Document:

<PAGE>

                                                                    EXHIBIT 10.1

                                    FORM OF

                            Tax Sharing Agreement,

                          dated as of May ___, 2001,

                                 by and among

                                FMC Corporation

                                      and

                            FMC Technologies, Inc.
<PAGE>

                             TAX SHARING AGREEMENT
                             ---------------------

          TAX SHARING AGREEMENT (this "Agreement"), dated as of _______ __,
                                       ---------
2001, by and between FMC Corporation, a Delaware corporation ("FMC"), and FMC
                                                               ---
Technologies, Inc., a Delaware corporation and a wholly-owned subsidiary of FMC
("Subsidiary").
  ----------

                                   RECITALS
                                   --------

          WHEREAS, FMC is the common parent corporation of an affiliated group
of corporations within the meaning of Section 1504(a) of the Code (as defined
herein) and of consolidated, combined, unitary and other similar groups as
defined under similar laws of other jurisdictions, and Subsidiary and certain
Subsidiary Affiliates (as defined herein) are members of such groups;

          WHEREAS, the groups of which FMC is the common parent and Subsidiary
and the Subsidiary Affiliates are members file or intend to file Consolidated
Returns and Combined Returns (as defined herein);

          WHEREAS, FMC and Subsidiary have entered into a Separation and
Distribution Agreement dated as of [_______ __, 2001] (the "Separation
                                                            ----------
Agreement"), and subject to the terms and conditions thereof, FMC wishes to
---------
transfer and assign to Subsidiary substantially all of the assets and
liabilities currently associated with the Technologies Business (as defined
below) and the stock, investments and similar interests currently held by FMC in
subsidiaries and other entities that conduct such business (the "Separation");
                                                                 ----------

          WHEREAS, following the Separation, FMC and Subsidiary currently
contemplate that Subsidiary will make an initial public offering (the "IPO") of
                                                                       ---
Subsidiary common stock (the "Common Stock") that will reduce FMC's ownership of
                              ------------
Subsidiary on a fully-diluted basis to not less than 80.1 percent;

          WHEREAS, FMC intends to distribute in the Spin-Off (as defined below)
all of its shares of Common Stock, on a pro rata basis, to the holders of the
common stock of FMC, subject to the terms and conditions of the Separation
Agreement;

          WHEREAS, prior to consummating the Separation and the Spin-Off,
various FMC Affiliates and the Subsidiary Affiliates will have undertaken the
transactions contemplated by the Restructuring (as defined below) that are
designed to separate the Technologies Business from the Chemical Business (as
defined below), and Intermountain Research and Development Corporation, a
Wyoming corporation and a wholly-owned subsidiary of FMC, will distribute all of
the stock of FMC International A.G. ("FMC International"), a Swiss corporation,
to FMC (the "Internal Distribution");
             ---------------------

                                      -1-
<PAGE>

          WHEREAS, the Separation, the Spin-Off, the Internal Distribution and
certain of the transactions involved in the Restructuring are intended to
qualify as tax-free reorganizations and distributions under Sections
368(a)(1)(D) and 355 of the Code;

          WHEREAS, at the close of business on the day on which the Spin-Off
occurs (the "Distribution Date"), the taxable year of Subsidiary shall close for
             -----------------
U.S. federal income tax purposes; and

          WHEREAS, in contemplation of the Spin-Off pursuant to which Subsidiary
and its domestic subsidiaries will cease to be members of the FMC Group (as
defined below), FMC and Subsidiary wish to set forth the principles and
responsibilities of the parties to this Agreement regarding the allocation of
Taxes (as defined herein) and other related liabilities and adjustments with
respect to Taxes, Proceedings (as defined herein) and other related Tax matters.

          NOW, THEREFORE, in consideration of the premises and the
representations, covenants and agreements contained herein and intending to be
legally bound, the parties hereto hereby agree as follows:

     Section 1.   Definitions.  Capitalized terms not otherwise defined herein
                  -----------
shall have the meanings ascribed to such terms in the Separation Agreement.  As
used in this Agreement, capitalized terms shall have the following meanings
(such meanings to be equally applicable to both the singular and plural forms of
the terms defined).

          "Acceptable Letter of Credit" shall mean a clean, unconditional and
           ---------------------------
irrevocable letter of credit in favor of FMC, issued or confirmed for direct
payment by a commercial bank that is a member of the New York Clearinghouse
Association and qualifies as "well capitalized" (as such term is defined in
section 325.103(b)(1) of the regulations of the Federal Deposit Insurance
Corporation (12 C.F.R. (S) 325.103(b)(1)) which shall (a) provide that the
issuing bank shall pay to FMC an amount up to the face amount thereof upon
presentation of only the letter of credit and a sight draft in the face amount,
(b) have an expiration date of not less than one year from its date of issuance
and provide for automatic renewal, without amendment, for an additional one year
term followed by consecutive periods of six (6) months, unless the issuing bank
sends written notice to FMC not less than one hundred and twenty (120) days
prior to the then expiration date of the letter of credit that it elects not to
have the same renewed (a "Non-Renewal Notice") and (c) otherwise be in a form
satisfactory to FMC.

          "Actually Realized" or "Actually Realizes" means, for purposes of
           -----------------      -----------------
determining the timing of the incurrence of any Income Tax Liability or the
realization of a Refund (or any related Tax Benefit (as defined below) or Tax
Detriment (as defined below)) by a Person in respect of any payment,
transaction, occurrence or event, the time at which the amount of Income Taxes
paid by such Person is increased above or reduced below the amount of Income
Taxes that such Person would have been required to pay but for such payment,
transaction, occurrence or event or, in the case of a cash refund, the date on
which such refund is actually received.

          "Actually Utilized" means, with respect to a Tax Asset, that the Tax
           -----------------
Asset reduced the amount of Taxes that such a Person would have been required to
pay but for such Tax Asset or, in the case of a cash refund, that such refund
was actually received.

                                      -2-
<PAGE>

          "Aggregate Assumed Spin-Off Tax Liabilities" means (i) the sum of the
           ------------------------------------------
Assumed Spin-Off Tax Liabilities with respect to each relevant Taxing
Jurisdiction plus (ii) an amount equal to the amount of interest that would
accrue on the amount determined under clause (i) calculated at 110% of the
highest Underpayment Rate for U.S. corporations from the Distribution Date until
the date that is thirty months after the Distribution Date.

          "Aggregate Spin-Off Tax Liabilities" means the sum of the Spin-Off
           ----------------------------------
Disqualification Taxes with respect to each Taxing Jurisdiction.

          "Agreement" has the meaning set forth in the Recitals.
           ---------

          "Assumed Spin-Off Tax Liabilities" means, with respect to any Taxing
           --------------------------------
Jurisdiction (as defined below), the product of (x) the excess of (A) 105% of
the highest trading value of Common Stock during the five Business Days
following the Spin-Off over (B) the tax basis, per share, in the Common Stock
held by FMC, (y) the number of shares of Common Stock held by FMC and
distributed in the Spin-Off and (z) the Taxing Jurisdiction's highest marginal
tax rate applicable to the taxable income of corporations on income of the
character subject to tax and indemnified against under this Agreement.

          "Board Certification" shall mean a certified copy of a resolution of
           -------------------
Subsidiary's Board of Directors in which the Board, after an investigation of
the facts and advice concerning the applicable law, finds and warrants to FMC
that (a) following the transaction at issue, Subsidiary or any Subsidiary
Affiliate will not have issued or agreed to issued (including, for these
purposes, any sale of or agreement to sell stock of Subsidiary or any Subsidiary
Affiliate by FMC or any FMC Affiliate) (i) more than 40% (by vote or value), in
the case of a Board Certification provided pursuant to Section 10(a)(1)(vi)(c)
hereof or (ii) more than 35% (by vote or value), in the case of a Board
Certification provided pursuant to Section 10(a)(1)(vi)(d) hereof, of its
outstanding stock (determined immediately prior to the IPO) taking into account
all issuances of (and agreements to issue) Equity Securities (and assuming the
exercise of all such Equity Securities and the closing of all such agreements)
from the point in time immediately prior to the IPO to the date immediately
following such transaction, (b) if such transaction involves a merger,
Subsidiary will be the surviving entity and the merger will not be a reverse
subsidiary merger in which Subsidiary is the surviving entity and (c) the facts
and conclusions contained in the resolution will be true and correct at the time
the transaction at issue closes.

          "Business Day" means any day other than a Saturday, a Sunday or a day
           ------------
on which banking institutions located in the State of Illinois are authorized or
obligated by law or executive order to close.

          "Carryback" means the carryback of a Tax Attribute (including, without
           ---------
limitation, a net operating loss, a net capital loss or a tax credit) by a
member of the Subsidiary Group (as defined below) (i) from a Post-
Deconsolidation Period to a Straddle Period or a Pre-Deconsolidation Period or
(ii) from a Straddle Period to a Pre-Deconsolidation Period.

          "Chemical Business" means all the businesses and operations (including
           -----------------
related joint ventures and alliances) of FMC, other than the Technologies
Business.

          "Code" means the United States Internal Revenue Code of 1986, as
           ----
amended.

                                      -3-
<PAGE>

          "Combined Group" means a group of corporations or other entities that
           --------------
files a Combined Return or a corporation or other entity that files a Combined
Return described in clause (ii) or clause (iii) of the definition of "Combined
                                                                      --------
Return."
------

          "Combined Return" means any Tax Return with respect to Non-Federal
           ---------------
Taxes (i) filed on a consolidated, combined (including nexus combination,
worldwide combination, domestic combination, line of business combination or any
other form of combination) or unitary basis wherein Subsidiary or one or more
Subsidiary Affiliates join in the filing of such Tax Return (for any taxable
period or portion thereof) with FMC or one or more FMC Affiliates, (ii) filed on
a separate basis that includes Tax Items relating to, or arising from, both the
Technologies Business and the Chemical Business, or (iii) pursuant to which Tax
Items or Tax Assets of (A) FMC (or any FMC Affiliate) are included on a separate
Tax Return of Subsidiary (or any Subsidiary Affiliate) or (B) Subsidiary (or any
Subsidiary Affiliate) are included on a separate Tax Return of FMC (or any FMC
Affiliate).

          "Common Stock" has the meaning set forth in the Recitals.
           ------------

          "Consolidated Group" means an affiliated group of corporations within
           ------------------
the meaning of Section 1504(a) of the Code that files a Consolidated Return.

          "Consolidated Return" means any Tax Return with respect to Federal
           -------------------
Income Taxes filed on a consolidated basis wherein Subsidiary or one or more
Subsidiary Affiliates join in the filing of such Tax Return (for any taxable
period or portion thereof) with FMC or one or more FMC Affiliates.

          "Deconsolidation" means with respect to each Tax Return (i) any event
           ---------------
pursuant to which Subsidiary ceases to be a subsidiary corporation includable in
the Consolidated Return, (ii) any event pursuant to which neither Subsidiary nor
any Subsidiary Affiliate continues to be included in a Combined Return which
includes FMC and/or a FMC Affiliate, (iii) any event (including as a result of
transactions contemplated by the Restructuring) pursuant to which Tax Items
relating to, or arising from, both the Technologies Business and the Chemical
Business are no longer included on a Combined Return described in clause (ii) of
the definition of Combined Return or (iv) any event pursuant to which a Tax
Return described in clause (iii) of the definition of Combined Return no longer
includes Tax Items or Tax Assets of both FMC (or any FMC Affiliate) and
Subsidiary (or any Subsidiary Affiliate).

          "Deconsolidation Date" means with respect to each Tax Return the day
           --------------------
on which a Deconsolidation occurs.

          "Deconsolidation Tax" means any Tax, resulting from a Deconsolidation,
           -------------------
that results from the application of Section 1.1502-13 or Section 1.1502-19 or
any predecessor provision of the Treasury Regulations (or any similar provision
under Non-Federal Tax law).

          "Distribution Date" has the meaning set forth in the Recitals.
           -----------------

          "Equity Securities" means any stock or other equity securities treated
           -----------------
as stock for tax purposes, or options, warrants, rights, convertible debt, or
any other instrument or security that affords any Person the right, whether
conditional or otherwise, to acquire stock.

                                      -4-
<PAGE>

          "Estimated Tax Installment Date" means the installment due dates
           ------------------------------
prescribed in Section 6655(c) of the Code (presently April 15, June 15,
September 15 and December 15).

          "Federal Income Tax" means any Tax imposed under Subtitle A of the
           ------------------
Code or any other provision of United States federal Income Tax law (including
the Taxes imposed by Sections 11, 55, 59A, and 1201(a) of the Code), and any
interest, additions to Tax or penalties applicable or related thereto.

          "Federal Tax" means any Tax imposed under the Code or otherwise under
           -----------
United States federal Tax law.

          "Fifty-Percent or Greater Interest" shall have the meaning ascribed to
           ---------------------------------
such term for purposes of Sections 355(d) and (e) of the Code.

          "Final Determination" means the final resolution of any Tax (or other
           -------------------
matter) for a taxable period, including related interest or penalties, that,
under applicable law, is not subject to further appeal, review or modification
through proceedings or otherwise, including (1) by the expiration of a statute
of limitations or a period for the filing of claims for Refunds, amending Tax
Returns, appealing from adverse determinations, or recovering any Refund
(including by offset), (2) by a decision, judgment, decree, or other order by a
court of competent jurisdiction, which has become final and unappealable, (3) by
a closing agreement or an accepted offer in compromise under Section 7121 or
7122 of the Code, or comparable agreements under laws of other jurisdictions,
(4) by execution of an Internal Revenue Service Form 870 or 870AD, or by a
comparable form under the laws of other jurisdictions (excluding, however, with
respect to a particular Tax Item for a particular taxable period any such form
that reserves (whether by its terms or by operation of law) the right of the
taxpayer to file a claim for Refund and/or the right of the Tax Authority to
assert a further deficiency with respect to such Tax Item for such period), or
(5) by any allowance of a Refund or credit, but only after the expiration of all
periods during which such Refund or credit may be recovered (including by way of
offset).

          "FMC" has the meaning set forth in the Recitals.
           ---

          "FMC Affiliate" means any corporation or other entity in which FMC
           -------------
owns more than fifty percent (50%) of the total combined voting power (at any
time after the completion of the Restructuring), other than Subsidiary or any
Subsidiary Affiliate.

          "FMC Group" means the affiliated group of corporations as defined in
           ---------
Section 1504(a) of the Code, or similar group of entities as defined under
corresponding provisions of the laws of other jurisdictions, of which FMC is the
common parent, and any corporation or other entity which is a member of such
group for the relevant taxable period or portion thereof, but excluding any
member of the Subsidiary Group.

          "FMC Subsidiaries" means all direct and indirect subsidiaries of FMC
           ----------------
other than Subsidiary and its subsidiaries.

          "Income Tax" means (a) any Tax based upon, measured by, or calculated
           ----------
with respect to (1) net income or profits (including, without limitation, any
capital gains Tax, minimum Tax and any Tax on items of Tax preference, but not
including sales, use, real or personal

                                      -5-
<PAGE>

property, gross or net receipts, transfer or similar Taxes) or (2) multiple
bases if one or more of the bases upon which such Tax may be based, measured by,
or calculated with respect to, is described in clause (1) above, or (b) any
United States state or local franchise Tax.

          "Income Tax Liability" means all liabilities for Income Taxes.
           --------------------

          "Indemnifiable Loss Deduction" has the meaning set forth in Section
           ----------------------------
6.3(b) of this Agreement.

          "Indemnified Loss" has the meaning set forth in Section 6.3(b) of this
           ----------------
Agreement.

          "Indemnified Party" means any Person that has received or is seeking
           -----------------
indemnification pursuant to the provisions of this Agreement.

          "Indemnifying Party" means any party hereto from which any Indemnified
           ------------------
Party has received or is seeking indemnification pursuant to the provisions of
this Agreement.

          "Independent Entity" has the meaning set forth in Section 8 of this
           ------------------
Agreement.

          "Interim Period" means any taxable period with respect to a
           --------------
Consolidated Return or Combined Return, as the case may be, beginning, with
respect to Subsidiary and/or any Subsidiary Affiliate, on or before the
Separation Date and ending after the Separation Date.

          "Internal Distribution" has the meaning set forth in the Recitals.
           ---------------------

          "IPO" has the meaning set forth in the Recitals.
           ---

          "IPO Date" has the meaning set forth in the Separation Agreement.
           --------

          "Losses" has the meaning set forth in the Separation Agreement.
           ------

          "Non-Federal Combined Tax" means any Non-Federal Tax with respect to
           ------------------------
which a Combined Return is filed.

          "Non-Federal Separate Tax" means any Non-Federal Tax other than a Non-
           ------------------------
Federal Combined Tax.

          "Non-Federal Tax" means any Tax other than a Federal Tax.
           ---------------

          "Non-Renewal Notice" shall have the meaning set forth in the
           ------------------
definition of "Acceptable Letter of Credit."

          "Option" means an option to acquire common stock, or other equity-
           ------
based incentives the economic value of which is designed to mirror that of an
option, including non-qualified stock options, discounted non-qualified stock
options, cliff options to the extent stock is issued or issuable (as opposed to
cash compensation), and tandem stock options to the extent stock is issued or
issuable (as opposed to cash compensation).

                                      -6-
<PAGE>

          "Other Foreign Restructuring Tax" means any Tax, other than a Federal
           -------------------------------
Tax, a United States state or local Tax or a Spin-Off Disqualification Tax,
resulting directly from a Secondary Restructuring.

          "Payment Period" has the meaning set forth in Section 6.4 of this
           --------------
Agreement.

          "Person" means and includes any individual, partnership, joint
           ------
venture, limited liability company, corporation, association, joint stock
company, trust, unincorporated organization or similar entity or a governmental
authority or any department or agency or other unit thereof.

          "Post-Deconsolidation Period" means any taxable period with respect to
           ---------------------------
a Consolidated Return or Combined Return, as the case may be, (i) beginning with
respect to Subsidiary and/or any Subsidiary Affiliate after a Deconsolidation
Date and/or (ii) the portion of the Straddle Period commencing on the
Deconsolidation Date.

          "Pre-Deconsolidation Period" means any taxable period with respect to
           --------------------------
a Consolidated Return or Combined Return, as the case may be, (i) beginning with
respect to Subsidiary and/or any Subsidiary Affiliate on or after the Separation
Date and on or before a Deconsolidation Date, and/or (ii) the portion of the
Straddle Period ending on the Deconsolidation Date.

          "Pre-Restructuring Foreign Dividend" means (i) the payment of an
           ----------------------------------
actual dividend (as defined under U.S. Tax law) by a foreign Subsidiary
Affiliate to Subsidiary or Parent; (ii) a transaction which by its terms will
give rise to a deemed dividend under Section 956 of the Code; (iii) a
transaction by which a foreign Subsidiary Affiliate makes a distribution which
is treated as a return of capital (due to the absence of accumulated earnings
and profits for U.S. Tax purposes); or (iv) a transaction by which a foreign
Subsidiary Affiliate makes a distribution which for U.S. purposes is treated as
a distribution of previously taxed income (as defined in Section 959 of the
Code), in each case prior to or in connection with the Restructuring.

          "Privilege" means any privilege that may be asserted under applicable
           ---------
law including any privilege arising under or relating to the attorney-client
relationship (including the attorney-client and work product privileges), the
accountant-client privilege, and any privilege relating to internal evaluation
processes.

          "Prime Rate" means, for any day, the rate of interest per annum
           ----------
established from time to time by The Chase Manhattan Bank as its prime rate in
effect on such day at its principal office in New York City, plus 150 basis
points.

          "Pro Forma Subsidiary Group Combined Return" means a pro forma Non-
           ------------------------------------------
Federal Combined Tax return or other schedule prepared pursuant to Section 4.3
of this Agreement.

          "Pro Forma Subsidiary Group Consolidated Return" means a pro forma
           ----------------------------------------------
consolidated Federal Income Tax return or other schedule prepared pursuant to
Section 4.2 of this Agreement.

                                      -7-
<PAGE>

          "Proceeding" means any assessment, audit, or other examination by any
           ----------
Tax Authority, relating to Taxes (including Refunds), whether administrative or
judicial, and any appeal of the foregoing.

          "Qualified Tax Counsel" means a nationally recognized independent
           ---------------------
public accounting firm or law firm, which does not currently represent
Subsidiary or any Subsidiary Affiliate, as shall be agreed upon by FMC and
Subsidiary.

          "Qualifying Pre-Restructuring Foreign Dividend" means a Pre-
           ---------------------------------------------
Restructuring Foreign Dividend in connection with which an amount equal to such
Pre-Restructuring Foreign Dividend (net of any foreign withholding tax) is
remitted to Parent and, after the Restructuring, the obligation to repay such
amount, if any, is transferred to and assumed by, or remains with, Subsidiary.

          "Refund" means any refund of Taxes, including any reduction in Tax
           ------
liabilities by means of a credit, offset or otherwise.

          "Representatives" means with respect to any Person, any of such
           ---------------
Person's directors, officers, employees, agents, consultants, advisors,
accountants, attorneys and representatives.

          "Restated Tax Saving Amount" has the meaning set forth in Section
           --------------------------
6.3(c) of this Agreement.

          "Restriction Period" means the period beginning on the date hereof and
           ------------------
ending thirty (30) months after the Distribution Date.

          "Restructuring" means the series of transactions contemplated by the
           -------------
Separation Agreement relating to (i) any transfer or assignment of the
Technologies Business and any Technologies Subsidiary to Subsidiary and the
Subsidiary Affiliates, (ii) any transfer or assignment of the Chemical Business
and any FMC Subsidiary from Subsidiary and the Subsidiary Affiliates and (iii)
any other transaction undertaken to restructure or separate the Technologies
Business and the Technology Subsidiaries, on the one hand, and the Chemical
Business and the FMC Subsidiaries, on the other hand, in connection with the
IPO; provided, however, that the Internal Distribution and the Spin-Off shall
     --------  -------
not be treated as part of the Restructuring.

          "Restructuring Tax" means any Tax resulting from the Restructuring
           -----------------
imposed upon FMC or any FMC Affiliate or Subsidiary or any Subsidiary Affiliate;
provided that, such term shall not refer to any Spin-Off Disqualification Tax.

          "Ruling" means (a) the initial private letter ruling, if any, issued
           ------
by the Service in connection with the Spin-Off and/or the Internal Distribution
(and, in each case, any related transactions) or (b) any similar ruling issued
by any Tax Authority other than the Service in connection with the Spin-Off
and/or the Internal Distribution (and, in each case, any related transactions).

          "Ruling Documents" means (a) the request for the Ruling submitted to
           ----------------
the Service, together with the appendices and exhibits thereto and any
supplemental filings or other mate-

                                      -8-
<PAGE>

rials subsequently submitted to the Service, in connection with the Spin-Off
and/or the Internal Distribution (and, in each case, any related transactions)
or (b) any similar filings submitted to any other Tax Authority in connection
with the Spin-Off and/or the Internal Distribution (and, in each case, any
related transactions).

          "Secondary Restructuring" means (a) a secondary public offering
           -----------------------
pursuant to which FMC sells shares of Common Stock or (b) a Spin-Off.

          "Separate Return" means any Tax Return with respect to Non-Federal
           ---------------
Separate Taxes filed by FMC, Subsidiary, or any of their respective affiliates.

          "Separation" has the meaning set forth in the Recitals.
           ----------

          "Separation Agreement" has the meaning set forth in the Recitals.
           --------------------

          "Separation Date" means the date on which the Separation occurs.
           ---------------

          "Service" means the Internal Revenue Service or any successor agency
           -------
or authority.

          "Spin-Off" means any distribution (or exchange) by FMC or any FMC
           --------
Affiliate, with respect to its stock, of the stock of Subsidiary (or any
successor corporation or corporation which owns stock of Subsidiary) in a
transaction intended to qualify under Section 355 of the Code.

          "Spin-Off Disqualification Tax" means any Taxes (and other costs,
           -----------------------------
liabilities, expenses or damages) imposed upon or incurred by FMC or any FMC
Affiliate or Subsidiary or any Subsidiary Affiliate that are attributable to, or
result from, the failure of the Spin-Off and/or the Internal Distribution to
qualify under Section 355 of the Code (including, without limitation, any Tax
attributable to the application of Section 355(d), Section 355(e) or Section
355(f) of the Code to the Spin-Off and/or the Internal Distribution) or
corresponding provisions of the laws of other jurisdictions.  Each Tax referred
to in the immediately preceding sentence shall be determined using the highest
statutory marginal corporate income Tax rate for the relevant taxable period (or
portion thereof).

          "Straddle Period" means any taxable period with respect to a
           ---------------
Consolidated Return or Combined Return, as the case may be, beginning with
respect to Subsidiary and/or any Subsidiary Affiliate on or before the
Deconsolidation Date and ending after the Deconsolidation Date.

          "Subsidiary" has the meaning set forth in the Recitals.
           ----------

          "Subsidiary Affiliate" means (i) any corporation or other entity in
           --------------------
which Subsidiary owns directly or indirectly more than fifty percent (50%) of
the total combined voting power (at any time after the completion of the
Restructuring), (ii) any non-stock entity such as a contractual joint venture,
alliance, consortium or similar entity in which the Technology Businesses have
participated and (iii) any of the entities listed on Exhibit A hereto.

                                      -9-
<PAGE>

          "Subsidiary Group" means the affiliated group of corporations as
           ----------------
defined in Section 1504(a) of the Code, or similar group of entities as defined
under corresponding provisions of the laws of other jurisdictions following the
completion of the Restructuring, of which Subsidiary would be the common parent
if it were not a subsidiary of FMC, and any corporation or other entity which
would be a member of such group for the relevant taxable period or portion
thereof.

          "Subsidiary Group Combined Tax Liability" means, with respect to any
           ---------------------------------------
taxable period, the Subsidiary Group's liability for Non-Federal Combined Taxes
as determined under Section 4.3 of this Agreement.

          "Subsidiary Group Federal Income Tax Liability" means, with respect to
           ---------------------------------------------
any taxable period, the Subsidiary Group's liability for Federal Income Taxes as
determined under Section 4.2 of this Agreement.

          "Subsidiary IPO Tax Return" has the meaning set forth in Section
           -------------------------
9.2(a) of this Agreement.

          "Subsidiary Restructuring Tax Return" has the meaning set forth in
           -----------------------------------
Section 9.2(b) of this Agreement.

          "Supplemental Ruling" means (a) any private letter ruling (other than
           -------------------
the Ruling) issued by the Service in connection with the Spin-Off and/or the
Internal Distribution (and, in each case, any related transactions) or (b) any
similar ruling issued by any Tax Authority other than the Service in connection
with the Spin-Off and/or the Internal Distribution (and, in each case, any
related transactions).

          "Supplemental Ruling Documents" means (a) the request for the
           -----------------------------
Supplemental Ruling submitted to the Service, together with the appendices and
exhibits thereto and any supplemental filings or other materials subsequently
submitted to the Service, in connection with the Spin-Off and/or the Internal
Distribution (and, in each case, any related transactions) or (b) any similar
filings submitted to any other Tax Authority in connection with the Spin-Off
and/or the Internal Distribution (and, in each case, any related transactions).

          "Tax" means any charges, fees, levies, imposts, duties, or other
           ---
assessments of a similar nature, including income, alternative or add-on
minimum, gross receipts, profits, lease, service, service use, wage, wage
withholding, employment, workers compensation, business occupation, occupation,
premiums, environmental, estimated, excise, employment, sales, use, transfer,
license, payroll, franchise, severance, stamp, occupation, windfall profits,
withholding, social security, unemployment, disability, ad valorem, highway use,
commercial rent, capital stock, paid up capital, recording, registration,
property, real property gains, value added, business license, custom duties, or
other tax or governmental fee of any kind whatsoever, imposed or required to be
withheld by any Tax Authority including any interest, additions to tax, or
penalties applicable or related thereto.

          "Tax Asset" means any Tax Item that could reduce a Tax, including,
           ---------
without limitation, a net operating loss, net capital loss, investment tax
credit, foreign tax credit, charitable deduction or credit related to
alternative minimum tax or any other Tax credit.

                                      -10-
<PAGE>

          "Tax Attribute" means a consolidated net operating loss, a
           -------------
consolidated net capital loss, a consolidated unused investment credit, a
consolidated unused foreign tax credit, or a consolidated excess charitable
contribution (as such terms are used in Treasury Regulations 1.1502-79 and
1.1502-79A), or a U.S. federal minimum tax credit or U.S. federal general
business credit (but not tax basis or earnings and profits) that arises in a
Pre-Deconsolidation Period (including the taxable period in which the
Deconsolidation Date occurs) and can be carried to a taxable period ending after
the Deconsolidation Date.

          "Tax Authority" means a governmental authority (foreign or domestic)
           -------------
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, without
limitation, the Service).

          "Tax Benefit" means a reduction in the Tax liability (or, without
           -----------
duplication, the increase in any Refund) of a taxpayer (or the affiliated group
of which it is a member) for any taxable period.  Except as otherwise provided
in this Agreement, a Tax Benefit shall be deemed to have been realized or
received from a Tax Item in a taxable period only if and to the extent that the
Tax liability of the taxpayer (or of the affiliated group of which it is a
member) for such period, after taking into account the effect of the Tax Item on
the Tax liability of such taxpayer in the current period and all other prior
periods, is less than it would have been if such Tax liability were determined
without regard to such Tax Item.

          "Tax Detriment" means an increase in the Tax liability (or, without
           -------------
duplication, the reduction in any Refund) of a taxpayer (or the affiliated group
of which it is a member) for any taxable period.  Except as otherwise provided
in this Agreement, a Tax Detriment shall be deemed to have been realized or
received from a Tax Item in a taxable period only if and to the extent that the
Tax liability of the taxpayer (or of the affiliated group of which it is a
member) for such period, after taking into account the effect of the Tax Item on
the Tax liability of such taxpayer in the current period and all other prior
periods, is greater than it would have been if such Tax liability were
determined without regard to such Tax Item.

          "Tax-Free Status" means the qualification of (A) the Spin-Off (i) as a
           ---------------
transaction described in Sections 355(a)(1) and 368(a)(1)(D) of the Code, (ii)
as a transaction in which the stock distributed thereby is qualified property
for purposes of section 355(c)(2) of the Code, and (iii) as a transaction in
which FMC recognizes no income or gain other than intercompany items or excess
loss accounts taken into account pursuant to applicable Treasury Regulations
promulgated pursuant to Section 1502 of the Code and (B) the Internal
Distribution (i) as a transaction described in Sections 355(a)(1) and
368(a)(1)(D) of the Code, (ii) as a transaction in which the stock distributed
thereby is qualified property for purposes of section 355(c)(2) of the Code, and
(iii) as a transaction in which FMC recognizes no income or gain other than
intercompany items or excess loss accounts taken into account pursuant to
applicable Treasury Regulations promulgated pursuant to Section 1502 of the
Code.

          "Tax Item" means any item of income, gain, loss, deduction or credit,
           --------
or other attribute that may have the effect of increasing or decreasing any Tax.

          "Tax-Related Losses" means (without duplication):
           ------------------

                                      -11-
<PAGE>

               (i)   the Aggregate Spin-Off Tax Liabilities,

               (ii)  all accounting, legal and other professional fees, and
court costs incurred in connection with any settlement, Final Determination,
judgment or other determination with respect to such Aggregate Spin-Off Tax
Liabilities, and

               (iii) all costs, expenses and damages associated with stockholder
litigation or controversies and any amount paid by FMC or Subsidiary in respect
of the liability of shareholders, whether paid to shareholders or to the Service
or any other Tax Authority payable by FMC or Subsidiary or their respective
Affiliates, in each case, resulting from the failure of the Spin-Off and/or the
Internal Distribution to qualify for Tax-Free Status.

          "Tax Return" means 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 Tax 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 Tax.

          "Tax Saving Amount" has the meaning set forth in Section 6.3(b) of
           -----------------
this Agreement.

          "Taxing Jurisdiction" means the United States and each and every other
           -------------------
government or governmental unit (foreign and domestic) having jurisdiction to
tax any of FMC, the FMC Affiliates, Subsidiary and the Subsidiary Affiliates.

          "Technologies Business" has the meaning set forth in the Separation
           ---------------------
Agreement.

          "Technologies Subsidiaries" has the meaning set forth in the
           -------------------------
Separation Agreement.

          "Treasury Regulations" means the final, temporary and proposed income
           --------------------
tax regulations promulgated under the Code, as such regulations may be amended
from time to time (including corresponding provisions of succeeding
regulations).

          "Underpayment Rate" means the annual rate of interest described in
           -----------------
Section 6621(c) of the Code for large corporate underpayments of Income Tax (or
similar provision of state, local, or foreign Income Tax law, as applicable), as
determined from time to time.

          "Unqualified Tax Opinion" means an unqualified "will" opinion of
           -----------------------
Qualified Tax Counsel on which FMC may rely, in form and substance reasonably
acceptable to FMC (and in determining whether an opinion is reasonably
acceptable, FMC may consider, among other factors, the appropriateness of any
underlying assumptions and management's representations if used as a basis for
the opinion) to the effect that a transaction (taking into account all prior
transactions and agreements during the Restriction Period) will not disqualify
the Spin-Off from Tax-Free Status, assuming that the Spin-Off would have
qualified for Tax-Free Status if such transaction did not occur.

                                      -12-
<PAGE>

     Section 2.   Filing and Preparation of Tax Returns
                  -------------------------------------

           2.1    In General. (a) Except to the extent provided in Sections
2.2(c) and (d) of this Agreement, FMC shall have the sole and exclusive
responsibility for the preparation and filing of, and shall prepare and file or
cause to be prepared and filed: (1) all Consolidated Returns and (2) all
Combined Returns. Notwithstanding the immediately preceding sentence, Subsidiary
shall (subject to Section 2.2(b) of this Agreement) be responsible for preparing
and filing, and shall prepare and file or cause to be prepared and filed, any
Combined Return of Subsidiary or any Subsidiary Affiliate described in clause
(ii) or clause (iii)(A) of the definition of "Combined Return."

                  (b)  Except as otherwise provided in Section 2.1(a) and
Section 2.2 of this Agreement, Subsidiary shall have the sole and exclusive
responsibility for the preparation and filing of, and shall prepare and file or
cause to be prepared and filed, all Tax Returns of Subsidiary and any Subsidiary
Affiliate; provided that, without limiting FMC's rights contained elsewhere in
this Agreement or limiting Subsidiary's obligations under this Agreement, if FMC
owns (or at any time during the taxable period to which such Tax Return relates
owned) a Fifty-Percent or Greater Interest in the outstanding stock of
Subsidiary, Subsidiary shall, at the request of FMC, submit such Tax Returns to
FMC (no later than forty (40) Business Days prior to the due date for the filing
of such Tax Returns (taking into account applicable extensions)) for FMC's
review and approval, which approval shall not be unreasonably withheld.
Subsidiary shall, at its expense, promptly provide FMC with such information and
documentation as FMC shall reasonably request in connection with such review and
approval.

                  (c)  Within thirty (30) Business Days from the Separation
Date, Subsidiary shall provide Parent with a completed year-end reporting
package (containing such information and in such form as FMC shall direct) for
the period January 1, 2001 through the Separation Date.

                  (d)  Within thirty (30) Business Days from the Distribution
Date, Subsidiary shall provide Parent with a completed year-end reporting
package (containing such information and in such form as FMC shall direct) for
the period through the Distribution Date.

                  (e)  Within ten (10) Business Days of the end of the 2001
calendar year, Subsidiary shall provide Parent with such supplemental Tax
information (containing such information and in such form as FMC shall direct)
as Parent shall reasonably request for completion of its annual financial
statements.

           2.2    Manner of Preparing and Filing Tax Returns. (a) All Tax
Returns filed after the date of this Agreement by FMC, any FMC Affiliate,
Subsidiary or any Subsidiary Affiliate shall be (1) prepared in a manner that is
consistent with (i) Sections 5.1 and 5.2 of this Agreement and (ii) any Ruling
Documents, Supplemental Ruling Documents, Ruling or Supplemental Ruling, and (2)
filed on a timely basis (taking into account applicable extensions) by the party
responsible for such filing under Section 2.1 of this Agreement.

                  (b)  Subject to Sections 2.2(c) and (d) of this Agreement, FMC
shall have the exclusive right, in its sole discretion, with respect to any Tax
Return described in Sec-

                                      -13-
<PAGE>

tion 2.1(a) of this Agreement (without regard to which party is responsible for
preparing and filing such Tax Return) to determine (1) the manner in which such
Tax Return shall be prepared and filed, including the elections, methods of
accounting, positions, conventions and principles of taxation to be used and the
manner in which any Tax Item shall be reported, (2) whether any extensions may
be requested, (3) the elections that will be made or revoked by FMC, each FMC
Affiliate, Subsidiary, and each Subsidiary Affiliate on such Tax Return, (4)
whether any amended Tax Returns shall be filed, (5) whether any claims for
Refund shall be made, (6) whether any Refunds shall be paid by way of refund or
credited against any liability for the related Tax, and (7) whether to retain
outside firms to prepare or review such Tax Return, whom to retain for such
purpose and the scope of any such retention.

                  (c)  Subsidiary shall, at its expense, be responsible for
preparing (or causing to be prepared) and shall provide to FMC (or cause to be
so provided), all information that FMC shall reasonably request, in such form as
FMC shall reasonably request (including in the form of Pro Forma Subsidiary
Group Consolidated Returns and Pro Forma Subsidiary Group Combined Returns),
relating to the rights and obligations of FMC with respect to Taxes and Tax
Returns hereunder, including any such information so requested to enable FMC to
prepare the Tax Returns that it is required to prepare under Section 2.1 and
allocate Taxes as required by this Agreement (which information shall be
provided by Subsidiary promptly after it is requested but in any event no later
than forty (40) Business Days prior to the due date (taking into account
extensions) of such Tax Return). Without limiting the generality of the
foregoing, Subsidiary shall, at its expense, prepare (or cause to be prepared)
the portions of the Consolidated Returns and Combined Returns (including making
any related elections and submitting any consents) that relate exclusively to
Subsidiary or any Subsidiary Affiliate or the Technologies Business. Subsidiary
shall submit (1) any portions of the Tax Returns referred to in the immediately
preceding sentence or (2) any Combined Return referred to in the last sentence
of Section 2.1(a) of this Agreement to FMC at least forty (40) Business Days (or
such shorter period as agreed to by FMC) prior to the due date for the filing of
such Tax Returns (taking into account applicable extensions) for FMC's review
and approval. Subsidiary shall advise FMC, each time that it delivers the
portion of a Consolidated Return or Combined Return for which it is responsible
pursuant to this Section 2.2(c) or any Combined Return referred to in the last
sentence of Section 2.1(a) of this Agreement, that there is substantial
authority (within the meaning of Section 1.6662-4(d) of the Treasury
Regulations) with respect to United States federal, state and local Tax Returns
or similar appropriate authoritative support with respect to any Tax Return
other than United States federal, state and local Tax Returns for each of the
positions set forth on such portion of the Tax Return or such Combined Return.
Notwithstanding any other provisions of this Agreement, Subsidiary shall use
reasonable efforts to respond promptly to specific questions from FMC concerning
tax matters with respect to which Subsidiary could reasonable be expected to
have relevant information.

                  (d)  Subsidiary shall have the right to request that FMC file
an amended Tax Return or claim for Refund relating to the portion of any
Consolidated Return or Combined Return which Subsidiary is responsible for
preparing under Section 2.2(c) of this Agreement or any Tax Item on any other
Consolidated Return or Combined Return that relates exclusively to the
Technologies Business, but only if such amended Tax Return would include
aggregate adjustments relating to Subsidiary and Subsidiary Affiliates in excess
of $5 million of Tax. Subsidiary shall be responsible for preparing the portion
of any such amended Tax Return

                                      -14-
<PAGE>

or claim for Refund relating to (i) the portion of the Consolidated Return or
Combined Return which Subsidiary is responsible for preparing under Section
2.2(c) of this Agreement or (ii) the Tax Item on any other Consolidated Return
or Combined Return that relates exclusively to the Technologies Business.
Subsidiary shall submit such portion of the amended Tax Return or claim for
Refund to FMC no later than forty (40) Business Days prior to the due date for
filing such amended Tax Return or claim for Refund for FMC's review, approval
and determination as to whether to honor such request and file such amended Tax
Return or claim for Refund.

                  (e)  In the event that a Tax Item affects a Tax Return
described in Section 2.1(a) of this Agreement and also affects a Tax Return
described in Section 2.1(b) of this Agreement that is filed after the date of
this Agreement, the filing party shall conform the treatment of such Tax Item in
any Tax Return described in Section 2.1(b) of this Agreement to the treatment of
such Tax Item in the applicable Tax Return described in Section 2.1(a) of this
Agreement.

                  (f)  Without limiting the generality of the foregoing
provisions of this Section 2, consistent with Section 6038 of the Code and
Treasury Regulation 1.6038-2(j)(1), Parent and Subsidiary agree specifically
that Subsidiary shall be responsible for the filing of all Forms 5471 (including
all related schedules, statements and forms) for tax year 2001 for all foreign
Subsidiary Affiliates which were, after the Restructuring, directly or
indirectly owned by Subsidiary. Subsidiary shall provide to the Parent proof of
the filing of all such Forms 5471 on or before the due date of the Parent's Tax
return for the period which includes the Distribution Date.

           2.3    Agent. Subject to the other applicable provisions of this
Agreement, Subsidiary hereby irrevocably designates, and agrees to cause each
Subsidiary Affiliate to so designate, FMC as its sole and exclusive agent and
attorney-in-fact to take such action (including execution of documents) as FMC,
in its sole discretion, may deem appropriate in any and all matters (including
Proceedings) relating to any Tax Return described in Section 2.1(a) of this
Agreement. In furtherance of the immediately prior sentence, Subsidiary shall,
if requested by FMC, (i) execute (or cause to be executed) powers-of-attorney
and (ii) shall appoint (or cause to be appointed) one or more employees of FMC
or an FMC Affiliate as an officer of Subsidiary or a Subsidiary Affiliate.
Notwithstanding the foregoing, FMC shall not exercise its rights as attorney-in-
fact or permit any employee of FMC appointed as such an officer to exercise such
officer's rights in any manner that is inconsistent with the rights granted to
Subsidiary under this Agreement and nothing in this Section 2.3 shall limit
Subsidiary's rights under this Agreement.

     Section 3.   Payment of Taxes to Tax Authorities
                  -----------------------------------

           3.1    Federal Income Taxes. FMC shall pay (or cause to be paid) to
the Service all Federal Income Taxes with respect to any Consolidated Return due
and payable for all Pre-Deconsolidation Periods.

           3.2    Non-Federal Combined Taxes. FMC shall pay (or cause to be
paid) to the appropriate Tax Authorities all Non-Federal Combined Taxes with
respect to any Combined Return due and payable for all Pre-Deconsolidation
Periods, provided that, with respect to those Tax Returns described in clauses
(ii) and (iii) of the definition of "Combined Return," (1) FMC

                                      -15-
<PAGE>

shall pay (or cause to be paid) to the appropriate Tax Authorities all Taxes due
with respect to any Tax Return of FMC (or any FMC Affiliate) and (2) Subsidiary
shall pay (or cause to be paid) to FMC or the appropriate Tax Authorities all
Taxes due with respect to any Tax Return of Subsidiary (or any Subsidiary
Affiliate).

           3.3    Non-Federal Separate Taxes. Subsidiary shall pay (or cause to
be paid) to the appropriate Tax Authorities all Non-Federal Separate Taxes of
Subsidiary or any Subsidiary Affiliate and shall have no claim against FMC or
any FMC Affiliate for any such Non-Federal Separate Taxes. FMC shall pay (or
cause to be paid) to the appropriate Tax Authorities all Non-Federal Separate
Taxes of FMC or any FMC Affiliate and shall have no claim against Subsidiary or
any Subsidiary Affiliate for any such Non-Federal Separate Taxes.

           3.4    Other Federal Taxes. The parties shall each pay (or cause to
be paid) to the appropriate Tax Authorities all of their respective Federal
Taxes (excluding Federal Income Taxes for Pre-Deconsolidation Periods which are
governed by Section 3.1 of this Agreement).

     Section 4.   Allocation of Taxes
                  -------------------

           4.1    Subsidiary Liability for Federal Income Taxes and Non-Federal
Combined Taxes.  Except as otherwise provided in Sections 9, 10, 11 and 12 of
this Agreement, for each Pre-Deconsolidation Period, Subsidiary shall be liable
for and shall pay to FMC an amount equal to the sum of the Subsidiary Group
Federal Income Tax Liability and the Subsidiary Group Combined Tax Liability for
such taxable period.

           4.2    Subsidiary Group Federal Income Tax Liability. Except as
otherwise provided in Sections 9, 10, 11 and 12 of this Agreement, with respect
to each Pre-Deconsolidation Period, the Subsidiary Group Federal Income Tax
Liability for such taxable period shall be the Subsidiary Group's liability for
Federal Income Taxes for such taxable period, as determined on a Pro Forma
Subsidiary Group Consolidated Return prepared:

                  (a)  on a basis consistent (including consistency with the
manner and principles of preparation contained in Section 2) with the
preparation of the Consolidated Return for such period, determined by including
only Tax Items of members of the Subsidiary Group which are included in the
Consolidated Return and by allocating Tax Assets to the Subsidiary Group to the
extent that the Tax Asset was created by a member of the Subsidiary Group and
such Tax Asset was Actually Utilized on the relevant Consolidated Return; and

                  (b)  applying the highest statutory marginal corporate income
Tax rate in effect for such taxable period (or portion thereof).

           4.3    Subsidiary Group Combined Tax Liability. Except as otherwise
provided in Sections 9, 10, 11 and 12 of this Agreement, with respect to any
Pre-Deconsolidation Period, the Subsidiary Group Combined Tax Liability shall be
the sum for such taxable period of the Subsidiary Group's liability for each
Non-Federal Combined Tax, as determined on Pro Forma Subsidiary Group Combined
Returns prepared in a manner consistent with the principles and procedures set
forth in Section 4.2 hereof.  The Pro Forma Subsidiary Group Combined Returns
relating to Tax Returns described in clauses (ii) and (iii) of the definition of
"Combined

                                      -16-
<PAGE>

Return" shall be prepared by including only Tax Items and Tax Assets relating to
or arising from the Technologies Business.

           4.4    Cooperation. (a) Subsidiary shall prepare (or, if requested by
FMC, Subsidiary and FMC shall jointly prepare) any Pro Forma Subsidiary Group
Consolidated Returns and Pro Forma Subsidiary Group Combined Returns. FMC and
Subsidiary agree to cooperate in good faith in connection with the preparation
of such pro forma Tax Returns and agree to make reasonably available any
documents, information or employees in connection therewith.

                  (b)  The Pro Forma Subsidiary Group Consolidated Returns and
Pro Forma Subsidiary Group Combined Returns shall be completed no later than
fifty (50) Business Days following the date on which the related Consolidated
Return or Combined Return, as the case may be, is filed with the appropriate Tax
Authority. Any disputes relating to the reporting of any Tax Item on the pro
forma Tax Returns that have not been resolved within the fifty (50) Business Day
period referred to in the immediately preceding sentence shall be referred to
the Independent Entity, in accordance with the principles and procedures set
forth in Section 8 of this Agreement, but nothing in this Section 4.4 shall
limit any of FMC's rights under this Agreement, including FMC's right to approve
certain Tax Returns and to require compliance with Section 2.2(b) and the other
terms of this Agreement.

           4.5    Tax Sharing Installment Payments. (a) Federal Income Taxes.
Not later than five (5) Business Days prior to each Estimated Tax Installment
Date with respect to any Pre-Deconsolidation Period (including the Straddle
Period), the parties shall determine under the principles of Section 6655 of the
Code the estimated amount of the related installment of the Subsidiary Group
Federal Income Tax Liability. Subsidiary shall pay to FMC no later than two (2)
Business Days before such Estimated Tax Installment Date the amount thus
determined.

                  (b)  Non-Federal Combined Taxes. (1) FMC Tax Returns. FMC
shall, in connection with any installment payment (payable with respect to any
Combined Return filed by FMC) with respect to Non-Federal Combined Taxes for any
Pre-Deconsolidation Period, determine the estimated amount of the related
installment of the Subsidiary Group Combined Tax Liability. Within the first ten
(10) Business Days of any month, FMC may provide Subsidiary with a written
statement setting forth amounts FMC believes are owed by Subsidiary in
connection with any installment payments with respect to Non-Federal Combined
Taxes made by FMC for the immediately preceding month and any other month for
which a statement has not previously been provided by FMC. Subsidiary shall pay
the amounts set forth on any statement within five (5) Business Days following
the receipt of such statement.

           (2)    Subsidiary Tax Returns. Subsidiary shall, in connection with
any installment payment (payable with respect to any Combined Return prepared
and filed by Subsidiary) with respect to Non-Federal Combined Taxes for any Pre-
Deconsolidation Period, consistent with past practice, determine the estimated
amount of the related installment of the Subsidiary Group Combined Tax
Liability. Within the first ten (10) Business Days of any month, Subsidiary may
provide FMC with a written statement setting forth amounts Subsidiary believes
are owed by FMC in connection with any installment payments with respect to Non-
Federal Combined Taxes made by Subsidiary for the immediately preceding month
and any other month for which a statement has not previously been provided by
Subsidiary. The amount payable by

                                      -17-
<PAGE>

FMC pursuant to the immediately preceding sentence shall equal the aggregate
amount of the installment payment made by Subsidiary less the estimated amount
of the Subsidiary Group Combined Tax Liability related to such installment as
determined in the first sentence of this Section 4.5(b)(2). FMC shall pay the
amounts set forth on any statement within five (5) Business Days following the
receipt of such statement.

           4.6    Tax Sharing True-Up Payments. (a) Federal Income Taxes. Not
later than fifteen (15) Business Days following the completion of any Pro Forma
Subsidiary Group Consolidated Return, Subsidiary shall pay to FMC, or FMC shall
pay to Subsidiary, as appropriate, an amount equal to the difference, if any,
between the Subsidiary Group Federal Income Tax Liability for the Pre-
Deconsolidation Period and the aggregate amount paid by Subsidiary with respect
to such period under Section 4.5(a) of this Agreement.

                  (b)  Non-Federal Combined Taxes.  Not later than fifteen (15)
Business Days following the completion of any Pro Forma Subsidiary Group
Combined Return, Subsidiary shall pay to FMC, or FMC shall pay to Subsidiary, as
appropriate, an amount equal to the difference, if any, between the Subsidiary
Group Combined Tax Liability for the Pre-Deconsolidation Period and the amounts
paid by Subsidiary with respect to such period under Sections 4.5(b)(1) and (2)
of this Agreement.  For purposes of this Section 4.6(b), the amounts paid by
Subsidiary under (i) Section 4.5(b)(1) shall be the amounts paid to FMC and (ii)
Section 4.5(b)(2) shall be the amounts paid to the relevant Tax Authority less
any amounts received from FMC.

           4.7    Redetermination Amounts. Except as otherwise provided in
Sections 9, 10, 11 and 12 of this Agreement, for any Pre-Deconsolidation Period,
in the event of a redetermination of any Tax Item of any member of a
Consolidated Group or Combined Group as a result of a Final Determination, the
filing of a claim for Refund or the filing of an amended Tax Return pursuant to
which Taxes are paid to a Tax Authority or a Refund of Taxes is received from a
Tax Authority, FMC and Subsidiary shall prepare jointly, in accordance with the
principles and procedures set forth in this Section 4, revised Pro Forma
Subsidiary Group Consolidated Returns and/or revised Pro Forma Subsidiary Group
Combined Returns, as appropriate, to reflect the redetermination of such Tax
Item as a result of such Final Determination, filing of a claim for Refund or
filing of an amended Tax Return. Following the preparation of such revised pro
forma Tax Returns, FMC's and Subsidiary's payment obligations shall be
redetermined. A party hereto that is liable pursuant to this Section 4.7 to make
a payment by reason of a redetermination to another party hereto shall make such
payment with interest thereon, computed at the Underpayment Rate, from the due
date for filing such Tax Return for which the Tax liabilities were redetermined
until the date of payment pursuant to this Section 4.7 (but without duplication
of the amount of interest included in the Tax liabilities as so redetermined).
Such payment shall be made no later than five (5) Business Days prior to the
date that payment is due to the relevant Tax Authority by reason of such
redetermination.

           4.8    Payment of Taxes for Post-Deconsolidation Periods.  Except as
otherwise provided in this Agreement, FMC shall pay or cause to be paid all
Taxes and shall be entitled to receive and retain all Refunds of Taxes with
respect to Tax Returns relating to Post-Deconsolidation Periods for which FMC
has filing responsibility, including filing responsibility under this Agreement.
Except as otherwise provided in this Agreement, Subsidiary shall pay or

                                      -18-
<PAGE>

cause to be paid all Taxes and shall be entitled to receive and retain all
Refunds of Taxes with respect to Tax Returns relating to Post-Deconsolidation
Periods for which Subsidiary has filing responsibility, including under this
Agreement.

           4.9    Special Rules For Allocating Taxes.  (a) Closing of Tax Years.
For U.S. federal Income Tax purposes, the taxable year of the Subsidiary Group
shall end as of the close of the Deconsolidation Date with respect to Subsidiary
and, with respect to all other Income Taxes, FMC (or the appropriate member of
the FMC Group) and Subsidiary (or the appropriate member of the Subsidiary
Group) shall, unless prohibited by applicable law, take all action necessary or
appropriate to close the taxable period of the members of the Subsidiary Group
as of the close of such Deconsolidation Date.  Neither any member of the FMC
Group nor any member of the  Subsidiary Group shall take any position
inconsistent with the preceding sentence on any Income Tax Return.  If a Person
is permitted but not required under applicable state, local or foreign income
tax laws to treat the Deconsolidation Date as the last day of a taxable period,
then the parties shall cause such Person to treat that day as the last day of a
taxable period.

                  (b)  Partnership and Flowthrough Entities. In the case of any
Income Tax Liability of any member of the FMC Group or the Subsidiary Group
which is attributable to the ownership by such member of an equity interest in a
partnership or other "flowthrough" entity for Income Tax purposes, such
allocation shall be made as if the taxable period of such partnership or other
"flowthrough" entity ended as of the close of the Deconsolidation Date; provided
that to the extent that the information necessary to compute such allocation on
the basis of an interim closing of the books of such "flowthrough" entity is not
available to FMC or Subsidiary, such allocation shall be made between the period
ending on the Deconsolidation Date and the period after the Distribution Date in
proportion to the number of days in each such period.

           4.10   Separate Agreements. Notwithstanding any other provision of
this Agreement, in the event that there is a conflict between the provisions of
this Agreement governing the payment or allocation of Taxes and any separate
written agreement entered into in connection with the Restructuring (including
the Separation Agreement) regarding the payment or allocation of Taxes, such
separate agreement shall control.

     Section 5.   Tax Attributes
                  --------------

           5.1    Allocation of Tax Items. (a) In General. All Tax computations
for (i) any Pre-Deconsolidation Period ending on a Deconsolidation Date, (ii)
the immediately following taxable period of Subsidiary or any Subsidiary
Affiliate and (iii) any Straddle Period, shall be made pursuant to the
principles of Section 1.1502-76(b) of the Treasury Regulations or of a
corresponding provision under the laws of other jurisdictions and, to the extent
possible, in a manner consistent with the principles set forth in Section 4.2(a)
of this Agreement.

                  (b)  Reattribution. In the event of a Deconsolidation, FMC
may, at its option, elect to reattribute to itself certain Tax Items of the
Subsidiary Group pursuant to Section 1.1502-20(g) of the Treasury Regulations.
If FMC makes such election, Subsidiary shall comply with the requirements of
Section 1.1502-20(g)(5) of the Treasury Regulations.

                                      -19-
<PAGE>

           5.2    Allocation of Tax Assets.  Subject to Section 5.1(b), to the
extent permitted by applicable law, following any Deconsolidation, the relevant
Tax Assets with respect to the Consolidated Group or Combined Group, as the case
may be, shall be allocated in accordance with the principles and procedures
applied in determining the allocation of Tax Assets between Parent and
Subsidiary for purposes of the financial statements included in the Form S-1
filed with the U.S. Securities and Exchange Commission in connection with the
IPO.

     Section 6.   Additional Obligations
                  ----------------------

           6.1    Provision of Information and Mutual Cooperation. (a) FMC shall
(and shall cause the FMC Affiliates) and Subsidiary shall (and shall cause the
Subsidiary Affiliates) to, (1) furnish to the other in a timely manner such
information, documents and other materials as the other may reasonably request
for purposes of (i) preparing any Tax Return (or pro forma Tax return prepared
in accordance with Section 4 hereof) or portion thereof for which the other has
responsibility for preparing under this Agreement, (ii) contesting or defending
any Proceeding, and (iii) making any determination or computation necessary or
appropriate under this Agreement, (2) make its employees available to the other
to provide explanations of documents and materials and such other information as
the other may reasonably request in connection with any of the matters described
in subclauses (i), (ii) and (iii) of clause (1) above, and (3) reasonably
cooperate in connection with any Proceeding.

                  (b)  FMC shall (and shall cause the FMC Affiliates to) and
Subsidiary shall (and shall cause the Subsidiary Affiliates to) retain and
provide on reasonable demand books, records, documentation or other information
relating to any Tax Return or Proceeding, with respect to any taxable period in
which FMC owns a Fifty Percent or Greater Interest in the outstanding stock of
Subsidiary, until the later of (i) the expiration of the applicable statute of
limitations (after giving effect to any extension, waiver, or mitigation
thereof) and (ii) in the event any claim is made under this Agreement or by any
Tax Authority for which such information is relevant, until a Final
Determination is reached with respect to such claim. Notwithstanding anything to
the contrary included in this Agreement, the parties will comply in all respects
with the requirements of any applicable record retention agreement with the
Service or other Tax Authority.

                  (c)  Notwithstanding any other provision of this Agreement, no
member of the FMC Group shall be required to provide Subsidiary or any
Subsidiary Affiliate access to or copies of (1) any Tax information that relates
exclusively to any member of the FMC Group, (2) any Tax information as to which
any member of the FMC Group is entitled to assert the protection of any
Privilege, or (3) any Tax information as to which any member of the FMC Group is
subject to an obligation to maintain the confidentiality of such information.
FMC shall use reasonable efforts to separate any such information from any other
information to which Subsidiary is entitled to access or to which Subsidiary is
entitled to copy under this Agreement, to the extent consistent with preserving
its rights under this Section 6.1(c).

                  (d)  Notwithstanding any other provision of this Agreement,
with respect to Tax information that relates to any taxable period in which
Subsidiary is no longer included in the FMC Consolidated Group and no Combined
Return is filed, no member of the Subsidiary Group shall be required to provide
FMC or any FMC Affiliate access to or copies of (1)

                                      -20-
<PAGE>

any Tax information as to which any member of the Subsidiary Group is entitled
to assert the protection of any Privilege or (2) any Tax information as to which
any member of the Subsidiary Group is subject to an obligation to maintain the
confidentiality of such information. Subsidiary shall use reasonable efforts to
separate any such information from any other information to which FMC is
entitled to access or to which FMC is entitled to copy under this Agreement, to
the extent consistent with preserving its rights under this Section 6.1(d).

                  (e)  FMC agrees to notify Subsidiary in writing within ten
(10) Business Days of any sale by FMC or any FMC Affiliate of Common Stock
following the IPO.

                  (f)  Notwithstanding any other provision of this Agreement,
all books, records, documentation or other information relating to Taxes for any
period (or portion thereof) ending on or before the Deconsolidation Date of (i)
FMC or any FMC Affiliate and (ii) Subsidiary or any Subsidiary Affiliate shall
be the property of, and shall be retained by, FMC; provided, however, that
                                                   --------  -------
Subsidiary shall be permitted, at its own expense, to obtain copies of any
books, records, documentation or other information relating to any Pre-
Deconsolidation Period Tax Return of Subsidiary or any Subsidiary Affiliate
other than any books, records, documentation or other information described in
Section 6.1(c).

           6.2    Indemnification. (a) Failure to Pay. FMC and each FMC
Affiliate shall jointly and severally indemnify Subsidiary, each Subsidiary
Affiliate and each of their respective Representatives, and hold them harmless
from and against any Tax or Losses that are attributable to, or results from the
failure of FMC or any FMC Affiliate to make any payment required to be made
under this Agreement. Subsidiary and each Subsidiary Affiliate shall jointly and
severally indemnify FMC, each FMC Affiliate and each of their respective
Representatives, and hold them harmless from and against any Tax or Losses that
are attributable to, or results from, the failure of Subsidiary or any
Subsidiary Affiliate to make any payment required to be made under this
Agreement.

                  (b)  Inaccurate or Incomplete Information.  FMC and each FMC
Affiliate shall jointly and severally indemnify Subsidiary, each Subsidiary
Affiliate and each of their respective Representatives, and hold them harmless
from and against any Tax or Loss attributable to the negligence of FMC or any
FMC Affiliate in supplying Subsidiary or any Subsidiary Affiliate with
inaccurate or incomplete information, in connection with the preparation of any
Tax Return or any Proceeding.  Subsidiary and each Subsidiary Affiliate shall
jointly and severally indemnify FMC, each FMC Affiliate and their respective
Representatives, and hold them harmless from and against any Tax or Losses
attributable to the negligence of Subsidiary or any Subsidiary Affiliate in
supplying FMC or any FMC Affiliate with inaccurate or incomplete information, in
connection with the preparation of any Tax Return or any Proceeding.

           6.3    Tax Consequences of Payments. (a) Tax Characterization of
Payments. For all Tax purposes and notwithstanding any other provision of this
Agreement, to the extent permitted by applicable law, the parties hereto shall
treat any payment made pursuant to this Agreement (other than any payment made
in satisfaction of an intercompany obligation) as a capital contribution or
dividend distribution, as the case may be, immediately prior to the IPO Date
and, accordingly, as not includible in the taxable income of the recipient. If,
as a result of a Final Determination, it is determined that the receipt or
accrual of any payment made under this

                                      -21-
<PAGE>

Agreement is taxable to the Indemnified Party, the Indemnifying Party of this
Agreement shall pay to the Indemnified Party an amount equal to any increase in
the Income Taxes of the Indemnified Party as a result of receiving the payment
from the Indemnifying Party (grossed up to take into account such payment, if
applicable).

                  (b)  Adjustments to Payments.  Any Indemnified Party that has
received a payment under this Agreement from an Indemnifying Party with respect
to any Losses or Taxes suffered or incurred by the Indemnified Party ( an
"Indemnified Loss") shall pay to such Indemnifying Party an amount equal to any
"Tax Saving Amount" Actually Utilized by the Indemnified Party promptly after it
is Actually Realized, but only if and to the extent that such Tax Saving Amount
is Actually Realized within five (5) years of the date hereof.  For purposes of
this Section 6.3(b), the Tax Saving Amount shall equal the amount by which the
Income Taxes of the Indemnified Party or any of its affiliates are reduced
(including, without limitation, through the receipt of a Refund, credit or
otherwise), plus any related interest received from a Tax Authority, as a result
of claiming as a deduction or offset on any relevant Tax Return amounts
attributable to an Indemnified Loss (the "Indemnifiable Loss Deduction").

                  (c)  Reporting of Indemnifiable Loss.  In the event that an
Indemnified Party incurs an Indemnified Loss, such Indemnified Party shall claim
as a deduction or offset on any relevant Tax Return (including, without
limitation, any claim for Refund) such Indemnified Loss to the extent such
position is supported by "substantial authority" (within the meaning of Section
1.6662-4(d) of the Treasury Regulations) with respect to United States federal,
state and local Tax Returns or has similar appropriate authoritative support
with respect to any Tax Return other than United States federal, state and local
Tax Returns.  The Indemnified Party shall have primary responsibility for the
preparation of its Tax Returns and reporting thereon such Indemnifiable Loss
Deduction; provided, that the Indemnified Party shall consult with, and provide
the Indemnifying Party with a reasonable opportunity to review and comment on
the portion of the Indemnified Party's Tax Return relating to the Indemnified
Loss.  If a dispute arises between the Indemnified Party and the Indemnifying
Party as to whether there is "substantial authority" (with respect to United
States federal, state and local Tax Returns) or similar appropriate
authoritative support (with respect to any Tax Return other than United States
federal, state and local Tax Returns) for the claiming of an Indemnifiable Loss
Deduction, such dispute shall be resolved in accordance with the principles and
procedures set forth in Section 8 of this Agreement.  Both FMC and Subsidiary
shall (and shall cause its respective affiliates to) act in good faith to
coordinate their Tax Return filing positions with respect to the taxable periods
that include an Indemnifiable Loss Deduction.  There shall be an adjustment to
any Tax Saving Amount calculated under Section 6.3(b) hereof in the event of any
Proceeding which results in a Final Determination that increases or decreases
the amount of the Indemnifiable Loss Deduction reported on any relevant Tax
Return of the Indemnified Party.  The Indemnified Party shall promptly inform
the Indemnifying Party of any such Proceeding and shall attempt in good faith to
sustain the Indemnifiable Loss Deduction at issue in the Proceeding.  If a
written notice of a Final Determination in respect of an Indemnifiable Loss
Deduction is received within five (5) years of the date hereof, the Indemnified
Party shall redetermine the Tax Saving Amount attributable to the Indemnifiable
Loss Deduction under Section 6.3(b) hereof, taking into account the Final
Determination (the "Restated Tax Saving Amount").  If the Restated Tax Saving
Amount is greater than the Tax Saving Amount, the Indemnified Party shall
promptly pay the Indemnifying Party an amount equal to the difference between
such amounts.  If the Restated

                                      -22-
<PAGE>

Tax Saving Amount is less than the Tax Saving Amount, then the Indemnifying
Party shall promptly pay the Indemnified Party an amount equal to the difference
between such amounts.

           6.4    Interest. Unless a different rate of interest is provided for
in this Agreement, payments pursuant to this Agreement that are not made within
the period prescribed in this Agreement or, if no period is prescribed, within
fifteen (15) Business Days after demand for payment is made (the "Payment
Period") shall bear interest for the period from and including the date
immediately following the last date of the Payment Period through and including
the date of payment at a per annum rate equal the Prime Rate. Such interest will
be payable at the same time as the payment to which it relates and shall be
calculated based on a year of 365 or 366 days, as appropriate, for the actual
number of days for which due.

           6.5    Stock Options and Restricted Stock

                  (a)  In General. Notwithstanding any contrary provision
contained herein, the parties hereto agree that FMC shall be entitled to any Tax
Benefit arising by reason of exercises of Options to purchase shares of FMC
stock, and that Subsidiary shall be entitled to any Tax Benefit arising by
reason of exercises of options to purchase shares of Subsidiary stock. In
addition, FMC shall be entitled to any Tax Benefit arising by reason of the
lapse of any restrictions with respect to shares of FMC stock, Subsidiary stock
or other property subject to a substantial risk of forfeiture (within the
meaning of Section 83 of the Code) held by an employee of FMC, and Subsidiary
shall be entitled to any Tax Benefit arising by reason of the lapse of any
restrictions with respect to shares of Subsidiary stock, FMC stock or other
property subject to a substantial risk of forfeiture (within the meaning of
Section 83 of the Code) held by an employee of Subsidiary. The parties hereto
agree to report all Tax deductions with respect to stock options and other
equity issued to their employees consistently with this Section 6.5(a), to the
extent permitted by law.

                  (b)  Notices, Withholding, Reporting. FMC shall promptly
notify Subsidiary of any event giving rise to income to any Subsidiary Group
employees or former employees in connection with exercises of options to
purchase shares of FMC stock, or the lapse of any restrictions with respect to
shares of FMC stock or other property subject to a substantial risk of
forfeiture (within the meaning of Section 83 of the Code). If required by law,
Subsidiary shall withhold applicable Taxes and satisfy applicable Tax reporting
obligations in connection therewith.

                  (c)  Adjustments. If Subsidiary or any Subsidiary Affiliate
receives any Tax Benefit to which FMC is entitled under Section 6.5(a) of this
Agreement, Subsidiary shall pay the amount of such Tax Benefit to FMC. If FMC or
any FMC Affiliate receives any Tax Benefit to which Subsidiary is entitled under
Section 6.5(a) of this Agreement, FMC shall pay the amount of such Tax Benefit
to Subsidiary.

     Section 7.   Proceedings
                  -----------

           7.1    In General. (a) Subject to Section 7.1(b) of this Agreement,
FMC shall have the exclusive right, in its sole discretion, to control, contest,
and represent the interests of FMC, any FMC Affiliate, Subsidiary or any
Subsidiary Affiliate in any Proceeding relating to

                                      -23-
<PAGE>

any claim that the Spin-Off does not have Tax-Free Status and/or any Tax Return
described in Section 2.1(a) of this Agreement and to resolve, settle or agree to
any deficiency, claim or adjustment proposed, asserted or assessed in connection
with or as a result of any such Proceeding. FMC's rights shall extend to any
matter pertaining to the management and control of any Proceeding, including,
without limitation, execution of waivers, choice of forum, scheduling of
conferences and the resolution of any Tax Item. Subsidiary shall have the right
to participate in that part of any Proceeding relating to a claim that the Spin-
Off and/or the Internal Distribution does not have Tax-Free Status, but only if
Subsidiary (i) satisfies the terms and conditions contained in Section
10.1(a)(1)(iv)(b) and (ii) acknowledges liability to FMC in writing for the full
amount at stake in such Proceeding.

                  (b)  Subsidiary shall have the right to control, contest and
represent the interests of Subsidiary or any Subsidiary Affiliate in any
Proceeding to the extent relating directly and exclusively to any Tax Item
included on the portion of any Consolidated Return or Combined Return which
Subsidiary is responsible for preparing pursuant to Section 2.2(c) of this
Agreement in which the amount of the Tax liability in issue exceeds $500,000 and
to resolve, settle or agree to any deficiency, claim or adjustment proposed,
asserted or assessed in connection with or as a result of such Proceeding;
provided that, the entering into of (or rejection of) any such resolution,
settlement or agreement or any decision in connection with (including the
entering into of or rejection of) any judicial or administrative proceeding
relating to Taxes shall be subject to the review and approval of FMC, which
approval shall not be unreasonably withheld.

                  (c)  Subsidiary shall have the exclusive right, in its sole
discretion, to control, contest, and represent the interests of Subsidiary or
any Subsidiary Affiliate in any Proceeding relating to any Tax Return described
in Section 2.1(b) of this Agreement and to resolve, settle, or agree to any
deficiency, claim or adjustment proposed, asserted or assessed in connection
with or as a result of any such Proceeding; provided that, if the Proceeding
relates to a taxable period in which FMC at any time owned a Fifty-Percent or
Greater Interest in the outstanding stock of Subsidiary, the entering into of
(or rejection of) any such resolution, settlement or agreement or any decision
in connection with (including the entering into of or rejection of) any judicial
or administrative proceeding relating to Taxes shall be subject to FMC's review
and approval, which approval shall not be unreasonably withheld.

                  (d)  In addition to the parties' obligations under Section 6.1
of this Agreement, (i) Subsidiary shall, and shall cause is Affiliates to,
cooperate fully with FMC in contesting or defending any Proceeding with respect
to Pre-Deconsolidation Period Taxes, including, without limitation, by
furnishing to FMC in a timely manner such information, documents or other
materials related to the Technologies Business as FMC may reasonably request and
(ii) FMC shall, and shall cause its Affiliates to, cooperate with Subsidiary in
contesting or defending (x) any Proceeding with respect to Pre-Deconsolidation
Period Non-Federal Taxes and (y) any Proceeding with respect to the Post-
Deconsolidation Period to the extent such Proceeding relates to any Pre-
Deconsolidation Period deferred tax item.

           7.2    Notice. If FMC or any member of the FMC Group receives written
notice of or relating to, any Proceeding from a Tax Authority that asserts,
proposes or recommends a deficiency, claim or adjustment that, if sustained,
would result in the redetermination of a Tax

                                      -24-
<PAGE>

Item of a member of the Subsidiary Group, FMC shall promptly provide a copy of
such notice to Subsidiary (but in no event later than ten (10) Business Days
following the receipt of such notice). If Subsidiary or any member of the
Subsidiary Group receives written notice of, or relating to, any Proceeding from
a Tax Authority with respect to a Tax Return described in Section 2.l(a) of this
Agreement, Subsidiary shall promptly provide a copy of such notice to FMC (but
in no event later than ten (10) Business Days following the receipt of such
notice).

           7.3    Failure to Notify.  The failure of FMC or Subsidiary to notify
the other of any matter relating to a particular Tax for a taxable period or to
take any action specified in this Agreement shall not relieve such other party
of any liability and/or obligation which it may have under this Agreement with
respect to such Tax for such taxable period except to the extent that such other
party's rights hereunder are materially prejudiced by such failure.

           7.4    Remedies.  Subsidiary agrees that no claim against FMC and no
defense to Subsidiary's liabilities to FMC under this Agreement shall arise from
the resolution by FMC of any deficiency, claim or adjustment relating to the
redetermination of any Tax Item of FMC or a FMC Affiliate.

           7.5    Timing Differences.  Except as otherwise provided under this
Agreement, if, pursuant to a Final Determination, a party to this Agreement
suffers a Tax Detriment and, as a result, the other party to this Agreement
obtains a corresponding Tax Benefit, and such Tax Detriment is not otherwise
compensated under this Agreement, then the party obtaining such Tax Benefit
shall make a payment to the other party in an amount equal to such Tax Benefit,
but only to the extent such Tax Benefit is Actually Realized within five (5)
years of such Final Determination.

           7.6    Carrybacks. Except to the extent otherwise consented to by FMC
or prohibited by applicable law, Subsidiary shall elect to relinquish, waive or
otherwise forgo all Carrybacks. In the event that Subsidiary (or the appropriate
member of the Subsidiary Group) is prohibited by applicable law to relinquish,
waive or otherwise forgo a Carryback (or FMC consents thereto), (i) FMC shall
cooperate with Subsidiary, at Subsidiary's expense, in seeking from the
appropriate Tax Authority such Refund as reasonably would result from such
Carryback, and (ii) Subsidiary shall be entitled to any Tax Benefit Actually
Realized by a member of the FMC Group (including any interest thereon received
from such Tax Authority) within five (5) years of the date of such Carryback, to
the extent that (x) such Tax Benefit is directly attributable to such Carryback
and (y) such Tax Benefit would not have been Actually Utilized but for such
Carryback, within seven (7) Business Days after such Tax Benefit is Actually
Realized; provided, however, that Subsidiary shall indemnify and hold the
          --------  -------
members of the FMC Group harmless from and against any and all collateral tax
consequences resulting from or caused by any such Carryback, including (but not
limited to) the loss or postponement of benefit from the use of Tax Attributes
generated by a member of the FMC Group or an Affiliate thereof and (x) that
expire unutilized, but would have been utilized but for such Carryback, or (y)
the use of which is postponed to a later taxable period than the taxable period
in which such Tax Attributes otherwise would have been utilized but for such
Carryback.  If there is a Final Determination that results in any change to or
adjustment of a Tax Benefit Actually Utilized by a member of the FMC Group that
is directly attributable to a Carryback, then FMC (or its designee) shall make a
payment to Subsidiary, or Subsidiary shall make a payment to FMC (or its
designee), as may be necessary to

                                      -25-
<PAGE>

adjust the payments between Subsidiary and FMC (or its designee) to reflect the
payments that would have been made under this Section 7.6 had the adjusted
amount of such Tax Benefit been taken into account in computing the payments due
under this Section 7.6. For the avoidance of doubt, in the event that FMC or any
FMC Affiliate, on the one hand, and Subsidiary or any Subsidiary Affiliate, on
the other hand, both have Carrybacks applicable to the same period, the
determination of the Tax Benefit attributable to the Carryback of Subsidiary or
any Subsidiary Affiliate will be made after first giving effect to the Carryback
of FMC or any FMC Affiliate.

     Section 8.   Dispute Resolution.  In the event that FMC or any FMC
                  ------------------
Affiliate, as the case may be, on the one hand, and Subsidiary or any Subsidiary
Affiliate, as the case may be, on the other hand, disagree as to the amount or
calculation of any payment to be made under this Agreement, or the
interpretation or application of any provision under this Agreement, the parties
shall attempt in good faith to resolve such dispute.  If such dispute is not
resolved within sixty (60) Business Days following the commencement of the
dispute, FMC and Subsidiary shall jointly retain a tax attorney that is a member
of a nationally recognized law firm or independent public accounting firm, which
firm is independent of both parties (the "Independent Entity"), to resolve the
dispute.  The Independent Entity shall act as an arbitrator to resolve all
points of disagreement and its decision shall be final and binding upon all
parties involved.  Following the decision of the Independent Entity, FMC, the
FMC Affiliates, Subsidiary and the Subsidiary Affiliates shall each take or
cause to be taken any action necessary to implement the decision of the
Independent Entity.  The fees and expenses relating to the Independent Entity
shall be borne equally by FMC and Subsidiary.

     Section 9.   IPO
                  ---

           9.1    IPO Related Items.  (a)  Liability for Restructuring Taxes,
Deconsolidation Taxes and Other Foreign Restructuring Taxes.  Notwithstanding
any other provision of this Agreement (other than Section 9.l(b) hereof) and
except as provided in any separate written agreement between the parties entered
into in connection with the Restructuring (including the Separation Agreement),
(i) FMC shall be responsible for the payment of, and shall indemnify and hold
Subsidiary harmless from and against, any Deconsolidation Taxes and (ii)
responsibility for the payment of any Restructuring Taxes or Other Foreign
Restructuring Taxes shall be allocated in the manner provided in the Separation
Agreement.

                  (b)  Liability for Undertaking Certain Actions.
Notwithstanding Section 9.1(a) of this Agreement, Subsidiary and each Subsidiary
Affiliate shall be jointly and severally responsible for, and shall indemnify
and hold FMC harmless from and against, any Restructuring Taxes that are
attributable to, or result from, (i) any action taken by Subsidiary or any
Subsidiary Affiliate that was prohibited by this Agreement or was not
contemplated by the parties in connection with the Restructuring (including,
without limitation, by taking any action not contemplated in connection with
obtaining the Ruling or a Supplemental Ruling, or any opinions, rulings,
agreements or written advice relating to foreign transfers) or (ii) the failure
by Subsidiary or any Subsidiary Affiliate to take any action that Subsidiary is
responsible for taking under this Agreement, the Separation Agreement or any
other agreement related to the Restructuring or the IPO (including, without
limitation, by failing to make an election or enter into a transaction
specifically required in connection with obtaining a ruling from any Tax
Authority). Each of the parties hereto agrees to act in good faith and without
negligence in connection with the

                                      -26-
<PAGE>

Tax reporting of and all other aspects related to the Tax consequences of the
Restructuring, any Deconsolidation and any Secondary Restructuring and shall be
responsible for any Taxes or Losses arising from any failure to act in good
faith or any negligent act or omission with respect thereto.

           9.2    Tax Reporting of IPO Related Items.  (a) Restructuring Taxes.
Any Tax Return (or portion thereof) that includes any Tax Item resulting from
the Restructuring shall be prepared and filed by the party responsible for
preparing (or causing to be prepared) and filing such Tax Return (under Sections
2.1 and 2.2 of this Agreement); provided that, notwithstanding any other
provision of this Agreement, if Subsidiary is the party responsible for
preparing any such Tax Return (or portion thereof) (each a "Subsidiary IPO Tax
Return"), Subsidiary shall provide to FMC, no later than twenty (20) Business
Days following the IPO Date, a written list of those Subsidiary IPO Tax Returns
that Subsidiary reasonably believes could result in the imposition of a Tax
liability of more than $10,000 for which FMC will be responsible pursuant to
this Section 9.  Within twenty (20) Business Days following the receipt of such
list, FMC shall provide a written list to Subsidiary of those Subsidiary IPO Tax
Returns that FMC wishes to review.  Subsidiary shall provide any such Subsidiary
IPO Tax Returns (or portions thereof) to FMC (no later than forty-five (45)
Business Days (or such shorter period as agreed to by FMC) prior to the due date
for the filing of such Tax Return (taking into account applicable extensions)),
for FMC's review and approval, which approval, to the extent it relates to any
Tax Item resulting from, or arising out of, the Restructuring may be withheld by
FMC in its sole discretion and any such Tax Item shall be reported as determined
by FMC in its sole discretion (so long as such reporting position is supported
by "substantial authority" (within the meaning of Section 1.6662-4(d) of the
Treasury Regulations) with respect to United States federal, state and local Tax
Returns or has similar appropriate authoritative support with respect to any Tax
Return other than United States federal, state and local Tax Returns).  In the
event that the time periods provided in this Section 9.2(a) would not provide
FMC with a reasonable period of time within which to review any such Subsidiary
IPO Tax Return prior to the filing of such Tax Return, then the parties shall
cooperate in order that FMC may participate in the preparation of such Tax
Return and have the rights otherwise provided in this Section 9.2(a).

                  (b)  Deconsolidation Taxes and Other Foreign Restructuring
Taxes. Any Tax Return (or portion thereof) that includes any Tax Item relating
to any Deconsolidation (to the extent resulting in Deconsolidation Taxes) or
Secondary Restructuring (to the extent resulting in Other Foreign Restructuring
Taxes) shall be prepared and filed by the party responsible for preparing and
filing such Tax Return (under Sections 2.1 and 2.2 of this Agreement); provided
that, notwithstanding any other provision of this Agreement, if Subsidiary is
the party responsible for preparing (or causing to be prepared) any such Tax
Return (or portion thereof) (each a "Subsidiary Restructuring Tax Return"),
Subsidiary shall provide any such Subsidiary Restructuring Tax Return (or
portion thereof) to FMC (no later than forty-five (45) Business Days (or such
shorter period as agreed to by FMC) prior to the due date for the filing of such
Tax Return (taking into account applicable extensions)), for FMC's review and
approval, which approval, to the extent it relates to any Tax Item relating to
any Deconsolidation (to the extent resulting in Deconsolidation Taxes) or
Secondary Restructuring (to the extent resulting in Other Foreign Restructuring
Taxes), may be withheld by FMC in its sole discretion and any such Tax Item
shall be reported as determined by FMC in its sole discretion (so long as such
reporting position is supported by "substantial authority" (within the meaning
of Section 1.6662-4(d) of

                                      -27-
<PAGE>

the Treasury Regulations) with respect to United States federal, state and local
Tax Returns or has similar appropriate authoritative support with respect to any
Tax Return other than United States federal, state and local Tax Returns).

           9.3    Proceedings Relating to Restructuring. Notwithstanding any
other provision of this Agreement, FMC shall have the exclusive right, in its
sole discretion, to control, contest, and represent the interests of FMC, any
FMC Affiliate, Subsidiary or any Subsidiary Affiliate in any Proceeding with
respect to Tax Items related to the Restructuring, Deconsolidation (to the
extent resulting in Deconsolidation Taxes) or Secondary Restructuring (to the
extent resulting in Other Foreign Restructuring Taxes), and to resolve, settle
or agree to any deficiency, claim or adjustment proposed, asserted or assessed
in connection with or as a result of any such Proceeding. FMC's rights shall
extend to any matter pertaining to the management and control of any Proceeding,
including execution of waivers, choice of forum, scheduling of conferences and
the resolution of any Tax Item.

           9.4    Provision of Information and Mutual Cooperation. In addition
to the parties' respective obligations under Section 6.1 of this Agreement, FMC
and Subsidiary shall, and shall cause their respective Affiliates to cooperate
with respect to all aspects of the Restructuring including, without limitation,
by (1) furnishing to the other in a timely manner such information, documents
and other materials as the other may reasonably request for purposes of (i)
preparing any Tax Return that includes Tax Items relating to or arising from the
Restructuring and (ii) contesting or defending any Proceeding with respect to
Tax Items relating to or arising from the Restructuring and (2) make its
employees available to the other to provide explanations of documents and
materials and such other information as the other may reasonably request in
connection with any of the matters described in subclauses (i) and (ii) of
clause (1) above.

     Section 10.  Spin-Off and Internal Distribution
                  -----------------------------------

           10.1   Spin-Off and Internal Distribution Related Items.  (a)
Restrictions on Certain Post-Spin-Off Actions.

           (1)    Subsidiary Restrictions.

                  (i)   Subsidiary will not take any action or permit any
     Subsidiary Affiliate to take any action, and Subsidiary will not fail to
     take any action or permit any Subsidiary Affiliate 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
     the Ruling Documents, Supplemental Ruling Documents, Ruling, Supplemental
     Ruling or this Agreement.

                  (ii)  Subsidiary shall not take any action (including any
     cessation, transfer or disposition of its active trade or business; payment
     of extraordinary dividends to shareholders; and acquisitions or issuances
     or stock) or permit any Subsidiary Affiliate to take any action (including
     any cessation, transfer or disposition if its active trade or business;
     payment of extraordinary dividends to shareholders; and acquisitions or
     issuances or stock), and Subsidiary will not fail to take any action or
     permit any Subsidiary Affili-

                                      -28-
<PAGE>

     ate to fail to take any action, where such action or failure to act would
     cause the Spin-Off or the Internal Distribution not to have Tax-Free
     Status.

                  (iii)  Until the first day after the Restriction Period, no
     member of the Subsidiary Group shall sell, agree to sell or otherwise issue
     or agree to issue to any Person, or redeem or otherwise acquire from any
     Person, any Equity Securities of any member of the Subsidiary Group;
     provided, however, that (A) the adoption by Subsidiary of a rights plan
     --------  -------
     shall not constitute a sale or issuance of such Equity Securities, (B)
     Subsidiary may repurchase Equity Securities to the extent that such
     repurchases meet the requirements of section 4.05(1)(b) of Revenue
     Procedure 96-30 and (C) Subsidiary may, subject to the terms and conditions
     contained in paragraph (vi) below, issue Equity Securities of Subsidiary.

                  (iv)   Until the first day after the Restriction Period, no
     member of the Subsidiary Group shall (A) solicit any Person to make a
     tender offer for, or otherwise acquire or sell, the Equity Securities of
     Subsidiary, (B) participate in or support any unsolicited tender offer for,
     or other acquisition, issuance or disposition of, the Equity Securities of
     Subsidiary or (C) approve or otherwise permit any proposed business
     combination or any transaction which, in the case of (A), (B) or (C),
     individually or in the aggregate, together with the transactions
     contemplated by this Agreement, the Distribution Agreement, any other
     agreements or the Ruling Documents, Supplemental Ruling Documents, Ruling,
     Supplemental Ruling, results in one or more Persons acquiring (other than
     in acquisitions not taken into account for purposes of Section 355(e))
     directly or indirectly stock representing a Fifty-Percent or Greater
     Interest in Subsidiary or in any Subsidiary Affiliate if (i) in the case of
     Subsidiary, it would cause the Spin-Off not to have Tax-Free Status and
     (ii) in the case of such Subsidiary Affiliate, it would cause the Internal
     Distribution not to have Tax-Free Status. In addition, no member of the
     Subsidiary Group shall at any time, whether before or subsequent to the
     expiration of the Restriction Period, engage in any action described in
     clauses (A), (B) or (C) of the preceding sentence if it is pursuant to an
     arrangement or agreement negotiated (in whole or in part) prior to the
     Spin-Off, even if at the time of the Spin-Off it is subject to various
     conditions, nor shall any member take any action, or fail or omit to take
     any action, that would cause Section 355(d) or (e) to apply to the Spin-Off
     or the Internal Distribution.

                  (v)    Any of the provisions of Section 10.1(a)(1) shall be
     waived with respect to any particular transaction or transactions if (A)
     FMC or Subsidiary has obtained a Supplemental Ruling from the Service in
     accordance with and under the terms and conditions contained in paragraph
     (vi)(a) below, (B) FMC has determined, in its sole and absolute discretion,
     that it could not reasonably be expected that such proposed transaction
     would have an adverse effect on the Tax-Free Status of the Internal
     Distribution and the Spin-Off, or (C) Subsidiary satisfies the terms and
     conditions contained in paragraph (vi)(b) below. Waiver with respect to one
     transaction or group of transactions shall not constitute a waiver with
     respect to any other transaction.

                  (vi)   Except as provided in paragraphs (i) and (ii) above,
     until the first day after the Restriction Period, unless FMC and Subsidiary
     agree otherwise, prior to entering into any agreement to (A) sell all or
     substantially all of the assets of Subsidiary

                                      -29-
<PAGE>

     or any Subsidiary Affiliate, (B) merge Subsidiary or any Subsidiary
     Affiliate with another entity (without regard to which party is the
     surviving entity) or (C) issue Equity Securities of Subsidiary or any
     Subsidiary Affiliate in an acquisition or public or private offering
     (excluding any issuance pursuant to the exercise of employee stock options
     or other employment related arrangements):

               a)  Subsidiary shall request that FMC obtain a Supplemental
          Ruling in accordance with Section 10.1(d)(1) of this Agreement that
          such transaction will not affect the treatment of the Spin-Off and the
          Internal Distribution under Section 355 of the Code and FMC shall have
          received such a Supplemental Ruling in form and substance reasonably
          satisfactory to FMC;

               b)  Subsidiary shall deliver to FMC an Acceptable Letter of
          Credit with a face amount equal to the amount of Aggregate Assumed
          Spin-Off Tax Liabilities as security for any Tax-Related Losses that
          result if such issuance of Equity Securities or other transaction
          results in Tax-Related Losses.  Subsidiary shall keep in place the
          Acceptable Letter of Credit until the end of the Restriction Period
          (or if any claim for indemnity or claim which could give rise to such
          a claim for indemnity is pending at the end of the Restriction Period,
          the Acceptable Letter of Credit will be renewed and its face amount
          increased by an amount equal to the amount of interest that would
          accrue, during the period of renewal, on the face amount of the
          Acceptable Letter of Credit (prior to renewal and prior to increase
          pursuant to this sentence) at 110% of the highest Underpayment Rate
          for U.S. corporations in effect on the date of determination, and such
          Acceptable Letter of Credit will continue to be renewed and, upon each
          such renewal, its face amount so increased, until such claim is
          finally resolved) or, in the event a Non-Renewal Notice has been given
          with respect to such Acceptable Letter of Credit, replace such
          Acceptable Letter of Credit with a substitute Acceptable Letter of
          Credit.  FMC may, in its discretion, seek a Supplemental Ruling with
          respect to such issuance of Equity Securities or other transaction, in
          which case Subsidiary shall (and shall cause each Subsidiary Affiliate
          to) cooperation with FMC and use its reasonable best efforts to seek
          to obtain, as expeditiously as possible, such Supplemental Ruling.
          FMC may at any time, in its discretion, present the Acceptable Letter
          of Credit for payment in its face amount in the event that it or an
          FMC Affiliate incurs a Tax-Related Loss or Subsidiary fails to renew
          or replace the Acceptable Letter of Credit as aforesaid by the date
          which is 30 days prior to the expiration date of the Acceptable Letter
          of Credit then in effect. Subsidiary shall remain liable for any
          obligations under this Agreement to the extent the Acceptable Letter
          of Credit is insufficient to satisfy such obligations or is
          unavailable for drawing for any reason.  In the event the amount drawn
          under the Acceptable Letter of Credit exceeds the amount of
          Subsidiary's obligations under this Agreement, such excess, as
          reasonably determined by FMC, shall be paid to Subsidiary at the end
          of the Restriction Period (or if any claim for indemnity or claim
          which could give rise to such a claim for indemnity is pending at the
          end of the Restriction Period, when such claim is finally resolved)
          with interest on such excess calculated using the Underpayment Rate
          for the period from the day FMC

                                      -30-
<PAGE>

          received such payment through the Business Day immediately prior to
          the day such payment is made to Subsidiary;

               c)  If and only if following the transaction at issue, (x)
          Subsidiary or any Subsidiary Affiliate will not have issued in the
          aggregate (including, for these purposes, stock issued in connection
          with the IPO and any sale of stock of Subsidiary or any Subsidiary
          Affiliate by FMC or any FMC Affiliate) 40% or more (by vote or value)
          of its outstanding stock (determined immediately following such
          transaction) taking into account all issuances of (and agreements to
          issue) Equity Securities (and assuming the exercise of all such Equity
          Securities and the closing of all such agreements) from the point in
          time immediately prior to the IPO to the date immediately following
          such transaction and (y) Subsidiary will be the surviving entity if
          such transaction is a merger (excluding, for these purposes, any
          reverse subsidiary merger in which Subsidiary is the surviving entity
          in which case this clause (c) shall not apply and Subsidiary shall be
          required to satisfy the requirements of clause (a) or (b) above),
          Subsidiary may, in lieu of obtaining a Supplemental Ruling described
          in clause (a) above or delivering an Acceptable Letter of Credit as
          described in clause (b) above, obtain and deliver to FMC an
          appropriate Board Certification and an Unqualified Tax Opinion (at its
          own expense), in form and substance reasonably satisfactory to FMC and
          on which FMC may rely, from Qualified Tax Counsel that such
          transaction will not affect the treatment of the Spin-Off and the
          Internal Distribution under Section 355 of the Code; or

               d)  If and only if following the transaction at issue, (x)
          Subsidiary or any Subsidiary Affiliate will not have issued in the
          aggregate (including, for these purposes, stock issued in connection
          with the IPO and any sale of stock of Subsidiary or any Subsidiary
          Affiliate by FMC or any FMC Affiliate) 35% or more (by vote or value)
          of its outstanding stock (determined immediately following such
          transaction) taking into account all issuances of (and agreements to
          issue) Equity Securities (and assuming the exercise of all such Equity
          Securities and the closing of all such agreements) from the point in
          time immediately prior to the IPO to the date immediately following
          such transaction and (y) Subsidiary will be the surviving entity if
          such transaction is a merger (excluding, for these purposes, any
          reverse subsidiary merger in which Subsidiary is the surviving entity
          in which case this clause (d) shall not apply and Subsidiary shall be
          required to satisfy the requirements of clause (a) or clause (b)
          above), Subsidiary may, in lieu of obtaining a Supplemental Ruling
          described in clause (a) above or delivering an Acceptable Letter of
          Credit as described in clause (b) above, obtain and deliver to FMC an
          appropriate Board Certification.

          (2)  FMC Restrictions.  FMC agrees that it will not take or fail to
take, or permit any FMC Affiliate to take or fail to take, any action where such
action or failure to act would be inconsistent with any material, information,
covenant or representation in the Ruling Documents, Supplemental Ruling
Documents, Ruling or Supplemental Ruling.

               (b)  Liability for Undertaking Certain Actions.

                                      -31-
<PAGE>

          (1)  Subsidiary Liability.  Subsidiary and each Subsidiary Affiliate
shall be responsible for one hundred percent (100%) of any and all Tax-Related
Losses that are attributable to, or result from, any act or failure to act
described in Section 10.1(a)(1) of this Agreement by Subsidiary or any
Subsidiary Affiliate.  Subsidiary and each Subsidiary Affiliate shall jointly
and severally indemnify FMC, each FMC Affiliate and their directors, officers
and employees and hold them harmless from and against any such Taxes.

          (2)  FMC Liability. FMC and each FMC Affiliate shall be responsible
for one hundred percent (100%) of any and all Tax-Related Losses that are
attributable to, or result from, any act or failure to act described in Section
10.1(a)(2) of this Agreement by FMC or any FMC Affiliate. FMC and each FMC
Affiliate shall jointly and severally indemnify Subsidiary, each Subsidiary
Affiliate and their directors, officers and employees and hold them harmless
from and against any such Taxes.

               (c)  Participation Rights.  FMC shall have the right to obtain a
Ruling or Supplemental Ruling in its sole and exclusive discretion.  If FMC
determines to obtain a Ruling or a Supplemental Ruling, Subsidiary shall (and
shall cause each Subsidiary Affiliate to) cooperate with FMC and take any and
all actions reasonably requested by FMC in connection with obtaining the Ruling
or Supplemental Ruling (including, without limitation, by making any
representation or covenant or providing any materials or information requested
by any Tax Authority; provided that, Subsidiary shall not be required to make
(or cause any Subsidiary Affiliate to make) any representation or covenant that
is inconsistent with historical facts or as to future matters or events over
which it has no control).  In connection with obtaining a Ruling or Supplemental
Ruling, (i) FMC shall cooperate with and keep Subsidiary informed in a timely
manner of all material actions taken or proposed to be taken by FMC in
connection therewith; (ii) FMC shall (A) reasonably in advance of the submission
of any Ruling Documents or Supplemental Ruling Documents, provide Subsidiary
with a draft copy thereof, (B) reasonably consider Subsidiary's comments on such
draft copy, and (C) provide Subsidiary with a final copy; and (iii) FMC shall
provide Subsidiary with notice reasonably in advance of, and Subsidiary 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 Ruling or
Supplemental Ruling.

               (d)  Supplemental Rulings at Subsidiary's Request. FMC agrees
that at the reasonable request of Subsidiary, FMC shall (and shall cause each
FMC Affiliate to) cooperate with Subsidiary and use its reasonable best efforts
to seek to obtain, as expeditiously as possible, a Supplemental Ruling or other
guidance from the Service or any other Tax Authority for the purpose of
confirming (i) the continuing validity of (A) the Ruling or (B) any Supplemental
Ruling issued previously, and (ii) compliance on the part of Subsidiary or any
Subsidiary Affiliate with its obligations under Section 10.1 of this Agreement.
Further, in no event shall FMC file any Supplemental Ruling under this Section
10.1(d) unless Subsidiary represents that (1) it has read the request for the
Supplemental Ruling and any materials, appendices and exhibits submitted or
filed therewith (the "Supplemental Ruling Documents") and (2) all information
and representations, if any, relating to Subsidiary and any Subsidiary Affiliate
contained in the Supplemental Ruling Documents are true, correct and complete in
all material respects. Subsidiary shall reimburse FMC for all reasonable costs
and expenses incurred by FMC (and any FMC Affiliate) in obtaining a Supplemental
Ruling requested by Subsidiary. Subsidiary hereby agrees that FMC shall, subject
to Section 10.1(c) of this Agreement, have sole and exclusive control

                                      -32-
<PAGE>

over the process of obtaining a Supplemental Ruling, and that only FMC shall
apply for a Supplemental Ruling. Subsidiary further agrees that it shall not
seek any guidance from the Service or any other Tax Authority concerning the
Spin-Off except as set forth in Section 10.1 of this Agreement.

               (e)  Liability of Subsidiary for Certain Transactions.
Notwithstanding anything to the contrary in this Agreement, Subsidiary and each
Subsidiary Affiliate shall be responsible for one hundred percent (100%) of any
Tax-Related Losses that are attributable to, or result from any acquisition of
stock of Subsidiary or any Subsidiary Affiliate by any person or persons
(including, without limitation, as a result of an issuance of Subsidiary stock
or a merger of another entity with and into Subsidiary or any Subsidiary
Affiliate) or any acquisition of assets of Subsidiary or any Subsidiary
Affiliate (including, without limitation, as a result of a merger) by any person
or persons. Subsidiary and each Subsidiary Affiliate shall jointly and severally
indemnify FMC, each FMC Affiliate and their directors, officers and employees
and hold them harmless from and against any such Tax-Related Losses.

               (f)  Liability for Breach of Representation.  Each of FMC and
Subsidiary hereby represents that (1) it will read the Ruling Documents and
Supplemental Ruling Documents prior to the date submitted, (2) all information
contained in such Ruling Documents and Supplemental Ruling Documents that
concerns or relates to such party or any affiliate of such party will be true,
correct and complete in all material respects, and (3) except to the extent that
such party shall have notified the other party in writing to the contrary and
with reasonable specificity prior to the Distribution Date, all such information
that concerns or relates to such party or any affiliate of such party will be
true, correct and complete in all material respects as of the Distribution Date.
If any Tax Authority withdraws all or any portion of a Ruling or Supplemental
Ruling issued to FMC in connection with the Spin-Off because of a breach by
Subsidiary or any Subsidiary Affiliate of a representation made in this Section
10.1(f), Subsidiary and each Subsidiary Affiliate shall be responsible for one
hundred percent (100%) of any Tax-Related Losses resulting from such breach.  In
such event, Subsidiary and each Subsidiary Affiliate shall jointly and severally
indemnify FMC, each FMC Affiliate and their directors, officers and employees
and hold them harmless from and against any such Tax-Related Losses.  If any Tax
Authority withdraws all or any portion of a Ruling or Supplemental Ruling issued
to FMC in connection with the Spin-Off because of a breach by FMC or any FMC
Affiliate of a representation made in this Section 10.1(f), FMC and each FMC
Affiliate shall be responsible for one hundred percent (100%) of any Tax-Related
Losses resulting from such breach.  In such event, FMC and each FMC Affiliate
shall jointly and severally indemnify Subsidiary, each Subsidiary Affiliate and
their directors, officers and employees and hold them harmless from and against
any such Tax-Related Losses.

          10.2 Enforcement.  The parties hereto acknowledge that irreparable
harm would occur in the event that any of the provisions of this Section 10 were
not performed in accordance with their specific terms or were otherwise
breached.  The parties hereto agree that, in order to preserve the Tax-Free
Status of the Spin-Off, injunctive relief is appropriate to prevent any
violation of the foregoing covenants, provided, however, that injunctive relief
                                      --------  -------
shall not be the exclusive legal or equitable remedy for any such violation.

                                      -33-
<PAGE>

          10.3   Information for Shareholders. FMC shall provide each
shareholder that receives stock of Subsidiary pursuant to the Spin-Off with the
information necessary for such shareholder to comply with the requirements of
Section 355 of the Code and the Treasury regulations thereunder with respect to
statements that such shareholders must file with their United States federal
income Tax Returns demonstrating the applicability of Section 355 of the Code to
the Spin-Off.

     Section 11. Special Allocations With Respect to Certain Tax Matters
                 -------------------------------------------------------

          11.1   Foreign Sales Corporation Matters.  For purposes of this
Agreement, and notwithstanding any contrary provision contained in this
Agreement, any Tax Detriment arising out of or relating to any disallowance or
denial of any Tax Benefits claimed by FMC, any FMC Affiliate, Subsidiary or any
Subsidiary Affiliate relating to a Technologies Business in any Pre-
Deconsolidation Period under (i) Subpart C of Part III of Subchapter N of
Chapter 1 of the Code (as in effect prior to the passage of the FSC Repeal and
Extraterritorial Income Exclusion Act of 2000) or Section 114 of the Code or
(ii) any similar provision or benefit accorded under foreign laws, shall be
allocated to, and the amount of such Tax Detriment shall be payable by,
Subsidiary.  For the avoidance of doubt, it is the intent of the parties to this
agreement that Subsidiary be liable for the amount of any such Tax Detriment
relating to any such disallowance or denial of any such Tax Benefits regardless
of whether such Tax Benefit arose before or after the Separation.  The amount of
such Tax Detriment shall be calculated without giving effect to any unused Tax
Assets of FMC or any FMC Affiliate that becomes available for use and is used as
a result of such Tax Detriment.

          11.2   Intercompany Pricing Adjustments. For purposes of this
Agreement, and notwithstanding any contrary provision contained in this
Agreement, any Tax Detriment arising out of or relating to any adjustment by the
Service or any foreign Tax authority pursuant to Section 482 or any similar
provision of foreign Tax law of any Tax Item relating to a Technologies Business
shall be allocated to, and payable by, the Subsidiary. For the avoidance of
doubt, it is the intent of the parties to this agreement that Subsidiary be
liable for the amount of any such Tax Detriment relating to any such adjustment
regardless of whether such adjustment relates to a taxable period ending before
or after the Separation. The amount of such Tax Detriment shall be calculated
without giving effect to any unused Tax Assets of FMC or any FMC Affiliate that
becomes available for use and is used as a result of such Tax Detriment.

          11.3   Permanent Establishment Related Adjustments. For purposes of
this Agreement, and notwithstanding any contrary provision contained in this
Agreement, any Tax Detriment arising out of or relating to the determination by
a foreign Tax Authority that FMC, any FMC Affiliate, Subsidiary or any
Subsidiary Affiliate maintained a "permanent establishment" (within the meaning
of the applicable tax treaty) or other taxable presence in such jurisdiction
during any Pre-Deconsolidation Period, shall be allocated 100% to Subsidiary to
the extent the Tax Detriment relates to or arises out of the Technologies
Business. For the avoidance of doubt, it is the intent of the parties to this
agreement that Subsidiary be liable for 100% of the amount of the Tax Detriment
that relates to the Technologies Business regardless of whether such amount
relates to a taxable period ending before or after the Separation. The amount of
such Tax Detriment shall be calculated (i) without giving effect to any unused
Tax Assets of FMC or any FMC Affiliate that becomes available for use and is
used as a result of such

                                      -34-
<PAGE>

Tax Detriment and (ii) after giving effect to the increase in Taxes (that relate
to the Chemical Business) for which FMC or any FMC Affiliate is liable.

          11.4   1994 Tax Case.  FMC has filed a certain Tax case in the United
States Tax Court against the Commissioner of Internal Revenue, Docket No. 2317-
00, with respect to Tax year 1994 (the "FMC Tax Case").  FMC and Subsidiary
hereby agree, notwithstanding any contrary provision contained herein, to
allocate responsibility, liability and Refunds for the FMC Tax Case as follows:

                 (i)    FMC will pay for all out of pocket expenses relating to
     the prosecution of the FMC Tax Case;

                 (ii)   FMC shall have the sole right to control the prosecution
     of the FMC Tax Case, provided that FMC shall provide Subsidiary with a
     timely and reasonably detailed account of each stage of the FMC Tax Case,
     shall consult with Subsidiary before taking any significant action in
     connection with the FMC Tax Case and shall prosecute the FMC Tax Case
     diligently and in good faith as if FMC were the only party in interest;

                 (iii)  To the extent that the Service prevails in the FMC Tax
     Case, Subsidiary shall be responsible for, and shall pay to FMC on demand,
     the first $4.3 million of any payment (including payment of Taxes, interest
     or penalties) due the Service;

                 (iv)   Any amounts due the Service in excess of $4.3 million
     shall be the sole responsibility of FMC;

                 (v)    To the extent that as a result of the disposition of the
     FMC Tax Case, FMC is entitled to a Refund of Taxes (including interest),
     the amount of such Refund will be allocated equally between the parties;

                 (vi)   FMC shall pay any amounts due to Subsidiary pursuant to
     (v) hereof within thirty (30) Business Days of receipt of such amounts from
     the Service;

                 (vii)  The parties intend that for financial accounting
     purposes, any payment made by FMC to Subsidiary under (v) hereof shall be
     treated as an increase in tax expense for FMC and a decrease in tax expense
     for Subsidiary and the parties shall use reasonable efforts to obtain such
     treatment; and

                 (viii) The obligation of FMC to make payments to Subsidiary
     under (v) hereof shall cease with respect to tax years ending after the
     2004 tax year, and no payments shall be due to Subsidiary with respect to
     Refunds received after the ending of such tax year.

          11.5   Notwithstanding any other provision of this Agreement, in the
event that prior to or in connection with the Restructuring a foreign Subsidiary
Affiliate makes a payment to Parent which is treated as a Qualifying Pre-
Restructuring Foreign Dividend, FMC shall be liable (and Subsidiary shall not be
liable) for any Taxes of Subsidiary resulting from, arising out of or relating
to such Qualifying Pre-Restructuring Foreign Dividend.

                                      -35-
<PAGE>

          11.6   In the event it is necessary to allocate income, expense or
other items between the Technologies Business and the Chemicals Business in
connection with any aspect of the matters described in sections 11.1, 11.2,
11.3, 11.4 or 11.5, such allocation shall be made by FMC in good faith and in
its reasonable discretion.

     Section 12. Miscellaneous
                 -------------

          12.1   Effectiveness.  This Agreement shall become effective upon
execution by both parties hereto.

          12.2   Notices. All notices, requests, demands and other
communications under this Agreement shall be in writing and, unless otherwise
provided herein, shall be deemed to have been duly given (i) on the date of
service if served personally on the party to whom notice is given, (ii) on the
day of transmission if sent via facsimile transmission to the facsimile number
given below; provided, telephonic confirmation of receipt is obtained promptly
after completion of transmission, (iii) on the business day after delivery to an
overnight courier service or the Express mail service maintained by the United
States Postal Service, provided, receipt of delivery has been confirmed, or (iv)
on the fifth day after mailing, provided, receipt of delivery is confirmed, if
mailed to the party to whom notice is to be given, by first class mail,
registered or certified, postage prepaid, properly addressed and return-receipt
requested, to the party as follows:

          If to FMC or any FMC Affiliate prior to the Distribution, to:

                 FMC Corporation
                 200 East Randolph Drive
                 Chicago, Illinois 60601
                 Facsimile: (312) 861-6176
                 Attention: Secretary

          If to FMC or any FMC Affiliate after the Distribution, to:

                 FMC Corporation
                 1735 Market Street
                 Philadelphia, Pennsylvania 19103
                 Facsimile: (215) 299-5999
                 Attention: Secretary

          If to Subsidiary or any Subsidiary Affiliate to:

                 FMC Technologies, Inc.
                 200 East Randolph Drive
                 Chicago, Illinois 60601
                 Facsimile: (312) 861-6176
                 Attention: Secretary

                                      -36-
<PAGE>

Any party may change its address or fax number by giving the other party written
notice of its new address or fax number in the manner set forth above.

          12.3   Changes in Law.  Any reference to a provision of the Code or a
law of another jurisdiction shall include a reference to any applicable
successor provision or law.

          12.4   Successors and Assigns. This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties
and their respective successors and permitted assigns, but neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by either party without the prior written consent of the other party.

          12.5   Authorization, Etc. Each of the parties hereto hereby
represents and warrants that it has the power and authority to execute, deliver
and perform this Agreement, that this Agreement has been duly authorized by all
necessary corporate action on the part of such party, that this Agreement
constitutes a legal, valid and binding obligation of each such party and that
the execution, delivery and performance of this Agreement by such party does not
contravene or conflict with any provision of law or of its charter or bylaws or
any agreement, instrument or order binding on such party.

          12.6   Complete Agreement.  This Agreement shall constitute the entire
agreement between FMC or any FMC Affiliate and Subsidiary or any Subsidiary
Affiliate with respect to the subject matter hereof and shall supersede all
previous negotiations, commitments and writings with respect to such subject
matter.  Unless the context indicates otherwise, any reference to Subsidiary in
this Agreement shall refer to Subsidiary and the Subsidiary Affiliates and any
reference to FMC in this Agreement shall refer to FMC and the FMC Affiliates.
Notwithstanding anything to the contrary herein, nothing in this Agreement shall
modify the rights and obligations of the parties as set forth in Section 2.3 of
the Separation Agreement.

          12.7   Interpretation. The 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. Whenever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender in all
cases where they would so apply. The parties have participated jointly in the
negotiation and drafting of this agreement.

          12.8   Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
(regardless of the laws that might otherwise govern under applicable principles
of conflicts law) as to all matters, including, without limitation, matters of
validity, construction, effect, performance and remedies.

          12.9   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.

          12.10  Legal Enforceability; No Presumption against Drafter.  Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction 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

                                      -37-
<PAGE>

shall not invalidate or render unenforceable such provision in any other
jurisdiction.  In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties
and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any of the provisions of this Agreement.

          12.11  No Third Party Beneficiaries.  This Agreement is solely for the
benefit of FMC, the FMC Affiliates, Subsidiary and the Subsidiary Affiliates,
and is not intended to confer upon any other person any rights or remedies
hereunder.

          12.12  Jurisdiction; Forum.  (a) By the execution and delivery of this
Agreement, FMC and Subsidiary submit and agree to cause the FMC Affiliates and
Subsidiary Affiliates, respectively, to submit to the personal jurisdiction of
any state or federal court in the State of Delaware in any suit or proceeding
arising out of or relating to this Agreement.

                 (b)  To the extent that FMC, Subsidiary, any FMC Affiliate or
any Subsidiary Affiliate has or hereafter may acquire any immunity from
jurisdiction of any Delaware court or from any legal process (whether through
service or notice, attachment prior to judgment, attachment in aid of execution,
execution or otherwise) with respect to itself or its property, FMC or
Subsidiary, as the case may be, hereby irrevocably waives, and agrees to cause
the FMC Affiliates and the Subsidiary Affiliates, respectively, to waive such
immunity in respect of its obligations with respect to this Agreement.

                 (c)  The parties hereto agree that an appropriate and
convenient, non-exclusive forum for any disputes between any of the parties
hereto or the FMC Affiliates and the Subsidiary Affiliates arising out of this
Agreement shall be in any state or federal court in the State of Delaware.

          12.13  Confidentiality. Each party shall hold and cause its
consultants and advisors to hold in strict confidence, unless compelled to
disclose by judicial or administrative process or, in the opinion of its
counsel, by other requirements of law, all information (other than any such
information relating solely to the business or affairs of such party) concerning
the other parties hereto furnished it by such other party or its representatives
pursuant to this Agreement (except to the extent that such information can be
shown to have been (a) previously known by the party to which it was furnished,
(b) in the public domain through no fault of such party, or (c) later lawfully
acquired from other sources by the party to which it was furnished), and each
party shall not release or disclose such information to any other person, except
its auditors, attorneys, financial advisors, bankers and other consultants and
advisors who shall be advised of the provisions of this Section. Each party
shall be deemed to have satisfied its obligation to hold confidential
information concerning or supplied by the other party if it exercises the same
care as it takes to preserve confidentiality for its own similar information.

          12.14  Expenses. Unless otherwise expressly provided in this Agreement
or in the Separation and Distribution Agreement, each party shall bear any and
all expenses that arise from their respective obligations under this Agreement.
In the event either party to this Agreement brings an action or proceeding for
the breach or enforcement of this Agreement, the prevailing party in such action
or proceeding, whether or not such action or proceeding proceeds to final
judgment, shall be entitled to recover as an element of its costs, and not as
damages, such

                                      -38-
<PAGE>

reasonable attorneys' fees as may be awarded in the action or proceeding in
addition to whatever other relief to which the prevailing party may be entitled.

          12.15  Amendment and Modification.  This Agreement may be amended,
modified or supplemented only by written agreement of the parties.

                                      -39-
<PAGE>

          IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed by a duly authorized officer as of the date first above
written.

                              FMC Corporation
                              on behalf of itself and each of the FMC Affiliates

                              By _________________________________________
                                 Name:
                                 Title:

                              FMC Technologies, Inc.
                              on behalf of itself and each of the Subsidiary
                              Affiliates

                              By _________________________________________
                                 Name:
                                 Title:

                                      -40-<PAGE>

                                                                    EXHIBIT 10.2

                                    FORM OF

                           EMPLOYEE BENEFITS AGREEMENT

                                 by and between

                                 FMC CORPORATION

                                       and

                             FMC TECHNOLOGIES, INC.

                         Dated as of _____________, 2001
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                  Page
                                                                                                                  ----
<S>                                                                                                               <C>
ARTICLE I   DEFINITIONS......................................................................................       1

1.1    Aetna Annuity.........................................................................................       1
1.2    Agreement ............................................................................................       1
1.3    ASO Contract .........................................................................................       1
1.4    Auditing Party .......................................................................................       1
1.5    Award ................................................................................................       1
1.6    Benefits and Employee Services Organization ..........................................................       2
1.7    Benefits Database.....................................................................................       2
1.8    Change ...............................................................................................       2
1.9    Close of the Distribution Date .......................................................................       2
1.10   COBRA ................................................................................................       2
1.11   Code .................................................................................................       2
1.12   Defined Contribution Plan ............................................................................       2
1.13   Defined Contribution Plan for Bargaining Unit Employees ..............................................       2
1.14   Distribution Date Ratio ..............................................................................       2
1.15   DOL ..................................................................................................       2
1.16   Enrolled Actuary .....................................................................................       2
1.17   ERISA ................................................................................................       2
1.18   Excluded Liabilities .................................................................................       2
1.19   Executive Benefit Plans ..............................................................................       3
1.20   Flexible Benefits Plan ...............................................................................       3
1.21   FMLA .................................................................................................       3
1.22   Foreign Plans ........................................................................................       3
1.23   Group Insurance Policies .............................................................................       3
1.24   Group Life Program ...................................................................................       3
1.25   HCFA .................................................................................................       3
1.26   Health and Welfare Plans .............................................................................       3
1.27   HMO ..................................................................................................       3
1.28   HMO Agreements .......................................................................................       3
1.29   Immediately after the Distribution Date ..............................................................       4
1.30   Incentive Plan .......................................................................................       4
1.31   Individual Agreement .................................................................................       4
1.32   Initial Pension Transfer..............................................................................       4
1.33   IPO Ratio.............................................................................................       4
1.34   IRS ..................................................................................................       4
1.35   Leave of Absence .....................................................................................       4
1.36   Legally Permissible ..................................................................................       4
1.37   Material Feature .....................................................................................       4
1.38   Medical Plan .........................................................................................       4
1.39   Non-Employee Director ................................................................................       4
1.40   Non-Employee Director Plan ...........................................................................       5
1.41   Non-parties ..........................................................................................       5
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                                                                 <C>
1.42   Option ...............................................................................................       5
1.43   Outsource ............................................................................................       5
1.44   Parent ...............................................................................................       5
1.45   Parent Distribution Date Stock Value..................................................................       5
1.46   Parent Entity.........................................................................................       5
1.47   Parent Executive......................................................................................       5
1.48   Parent IPO Stock Value................................................................................       5
1.49   Parent Leave of Absence Programs......................................................................       5
1.50   Parent LTD Plan.......................................................................................       5
1.51   Parent Transfer Date Stock Value......................................................................       5
1.52   Parent Transferred Employee...........................................................................       6
1.53   Parent WCP............................................................................................       6
1.54   Participating Company.................................................................................       6
1.55   PBGC .................................................................................................       6
1.56   Pension Interest......................................................................................       6
1.57   Pension Plan..........................................................................................       6
1.58   Plan .................................................................................................       6
1.59   Prudential Annuity....................................................................................       6
1.60   Puerto Rico Medical and Dental Plan...................................................................       7
1.61   Puerto Rico Pension Plan..............................................................................       7
1.62   Puerto Rico Savings Plan..............................................................................       7
1.63   QDRO .................................................................................................       7
1.64   QMCSO ................................................................................................       7
1.65   Rabbi Trusts..........................................................................................       7
1.66   Savings Plan(s).......................................................................................       7
1.67   Separation and Distribution Agreement.................................................................       7
1.68   Supplemental Pension Plan.............................................................................       7
1.69   Technologies..........................................................................................       7
1.70   Technologies Administrative Employees.................................................................       7
1.71   Technologies Distribution Date Stock Value............................................................       8
1.72   Technologies Entity...................................................................................       8
1.73   Technologies Individual...............................................................................       8
1.74   Technologies IPO Stock Value..........................................................................       8
1.75   Technologies Transfer Date Stock Value................................................................       8
1.76   Technologies WCP Claims...............................................................................       8
1.77   Transfer Date.........................................................................................       8
1.78   Transfer Date Ratio...................................................................................       8
1.79   Transferred Individual................................................................................       8
1.80   VEBA .................................................................................................       9
1.81   VEBA Plans............................................................................................       9

ARTICLE II. GENERAL PRINCIPLES...............................................................................       9

2.1    Assumption of Liabilities.............................................................................       9
2.2    Technologies Participation in Parent Plans............................................................      10
2.3    Establishment of Technologies Plans...................................................................      10
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<S>                                                                                                                <C>
2.4    Terms of Participation by Transferred Individuals in Technologies Plans and Technologies
       Non-Employee Directors in the Technologies Non-Employee Director Plan.................................      11
2.5    Procedures for Amendments to Plans, Plan Designs, Administrative Practices
       and Vendor Contracts..................................................................................      12
2.6    Best Efforts..........................................................................................      13
2.7    Regulatory Compliance.................................................................................      13

ARTICLE III. DEFINED BENEFIT PLANS...........................................................................      13

3.1    Assumption of Certain Assets and Certain Liabilities by Technologies Pension Plan.....................      13
3.2    Pension Asset Transfers...............................................................................      14
3.3    Assumption of Parent Puerto Rico Pension Plan.........................................................      14

ARTICLE IV. DEFINED CONTRIBUTION PLANS.......................................................................      15

4.1    Defined Contribution Plans and Defined Contribution Plan for Bargaining
       Unit Employees........................................................................................      15
4.2    Defined Contribution Plan Asset Transfer..............................................................      15
4.3    Assumption of Parent Puerto Rico Savings Plan.........................................................      15

ARTICLE V. HEALTH AND WELFARE PLANS..........................................................................      15

5.1    Assumption of Health and Welfare Plans' Liabilities...................................................      15
5.2    Establishment of Mirror VEBA..........................................................................      16
5.3    VEBA Asset Transfers..................................................................................      16
5.4    Investments of and Distribution from VEBAs............................................................      16
5.5    Vendor Contracts......................................................................................      16
5.6    Parent Long-Term Disability...........................................................................      18
5.7    Post-Retirement Health and Life Insurance Benefits....................................................      19
5.8    COBRA.................................................................................................      19
5.9    Leave of Absence Programs.............................................................................      19
5.10   Parent Workers' Compensation Program..................................................................      20
5.11   Post-Distribution Transitional Arrangements...........................................................      22

ARTICLE VI. EXECUTIVE BENEFITS AND NON-EMPLOYEE DIRECTOR BENEFITS............................................      23

6.1    Assumption of Obligations.............................................................................      23
6.2    Consents, Notifications and Assignments...............................................................      23
6.3    Parent Incentive Plans................................................................................      24
6.4    Parent Award Deferrals................................................................................      25
6.5    Non-Employee Director Benefits........................................................................      25
6.6    Rabbi Trust...........................................................................................      27

ARTICLE VII. OTHER BENEFITS..................................................................................      28
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<S>                                                                                                                <C>
ARTICLE VIII. GENERAL AND ADMINISTRATIVE.....................................................................      28

8.1    Payment of Administrative Costs and Expenses..........................................................      28
8.2    Payment of Liabilities, Plan Expenses and Related Matters.............................................      29
8.3    Sharing of Participant Information....................................................................      30
8.4    Reporting and Disclosure and Communications to Participants...........................................      30
8.5    Non-Termination of Employment; No Third-Party Beneficiaries...........................................      30
8.6    Plan Audits...........................................................................................      31
8.7    Beneficiary Designations..............................................................................      31
8.8    Requests for IRS Rulings and DOL Opinions.............................................................      32
8.9    Fiduciary Matters.....................................................................................      32
8.10   Payroll Taxes and Reporting of Compensation...........................................................      32
8.11   Collective Bargaining.................................................................................      33
8.12   Consent of Third Parties..............................................................................      33

ARTICLE IX. FOREIGN PLANS....................................................................................      33

ARTICLE X. MISCELLANEOUS.....................................................................................      34

10.1   Effect If Distribution Does Not Occur.................................................................      34
10.2   Relationship of Parties...............................................................................      34
10.3   Affiliates............................................................................................      34
10.4   Incorporation of Separation and Distribution Agreement Provisions.....................................      34
10.5   Governing Law.........................................................................................      35
</TABLE>

                                      -iv-
<PAGE>

                           EMPLOYEE BENEFITS AGREEMENT

                                    RECITALS

         This EMPLOYEE BENEFITS AGREEMENT (this "Agreement"), dated as of ____
                                                 ---------
__, 2001 is by and between FMC CORPORATION, a Delaware corporation ("Parent"),
                                                                     ------
and FMC TECHNOLOGIES, INC., a Delaware corporation and a wholly owned subsidiary
of Parent ("Technologies").
            ------------

         WHEREAS, the Board of Directors of Parent has determined that it is in
the best interests of Parent and its stockholders to separate Parent's existing
businesses into two independent companies;

         WHEREAS, in furtherance of the foregoing, Parent and Technologies have
entered into a Separation and Distribution Agreement, dated as of the date
hereof (the "Separation and Distribution Agreement") and certain other
             -------------------------------------
agreements that will govern certain matters relating to the Separation and the
Contribution, the IPO, the Distribution and the relationship of Parent,
Technologies, and their respective Subsidiaries following the IPO and the
Distribution; and

         WHEREAS, pursuant to the Separation and Distribution Agreement, Parent
and Technologies have agreed to enter into this Agreement allocating assets,
liabilities and responsibilities with respect to certain employee and director
compensation and benefit plans and programs between them.

         NOW, THEREFORE, in consideration of the premises, and of the agreements
set forth herein, the parties hereto hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         Any capitalized terms that are used in this Agreement but not defined
herein (other than the names of Parent employee benefit plans) shall have the
meanings set forth in the Separation and Distribution Agreement, and, as used
herein, 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):

         1.1  Aetna Annuity means the non-participating group annuity contract
issued by Aetna Life Insurance Company funding a portion of the Parent Pension
Plan.

         1.2  Agreement means this Employee Benefits Agreement, including all
the Schedules and Exhibits hereto.

         1.3  ASO Contract is defined in Section 5.5(a)(i).
                                         -----------------

         1.4  Auditing Party is defined in Section 8.6(a)(i).
                                           -----------------

         1.5  Award means an award under an Incentive Plan.
<PAGE>

         1.6  Benefits and Employee Services Organization means the Employee
Service Center and corporate human resources department, including human
resources information systems and relocation, each of which shall be a part of
Parent through April 30, 2001 and each of which shall become a part of
Technologies effective as of May 1, 2001.

         1.7  Benefits Database is defined in Section 5.11(c)(iii).
                                              --------------------

         1.8  Change is defined in Section 2.5(b)(i).
                                   -----------------

         1.9  Close of the Distribution Date means 11:59:59 P.M. City of Chicago
time on the Distribution Date.

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

         1.11 Code means the Internal Revenue Code of 1986, as amended, or any
successor Federal income tax law. Reference to a specific Code provision also
includes any proposed, temporary or final regulation in force under that
provision.

         1.12 Defined Contribution Plan, when immediately preceded by "Parent,"
means the FMC Corporation Savings and Investment Plan. When immediately preceded
by "Technologies," Defined Contribution Plan means the plan to be established by
Technologies pursuant to Section 2.3 that corresponds to both the Parent Defined
                         -----------
Contribution Plan and the Parent Defined Contribution Plan for Bargaining Unit
Employees.

         1.13 Defined Contribution Plan for Bargaining Unit Employees means the
FMC Corporation Savings and Investment Plan for Bargaining Unit Employees.

         1.14 Distribution Date Ratio means the amount obtained by dividing the
Parent Distribution Date Stock Value by the Technologies Distribution Date Stock
Value.

         1.15 DOL means the United States Department of Labor.

         1.16 Enrolled Actuary means Hewitt Associates, 100 Half Day Road,
Lincolnshire, Illinois 60069.

         1.17 ERISA means the Employee Retirement Income Security Act of 1974,
as amended. Reference to a specific provision of ERISA also includes any
proposed, temporary or final regulation in force under that provision.

         1.18 Excluded Liabilities means any Liabilities to or relating to
Parent Transferred Employees and their respective dependents and beneficiaries
relating to, arising out of or resulting from employment by Technologies or a
Technologies Entity before becoming Parent Transferred Employees or employment
by Parent or a Parent Entity (including, without limitation, Liabilities under
Parent Plans).

                                      -2-
<PAGE>

         1.19  Executive Benefit Plans, when immediately preceded by "Parent,"
means the executive benefit and nonqualified plans, programs and arrangements
established, maintained, agreed upon or assumed by Parent or a Parent Entity for
the benefit of executive employees and former executive employees of Parent or a
Parent Entity before the Close of the Distribution Date, as set forth on
Schedule A. When immediately preceded by "Technologies," Executive Benefit Plans
----------
means the plans to be established by Technologies pursuant to Section 2.3 that
                                                              -----------
correspond to the respective Parent Executive Benefit Plans. Executive Benefit
Plans do not include Foreign Plans.

         1.20  Flexible Benefits Plan, when immediately preceded by "Parent,"
means the FMC Flexible Benefits Plan. When immediately preceded by
"Technologies," Flexible Benefits Plan means the portion of the plan to be
established by Technologies pursuant to Section 2.3 that corresponds to the
                                        -----------
Parent Flexible Benefits Plan.

         1.21  FMLA means the Family and Medical Leave Act of 1993, as amended.

         1.22  Foreign Plans, when immediately preceded by "Parent," means the
plans, programs and arrangements established, maintained, agreed upon or assumed
by Parent or a Parent Entity primarily for the benefit of individuals
substantially all of whom are nonresident aliens of the United States before the
Close of Distribution Date, as set forth on Schedule B. When immediately
preceded by "Technologies," Foreign Plans means the plans to be established by
Technologies pursuant to Section 2.3 that correspond to the respective Parent
                         -----------
Foreign Plans.

         1.23  Group Insurance Policies is defined in Section 5.5(b)(i).
                                                      -----------------

         1.24  Group Life Program, when immediately preceded by "Parent," means
the portion of the FMC Corporation Welfare Benefits Plan that provides group
basic life insurance coverage, and the portion of the Parent VEBA, if any, that
provides group supplemental life insurance coverage for the benefit of employees
and retirees of Parent and certain Parent entities established, maintained,
agreed upon or assumed by Parent or a Parent Entity before the Close of the
Distribution Date. When immediately preceded by "Technologies," Group Life
Program means the plans to be established by Technologies pursuant to Section
                                                                      -------
2.3 that correspond to the respective Parent Group Life Program.
---

         1.25  HCFA means the Health Care Financing Administration.

         1.26  Health and Welfare Plans, when immediately preceded by "Parent,"
means the health and welfare plans, programs and arrangements established and
maintained, agreed upon or assumed by Parent or a Parent Entity for the benefit
of employees and retirees of Parent and certain Parent Entities, before the
Close of the Distribution Date, as set forth on Schedule C. When immediately
                                                ----------
preceded by "Technologies," Health and Welfare Plans means the plans to be
established by Technologies pursuant to Section 2.3 that correspond to the
                                        -----------
respective Parent Health and Welfare Plans. Health and Welfare Plans do not
include Foreign Plans.

         1.27  HMO means a health maintenance organization that provides insured
benefits under the Parent Medical Plans or the Technologies Medical Plans.

         1.28  HMO Agreements is defined in Section 5.5(c)(i).
                                            -----------------

                                      -3-
<PAGE>

         1.29  Immediately after the Distribution Date means 12:00 A.M. City of
Chicago time on the day after the Distribution Date.

         1.30  Incentive Plan, when immediately preceded by "Parent," means any
of the cash and stock-based incentive plans, programs and arrangements
established, maintained, agreed upon or assumed by Parent for the benefit of
employees of Parent or a Parent Entity before the Close of the Distribution
Date, as set forth on Schedule D. When immediately preceded by "Technologies,"
                      ----------
Incentive Plan means the Incentive Plan to be established by Technologies
pursuant to Section 2.3 that corresponds to the Parent Incentive Plan and the
            -----------
Parent Non-Employee Director Plan. Incentive Plans do not include Foreign Plans.

         1.31  Individual Agreement means an individual contract or agreement
(whether written or unwritten) entered into between Parent, a Parent Entity,
Technologies or a Technologies Entity and a Parent Executive that establishes
the right of such individual to special executive compensation or benefits,
including, without limitation, supplemental pension benefit, hiring bonus, loan,
guaranteed payment, special allowance, tax equalization or disability benefit.

         1.32  Initial Pension Transfer means an amount estimated by the
Enrolled Actuary to be equal to eighty-five percent (85%) of the amount
described in Section 3.2(a) as of the close of business on April 30, 2001.
             --------------

         1.33  IPO Ratio means the amount obtained by dividing the Parent IPO
Stock Value by the Technologies IPO Stock Value.

         1.34  IRS means the Internal Revenue Service.

         1.35  Leave of Absence means any authorized leave of absence,
including, without limitation, leaves of absence for short-term disability,
long-term disability and workers' compensation.

         1.36  Legally Permissible is defined in Section 5.10(a)(iv).
                                                 -------------------

         1.37  Material Feature means any feature of a Plan that could
reasonably be expected to be of material importance to the sponsoring employer
or the participants and beneficiaries of the Plan, which could include,
depending on the type and purpose of the particular Plan, the class or classes
of employees eligible to participate in such Plan, the nature, type, form,
source and level of benefits provided by the employer under such Plan and the
amount or level of contributions, if any, required to be made by participants
(or their dependents or beneficiaries) to such Plan.

         1.38  Medical Plan, when immediately preceded by "Parent," means the
portion of the FMC Corporation Welfare Benefits Plan that provides medical
benefits to employees and retirees of Parent and certain Parent Entities
established, maintained, agreed upon or assumed by Parent or a Parent Entity.
When immediately preceded by "Technologies," Medical Plan means the portion of
the plan to be established by Technologies pursuant to Section 2.3 that
                                                       -----------
corresponds to the Parent Medical Plan.

         1.39  Non-Employee Director, when immediately preceded by "Parent,"
means a member of Parent's Board of Directors who is not an employee of Parent,
a Parent Entity,

                                      -4-
<PAGE>

Technologies or a Technologies Entity, and who is not a Technologies
Non-Employee Director. When immediately preceded by "Technologies," Non-Employee
Director means a member of Technologies' Board of Directors who is not an
employee of Parent, a Parent Entity, Technologies or a Technologies Entity, and
who is not a Parent Non-Employee Director. When immediately preceded by "Parent
and Technologies," Non-Employee Director means a member of Parent's Board of
Directors and Technologies' Board of Directors who is not an employee of Parent,
a Parent Entity, Technologies or a Technologies Entity.

         1.40  Non-Employee Director Plan, when immediately preceded by
"Parent," means the FMC Corporation Compensation Plan for Non-Employee
Directors, and when immediately preceded by "Technologies," Non-Employee
Director Plan means the portion of the Technologies Incentive Plan to be
established by Technologies pursuant to Section 2.3 that corresponds to the
                                        -----------
Parent Non-Employee Director Plan.

         1.41  Non-parties is defined in Section 8.6(a)(ii).
                                         ------------------

         1.42  Option, when immediately preceded by "Parent," means an option to
purchase Parent Common Stock. When immediately preceded by "Technologies,"
Option means an option to purchase Technologies Common Stock, in each case
pursuant to an Incentive Plan.

         1.43  Outsource is defined in Section 5.10(a)(iii).
                                       --------------------

         1.44  Parent is defined in the first paragraph of Recitals to this
Agreement.

         1.45  Parent Distribution Date Stock Value means the closing price of
the Parent Common Stock as listed on the NYSE on the Distribution Date.

         1.46  Parent Entity means any Person that is, at the relevant time, an
Affiliate of Parent, except that, for periods beginning on and after the IPO
Date, the term "Parent Entity" shall not include Technologies or a Technologies
Entity.

         1.47  Parent Executive means an employee or former employee of Parent,
a Parent Entity, Technologies or a Technologies Entity, who immediately before
the Close of the Distribution Date is eligible to participate in or receive a
benefit under any Parent Executive Benefit Plan.

         1.48  Parent IPO Stock Value means the closing price of the Parent
Common Stock as listed on the NYSE on the trading day immediately preceding the
IPO.

         1.49  Parent Leave of Absence Programs means the Short-Term Disability
Leave, Union Business Leave, Military Leave, FMLA Leave and any other leave
programs offered from time to time under the personnel policies and practices of
Parent.

         1.50  Parent LTD Plan means the FMC Long-Term Disability Plan.

         1.51  Parent Transfer Date Stock Value means, with respect to any
Technologies Administrative Employee, the closing price of the Parent Common
Stock as listed on the NYSE on the trading day immediately preceding the
Transfer Date.

                                      -5-
<PAGE>

         1.52  Parent Transferred Employee means an individual who (a) on May 1,
2001, is either actively employed by or on Leave of Absence from Technologies or
a Technologies Entity, if such individual is part of a work group or
organization that, at any time before the Close of the Distribution Date, moves
to the employ of Parent or a Parent Entity; (b) on May 1, 2001, is either
actively employed by or on Leave of Absence from a Parent Entity that becomes a
Technologies Entity before the Close of the Distribution Date, if such
individual, at any time before the Close of the Distribution Date, moves to the
employ of Parent or a Parent Entity that does not become a Technologies Entity
before the Close of the Distribution Date; or (c) on May 1, 2001, is either
actively employed by or on Leave of Absence from Technologies or a Technologies
Entity in a common support function, is at any time before the Close of the
Distribution Date designated by Parent for transfer to Parent or a Parent Entity
and, at any time after May 1, 2001 and before the Close of the Distribution
Date, moves to the employ of Parent or a Parent Entity. In addition, Parent and
Technologies may designate, by mutual agreement, any other individual or group
of individuals as Parent Transferred Employees.

         1.53  Parent WCP means the Parent Workers' Compensation Program,
comprised of the various arrangements established by Parent or a Parent Entity
to comply with the workers' compensation requirements of the states in which
Parent and its Affiliates conduct business.

         1.54  Participating Company means (a) Parent, and (b) any Person, other
than an individual, that is, by the terms of such a Plan, participating in such
Plan or has any employees who are, by the terms of such Plan, participating in
such Plan.

         1.55  PBGC means the Pension Benefit Guaranty Corporation.

         1.56  Pension Interest means the amount of the net earnings or losses,
as the case may be, on the average of the daily balances of (a) the amount
described by Section 3.2(a), less (b) the amount described by Section 3.2(b),
             --------------                                   --------------
less (c) the Initial Pension Transfer, based upon the actual rate of return
earned by the Parent Pension Plan for each full month from May 1, 2001 and prior
to the date of asset transfer, and based upon an interest rate of six and one-
half percent (6.5%) per annum for the period beginning on the first day of the
month containing the asset transfer date and ending on the date immediately
preceding the date of asset transfer.

         1.57  Pension Plan, when immediately preceded by "Parent," means the
FMC Corporation Employees' Retirement Program. When immediately preceded by
"Technologies," Pension Plan means the pension plan to be established by
Technologies pursuant to Section 2.3 that corresponds to the Parent Pension
                         -----------
Plan.

         1.58  Plan, when immediately preceded by "Parent" or "Technologies,"
means any plan, policy, program, payroll practice, on-going arrangement,
contract, trust, annuity contract, insurance policy or other agreement or
funding vehicle providing benefits to employees, former employees, dependents of
employees or former employees, or Non-Employee Directors of Parent or
Technologies or Parent and Technologies, as applicable, other than Foreign
Plans.

         1.59  Prudential Annuity means the participating group annuity contract
issued by The Prudential Insurance Company of America funding a portion of the
Parent Pension Plan.

                                      -6-
<PAGE>

         1.60  Puerto Rico Medical and Dental Plan, when immediately preceded by
"Parent," means the FMC Puerto Rico Medical and Dental Plan. When immediately
preceded by "Technologies," Puerto Rico Medical and Dental Plan means the Parent
Puerto Rico Medical and Dental Plan to be assumed by Technologies pursuant to
Section 2.3.
-----------

         1.61  Puerto Rico Pension Plan, when immediately preceded by "Parent,"
means the FMC Puerto Rico Retirement Plan. When immediately preceded by
"Technologies," Puerto Rico Pension Plan means the Parent Puerto Rico Pension
Plan to be assumed by Technologies pursuant to Section 2.3.
                                               -----------

         1.62  Puerto Rico Savings Plan, when immediately preceded by "Parent,"
means the FMC Puerto Rico Savings and Investment Plan. When immediately preceded
by "Technologies," Puerto Rico Savings Plan means the Parent Puerto Rico Savings
Plan to be assumed by Technologies pursuant to Section 2.3.
                                               -----------

         1.63  QDRO means a domestic relations order which qualifies under
Section 414(p) of the Code and Section 206(d) of ERISA and which creates or
recognizes an alternate payee's right to, or assigns to an alternate payee, all
or a portion of the benefits payable to a participant under the Parent Pension
Plan and/or one of the Parent Savings Plans.

         1.64  QMCSO means a medical child support order which qualifies under
Section 609(a) of ERISA and which creates or recognizes an alternate recipient's
right to, or assigns to an alternate recipient the right to, receive benefits
for which a participant or beneficiary is eligible under a Parent Medical Plan.

         1.65  Rabbi Trusts, when immediately preceded by "Parent," means the
FMC Executive Severance Trust, the FMC Supplemental Pension Trust, the FMC
Non-Qualified Retirement and Thrift Trust and the Moorco International, Inc.
Executive Retirement Trust. When immediately preceded by "Technologies," Rabbi
Trust means the grantor trusts to be established by Technologies pursuant to
Section 6.6(a) that correspond to the respective Parent Rabbi Trusts.
--------------

         1.66  Savings Plan(s), when immediately preceded by "Parent," means the
Parent Defined Contribution Plan and the Parent Defined Contribution Plan for
Bargaining Unit Employees. When immediately preceded by "Technologies," Savings
Plan means the Technologies Defined Contribution Plan.

         1.67  Separation and Distribution Agreement is defined in the third
paragraph of the Recitals to this Agreement.

         1.68  Supplemental Pension Plan, when immediately preceded by "Parent,"
means the Parent Salaried Employees' Equivalent Retirement Plan. When
immediately preceded by "Technologies," Supplemental Pension Plan means the
supplemental pension plan to be established by Technologies that corresponds to
the Parent Supplemental Pension Plan pursuant to Section 2.3.
                                                 -----------

         1.69  Technologies is defined in the first paragraph of Recitals to
this Agreement.

         1.70  Technologies Administrative Employees is defined in Section
                                                                   -------
8.1(b).
------

                                      -7-
<PAGE>

         1.71  Technologies Distribution Date Stock Value means the closing
price of the Technologies Common Stock as listed on the NYSE on the Distribution
Date.

         1.72  Technologies Entity means any Person that is, at the relevant
time, a Subsidiary or an Affiliate of Technologies.

         1.73  Technologies Individual means any individual other than any
Parent Transferred Employee who (a) on May 1, 2001, is either actively employed
by or on Leave of Absence from Technologies or a Technologies Entity; (b) is
either actively employed by or on Leave of Absence from Parent or a Parent
Entity and moves from the employ of Parent or a Parent Entity to the employ of
Technologies or a Technologies Entity before the Close of the Distribution Date;
(c) is either actively employed by or on Leave of Absence from a Parent Entity
that becomes a Technologies Entity before the Close of the Distribution Date; or
(d) is a Technologies Administrative Employee. In addition, Parent and
Technologies may designate, by mutual agreement, any other individual or group
of individuals as Technologies Individuals.

         1.74  Technologies IPO Stock Value means the initial public offering
price of the Technologies Common Stock offered to investors in the IPO.

         1.75  Technologies Transfer Date Stock Value means, with respect to a
Technologies Individual, the closing price of the Technologies Common Stock as
listed on the NYSE on the trading day immediately preceding the Transfer Date.

         1.76  Technologies WCP Claims is defined in Section 5.10(a)(i).
                                                     ------------------

         1.77  Transfer Date means, with respect to a Technologies
Administrative Employee, the later of the Distribution Date and the date he or
she becomes a Technologies Individual.

         1.78  Transfer Date Ratio means, with respect to a Technologies
Administrative Employee, the amount obtained by dividing the Parent Transfer
Date Stock Value with respect to such Technologies Administrative Employee by
the Technologies Transfer Date Stock Value with respect to such Technologies
Administrative Employee.

         1.79  Transferred Individual means any individual who, as of the Close
of the Distribution Date (or with respect to the Technologies Pension Plan and
the Technologies Supplemental Pension Plan any individual who, as of May 1,
2001) is: (a) either actively employed by or on Leave of Absence from
Technologies or a Technologies Entity; or (b) neither actively employed by, nor
on a Leave of Absence from, Technologies or a Technologies Entity, but who (i)
was a Technologies Individual, or (ii) whose most recent active employment with
Parent or a past or present Affiliate of Parent was with one of the corporate
divisions constituting part of the Technologies Business, as set forth on
Schedule E. Transferred Individuals shall also include the Technologies
----------
Administrative Employees from and after the Transfer Date. An alternate payee
under a QDRO, an alternate recipient under a QMCSO, a beneficiary or a covered
dependent, in each case, of an employee or former employee described in either
of the preceding two sentences shall also be a Transferred Individual with
respect to that employee's or former employee's benefit under the applicable
Plans. Such an alternate payee, alternate recipient, beneficiary or covered
dependent shall not otherwise be considered a Transferred

                                      -8-
<PAGE>

Individual with respect to his or her own benefits under any applicable Plans
unless he or she is a Transferred Individual by virtue of either of the first
two sentences of this definition. In addition, Parent and Technologies may
designate, by mutual agreement, any other individuals, or group of individuals,
as Transferred Individuals. An individual may be a Transferred Individual
pursuant to this definition regardless of whether such individual is or was a
Technologies Individual and regardless of whether such individual is, as of the
Distribution Date (or, with respect to the Technologies Pension Plan and the
Technologies Supplemental Pension Plan, May 1, 2001), alive, actively employed,
on a temporary Leave of Absence from active employment, on layoff, terminated
from employment, retired or on any other type of employment or post-employment
status relative to a Parent Plan, and regardless of whether, as of the Close of
the Distribution Date (or, with respect to the Technologies Pension Plan and the
Technologies Supplemental Pension Plan, May 1, 2001), such individual is then
receiving any benefits from a Parent Plan.

         1.80  VEBA, when immediately preceded by "Parent," means the FMC Master
Welfare Benefits Trust. When immediately preceded by "Technologies," VEBA means
the trust, if any, to be established by Technologies pursuant to Section 2.3
                                                                 -----------
that corresponds to the Parent VEBA.

         1.81  VEBA Plans is defined in Section 5.3.
                                        -----------

                                   ARTICLE II
                               GENERAL PRINCIPLES

         2.1   Assumption of Liabilities. Technologies hereby assumes and agrees
to pay, perform, fulfill and discharge, in accordance with their respective
terms, all of the following, regardless of when or where such Liabilities arose
or arise or were or are incurred, except as expressly provided otherwise in this
Agreement: (a) all Liabilities to or relating to Technologies Individuals and
Transferred Individuals, and their respective dependents and beneficiaries, in
each case relating to, arising out of or resulting from employment by Parent or
a Parent Entity before becoming Technologies Individuals or Transferred
Individuals, respectively, including, without limitation, Liabilities under
Parent Plans and Technologies Plans; (b) all other Liabilities to or relating to
Technologies Individuals, Transferred Individuals and other employees or former
employees of Technologies or a Technologies Entity, and their respective
dependents and beneficiaries, in each case relating to, arising out of or
resulting from future, present or former employment with Technologies or a
Technologies Entity, including, without limitation, Liabilities under Parent
Plans and Technologies Plans; (c) all Liabilities relating to, arising out of or
resulting from any other actual or alleged employment relationship with
Technologies or a Technologies Entity, including, without limitation, all
Liabilities relating to, arising out of or resulting from any collective
bargaining agreement covering any Technologies Individuals or Transferred
Individuals; and (d) all other Liabilities relating to, arising out of or
resulting from obligations and responsibilities expressly assumed or retained by
Technologies, a Technologies Entity, or a Technologies Plan pursuant to this
Agreement. Notwithstanding the foregoing, Technologies shall not, by virtue of
any provision of this Agreement or the Separation and Distribution Agreement, be
deemed to have assumed any Excluded Liabilities.

                                      -9-
<PAGE>

         2.2  Technologies Participation in Parent Plans.

                (a) Participation in Parent Plans. Effective as of May 1, 2001
and subject to the terms and conditions of this Agreement, Technologies and each
Technologies Entity that is not, as of the date hereof, a Participating Company
in any Parent Plan shall become a Participating Company in each Parent Plan,
other than the Parent Pension Plan and the Parent Supplemental Pension Plan, to
the extent in effect as of May 1, 2001. Effective as of May 1, 2001 each
Technologies Entity that is, as of the date of this Agreement, a Participating
Company in a Parent Plan shall continue as such; provided, however, that each
Technologies Entity that is, as of the date of this Agreement, a Participating
Company in the Parent Pension Plan and the Parent Supplemental Pension Plan
shall cease being a Participating Company in the Parent Pension Plan and the
Parent Supplemental Pension Plan effective as of May 1, 2001. Notwithstanding
the foregoing, the Foreign Plans shall be governed by Article IX hereof.
                                                      ----------

                (b) Parent's General Obligations as Plan Sponsor. Effective May
1, 2001, Parent shall transfer responsibility to Technologies to administer, or
cause to be administered, in accordance with their terms and applicable law, the
Parent Plans, and from and after May 1, 2001 through December 31, 2002,
Technologies shall have the sole discretion and authority to interpret the
Parent Plans as set forth therein consistent with Section 2.5(e).

                (c) Technologies' General Obligations as Participating Company.
Technologies shall perform with respect to its participation in the Parent
Plans, and shall cause each Technologies Entity with respect to its
participation in the Parent Plans to perform, the duties of a Participating
Company as set forth in such Plans or any procedures adopted pursuant thereto,
including, without limitation: (i) assisting in the administration of claims to
the extent requested by the claims administrator of the applicable Parent Plan;
(ii) cooperating fully with Parent Plan auditors, benefit personnel and benefit
vendors; (iii) preserving the confidentiality of all financial arrangements
Parent has or may have with any vendors, claims administrators, trustees or any
other entity or individual with whom Parent has entered into an agreement
relating to the Parent Plans; and (iv) preserving the confidentiality of all
participant health information. From and after May 1, 2001 through December 31,
2002, Parent shall perform and shall cause each Parent Entity to perform the
duties described above as if it were a Participating Company.

                (d) Termination of Participating Company Status. Effective as of
May 1, 2001, each of Technologies and each Technologies Entity shall cease to be
a Participating Company in the Parent Pension Plan and the Parent Supplemental
Pension Plan. Effective as of the Close of the Distribution Date, each of
Technologies and each Technologies Entity shall cease to be a Participating
Company in the Parent Plans, other than the Parent Pension Plan and the Parent
Supplemental Pension Plan.

         2.3  Establishment of Technologies Plans. Effective as of the
Distribution Date, Technologies shall adopt, cause to be adopted, or shall
assume, as applicable, the Technologies Savings Plan, Technologies Puerto Rico
Savings Plan, Technologies Puerto Rico Pension Plan, Technologies Puerto Rico
Medical and Dental Plan, Technologies Foreign Plans, Technologies Health and
Welfare Plans and Technologies Executive Benefit Plans (other than the Parent
Supplemental Pension Plan) for the benefit of the Transferred Individuals and
other current,

                                      -10-
<PAGE>

future and former employees of Technologies and the Technologies Entities. The
foregoing Technologies Plans as in effect as of the Distribution Date shall be
substantially identical in all Material Features to the corresponding Parent
Plans as in effect as of the Close of the Distribution Date. Effective as of May
1, 2001, Technologies shall adopt, or cause to be adopted, the Technologies
Pension Plan and the Technologies Supplemental Pension Plan for the benefit of
the Transferred Individuals and other current, future and former employees of
Technologies and the Technologies Entities. The Technologies Pension Plan and
the Technologies Supplemental Pension Plan as in effect as of May 1, 2001 shall
each be substantially identical in all Material Features to the Parent Pension
Plan and the Parent Supplemental Pension Plan as in effect as of May 1, 2001.
Notwithstanding the foregoing, the Foreign Plans shall be governed by Article IX
                                                                      ----------
hereof. Notwithstanding the foregoing, the Technologies Incentive Plan,
including the Technologies Non-Employee Director Plan, shall be adopted by
Technologies and approved by Parent as sole shareholder of Technologies, before
the IPO Date, to become effective as of May 1, 2001. The Technologies Incentive
Plan shall be substantially identical in all Material Features to the
corresponding Parent Incentive Plan and the Parent Non-Employee Director Plan,
except that such Technologies Incentive Plan shall provide for all stock-based
awards to be based upon Technologies Common Stock rather than Parent Common
Stock.

         2.4  Terms of Participation by Transferred Individuals in Technologies
Plans and Technologies Non-Employee Directors in the Technologies Non-Employee
Director Plan.

                (a) Technologies Plans. The Technologies Plans shall be, with
respect to Transferred Individuals, in all respects the successors in interest
to, and shall not provide benefits that duplicate benefits provided by, the
corresponding Parent Plans. Parent and Technologies shall agree on methods and
procedures, including, without limitation, amending the respective Plan
documents, to prevent Transferred Individuals from receiving duplicative
benefits from the Parent Plans and the Technologies Plans. With respect to
Transferred Individuals, each Technologies Plan shall provide that all service,
all compensation and all other benefit-affecting determinations that, as of the
Close of the Distribution Date, were recognized under the corresponding Parent
Plan shall, as of Immediately after the Distribution Date, receive full
recognition, credit and validity and be taken into account under such
Technologies Plan to the same extent as if such items occurred under such
Technologies Plan, except to the extent that duplication of benefits would
result. The provisions of this Agreement that provide for the transfer of assets
from the Parent Plans to the corresponding Technologies Plans are based upon the
understanding of the parties that each such Technologies Plan will assume all
Liabilities of the corresponding Parent Plan to or relating to Transferred
Individuals, as provided for herein. If any such Liabilities are not effectively
assumed by the appropriate Technologies Plan, then the amount of assets
transferred to the Technologies Plan from the corresponding Parent Plan shall be
recomputed, ab initio, as set forth below but taking into account the retention
of such Liabilities by such Parent Plan, and assets shall be transferred by the
Technologies Plan to the Parent Plan so as to place each such Plan in the
position it would have been in, had the initial asset transfer been made in
accordance with such recomputed amount of assets.

                (b) Technologies Non-Employee Director Plan. With respect to the
Technologies Non-Employee Directors who participated in the corresponding Parent
Non-Employee Director Plan prior to the Distribution Date, the Technologies
Non-Employee Director

                                      -11-
<PAGE>

Plan shall be, in all respects the successor in interest to, and shall not
provide benefits that duplicate benefits provided by, the Parent Non-Employee
Director Plan. With respect to the Parent and Technologies Non-Employee
Directors who, prior to the Distribution Date participated in, and who continue
to participate in the corresponding Parent Non-Employee Director Plan after the
Distribution Date, the Technologies Non-Employee Director Plan shall be the
successor in interest to a portion of, and shall not provide benefits that
duplicate benefits provided by the Parent Non-Employee Director Plan.

         2.5  Procedures for Amendments to Plans, Plan Designs, Administrative
Practices and Vendor Contracts.

                (a) Amendments to Plan Documents. From May 1, 2001 through
December 31, 2002, no amendment to any Parent Plan or Technologies Plan shall be
effective unless the party intending to amend a Plan has the consent of the
other party, or the amendment is required by applicable law, or the party
intending to amend its Plan has: (i) given the other party written notice of the
intention to amend, accompanied by a copy of the proposed amendment, at least
ninety (90) days in advance of the earlier of (A) the proposed amendment
effective date, or (B) the proposed amendment adoption date; and (ii) agreed to
bear all of the costs of implementing the amendment incurred by the Benefits and
Employee Services Organization, third-party administrators, insurance companies
and other vendors and passed through to one or both of the parties.

                (b) Changes in Vendor Contracts, Group Insurance Policies, Plan
Design and Administration Practices and Procedures.

                    (i)   From May 1, 2001 through December 31, 2002, neither
Parent nor Technologies shall materially modify, or take other action which
would have a material effect on, any of the following (each such modification, a
"Change") without complying with Section 2.5(b)(ii) unless the party intending
                                 ------------------
to make such Change has the consent of the other party or such Change is
required by law or is made to comply with the terms of Section 5.5: (A) the
                                                       -----------
termination date, administration or operation of (1) an ASO contract between
Parent or Technologies and a third-party administrator, (2) a Group Insurance
Policy issued to Parent or Technologies or (3) an HMO Agreement with Parent or
Technologies; (B) the design of either a Parent Plan or a Technologies Plan; or
(C) the financing, operation, administration or delivery of benefits under
either a Parent Plan or a Technologies Plan.

                    (ii)  Neither Parent nor Technologies shall make any Change
unless the party intending to make the Change has: (A) given the other party
written notice of the intention to make the Change, accompanied by a written
description of the Change, at least ninety (90) days in advance of the proposed
effective date of the Change; and (B) agreed to bear all of the costs of
implementing the Change which are incurred by the Benefits and Employee Services
Organization, all third-party administrators, insurance companies, HMOs and
other vendors and passed through to one or both of the parties.

                (c) Other Amendments or Changes. If Parent or Technologies
desires to amend a Plan and/or make a Change that requires compliance with, but
cannot satisfy all of the conditions of Section 2.5(a) or Section 2.5(b)(ii),
                                        --------------    ------------------
the party desiring to make the amendment or

                                      -12-
<PAGE>

Change may submit a written request for approval of the amendment or Change,
accompanied by a written description of the amendment or Change, to the Vice
President, Human Resources of the party from which approval is requested. The
desired amendment or Change may be implemented only if approved in writing by
the Vice President of Human Resources of both parties. Notwithstanding the
foregoing, the Foreign Plans shall be governed by Article IX hereof.
                                                  ----------

                (d) Employee Contributions. Notwithstanding the provisions of
Section 2.5(a) and Section 2.5(b), as of the first January 1 after the
--------------     --------------
Distribution Date, Parent and Technologies shall each have the independent
right, in its sole discretion and without compliance with Section 2.5(a) and
                                                          --------------
Section 2.5(b), to increase or decrease the amount of employee contributions
--------------
under its respective Plans.

                (e) Joint Administration. From the date of this Agreement
through December 31, 2002, the management and administration of the Parent
Plans, Technologies Plans, and all ASO Contracts, Group Insurance Policies, HMO
Agreements and other vendor contracts entered into or issued for the
administration of the Parent Plans and/or the Technologies Plans, including,
without limitation, the claims appeals, shall be conducted under the supervision
of the Vice President, Human Resources of Parent and Technologies, on the one
hand, and the Chief Human Resources Officer of Parent, on the other hand, who
shall provide strategic oversight and direction of the cohesive administration
of the Parent Plans and the Technologies Plans. Issues that cannot be resolved
by the Vice President, Human Resources of Parent and Technologies, on the one
hand, and the Chief Human Resources Officer, on the other hand, shall be decided
in accordance with Section 12.1 of the Separation and Distribution Agreement.

         2.6  Best Efforts. Parent and Technologies shall use their reasonable
best efforts to (a) enter into any necessary agreements to accomplish the
assumptions and transfers contemplated by this Agreement; and (b) provide for
the maintenance of the necessary participant records, the appointment of the
trustees and the engagement of recordkeepers, investment managers, providers,
insurers, etc.

         2.7  Regulatory Compliance. Parent and Technologies shall, in
connection with the actions taken pursuant to this Agreement, cooperate in
making any and all appropriate filings required under the Code, ERISA and any
applicable securities laws, implementing all appropriate communications with
participants, transferring appropriate records and taking all such other actions
as may be necessary and appropriate to implement the provisions of this
Agreement in a timely manner.

                                  ARTICLE III
                              DEFINED BENEFIT PLANS

         3.1  Assumption of Certain Assets and Certain Liabilities by
Technologies Pension Plan. Parent shall cause the Parent Pension Plan to
transfer to the Technologies Pension Plan assets equal to the amounts described
in Section 3.2 at such times as described in Section 3.2. The Technologies
   -----------                               -----------
Pension Plan shall assume all Liabilities for benefits payable to Transferred
Individuals under the Parent Pension Plan as of the later of May 1, 2001 and the
Transfer Date of such Transferred Individual, and, neither Parent nor the Parent
Pension Plan shall retain Liabilities for such benefits from and after the date
such Liabilities are assumed by the

                                      -13-
<PAGE>

Technologies Pension Plan. Parent shall cause the Parent Pension Plan to file
Form 5310-A with the IRS on or before April 1, 2001. Parent shall take such
action as is necessary to cause the Technologies Pension Plan to become the
holder of the portion of the Aetna Annuity that provides benefits to the
Transferred Individuals. Parent and Technologies shall use their reasonable best
efforts to effectuate a transfer of the portion of the Prudential Annuity that
provides benefits to the Transferred Individuals. With respect to all other
assets, Parent and Technologies agree to use their best efforts to make
transfers in kind to the extent practicable so as to preserve the investment
decisions as in effect on the date of transfer.

         3.2  Pension Asset Transfers. The total amount transferred from the
trust funding the Parent Pension Plan to the trust funding the Technologies
Pension Plan pursuant to this Section 3.2 shall be an amount equal to (a) less
                              -----------
(b), as adjusted by (c), where:

         (a)  equals the portion of the total assets of the Parent Pension Plan
which the Enrolled Actuary shall determine is allocable to the spun-off
Technologies Pension Plan for the benefit of the Transferred Individuals;

         (b)  equals the aggregate benefit payments made from the Parent Pension
Plan in respect of Transferred Individuals on the first day of each month from
May 1, 2001 through the date immediately preceding the date of the asset
transfer; and

         (c)  equals the amount of the Pension Interest from May 1, 2001 through
the date immediately preceding the date of the asset transfer.

         On May 1, 2001, or, as soon as practicable thereafter, Parent shall
cause the trustee of the trust funding the Parent Pension Plan to transfer to
the trustee of the trust funding the Technologies Pension Plan the Initial
Pension Transfer. Parent shall cause the trustee of the trust funding the Parent
Pension Plan to make a subsequent asset transfer or transfers to the trustee of
the trust funding the Technologies Pension Plan in an aggregate amount equal to
the difference between the amount described in (a) and the Initial Pension
Transfer, less the amount described in (b), as adjusted by (c) as soon as
practicable following the final calculation of the amount described in (a), but
in no event shall such transfer or transfers be later than May 1, 2002. All of
the calculations to be made under this Section 3.2 shall be made by the Enrolled
                                       -----------
Actuary using the actuarial assumptions set forth on Schedule F, and such
                                                     ----------
calculations shall comply with the requirements of Section 414(l) of the Code as
a result of the Enrolled Actuary performing an allocation of total plan assets
amongst the various priority categories described in Section 4044 of ERISA.

         3.3  Assumption of Parent Puerto Rico Pension Plan. Prior to the
Distribution Date, Technologies shall take, or cause to be taken, all such
action as is necessary to become the successor sponsor of, and assume all
Liabilities for, the Parent Puerto Rico Pension Plan and the Puerto Rican trust
funding the Parent Puerto Rico Pension Plan, effective Immediately after the
Distribution Date.

                                      -14-
<PAGE>

                                   ARTICLE IV
                           DEFINED CONTRIBUTION PLANS

         4.1  Defined Contribution Plans and Defined Contribution Plan for
Bargaining Unit Employees. Effective Immediately after the Distribution Date,
Parent shall cause the trustee of the master trust funding each of the Parent
Savings Plans to transfer to the trustee of the trust funding the corresponding
Technologies Savings Plan the amounts described in Section 4.2. As of the time
                                                   -----------
of such transfer, the Technologies Defined Contribution Plan shall assume and be
solely responsible for all Liabilities to or relating to Transferred Individuals
under the Parent Defined Contribution Plan and the Parent Defined Contribution
Plan for Bargaining Unit Employees, respectively.

         4.2  Defined Contribution Plan Asset Transfer. For each asset transfer
from the Parent Savings Plans to the Technologies Savings Plan pursuant to
Section 4.1, the amount transferred pursuant to this Section 4.2 shall equal the
-----------                                          -----------
value of the balances of all accounts of the participants in the Parent Defined
Contribution Plan and the Parent Defined Contribution Plan for Bargaining Unit
Employees who are, as of the date of transfer, Transferred Individuals.
Effective Immediately after the Distribution Date, the Parent Savings Plan shall
transfer one-half (1/2) of the balance of the forfeitures account to the
Technologies Savings Plan. Transfers of Parent Common Stock and Technologies
Common Stock and participant loans shall be made in kind. With respect to all
other assets, Parent and Technologies agree to use their best efforts to make
transfers in kind to the extent practicable so as to preserve the investments of
the Transferred Individuals as in effect on the date of such transfer.

         4.3  Assumption of Parent Puerto Rico Savings Plan. Prior to
Distribution Date, Technologies shall take, or cause to be taken, all such
action as is necessary to become the successor sponsor of, and assume all
Liabilities for, the Parent Puerto Rico Savings Plan and the Puerto Rican trust
funding the Parent Puerto Rico Savings Plan, effective Immediately after the
Distribution Date.

                                   ARTICLE V
                            HEALTH AND WELFARE PLANS

         5.1  Assumption of Health and Welfare Plans' Liabilities.

                (a) Effective Immediately after the Distribution Date, all
Liabilities to or relating to Transferred Individuals under the Parent Health
and Welfare Plans shall cease to be Liabilities of the Parent Health and Welfare
Plans and shall be assumed by the corresponding Technologies Health and Welfare
Plans, irrespective of when the claim underlying any such Liabilities was
incurred.

                (b) Notwithstanding Section 5.1(a), all treatments which have
                                    --------------
been pre-certified for or are being provided to a Transferred Individual as of
the Close of the Distribution Date shall be provided without interruption under
the appropriate Parent Health and Welfare Plan until such treatment is concluded
or discontinued pursuant to applicable plan rules and limitations, but
Technologies shall continue to be responsible for all Liabilities relating to,

                                      -15-
<PAGE>

arising out of, or resulting from such on-going treatments as of the Close of
the Distribution Date.

                (c) Prior to the Distribution Date, Technologies shall take, or
cause to be taken all such action as is necessary to become the successor
sponsor of, and assume all Liabilities for, the Parent Puerto Rico Medical and
Dental Plan, including, without limitation, any insurance contract or other
funding vehicle, effective Immediately after the Distribution Date.

         5.2  Establishment of Mirror VEBA. To the extent that assets and
liabilities remain in the Parent VEBA as of the Distribution Date, effective
Immediately after the Distribution Date, Technologies shall establish, or cause
to be established, the Technologies VEBA, for the purpose of funding outstanding
long-term disability, supplemental life insurance and other applicable benefits
under the Technologies Health and Welfare Plans. Such trust shall meet the
requirements of Code (SS) 419, 419A, 501(a) and 501(c)(9).

         5.3  VEBA Asset Transfers. To the extent that assets and liabilities
remain in the Parent VEBA as of the Distribution Date, this Section 5.3 shall
                                                            -----------
govern the transfer of assets from the Parent VEBA to the Technologies VEBA. As
soon as practicable after the Close of the Distribution Date, the Enrolled
Actuary shall determine the aggregate present value, as of the Close of the
Distribution Date, of the future benefit obligations of each Parent Plan funded
by the Parent VEBA ("VEBA Plans"), with respect to Transferred Individuals who
are eligible to receive benefits under the applicable VEBA Plan as of the Close
of the Distribution Date. As soon as practicable after such determination is
made, there shall be transferred from the Parent VEBA to the Technologies VEBA
an amount of assets having a fair market value on the date of transfer equal to
the product of (a) the aggregate present value of the projected future benefit
obligations to Transferred Individuals, divided by (b) the aggregate of all such
present values of the projected future benefits to all participants under the
VEBA Plans, multiplied by (c) the fair market value of the assets of the Parent
VEBA on the date of transfer, adjusted to take into account the extent to which
Parent and/or Technologies has opted to forego reimbursement from the VEBA of
any benefit obligation that was paid by Parent or Technologies, as applicable,
on or after the IPO Date and before the Close of the Distribution Date.

         5.4  Investments of and Distributions from VEBAs. Before the Close of
the Distribution Date, Parent shall have sole authority to direct the trustee of
the Parent VEBA as to the investment of any trust assets, including, but not
limited to, the use of plan assets to purchase insurance contracts and the
distributions and/or transfers of trust assets to Parent, Technologies, any
Participating Company in the VEBA, any paying agent, any successor trustee or
any other Person.

         5.5  Vendor Contracts.

                (a) Third-Party ASO Contracts.

                    (i)  Parent and Technologies shall use their reasonable best
efforts to amend each administrative services only contract with a third-party
administrator that relates to any of the Parent Health and Welfare Plans (an
"ASO Contract") in existence as of the date of

                                      -16-
<PAGE>

this Agreement that is applicable to Transferred Individuals to permit
Technologies to participate in the terms and conditions of such ASO Contract
from Immediately after the Distribution Date until December 31, 2002. Parent and
Technologies shall use their reasonable best efforts to cause all ASO Contracts
entered into after the date of this Agreement but before the Close of the
Distribution Date to allow Technologies to participate in the terms and
conditions thereof effective Immediately after the Distribution Date on the same
basis as Parent.

                    (ii)  The permissible ways in which Technologies'
participation may be effectuated include automatically making Technologies a
party to the ASO Contracts or obligating the third party to enter into a
separate ASO Contract with Technologies providing for the same terms and
conditions as are contained in the ASO Contracts to which Parent is a party.
Such terms and conditions shall include the financial and termination
provisions, performance standards, methodology, auditing policies, quality
measures and reporting requirements.

                    (iii) If by September 1, 2001, Parent and Technologies
determine that they will not be successful in negotiating contract language that
will permit compliance with Section 5.5(a)(i) and Section 5.5(a)(ii),
                            -----------------     ------------------
Technologies shall, effective Immediately after the Distribution Date, adopt a
contingency plan.

                (b) Group Insurance Policies.

                    (i)   This Section 5.5(b) applies to group insurance
                               --------------
policies not subject to allocation or transfer pursuant to the foregoing
provisions of this Article V ("Group Insurance Policies").

                    (ii)  Parent and Technologies shall use their reasonable
best efforts to amend each Group Insurance Policy in existence as of the date of
this Agreement that is applicable to Transferred Individuals for the provision
or administration of benefits under the Parent Health and Welfare Plans to
permit Technologies to participate in the terms and conditions of such policy
from Immediately after the Distribution Date until December 31, 2002. Parent and
Technologies shall use their reasonable best efforts to cause all Group
Insurance Policies that are applicable to Transferred Individuals entered into
or renewed after the date of this Agreement but before the Close of the
Distribution Date to allow Technologies to participate in the terms and
conditions thereof effective Immediately after the Distribution Date on the same
basis as Parent.

                    (iii) Technologies' participation in the terms and
conditions of each such Group Insurance Policy shall be effectuated by
obligating the insurance company that issued such insurance policy to Parent to
issue one or more separate policies to Technologies. Such terms and conditions
shall include, without limitation, the financial and termination provisions,
performance standards and target claims.

                    (iv)  If by September 1, 2001, Parent and Technologies
determine that they will not be successful in negotiating policy provisions that
will permit compliance with Section 5.5(b)(ii) and Section 5.5(b)(iii), Parent
                            ------------------     -------------------
and Technologies shall use their reasonable best efforts to either continue to
cover Technologies under Parent's Group Insurance Policies or procure a separate
policy for Technologies until Technologies has procured such separate insurance
policy

                                      -17-
<PAGE>

or made other arrangements for replacement coverage and Technologies
shall bear all costs incurred to continue such coverage.

                (c) HMO Agreements.

                    (i)   Parent and Technologies shall use their reasonable
best efforts to amend all agreements with HMOs that provide medical services
under the Parent Medical Plan ("HMO Agreements") in existence as of the date of
this Agreement that are applicable to Transferred Individuals to permit
Technologies to participate in the terms and conditions of such HMO Agreements,
in each case, from Immediately after the Distribution Date until December 31,
2002. Parent and Technologies shall use their reasonable best efforts to cause
all HMO Agreements entered into after the date of this Agreement but before the
Close of the Distribution Date to allow Technologies to participate in the terms
and conditions of such HMO Agreements from Immediately after the Distribution
Date until December 31, 2002 on the same basis as Parent.

                    (ii)  The permissible ways in which Technologies'
participation may be effectuated include, without limitation, automatically
making Technologies a party to the HMO Agreements or obligating the HMOs to
enter into agreements with Technologies that are identical to the HMO
Agreements. Such terms and conditions shall include, without limitation, the
financial and termination provisions of the HMO Agreements.

                    (iii) If by September 1, 2001, Parent and Technologies
determine that they will not be successful in negotiating arrangements that will
permit compliance with Section 5.5(c)(i) and Section 5.5(c)(ii), Parent and
                       -----------------     ------------------
Technologies shall use their reasonable best efforts to arrange for the
continued provision under its HMO Agreements of medical services to Technologies
Medical Plan participants from Immediately after the Distribution Date through
December 31, 2002, and Technologies shall bear all costs incurred to continue
such services.

                (d) Effect of Change in Rates. Parent and Technologies shall use
their reasonable best efforts to cause each of the insurance companies, HMOs and
third-party administrators providing services and benefits under the Parent
Health and Welfare Plans and the Technologies Health and Welfare Plans to
maintain the premium and/or administrative rates based on the aggregate number
of participants in both the Parent Health and Welfare Plans and the Technologies
Health and Welfare Plans through December 31, 2002. To the extent they are not
successful in such efforts, Parent and Technologies shall each bear the revised
premium or administrative rates attributable to the individuals covered by their
respective Health and Welfare Plans.

         5.6  Parent Long-Term Disability. Effective May 1, 2001, Technologies
shall assume responsibility for administering claims incurred under the Parent
LTD Plan pursuant to the terms of the Parent LTD Plan through such ASOs or Group
Insurance Policies as may be in effect from time to time through December 31,
2002 and under the Technologies LTD Plan from and after the Distribution Date.
Technologies shall administer such claims in the same manner, and using the same
methods and procedures, as Parent used in administering such claims.
Technologies shall have sole discretionary authority to make any necessary
determinations with respect to such claims, including, without limitation,
entering into settlements with respect to such claims. Any

                                      -18-
<PAGE>

determination made or settlements entered into by Technologies or its agents
with respect to such claims shall be final and binding.

         5.7  Post-Retirement Health and Life Insurance Benefits. Effective as
of May 1, 2001, Technologies shall assume responsibility for the administration
of post-retirement health and life insurance benefits under the applicable
Parent Health and Welfare Plans through December 31, 2002 and under the
applicable Technologies Health and Welfare Plans from and after the Distribution
Date. As soon as practicable after December 31, 2002, Technologies shall provide
Parent with a list of all individuals who are, as of December 31, 2002,
receiving retiree medical or dental coverage under the Parent Health and Welfare
Plans and/or post-retirement life insurance coverage under the Parent Group Life
Program, including, without limitation, all information necessary to calculate
the individuals' cost for such coverage; and a list of all individuals who are,
as of December 31, 2002, to the best knowledge of Technologies, eligible to
receive retiree medical or dental coverage under the Parent Health and Welfare
Plans and/or post-retirement life insurance coverage under the Parent Group Life
Program; and, for both lists, the type of retiree medical or dental coverage and
the level of life insurance coverage which they are receiving or for which they
are eligible, as applicable. Parent shall retain all liability for premiums due
to and any administration of the United Mine Workers Association Combined
Benefit Fund under the Coal Industry Retiree Health Benefit Act of 1992.

         5.8  COBRA. Effective as of May 1, 2001, Technologies shall assume
responsibility for administering compliance with the health care continuation
coverage requirements of COBRA and the Parent Health and Welfare Plans through
December 31, 2002 and the Technologies Health and Welfare Plans from and after
the Distribution Date, including, without limitation, filing all necessary
employee change notices with respect to their respective employees in accordance
with applicable COBRA policies and procedures.

         5.9  Leave of Absence Programs.

                (a) Effective May 1, 2001, Technologies shall assume
responsibility for administering compliance with the Parent Leave of Absence
Programs through December 31, 2002 and the Technologies Leave of Absence
Programs from and after the Distribution Date; provided, that, Parent and the
Parent Entities and Technologies and the Technologies Entities shall be
responsible for determining whether their respective employees are eligible for
leave under their respective Leave of Absence Programs in accordance with such
programs.

                (b) Effective Immediately after the Distribution Date: (i)
Technologies shall adopt, and shall cause each Technologies Entity to adopt,
leave of absence programs which are substantially identical in all Material
Features to the Parent Leave of Absence Programs as in effect on the
Distribution Date; (ii) Technologies shall honor, and shall cause each
Technologies Entity to honor, all terms and conditions of leaves of absence
which have been granted to any Transferred Individual under a Parent Leave of
Absence Programs before the Close of the Distribution Date by Parent,
Technologies, or a Technologies Entity, including, without limitation, such
leaves that are to commence after the Distribution Date; (iii) each party shall
be solely responsible for administering leaves of absence and compliance with
FMLA with respect to their employees; and (iv) Technologies and each
Technologies Entity shall recognize all periods of service of Transferred
Individuals with Parent or a Parent Entity, as applicable, to the

                                      -19-
<PAGE>

extent such service is recognized by Parent for the purpose of eligibility for
leave entitlement under the Parent Leave of Absence Programs; provided, that no
duplication of benefits shall be required by the foregoing.

                (c) As soon as administratively practicable after December 31,
2002, Technologies shall provide to Parent copies of all records pertaining to
all individuals then covered under the Parent Leave of Absence Programs to the
extent such records have not been provided previously to Parent or a Parent
Entity.

         5.10  Parent Workers' Compensation Program.

                (a) Administration of Claims.

                    (i)   Through the Close of the Distribution Date or such
earlier date as may be agreed by Parent and Technologies, (A) Parent shall
continue to be responsible for the administration of all claims that (1) are, or
have been, incurred under the Parent WCP before the Close of the Distribution
Date by Transferred Individuals, Technologies Individuals and other employees
and former employees of Technologies and the Technologies Entities through the
Close of the Distribution Date ("Technologies WCP Claims") and (2) have been
                                 -----------------------
historically administered by Parent or its insurance company, and (B)
Technologies shall continue to be responsible for the administration of all
Technologies WCP Claims that have been historically administered by
Technologies, if any.

                    (ii)  Effective Immediately after the Distribution Date or
such earlier date as may be agreed by Parent and Technologies, (A) Technologies
shall, to the extent Legally Permissible (as defined below), be responsible for
the administration of all Technologies WCP Claims, whether those claims were
previously administered by Parent or Technologies, and (B) Parent shall be
responsible for the administration of all Technologies WCP Claims not
administered by Technologies pursuant to clause (A), whether previously
administered by Parent or Technologies and whether under the self-insured or
insured portion of the Parent WCP. Any determination made, or settlement entered
into, by either party or its insurance company with respect to Technologies WCP
Claims for which it is administratively responsible shall be final and binding
upon the other party.

                    (iii) Each party shall fully cooperate with the other with
respect to the administration and reporting of Technologies WCP Claims, the
payment of Technologies WCP Claims determined to be payable, and the transfer of
the administration of any Technologies WCP Claims to the other party as
determined under Section 5.10(a)(ii). Either party shall have the right to
                 -------------------
"outsource" (i.e., transfer the administration of claims to a third party
 ---------
administrator or cause claims to be paid through insurance) any and all
Technologies WCP Claims for which it is administratively responsible.

                    (iv)  For purposes of this Section 5.10(a), "Legally
                                               ---------------   -------
Permissible" shall be determined on a state-by-state basis, and shall mean that
-----------
administration of Technologies WCP Claims by Technologies both (A) is
permissible under the applicable state's workers' compensation laws taking into
account all relevant facts, including, without limitation, that Technologies may
have a self-insurance certificate in that state and (B) would not have a

                                      -20-
<PAGE>

material adverse effect on Parent's self-insurance certificate within that
state. If it is determined that, in a particular state, it is Legally
Permissible for Technologies to administer Technologies WCP Claims, then
Technologies shall be responsible for the administration of all Technologies WCP
Claims incurred in that state, whether previously administered by Parent,
Technologies, or an insurance company. If it is determined that, in a particular
state, it is not Legally Permissible for Technologies to administer Technologies
WCP Claims, then Parent shall be responsible for the administration of all
Technologies WCP Claims incurred in that state, whether previously administered
by Parent, Technologies, or an insurance company.

                (b) Self-Insurance Status.

                    (i)   Parent shall amend its certificates of self-insurance
with respect to workers' compensation and any applicable group workers'
compensation insurance policies to include Technologies until the Close of the
Distribution Date, and Technologies shall fully cooperate with Parent in
obtaining such amendments. All costs incurred by Parent in amending such
certificates or group insurance policies, including, without limitation, filing
fees, adjustments of security and excess loss policies and amendment of safety
programs, shall be shared equally by Parent and Technologies. Parent shall use
its reasonable best efforts to obtain self-insurance status for workers'
compensation for Technologies effective Immediately after the Distribution Date
in each jurisdiction in which Technologies conducts business and in which Parent
is self-insured, if Parent and Technologies determine that such status is
beneficial to Technologies. Technologies hereby authorizes Parent to take all
actions necessary and appropriate on its behalf in order to obtain such
self-insurance status.

                   (ii)  Parent shall also arrange a contingent insured or other
arrangement for payment of workers' compensation claims, into which Technologies
shall enter if and to the extent that Parent fails to obtain self-insured status
for Technologies as provided in Section 5.10(b)(i), unless Technologies obtains
                                ------------------
another such arrangement that is effective Immediately after the Distribution
Date, in which event Technologies shall reimburse Parent for any expenses
incurred by Parent in procuring such contingent arrangement.

                (c) Insurance Policy.

                    (i)   In the event the workers' compensation insurance
policy that Parent maintains under the Parent WCP expires before the
Distribution Date, Parent shall use its reasonable best efforts to renew such
policy and to cause the issuing insurance company to issue a separate policy to
Technologies. If Parent is not able to cause such insurance company to issue
such separate insurance policy, Technologies shall use its reasonable best
efforts to procure a separate policy from another insurance company or to obtain
self-insurance status, and Parent shall use its reasonable best efforts to
continue to cover Technologies under its renewed policy until the earlier of (A)
the date on which Technologies' application for such self-insurance status is
approved or (B) the date on which a separate insurance policy is procured.
Technologies shall compensate Parent for all costs incurred by Parent to
continue such coverage. Any claims incurred by Transferred Individuals after the
Close of the Distribution Date that will be covered under and during any such
continuation of coverage shall be treated as being incurred before the Close of
the Distribution Date for purposes of determining the party responsible for the
administration of benefits.

                                      -21-
<PAGE>

                    (ii)  Parent shall use its best effort to maintain the
premium rates for all workers' compensation insurance policies for both Parent
and Technologies in effect for periods through the Close of the Distribution
Date to be based on the aggregate number of employees covered under the workers'
compensation insurance policies of both Parent and Technologies. Any premiums
due under the separate workers' compensation insurance issued to Technologies
shall be payable by Technologies.

         5.11 Post-Distribution Transitional Arrangements.

                (a) Continuance of Elections, Co-Payments and Maximum Benefits.

                    (i)   Technologies shall cause the Technologies Health and
Welfare Plans to recognize and maintain all coverage and contribution elections
made by Transferred Individuals under the Parent Health and Welfare Plans and
apply such elections under the Technologies Health and Welfare Plans for the
remainder of the period or periods for which such elections are by their terms
applicable. The transfer or other movement of employment from Parent to
Technologies at any time before the Close of the Distribution Date shall neither
constitute nor be treated as a "status change" under the Parent Health and
                                -------------
Welfare Plans or the Technologies Health and Welfare Plans.

                    (ii)  Technologies shall cause the Technologies Health and
Welfare Plans to recognize and give credit for (A) all amounts applied to
deductibles, out-of-pocket maximums, and other applicable benefit coverage
limits with respect to which such expenses have been incurred by Transferred
Individuals under the Parent Health and Welfare Plans for the remainder of the
year in which the Distribution occurs, and (B) all benefits paid to Transferred
Individuals under the Parent Health and Welfare Plans for purposes of
determining when such persons have reached their lifetime maximum benefits under
the Technologies Health and Welfare Plans.

                    (iii) Technologies shall (A) provide coverage to Transferred
Individuals under the Technologies Group Life Program without the need to
undergo a physical examination or otherwise provide evidence of insurability,
and (B) recognize and maintain all irrevocable assignments and accelerated
benefit option elections made by Transferred Individuals under the Parent Group
Life Program. Notwithstanding anything herein to the contrary, Transferred
Individuals who elect a change in life insurance coverage may be subject to
rules of the insurer, including without limitation, physical examination or
other evidence of insurability.

                (b) HCFA Data Match. Effective as of May 1, 2001, Technologies
shall assume administrative responsibility for HCFA data match reports and all
Liabilities relating to, arising out of or resulting from claims verified by
Parent or Technologies under the HCFA data match reports for Transferred
Individuals. Technologies shall not change any employee identification numbers
assigned by Parent without notifying Parent of the change and the new employee
identification number. As soon as administratively practicable after December
31, 2002, Technologies shall transfer all information to Parent to allow Parent
to verify HCFA data match reports for its employees and former employees.

                                      -22-
<PAGE>

                (c) Other Post-Distribution Transitional Rules.

                    (i)   Parent Flexible Benefits Plan. To the extent any
Transferred Individual contributed to an account under the Parent Flexible
Benefits Plan during the calendar year that includes the Distribution Date,
effective as of the Close of the Distribution Date, Parent shall transfer to the
Technologies Flexible Benefits Plan the account balances of Transferred
Individuals for such calendar year under the Parent Flexible Benefits Plan,
regardless of whether the account balance is positive or negative.

                    (ii)  Health and Welfare Plans Subrogation Recovery. After
the Close of the Distribution Date, Technologies shall pay to Parent or the
Parent Health and Welfare Plan or the Technologies Health and Welfare Plan, as
appropriate, any amounts Technologies recovers from time to time through
subrogation or otherwise for claims incurred by or reimbursed to any participant
of Parent's Health and Welfare Plans or Technologies' Health and Welfare Plans.
After the Close of the Distribution Date, Parent shall pay to Technologies or
the Technologies Health and Welfare Plan or the Parent Health and Welfare Plan,
as appropriate, any amounts Parent recovers from time to time through
subrogation or otherwise for claims incurred by or reimbursed to any participant
of Parent's Health and Welfare Plans or Technologies' Health and Welfare Plans.

                    (iii) Exchange of Historical Data. After the Close of the
Distribution Date both Parent and Technologies shall have access to claims data
configured on the Aetna database or archives, if applicable, and to eligibility,
disability, medical and demographic data configured on the Benefits and Employee
Services Organization database ("Benefits Database"), or archives, if
                                 -----------------
applicable, for all historical periods up to and including, without limitation,
eligibility, incurred claims and Benefits Database data for purposes of
administering the Parent Medical Plans and the Technologies Medical Plans until
such time as Technologies transfers the portion of the Benefits Database
applicable to the Parent Medical Plans after December 31, 2002. Parent and
Technologies shall cooperate in the collection of claims, eligibility and data
during the period from May 1, 2001 through December 31, 2002, and share all such
data which shall be accessible through the Benefits and Employee Services
Organization.

                                   ARTICLE VI
              EXECUTIVE BENEFITS AND NON-EMPLOYEE DIRECTOR BENEFITS

         6.1  Assumption of Obligations. Except as provided in this Agreement,
effective Immediately after the Distribution Date, Technologies shall assume and
be solely responsible for all Liabilities to or relating to Technologies
Individuals under all Parent Executive Benefit Plans. None of the transactions
contemplated by the Separation and Distribution Agreement or any of the
Ancillary Agreements, including, without limitation, this Agreement constitute a
change in control for purposes of any Plan.

         6.2  Consents, Notifications and Assignments. Parent and Technologies
shall use their reasonable best efforts to obtain, or cause to be obtained, to
the extent necessary, the written consent of each Technologies Individual who is
a party to an Individual Agreement to the treatment of such Individual Agreement
in accordance with this Article VI, including, without limitation, the
                        ----------
assumption by Technologies of sole responsibility for, and the release of Parent

                                      -23-
<PAGE>

from, all Liabilities thereunder; provided, that no failure to seek or to obtain
any such consent shall have any effect upon the obligations of Technologies with
respect to such Liabilities. Parent shall use its reasonable best efforts to
assign any annuity contracts owned by Parent for the purpose of making payment
of benefits to any Technologies Individual.

         6.3  Parent Incentive Plans. Parent and Technologies shall use their
reasonable best efforts to take all actions necessary or appropriate so that
each outstanding Award granted under any Parent Incentive Plan held by any
Technologies Individual (or Transferred Individual, as applicable) shall be
replaced as set forth in this Section 6.3 with an Award under the Technologies
                              -----------
Incentive Plan in a manner that is consistent with the adjustment provisions of
the Parent Incentive Plan, as interpreted by the Compensation and Organization
Committee of the Board of Directors of Parent. Each such replacement Award shall
otherwise have the same terms and conditions as were applicable to the
corresponding Parent Award as of the date immediately preceding the date of the
replacement Award under the Technologies Incentive Plan, as set forth in this
Section 6.3. Dividend equivalent rights on replacement Awards issued under the
-----------
Technologies Incentive Plan, if any, shall be payable with reference to
dividends on Technologies Common Stock. Technologies shall not issue Awards with
respect to fractional shares.

                (a) Stock Options. Technologies shall cause each Award
consisting of a Parent Option that is outstanding as of the Close of the
Distribution Date (or, in the case of a Technologies Administrative Employee, as
of the Transfer Date) and is held by a Technologies Individual to be replaced
under the Technologies Incentive Plan, effective Immediately after the
Distribution Date (or, in the case of a Technologies Administrative Employee, as
of the Transfer Date), with a Technologies Option. Such Technologies Option
shall provide for the purchase of a number of shares of Technologies Common
Stock equal to the number of shares of Parent Common Stock subject to such
Parent Option as of the Close of the Distribution Date (or, in the case of a
Technologies Administrative Employee, as of the Transfer Date) multiplied by the
Distribution Date Ratio (or, in the case of a Technologies Administrative
Employee, the Transfer Date Ratio), and then rounded down to the nearest whole
share. Technologies shall pay to the holder of each such replacement
Technologies Option, upon exercise of all or any portion of such replacement
Technologies Option, cash in lieu of any fractional share eliminated by such
rounding down of shares equal to the product of (i) the fraction represented by
such fractional share; and (ii) (A) the excess of the closing price of the
Technologies Common Stock as listed on the NYSE on the date of exercise over (B)
the per-share exercise price of such Parent Option as of the Close of the
Distribution Date, divided by the Distribution Date Ratio. The per-share
exercise price of such Technologies Option shall be equal to the per-share
exercise price of the Parent Option as of the Close of the Distribution Date
(or, in the case of a Technologies Administrative Employee, as of the Transfer
Date); divided by the Distribution Date Ratio (or, in the case of a Technologies
Administrative Employee, the Transfer Date Ratio).

                (b) Restricted Stock. Technologies shall cause each Award that
consists of restricted shares of Parent Common Stock that is outstanding as of
the close of business on the day immediately preceding the IPO Date and is held
by a Technologies Individual or the Technologies Chairman of the Board of
Directors to be replaced under the Technologies Incentive Plan, effective
immediately after the IPO Date, with a new Award consisting of a number of
restricted shares of Technologies Common Stock equal to the number of restricted
shares of Parent Common Stock constituting such Award as of the close of
business on the day immediately preceding the IPO Date, multiplied by the IPO
Ratio, and then rounded down to the nearest whole share.

                                      -24-
<PAGE>

Technologies shall cause each Award that consists of restricted shares of Parent
Common Stock that is outstanding as of the Close of the Distribution Date and is
held by a Technologies Individual (or, in the case of a Technologies
Administrative Employee, as of the close of business on the day immediately
preceding the Transfer Date) to be replaced under the Technologies Incentive
Plan, effective immediately after the Distribution Date (or, in the case of a
Technologies Administrative Employee, as of the Transfer Date), with a new
Award consisting of a number of restricted shares of Technologies Common Stock
equal to the number of restricted shares of Parent Common Stock constituting
such Award as of the Close of the Distribution Date (or, in the case of a
Technologies Administrative Employee, as of the close of business on the day
immediately preceding the Transfer Date), multiplied by the Distribution Date
Ratio (or, in the case of a Technologies Administrative Employee, the Transfer
Date Ratio), and then rounded down to the nearest whole share. Technologies
shall pay to the holder of each such replacement Award, at the time such
replacement Award vests, cash in lieu of any fractional share eliminated by such
rounding down of shares equal to the product of (i) the fraction represented by
such fractional share; and (ii) the closing price of the Technologies Common
Stock as listed on the NYSE on the date such replacement Award vests.

         6.4  Parent Award Deferrals. Immediately after the Distribution Date,
(or, in the case of a Technologies Administrative Employee, the Transfer Date),
the balance of any Technologies Individual in the Parent stock fund under the
FMC Corporation Non-Qualified Savings and Investment Plan as of the Close of the
Distribution Date shall be transferred to a Technologies stock fund under the
Technologies Non-Qualified Savings and Investment Plan, with a number of
Technologies shares equal to the number of Parent shares under the FMC
Corporation Non-Qualified Savings and Investment Plan as of the Close of the
Distribution Date (or, in the case of a Technologies Administrative Employee,
the Transfer Date), multiplied by the Distribution Date Ratio (or, in the case
of a Technologies Administrative Employee, the Transfer Date Ratio), then
rounded down to the nearest whole share.

         6.5  Non-Employee Director Benefits.

                (a) Technologies Non-Employee Directors. As of the Distribution
Date, Technologies shall assume and be solely responsible for all Liabilities
under the Parent Non-Employee Director Plan to or relating to Parent
Non-Employee Directors who become Technologies Non-Employee Directors and cease
to be Parent Non-Employee Directors. As of the Distribution Date, Technologies
shall assume and be solely responsible for a portion of the Liabilities under
the Parent Non-Employee Director Plan to or relating to Parent and Technologies
Non-Employee Directors, as determined in accordance with this Section 6.5.
                                                              -----------
Parent and Technologies shall use their reasonable best efforts to take all
actions necessary or appropriate so that each applicable outstanding Award
granted under the Parent Non-Employee Director Plan (or, with respect to Robert
N. Burt, the Parent Incentive Plan) held by a Technologies Non-Employee Director
or a Parent and Technologies Non-Employee Director shall be replaced in a manner
that is consistent with the adjustment provisions of the Parent Non-Employee
Director Plan (or, the Parent Incentive Plan), each as interpreted by the
Compensation and Organization Committee of the Board of Directors of Parent.
Each such Technologies Award shall otherwise have the same terms and conditions
as were applicable to the corresponding Parent Award as of the Close of the
Distribution Date, except that dividend equivalent rights, if any, shall be
payable after the Distribution Date with reference to dividends on Technologies
Common Stock. Technologies shall not issue Awards with respect to fractional
shares.

                                      -25-
<PAGE>

                (b) Deferred Stock Awards of Non-Employee Directors. Effective
Immediately after the Distribution Date, the balance (or, with respect to a
Parent and Technologies Non-Employee Director, up to one half (1/2) of the
balance, as elected by the Parent and Technologies Non-Employee Director) of a
Technologies Non-Employee Director (or a Parent and Technologies Non-Employee
Director) in the Parent share unit account under the Parent Non-Employee
Director Plan shall be transferred to a Technologies share unit account, under
the Technologies Incentive Plan, with a number of Technologies share units equal
to the total (or, with respect to a Parent and Technologies Non-Employee
Director, up to one half (1/2) of the total, as elected by the Parent and
Technologies Non-Employee Director) number of Parent share units under the
Parent Non-Employee Director Plan as of the Distribution Date multiplied by the
Distribution Date Ratio and then rounded down to the nearest whole unit.
Technologies shall pay to the holder of each such replacement share unit
account, at the time such share unit account is distributed to the holder, cash
in lieu of any fractional share eliminated by such rounding down of shares equal
to the product of (i) the fraction represented by such fractional share; and
(ii) the closing price of the Technologies Common Stock as listed on the NYSE on
the date such share unit account is distributed to the holder.

                (c) Stock Option Awards of Non-Employee Directors. Effective
Immediately after the Distribution Date, Technologies shall cause all (or, with
respect to a Parent and Technologies Non-Employee Director, up to one half (1/2)
of all, as elected by the Parent and Technologies Non-Employee Director) Parent
Options under the Parent Non-Employee Director Plan (or, with respect to Robert
N. Burt, Parent Options under the Parent Incentive Plan) that are outstanding as
of the Close of the Distribution Date and are held by a Technologies Non-
Employee Director (or a Parent and Technologies Non-Employee Director) to be
replaced, with a Technologies Option. Such Technologies Option shall provide for
the purchase of a number of shares of Technologies Common Stock equal to the
total (or, with respect to a Parent and Technologies Non-Employee Director, up
to one half (1/2) of the total, as elected by the Parent and Technologies Non-
Employee Director) number of shares of Parent Common Stock subject to such
Parent Option as of the Close of the Distribution Date, multiplied by the
Distribution Date Ratio, and then rounded down to the nearest whole share.
Technologies shall pay to the holder of each such replacement Technologies
Option, upon exercise of all or any portion of such replacement Technologies
Option, cash in lieu of any fractional share eliminated by such rounding down of
shares equal to the product of (i) the fraction represented by such fractional
share; and (ii) (A) the excess of the closing price of the Technologies Common
Stock as listed on the NYSE on the date of exercise over (B) the per-share
exercise price of such Parent Option as of the Close of the Distribution Date,
divided by the Distribution Date Ratio. The per-share exercise price of such
Technologies Option shall be equal to the per-share exercise price of the Parent
Option as of the Close of the Distribution Date, divided by the Distribution
Date Ratio.

                (d) Restricted Stock. Effective Immediately after the
Distribution Date, Technologies shall cause all (or, with respect to a Parent
and Technologies Non-Employee Director, up to one half (1/2) of all, as elected
by the Parent and Technologies Non-Employee Director) restricted shares of
Parent Common Stock that are outstanding as of the Close of the Distribution
Date and are held by a Technologies Non-Employee Director (or a Parent and
Technologies Non-Employee Director, other than Robert N. Burt) to be replaced
under the Technologies Non-Employee Director Plan, effective Immediately after
the Distribution Date, with a new Award consisting of a number of restricted
shares of Technologies Common Stock equal to the total (or, with respect to a
Parent and Technologies Non-Employee Director, up to one half (1/2) of the
total, as elected by the Parent and Technologies Non-Employee Director) number
of restricted shares of Parent Common Stock as of the Close of the Distribution
Date multiplied by the Distribution Date Ratio, and then rounded down to the
nearest whole share. Technologies shall pay to the holder of each such
replacement Award, at the time such replacement Award vests, cash in lieu of any

                                      -26-
<PAGE>

fractional share eliminated by such rounding down of shares equal to the product
of (i) the fraction represented by such fractional share; and (ii) the closing
price of the Technologies Common Stock as listed on the NYSE on the date such
replacement Award vests.

         6.6  Rabbi Trusts.

                (a) Establishment of Mirror Rabbi Trusts. Effective as of May 1,
2001, Technologies shall establish or cause to be established the Technologies
Rabbi Trusts as grantor trusts subject to Sections 671 et seq. of the Code,
which shall be substantially identical in all material features to the Parent
Rabbi Trusts funding the Parent Salaried Employees' Equivalent Retirement Plan
and the Parent Executive Severance Plan. Effective as of May 1, 2001,
Technologies shall assume the Moorco International, Inc. Executive Retirement
Trust. Effective no later than Immediately after the Distribution Date,
Technologies shall establish, or cause to be established, a Technologies Rabbi
Trust as a grantor trust subject to Sections 671 et seq. of the Code, which
shall be substantially identical in all Material Features to the Parent Rabbi
Trust funding the Parent Non-Qualified Savings and Investment Plan.

                (b) Funding of Technologies Rabbi Trust. Effective as of May 1,
2001, Technologies shall make a de minimus contribution to the Technologies
Rabbi Trusts established to fund the Technologies Salaried Employees' Equivalent
Retirement Plan and the Technologies Executive Severance Plan to the extent
necessary to maintain such Technologies Rabbi Trusts as springing rabbi trusts.
As of the earlier of the Close of the Distribution Date and the date when assets
are first transferred or contributed to the Technologies Rabbi Trust funding the
Technologies Non-Qualified Savings and Investment Plan (the "Rabbi Trust
                                                             -----------
Determination Date"), Technologies shall determine the amount of the Liabilities
------------------
under the Parent Non-Qualified Savings and Investment Plan that are payable from
the Parent Rabbi Trust funding the Parent Non-Qualified Savings and Investment
Plan. Subject to the completion of the asset transfer described in the next
sentence, and effective as of the Distribution Date: (i) the Parent Rabbi Trust
funding the Parent Non-Qualified Savings and Investment Plan shall transfer to
the corresponding Technologies Rabbi Trust, and such Technologies Rabbi Trust
shall assume and be responsible for all Liabilities of the corresponding Parent
Rabbi Trust with respect to benefits accrued by Transferred Individuals through
the Distribution Date and (ii) Parent shall have no responsibility for such
Liabilities. As soon as practicable after the Distribution Date, there shall be
transferred from the Parent Rabbi Trust funding the Parent Non-Qualified Savings
and Investment Plan to the corresponding Technologies Rabbi Trust a portion of
the assets thereof, representing an amount equal to the value of the balances of
all notational accounts of the participants in the Parent Non-Qualified Savings
and Investment Plan who are, as of the date of transfer, Transferred
Individuals. Balances in the Parent stock fund shall be transferred to the
Technologies stock fund in accordance with the terms of Section 6.4. Parent and
                                                        -----------
Technologies agree to use their best efforts to make transfers in kind to the
extent practicable so as to preserve the investment decisions as in effect on
the date of transfer.

                                     -27-

<PAGE>

                                   ARTICLE VII
                                 OTHER BENEFITS

         Notwithstanding anything herein to the contrary, Parent shall retain
all Liabilities for specified benefits as detailed below.

                (a) Severance. Parent shall retain all Liabilities for any
severance benefit payable to (i) any employee of Parent or Technologies with
repect to a termination of service prior to May 1, 2001; and (ii) any employee
who is not a Technologies Individual.

                (b) Executive Bonuses. Parent shall retain all Liabilities for
any bonus awarded prior to the IPO and payable to any executive of Parent or
Technologies for performance related to the IPO and/or Distribution.

                (c) Retention Bonuses. Parent shall retain all Liabilities of
any stay bonus awarded prior to the IPO and payable to any current or former
employee of Parent and all Liabilities for the cost of any stay bonuses payable
to any current or former employee of Technologies. Parent shall pay Technologies
an amount equal to (i) any retention bonus paid by Technologies in cash;
plus, (ii) the aggregate number of restricted shares of Technologies Common
Stock issued in replacement of restricted stock retention bonuses pursuant to
Section 6.3(b) Restricted Stock, multiplied by the closing price of the
--------------
Technologies Common Stock on January 2, 2002. Parent shall make such payment to
Technologies within ten (10) business days after Technologies' request for
payment.

                                  ARTICLE VIII
                           GENERAL AND ADMINISTRATIVE

         8.1  Payment of Administrative Costs and Expenses.

                (a) Shared Costs. Parent and Technologies shall each be
responsible for their allocable share of such budgeted costs and any increases
in such budgeted costs through December 31, 2002 incurred in the administration
of the Parent Plans or the Technologies Plans; including, without limitation,
(i) all internal administrative costs of the Benefits and Employee Services
Organization; (ii) all external administrative costs for management of assets,
recordkeeping, communications, benefit delivery, insurance fees and commissions,
consultant, accounting, actuarial and legal expenses, printing, photocopying,
mailing and other expenses; and (iii) all COBRA administrative expenses. To the
extent such administrative expenses are not chargeable to the trusts established
to fund the Plans pursuant to the guidelines in effect at the time, effective
for periods on or after May 1, 2001, Parent shall pay to Technologies its
allocable share of such costs which shall be equal to the total cost less
Technologies' allocable share of such costs determined through the cycle billing
process based on the corporate divisions constituting part of the Technologies
Business, as set forth on Schedule E, consistent with past practice. With
                          ----------
respect to any corporate staff costs or additional unanticipated expenses that
are not billed through the cycle billing process, Parent shall pay to
Technologies its allocable share of such costs which shall be equal to the total
amount of such costs, less Technologies' allocable share of such costs, based on
a head count of the individuals within the corporate divisions constituting part
of the Technologies Business, as set forth on Schedule E, or, in the event such
                                              ----------

                                     -28-

<PAGE>

costs are fixed costs that cannot be allocated on such basis, Parent's allocable
share shall be equal to one half (1/2) of such costs. Additional detail on
shared costs is provided in the Transition Services Agreement.

                (b) Administrative Personnel. A schedule of the individuals
employed in certain Parent corporate business functions who have been designated
to become employees of Technologies or a Technologies Entity (the "Technologies
                                                                   ------------
Administrative Employees") has been agreed to by Parent and Technologies. The
------------------------
Technologies Administrative Employees shall remain on Parent's payroll at least
until the Distribution Date, and such individuals shall become Technologies
Individuals on the later of the Distribution Date or the Transfer Date.

         8.2  Payment of Liabilities, Plan Expenses and Related Matters.

                (a) Actuarial and Accounting Methodologies and Assumptions. For
purposes of this Agreement, unless specifically indicated otherwise: (i) all
actuarial methodologies and assumptions used for a particular Plan shall (except
to the extent otherwise determined by Parent and Technologies to be reasonable
or necessary) be substantially the same as those used in the actuarial valuation
of that Plan used to determine minimum funding requirements under ERISA (S) 302
and Code (S) 412 for 2001, or, if such Plan is not subject to such minimum
funding requirements, used to determine Parent's deductible contributions under
Code (S) 419A or, if such Plan is not subject to Code (S) 419A, the assumptions
used to prepare Parent's audited financial statements for 2000, as the case may
be; and (ii) the value of plan assets shall be the value established for
purposes of audited financial statements of the relevant plan or trust for the
period ending on the date as of which the valuation is to be made. Technologies
Liabilities relating to, arising out of or resulting from the status of
Technologies and the Technologies Entities as Participating Companies in Parent
Plans, as provided for in Section 2.2 and all accruals relating thereto shall be
                          -----------
determined by Technologies using actuarial assumptions and methodologies,
including, without limitation, assumptions with respect to demographics, medical
trends and other relevant factors, determined by Technologies in a manner
consistent with Parent's practice as in effect on the IPO Date and in
conformance with the generally accepted actuarial principles promulgated by the
American Academy of Actuaries, the Code, ERISA, and/or generally accepted
accounting principles, as applicable, in each case as interpreted by
Technologies consistent with Parent's past practice. Except as otherwise
contemplated by this Agreement or as required by law, all determinations as to
the amount or valuation of any assets of or relating to any Parent Plan, whether
or not such assets are being transferred to a Technologies Plan, shall be made
pursuant to procedures to be established by the parties before the IPO Date.

                (b) Determination of Employee Status. In determining the number
of individuals in any particular group of employees described in this Agreement,
such as Transferred Individuals and Technologies Individuals, no individual
shall be counted twice, even if, for example, he or she is both a Technologies
Individual and a Transferred Individual. Determinations of what entity employs
or employed a particular individual shall be made by reference to the applicable
legal entity and/or other appropriate division code, to the extent possible, and
if not shall be made by reference to the last location of employment of the
individual, whether with Parent, a Parent Entity, Technologies or a Technologies
Entity.

                                      -29-
<PAGE>

                (c) Contributions to Trusts. Technologies shall pay its share of
any contributions made to any trust maintained in connection with a Parent Plan
with respect to any period while Technologies or a Technologies Entity is a
Participating Company in that Parent Plan.

         8.3  Sharing of Participant Information. Parent and Technologies shall
share, Parent shall cause each applicable Parent Entity to share, and
Technologies shall cause each applicable Technologies Entity to share, with each
other and their respective agents and vendors, without obtaining releases, all
participant information necessary for the efficient and accurate administration
of each of the Parent Plans and the Technologies Plans in accordance with the
terms of this Agreement. For periods beginning May 1, 2001, Parent and
Technologies shall coordinate access to information through the Benefits and
Employee Services Organization within Technologies. Parent and Technologies and
their respective authorized agents shall, subject to applicable laws on
confidentiality, be given reasonable and timely access to, and may make copies
of, all information relating to the subjects of this Agreement in the custody of
the other party, to the extent necessary for such administration. Until December
31, 2002, all participant information shall be provided in the manner and medium
as in effect of the Close of the Distribution Date, unless otherwise agreed to
by Parent and Technologies.

         8.4  Reporting and Disclosure and Communications to Participants. While
Technologies is a Participating Company in the Parent Plans, Technologies shall
take, and shall cause each other applicable Technologies Entity to take, all
actions necessary or appropriate to facilitate the distribution of all Parent
Plan-related communications and materials to employees, participants and
beneficiaries, including, without limitation, summary plan descriptions,
summaries of material modification, summary annual reports, investment
information, prospectuses, notices and enrollment material for the Technologies
Plans. For periods beginning on or after May 1, 2001, Parent shall pay
Technologies the cost relating to the copies of all such documents provided to
Technologies, except to the extent such costs are charged pursuant to Section
                                                                      -------
8.1. Parent and Technologies shall assist each other in complying with all
---
reporting and disclosure requirements of ERISA, including, without limitation,
the preparation of Form 5500 annual reports for the Parent Plans and the
Technologies Plans, where applicable.

         8.5  Non-Termination of Employment; No Third-Party Beneficiaries. No
provision of this Agreement or the Separation and Distribution Agreement shall
be construed to create any right, or accelerate entitlement, to employment or to
any compensation or benefit whatsoever on the part of any Technologies
Individual, Transferred Individual or other future, present or former employee
of Parent, a Parent Entity, Technologies, or a Technologies Entity under any
Parent Plan or Technologies Plan or otherwise. Without limiting the generality
of the foregoing: (a) neither the Distribution nor the termination of the
Participating Company status of Technologies or a Technologies Entity shall
cause any employee to be deemed to have incurred a termination of employment
which entitles such individual to the commencement of benefits under any of the
Parent Plans, any of the Technologies Plans, or any of the Individual
Agreements; and (b) except as expressly provided in this Agreement, nothing in
this Agreement shall preclude Technologies, at any time after the Close of the
Distribution Date, from amending, merging, modifying, terminating, eliminating,
reducing, or otherwise altering in any respect any Technologies Plan, any
benefit under any Plan or any trust, insurance policy or funding vehicle related
to any Technologies Plan.

                                      -30-
<PAGE>

         8.6  Plan Audits.

                (a) Audit Rights With Respect To Information Provided.

                    (i)   Each of Parent and Technologies, and their duly
authorized representatives, shall have the right to conduct audits with respect
to all information provided to it by the other party. The party conducting the
audit (the "Auditing Party") shall have the sole discretion to determine the
            --------------
procedures and guidelines for conducting audits and the selection of audit
representatives under this Section 8.6(a). The Auditing Party shall have the
                           --------------
right to make copies of any records at its expense, subject to the
confidentiality provisions set forth in the Separation and Distribution
Agreement, which are incorporated by reference herein. The party being audited
shall provide the Auditing Party's representatives with reasonable access during
normal business hours to its operations, computer systems and paper and
electronic files, and provide workspace to its representatives. After any audit
is completed, the party being audited shall have the right to review a draft of
the audit findings and to comment on those findings in writing within five
business days after receiving such draft.

                    (ii)  The Auditing Party's audit rights under this Section
                                                                       -------
8.6(a) shall include the right to audit, or participate in an audit facilitated
------
by the party being audited, of any Subsidiaries and Affiliates of the party
being audited and of any benefit providers and third parties with whom the party
being audited has a relationship, or agents of such party, to the extent any
such persons are affected by or addressed in this Agreement (collectively, the
"Non-parties"). The party being audited shall, upon written request from the
 -----------
Auditing Party, provide an individual (at the Auditing Party's expense) to
supervise any audit of a Non-party. The Auditing Party shall be responsible for
supplying, at the Auditing Party's expense, additional personnel sufficient to
complete the audit in a reasonably timely manner. The responsibility of the
party being audited shall be limited to providing, at the Auditing Party's
expense, a single individual at each audited site for purposes of facilitating
the audit.

                (b) Audits Regarding Vendor Contracts. From Immediately after
the Distribution Date through December 31, 2002, Parent and Technologies and
their duly authorized representatives shall have the right to conduct joint
audits with respect to any vendor contracts that relate to both the Parent
Health and Welfare Plans and the Technologies Health and Welfare Plans. The
scope of such audits shall encompass the review of all correspondence, account
records, claim forms, canceled drafts (unless retained by the bank), provider
bills, medical records submitted with claims, billing corrections, vendor's
internal corrections of previous errors and any other documents or instruments
relating to the services performed by the vendor under the applicable vendor
contracts. Parent and Technologies shall agree on the performance standards,
audit methodology, auditing policy and quality measures and reporting
requirements relating to the audits described in this Section 8.6 and the manner
                                                      -----------
in which costs incurred in connection with such audits will be shared.

         8.7  Beneficiary Designations. All beneficiary designations made by
Transferred Individuals for Parent Plans shall be transferred to and be in full
force and effect under the corresponding Technologies Plans until such
beneficiary designations are replaced or revoked by the Transferred Individual
who made the beneficiary designation.

                                      -31-
<PAGE>

         8.8  Requests for IRS Rulings and DOL Opinions.

                (a) Cooperation. Technologies shall cooperate fully with Parent
on any issue relating to the transactions contemplated by this Agreement for
which Parent elects to seek a determination letter or private letter ruling from
the IRS or an advisory opinion from the DOL. Parent shall cooperate fully with
Technologies with respect to any request for a determination letter or private
letter ruling from the IRS or advisory opinion from the DOL with respect to any
of the Technologies Plans relating to the transactions contemplated by this
Agreement.

                (b) Applications. Parent and Technologies shall make such
applications to regulatory agencies, including the IRS and DOL, as may be
necessary to ensure that any transfers of assets from the Parent VEBA to the
Technologies VEBA will neither (i) result in any adverse tax, legal or fiduciary
consequences to Parent and Technologies, the Parent VEBA, the Technologies VEBA,
any participant therein or beneficiaries thereof, or any of Parent VEBA, any
successor welfare benefit funds established by or on behalf of Technologies, or
the trustees of such trusts, nor (ii) contravene any statute, regulation or
technical pronouncement issued by any regulatory agency. Technologies and Parent
agree to cooperate with each other to fulfill any filing and/or regulatory
reporting obligations with respect to such transfers.

                (c) Life Insurance. To the extent the transfer or allocation of
all or a portion of any life insurance policies results in any adverse tax or
legal consequences, including, without limitation, (i) any finding that such
transfer results in the creation of a modified endowment contract within the
meaning of Section 7702A of the Code, a transfer for valuable consideration
within the meaning of Section 101(a) of the Code, or a lack of insurable
interest for either Parent or Technologies (or their respective trusts, if any),
or (ii) multiple claims for insurance proceeds, Parent and Technologies shall
take such steps as may be necessary to contest any such finding and, to the
extent of any final determination that such adverse tax or legal consequences
will result, Parent and Technologies shall make such further adjustments so as
to place both parties in the proportionate financial position that they each
would have been in relative to the other but for such adverse tax or legal
consequences.

         8.9  Fiduciary Matters.

                (a) Fiduciary Status. Parent and Technologies each acknowledges
that certain actions required to be taken pursuant to this Agreement may be
subject to fiduciary duties or standards of conduct under ERISA or other
applicable law, and no party shall be deemed to be in violation of this
Agreement if it fails to comply with any provisions hereof based upon its good
faith determination that to do so would violate such a fiduciary duty or
standard.

                (b) Independent Fiduciary. Technologies shall retain the right
to retain a fiduciary independent of Parent to review and approve the types and
value of the assets to be transferred to the Technologies Plans from the Parent
Plans as described in Article III and Article IV of this Agreement to the extent
                      -----------     ----------
that such Plans are subject to Part 4 of Title I of ERISA. The foregoing shall
not prevent Technologies from engaging any fiduciaries for any other purposes.

         8.10 Payroll Taxes and Reporting of Compensation. Pursuant to the
alternative procedure prescribed by Section 5 of Revenue Procedure 84-17, (a)
Parent and Technologies

                                      -32-
<PAGE>

shall report on a "predecessor-successor" basis with respect to each
Technologies Individual; (b) Technologies shall assume Parent's entire
obligation to prepare, file and furnish Forms W-2 for the year ending December
31, 2001 and process garnishments and wage assignments with respect to each
Technologies Individual; (c) Parent shall be relieved of any obligation to
provide Forms W-2 and process garnishments and wage assignments to each
Technologies Individual for the year ending December 31, 2001; and (d) Parent
and Technologies will work in good faith to adopt similar procedures under
applicable state or local laws and will cooperate with each other in preparing
filings and forms relating to such procedures.

         8.11  Collective Bargaining. To the extent any provision of this
Agreement is contrary to the provisions of any collective bargaining agreement
to which Parent or any Affiliate of Parent is a party, the terms of such
collective bargaining agreement shall prevail. Should any provisions of this
Agreement be deemed to relate to a topic determined by an appropriate authority
to be a mandatory subject of collective bargaining, Parent or Technologies may
be obligated to bargain with the union representing affected employees
concerning those subjects.

         8.12  Consent of Third Parties. If any provision of this Agreement is
dependent on the consent of any third party (such as a vendor or a union) and
such consent is withheld, Parent and Technologies shall use their reasonable
best efforts to implement the applicable provisions of this Agreement to the
full extent practicable. If any provision of this Agreement cannot be
implemented due to the failure of such third party to consent, Parent and
Technologies shall negotiate in good faith to implement the provision in a
mutually satisfactory manner. The phrase "reasonable best efforts" as used
herein shall not be construed to require the incurrence of any non-routine or
unreasonable expense or liability or the waiver of any right.

                                   ARTICLE IX
                                  FOREIGN PLANS

                (a) This Article 1X(a) sets forth certain general principles
                         -------------
relating to Foreign Plans; however, exceptions may be made to those general
principles as set forth in Article 1X(b). Parent and Technologies shall take
                           -------------
all actions necessary or appropriate so that, effective no later than the
Distribution Date, all Foreign Plans have been divided, assumed and/or new
Foreign Plans established, to the extent necessary, so that all benefits of
individuals other than Transferred Individuals under Foreign Plans, whether
accrued or payable before, on or after the Distribution Date, are provided by
Parent Foreign Plans, and all benefits of Transferred Individuals under Foreign
Plans, whether accrued or payable before, on or after the Distribution Date are
provided by Technologies Foreign Plans. If any Foreign Plan that is separated
into a Parent Foreign Plan and a Technologies Foreign Plan in connection with or
in anticipation of the Distribution is funded through a trust, insurance
contract or other funding vehicle, then such funding vehicle shall be divided
between such Parent Foreign Plan and Technologies Foreign Plan in proportion to
the relative projected benefit obligations of such two Plans, determined
immediately after such separation takes place in accordance with local law and
custom. From and after the Distribution Date: (i) Parent shall assume or retain,
as applicable, and shall be solely responsible for, all Liabilities arising out
of or relating to the Parent Foreign Plans; and (ii)

                                      -33-
<PAGE>

Technologies shall assume or retain, as applicable, and shall be solely
responsible for, all Liabilities arising out of or relating to the Technologies
Foreign Plans.

                (b) Parent and Technologies recognize that it is possible that,
in certain cases, applicable law may prohibit the implementation of the general
principles set forth in Article 1X(a), or that there may be special
circumstances making such implementation inadvisable or impractical. In all such
cases, such general principles shall not be implemented and Parent and
Technologies shall use their best efforts to develop and implement an
alternative approach, and shall enter into such additional agreements as may be
necessary or appropriate in connection therewith. Schedule G hereto also sets
forth certain exceptions to the general principles set forth in Article IX(a) as
of the date of this Agreement.

                                    ARTICLE X
                                  MISCELLANEOUS

         10.1 Effect If Distribution Does Not Occur. If the Distribution does
not occur, then all actions and events that are, under this Agreement, to be
taken or occur effective as of the Close of the Distribution Date, Immediately
after the Distribution Date, or otherwise in connection with the Distribution,
shall not be taken or occur except to the extent specifically agreed by
Technologies and Parent.

         10.2 Relationship of Parties. Nothing in this Agreement shall be deemed
or construed by the parties or any third party as creating the relationship of
principal and agent, partnership or joint venture between the parties, it being
understood and agreed that no provision contained herein, and no act of the
parties, shall be deemed to create any relationship between the parties other
than the relationship set forth herein.

         10.3 Affiliates. Each of Parent and Technologies shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Agreement to be performed by a Parent Entity or a
Technologies Entity, respectively.

         10.4 Incorporation of Separation and Distribution Agreement Provisions.
The following provisions of the Separation and Distribution Agreement are hereby
incorporated herein by reference, and unless otherwise expressly specified
herein, such provisions shall apply as if fully set forth herein (references in
this Section 10.4 to an "Article" or "Section" shall mean Articles or Sections
     ------------
of the Separation and Distribution Agreement, and, except as expressly set forth
below, references in the material incorporated herein by reference shall be
references to the Separation and Distribution Agreement): Article V Survival and
                                                          ----------------------
Indemnification; Article VII Access to Information; Article XII Negotiation;
---------------  ---------------------------------  -----------------------
Article VI Additional Covenants; Article X Termination; and Article XI
-------------------------------  --------- ------------     ----------
Miscellaneous, other than Section 11.3 Governing Law.
-------------             ---------------------------

                                     -34-

<PAGE>

         10.5 Governing Law. To the extent not preempted by applicable Federal
law, this Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware (other than the laws regarding choice of laws and
conflicts of laws that would apply the substantive laws of any other
jurisdiction) as to all matters, including, without limitation, matters of
validity, construction, effect, performance and remedies.

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

                                 FMC CORPORATION

                                 By:____________________________________________
                                 Name:
                                 Title:

                                 FMC TECHNOLOGIES, INC.

                                 By:____________________________________________
                                 Name:
                                 Title:

                                      -35-

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