Document:

exv10w4

 

EXHIBIT 10.4

TAX SHARING AGREEMENT

BY AND BETWEEN

HILLENBRAND INDUSTRIES, INC.

AND

BATESVILLE HOLDINGS, INC.

DATED AS OF MARCH 31, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.2
	 	References to Time	 	 	14	 
	 
	 	 	 	 	 	 
	Section 1.3
	 	Effective Time	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE II RESPONSIBILITY FOR PAYMENT OF TAXES	 	 	14	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Income Taxes and Other Taxes	 	 	14	 
	 
	 	 	 	 	 	 
	Section 2.2
	 	Allocation of Taxes	 	 	15	 
	 
	 	 	 	 	 	 
	Section 2.3
	 	Timing of Payments of Taxes	 	 	18	 
	 
	 	 	 	 	 	 
	Section 2.4
	 	Credit or Refund of Estimated Payments by SpinCo	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE III PREPARATION AND FILING OF TAX RETURNS	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.1
	 	Preparation of Returns	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.2
	 	Procedures Relating to the Preparation and Filing of Tax Returns	 	 	19	 
	 
	 	 	 	 	 	 
	Section 3.3
	 	Tax Information Exchange and Tax Services	 	 	20	 
	 
	 	 	 	 	 	 
	Section 3.4
	 	Reasonable External Costs and Expenses	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE IV REFUNDS, CARRYBACKS AND AMENDED TAX RETURNS	 	 	21	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Refunds	 	 	21	 
	 
	 	 	 	 	 	 
	Section 4.2
	 	Carrybacks	 	 	21	 
	 
	 	 	 	 	 	 
	Section 4.3
	 	Amended Tax Returns	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE V DISTRIBUTION TAXES	 	 	22	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Representations	 	 	22	 
	 
	 	 	 	 	 	 
	Section 5.2
	 	Covenants	 	 	23	 
	 
	 	 	 	 	 	 
	Section 5.3
	 	Supplemental Rulings and Restrictions on SpinCo	 	 	25	 
	 
	 	 	 	 	 	 
	Section 5.4
	 	Liability for Undertaking Certain Actions	 	 	26	 
	 
	 	 	 	 	 	 
	Section 5.5
	 	Liability Not Attributable to Fault	 	 	27	 
	 
	 	 	 	 	 	 
	Section 5.6
	 	Cooperation	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE VI INDEMNIFICATION	 	 	27	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Indemnification Obligations of RemainCo	 	 	27	 
	 
	 	 	 	 	 	 
	Section 6.2
	 	Indemnification Obligations of SpinCo	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE VII PAYMENTS	 	 	28	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Payments	 	 	28	 
	 
	 	 	 	 	 	 
	Section 7.2
	 	Treatment of Payments made Pursuant to Tax Sharing Agreement	 	 	29	 
	 
	 	 	 	 	 	 
	Section 7.3
	 	Treatment of Payments made Pursuant to Distribution Agreement and Judgment Sharing Agreement	 	 	30	 
	 
	 	 	 	 	 	 
	Section 7.4
	 	Payments Net of Tax Benefit Actually Realized	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE VIII AUDITS	 	 	30	 
	 
	 	 	 	 	 	 
	Section 8.1
	 	Notice	 	 	30	 
	 
	 	 	 	 	 	 
	Section 8.2
	 	Audits	 	 	30	 
	 
	 	 	 	 	 	 
	Section 8.3
	 	Payment of Audit Amounts	 	 	34	 
	 
	 	 	 	 	 	 
	Section 8.4
	 	Correlative Adjustments	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE IX ALLOCATION OF TAX ATTRIBUTES AND OTHER TAX MATTERS	 	 	37	 
	 
	 	 	 	 	 	 
	Section 9.1
	 	Allocation of Tax Attributes	 	 	37	 
	 
	 	 	 	 	 	 
	Section 9.2
	 	Third Party Tax Indemnities and Benefits	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE X DEFAULTED AMOUNTS	 	 	37	 
	 
	 	 	 	 	 	 
	Section 10.1
	 	General	 	 	37	 
	 
	 	 	 	 	 	 
	Section 10.2
	 	Subsidiary Funding	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE XI ARBITRATION; DISPUTE RESOLUTION	 	 	38	 
	 
	 	 	 	 	 	 
	Section 11.1
	 	Agreement to Arbitrate	 	 	38	 
	 
	 	 	 	 	 	 
	Section 11.2
	 	Escalation	 	 	38	 
	 
	 	 	 	 	 	 
	Section 11.3
	 	Demand for Arbitration	 	 	39	 
	 
	 	 	 	 	 	 
	Section 11.4
	 	Arbitrators	 	 	39	 
	 
	 	 	 	 	 	 
	Section 11.5
	 	Hearings	 	 	40	 
	 
	 	 	 	 	 	 
	Section 11.6
	 	Discovery and Certain Other Matters	 	 	40	 
	 
	 	 	 	 	 	 
	Section 11.7
	 	Certain Additional Matters	 	 	41	 
	 
	 	 	 	 	 	 
	Section 11.8
	 	Continuity of Service and Performance	 	 	42	 
	 
	 	 	 	 	 	 
	Section 11.9
	 	Law Governing Arbitration Procedures	 	 	42	 
	 
	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	 	42	 
	 
	 	 	 	 	 	 
	Section 12.1
	 	Complete Agreement	 	 	42	 
	 
	 	 	 	 	 	 
	Section 12.2
	 	Other Agreements	 	 	42	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 12.3
	 	Expenses	 	 	42	 
	 
	 	 	 	 	 	 
	Section 12.4
	 	Governing Law	 	 	42	 
	 
	 	 	 	 	 	 
	Section 12.5
	 	Notices	 	 	42	 
	 
	 	 	 	 	 	 
	Section 12.6
	 	Amendment and Modification	 	 	43	 
	 
	 	 	 	 	 	 
	Section 12.7
	 	Successors and Assigns: No Third Party Beneficiaries	 	 	43	 
	 
	 	 	 	 	 	 
	Section 12.8
	 	Counterparts	 	 	43	 
	 
	 	 	 	 	 	 
	Section 12.9
	 	Interpretation	 	 	43	 
	 
	 	 	 	 	 	 
	Section 12.10
	 	Legal Enforceability	 	 	43	 
	 
	 	 	 	 	 	 
	Section 12.11
	 	Performance Standard	 	 	44	 
	 
	 	 	 	 	 	 
	Section 12.12
	 	Authority	 	 	44	 
	 
	 	 	 	 	 	 
	Section 12.13
	 	Joint Authorship	 	 	44	 
	 
	 	 	 	 	 	 
	Section 12.14
	 	References; Interpretation	 	 	44	 

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LISTING OF ATTACHMENTS

AND ATTACHED SCHEDULES

	 	 	 
	Schedule 1.1(c)(1)

	 	Adjustments that Form Part of the Adjusted Allocation Method
	 
	 	 
	Schedule 1.1(c)(2)

	 	Example of Tax Liability Calculation using the Adjusted Allocation Method
	 
	 	 
	Schedule 1.1(oo)

	 	List of taxes included in definition of Income Taxes
	 
	 	 
	Schedule 1.1(ttt)

	 	List of Qualified Tax Counsel
	 
	 	 
	Schedule 3.1(c)

	 	Schedule of Specifically Identified Tax Returns and Tax Return Preparer
	 
	 	 
	Schedule 8.2(c)(iv-1)

	 	Schedule of Audit Exceptions
	 
	 	 
	Schedule 8.2(c)(iv-2)

	 	Schedule of Illustrative List of Documents
	 
	 	 
	Schedule 8.2(g-1)

	 	Form of Power of Attorney
	 
	 	 
	Schedule 8.2(g-2)

	 	Activities Requiring Representative Signature
	 
	 	 
	Schedule 9.1

	 	Listing and Allocation of Tax Attributes

 

 

TAX SHARING AGREEMENT

     THIS TAX SHARING AGREEMENT (this “Agreement”) is made and entered into as of the
31st day of March, 2008, by and between Hillenbrand Industries, Inc., an Indiana
corporation (“RemainCo”), and Batesville Holdings, Inc., an Indiana corporation (“SpinCo”). Each
of RemainCo and SpinCo is sometimes referred to herein as a “Party” and collectively, as the
“Parties”.

WITNESSETH:

     WHEREAS, as of the date of this Agreement, RemainCo and its direct and indirect domestic
corporate Subsidiaries (including SpinCo and its Subsidiaries) are members of RemainCo Consolidated
Return Group;

     WHEREAS, RemainCo, acting through its direct and indirect Subsidiaries, currently conducts two
major businesses: (i) the Medical Technology Business and (ii) the Death Care Business;

     WHEREAS, the Board of Directors of RemainCo has determined that it is appropriate, desirable
and in the best interests of RemainCo and its shareholders to separate the Medical Technology
Business from the Death Care Business;

     WHEREAS, in order to effect such separation, the Board of Directors of RemainCo has determined
that it is appropriate, and desirable and in the best interest of RemainCo and its shareholders for
RemainCo and certain of its Subsidiaries to enter into a series of transactions whereby, among
other things, (i) RemainCo will cause the Medical Technology Subgroup to restructure through a
series of internal spin-offs so that various entities within the Medical Technology Subgroup will
be owned directly by RemainCo prior to the Distribution, (ii) RemainCo will cause the separation of
the Canadian medical technology and death care operations (collectively, (i) and (ii) are referred
to as the “Restructuring”), (iii) RemainCo will contribute the Death Care Business and other assets
to SpinCo, (iv) RemainCo will distribute its entire ownership interest in SpinCo through a pro-rata
distribution of all of the outstanding shares of SpinCo Common Stock then owned by RemainCo to the
holders of RemainCo Common Stock (the “Spin”) (collectively, (iii) and the Spin are referred to
as the “Distribution”) pursuant to the terms and subject to the conditions of the Distribution
Agreement dated as of March 14, 2008 (the “Distribution Agreement”) (the Restructuring and the
Distribution may be referred to collectively as the “Plan of Separation”); and (v) the shareholders
of RemainCo and SpinCo will vote to change the name of SpinCo to Hillenbrand, Inc. and the name of
RemainCo to Hill-Rom Holdings, Inc.;

     WHEREAS, the Restructuring is intended to qualify as tax-free under Sections 351, 355 and 368
of the Internal Revenue Code of 1986, as amended (the “Code”);

     WHEREAS, the Distribution is intended to qualify as tax-free under Sections 355 and 368 of the
Code;

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     WHEREAS, subject to Section 8.2, it is the intention of the Parties that all pre-separation
U.S. federal, state, and local audits will be managed, controlled and conducted by RemainCo’s, U.S.
Federal and State Audit Groups currently located in Batesville, Indiana (the “RemainCo Audit Team”)
except as otherwise provided in this Agreement;

     WHEREAS, as a result of and upon the Restructuring and the Distribution, SpinCo and the
Subsidiaries of SpinCo will cease to be members of RemainCo affiliated group after the
Restructuring and Distribution; and

     WHEREAS, in connection with the Plan of Separation, the Parties desire to set forth their
agreement on the rights and obligations with respect to handling and allocating Taxes and related
matters.

     NOW, THEREFORE, in consideration of the foregoing and the terms, conditions, covenants and
provisions of this Agreement, each of the Parties mutually covenant and agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

     Section 1.1 Definitions. As used in this Agreement, the following terms shall have
the following meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):

          (a) “AAA” has the meaning set forth in Section 11.4.

          (b) “Action” means any claim, suit, action, mediation, arbitration, inquiry,
investigation or other proceeding of any nature (whether criminal, civil, legislative,
administrative, regulatory, prosecutorial or otherwise) by or before any mediator, arbitrator or
Governmental Authority.

          (c) “Adjusted Allocation Method” shall mean the method used to allocate, as between
RemainCo and SpinCo, each Party’s share of a Federal Income Tax Liability with respect to the
RemainCo Consolidated Return Group, which shall be determined by allocating to SpinCo the Tax that
would result had SpinCo and its Affiliates computed their Taxes on a separate return basis, while
the liability of RemainCo and its Affiliates shall be the total Tax liability less what is
allocated to SpinCo and its Affiliates. For purposes of this definition, the following shall
apply: (i) eliminations for the Consolidated Return Group shall be handled in a manner consistent
with past practices, which include the following practices: (A) topside/corporate overhead
eliminations of SpinCo and its Affiliates are not included in SpinCo (by way of example, and not
limitation, corporate overhead that is eliminated as part of the consolidated return and
consolidated financial statements of RemainCo shall be charged to SpinCo and its Affiliates and
taken into account in computing the Taxes of SpinCo and its Affiliates on a separate return basis),
(B) domestic eliminations of SpinCo and its Affiliates are included as part of SpinCo, and (C)
foreign eliminations of SpinCo and its Affiliates are included as part of SpinCo; and (ii) in
addition to the adjustments that are applied normally in computing tax liability as if a separate
return for the year had been prepared, the additional adjustments set forth on Schedule 1.1(c)(1)
shall apply. Attached hereto as Schedule 1.1(c)(2) is an example of

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how the parties intend for SpinCo to calculate its Tax liability in accordance with the
Adjusted Allocation Method.

          (d) “Affiliate” means with respect to any specified Person, a Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such specified Person; provided, however, that for purposes of this Agreement, no
member of either Group and no officer or director of any member of either Group shall be deemed to
be an affiliate of any member of the other Group. Batesville Casket UK Limited is an affiliate of
SpinCo. The Batesville Casket Canada division of Hillenbrand Industries Canada Limited is an
affiliate of SpinCo. The Hill-Rom Canada division of Hillenbrand Industries Canada Limited is an
affiliate of RemainCo.

          (e) “Agreement” has the meaning set forth in the preamble to this Agreement.

          (f) “Applicable Deadline” has the meaning set forth in Section 11.3(b).

          (g) “Arbitration Act” means the United States Arbitration Act, 9 U.S.C. §§1-16, as the
same may be amended from time to time.

          (h) “Arbitration Demand Date” has the meaning set forth in Section 11.3(a).

          (i) “Arbitration Demand Notice” has the meaning set forth in Section 11.3(a).

          (j) “Audit” means any audit (including a determination of the status of qualified and
non-qualified employee benefit plans), assessment of Taxes, other examination by or on behalf of
any Taxing Authority (including notices), proceeding, or appeal of such a proceeding relating to
Taxes, whether administrative or judicial, including proceedings relating to competent authority
determinations initiated by a Party or any of its Subsidiaries.

          (k) “Audit External Advisor” has the meaning set forth in Section 8.2(c)(iii).

          (l) “Audit Control Party” means the Party responsible for administering and
controlling an Audit pursuant to Section 8.2(a), as may be changed from time to time in accordance
with Section 8.2(d).

          (m) “Audit Representative” means the Chief Tax Officer of each Party (or such other
officer of a Party that may be designated by that Party’s Chief Financial Officer from time to
time).

          (n) “Bankruptcy” means, with respect to a Person:

               (i) the filing of an application by the Person for, or a consent to, the appointment of a
trustee of the Person’s assets;

               (ii) the filing by the Person of a voluntary petition in bankruptcy or the filing of a
pleading in any court of record admitting in writing the Person’s inability to pay debts as they
come due;

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               (iii) a general assignment by such Person for the benefit of creditors;

               (iv) the filing by the Person of an answer admitting the material allegations of, or the
Person’s consenting to, or defaulting in answering a bankruptcy petition filed against the Person
in any bankruptcy proceeding; or

               (v) the entry of an order, judgment or decree by any court of competent jurisdiction
adjudicating the Person bankrupt or appointing a trustee, custodian, receiver or liquidator of such
Person’s assets, which order, judgment or decree continues unstayed and in effect for any period of
sixty (60) days.

          (o) “Base Rate” means the rate which Citibank, N.A. (or any successor thereto or other
major money center commercial bank agreed to by the Parties) announces from time to time as its
base lending rate, as in effect from time to time.

          (p) “Bracewell” means Bracewell & Giuliani LLP.

          (q) “Business Day” means any day other than a Saturday, a Sunday or a day on which
banking institutions located in the State of Indiana are authorized or obligated by law or
executive order to close.

          (r) “Canadian Restructuring Taxes” shall mean the Taxes that are incurred in Canada
and ultimately paid to the Canadian Taxing Authorities with respect to the reorganization and
transfer of the Death Care Business that is conducted in Canada and with such reorganization and
transfer generally described in steps 10 to 20 on pages 6 to 7 and steps 25, 26 and 31 on page 8 of
the IRS Ruling.

          (s) “Cash Acquisition Merger” means a merger of a newly-formed Subsidiary of SpinCo
with a corporation, limited liability company, limited partnership, general partnership or joint
venture (in each case, not previously owned, directly or indirectly, by SpinCo) solely for cash
pursuant to which SpinCo acquires such corporation, limited liability company, limited partnership,
general partnership or joint venture and no Equity Security of SpinCo or any SpinCo Affiliates are
issued, sold, redeemed or acquired, directly or indirectly.

          (t) “Code” has the meaning referred to in the recitals to this Agreement.

          (u) “Combined Jurisdiction” means, for any taxable period, any jurisdiction in which
SpinCo or a SpinCo Affiliate is included in a consolidated, combined, unitary return with RemainCo
or a RemainCo Affiliate for state Income Tax or Other Tax purposes.

          (v) “Combined Return” means any combined, unitary, or consolidated return or report
used in the determination of a state Income Tax or Other Tax liability.

          (w) “Combined State Taxes” means the Income Taxes or Other Taxes shown on a Combined
Return that is filed in a Combined Jurisdiction for any Pre-Distribution Tax Period or for any
Straddle Period, as the case may be.

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          (x) “Correlative Adjustment” means a disallowance of an item of deduction, loss or
credit which cannot be carried forward (or an increase of an item of income or gain) that is
related or attributable to the Assets of a Party or that Party’s Affiliates, that is included in a
Tax Return for a Pre-Distribution Tax Period or the portion of a Straddle Period ending on the
Distribution Date, and that results in a correlative increase of an item of deduction, loss or
credit (or reduction of an item of income or gain) with respect to another Party or that Party’s
Affiliates with respect to such period or periods.

          (y) “Correlative Detriment” has the meaning set forth in Section 4.1(b).

          (z) “Death Care Business” means the manufacture and/or sale of funeral service
products, including burial caskets, cremation caskets, containers and urns, selection room display
fixturing, and other personalization and memorialization products, including the SpinCo Business.

          (aa) “Distribution” or “Distributions” has the meaning set forth in the
recitals to this Agreement and includes the distributions described in the IRS Ruling and the Tax
Representation Letters.

          (bb) “Distribution Agreement” has the meaning set forth in the recitals to this
Agreement.

          (cc) “Distribution Date” means the date on which the Spin is effectuated pursuant to
the Distribution Agreement.

          (dd) “Distribution Taxes” mean any and all Taxes (a) required to be paid by or imposed
on a Party or any of its Affiliates resulting from, or directly arising in connection with, the
failure of the Distributions to qualify under Section 355(a) or (c) of the Code or, if applicable,
Section 361(c) of the Code, or the application of Section 355(e) of the Code to the Distributions
(or the failure to qualify under or the application of corresponding provisions of the Laws of
other jurisdictions); or (b) required to be paid by or imposed on a Party or any of its Affiliates
resulting from, or directly arising in connection with, the failure of any transaction undertaken
in connection with or pursuant to the Plan of Separation to qualify for tax-free treatment, in
whole or in part, but, with respect to both (a) and (b) above, only to the extent that such
qualification or tax-free treatment was claimed by one or more of the Parties on a Tax Return for a
Pre-Distribution Tax Period or a Straddle Period.

          (ee) “Due Date” means the date (taking into account all valid extensions) upon which a
Tax Return is required to be filed with or Taxes are required to be paid to a Taxing Authority,
whichever is applicable.

          (ff) “Effective Time” in lieu means 12:01 a.m. on the date next following the
Distribution Date.

          (gg) “Employee Matters Agreement” means the Employee Matters Agreement dated as of
March 31, 2008 among RemainCo and SpinCo.

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          (hh) “Equity Security” means stock or other equity securities treated as stock for Tax
purposes, or option, warrants, rights, convertible debts, or any other instruments or security that
affords any Person the right, whether conditional or otherwise, to acquire stock or to be paid an
amount determined by reference to the value of the stock.

          (ii) “Escalation Notice” has the meaning set forth in Section 11.2(a).

          (jj) “Fault” has the meaning set forth in Section 5.4(c).

          (kk) “Federal Income Tax Liability” means any liability imposed under Subtitle A of
the Code and any related interest and any penalties, additions to such Tax, or additional amounts
imposed with respect thereto.

          (ll) “Final Determination” means the final resolution of liability for any Tax for any
taxable period, by or as a result of:

               (i) a Final Determination as defined in the Judgment Sharing Agreement;

               (ii) a final settlement with the IRS, a closing agreement or accepted offer in compromise
under Sections 7121 or 7122 of the Code, or a comparable agreement under the Laws of other
jurisdictions, which resolves the liability for the Taxes addressed in such agreement 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, including by reason of the expiration of the applicable
statute of limitations.

          (mm) “Governmental Authority” means any federal, state, local, foreign or
international court, government, department, commission, board, bureau or agency, authority
(including, but not limited to, any central bank or taxing authority) or instrumentality
(including, but not limited to, any court, tribunal or grand jury) exercising executive,
prosecutorial, legislative, judicial, regulatory or administrative functions of or pertaining to
government or any other regulatory, administrative or governmental authority

          (nn) “Group” means RemainCo Group or SpinCo Group, as the context requires.

          (oo) “Income Taxes” mean:

               (i) all Taxes based upon, measured by, or calculated with respect to (i) net income or profits
(including, but not limited to, any capital gains, minimum tax or any Tax on items of tax
preference, but not including sales, use, real, or personal property, gross or net receipts, value
added, excise, leasing, transfer or similar Taxes), or (ii) multiple bases (including,

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but not limited to, corporate franchise, doing business and occupation Taxes) if one or more
bases upon which such Tax is determined is described in clause (oo)(i) above;

               (ii) all U.S., state, local or non-U.S. franchise Taxes;

               (iii) all U.S. state and local Taxes or non-U.S. Taxes not otherwise included in (a) or (b)
above that are listed on Schedule 1.1(oo); and

               (iv) including in the case of each of (i), (ii), and (iii) above, any related interest and any
penalties, additions to such Tax or additional amounts imposed with respect thereto by any Taxing
Authority.

          (pp) “Income Tax Returns” mean all Tax Returns that relate to Income Taxes.

          (qq) “Indemnified Party” means the Party which is or may be entitled pursuant to this
Agreement to receive any payments (including reimbursement for Taxes or costs and expenses) from
another Party or Parties to this Agreement.

          (rr) “Indemnifying Party” means the Party which is or may be required pursuant to this
Agreement to make indemnification or other payments (including reimbursement for Taxes and costs
and expenses) to another Party to this Agreement.

          (ss) “IRS” means the United States Internal Revenue Service or any successor thereto,
including, but not limited to its agents, representatives, and attorneys.

          (tt) “IRS Ruling” means the IRS PLR #131586-07 dated November 7, 2007 issued to
RemainCo, and any supplemental materials submitted to the IRS relating thereto, and any other
separate or supplemental IRS private letter rulings received by RemainCo with respect to the Plan
of Separation and the IRS Ruling.

          (uu) “Judgment Sharing Agreement” means the Judgment Sharing Agreement dated as of
March 14, 2008 among RemainCo, SpinCo and Batesville Casket Company, Inc.

          (vv) “Law” means any foreign, federal, state or local statute, ordinance, regulation,
code, license, permit, authorization, approval, consent, common law, legal doctrine, order,
judgment, decree, injunction or requirement of any Governmental Authority or any order or award of
any arbitrator, now or hereafter in effect.

          (ww) “LIBOR” means the British Bankers Association London Interbank Offered Rate, as
it is published by Reuters, or any successor to or substitute for such service providing rate
quotations of the British Bankers Association London Interbank Offered Rate, at approximately 11:00
a.m., London time. In the event that such British Bankers Association London Interbank Offered Rate
is not available at such time for any reason, then LIBOR shall be the rate at which dollar deposits
of $10 million and for a maturity of one (1) week are offered by the principal London office of
Citibank in the London Interbank market at approximately 11:00 a.m., London time.

-7-

 

          (xx) “Medical Technology Business” means the manufacture or sale of non-implantable
devices or any other existing business line conducted by Hill-Rom, Inc. and its Subsidiaries
immediately prior to the Distribution (including medical technologies and related services for the
health care industry, such as, for example, patients support systems, non-invasive therapeutic
products for a variety of acute and chronic medical conditions, medical equipment rentals and
workflow technology solutions).

          (yy) “Medical Technology Subgroup” is comprised of, inter alia, Hill-Rom, Inc.,
Hill-Rom Manufacturing, Inc., Hill-Rom Services, Inc., Hill-Rom Company Inc., and Allen Medical
Systems, Inc.

          (zz) “No-Fault Sharing Percentages” shall mean the RemainCo No Fault Percentage and
the SpinCo No Fault Percentage.

          (aaa) “Non-Income Tax Returns” means all Tax Returns other than Income Tax Returns.

          (bbb) “Non-Preparing Party” has the meaning set forth in Section 3.3.

          (ccc) “Other Agreements” has the meaning ascribed to such term in the Distribution
Agreement.

          (ddd) “Other Taxes” means all Taxes other than Income Taxes, including (but not
limited to) transfer, sales, use, payroll, and unemployment Taxes.

          (eee) “Participating Party” has the meaning set forth in Section 8.2(c)(i).

          (fff) “Party” has the meaning set forth in the preamble to this Agreement.

          (ggg) “Person” means an individual, a limited or general partnership, a joint venture,
a corporation, a trust, a limited liability company, an unincorporated organization, or a
Governmental Authority.

          (hhh) “Plan of Separation” has the meaning set forth in the recitals to this
Agreement.

          (iii) “Post-Distribution Tax Audit” means any Audit with respect to a Tax Return or
any Tax that may be owing with respect to a Post-Distribution Tax Period.

          (jjj) “Post-Distribution Tax Returns” means, collectively, all Tax Returns required to
be filed by a Party or its Affiliates for a Post-Distribution Tax Period.

          (kkk) “Post-Distribution Tax Period” means a Tax year beginning and ending after the
Distribution Date.

          (lll) “Pre-Distribution Non-Income or Non-U.S. Tax Audit” means any Audit related to
any (a) U.S. federal, state, or local Taxes other than Income Taxes, or (b) any non-U.S. Taxes, in
each case with respect to a Tax Return filed, or allegedly required to be filed, for any

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Pre-Distribution Tax Period or Straddle Period; provided, however, this term shall not include
any Audit that is a Pre-Distribution Transfer Pricing Tax Audit, a Pre-Distribution Payroll Tax
Audit, or a Pre-Distribution RemainCo Qualified Plan Tax Audit.

          (mmm) “Pre-Distribution Payroll Tax Audit” means any Audit for a Pre-Distribution Tax
Period or Straddle Period of payroll taxes.

          (nnn) “Pre-Distribution Qualified Plan Tax Audit” means any Audit for a
Pre-Distribution Tax Period or Straddle Period of RemainCo with respect to a qualified plan that is
the subject of the Employee Matters Agreement.

          (ooo) “Pre-Distribution Tax Period” means a Tax year beginning and ending on or before
the Distribution Date.

          (ppp) “Pre-Distribution Tax Returns” means, collectively, all Tax Returns required to
be filed by a Party or its Affiliates for a Pre-Distribution Tax Period.

          (qqq) “Pre-Distribution Transfer Pricing Tax Audit” means any Audit of any Income
Taxes related to or arising from (a) an intercompany transfer pricing adjustment under Section 482
of the Code and the Treasury Regulations thereunder, or an analogous provision under U.S. federal,
state and local or non-U.S. Law, or (b) a determination that the activities of a Party or its
Affiliates give rise to a “permanent establishment,” presence, or nexus in any jurisdiction that
could subject it to Income Tax there, in each of (a) and (b), for any Pre-Distribution Tax Period
or Straddle Period.

          (rrr) “Pre-Distribution U.S. Income Tax Audit” means any Audit of any U.S. federal,
state, or local Income Tax Return filed, or allegedly required to be filed, for any
Pre-Distribution Tax Period or Straddle Period; provided, however this term shall not include any
Audit that is a Pre-Distribution Transfer Pricing Tax Audit, a Pre-Distribution Qualified Plan Tax
Audit, or a Pre-Distribution Payroll Tax Audit.

          (sss) “Preparing Party” has the meaning set forth in Section 3.2(a).

          (ttt) “Qualified Tax Counsel” means any of the law firms listed on Schedule 1.1(ttt).

          (uuu) “Refund” means any refund of Taxes (including any overpayment of Taxes for a
period ending on or prior to the Distribution Date that can be refunded or, alternatively, applied
to future Taxes payable), including any interest paid on or with respect to such refund of Taxes;
provided, however, the amount of the refund of Taxes shall be net of any Taxes imposed by any
Taxing Authority on the receipt of the refund.

          (vvv) “RemainCo” has the meaning set forth in the recitals to this Agreement.

          (www) “RemainCo Audit Team” has the meaning referred to in the recitals to this
Agreement.

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          (xxx) “RemainCo Consolidated Return Group” means the affiliated group of corporations
(within the meaning of Section 1504 of the Code) of which RemainCo is the common parent prior to
the Distribution Date.

          (yyy) “RemainCo Group” means RemainCo and the Subsidiaries of RemainCo other than
members of SpinCo Group.

          (zzz) “RemainCo No Fault Percentage” shall have the meaning and the percentage set
forth in Section 5.5.

          (aaaa) “RemainCo Pension Plan Assets” shall have the meaning set forth in the Employee
Matters Agreement.

          (bbbb) “RemainCo Sharing Percentage” shall mean seventy-nine percent (79%).

          (cccc) “Requesting Party” shall have the meaning set forth in Section 5.4.

          (dddd) “Restriction Period” means the period beginning at the Effective Time and
ending on the two-year anniversary of the day after the Distribution Date.

          (eeee) “Restructuring” has the meaning set forth in the recitals to this Agreement.

          (ffff) “Restructuring Taxes” shall mean any Tax, other than a Distribution Tax, that
is incurred by a Party as a result of a transaction or asset transfer occurring on or before the
Distribution Date that was in connection with or in contemplation of the Distribution of SpinCo and
that was undertaken to accomplish the Restructuring, which for purposes of this definition shall
include the transactions described and set forth as steps one (1) to thirty-three (33) on pages
five to nine of the IRS Ruling.

          (gggg) “Risk Affiliate” shall mean Sycamore Insurance Company, a South Carolina
corporation that was merged into RemainCo effective 9/30/2007, and any other company that has
existed within the RemainCo Consolidated Return Group prior to the Distribution Date and that was
in the same line of business as Sycamore Insurance Company.

          (hhhh) “Rules” has the meaning set forth in Section 11.5.

          (iiii) “Ruling Documents” means the IRS Ruling request, the attachments and exhibits
thereto, and any additional or supplemental information submitted to the IRS in connection with the
IRS Ruling request.

          (jjjj) “Ruling Request” means the IRS private letter ruling request filed by RemainCo
with the IRS dated July 6, 2007, and the various supplements to such request pertaining to certain
Tax aspects of the Restructuring and Distribution, all of which resulted in the IRS Ruling.

          (kkkk) “Separate Return” means any state return or report used in the determination of
a state Income Tax or Other Tax liability that is not a Combined Return.

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          (llll) “Separate State Taxes” means the Income Taxes or Other Taxes shown on a
Separate Return.

          (mmmm) “Spin” has the meaning set forth in the recitals of this Agreement.

          (nnnn) “SpinCo” has the meaning set forth in the recitals in this Agreement.

          (oooo) “SpinCo Business” means all business and operations (including related joint
ventures and alliances) of any member of the SpinCo Group immediately prior to the Distribution.

          (pppp) “SpinCo Combined State Tax Liability” means, with respect to any taxable period
(or portion thereof) in the Pre-Distribution Period, an amount of Combined State Taxes that are
allocated to SpinCo pursuant to Section 2.2.

          (qqqq) “SpinCo Group” means SpinCo and the Subsidiaries of SpinCo after the
Restructuring and the Distribution.

          (rrrr) “SpinCo No Fault Percentage” shall have the meaning and percentage set forth in
Section 5.5.

          (ssss) “SpinCo Sharing Percentage” shall mean twenty-one percent (21%).

          (tttt) “Straddle Income Tax Returns” mean, collectively, all Income Tax Returns
required to be filed by a Party and its Affiliates for a Straddle Period.

          (uuuu) “Straddle Period Tax Audit” means any Audit with respect to a Tax Return or any
Tax that may be owing with respect to a Straddle Period.

          (vvvv) “Straddle Period” means a Tax year beginning before the Distribution Date and
ending after the Distribution Date.

          (wwww) “Subsidiary” means with respect to any specified Person, any corporation or
other legal entity of which such Person or any of its Subsidiaries controls or owns, directly or
indirectly, more than 50% of the stock or other equity interest entitled to vote on the election of
members to the board of directors or similar governing body, in each case including its successors
or assigns; provided, however, that for purposes of this Agreement, no member of the SpinCo Group
shall be deemed to be a Subsidiary of any member of the RemainCo Group.

          (xxxx) “Supplemental Ruling” means any IRS private letter ruling issued in connection
with the Restructuring and/or Distribution other than the IRS Ruling Request.

          (yyyy) “Supplemental Ruling Documents” means the Supplemental Ruling Request, the
attachments and exhibits thereto, and any additional or supplemental information submitted to the
IRS in connection with the Supplemental Ruling.

          (zzzz) “Tax” or “Taxes” whether used in the form of a noun or adjective, means
taxes on or measured by income, franchise, gross receipts, sales, use, excise, payroll, personal

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property, real property, ad-valorem, value-added, leasing, leasing use or other taxes, levies,
imposts, duties, charges, or withholdings of any nature. Whenever the term “Tax” or “Taxes” is used
it shall include penalties, fines, additions to tax and interest thereon.

          (aaaaa) “Tax Attributes” mean for U.S. federal, state, local, and non-U.S. Income Tax
purposes, earnings and profits, tax basis, net operating and capital loss carryovers or carrybacks,
alternative minimum Tax credit carryovers or carrybacks, general business credit carryovers or
carrybacks, income tax credits or credits against income tax, disqualified interest and excess
limitation carryovers or carrybacks, overall foreign losses, research and experimentation credit
base periods, and all other items that are determined or computed on an affiliated group basis (as
defined in Section 1504(a) of the Code determined without regard to the exclusion contained in
Section 1504(b)(3) of the Code), or similar Tax items determined under applicable Tax law,
including the tax attributes listed on Schedule 9.1.

          (bbbbb) “Tax Benefit Actually Realized” means with respect to a Party and its
Subsidiaries the actual reduction in Taxes due and payable determined only with respect to the
referenced taxable year or any prior taxable year, and is equal to the sum of:

               (i) the excess (if any) of (i) the amount of Taxes that the Party and its Subsidiaries would
have owed in such taxable years (excluding the effect of any carryforwards of net operating or
capital losses or Tax credits to such year) had there been no payment or event giving rise to such
a determination, over (ii) the amount of Taxes actually paid by the Party and its Subsidiaries in
such taxable years (excluding the effect of any carryforwards of net operating losses or capital
losses or Tax credits to such year) after taking into account such payment or determination; and

               (ii) the excess (if any) of (i) the amount of the Refund actually received by the Party and
its Subsidiaries with respect to such taxable years or any carryback year (excluding the effect of
any carryforwards of net operating losses or capital losses or Tax credits to such year) as a
result of the carryback of Tax items to prior taxable years after taking into account such payment
or determination, over (ii) the amount of the Refund that the Party and its Subsidiaries would have
been entitled to receive with respect to such taxable years or any carryback year (excluding the
effect of any carryforwards of net operating losses or capital losses or Tax credits to such year)
as a result of the carryback of Tax items to prior taxable years had there been no payment or event
giving rise to such a determination.

The Tax Benefit Actually Realized shall be computed based on the actual U.S. or
non-U.S. income tax rates applicable to the Party and its Subsidiaries during the
applicable tax year; provided, however, that if the Tax Benefit Actually Realized
includes a U.S. federal Income Tax benefit attributable to the deduction of interest
included in Taxes, then the Parties shall assume that the applicable U.S. federal,
state and local Income Tax rate is thirty-eight percent (38%) in lieu of the
applicable Party’s and its Subsidiaries’ actual U.S. federal, state and local Income
Tax rate.

          (ccccc) “Tax-Free Status” means the qualification of a Distribution or any other
transaction contemplated by the IRS Ruling or any Tax Opinion as a transaction in which gain or

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loss is not recognized, in whole or in part, and no amount is included in income, including by
reason of Distribution Taxes, for U.S. federal, state, and local income tax purposes (other than
intercompany items, excess loss accounts or other items required to be taken into account pursuant
to Treasury Regulations promulgated under Section 1502 of the Code).

          (ddddd) “Tax Group” means any U.S federal, state, local or non-U.S. affiliated,
consolidated, combined, unitary or similar group that files a Tax Return or Tax Returns.

          (eeeee) “Tax Opinions” mean certain Tax opinions and supporting memoranda rendered by
Bracewell to RemainCo or any of its Affiliates in connection with the Plan of Separation.

          (fffff) “Tax Package” means the information and documents in the possession of a Party
or its Affiliates that are reasonably necessary for the preparation of a Tax Return by the other
Party or its Affiliates, assembled in all material respects consistent with past Tax reporting
practices of RemainCo and its Affiliates.

          (ggggg) “Tax Representation Letter” means any letter containing certain
representations and covenants issued by RemainCo, any of its Affiliates or any of its shareholders
to Bracewell or RemainCo in connection with the Tax Opinions.

          (hhhhh) “Tax Returns” mean any return, report, certificate, form or similar statement
or document (including any related or supporting information or schedule attached thereto and any
information return, amended tax return, claim for refund, or declaration of estimated tax) required
to be supplied to, or filed with, a Taxing Authority in connection with the determination,
assessment or collection of any Tax or the administration of any Laws, regulations, or
administrative requirements relating to any Taxes.

          (iiiii) “Taxing Authority” means any governmental authority or any subdivision,
agency, commission, or authority thereof or any quasi-governmental or private body having
jurisdiction over the assessment, determination, collection, or imposition of any Tax (including
the IRS).

          (jjjjj) “Treasury Regulations” mean the final and temporary (but not proposed) income
tax and administrative regulations promulgated under the Code, as such regulations may be amended
from time to time (including corresponding provisions of succeeding regulations).

          (kkkkk) “Unanticipated Taxes” shall have the meaning set forth in Section 2.1(c).

          (lllll) “Unqualified Tax Opinion” means an unqualified “should” level opinion of
Qualified Tax Counsel, which opinion is reasonably acceptable to each of the Parties and upon which
each of the Parties may rely to confirm that a transaction (or transactions) will not result in
Distribution Taxes, including confirmation in accordance with Circular 230 or otherwise that may be
provided for purposes of avoiding any applicable penalties or additions to Tax.

          (mmmmm) “U.S.” means the United States.

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     Section 1.2 References to Time. All references in this Agreement to times of the day
shall be to Batesville, Indiana time, except as otherwise specifically provided herein.

     Section 1.3 Effective Time.

          (a) The Parties acknowledge that the Plan of Separation contemplates a series of interrelated
and intermediate internal transactions undertaken preparatory to and in contemplation of the
Distributions that must be completed prior to the Effective Time in order to align, reorganize and
properly capitalize the Medical Technology Business and the Death Care Business.

          (b) Notwithstanding that these interrelated and intermediate internal transactions must be
given effect prior to the Spin, the agreements contained herein, including, but not limited to, the
manner in which Taxes are shared amongst the Parties, shall be effective no earlier than and only
upon the Effective Time.

ARTICLE II

RESPONSIBILITY FOR PAYMENT OF TAXES

     Section 2.1 Income Taxes and Other Taxes.

          (a) SpinCo shall be responsible for the payment of all Income Taxes and Other Taxes:

               (i) for any Pre-Distribution Tax Period allocated to SpinCo and its domestic Affiliates in
accordance with Section 2.2, if such Tax is attributable to the Death Care Business;

               (ii) for any Pre-Distribution Tax Period allocated to SpinCo and its foreign Affiliates in
accordance with Section 2.2, if such Tax is attributable to the Death Care Business;

               (iii) for any Pre-Distribution Tax Period allocable to SpinCo and its Affiliates in accordance
with Section 2.2 in which a Combined Return is being filed in a Combined Jurisdiction that includes
a SpinCo Combined State Tax Liability if such Tax is attributable to the Death Care Business;

               (iv) for any Straddle Period allocated to SpinCo and its domestic Affiliates in accordance
with Section 2.2 if such Tax is attributable to the Death Care Business;

               (v) for any Straddle Period allocated to SpinCo and its foreign Affiliates in accordance with
Section 2.2, if such tax is attributable to the Death Care Business;

               (vi) for any Post-Distribution Tax Periods of SpinCo Group;

               (vii) with respect to any Restructuring Taxes allocated to SpinCo under Section 2.2;

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               (viii) imposed under Treasury Regulation Section 1.1502-6 or under any comparable or similar
provision of state, local or foreign laws or regulations on SpinCo or its Affiliates as a result of
such company being a member of a consolidated combined, or unitary group with RemainCo or any
RemainCo Subsidiary during any Tax period to the extent attributable to the Death Care Business;
and

               (ix) any Taxes that arise by Audit or a Final Determination of an Audit and which are
specifically allocated to SpinCo under Section 8.3.

          (b) RemainCo shall be responsible for the payment of all Income Taxes and Other Taxes which
are not specifically the obligation of SpinCo under Section 2.1(a), above.

          (c) In connection with the allocation of Taxes that are made under Section 2.2, or under
Section 8.3 if such Tax arises from a Final Determination on Audit, it has been the intent and
desire of the Parties to identify all Taxes and situations giving rise to Taxes of which they are
aware and provide specific provisions in this Agreement for the allocation of the payment or
liability of such Taxes. Notwithstanding the efforts of the Parties to do so, it is understood by
the Parties that there may be circumstances giving rise to Tax that the Parties did not understand
or contemplate in the course of preparing this Agreement (the “Unanticipated Taxes”). In the event
there are Unanticipated Taxes, the Parties agree that the amount of such Unanticipated Taxes shall
be calculated and each Party’s share allocated in accordance with the various principles that
underlie the provisions of Section 2.2 and that the Parties shall in good faith work together to
mutually determine a fair allocation for the payment of such Unanticipated Taxes as between the
Parties.

     Section 2.2 Allocation of Taxes.

          (a) SpinCo or any of its Affiliates shall, to the extent permitted by Applicable Law, treat
the day after the Distribution Date as the first day of its taxable period under applicable United
States Federal, state, local or foreign Tax laws and shall file any elections necessary or
appropriate to such treatment; provided that this Section 2.2(a) shall not be construed to require
RemainCo to change its taxable year.

          (b) Unless to do so specifically conflicts with the allocations set forth after this Section
2.2(b), transactions occurring, or actions taken, on the Distribution Date but after the
Distribution outside the ordinary course of business by, or with respect to, SpinCo or any of its
Affiliates shall be deemed subject to the “next day rule” of Treasury Regulation Section
1.1502-76(b)(1)(ii)(B) (and under any comparable or similar provision under state, local or foreign
laws or regulations, provided that if there is no comparable or similar provision under state,
local or foreign laws or regulations, then the transaction will be deemed subject to the “next day
rule” of Treasury Regulation Section 1.1502-76(b)(1)(ii)(B)) and as such shall for purposes of this
Agreement be treated (and consistently reported by the Parties) as occurring in a Post-Distribution
Tax Period of SpinCo or an SpinCo Affiliate, as appropriate.

          (c) Any Income Taxes for a Straddle Period with respect to SpinCo and/or its Affiliates (or
entities in which SpinCo or its Affiliates have an ownership interest) shall, for purposes of this
Agreement, be determined, unless otherwise provided in this Agreement, using a

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closing of the books and records of SpinCo and its Affiliates as of the close of business on
the Distribution Date, provided that exemptions, allowances or deductions that are
calculated on an annual basis, and not on a closing of the books method (including, but not limited
to, depreciation and amortization deductions) shall be allocated between the period ending on and
including the Distribution Date and the period beginning after the Distribution Date based on the
number of days for the portion of the Straddle Period ending on and including the Distribution
Date, on the one hand, and the number of days for the portion of the Straddle Period beginning
after the Distribution date, on the other hand. To the extent possible, (a) Other Taxes shall be
determined by means of a closing of the books and (b) the methodology used to allocate such Taxes
for the Pre-Distribution Tax Periods shall be used to allocate Taxes for Straddle Periods

          (d) The Federal Income Tax Liability for the RemainCo Consolidated Return Group for the
Pre-Distribution Tax Period ending September 30, 2007 and for the Straddle Period from October 1,
2007 until the Distribution Date shall be allocated between RemainCo and SpinCo pursuant to the
Adjusted Allocation Method. Any Federal Income Tax Liability for the RemainCo Consolidated Return
Group for a Pre-Distribution Tax Period other than the Pre-Distribution Tax Periods or portions
thereof described in the preceding sentence shall be allocated to RemainCo.

          (e) The Combined State Taxes with respect to any Combined Return for any Pre-Distribution Tax
Period ended September 30, 2007 or any Straddle Period shall be allocated between RemainCo and
SpinCo as follows: (i) the Combined State Taxes on such Combined Return, before applying any
credits, shall be allocated among the RemainCo Group and SpinCo Group based on the relative
proportion of the total income of each Group, before apportionment compared to the total income of
both Groups before apportionment (or, if the Combined State Taxes on such Combined Return are based
on something other than income, the relative proportion of the total tax base of each Group, before
apportionment, compared to the total tax base of both Groups before apportionment), less (ii) the
credits applicable to each Group. For example, if the tax base for a particular Combined Return is
federal taxable income, the total federal taxable income for RemainCo, SpinCo and their Affiliates
included on the Combined Return, before apportionment is $100,000,000, of which $40,000,000 is
attributable to the SpinCo Group, forty percent (40%) of the Combined State Taxes with respect to
such Combined Return, before application of credits, shall be attributed to the SpinCo Group. If
there are credits on the Combined Return attributable to the SpinCo Group, the amount of the
Combined State Taxes attributed to the SpinCo Group shall be further reduced by the amount of such
credits.

          (f) Any Separate State Taxes with respect to any Separate Return for any Pre-Distribution Tax
Period or any Straddle Period shall be allocated to the Party as to which it or its Affiliate had
the legal obligation under applicable law for filing such Separate Return.

          (g) Any foreign Taxes for any Pre-Distribution Tax Period or any Straddle Period shall be
allocated to the Party or its Affiliate whose business operations resulted in the foreign Tax, with
such determination to be made in a manner consistent with the Adjusted Allocation Approach..

          (h) Each Party shall be responsible for the Income Taxes or Other Taxes attributable to it or
its Affiliates for a Post-Distribution Period.

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          (i) For the Pre-Distribution Tax Period ending September 30, 2007 and any portion of a
Straddle Period ending on the Distribution Date, Payroll and unemployment Taxes shall be allocated
among the Parties based on which Party or its Affiliate, pursuant to the practices within the
RemainCo Consolidated Return Group, had the obligation for the payment of the employment expense of
the employees who performed the services that are the subject of the payroll and unemployment Tax
as determined on a basis consistent with the Parties’ past practices. Any taxes that arise as a
result of an Audit shall be allocated on the same basis.

          (j) Sales Taxes, use Taxes and similar Taxes shall be allocated to the Party that sold, or
whose Affiliates sold, the property or rendered the services that generated the Tax.

          (k) Except for any Canadian Restructuring Taxes that may be incurred and paid, any other
Restructuring Taxes shall be allocated to RemainCo using the RemainCo No Fault Percentage and to
SpinCo using the SpinCo No Fault Percentage. If there are Canadian Restructuring Taxes that are
incurred and paid, SpinCo shall pay such Taxes to the extent that SpinCo is able to realize a
current or deferred tax benefit from the income or gain realized that resulted in the payment of
such Taxes. The amount of the current or deferred tax benefit shall be valued using a net present
value and for purposes of this sentence, any determination of net present value shall be determined
using a discount rate equal to the US Treasury rate for securities with a term in nature similar to
the deferred tax benefit.. To the extent the Canadian Restructuring Taxes exceed the net present
value of the current and future benefit available to SpinCo, the excess portion shall be allocated
between and paid by RemainCo and SpinCo as Restructuring Taxes are otherwise allocated and paid
above; Other than with respect to the treatment and payment of Canadian Restructuring Tax
pursuant to the preceding sentence, to the extent that any Tax is included in the definition of
Restructuring Taxes and is otherwise allocated differently under this Section 2.2, the allocation
applicable to Restructuring Taxes hereunder shall control to the extent such Tax or portion thereof
is included in the definition of Restructuring Taxes.

          (l) Any Taxes that result from the transfer from RemainCo to SpinCo of liability loss reserves
with respect to the reserves attributable and carried on the tax books of a Risk Affiliate that are
being transferred to SpinCo with respect to the Distribution shall be borne and paid by SpinCo,
provided that SpinCo is entitled to claim a deduction in computing its Taxes for any payments in
satisfaction of liabilities attributable or related to such liability loss reserves.

          (m) Taxes other than those specified above that are primarily attributable to a Party or its
Affiliates shall be allocated to such Party. For example, personal property Taxes shall be
allocated to the Party that owned or whose Affiliates owned the property that generated the Tax.

          (n) Any other Income Taxes or Other Taxes that are not specifically allocated to either
RemainCo or SpinCo pursuant to any of the provisions above shall be allocated as between RemainCo
and SpinCo in a manner that is consistent with the preceding principles of allocation.

     Notwithstanding the specific allocations of Taxes set forth above, the following shall
control:

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               (i) If there is a conflict between the above provisions of this Section 2.2 with respect to a
Party’s responsibility for Taxes and the allocation of liability for Taxes that arise upon a Final
Determination of an Audit as provided in Sections 8.3(c) through (f), the provisions of Sections
8.3 (c) through (f) shall control;

               (ii) The tax deductions, tax benefits and allocation of Taxes as between RemainCo and SpinCo
for the executive deferred compensation liabilities of RemainCo that are being assumed by SpinCo
pursuant to the terms and provisions of the Employee Matters Agreement shall be governed by
Schedule 2.03(e) to the Distribution Agreement; and

               (iii) Except as expressly provided in this Section 2.2 and Article VIII, SpinCo shall have no
liability for Taxes for periods ending prior to September 30, 2007.

     Section 2.3 Timing of Payments of Taxes. All Taxes required to be paid or caused to
be paid by a Party to a Taxing Authority pursuant to this Article II shall be paid or caused to be
paid by such Party prior to the Due Date of such Taxes. All amounts required to be paid by one
Party to another Party (including obligations arising under Article VII) pursuant to this Article
II shall be paid or caused to be paid by such first Party to such other Party in accordance with
Article VII.

     Section 2.4 Credit or Refund of Estimated Payments by SpinCo. As of the Distribution
Date, in accordance with the normal practices and procedures of the RemainCo Consolidated Return
Group, SpinCo and its Affiliates will have made certain advances and payments with respect to Taxes
for the Pre-Distribution Tax Period ending September 30, 2007 and the portion of any Straddle
Period up to the Distribution Date that are attributable to SpinCo and its Affiliates and the Death
Care Business. To the extent any such payments have been made, such payments shall be credited to
the amounts owing pursuant to this Article II and to the extent there has been an overpayment with
respect to payments under this Article II, such overpayment shall be refunded or applied with
respect to the other amounts owing under this Article II.

ARTICLE III

PREPARATION AND FILING OF TAX RETURNS

     Section 3.1 Preparation of Returns.

          (a) RemainCo shall prepare and file:

               (i) All Tax Returns for RemainCo and its Affiliates for Pre-Distribution Tax Periods for all
jurisdictions;

               (ii) All Tax Returns for SpinCo and its Affiliates for all Pre-Distribution Tax Periods that
pertain only to SpinCo and its Affiliates;

               (iii) All Tax Returns for RemainCo and its Affiliates for Post-Distribution Tax Periods;

               (iv) All Tax Returns for the RemainCo Consolidated Return Group and RemainCo Group and all
Combined Return in any Combined Jurisdiction;

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               (v) All Tax Returns for RemainCo and its Affiliates (including SpinCo and its Affiliates) for
Straddle Periods;

               (vi) All Separate Returns for RemainCo and its Affiliates; and

               (vii) All other Tax Returns with respect to either RemainCo and its Affiliates or SpinCo and
its Affiliates that are not specifically the responsibility of RemainCo or SpinCo to prepare under
Sections 3.1(a) or 3.1(b), hereof.

          (b) SpinCo shall prepare and file:

               (i) All Tax Returns for SpinCo and its Affiliates for any Straddle Period that pertains only
to SpinCo and its Affiliates;

               (ii) All Separate Returns for SpinCo and its Affiliates; and

               (iii) All Tax Returns for SpinCo and its Affiliates for all Post-Distribution Tax Periods.

          (c) Notwithstanding anything herein to the contrary with respect to the preparation of Tax
Returns under Section 3.1(a) or 3.1(b), the specifically identified Tax Returns described on
Schedule 3.1(c) attached hereto, if any, shall be prepared by the Party specifically identified as
having the responsibility for the preparation of such Tax Return on Schedule 3.1(c).

     Section 3.2 Procedures Relating to the Preparation and Filing of Tax Returns.

          (a) RemainCo, with respect to those Tax Returns prepared by RemainCo described in Section
3.2(a), SpinCo, with respect to those Tax Returns prepared by SpinCo described in Sections 3.2(b)
(in each case, the “Preparing Party”) shall prepare and file or cause to be prepared or filed such
Tax Returns in a manner consistent with past Tax reporting practices of the Parties and their
Affiliates. The Preparing Party shall provide the other Party with a draft of each Income Tax
Return with respect to a Pre-Distribution Tax Period or a Straddle Period at least 30 days prior to
the due date for filing thereof, if such draft shows Tax for which the other Party is responsible
pursuant to this Agreement. The other Party shall have the right to review and approve (which
approval shall not be unreasonably withheld) each such Income Tax Return within 7 days following
its receipt thereof. The Preparing Party and the other Party shall attempt in good faith mutually
to resolve any disagreements regarding such Income Tax Returns prior to the due date for filing
thereof; provided, that the failure to resolve all disagreements prior to such date shall not
relieve the Preparing Party of its obligation to file (or caused to be filed) any such Income Tax
Return.

          (b) Unless otherwise required by the applicable laws, regulations, rulings or other
requirements of a Taxing Authority, the Parties hereby agree to prepare and file all Tax Returns,
and to take all other actions, in a manner consistent with this Agreement, Distribution Agreement,
Tax Ruling, Ruling Documents, Tax Opinion, or Representation Letter. All Tax Returns shall be
filed on a timely basis (taking into account applicable extensions) by the Party responsible for
filing such Tax Returns under this Agreement. This provision shall not restrict the right of any
Party or its Affiliates to file such disclosure statements as they deem appropriate

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or necessary to comply with applicable laws or regulations with respect to required
disclosures on a Tax Return.

          (c) Within 30 days after the determination of any SpinCo Tax Attributes by RemainCo, RemainCo
shall notify SpinCo of the Tax Attributes associated with SpinCo and each of its Affiliates, and
the Tax bases of the assets and liabilities transferred to SpinCo in connection with the
Restructuring and Distribution. Any changes in such Tax Attributes or Tax bases arising thereafter
by reason of an Audit of which RemainCo is the Audit Control Party shall be communicated by
RemainCo to SpinCo within 30 days after such change is made or there is a Final Determination of
such change.

     Section 3.3 Tax Information Exchange and Tax Services. In connection with each Tax
Return required under this Agreement to be prepared by the Preparing Party designated to prepare
the Tax Return under Section 3.1 after the date hereof, upon the Preparing Party providing written
notice to the other Party who is not the Preparing Party (the “Non-Preparing Party”), the
Non-Preparing Party shall provide the Preparing Party, no later than 90 days after such written
request from Preparing Party, a Tax Package for the purpose of preparing such Tax Return.
Non-Preparing Party shall timely furnish to Preparing Party such additional information and
documents as Preparing Party may reasonably request. The Parties acknowledge that such information
may include materials regarding accounting, accounting records, income and expense, costs and cost
production, background, research and development, comparables, marketing, suppliers and customers,
and other information regarding the business of the Non-Preparing Party related to the Tax
treatment of such business. Upon request by Preparing Party, an appropriate officer of
Non-Preparing Party shall provide written certification that, to such officer’s best knowledge and
belief, all information provided pursuant to this Section 3.3(a) is accurate and complete in all
material respects. Non-Preparing Party shall also make available employees and officers of
Non-Preparing Party and its Affiliates as Preparing Party may reasonably request in connection with
such Tax Return preparation by Preparing Party. Non-Preparing Party shall be responsible for the
internal costs (without reimbursement from Preparing Party) of furnishing to Preparing Party the
Tax Package, additional information, documents and employees and officers provided for in this
Section 3.3(a). Preparing Party shall provide the relevant information contained in the Tax
Package in the format required by the IRS (or analogous state, local, or foreign agency) for
electronic filing.

     Section 3.4 Reasonable External Costs and Expenses. To the extent a Party incurs
reasonable costs and expenses with a third party for purposes of complying with the provisions of
this Article III, including, without limitation, the preparation of the Tax Returns to be prepared
thereunder, such costs and expenses shall be borne in the same proportion as the Taxes being
reported on the Tax Return to which such costs and expenses relate. In the event that the Tax
Return being prepared is not for the purpose of reporting Taxes but is rather an informational Tax
Return, the Party charged with the responsibility of preparing such Tax Return shall bear the cost
and expense of preparing and filing such Tax Return.

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ARTICLE IV

REFUNDS, CARRYBACKS AND

AMENDED TAX RETURNS

     Section 4.1 Refunds.

          (a) Each Party shall be entitled to Refunds that relate to Taxes for which it is responsible
under Article II of this Agreement.

          (b) Notwithstanding Section 4.1(a), to the extent a claim for a Refund is reasonably likely to
result in a Correlative Detriment to one or more of the Parties, any such Refund that is received
by one or more of the Parties shall, and only to the extent thereof, be paid proportionately to the
Parties that are reasonably likely to realize such detriment. A “Correlative Detriment” is an
increase in a current year Tax payment obligation by a Party or a reduction in a current year Tax
benefit of a Party not otherwise entitled to a Refund under the prior sentence that occurs as a
direct result of the Tax position that is the basis for the Refund or the claim therefor. By way
of example, if SpinCo were to generate a net operating loss for a Post-Distribution Tax Period and
such loss was carried back to a Pre-Distribution Tax Period and resulted in a Refund, but at the
same time reduced the amount of a foreign tax credit available to RemainCo for such
Pre-Distribution Tax Period, RemainCo would have a Correlative Detriment for which it is entitled
to receive payment unless such tax credit could be carried forward by RemainCo.

          (c) Any Refund or portion thereof to which a Party is entitled pursuant to this Section 4.1
that is received or deemed to have been received as described herein by another Party, shall be
paid by such other Party to such first Party in immediately available funds in accordance with
Article VII. To the extent a Party applies or causes to be applied an overpayment of Taxes as a
credit toward or a reduction in Taxes otherwise payable (or a Taxing Authority requires such
application in lieu of a Refund) and such Refund, if received, would have been payable by such
Party to another Party (or Parties) pursuant to this Section 4.1, such Party shall be deemed to
have actually received a Refund to the extent thereof on the date on which the overpayment is
applied to reduce Taxes otherwise payable.

     Section 4.2 Carrybacks. Each of the Parties shall be permitted (but not required) to
carryback (or to cause its Affiliates to carryback) a Tax Attribute realized in a Post-Distribution
Tax Period or a Straddle Period to a Pre-Distribution Tax Period or a Straddle Period only if such
carryback cannot result in one or more other Parties (or their Affiliates) being liable for
additional Taxes. If a carryback could result in one or more Parties (or their Affiliates) being
liable for additional Taxes, such carryback shall be permitted only if all of such Parties consent
to such carryback, which consent shall not be unreasonably withheld. Any Party that has claimed
(or caused one or more of its Affiliates to claim) a Tax Attribute carryback shall be liable for
any Taxes that arise as a result of the subsequent adjustment, if any, to the carryback claim
unless the carryback results in a Refund that is shared pursuant to Section 4.1(a) or results in a
Correlative Detriment pursuant to Section 4.1(b).

     Section 4.3 Amended Tax Returns.

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          (a) Notwithstanding Sections 3.1 and 3.2, a Party or its Subsidiary that is entitled to file
an amended Tax Return for a Pre-Distribution Tax Period or a Straddle Period for members of its Tax
Group shall be permitted to prepare and file an amended Tax Return at its own cost and expense;
provided, however, that (i) such amended Tax Return shall be prepared in a manner (x) consistent
with the past practice of the Parties and their Affiliates unless otherwise modified by a Final
Determination or required by applicable Law; and (y) consistent with (and the Parties and their
Affiliates shall not take any position inconsistent with) the IRS Ruling, the Tax Representation
Letters, and the Tax Opinions; and (ii) if such amended Tax Return could result in one or more
other Parties becoming responsible for a payment of Taxes pursuant to Article II or a payment to a
Party pursuant to Article VIII, such amended Tax Return shall be permitted only if the consent of
such other Parties is obtained. The consent of such other Parties shall not be withheld
unreasonably and shall be deemed to be obtained in the event that a Party or its Subsidiary is
required to file an amended Tax Return as a result of an Audit adjustment.

          (b) A Party or its Subsidiary that is entitled to file an amended Tax Return for a
Post-Distribution Tax Period shall be permitted to do so without the consent of any Party.

          (c) A Party that is permitted (or whose Subsidiary is permitted) to file an amended Tax Return
shall not be relieved of any liability for payments pursuant to this Agreement notwithstanding that
another Party consented thereto.

ARTICLE V

DISTRIBUTION TAXES

     Section 5.1 Representations.

          (a) Ruling Documents. SpinCo hereby represents and warrants that (i) it has examined the
Ruling Documents (including, without limitation, the representations to the extent that they relate
to the plans, proposals, intentions, and policies of SpinCo, SpinCo Affiliates, or the Death Care
Business), and (ii) to the extent there are references to SpinCo, SpinCo Affiliates, or the Death
Care Business, the facts presented and the representations made therein are true, correct, and
complete.

          (b) Tax-Free Status. SpinCo hereby represents and warrants that it has no plan or intention
of taking any action, or failing or omitting to take any action, or knows of any circumstance, that
could reasonably be expected to (i) cause the Restructuring and/or the Distribution not to have
Tax-Free Status or (ii) cause any representation or factual statement made in this Agreement, the
Distribution Agreement, the IRS Ruling, the Tax Opinion, or the Representation Letter to be untrue
in a manner that would have an adverse effect on the Tax-Free Status of the Restructuring and/or
the Distribution.

          (c) Reciprocal Representations and Warranties as to RemainCo. With respect to the
representations and warranties made in Sections 5.1(a) and (b), RemainCo makes the same
representations as to RemainCo, the RemainCo Affiliates and the Medical Technology Business.

          (d) Plan or Series of Related Transactions. SpinCo hereby represents and warrants that, to
the knowledge of SpinCo and the management of SpinCo, neither the Restructuring nor the
Distribution are part of a plan (or series of related transactions) pursuant to

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which a Person will acquire stock representing a fifty-percent or greater interest (within the
meaning of Sections 355(d) and (e) of the Code) in SpinCo or any successor to SpinCo.

     Section 5.2 Covenants.

          (a) Actions Consistent with Representations and Covenants. SpinCo shall not (and shall not
permit any of its Affiliates or grant or permit any of its Affiliates to grant implicit or explicit
permission to any other person to) take any action, and SpinCo shall not (and shall not permit any
of its Affiliates or grant or permit any of its Affiliates to grant implicit or explicit permission
to any other person to) fail to take any action, where such action or failure to act would be
inconsistent with or cause to be untrue any material, information, covenant, or representation in
this Agreement, the Distribution Agreement, the Other Agreements, the Tax Ruling, the Ruling
Documents (including, without limitation, the representations to the extent that they relate to the
plans, proposals, intentions, and policies of SpinCo, SpinCo Affiliates, or the Death Care
Business), the Tax Opinion, or the Representation Letter.

          (b) Preservation of Tax-Free Status. SpinCo shall not take any action (including, but not
limited to, any cessation, transfer or disposition of all or any portion of the Death Care
Business; payment of extraordinary dividends to shareholders; and acquisitions or issuances of
stock) or permit any SpinCo Affiliate to take any such action, and SpinCo shall not fail to take
any such action or permit any SpinCo Affiliate to fail to take any such action where such action or
failure to act would have an adverse effect on the Tax-Free Status of the Restructuring and/or the
Distribution.

          (c) Reciprocal Covenants by RemainCo. With respect to the covenants contained in Sections
5.2(a) and (b), RemainCo obligates itself to the same covenants as if they pertained to RemainCo,
the RemainCo Affiliates and the Medical Technology Business.

          (d) Sales Issuances and Redemptions of Equity Securities. Until the first day after the
Restriction Period, neither SpinCo nor any SpinCo Affiliate shall, or shall agree to, sell or
otherwise issue to any Person, or redeem or otherwise acquire from any Person, any Equity
Securities of SpinCo or any SpinCo Affiliate; provided, however, that (i) SpinCo
may repurchase such Equity Securities to the extent that such repurchases meet the requirements of
Section 4.05(1)(6) of IRS Revenue Procedure 96-30 (as in effect prior to its modification by IRS
Revenue Procedure 2003-48), (ii) SpinCo may issue such Equity Securities to the extent such
issuances satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s
performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an
employer) of Treasury Regulation Section 1.355-7(d), and (iii) SpinCo may issue Equity Securities
provided that such issuance does not, individually or when aggregated with other issuances and any
transactions occurring in the four-year period beginning on the date which is two years before the
Distribution Date, and with any other transaction which is part of a plan or series of related
transactions (within the meaning of Section 355(e) of the Code) that includes the Distribution
(other than issuances of Equity Securities described in clause (ii) above), result in one or more
Persons acquiring, directly or indirectly, (as determined under Section 355(e) of the Code, taking
into account applicable constructive ownership rules) stock representing a 40% or greater interest,
by vote or value, in SpinCo (or any successor thereto).

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          (e) Tender Offers; Other Business Transactions. Until the first day after the Restriction
Period, neither SpinCo nor SpinCo Affiliate shall (i) solicit any Person to make a tender offer
for, or otherwise acquire or sell, the Equity Securities of SpinCo, (ii) participate in or support
any unsolicited tender offer for, or other acquisition, issuance or disposition of, the Equity
Securities of SpinCo, or (iii) approve or otherwise permit any proposed business combination or
merger or any transaction which, in the case of clauses (i), (ii) or (iii), individually or when
aggregated with any other transactions occurring within the four-year period beginning on the date
which is two years before the Distribution Date, and with any other transaction which is part of a
plan or series of related transactions (within the meaning of Section 355(e) of the Code) that
includes the Distribution (other than issuances of Equity Securities described in Section
5.2(d)(ii) above), results in one or more Persons acquiring, directly or indirectly, (as determined
under Section 355(e) of the Code, taking into account applicable constructive ownership rules)
stock representing a 40% or greater interest, by vote or value, in SpinCo (or any successor
thereto). In addition, neither SpinCo nor any SpinCo Affiliate shall at any time, whether before or
subsequent to the expiration of the Restriction Period, engage in any action described in clauses
(i), (ii) or (iii) of the preceding sentence if it is pursuant to an arrangement negotiated (in
whole or in part) prior to the first anniversary of the Distribution, even if at the time of the
Distribution or thereafter such action is subject to various conditions.

          (f) Dispositions of Assets. Until the first day after the Restriction Period, neither SpinCo
nor any SpinCo Affiliate shall, or shall agree to, sell, transfer, or otherwise dispose of or agree
to dispose of assets (including, for such purpose, any shares of capital stock of a subsidiary and
any transaction treated for tax purposes as a sale, transfer or disposition) that, in the
aggregate, constitute more than 50% of the gross assets of SpinCo, nor shall SpinCo or any SpinCo
Affiliate sell, transfer, or otherwise dispose of or agree to dispose of assets (including, for
such purpose, any shares of capital stock of a subsidiary and any transaction treated for tax
purposes as a sale, transfer or disposition) that, in the aggregate, constitute more than 50% of
the consolidated gross assets of SpinCo Group. The foregoing sentence shall not apply to sales,
transfers, or dispositions of assets in the ordinary course of business. The percentages of gross
assets or consolidated gross assets of SpinCo or SpinCo Group, as the case may be, sold,
transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets
of SpinCo and the members of SpinCo Group as of the Distribution Date. For purposes of this
Section 5.2(f), a merger of SpinCo or one of its subsidiaries with and into any Person (other than
SpinCo or one of its subsidiaries) shall constitute a disposition of all of the assets of SpinCo or
such subsidiary.

          (g) Liquidations Mergers, Reorganizations. Until the first day after the Restriction Period,
neither SpinCo nor its subsidiaries shall, or shall agree to, voluntarily dissolve or liquidate or
engage in any merger (except for a Cash Acquisition Merger), consolidation or other reorganization;
provided, however, mergers of direct or indirect wholly-owned subsidiaries of
SpinCo solely with and into SpinCo or with other direct or indirect wholly-owned subsidiaries of
SpinCo, and liquidations of SpinCo’s subsidiaries, are not subject to this Section 5.2(g) to the
extent not inconsistent with the Tax-Free Status of the Restructuring and the Distribution;
provided further that nothing in this Section 5.2(g) shall prohibit any merger involving
SpinCo or an SpinCo Affiliate not otherwise prohibited by Section 5.2(e).

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          (h) Changes to Voting Rights. Until the first day after the Restriction Period, neither
SpinCo nor any SpinCo Affiliate shall amend its certificate of incorporation (or other
organizational documents), or take any other action, whether through a shareholder vote or
otherwise, affecting the relative voting rights of its separate classes of stock (including,
without limitation, through the conversion of one class of stock into another class of stock), but
only to the extent such change, if treated as an issuance of Equity Securities, would be prohibited
by Section 5.2(d).

          (i) Permitted Transactions. Notwithstanding the restrictions otherwise imposed by Sections
5.2(d) through 5.2(h), during the Restriction Period, SpinCo may (i) approve, participate in,
support or otherwise permit a proposed business combination or transaction that would otherwise
breach the covenant set forth in Section 5.2(d), (ii) sell or otherwise dispose of the assets of
SpinCo Group in a transaction that would otherwise breach the covenant set forth in Section 5.2(e),
(iii) merge SpinCo or any SpinCo Affiliate with another entity without regard to which party is the
surviving entity in a transaction that would otherwise breach the covenant set forth in Section
5.2(g), (iv) issue Equity Securities of SpinCo or any SpinCo Affiliate in a transaction that would
otherwise breach the covenant set forth in Section 5.2(d), or (v) take any action affecting the
relative voting rights of the separate classes of stock of SpinCo or any SpinCo Affiliate that
would otherwise breach the covenant set forth in Section 5.2(h), if and only if such transaction or
action would not violate Section 5.2(a) or Section 5.2(b) and Section 5.2(j) is satisfied.

          (j) Supplemental Ruling: Tax Opinion. Prior to entering into any agreement contemplating a
transaction or action during the Restriction Period described in clauses (i), (ii), (iii), (iv) or
(v) of Section 5.2(i): (A) SpinCo shall request that RemainCo obtain a Supplemental Ruling in
accordance with Section 5.3 of this Agreement to the effect that such transaction will not affect
the Tax-Free Status of the Restructuring and the Distribution and RemainCo shall have received such
a Supplemental Ruling in form and substance satisfactory to RemainCo in its sole and absolute
discretion or (B) SpinCo shall provide RemainCo with an Unqualified Tax Opinion from Qualified Tax
Counsel or another nationally recognized independent tax advisor in form and substance satisfactory
to RemainCo in its reasonable discretion (and in determining whether an opinion is satisfactory,
RemainCo may consider, among other factors, the appropriateness of any underlying assumptions and
management’s representations if used as a basis for the opinion) providing that such transaction or
action will not affect the Tax-Free Status of the Restructuring and the Distribution.

     Section 5.3 Supplemental Rulings and Restrictions on SpinCo.

          (a) Supplemental Rulings at RemainCo Request. RemainCo shall have the right to obtain a
Supplemental Ruling in its sole and absolute discretion. If RemainCo determines to obtain a
Supplemental Ruling, SpinCo shall (and shall cause each SpinCo Affiliate to) cooperate with
RemainCo and take any and all actions reasonably requested by RemainCo in connection with obtaining
the Supplemental Ruling (including, without limitation, by making any representation or providing
any materials or information requested by any Tax Authority; provided that SpinCo shall not
be required to make (or cause any SpinCo Affiliate to make) any representation that is inconsistent
with historical facts or as to future matters or events over which it has no control) or to take
any action that reasonably could be expected to be adverse to its

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business, its financial condition or its assets. RemainCo shall reimburse SpinCo for all
reasonable costs and expenses incurred by SpinCo or its Affiliates in obtaining a Supplemental
Ruling requested by RemainCo within ten (10) Business Days after receiving an invoice from SpinCo
therefor. In connection with obtaining a Supplemental Ruling pursuant to this Section 5.3(a), (i)
RemainCo shall keep SpinCo informed in a timely manner of all material actions taken or proposed to
be taken by RemainCo in connection therewith; (ii) RemainCo shall (a) reasonably in advance of the
submission of any Supplemental Ruling Request, provide SpinCo with a draft copy thereof, (b)
reasonably consider SpinCo ‘s comments on such draft copy, and (c) provide SpinCo with a final copy
of any Supplemental Ruling Request; and (iii) RemainCo shall provide SpinCo with notice reasonably
in advance of, and SpinCo shall have the right to attend, any formally scheduled meetings with any
Taxing Authority (subject to the approval of the Taxing Authority) that relate to such Supplemental
Ruling.

          (b) Supplemental Rulings at SpinCo’s Request. RemainCo agrees that at the reasonable
request of SpinCo pursuant to Section 5.2(j), RemainCo shall (and shall cause each RemainCo
Affiliate to) cooperate with SpinCo and use its reasonable best efforts to seek to obtain, as
expeditiously as possible, a Supplemental Ruling from the IRS for the purpose of confirming
compliance on the part of SpinCo or any SpinCo Affiliate with its obligations under Section 5.2 of
this Agreement. Further, in no event shall RemainCo be required to file any Supplemental Ruling
Request under this Section 5.3(b) unless SpinCo represents that it has reviewed the Supplemental
Ruling Documents and all information and representations, if any, relating to SpinCo or any SpinCo
Affiliate, contained in the Supplemental Ruling Documents are true, correct and complete in all
material respects. SpinCo shall reimburse RemainCo for all reasonable costs and expenses incurred
by RemainCo or its Affiliates in obtaining a Supplemental Ruling requested by SpinCo within ten
(10) Business Days after receiving an invoice from RemainCo therefor. SpinCo hereby agrees that
RemainCo shall have sole and exclusive control over the process of obtaining a Supplemental Ruling,
and that only RemainCo shall apply for a Supplemental Ruling. In connection with obtaining a
Supplemental Ruling pursuant to this Section 5.3(b), (i) RemainCo shall keep SpinCo informed in a
timely manner of all material actions taken or proposed to be taken by RemainCo in connection
therewith; (ii) RemainCo shall (a) reasonably in advance of the submission of any Supplemental
Ruling Request, provide SpinCo with a draft copy thereof, (b) reasonably consider SpinCo’s comments
on such draft copy, and (c) provide SpinCo with a final copy of any Supplemental Ruling Request;
and (iii) RemainCo shall provide SpinCo with notice reasonably in advance of, and SpinCo shall have
the right to attend, any formally scheduled meetings with any Tax Authority (subject to the
approval of the Tax Authority) that relate to such Supplemental Ruling.

     Section 5.4 Liability for Undertaking Certain Actions.

          (a) Notwithstanding anything in this Agreement to the contrary, SpinCo shall be responsible
for, and shall indemnify and hold harmless RemainCo and each of its Affiliates from and against any
liability for Taxes that are attributable to or result from any act or failure to act by SpinCo or
any SpinCo Affiliate, which action or failure to act breaches any of its representations or
covenants contained in this Article V hereof (without regard to the exceptions or provisos set
forth in such provisions but expressly excluding the representations and covenants by RemainCo in
Sections 5.1(c) and 5.2(c) hereof), expressly including, for this purpose, any

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Permitted Transactions and any act or failure to act that breaches Section 5.2(d) or 5.2(i)
regardless of whether such act or failure to act is permitted by Section 5.2(c) through 5.2(h).

          (b) Notwithstanding anything in this Agreement to the contrary, RemainCo shall be responsible
for, and shall indemnify and hold harmless SpinCo and each of its Affiliates from and against any
liability for Taxes that are attributable to or result from any Fault of RemainCo or any RemainCo
Affiliate.

          (c) “Fault” shall mean the breach of a representation, warranty or covenant under this Article
V by a Party or any of its Affiliates to the extent applicable to or made by such Party or any of
its Affiliates.

     Section 5.5 Liability Not Attributable to Fault. If the Distribution Taxes are not
attributable to the Fault of SpinCo or any SpinCo Affiliate or the Fault of RemainCo or any
RemainCo Affiliate, the responsibility for such Distribution Taxes shall be shared by RemainCo and
SpinCo in proportion to the relative market values of RemainCo and SpinCo derived from taking the
average traded stock price for each of RemainCo and SpinCo for the five (5) trading days subsequent
to the Distribution Date, with RemainCo to bear a percentage equal to its market value divided by
the combined market values of both RemainCo and SpinCo (the “RemainCo No Fault Percentage”) and
SpinCo to bear a percentage equal to its market value divided by the combined market values of both
RemainCo and SpinCo (the “SpinCo No Fault Percentage”).

     Section 5.6 Cooperation.

          (a) Without limiting the prohibition set forth in Section 5.3(c), until the first day after
the Restriction Period, SpinCo shall furnish RemainCo with a copy of any ruling request that SpinCo
or any SpinCo Affiliate may file with the IRS or any other Taxing Authority and any opinion
received that in any respect relates to, or otherwise reasonably could be expected to have any
effect on, the Tax-Free Status of any of the Restructuring and the Distribution.

          (b) RemainCo shall reasonably cooperate with SpinCo in connection with any request by SpinCo
for an Unqualified Tax Opinion pursuant to Section 5.2(j) and shall use its reasonable best efforts
to assist SpinCo in obtaining an Unqualified Tax Opinion pursuant to Section 5.2(j).

ARTICLE VI

INDEMNIFICATION

     Section 6.1 Indemnification Obligations of RemainCo. RemainCo shall indemnify SpinCo
and SpinCo’s Affiliates and hold them harmless from and against (without duplication):

          (a) All Taxes and other amounts for which RemainCo Group is responsible under this Agreement;
and

          (b) All Taxes and reasonable out-of-pocket costs for advisors and other expenses attributable
to a breach of any representation, covenant, or obligation of RemainCo under this Agreement.

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     Section 6.2 Indemnification Obligations of SpinCo. SpinCo shall indemnify RemainCo
and RemainCo’s, Affiliates and hold them harmless from and against (without duplication):

          (a) all Taxes and other amounts for which SpinCo Group is responsible under this Agreement;
and

          (b) all Taxes and reasonable out-of-pocket costs for advisors and other expenses attributable
to a breach of any representation, covenant, or obligation of SpinCo under this Agreement.

ARTICLE VII

PAYMENTS

     Section 7.1 Payments.

          (a) General. Unless otherwise provided in this Agreement, in the event that an Indemnifying
Party is required to make a payment to an Indemnified Party pursuant to this Agreement:

               (i) Aggregate Payments of Less than $500,000. If such payments are in the aggregate less than
$500,000 during the calendar quarter, the Indemnified Party shall deliver written notice of the
payments to the Indemnifying Party in accordance with Section 12.5 during the calendar quarter in
which the obligation giving rise to the indemnification payment must be satisfied, and the
Indemnifying Party shall be required to make payment to the Indemnified Party within ten (10)
Business Days after the end of the calendar quarter in which written notice of such payment is
delivered to the Indemnifying Party (or, if later, within thirty (30) Business Days of such
delivery).

               (ii) Payments Equal to or Greater than $500,000. If such payments are individually or in the
aggregate equal to or greater than $500,000, the Indemnified Party shall deliver written notice of
the payment to the Indemnifying Party in accordance with Section 12.5 at least ten (10) Business
Days in advance of the date or dates on which the obligations giving rise to the indemnification
payment must be satisfied (in the case of aggregate payments in excess of $500,000, the earliest
date that any such payment must be satisfied), and the Indemnifying Party shall be required to make
payment to the Indemnified Party no later than the later of (A) five (5) Business Days after
receipt of such notice or (B) five (5) Business Days prior to the date on which the obligations
giving rise to the indemnification must be satisfied. The Indemnified Party shall, within one (1)
Business Day after the date on which the obligation giving rise to the indemnification payment is
satisfied, pay interest to the Indemnifying Party that accrues (at a rate equal to one (1) week
LIBOR minus 25 basis points) on the amount of such payment from the date of receipt of such payment
by the Indemnified Party until the date on which the obligation is satisfied.

          (b) Procedural Matters. The written notice delivered to the Indemnifying Party in accordance
with Section 12.5 shall show the amount due and owing together with a schedule calculating in
reasonable detail such amount (and shall include any relevant Tax Return, statement, bill or
invoice related to Taxes, costs, expenses or other amounts due and owing). All

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payments required to be made by one Party to another Party pursuant to this Section 7.1 shall
be made by electronic, same day wire transfer. Payments shall be deemed made when received. If the
Indemnifying Party fails to make a payment to the Indemnified Party within the time period set
forth in this Section 7.1, such Indemnifying Party shall not be considered to be in breach of its
covenants and obligations established in this Section 7.1 unless and until such failure exists on
the date on which the obligation giving rise to the indemnification payment must be satisfied;
provided, however, that the Indemnifying Party shall pay to the Indemnified Party
(i) interest that accrues (at a rate equal to the Base Rate plus 200 basis points) on the amount of
such payment from the time that such payment was due to the Indemnified Party until the date that
payment is actually made to the Indemnified Party; and (ii) any costs or expenses, including any
breakage costs, incurred by the Indemnified Party to secure such payment or to satisfy the
Indemnifying Party’s portion of the obligation giving rise to the indemnification payment.

          (c) Right of Setoff. It is expressly understood that an Indemnifying Party is hereby
authorized to set off and apply any and all amounts required to be paid to an Indemnified Party
pursuant to this Section 7.1 against any and all of the obligations of the Indemnified Party to the
Indemnifying Party arising under Section 7.1 of this Agreement that are then either due and payable
or past due, irrespective of whether such Indemnifying Party has made any demand for payment with
respect to such obligations.

     Section 7.2 Treatment of Payments made Pursuant to Tax Sharing Agreement. Unless
otherwise required by a Final Determination, this Agreement or a “more likely than not” tax opinion
rendered by a Party’s tax advisor, for U.S. federal Tax purposes, any payment made pursuant to this
Agreement by:

          (a) SpinCo to RemainCo shall be treated for all Tax purposes as a distribution by SpinCo to
RemainCo with respect to stock of SpinCo under Section 301 of the Code occurring after SpinCo is
directly owned by RemainCo and immediately before the applicable Distribution;

          (b) RemainCo to SpinCo shall be treated for all Tax purposes as a tax-free contribution by
RemainCo to SpinCo with respect to its stock occurring after SpinCo is directly owned by RemainCo
and immediately before the applicable Distribution;

          (c) Payments made by a Party for its reasonable and necessary costs and expenses with respect
to either the Distribution Agreement or Judgment Sharing Agreement shall be treated as amounts
deductible by such Party pursuant to Section 162 of the Code; and

          (d) In each case, none of the Parties shall take any position inconsistent with such
treatment, and for purposes of this Section 7.2, making any type of disclosure in a Tax Return for
the purpose of avoiding penalties shall not be considered as taking a position that is
inconsistent.

In the event that a Taxing Authority asserts that a Party’s treatment of a payment pursuant to this
Agreement should be other than as required pursuant to this Agreement (ignoring any potential
inconsistent or adverse Final Determination), such Party shall use its reasonable best efforts to
contest such challenge.

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     Section 7.3 Treatment of Payments made Pursuant to Distribution Agreement and Judgment
Sharing Agreement. Unless otherwise required by a Final Determination or this Article VII, for
U.S. federal Income Tax purposes, payments made by one Party to another pursuant to the
Distribution Agreement or Judgment Sharing Agreement shall be treated in accordance with the
principles set forth in Section 7.2. Further, none of the Parties shall take any position
inconsistent with such treatment, except to the extent that there is a Final Determination with
respect to the paying Party that such payment is not deductible. In the event that a Taxing
Authority asserts that a Party’s treatment of a payment pursuant to the Distribution Agreement or
Judgment Sharing Agreement should be other than as set forth in this Agreement (ignoring any
potential inconsistent or adverse Final Determination), such Party shall use its reasonable best
efforts to contest such challenge.

     Section 7.4 Payments Net of Tax Benefit Actually Realized. All amounts required to be
paid by one Party to another pursuant to this Agreement, the Distribution Agreement or the Judgment
Sharing Agreement shall be reduced by the Tax Benefit Actually Realized by the Indemnified Party or
its Subsidiaries with respect to such payments in the taxable year the payment is made or any prior
taxable year.

ARTICLE VIII

AUDITS

     Section 8.1 Notice. Within fifteen (15) Business Days after a Party or any of its
Affiliates receives a written notice from a Taxing Authority (reduced to ten (10) Business Days for
written notices received from a state or local Taxing Authority) of the existence of an Audit that
may require indemnification pursuant to this Agreement, that Party shall notify the other Parties
of such receipt and send such notice to the other Parties via overnight mail. The failure of one
Party to notify the other Parties of an Audit shall not relieve such other Party of any liability
and/or obligation that it may have under this Agreement, except to the extent that the Indemnifying
Party’s rights under this Agreement are materially prejudiced by such failure.

     Section 8.2 Audits.

          (a) Determination of Party to Administer and Control an Audit. Subject to Sections 8.2(b),
8.2(c), and 8.2(d):

               (i) RemainCo and its Subsidiaries shall administer and control all Pre-Distribution U.S.
Income Tax Audits;

               (ii) Pre-Distribution Transfer Pricing Tax Audits shall be administered and controlled by the
Party and its Subsidiaries that would be primarily liable under applicable Law to pay to the
applicable Taxing Authority the Taxes resulting from such Audits;

               (iii) Pre-Distribution Non-Income or Non-U.S. Tax Audits shall be administered and controlled
by the Party and its Subsidiaries that would be primarily liable under applicable Law to pay to the
applicable Taxing Authority the Taxes resulting from such Audits;

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               (iv) Straddle Period Tax Audits shall be administered and controlled by the Party and its
Subsidiaries that had the responsibility under Section 3.1 for preparing the Tax Return for such
Straddle Period that is the subject of the Audit; and

               (v) Post-Distribution Tax Audits shall be administered and controlled by the Party and its
Subsidiaries that had the responsibility under Section 3.1 for preparing the Tax Return for such
Post-Distribution Tax Period that is the subject of the Audit.

          (b) Administration and Control: Cooperation. The Party responsible for administering and
controlling an Audit pursuant to the provisions of Section 8.2(a), above (the “Audit Control
Party”), shall have absolute authority to make all decisions (determined in its sole discretion)
with respect to the administration and control of such Audit, including the selection of all
external advisors. In that regard, the Audit Control Party (i) may in its sole discretion settle or
otherwise determine not to continue to contest any issue related to such Audit without the consent
of the other Parties, and (ii) shall, as soon as reasonably practicable and prior to settlement of
an issue that could cause the other Party to become responsible for Taxes under Section 8.3, notify
the Audit Representatives of such other Party of such settlement; provided,
however, that the Audit Control Party shall not settle any issue or fail to contest any
issue related to an Audit if such settlement or failure to contest would cause the other Party or
any of its Affiliates to be liable for any Taxes without the consent of such Party, which consent
shall not be unreasonably withheld or delayed. The other Party shall (and shall cause its
Affiliates to) undertake all actions and execute all documents (including an extension of the
applicable statute of limitations) that are determined in the sole discretion of the Audit Control
Party to be necessary to effectuate such administration and control. The Parties shall act in good
faith and use their reasonable best efforts to cooperate fully with each other Party (and their
Affiliates) in connection with such Audit and shall provide or cause their Affiliates to provide
such information to each other as may be necessary or useful with respect to such Audit in a timely
manner, identify and provide access to potential witnesses, and other persons with knowledge and
other information within its control and reasonably necessary to the resolution of the Audit.
Notwithstanding anything to the contrary in this Section 8.2(b), after a Change of Control or a
Bankruptcy of the Audit Control Party, the Audit Control Party shall not, during the ninety (90)
day period following such Change of Control or Bankruptcy, choose to litigate any issue with
respect to an Audit or make any decision to change the forum or jurisdiction with respect to which
an issue arising under an Audit is being litigated, without the prior written consent of all of the
Parties.

          (c) Participation Rights of Parties and Information Sharing with respect to Audits.

               (i) Each Party that would be responsible under Section 8.3 for Taxes resulting from an Audit
(other than the Audit Control Party) (a “Participating Party”) shall have limited participation
rights as set forth in this Section 8.2(c) with respect to such Audit. Promptly after the
Distributions, the Audit Control Party shall arrange for a meeting or conference call that includes
all of the Participating Parties to discuss the status of all ongoing Audits. In addition, promptly
after notification of an Audit pursuant to Section 8.1, the Audit Control Party shall arrange for a
meeting or conference call that includes all of the Participating Parties to plan for the
management of such Audit. Thereafter, the Parties shall arrange for a meeting or conference call to
be held on a monthly basis (or on such other basis as the Parties may agree) in order to

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facilitate regular communication on the status of the Audits. These meetings shall be
scheduled at the beginning of each fiscal year and shall not be rescheduled without the consent of
all of the Parties. The Parties may determine from time to time to have a separate special meeting
to discuss a significant Audit issue. Each Participating Party shall identify any personnel and
external advisors who are participating in each of the meetings described above, and shall provide
a list of the names of such persons to the Audit Control Party in advance of such meeting.

               (ii) Upon the reasonable request of a Participating Party, the Audit Control Party shall make
available relevant personnel and external advisors to meet with the Participating Party and its
independent auditor in order to review the status of the Audits. The independent auditors of the
Participating Parties shall have reasonable access to Audit-related information and personnel. The
Participating Parties shall provide the Audit Control Party with reasonable notice of such
requested meetings or information.

               (iii) The Participating Parties shall have reasonable access to the external advisors retained
by the Audit Control Party to advise it and its Affiliates on matters pertaining to an Audit
(“Audit External Advisor”) with respect to issues that may affect such Party’s liability for Taxes.
In the event that a meeting described in (i) or (ii) above is attended by an Audit External
Advisor, all of the Parties shall have the right to participate in such meeting by telephone or in
person. The Audit Control Party shall provide the other Parties with notice (including the time and
location) of such meeting at least twenty-four (24) hours in advance thereof. Any Participating
Party may request a meeting with an Audit External Advisor on matters that are unrelated to the
Audit; provided; however, that if the matter involves evaluating Audit related issues, the
requesting Participating Party must give all of the other Parties at least twenty-four (24) hours
notice prior to such meeting so that such Parties can elect to participate (failure to respond to
the Participating Party’s notice prior to the meeting shall constitute an election to decline
participation). No Party shall request an opinion on an Audit related issue from an Audit External
Advisor unless the Audit Control Party affirmatively declines to obtain such opinion.

               (iv) Each Participating Party shall have access to any written documentation in the possession
of the Audit Control Party that pertains to the Audit (including any written summaries of issues
that the Audit Control Party has developed in the context of evaluating the financial reporting of
the Audit) and the Audit Control Party shall make such information available in the offices of the
Audit Control Party; provided, however, that if documentation was prepared solely
by or on behalf of a Party, then the documentation must relate to issues with respect to which the
Participating Party may have liability for Taxes. Such access shall be provided at such times and
in such manner as the Parties agree, but no less frequently than monthly. Copies of the
documentation will be made available to the Participating Parties at their sole cost and expense.
The Audit Control Party shall undertake to use reasonable efforts to include within the written
documentation described above information that is transmitted through electronic means, such as
through internet e-mail. Subject to the exceptions listed on Schedule 8.2(c)(iv-1), the Audit
Control Party shall maintain an internet-based or other electronic document repository system for
written documentation related to the Audit, and each of the Participating Parties shall be granted,
if so requested, “read only” access to such repository system at such requesting Party’s own cost
and expense. Such system shall be managed and controlled by the Audit Control Party and all
decisions with respect to the system (including but

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not limited to the documents to be posted to such system) shall be made by the Audit Control
Party in its sole discretion; provided, however, that the Audit Control Party shall at a minimum
post documents related to such Audits consistent with the U.S. Audit Control Party’s document
posting practices immediately prior to the Distribution Date in respect to the U.S. federal Income
Tax Audits of RemainCo’s, and SpinCo’s Subsidiaries. An illustrative, but not exclusive, list of
the documents and other information to be made available by the Audit Control Party to the
Participating Parties is set forth in Schedule 8.2(c)(iv-2).

               (v) The Participating Parties are encouraged to provide consultation to the Audit Control
Party in regard to Audit strategy and shall, upon request of the Audit Control Party, provide such
consultation. The Participating Party may elect to employ separate counsel to advise the
Participating Party as additional counsel in or in connection with an Audit, but in that event, the
fees and expenses of the separate counsel shall be paid solely by the Participating Party. The
Audit Control Party shall in good faith consider all advice and other input received from the
Participating Parties in connection with their consultations with respect to an Audit. However, the
Audit Control Party shall retain the authority, in its reasonable discretion, to make all Audit
decisions. In that regard, the Participating Parties and their separate counsels shall not be
allowed to participate in any Audit-related meetings other than those described in (i) or (ii)
above (unless such a meeting is attended by the personnel of a Participating Party, in which case
that Participating Party may attend the meeting but may not actively participate), respond directly
to a Taxing Authority conducting the Audit, or in any manner control resolution of the Audit.

               (vi) Any Participating Party shall have the right to attend all administrative meetings with
and hearings involving the Governmental Authority that has initiated or is conducting the Audit
and, in this connection, the Audit Control Party shall provide the Participating Parties with at
least ten (10) days advance written notice of such meeting or hearing and, if the Audit Control
Party has received notice of such hearing or meeting that is less than ten (10) days, the Audit
Control Party shall provide as much advance written notice to the Participating Parties as is
reasonable under the circumstances.

          (d) Change in Audit Control Party.

               (i) Notwithstanding the designation of a Party as the Audit Control Party pursuant to the
provisions of Section 8.2(a), a Party may, upon thirty (30) days’ written notice to the Audit
Control Party, appoint itself as the Audit Control Party for an Audit if:

	 	a.	 	The Party will have a liability
for a majority of the Taxes that may result upon a Final
Determination of the Audit; or
	 
	 	b.	 	There is a Bankruptcy of the
Audit Control Party.

               (ii) Each Party has the exclusive right to replace its respective Audit Representative
provided that such Audit Representative must be an employee of such Party or any of its Affiliate,
and in the event of such replacement, the applicable Party shall provide written notice of such
replacement to the other Parties.

          (e) External and Internal Costs and Expenses. Each Party shall bear the internal and external
costs and expenses incurred by it or any of its Affiliates related to Pre-

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Distribution U.S. Income Tax Audits, Qualified Plan Tax Audits, Pre-Distribution Payroll Tax
Audits, and Pre-Distribution Transfer Pricing Tax Audits.

          (f) Power of Attorney/Officer Signature. Each Party hereby appoints (and shall cause its
Subsidiaries to appoint) the Audit Control Party (and its designated representatives) as its agent
and attorney-in-fact to take the actions the Audit Control Party deems necessary or appropriate to
implement the responsibilities of the Audit Control Party under this Agreement. Each Party also
shall (or shall cause its Subsidiaries to) execute and deliver to the Audit Control Party a power
of attorney, substantially in the form attached hereto as Schedule 8.2(g-1), and such other
documents as are reasonably requested from time to time by the Audit Control Party (or its
designee). Such other documents include, but are not limited to, documents signed by an authorized
corporate officer of a Party (or a Subsidiary of a Party), where the Audit Control Party determines
that a power of attorney is insufficient (in which case such signed documents shall not be
withheld) to allow the Audit Control Party to make the necessary or appropriate filings or to take
steps necessary or appropriate to the Audit Control Party’s defense, prosecution, or settlement of
an Audit under this Agreement; provided, that (i) such power of attorney or such other
documents shall not expand the rights or powers of such Audit Control Party beyond those provided
by this Agreement; (ii) activities conducted under a power of attorney or such other documents are
limited to the activities authorized by that power of attorney or such other documents; (iii) a
power of attorney or such other documents delivered by a Party to the Audit Control Party can be
revoked only with the approval of the Audit Committee of the Board of Directors of the Party to
which the power of attorney or such other documents relates; and (iv) a revocation of a power of
attorney or such other documents by a Party’s Audit Committee also effects the immediate revocation
of all powers of attorney or such other documents granted under, or derived from, the authority of
the power of attorney that is revoked by that Party’s Audit Committee. Examples of activities for
which the signature of a Party’s authorized representative could be required are set forth on
Schedule 8.2(g-2).

     Section 8.3 Payment of Audit Amounts.

          (a) Tax Audits. Except with regard to adjustments to carryback claims in Section 4.2, Taxes
payable in connection with any Final Determination with respect to a Tax Audit, other than with
respect to Taxes that arise upon Audit and the allocation of the liability for such Taxes are set
forth in Sections 8.3(b), (c), (d), (e) and (f) below, shall be allocated between RemainCo and
SpinCo in the same manner as specified in Section 2.2.

          (b) Pre-Distribution Qualified Plan Tax Audits. In connection with any Final Determination
with respect to a Pre-Distribution Qualified Plan Tax Audit, RemainCo and SpinCo each shall be
liable for and shall pay or cause to be paid to the applicable Taxing Authority as a percentage of
the amount of Final Determination that equals each Party’s portion of the RemainCo Pension Plan
Assets as finally determined and divided pursuant to Section 3.2 of the Employee Matters Agreement.

          (c) Disallowance of Deductions with Respect to Certain Payments Paid to a Risk Affiliate. In
connection with any Final Determination with respect to deductions that were taken on any Combined
Returns or Separate Return for payments made to a Risk Affiliate, other than the payment of
insurance premiums to a Risk Affiliate, the Taxes owing with respect to such

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Final Determination shall be paid by RemainCo using the RemainCo Sharing Percentage and paid
by SpinCo using the SpinCo Sharing Percentage.

          (d) Disallowance of Risk Affiliate’s Loss Reserves. In connection with any Final
Determination that results in Federal Income Tax Liability for the RemainCo Consolidated Return
Group that arises from the disallowance of the insurance loss reserves established by a Risk
Affiliate and that were to continue subsequent to the Risk Affiliate’s merger into RemainCo or the
Risk Affiliate’s liquidation, RemainCo shall pay its portion of such liability based on the tax
deductible loss reserves of the Risk Affiliate allocated to it relative to the total tax-deductible
reserves and SpinCo shall pay its portion of such liability based on the tax deductible loss
reserves of the Risk Affiliate allocated to it relative to the total tax deductible reserves;
provided, however, if SpinCo makes a payment or otherwise has liability for Taxes under this
Section 8.3(d) and some or all of the loss reserves allocated to SpinCo ultimately are not
deductible by SpinCo in respect of computing its Federal Income Tax Liability because of their
disallowance upon an Audit, the RemainCo will reimburse SpinCo an amount equal to the value of the
Tax detriment to SpinCo resulting from the amount of loss reserves that alternately are not
deductible by SpinCo in computing its Federal Income Tax Liability.

          (e) Disallowance of SpinCo’s Payment of Overhead Expenses. In connection with any Final
Determination with respect to deductions that were taken by SpinCo or its Affiliates on any
Combined Return or Separate Returns for payments made to RemainCo with respect to reimbursements
from SpinCo to RemainCo for corporate overhead and administrative expenses that are allocated to
SpinCo, RemainCo shall be liable for the amount of such Final Determination, but not to exceed the
amount of overhead and administrative expenses that RemainCo received and the deduction of which
has been disallowed, with any amount in excess of such payments to RemainCo to be a liability of
SpinCo.

          (f) Foreign Tax Audit. In connection with any Audit involving a foreign entity for a
Pre-Distribution Tax Period or Straddle Period that results in a Final Adjustment and the payment
of foreign Taxes, the liability for such additional foreign Taxes shall be paid by the Party or its
Affiliate whose business operations resulted in the foreign Tax that is the subject of the Audit.

          (g) Adjustments to Refunds. Notwithstanding Sections 8.3(a) through (f), above, if a Final
Determination with respect to an Audit includes an adjustment to a Refund previously received by a
Party or its Affiliates, such Party shall be liable for one hundred percent (100%) of the amount
owed to the extent of such recovery. For purposes of this Section 8.3(c), an amount shall be
considered to be owed when it is actually paid or satisfied pursuant to an offset.

          (h) Payment Procedures. In connection with any Audit that results in an amount to be paid
pursuant to Section 8.3(a), (b), (c), (d), (e) and (f), the Audit Control Party shall, within
thirty (30) Business Days following a final resolution of such Audit, submit in writing to the
other Party a preliminary determination (calculated and explained in detail reasonably sufficient
to enable the Party to fully understand the basis for such determination and to permit such Party
and its Affiliates to satisfy their financial reporting requirements) of the portion of such amount
to be paid by each Party pursuant to Section 8.3(a), (b), (c), (d), (e) and (f), as applicable.
Each of the Parties and its Affiliates shall have access to all data and information necessary to

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calculate such amounts and the Parties and their Affiliates shall cooperate fully in the
determination of such amounts. Within twenty (20) Business Days following the receipt by a Party of
the information described in this Section 8.3(h), such Party shall have the right to object only to
the calculation of the amount of the payment (but not the basis for the payment) by written notice
to the other Parties; such written notice shall contain such disputed item or items and the basis
for its objection. If no Party objects by proper written notice to the other Parties within the
time period described in this Section 8.3(h), the calculation of the amounts due and owing from
each Party shall be deemed to have been accepted and agreed upon, and final and conclusive, for
purposes of this Section 8.3(h). If any Party objects by proper written notice to the other Parties
within such time period, the Parties shall act in good faith to resolve any such dispute as
promptly as practicable in accordance with Article XI. The Party or its Affiliate responsible for
paying to the applicable Taxing Authority under applicable Law amounts owed pursuant to a Final
Determination shall make such payments to such Taxing Authority prior to the due date for such
payments. The other Parties shall reimburse the paying Party in accordance with Article VII and
Section 7.1 for the portion of such payments for which such other Parties are liable pursuant to
this Section 8.3. The time periods specified above for submitting a preliminary determination and
objecting may be shortened to a time period determined by the Parties if these Parties ascertain
that such shortened time period is necessary to meet the Audit obligations of the Parties and their
Affiliates.

          (i) Advance Payment of Taxes. In the event that the Audit Control Party decides to contest
the position of a Taxing Authority taken with respect to a Pre-Distribution U.S. Income Tax Audit,
a Pre-Distribution Qualified Plan Tax Audit, a Pre-Distribution Payroll Tax Audit, or a
Pre-Distribution Transfer Pricing Tax Audit in a forum or jurisdiction that requires the prepayment
or deposit of the Taxes (or security for the Taxes) in order to contest the Taxes determined by the
Taxing Authority to be due and payable, each of the other Parties must pay to the Audit Control
Party its portion of such prepayment determined in accordance with this Section 8.3; provided,
however, if any Party’s portion of such prepayment exceeds $250,000, the Parties shall only be
obligated to pay their portions of such prepayment if the Parties vote in favor of the Audit
Control Party’s decision as to choice of forum or jurisdiction. Each of the Parties shall deliver
its written vote to the Audit Control Party within ten (10) days of its receipt of written notice
of the Audit Control Party’s decision as to choice of forum or jurisdiction and the amount of the
required prepayment. A recoupment of all or a portion of a prepayment of Taxes resulting from a
Final Determination shall be paid to the Party or Parties that contributed to such prepayment, in
proportion to such contributions. No Party shall be liable to any other Party in the event that a
Final Determination does not allow for the recovery of all or a portion of a prepayment.

     Section 8.4 Correlative Adjustments. If pursuant to a Final Determination there is a
Correlative Adjustment attributable to a Pre-Distribution Non-Income or Non-U.S. Tax Audit that
causes a Party or its Affiliate to become entitled to a tax benefit, such Party shall pay to the
Party that experiences, or whose Affiliates experience, a tax detriment in an amount equal to the
lesser of (a) the Tax Benefit Actually Realized or (b) the amount of the tax detriment as a result
of such Correlative Adjustment.

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ARTICLE IX

ALLOCATION OF TAX ATTRIBUTES AND

OTHER TAX MATTERS

     Section 9.1 Allocation of Tax Attributes. Each Party shall make its own determination
as to the existence and the amount of the Tax Attributes to which it is entitled after the
Effective Time; provided, however, that such determination shall be made in a
manner that is (a) reasonably consistent with the past practices of the Parties; (b) in accordance
with the rules prescribed by applicable Law, including the Code and the Treasury Regulations; (c)
consistent with the IRS Ruling, the Tax Representation Letters, and the Tax Opinions; and (d)
reasonably determined by the Party to minimize the aggregate cash Tax liability of the Parties for
all Pre-Distribution Tax Periods and the portion of all Straddle Periods ending on the Distribution
Date. Each Party agrees to provide the other Parties with all of the information supporting the Tax
Attribute determinations made by that Party pursuant to this Section 9.1. Notwithstanding the
above, the Tax Attributes listed on Schedule 9.1 shall be allocated among the Parties in the manner
specified thereon.

     Section 9.2 Third Party Tax Indemnities and Benefits. Notwithstanding anything to the
contrary in this Agreement, the Parties shall share in accordance with their No-Fault Sharing
Percentages (a) any duty or obligation (contractual or otherwise) of a Party or any of its
Affiliates, and (b) any Tax benefits, in either case, that arose or is attributable to a period (or
portion thereof) ending on or prior to the Distribution Date, to reimburse or be reimbursed by, as
the case may be, a Person other than a Party or its Affiliates pursuant to a contractual Tax
indemnity agreement entered into in conjunction with the acquisition or disposition of a business.
Each Party shall promptly notify the other Party upon receiving notice of any amount to be shared
pursuant to this Section 9.2.

ARTICLE X

DEFAULTED AMOUNTS

     Section 10.1 General. In the event that one or more Parties defaults on its
obligation to pay Distribution Taxes for which it is liable pursuant to Article V to another Party,
then each non-defaulting Party shall be required to pay an equal portion of such Distribution Taxes
to such other Party; provided, however, that no payment obligation shall exist
under this Section 10.1 with respect to Distribution Taxes that are attributable to the Fault of
one or more Parties; provided, further, that any payment of Distribution Taxes by a
non-defaulting Party pursuant to this Section 10.1 shall in no way release the defaulting Party
from its obligations to pay such Distribution Taxes and any non-defaulting Party may exercise any
available legal remedies available against such defaulting Party; provided,
further, that interest shall accrue on any such payment by a non-defaulting Party at a rate
per annum equal to the then applicable Base Rate plus four percent (4%), or the maximum legal rate,
whichever is lower. In connection with the foregoing, it is expressly understood that any
defaulting Party’s rights to any amounts to be received by such defaulting Party hereunder may be
used via a right of offset to satisfy, in whole or in part, the obligations of such defaulting
Party to pay the Distribution Taxes that are borne by the non-defaulting Parties; such rights of
offset shall be applied in favor of the non-defaulting Party or Parties in proportion to the
additional amounts paid by any such non-defaulting Party or Parties.

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     Section 10.2 Subsidiary Funding. Without limitation of the Parties’ rights and
obligations otherwise set forth in this Agreement and provided that no other Party has defaulted on
any of its obligations pursuant to this Agreement, each Party agrees to provide or cause to be
provided such funding as is necessary to ensure that its respective Subsidiaries are able to
satisfy their respective Tax liabilities to a Taxing Authority that arise as a result of a Final
Determination under Section 8.3 of this Agreement, including any such Tax liabilities that, upon
default by a Party’s Subsidiary, may result in another Party’s Subsidiary paying or being required
to pay the defaulted Tax liabilities to a Taxing Authority.

ARTICLE XI

ARBITRATION; DISPUTE RESOLUTION

     Section 11.1 Agreement to Arbitrate. The procedures for discussion, negotiation and
arbitration set forth in this Article XI shall be the final, binding and exclusive means to
resolve, and shall apply to, all disputes, controversies or claims (whether in contract, tort or
otherwise) that may arise out of or relate to, or arise under or in connection with this Agreement.
Each Party agrees on behalf of itself and each member of its respective Group that the procedures
set forth in this Article XI shall be the final, binding and exclusive remedy in connection with
any dispute, controversy or claim relating to any of the foregoing matters and irrevocably waives
any right to commence any Action in or before any Governmental Authority, except to the extent
provided under the Arbitration Act in the case of judicial review of arbitration results or awards.
Each Party on behalf of itself and each member of its respective Group irrevocably waives any right
to any trial by jury with respect to any dispute, controversy or claim covered by this Section
11.1.

     Section 11.2 Escalation.

          (a) Expeditious Resolution. It is the intent of the Parties to use their respective
commercially reasonable efforts to resolve expeditiously any dispute, controversy or claim between
them with respect to the matters covered by this Agreement that may arise from time to time on a
mutually acceptable negotiated basis. In furtherance of the foregoing, any Party involved in a
dispute, controversy or claim may deliver a notice (an “Escalation Notice”) demanding an in-person
meeting involving representatives of the Parties at a senior level of management (or if the Parties
agree, of the appropriate business function or division within such entity). A copy of any such
Escalation Notice shall be delivered addressed to the General Counsel, or like chief legal officer
or official, of each Party involved in the dispute, controversy or claim (which copy shall state
that it is an Escalation Notice pursuant to this Agreement). Any agenda, location or procedure for
such discussions or negotiations between the Parties may be established by agreement of the Parties
from time to time; provided, however, that the Parties shall use their commercially reasonable
efforts to meet within 20 days of the Escalation Notice.

          (b) Good Faith Negotiations. Following delivery of an Escalation Notice, the Parties
shall undertake good faith, diligent efforts to negotiate a commercially reasonable resolution of
the dispute, controversy or claim. The Parties may, by mutual consent, retain a mediator to aid the
Parties in their discussions and negotiations. Any opinion expressed by the mediator shall be
strictly advisory and shall not be binding on the Parties, nor shall any opinion expressed by the
mediator be admissible in any arbitration proceedings. The mediator may be chosen from a list of
mediators selected by the Parties or by other agreement of the Parties. All

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third-party costs of the mediation shall be borne equally by the Parties involved in the
matter, and each Party shall be responsible for its own expenses. Mediation is not a prerequisite
to an Arbitration Demand Notice under Section 11.3.

     Section 11.3 Demand for Arbitration.

          (a) Initiation of Process. At any time following 60 days after the date of an
Escalation Notice (the “Arbitration Demand Date”), any Party involved in the dispute, controversy
or claim (regardless of whether such Party delivered the Escalation Notice) may deliver a notice
demanding arbitration of such dispute, controversy or claim (an “Arbitration Demand Notice”).
Delivery of an Escalation Notice by a Party shall be a prerequisite to delivery of an Arbitration
Demand Notice by that Party or the other Party; provided, however, that in the event that any Party
shall deliver an Arbitration Demand Notice to the other Party, such other Party may itself deliver
an Arbitration Demand Notice to such first Party with respect to any related dispute, controversy
or claim with respect to which the Applicable Deadline has not passed without the requirement of
delivering an Escalation Notice. No Party may assert that the failure to resolve any matter during
any prior discussions or negotiations, the course of conduct during such prior discussions or
negotiations, or the failure to agree on a mutually acceptable time, agenda, location or procedure
for a meeting is a prerequisite to an Arbitration Demand Notice under Section 11.3. In the event
that any Party delivers an Arbitration Demand Notice with respect to any dispute, controversy or
claim that is the subject of any then pending arbitration proceeding or of a previously delivered
Arbitration Demand Notice, all such disputes, controversies and claims shall be resolved in the
arbitration proceeding for which an Arbitration Demand Notice was first delivered unless the
arbitrators in their sole discretion determine that it is impracticable or otherwise inadvisable to
do so.

          (b) Limitation Periods. Any Arbitration Demand Notice may be given until the date
that is two years after the later of the occurrence of the act or event giving rise to the
underlying claim or the date on which such act or event was, or should have been, in the exercise
of reasonable due diligence, discovered by the Party asserting the claim (as applicable and as it
may in a particular case be specifically extended by the Parties in writing, the “Applicable
Deadline”). Any discussions, negotiations or mediations between the Parties pursuant to this
Agreement or otherwise will not toll the Applicable Deadline unless expressly agreed in writing by
the Parties. Each of the Parties agrees on behalf of itself and each member of its Group that if an
Arbitration Demand Notice with respect to a dispute, controversy or claim is not given prior to the
occurrence of the Applicable Deadline, as between or among the Parties and the members of their
Groups, such dispute, controversy or claim will be barred. Subject to Section 11.9, upon delivery
of an Arbitration Demand Notice pursuant to Section 11.3(a) prior to the Applicable Deadline, the
dispute, controversy or claim, and all substantive and procedural issues related thereto, shall be
decided by a three member panel of arbitrators in accordance with this Article XI.

     Section 11.4 Arbitrators.

          (a) Selection. The Party delivering the Arbitration Demand Notice shall notify the
American Arbitration Association (“AAA”) and the other Party in writing describing in reasonable
detail the nature of the dispute. Within 20 days of the date of the Arbitration Demand

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Notice, each Party to the dispute shall select one arbitrator from the members of a panel of
arbitrators of the AAA. The selected arbitrators shall then jointly select a third arbitrator from
the members of a panel of arbitrators of the AAA, and such third arbitrator shall be disinterested
with respect to each of the Parties and shall be experienced in complex commercial arbitration. In
the event that the Parties’ selected arbitrators are unable to agree on the selection of the third
arbitrator, the AAA shall select the third arbitrator, within 45 days of the date of the
Arbitration Demand Notice. In the event that any arbitrator is unable to serve, his replacement
will be selected in the same manner as the arbitrator to be replaced. The vote of two of the three
arbitrators shall be required for any decision under this Article XI.

          (b) Time. The arbitrators will set a time for the hearing of the matter which will
commence no later than 180 days after the date of appointment of the third arbitrator and which
hearing will be no longer than 30 days (unless in the judgment of the arbitrators the matter is
unusually complex and sophisticated and thereby requires a longer time, in which event such hearing
shall be no longer than 90 days). The final decision of such arbitrators will be rendered in
writing to the Parties not later than 60 days after the last day of the hearing, unless otherwise
agreed by the Parties in writing.

          (c) Place. The place of any arbitration hereunder will be Indianapolis, Indiana, and
the language of any arbitration hereunder will be English. Unless otherwise agreed by the Parties,
the arbitration hearing shall be conducted on consecutive days.

     Section 11.5 Hearings. Within the time period specified in Section 11.4(b), the
matter shall be presented to the arbitrators at a hearing by means of written submissions of
memoranda and verified witness statements, filed simultaneously, and responses, if necessary in the
judgment of the arbitrators or both of the Parties. If the arbitrators deem it to be essential to a
fair resolution of the dispute, live cross-examination or direct examination may be permitted, but
is not generally contemplated to be necessary. The arbitrators shall actively manage the
arbitration with a view to achieving a just, speedy and cost-effective resolution of the dispute,
claim or controversy. The arbitrators may, in their discretion, set time and other limits on the
presentation of each Party’s case, its memoranda or other submissions, and may refuse to receive
any proffered evidence, which the arbitrators, in their discretion, find to be cumulative,
unnecessary, irrelevant or of low probative nature. Any arbitration hereunder shall be conducted in
accordance with the Commercial Arbitration Rules of the AAA (“Rules”) in effect on the date the
Arbitration Demand Notice is served. The decision of the arbitrators will be final and binding on
the Parties, and judgment thereon may be had and will be enforceable in any court having
jurisdiction over the Parties. Arbitration awards will bear interest at the Base Rate plus 2% per
annum, subject to any maximum amount permitted by applicable law. To the extent that the provisions
of this Agreement and the prevailing Rules conflict, the provisions of this Agreement shall govern.

     Section 11.6 Discovery and Certain Other Matters.

          (a) Production of Documents. Any Party involved in a dispute, controversy or claim
subject to this Article XI may request document production from the other Party or Parties of
specific and expressly relevant documents, with the reasonable expenses of the producing Party
incurred in such production paid by the requesting Party. Any such discovery shall be conducted in
accordance with the Rules, subject to the discretion of the arbitrators. Any

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such discovery shall be conducted expeditiously and shall not cause the hearing to be
adjourned except upon consent of all Parties involved in the applicable dispute or upon an
extraordinary showing of cause demonstrating that such adjournment is necessary to permit discovery
essential to a Party to the proceeding. Disputes concerning the scope of document production and
enforcement of the document production requests will be determined by written agreement of the
Parties involved in the applicable dispute or, failing such agreement, will be referred to the
arbitrators for resolution. Subject to the terms of this Agreement, all discovery requests will be
subject to the Parties’ rights to claim any applicable privilege, and no joint privilege may be
waived without the prior written consent of both Parties to this Agreement. The arbitrators will
adopt procedures to protect the proprietary rights of the Parties and to maintain the confidential
treatment of the arbitration proceedings (except as may be required by law). Subject to the
foregoing, the arbitrators shall have the power to issue subpoenas to compel the production of
documents relevant to the dispute, controversy or claim.

          (b) Authority of Arbitrators. The arbitrators shall have full power and authority to
determine issues of arbitrability but shall otherwise be limited to interpreting or construing the
applicable provisions of this Agreement, and will have no authority or power to limit, expand,
alter, amend, modify, revoke or suspend any condition or provision of this Agreement; it being
understood, however, that the arbitrators will have full authority to implement the provisions of
this Agreement, and to fashion appropriate remedies for breaches of this Agreement (including
interim or permanent injunctive relief); provided that the arbitrators shall not have (i) any
authority in excess of the authority a court having jurisdiction over the Parties and the
controversy or dispute would have absent these arbitration provisions or (ii) any right or power to
award punitive damages. It is the intention of the Parties that in rendering a decision the
arbitrators give effect to the applicable provisions of this Agreement and follow applicable law
(it being understood and agreed that this sentence shall not give rise to a right of judicial
review of the arbitrators’ award).

          (c) Effect of Failure to Participate. If a Party fails or refuses to appear at and
participate in an arbitration hearing after due notice, the arbitrators may hear and determine the
controversy upon evidence produced by the appearing Party.

          (d) Costs. Arbitration costs will be borne equally by each Party involved in the
matter, and each Party will be responsible for its own attorneys’ fees and other costs and
expenses, including the costs of any expert witnesses selected by such Party.

     Section 11.7 Certain Additional Matters.

          (a) Nature of Award. Any arbitration award shall be a bare award limited to a holding
for or against a Party and shall be without findings as to facts, issues or conclusions of law and
shall be without a statement of the reasoning on which the award rests, but must be in adequate
form so that a judgment of a court may be entered thereupon. Judgment upon any arbitration award
hereunder may be entered in any court having jurisdiction thereof.

          (b) Confidentiality of Proceedings. Except as required by law, the Parties shall
hold, and shall cause their respective officers, directors, employees, agents and other
representatives to hold, the existence, content and result of mediation or arbitration in
confidence

-41-

 

in accordance with the provisions of this Section 11.7(b) and except as may be required in
order to enforce any award. Each of the Parties shall request that any mediator or arbitrator
comply with such confidentiality requirement.

     Section 11.8 Continuity of Service and Performance. Unless otherwise agreed in
writing, the Parties will continue to provide service and honor all other commitments under this
Agreement during the course of the dispute resolution procedures pursuant to this Article XI with
respect to all matters not subject to such dispute, controversy or claim.

     Section 11.9 Law Governing Arbitration Procedures. The interpretation of the
provisions of this Article XI, only insofar as they relate to the agreement to arbitrate and any
procedures pursuant thereto, shall be governed by the Arbitration Act, as amended, and other
applicable federal law. In all other respects, the interpretation of this Agreement shall be
governed as set forth in Section 12.4.

ARTICLE XII

MISCELLANEOUS

     Section 12.1 Complete Agreement. This Agreement, the Schedules hereto and the other
documents referred to herein shall constitute the entire agreement between the Parties with respect
to the subject matter hereof and shall supersede all previous negotiations, commitments and
writings with respect to such subject matter.

     Section 12.2 Other Agreements. Except as otherwise expressly provided herein, if
there shall be a conflict or an inconsistency between the provisions of this Agreement and the
provisions of the Distribution Agreement or any of the Other Agreements, the provisions of this
Agreement shall control over the inconsistent provisions of the Distribution Agreement or any of
the Other Agreements.

     Section 12.3 Expenses. RemainCo and SpinCo shall each be responsible for its expenses
incurred in connection with the Distribution.

     Section 12.4 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana (other than the laws regarding choice of laws and
conflicts of laws) as to all matters, including matters of validity, construction, effect,
performance and remedies; provided, however, that the Arbitration Act shall govern the matters
described in Article XI.

     Section 12.5 Notices. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person (including a nationally recognized delivery service) by facsimile,
electronic mail or other standard form of telecommunications (provided confirmation is delivered to
the recipient the next Business Day in the case of facsimile, electronic mail or other standard
form of telecommunications) or by registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

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	If to RemainCo:

	 	Hillenbrand Industries, Inc.
	 

	 	1069 State Route 46 East
	 

	 	Batesville, IN 47006-8835
	 

	 	c/o Corporate Secretary
	 
	 	 
	If to SpinCo:

	 	Batesville Holdings, Inc.
	 

	 	One Batesville Boulevard
	 

	 	Batesville, IN 47006-8835
	 

	 	c/o General Counsel

or to such other address as a Party may have furnished to the other Party by a notice in writing in
accordance with this Section 12.5.

     Section 12.6 Amendment and Modification. This Agreement may be amended, modified or
supplemented only by a written agreement signed by each of the Parties.

     Section 12.7 Successors and Assigns: No Third Party Beneficiaries. This Agreement is
made and shall be binding on and inure solely to the benefit of the RemainCo Group and the SpinCo
Group and their respective successors or permitted assigns and does not otherwise confer any rights
or defenses on any other Person. Neither RemainCo nor SpinCo may assign any of its rights or
obligations under this Agreement to another Person without the consent of the other Party to this
Agreement, which consent may be withheld for any reason or no reason. Subject to the foregoing,
(a) this Agreement and all the terms and provisions hereof shall be binding upon and inure to the
benefit of the Parties to this Agreement and their respective successors and permitted assigns, and
(b) each Party to this Agreement shall require any Person or Persons that, as a result of any
merger, purchase of assets, reorganization or other transaction, acquires or succeeds to all or
substantially all of its business or assets to assume its obligations under this Agreement pursuant
to a written assumption agreement in form and substance reasonably satisfactory to the other Party.

     Section 12.8 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     Section 12.9 Interpretation. The Article and Section headings contained in this
Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and
shall not in any way affect the meaning or interpretation of this Agreement.

     Section 12.10 Legal Enforceability. Each Party agrees that it shall not, directly or
indirectly, challenge the enforceability of this Agreement on any grounds or under any
circumstances. Without limiting the effect of the immediately preceding sentence, if any provision
of this Agreement is determined by a Governmental Authority or the arbitrators selected under
Section 11.4 to be prohibited or unenforceable in any jurisdiction, such provision shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
Each Party acknowledges that money damages would be an inadequate remedy for

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any breach of the provisions of this Agreement and agrees that the obligations of the Parties
hereunder shall be specifically enforceable.

     Section 12.11 Performance Standard. Each of RemainCo and SpinCo agrees to at all
times exercise good faith and fair dealing in the performance of its rights and obligations under
this Agreement and to cause the members of its respective Group to do likewise.

     Section 12.12 Authority. Each Party represents to the other that: (a) it has the
corporate or other requisite power and authority to execute, deliver and perform this Agreement;
(b) the execution, delivery and performance of this Agreement by it have been duly authorized by
all necessary corporate or other actions; (c) it has duly and validly executed and delivered this
Agreement; and (d) this Agreement is a legal, valid and binding obligation, enforceable against it
in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and general equity
principles.

     Section 12.13 Joint Authorship. This Agreement shall be treated as though it were
jointly drafted by RemainCo and SpinCo, and any ambiguities shall not be construed for or against
any Party on the basis of attributed authorship.

     Section 12.14 References; Interpretation.

          (a) Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in
the Distribution Agreement. 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. Unless the
context otherwise requires, 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 Agreement to Articles, Sections and Schedules shall be
deemed references to Articles and Sections of, and Schedules to, this 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.

          (b) The Parties agree that this Agreement is intended solely to determine the cash tax
obligations of the Parties and does not address the manner or method of tax accounting for any
item.

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

	 	 	 	 	 
	 	HILLENBRAND INDUSTRIES, INC.

 	 
	 	By:  	/s/
Patrick D. de Maynadier 	 
	 	 	Name:  	Patrick D. de Maynadier 	 
	 	 	Title:  	Senior Vice President, General Counsel and Secretary 	 
	 
	 	BATESVILLE HOLDINGS, INC.

 	 
	 	By:  	/s/
John R. Zerkle 	 
	 	 	Name:  	John R. Zerkle 	 
	 	 	Title:  	Senior Vice President, General Counsel and Secretary 	 

-45-

 

	 	 	 	 	 

Schedule 1.1(c)

Adjustments that Form Part of the Adjusted Allocation Method

The modifications that are part of the Adjusted Allocation Method are as follows:

1. Foreign Tax credit under sections 27 and 901 — SpinCo’s foreign tax credit shall be determined
on a theoretical separate standalone basis; provided, however, any foreign tax credit carry forward
allocated to SpinCo in excess of a carry forward from the theoretical separate stand-alone
calculation, both determined pursuant to Reg. § 1.1502-79(d)(2), shall reduce the amount of credit
utilized on a stand alone basis, but not below zero.

2. Research Credit under Section 41 — the consolidated research credit shall be allocated to the
subgroups based on each subgroup’s qualified research expenditures.

3. Capital Gains and Losses and Net Capital Loss Carryovers — are attributed to and allocated
between SpinCo and RemainCo pursuant to Treas. Reg. 1.1502-22.

4. Domestic Manufacturing Deduction under Section 199 — SpinCo’s domestic manufacturing deduction
shall be determined using consolidated taxable income with reasonable allocations of expenses to
SpinCo and RemainCo income.

5. ETI- SpinCo’s ETI shall be determined using consolidated taxable income with reasonable
allocations of expenses to SpinCo and RemainCo income.

6. Other Items — any other item calculated on a consolidated basis for purposes of the U.S.
federal income tax return shall be subject to similar adjustments with an intent to reflect
SpinCo’s separate company tax liability with any adjustment being intended to reflect a ratable
share of the benefit or detriment of participating in the consolidated federal return.

-1-exv10w5

 

EXHIBIT 10.5

EMPLOYMENT AGREEMENT

PREAMBLE

This Employment Agreement defines the essential terms and conditions of our employment relationship

with you. The subjects covered in this Agreement are vitally important to you and to the Company.

Thus, you should read the document carefully and ask any questions before signing the Agreement.

Given the importance of these matters to you and the Company, you are required to sign the

Agreement as a condition of employment.

          This EMPLOYMENT AGREEMENT, dated and effective this 31st day of March, 2008 is
entered into by and between Batesville Holdings, Inc. (to be renamed Hillenbrand, Inc.) (“Company”)
and Cynthia L. Lucchese (“Employee”).

WITNESSETH:

          WHEREAS, the Company is engaged in the design, manufacture, promotion and sale of funeral and
burial-related products and services throughout the United States and North America including, but
not limited to, burial caskets, cremation products and other memorial products.

          WHEREAS, the Company is willing to employ Employee in an executive or managerial position and
Employee desires to be employed by the Company in such capacity based upon the terms and conditions
set forth in this Agreement;

          WHEREAS, in the course of the employment contemplated under this Agreement, and as a
continuation of Employee’s past employment with the Company, if applicable, it will be necessary
for Employee to acquire and maintain knowledge of certain trade secrets and other confidential and
proprietary information regarding the Company as well as any of its parent, subsidiary and/or
affiliated entities (hereinafter jointly referred to as the “Companies”); and

          WHEREAS, the Company and Employee (collectively referred to as the “Parties”) acknowledge and
agree that the execution of this Agreement is necessary to memorialize the terms and conditions of
their employment relationship as well as safeguard against the unauthorized disclosure or use of
the Company’s confidential information and to otherwise preserve the goodwill and ongoing business
value of the Company;

          NOW THEREFORE, in consideration of Employee’s employment, the Company’s willingness to
disclose certain confidential and proprietary information to Employee and the mutual covenants
contained herein as well as other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:

	1.	 	Employment. As of the effective date of this Agreement, the Company agrees to employ
Employee and Employee agrees to serve as Senior Vice President and Chief Financial Officer.
Employee agrees to perform all duties and responsibilities traditionally assigned to,

 

 

	 	 	or falling within the normal responsibilities of, an individual employed in the above-referenced
position. Employee also agrees to perform any and all additional duties or responsibilities as
may be assigned by the Company in its sole discretion. The Parties acknowledge that both this
title and the underlying duties may change.
	 
	2.	 	Best Efforts and Duty of Loyalty. During the term of employment with the Company,
Employee covenants and agrees to exercise reasonable efforts to perform all assigned duties in
a diligent and professional manner and in the best interest of the Company. Employee agrees
to devote her full working time, attention, talents, skills and best efforts to further the
Company’s business and agrees not to take any action, or make any omission, that deprives the
Company of any business opportunities or otherwise act in a manner that conflicts with the
best interest of the Company or is otherwise detrimental to its business. Employee agrees not
to engage in any outside business activity, whether or not pursued for gain, profit or other
pecuniary advantage, without the express written consent of the Company. Employee shall act
at all times in accordance with the Company’s Code of Ethical Business Conducts, and all other
applicable policies which may exist or be adopted by the Company from time to time.

	3.	 	At-Will Employment. Subject to the terms and conditions set forth below, Employee
specifically acknowledges and accepts such employment on an “at-will” basis and agrees that
both Employee and the Company retain the right to terminate this relationship at any time,
with or without cause, for any reason not prohibited by applicable law upon notice as required
by this Agreement. Employee acknowledges that nothing in this Agreement is intended to
create, nor should be interpreted to create, an employment contract for any specified length
of time between the Company and Employee.

	4.	 	Compensation. For all services rendered by Employee on behalf of, or at the request
of, the Company, Employee shall be paid as follows:

	 	(a)	 	A base salary at the bi-weekly rate of Eleven Thousand, Five Hundred Thirty Eight
Dollars and Forty Six Cents ($11,538.46), less usual and ordinary deductions;
	 
	 	(b)	 	Incentive compensation, payable solely at the discretion of the Company, pursuant to
the Company’s existing Incentive Compensation Program or any other program as the Company
may establish in its sole discretion; and
	 
	 	(c)	 	Such additional compensation, benefits and perquisites as the Company may deem
appropriate.

	5.	 	Changes to Compensation. Notwithstanding anything contained herein to the contrary,
Employee acknowledges that the Company specifically reserves the right to make changes to
Employee’s compensation in its sole discretion including, but not limited to, modifying or
eliminating a compensation component. The Parties agree that such changes shall be deemed
effective immediately and a modification of this Agreement unless, within seven (7) days after
receiving notice of such change, Employee exercises her right to terminate this Agreement
without cause or for “Good Reason” as provided below in Paragraph No. 11. The Parties
anticipate that Employee’s compensation structure will be reviewed on an annual basis but
acknowledge that the Company shall have no obligation to do so.

2

 

	6.	 	Direct Deposit. As a condition of employment, and within thirty (30) days of the
effective date of this Agreement, Employee agrees to make all necessary arrangements to have
all sums paid pursuant to this Agreement direct deposited into one or more bank accounts as
designated by Employee.

	7.	 	Warranties and Indemnification. Employee warrants that she is not a party to any
contract, restrictive covenant, or other agreement purporting to limit or otherwise adversely
affecting her ability to secure employment with any third party. Alternatively, should any
such agreement exist, Employee warrants that the contemplated services to be performed
hereunder will not violate the terms and conditions of any such agreement. In either event,
Employee agrees to fully indemnify and hold the Company harmless from any and all claims
arising from, or involving the enforcement of, any such restrictive covenants or other
agreements.

	8.	 	Restricted Duties. Employee agrees not to disclose, or use for the benefit of the
Company, any confidential or proprietary information belonging to any predecessor employer(s)
that otherwise has not been made public and further acknowledges that the Company has
specifically instructed her not to disclose or use such confidential or proprietary
information. Based on her understanding of the anticipated duties and responsibilities
hereunder, Employee acknowledges that such duties and responsibilities will not compel the
disclosure or use of any such confidential and proprietary information.

	9.	 	Termination Without Cause. The Parties agree that either party may terminate this
employment relationship at any time, without cause, upon sixty (60) days’ advance written
notice or, if terminated by the Company, pay in lieu of notice (hereinafter referred to as
“notice pay”). In such event, Employee shall only be entitled to such compensation, benefits
and perquisites that have been paid or fully accrued as of the effective date of his
separation and as otherwise explicitly set forth in this Agreement. However, in no event
shall Employee be entitled to notice pay if Employee is eligible for and accepts severance
payments pursuant to the provisions of Paragraphs 16, 17 and 18 below.

	10. 	Termination With Cause. Employee’s employment may be terminated by the Company at
any time “for cause” without notice or prior warning. For purposes of this Agreement, “cause”
shall mean the Company’s good faith determination that Employee has:

	 	(a)	 	Acted with gross neglect or willful misconduct in the discharge of her duties and
responsibilities or refused to follow or comply with the lawful direction of the Company or
the terms and conditions of this Agreement, providing such refusal is not based primarily
on Employee’s good faith compliance with applicable legal or ethical standards;
	 
	 	(b)	 	Acquiesced or participated in any conduct that is dishonest, fraudulent, illegal (at
the felony level), unethical, involves moral turpitude or is otherwise illegal and involves
conduct that has the potential, in the Company’s reasonable opinion, to cause the Company,
its officers or its directors embarrassment or ridicule;
	 
	 	(c)	 	Violated a material requirement of any Company policy or procedure, specifically
including a violation of the Company’s Code of Ethics or Associate Policy Manual;

3

 

	 	(d)	 	Disclosed without proper authorization any trade secrets or other Confidential
Information (as defined herein);
	 
	 	(e)	 	Engaged in any act that, in the reasonable opinion of the Company, is contrary to its
best interests or would hold the Company, its officers or directors up to probable civil or
criminal liability, provided that, if Employee acts in good faith in compliance with
applicable legal or ethical standards, such actions shall not be grounds for termination
for cause; or
	 
	 	(f)	 	Engaged in such other conduct recognized at law as constituting cause.

Upon the occurrence or discovery of any event specified above, the Company shall have the right
to terminate Employee’s employment, effective immediately, by providing notice thereof to
Employee without further obligation to her other than accrued wages or other accrued wages,
deferred compensation or other accrued benefits of employment (collectively referred to herein
as “Accrued Obligations”), which shall be paid in accordance with the Company’s past practice
and applicable law. To the extent any violation of this Paragraph is capable of being promptly
cured by Employee (or cured within a reasonable period to the Company’s satisfaction), the
Company agrees to provide Employee with a reasonable opportunity to so cure such defect. Absent
written mutual agreement otherwise, the Parties agree in advance that it is not possible for
Employee to cure any violations of sub-paragraph (b) or (d) and, therefore, no opportunity for
cure need be provided in those circumstances.

	11. 	Termination by Employee for Good Reason. Employee may terminate this Agreement and
declare this Agreement to have been terminated “without cause” by the Company (and, therefore,
for “Good Reason”) upon the occurrence, without Employee’s consent, of any of the following
circumstances:

	 	(a)	 	The failure to elect or reelect Employee as Senior Vice President or other officer of
the Company (unless such failure is related in any way to the Company’s failure to separate
Batesville Casket Company, Inc. from Hill-Rom, Inc. or the Company’s decision to terminate
Employee for cause);
	 
	 	(b)	 	The failure of the Company to continue to provide Employee with office space, related
facilities and support personnel (including, but not limited to, administrative and
secretarial assistance) within the Company’s principal executive offices commensurate with
her responsibilities to, and position within, the Company;
	 
	 	(c)	 	A reduction by the Company in the amount of Employee’s base salary or the
discontinuation or reduction by the Company of Employee’s participation at the same level
of eligibility as compared to other peer employees in any incentive compensation,
additional compensation, benefits, policies or perquisites subject to Employee
understanding that such reduction(s) shall be permissible if the change applies in a
similar way to other peer level employees;
	 
	 	(d)	 	The relocation of the Company’s principal executive offices or Employee’s place of work
to a location requiring a change of more than fifty (50) miles in Employee’s daily commute;
or

4

 

	 	(e)	 	A failure by the Company to perform its obligations under this Employment Agreement
(other than inadvertent failures that are cured by the Company promptly upon notice from
the Employee).

	12. 	Termination Due to Death or Disability. In the event Employee dies or suffers a
disability (as defined herein) during the term of employment, this Agreement shall
automatically be terminated on the date of such death or disability without further obligation
on the part of the Company other than the payment of Accrued Obligations. For purposes of
this Agreement, Employee shall be considered to have suffered a “disability” upon a
determination that Employee cannot perform the essential functions of her position as a result
of a such a disability and the occurrence of one or more of the following events:

	 	(a)	 	Employee becomes eligible for or receives any benefits pursuant to any disability
insurance policy as a result of a determination under such policy that Employee is
permanently disabled;
	 
	 	(b)	 	Employee becomes eligible for or receives any disability benefits under the Social
Security Act; or
	 
	 	(c)	 	A good faith determination by the Company that Employee is and will likely remain
unable to perform the essential functions of her duties or responsibilities hereunder on a
full-time basis, with or without reasonable accommodation, as a result of any mental or
physical impairment.

Notwithstanding anything expressed or implied above to the contrary, the Company agrees to fully
comply with its obligations under the Family and Medical Leave Act of 1993 and the Americans
with Disabilities Act as well as any other applicable federal, state, or local law, regulation,
or ordinance governing the provision of leave to individuals with serious health conditions or
the protection of individuals with disabilities as well as the Company’s obligation to provide
reasonable accommodation thereunder.

	13. 	Exit Interview. Upon termination of Employee’s employment for any reason, Employee
agrees, if requested, to participate in an exit interview with the Company and reaffirm in
writing her post-employment obligations as set forth in this Agreement 

	14. 	Section 409A Notification. Employee acknowledges that she has been advised of the
American Jobs Creation Act of 2004, which added Section 409A to the Internal Revenue Code
(“Section 409A”), and significantly changed the taxation of nonqualified deferred compensation
plans and arrangements. Under proposed and final regulations as of the date of this
Agreement, Employee has been advised that her severance pay and other termination benefits may
be treated by the Internal Revenue Service as providing “nonqualified deferred compensation,”
and therefore subject to Section 409A. In that event, several provisions in Section 409A may
affect Employee’s receipt of severance compensation, including the timing thereof. These
include, but are not limited to, a provision which requires that distributions to “specified
employees” of public companies on account of separation from service may not be made earlier
than six (6) months after the effective date of such separation. If applicable, failure to
comply with Section 409A can lead to immediate

5

 

	 	 	taxation of such deferrals, with interest calculated at a penalty rate and a 20% penalty. As a
result of the requirements imposed by the American Jobs Creation Act of 2004, Employee agrees if
she is a “specified employee” at the time of her termination of employment and if payments in
connection with such termination of employment are subject to Section 409A and not otherwise
exempt, such payments (and other benefits to the extent applicable) due Employee at the time of
termination of employment shall not be paid until a date at least six (6) months after the
effective date of Employee’s termination of employment (“Employee’s Effective Termination
Date”). Notwithstanding any provision of this Agreement to the contrary, to the extent that any
payment under the terms of this Agreement would constitute an impermissible acceleration of
payments under Section 409A or any regulations or Treasury guidance promulgated thereunder, such
payments shall be made no earlier than at such times allowed under Section 409A. If any
provision of this Agreement (or of any award of compensation) would cause Employee to incur any
additional tax or interest under Section 409A or any regulations or Treasury guidance
promulgated thereunder, the Company or its successor may reform such provision; provided that it
will (i) maintain, to the maximum extent practicable, the original intent of the applicable
provision without violating the provisions of Section 409A and (ii) notify and consult with
Employee regarding such amendments or modifications prior to the effective date of any such
change.

	15.	Section 409A Acknowledgement. Employee acknowledges that, notwithstanding anything
contained herein to the contrary, both Parties shall be independently responsible for
assessing their own risks and liabilities under Section 409A that may be associated with any
payment made under the terms of this Agreement or any other arrangement which may be deemed to
trigger Section 409A. Further, the Parties agree that each shall independently bear
responsibility for any and all taxes, penalties or other tax obligations as may be imposed
upon them in their individual capacity as a matter of law. To the extent applicable, Employee
understands and agrees that she shall have the responsibility for, and she agrees to pay, any
and all appropriate income tax or other tax obligations for which she is individually
responsible and/or related to receipt of any benefits provided in this Agreement. Employee
agrees to fully indemnify and hold the Company harmless for any taxes, penalties, interest,
cost or attorneys’ fee assessed against or incurred by the Company on account of such benefits
having been provided to her or based on any alleged failure to withhold taxes or satisfy any
claimed obligation. Employee understands and acknowledges that neither the Company, nor any
of its employees, attorneys, or other representatives has provided or will provide her with
any legal or financial advice concerning taxes or any other matter, and that she has not
relied on any such advice in deciding whether to enter into this Agreement.

	16. 	Severance. In the event Employee’s employment is terminated by the Company without
cause (including by Employee for Good Reason), and subject to the normal terms and conditions
imposed by the Company as set forth herein and in the attached Separation and Release
Agreement, Employee shall be eligible to receive severance pay based upon her base salary at
the time of termination for a period determined in accordance with any guidelines as may be
established by the Company or for a period up to twelve (12) months (whichever is longer).

	17. 	Enhanced Severance. In the event the proposed separation of Batesville Casket
Company, Inc. from Hill-Rom,, Inc. does not occur by December 31, 2008 and if the parties do
not

6

 

	 	 	reach agreement on another position for Employee within Batesville Services, Inc. or its related
entities by January 31, 2009, Employee may elect to terminate this Agreement upon sixty (60)
days’ written notice. In the event Employee elects to terminate this Agreement pursuant to the
provisions of this paragraph, Employee shall be eligible to receive severance pay based upon her
base salary at the time of termination for period of up to twelve (12) months. Severance pay
benefits under this paragraph shall be in lieu of any severance under paragraph 16 and shall be
paid as follows: (i) if both the severance pay benefit is subject to Section 409A and if
Employee is a “specified employee” under Section 409A, the first six (6) months of severance
shall be paid in one lump sum (less applicable deductions and withholdings) on the day following
the date which is six (6) months following Employee’s Effective Termination Date and the
remainder of the benefits, if any, will be paid out in bi-weekly installments equivalent to the
Employee’s salary commencing on the next regularly scheduled payroll date, or (ii) for any
severance pay benefits not subject to clause (i), begin upon the next regularly scheduled
payroll following the earlier to occur of fifteen (15) days from the Company’s receipt of an
executed Separation and Release Agreement or the expiration of sixty (60) days after Employee’s
Effective Termination Date and shall be paid on the Company’s regularly scheduled pay dates;
provided, however, that if the before-stated sixty (60) day period ends in a calendar year
following the calendar year in which the sixty (60) day period commenced, then any benefits not
subject to clause (i) shall only begin on the next regularly scheduled payroll following the
expiration of sixty (60) days after the Employee’s Effective Termination Date. Excluding any
lump sum payment due as a result of the application of Section 409A (which shall be paid
regardless of reemployment), all other severance payments provided hereunder shall terminate
upon Employee’s reemployment
	 
	18.	 	Severance Payment Terms and Conditions. No severance pay shall be paid if Employee
is terminated for cause or if Employee voluntarily leaves the Company’s employ without “Good
Reason” (as defined above), or without fulfilling the conditions set out in Paragraph 17,
above. Any severance pay made payable under this Agreement shall be paid in lieu of, and not
in addition to, any other contractual, notice or statutory pay or other accrued compensation
obligation (excluding accrued wages and deferred compensation). Additionally, such severance
pay is contingent upon Employee fully complying with the restrictive covenants contained
herein and executing a Separation and Release Agreement in a form not substantially different
from that attached as Exhibit A. Further, the Company’s obligation to provide severance
hereunder shall be deemed null and void should Employee fail or refuse to execute and deliver
to the Company the Company’s then-standard Separation and Release Agreement (without
modification) within any time period as may be prescribed by law or, in absence thereof,
twenty-one (21) days after the Employee’s Effective Termination Date. Conditioned upon the
execution and delivery of the Separation and Release Agreement as set forth in the prior
sentence, Severance pay benefits shall be paid as follows: (i) in one lump sum equivalent to
six (6) months’ salary on the day following the date which is six (6) months following
Employee’s Effective Termination Date with any remainder to be paid in bi-weekly installments
equivalent to the Employee’s salary commencing on the next regularly scheduled payroll date,
if both the severance pay benefit is subject to Section 409A and if Employee is a “specified
employee” under Section 409A or (ii) for any severance pay benefits not subject to clause (i),
begin upon the next regularly scheduled payroll following the earlier to occur of fifteen (15)
days from the Company’s

7

 

	 	 	receipt of an executed Separation and Release Agreement or the
expiration of sixty (60) days
after Employee’s Effective Termination Date and shall be paid on the Company’s regularly
scheduled pay dates; provided, however, that if the before-stated sixty (60) day period ends in
a calendar year following the calendar year in which the sixty (60) day period commenced, then
any benefits not subject to clause (i) shall only begin on the next regularly scheduled payroll
following the expiration of sixty (60) days after the Employee’s Effective Termination Date.
Excluding any lump sum payment due as a result of the application of Section 409A (which shall
be paid regardless of reemployment), all other severance payments provided hereunder shall
terminate upon reemployment.

	19. 	Assignment of Rights.

	 	(a)	 	Copyrights. Employee agrees that all works of authorship fixed in any tangible
medium of expression by her during the term of this Agreement relating to the Company’s
business (“Works”), either solely or jointly with others, shall be and remain exclusively
the property of the Company. Each such Work created by Employee is a “work made for hire”
under the copyright law and the Company may file applications to register copyright in such
Works as author and copyright owner thereof. If, for any reason, a Work created by
Employee is excluded from the definition of a “work made for hire” under the copyright law,
then Employee does hereby assign, sell, and convey to the Company the entire rights, title,
and interests in and to such Work, including the copyright therein, to the Company.
Employee will execute any documents that the Company deems necessary in connection with the
assignment of such Work and copyright therein. Employee will take whatever steps and do
whatever acts the Company requests, including, but not limited to, placement of the
Company’s proper copyright notice on Works created by Employee to secure or aid in securing
copyright protection in such Works and will assist the Company or its nominees in filing
applications to register claims of copyright in such Works. The Company shall have free
and unlimited access at all times to all Works and all copies thereof and shall have the
right to claim and take possession on demand of such Works and copies.
	 
	 	(b)	 	Inventions. Employee agrees that all discoveries, concepts, and ideas, whether
patentable or not, including, but not limited to, apparatus, processes, methods,
compositions of matter, techniques, and formulae, as well as improvements thereof or
know-how related thereto, relating to any present or prospective product, process, or
service of the Company (“Inventions”) that Employee conceives or makes during the term of
this Agreement relating to the Company’s business, shall become and remain the exclusive
property of the Company, whether patentable or not, and Employee will, without royalty or
any other consideration:

	 	(i)	 	Inform the Company promptly and fully of such Inventions by written reports,
setting forth in detail the procedures employed and the results achieved;
	 
	 	(ii)	 	Assign to the Company all of her rights, title, and interests in and to such
Inventions, any applications for United States and foreign Letters Patent, any United
States and foreign Letters Patent, and any renewals thereof granted upon such
Inventions;

8

 

	 	(iii)	 	Assist the Company or its nominees, at the expense of the Company, to obtain
such United States and foreign Letters Patent for such Inventions as the Company may
elect; and
	 
	 	(iv)	 	Execute, acknowledge, and deliver to the Company at the Company’s expense such
written documents and instruments, and do such other acts, such as giving testimony in
support of her inventorship, as may be necessary in the opinion of the Company, to
obtain and maintain United States and foreign Letters Patent upon such Inventions and
to vest the entire rights and title thereto in the Company and to confirm the complete
ownership by the Company of such Inventions, patent applications, and patents.

	20.	 	Company Property. All records, files, drawings, documents, data in whatever form,
business equipment (including computers, PDAs, cell phones, etc.), and the like relating to,
or provided by, the Company shall be and remain the sole property of the Company. Upon
termination of employment, Employee shall immediately return to the Company all such items
without retention of any copies and without additional request by the Company. De minimis
items such as pay stubs, 401(k) plan summaries, employee bulletins, and the like are excluded
from this requirement.

	21.	 	Confidential Information. Employee acknowledges that the Company and its affiliated
entities (herein collectively referred to as “Companies”) possess certain trade secrets as
well as other confidential and proprietary information which they have acquired or will
acquire at great effort and expense. Such information may include, without limitation,
confidential information, whether in tangible or intangible form, regarding the Companies’
products and services, marketing strategies, business plans, operations, costs, current or
prospective customer information (including customer identities, contacts, requirements,
creditworthiness, preferences, and like matters), product concepts, designs, prototypes or
specifications, research and development efforts, technical data and know-how, sales
information, including pricing and other terms and conditions of sale, financial information,
internal procedures, techniques, forecasts, methods, trade information, trade secrets,
software programs, project requirements, inventions, trademarks, trade names, and similar
information regarding the Companies’ business(es) (collectively referred to herein as
“Confidential Information”). Employee further acknowledges that, as a result of her
employment with the Company, Employee will have access to, will become acquainted with, and/or
may help develop, such Confidential Information. Confidential Information shall not include
information readily available in the public so long as such information was not made available
through fault of Employee or wrong doing by any other individual.

	22.	 	Restricted Use of Confidential Information. Employee agrees that all Confidential
Information is and shall remain the sole and exclusive property of the Company and/or its
affiliated entities. Except as may be expressly authorized by the Company in writing,
Employee agrees not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party while employed by the Company and for as long
thereafter as such information remains confidential (or as limited by applicable law).
Further, Employee agrees to use such Confidential Information only in the course of Employee’s
duties in furtherance of the Company’s business and agrees not to make use of

9

 

	 	any such Confidential Information for Employee’s own purposes or for the benefit of any other
entity or person.
	 
	23. 	Acknowledged Need for Limited Restrictive Covenants. Employee acknowledges that the
Companies have spent and will continue to expend substantial amounts of time, money and effort
to develop their business strategies, Confidential Information, customer identities and
relationships, goodwill and employee relationships, and that Employee will benefit from these
efforts. Further, Employee acknowledges the inevitable use of, or near-certain influence by
her knowledge of, the Confidential Information disclosed to Employee during the course of
employment if allowed to compete against the Company in an unrestricted manner and that such
use would be unfair and extremely detrimental to the Company. Accordingly, based on these
legitimate business reasons, Employee acknowledges each of the Companies’ need to protect
their legitimate business interests by reasonably restricting Employee’s ability to compete
with the Company on a limited basis.

	24. 	Non-Solicitation. During Employee’s employment and for a period of twenty-four (24)
months thereafter, Employee agrees not to directly or indirectly engage in the following
prohibited conduct:

	 	(a)	 	Solicit, offer products or services to, or accept orders for, any Competitive Products
or otherwise transact any competitive business with, any customer or entity with whom
Employee had contact or transacted any business on behalf of the Company (or any Affiliate
thereof) during the eighteen (18) month period preceding Employee’s date of separation or
about whom Employee possessed, or had access to, confidential and proprietary information;
	 
	 	(b)	 	Attempt to entice or otherwise cause any third party to withdraw, curtail or cease
doing business with the Company (or any Affiliate thereof), specifically including
customers, vendors, independent contractors and other third party entities;
	 
	 	(c)	 	Disclose to any person or entity the identities, contacts or preferences of any
customers of the Company (or any Affiliate thereof), or the identity of any other persons
or entities having business dealings with the Company (or any Affiliate thereof);
	 
	 	(d)	 	Induce any individual who has been employed by or had provided services to the Company
(or any Affiliate thereof) within the six (6) month period immediately preceding the
effective date of Employee’s separation to terminate such relationship with the Company (or
any Affiliate thereof);
	 
	 	(e)	 	Assist, coordinate or otherwise offer employment to, accept employment inquiries from,
or employ any individual who is or had been employed by the Company (or any Affiliate
thereof) at any time within the six (6) month period immediately preceding such offer, or
inquiry;
	 
	 	(f)	 	Communicate or indicate in any way to any customer of the Company (or any Affiliate
thereof), prior to formal separation from the Company, any interest, desire, plan, or
decision to separate from the Company; or

10

 

	 	(g)	 	Otherwise attempt to directly or indirectly interfere with the Company’s business, the
business of any of the Companies or their relationship with their employees, consultants,
independent contractors or customers.

	25. 	Limited Non-Compete. For the above-stated reasons, and as a condition of employment
to the fullest extent permitted by law, Employee agrees during the Relevant Non-Compete Period
not to directly or indirectly engage in the following competitive activities:

	 	(a)	 	Employee shall not have any ownership interest in, work for, advise, consult, or have
any business connection or business or employment relationship in any competitive capacity
with any Competitor unless Employee provides written notice to the Company of such
relationship prior to entering into such relationship and, further, provides sufficient
written assurances to the Company’s satisfaction that such relationship will not,
jeopardize the Company’s legitimate interests or otherwise violate the terms of this
Agreement;
	 
	 	(b)	 	Employee shall not engage in any research, development, production, sale or
distribution of any Competitive Products, specifically including any products or services
relating to those for which Employee had responsibility for the eighteen (18) month period
preceding Employee’s date of separation;
	 
	 	(c)	 	Employee shall not market, sell, or otherwise offer or provide any Competitive Products
within her Geographic Territory (if applicable) or Assigned Customer Base, specifically
including any products or services relating to those for which Employee had responsibility
for the eighteen (18) month period preceding Employee’s date of separation; and
	 
	 	(d)	 	Employee shall not distribute, market, sell or otherwise offer or provide any
Competitive Products to any customer of the Company with whom Employee had contact or for
which Employee had responsibility at any time during the eighteen (18) month period
preceding Employee’s date of separation

	26. 	Non-Compete Definitions. For purposes of this Agreement, the Parties agree that the
following terms shall apply:

	 	(a)	 	“Affiliate” includes any parent, subsidiary, joint venture, sister company, or other
entity controlled, owned, managed or otherwise associated with the Company;
	 
	 	(b)	 	“Assigned Customer Base” shall include all accounts or customers formally assigned to
Employee within a given territory or geographical area or contacted by her at any time
during the eighteen (18) month period preceding Employee’s date of separation;
	 
	 	(c)	 	“Competitive Products” shall include any product or service that directly or indirectly
competes with, is substantially similar to, or serves as a reasonable substitute for, any
product or service in research, development or design, or manufactured, produced, sold or
distributed by the Company;

11

 

	 	(d)	 	“Competitor” shall include any person or entity that offers or is actively planning to
offer any Competitive Products and may include (but not be limited to) any entity
identified on the Company’s Illustrative Competitor List, attached hereto as Exhibit B,
which shall be amended from time to time to reflect changes in the Company’s business and
competitive environment (updated competitor lists will be provided to Employee upon
reasonable request);
	 
	 	(e)	 	“Geographic Territory” shall include any territory formally assigned to Employee as
well as all territories in which Employee has provided any services, sold any products or
otherwise had responsibility at any time during the twenty-four (24) month period preceding
Employee’s date of separation;
	 
	 	(f)	 	“Relevant Non-Compete Period” shall include the period of Employee’s employment with
the Company as well as a period of twenty-four (24) months after such employment is
terminated, regardless of the reason for such termination provided, however, that this
period shall be reduced to the greater of (i) twelve (12) months or (ii) the total length
of Employee’s employment with the Company, including employment with any parent, subsidiary
or affiliated entity, if such employment is less than twenty-four (24) months;
	 
	 	(g)	 	“Directly or indirectly” shall be construed such that the foregoing restrictions shall
apply equally to Employee whether performed individually or as a partner, shareholder,
officer, director, manager, employee, salesperson, independent contractor, broker, agent,
or consultant for any other individual, partnership, firm, corporation, company, or other
entity engaged in such conduct

	27.	 	Employment by National or Regional Accounts. Employee acknowledges that she will
have acquired and/or have access to confidential and proprietary information regarding the
Company’s business dealings with, and business strategies concerning, its national or regional
accounts (a/k/a Key Accounts, Prime Accounts, and National Accounts). Employee further
acknowledges that such knowledge would provide her with a competitive advantage if used
against the Company or used against a competitor of a national or regional account.
Accordingly, as a term and condition of employment, Employee agrees that the foregoing
restrictive covenants shall apply with equal force to restrict her from seeking any employment
or any other business relationship with such national or regional account, whether or not
serviced by Employee, for the duration of her Relevant Non-Compete Period. Employee agrees
that such accounts shall include, but not be limited to, the following:

	 	•	 	Arbor Memorial Services
	 
	 	•	 	Buckner Management Services
	 
	 	•	 	Carriage Funeral Holdings, Inc.
	 
	 	•	 	Citadel Funeral Service, Inc.
(Wisconsin Vault Company)

	 	•	 	Brooke Funeral Services Co., LLC (Brooke Franchise Corp.)
	 
	 	•	 	Calvert Group
	 
	 	•	 	Celebris Memorial Services, Inc.
(Urel Bourgie)
	 
	 	•	 	Concord Family Services, Inc.

12

 

	 	•	 	Family Choices
	 
	 	•	 	Keystone Group Holdings, Inc.
	 
	 	•	 	Memory Gardens Management Corporation
	 
	 	•	 	Northstar Memorial Group
	 
	 	•	 	Pioneer Enterprises, Inc.
	 
	 	•	 	Security National Financial Corporation
	 
	 	•	 	Stewart Enterprises, Inc.
	 
	 	•	 	Vertin Companies Family Funeral Homes
	 
	 	•	 	Wilson Financial Group, Inc.

	 	•	 	Gibralter Mausoleum Company (A division of Matthews International)
	 
	 	•	 	Legacy Funeral Group (Legacy Funeral Holdings, Inc.; Legacy
Funeral Holdings of Louisiana, LLC; Legacy Funeral Holdings of
Mississippi, LLC; Legacy Funeral Properties, Inc.)
	 
	 	•	 	Newcomer Funeral Homes and Crematories
	 
	 	•	 	Paxus Services, Inc.(Paxus Services (Kansas), Inc.; Paxus
Services (Tennessee), Inc.; Paxus Services (Lousiana), Inc.; Paxus
Services (Texas), Inc.; Paxus Services (Oklahoma), Inc.)
	 
	 	•	 	Rollings Funeral Service, Inc.
	 
	 	•	 	Service Corporation International
	 
	 	•	 	StoneMor Partners, L.P.
	 
	 	•	 	Washburn-McReavy Funeral Chapels

	28.	 	Consent to Reasonableness. In light of the above-referenced concerns, including
Employee’s knowledge of and access to the Companies’ Confidential Information, Employee
acknowledges that the terms of the foregoing restrictive covenants are reasonable and
necessary to protect the Company’s legitimate business interests and will not unreasonably
interfere with Employee’s ability to obtain alternate employment. As such, Employee hereby
agrees that such restrictions are valid and enforceable, and affirmatively waives any argument
or defense to the contrary. Employee acknowledges that this limited non-competition provision
is not an attempt to prevent Employee from obtaining other employment in violation of IC §
22-5-3-1 or any other similar statute. Employee further acknowledges that the Company may
need to take action, including litigation, to enforce this limited non-competition provision,
which efforts the Parties stipulate shall not be deemed an attempt to prevent Employee from
obtaining other employment.

	29.	 	Survival of Restrictive Covenants. Employee acknowledges that the above restrictive
covenants shall survive the termination of this Agreement and the termination of Employee’s
employment for any reason. Employee further acknowledges that any alleged breach by the
Company of any contractual, statutory or other obligation shall not excuse or terminate the
obligations hereunder or otherwise preclude the Company from seeking injunctive or other

13

 

	 	 	relief. Rather, Employee acknowledges that such obligations are independent and separate covenants
undertaken by Employee for the benefit of the Company.
	 
	30.	 	Effect of Transfer. Subject to the provisions of Paragraph 11 above, Employee agrees
that this Agreement shall continue in full force and effect notwithstanding any change in job
duties, job titles or reporting responsibilities. Employee further acknowledges that the
above restrictive covenants shall survive, and be extended to cover, the transfer of Employee
from the Company to its parent, subsidiary, sister corporation or any other affiliated entity
(hereinafter collectively referred to as an “Affiliate”) or any subsequent transfer(s) among
them. Specifically, in the event of Employee’s temporary or permanent transfer to an
Affiliate, she agrees that the foregoing restrictive covenants shall remain in force so as to
continue to protect such company for the duration of the non-compete period, measured from her
effective date of transfer to an Affiliate. Additionally, Employee acknowledges that this
Agreement shall be deemed to have been automatically assigned to the Affiliate as of her
effective date of transfer such that the above-referenced restrictive covenants (as well as
all other terms and conditions contained herein) shall be construed thereafter to protect the
legitimate business interests and goodwill of the Affiliate as if Employee and the Affiliate
had independently entered into this Agreement. Employee’s acceptance of her transfer to, and
subsequent employment by, the Affiliate shall serve as consideration for (as well as be deemed
as evidence of her consent to) the assignment of this Agreement to the Affiliate as well as
the extension of such restrictive covenants to the Affiliate. Employee agrees that this
provision shall apply with equal force to any subsequent transfers of Employee from one
Affiliate to another Affiliate.

	31.	 	Post-Termination Notification. For the duration of her Relevant Non-compete Period
or other restrictive covenant period, which ever is longer, Employee agrees to promptly notify
the Company no later than five (5) business days of her acceptance of any employment or
consulting engagement. Such notice shall include sufficient information to ensure Employee
compliance with her non-compete obligations and must include at a minimum the following
information: (i) the name of the employer or entity for which she is providing any consulting
services; (ii) a description of her intended duties as well as (iii) the anticipated start
date. Such information is required to ensure Employee’s compliance with her non-compete
obligations as well as all other applicable restrictive covenants. Such notice shall be
provided in writing to the Office of Vice President and General Counsel of the Company at One
Batesville Boulevard, Batesville, Indiana 47006. Failure to timely provide such notice shall
be deemed a material breach of this Agreement and entitle the Company to return of any
severance paid to Employee plus attorneys’ fees. Employee further consents to the Company’s
notification to any new employer of Employee’s rights and obligations under this Agreement.

	32.	 	Scope of Restrictions. If the scope of any restriction contained in any preceding
paragraphs of this Agreement is deemed too broad to permit enforcement of such restriction to
its fullest extent, then such restriction shall be enforced to the maximum extent permitted by
law, and Employee hereby consents and agrees that such scope may be judicially modified
accordingly in any proceeding brought to enforce such restriction.

14

 

	33.	 	Specific Enforcement/Injunctive Relief. Employee agrees that it would be difficult
to measure any damages to the Company from a breach of the above-referenced restrictive
covenants, but acknowledges that the potential for such damages would be great, incalculable
and irremediable, and that monetary damages alone would be an inadequate remedy. Accordingly,
Employee agrees that the Company shall be entitled to immediate injunctive relief against such
breach, or threatened breach, in any court having jurisdiction. In addition, if Employee
violates any such restrictive covenant, Employee agrees that the period of such violation
shall be added to the term of the restriction. In determining the period of any violation,
the Parties stipulate that in any calendar month in which Employee engages in any activity in
violation of such provisions, Employee shall be deemed to have violated such provision for the
entire month, and that month shall be added to the duration of the non-competition provision.
Employee acknowledges that the remedies described above shall not be the exclusive remedies,
and the Company may seek any other remedy available to it either in law or in equity,
including, by way of example only, statutory remedies for misappropriation of trade secrets,
and including the recovery of compensatory or punitive damages. Employee further agrees that
the Company shall be entitled to an award of all costs and attorneys’ fees incurred by it in
any attempt to enforce the terms of this Agreement.

	34.	 	Publicly Traded Stock. The Parties agree that nothing contained in this Agreement
shall be construed to prohibit Employee from investing her personal assets in any stock or
corporate security traded or quoted on a national securities exchange or national market
system provided, however, such investments do not require any services on the part of Employee
in the operation or the affairs of the business or otherwise violate the Company’s Code of
Ethics.

	35.	 	Notice of Claim and Contractual Limitations Period. Employee acknowledges the
Company’s need for prompt notice, investigation, and resolution of any claims that may be
filed against it due to the number of relationships it has with employees and others (and due
to the turnover among such individuals with knowledge relevant to any underlying claim).
Accordingly, Employee agrees prior to initiating any litigation of any type (including, but
not limited to, employment discrimination litigation, wage litigation, defamation, or any
other claim) to notify the Company, within One Hundred and Eighty (180) days after the claim
accrued, by sending a certified letter addressed to the Company’s General Counsel setting
forth: (i) claimant’s name, address, and phone; (ii) the name of any attorney representing
Employee; (iii) the nature of the claim; (iv) the date the claim arose; and (v) the relief
requested. This provision is in addition to any other notice and exhaustion requirements that
might apply. For any dispute or claim of any type against the Company (including but not
limited to employment discrimination litigation, wage litigation, defamation, or any other
claim), Employee must commence legal action within the shorter of one (1) year of accrual of
the cause of action or such shorter period that may be specified by law.

	36.	 	Non-Jury Trials. Notwithstanding any right to a jury trial for any claims, Employee
waives any such right to a jury trial, and agrees that any claim of any type (including but
not limited to employment discrimination litigation, wage litigation, defamation, or any other
claim) lodged in any court will be tried, if at all, without a jury.

15

 

	37.	 	Choice of Forum. Employee acknowledges that the Company is primarily based in
Indiana, and Employee understands and acknowledges the Company’s desire and need to defend any
litigation against it in Indiana. Accordingly, the Parties agree that any claim of any type
brought by Employee against the Company or any of its employees or agents must be maintained
only in a court sitting in Marion County, Indiana, or Ripley County, Indiana, or, if a federal
court, the Southern District of Indiana, Indianapolis Division. Employee further understands
and acknowledges that in the event the Company initiates litigation against Employee, the
Company may need to prosecute such litigation in such state where the Employee is subject to
personal jurisdiction. Accordingly, for purposes of enforcement of this Agreement, Employee
specifically consents to personal jurisdiction in the State of Indiana as well as any state in
which resides a customer assigned to the Employee. Furthermore, Employee consents to appear,
upon Company’s request and at Employee’s own cost, for deposition, hearing, trial, or other
court proceeding in Indiana or in any state in which resides a customer assigned to the
Employee.

	38.	 	Choice of Law. This Agreement shall be deemed to have been made within the County of
Ripley, State of Indiana and shall be interpreted and construed in accordance with the laws of
the State of Indiana. Any and all matters of dispute of any nature whatsoever arising out of,
or in any way connected with the interpretation of this Agreement, any disputes arising out of
the Agreement or the employment relationship between the Parties hereto, shall be governed by,
construed by and enforced in accordance with the laws of the State of Indiana without regard
to any applicable state’s choice of law provisions.

	39.	 	Titles. Titles are used for the purpose of convenience in this Agreement and shall
be ignored in any construction of it.

	40.	 	Severability. The Parties agree that each and every paragraph, sentence, clause,
term and provision of this Agreement is severable and that, in the event any portion of this
Agreement is adjudged to be invalid or unenforceable, the remaining portions thereof shall
remain in effect and be enforced to the fullest extent permitted by law. Further, should any
particular clause, covenant, or provision of this Agreement be held unreasonable or contrary
to public policy for any reason, the Parties acknowledge and agree that such covenant,
provision or clause shall automatically be deemed modified such that the contested covenant,
provision or clause will have the closest effect permitted by applicable law to the original
form and shall be given effect and enforced as so modified to whatever extent would be
reasonable and enforceable under applicable law.

	41.	 	Assignment-Notices. The rights and obligations of the Company under this Agreement
shall inure to its benefit, as well as the benefit of its parent, subsidiary, successor and
affiliated entities, and shall be binding upon the successors and assigns of the Company.
This Agreement, being personal to Employee, cannot be assigned by Employee, but her personal
representative shall be bound by all its terms and conditions. Any notice required hereunder
shall be sufficient if in writing and mailed to the last known residence of Employee or to the
Company at its principal office with a copy mailed to the Office of the General Counsel.

	42.	 	Amendments and Modifications. Except as specifically provided herein, no
modification, amendment, extension or waiver of this Agreement or any provision hereof shall
be binding

16

 

	 	 	upon the Company or Employee unless in writing and signed by both Parties. The waiver by the
Company or Employee of a breach of any provision of this Agreement shall not be construed as a
waiver of any subsequent breach. Nothing in this Agreement shall be construed as a limitation
upon the Company’s right to modify or amend any of its manuals or policies in its sole
discretion and any such modification or amendment which pertains to matters addressed herein
shall be deemed to be incorporated herein and made a part of this Agreement.
	 
	43.	 	Outside Representations. Employee represents and acknowledges that in signing this
Agreement she does not rely, and has not relied, upon any representation or statement made by
the Company or by any of the Company’s employees, officers, agents, stockholders, directors or
attorneys with regard to the subject matter, basis or effect of this Agreement other than
those specifically contained herein.

	44.	 	Voluntary and Knowing Execution. Employee acknowledges that she has been offered a
reasonable amount of time within which to consider and review this Agreement; that she has
carefully read and fully understands all of the provisions of this Agreement; and that she has
entered into this Agreement knowingly and voluntarily.

	45.	 	Entire Agreement. This Agreement constitutes the entire employment agreement between
the Parties hereto concerning the subject matter hereof and shall supersede all prior and
contemporaneous agreements between the Parties in connection with the subject matter of this
Agreement. Any pre-existing Employment Agreements shall be deemed null and void. Nothing in
this Agreement, however, shall affect any separately-executed written agreement addressing any
other issues (e. g., the Inventions, Improvements, Copyrights and Trade Secrets Agreement,
etc.).

          IN WITNESS WHEREOF, the Parties have signed this Agreement effective as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	“EMPLOYEE”	 	 	 	BATESVILLE HOLDINGS, INC.	 	 
	 	 	 	 	 	 	(to be renamed Hillenbrand, Inc.)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Printed:

	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 	 	 

	 	 

CAUTION: READ BEFORE SIGNING

17

 

Exhibit A

SAMPLE SEPARATION AND RELEASE AGREEMENT

          THIS SEPARATION and RELEASE AGREEMENT (“Agreement”) is entered into by and between EMPLOYEE’S
FULL NAME(“Employee”) and Company Name (together with its subsidiaries and affiliates, the
“Company”). To wit, the Parties agree as follows:

	1.	 	Employee’s active employment by the Company shall terminate effective [date of
termination](Employee’s “Effective Termination Date”). Except as specifically provided by
this Agreement, or in any other non-employment agreement that may exist between the Company
and Employee, Employee agrees that the Company shall have no other obligations or liabilities
to her following her Effective Termination Date and that her receipt of the Severance Benefits
provided herein shall constitute a complete settlement, satisfaction and waiver of any and all
claims she may have against the Company.

	2.	 	Employee further submits, and the Company hereby accepts, her resignation as an employee,
officer and director, as of her Effective Termination Date for any position she may hold. The
Parties agree that this resignation shall apply to all such positions Employee may hold with
the Company or any parent, subsidiary or affiliated entity thereof. Employee agrees to
execute any documents needed to effectuate such resignation. Employee further agrees to take
whatever steps are necessary to facilitate and ensure the smooth transition of her duties and
responsibilities to others.

	3.	 	Employee acknowledges that she has been advised of the American Jobs Creation Act of 2004,
which added Section 409A (“Section 409A”) to the Internal Revenue Code, and significantly
changed the taxation of nonqualified deferred compensation plans and arrangements. Under
proposed and final regulations as of the date of this Agreement, Employee has been advised
that her severance pay may be treated by the Internal Revenue Service as providing
“nonqualified deferred compensation,” and therefore subject to Section 409A. In that event,
several provisions in Section 409A may affect Employee’s receipt of severance compensation.
These include, but are not limited to, a provision which requires that distributions to
“specified employees” of public companies on account of separation from service may not be
made earlier than six (6) months after the effective date of such separation. If applicable,
failure to comply with Section 409A can lead to immediate taxation of deferrals, with interest
calculated at a penalty rate and a 20% penalty. As a result of the requirements imposed by
the American Jobs Creation Act of 2004, Employee agrees if she is a “specified employee” at
the time of her termination of employment and if severance payments are covered as
“non-qualified deferred compensation” or otherwise not exempt, the severance pay benefits
shall not be paid until a date at least six (6) months after Employee’s Effective Termination
Date from Company, as more fully explained by Paragraph 4, below.

	4.	 	In consideration of the promises contained in this Agreement and contingent upon Employee’s
compliance with such promises, the Company agrees to provide Employee the following:

 

 

	 	(a)	 	Severance pay, in lieu of, and not in addition to any other contractual, notice or
statutory pay obligations (other than accrued wages and deferred compensation) in the
maximum total amount of [                    ] Dollars and [                    ] Cents ($                    ), less
applicable deductions or other set offs, payable as follows:

[For 409A Severance Pay for Specified Employees Only]

	 	(i)	 	A lump payment in the gross amount of [insert amount equal to 6 months pay]
[                    ] Dollars and [                    ] Cents ($                    ) payable the day following the
sixth (6tth) month anniversary of Employee’s Effective Termination Date,
with any remaining amount to be paid in bi-weekly installments equivalent to Employee’s
base salary (i.e.                                          Dollars and                     Cents ($        
            ), less
applicable deductions or other setoffs) commencing upon the next regularly scheduled
payroll date after the payment of the lump sum for a period of up to
           (     ) weeks
or until the Employee becomes reemployed, whichever comes first.

[For Non- 409A Severance Pay or 409A Severance Pay for Non-Specified Employees Only]

	 	(i)	 	Commencing on the next regularly scheduled payroll immediately following the
earlier to occur of fifteen (15) days from the Company’s receipt of and Executed
Separation and Release Agreement or the expiration of sixty (60) days after Employee’s
Effective Termination Date, Employee shall be paid severance equivalent to his
bi-weekly base salary (i.e. [                    ] Dollars and [                    ] Cents
($[                    ]), less applicable deductions or other set-offs), for a period up to
[weeks] ([     ]) weeks following Employee’s Effective Termination Date or until Employee
becomes reemployed, whichever occurs first; provided, however, that if the
before-stated sixty (60) day period ends in a calendar year following the calendar year
in which the sixty (60) day period commenced, then this severance pay shall only begin
on the next regularly scheduled payroll following the expiration of sixty (60) days
after the Employee’s Effective Termination Date.

	 	(b)	 	Payment for any earned but unused vacation as of Employee’s Effective Termination Date,
less applicable deductions permitted or required by law payable in one lump sum within
fifteen (15) days after the Employee’s Effective Termination Date; and
	 
	 	(c)	 	Group Life Insurance coverage until the above-referenced Severance Pay terminates.

	5.	 	Except as may be required by Section 409A, the above Severance Pay shall be paid in
accordance with the Company’s standard payroll practices (e.g. bi-weekly). The Parties agree
that the initial two (2) weeks of the foregoing Severance Pay shall be allocated as
consideration provided to Employee in exchange for her execution of a release in compliance
with the Older Workers Benefit Protection Act. The balance of the severance benefits and
other obligations undertaken by the Company pursuant to this Agreement shall be allocated as
consideration for all other promises and obligations undertaken by Employee, including
execution of a general release of claims.

 

 

	6.	 	The Company further agrees to provide Employee with limited out-placement counseling with a
company of its choice provided that Employee participates in such counseling immediately
following termination of employment. Notwithstanding anything in this Section 6 to the
contrary, the out-placement counseling shall not be provided after the last day of the second
calendar year following the calendar year in which termination of employment occurs.

	7.	 	As of her Effective Termination Date, Employee will become ineligible to participate in the
Company’s health insurance program and continuation of coverage requirements under COBRA (if
any) will be triggered at that time. However, as additional consideration for the promises
and obligations contained herein (and except as may be prohibited by law), the Company agrees
to continue to pay the employer’s share of such coverage as provided under the health care
program selected by Employee as of her Effective Termination Date, subject to any approved
changes in coverage based on a qualified election, until the above-referenced Severance Pay
terminates, Employee accepts other employment or Employee becomes eligible for alternative
healthcare coverage, which ever comes first, provided Employee (i) timely completes the
applicable election of coverage forms and (ii) continues to pay the employee portion of the
applicable premium(s). Thereafter, if applicable, coverage will be made available to Employee
at her sole expense (i.e., Employee will be responsible for the full COBRA premium)
for the remaining months of the COBRA coverage period made available pursuant to applicable
law. In the event Employee is deemed to be a highly compensated employee under applicable
law, Employee acknowledges that the value of the benefits provided hereunder may be subject to
taxation. The medical insurance provided herein does not include any disability coverage.

	8.	 	Should Employee become employed before the above-referenced Severance Benefits are exhausted
or terminated, Employee agrees to so notify the Company in writing within five (5) business
days of Employee’s acceptance of such employment, providing the name of such employer (or
entity to whom Employee may be providing consulting services), her intended duties as well as
the anticipated start date. Such information is required to ensure Employee’s compliance with
her non-compete obligations as well as all other applicable restrictive covenants. This
notice will also serve to trigger the Company’s right to terminate the above-referenced
severance pay benefits (specifically excluding any lump sum payment due as a result of the
application of Section 409A) as well as all Company-paid or Company—provided benefits
consistent with the above paragraphs. Failure to timely provide such notice shall be deemed a
material breach of this Agreement entitling the Company to recover as damages the value of all
benefits provided to Employee hereunder plus attorneys fees.

	9.	 	Employee agrees to fully indemnify and hold the Company harmless for any taxes, penalties,
interest, cost or attorneys’ fee assessed against or incurred by the Company on account of
such benefits having been provided to her or based on any alleged failure to withhold taxes or
satisfy any claimed obligation. Employee understands and acknowledges that neither the
Company, nor any of its employees, attorneys, or other representatives has provided her with
any legal or financial advice concerning taxes or any other matter, and that she has not
relied on any such advice in deciding whether to enter into this Agreement. To the extent
applicable, Employee understands and agrees that she shall have the responsibility for, and
she agrees to pay, any and all appropriate income tax or other tax obligations for which she
is

 

 

	 	 	individually responsible and/or related to receipt of any benefits provided in this Agreement
not subject to federal withholding obligations

	10. 	In exchange for the foregoing Severance Benefits, EMPLOYEE FULL NAME on behalf of
himself/herself, her heirs, representatives, agents and assigns hereby RELEASES, INDEMNIFIES,
HOLDS HARMLESS, and FOREVER DISCHARGES (i) Company Name (ii) its parent, subsidiary or
affiliated entities, (iii) all of their present or former directors, officers, employees,
shareholders, and agents, as well as, (iv) all predecessors, successors and assigns thereof
from any and all actions, charges, claims, demands, damages or liabilities of any kind or
character whatsoever, known or unknown, which Employee now has or may have had through the
effective date of this Agreement.

	11. 	Without limiting the generality of the foregoing release, it shall include: (i) all claims
or potential claims arising under any federal, state or local laws relating to the Parties’
employment relationship, including any claims Employee may have under the Civil Rights Acts of
1866 and 1964, as amended, 42 U.S.C. §§ 1981 and 2000(e) et seq.; the Civil
Rights Act of 1991; the Age Discrimination in Employment Act, as amended, 29 U.S.C. §§ 621
et seq.; the Americans with Disabilities Act of 1990, as amended, 42 U.S.C §§
12,101 et seq.; the Fair Labor Standards Act 29 U.S.C. §§ 201 et
seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101,
et seq.; the Employee Retirement Income Security Act, 29 U.S.C. §§ 1101
et seq.; the Sarbanes-Oxley Act of 2002, specifically including the Corporate
and Criminal Fraud Accountability Act, 18 USC §1514A et seq.; and any other
federal, state or local law governing the Parties’ employment relationship; (ii) any claims on
account of, arising out of or in any way connected with Employee’s employment with the Company
or leaving of that employment; (iii) any claims alleged or which could have been alleged in
any charge or complaint against the Company; (iv) any claims relating to the conduct of any
employee, officer, director, agent or other representative of the Company; (v) any claims of
discrimination, harassment or retaliation on any basis; (vi) any claims arising from any legal
restrictions on an employer’s right to separate its employees; (vii) any claims for personal
injury, compensatory or punitive damages or other forms of relief; and (viii) all other causes
of action sounding in contract, tort or other common law basis, including (a) the breach of
any alleged oral or written contract, (b) negligent or intentional misrepresentations, (c)
wrongful discharge, (d) just cause dismissal, (e) defamation, (f) interference with contract
or business relationship or (g) negligent or intentional infliction of emotional distress.

	12. 	Employee further agrees and covenants not to sue the Company or any entity or individual
subject to the foregoing General Release with respect to any claims, demands, liabilities or
obligations release by this Agreement provided, however, that nothing contained in this
Agreement shall:

	 	(a)	 	prevent Employee from filing an administrative charge with the Equal Employment Opportunity
Commission or any other federal, state or local agency; or
	 
	 	(b)	 	prevent Employee from challenging, under the Older Worker’s Benefit Protection Act (29
U.S.C. § 626, the knowing and voluntary nature of her release of any age claims in this

 

 

	 	 	Agreement in court of before the Equal Employment Opportunity Commission. [INCLUDE THIS
SUBPARAGRAPH (b) IF EMPLOYEE IS AGE 40 OR OLDER]

	13. 	Notwithstanding her right to file an administrative charge with the EEOC or any other
federal, state, or local agency, Employee agrees that with her release of claims in this
Agreement, she has waived any right she may have to recover monetary or other personal relief
in any proceeding based in whole or in part on claims released by her in this Agreement. For
example, Employee waives any right to monetary damages or reinstatement if an administrative
charge is brought against the Company whether by Employee, the EEOC, or any other person or
entity, including but not limited to any federal, state, or local agency. Further, with her
release of claims in this Agreement, Employee specifically assigns to the Company her right to
any recovery arising from any such proceeding.

	14. 	(ADD THIS LANGUAGE IF THE EMPLOYEE IS AGE 40 OR OLDER) The Parties acknowledge that it is
their mutual and specific intent that the above waiver fully complies with the requirements of
the Older Workers Benefit Protection Act (29 U.S.C. § 626) and any similar law governing
release of claims. Accordingly, Employee hereby acknowledges that:

	 	(a)	 	She has carefully read and fully understands all of the provisions of this Agreement
and that she has entered into this Agreement knowingly and voluntarily;
	 
	 	(b)	 	The Severance Benefits offered in exchange for Employee’s release of claims exceed in
kind and scope that to which she would have otherwise been legally entitled absent the
execution of this Agreement;
	 
	 	(c)	 	Prior to signing this Agreement, Employee had been advised, and is being advised by
this Agreement, to consult with an attorney of her choice concerning its terms and
conditions; and
	 
	 	(d)	 	She has been offered at least [twenty-one (21)/forty-five (45)] [SELECT 21 FOR AN
INDIVIDUAL TERMINATION AND 45 FOR A GROUP TERMINATION] days within which to review and
consider this Agreement.

	15. 	(ADD THIS LANGUAGE IF EMPLOYEE IS AGE 40 OR OLDER) The Parties agree that this Agreement
shall not become effective and enforceable until the date this Agreement is signed by both
Parties or seven (7) calendar days after its execution by Employee, whichever is later.
Employee may revoke this Agreement for any reason by providing written notice of such intent
to the Company within seven (7) days after she has signed this Agreement, thereby forfeiting
Employee’s right to receive any Severance Benefits provided hereunder and rendering this
Agreement null and void in its entirety. This revocation must be sent to the Employee’s HR
representative with a copy sent to the Company’s Office of General Counsel and must be
received by the end of the seventh day after the Employee signs this Agreement to be
effective.

	16. 	[ADD THIS LANGUAGE IF THE EMPLOYEE IS IN CALIFORNIA] Employee specifically acknowledges
that, as a condition of this Agreement, she expressly releases all rights and claims that she
knows about as well as those she may not know about. Employee

 

 

	 	 	expressly waives all rights under Section 1542 of the Civil Code of the State of California,
which reads as follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in her favor at the time of executing the release which if known,
must have materially affected her settlement with the debtor.”

	 	Notwithstanding the provision by Section 1542, and for the purpose of implementing a full and
complete release and discharge of the Company as set forth above, Employee expressly
acknowledges that this Agreement is intended to include and does in its effect, without
limitation, include all claims which Employee does not know or suspect to exist in her favor at
the time of signing this Agreement and that this Agreement expressly contemplates the
extinguishment of all such claims.
	 
	17. 	The Parties agree that nothing contained herein shall purport to waive or otherwise affect
any of Employee’s rights or claims that may arise after she signs this Agreement. It is
further understood by the Parties that nothing in this Agreement shall affect any rights
Employee may have under any Company sponsored Deferred Compensation Program, Executive Life
Insurance Bonus Plan, Stock Grant Award, Stock Option Grant, Restricted Stock Unit Award,
Pension Plan and/or Savings Plan (i.e., 401(k) plan) provided by the Company as of the
date of her termination, such items to be governed exclusively by the terms of the applicable
agreements or plan documents.

	18. 	Similarly, notwithstanding any provision contained herein to the contrary, this Agreement
shall not constitute a waiver or release or otherwise affect Employee’s rights with respect to
any vested benefits, any rights [she] has to benefits which can not be waived by law, any
coverage provided under any Directors and Officers (“D&O”) policy, any rights Employee may
have under any indemnification agreement [she] has with the Company prior to the date hereof,
any rights she has as a shareholder, or any claim for breach of this Agreement, including, but
not limited to the benefits promised by the terms of this Agreement.

	19. 	[Optional provision for equity-eligible employees: Except as provided herein, Employee
acknowledges that she will not be eligible to receive or vest in any additional stock options,
stock awards or restricted stock units (“RSUs”) as of [her] Effective Termination Date.
Failure to exercise any vested options within the applicable period as set for in the plan
and/or grant will result in their forfeiture. Employee acknowledges that any stock options,
stock awards or RSUs held for less than the required period shall be deemed forfeited as of
the effective date of this Agreement. All terms and conditions of such stock options, stock
awards or RSUs shall not be affected by this Agreement, shall remain in full force and effect,
and shall govern the Parties’ rights with respect to such equity based awards.]

	20. 	[Option A] Employee acknowledges that her termination and the Severance Benefits offered
hereunder were based on an individual determination and were not offered in conjunction with
any group termination or group severance program and waives any claim to the contrary.

 

 

	 	 	[Option B] Employee represents and agrees that she has been provided relevant cohort
information based on the information available to the Company as of the date this Agreement was
tendered to Employee. This information is attached hereto as Exhibit A. The Parties
acknowledge that simply providing such information does not mean and should not be interpreted
to mean that the Company was obligated to comply with 29 C.F.R. § 1625.22(f).
	 
	21.	 	Employee hereby affirms and acknowledges her continued obligations to comply with the
post-termination covenants contained in her Employment Agreement, including but not limited
to, the non-compete, trade secret and confidentiality provisions. Employee acknowledges that
a copy of the Employment Agreement has been attached to this Agreement as Exhibit A [B] or has
otherwise been provided to her and, to the extent not inconsistent with the terms of this
Agreement or applicable law, the terms thereof shall be incorporated herein by reference.
Employee acknowledges that the restrictions contained therein are valid and reasonable in
every respect and are necessary to protect the Company’s legitimate business interests.
Employee hereby affirmatively waives any claim or defense to the contrary. Employee hereby
acknowledges that the definition of Competitor, as provided in her Employment Agreement shall
include but not be limited to those entities specifically identified in the updated Competitor
List, attached hereto as Exhibit B [C].

	22.	 	Employee acknowledges that the Company as well as its parent, subsidiary and affiliated
companies (“Companies” herein) possess, and she has been granted access to, certain trade
secrets as well as other confidential and proprietary information that they have acquired at
great effort and expense. Such information includes, without limitation, confidential
information regarding products and services, marketing strategies, business plans, operations,
costs, current or, prospective customer information (including customer contacts,
requirements, creditworthiness and like matters), product concepts, designs, prototypes or
specifications, regulatory compliance issues, research and development efforts, technical data
and know-how, sales information, including pricing and other terms and conditions of sale,
financial information, internal procedures, techniques, forecasts, methods, trade information,
trade secrets, software programs, project requirements, inventions, trademarks, trade names,
and similar information regarding the Companies’ business (collectively referred to herein as
“Confidential Information”).

	23.	 	Employee agrees that all such Confidential Information is and shall remain the sole and
exclusive property of the Company. Except as may be expressly authorized by the Company in
writing, or as may be required by law after providing due notice thereof to the Company,
Employee agrees not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party for as long thereafter as such information remains
confidential (or as limited by applicable law) and agrees not to make use of any such
Confidential Information for Employee’s own purposes or for the benefit of any other entity or
person. The Parties acknowledge that Confidential Information shall not include any
information that is otherwise made public through no fault of Employee or other wrong doing.

	24.	 	On or before Employee’s Effective Termination Date or per the Company’s request, Employee
agrees to return the original and all copies of all things in her possession or control
relating to the Company or its business, including but not limited to any and all contracts,

 

 

	 	 	reports, memoranda, correspondence, manuals, forms, records, designs, budgets, contact
information or lists (including customer, vendor or supplier lists), ledger sheets or other
financial information, drawings, plans (including, but not limited to, business, marketing and
strategic plans), personnel or other business files, computer hardware, software, or access
codes, door and file keys, identification, credit cards, pager, phone, and any and all other
physical, intellectual, or personal property of any nature that she received, prepared, helped
prepare, or directed preparation of in connection with her employment with the Company. Nothing
contained herein shall be construed to require the return of any non-confidential and de minimis
items regarding Employee’s pay, benefits or other rights of employment such as pay stubs, W-2
forms, 401(k) plan summaries, benefit statements, etc.
	 
	25.	 	Employee hereby consents and authorizes the Company to deduct as an offset from the
above-referenced severance payments the value of any Company property not returned or returned
in a damaged condition as well as any monies paid by the Company on Employee’s behalf (e.g.,
payment of any outstanding American Express bill).

	26.	 	Employee agrees to cooperate with the Company in connection with any pending or future
litigation, proceeding or other matter which has been or may be brought against or by the
Company before any agency, court, or other tribunal and concerning or relating in any way to
any matter falling within Employee’s knowledge or former area of responsibility. Employee
agrees to immediately notify the Company, through the Office of the General Counsel, in the
event she is contacted by any outside attorney (including paralegals or other affiliated
parties) unless (i) the Company is represented by the attorney, (ii) Employee is represented
by the attorney for the purpose of protecting her personal interests or (iii) the Company has
been advised of and has approved such contact. Employee agrees to provide reasonable
assistance and completely truthful testimony in such matters including, without limitation,
facilitating and assisting in the preparation of any underlying defense, responding to
discovery requests, preparing for and attending deposition(s) as well as appearing in court to
provide truthful testimony. The Company agrees to reimburse Employee for all reasonable out
of pocket expenses incurred at the request of the Company associated with such assistance and
testimony.

	27.	 	Employee agrees not to make any written or oral statement that may defame, disparage or cast
in a negative light so as to do harm to the personal or professional reputation of (a) the
Company, (b) its employees, officers, directors or trustees or (c) the services and/or
products provided by the Company and its subsidiaries or affiliate entities. Similarly, in
response to any written inquiry from any prospective employer or in connection with a written
inquiry in connection with any future business relationship involving Employee, the Company
agrees not to provide any information that may defame, disparage or cast in a negative light
so as to do harm to the personal or professional reputation of Employee. The Parties
acknowledge, however, that nothing contained herein shall be construed to prevent or prohibit
the Company or the Employee from providing truthful information in response to any court
order, discovery request, subpoena or other lawful request.

	28.	 	EMPLOYEE SPECIFICALLY AGREES AND UNDERSTANDS THAT THE EXISTENCE AND TERMS OF THIS AGREEMENT
ARE STRICTLY CONFIDENTIAL AND THAT SUCH CONFIDENTIALITY IS A MATERIAL TERM

 

 

	 	 	OF THIS AGREEMENT. Accordingly, except as required by law or unless authorized to do so by the
Company in writing, Employee agrees that she shall not communicate, display or otherwise reveal
any of the contents of this Agreement to anyone other than her spouse, legal counsel or
financial advisor provided, however, that they are first advised of the confidential nature of
this Agreement and Employee obtains their agreement to be bound by the same. The Company agrees
that Employee may respond to legitimate inquiries regarding the termination of her employment by
stating that the Parties have terminated their relationship on an amicable basis and that the
Parties have entered into a Confidential Separation and Release Agreement that prohibits her
from further discussing the specifics of her separation. Nothing contained herein shall be
construed to prevent Employee from discussing or otherwise advising subsequent employers of the
existence of any obligations as set forth in her Employment Agreement. Further, nothing
contained herein shall be construed to limit or otherwise restrict the Company’s ability to
disclose the terms and conditions of this Agreement as may be required by business necessity.
	 
	29.	 	In the event that Employee breaches or threatens to breach any provision of this Agreement,
she agrees that the Company shall be entitled to seek any and all equitable and legal relief
provided by law, specifically including immediate and permanent injunctive relief. Employee
hereby waives any claim that the Company has an adequate remedy at law. In addition, and to
the extent not prohibited by law, Employee agrees that the Company shall be entitled to
discontinue providing any additional Severance Benefits upon such breach or threatened breach
as well as an award of all costs and attorneys’ fees incurred by the Company in any successful
effort to enforce the terms of this Agreement. Employee agrees that the foregoing relief
shall not be construed to limit or otherwise restrict the Company’s ability to pursue any
other remedy provided by law, including the recovery of any actual, compensatory or punitive
damages. Moreover, if Employee pursues any claims against the Company subject to the
foregoing General Release, or breaches the above confidentiality provision, Employee agrees to
immediately reimburse the Company for the value of all benefits received under this Agreement
to the fullest extent permitted by law.

	30.	 	Similarly, in the event that the Company breaches or threatens to breach any provision of
this Agreement, Employee shall be entitled to seek any and all equitable or other available
relief provided by law, specifically including immediate and permanent injunctive relief. In
the event Employee is required to file suit to enforce the terms of this Agreement, the
Company agrees that Employee shall be entitled to an award of all costs and attorneys’ fees
incurred by her in any wholly successful effort (i.e. entry of a judgment in her favor) to
enforce the terms of this Agreement. In the event Employee is wholly unsuccessful, the
Company shall be entitled to an award of its costs and attorneys’ fees.

	31.	 	Both Parties acknowledge that this Agreement is entered into solely for the purpose of
terminating Employee’s employment relationship with the Company on an amicable basis and shall
not be construed as an admission of liability or wrongdoing by the Company or Employee, both
Parties having expressly denied any such liability or wrongdoing.

	32.	 	Each of the promises and obligations shall be binding upon and shall inure to the benefit of
the heirs, executors, administrators, assigns and successors in interest of each of the
Parties.

 

 

	33.	 	The Parties agree that each and every paragraph, sentence, clause, term and provision of this
Agreement is severable and that, if any portion of this Agreement should be deemed not
enforceable for any reason, such portion shall be stricken and the remaining portion or
portions thereof should continue to be enforced to the fullest extent permitted by applicable
law.

	34.	 	This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Indiana without regard to any applicable state’s choice of law provisions.

	35.	 	[USE THIS LANGUAGE IF OWBPA LANGUAGE (FOR EMPLOYEES AGE 40 OR OVER) IS NOT INCLUDED]
Employee acknowledges that she has been offered a period of twenty-one (21) days within which
to consider and review this Agreement; that she has carefully read and fully understands all
of the provisions of this Agreement; and that she has entered into this Agreement knowingly
and voluntarily.

	36.	 	Employee represents and acknowledges that in signing this Agreement she does not rely, and
has not relied, upon any representation or statement made by the Company or by any of the
Company’s employees, officers, agents, stockholders, directors or attorneys with regard to the
subject matter, basis or effect of this Agreement other than those specifically contained
herein.

	37.	 	This Agreement represents the entire agreement between the Parties concerning the subject
matter hereof, shall supersede any and all prior agreements which may otherwise exist between
them concerning the subject matter hereof (specifically excluding, however, the
post-termination obligations contained in an Employee’s Employment Agreement, any obligations
contained in an existing and valid Indemnity Agreement or Change in Control or any obligation
contained in any other legally-binding document), and shall not be altered, amended, modified
or otherwise changed except by a writing executed by both Parties.

PLEASE READ CAREFULLY. THIS SEPARATION AND RELEASE

AGREEMENT INCLUDES A COMPLETE RELEASE OF ALL

KNOWN AND UNKNOWN CLAIMS.

     IN WITNESS WHEREOF, the Parties have themselves signed, or caused a duly authorized agent
thereof to sign, this Agreement on their behalf and thereby acknowledge their intent to be bound by
its terms and conditions.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	[EMPLOYEE]	 	 	 	COMPANY NAME	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Printed:

	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 	 	 

	 	 

 

 

Exhibit B

ILLUSTRATIVE COMPETITOR LIST

          The following is an illustrative, non-exhaustive list of Competitors with whom Employee may
not, during her relevant non-compete period, directly or indirectly engage in any of the
competitive activities proscribed by the terms of her Employment Agreement.

	•	 	Astral Industries, Inc.

	•	 	Goliath Casket, Inc.

	•	 	Milso Industries, LLC

	•	 	R and S Marble Designs

	•	 	Schuykill Haven Casket Company, Inc. (A division of The Haven
Line Industries)

	•	 	Thacker Caskets, Inc.

	•	 	The Victoriaville Group

	•	 	Aurora Casket Company, Inc.

	•	 	Milso Industries, Inc.

	•	 	New England Casket Company

	•	 	Reynoldsville Casket Company

	•	 	SinoSource International, Inc.

	•	 	The York Group (a division of Matthews International Corp.) and its
distributors, including Warfield Rohr, Artco, Newmark and AJ Distribution

	•	 	Wilbert Funeral Services, Inc.

          While the above list is intended to identify the Company’s primary competitors, it should not
be construed as all encompassing so as to exclude other potential competitors falling within the
Non-Compete definitions of “Competitor.” The Company reserves the right to amend this list at any
time in its sole discretion to identify other or additional Competitors based on changes in the
products and services offered, changes in its business or industry as well as changes in the duties
and responsibilities of the individual employee. An updated list will be provided to Employee upon reasonable request. Employees are encouraged to consult with the Company prior
to accepting any position with any potential competitor.

(Revised list 12-10-2007)

5488163.1

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