Document:

Exhibit 10.3

 

EMPLOYEE MATTERS AGREEMENT

 

 

 

 

By and Between

 

 

 

 

International
Business Machines Corporation

 

 

 

 

and

 

 

 

 

KYNDRYL HOLDINGS, INC.

 

 

 

 

Dated as of [●], 2021

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	Article 1
	DEFINITIONS
	 
	Section 1.01.	Definitions	1
	 	 	 
	Article 2
	GENERAL PRINCIPLES
	 
	Section 2.01.	SpinCo Employees	8
	Section 2.02.	Prepositioning of Transferring Employees	9
	Section 2.03.	Delayed Transfer Employees	9
	Section 2.04.	Work Visas	9
	Section 2.05.	Employment of SpinCo Employees	9
	Section 2.06.	Individual Agreements	11
	Section 2.07.	Collectively Bargained Employees	11
	Section 2.08.	Collective Bargaining Agreements	11
	Section 2.09.	Liabilities Generally	12
	Section 2.10.	Benefit Plans	12
	Section 2.11.	Payroll Services	13
	Section 2.12.	No Change in Control	13
	Section 2.13.	Inadvertent Transfers	13
	Section 2.14.	Non-Solicit; No Hire	13
	Section 2.15.	Termination of SpinCo Employees	14
	 	 	 
	Article 3
	NON-EQUITY INCENTIVES
	 
	Section 3.01.	SpinCo Employee Incentives	14
	Section 3.02.	Retention Bonus Programs	14
	 	 	 
	Article 4
	SERVICE CREDIT
	 
	Section 4.01.	Parent Benefit Plans	15
	Section 4.02.	SpinCo Benefit Plans	15
	Section 4.03.	No Expansion of Participation	15
	 	 	 
	Article 5
	SEVERANCE
	 
	 
	Section 5.01.	Severance	16
	 	 	 
	Article 6
	WARN ACT
	 
	Section 6.01.	WARN Act	16

 

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	Article 7
	CERTAIN WELFARE BENEFIT PLAN MATTERS;
	WORKERS’ COMPENSATION CLAIMS
	 
	Section 7.01.	SpinCo Welfare Plans	16
	Section 7.02.	Allocation of Welfare Benefit Claims	16
	Section 7.03.	6055/6056 Reporting	17
	Section 7.04.	Credit for Benefits	17
	Section 7.05.	Workers’ Compensation Claims	17
	Section 7.06.	COBRA	18
	Section 7.07.	Flexible Spending Accounts	18
	Section 7.08.	Continuation of Elections	18
	Section 7.09.	Post-Retirement Health and Life Insurance	19
	 	 	 
	Article 8
	LONG-TERM DISABILITY EMPLOYEES
	 
	Section 8.01.	SpinCo LTD Employees	19
	Section 8.02.	Retained LTD Employees	19
	Section 8.03.	Return to Work	19
	 	 	 
	Article 9
	DEFINED BENEFIT PENSION PLANs
	 
	Section 9.01.	U.S. Pension Plans	20
	Section 9.02.	Non-U.S. Pension Plans	20
	 	 	 
	Article 10
	DEFINED CONTRIBUTION PLANS
	 
	Section 10.01.	SpinCo 401(k) Plan	24
	Section 10.02.	401(k) Plan Rollovers	24
	Section 10.03.	Employer 401(k) Plan Contributions	25
	Section 10.04.	Limitation of Liability	25
	Section 10.05.	Non-U.S. Defined Contribution Plans	25
	 	 	 
	Article 11
	NONQUALIFIED DEFERRED COMPENSATION
	 
	Section 11.01.	SpinCo Nonqualified Deferred Compensation Plans	26
	Section 11.02.	No Transfer of Assets	26
	Section 11.03.	Employer Nonqualified Deferred Compensation Plan Contributions	26
	Section 11.04.	Limitation of Liability	27
	 	 	 
	Article 12
	ACCRUED LEAVE
	 
	Section 12.01.	Vacation, Holidays, Annual Leave and Other Leaves	27

 

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	Article 13
	EQUITY COMPENSATION
	 
	Section 13.01.	SpinCo Equity Incentive Plan	27
	Section 13.02.	Treatment of Outstanding Parent Equity Awards	27
	Section 13.03.	Parent ESPP	30
	Section 13.04.	Tax Reporting and Withholding for Equity-Based Awards	30
	Section 13.05.	Parent and SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Compensation	30
	Section 13.06.	Compliance	30
	 	 	 
	Article 14
	NON-U.S. EMPLOYEES
	 
	Section 14.01.	Treatment of Non-U.S. Employees	31
	Article 15
	COOPERATION; ACCESS TO INFORMATION; LITIGATION; CONFIDENTIALITY
	 
	Section 15.01.	Cooperation	31
	Section 15.02.	Access to Information; Privilege; Confidentiality	31
	 	 	 
	Article 16
	TERMINATION
	 
	Section 16.01.	Termination	31
	Section 16.02.	Effect of Termination	32
	Article 17
	MISCELLANEOUS
	 
	Section 17.01.	Incorporation of Indemnification Provisions of Separation Agreement	32
	Section 17.02.	Additional Indemnification	32
	Section 17.03.	Further Assurances	32
	Section 17.04.	Administration	32
	Section 17.05.	Third-Party Beneficiaries	32
	Section 17.06.	Employment Tax Reporting Responsibility	33
	Section 17.07.	Data Privacy	33
	Section 17.08.	Section 409A	33
	Section 17.09.	Confidentiality	33
	Section 17.10.	Employment Records	33
	Section 17.11.	Additional Provisions	33

 

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SCHEDULES

 

	Schedule 1.01	 	 	Certain Definitions
	Schedule 1.01(a)	 	 	List of Certain SpinCo Employees
	Schedule 1.01(b)	 	 	List of Certain Parent Employees
	Schedule 9.02	 	 	Defined Benefit Pension Plan Schedule

 

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EMPLOYEE MATTERS AGREEMENT (this “Agreement”),
dated as of [●], 2021, by and between International Business Machines Corporation, a New York corporation (“Parent”),
and Kyndryl Holdings, Inc., a Delaware corporation (“SpinCo” and, together with Parent, the “Parties”).

 

R E C I T A L S:

 

WHEREAS, the Parties have entered into the Separation
and Distribution Agreement (the “Separation Agreement”), dated as of [●], 2021, pursuant to which Parent intends
to effect the Distribution; and

 

WHEREAS, the Parties wish to set forth their agreements
as to certain matters regarding employment, compensation and employee benefits.

 

NOW, THEREFORE, in consideration of the mutual agreements,
provisions and covenants contained in this Agreement, the Parties, intending to be legally bound, hereby agree as follows:

 

Article 1

DEFINITIONS

 

Section 1.01.        Definitions.
For purposes of this Agreement, the following terms shall have the following meanings. All capitalized terms used but not defined herein
shall have the meanings assigned to them in the Separation Agreement unless otherwise indicated.

 

“Aggregate Pre-Transfer Date Contributions”
has the meaning set forth in Section 7.07.

 

“Aggregate Pre-Transfer Date Disbursements”
has the meaning set forth in Section 7.07.

 

“Applicable 401(k) Date”
has the meaning set forth in Section 10.01.

 

“Automatic Transfer Employees”
means those Transferring Employees whose employment transfers by operation of Law (including the Transfer Regulations) in connection with
the transfer of a business or part of a business.

 

“Benefit Plan” means any plan,
program, policy, agreement, arrangement or understanding that is an employment, consulting, deferred compensation, executive compensation,
incentive bonus or other bonus, employee pension, profit sharing, savings, retirement, supplemental retirement, stock option, stock purchase,
stock appreciation right, restricted stock, restricted stock unit, deferred stock unit, other equity-based compensation, severance pay,
retention, change in control, salary continuation, life, death benefit, health, hospitalization, workers’ compensation, sick leave,
vacation pay, disability or accident insurance or other employee compensation or benefit plan, program, policy, agreement, arrangement
or understanding, including any “employee benefit plan” (as defined in Section 3(3) of ERISA, whether or not subject
to ERISA), sponsored or maintained by an entity or to which such entity is a party.

 

     

     

    

 

“Blue Sky Employee” means any
individual who is or was employed by, or provides or provided services to, Modis or any of its Affiliates, and who has applied for reinstatement
in his or her jobs with the Parent Group, and which claims are still pending as of the Local Transfer Date.

 

“Closing Plan Year” means the
calendar year in which the Distribution occurs.

 

“COBRA” means the U.S. Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended from time to time, and any applicable similar state or local Laws.

 

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

 

“Collective Bargaining Agreements”
has the meaning set forth in Section 2.07.

 

“Continuing Retiree Medical Jurisdictions”
means Argentina, Austria, Belgium, Portugal, Taiwan and Turkey.

 

“Delayed Transfer Date” has the
meaning set forth in Section 2.03.

 

“Delayed Transfer Employee” means
any Transferring Employee whose employment cannot transfer to Parent or SpinCo or their Subsidiaries as of the Local Transfer Date, whether
due to (a) legal or regulatory requirements, (b) the timing for obtaining the relevant consent or release in order to transfer
a SpinCo Contract to SpinCo in accordance with the Separation Agreement if SpinCo is prohibited from performing the services associated
with such SpinCo Contract prior to the transfer of such contract, (c) the need to obtain any required approval from any works council
or other labor authority or Governmental Authority prior to transferring the employment of such Transferring Employee, (d) providing
services to the SpinCo Group under the TSA and whose employment is intended by Parent to transfer to the SpinCo Group following the completion
of the applicable TSA service, (e) providing services to the Parent Group under the TSA and whose employment is intended by Parent
to transfer to the Parent Group following the completion of the applicable TSA service, and with respect to such Delayed Transfer Employees
described in clauses (d) and (e), the Parties shall use commercially reasonable efforts to ensure that such Delayed Transfer Employees
become employed by the Destination Employer as soon as practicable following the completion of the applicable TSA service or (f) such
other circumstance as Parent and SpinCo shall mutually agree.

 

“Destination Employer” means,
with respect to a Transferring Employee, (a) a member of the SpinCo Group or (b) a member of the Parent Group, in either case,
to which such Transferring Employee transfers as of the Local Transfer Date or Delayed Transfer Date.

 

“Eligible Retiree Medical Employees”
means, with respect to each relevant jurisdiction other than the Continuing Retiree Medical Jurisdictions, each SpinCo Employee who, immediately
prior to the Local Transfer Date, is eligible to participate in Parent’s post-retirement health and life insurance plans and has
satisfied the eligibility criteria to receive benefits under such plans as in effect on the Local Transfer Date and, with respect to SpinCo
Employees located in the United States, any such individual who, as of the Local Transfer Date, is eligible for the “Bridge Leave
Program” under Parent’s Personal Pension Plan, completes a bridge to retirement under such program and, on or before the last
date of such bridge to retirement, satisfies the eligibility criteria to receive benefits under Parent’s U.S. post-retirement health
and life insurance plans.

 

    2 

     

    

 

“Employment Taxes” means all fees,
Taxes, social insurance payments and similar contributions to a Governmental Authority or a fund of a Governmental Authority with respect
to wages or other compensation of an employee or other service provider.

 

“ERISA” means the U.S. Employee
Retirement Income Security Act of 1974, as amended from time to time.

 

“Former Parent Employee” means
a former employee of any member of the Parent Group or the SpinCo Group, any of their respective members or any of their respective predecessors,
in each case, prior to the Local Transfer Date, who is not a Former SpinCo Employee.

 

“Former SpinCo Employee” means
each individual who (a) as of the Local Transfer Date, is not employed by any member of the Parent Group or the SpinCo Group, any
of their respective members or any of their respective predecessors, and (b) as of immediately prior to such individual’s termination
of employment, (x) was employed by a member of the SpinCo Group or (y) would have been a SpinCo Employee pursuant to clause
(a), (b) or (c) of the definition of SpinCo Employee, or as otherwise reasonably determined by Parent.

 

“Insured Transferee Defined Benefit Plan”
means a defined benefit pension plan sponsored or maintained by the SpinCo Group that is assuming Liabilities that relate to benefits
accrued prior to the applicable Non-U.S. DB Transfer Date by SpinCo Employees under an Insured Transferor Defined Benefit Plan.

 

“Insured Transferor Defined Benefit Plan”
means any defined benefit pension plan sponsored or maintained by the Parent Group for the benefit of employees principally employed in
the jurisdictions designated as such on Schedule 9.02.

 

“Local Agreement” means an agreement
describing the implementation of the matters described in this Agreement (including, without limitation, matters regarding employment,
compensation and employee benefits) with respect to Parent Employees, Former Parent Employees, SpinCo Employees and Former SpinCo Employees
in a specified jurisdiction in accordance with applicable Law in the custom of the applicable jurisdiction.

 

“Local Transfer Date” means, as
applicable, the earliest of (a) the applicable scheduled “transfer of employment” (or ToE) date on which transfers of
employment occurred for the SpinCo Employees in the applicable jurisdiction, (b) the date prior to the Distribution Date on which
an individual became a SpinCo Employee and (c) the date with respect to a SpinCo Employee otherwise determined by Parent. For the
avoidance of doubt, the Local Transfer Date may not be the same for every SpinCo Employee located in a single jurisdiction.

 

“Non-Transferor Defined Benefit Plan”
means any defined benefit pension plan of the Parent Group maintained for employees who are principally employed outside the United States
and that is not an Insured Transferor Defined Benefit Plan, Subsidiary Defined Benefit Plan, Transferor Defined Benefit Plan or Unfunded
Transferor Defined Benefit Plan.

 

“Non-U.S. DB Transfer Date” means
the Local Transfer Date or such other date as agreed to between Parent and SpinCo, which need not be the same for each plan; provided
that, except with respect to any Transferor Defined Benefit Plan in Germany and the Netherlands, the Non-U.S. DB Transfer Date shall not
occur later than the first anniversary of the Distribution Date.

 

    3 

     

    

 

“Non-U.S. DC Plan” has the meaning
set forth in Section 10.05.

 

“Non-U.S. Employees” has the meaning
set forth in Section 14.01.

 

“Offering Period” has the meaning
set forth in the Parent ESPP.

 

“Parent 401(k) Plan” has
the meaning set forth in Section 10.01.

 

“Parent Benefit Plan” means any
Benefit Plan sponsored, maintained or, unless such Benefit Plan is exclusively sponsored or maintained by a member of the SpinCo Group,
contributed to by any member of the Parent Group or to which any member of the Parent Group is a party.

 

“Parent Compensation Committee”
means the Executive Compensation and Management Resources Committee of Parent or such other committee designated by the Parent Board to
administer the Parent Equity Plans.

 

“Parent Employee” means (a) each
individual who is an employee of any member of the Parent Group as of immediately prior to or on the Local Transfer Date, including any
such individual who is not actively at work due to a leave of absence (including vacation, holiday, illness, injury and short-term and
long-term disability) from which such employee is permitted to return to active employment in accordance with the Parent Group’s
personnel policies, as in effect from time to time, or applicable Law, (b) each individual who becomes an active employee of any
member of the Parent Group following the Local Transfer Date but, in each case of clauses (a) and (b), excluding any SpinCo Employee
or Former SpinCo Employee, and (c) each individual who is intended by Parent to be a Parent Employee.

 

“Parent Equity Award Ratio” means
the quotient obtained by dividing (a) the Parent Pre-Separation Stock Value by (b) the Parent Post-Separation Stock Value, carried
out to six decimal places.

 

“Parent Equity Awards” means the
Parent Options, Parent Restricted Stock Units and Parent Performance Share Units.

 

“Parent Equity Plans” means the
Parent 1997 Long-Term Performance Plan, the Parent 1999 Long-Term Performance Plan, the Parent 2001 Long-Term Performance Plan, the Parent
PWCC Acquisition Long-Term Performance Plan and the Parent Red Hat Acquisition Long-Term Performance Plan, each as amended from time to
time, and any other stock option or stock incentive compensation plan or arrangement, including any equity award agreement, that is a
Parent Benefit Plan or is a plan of an entity acquired by Parent, in each case, as in effect as of the time relevant to the applicable
provision of this Agreement.

 

“Parent ESPP” means the Parent
2014 Employees Stock Purchase Plan.

 

“Parent Individual Agreement”
means any individual (a) employment contract or offer letter, (b) retention, severance or change in control agreement, (c) expatriate
(including any international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation
or equalization of Taxes and living standards in the host country) or (d) other agreement containing restrictive covenants (including
confidentiality, non-competition and non-solicitation provisions) between a member of a Group, on the one hand, and (i) a Parent
Employee or (ii) a Former Parent Employee, on the other hand, as in effect immediately prior to the Local Transfer Date.

 

    4 

     

    

 

“Parent LTD Plan” means any long-term
disability insurance plan that is a Parent Benefit Plan.

 

“Parent Nonqualified Deferred Compensation
Plans” means the Amended and Restated Parent Excess 401(k) Plus Plan (f/k/a the Parent Executive Deferred Compensation
Plan) and the Deferred Compensation and Equity Award Plan, each as amended from time to time, and any other nonqualified deferred compensation
plan or arrangement (including individual arrangements) that is a Parent Benefit Plan, as in effect as of the time relevant to the applicable
provision of this Agreement.

 

“Parent Option” means an option
to purchase Parent Common Stock that is outstanding as of immediately prior to the Distribution under any of the Parent Equity Plans.

 

“Parent Performance Share Unit”
means a performance share unit award relating to Parent Common Stock that is outstanding as of immediately prior to the Distribution under
any of the Parent Equity Plans.

 

“Parent Post-Separation Stock Value”
means the opening per share price of Parent Common Stock on the New York Stock Exchange on the first trading day that occurs immediately
following the Distribution Date.

 

“Parent Pre-Separation Stock Value”
means the closing per share price of Parent Common Stock trading “regular way with due bills” on the New York Stock Exchange
on the last trading day that occurs on or prior to the Distribution Date.

 

“Parent Reverse Transfer Defined Benefit
Plan” means a defined benefit pension plan sponsored or maintained by the Parent Group that is assuming Liabilities that relate
to benefits accrued prior to the applicable Subsidiary DB Transfer Date under a Reverse Transfer Defined Benefit Plan.

 

“Parent Reimbursement Account Plan”
has the meaning set forth in Section 7.07.

 

“Parent Restricted Stock Award”
means a restricted stock award relating to Parent Common Stock that is outstanding as of immediately prior to the Distribution under any
of the Parent Equity Plans.

 

“Parent Restricted Stock Unit”
means a restricted stock unit or retention restricted stock unit award relating to Parent Common Stock that is outstanding as of immediately
prior to the Distribution under any of the Parent Equity Plans.

 

“Parent U.S. Pension Plan” has
the meaning set forth in Section 9.01.

 

“Parent Welfare Plan” means each
Welfare Plan that is a Parent Benefit Plan.

 

“Participating Transferor Defined Benefit
Plans” means any Transferor Defined Benefit Plan in the jurisdictions designated as such on Schedule 9.02.

 

    5 

     

    

 

“Pension Asset Transfer Date”
has the meaning set forth in Section 9.02(c)(i).

 

“Performance Share Unit Conversion Amount”
means the number of shares of Parent Common Stock to which a Parent Performance Share Unit relates immediately prior to the Distribution
Date assuming (i) for Parent Performance Share Units related to performance periods that began prior to January 1, 2021, actual
achievement of the relevant performance goals as of immediately prior to the Distribution as determined by the Parent Compensation Committee,
or (ii) for Parent Performance Share Units related to the 2021 to 2023 performance period, target-level achievement of the relevant
performance goals.

 

“Pre-Transfer Service” has the
meaning set forth in Section 4.02.

 

“Retained LTD Employee” means
each applicable employee of the SpinCo Group who is identified by Parent as a Retained LTD Employee, in a Local Agreement or otherwise.

 

“Retention Bonus Programs” means
retention bonus programs for the benefit of SpinCo Employees, including any individual agreement entered into with any SpinCo Employee.

 

“Reverse Transfer Defined Benefit Plan”
means any Subsidiary Defined Benefit Plan designated as such on Schedule 9.02.

 

“Specified Period” shall mean
the period set forth on Schedule 1.01.

 

“SpinCo 401(k) Plan” has
the meaning set forth in Section 10.01.

 

“SpinCo Award Agreement” has the
meaning set forth in Section 13.01.

 

“SpinCo Benefit Plan” means any
Benefit Plan sponsored, maintained or, unless such Benefit Plan is exclusively sponsored or maintained by a member of the Parent Group,
contributed to by any member of the SpinCo Group or to which any member of the SpinCo Group is a party.

 

“SpinCo Employee” means (a) each
individual who is an employee of any member of the SpinCo Group as of immediately prior to or on the Local Transfer Date, including any
individual who is not actively at work due to a leave of absence (including vacation, holiday, illness, injury and short-term disability,
and any SpinCo LTD Employee, but excluding any Retained LTD Employee) from which such employee is permitted to return to active employment
in accordance with the Parent Group’s or SpinCo Group’s personnel policies, as in effect from time to time, or applicable
Law, (b) each individual who becomes an active employee of the SpinCo Group following the Local Transfer Date but, in each case of
clauses (a) and (b), excluding any Former SpinCo Employee, (c) each individual listed on Schedule 1.01(a) or listed
in a Local Agreement as a SpinCo Employee and (d) each individual who is intended by Parent to be a SpinCo Employee; provided,
however, that, unless otherwise required by applicable Law, each individual listed on Schedule 1.01(b) or listed in
a Local Agreement as a Parent Employee shall be a Parent Employee for all purposes of this Agreement.

 

“SpinCo Equity Award Ratio” means
the quotient obtained by dividing (a) the Parent Pre-Separation Stock Value by (b) the SpinCo Stock Value, carried out to six
decimal places.

 

“SpinCo Equity Incentive Plan”
has the meaning set forth in Section 13.01.

 

    6 

     

    

 

“SpinCo Incentive Payments” has
the meaning set forth in Section 3.01.

 

“SpinCo Individual Agreement”
means any individual (a) employment contract or offer letter, (b) retention, severance or change in control agreement, (c) expatriate
(including any international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation
or equalization of Taxes and living standards in the host country) or (d) other agreement containing restrictive covenants (including
confidentiality, non-competition and non-solicitation provisions) between a member of a Group, on the one hand, and (i) a SpinCo
Employee or (ii) a Former SpinCo Employee, on the other hand, in each case, as in effect immediately prior to the Distribution Date.

 

“SpinCo LTD Employee” means each
applicable employee of the SpinCo Group who, as of immediately prior to the Local Transfer Date, is receiving long-term disability benefits
under the Parent LTD Plan and who is not a Retained LTD Employee.

 

“SpinCo Nonqualified Deferred Compensation
Plans” has the meaning set forth in Section 11.01.

 

“SpinCo Option” means an option
to purchase SpinCo Common Stock.

 

“SpinCo Reimbursement Account Plan”
has the meaning set forth in Section 7.07.

 

“SpinCo Restricted Stock Award”
means a restricted stock award relating to SpinCo Common Stock.

 

“SpinCo Restricted Stock Unit”
means a restricted stock unit or retention restricted stock award relating to SpinCo Common Stock.

 

“SpinCo Retiree Medical Plans”
has the meaning set forth in Section 7.09.

 

“SpinCo Stock Value” means the
opening per share price of SpinCo Common Stock on the New York Stock Exchange on the first trading day that occurs immediately following
the Distribution Date.

 

“SpinCo Welfare Plans” has the
meaning set forth in Section 7.01.

 

“Subsidiary DB Transfer
Date” has the meaning set forth in Section 9.02(b)(i).

 

“Subsidiary Defined
Benefit Plan” means any defined benefit pension plan sponsored or maintained solely by the subsidiaries designated as such on
Schedule 9.02.

 

“Taxes” shall have the meaning
set forth in the Tax Matters Agreement dated as of the date of this Agreement by and between Parent and SpinCo.

 

“Transfer Regulations” means the
European Council Directive of March 12, 2001 (2001/23/EC), relating to the safeguarding of employees’ rights in the event of
transfers of undertakings, businesses or parts of businesses and any legislation implementing such Directive, or any other similar Law
where there are SpinCo Employees.

 

    7 

     

    

 

“Transferee Defined Benefit Plan”
means a defined benefit pension plan sponsored or maintained by the SpinCo Group that is assuming Liabilities that relate to benefits
accrued prior to the applicable Non-U.S. DB Transfer Date by SpinCo Employees under a Transferor Defined Benefit Plan.

 

“Transferor Defined Benefit Plan”
means any defined benefit pension plan sponsored or maintained by the Parent Group for the benefit of employees principally employed in
the jurisdictions designated as such on Schedule 9.02.

 

“Transferring Employee” means
(a) each SpinCo Employee who transfers to a member of the SpinCo Group and (b) each Parent Employee who transfers to a member
of the Parent Group.

 

“TSA” means the Transition Services
Agreement dated as of the date of this Agreement by and between Parent and SpinCo.

 

“Unfunded Transferee Defined Benefit Plan”
means a defined benefit pension plan sponsored or maintained by the SpinCo Group that is assuming Liabilities that relate to benefits
accrued prior to the applicable Non-U.S. DB Transfer Date by SpinCo Employees under an Unfunded Transferor Defined Benefit Plan.

 

“Unfunded Transferor Defined Benefit Plan”
means any defined benefit pension plan sponsored or maintained by the Parent Group for the benefit of SpinCo Employees principally employed
in the jurisdictions designated as such on Schedule 9.02.

 

“U.S. GAAP” means United States
generally accepted accounting principles.

 

“WARN Act” means the Worker Adjustment
and Retraining Notification Act of 1988, as amended, and any applicable similar state or local Laws.

 

“Welfare Plan” means each Benefit
Plan that provides life insurance, health care, dental care, accidental death and dismemberment insurance, disability, severance, vacation
or other group welfare or fringe benefits.

 

“Welfare Plan Date” has the meaning
set forth in Section 7.01.

 

“Workers’ Compensation Claim Date”
has the meaning set forth in Section 7.03.

 

“Workers’ Compensation Event”
means the event, injury, illness or condition giving rise to a workers’ compensation claim with respect to a SpinCo Employee or
Former SpinCo Employee.

 

Article 2

GENERAL PRINCIPLES

 

Section 2.01.        SpinCo
Employees. Except as provided in Section 2.03, all SpinCo Employees shall continue to be employees of the SpinCo Group
immediately following the Local Transfer Date. Except as required by applicable Law, the Parties agree that none of the transactions contemplated
by the Separation Agreement or any of the Ancillary Agreements, including this Agreement, shall cause any SpinCo Employee or Former SpinCo
Employee to be deemed to have incurred an involuntary termination of employment or to be eligible to receive severance benefits solely
as a result of the transfers of employment contemplated by this Agreement or the Distribution.

 

    8 

     

    

 

Section 2.02.        Prepositioning
of Transferring Employees. Effective no later than the Local Transfer Date or Delayed Transfer Date, and except as otherwise agreed
by the Parties or as provided in Section 2.03, the applicable members of the SpinCo Group and the Parent Group shall have
taken such actions as are necessary to ensure that (i) each SpinCo Employee is employed by a member of the SpinCo Group and (ii) each
Parent Employee is employed by a member of the Parent Group. Each of the Parties agrees to execute, and to seek to have the applicable
employees execute, such documentation, if any, as may be necessary to reflect such assignment and/or transfer.

 

Section 2.03.        Delayed
Transfer Employees. With respect to each Delayed Transfer Employee, the Parties shall use commercially reasonable efforts to ensure
that (a) such Delayed Transfer Employee becomes employed by the Destination Employer at the earliest time permitted by the applicable
transfer restriction (the “Delayed Transfer Date”) and (b) the Destination Employer receives the benefit of such
Delayed Transfer Employee’s services from and after the Local Transfer Date, including under the TSA or by entering into an employee
leasing or similar arrangement. From and after the commencement of a Delayed Transfer Employee’s employment with the Destination
Employer, such Delayed Transfer Employee shall be treated for all purposes of this Agreement, including Section 4.02, as if
such Delayed Transfer Employee commenced employment with the Destination Employer as of the Local Transfer Date as contemplated by Section 2.01.
Notwithstanding the foregoing, the Destination Employer shall reimburse the other Party and its Subsidiaries and Affiliates for any Liabilities
of such other Party and its Subsidiaries and Affiliates arising with respect to the Delayed Transfer Employees.

 

Section 2.04.        Work
Visas. If any SpinCo Employee requires a visa, work permit, employment pass or other approval for his or her employment with the Destination
Employer, the Parties shall use commercially reasonable efforts to see that any necessary visa, permit, employment pass or other approval
has been obtained on or prior to the Local Transfer Date or Delayed Transfer Date.

 

Section 2.05.        Employment
of SpinCo Employees.

 

(a)          Effective
upon the Local Transfer Date or Delayed Transfer Date, as applicable, SpinCo agrees that it shall, or shall cause the applicable member
of the SpinCo Group to, until the end of the Specified Period, employ each SpinCo Employee (i) in an equivalent position (including,
without limitation, in terms of job duties and functions as well as status as a regular employee or fixed-term hire), (ii) at a location
that is within a reasonable proximity (i.e., no more than forty (40) miles) to the location worked at prior to the Local Transfer
Date or Delayed Transfer Date or, in the case of a SpinCo Employee who works remotely, SpinCo shall provide such resources as will enable
such individual to maintain such arrangement, (iii) at the same or higher base salary and eligibility for the same or higher additional
earnings opportunity (i.e., variable pay/bonus and/or commissions and/or equity and equity-based compensation) and (iv) with other
benefit plans and arrangements (including medical, dental, life insurance, post-retirement health and life insurance, disability, a separation
practice or policy and other welfare benefits and qualified and nonqualified retirement plans) or the cash equivalent, that are comparable
in the aggregate to those provided to such SpinCo Employee by Parent or any member of the Parent Group on the Local Transfer Date or Delayed
Transfer Date. If SpinCo and Parent dispute any matter under this Agreement, and any such dispute is not resolved to the satisfaction
of SpinCo and Parent within five (5) days of notification of the dispute by one Party to the other Party, a vice president (or higher-level
executive) of each Party shall endeavor to resolve the dispute during the five (5)-day period that follows the end of such five (5)-day
period. If any such dispute remains unresolved at the end of such subsequent five (5)-day period, either Party may elect to have the terms
submitted for arbitration by an independent consultant or actuary mutually acceptable to SpinCo and Parent to determine whether the terms
are satisfied. The determination of such consultant or actuary shall be conclusive, final and binding and have the force and effect of
an arbitral award. The fees and expenses of such independent consultant or actuary shall be shared equally by the Parties.

 

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(b)          Automatic
Transfer Employees shall not be terminated upon the Local Transfer Date or Delayed Transfer Date, as applicable; rather, such employees
and the rights, powers, duties, liabilities and obligations of the current employer with respect to such employees in respect of the terms
of employment with the employees in force immediately before the Local Transfer Date or Delayed Transfer Date, as applicable, shall be
transferred to the applicable member of the SpinCo Group but only to the extent required by, and only then in accordance with, applicable
Law. To the extent required by the Transfer Regulations and applicable Law, SpinCo shall maintain for a period, if any, not less than
that provided for by applicable Law the same terms and conditions of employment that relate to the SpinCo Employees as of immediately
prior to the Local Transfer Date or Delayed Transfer Date; provided, however, that if the period required by applicable
Law for any such SpinCo Employee expires prior to the expiration of the period provided for in Section 2.05(a), then SpinCo
shall, and shall cause the SpinCo Group to, comply with this Section 2.05(b) for a period commencing on the expiration
of the period required by applicable Law and ending on the expiration of the period required under Section 2.05(a).

 

(c)           In
addition to the provisions set forth in Section 2.05(a) and (b), with respect to the SpinCo Employees who are
not subject to a mandatory transfer in accordance with the Transfer Regulations and whose employment will not automatically continue with
the SpinCo Group after the Local Transfer Date or Delayed Transfer Date or otherwise in connection with the Separation Agreement and Ancillary
Agreements, except as specifically provided in the applicable Local Agreement, the applicable member of the SpinCo Group shall offer employment
to, or continue the employment of, such SpinCo Employees as of the Local Transfer Date or Delayed Transfer Date under their previous terms
and conditions of employment (except for their physical work location), but only to the extent that (i) such SpinCo Employees are
located in a jurisdiction in which the Transfer Regulations are applicable and (ii) such terms and conditions of employment are required
to be provided pursuant to the Transfer Regulations to SpinCo Employees in such jurisdiction whose employment contracts are subject to
transfer pursuant to the Transfer Regulations.

 

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Section 2.06.        Individual
Agreements. Effective as of no later than the Local Transfer Date or Delayed Transfer Date, SpinCo and Parent, as applicable, shall
assign, or cause an applicable member of the respective Parent Group or SpinCo Group to assign, (a) the SpinCo Individual Agreements
to a member of the SpinCo Group and SpinCo shall agree, or cause an applicable member of the SpinCo Group to agree, to accept and be bound
by the provisions of the SpinCo Individual Agreements and (b) the Parent Individual Agreements to a member of the Parent Group and
Parent shall agree or cause an applicable member of the Parent Group to accept and be bound by the provisions of the Parent Individual
Agreements; provided, however, that to the extent that assignment of any such agreement is not permitted by the terms of
such agreement or by applicable Law, effective as of the Local Transfer Date or Delayed Transfer Date, each member of the SpinCo Group
(in the case of each SpinCo Individual Agreement) or the Parent Group (in the case of each Parent Individual Agreement) shall be considered
to be a successor to each member of the SpinCo Group or Parent Group, as applicable, for purposes of, and a third-party beneficiary with
respect to, such agreement, such that each member of the SpinCo Group or Parent Group, as applicable, shall enjoy all of the rights and
benefits under such agreement (including rights and benefits as a third-party beneficiary) as well as assume the potential associated
liabilities, with respect to the business operations of the SpinCo Group or Parent Group, as applicable; provided, further,
that in no event shall any Party be permitted to enforce (i) any SpinCo Individual Agreement (including any agreement containing
non-competition or non-solicitation covenants) against a SpinCo Employee for action taken in such individual’s capacity as a SpinCo
Employee other than on behalf of the SpinCo Group as requested by the SpinCo Group in its capacity as a third-party beneficiary and (ii) any
Parent Individual Agreement (including any agreement containing non-competition or non-solicitation covenants) against a Parent Employee
for action taken in such individual’s capacity as a Parent Employee other than on behalf of the Parent Group as requested by the
Parent Group in its capacity as a third-party beneficiary; provided, further, that with respect to any SpinCo Employee or
Former SpinCo Employee who was employed by a member of the Parent Group within twenty-four (24) months prior to the Distribution Date,
Parent shall retain the right to enforce, and shall be a third-party beneficiary with respect to, any non-competition covenant as applied
to the business of the Parent Group contained in any SpinCo Individual Agreement against such SpinCo Employee for a period of twenty-four
(24) months after the Distribution Date.

 

Section 2.07.        Collectively
Bargained Employees. All provisions contained in this Agreement providing for the treatment of compensation and benefits in connection
with the Distribution shall apply equally to each employee who is covered by a collective bargaining, works council or other labor union
agreement, contract or labor arrangement (collectively, “Collective Bargaining Agreements”), except to the extent that
any such agreement specifically provides for the terms, conditions, compensation or benefits contemplated by such provision and, in each
such case, such agreement shall apply rather than the terms of this Agreement.

 

Section 2.08.        Collective
Bargaining Agreements. As of the Local Transfer Date, SpinCo shall, and shall cause the members of the SpinCo Group, as appropriate,
to (a) adopt and assume each Collective Bargaining Agreement covering any of the SpinCo Employees in such jurisdiction immediately
prior to the Local Transfer Date, subject to any agreed-upon changes required by the transition of such Collective Bargaining Agreement
to the applicable member of the SpinCo Group or by applicable Law, (b) unless otherwise provided in this Agreement, assume and honor
any obligations of the Parent Group under any Collective Bargaining Agreements as such obligations relate to SpinCo Employees and Former
SpinCo Employees and (c) recognize the works councils, labor unions and other employee representatives that are parties to such Collective
Bargaining Agreements, and the Parent Group shall have no further liability thereunder with respect to the SpinCo Employees and Former
SpinCo Employees; provided that any compensation or benefits that were, prior to the Local Transfer Date, provided to SpinCo Employees
in such jurisdiction under the Collective Bargaining Agreements through the Parent Benefit Plans shall, to the extent that such compensation
and benefits are still required to be provided under the Collective Bargaining Agreements on and after the Local Transfer Date, be provided
as mutually agreed with such works councils, labor unions and other employee representatives through the SpinCo Benefit Plans as set forth
in this Agreement.

 

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Section 2.09.         Liabilities
Generally. From and after the Local Transfer Date or such other date agreed by Parent and SpinCo, except as expressly provided in
this Agreement, in each applicable jurisdiction (a) SpinCo and the SpinCo Group shall assume or retain, as applicable, and SpinCo
hereby agrees to pay, perform, fulfill and discharge, in due course in full, and be solely responsible for, all Liabilities with respect
to the employment or termination of employment of all SpinCo Employees, Former SpinCo Employees, their dependents and beneficiaries and
other service providers and all other Liabilities expressly assigned to SpinCo or any member of the SpinCo Group under this Agreement
and (b) Parent and the Parent Group shall assume or retain, as applicable, and Parent hereby agrees to pay, perform, fulfill and
discharge, in due course in full, and be solely responsible for, all Liabilities with respect to the employment or termination of employment
of all Parent Employees, Former Parent Employees, their dependents and beneficiaries and other service providers and all other Liabilities
expressly assigned to Parent or any member of the Parent Group under this Agreement. To the extent that this Agreement does not address
particular Liabilities under any Benefit Plan and the Parties later determine that they should be allocated in connection with the Distribution,
the Parties shall agree in good faith on the allocation, taking into account the handling of comparable Liabilities under this Agreement.
For the avoidance of doubt, it is the intent of the Parties that, as between Parent and SpinCo, the provisions of this Section 2.09
with respect to the allocation of the Liabilities described in this Section 2.09 shall apply notwithstanding the terms of
any Local Agreement or the application of local Law. Notwithstanding anything in this Agreement or any Local Agreement to the contrary,
the SpinCo Group shall assume and hereby agrees to pay, perform, fulfill and discharge, in due course in full, and be solely responsible
for, all Liabilities with respect to Blue Sky Employees.

 

Section 2.10.         Benefit
Plans. Except as otherwise explicitly provided in this Agreement or as may otherwise be provided in accordance with the TSA, as of
the Local Transfer Date or such other date agreed by Parent and SpinCo, each SpinCo Employee (and each of his or her respective dependents
and beneficiaries) in the applicable jurisdiction shall cease active participation in, and each applicable member of the SpinCo Group
shall cease to be a participating employer in, all Parent Benefit Plans, and as of no later than such time, SpinCo shall, or shall cause
the applicable member of the SpinCo Group to, have in effect such corresponding SpinCo Benefit Plans as are necessary to comply with its
obligations pursuant to this Agreement. Effective upon the Local Transfer Date or such other date agreed by Parent and SpinCo, except
as otherwise explicitly provided in this Agreement or a Local Agreement, (a) SpinCo shall, or shall cause one of the members of the
SpinCo Group to, retain, pay, perform, fulfill and discharge, in due course in full, and be solely responsible for, all Liabilities arising
out of or relating to all SpinCo Benefit Plans, taking into account a corresponding assumption of Liabilities by the SpinCo Benefit Plans
with respect to SpinCo Employees and Former SpinCo Employees that were originally the Liabilities of the corresponding Parent Benefit
Plan with respect to periods prior to the Local Transfer Date, and (b) Parent shall, or shall cause one or more members of the Parent
Group to, retain, pay, perform, fulfill and discharge, in due course in full, and be solely responsible for, all Liabilities arising out
of or relating to all Parent Benefit Plans, taking into account the SpinCo Benefit Plan’s assumption of Liabilities with respect
to SpinCo Employees and Former SpinCo Employees that were originally the Liabilities of the corresponding Parent Benefit Plan with respect
to periods prior to the Local Transfer Date. All assets held in trust to fund the Parent Benefit Plans and all insurance policies funding
the Parent Benefit Plans shall be Parent Assets, except to the extent explicitly provided otherwise in this Agreement or a Local Agreement.

 

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Section 2.11.        Payroll
Services. Except as may otherwise be provided in accordance with a Local Agreement or the TSA, on and after the Local Transfer Date
or such other date agreed by Parent and SpinCo, the applicable members of the SpinCo Group shall be solely responsible for all payroll
services, Tax withholding and reporting obligations, and associated government audit assessments and receivables with respect to the SpinCo
Employees and Former SpinCo Employees in the applicable jurisdiction.

 

Section 2.12.         No
Change in Control. The Parties hereto agree that none of the transactions contemplated by the Separation Agreement or any of the Ancillary
Agreements, including this Agreement, constitutes a “change in control,” “change of control” or transaction having
a similar name, as applicable, within the meaning of any Parent Benefit Plan or SpinCo Benefit Plan.

 

Section 2.13.         Inadvertent
Transfers. If Parent determines following the Local Transfer Date that an individual whom Parent intended to be a Parent Employee
or a SpinCo Employee has inadvertently become employed by the SpinCo Group or the Parent Group, respectively, the Parties shall cooperate
in good faith and take such actions as may be reasonably necessary in order to cause the employment of such individual to be promptly
transferred to a member of the Parent Group or the SpinCo Group, as applicable, as intended by Parent, and such individual shall be treated
for all purposes of this Agreement, including Section 4.02, as if such individual commenced employment with the intended Destination
Employer as of the Local Transfer Date of the jurisdiction in which the individual is employed.

 

Section 2.14.        Non-Solicit;
No Hire. Except as otherwise agreed by the Parties, for a period beginning on the Distribution Date and ending two (2) years
following the Distribution Date, (a) SpinCo and the SpinCo Group shall not solicit for employment or hire (as an employee, consultant
or otherwise) any Parent Employee who (i) was employed by Parent or a member of the Parent Group as of the applicable Local Transfer
Date or (ii) became an employee of a member of the Parent Group following the Local Transfer Date and was involved in commercial
contracts (including a TSA) with the SpinCo Group, and (b) Parent and the Parent Group shall not solicit for employment or hire (as
an employee, consultant or otherwise) any (i) SpinCo Employee who was employed by a member of the SpinCo Group as of the Local Transfer
Date, (ii) SpinCo Employee who became an employee of the SpinCo Group following the Local Transfer Date and was involved in commercial
contracts (including a TSA) with the Parent Group or (iii) Former SpinCo Employee who rejected an offer from the SpinCo Group, objected
to an automatic transfer to the SpinCo Group or who terminated employment with the Parent Group before receiving an offer letter or transfer
letter from the SpinCo Group, in each case, subject to applicable Law. Notwithstanding any of the foregoing provisions of this Section 2.14
to the contrary, (A) Parent and the Parent Group shall not be restricted from soliciting for employment or hiring (as an employee,
consultant or otherwise) any SpinCo Employee that was terminated by the SpinCo Group in accordance with the exceptions to the covenant
not to sever SpinCo Employees described in Section 2.15 and (B) the Parties shall not be restricted from soliciting for
employment or hiring (as an employee, consultant or otherwise) any SpinCo Employee or Parent Employee, as applicable, who was terminated
from employment with the applicable Party as a result of a resource action that was not a result of such employee rejecting an offer from
the SpinCo Group. This Section 2.14 is not intended to restrict an individual’s right of employment, nor does it restrict
general, customary employment advertisements and recruiting efforts. Rather, it restricts targeted solicitation of such employees of the
other Party. Employees of either Party may pursue employment opportunities with the other Party on their own initiative. If a final and
non-appealable judicial determination is made that any provision of this Section 2.14 constitutes an unreasonable or otherwise
unenforceable restriction with respect to any particular jurisdiction, the provisions of this Section 2.14 will not be rendered
void but will be deemed to be modified solely with respect to the applicable jurisdiction to the minimum extent necessary to remain in
force and effect for the greatest period and to the greatest extent that such court determines constitutes a reasonable restriction under
the circumstances.

 

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Section 2.15.        Termination
of SpinCo Employees. SpinCo and the SpinCo Group shall not sever a SpinCo Employee transferred pursuant to this Agreement for a period
of one (1) year following the Distribution Date; provided, however, that nothing contained in this Agreement shall
be construed in any way to limit or prevent the SpinCo Group from terminating any SpinCo Employee (a) transferred pursuant to this
Agreement at any time for “cause” or for reasons related to poor performance or conditions of employment; (b) who received
a notice of termination from the Parent Group prior to the Local Transfer Date; (c) who (i) is 100% dedicated to a SpinCo Contract
with a third party that is terminated by the third party, or in the event of a breach of the SpinCo Contract by the third party, or (ii) is
less than 100% dedicated to such a terminated SpinCo Contract with a third party, but only to reflect a proportionate reduction in the
number of SpinCo Employees who service such SpinCo Contract that is approximately commensurate to the aggregate reduction in resource
requirements under such SpinCo Contract; provided that this clause (c) shall not apply with respect to any SpinCo Employee
located in Europe or any other jurisdiction in which a mandatory transfer of employment occurs; or (d) who is already covered by
a termination protection covenant pursuant to another agreement or arrangement with the SpinCo Group as of the Local Transfer Date or
under applicable Law.

 

Article 3

NON-EQUITY INCENTIVES

 

Section 3.01.        SpinCo
Employee Incentives. On and after the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for all Liabilities
with respect to any annual bonus or other cash-based incentive awards under any Benefit Plan to any SpinCo Employee or Former SpinCo Employee
in the applicable jurisdiction, including, for the avoidance of doubt, any such awards with respect to the Parent fiscal year ending prior
to the Distribution (the “SpinCo Incentive Payments”). The SpinCo Group shall be responsible for determining the amounts
of all SpinCo Incentive Payments that have not been determined prior to the Local Transfer Date, including the extent to which established
performance criteria (as interpreted by SpinCo, in its sole discretion) have been met, and shall pay all SpinCo Incentive Payments no
later than the times provided for under the applicable Benefit Plan. For the avoidance of doubt, any determinations made prior to the
Distribution regarding the amounts of any SpinCo Incentive Payments shall be subject to Parent’s prior written approval.

 

Section 3.02.     Retention
Bonus Programs. On and after the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for all Liabilities
with respect to any amounts owed to a SpinCo Employee under the Retention Bonus Programs, and shall pay all amounts under the Retention
Bonus Programs no later than the times provided for under the applicable Retention Bonus Programs. For the avoidance of doubt, any determinations
made prior to the Distribution regarding the amounts of any payments under the Retention Bonus Programs shall be subject to Parent’s
prior written approval.

 

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Article 4

SERVICE CREDIT

 

Section 4.01.         Parent
Benefit Plans. Except as may otherwise be provided in accordance with the TSA or as required by applicable Law or the terms of the
applicable Parent Benefit Plan, service of SpinCo Employees and Former SpinCo Employees in each applicable jurisdiction on and after the
Local Transfer Date, or such other date agreed by Parent and SpinCo, with any member of the SpinCo Group or any other employer, as applicable,
other than any member of the Parent Group, shall not be taken into account for any purpose under any Parent Benefit Plan.

 

Section 4.02.         SpinCo
Benefit Plans. From and after the Local Transfer Date, SpinCo shall, and shall cause the applicable member of the SpinCo Group to,
give each SpinCo Employee full credit for all purposes (including for purposes of eligibility to participate, level of benefits,
early retirement eligibility and early retirement subsidies, vacation days and other paid time off, severance or separation benefits,
vesting and benefit accrual) under any Benefit Plans, Collective Bargaining Agreements and employment-related entitlements (including
under any applicable pension, 401(k), savings, medical, dental, life insurance, vacation, long-service leave or other leave entitlements,
post-retirement health and life insurance, termination indemnity, notice period, severance or separation pay plans) provided, sponsored,
maintained or contributed to by any member of the SpinCo Group for such SpinCo Employee’s service with any member of the SpinCo
Group or the Parent Group, and with any predecessor employer, prior to the Local Transfer Date to the same extent recognized by the Parent
Group (“Pre-Transfer Service”), except to the extent such credit would result in the duplication of benefits for the
same period of service. Notwithstanding the foregoing, to the extent permitted under applicable Law, the SpinCo Group shall not be required
to provide credit for such service for benefit accrual purposes under any SpinCo Benefit Plan that is a defined benefit pension plan unless
such plan has assumed any assets and/or liabilities pursuant to this Agreement, a Local Agreement or applicable Law relating to benefits
accrued by such SpinCo Employee under a Parent Benefit Plan that is a defined benefit pension plan.  The SpinCo Group shall recognize
each SpinCo Employee’s Pre-Transfer Service for any additional benefit introduced by SpinCo after the Local Transfer Date that is
based on length or duration of employment.

 

Section 4.03.         No
Expansion of Participation. Unless otherwise expressly provided in this Agreement, as otherwise determined or agreed to by the Parties,
as required by applicable Law or as explicitly set forth in a SpinCo Benefit Plan, each SpinCo Employee shall be entitled to participate
in a given SpinCo Benefit Plan only to the extent that such SpinCo Employee was entitled to participate in the corresponding Parent Benefit
Plan as in effect immediately prior to the Local Transfer Date, with it being the intent of the Parties that this Agreement does not result
in any expansion of the number of SpinCo Employees participating or the participation rights therein that they had prior to the Local
Transfer Date.

 

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Article 5

SEVERANCE

 

Section 5.01.         Severance.
The SpinCo Group shall be solely responsible for all Liabilities, including all statutory or common law severance or other separation
benefits, any contractual or other termination indemnity, any retirement indemnity, any severance or separation benefits or any other
legally or contractually mandated payments (including any compensation or benefits payable during a termination notice period and any
payments pursuant to a judgment of a court having jurisdiction over the parties) relating to the termination or alleged termination of
any SpinCo Employee’s or Former SpinCo Employee’s employment, whether occurring prior to, on or after the Local Transfer Date.
For the avoidance of doubt, such Liabilities shall include any employer-paid portion of any Employment Taxes and shall be treated as Liabilities
of SpinCo and the SpinCo Group. For the avoidance of doubt, in the event of any conflict between the provisions of this Section 5.01
and Article 9, the provisions of this Section 5.01 shall control.

 

Article 6

WARN ACT

 

Section 6.01.         WARN
Act. SpinCo shall provide any required notice under the WARN Act, and otherwise comply with the WARN Act, in each case, with respect
to any “plant closing” or “mass layoff” (as defined in the WARN Act) or group termination or similar event occurring
on and after 11:59 p.m. on the Local Transfer Date, and SpinCo shall not take any action after the Local Transfer Date that would
cause any terminations of employment of any SpinCo Employees that occur before 11:59 p.m. on the Local Transfer Date to constitute
a “plant closing” or “mass layoff” or group termination, or to create any liability or penalty to Parent under
Law.

 

Article 7

CERTAIN WELFARE BENEFIT PLAN MATTERS;

WORKERS’ COMPENSATION CLAIMS

 

Section 7.01.         SpinCo
Welfare Plans. Without limiting the generality of Section 2.10, effective as of the Local Transfer Date or such other
date as agreed to between Parent and SpinCo, which need not be the same for each Welfare Plan (such applicable date, the “Welfare
Plan Date”), the SpinCo Group shall establish Welfare Plans (collectively, the “SpinCo Welfare Plans”) to
provide welfare benefits to the SpinCo Employees (and their dependents and beneficiaries) in each applicable jurisdiction and, as of the
applicable Welfare Plan Date, each SpinCo Employee (and his or her dependents and beneficiaries) shall cease active participation in the
corresponding Parent Welfare Plan. For the avoidance of doubt, for purposes of this Article 7, the term “SpinCo Employee”
shall be deemed to include each Former SpinCo Employee who was receiving welfare benefits in connection with his or her termination of
employment from a member of the Parent Group or the SpinCo Group as of the applicable Welfare Plan Date.

 

Section 7.02.         Allocation
of Welfare Benefit Claims. (a) The members of the Parent Group shall retain and be solely responsible for all Liabilities in
accordance with the applicable Parent Welfare Plan for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement
claims (such as life insurance claims), in each case, as incurred and reported by SpinCo Employees and Former SpinCo Employees (and each
of their respective dependents and beneficiaries) under such plans prior to the applicable Welfare Plan Date and (b) the members
of the SpinCo Group shall retain and be solely responsible for (i) all Liabilities in accordance with the applicable Parent Welfare
Plan for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement claims (such as life insurance claims),
in each case, that were incurred by SpinCo Employees and Former SpinCo Employees (and each of their respective dependents and beneficiaries)
under such plans prior to the applicable Welfare Plan Date but not yet reported as of the applicable Welfare Plan Date and (ii) all
Liabilities in accordance with the SpinCo Welfare Plans for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement
claims (such as life insurance claims), in each case, as incurred by SpinCo Employees and Former SpinCo Employees (and each of their respective
dependents and beneficiaries) on or after the applicable Welfare Plan Date; provided that SpinCo shall reimburse Parent for Liabilities
incurred under clause (a) between the Local Transfer Date and the applicable Welfare Plan Date. For purposes of this Section 7.02,
a benefit claim shall be deemed to be incurred as follows: (i) for health, dental, vision, employee assistance program and prescription
drug benefits (including in respect of any hospital admission), upon the provision of such services, materials or supplies and (ii) for
life, accidental death and dismemberment, and business travel accident insurance benefits, upon the death, cessation of employment or
other event by Parent giving rise to such benefits.

 

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Section 7.03.         6055/6056
Reporting. The SpinCo Group shall comply with the reporting obligations under Section 6056 of the Code (Reporting of Offers of
Coverage) with respect to SpinCo Employees and Former SpinCo Employees for the Closing Plan Year (including while SpinCo was owned by
Parent) and periods after the Local Transfer Date, for which SpinCo has a reporting obligation; provided that the Parent Group
shall be responsible for complying with all reporting obligations with respect to the year prior to the Closing Plan Year. In this regard,
the SpinCo Group shall be solely responsible for distributing IRS Form 1095-C to applicable individuals and filing IRS Forms 1094-C
and 1095-C with the IRS, all according to the applicable rules and regulations governing such forms. SpinCo shall also be solely
responsible for ensuring that the SpinCo Group complies with the reporting obligations under Section 6055 of the Code (Reporting
of Enrollment in Minimum Essential Coverage) with respect to all SpinCo Employees and Former SpinCo Employees who are enrolled in a self-insured
medical plan under the Parent Welfare Plan. SpinCo may meet this obligation either through IRS Forms 1094-C and 1095-C or IRS Forms 1094-B
and 1095-B, all in accordance with applicable rules and regulations.

 

Section 7.04.        Credit
for Benefits. The SpinCo Group shall (a) waive for each SpinCo Employee and Former SpinCo Employee and his or her dependents,
each waiting period provision, payment requirement to avoid a waiting period, preexisting condition limitation, actively at work requirement
and any other restriction that would prevent immediate or full participation under the SpinCo Welfare Plan (or was previously satisfied
by) such SpinCo Employee or Former SpinCo Employee to the extent that such waiting period, preexisting condition limitation, actively
at work requirement or other restriction would not have been applicable to such SpinCo Employee or Former SpinCo Employee under the terms
of the applicable Parent Benefit Plan immediately prior to the Local Transfer Date and (b) give full credit under the SpinCo Welfare
Plans applicable to each SpinCo Employee and Former SpinCo Employee and his or her dependents, for all out-of-pocket expenses, including
co-payments and deductibles, satisfied prior to the Local Transfer Date in the Closing Plan Year, and for any lifetime maximums, as if
there had been a single continuous employer.

 

Section 7.05.        Workers’
Compensation Claims. In the case of any workers’ compensation claim of any SpinCo Employee or Former SpinCo Employee in respect
of his or her employment with the Parent Group or the SpinCo Group, such claim shall be covered (a) by the SpinCo Group’s workers’
compensation coverage for the applicable jurisdiction if the claim relating to the Workers’ Compensation Event is submitted after
the date on which SpinCo has established workers’ compensation coverage (the “Workers’ Compensation Claim Date”)
and (b) by the Parent Group’s workers’ compensation coverage if the claim relating to the Workers’ Compensation
Event is submitted prior to the Workers’ Compensation Claim Date; provided that SpinCo shall reimburse Parent for Liabilities
actually incurred by the Parent Group under clause (b).

 

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Section 7.06.     COBRA.
If a SpinCo Employee or Former SpinCo Employee (or his or her eligible dependents) was receiving, prior to the applicable Welfare Plan
Date, or is eligible to receive, on or following the applicable Welfare Plan Date, continuation health coverage pursuant to COBRA, the
SpinCo Group and the SpinCo Welfare Plans shall be solely responsible for all Liabilities to such employee (or his or her eligible dependents)
in respect of COBRA. The SpinCo Group shall indemnify, defend and hold harmless the members of the Parent Group from and against any and
all Liabilities relating to, arising out of or resulting from COBRA provided by the SpinCo Group, or the failure of the SpinCo Group to
meet its COBRA obligations, to SpinCo Employees, Former SpinCo Employees and their respective eligible dependents.

 

Section 7.07.     Flexible
Spending Accounts. Effective as of the applicable Welfare Plan Date, the SpinCo Group shall have established a health care and dependent
care reimbursement account plan (the “SpinCo Reimbursement Account Plan”) with features that are comparable to those
contained in the relevant health care and dependent care reimbursement account plan sponsored and maintained by Parent (the “Parent
Reimbursement Account Plan”). With respect to applicable SpinCo Employees and Former SpinCo Employees, effective as of the applicable
Welfare Plan Date, the SpinCo Group shall assume and be solely responsible for administering all reimbursement claims of SpinCo Employees
and Former SpinCo Employees with respect to the plan year in which the applicable Welfare Plan Date occurs, whether arising before, on
or after the applicable Welfare Plan Date, under the SpinCo Reimbursement Account Plan and, for the avoidance of doubt, on and after the
applicable Welfare Plan Date, no additional claims shall be reimbursed with respect to SpinCo Employees and Former SpinCo Employees under
the Parent Reimbursement Account Plan. Parent shall, as soon as practicable following the applicable Welfare Plan Date, determine (a) the
sum of all contributions to the Parent Reimbursement Account Plan made with respect to such plan year by or on behalf of all SpinCo Employees
and Former SpinCo Employees, as a whole, prior to the applicable Welfare Plan Date (the “Aggregate Pre-Transfer Date Contributions”)
and (b) the sum of all claims incurred in such plan year and paid by the Parent Reimbursement Account Plan with respect to such SpinCo
Employees and Former SpinCo Employees, as a whole, prior to the applicable Welfare Plan Date (the “Aggregate Pre-Transfer Date
Disbursements”). If the Aggregate Pre-Transfer Date Contributions exceed the Aggregate Pre-Transfer Date Disbursements, Parent
shall, as soon as practicable following Parent’s determination of the Aggregate Pre-Transfer Date Contributions and Aggregate Pre-Transfer
Date Disbursements, transfer to SpinCo an amount in cash equal to such difference. If the Aggregate Pre-Transfer Date Disbursements exceed
the Aggregate Pre-Transfer Date Contributions, SpinCo shall, upon Parent’s reasonable request and the presentation of such substantiating
documentation as SpinCo shall reasonably request, transfer to Parent an amount in cash equal to such difference.

 

Section 7.08.     Continuation
of Elections. With respect to applicable SpinCo Employees, as of the applicable Welfare Plan Date, the SpinCo Group shall cause the
SpinCo Welfare Plans to recognize and maintain all elections and designations (including, without limitation, all coverage and contribution
elections and beneficiary designations) made by SpinCo Employees under, or with respect to, the Parent Welfare Plans and apply such elections
and designations under the SpinCo Welfare Plans for the remainder of the period or periods for which such elections or designations are
by their original terms applicable, to the extent that such elections or designations are available under the corresponding SpinCo Welfare
Plan. As of the applicable Welfare Plan Date, the SpinCo Group shall cause any SpinCo Welfare Plan that constitutes a cafeteria plan under
Section 125 of the Code to recognize and give effect to all non-elective employer contributions payable and paid toward coverage
of a SpinCo Employee under the corresponding Parent Welfare Plan that constitutes a cafeteria plan under Section 125 of the Code
for the applicable cafeteria plan year.

 

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Section 7.09.     Post-Retirement
Health and Life Insurance.  The Parent Group agrees to allow its Eligible Retiree Medical Employees to participate in, and receive
benefits from, the Parent Group’s applicable post-retirement health and life insurance plans upon their eligibility to enroll, unless
otherwise required by applicable Law; provided that nothing herein shall prohibit Parent or any member of the Parent Group from
amending, modifying or terminating such plans or prevent the application of any such amendment, modification or termination to any Eligible
Retiree Medical Employee.  With respect to any SpinCo Employees and Former SpinCo Employees in the Continuing Retiree Medical Jurisdictions
who, immediately prior to the Local Transfer Date, are eligible to participate in the Parent Group’s post-retirement health and
life insurance plans and have satisfied the eligibility criteria to receive benefits under such plans as in effect on the Local Transfer
Date, the SpinCo Group shall establish, as of the applicable Welfare Plan Date, a SpinCo Benefit Plan that provides post-retirement health
and life insurance benefits that are comparable to the applicable Parent Benefit Plan (the “SpinCo Retiree Medical Plans”),
and SpinCo and the members of the SpinCo Group shall assume and be solely responsible for all Liabilities in accordance with the SpinCo
Retiree Medical Plans with respect to all such SpinCo Employees and Former SpinCo Employees in the Continuing Retiree Medical Jurisdictions.

 

Article 8

LONG-TERM DISABILITY EMPLOYEES

 

Section 8.01.     SpinCo
LTD Employees. Except as otherwise specifically provided in this Agreement, as required by applicable Law or as agreed to between
Parent and SpinCo, on and after the Local Transfer Date, the SpinCo LTD Employees shall be deemed to be employees of the SpinCo Group
for all purposes of this Agreement.

 

Section 8.02.     Retained
LTD Employees. Except as otherwise specifically provided in this Agreement and subject to Section 8.03, on and after the
Distribution, the Retained LTD Employees shall be deemed to be employees of the Parent Group for purposes of this Agreement, including
participation in the Parent LTD Plans. Notwithstanding the foregoing, SpinCo shall reimburse Parent for any Liabilities of the Parent
Group arising with respect to the Retained LTD Employees.

 

Section 8.03.     Return
to Work. To the extent required by applicable Parent Group or SpinCo Group policies, as in effect from time to time, or applicable
Law, SpinCo shall, or shall cause the applicable member of the SpinCo Group to, employ any SpinCo LTD Employee or Retained LTD Employee
at such time, if any, as such SpinCo LTD Employee or Retained LTD Employee is ready to return to active employment, and, with respect
to any Retained LTD Employee, from and after such time, such employee shall no longer be deemed an employee of the Parent Group and shall
be deemed a SpinCo Employee for purposes of this Agreement; provided that, if such SpinCo LTD Employee or Retained LTD Employee
presents himself or herself for active employment and is not employed by a member of the SpinCo Group due to applicable SpinCo Group policies,
and if such SpinCo LTD Employee’s or Retained LTD Employee’s employment is terminated by a member of the Parent Group within
a reasonable time thereafter, SpinCo shall indemnify the Parent Group for all Liabilities incurred in connection with such termination.
Notwithstanding the foregoing, SpinCo or the applicable member of the SpinCo Group shall only be required to employ a Retained LTD Employee
in accordance with this Section 8.03 if such Retained LTD Employee is ready to return to active employment within one (1) year
following the Distribution Date or such greater period as required by applicable Law.

 

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Article 9

DEFINED BENEFIT PENSION PLANs

 

Section 9.01.     U.S.
Pension Plans. Except as otherwise provided in any of Parent’s tax-qualified or nonqualified defined benefit pension plans maintained
for employees principally employed in the United States (each, a “Parent U.S. Pension Plan”), as of the Local Transfer
Date or such other date as agreed to between Parent and SpinCo, each SpinCo Employee shall cease active participation in the relevant
Parent U.S. Pension Plan, and service performed for, and compensation earned from, any employer, other than the Parent Group, and, to
the extent service is recognized under the relevant Parent U.S. Pension Plan, their predecessors, shall not be taken into account for
any purpose under the Parent U.S. Pension Plans. Prior to the Local Transfer Date, Parent shall provide SpinCo with a list of SpinCo Employees
and Former SpinCo Employees who are participants in the nonqualified Parent U.S. Pension Plans. Upon and following the Local Transfer
Date, if a SpinCo Employee on such list terminates employment with the SpinCo Group, SpinCo shall, or shall cause a member of the SpinCo
Group to, provide written notice to Parent of such employee’s termination of employment within twenty (20) days of such employee’s
termination of employment; provided that following the Distribution Date, SpinCo or the applicable member of the SpinCo Group shall
only be required to provide such notice with respect to SpinCo Employees who participate in a nonqualified Parent U.S. Pension Plan. Notwithstanding
the foregoing, SpinCo shall be liable and solely responsible, and shall reimburse Parent, for any Liabilities of the Parent Group arising
with respect to the Parent U.S. Pension Plans as a result of any failure by a member of the SpinCo Group to provide proper notice of an
employment termination that results in the inability of Parent to administer the Parent U.S. Pension Plans in compliance with Section 409A
of the Code to the extent applicable with respect to any SpinCo Employee or Former SpinCo Employee who participated thereunder.

 

Section 9.02.     Non-U.S.
Pension Plans.

 

(a)       Non-Transferor
Defined Benefit Plans. Except as set forth in any Local Agreement and, in any case, with respect to each Non-Transferor Defined Benefit
Plan, the Parent Group shall retain or shall cause to be retained all Assets and Liabilities under such plan (and, to the extent applicable,
under the insurance company contracts maintained to fund such plan) and shall make payments to SpinCo Employees and Former SpinCo Employees
with vested rights thereunder in accordance with the terms of such plan and applicable Law; provided that unvested rights thereunder
shall be treated in accordance with the terms of such plan and applicable Law. Except as otherwise provided in any Non-Transferor Defined
Benefit Plan, as of the Local Transfer Date or such other date as agreed to between Parent and SpinCo, each SpinCo Employee shall cease
active participation in the relevant Non-Transferor Defined Benefit Plan, and service performed for, and compensation earned from, any
employer, other than the Parent Group, and, to the extent service is recognized under the relevant Non-Transferor Defined Benefit Plan,
their predecessors, shall not be taken into account for any purpose under the Non-Transferor Defined Benefit Plans.

 

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(b)      Subsidiary
Defined Benefit Plans.

 

(i)         Assumption
of Subsidiary Defined Benefit Plans. Except to the extent set forth in Section 9.02(b)(ii), with respect to the Subsidiary
Defined Benefit Plans, as of the Local Transfer Date or such other date as agreed to between Parent and SpinCo (the “Subsidiary
DB Transfer Date”), the SpinCo Group shall assume and retain all Assets and Liabilities under such plan (and, to the extent
applicable, under the insurance company contracts maintained to fund such plan) and shall make payments to SpinCo Employees and Former
SpinCo Employees with vested rights thereunder (and unvested rights thereunder to the extent such rights vest) in accordance with the
terms of such plan and applicable Law.

 

(ii)        Establishment
of Parent Reverse Transfer Defined Benefit Plans. Effective as of the applicable Subsidiary DB Transfer Date, in connection with the
transfer of Assets and Liabilities to a Parent Reverse Transfer Defined Benefit Plan from a Subsidiary Defined Benefit Plan that is a
Reverse Transfer Defined Benefit Plan, the Parent Group shall establish a trust or other vehicle to accept such transfer of pension Assets
that relate to Parent Employees, Former Parent Employees, and to the extent specified on Schedule 9.02, Former SpinCo Employees,
unless the Parent Group is prohibited from establishing a trust or other vehicle under applicable Law or the transfer of such Assets to
a trust or other vehicle would result in adverse Tax consequences to a substantial portion of the Parent Employees, Former Parent Employees
or, if applicable, Former SpinCo Employees, in each case, who participated in the relevant Reverse Transfer Defined Benefit Plan immediately
prior to the Subsidiary DB Transfer Date. As soon as practicable following the applicable Subsidiary DB Transfer Date, but in any event
no later than the later of (1) 30 days following the date that the trust or other vehicle that will accept the transferred Assets
with respect to the applicable Reverse Transfer Defined Benefit Plan has been established or designated (unless no such trust or other
vehicle is required) and (2) 30 days following the earliest date permitted by applicable Law, the SpinCo Group shall cause each Reverse
Transfer Defined Benefit Plan to transfer (A) the Liabilities of the Parent Reverse Transfer Defined Benefit Plan with respect the
Parent Employees, Former Parent Employees and, if applicable, Former SpinCo Employees and (B) pension Assets (including, to the extent
applicable, any insurance company contracts maintained to fund such plan) having a value sufficient to satisfy any requirements under
applicable Law from such Reverse Transfer Defined Benefit Plan to the trust or other vehicle established or designated with respect to
the applicable Parent Reverse Transfer Defined Benefit Plan or, where no trust or other vehicle exists, provide payment of an equivalent
amount to Parent or the applicable member of the Parent Group; provided that if there is no such requirement under applicable Law,
the applicable Reverse Transfer Defined Benefit Plan shall transfer to the Parent Reverse Transfer Defined Benefit Plan an aggregate amount
of pension Assets that bears the same proportion as (x) the aggregate amount of Liabilities of such Reverse Transferor Defined Benefit
that relate to Parent Employees, Former Parent Employees and, if applicable, Former SpinCo Employees relative to (y) the aggregate
amount of all Liabilities of such Reverse Transfer Defined Benefit, in each case, as determined in accordance with U.S. GAAP.

 

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(c)      Transferor
Defined Benefit Plans.

 

(i)         Establishment
of Transferee Defined Benefit Plans. Without limiting the generality of Section 2.11, effective as of the applicable Non-U.S.
DB Transfer Date, in connection with the transfer of Assets and Liabilities from a Transferor Defined Benefit Plan to a Transferee Defined
Benefit Plan, the SpinCo Group shall establish a trust or other vehicle to accept such transfer of pension Assets, unless the SpinCo Group
is prohibited from establishing a trust or other vehicle under applicable Law or the transfer of such Assets to a trust or other vehicle
would result in adverse Tax consequences to a substantial portion of the SpinCo Employees who participated in the relevant Transferor
Defined Benefit Plan immediately prior to the applicable Closing Date. As soon as practicable following the applicable Non-U.S. DB Transfer
Date, but in any event no later than the later of (1) 30 days following the date that the trust or other vehicle that will accept
the transferred Assets with respect to the applicable Transferee Defined Benefit Plan has been established or designated (unless no such
trust or other vehicle is required) and (2) 30 days following the earliest date permitted by applicable Law (the “Pension
Asset Transfer Date”), the Parent Group shall cause each Transferor Defined Benefit Plan to transfer pension Assets (including,
to the extent applicable, any insurance company contracts maintained to fund such plan) that have been allocated to SpinCo in accordance
with clause (b)(2) below (as adjusted for appreciation or depreciation that occurs after the Local Transfer Date but prior to the
Pension Asset Transfer Date) or such greater value sufficient to satisfy any requirements under applicable Law from such Transferor Defined
Benefit Plan, to the trust or other vehicle established or designated with respect to the applicable Transferee Defined Benefit Plan or,
where no trust or other vehicle exists, provide payment of an equivalent amount to SpinCo or the applicable member of the SpinCo Group.
In all events in which a transfer is made by the Parent Group or any Transferor Defined Benefit Plan to a Transferee Defined Benefit Plan,
the SpinCo Group shall not take any direct or indirect action to cause a reversion of pension Assets for a period of five years following
the applicable Non-U.S. DB Transfer Date. At all times following the applicable Non-U.S. DB Transfer Date, the SpinCo Group shall not
take any action to reduce any benefits accrued under any Transferor Defined Benefit Plan prior to the applicable Non-U.S. DB Transfer
Date.

 

(ii)        Assets
and Liabilities of Transferor Defined Benefit Plans. With respect to each Transferor Defined Benefit Plan, the Parent Group shall,
or shall cause the applicable Transferor Defined Benefit Plan to, (1) as of the Local Transfer Date, allocate the aggregate pension
Liabilities that relate to SpinCo Employees to the SpinCo Group and the aggregate pension Liabilities that relate to all other participants
to the Parent Group, in each case, as determined in accordance with U.S. GAAP, (2) as of the Local Transfer Date, allocate the pension
Assets to the SpinCo Group or the Parent Group, as applicable, as required by applicable Law; provided that if there is no such
requirement under applicable Law, the applicable Transferor Defined Benefit Plan shall allocate to the SpinCo Group or the Parent Group,
as applicable, an aggregate amount of pension Assets that bears the same proportion to the aggregate amount of Liabilities of such Transferor
Defined Benefit Plan that are allocated to such Party pursuant to clause (1) of this Section 9.02(c)(ii), (3) retain
the pension Assets and Liabilities for accrued benefits under such Transferor Defined Benefit Plan with respect to the SpinCo Employees
through the applicable Non-U.S. DB Transfer Date and (4) manage the pension Assets for accrued benefits under such Transferor Defined
Benefit Plan with respect to the SpinCo Employees through such Non-U.S. DB Transfer Date; provided that nothing herein shall be
deemed to prohibit or restrict the Parent Group from amending or terminating the applicable Transferor Defined Benefit Plan. SpinCo agrees
that as of the Local Transfer Date, SpinCo or a member of the SpinCo Group shall be solely responsible for the Liabilities allocated to
the SpinCo Group pursuant to clause (1) of this Section 9.02(c)(ii).

 

(iii)       Continued
Participation in Participating Transferor Defined Benefit Plans. With respect to each Participating Transferor Defined Benefit Plan,
the Parent Group shall, or shall cause the applicable Participating Transferor Defined Benefit Plan to, (A) permit the applicable
member of the SpinCo Group to become a participating employer and (B) permit the SpinCo Employees to continue to participate in such
Transferor Defined Benefit Plan in accordance with its terms; provided that nothing herein shall be deemed to prohibit or restrict
the Parent Group from amending or terminating the applicable Transferor Defined Benefit Plan. Notwithstanding the foregoing, prior to
the applicable Non-U.S. DB Transfer Date, the SpinCo Group shall timely make all contributions to the applicable Transferor Defined Benefit
Plan that are required to be made by the SpinCo Group pursuant to the terms of such Transferor Defined Benefit Plan and its most recent
actuarial valuation, this Agreement, any Local Funding Agreement and applicable Law.

 

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(iv)       Pension-Related
Indemnification. In the event that the Non-U.S. DB Transfer Date occurs after the applicable Local Transfer Date with respect to any
country, the SpinCo Group shall indemnify, defend and hold harmless the members of the Parent Group and the applicable Transferor Defined
Benefit Plan from and against any and all Liabilities relating to, arising out of or resulting from such arrangement, including, without
limitation, (1) the administrative costs and expenses incurred by the Parent Group or the Transferor Defined Benefit Plan relating
to each SpinCo Employee’s participation in the Transferor Defined Benefit Plan after the applicable Local Transfer Date, (2) other
Liabilities incurred by the Parent Group or the Transferor Defined Benefit Plan as a result of the Parent Group permitting the SpinCo
Employees to participate in the Transferor Defined Benefit Plan after the applicable Local Transfer Date, (3) Liabilities incurred
by the Parent Group or the Transferor Defined Benefit Plan as a result of the termination of employment of, or changes to the employment
terms of, any SpinCo Employee by the SpinCo Group after the applicable Local Transfer Date and (4) in the event that any transaction
contemplated by such arrangement requires the consent of any SpinCo Employee, any payments or benefits that the Parent Group makes or
provides to such SpinCo Employee in order to obtain such consent, as reasonably determined by the Parent Group after consultation with
the SpinCo Group.

 

(d)      Insured
Transferor Defined Benefit Plans. Without limiting the generality of Section 2.11, effective as of the applicable Non-U.S.
DB Transfer Date, in connection with the transfer of Liabilities from an Insured Transferor Defined Benefit Plan to an Insured Transferee
Defined Benefit Plan, the SpinCo Group shall (1) establish an Insured Transferee Defined Benefit Plan to administer the Liabilities
of the applicable Insured Transferor Defined Benefit Plan and (2) execute insurance contracts with a reputable insurance company
to fund the Liabilities assumed by such Insured Transferee Defined Benefit Plan and pay the benefits to the applicable SpinCo Employees,
which contracts shall be effective no later than the applicable Non-U.S. DB Transfer Date; provided, however, in lieu of
the SpinCo Group executing an insurance contract described in this Section 9.02(d)(2), the Parent Group may, in its discretion,
assign insurance contracts to the SpinCo Group in respect of Liabilities assumed by such Insured Transferee Defined Benefit Plan. As of
the applicable Non-U.S. DB Transfer Date, the Parent Group shall cause each Insured Transferor Defined Benefit Plan to transfer the Liabilities
of the Insured Transferor Defined Benefit Plan with respect the SpinCo Employees to the applicable Insured Transferee Defined Benefit
Plan.

 

(e)       Unfunded
Transferor Defined Benefit Plans. Without limiting the generality of Section 2.11, effective as of the applicable Non-U.S.
DB Transfer Date, in connection with the transfer of Liabilities from an Unfunded Transferor Defined Benefit Plan to an Unfunded Transferee
Defined Benefit Plan, the SpinCo Group shall establish an Unfunded Transferee Defined Benefit Plan to administer the Liabilities of the
applicable Unfunded Transferor Defined Benefit Plan and pay the benefits to the applicable SpinCo Employees. As of the applicable Non-U.S.
DB Transfer Date, the Parent Group shall cause each Unfunded Transferor Defined Benefit Plan to transfer the Liabilities of the Unfunded
Transferor Defined Benefit Plan with respect the SpinCo Employees to the applicable Unfunded Transferee Defined Benefit Plan.

 

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(f)       Acknowledgments
of Pension Liabilities. Following the completion of the transfer of Assets and/or Liabilities from a Transferor Defined Benefit Plan
to a Transferee Defined Benefit Plan, from an Insured Transferor Defined Benefit Plan to an Insured Transferee Defined Benefit Plan and
from a Unfunded Transferor Defined Benefit Plan to an Unfunded Transferee Defined Benefit Plan, and the transfer of a Subsidiary Defined
Benefit Plan to the SpinCo Group as provided in this Section 9.02, the Parent Group shall have no further Liability (either
under this Agreement or otherwise) to provide the SpinCo Employees (or Former SpinCo Employees for the Subsidiary Defined Benefit Plans,
other than the applicable Reverse Transfer Defined Benefit Plans) who participated in such plan with benefits under a Transferor Defined
Benefit Plan, Insured Transferor Defined Benefit Plan, Unfunded Transferor Defined Benefit Plan or Subsidiary Defined Benefit Plan,
and the SpinCo Group shall be solely responsible for all Liabilities with respect to any amounts owed to a SpinCo Employee (or Former
SpinCo Employees for the Subsidiary Defined Benefit Plans, other than the applicable Reverse Transfer Defined Benefit Plans) under such
plans. For the avoidance of doubt, the Parent Group shall retain all Assets and Liabilities under any defined benefit pension plans covering
SpinCo Employees or Former SpinCo Employees, except as expressly provided in Sections 9.02(b) through (e).

 

(g)      No
Reduction in Benefits. At all times following the applicable Non-U.S. DB Transfer Date, the SpinCo Group shall not take any action
to reduce any benefits accrued under any Subsidiary Defined Benefit Plan, Transferor Defined Benefit Plan, Insured Transferor Defined
Benefit Plan or Unfunded Transferor Defined Benefit Plan prior to the applicable Non-U.S. DB Transfer Date.

 

Article 10

DEFINED CONTRIBUTION PLANS

 

Section 10.01.     SpinCo
401(k) Plan. Effective as of the Local Transfer Date or such other date as agreed to between Parent and SpinCo, which need not
be the same for each retirement plan (the “Applicable 401(k) Date”), SpinCo or the applicable member of the SpinCo
Group shall establish a defined contribution plan that includes a qualified cash or deferred arrangement within the meaning of Section 401(k) of
the Code (the “SpinCo 401(k) Plan”) providing benefits to the SpinCo Employees participating in any qualified
cash or deferred arrangement within the meaning of Section 401(k) of the Code sponsored by any member of the Parent Group (collectively,
the “Parent 401(k) Plan”) as of the Local Transfer Date; provided, however, that SpinCo or the applicable
member of the SpinCo Group shall not be required to provide SpinCo Employees with an option to invest in SpinCo Common Stock under the
SpinCo 401(k) Plan.

 

Section 10.02.     401(k) Plan
Rollovers. SpinCo or the applicable member of the SpinCo Group shall permit each SpinCo Employee and Former SpinCo Employee participating
in the Parent 401(k) Plan to effect, and SpinCo or the applicable member of the SpinCo Group shall cause the SpinCo 401(k) Plan
to accept, in accordance with applicable Law, a “direct rollover” (within the meaning of Section 401(a)(31) of the Code)
of his or her account balances (including earnings thereon through the date of transfer and promissory notes evidencing all outstanding
loans in accordance with the terms of the SpinCo 401(k) Plan) under the Parent 401(k) Plan if such rollover to the SpinCo 401(k) Plan
is elected in accordance with applicable Law by such SpinCo Employee and Former SpinCo Employee, subject to each of Parent’s and
SpinCo’s reasonable satisfaction that the Parent 401(k) Plan or the SpinCo 401(k) Plan, as applicable, is in compliance
with all applicable Laws and that such plan continues to satisfy the requirements for a qualified plan under Section 401(a) of
the Code and that the trust that forms a part of such plan is exempt from Tax under Section 501(a) of the Code. Upon completion
of a direct rollover of a SpinCo Employee’s and Former SpinCo Employee’s account balances, as described in this Section 10.02,
SpinCo, the SpinCo Group and the SpinCo 401(k) Plan shall be solely responsible for all benefits relating to past service of such
SpinCo Employee and Former SpinCo Employee, as applicable, and none of Parent, the Parent Group and the Parent 401(k) Plan shall
have any liability whatsoever with respect to such benefits.

 

    24 

     

    

 

Section 10.03.     Employer
401(k) Plan Contributions. The Parent Group shall remain responsible for making all employer contributions under the Parent 401(k) Plan
with respect to any SpinCo Employees or Former SpinCo Employees relating to periods prior to the Applicable 401(k) Date. In the event
that the Applicable 401(k) Date occurs after the Local Transfer Date, SpinCo shall reimburse Parent for any employer contributions
made under this Section 10.03 with respect to any SpinCo Employees or Former SpinCo Employees relating to the period beginning
on the Local Transfer Date and ending on the Applicable 401(k) Date. On and after the Applicable 401(k) Date, the SpinCo Group
shall be solely responsible for all employer contributions under the SpinCo 401(k) Plan with respect to any SpinCo Employees or Former
SpinCo Employees.

 

Section 10.04.     Limitation
of Liability. For the avoidance of doubt, Parent shall have no responsibility for any failure of SpinCo to properly administer the
SpinCo 401(k) Plan in accordance with its terms and applicable Law, including any failure to properly administer the accounts of
SpinCo Employees and their respective beneficiaries, including accounts transferred over in accordance with Section 10.02,
in such SpinCo 401(k) Plan.

 

Section 10.05.     Non-U.S.
Defined Contribution Plans. The treatment of each Parent Benefit Plan that is a defined contribution plan for the benefit of employees
outside of the United States and in which any SpinCo Employee or Former SpinCo Employee participates (each, a “Non-U.S. DC Plan”)
shall be governed by the applicable Local Agreement; provided that if a Local Agreement does not address the treatment of an applicable
Non-U.S. DC Plan, then Parent and SpinCo shall use commercially reasonable efforts to cause such Non-U.S. DC Plan to be treated in a manner
that is consistent with applicable Law and, to the extent practicable, the general principles of this Article 10.

 

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Article 11

NONQUALIFIED DEFERRED COMPENSATION

 

Section 11.01.     SpinCo
Nonqualified Deferred Compensation Plans. Notwithstanding Section 2.09 or any other provision of this Agreement to the
contrary, following the Local Transfer Date, the Parent Group shall retain sponsorship of the Parent Nonqualified Deferred Compensation
Plans and all assets and Liabilities arising out of or relating to the Parent Nonqualified Deferred Compensation Plans. Without limiting
the generality of Section 2.10, effective as of the Distribution Date or such other date as agreed to between Parent and SpinCo,
SpinCo shall establish a new nonqualified deferred compensation plan (or plans) sponsored by SpinCo (together, the “SpinCo Nonqualified
Deferred Compensation Plans”). The SpinCo Nonqualified Deferred Compensation Plans shall honor all deferral elections by SpinCo
Employees for the plan year in which the Distribution occurs, and for the 2021 plan year, the SpinCo Nonqualified Deferred Compensation
Plans shall also honor terms and conditions that are substantially similar to the terms and conditions of the corresponding Parent Nonqualified
Deferred Compensation Plan (including matching and automatic employer contributions). The Parties hereto agree that none of the transactions
contemplated by the Separation Agreement or any of the Ancillary Agreements, including this Agreement, will trigger a payment or distribution
of compensation under the Parent Nonqualified Deferred Compensation Plans or the SpinCo Nonqualified Deferred Compensation Plans to any
SpinCo Employee or Former SpinCo Employee (and their respective beneficiaries) and, consequently, that the payment or distribution of
any compensation to which any SpinCo Employee or Former SpinCo Employee (and their respective beneficiaries) is entitled under the Parent
Nonqualified Deferred Compensation Plans will occur upon the time or times provided for under the applicable Parent Nonqualified Deferred
Compensation Plans and such SpinCo Employee’s or Former SpinCo Employee’s deferral elections. Without limiting the generality
of Section 4.01 and subject to Section 17.09, Parent and SpinCo shall use commercially reasonable efforts to cooperate
in administering the Parent Nonqualified Deferred Compensation Plans for purposes of satisfying any obligations relating to the participation
of any SpinCo Employee or Former SpinCo Employee, including by exchanging any necessary participant records and engaging recordkeepers,
administrators, providers, insurers and other third parties. Prior to the Local Transfer Date, Parent shall provide SpinCo with a list
of SpinCo Employees and Former SpinCo Employees who are participants in the Parent Nonqualified Deferred Compensation Plans.  If
a SpinCo Employee on such list terminates employment with the SpinCo Group, SpinCo shall, or shall cause a member of the SpinCo Group
to, provide written notice to Parent of such employee’s termination of employment within twenty (20) days of such employee’s
termination of employment.  Notwithstanding the foregoing, SpinCo shall be liable and solely responsible, and shall reimburse Parent,
for any Liabilities of the Parent Group arising with respect to the Parent Nonqualified Deferred Compensation Plans as a result of any
failure by a member of the SpinCo Group to provide proper notice of an employment termination that results in the inability of Parent
to administer the Parent Nonqualified Deferred Compensation Plans in compliance with Section 409A of the Code with respect to any
SpinCo Employee or Former SpinCo Employee who participated thereunder. For the avoidance of doubt, each SpinCo Nonqualified Deferred Compensation
Plan shall be a SpinCo Benefit Plan.

 

Section 11.02.     No
Transfer of Assets. Except as required by applicable Law, nothing in this Agreement shall require any member of the Parent Group or
the Parent Nonqualified Deferred Compensation Plans to transfer assets or reserves with respect to the Parent Nonqualified Deferred Compensation
Plans to any member of the SpinCo Group or the SpinCo Nonqualified Deferred Compensation Plans.

 

Section 11.03.     Employer
Nonqualified Deferred Compensation Plan Contributions. The Parent Group shall remain responsible for making all employer contributions
under the Parent Nonqualified Deferred Compensation Plans with respect to any SpinCo Employees or Former SpinCo Employees relating to
periods prior to the Distribution Date. SpinCo shall reimburse Parent for any employer contributions made under this Section 11.03
under the Parent Nonqualified Deferred Compensation Plans with respect to any SpinCo Employees or Former SpinCo Employees relating to
the period beginning on the Local Transfer Date and ending on the Distribution Date. Any such contributions that are unvested as of the
Local Transfer Date shall continue to vest in accordance with their terms. On and after the Local Transfer Date, the SpinCo Group shall
be responsible for all employer contributions under the Parent Nonqualified Deferred Compensation Plans and SpinCo Nonqualified Deferred
Compensation Plans with respect to any SpinCo Employees or Former SpinCo Employees.

 

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Section 11.04.     Limitation
of Liability. Parent shall have no responsibility for any failure of the SpinCo Group to properly administer the SpinCo Nonqualified
Deferred Compensation Plans in accordance with their terms and applicable Law, including any failure to properly administer the accounts
of SpinCo Employees or Former SpinCo Employees and their respective beneficiaries in such SpinCo Nonqualified Deferred Compensation Plans.

 

Article 12

ACCRUED LEAVE

 

Section 12.01.     Vacation,
Holidays, Annual Leave and Other Leaves. On the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for all
Liabilities for vacation, holiday, annual leave and/or other leave accruals and benefits with respect to each SpinCo Employee. In addition,
(a) for purposes of determining the number of vacation, holiday, annual leave or other leave days to which such employee shall be
entitled following the Local Transfer Date, SpinCo and the applicable members of the SpinCo Group shall assume and honor all such days
accrued or earned but not yet taken by such employee, if any, as of the Local Transfer Date and (b) to the extent that such employee
is entitled under any applicable Law or any policy of his or her respective employer that is a member of the Parent Group, as the case
may be, to be paid for any vacation, holiday, annual leave or other leave days accrued or earned but not yet taken by such employee as
of the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for the Liability to pay for such days.

 

Article 13

EQUITY COMPENSATION

 

Section 13.01.     SpinCo
Equity Incentive Plan. Prior to the Distribution, Parent shall cause SpinCo to adopt an equity incentive plan or program, to be effective
immediately prior to the Distribution (the “SpinCo Equity Incentive Plan”), and Parent shall approve the SpinCo Equity
Incentive Plan and forms of award agreements for use thereunder (the “SpinCo Award Agreement”) as the sole stockholder
of SpinCo.

 

Section 13.02.     Treatment
of Outstanding Parent Equity Awards. The Parties shall, and shall cause their respective Subsidiaries to, use commercially reasonable
efforts to take all actions necessary or appropriate so that each outstanding Parent Equity Award granted under any Parent Equity Plan
shall be adjusted as set forth in this Section 13.02 as of immediately prior to the Distribution.

 

(a)         Parent
Restricted Stock Units Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Restricted Stock
Unit held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding as of immediately prior to the Distribution
Date shall be subject to the same terms and conditions after the Distribution Date as the terms and conditions applicable to such Parent
Restricted Stock Unit immediately prior to the Distribution Date; provided, however, that from and after the
Distribution Date, the number of shares of Parent Common Stock to which such Parent Restricted Stock Unit relates shall be equal to the
product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares of Parent Common Stock
to which such Parent Restricted Stock Unit related immediately prior to the Distribution Date by (ii) the Parent Equity Award Ratio.

 

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(b)         Parent
Restricted Stock Units Held by SpinCo Employees. Each Parent Restricted Stock Unit held by a SpinCo Employee that is outstanding
as of immediately prior to the Distribution Date shall be converted into a SpinCo Restricted Stock Unit and shall otherwise be subject
to the same terms and conditions (including the applicable vesting schedule) after the Distribution Date as the terms and conditions
applicable to such Parent Restricted Stock Unit immediately prior to the Distribution Date; provided, however,
that from and after the Distribution Date, the number of shares of SpinCo Common Stock to which such SpinCo Restricted Stock Unit relates
shall be equal to the product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares
of Parent Common Stock to which such Parent Restricted Stock Unit related immediately prior to the Distribution Date by (ii) the
SpinCo Equity Award Ratio.

 

(c)         Parent
Performance Share Units Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Performance Share
Unit held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding as of immediately prior to the Distribution
Date shall be subject to the same terms and conditions (including the applicable vesting schedule and any performance conditions) after
the Distribution Date as the terms and conditions applicable to such Parent Performance Share Unit immediately prior to the Distribution
Date; provided, however, that from and after the Distribution Date (i) the target number of shares of Parent
Common Stock to which such Parent Performance Share Unit relates shall be equal to the product, rounded up to the nearest whole number
of shares, obtained by multiplying (A) the target number of shares of Parent Common Stock to which such Parent Performance Share
Unit related immediately prior to the Distribution Date by (B) the Parent Equity Award Ratio; and (ii) the performance conditions
applicable to each such Parent Performance Share Unit may be equitably adjusted, as determined by the Parent Compensation Committee,
to reflect the Distribution.

 

(d)         Parent
Performance Share Units Held by SpinCo Employees. Each Parent Performance Share Unit held by a SpinCo Employee that is outstanding
as of immediately prior to the Distribution Date shall be converted into a SpinCo Restricted Stock Unit subject solely to time-based
vesting conditions and subject to the same terms and conditions (including the applicable vesting schedule, but not any performance conditions)
after the Distribution Date as the terms and conditions applicable to such Parent Performance Share Unit immediately prior to the Distribution
Date; provided, however, that from and after the Distribution Date the number of shares of SpinCo Common Stock
to which such SpinCo Restricted Stock Unit relates shall be equal to the product, rounded up to the nearest whole number of shares, obtained
by multiplying (i) the applicable Performance Share Unit Conversion Amount by (ii) the SpinCo Equity Award Ratio.

 

(e)         Parent
Options Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Option, whether vested or unvested,
held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding and unexercised as of immediately prior
to the Distribution Date shall be subject to the same terms and conditions after the Distribution Date as the terms and conditions applicable
to such Parent Option immediately prior to the Distribution Date; provided, however, that from and after the Distribution
Date: (i) the number of shares of Parent Common Stock subject to such Parent Option shall be equal to the product, rounded down
to the nearest whole number of shares, obtained by multiplying (A) the number of shares of Parent Common Stock subject to such Parent
Option immediately prior to the Distribution Date by (B) the Parent Equity Award Ratio; and (ii) the per share exercise price
of such Parent Option shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share
exercise price of such Parent Option immediately prior to the Distribution Date by (B) the Parent Equity Award Ratio.

 

    28 

     

    

 

(f)          Parent
Options Held by SpinCo Employees. Each Parent Option, whether vested or unvested, held by a SpinCo Employee that is outstanding as
of immediately prior to the Distribution Date shall be converted into a SpinCo Option, and shall otherwise be subject to the same terms
and conditions (including the applicable vesting schedule) after the Distribution Date as the terms and conditions applicable to such
Parent Option immediately prior to the Distribution Date; provided, however, that from and after the Distribution Date:
(i) the number of shares of SpinCo Common Stock subject to such SpinCo Option shall be equal to the product, rounded down to the
nearest whole number of shares, obtained by multiplying (A) the number of shares of Parent Common Stock subject to such Parent Option
immediately prior to the Distribution Date by (B) the SpinCo Equity Award Ratio; and (ii) the per share exercise price of such
SpinCo Option shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share exercise
price of such Parent Option immediately prior to the Distribution Date by (B) the SpinCo Equity Award Ratio.

 

(g)         Parent
Restricted Stock Awards Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Restricted Stock
Award held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding as of immediately prior to the
Distribution Date shall be subject to the same terms and conditions after the Distribution Date as the terms and conditions applicable
to such Parent Restricted Stock Award immediately prior to the Distribution Date; provided, however, that from
and after the Distribution Date, the number of shares of Parent Common Stock to which such Parent Restricted Stock Award relates shall
be equal to the product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares of Parent
Common Stock to which such Parent Restricted Stock Award related immediately prior to the Distribution Date by (ii) the Parent Equity
Award Ratio. Following the Distribution Date, Parent shall be responsible for the payment or settlement of any accrued dividends with
respect to Parent Restricted Stock Awards held by Parent Employees, Former Parent Employees or Former SpinCo Employees, in accordance
with the terms of the applicable Parent Restricted Stock Award.

 

(h)         Parent
Restricted Stock Awards Held by SpinCo Employees. Each Parent Restricted Stock Award held by a SpinCo Employee that is outstanding
as of immediately prior to the Distribution Date shall be converted into a SpinCo Restricted Stock Award and shall otherwise be subject
to the same terms and conditions (including the applicable vesting schedule) after the Distribution Date as the terms and conditions
applicable to such Parent Restricted Stock Award immediately prior to the Distribution Date; provided, however,
that from and after the Distribution Date, the number of shares of SpinCo Common Stock to which such SpinCo Restricted Stock Award relates
shall be equal to the product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares
of Parent Common Stock to which such Parent Restricted Stock Award related immediately prior to the Distribution Date by (ii) the
SpinCo Equity Award Ratio. Following the Distribution Date, SpinCo shall be responsible for the payment or settlement of any accrued
dividends with respect to Parent Restricted Stock Awards (or the SpinCo Restricted Stock Awards into which they were converted) held
by SpinCo Employees, in accordance with the terms of the applicable Parent Restricted Stock Award.

 

    29 

     

    

 

Section 13.03.     Parent
ESPP. The administrator of the Parent ESPP shall take all actions necessary and appropriate to provide that (a) SpinCo Employees
who participate in the Parent ESPP shall not be eligible to participate in any future Offering Periods that begin following the Local
Transfer Date and (b) any cash remaining in the Parent ESPP account of any SpinCo Employee after the Local Transfer Date shall
be refunded to such SpinCo Employee without interest as soon as administratively practicable.

 

Section 13.04.     Tax
Reporting and Withholding for Equity-Based Awards. Unless otherwise required by applicable Law, (a) Parent (or one of its Subsidiaries)
will be responsible for all income, payroll, fringe benefit, social security, payment-on-account and other Tax reporting relating to income
of or otherwise owed by Parent Employees or Former Parent Employees from equity-based awards granted to such employees by Parent, (b) SpinCo
(or one of its Subsidiaries) will be responsible for all income, payroll, fringe benefit, social security, payment-on-account and other
Tax reporting related to or otherwise owed on income of SpinCo Employees or Former SpinCo Employees from equity-based awards granted to
such employees by SpinCo, including equity-based awards described in this Article 13, (c) Parent (or one of its Subsidiaries)
shall be responsible for remitting applicable Tax withholdings and related payments for equity awards granted by Parent and held by Parent
Employees or Former Parent Employees to each applicable taxing authority and (d) SpinCo (or one of its Subsidiaries) shall be responsible
for remitting applicable Tax withholdings and related payments for equity awards granted by SpinCo and held by SpinCo Employees or Former
SpinCo Employees, including equity-based awards described in this Article 13 to each applicable taxing authority. In all cases,
Parent and SpinCo (and any applicable Parent Subsidiary and SpinCo Subsidiary) agree to cooperate to ensure that such obligations are
met. Parent and SpinCo agree to enter into any necessary agreements regarding the subject matter of this Section 13.04 to
enable Parent and SpinCo (and any applicable Parent and SpinCo Subsidiaries) to fulfill their respective obligations hereunder and under
applicable Law.

 

Section 13.05.     Parent
and SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Compensation. Unless otherwise required by applicable Law,
solely the member of the Group for which the relevant individual is currently employed or, if such individual is not currently employed
by a member of the Group, was most recently employed, in either case, at the time of the vesting, exercise, disqualifying disposition,
payment or other relevant taxable event, as appropriate, in respect of equity awards and other compensation shall be entitled to claim
any income tax deduction in respect of such equity awards and other compensation on its respective tax return associated with such event.

 

Section 13.06.     Compliance.
For purposes of this Article 13, and notwithstanding the use of the phrase “same terms” or anything else to the
contrary throughout this article, Parent and SpinCo reserve the right to impose other requirements or different terms and conditions on
any Parent or SpinCo equity awards and Parent or SpinCo stock incentive compensation plans, or to treat the equity awards in a different
manner, to the extent that either of them determines it is necessary or advisable for legal or administrative reasons, including for compliance
with non-U.S. laws and regulations and to mitigate the potential impact of non-U.S. tax consequences on the equity awards.

 

    30 

     

    

 

Article 14

NON-U.S. EMPLOYEES

 

Section 14.01.     Treatment
of Non-U.S. Employees. Except as otherwise agreed by the Parties or as set forth in this Agreement, Parent Employees and SpinCo Employees
who reside outside of the United States or are otherwise subject to non-U.S. Law (“Non-U.S. Employees”) and their related
benefits and Liabilities shall be treated under this Agreement in the same manner as the Parent Employees and SpinCo Employees, respectively,
who are residents of the United States and are not subject to non-U.S. Law; provided that, notwithstanding anything to the contrary
in this Agreement, all actions taken with respect to such Non-U.S. Employees shall be subject to and accomplished in accordance with applicable
Law in the custom of the applicable jurisdictions and may be effectuated by implementation of a Local Agreement.

 

Article 15

COOPERATION; ACCESS TO INFORMATION; LITIGATION; CONFIDENTIALITY

 

Section 15.01.     Cooperation.
Following the date of this Agreement, the Parties shall, and shall cause their respective Subsidiaries to, use commercially reasonable
efforts to cooperate with respect to any employee compensation or benefits matters that either Party reasonably determines require the
cooperation of the other Party in order to accomplish the objectives of this Agreement. Without limiting the generality of the preceding
sentence, the Parent Group and the SpinCo Group shall cooperate in connection with (a) any audits of any Benefit Plan with respect
to which such Party may have Information, (b) any audits of their respective payroll services (whether by a Governmental Authority
in the United States or otherwise) in connection with the services provided by one Party to the other Party and (c) the notification
and consultation with labor unions and other employee representatives of employees of the Parent Group and the SpinCo Group. With respect
to each Benefit Plan, the obligations of the Parent Group and the SpinCo Group to cooperate pursuant to this Section 15.01
or any other provision of this Agreement shall remain in effect until the latest of (i) the date on which all audits of such Benefit
Plan with respect to which a Party may have Information have been completed, (ii) the date the applicable statute of limitations
with respect to such audits has expired and (iii) the date on which the Parent Group discharges all obligations to SpinCo Employees,
Former SpinCo Employees and their respective beneficiaries under such Benefit Plan.

 

Section 15.02.     Access
to Information; Privilege; Confidentiality. Except as would be inconsistent with Section 15.01 or any other provision
of this Agreement relating to cooperation, Article VII of the Separation Agreement is hereby incorporated into this Agreement mutatis
mutandis.

 

Article 16

TERMINATION

 

Section 16.01.     Termination.
This Agreement may be terminated by Parent at any time, in its sole discretion, prior to the Distribution; provided, however,
that this Agreement shall automatically terminate upon the termination of the Separation Agreement in accordance with its terms.

 

    31 

     

    

 

Section 16.02.     Effect
of Termination. In the event of any termination of this Agreement prior to the Distribution, none of the Parties (or any of its directors
or officers) shall have any Liability or further obligation to any other Party under this Agreement.

 

Article 17

MISCELLANEOUS

 

Section 17.01.     Incorporation
of Indemnification Provisions of Separation Agreement. In addition to the specific indemnification provisions in this Agreement, Article VI
of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

Section 17.02.     Additional
Indemnification. If the Parties determine that the SpinCo Group is unable to establish any SpinCo Benefit Plan as of the Local Transfer
Date (or the applicable Welfare Plan Date or such other date specified in this Agreement, if applicable) that it is required under this
Agreement to establish by such date, then the SpinCo Group shall indemnify, defend and hold harmless each of the Parent Indemnitees from
and against any and all Liabilities of the Parent Indemnitees relating to, arising out of or resulting from participation by any SpinCo
Employee or Former SpinCo Employee on or after the Local Transfer Date (or the applicable Welfare Plan Date) in any such Parent Benefit
Plan due to the failure to timely establish such SpinCo Benefit Plan or Plans. In addition, the SpinCo Group shall indemnify, defend and
hold harmless each of the Parent Indemnitees from and against any and all Liabilities of the Parent Indemnitees relating to, arising out
of or resulting from any claim by any SpinCo Employee or Former SpinCo Employee that Parent or any other member of the Parent Group is
a “joint employer” or “co-employer” (or term of similar meaning under applicable Law) with SpinCo or any other
member of the SpinCo Group or any such SpinCo Employee or Former SpinCo Employee on or after the Local Transfer Date (including, except
as otherwise specifically provided in this Agreement or the TSA, with respect to a claim that any of the foregoing are entitled to participate
in any Parent Benefit Plan at any time on or after the Local Transfer Date), except to the extent that any member of the Parent Group
has taken affirmative and substantial action to treat a SpinCo Employee as a Parent Employee under the terms of this Agreement.

 

Section 17.03.     Further
Assurances. Article IX of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

Section 17.04.     Administration.
SpinCo hereby acknowledges that Parent has provided or will provide administration services for certain SpinCo Benefit Plans, and SpinCo
agrees to assume sole responsibility for the administration and administration costs of such plans and each other SpinCo Benefit Plan.
The Parties shall cooperate in good faith to complete such transfer of responsibility on commercially reasonable terms and conditions
effective no later than the Local Transfer Date, the applicable Welfare Plan Date or the Workers’ Compensation Claim Date.

 

Section 17.05.     Third-Party
Beneficiaries. Except as otherwise may be provided in the Separation Agreement with respect to the rights of any Parent Indemnitee
or SpinCo Indemnitee, (a) no provisions of this Agreement shall be construed as a limitation on the right of the Parent Group or
the SpinCo Group to amend any Benefit Plan or terminate its participation therein that the Parent Group or the SpinCo Group would otherwise
have under the terms of such Benefit Plan or otherwise, (b) the provisions of this Agreement are solely for the benefit of the Parties
and are not intended to confer any rights or remedies hereunder upon any Person except the Parties and (c) there are no third-party
beneficiaries of this Agreement, and this Agreement shall not provide any third party with any remedy, claim, liability, reimbursement,
cause of action or other right. Notwithstanding anything to the contrary set forth in this Agreement, no provisions of this Agreement
shall be deemed to guarantee employment for any period of time for, or preclude the ability of Parent or any member of the Parent Group
or SpinCo or any member of the SpinCo Group to terminate any employee or individual service provider for any reason.

 

    32 

     

    

 

Section 17.06.     Employment
Tax Reporting Responsibility. To the extent applicable, the Parties hereby agree to follow the alternate procedure for U.S. employment
tax withholding as provided in Section 5 of Rev. Proc. 2004-53, I.R.B. 2004-35.

 

Section 17.07.     Data
Privacy. The Parties agree that any applicable data privacy Laws and any other obligations of the SpinCo Group and the Parent Group
to maintain the confidentiality of any Information relating to employees in accordance with applicable Law shall govern the disclosure
of Information relating to employees among the Parties under this Agreement. Parent and SpinCo shall use commercially reasonable efforts
to ensure that they each have in place appropriate technical and organizational security measures to protect the personal data of the
SpinCo Employees and Former SpinCo Employees. Additionally, each Party shall sign any documentation as may be required to comply with
applicable data privacy Laws.

 

Section 17.08.     Section 409A.
The Parent Group and the SpinCo Group shall cooperate in good faith and use commercially reasonable efforts to ensure that the transactions
contemplated by the Separation Agreement and the Ancillary Agreements, including this Agreement, will not result in adverse tax consequences
under Section 409A of the Code to any Parent Employee, Former Parent Employee, SpinCo Employee or Former SpinCo Employee (or any
of their respective beneficiaries) in respect of their respective benefits under any Benefit Plan.

 

Section 17.09.     Confidentiality.
Section 7.09 of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

Section 17.10.     Employment
Records.  As of the Local Transfer Date, the Parent Group shall provide to the SpinCo Group employment records for SpinCo Employees
and Former SpinCo Employees or copies thereof to the extent such records or copies are required to be provided to the SpinCo Group under
applicable Law or the terms of this Agreement or the applicable Local Agreement or as otherwise agreed between the Parties, and the SpinCo
Group shall accept and take delivery of such records or copies as of the Local Transfer Date. The SpinCo Group shall indemnify and hold
harmless the Parent Group from and against any and all losses incurred as a result of claims or threatened claims by any SpinCo Employee
or Former SpinCo Employee relating to the disclosure or use of the employment records for any non-employment-related purpose.

 

Section 17.11.     Additional
Provisions. Article XI of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

[SIGNATURE PAGE TO FOLLOW]

 

    33 

     

    

 

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

 

	 	International Business Machines Corporation

 

		By:	

	 	 	Name:

                                  Title:

 

	 	Kyndryl Holdings, Inc.

 

		By:	

	 	 	Name:

                                  Title:Exhibit 10.4

 

INTELLECTUAL PROPERTY AGREEMENT

 

by and between

 

International Business Machines Corporation

 

and

 

Kyndryl, Inc.

 

Dated as of [●], 2021

 

    

     

    

 

TABLE OF CONTENTS

 

Page

 

	ARTICLE I
	DEFINITIONS
	 	 	 
	Section 1.01.	Definitions	1
	 	 	 
	ARTICLE II
	INTELLECTUAL PROPERTY ASSIGNMENT
	 	 	 
	Section 2.01.	Intellectual Property Assignment Agreements	4
	Section 2.02.	Recordation	4
	Section 2.03.	Further Assurances	4
	 	 	 
	ARTICLE III
	LICENSES FROM PARENT TO SPINCO
	 	 	 
	Section 3.01.	License Grants	4
	 	 	 
	ARTICLE IV
	LICENSES FROM SPINCO TO PARENT
	 	 	 
	Section 4.01.	License Grants	5
	 	 	 
	ARTICLE V
	ADDITIONAL INTELLECTUAL PROPERTY RELATED MATTERS
	 	 	 
	Section 5.01.	Ownership	6
	Section 5.02.	Licenses	7
	Section 5.03.	No License	7
	Section 5.04.	Corrections to Schedules and Annexes	7
	Section 5.05.	No Obligation To Prosecute, Maintain or Enforce Intellectual Property	7
	Section 5.06.	Improvements	7
	Section 5.07.	No Technical Assistance	7
	Section 5.08.	Data Privacy and Security Terms	8
	 	 	 
	ARTICLE VI
	CONFIDENTIAL INFORMATION
	 	 	 
	Section 6.01.	Confidentiality	8
	 	 	 
	ARTICLE VII
	LIMITATION ON LIABILITY AND WARRANTY DISCLAIMER
	 	 	 
	Section 7.01.	Limitation on Liability	8
	Section 7.02.	Disclaimer of Representations and Warranties	8

 

    i

     

    

 

	ARTICLE VIII
	TRANSFERABILITY AND ASSIGNMENT
	 	 	 
	Section 8.01.	No Assignment or Transfer Without Consent	9
	Section 8.02.	Divested Businesses	9
	 	 	 
	ARTICLE IX
	TERMINATION OF AGREEMENT
	 	 	 
	Section 9.01.	Termination of Agreement by Both Parties	10
	Section 9.02.	Termination of Agreement Prior to the Distribution	10
	Section 9.03.	Effect of Termination of Agreement; Survival	10
	 	 	 
	ARTICLE X
	MISCELLANEOUS
	 	 	 
	Section 10.01.	Counterparts; Entire Agreement; Corporate Power	10
	Section 10.02.	Additional Provisions	11
	Section 10.03.	Notices	11
	Section 10.04.	Third Party Beneficiaries	12
	Section 10.05.	Import and Export Control	12
	Section 10.06.	Bankruptcy	12
	Section 10.07.	Severability	12
	Section 10.08.	Expenses	13
	Section 10.09.	Headings	13
	Section 10.10.	Survival of Covenants	13
	Section 10.11.	Waivers of Default	13
	Section 10.12.	Amendments	13
	Section 10.13.	Interpretation	14

 

	Exhibits and Annexes
	 
	EXHIBIT A	Software and Database License Terms
	EXHIBIT A – ANNEX A	Assigned Databases
	EXHIBIT A – ANNEX B	Assigned Documentation
	EXHIBIT A – ANNEX C	Assigned Software - Registered Copyrights
	EXHIBIT A – ANNEX D	Common Code
	EXHIBIT A – ANNEX E	Internal Tools
	EXHIBIT A – ANNEX F	Parent Commercial Programs
	EXHIBIT A – ANNEX G	SpinCo Commercial Programs
	EXHIBIT A – ANNEX H	SpinCo Research Assets
	EXHIBIT A – ANNEX I	SpinCo Software Programs
	EXHIBIT A – ANNEX J	Assigned Restricted Software
	EXHIBIT B 	Trademark Terms
	EXHIBIT C	Data Privacy and Security Terms

 

    ii

     

    

 

	Schedules 
	 
	SCHEDULE A	SpinCo Domain Names
	SCHEDULE B	SpinCo Trademarks
	SCHEDULE C	Parent Patents

 

    iii

     

    

 

INTELLECTUAL PROPERTY AGREEMENT,
dated as of [●], 2021 (this “Agreement”), by and between International Business Machines Corporation, a New York
corporation (“Parent”), and Kyndryl, Inc., a Delaware corporation (“SpinCo”).

 

RECITALS

 

WHEREAS, in connection with
the contemplated Spin-Off and concurrently with the execution of this Agreement, Parent and Kyndryl Holdings, Inc. are entering into
a Separation and Distribution Agreement (the “Separation Agreement”);

 

WHEREAS, pursuant to the Separation
Agreement and the other Ancillary Agreements, as of the Distribution Date, the Parent IP has been allocated to the Parent Group and the
SpinCo IP has been allocated to the SpinCo Group;

 

WHEREAS, the Parties wish to
record the transfers of any registrations or applications of Parent IP and SpinCo IP, as applicable, to the extent the ownership thereof
has transferred from a member of the Parent Group to a member of the SpinCo Group, or vice versa, pursuant to the Separation Agreement
or any other Ancillary Agreement;

 

WHEREAS, it is the intent of
the Parties that Parent grant to the SpinCo Group certain licenses to Intellectual Property as set forth herein, subject to the terms
and conditions set forth in this Agreement; and

 

WHEREAS, it is the intent of
the Parties that SpinCo grant to the Parent Group certain licenses to Intellectual Property as set forth herein, subject to the terms
and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual agreements, provisions and covenants contained in this Agreement, the Parties, intending to be legally bound, hereby agree
as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01.        Definitions.
As used in this Agreement, the following terms have the meanings set forth below and herein, and the terms defined in Exhibits, Schedules
and Annexes shall have the meanings set forth therein. Capitalized terms used but not defined in this Agreement shall have the meanings
ascribed to such terms in the Separation Agreement or any other Ancillary Agreement, as applicable.

 

“Bankruptcy Code”
has the meaning set forth in Section 10.06.

 

“Copyrights”
means all works of authorship, including common law rights and related registrations therefor, together with any moral rights related
thereto.

 

“Divested Entity”
has the meaning set forth in Section 8.02.

 

    

     

    

 

“Domain Names”
means a unique string of characters or numbers used to identify a particular internet protocol address or uniform resource locator.

 

“Intellectual Property
Assignment Agreements” has the meaning set forth in the US Contribution Agreement.

 

“Intellectual Property”
means any of the following, as they exist anywhere in the world, whether registered or unregistered: (i) Patents, (ii) Trademarks,
(iii) Domain Names, (iv) Copyrights, (v) Database Rights and (vi) Trade Secrets, including any intellectual property
or proprietary rights similar to any of the foregoing prongs (i)-(vi). For the avoidance of doubt, “Intellectual Property”
shall not include Contracts or other contractual rights (including license grants to or from Third Parties).

 

“Other Parent IP”
means all Copyrights (other than Copyrights in Software, Databases and Documentation) and all Trade Secrets, in each case, owned by the
Parent Group or the SpinCo Group as of immediately prior to the Distribution and used in the SpinCo Business, other than the Other SpinCo
IP.

 

“Other SpinCo IP”
means all Copyrights (other than Copyrights in Software, Databases and Documentation) and all Trade Secrets, in each case, owned by the
Parent Group or the SpinCo Group as of immediately prior to the Distribution and exclusively related to the SpinCo Business.

 

“Parent Domain Names”
means all Domain Names owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution, other than the SpinCo
Domain Names.

 

“Parent Field of Use”
means any and all businesses, operations, products and services.

 

“Parent IDs”
means all invention disclosures owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution, other than
the SpinCo IDs.

 

“Parent IP”
means all Intellectual Property owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution, other than
the SpinCo IP, including all (i) Parent Patents, (ii) the right to pursue and obtain Patent protection under the Parent IDs,
(iii) Parent Trademarks, (iv) Parent Domain Names, (v) Copyrights in Parent Software and Licensed Documentation, (vi) Database
Rights in Parent Databases and (vii) Other Parent IP.

 

“Parent Patents”
means all Patents owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution, other than the SpinCo Patents.
For the avoidance of doubt, “Parent Patents” includes the Patents identified on Schedule C and any other Patent that
claims, or is entitled to claim, priority from any of the foregoing Patents.

 

“Parent Trademarks”
means all Trademarks owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution, other than the SpinCo
Trademarks.

 

“Party” means
either party hereto, and “Parties” means both parties hereto.

 

    2

     

    

 

“Patent Assignment
Agreement” has the meaning set forth in the US Contribution Agreement.

 

“Patent Cross License
Agreement” means that certain Patent Cross License Agreement, dated as of the date hereof, by and between Parent and SpinCo.

 

“Patents”
means all patents and patent applications throughout the world, including reissues, continuations, divisionals and continuations-in-part,
utility models and design patents and registrations, including typeface design patents and registrations.

 

“SpinCo Domain Names”
means the Domain Names identified on Schedule A.

 

“SpinCo Field of Use”
means the conduct of the SpinCo Business as conducted immediately prior to the Distribution, together with natural extensions and evolutions
thereof.

 

“SpinCo IDs”
means the Delayed Transfer IDs (as such term is defined in the US Contribution Agreement).

 

“SpinCo IP”
means (i) the SpinCo Patents, (ii) the right to pursue and obtain Patent protection under the SpinCo IDs, (iii) the SpinCo
Trademarks, (iv) the SpinCo Domain Names, (v) Copyrights in the Assigned Software and Assigned Documentation, (vi) Database
Rights in the Assigned Databases and (vii) the Other SpinCo IP.

 

“SpinCo Patents”
means (i) the Closing Date Patents (as such term is defined in the US Contribution Agreement) and (ii) the Delayed Transfer
Patents (as such term is defined in the US Contribution Agreement).

 

“SpinCo Trademarks”
means the Trademarks identified on Schedule B.

 

“Third Party”
means any Person (including any Governmental Authority) who is not a member of the Parent Group or the SpinCo Group.

 

“Trade Secrets”
means rights in information and data that (i) derive independent economic value, actual or potential, from not being generally known
to, and not being readily ascertainable through proper means by, the public, and (ii) are the subject of efforts that are reasonable
under the circumstances to maintain its secrecy.

 

“Trademarks”
means a word, name, symbol, color, sound, or other device (or any combination thereof) used to indicate the source or origin of goods
or services and to distinguish the goods or services of one party from those of another, including any brand names, logos, certification
marks, collective marks, trade dress, tradenames and other indications of origin, all registrations in any jurisdiction of, and applications
in any jurisdiction to register, the foregoing, including any extension, modification or renewal of any such registration or application,
together with all goodwill associated therewith.

 

“US Contribution Agreement”
means that certain Agreement relating to the contribution of certain assets and assumption of certain liabilities of International Business
Machines Corporation, dated as of [●], 2021, by and between Parent and SpinCo.

 

    3

     

    

 

ARTICLE II

INTELLECTUAL PROPERTY ASSIGNMENT

 

Section 2.01.          Intellectual
Property Assignment Agreements. In order to carry out the intent of the Parties with respect to the recordation of the transfers of
any registrations or applications of SpinCo IP, to the extent the ownership thereof has transferred from a member of the Parent Group
to a member of the SpinCo Group, pursuant to the Separation Agreement, the US Contribution Agreement or any other Ancillary Agreement,
the Parties have executed intellectual property assignment agreements in the forms substantially similar to the Intellectual Property
Assignment Agreements.

 

Section 2.02.        Recordation.
The relevant assignee Party shall have the sole responsibility, at its sole cost and expense, to file any Intellectual Property Assignment
Agreements, including any short form intellectual property assignments attached thereto or such additional case specific assignments
as deemed appropriate or necessary under applicable Laws, with the appropriate Governmental Authorities as required to record the transfer
of any registrations or applications of SpinCo IP that is allocated under the Separation Agreement or any other Ancillary Agreement (including,
for clarity, the US Contribution Agreement), as applicable, and the relevant assignor Party hereby consents to such recordation.

 

Section 2.03.          Further
Assurances.

 

(a)          In
addition to the actions specifically provided for elsewhere in this Agreement, each of the Parties shall use reasonable best efforts,
prior to, on and after the Distribution Date, to take, or cause to be taken, all actions, and to do, or cause to be done, all things,
reasonably necessary, proper or advisable under applicable Laws and agreements to consummate, and make effective, the transactions contemplated
by this Agreement.

 

(b)          Without
limiting the foregoing, prior to, on and after the Distribution Date, each Party shall cooperate with the other Party, without any further
consideration, but at the expense of the requesting Party, (i) to execute and deliver, or use reasonable best efforts to execute
and deliver, or cause to be executed and delivered, all instruments, including any instruments of conveyance, assignment and transfer
as such Party may reasonably be requested to execute and deliver by the other Party, and (ii) to take, or cause to be taken, all
such other actions as such Party may reasonably be requested to take by the other Party from time to time, consistent with the terms of
this Agreement, in order to effectuate the provisions and purposes of this Agreement.

 

ARTICLE III

LICENSES FROM PARENT TO SPINCO

 

Section
3.01.          License
Grants.

 

(a)          Patents.
No licenses to Patents are granted under this Agreement (including, for the avoidance of doubt, under Exhibit A hereto).
The Parties acknowledge and agree that certain licenses with respect to the use by the SpinCo Group of certain Parent Patents shall be
set forth in the Patent Cross License Agreement.

 

    4

     

    

 

(b)           Software
and Databases. The Parties acknowledge and agree that certain licenses with respect to the use by the SpinCo Group of certain Parent
Software and Parent Databases are set forth in Exhibit A hereto.

 

(c)         Trademarks
and Domain Names. No licenses to Domain Names are granted under this Agreement. The Parties acknowledge and agree that certain terms
and conditions with respect to the SpinCo Group’s transitional use of certain Parent Trademarks are set forth in Exhibit B.

 

(d)           Other
Parent IP.

 

(i)            License
Grant. Subject to the other terms and conditions of this Agreement, Parent, on behalf of itself and the Parent Group, hereby grants
to SpinCo and the members of the SpinCo Group, under the Parent Group’s Copyrights and Trade Secrets, a perpetual, irrevocable,
sublicensable (subject to Section 3.01(d)(ii)), worldwide, non-exclusive, royalty-free, fully paid-up right and license to
use, copy, reproduce, modify, display, perform, distribute, translate into any language or form, combine, transmit, and prepare and distribute
Derivative Works, copies, reproductions, translations, combinations, and modifications of the Other Parent IP, solely as and to the extent
such Other Parent IP is used by the SpinCo Group in the SpinCo Field of Use.

 

(ii)           Sublicensing.
The license granted in Section 3.01(d)(i) to the SpinCo Group includes the right to grant sublicenses within the scope
of such license only to members of the SpinCo Group, and, without any further right to sublicense (except as necessary to provide products
and services to customers of the SpinCo Group within the SpinCo Field of Use, solely for the benefit of such customers), to their respective
(i) contractors, distributors, manufacturers, resellers, and other service providers, in each case solely within the SpinCo Field
of Use, and (ii) End Users and customers, in each case solely in connection with the use of products and services within the SpinCo
Field of Use or otherwise as necessary to provide products and services to customers of the SpinCo Business within the SpinCo Field of
Use, for the benefit of such customers; provided, however, that the SpinCo Group may only sublicense such rights pursuant
to terms and conditions as protective as those under which it licenses its own Intellectual Property of a similar nature and value, and
in any event under terms and conditions that provide for commercially reasonable protection for the confidential and proprietary elements
of the Other Parent IP. SpinCo shall cause all members of the SpinCo Group to comply with the terms set forth in this Section 3.01(d)(ii).
The SpinCo Group shall remain liable for any breach or default of the applicable terms and conditions of this Agreement by any of its
sublicensees.

 

ARTICLE IV

LICENSES FROM SPINCO TO PARENT

 

Section 4.01.          License
Grants.

 

(a)           Patents.
No licenses to Patents are granted under this Agreement (including, for the avoidance of doubt, under Exhibit A hereto).
The Parties acknowledge and agree that certain licenses with respect to the use by the Parent Group of certain SpinCo Patents shall be
set forth in the Patent Cross License Agreement.

 

    5

     

    

 

(b)           Software
and Databases. The Parties acknowledge and agree that certain licenses with respect to the use and retention of rights by the Parent
Group of certain Assigned Software, Assigned Databases and Assigned Documentation are set forth in Exhibit A hereto.

 

(c)           Trademarks
and Domain Names. The Parties acknowledge and agree that no licenses are granted to the Parent Group in this Agreement with respect
to any Trademarks or Domain Names.

 

(d)           Other
SpinCo IP.

 

(i)            License
Grant. Subject to the other terms and conditions of this Agreement, SpinCo, on behalf of itself and the SpinCo Group, hereby grants
to Parent and the other members of the Parent Group, under the SpinCo Group’s Copyrights and Trade Secrets, a perpetual, irrevocable,
sublicensable (subject to Section 4.01(d)(ii)), worldwide, non-exclusive, royalty-free, fully paid-up right and license to
use, copy, reproduce, modify, display, perform, distribute, translate into any language or form, combine, transmit, and prepare and distribute
Derivative Works, copies, reproductions, translations, combinations, and modifications of the Other SpinCo IP, solely as and to the extent
such Other SpinCo IP is used by the Parent Group in the Parent Field of Use.

 

(ii)            Sublicensing.
The license granted in Section 4.01(d)(i) to the Parent Group includes the right to grant sublicenses within the scope
of such license only to members of the Parent Group, and, without any further right to sublicense (except as necessary to provide products
and services to customers of the Parent Group within the Parent Field of Use, solely for the benefit of such customers), to their respective
(i) contractors, distributors, manufacturers, resellers, and other service providers, in each case solely within the Parent Field
of Use, and (ii) End Users and customers, in each case solely in connection with the use of products and services within the Parent
Field of Use or otherwise as necessary to provide products and services to customers of the Parent Business within the Parent Field of
Use, for the benefit of such customers; provided, however, that the Parent Group may only sublicense such rights pursuant
to terms and conditions as protective as those under which it licenses its own Intellectual Property of a similar nature and value, and
in any event under terms and conditions that provide for commercially reasonable protection for the confidential and proprietary elements
of the Other SpinCo IP. Parent shall cause all members of the Parent Group to comply with the terms set forth in this Section 4.01(d)(ii).
The Parent Group shall remain liable for any breach or default of the applicable terms and conditions of this Agreement by any of its
sublicensees.

 

ARTICLE
V
 ADDITIONAL INTELLECTUAL PROPERTY RELATED MATTERS

 

Section 5.01.          Ownership.
The Party receiving the license hereunder acknowledges and agrees that the Party (or the applicable member of its Group) granting the
license is the sole and exclusive owner of the Intellectual Property rights so licensed.

 

    6

     

    

 

Section 5.02.           Licenses.
Any license of Intellectual Property by either Party or any member of its Group to the other Party or any member of its Group pursuant
to ARTICLE III, ARTICLE IV or Exhibit A hereto, respectively, shall be subject to the applicable
licenses, covenants and restrictions set forth herein or therein.

 

Section 5.03.           No
License. No license, immunity or other right is granted pursuant to this Agreement by either Party to the other Party, either directly
or by implication, estoppel, or otherwise, under any Intellectual Property right, other than as expressly set forth in this Agreement,
and all other rights under any Intellectual Property licensed to a Party or the members of its Group hereunder are expressly reserved
by the Party granting the license.

 

Section 5.04.           Corrections
to Schedules and Annexes. Without limiting Section 2.01(b) of the Separation Agreement, the Parties acknowledge and agree
that, in the event that either Party notifies the other Party within twelve (12) months following the Distribution that there was an
inadvertent omission or inclusion of any item in any Schedule or Annex to this Agreement (including any Schedule or Annex to an Exhibit hereto),
the Parties agree to promptly work in good faith to modify such Schedule or Annex so that it accurately reflects the intent of the Parties
as of the Distribution. Any such modification to any Schedule or Annex made pursuant to this Section 5.04 shall be treated
by the Parties for all purposes as if it had been included on such Schedule or Annex as of the Distribution.

 

Section 5.05.           No
Obligation To Prosecute, Maintain or Enforce Intellectual Property. Except as expressly set forth in this Agreement, no Party or any
member of its Group shall have any obligation to seek, perfect or maintain any protection for any of its Intellectual Property. Without
limiting the generality of the foregoing, except as expressly set forth in this Agreement, no Party or any member of its Group shall have
any obligation to file any Patent application, to prosecute any Patent, or secure any Patent rights or to maintain any Patent in force.
Neither Party shall have any obligation hereunder to institute any action or suit against Third Parties for infringement of any of its
Intellectual Property or to defend any action or suit brought by a Third Party which challenges or concerns the validity of any of its
Intellectual Property. Neither Party shall have any right to institute any action or suit against Third Parties for infringement of any
of the other Party’s Intellectual Property.

 

Section 5.06.           Improvements.
Neither Party nor any member of its Group shall have any obligation under this Agreement to disclose or license to the other Party any
Derivative Works or other improvements made by or on behalf of such Party or any member of its Group (i) to any Intellectual Property
owned by such Party or its Group or (ii) to the extent permitted under this Agreement, to any Intellectual Property licensed to
such Party or its Group hereunder.

 

Section 5.07.           No
Technical Assistance. Neither Party or any member of its Group shall be required under this Agreement to furnish, disclose, deliver
or otherwise provide copies of or access to any Software, Databases, Documentation, Trade Secrets, or embodiments of any other Intellectual
Property. Neither Party or any member of its Group shall be required under this Agreement to provide (i) any support or maintenance
to the other Party or its customers, (ii) any technical assistance, consultation, training, or other support for installation, enhancement
or maintenance or (iii) any assistance with respect to adding, creating or modifying any encryption functionality.

 

    7

     

    

 

Section 5.08.          Data
Privacy and Security Terms. SpinCo (on behalf of itself and each other member of the SpinCo Group) acknowledges and agrees that any
use of or access to any information or data assigned or licensed to SpinCo or any member of its Group hereunder, or to which SpinCo or
any member of its Group has access to hereunder, shall comply with the requirements set forth in Exhibit C.

 

ARTICLE VI

CONFIDENTIAL INFORMATION

 

Section 6.01.          Confidentiality.
All confidential Information of a Party disclosed to the other Party under this Agreement shall be deemed Specified Confidential Information
(as that term is defined in the Separation Agreement), shall be subject to the provisions of Section 7.09 of the Separation Agreement,
and may be used by the receiving Party pursuant to this Agreement for the sole and express purpose of effecting the licenses granted herein.

 

ARTICLE
VII
 LIMITATION ON LIABILITY AND WARRANTY DISCLAIMER

 

Section 7.01.          Limitation
on Liability. Without limiting the terms set forth in Section 6.10 of the Separation Agreement, none of Parent, SpinCo or any
other member of either Group shall in any event have any Liability to the other or to any other member of the other’s Group under
this Agreement for any indirect, special, punitive or consequential damages, whether or not caused by or resulting from negligence or
breach of obligations hereunder and whether or not informed of the possibility of the existence of such damages.

 

Section 7.02.          Disclaimer
of Representations and Warranties. Each of Parent (on behalf of itself and each other member of the Parent Group) and SpinCo (on behalf
of itself and each other member of the SpinCo Group) understands and agrees that, except as expressly set forth in Section 10.01(c),
no Party is representing or warranting in any way, including any implied warranties of merchantability, fitness for a particular purpose,
title, registerability, allowability, enforceability or non-infringement, (i) as to any Intellectual Property licensed or assigned
hereunder, (ii) as to the sufficiency of the Intellectual Property licensed or assigned hereunder for the conduct and operations
of the SpinCo Business or the Parent Business, as applicable, (iii) as to the value or freedom from any Security Interests of, or
any other matter concerning, any Intellectual Property licensed or assigned hereunder, (iv) as to the absence of any defenses or
rights of setoff or freedom from counterclaim with respect to any claim or other Intellectual Property of any such Party, (v) as
to the legal sufficiency of any assignment, document or instrument delivered hereunder to convey title to any Intellectual Property or
thing of value upon the execution, delivery and filing hereof or thereof or (vi) as to whether the other Party will or will not require
a license under other Intellectual Property to make, use, import, offer for sale, sell or otherwise transfer products or to otherwise
operate under the licenses or rights granted herein. All Intellectual Property is being licensed or assigned on an “as is,”
 “where is” basis and the respective licensees shall bear the economic and legal risks related to the use of the Parent IP
in the SpinCo Business or the SpinCo IP in the Parent Business, as applicable.

 

    8

     

    

 

ARTICLE VIII

TRANSFERABILITY AND ASSIGNMENT

 

Section 8.01.          No
Assignment or Transfer Without Consent. Except as expressly set forth in this Agreement, neither this Agreement nor any of the rights,
interests or obligations under this Agreement, including the licenses granted pursuant to this Agreement, shall be assigned, in whole
or in part, by operation of Law or otherwise by either Party without the prior written consent of the other Party. Any purported assignment
without such consent shall be void. Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of,
and be enforceable by, the Parties and their respective successors and assigns. Notwithstanding the foregoing, if any Party to this Agreement
(or any of its successors or permitted assigns) (a) shall enter into a consolidation or merger transaction in which such Party is
not the surviving entity and the surviving entity acquires or assumes all or substantially all of such Party’s Assets, (b) shall
transfer all or substantially all of such Party’s Assets to any Person or (c) shall assign this Agreement to such Party’s
Affiliates, then, in each such case, the assigning Party (or its successors or permitted assigns, as applicable) shall ensure that the
assignee or successor-in-interest expressly assumes in writing all of the obligations of the assigning Party under this Agreement, and
the assigning Party shall not be required to seek consent, but shall provide written notice and evidence of such assignment, assumption
or succession to the non-assigning Party. No assignment permitted by this Section 8.01 shall release the assigning Party from
liability for the full performance of its obligations under this Agreement. For the avoidance of doubt, in no event will the licenses
granted in this Agreement extend to products, services or other activities of the assignee existing on or before the date of the transaction
described in clauses (a) or (b) of the preceding sentence, except to the extent that they were licensed under the terms of this
Agreement prior to such transaction.

 

Section 8.02.          Divested
Businesses. In the event a Party divests a line of business or line of products or services by (a) spinning off a member of its
Group, including by its sale or other disposition to a Third Party or by its public offering, (b) reducing ownership or control in
a member of its Group so that it no longer qualifies as a member of its Group under this Agreement, (c) selling or otherwise transferring
such line of business, products or services to a Third Party or (d) forming a joint venture with a Third Party with respect to such
line of business, products or services (each such divested entity or line of business, products or services, a “Divested Entity”),
the Divested Entity shall retain those licenses granted to it under this Agreement; provided, however, that the license
shall be limited to the business, products or services (as applicable) of the Divested Entity as of the date of divestment and such natural
extensions and evolutions thereof within the SpinCo Field of Use or the Parent Field of Use, as applicable. The retention of any license
grants are subject to the Divested Entity’s and, in the event it is acquired by a Third Party, such Third Party’s execution
and delivery to the non-transferring Party, within ninety (90) days of the effective date of such divestment, of a duly authorized, written
undertaking, agreeing to be bound by the applicable terms of this Agreement. For the avoidance of doubt, (i) in no event will the
licenses retained by a Divested Entity extend to products, services or other activities of a Third Party acquirer existing on or before
the date of the divestment, except to the extent that they were licensed under the terms of this Agreement prior to such divestment and
(ii) in the event that a Divested Entity owns any Intellectual Property licensed to the other Party under this Agreement, such Intellectual
Property may be transferred or assigned with such Divested Entity subject to the terms and conditions of this Agreement.

 

    9

     

    

 

ARTICLE
IX
 TERMINATION OF AGREEMENT

 

Section 9.01.         Termination
of Agreement by Both Parties. Subject to Section 9.02, this Agreement may not be terminated except by an agreement in
writing signed by a duly authorized officer of each of the Parties.

 

Section 9.02.         Termination
of Agreement Prior to the Distribution. This Agreement may be terminated by Parent at any time, in its sole discretion, prior to the
Distribution; provided, however, that this Agreement (and all licenses herein) shall automatically terminate upon the termination
of the Separation Agreement in accordance with its terms.

 

Section 9.03.         Effect
of Termination of Agreement; Survival. In the event of any termination of this Agreement prior to the Distribution, neither Party
(nor any member of their Group or any of their respective directors or officers) shall have any Liability or further obligation to the
other Party or any member of its Group under this Agreement. Except with respect to termination of the Agreement under Section 9.02,
notwithstanding anything in this Agreement to the contrary, ARTICLE I, ARTICLE III, ARTICLE IV, ARTICLE VI,
ARTICLE VII, this Section 9.03, ARTICLE X and Exhibit A shall survive any termination
of this Agreement.

 

ARTICLE X

MISCELLANEOUS

 

Section
10.01.        Counterparts; Entire Agreement; Corporate Power.

 

(a)           This
Agreement may be executed in one or more counterparts, all of which counterparts shall be considered one and the same agreement, and shall
become effective when one or more counterparts have been signed by each Party and delivered to the other Party. This Agreement may be
executed by facsimile or PDF signature and scanned and exchanged by electronic mail, and such facsimile or PDF signature or scanned and
exchanged copies shall constitute an original for all purposes.

 

(b)           The
Exhibits, Schedules and Annexes to this Agreement, whether attached hereto or referred to in this Agreement, are incorporated herein and
made a part hereof. This Agreement and the Exhibits, Schedules and Annexes hereto and thereto contain the entire agreement between the
Parties with respect to the subject matter hereof and supersede all previous agreements, negotiations, discussions, writings, understandings,
commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties with
respect to the subject matter hereof other than those set forth or referred to herein or therein. In the event of conflict or inconsistency
between the provisions of this Agreement or the Separation Agreement, the provisions of this Agreement shall prevail and remain in full
force and effect.

 

    10

     

    

 

(c)           Parent
represents on behalf of itself and each other member of the Parent Group, and SpinCo represents on behalf of itself and each other member
of the SpinCo Group, as follows:

 

(i)            each
such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to
execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and

 

(ii)            this
Agreement has been duly executed and delivered by it and constitutes, or will constitute, a valid and binding agreement of it enforceable
in accordance with the terms thereof.

 

Section 10.02.        Additional
Provisions. Sections 11.02 – 11.07 of the Separation Agreement are hereby incorporated into this Agreement mutatis mutandis.

 

Section 10.03.        Notices.
All notices or other communications under this Agreement shall be in writing and shall be deemed to be duly given (a) when delivered
in person, (b) on the date received, if sent by a nationally recognized delivery or courier service, (c) upon written confirmation
of receipt after transmittal by electronic mail or (d) upon the earlier of confirmed receipt or the fifth (5th) business
day following the date of mailing if sent by registered or certified mail, return receipt requested, postage prepaid and addressed as
follows:

 

If to Parent, to:

 

International Business Machines Corporation

One New Orchard Road

Armonk, NY 10504

Attn:     General Manager, Corporate
Development and Strategy

 

with a copy to:

 

Paul,
Weiss, Rifkind, Wharton & Garrison LLP
 1285 Avenue of the Americas
 New York, NY 10019-6064

	 	Attn:	Scott A. Barshay
	 	 	Steven J. Williams
	 	 	Laura C. Turano
	 	 	Jonathan Ashtor
	 	Email:	sbarshay@paulweiss.com
	 	 	swilliams@paulweiss.com
	 	 	lturano@paulweiss.com
	 	 	jashtor@paulweiss.com
	 	Facsimile: 212-492-0040

 

    11

     

    

 

If to SpinCo, to:

 

Kyndryl, Inc.

One Vanderbilt Avenue, 15th Floor

New
York, NY 10017

Attn:      Steve Kurlowecz, Chief IP Counsel

 

Either Party may, by notice to the other Party,
change the address and identity of the Person to which such notices and copies of such notices are to be given. Each Party agrees that
nothing in this Agreement shall affect the other Party’s right to serve process in any other manner permitted by Law (including
pursuant to the rules for foreign service of process authorized by the Hague Convention).

 

Section 10.04.       Third
Party Beneficiaries. Except as otherwise expressly set forth herein or as otherwise may be provided in the Separation Agreement with
respect to the rights of any Parent Indemnitee or SpinCo Indemnitee, in his, her or its respective capacities as such, (a) the provisions
of this Agreement are solely for the benefit of the Parties hereto and are not intended to confer upon any Person except the Parties hereto
any rights or remedies hereunder and (b) there are no Third Party beneficiaries of this Agreement and this Agreement shall not provide
any third person with any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without
reference to this Agreement.

 

Section 10.05.       Import
and Export Control. Each Party will comply with all applicable export and import laws and associated embargo and economic sanction
regulations, including those of the United States, that prohibit or restrict the export, re-export, or transfer of products, technology,
services or data, directly or indirectly, to certain countries, or for certain end uses or end users.

 

Section 10.06.       Bankruptcy.
The Parties acknowledge and agree that all rights and licenses granted by the other under or pursuant to this Agreement are, and shall
otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code, as amended (the “Bankruptcy
Code”), licenses of rights to “intellectual property” as defined under Section 101 of the Bankruptcy Code.
The Parties agree that, notwithstanding anything else in this Agreement, Parent and the members of the Parent Group and SpinCo and the
members of the SpinCo Group, as licensees of such Intellectual Property under this Agreement, shall retain and may fully exercise all
of its rights and elections under the Bankruptcy Code (including Parent’s and the Parent Group members’ and SpinCo’s
and the SpinCo Group members’ right to the continued enjoyment of the rights and licenses respectively granted under this Agreement).

 

Section 10.07.       Severability.
If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court or arbitrator of
competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to
Persons or circumstances, or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in
full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon any such determination, any
such provision, to the extent determined to be invalid, void or unenforceable, shall be deemed replaced by a provision that such court
determines is valid and enforceable and that comes closest to expressing the intention of the invalid, void or unenforceable provision.

 

    12

     

    

 

Section 10.08.         Expenses.
Except as set forth on Schedule XXII to the Separation Agreement, as otherwise expressly provided in this Agreement or the Separation
Agreement, (i) all Third Party fees, costs and expenses incurred by either the Parent Group or the SpinCo Group in connection with
effecting the Spin-Off prior to or on the Distribution Date (but excluding, for the avoidance of doubt, any financing fees or interest
payable in respect of any indebtedness incurred by SpinCo in connection with the Spin-Off), will be borne and paid by Parent and (ii) all
Third Party fees, costs and expenses incurred by either the Parent Group or the SpinCo Group in connection with effecting the Spin-Off
following the Distribution Date, will be borne and paid by the Party incurring such fee, cost or expense. For the avoidance of doubt,
this Section 10.08 shall not affect each Party’s responsibility to indemnify Parent Liabilities or SpinCo Liabilities,
as applicable, arising from the transactions contemplated by the Distribution.

 

Section 10.09.         Headings.
The article, section and paragraph headings contained in this Agreement, including in the table of contents of this Agreement, are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 10.10.         Survival
of Covenants. Except as expressly set forth in this Agreement, the covenants in this Agreement and the Liabilities for the breach
of any obligations in this Agreement shall survive the Spin-Off and shall remain in full force and effect.

 

Section 10.11.         Waivers
of Default. No failure or delay of any Party (or the applicable member of its Group) in exercising any right or remedy under this
Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise thereof or the
exercise of any other right or power. Waiver by any Party of any default by the other Party of any provision of this Agreement shall not
be deemed a waiver by the waiving Party of any subsequent or other default.

 

Section 10.12.         Amendments.
No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by any Party, unless such waiver, amendment,
supplement or modification is in writing and signed by the authorized representative of each Party.

 

    13

     

    

 

Section 10.13.        Interpretation.
Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender
as the context requires. The terms “hereof,” “herein,” “herewith” and words of similar import, unless
otherwise stated, shall be construed to refer to this Agreement as a whole (including all of the Exhibits, Schedules and Annexes hereto)
and not to any particular provision of this Agreement. Article, Section, Schedule or Annex references are to the articles, sections, schedules
and annexes of or to this Agreement or the applicable Exhibit, unless otherwise specified. Any capitalized terms used in any Exhibit,
Schedule or Annex to this Agreement but not otherwise defined therein shall have the meaning as defined in this Agreement. Any definition
of or reference to any agreement, instrument or other document herein (including any reference herein to this Agreement) shall, unless
otherwise stated, be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth therein, including in Section 10.12
above). The word “including” and words of similar import when used in this Agreement shall mean “including, without
limitation,” unless the context otherwise requires or unless otherwise specified. The word “or” shall not be exclusive.
The word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing extends,
and such phrase shall not mean simply “if.” All references to “$” or dollar amounts are to the lawful currency
of the United States of America. In the event that 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 either Party
by virtue of the authorship of any provisions hereof.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the Parties have caused this
Intellectual Property Agreement to be executed by their duly authorized representatives.

 

	 	INTERNATIONAL BUSINESS MACHINES CORPORATION
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	KYNDRYL, INC.
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Intellectual Property Agreement]

 

    

     

    

 

 

EXHIBIT A

 

SOFTWARE AND DATABASE LICENSE TERMS

 

ARTICLE I

DEFINITIONS

 

Section 1.01.        Definitions.
The following terms shall have the following meanings and, unless stated otherwise, all references to “Section,” “Article”
or “Annex” herein shall be to such Section, Article or Annex of this Exhibit A.

 

“Assigned Databases”
means (i) the Databases set forth in Annex A and (ii) any other Databases owned by the Parent Group or the SpinCo Group
as of immediately prior to the Distribution that were solely developed in the conduct of, or acquired solely for use in, the SpinCo Business
at any time prior to the Distribution Date. For the avoidance of doubt, “Assigned Databases” shall not include any Third
Party Commercial Databases.

 

“Assigned Documentation”
means the Documentation (or portions thereof) owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution
and exclusively used in conjunction with the Assigned Software or the Assigned Databases, including the folders set forth in Annex
B.

 

“Assigned Restricted
Research Assets” has the meaning set forth in Annex J.

 

“Assigned Restricted
Software” has the meaning set forth in Annex J.

 

“Assigned Software” means (i) the
SpinCo Software Programs, (ii) the SpinCo Research Assets and (iii) any other Software owned by the Parent Group or the SpinCo
Group as of immediately prior to the Distribution that was solely developed in the conduct of, or acquired solely for use in, the SpinCo
Business at any time prior to the Distribution Date, in each case, excluding Common Code, Parent JDK, Parent JRE, Parent Commercial Programs,
or Internal Tools. A list containing registered Copyrights relating to the Assigned Software is set forth in Annex C. For the
avoidance of doubt, “Assigned Software” shall not include any Third Party Commercial Software or OSS.

 

“Assigned Unrestricted Research Assets”
means the SpinCo Research Assets that are identified in Annex H as “Unrestricted.”

 

“Code
Fragment” means a portion or portions of the Assigned Software that have been incorporated by the Parent Group or the
SpinCo Group, prior to the Distribution Date, into Software other than the Assigned Software and (i) do not constitute the primary
functionality of the Assigned Software and (ii) cannot, either separately or in aggregate, be used to reconstruct the Assigned Software.

 

“Commercial License
Agreement” means Parent’s standard license or support agreement for the Parent Commercial Programs.

 

    [Exhibit A – Software and Database License Terms]-1

     

    

 

“Common Code”
means any Software library, package or module that is used by or in conjunction with both (i) any Parent Software (other than such
library, package or module itself) and (ii) any Assigned Software, including the items set forth in Annex D. For the avoidance
of doubt, “Common Code” shall not include any Third Party Commercial Software, or OSS.

 

“Database”
means all databases, datasets, and collections and compilations of data, in any form or medium (including knowledge databases, customer
lists and customer databases).

 

“Database Rights”
means all Copyrights in Databases and any other statutory and common law rights in Databases under the laws of any jurisdiction, whether
registered or unregistered, and any applications for registration therefor.

 

“Derivative
Work” has the meaning ascribed to such term under the United States Copyright statute, 17 USC sec. 101.

 

“Documentation”
means the tangible and electronic documentary materials, including marketing materials, used in conjunction with any Software or Database.

 

“End User”
means an entity that uses a product or service for its own productive use or solely for its internal purposes and which does not remarket,
sell, license, or lease the product or service to other Persons.

 

“Internal
Tools” means any Software program that is (i) used to build, test, or develop both (x) any Parent Software
(other such program itself) and (y) any Assigned Software or (ii) used internally in the conduct of the businesses of both
the Parent Group and the SpinCo Group, in each case (i) and (ii), including the items set forth in Annex E. For the avoidance
of doubt, “Internal Tools” shall not include any Third Party Commercial Software, or OSS.

 

“Licensed
Databases” means the Parent Databases used in the SpinCo Business. For the avoidance of doubt, “Licensed Databases”
shall not include any Third Party Commercial Databases.

 

“Licensed Documentation”
means any Documentation owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution that is used in the
SpinCo Business, other than the Assigned Documentation.

 

“Object Code” means computer
programming code, substantially or entirely in binary form, which is intended to be directly executable by a computer after suitable
processing but without the intervening steps of compilation or assembly, including byte code. For computer software written in non-compiled
or scripting languages, such as JavaScript, the Object Code includes those files in the form in which they are distributed to End Users
under a Commercial License Agreement.

 

“Open Source Software”
or “OSS” means any Software of which: (i) the Source Code is available to the public for inspection and use by
others and (ii) the terms and conditions of the applicable license agreement permit recipients of the program freely (and without
the subsequent payment of any fee or royalty) to copy, modify and distribute the program’s Source Code.

 

    [Exhibit A – Software and Database License Terms]-2

     

    

 

“Other Licensed Software”
means the non-commercial Parent Software used in the SpinCo Business, other than any Common Code, Parent JDK, Parent JRE, Parent Commercial
Programs, or Internal Tools. For the avoidance of doubt, “Other Licensed Software” shall not include any Third Party Commercial
Software or OSS.

 

“Parent Commercial
Programs” means any commercially available Software developed, marketed, offered or supported by the Parent Group at any time
prior to the Distribution, including the items set forth in Annex F.

 

“Parent Databases”
means all Databases owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution Date, other than the Assigned
Databases.

 

“Parent JDK”
means Parent’s versions of the Java Development Kit derived from code originally provided by Sun Microsystems or Oracle America, Inc.,
which have been, as of the Distribution Date, used in the development of the Assigned Software.

 

“Parent JRE”
means Parent’s versions of the Java Runtime Environment derived from code originally provided by Sun Microsystems or Oracle America, Inc.,
which have been, as of the Distribution Date, used in conjunction with the Assigned Software.

 

“Parent Licensed Materials” means
the Common Code, Other Licensed Software, Internal Tools, Licensed Databases and Licensed Documentation.

 

“Parent Software”
means all Software owned by the Parent Group or the SpinCo Group as of immediately prior to the Distribution Date, other than the Assigned
Software.

 

“PCP Requirements”
has the meaning set forth in Section 4.05(a).

 

“Software”
means any set of instructions that controls the operation of a computer or similar electronic device, including firmware embedded in
hardware devices, code (including Source Code and Object Code), programs, operating systems, subroutines, and interfaces, including APIs,
protocols and algorithm. For the avoidance of doubt, “Software” shall not include Databases or Documentation.

 

“Source Code” means computer
programming code other than Object Code and includes code that may be displayed in a form readable and understandable by a programmer
of ordinary skill, including any related code level system documentation, comments and procedural code, such as job control language.

 

“SpinCo Commercial Programs”
means the commercially available SpinCo Software Programs identified in Annex G.

 

“SpinCo Licensed Materials” means
the Assigned Software, including any Code Fragments therein, Assigned Documentation and Assigned Databases.

 

“SpinCo Research Assets” means
the Software identified in Annex H.

 

“SpinCo Software Programs”
means the Software identified in Annex I.

 

    [Exhibit A – Software and Database License Terms]-3

     

    

 

“Third Party Commercial Database”
means any Database licensed to the Parent Group or the SpinCo Group by a Third Party as of immediately prior to the Distribution and
used in the SpinCo Business.

 

“Third Party Commercial Software”
means the Software to which any Third Party owns Intellectual Property rights, excluding OSS. Third Party Commercial Software also includes
documents or logos (collectively, when used in regards to Third Party Commercial Software, “materials”) to which one or more
Third Parties own the Intellectual Property rights.

 

ARTICLE II

LICENSES FROM PARENT TO SPINCO

 

Section 2.01.        Licenses
to SpinCo Group. Subject to the other terms and conditions of this Agreement, Parent, on behalf of itself and the Parent Group, hereby
grants to SpinCo and the members of the SpinCo Group, in each case solely within the SpinCo Field of Use:

 

(a)         Common
Code and Other Licensed Software. Under the Parent Group’s Copyrights, a perpetual, irrevocable, sublicensable (subject to
Section 2.02), worldwide, non-exclusive, royalty-free, fully paid-up right and license to use, copy, reproduce, modify, display,
perform, distribute, translate into any language or form, combine with other Software or hardware, transmit, and prepare and distribute
Derivative Works of the Common Code and the Other Licensed Software, in each case, solely as and to the extent such Common Code or such
Other Licensed Software is used by the SpinCo Group in the SpinCo Field of Use; provided, however, that with respect to
Common Code or Other Licensed Software that, as of immediately prior to the Distribution, was in the possession of the SpinCo Group in
Object Code form only, (i) the foregoing license shall not include any rights to modify, or prepare or distribute Derivative Works
of, any Source Code of such Common Code or such Other Licensed Software and (ii) such Common Code and such Other Licensed Software
shall not be distributed independently of the Assigned Software by or in conjunction with which it is used;

 

(b)         Internal
Tools. Under the Parent Group’s Copyrights, a perpetual, irrevocable, sublicensable (subject to Section 2.02),
worldwide, non-exclusive, royalty-free, fully paid-up right and license to:

 

(i)            with
respect to the Internal Tools designated for “Hard Segmentation” in Annex E, use, copy, reproduce, modify, display,
perform, distribute, translate into any language or form, combine with other Software or hardware, transmit, and prepare and distribute
Derivative Works of such Internal Tools in each case, solely as and to the extent such Internal Tools are used by the SpinCo Group in
the SpinCo Field of Use, and

 

(ii)           with
respect to all other Internal Tools, use, internally, reproduce, perform and display such Internal Tools in Object Code form only, (x) for
the purpose of further building, testing and developing the Assigned Software or any other Software developed by the SpinCo Group after
the Distribution within the SpinCo Field of Use or (y) for internal use by the SpinCo Group in the SpinCo Field of Use, in each
case as applicable for such Internal Tool and without the right to prepare or distribute Derivative Works of such Internal Tool.

 

    [Exhibit A – Software and Database License Terms]-4

     

    

 

(c)         Licensed
Databases. Under the Parent Group’s Database Rights, a perpetual, irrevocable, sublicensable (subject to Section 2.02),
worldwide, non-exclusive, royalty-free, fully paid-up right and license to (i) use, copy, reproduce, modify, display, perform, distribute,
translate into any language or form, combine with Software or hardware, transmit, and prepare and distribute Derivative Works of the
Licensed Databases, solely as and to the extent such Licensed Databases are used by the SpinCo Group in the SpinCo Field of Use and (ii) extract
data from the Licensed Databases and to re-utilize such data, solely as and to the extent such data is used by the SpinCo Group in the
SpinCo Field of Use; and

 

(d)         Licensed
Documentation. Under the Parent Group’s Copyrights, a perpetual, irrevocable, sublicensable (subject to Section 2.02),
worldwide, non-exclusive, royalty-free, fully paid-up right and license to use, reproduce, distribute, perform, display, and prepare
and distribute Derivative Works of the Licensed Documentation, solely as and to the extent such Licensed Documentation is used by the
SpinCo Group in the SpinCo Field of Use; provided, however, that the Licensed Documentation associated with the Assigned
Software or Assigned Databases, or any Derivative Works thereof shall not be used or distributed independently of products, services
or releases that incorporate the Assigned Software, Assigned Databases or such Derivative Works thereof.

 

Section 2.02.          Sublicensing.
The licenses granted in Section 2.01 to the SpinCo Group include the right to grant sublicenses within the scope of such
licenses only to members of the SpinCo Group, and, without any further right to sublicense (except as necessary to provide products and
services to customers of the SpinCo Group within the SpinCo Field of Use, solely for the benefit of such customers), to their respective
(i) contractors, distributors, manufacturers, resellers, and other service providers, in each case solely within the SpinCo Field
of Use and (ii) End Users and customers, in each case solely in connection with the use of products and services within the SpinCo
Field of Use or otherwise as necessary to provide products and services to customers of the SpinCo Business within the SpinCo Field of
Use, for the benefit of such customers; provided, however, that the SpinCo Group may only sublicense such rights pursuant
to terms and conditions as protective as those under which it licenses its own Software or Databases of a similar nature and value, and
in any event terms and conditions that provide for commercially reasonable protection for the Source Code, structure and other confidential
and proprietary elements of the Parent Licensed Materials. SpinCo shall cause all members of the SpinCo Group to comply with the terms
set forth in this Section 2.02. The SpinCo Group shall remain liable for any breach or default of the applicable terms and
conditions of this Exhibit A by any of its sublicensees.

 

Section 2.03.          License
Restrictions. The licenses granted in Section 2.01 are subject to the following additional restrictions:

 

(a)            the
SpinCo Group shall make no representations or warranties about or on behalf of the Parent Group;

 

(b)            distribution
and providing End Users access to SpinCo Group products or services shall comply with all applicable Laws, including those related to
privacy, export and import, including those of the United States and those that prohibit or restrict distributions for certain end uses
or End Users;

 

    [Exhibit A – Software and Database License Terms]-5

     

    

 

(c)           the
SpinCo Group shall not perform any actions with regard to the Parent Licensed Materials that could require the Source Code of the Parent
Licensed Materials to be licensed under any OSS license or be disclosed to any Third Party;

 

(d)            for
any component of the Parent Licensed Materials that is provided or licensed in Object Code, the SpinCo Group shall not, and shall not
allow any Third Party to, reverse assemble, reverse compile, decompile, translate, or otherwise attempt to discover the Source Code of
such component, except as permitted by Law, without the possibility of contractual waiver and shall include such requirements in all
downstream licenses;

 

(e)          notwithstanding
any other provision of this Agreement to the contrary, the SpinCo Group shall maintain the Parent copyright notice and all other Parent
Group proprietary notices (if any) as provided in the Parent Licensed Materials;

 

(f)            all
distributions of SpinCo Group products or services incorporating Common Code, Other Licensed Software, Licensed Databases or Licensed
Documentation, or access thereto by End Users, as the case may be, shall be under a written license agreement that will include the provisions
set out below or their legal equivalent. For SpinCo’s reference, the phrase “the third party” in subsections (i) –
(ix) below, refers to Parent (or another member of the Parent Group, as applicable), although the SpinCo Group shall use the phrase
 “the third party” and not identify any member of the Parent Group:

 

(i)            the
product or service contains materials licensed from a third party, and SpinCo or customer has assumed responsibility for these materials
and their use in the product or service;

 

(ii)           the
third party Software, Database, or Documentation in the product or service is licensed, and not sold, and neither the third party nor
SpinCo passes any title to such Software, Database, or Documentation;

 

(iii)          the
End User is prohibited from copying any part or portion of the third party Software, Database, or Documentation or from preparing any
Derivative Work thereof, or otherwise modifying the third party Software, Database, or Documentation;

 

(iv)         the
End User may not assign, sublicense, distribute, lease, rent, or otherwise transfer the third party Software, Database or Documentation;

 

(v)          the
End User may neither distribute the product or service nor offer the product or service as a cloud service or software-as-a-service;

 

(vi)         the
End User is prohibited from reverse assembling, reverse compiling, translating or otherwise trying to discover the Source Code form of
any Software provided in Object Code form, except as permitted by the national or regional law of the places where the End User does
business (without the opportunity for contractual waiver), and then only with respect to the particular copy of Object Code incorporated
into that particular product or service;

 

    [Exhibit A – Software and Database License Terms]-6

     

    

 

(vii)        warranties,
including any implied warranties, are provided solely by SpinCo and not by the third party;

 

(viii)       in
such written license agreements, SpinCo will include a provision limiting liability and terms excluding all consequential damages effective
to limit the Parent Group’s liability, and an audit provision sufficient to enable SpinCo to fulfill its obligations under this
Agreement; and

 

(ix)          in
such written license agreements, SpinCo will also include the following statement, or other legally sufficient and wholly comparable
terms: “The limitation of liabilities described in this agreement also applies to the third party supplier. Such third party supplier
is an intended beneficiary of this agreement, and any rights of indemnification also apply to any third party supplier described in this
agreement. A list of such third party beneficiaries will be provided on written request”;

 

(g)            Any
action that breaches Section 2.01, Section 2.02 or this Section 2.03 is beyond the scope of the licenses
granted in this Agreement. Any distribution of Common Code, Other Licensed Software, Licensed Databases or Licensed Documentation permitted
under Section 2.01 may be through multiple tiers of distribution in the SpinCo Group’s channel; and

 

(h)            SpinCo
shall cause all members of the SpinCo Group to comply with each of the restrictions set forth in this Section 2.03.

 

Section 2.04.          Suspension
of Licenses to Parent Licensed Materials. The licenses to the Parent Licensed Materials granted hereunder are irrevocable, even in
the event of a material breach; provided, however, that any such license may be suspended by the Parent Group only in the
event of a material breach thereof, including unauthorized use or distribution, by any SpinCo Group member that remains uncured for thirty
(30) days following SpinCo’s receipt of written notice from a member of the Parent Group specifying such breach. Upon suspension
of the SpinCo Group’s licenses, the SpinCo Group shall immediately cease all use of the specific Parent Licensed Materials that
are the subject of such material breach until such material breach or unauthorized use or distribution by the SpinCo Group is cured and
SpinCo certifies to Parent in writing as to such cure.

 

Section 2.05.         Reservation
of Rights. Parent Licensed Materials are licensed and not sold, and nothing in this Agreement grants the SpinCo Group any ownership
right, title, or interest in or to the Parent Licensed Materials. The SpinCo Group shall use the Parent Licensed Materials only for the
purposes expressly permitted by this Agreement.

 

    [Exhibit A – Software and Database License Terms]-7

     

    

 

ARTICLE III

LICENSES FROM SPINCO TO PARENT

 

Section 3.01.         Licenses
to Parent Group. Notwithstanding the provisions of Section 2.01, SpinCo, on behalf of itself and the SpinCo Group, hereby
grants to Parent and the other members of the Parent Group, in each case solely within the Parent Field of Use:

 

(a)            Assigned
Software. Under the SpinCo Group’s Copyrights, a perpetual, irrevocable, sublicensable (subject to Section 3.04),
worldwide, non-exclusive, royalty-free, fully paid-up right and license to use, copy, reproduce, modify, display, perform, distribute,
translate into any language or form, combine with other Software or hardware, transmit, and prepare and distribute Derivative Works of
the Assigned Software (other than Assigned Unrestricted Research Assets) solely as and to the extent such Assigned Software is used by
the Parent Group in the Parent Field of Use; provided, however, that with respect to Assigned Software (other than Assigned
Unrestricted Research Assets) that, as of immediately prior to the Distribution, was in the possession of the Parent Group in Object
Code form only, the foregoing license shall not include any rights to modify, or prepare or distribute Derivative Works of, any Source
Code of such Assigned Software;

 

(b)          Assigned
Databases. Under the SpinCo Group’s Database Rights, a perpetual, irrevocable, sublicensable (subject to Section 3.04),
worldwide, non-exclusive, royalty-free, fully paid-up right and license to (i) use, copy, reproduce, modify, display, perform, distribute,
translate into any language or form, combine with Software or hardware, transmit, and prepare and distribute Derivative Works of the
Assigned Databases, solely as and to the extent such Assigned Databases are used by the Parent Group in the Parent Field of Use and (ii) extract
data from the Assigned Databases and to re-utilize such data, solely as and to the extent such data is used by the Parent Group in the
Parent Field of Use; and

 

(c)          Assigned
Documentation. Under the SpinCo Group’s Copyrights, a perpetual, irrevocable, sublicensable (subject to Section 3.04),
worldwide, non-exclusive, royalty-free, fully paid-up right and license to use, reproduce, distribute, perform, display, and prepare
and distribute Derivative Works of the Assigned Documentation solely as and to the extent such Assigned Documentation is used by the
Parent Group in the Parent Field of Use.

 

Section 3.02.          Assigned
Unrestricted Research Assets. Notwithstanding the provisions of Section 2.01, SpinCo, on behalf of itself and the SpinCo
Group, hereby grants to Parent and the other members of the Parent Group, under the SpinCo Group’s Copyrights, a perpetual, irrevocable,
freely sublicensable (through multiple tiers of sublicenses), freely transferable in whole or in part (notwithstanding Article VIII
of the Agreement), worldwide, non-exclusive, royalty-free, fully paid-up right and license to use, copy, reproduce, modify, display,
perform, distribute, translate into any language or form, combine with other Software or hardware, transmit, and prepare and distribute
Derivative Works of the Assigned Unrestricted Research Assets.

 

Section 3.03.          Code
Fragments. Notwithstanding the provisions of Section 2.01 and without limiting Section 3.01, SpinCo, on behalf
of itself and the SpinCo Group, hereby grants to Parent and the other members of the Parent Group, under the SpinCo Group’s Copyrights,
a perpetual, irrevocable, freely sublicensable (through multiple tiers of sublicenses), freely transferable in whole or in part (notwithstanding
Article VIII of the Agreement), worldwide, non-exclusive, royalty-free, fully paid-up right and license to use, copy, reproduce,
modify, display, perform, distribute, translate into any language or form, combine with other Software or hardware, transmit, and prepare
and distribute Derivative Works of any Code Fragments.

 

    [Exhibit A – Software and Database License Terms]-8

     

    

 

Section 3.04.          Sublicensing.
The rights and licenses set forth in Section 3.01 include the right to grant sublicenses within the scope of such rights
and licenses only to members of the Parent Group, and, without any further right to sublicense (except as necessary to provide products
and services to customers of the Parent Group within the Parent Field of Use, solely for the benefit of such customers), to their respective
(i) contractors, distributors, manufacturers, resellers, and other service providers, in each case solely within the Parent Field
of Use, and (ii) End Users and customers, in each case solely in connection with the use of products and services within the Parent
Field of Use or otherwise as necessary to provide products and services to customers of the Parent Business within the Parent Field of
Use, for the benefit of such customers; provided, however, that the Parent Group may only sublicense such rights pursuant
to terms and conditions as protective as those under which it licenses its own Software of a similar nature and value, and in any event
terms and conditions that provide for commercially reasonable protection for the Source Code, structure and other confidential and proprietary
elements of the Assigned Software and Assigned Documentation. Parent shall cause all members of the Parent Group to comply with the terms
set forth in this Section 3.04. The Parent Group shall remain liable for any breach or default of the applicable terms and
conditions of this Agreement by any of its sublicensees.

 

Section 3.05.          License
Restrictions. The licenses granted in Section 3.01 are subject to the following additional restrictions:

 

(a)            the
Parent Group shall make no representations or warranties about or on behalf of the SpinCo Group;

 

(b)            distribution
and providing End Users access to Parent Group products or services shall comply with all applicable Laws, including privacy, export
and import Laws, including those of the United States and those that prohibit or restrict distributions for certain end uses or End Users;

 

(c)            the
Parent Group shall not perform any actions with regard to the SpinCo Licensed Materials that could require the Source Code of the SpinCo
Licensed Materials to be licensed under any OSS license or be disclosed to any Third Party;

 

(d)            for
any component of the SpinCo Licensed Materials that is provided or licensed in Object Code, the Parent Group shall not, and shall not
allow any Third Party to, reverse assemble, reverse compile, decompile, translate, or otherwise attempt to discover the Source Code of
such component, except as permitted by Law, without the possibility of contractual waiver and shall include such requirements in all
downstream licenses;

 

(e)          notwithstanding
any other provision of this Agreement to the contrary, the Parent Group shall maintain the SpinCo copyright notice and all other SpinCo
Group proprietary notices (if any) as provided in the SpinCo Licensed Materials;

 

(f)            all
distributions of Parent Group products or services incorporating Assigned Software, Assigned Databases or Assigned Documentation, or
access thereto by End Users, as the case may be, shall be under a written license agreement that will include the provisions set out
below or their legal equivalent. For Parent’s reference, the phrase “the third party” in subsections (i) –
(ix) below, refers to SpinCo (or another member of the SpinCo Group, as applicable), although the Parent Group shall use the phrase
 “the third party” and not identify any member of the SpinCo Group:

 

    [Exhibit A – Software and Database License Terms]-9

     

    

 

(i)            the
product or service contains materials licensed from a third party, and Parent or customer has assumed responsibility for these materials
and their use in the product or service;

 

(ii)           the
third party Software, Database or Documentation in the product or service is licensed, and not sold, and neither the third party nor
Parent passes any title to such Software, Database or Documentation;

 

(iii)          the
End User is prohibited from copying any part or portion of the third party Software, Database or Documentation, from preparing any Derivative
Work thereof, or otherwise modifying the third party Software, Database or Documentation;

 

(iv)         the
End User may not assign, sublicense, distribute, lease, rent, or otherwise transfer the third party Software, Database or Documentation;

 

(v)          the
End User may neither distribute the product or service nor offer the product or service as a cloud service or software-as-a-service;

 

(vi)         the
End User is prohibited from reverse assembling, reverse compiling, translating or otherwise trying to discover the Source Code form of
any Software provided in Object Code form, except as permitted by the national or regional law of the places where the End User does
business (without the opportunity for contractual waiver), and then only with respect to the particular copy of Object Code incorporated
into that particular product or service;

 

(vii)        warranties,
including any implied warranties, are provided solely by Parent and not by the third party;

 

(viii)       in
such written license agreements, Parent will include a provision limiting liability and terms excluding all consequential damages effective
to limit the SpinCo Group’s liability, and an audit provision sufficient to enable Parent to fulfill its obligations under this
Agreement; and

 

(ix)          in
such written license agreements, Parent will also include the following statement, or other legally sufficient and wholly comparable
terms: “The limitation of liabilities described in this agreement also applies to the third party supplier. Such third party supplier
is an intended beneficiary of this agreement, and any rights of indemnification also apply to any third party supplier described in this
agreement. A list of such third party beneficiaries will be provided on written request”;

 

(g)            The
Parties acknowledge and agree that certain provisions with respect to the Assigned Restricted Software and Assigned Restricted Research
Assets are set forth in Annex J hereto.

 

(h)            Any
action that breaches Section 3.01, Section 3.04 or this Section 3.05 is beyond the scope of the licenses
granted in this Agreement. Any distribution of Assigned Software, Assigned Databases, or Assigned Documentation permitted under Section 3.01
may be through multiple tiers of distribution in the Parent Group’s channel; and

 

    [Exhibit A – Software and Database License Terms]-10

     

    

 

(i)            Parent
shall cause all members of the Parent Group to comply with each of the restrictions set forth in this Section 3.05.

 

Section 3.06.          Suspension
of Licenses to SpinCo Licensed Materials. The licenses to the SpinCo Licensed Materials granted hereunder are irrevocable, even in
the event of a material breach; provided, however, that any such license may be suspended by the SpinCo Group only in the
event of a material breach thereof, including unauthorized use or distribution, by any Parent Group member that remains uncured for thirty
(30) days following Parent’s receipt of written notice from a member of the SpinCo Group specifying such breach. Upon suspension
of the Parent Group’s licenses, the Parent Group shall immediately cease all use of the specific SpinCo Licensed Materials that
are the subject of the material breach until such material breach or unauthorized use or distribution by the Parent Group is cured and
Parent certifies to SpinCo in writing as to such cure.

 

Section 3.07.         Reservation
of Rights. SpinCo Licensed Materials are licensed and not sold, and nothing in this Agreement grants the Parent Group any ownership
right, title, or interest in or to the SpinCo Licensed Materials. The Parent Group shall use the SpinCo Licensed Materials only for the
purposes expressly permitted by this Agreement.

 

ARTICLE IV

ADDITIONAL SOFTWARE AND DATABASE RELATED MATTERS

 

Section 4.01.        TSA.
Notwithstanding anything in this Agreement to the contrary, no licenses are granted to the SpinCo Group or the Parent Group under this
Agreement with respect to Software or Databases that are licensed, provided or otherwise made available under the TSA or the Reverse
TSA; provided, however, that the foregoing sentence shall not apply to the Internal Tools designated for “Hard Segmentation”
in Annex E.

 

Section 4.02.         Open
Source Software. With regard to any OSS that is contained within or used in conjunction with the Assigned Software, SpinCo (on behalf
of itself and each other member of the SpinCo Group) acknowledges that the SpinCo Group’s rights with respect to OSS shall be governed
by the respective license associated with each such OSS program. Parent will have no obligations whatsoever to the SpinCo Group with
respect to the OSS contained within or used in conjunction with the Assigned Software pertaining to its usage after the Distribution
Date.

 

Section 4.03.        Parent
JDK/Parent JRE. Parent JDK and Parent JRE or any licenses thereto are not being assigned or licensed to the SpinCo Group under this
Agreement. Any licenses to the Parent JDK and Parent JRE that may be provided, as applicable, will be specified in a separate Parent
Java OEM Agreement and Parent Java OEM Transaction Document, as applicable.

 

    [Exhibit A – Software and Database License Terms]-11

     

    

 

Section 4.04.        Third
Party Commercial Software and Third Party Commercial Databases. SpinCo (on behalf of itself and each other member of the SpinCo Group)
acknowledges that the Assigned Software, Assigned Databases, and computer hardware or servers within the SpinCo Assets being provided
to the SpinCo Group, may include various Software packages, Databases and materials, including Third Party Commercial Software and Third
Party Commercial Databases. No license rights to any Third Party Commercial Software or Third Party Commercial Databases are being assigned
or licensed to the SpinCo Group under this Agreement. Subject to the terms and conditions of the TSA, as applicable: (i) SpinCo
is solely responsible for, and shall without delay obtain and maintain, its own licenses to such Third Party Commercial Software or such
Third Party Commercial Databases, (ii) time is of the essence in regard to SpinCo’s obligations to obtain its own licenses
and (iii) the SpinCo Group shall not make any use of such Third Party Commercial Software or Third Party Commercial Databases prior
to obtaining licenses thereto.

 

Section 4.05.          Parent
Commercial Programs.

 

(a)           SpinCo
(on behalf of itself and each other member of the SpinCo Group) acknowledges that the Assigned Software, or computer hardware or servers
within the SpinCo Assets, may include or require various Parent Commercial Programs. No license rights to any Parent Commercial Programs
are being assigned or licensed to the SpinCo Group under this Agreement. Subject to the terms and conditions of the TSA, as applicable:
(i) SpinCo is solely responsible for, and shall without delay obtain and maintain, its own licenses to such Parent Commercial Programs,
(ii) time is of the essence in regard to SpinCo’s obligations to obtain its own licenses and (iii) the SpinCo Group shall
not make any use of such Parent Commercial Programs prior to obtaining licenses thereto (the “PCP Requirements”).
Following the Distribution Date, in the event that Parent reasonably believes that the SpinCo Group is violating the PCP Requirements
existing as of the Distribution Date, Parent shall promptly notify SpinCo thereof, identifying the relevant PCP Requirement and specifying
reasonable details of such violation, and the Parties shall engage in the following procedures:

 

(i)            Within
thirty (30) days following such notice to SpinCo, each Party shall promptly nominate a senior executive with experience in the relevant
business or product line to investigate the matter, and the senior executives shall meet and confer (telephonically or in person) regarding
such alleged violation. Within thirty (30) days following such meeting, SpinCo Group’s senior executive shall conduct an investigation
of the matter to determine whether there is any ongoing use of such Parent Commercial Program, without a commercial license from the
Parent Group.

 

(ii)           Promptly
following completion of such investigation, the SpinCo Group’s senior executive shall report the findings thereof to the Parent
Group’s senior executive. If the senior executives mutually agree that the SpinCo Group is using such Parent Commercial Program
without a commercial license, Parent will offer the SpinCo Group a commercial license on reasonable terms for the SpinCo Group’s
continued use of the applicable Parent Commercial Program. The SpinCo Group shall have the option, in its sole discretion, to either
(i) reasonably negotiate and enter into a commercial license for the applicable Parent Commercial Program or (ii) wind down
and cease use of such Parent Commercial Program in a reasonable period of time, as agreed by the senior executives in good faith.

 

(iii)          In
the event the senior executives are unable to resolve the matter as set forth in the foregoing clause (ii), the matter shall be escalated
to the general managers of such senior executives, who shall promptly attempt to resolve the matter. If such general managers are unable
to resolve the matter within thirty (30) days of such escalation, either Party may submit the matter to the dispute resolution process
in Section 10.02 of the Agreement.

 

    [Exhibit A – Software and Database License Terms]-12

     

    

 

(iv)         Notwithstanding
anything to the contrary in this Agreement, the Parties acknowledge and agree that no violation of the PCP Requirements shall constitute
a breach of this Agreement or give rise to any liability of the SpinCo Group, without limiting the SpinCo Group’s obligation to
enter into a commercial license or wind down and cease such use of the Parent Commercial Programs to the extent required by this Section 4.05(a).

 

    [Exhibit A – Software and Database License Terms]-13

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