or after the Distribution Date shall be prepared in a manner that is consistent with the Ruling and
the Opinion, or any other rulings obtained from other Taxing Authorities in connection with the Distribution (in the absence of a Final Determination to the contrary) and shall be filed on a timely basis (including pursuant to extensions) by the
Party responsible for such filing pursuant to Sections 3.1 and 3.2. In the absence of a Final Determination to the contrary or a change in law, all Income Tax Returns of Spinco and its Subsidiaries for taxable periods beginning before the
Distribution Date shall be prepared consistent with the Tax Returns of the Affiliated Group. 
 (e) Except to the extent
required by law, Spinco shall not amend any Income Tax Return relating to a taxable period (or portion thereof) ending on or before to the Distribution Date without the written consent of L-3, not to be unreasonably withheld. 

SECTION 3.4. Carrybacks. To the extent permitted by law, Spinco and its Subsidiaries shall elect to forego a carryback of any net
operating losses, capital losses or credits for any taxable period ending after the Distribution Date to a taxable period, or portion thereof, ending on or before the Distribution Date. Notwithstanding anything herein to the contrary, Spinco and its
Subsidiaries shall not have any right to receive the benefit of any carryback of Tax attributes created in a taxable period beginning after the Distribution Date into a Consolidated Return. 

  
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 SECTION 3.5. Retention of Records; Access. 

(a) L-3 and Spinco shall, and shall cause each of their Subsidiaries to, retain adequate records, documents, accounting data and other
information (including computer data) necessary for the preparation and filing of all Tax Returns required to be filed by L-3 or Spinco and for any Proceeding relating to such Tax Returns or to any Taxes payable by L-3 or Spinco. 

(b) L-3 and Spinco shall, and shall cause each of their Subsidiaries to, provide reasonable access to (i) all records, documents,
accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns required to be filed by L-3 or Spinco and for any Proceeding relating to such Tax Returns or to any Taxes payable by L-3 or
Spinco and (ii) its personnel and premises, for the purpose of the preparation, review or audit of such Tax Returns, or in connection with any Proceeding, as reasonably requested by either L-3 or Spinco. 

(c) The obligations set forth above in Sections 3.5(a) and 3.5(b) shall continue until the longer of (i) the time of a Final
Determination or (ii) expiration of all applicable statutes of limitations, to which the records and information relate. For purposes of the preceding sentence, each Party shall assume that no applicable statute of limitations has expired
unless such Party has received notification or otherwise has actual knowledge that such statute of limitations has expired. 

SECTION 3.6. Confidentiality; Ownership of Information; Privileged Information. The provisions of Article XI of the Distribution
Agreement relating to confidentiality of information, ownership of information, privileged information and related matters shall apply with equal force to any records and information prepared and/or shared by and among the Parties in carrying out
the intent of this Agreement. 
 ARTICLE IV. DISTRIBUTION AND RELATED TAX MATTERS 

Notwithstanding anything herein to the contrary, the provisions of this Article IV shall govern all matters among the parties hereto
related to an Indemnified Liability. 
 SECTION 4.1. Compliance with the Ruling and the Opinion. L-3 and Spinco hereby
confirm and agree to comply with any and all covenants, agreements and representations in the Ruling and the Opinion applicable to L-3 and Spinco, respectively. 
 SECTION 4.2. Opinion Requirement for Major Transactions Undertaken by Spinco During the Restricted Period. Other than pursuant to the transactions contemplated by the Distribution Agreement, Spinco
agrees that during the Restricted Period it will not (i) merge or consolidate with or into any other corporation, (ii) liquidate or partially liquidate (within the meaning of such terms as defined in Section 346 and Section 302,
respectively, of the Code), (iii) sell or transfer all or substantially all of its assets (within the meaning of Rev. Proc. 77-37, 1977-2 C.B. 568) in a single transaction or series of related transactions, or sell or transfer any portion of
Spinco’s assets that would violate the “continuity of business enterprise” requirement of Treas. Reg. Section 1.368-1(d), (iv) redeem or otherwise repurchase any of its capital stock other than pursuant to open market stock
repurchase programs meeting the requirements of section 4.05(1)(b) of Rev. Proc. 96-30, 1996-1 C.B. 696, (v) cease the active conduct of its trade or business within the meaning of Section 355(b) of the Code, (vi) enter into any
negotiations, agreements or arrangements with respect to transactions or events (including any transactions described in Sections 4.2(i)-(iv) (and, for this purpose, including any redemptions made pursuant to open market stock repurchase
programs), stock issuances (pursuant to the exercise of options or otherwise), option grants, capital contributions or acquisitions, entering into any partnership or joint venture arrangements, or a series of such transactions or events, but
excluding the Distribution) that may cause the Distribution to be treated as part of a plan pursuant to which one or more persons acquire directly or indirectly stock of 

  
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Spinco representing a “50-percent or greater interest” therein within the meaning of Section 355(d)(4) of the Code, or (vii) take any other action, or permit any Spinco
Subsidiary to take any such action, where the taking of such action could reasonably be expected to cause the Distribution to fail to qualify under Section 355 of the Code or cause the stock of Spinco distributed in the Distribution to fail to
be treated as qualified property pursuant to Section 355(e) of the Code (the acts listed in (i)-(vii) collectively, the “Prohibited Acts”). Notwithstanding the foregoing, Spinco may take any of the Prohibited Acts, subject
to Section 4.3, if (x) Spinco first obtains (at its expense) an opinion in form and substance reasonably acceptable to L-3 of a nationally recognized law firm or a “big four” accounting firm reasonably acceptable to L-3, which
opinion may be based on usual and customary factual representations (reasonably acceptable to L-3) or (y) at Spinco’s request, L-3 (at the expense of Spinco) obtains a supplemental ruling from the IRS, that such Prohibited Act or Acts, and
any transaction related thereto, will not (a) affect any of the conclusions set forth in the Ruling, including (i) the qualification of the Distribution and certain internal transactions preceding the Distribution under Sections 355 and
368 of the Code and (ii) the nonrecognition of gain to L-3 in the Distribution, or (b) cause the stock of Spinco distributed in the Distribution to fail to be treated as qualified property pursuant to Sections 355(d) or 355(e) of the Code.
Spinco may also take any of the Prohibited Acts, subject to Section 4.3, with the consent of L-3 in its sole and absolute discretion. During the Restricted Period, Spinco shall provide all information reasonably requested by L-3 relating to any
transaction involving an acquisition (directly or indirectly) of Spinco stock within the meaning of Section 355(e) of the Code. 
 SECTION 4.3. Indemnification by Spinco. If, after the Distribution, Spinco or any of its Affiliates takes any action or enters into any agreement to take any action, including any of the Prohibited
Acts as defined in Section 4.2 of this Agreement, or if there is a breach by Spinco of Section 4.1 hereof, or if there is any direct or indirect acquisition of Spinco stock, and as a result (i) the Distribution shall fail to qualify
under Section 355 of the Code, (ii) the stock of Spinco distributed in the Distribution shall fail to be treated as qualified property pursuant to Section 355(d) or 355(e) of the Code or (iii) L-3 otherwise recognizes any gain in
connection with the Distribution (including, for the avoidance of doubt, the related internal transactions described in the Ruling), then Spinco shall indemnify and hold harmless L-3 against any and all Taxes imposed upon or incurred by L-3 (and any
Taxes of L-3 shareholders to the extent L-3 is liable with respect to such Taxes, whether to a Taxing Authority, to a shareholder or to any other person) as a result, unless such Taxes would, in any event, have been imposed upon or incurred by L-3
without regard to such actions, breaches or events, as determined at such time. L-3 shall be indemnified and held harmless under this Section 4.3 without regard to whether an opinion or supplemental ruling pertaining to the action pursuant to
Section 4.2 was obtained, and without regard to whether L-3 gave its consent to such action pursuant to Section 4.2 or otherwise. 
 SECTION 4.4. Procedural Matters. 
 (a) Notice. If either Spinco or
L-3 receives any written notice of deficiency, claim or adjustment or any other written communication from a Taxing Authority that may result in an Indemnified Liability, the Party receiving such notice or communication shall promptly give written
notice thereof to the other Party, provided that any delay by L-3 in so notifying Spinco shall not relieve Spinco of any liability to L-3 hereunder except to the extent Spinco is materially and adversely prejudiced by such delay. L-3 undertakes and
agrees that from and after such time as L-3 obtains knowledge that any representative of a Taxing Authority has begun to investigate or inquire into the Distribution (whether or not such investigation or inquiry is a formal or informal investigation
or inquiry), L-3 shall (i) notify Spinco thereof, provided that any delay by L-3 in so notifying Spinco shall not relieve Spinco of any liability to L-3 hereunder except to the extent Spinco is materially and adversely prejudiced by such delay,
(ii) consult with Spinco from time to time as to the conduct of such investigation or inquiry, (iii) provide Spinco with copies of all correspondence between L-3 or its representatives and such Taxing Authority or any representative
thereof pertaining to such investigation or inquiry, (iv) cooperate with 

  
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Spinco to permit a representative (reasonably satisfactory to L-3) of Spinco to be present at, and participate in (but not control), all meetings with such Taxing Authority or any representative
thereof pertaining to such investigation or inquiry, provided, that any costs relating to Spinco’s representation at such meetings shall be borne by Spinco, and (v) obtain Spinco’s consent, such consent not to be unreasonably
withheld, to any final agreement or resolution on any or all related issues, prior to settling or agreeing to finalize any determination which may result in any economic consequence to Spinco. 

(b) Tax Proceedings Controlled by L-3. With respect to any Proceeding that may result in an Indemnified Liability, L-3 shall
assume and direct the defense or settlement of such Proceeding, provided that Spinco shall be entitled to participate in such Proceeding at its own cost and expense; provided, however, that L-3 shall not settle, compromise or concede any such
Proceeding without Spinco’s consent, not to be unreasonably withheld. 
 (c) Tax Proceedings Controlled by Spinco.
If Spinco withholds consent to the settlement, compromise or concession of any Proceeding that is the subject of Section 4.4(b), Spinco may, upon confirmation in writing to L-3 that the liability asserted in such Proceeding would, if imposed
upon or incurred by L-3 or its Subsidiaries, be an Indemnified Liability, assume and direct the defense or settlement of the Proceeding, subject to the participation and consultation of L-3, provided that, if L-3 reasonably determines that Spinco
has failed to prosecute the Proceeding in a reasonable and diligent manner, L-3 may (at Spinco’s expense and subject to the provisions in Section 4.4(d)) reassume and direct the defense or settlement of the Proceeding. The following
provisions shall apply to any Proceeding control of which is assumed by Spinco pursuant to the preceding sentence. 
 (i) Upon request, during the course of the Proceeding, Spinco shall from time to time furnish L-3 with evidence reasonably satisfactory to L-3 of its ability to pay the full amount of the Indemnified
Liability. If at any time during such Proceeding, L-3 reasonably determines, after due investigation, that Spinco may not be able to pay the full amount of the Indemnified Liability, if required, then Spinco shall be required to furnish a guarantee
or performance bond satisfactory to L-3 in an amount equal to the amount of the Indemnified Liability asserted by the Taxing Authority. If Spinco fails to furnish such guarantee or bond, L-3 may reassume control of the Proceedings in accordance with
Section 4.4(d). 
 (ii) Spinco shall pay all expenses directly related to the Indemnified Liability,
including but not limited to reasonable fees for attorneys, accountants, expert witnesses or other consultants retained by it. 
 (iii) L-3 shall, at Spinco’s sole cost (including but not limited to any reasonable out-of-pocket costs incurred by L-3), take such action as Spinco may reasonably request (including but not limited
to the execution of powers of attorney for one or more persons designated by Spinco) in contesting the Indemnified Liability. Spinco shall, on a timely basis, keep L-3 informed of all developments in the Proceeding and provide L-3 with copies of all
pleadings, briefs, orders, and other written papers pertaining thereto. 
 (iv) Subject to satisfaction of the
conditions herein set forth, Spinco may direct L-3 to settle the Indemnified Liability on such terms and for such amount as Spinco may direct. L-3 may condition such settlement on receipt, prior to the settlement, from Spinco of the indemnity
payment with respect to the Indemnified Liability less any amounts to be paid directly by Spinco to the Taxing Authority. Spinco may direct L-3, at Spinco’s expense, to pay an asserted deficiency for the Indemnified Liability out of funds
provided by Spinco, and to file a claim for refund. 

  
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 If Spinco withholds consent to the settlement, compromise or concession of any Proceeding that is the
subject of Section 4.4(b) and does not assume control of such Proceeding pursuant to this Section 4.4(c) within thirty (30) days following the request by L-3 for such consent, such Proceeding shall be controlled and directed
exclusively by L-3 
 (d) Resumption by L-3 of Control of Tax Proceedings. With respect to any Proceeding control of
which is assumed by Spinco pursuant to Section 4.4(c), should (i) Spinco fail within thirty (30) days following request therefor to furnish to L-3 evidence of its ability to pay the full amount of the Indemnified Liability,
(ii) L-3 reasonably believe after due investigation that Spinco may not be able to pay the full amount of the Indemnified Liability, if required, and Spinco fails to furnish a guarantee or performance bond satisfactory to L-3 in an amount equal
to the amount of the Indemnified Liability then being asserted by the Taxing Authority, or (iii) L-3 reasonably determine that Spinco has failed to prosecute the Proceeding in a reasonable and diligent manner, then L-3 may reassume control of
the Proceeding and may settle such Proceeding in its discretion. 
 (e) Time and Manner of Payment. Unless otherwise
agreed in writing, Spinco shall pay to L-3 the amount with respect to an Indemnified Liability determined pursuant to a Final Determination (less any amount paid directly by Spinco to the Taxing Authority or made available to L-3 under
Section 4.4(d)) at least two Business Days prior to the date payment of the Indemnified Liability is required to be made to the Taxing Authority. Such payment shall be paid by Spinco to L-3 by wire transfer of immediately available funds to an
account designated by L-3 by written notice to Spinco prior to the due date of such payment. 
 (f) Refund of Amounts Paid by
Spinco. Should L-3 or any other member of the Affiliated Group receive a refund in respect of amounts paid by Spinco to any Taxing Authority on L-3’s behalf or paid by Spinco to L-3 for payment to a Taxing Authority with respect to an
Indemnified Liability, or should any such amounts that would otherwise be refundable to L-3 be applied or credited by the Taxing Authority to obligations of L-3 unrelated to an Indemnified Liability, then L-3 shall, promptly following receipt (or
notification of credit), remit such refund (including any statutory interest that is included in such refund or credited amount) to Spinco. 
 (g) Transfer Taxes. Notwithstanding anything herein to the contrary, L-3 shall bear any and all stamp, duty, transfer, sales and use or similar Taxes incurred in connection with the Distribution.

 (h) Cooperation. Subject to the provisions of Section 3.6, L-3 and Spinco shall reasonably cooperate with one
another in a timely manner in any Proceeding involving any matter that may result in an Indemnified Liability. L-3 and Spinco agree that such cooperation shall include, without limitation, making available to the other Party, during normal business
hours, all books, records and information, officers and employees (without substantial interruption of employment) necessary or useful in connection with any such judicial or administrative Proceeding. The Party requesting or otherwise entitled to
any books, records, information, officers or employees pursuant to this Section 4.4(h) shall bear all reasonable out-of-pocket costs and expenses (except reimbursement of salaries, employee benefits and general overhead) incurred in connection
with providing such books, records, information, officers or employees. 
 (i) Supplemental Rulings. L-3 shall provide
Spinco a copy of and an opportunity to comment upon any supplemental ruling sought from the IRS with respect to the Ruling and no supplemental ruling request shall be made without Spinco’s consent if such supplemental ruling would materially
expand Spinco’s indemnification obligations under Section 4.3. 

  
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 ARTICLE V. MISCELLANEOUS 

SECTION 5.1. Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been given
(a) when received, if such notice or communication is delivered by facsimile, email, hand delivery or overnight courier, and (b) three Business Days after mailing if such notice or communication is sent by United States registered or
certified mail, return receipt requested, first class postage prepaid. All notices and communications, to be effective, must be properly addressed to the party to whom the same is directed at its address as follows: 

If to L-3, to: 

L-3 Communications Holdings, Inc. 
 600 Third Avenue 
 New York, New York 10016 

Attention: Steven M. Post, General Counsel 
 Fax: (212) 805-5306 
 Email: steve.post@L-3com.com 

If to Spinco, to: 
 Engility Holdings, Inc. 
 3750 Centerview Drive 

Chantilly, Virginia 20151 
 Attention: Tom Miiller 
 Fax: (703) 708-5703 

Email: tom.miiller@engilitycorp.com 
 Either Party may, by written notice delivered to the other Party in accordance with this Section 5.1, change the address to which delivery of any notice shall thereafter be made. 

SECTION 5.2. Amendment and Waiver. This Agreement may not be altered or amended, nor may any rights hereunder be waived, except
by an instrument in writing executed by the Party or Parties to be charged with such amendment or waiver. No waiver of any terms, provision or condition of or failure to exercise or delay in exercising any rights or remedies under this Agreement, in
any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, provision, condition, right or remedy or as a waiver of any other term, provision or condition of this Agreement. 

SECTION 5.3. Entire Agreement. This Agreement constitutes the entire understanding of the Parties hereto with respect to the
subject matter hereof, superseding all negotiations, prior discussions and prior agreements and understandings relating to such subject matter. 
 SECTION 5.4. Assignment; Successors and Assigns. Neither of the Parties may assign its rights or delegate any of its duties under this Agreement without the prior written consent of each other
Party. This Agreement shall be binding upon, and shall inure to the benefit of, the Parties hereto and their respective successors and permitted assigns. 
 SECTION 5.5. Severability. In the event that any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, and the Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

  
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 SECTION 5.6. Governing Law; Jurisdiction. This Agreement shall be construed in
accordance with, and governed by, the laws of the State of New York, without regard to the conflicts of law rules of such state. Each of the Parties (a) consents to submit itself to the personal jurisdiction of the courts of the State of New
York or any federal court with subject matter jurisdiction located in the Southern District of New York (and any appeals court therefrom) in the event any dispute arises out of this Agreement or any transaction contemplated hereby, (b) agrees
that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (c) agrees that it will not bring any action relating to this Agreement or any transaction contemplated hereby in
any court other than such courts. 
 SECTION 5.7. Waiver of Jury Trial. 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 LITIGATION 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 LITIGATION, 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 5.7. 

SECTION 5.8. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
instrument, but all of which together shall constitute but one and the same Agreement. 
 SECTION 5.9. Third Party
Beneficiaries. This Agreement is solely for the benefit of the Parties and should not be deemed to confer upon third-parties any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without
reference to this Agreement. 
 SECTION 5.10. Force Majeure. No Party (or any Person acting on its behalf) shall have
any liability or responsibility for failure to fulfill any obligation (other than a payment obligation) under this Agreement, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a
consequence of circumstances of Force Majeure. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event: (a) notify the other Party of the nature and extent of any such Force
Majeure condition and (b) use reasonable best efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable. 
 SECTION 5.11. Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule
requiring construction or interpretation against the party drafting or causing any instrument to be drafted. 
 [Remainder of
page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the
day and year first above written. 
  

					
	L-3 COMMUNICATIONS HOLDINGS, INC.
		
	By:	 	 /s/ Steven M. Post

		 	Name:	 	Steven M. Post
		 	Title:	 	Senior Vice President
	
	ENGILITY HOLDINGS, INC.
		
	By:	 	 /s/ Thomas O. Miiller

		 	Name:	 	Thomas O. Miiller
		 	Title:	 	Senior Vice President, General Counsel and Corporate Secretary

  
 14

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